Business Studies Part I
Business Studies Part II

Solutions of Question Paper

1 Mark Questions

Ans 1. Management is process of getting things done with the aim of achieving goals effectively and efficiently.

Ans 2. Pervasive and Multidimensional

Ans 3. False

Ans 4. Management is a series of continuous inter-related functions.

Ans 5. Yes, the production manager of Sidak Garments Ltd. is effective as he could achieve the target to produce 10,000 shirts in a month

Ans 6.

  1. Compassion
  2. Responsibility

3 Marks Questions

Ans 7. From now on, Arundhati will be working at the middle level of management. The four functions that she will have to perform at this level are stated below:

  1. She has to ensure that her department has the necessary staff.
  2. She has to assign duties and responsibilities to the people in her department.
  3. She has to motivate the people in her department to achieve the desired objectives.

She has to co-operate with the other departments for ensuring the smooth functioning of the organization.

Ans 8. Management is thus getting things done with the aim of achieving goals effectively and efficiently. Being effective or doing work effectively basically means finishing the given task. It is concerned with end result, it is achieved or not. Efficiency means doing the work correctly and with minimum cost. If by using less resources more benefits are derived then efficiency has increased. It is thus essential for any organisation to focus on efficiency as well as effectiveness. It is not only important to complete the work correctly but equally important to complete it with minimum cost. In the same manner, it is not only important to reduce cost but equally important to complete the work correctly.

Ans 9. Co-ordination plays a vital role as it binds all the other functions of management. It is the common thread of all activities such as purchase, production, sales etc. that runs through. Some of the basic features are as follows:

  1. Integrates Group Efforts: Co-ordination brings unity to all. It gives a common focus to group efforts.
  2. Ensures Unity of Actions: It acts as a binding force between departments and ensures that all action is aimed at achieving the goals of the organization.
  3. It is a Continuous Process: Co-ordination is not a one-time function but a continuous process. It begins at the planning stage and continues till controlling.
  4. It is an All-Pervasive Function: Co-ordination is required at all levels of management due to the interdependent nature of activities of various departments. It integrates the efforts of different departments and different levels.
  5. It is the Responsibility of All Managers: All managers need to co-ordinate something or the other. A manager of production department needs to co-ordinate the work within his department and also with the other departments at the same time.
  6. It is a Deliberate Function: Whatever the managers are doing in an organization they are doing it knowingly. Co-ordination is one of the most important functions of all managers. Thus, co-ordination is also done deliberately. Whatever the managers do, they do it deliberately to achieved the predetermined goals and objectives.

Ans 10. Art is the skillful and personal applications of existing knowledge to achieve desired goal. Management is considered an art due to the following reasons:

  1. Existence of Theoretical Knowledge: All art subjects are based on theoretical knowledge e.g. written material is available on dancing. time arts. music etc. same way there is lot of literature available on management and Its branches – finance, marketing human resource etc.
  2. Personalized Application: The use of this basic knowledge differs from one individual to the other. Two painters, two dancers or two singers all use their knowledge in their own way Same way two managers who have acquired the same knowledge may use It in their own different ways to get the work done
  3. Based on Practice and Creativity: All art 1& practical. II involves creative practice. The more we practice it better we become at it. It also requires creativity.

Same way a manager applies his acquired knowledge In a unique manner. More practice makes him a better manager and he also develops his own style of management

Management is an In-exact Science:

  1. Systematized Body of Knowledge: Science is a systematized body of knowledge Its or-ne pies are based on cause and effect relationship. e.g. water evaporates on being heated Same way management is a body systematized Knowledge All managerial principles have cause and effect relationship
  2. Principles Based on Experimentation: Scientific principles are first developed through observation and then tested through repeated experimentation. Same way management principles are also propounded after observation and repeated experimentation
  3. Universal Validity: All scientific principal have universal validity. They give same result wherever applied Principles of management do not have Universal validity. They have to be adjusted and applied according to the need of the situation. Thus. management is an in-exact science.

5 Marks Questions

Ans 11.

  1. Management is not considered to be a full-fledged profession because of the following reasons:
    • Restricted entry: Unlike management, the entry to the other professions is restricted through an examination or eligibility criteria like specific percentage in a particular degree or diploma. However, management as profession does not fulfill this criterion as anyone can be called a manager regardless of his/her academic qualifications.
    • Professional association: Unlike managers, all working professionals have to be a member of an affiliated professional association which regulates their entry, grants certificate of practice and formulates and enforces code of conduct. For example, the practicing lawyers have to be a member of Bar Council of India, the practicing doctors should have membership of All India Medical Association etc. However, in case of management, although there exist several management associations like the AIMA (All India Management Association), neither does it have any statutory backing nor is it mandatory for the practicing managers to a member of such associations.

Ans 12. The various reasons mentioned in the above paragraph that have made management so important are stated below:

  1. Management increases efficiency as it leads to reduction in costs due to optimum utilization of resources.
    “As a result of her excellent managerial competence the company is able to reduce costs and increase productivity.”
  2. Management creates a dynamic organization so that it is able to incorporate the corresponding changes in its working with any change in its business environment.
    “The company belongs to infrastructure sector, wherein regular amendments are made in the government regulations and policies. She holds regular meetings to ensure that people in her department are not only aware of the related changes but are also able to adapt to these changes effectively. This helps the company to maintain its competitive edge.”
  3. Management helps in achieving personal objectives of the employees in the organization.
    “She motivates and leads her team in such a manner that individual members are able to achieve personal goals while contributing to the overall organizational objective.”
    “The employees of the company are happy and satisfied with their remuneration, working conditions, promotion policy etc.”
  4. Management helps in the development of society by contributing effectively towards it in multiple ways”. In the process of fulfilling her duties for the growth of the organization, she helps in providing competitive services, adopting new technology, creating more employment opportunities etc. for the greater good of the people at large.”