RBSE Solutions for Class 12 Business Studies Chapter 1 Management: Introduction, Nature, Significance and Scope

Rajasthan Board RBSE Class 12 Business Studies Chapter 1 Management: Introduction, Nature, Significance and Scope

RBSE Class 12 Business Studies Chapter 1 Textbook Exercise

RBSE Class 12 Business Studies Chapter 1 Multiple Choice Questions

Question 1.
‘‘Management is the art of getting work done from others”. This definition is is given by
(a) Lawrence Apply
(b) Mary Parker Follet
(c) Stanley Vence
(d) Louis A. Allen

Question 2.
The primary function of management is:
(a) earning adequate profits
(b) quality in various resources
(c) using at right time and at right place
(d) Fulfilling the expectations of each-section of the society

Question 3.
This is the importance of management after liberalisation :
(a) secondary
(b) primary
(c) traditional
(d)internal

Question 4.
Nature of management includes:
(a) universality of management
(b) management as profession
(c) Both (a) and (b)
(d) None of these

Question 5.
It is not included in emerging functional areas of management:
(a) environment management
(b) entrepreneurship management
(c) wholesale and retail trade management –
(d) management of changes

Answers:
1. (b) Mary Parker Follet
2. (a) earning adequate profits
3. (b) primary
4. (c) Both (a) & (b)
5. (a) environment management

RBSE Class 12 Business Studies Chapter 1 Very Short Answer Type Questions

Question 1.
Write the definition of management as given by Lawrence Appley.
Answer:
According to Lawrence Appley, “Management is the development of people and not the direction of things.”

Question 2.
State any two features of management.
Answer:

1. Management is a human activity.
2. Management is a challenging task.

Question 3.
Mention any two secondary objectives of management.
Answer:

1. To enhance quality in various resources.
2. To use them at right time and at right place.

Question 4.
What is meant by “would.be profession”?
Answer:
It means modern business practices like management, etc.

Question 5.
Management is universal. Justify this statement.
Answer:
It means that management is performed in ail the organisations at every level, irrespective of its nature, size and location.

Question 6.
Management is an intangible force. How?
Answer:
Management is intangible because we can’t see it or touch it, we can only feel its presence.

RBSE Class 12 Business Studies Chapter 1 Short Answer Type Questions

Question 1.
Explain any four characteristics of management.
Answer:
Four characteristics of management are as follows:

1. Management is a purposeful activity. Management has its pre-determined goals.
2. Management is the activity that takes place in formal groups or organisations.
3. Management is a human activity. Only humans can manage the other resources of the organisation.
4. Management is a challenging task. It uses unorganised resources to produce useful goods and service.

Question 2.
Give any four points of importance of management in pre-Iiberalised economy?
Answer:
Four points of importance of management in pre- liberalised economy are :

1. Nature of market was seller based, the seller formed the rules and regulations and people in that time followed it.
2. Nature of competition was very less as compared to the present. Today, the world is having cut-throat competition.
3. Source of competition was internal based. (Inside country only)
4. Main objective of the organisation is to earn maximum profits only.

Question 3.
Give any four points of importance of management after liberalisation policy.
Answer:
Four points of importance of management after liberalisation are as follows :

1. Nature of market is buyer-based, sellers have to work as per the buyer’s requirements.
2. Competition is very tough. Many sellers offer a single commodity, it’s customer’s choice which to buy. Previously options were less.
3. Now, whole world is a market, no boundaries of internal trade, etc.
4. Survival of the organisation now depends on the satisfaction of stakeholders, customers etc.

Question 4.
Management is both an art as well as a science. Explain.
Answer:
Management is both an art as well as a science because as in science, which is based on principles, theories and is a systemaised and organised body of knowledge which establishes relationship between cause and effect. In the same way, management is also based on certain principles and theories and is also an organised body between goals and acheivements. Now, as in art, it is a way of achieving desired results, in the same way management is also set to achieve the desired results in best possible manner. Thus, management is both an art as well as a science.

Question 5.
Management is multi-disciplinary. Explain.
Answer:
Management is multi-disciplinary because it has its relation with other disciplines also. In management some of disciplines have contributed more and others less in making management a discipline. For example, Economics has contributed to management, political science has given organisation structure, theories, biology and psychology have given theories to understand and control human behaviour. All these cited examples make management a multi-disciplinary discipline.

RBSE Class 12 Business Studies Chapter 1 Long Answer Type Questions

Question 1.
Explain the objectives of management, giving its definition.
Answer:
Definition of Management: Management is an art of getting the things done by other in most effective and efficient manner with optimum utilisation of resources.
Objectives of Management :
Management objectives are divided into four categories, They are :

1. Primary objectives
2. Secondary objectives
3. Personal objectives
4. Social objectives

Let’s explain these one by one.
1. Primary objectives :
The primary objective of management is to satisfy the expectation of different stakeholders of the organisation, so that the organisation can achieve those goals for which it was established.

• To produce goods and services at minimum cost and to earn maximum profits.
• To distribute the products and services produced at reasonable prices to satisfy the consumers.
• To pay fair remuneration to all the resources employed.
• To earn adequate profits in the organisation.

2. Secondary Objectives :
Secondary obejctives are helpful in achieving primary objectives. These are related to the internal systems of the organisation, so as to generate maximum output with minimum resources. These are :

• To enhance quality in various resources.
• To use them at right time and at the right place.
• To establish coordination in their use.

All the resources work as complementary to each other with effective working capacity.

3. Personal Objectives :
In any organisation, personal objectives means satisfying the most important resource of any organisation i.e., human resource. Human resource is the only active resource in any organisation that manages the non-active resources in order to achieve organisational goals. So, to retain the human resource and to develop the environment that is favourable to the employees to work, is the objective of management.

4. Social Objectives :
An organisation obtains title different resources (inputs) from the society and transforms them into final goods and products to the satisfaction of society and to earn profit. In social objectives following objectives are included:

• optimum utilisation and development of scarce resources.
• To protect interests of different sections of society.
• To uphold ethical behaviour and ethical practices.
• To set examples of good business practices etc.

Question 2.
Explain the importance of management?
Answer:
Importance of management is as follows :

1. In overcoming competition
2. Optimising utilisation of resources
3. Innovation and its application
4. Increasing and protecting the interests of organisation
5. Economic development of the nation
6. Coordination between different interest groups
7. Stability in society.

1. In Overcoming Competition :
In this era of cut-throat competition, management plays an importunt role to overcome it through optimum utilisation of resources in the most effective manner to achieve the organisational goals efficiently to produce quality goods with minimum cost.

2. optimising utilisation of resources :
Growth and development of an organisation is an important thing. But resources to attain this objective are limited so we have to use these resources in an optimum manner. Management helps us in this regard by proper placement or deployment of resources, so their wastage is minimum.

3. Innovation and its Application:
In today’s world, innovations and their application is essential for multidimensional development of an enterprise. Innovation means to make new products, or to add new features, new uses, to an existing product. Main aim of innovation is to beat the competition and satisfy the customer with maximum benefits. Management plays a crucial role in innovation because it is management only that perfoms all the activities of innovation.

4. Increasing and Protecting the Interest of Organisation :
For any organisation, there are three important objectives to be achieved i.e., survival, profit and growth. These three objectives are inter-related, as for growth, survival and profits are essential for long term survival, profit and growth is required. Management helps in coordinating different activities of the organisation to ensure the survival growth of the organisation. If management doesn’t coordinate between things, it will be tough for the organisation to survive.

5. Economic Development of the Nation :
Management serves as a crucial factor for the growth and well-being of a nation. To beat the international market competition, it is essential to make domestic organisations effective and sound, to take the advantage of competition for the development of the nation, which is possible only by competent management.

6. Co-ordination Between Different Interest Groups :
An organisation has different stakeholders or individuals with diverse needs and interest, e.g. in a business organisation, we have owners, employees, consumers, suppliers, creditors, investors, etc.
All these have different interests in the organisation. Under this, management of the organisation coordinates the expectations of diverse and groups, so that expectation of each group is equal to their contribution towards the organisation.

Question 3.
Explain the meaning of universality of management, and give arguments in its favour and against.
Answer:
Meaning of Universality of Management : It means that management is performed in ail the organisations at every level of organisation, irrespective of its nature, size, location and objective. The concept of universality of management implies the following:

1. The fundamental principles of management are applicable to all the organisations, regardless of their nature, size, location and kind.
2. All the managers perform the same function.
3. Management knowledge and skills may be transferred across the industries within and outside the country.

Arguments in Favour of the Concept “Universality of Management” :

1. There is universality of management among all organisations. The functions of management (planning, organising, staffing, directors and controlling) are performed in every organisation.
2. All managers get the things done through other people.
3. The principles of management apply to all the organisations, in both developed and developing countries, and are equally applicable to all economic systems. However, they have to be modified and adopted according to prevailing situations.

Arguments Against the Concept :

Management practictioners and academicians like Earnest Pale, Joan Woodward, etc. disregard universality of management, they gave the conclusion that since human needs, objectives are different in different countries, so management principles can’t be universally applied. Not only this, we can’t equally apply same management principles in two different enterprises of the same nation. The application and non-application of management principles mainly depends on the following factors :

1. Culture of the nation or organisation
2. Objectives of organisat ion
3. Organisation’s managerial philosophy/attitude.

Question 4.
Explain the functional areas of management.
Answer:
In this era of cut-throat competition, demands of various interest groups are rising day by day, and to satisfy them is the utmost priority of the organisation for its survival and growth. So, every organisation needs effective and specialised managers to perform their functions. So, this is known as Functional Areas of Management.
It is divided into three categories :

1. Functional areas of business management
2. Functional areas of non-business management
3. Emerging functional areas of management.

1. Functional Areas of Business Management :

• Production Management:
  This is concerned with planning, organising, directing and controlling the activities related to production function in an organisation, with a view to produce goods or services efficiently and effectively.
• Financial Management :
  “Finance” is the blood for any organisation, it is the most important thing to manage the finance/capital of the organisation, and this is known as Financial Management. It includes capital management, issuing and raising of funds, making investments that can give a longer term profit, etc.
• Personal/Human Resource Management :
  Among the three resources of an organisation needed (land, labour, capital), human resources is the only active resource that manages the non-active land, capital in an effective and efficient manner. This is known as H.R. Management. It includes hiring of the right person at the right place, selection, training, development, performance appraisal, etc.
• Marketing Management :
  It includes the sale of finished goods, performing the market research analysis of market demand, customer satisfaction, selection of distribution channel and managing the 4 Ps of markets i.e. product, price, place, promotion. This is known as Marketing Analysis.

2. Non-business Management Functional Areas:

• General/Public Utilities Management :
  It includes services like water, power, gas, transport, communication, medical services etc. in its scope.
• Environment Management :
  It deals with the environment or protection of the environment. Checking and preventing pollution, maintaining ecological balance, pollution control and environment protection is the major responsibility of the government, society and industries.
• Education Management :
  It deals with development of teaching-training facilities, its expansion and related activities.
• Security Management :
  This area of management involves activities like formation of military organisations, their operations and control, so that our national security remains intact.

3. Emerging Functional Areas:

• Management of public enterprises
• Maintenance management
• Investment and portfolio management
• Entrepreneurship management
• Small business management
• Farm management
• Wholesale and retail management
• Safety and risk management.

RBSE Class 12 Business Studies Chapter 1 Additional Questions

RBSE Class 12 Business Studies Chapter 1 Very Short Answer Type Questions

Question 1.
From where is the word ‘manager’ derived?
Answer:
Word ‘manager’ is derived from the Latin word ‘manure’ which means ‘hand’.

Question 2.
Which is the only active resource of organisation?
Answer:
The only active resource of any organisation is its ‘manpower’.

Question 3.
Write 5 Ms of any organisation that management manages.
Answer:
5 Ms of organisation that management manages are men, material, money, method, market.

Question 4.
Write two types of resources used in every organisation.
Answer:
Two types of resources used in every organisation are active resources and inactive resources.

Question 5.
Management is intangible. Justify this.
Answer:
Yes, management is intangible. We can’t see it, or touch it but can only feel it.

Question 6.
How did Lawrence Appley define management?
Answer:
According to Lawrence Appley, “Management is the development of people and not the direction of things”.

Question 7.
What is the full form of LPG?
Answer:
Full form of LPG is Liberalisation, Privatisation, Globalisation.

Question 8.
What is Globalisation?
Answer:
Globalisation means to trade without boundaries of countries, i.e. you can trade in whole world market.

Question 9.
What is liberalisation?
Answer:
The process of liberalising the international trade practices, rules and regulations by government is known as liberalisation. By this, trade in international market became easy.

Question 10.
“Management is to forecast, to plan, to organise, to command, to coordinate and control activities of others”. Who gave this definition of management?
Answer:
Henry Fayol defined management in this way.

Question 11.
‘Management is a purposeful activity’. Explain this.
Answer:
Management is a purposeful activity as it has same predetermined goals to achieve.

Question 12.
Who said this “Whatever a manager does, he does through making decisions”?
Answer:
Ross and More said this.

Question 13.
Management is a universal activity. Justify.
Answer:
Management is performed in all kinds of organisations, irrespective of their nature, type, size and purpose. Therefore, management is a universal activity.

Question 14.
Write four types of management obj ectives.
Answer:
Four types of management objectives are :

1. Primary objectives
2. Secondary objectives
3. Personal objectives
4. Social objectives

Question 15.
Which objectives are helpful in achieving primary objectives?
Answer:
These objectives helpful in achieving primary objectives are secondary objectives.

Question 16.
Write two primary objectives of management.
Answer:

1. To pay fair remuneration to all the resources employed.
2. To earn adequate profits in the organisation.

Question 17.
Write two secondary objectives of management.
Answer:

1. To enhance quality in various resources.
2. To use them at the right time and at the right place.

Question 18.
Before liberalisation, what was the nature of the market?
Answer:
Nature of market before liberalisation was seller based.

Question 19.
After liberalisation what was the nature of competition was?
Answer:
Nature of competition after liberalisation was.monopolistic.

Question 20.
What is fully developed profession?
Answer:
Profession based on branch of knowledge like material law, etc. is known as Fully Developed Profession.

Question 21.
What is marginal profession?
Answer:
Marginal profession is based on technical skills, like draftsmen etc.

Question 22.
Define Semi-profession.
Answer:
Semi-profession is based on technical knowledge and practice, like nurse, laboratory assistant, etc.

Question 23.
Define Profession.
Answer:
Profession can be defined as an occupation which is backed by special knowledge and training and these skills are used to serve the society and its success is not measured only in terms of money earned.

Question 24.
Write two features of profession.
Answer:
Two features of profession are :

1. There exists a specialised body of knowledge.
2. Restricted entry, based on formal training.

Question 25.
What is accounting management?
Answer:
Accounting management means maintaining records, book keeping, preparing cost accounts, making payments managing cash flows, making final accounts, etc,.

Question 26.
What is Environment Management?
Answer:
It deals with environment or protection of environment, checking and preventing pollution, maintaining ecological balance.

Question 27.
What is inventory management?
Answer:
This branch of management deals with purchase, store and supply, lifting-keeping, maintaining stock and controlling raw materials or finished goods.

Question 28.
Write four emerging functional areas of management.
Answer:

1. Event management
2. Management of changes.
3. Time management
4. Knowledge management

Question 29.
Write three functional areas of management.
Answer:

1. Functional areas of business management.
2. Functional areas of non-business management.
3. Emerging functional areas of management.

Question 30.
Write two arguments in favour of universality of management.
Answer:

1. All the managers get the things done through other people.
2. The principles of management apply to all the organisations, in both developed and developing countries.

Question 31.
Write two functional areas of non-business management.
Answer:

1. Education management
2. Law management.

Question 32.
Write two functional areas of business management.
Answer:

1. Office management
2. Transportation management

Question 33.
Law management deals with?
Answer:
Law management deals with providing justice, hearing of cases, analysis of different laws.

Question 34.
Education management deals with ?
Answer:

1. Development of teaching-training facilities.
2. Expansion of teaching-training facilities.

Question 35.
Write the names of two academicians who were in disfavour of the universality concept.
Answer:

1. Earnest Pale
2. Joan Woodward.

Question 36.
Write the names of two academicians w ho were in favour of universality concept.
Answer:

1. Henry Fayol
2. F. W. Taylor

Question 37.
Write two differences for management as science and management as
Answer:

Management as Science	Management as Art
(i) Perfection on the basis of knowledge. (ii) Formation of principles.	(i) Perfection on the basis of practice. (ii) Application and use of principles.

Question 38.
Enlist the two categories of profession.
Answer:

1. Fully developed profession,
2. Novel profession.

Question 39.
Write two features of professional management.
Answer:

1. Dedicated towards professional knowledge and techniques.
2. Application of modern management techniques.

Question 40.
Write two characteristics of art.
Answer:

1. Art is a way of achieving desired results.
2. Art requires creative skills.

Question 41.
The effective use of man and material resources to attain the organisational objectives is management. Who said this?
Answer:
Glueck said this.

Question 42.
Write the names of two inactive resources of an organisation.
Answer:

1. land,
2. capital.

RBSE Class 12 Business Studies Chapter 1 Short Answer Type Questions (SA-I)

Question 1.
Right from the stone age till this modern technological era, what has been the change in the usage of resources?
Answer:
Right from the stone age, till this modern technological era, in different time periods, the resources used viz., material, money, method, man, machine and market are more or less same, only the techniques, methods, procedure and quantity kept changing according to need, experience and research.

Question 2.
Explain the meaning of management.
Answer:
Management is an art and a science of getting the work done through others, minimising the costs, including all the activities from planning to controlling, to achieve the organisational objectives effectively and efficiently in an ever-changing environment.

Question 3.
‘Management is centuries old’. Justify the statement.
Answer:
Splendid Hindu Temple of Cambodia, Egyptian Pyramids and similarly, many other ancient heritage sites lead us to wonder about their construction and details of resource utilised. All this implies that management must have applied in the establishment and development of ancient civilisation. This shows that management is not a new concept, it’s centuries old.

Question 4.
Write the definition of management in the words of Kristner.
Answer:
Management is the process of working with and through others, to achieve organisational objectives in a changing environment. Effective and efficient use of limited resources is central to this process.

Question 5.
Explain Management as “decision making”.
Answer:
Management as decision making means that whatever a manager does, he does through making decisions. While planning, organising, coordinating, motivating or controlling, managers have to take decisions. Decision making is the process of selecting the best option among the other available options. So, a manager should be a good decision maker.

Question 6.
Write the secondary objectives of management.
Answer:
Secondary Objectives : Secondary objectives are helpful in achieving primary objectives. Secondary objectives are related to the internal systems of the organisation to accomplish the work with desired efficiency.
Objectives are :

1. To enhance quality in various resources.
2. To use them at the right, time and at the right place.
3. To establish coordination in their use.

Question 7.
Explain two Importance of Management.
Answer:

(i) Overcoming Competition :
In this era of cut-throat competition, every organisation is working hard for its survival and growth. So, sound management system is a must for any organisation to heat this competition and proves to be profitable for the organisation.

(ii) Optimising Utilisation of Resources :
Our needs and desires are endless and to fulfill those needs, resources are available in a limited quantity. So, this scenario is the same for the organisations also. They have limited resources and from those resources only they have to attain the desired results. So, management helps in using the resources in the optimum manner for the settlement of an organisation.

Question 8.
Explain four features of difference in management after liberalisation and before liberalisation.
Answer:

S.No.	Factors	Before Liberalisation	After Liberalisation
(i)	Nature of market	Seller market	Buyer market
(ii)	Nature of competition	Monopoly and limted competition	Perfect competition
(iii)	Source of competition	Internal	Both internal & external
(iv)	Basis of competition	License and quotes	Development of competitive capacity.

Question 9.
Explain features management as an art.
Answer:
Art can be’defined as systematic body of knowledge which requires skill, creativity and practice to get perfection. Management possesses all the features of art as :

1. In management also, there is systematic and organised body of knowledge which is applied into practice.
2. Like other arts, management is also based on practical and personal skills.

Question 10.
Differentiate between management as science and management as art.
Answer:

S.No.	Management as Science	Management as Art          .
(i)	Perfection on the basis of knowledge	Perfection on the basis of practice
(ii)	Formation of principles	Application and use of principles
(iii)	To define problems	It analyses the problems
(iv)	Decisions on the basis of scientific models	Decisions on the basis of insight and experience

Question 11.
Explain two functional areas of business management :
Answer:

1. Inventory Management: This branch of management deals with purchase, store and supply, lifting-keeping, maintaining stock and controlling raw materials, etc.
2. Transportation Management: It is concerned with transferring man and material safely from one place to another at minimum cost and in minimum time.

Question 12.
Is management present in your personal life ? How ?
Answer:
Yes, management is present in our personal life also, as we can see our mother who is working continuously for the betterment of family and father who is working for the family’s livelihood. It’s both of them who manage the home with the resources we have to fulfill our dreams.

Question 13.
Management is dynamic. Discuss.
Answer:
Management organises and establishes coordination between men, material, money, method, market, etc. to achieve the predetermined goals. Management is a very strong and dynamic element which makes the economy of a country dynamic and strong.

Question 14.
Explain two types of resources.
Answer:
Two types of resources are :

1. Active Resources :
   Active resources are those resources which manage the non- active resources, like men who manage the other resources like land, capital, etc.
2. Inactive Resources :
   Inactive resources are those resources which are managed by the active resources for the attainment of organisational goals like land and capital, market and which are managed by the men (active resource).

RBSE Class 12 Business Studies Chapter 1 Short Answer Type Questions (SA-H)

Question 1.
What is organisation and how is it formed?
Answer:
Two or more than two persons form an organisation and from this grouping activity family, society and other organisations are formed.

Organisations are formed for the attainment of the pre-determined goals and objectives. A group of people involved together in a coordinated manner for the attainment of pre-decided goals and objectives. This is known as organisation.

Question 2.
Write four characteristics of management and explain them.
Answer:

1. Management is a human activity :
   It can be accomplished only through elite or distinguished human beings. Such human beings are specialised and experts in management knowledge, etc.
2. Management is a creative activity :
   By increasing efficiency and effectiveness of resources, it contributes in the creation of more and more productivity.
3. Management is an integrating or coordinating force :
   Management is a process of integrating or coordinating physical, financial and human resources for accomplishing organisational goals efficiently and effectively.
4. Management is a universal activity :
   Management is performed in all kinds of organisations, irrespective of their nature, type, size and purpose. It is performed in all organisations engaged in business, politics, religion, etc.

Question 3.
What are the objectives of management ? Explain two types of management objectives.
Answer:
Management is an activity and every activity has some objectives to attain. Management also has some objectives which are known as Management Objectives.
Management objectives are categorised into four parts :
(i) Primary Objectives :
The main objective of management is to satisfy the expectation off stakeholders, so that the organisation can achieve the goals for which it was established.

1. To pay fair remuneration to all resources employed.
2. To earn adequate profits in the organisation.

(ii) Social Objectives :
An organisation obtains the different resources (input) from the society and transforms them into goods and services (output) to be sold in the market to satisfy human needs and to earn profit. An organistion has an obligation to provide maximum social welfare. In social objectives, these are included :

1. Protect the interest of different sections of society.
2. To uphold ethical behaviour and ethical practices.
3. To cite examples of good business practices, etc.

Question 4.
Explain secondary objectives of management.
Answer:
Secondary objectives are meant for the attainment of primary objectives (for which organisation has been set up). These are related to the internal systems of the organisation, to accomplish the work with desired efficiency.
Secondary objectives are :

1. To enhance quality of various resources.
2. To use them at right place and at the right time.
3. To establish coordination in their use.

Question 5.
Explain the importance of management in overcoming competition.
Answer:
In this era of cut-throat competition, every organisation is struggling hard to prove itself better than the other organisation. Under such conditions, sound management system is must for any organisation for its survival and growth. To free and overcome a competition, it is essential to increase the size and quality of production at comparatively cheaper cost with optimum utilisation of resources, this is possible only with a strong management team. So, management helps in overcoming the competition.

Question 6.
Explain management as a profession.
Answer:
In our present era, management is regarded as a profession. The management study falls in the category of professional course. As it shows some features of profession. As in ’ other professions, salary is fixed for manager. Principles, techniques, concept, theories are part of management and these are taught in universities where management exists as a discipline, for any profession also we need to get the professional degree from a university, but we can’t say that it is fully a profession because it does not fulfill all the requirements of profession. So it is clear that management is still not a full-fledged profession.

Question 7.
Explain professional management and its features.
Answer:
Professional management is not merely by appointing professionals having a degree, but it also requires a suitable professional attitude. Professional attitude is much more important than a professional degree.
Features of professional management are :

1. Dedicated towards professional knowledge and techniques.
2. Application of modern management techniques.
3. Emphasis on team spirit in place of individual decisions.

Question 8.
Explain the four functional areas of management.
Answer:
(i) Research and Development Management :
This branch of management is related with development, expansion, innovation, technology advancements related to production, distribution and marketing of goods and services.

(ii) Import and Export Management :
The main function of import and export management is to plan, organise, direct and control the activities related to exporting and importing of goods and services.

(iii) Accounting Management :
This is concerned with maintaining records, book-keeping, ledger accounting, preparing cost accounts, making payments, managing cash flows, making final accounts, keeping record of assets, etc.

(iv) Transportation Management :
It is concerned with transfer of man and material safely from one place to another at less cost and in less time.

Question 9.
What are emerging functional areas of management ? Write its types.
Answer:
With the increasing importance of management in an organisation to beat the competition, many new fields of management are emerging to beat this cut-throat competition and to provide an added advantage to organisation. Some types of emerging functional areas are:

1. Management of public enterprises
2. Maintenance of management
3. Investment and portfolio management
4. Entrepreneurship management
5. Small business management
6. Farm management.
7. Wholesale and retail trade management.

Question 10.
Management is an environment-oriented activity. Discuss.
Answer:
Management is an environment-oriented activity. All the organisations work in a’ dynamic environment which changes frequently and affects the business activity. Both the internal and external environment significantly adapt to affect the working of every organisation. Therefore, management has to scan the environment and try to adopt the changes in the environment which is a must for any organisation for its survival and growth.

Question 11.
What is environment ? Write its types.
Answer:
Environment is the surrounding atmosphere in which any organisation works or interacts in order for its survi val. If any organisation doesn’t work in accordance with the environment, then it won’t be able to survive in long term.
Types of Environment: Two types of environment are there :

1. Internal environment
2. External environment

1. Internal Environment :
It includes the factors which are internal part of the organisation. Example of Internal Environment are employees, suppliers, consumers, etc.

2. External Environment:
It includes the factors which are outside the organisation. Examples are social, legal, political, technological and ecological forces.

Question 12
Explain the process of Management.
Answer:
Process of Management Includes these things :
Planning → Organising → Staffing → Directing → Controlling.
Planning :
To prepare a framework of what to do, how to do.
Organising :
After planning, organising including how planning will be executed.
Staffing :
It Includes placing the right person at the right place at the right time for attainment of management goals.
Directing :
Manager guides the team members for the attainment of the goals, here they have to take part in the process.
Controlling :
It is the last, it includes the checking of goals that whether they can be achieved in the desired manner or not.

RBSE Class 12 Business Studies Chapter 1 Long Answer Type Questions

Question 1.
Define management. Write its features and characteristics.
Answer:
Management is an art and a science of getting the work done through others minimising the costs, including all the activities from planning to controlling, to achieve the organisational objectives effectively and efficiently in an ever changing environment.
Features of management are as follows :

1. Management is a purposeful activity. Management has predetermined goals.
2. Management is the activity that takes place in formal groups or organisation.
3. Management is a challenging task. It uses unorganised resources to produce useful goods and services.
4. Management is a science having well-developed principles, theories, techniques, which are propounded by eminent authors, thinkers and managers on the basis of experience, continuous observation and experimentation and analysis.by using scientific methods.
5. Management is an integrating or coordinating force. Management is a process of integrating or coordinating the physical, financial and human resources for accomplishing organisational goals efficiently and effectively.
6. Management is concerned with productivity.
7. Management is an intangible force. Management can’t be seen or touched, but its existence can be felt in the form of good or bad.
8. Management is an environment-oriented activity. All the organisations work in a dynamic environment which changes frequently and affects the business activities.
9. Manager is required to have leadership qualities to get the work done through others. A manager manages through leadership.
10. Management is a universal activity. Management is performed in all kinds of organisations, irrespective of their nature, type, size and purpose. It is performed in all kinds of organisations engaged in business, politics, religion, etc.

Question 2.
Discuss in detail about the nature of management on the following categories:
(i) Management as multi disciplinary subject.
(ii) Management science and art.

Answer:
With lapse of time, changes in education, different applications of managerial techniques have brought changes in the nature of management. Earlier, management was assumed to be an art, but today, it is taken as both science and art, Previously, it was regarded as a profession, but now as a developing profession.
Nature of management can be categorised in the following manner :

1. Management as muti-disciplinary discipline.
2. Management as science and art.
3. Management as a profession.
4. Management as a universal concept.

Now let us discuss these one by one :
(i) Management as a Multi-disciplinary Discipline :
Management has the integration and application of knowledge and approaches, developed by numerous disciplines. Every independent branch of knowledge is known as Discipline. Every discipline has it own objective to achieve/fulfil. Though management itself is independent discipline, but its many concepts, principles and theories are founded upon the knowledge of other disciplines like economics, sociology, anthropology, psychology, biology, mathematics, etc.

(ii) Management as Science and Art :
Management is both science and art. As a science, management also has a systemalised body of knowledge, given set of principles and theories which are universally acceptable. As an art, management also, has a systematic . and organised body of knowledge which is applied into practice. Therefore, management can be treated as both art and science. In management, both science and art complement other each other. Without one, the other becomes meaningless.

Question 3.
What is profession? Write its features.
Answer:
A Profession is a regulated vocation which requires a systemised body of knowledge and training for its practice and which is founded upon a code of conduct and commitment of service to society.
Features of profession are as follows :

1. There exists a specialised Body of Knowledge :
   Management has principles, concepts, theories and techniques. Management is widely taught in the universities and management exists as a discipline. Therefore, management is a profession.
2. Restricted Entry Based on Formal Training :
   Entry to a profession is based on a formal education and training. So, for entering into a profession, you need to complete its education and training.
3. Representative Association :
   For the development and regulation of any profession, the existence of a representative body is must.
4. Ethical Code :
   All professions have a universally-accepted code of conduct for that
   profession which they have to follow. ;

Question 4.
Explain the functional areas of business management.
Answer:
Functional areas of business management are as follows :
(i) Production Management :
Area of management which is concerned with planning, organising, directing and controlling the activities related to production function in an organisation.

(ii) Inventory Management :
This branch of management deals with purchase, storage and supply, lifting-keeping, maintaining stock and controlling raw materials or finished goods.

(iii) Marketing Management :
It is concerned with sale of finished goods, sales promotion, market research, establishment and operation of sales outlets, selection of distribution channels.

(iv) Personnel Management :
This branch of management includes activities like :
Manpower, planning, recruitment, selection, training and development, etc. Its main
objective is to manage the manpower of any organisation.

(v) Office Management :
This area of management is concerned with the activities of correspondence, obtaining records, disseminating information received, maintaining chain of communication within organisation.

(vi) Transportation Management:
It is concerned with transfer of men and material safely from one place to another at less cost and in less time.

(vii) Accounting Management:
Maintaining records, book-keeping ledger accounting, preparing balance sheet, making payments, etc. are part of this.

(viii) Import and Export Management:
The main function of import and export management is to plan, organise, direct and control the activities related to exporting and importing of goods and services.

Question 5.
Universality of Management depends on which factors for its application and non-application ?
Answer:
The application and non-application of management principles depends on the factors :
(i) Difference in Culture :
As each country or organisation has a different culture, thus all principles of management can’t be equally applicable in all countries. Not only this, every culture has a sub-culture also, so, within a country, two organisations may have different cultures which effects principles of management. This is the reason that management is a culture-based concept.

(ii) Difference in Objectives:
Some of the experts argue that there exists difference in the objectives of organisations of different sectors. Public, Private, Co-operative, government and non-government, profit and non-profit organisations differ in their objectives. Therefore, management of these different organisations have to apply different principles.

(iii) Difference in Organisation Management Outlook/Philosophy :
Managerial philosophy includes all those beliefs and assumptions on the basis of which management of an organisation is done. The managerial philosophy that to be followed, is determined by top level management. Since managerial philosophy of organisations may vary from organisation to organisation, so same management principles can’t be applied in all these organisations. They differ in their application.

Question 6.
Is management a profession ? Write the features of management as a profession.
Answer:
Profession can be defined as an occupation which is backed by special knowledge and training and these skills are used to serve the society and its success is not measured only in terms of money earned. Some features of Profession are :

1. Purpose of Service:
   For every profession and service, there exists a purpose.
2. Blocked Access :
   In any profession, you need to complete the required education and required training. So only that person, who completes these requirements can get entry.
3. Professional Council :
   All professional degrees and trainings are certified by various councils, and all have to follow their rules and regulations.
4. Codes of Ethics :
   All professions need to follow certain rules and regulations which is compulsory for them.

In management, all these features are not completely present, so we can say that management is not a complete profession. It possesses certain features of profession. They are :

1. There exists a Specialised Body of Knowledge :
   There are principles, concepts and techniques of management. Management is taught in the universities and exists as a discipline. Therefore, it is a profession.
2. Restricted Entry Based on Formal Training :
   Entry to a profession is based on a formal education and training. But entry to management profession is not restricted as there are no prescribed qualifications. So, management can’t be regarded as a profession.
3. Ethical Code :
   There is no universally accepted code of conduct for management as it is present in other professions. So, management is not a complete profession.

Therefore, all these features reveal that management is still not fully a profession but management appears to be making progress in many areas. It is not a full-fledged profession, rather it is a developing profession.

RBSE Solutions for Class 12 Business Studies