Chapter – 1 Nature & Significance Of Management (2+5 =7 marks)

Explain the term ”management” in brief?– 2 marks

Management is coordinating all the resources of an organization through the process of controlling, organising, motivating and planning (COMP) in order to achieve its goals. This process starts at the top and continues in more or less degree at every level of the organization.

State any two characteristic features of management?

Distinct activity:

• Management is a distinct activity, which consists of communicating, organizing, motivating, planning, leading, staffing, controlling, decision making, etc.
• It can be studied, experimented and practiced.

Intangible: Management is intangible i.e. it cannot be seen but it can be felt through the performance of the workers. Mismanagement if any is quickly noticed and is a sign of poor management. While efficient management reflects the efforts of the workers.

Explain briefly any two OBJECTIVES OF MANAGEMENT – 2 marks

Organizational objectives:

• The primary organizational objective of the management of any business should be to attain maximum output with minimum resources and least wastage.
• This generates high profits, reduces costs and maximizes prosperity.

Individual objectives:

• Each employee that joins an organization wants to satisfy his individual objectives, which means he would like to have good salary, develop his personality, get peer and social recognition. If his individual objectives are not satisfied, he will lose interest in his work and performance of organizational objectives may suffer.
• Hence while formulating corporate objectives, management should also consider individual objectives

Briefly explain MANAGEMENT AS A PROCESS. – 2 marks Marking scheme

• Management is regarded as a process because it consists of -
  • Setting up objectives for an enterprise; and
  • Taking a series of steps such as planning, coordinating, directing, organizing and staffing (PC-DOS) to ensure that these objectives are achieved.
• This process starts at the top and continues in more or less degree at every level of the organization.

“MANAGEMENT AS A GROUP has the responsibility of an enterprise”. Explain .– 2 marks

• Management as a GROUP refers to the Board of Directors or Executive Directors who are responsible for effectively managing the affairs of the business by guiding and controlling the work of other managers such as production, sales, finance, personnel, quality control managers, etc.
• This approach focuses on a team rather than individuals.
• This is because it is believed that management as a team can contribute more effectively and efficiently than an individual.