Business Studies

Importance of management

Q: In an organisation people are given too much freedom but common objectives and standards are not told. What is the risk?

Freedom may become scattered efforts and weak control Freedom can encourage initiative, but it produces useful results only when employees understand common objectives, boundaries and performance standards. Without those reference points, individuals and departments may choose conflicting priorities, duplicate work, ignore important tasks or use resources in incompatible ways. Managers will also find it difficult to assess performance because control requires a comparison between actual results and predetermined standards. Option A is correct because unstructured freedom can scatter effort and weaken coordination and control. Option B is false: goals do not achieve themselves. Option C is false because absence of shared objectives can reduce, rather than always increase, coordination. Option D is also false because management remains necessary to define direction, communicate expectations, integrate work and review results.

Q: A company achieved its production target but material wastage increased greatly. Which aspect of importance of management will be questioned?

Efficiency and resource utilisation Achieving the target is not enough because proper use of resources is also necessary. In exams check wastage along with output.

Q: If all departments meet their own targets but the main organisational goal remains incomplete which importance of management is weakest?

Achieving common goal through coordination Departmental success is useful only when it is linked with the main goal. In exams connect department targets and overall goal with coordination.

Q: An organisation bought new technology but did not train employees. Which importance of management remained incomplete?

Human resource development and dealing with change Technology is useful only when employees can use it properly. In exams connect technology change with training.

Q: A company kept selling old models instead of improving products when customer preferences changed. Which importance was weak?

Dealing with changing environment The direct answer is option A: dealing with the changing environment. Customer preferences are part of the organisation’s external environment. When preferences change, management must observe the change, develop or improve products, and adjust decisions. Step by step, the preference changes; the old model becomes less suitable; management should respond; failure to respond shows weak adaptation. Option A is correct because it directly describes the ability to adjust to environmental change. Option B, paying employee wages, is an important activity but does not address changing customer preferences. Option C, building safety, concerns physical protection, not market adaptation. Option D, cash deposit, concerns handling money and has no direct connection with product change. Exam cue: changing customer taste usually points to adapting to the changing environment.

Q: If a manager tells employees the goals but does not motivate them which benefit will remain incomplete?

Active use of employee efforts Motivation with goal clarity improves performance. In exams see direction and motivation together.

Q: Doctors are available in a hospital but medicines and beds are not available on time. Which importance of management is missing?

Coordinated use of resources Hospital service improves only when all resources are linked on time. In exams connect hospital cases with coordination.

Q: Cost decreased in an organisation but employee fatigue and errors increased. Which balance in importance of management was disturbed?

Balance between efficiency and human resource development Low cost is good but human ability and health are also important. In exams do not treat cost saving alone as success.

In Class 12 Business Studies, this topic explains why management is essential to the success of an organisation, as part of the chapter Nature and Significance of Management. Students learn how management helps achieve common goals, improves efficiency by using resources wisely, creates a dynamic organisation that can respond to change, supports the achievement of individual objectives, and contributes to the development of society. The topic also connects management with coordination, effectiveness and organised group effort.

Hard · Level 1 · 25 questions

Practice questions

01In an organisation people are given too much freedom but common objectives and standards are not told. What is the risk?

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Answer and explanation

Correct answer: A. Freedom may become scattered efforts and weak control

Freedom can encourage initiative, but it produces useful results only when employees understand common objectives, boundaries and performance standards. Without those reference points, individuals and departments may choose conflicting priorities, duplicate work, ignore important tasks or use resources in incompatible ways. Managers will also find it difficult to assess performance because control requires a comparison between actual results and predetermined standards. Option A is correct because unstructured freedom can scatter effort and weaken coordination and control. Option B is false: goals do not achieve themselves. Option C is false because absence of shared objectives can reduce, rather than always increase, coordination. Option D is also false because management remains necessary to define direction, communicate expectations, integrate work and review results.

Importance of management

Practice questions

09In which situation is the real social development benefit of management visible?किस स्थिति में प्रबंधन से समाज विकास का वास्तविक लाभ दिखता है?

12Which option gives an incorrect conclusion about importance of management?किस विकल्प में प्रबंधन की महत्ता का गलत निष्कर्ष है?

19In which situation is management properly balancing interests?किस स्थिति में प्रबंधन हितों का संतुलन सही ढंग से बना रहा है?

21In which situation does management indirectly contribute to economic development?किस स्थिति में प्रबंधन आर्थिक विकास में अप्रत्यक्ष योगदान देता है?

24The statement says good management benefits society only by giving charity. What is correct?कथन है कि अच्छा प्रबंधन समाज को केवल दान देकर लाभ देता है। सही उत्तर क्या है?

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Analytics choices

09In which situation is the real social development benefit of management visible?

12Which option gives an incorrect conclusion about importance of management?

19In which situation is management properly balancing interests?

21In which situation does management indirectly contribute to economic development?

24The statement says good management benefits society only by giving charity. What is correct?