Case Study Questions: Nature And Significance Of Management

Nature and Significance of Management Important Case Study Questions

Q1. Is there any characteristic of art that is not present in management?

Ans. No

Q2. Kamal, Khan, and David are partners in a firm engaged in the distribution of dairy products in Madhya Pradesh. Kamal is a holder of a Senior Secondary Certificate from the Central Board of Secondary Education with Business studies as one of his elective subjects. Khan had done his post-graduation in Hindi literature and Devid in Dairy Farming. One day there was a serious discussion between Khan and Devid regarding the nature of Management as a Science khan argued that Management was not a science whereas Devid thought that Management was a science. Kamal intervened and corrected both Khan and Devid about the nature of management as a Science with the help of his Knowledge of Business Studies.

Explain, how Kamal would have been able to satisfy both Khan and Devid.

Ans. Kamal would have been able to satisfy both Khan and Devid by explaining the following features of management as a science

Through the above discussion, Kamal would have been able to satisfy both Khan and Devid by making them understand that management is a science but not an exact science

Q3. “Management is regarded as an Art by some, as Science or as an inexact Science by others. The truth seems to be somewhere in between.” In the light of this statement, explain the true nature of management.

Ans. Management is regarded as an “Art ‘due to the following reasons:

Explain: Topic- Management as an Art

Management is regarded as ‘Science’ because of the following reasons:

Explain: Topic- Management as ‘Science’

True Nature of Management: Management has features of both art and science. The practice of management is an art. However, managers can work better if their practice is based on the principles of management. These principles constitute the science of management. Management as an art and a science are therefore not mutually exclusive but complementary to each other.

Q4. In ABC Ltd. The purchase department purchased 15 tons of raw materials for the production department. However, the production department required only 10 tons. Due to this reason, goods were over-produced and were not accepted by the sales department. As a result, some goods remained unsold. Which aspect of management is lacking in this case?

Ans. ‘Coordination’ is lacking between various departments.

Q5. Ms. Neha passed her M.B.B.S examination in the first division in 2013. Later on in the year 2016, she passed her M.S. examination as an eye surgeon. After completing her studies, she joined a big hospital as an eye surgeon. She is performing five operations successfully every day. Now tell me, what aspect of Ms. Neha’s above experience is science and what aspect is art?

Ans. As we know obtaining information about a subject and putting that information to practice is an art, so in this case, it can be said the study of M.B.B.S. and M.S. is science, and working as an eye- surgeon is an art.

Q6. Vani managed to submit her class XII Business studies project on the submission day. She did not do proper research for the project as a result there were no supporting facts. She also did not write the conclusion for the project. Is Vani effective; efficient or both?

Ans. Vani is effective because she submitted her project on the submission day. However, she is not efficient as she has submitted an incomplete project.

Q7. Vandana’s business studies teacher instructed her to prepare a business studies project and submit it within thirty days. She did intensive research for the projects and prepared an excellent project but failed to meet the deadline. She appreciated her hard work but deducted 5% marks for late submission. Do you think ‘Vandana is effective; efficient or both?

Ans. Vandana is not effective because she has failed to meet the deadline and could not submit the project on time. However, she is efficient as she did intensive research for the project and prepared an excellent project.

Q8. Muskaan Ltd. Received a new order of 25,000 toys. Me. Ajay the production manager is expected to deliver goods in twenty days otherwise the order will be cancelled. To retain the customer Ajay is planning to outsource the production of 15,000 toys and deliver the order on time. The outsourcing of production will increase costs by 50%. Do you think Mr. Ajay will be able to perform his responsibilities effectively and efficiently? Give reason.

Ans. Mr. Ajay will be effective while delivering the order on time however he will not be effective due to the following reasons

a) He will complete the assigned task on time so he will be effective.

b) He will be able to complete that task within a given period with an increase in cost therefore he will not be efficient.

Q9. Shenoy Ltd. Is facing a lot of problems these days. It manufactures electronic goods like washing machines, microwaves, ovens, refrigerators, and air conditioners. The company’s margins are under pressure and the profits and market share are declining. The production department blames the marketing department for not meeting sales targets and the marketing department blames the production department for producing goods, which are not of good quality to meet customers’ expectations. The finance department blames both production and marketing departments for declining return on investments and bad marketing.

(a) What quality of management do you think the company is lacking? Justify your answer.

(b) State the importance of the concept identified in (a).

Ans. (a) Coordination: Because production, marketing, and finance departmental efforts are not coordinated to achieve organizational objectives harmoniously. As a result, the company’s profits and market share are declining.

(b) Importance of coordination.

Q10. Renu is the manager of a well-known company manufacturing garments for teenagers. She plans her winter collection in August itself. Then, she ensures that there is sufficient manpower. She continuously monitors whether production is proceeding as per plans. She asks the marketing departments to prepare their promotional and advertising campaigns also.

(a) Identify and explain the concept of management highlighted in the above para.

Ans. Coordination: it is the force that binds all the functions of management. It is the common thread that runs through all activities such as purchase, production, sales, finance, etc. to ensure continuity in the working of the organization.

Coordination is not a separate function of management. It is the essence of management. It is implicit and inherent in all functions of management.

Top management plans for the entire organization.
According to these plans, the organizational structure is developed and staffed.
To ensure that these plans are executed according to plans, directing is required.
Any deviation between the actual and the standard performance is corrected at the stage of controlling.

(b) Coordination is a continuous process.

Q11. Hi-Tech Solutions Ltd. Is a company manufacturing IT products. The company’s profits are sufficient for its survival and growth. The management of the company believes that a satisfied employee creates a satisfied customer, who in turn creates profits that lead to satisfied shareholders, So, it pays competitive salaries and perks to its all employees. All the employees are happy working in the organization because of personal growth and development.

The company has a strong sense of social responsibility, it has set up educational institutions in the fields of management, engineering, and computer education in which twenty-five percent of students are girls to whom the company gives 50% scholarship.

Is The management of Hi-Tech Solutions Ltd. Fulfilling its objectives? Identify the objectives by quoting the lines.

Ans. Yes, the management of Hi-Tech Solutions Ltd. Is Fulfilling all the objectives- organizational objectives, social objectives, and personal objectives.

(a) Organization objectives are the economic objectives of a business. These are survival, profit, and growth. ‘Profits of Hi-Tech Solutions Ltd. Are sufficient for the survival and growth.’

(b) Social objectives involve the creation of benefits or economic value for society.

‘Hi-Tech Solutions Ltd. Fulfills its social responsibility.’

‘The management of Hi-Tech Solutions Ltd. Satisfies the financial needs of its employees by giving them competitive salaries and perks. It also satisfies their higher-level needs such as personal growth and development.

Q12. The management of Bhawana Ltd. Strongly believes that the members of an organization should work towards fulfilling the common organization goals. This requires teamwork and integration of efforts of all individuals, departments, and specialists. This is because all the individuals and departments depend on each other for information and resources to perform their respective activities. Managers need to reconcile differences in approach, timing effort, or interest. At the same time, it should enable all its members to grow and develop. Thus, there is a need to harmonize individual goals and organizational goals.

(a) Which concept of management is highlighted in the above description?

(b) State any three features of the concept identified in (a).

(c) identify and explain the characteristics of management which is reflected in the above description.

Ans. (a) Coordination

(b) Features of coordinates

Q13. Kartik was the manager of ABC Ltd. He noticed that changes were taking place in the market. The company’s results might be in danger. He started adopting changes in its product design and started producing goods as per the taste and preferences of consumers and he got the support of all workers also. He did everything that he could do.

(a) Identify the characteristics of management highlighted in the above para.

(b) Write any two benefits of taking these changes in the business.

(c) State any one value that Kartik wants to communicate to society.

Ans. (a) Manager is a dynamic function.

(b) (i) It will help the company to retain its customers.

(ii) It will help the company to maintain and increase its profits and market share.

(i) Dynamic approach (ii) Teamwork (iii) Adaptability

Q14. The General Manager of ABC. Ltd. Called a meeting of the Production Manager and Sales Manager of the company. He explained to them that both of these departments are the base of the company’s success. Therefore, both of them must work in coordination. Also, they were told that whatever decision they took for their respective departments; which could affect others, they must give its information to them immediately. They did the same. As a result of this, there never arose a situation in the company. When the sales orders could not be complied with because of the shortage of goods.

Identify the characteristics of coordination highlighted in the above para

Ans. Coordination ensures unity of action.

Q15. The top management of ‘Dynamite Ltd.’ Has made proper arrangements for all the resources for its business. Special attention has been paid to the running of all activities properly. Several competitors were using imported modern machines. Influenced by them, this company also had to install similar machines. The technology of these machines was the most sophisticated. Before the employees could protest against this technology, they were given training. Hence, they accepted the installation of these machines happily. Some of the employees understood this technology very soon. The company felt happy with their work and rewarded them. Its impact on the other employees was also positive. The top management had directed all the employees to have free and informal communication and give suggestions, lodge complaints, and even talk about their matters.

Identify and explain the importance of management highlighted above by quoting the lines.

Ans. (a) Management increases efficiency

‘A special attention has been…. Activities properly.’

(b) Management creates a Dynamic organization.

‘Several competitor companies…. were given the training in it.’

‘The top management………. personal matters.’

Q16 Tushar Mining industry owns and operates coal mines in different parts of the country. It employs thousands of workers who do this dangerous and potentially lethal job. Several miners contend with air filled with dust and develop asthma and other respiratory problems. Many times, fatal accidents take place due to insufficient safety measures. The garbage from the mines is often dumped in local rivers, which pollutes the water bodies.

Identify and explain any two management objectives that are being ignored by the Tushar Mining industry.

Ans. Personal and Social objectives.

Q17.Gurpreet, Shenoy, and Lakshay are three best friends. They established ‘Unity Ltd.’ Of the three, one was a management expert, the second an engineer, and the third a businessman. The company was established in a hilly area where a large number of people were unemployed. The main aim of the company was to make popular a variety of apples that was grown using a new seed across the country Mr. Deepak, the Managing Director of the company, took upon himself the responsibility of doing this job. He selected those areas where the company was to enter in the first instance. The entire business was divided into five departments i.e., purchase, marketing, production, finance, and human resources. People with requisite qualifications were appointed in all departments. Special arrangements were made to keep a close watch on the different activities of the company so that there was no shortfall in quality. The company had entered five states. Of these, sales in four were up to mark, but in one it was less than expected. Its reasons were enquired into. Thus, the company achieved the desired success in the very first year.

(a) identify the functions of management highlighted in the above para by quoting the lines

(b) State any one value communicated by the company to the society

Ans. (a) Planning

‘He selected those areas…. enter in the first instance.’

(b) Organizing

‘The entire business… departments.’

‘Person with requisite qualification……. in all departments.’

(d) Directing

‘Special arrangements were made to keep a watch………. Shortfall in quality.’

(e) Controlling

‘Sale in four…… less than expected.’

Q18. The production department of Care Ltd., a jeans manufacturing company, produces more shoes than what is required and the sales department of the company is unable to sell the excess quantity of jeans. As a result of this, the company starts suffering losses.

Which process do you think is missing in the above case?

Ans. Coordination.

Q19. Payal is the marketing manager of a company selling mobile phones. She plans the target sale of 2000 mobile phones per month. She allocates the necessary resources to execute the plan. She has six salesmen working under her. She works with them, guiding and motivating them to achieve the target sales. At the end of the month, after a comparison of actual sales with the target sales. She found that actual sales exceeded the target sales. She rewards efficient employees to motivate them.

(a) Identify the four functions of management highlighted above by quoting the lines

(b) Also state any two values which she wants to communicate to society through her behavior.

Ans. (a) Paal performs the following functions of management:

‘She plans the target sale of 2000 mobile phones per month’

‘She allocates necessary resources to carry out the plan’

‘She works with them, guiding and motivating them to achieve the target sales’

‘At the end of the month, after comparison of actual sales with the target sales she found that actual sales exceeded the target sales’

(b) Values

(i) Sense of achievement (ii) Loyalty (iii) Belongingness

Q20.XYZ Power Ltd. Set up a factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity in rural areas. The revenue earned by the company was sufficient to cover the costs and the risks. The demand for lanterns was increasing day by day, so the company decided to increase production to generate higher sales. For this, they decided to employ people from the nearby villages as very few job opportunities were available in that area. That company also decided to open schools and creches for the children of its employees.

(a) Identify and explain the objectives of management discussed above.

(b) State any two values which the company wanted to communicate to society.

Ans. (a) The objectives of management referred to are:

Organizational Objectives:

(i) Survival: the basic objective of any organization is survival. Management must strive to ensure the survival of the organization. To survive, an organization must earn enough revenue to cover costs. It is evident from the line “The revenue earned by the company was sufficient to cover the costs and the risks.”

(ii) Growth: The business organization needs to grow and expand its activities. To remain in the market, management must exploit fully the growth potential of the organization. It is evident from the line.

“The demand for lanterns was increasing day by day, so the company decided to increase production to generate higher sales.”

Social objectives:

The social objectives of the organization deal with the commitment of the organization towards society. Business organizations are part of the society. They earn by using society’s resources so they must do something for society also. It is evident from the line “For this they decided to employ people from the nearby villages, as very few job opportunities were available in that area.”

(b) Values which the company wanted to communicate to the society are:

(i) Providing employment opportunities

(ii) Development of backward regions.

(iii) Providing education and other facilities to the family of its employees.

(iv) Concern for the environment.

Q21.Management of Global Ltd. Fulfills all its objectives and the organization can work effectively and efficiently. It uses environment-friendly methods of production and disposing of the waste material either by recycling it or using the same for landfill in such a manner that the aquatic life is not disturbed. Thus, it also provides employment opportunities to the disadvantaged sections of the society.

(a) Identify the objectives of management of Global Ltd. Which it wants to fulfill by doing the above activities.

(b) State any two other objectivities that the management of Global Ltd. Should fulfill.

(c) Identify any two values that the management of Global Ltd. Can communication through fulfilling the objectives as stated in part

(d)Identify any two values that Global Ltd. Desires to emphasize through its state’s activities.

Ans. (a) Social objectivities

(b) (i) Organizational objectives, (ii) Personal objective.

(d) (i) Waste management: By using the waste material for recycling and landfills

(ii) Responsibility towards disadvantaged sections of society: By providing employment opportunities to the disadvantaged sections of the society.

Q22. Unique Ltd. Is engaged in manufacturing electrical appliances. The company has been facing a lot of problems for the last few months because of chaos between two departments i.e., the Production departments and sales departments. The sales department blames the production departments for the delayed production. However, the production department blames the sales departments for poor sales. The Force that integrates the two departments is missing.

(i) Identify the missing force in the above case and list two characteristics.

(b) List any two values that can be cultivated among the employees by using the force identified in (a) above.

Ans. (a) Coordination

Characteristic of coordination

(i) integrates group efforts (ii) Ensures unity of action

(b) (i) Cooperation; By integrating all group efforts

(ii) Unity: By ensuring that all activities aim at the accomplishment of organization goals.

Q23. Ratan Ltd. Decides to have a meeting of all employees of departments of the company. The primary aim is to tell the employees to keep the target of a 25% increase in sales as the main objective when they work throughout the year. The meeting is full of ideas regarding the employees and processes involved. Various plans are made to harness. The potential of the employees and streamlining the processes. However, with time the external business environment checks the capacity of the company to adapt to the situations. The company successfully achieved the target at the end of the year. Identify and state the characteristics of management highlighted in the above para by quoting the lines.

Ans. The characteristics of management highlighted are:

(a) Management is a goal-oriented process

‘The primary aim …. Work throughout the year.’

(b) Management is multi-dimensional.

(i) Management of people

(ii) Management of operations.

‘Various plans ……. Streamlines the processes.’

‘However, with ……… adapt to the situations.’

24. A floor manager of Pacific Mall is a very good manager as he utilizes all the functions of management to minimize the cost of maintenance of his area. He directs all the staff members working under him to follow the targets and advises them to put their efforts in the direction of achievement of these targets. Under his guidance, the employees admit that they learn a lot of things and can achieve their targets. This has led to an increase in their salaries.

Identify and explain the importance of management highlighted above by quoting the lines:

Ans. (a) Management increases efficiency

‘A floor manager ………. maintenance of his area.’

(b) Management helps in achieving group goals.

‘He directs ………. achievements of these targets.’

‘This has ……. their salaries.’

25. The director of Wadhwa’s Ltd. Has a belief in teamwork where the members of the company should work towards fulfilling the common organization goals. He places more emphasis on term work and the integration of efforts of all individuals, departments, and specialists. He gives importance to the reconciliation of individuals as well as departmental differences and creating a work environment that enables all its members to grow and develop to their maximum capacity.

(a) identify the concept of management discussed above.

(b) Explain any three features of the concept identified in (a) above.

(c) identify and explain the characteristics of management which is reflected in the given case.

Ans. (a) Coordination

(b) i. Coordination is the Responsibility of All Managers: Coordination is the responsibility of every manager in the organization. For example, top-level managers coordinate the activities of their subordinates to ensure that the objectives and policies of the organization are duly implemented. Middle-level managers coordinate with both the top-level and lower-level managers. Operational management coordinates the activities of its workers to ensure that work is performed according to plans.

ii. Coordinate is a Deliberate function: A manager has to coordinate the efforts of different people consciously and deliberately. Cooperation in the absence of coordinates may lead to wasted effort and coordination without cooperation may lead to dissatisfaction among employees.

iii. Coordinates Ensures Unity of Action: Coordinates leads to unity of action towards the organizational goals. It acts as the binding force between departments and ensures that all actions are aimed at achieving the goals of the organization.

Q26. In America, acting is considered a profession. Whosoever has to become an actor has to read books written on acting. These books tell the nuances of acting and without reading these books one cannot be considered as an actor, to judge the ability of an actor an examination is conducted and then a degree is assigned to the qualified persons who can then act in films. There is also a statutory body that provides membership to all actors and it is compulsory to become a member. There are also rules and regulations enforced by the statutory body to ensure self-discipline among its members. Identify the four characteristics of the profession highlighted above by quoting the lines

Ans. (a) Well-defined body of Knowledge

‘……an actor has to read books written on acting.’

(b) Restricted entry

‘To judge…. become a member.’

‘There is also a statutory body …. Become a member.’

(d) Ethical code of conduct

‘There are also rules and regulations …… among its members.’

Q27. Mr. Gurpreet is responsible for the success or failure of the enterprise. After a few years of gaining work experience decided to write a book on management.

In his book he broadly gives five valuable suggestions:

(i) Management should earn profits but it should also produce good quality products. It should also involve itself in providing facilities to society without any profit motive. In addition to this. It should help to generate employment opportunities in backward areas where few job opportunities are direct and controlling to reduce cost and improve productivity. The essence of management which is coordination should be present in all functions of management.

(iii) Management should help in achieving the individual goals along with the organizational goals. Good management helps its employees by giving them recognition, increments in salary, promotion, etc.

(iv) The management of a company is good if it can convince employees to accept changes whenever the employees find something new, they tend to resist. It is in the favor of both the company and employees that the employees must be guided to accept the changes happily and thus bring down the resistance. The management must tell employees that to survive and to maintain a competitive edge implementing changes in the company is indispensable.

(a) At which level of management does Mr. Gurpreet work?

(b) Identify the importance of management highlighted in each of the above suggestions.

Ans. (a) Top management

(b) (i) Management helps in the development of society.

(ii) Management increases efficiency.

(iii) Management helps in achieving personal objectives.

(iv) Management creates a dynamic organization.

Q28. Deepanshu Ltd. Is facing a lot of problems these days. It manufactures electrical goods like washing machines, microwave ovens, refrigerators, air conditioners, etc. The company’s margins are under pressure and the market share is declining. The production department is blaming the marketing departments for not meeting the sales targets whereas the marketing department is blaming the production department for poor quality and higher cost of production. The finance department is blaming both for the decline in returns on investments.

(a) What quality of management do you think the company is lacking? Explain briefly.

(b) What steps should the company management take to bring the company back on track?

Ans. (a) The quality of management that is lacking in the above problem is coordination because production, marketing, and finance departmental efforts are not coordinated to achieve organizational objectives harmoniously. As a result, the company’s profits and market share are declining.

(b) The top management of the company should take the following steps:

(i) All departments should be asked to work for the organizational objectives.

(ii) There should be effective communication among the different departments.

(iii) Coordination should be made between various departmental plans.

(iv) Periodic meetings of various departmental heads should be held to remove any misgivings and to integrate their efforts.

(v) Any conflict among different departments must be resolved at the earliest.

Q29.A company wants to modify its existing product in the market due to decreasing sales. You can imagine any product about which you are familiar. What decisions/ steps should each level of management take to give effect to this decision?

Ans. If a company wants to modify its existing product say, chocolate, to increase its sales, the company should take the following steps at each level of management:

Top Management

(a) Brainstorming among all departments to explore ways and means to modernize the product.

(b)Scope of modification.

(d) Coordinated the activities of all departments.

Middle management

(a) interprets the modification plan to the supervisory level

(b) Recruit and select employees who will perform the task.

(d) Give necessary instruction and guidance to the supervisory level personnel.

Supervisory Management

(a) Assign work to the workforce

(b) Passing instructions to the workforce.

(d) Maintain quality and minimize waste.

Q30. A firm plan well in advance and has a sound organizational structure with efficient supervisory staff and a control system. On several occasions, it is found that plans are not being adhered to, which leads to confusion and duplication of work. Advise remedy.

Ans. In the given case, the company is facing problems in the implementation of its plans. The following steps should be taken for proper adherence to plans:

(a) There should be proper coordination among various departments.

(d) On-the-job and off-the-job training should be provided.

(e) There should be unity of command and unity of direction.

(f) Latest developments and technologies should be introduced to the workers.

(g) A cordial atmosphere within the organization should be created.

(h) Worker’s participation in the management should be encouraged.

Q31. Joy Entertainment Company has been organizing circus shows internationally for the last ten years. Their shows have been successful all over the world. Of late, their shows are not as popular as they were in the past. They are thinking of bringing in necessary changes in their shows to gain wide popularity.

(a) identify the characteristics of management they reflect in their company. Give reasons.

(b) What necessary decisions/ steps should each level of management take to bring the company back on track?

Ans. (a) (i) Management is a dynamic function: The company’s management realizes that they need to adapt to the changes in the business environment and follow new strategies/ techniques or change their existing pattern of presenting shows to attract their customers.

(ii) Management is a goal-oriented process: The company wants to bring in necessary changes to achieve its goals. (b) The following steps must be taken at each level of management to bring the company back on track:

Top Management

(i) The owners must analyze the reasons for their downfall and find out what competitors are offering.

(ii) They must use the latest technology to present their programs innovatively.

(iii) They must organize and assemble necessary resources and coordinate the efforts of all the departments to achieve desired results.

Middle Management

(i) They must interpret the plans laid down by top management to the supervisory level.

(ii) They must implement the plan laid down by top management in their departments or divisions.

(iii) They must use an innovative style of Marketing their shows, they must heavily advertise their shows.

(iv) They must motivate their team performers to adapt to changes and try to perform to the best of their ability.

Supervisory Management

(i) They must assign the tasks to the workforce and supervise that the tasks is carried on in the right direction.

(ii) They must ensure that the performers practice their shows well to give quality performances.

(iii) They must reduce wastage by improving the motivation and loyalty of workers.

Case Study Questions: Nature and Significance of Management

Nature and Significance of Management Important Case Study Questions

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