Case Studies – (Chapter -1) Nature and Significance of Management
Q. 1. Dheeraj is working as ‘Operations Manager’ in Tifco Ltd. Name the managerial level at which he is
working. State any four functions he will perform as ‘Operations Manager’ in this company.
Ans. Dheeraj is working at middle level management.
Functions: The main task of Dheeraj is to carry out the plans formulated by the top managers. For this
he need to:
1. Interest the policies framed by top management,
2. Ensure that his department has the necessary personnel; assign necessary duties and
responsibilities to them.
3. Motivate them for higher productivity to achieve desired objectives, and
4. Cooperate with other departments for smooth functioning of the organization.
Q. 2. Volvo Ltd’s target is to produce 10000 shirts per month at a cost of Rs. 100/- per shirt. The
Production Manager achieved this target at a cost of Rs. 90/- per shirt. Do you think the ‘Production
Manager’ is effective? Give one reason in support of your answer.
Ans. Yes, the Production Manager is effective because he has completed the task and achieved the goal
of producing 10000 shirts. He is efficient also as he has achieved the target at a lower cost.
Q. 3. Yash Ltd. is facing a lot of problems these days. It manufactures electronic goods like washing
machines, microwave ovens, refrigeration and air-conditioners. The company’s margins are under
pressure and the profits and market marketing department blames production department for
producing goods, which are not of good quality to meet customers’ expectations. The finance
department blames both production and marketing departments for declining return on investment
and bad marketing.
1. What quality of management do you think the company is lacking? Justify your answer.
2. State the importance of the concept identified in (a).
Ans.
1. Coordination: because production, marketing and finance departmental efforts are not coordinated
for achieving organizational objectives harmoniously. As a result, the company’s profits and market
share are declining.
2. Importance of Coordination
Growth in size:
Functional differentiation:
Specialization:
Q. 4. Aman, Ahmad and Ally are partners in a firm engaged in the distribution of dairy products in
Maharashtra state. Aman is a holder of Senior Secondary School Certificate from Central Board of
Secondary Education with Business Studies as one of his elective subjects. Ahmad had done his post
graduation in History and Ally in dairy farming. One day there was a serious discussion between
Ahmad and Ally regarding the nature of management. Ahmad argued that management was a
profession whereas Ally argued against it saying that the legal and medical professions are the only
professions because they fulfill all the conditions of profession.
Aman on the basis of his knowledge of business studies explained the nature of management as a
profession to Ahmad and Ally.
Explain how Aman would have satisfied both Ahmad and Ally.
PGT Commerce – VK Singhal (7015406635/9671925624)
,Ans. Aman would have satisfied both Ahmad and Ally by giving the following explanation:
Management is a profession. However, it is not a full-fledged profession like legal, accounting or medical
professions because it does not meet the exact criteria of a profession.
The application of the features of a profession to management is examined below:
1. Well-defined body of knowledge:
2. Restricted Entry:
3. Professional Association:
4. Ethical code of conduct:
5. Service motive:
Q. 5. To meet the objectives of the firm, the management of Bhavya Ltd. offers employment to
physically challenged persons. Identify the organizational objective it is trying to achieve. Give reason
in support of your answer.
Ans. Growth, since number of employees is increasing, it leads to increase in production and hence
growth of the company.
Q. 6. B Ltd. wants to modify its existing product, CD players in the market due to decreasing
sales. What decisions/steps should each level of management take to give effort to these
decisions?
Ans. The company wants to modify its existing product, CD players in the market because of today’s
dynamic business environment. For this, each level of management must divide its task.
Functions of top management:
1. They must plan the technique of modification/modernization of the product. They may plan to
manufacture DVD players or Blue raw players, etc. to modernize the product.
2. They must organize and assemble necessary resources and coordinate the efforts of all the
departments towards modernization.
Functions of middle management:
1. They must implement the plans laid down by top management in their respective departments or
divisions.
2. They must interpret the plan and policies to their subordinates.
Functions of operational/supervisory management:
1. They must assign the tasks to workforce and supervise that the task is carried on in the right
direction.
2. They must maintain the quality of work and reduce the wastage by improving the motivation and
loyalty of workers.
Q. 7. Sonali is the manager of a large company manufacturing garments for kids. She plans her winter
collection in the month of August itself. Then, she ensures that there is adequate workforce. She
continuously monitors whether production is proceeding according to plans. She asks the marketing
department to prepare their promotional and advertising campaigns also.
1. Identify and explain the concept of management explained in the above para.
2. What characteristic feature does the above para highlight? State.
Ans.
PGT Commerce – VK Singhal (7015406635/9671925624)
, 1. Coordination
It is the force that binds all the functions of management. It is the common thread that runs through all
activities such as purchase, production, sales, finance, etc. to ensure continuity in the working of the
organization.
Coordination is not a separate function of management. It is the essence of management. It is implicit
and inherent in all functions of management.
Top management plans for the entire organization.
According to these plans, the organizational structure is developed and staffed.
In order to ensure that these plans are executed according to plans, directing is requires.
Any deviation between the actual and the standard performance is corrected at the stage of
controlling.
1. Coordination is a continuous process. It begins at the planning stage and continues till controlling.
Q. 8. H. Tech Ltd. is a company producing IT services. The company’s profits are enough for the
survival and growth. The management of the company believes that a satisfied employee creates a
satisfied customer, who in turn creates profits that lead to satisfied shareholders. So, it pays
competitive salaries and perks to its all employees. All the employees are happy working in the
organization because of personal growth and development.
The company has a strong sense of social responsibility. It has set up an Engineering College in which
one-third of the students are girls to whom the company gives 50% scholarship.
Is the management of H. Tech Ltd. fulfilling its objectives? Justify your answer by giving reasons.
Ans. Yes, the management of H. Tech Ltd. is fulfilling all the objectives – organizational objectives, social
objectives and personal objectives.
1. Organizational objectives
2. Social objectives
3. Personal objectives
Q. 9. Govinda Ltd. is a highly reputed company. Different functions are performed by different
individuals in this company, who are bound together in a hierarchy of relationships. Every individual
in the hierarchy is responsible for successful completion of a particular task. Mr. Gauranga is
responsible for the welfare and survival of the organization. He formulates overall organizational
goals and strategies for their achievement. MR. Nityanand ensures that quality of output is
maintained, wastage of materials is minimized and safety standards are maintained. Mr. Sanatan
assigns necessary duties and responsibilities to the personnel and motivates them to achieve desired
objectives
At what levels of management are MR. Gauranga, Mr. Nityanand and Mr. Sanatan working in Govinda
Ltd.? Justify your answer.
Ans.
1. Mr. Gauranga is working at the top level management.
He is responsible for the welfare and survival of the organization. He formulates overall organizational
goals and strategies for their achievement.
2. Mr. Nityanand is working at the lower level management.
PGT Commerce – VK Singhal (7015406635/9671925624)
Q. 1. Dheeraj is working as ‘Operations Manager’ in Tifco Ltd. Name the managerial level at which he is
working. State any four functions he will perform as ‘Operations Manager’ in this company.
Ans. Dheeraj is working at middle level management.
Functions: The main task of Dheeraj is to carry out the plans formulated by the top managers. For this
he need to:
1. Interest the policies framed by top management,
2. Ensure that his department has the necessary personnel; assign necessary duties and
responsibilities to them.
3. Motivate them for higher productivity to achieve desired objectives, and
4. Cooperate with other departments for smooth functioning of the organization.
Q. 2. Volvo Ltd’s target is to produce 10000 shirts per month at a cost of Rs. 100/- per shirt. The
Production Manager achieved this target at a cost of Rs. 90/- per shirt. Do you think the ‘Production
Manager’ is effective? Give one reason in support of your answer.
Ans. Yes, the Production Manager is effective because he has completed the task and achieved the goal
of producing 10000 shirts. He is efficient also as he has achieved the target at a lower cost.
Q. 3. Yash Ltd. is facing a lot of problems these days. It manufactures electronic goods like washing
machines, microwave ovens, refrigeration and air-conditioners. The company’s margins are under
pressure and the profits and market marketing department blames production department for
producing goods, which are not of good quality to meet customers’ expectations. The finance
department blames both production and marketing departments for declining return on investment
and bad marketing.
1. What quality of management do you think the company is lacking? Justify your answer.
2. State the importance of the concept identified in (a).
Ans.
1. Coordination: because production, marketing and finance departmental efforts are not coordinated
for achieving organizational objectives harmoniously. As a result, the company’s profits and market
share are declining.
2. Importance of Coordination
Growth in size:
Functional differentiation:
Specialization:
Q. 4. Aman, Ahmad and Ally are partners in a firm engaged in the distribution of dairy products in
Maharashtra state. Aman is a holder of Senior Secondary School Certificate from Central Board of
Secondary Education with Business Studies as one of his elective subjects. Ahmad had done his post
graduation in History and Ally in dairy farming. One day there was a serious discussion between
Ahmad and Ally regarding the nature of management. Ahmad argued that management was a
profession whereas Ally argued against it saying that the legal and medical professions are the only
professions because they fulfill all the conditions of profession.
Aman on the basis of his knowledge of business studies explained the nature of management as a
profession to Ahmad and Ally.
Explain how Aman would have satisfied both Ahmad and Ally.
PGT Commerce – VK Singhal (7015406635/9671925624)
,Ans. Aman would have satisfied both Ahmad and Ally by giving the following explanation:
Management is a profession. However, it is not a full-fledged profession like legal, accounting or medical
professions because it does not meet the exact criteria of a profession.
The application of the features of a profession to management is examined below:
1. Well-defined body of knowledge:
2. Restricted Entry:
3. Professional Association:
4. Ethical code of conduct:
5. Service motive:
Q. 5. To meet the objectives of the firm, the management of Bhavya Ltd. offers employment to
physically challenged persons. Identify the organizational objective it is trying to achieve. Give reason
in support of your answer.
Ans. Growth, since number of employees is increasing, it leads to increase in production and hence
growth of the company.
Q. 6. B Ltd. wants to modify its existing product, CD players in the market due to decreasing
sales. What decisions/steps should each level of management take to give effort to these
decisions?
Ans. The company wants to modify its existing product, CD players in the market because of today’s
dynamic business environment. For this, each level of management must divide its task.
Functions of top management:
1. They must plan the technique of modification/modernization of the product. They may plan to
manufacture DVD players or Blue raw players, etc. to modernize the product.
2. They must organize and assemble necessary resources and coordinate the efforts of all the
departments towards modernization.
Functions of middle management:
1. They must implement the plans laid down by top management in their respective departments or
divisions.
2. They must interpret the plan and policies to their subordinates.
Functions of operational/supervisory management:
1. They must assign the tasks to workforce and supervise that the task is carried on in the right
direction.
2. They must maintain the quality of work and reduce the wastage by improving the motivation and
loyalty of workers.
Q. 7. Sonali is the manager of a large company manufacturing garments for kids. She plans her winter
collection in the month of August itself. Then, she ensures that there is adequate workforce. She
continuously monitors whether production is proceeding according to plans. She asks the marketing
department to prepare their promotional and advertising campaigns also.
1. Identify and explain the concept of management explained in the above para.
2. What characteristic feature does the above para highlight? State.
Ans.
PGT Commerce – VK Singhal (7015406635/9671925624)
, 1. Coordination
It is the force that binds all the functions of management. It is the common thread that runs through all
activities such as purchase, production, sales, finance, etc. to ensure continuity in the working of the
organization.
Coordination is not a separate function of management. It is the essence of management. It is implicit
and inherent in all functions of management.
Top management plans for the entire organization.
According to these plans, the organizational structure is developed and staffed.
In order to ensure that these plans are executed according to plans, directing is requires.
Any deviation between the actual and the standard performance is corrected at the stage of
controlling.
1. Coordination is a continuous process. It begins at the planning stage and continues till controlling.
Q. 8. H. Tech Ltd. is a company producing IT services. The company’s profits are enough for the
survival and growth. The management of the company believes that a satisfied employee creates a
satisfied customer, who in turn creates profits that lead to satisfied shareholders. So, it pays
competitive salaries and perks to its all employees. All the employees are happy working in the
organization because of personal growth and development.
The company has a strong sense of social responsibility. It has set up an Engineering College in which
one-third of the students are girls to whom the company gives 50% scholarship.
Is the management of H. Tech Ltd. fulfilling its objectives? Justify your answer by giving reasons.
Ans. Yes, the management of H. Tech Ltd. is fulfilling all the objectives – organizational objectives, social
objectives and personal objectives.
1. Organizational objectives
2. Social objectives
3. Personal objectives
Q. 9. Govinda Ltd. is a highly reputed company. Different functions are performed by different
individuals in this company, who are bound together in a hierarchy of relationships. Every individual
in the hierarchy is responsible for successful completion of a particular task. Mr. Gauranga is
responsible for the welfare and survival of the organization. He formulates overall organizational
goals and strategies for their achievement. MR. Nityanand ensures that quality of output is
maintained, wastage of materials is minimized and safety standards are maintained. Mr. Sanatan
assigns necessary duties and responsibilities to the personnel and motivates them to achieve desired
objectives
At what levels of management are MR. Gauranga, Mr. Nityanand and Mr. Sanatan working in Govinda
Ltd.? Justify your answer.
Ans.
1. Mr. Gauranga is working at the top level management.
He is responsible for the welfare and survival of the organization. He formulates overall organizational
goals and strategies for their achievement.
2. Mr. Nityanand is working at the lower level management.
PGT Commerce – VK Singhal (7015406635/9671925624)
