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NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Chapter 1 Business Studies Class 12

NCERT Solutions for Class 12 Business Studies Chapter 1 on Nature and Significance of Management has been updated for the new academic session 2023-24. These solutions provide simplified answers to all the questions in Class 12 Business Studies Chapter 1. You can access these solutions for free without any login. 

The Memorysclub provided comprehensive explanations and step-by-step solutions to all the questions of answers for this chapter. These solutions are provided by subject experts in a well-structured manner, making it easier for students to learn and understand.

Our team of expert educators has created notes to help you read the fundamental concepts of the nature and significance of management . If you need help with any questions or want to learn about the different dimensions of the management, its importance, and its impact on business operations, I’m here to assist you. Even our chapter 1 Business Studies Class 12 notes help to solve all these concepts.

NCERT Solutions for Class 12 Business Studiea Chapter 1

What is meant by Management ?

Management is the strategy of efficiently and effectively planning, organizing, staffing, directing, and controlling the resources of organizations to achieve the enterprise goals.

2.Name any two important characteristics of management.

Two Characteristics

  1. goal oriented process
  2. all pervasive
  3. Multidimensional

3. Identify and state the force that binds all the other functions of management.

Planning is the force that binds all functions of management. It sets objectives and strategies and guides the organizing, leading, and controlling efforts toward achieving enterprise goals.

4. List any two indicators of growth of an organization.

Revenue Growth: Increasing sales volume over time is the main indicator of organizational growth. It works as the energy source for any organization to increase income through sales, services, or other business activities.

Expansion of Market Share: A growing organization often sees an expansion in its market share. It indicates that the company is gaining a larger portion of the market compared to its competitors, showcasing its increasing influence and customer base.

5. Indian Railways has launched a new broad gauge solar powertrain which is going to be a path breaking leap towards making trains greener and more environment friendly. The solar power DEMU (Diesel Electric Multiple Unit) has 6 trailer coaches and is expected to save about 21,000 liters of diesel and ensure a cost saving of Rs 12, 00,000 per year. Name the objectives of management achieved by Indian Railways in the above case.

The intro of the broad gauge solar power train by Indian Railways achieves two types of purposes of management:

Cost Efficiency: The initiative aims at substantial cost savings by reducing the dependence on diesel fuel, leading to a yearly cost saving of Rs 12,00,000. It aligns with the management objective of optimizing resource utilization and improving overall cost efficiency.

Innovation: Introducing a solar power DEMU represents an innovative approach for the Indian railway, showcasing the management’s commitment to embracing new technologies and solutions for operational improvements and environmental benefits.

Short Questions Answer for chapter 1 business studies class 12

1. Ritu is the manager of the Northern division of a large corporate house. At what level does she work in the organization? What are her basic functions?

Ritu works as the manager of the Northern division and functions at the Middle Management level in the organization. 

Her following basic functions include:

  1. Interpret the policies framed by top management.
  2. Ensure that their department has the necessary personnel.
  3. Assign vital duties and responsibilities to them.
  4. Cooperate with other departments for the smooth functioning of the organization.

2. State the basic features of management as a profession.

While management is not absolutely classified as a “profession” in the traditional sense. It exhibits certain features that are commonly associated with professional fields.” The basic features of management as a profession include:

  1. Well-defined body of knowledge:
  2. Specialized Education
  3. Ethical Standards 
  4. Professional association

3. Why is management considered to be a multi-dimensional concept?

The concept of management is multidimensional due to various reasons. 

  1.  Management encompasses a range of functions, including planning, organizing, leading, and controlling. Each function represents a distinct dimension, and collectively they contribute to the overall effectiveness of management.
  2. Management operates at different levels within an organization, such as top, middle, and lower levels. Each level involves different responsibilities, perspectives, and challenges, adding depth to the multi-dimensional nature of management.
  3. Different managerial roles require a diverse set of skills, including technical, human, and conceptual skills. This skill diversity reflects the multi-faceted nature of management.
  4. The management process involves various interconnected steps, such as decision-making, communication, and problem-solving. Each process represents a dimension that contributes to the overall effectiveness of management.

5. Coordination is the essence of management. Do you agree? Give reasons

Coordination, therefore, is not a separate function of management but its very essence. For an organization to effectively and efficiently achieve its objectives coordination is required. Some basic features are here 

Coordination integrates group efforts: Coordination unifies unrelated or diverse interests into purposeful work activity. It gives a common focus to a group effort to ensure that performance is as it was planned and scheduled.

Coordination is a continuous process: Coordination is not a one-time function but a continuous process. It begins at the planning stage and continues till controlling. Smita plans her dewali collection in June itself. She has to then ensure that there is an adequate workforce and continuously monitor whether production is proceeding according to plans. Her marketing department also has to be briefed in time to prepare their promotional and advertising campaigns.

Coordination is the responsibility of all managers: Coordination is the function of every manager in the organization. Top-level managers need to coordinate with their subordinates to ensure that the overall policies for the organization are duly carried out. Middle-level management coordinates with both the top-level and first-line managers. Operational-level management coordinates the activities of its workers to ensure that work proceeds according to plans. 

Coordination is a deliberate function: A manager has to coordinate the efforts of different people consciously and deliberately. Even where members of a department willingly cooperate and work, coordination gives direction to that willing spirit. Cooperation in the absence of coordination may lead to wasted effort and coordination without cooperation may lead to dissatisfaction among employees.

Long Questions Answers for chapter 1 business studies class 12

1. Management is considered to be both an art and science. Explain.

Management is often related as both an art and a science due to the combination of creative and systematic elements involved in its practice. Here’s an explanation of why management is considered both:

Management as an Art

Existence of theoretical knowledge: Art presupposes the presence of exact theoretical understanding. Experts in their respective areas have derived certain basic principles which apply to a particular form of art. For example, literature on dancing, public speaking, acting, or music is widely recognized.

Personalized application: The application of this essential knowledge varies depending on the individual. Art, therefore, is a very Personalized concept. For example, two dancers, two speakers, two actors, or two writers will always differ in demonstrating their art. 

Based on practice and creativity: All art is practical. Art involves the creative practice of existing theoretical knowledge. Management requires creativity in problem-solving, decision-making, and adapting to dynamic situations.

Management as a Science

Systematised body of knowledge: Science is a methodical body of knowledge based on cause-and-effect relationships. The law of gravity, for example, explains why apples fall to the ground when they fall off trees. 

Principles based on experimentation: Scientific principles are initially based on observation and later tested through repeated experimentation under controlled conditions. 

Universal validity: Scientific principles possess universal validity and application. Management, possessing similar characteristics, can be regarded as a science.

You must have understood from the foregoing discussion that 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 complement each other.

2. Do you think management has the characteristics of a full fledged profession?

While management is not absolutely classified as a “profession” in the traditional sense. It exhibits certain features that are commonly associated with professional fields.” The basic features of management as a profession include:

Well-defined body of knowledge: All professions are based on a well-defined body of knowledge, which can be acquired through the learning process. Management possesses this feature as well.

Restricted entry: To enter certain professions, individuals must either pass a qualifying exam or obtain an educational degree. For instance, in India, one must pass a specific exam administered by the Institute of Chartered Accountants of India to become a chartered accountant.

Professional association: All professions are combined with a professional association which regulates entry, grants certificates of practice, and formulates and enforces a code of conduct.

Ethical code of conduct: All professions are bound by a code of conduct that guides the behavior of its members.

3. A successful enterprise has to achieve its goals effectively and efficiently. Explain.

Achieving goals effectively and efficiently is crucial for the success of any enterprise. Here’s an explanation of these concepts in the context of business:

  1. Management is the strategy of efficiently and effectively planning, organizing, staffing, directing, and controlling the resources of organizations to achieve the enterprise goals.
  2. Effectiveness in management is concerned with doing the right task, completing activities, and achieving goals. Efficiency means doing the task correctly and with minimum cost.
  3. Both factors are crucial for an enterprise’s success in meeting its objectives. If an enterprise’s target production is 5000 units in a year. To achieve this target the manager has to achieve its goals effectively. The manager can produce 5000 units but at a higher production
  4. cost. In this case, the manager was effective but not so efficient. 
  5. At times, a business does concentrate (efficiently) more on producing goods with fewer resources i.e., cutting down cost but not achieving the target production. Hence, To achieve long-term profitability, companies must be both efficient and effective.

4. Management is a series of continuous interrelated functions. Comment.

Management is a series of continuous, interrelated functions. Here are the following points describing how management is interrelated functions.

Planning –  Planning is the function of determining in advance what is to be done and who is to do it. It implies setting goals in advance and developing a way of achieving them efficiently and effectively.

Organizing – Organising is the management function of assigning duties, grouping tasks, establishing authority, and allocating resources required to carry out a specific plan. After establishing a particular plan to achieve an organizational goal, the organizing function evaluates the activities and resources needed for implementation.

Staffing – Staffing is related to finding the right people for the right job to achieve enterprise goals through the best suitable people.

Directing – Directing involves leading, influencing, and motivating employees to perform the tasks assigned to them. It requires establishing an atmosphere that encourages employees to do their best.

Controlling – Controlling is the management function of monitoring organizational performance towards reaching organizational goals.

The above points give a deep understanding of how management functions are interdependent to function correctly.

NCERT Solution for Class 12 Business Studies Chapter 2 - Principles of Management

NCERT Solutions are crucial for class 12 business studies exams and are prepared by subject matter experts at Memorysclub.