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

Your grandfather has retired as a director. At what level of management was he working? What functions do you think he was performing? State any two.

Or

Who are regarded as Top Management in a business organization? State any two functions of Top management? – 2 marks

Top management is the 3rd line of management, which consists of Chairman, Directors, Managing Director, General Manager and other top-level executives required to achieve the goals of the enterprise.

The functions of top management are:

• Determine the objectives of the enterprise.
• Frame the policies of the enterprise

What is meant by “Balancing” in coordination? – 2 marks

Or

State any two elements of coordination

The key elements of coordination are as follows: (BIT)

Balancing: The activities of one department must be properly balanced and supported by other departments in order to achieve optimum results.

Integration: It is the unification of all diverse group efforts, which are brought together to produce best possible results. This results in better performance of the firm.

Timing: The business activities should be planned in such a way that the functions of every employee and department are performed according to a time schedule.

What is administration – 2 marks

Administration means: (LIDS)

• Laying out broad programs, major projects, etc
• Identifying general purposes
• Determining policies
• Setting up major objectives

Administration is part of management. Comment? – 5 marks

• Some authors suggest that management is a wider concept than administration or administration is part of management.
• According to this view, management involves –
  • Responsibility to make policies
  • Responsibility for planning, organizing, directing, controlling & supervising (PC-DOS)
• Thus it is found that management begins with the administrative function at the top. As one moves down the levels of organization, managerial functions become more and more important.

Management and Administration mean the same thing” Explain this view – 5 marks

• Management and Administration are synonymous i.e. they are both identical and carry the same meaning.
• In practice, administration involves management and management involves administration. Both are complementary as well as supplementary to each other. Every officer has to perform both administrative and management functions at all levels.
• Both aim at achieving the desired goal of the business of maximising output at minimum cost and wastage.

“Administration comes first and management follows it” Comment. – 5 marks,

• Some authors suggest that administration is a wider concept than management or administration comes first and management follows it.
• According to this view,
  • Administration determines the policies while management executes those policies
  • Administration lays down the objectives of the organization while management has to direct the organization to operate under the broad policies laid down by administration in order to achieve those objectives.

Is management becoming a profession? Discuss in light of emerging trend?

Yes, management is by and large becoming a profession. This can be seen by referring to the following emerging trends in business:

1. All big companies appoint professional managers at all levels.
2. Many Indian companies take initiative to replace family members by professional mangers.
3. Proprietary managers are becoming more interested in acquiring latest knowledge and technique of management. They are sending their relatives abroad to do managerial course.
   In conclusion, it may be said that managers at the top level do not satisfy all the requirements of profession but management is becoming a profession.