Case Study Chapter 1 Nature and Significance of Management

Please refer to Chapter 1 Nature and Significance of Management Case Study Questions with answers provided below. We have provided Case Study Questions for Class 12 Business Studies for all chapters as per CBSE, NCERT and KVS examination guidelines. These case based questions are expected to come in your exams this year. Please practise these case study based Class 12 Business Studies Questions and answers to get more marks in examinations.

Case Study Questions Chapter 1 Nature and Significance of Management

Read the source given below and answer the following questions :
A business organisation attains top position only because of the quality of management. Successful organisations do not achieve their goals by chance but by following deliberate process called management. On the other hand, lack of proper management results in wastage of time, money and efforts. Most of businesses fail due to poor management. Management is a life-giving element in every business. Without it, the resources of production will remain resources and shall never become production.

Questions :

Question. Good manager not only focuses on prosperity of management but he also focuses on prosperity of employees. This is related to which importance of management?     
(a) Management helps in achieving organisational’s goal.
(b) Management creates dynamic organisation.
(c) Management improves efficiency.
(d) Management helps in achieving personal goals.

Question. Management is called a process because       
(a) it involves coordination.
(b) it involves series of functions.
(c) it involves achieving multiple objectives.
(d) none of the above

Question. In absence of management, resources:     
(a) never become production
(b) can not be used effectively
(c) can not be used efficiently
(d) all of the above

Question. A successful organisation achieves its goal not by chance but by following a process called:   
(a) Coordination
(b) Planning
(c) Management
(d) Controlling

Read the source given below and answer the following questions :
Coordination, therefore, involves synchronisation of different actions or efforts of the various units of an organisation . It ensures planned objectives are achieved with minimum cost. After analysing the above features we can say that coordination is not a simple function of management but it is the essence of management or in other words we can say that all the functions are flowers and coordination is a thread that ties these flowers to form the garland of organisation.

Questions :

Question. Coordination acts as a thread to tie different functions of management. This is related to which feature of coordination?
(a) Coordination integrates group efforts.
(b) Continuous process
(c) Coordination is a pervasive function.
(d) Coordination is a deliberate function.

Question. Synchronisation of different actions is called :     
(a) Coordination
(b) Management
(c) Planning
(d) Organising

Question. Coordination is a :       
(a) function of management
(b) essence of management
(c) feature of management
(d) none of the above

Question. Coordination ensures planned objectives are     
(a) communicated to everyone.
(b) set up accurately.
(c) achieved with minimum cost.
(d) none of the above

Read the source given below and answer the following questions :
Management consists of a series of interrelated functions that are performed by all managers, for examples, managers have to plan the objective of the firm, organise resources to achieve that objective, recruit and select employees who can implement these objectives. Giving directions, communicating and motivating these employees to achieve objectives effectively and efficiently and ultimately checking whether everything is going as per plan or not.

Questions :

Question. By communicating and motivating, the manager performs which function of management ?     
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

Question. By setting up of objective, management performs which function?       
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

Question. By recruiting and selecting of employees for implementing the objectives, Manager performs which function?     
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

Question. “Ultimately checking whether everything is going as per plan or not”, this line indicates which function of management?
(a) Planning
(b) Organising
(c) Staffing
(d) Controlling

Read the source given below and answer the following questions :
Anil is a Managing director in a toy manufacturing company. He decided to set up a new manufacturing unit of his company in a rural area of Bihar where job opportunities are very less. He believes in using environmental friendly methods of production and aims at giving employment opportunities to the disadvantaged  section of the community As a manager he aims at reducing costs and increasing productivity through better planning, organizing, directing staffing and controlling the activities of the organization. Anil considers human resources as the greatest asset of any organization. Getting work done through others is a major task of a manager as per the views of Anil. As a manager Anil believes that his task is to make workers work towards achieving the organizations’ goals. 

Questions :

Question. Identify the objective of management discussed in the given case (Choose the correct alternative)
(a) Economic objective
(b) Organizational objective
(c) Social objective
(d) Personal objective

Question. Identify the level of management at which Anil is working.
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) Supervisory level management

Question. “Getting work done through others is a major task of a manager as per the views of Anil”. Which dimension of management is reflected by Anil’s view? (Choose the correct alternative)
(a) Management of people
(b) Management of work
(c) Management of operations
(d) Management of resources

Question. “As a manager, he aims at reducing costs and increasing productivity”. Name the importance of management highlighted in the given statement. (Choose the correct alternative)
(a) Management helps in achieving group goals.
(b) Management creates a dynamic organization.
(c) Management increases efficiency.
(d) Management helps in achieving personal objectives.

Read the source given below and answer the following questions :
XOLO Power Ltd. set up a factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity in rural areas. The revenue earned by the company was sufficient to cover the costs and the risks. As the demand of lanterns was increasing day by day, the company decided to increase production to generate higher sales. For this they decided to employ people from a nearby village as very few job opportunities were available in that area. The company also decided to open schools and creches for the children of its employees The General Manager of the company, Nishant believes that an organization should provide  good quality products and services, create employment opportunities and adapt new technology for the greater good of the people. According to him, in order to be successful, an organization must change itself and its goals according to the needs of the environment. As per Nishant’s viewpoint, in order to ensure success a  business needs to add to its prospects in the long run. He firmly believes that in order to remain in the industry, management must exploit fully the given resources.

Questions :

Question. Which set of managerial objectives are mentioned in the given case. (Choose the correct alternative)
(a) Personal objectives and social objectives
(b) Social objectives and group objectives
(c) Organizational objectives and social objectives
(d) Organizational objectives and personal objectives

Question. Which organizational objective is mentioned in the given case. (Choose the correct alternative)
(a) Survival
(b) Growth
(c) Profit
(d) Operational efficiency

Question. “An organization must change itself and its goals according to the needs of the environment”. Identify, from the following alternatives, the characteristic of management discussed in the given statement. (Choose the correct alternative)
(a) Management is multidimensional
(b) Management is a goal oriented process
(c) Management is a group activity
(d) Management is a dynamic function

Question. “Nishant believes that an organization should provide good quality goods and services, create employment opportunities and adapt new technology for the greater good of the people”. Identify the importance of management mentioned in the given statement. (Choose the correct alternative)
(a) Management increases efficiency
(b) Management creates a dynamic organization
(c) Management helps in the development of society
(d) Management helps in achieving group goals

Read the source given below and answer the following questions :
An organization is a collection of diverse individuals with different needs. Every member of the group has a different purpose of joining the organization but as members of the organization they work towards fulfilling the common organizational goal. Bhagwati Enterprises is also such an organization. The firm deals in manufacturing of shoes. The company’s margins are under pressure and the profits and market share are declining. The production department blames marketing for not meeting sales targets and marketing blames production department for producing goods, which are not of good quality meeting customers’ expectations. The finance department blames both production and marketing for declining returns on investment and poor marketing. On investigation the CEO of the company Mr. Gopal Rao found that the organization was lacking an important quality of management. This managerial quality aims at securing unity of action in the realization of the common purpose. It acts as the binding  force between the departments and ensures that all action is aimed at achieving the goals of the organization. 

Questions :

Question. Identify the characteristic of managerial quality (identified in part (i)). Which is discussed in the given paragraph. (Choose the correct alternative)
(a) It integrates group efforts
(b) It ensures unity of action
(c) It is an all pervasive function
(d) It is the responsibility of all the managers

Question. According to you, which characteristic of management is lacking in Bhagwati Enterprises? (Choose the correct alternative)
(a) Management is multidimensional
(b) Management is a continuous process
(c) Management is an intangible force
(d) Management is a group activity

Question. “This managerial quality aims at securing unity of action in the realization of the common purpose”. Which managerial quality is being talked about in the given statement? (Choose the correct alternative)
(a) Cooperation
(b) Coordination
(c) Effectiveness
(d) Efficiency

Question.  Which one of the following functions is not performed by Mr. Gopal Rao as the CEO of the company.
(a) Coordinating the activities of different departments.
(b) Ensuring welfare and survival of the organization.
(c) Assigning necessary duties and responsibilities to the workers.
(d) Formulating overall organizational goals and strategies for their achievement.

Read the source given below and answer the following questions :
Shilpa is working as a marketing head in an insurance company. She has been holding this position for long. She is an experienced manager who believes that organisations are  made up of people who have different personalities , backgrounds, experiences and objectives. According to her, people become part of the organization to satisfy their diverse needs.Shilpa is of the view that all organisations have to function in an environment that is constantly  changing. Hence, during the spread of Corona virus pandemic, she came up with new insurance products, which were designed as per the present needs and requirements of the customers. Soon the insurance products developed by Shilpa became a hit and the organization was able to achieve its goals. The goal of the organization  which Shilpa wanted to achieve acted as a vital incentive for the continued successful operation of the enterprise. Before developing the new products, Shilpa determined in advance what isto be done and who is to do it. She set goals in advance and developed a way of achieving them efficiently and effectively. 

Questions :

Question.  Which importance of management is mentioned in the given case. (Choose the correct alternative)
(a) Management increases efficiency
(b) Management creates a dynamic organization
(c) Management helps in the development of society.
(d) Management helps in achieving group goals

Question.  “Before developing the new product, Shilpa determined in advance what is to be done and who is to do it. She set goals in advance and developed a way of achieving them efficiently and effectively”. Which managerial function is achieved by Shilpa here? (Choose the correct alternative)
(a) Planning
(b) Organizing
(c) Directing
(d) Controlling

Question. During the spread of coronavirus pandemic, Shilpa came up with new insurance products to ensure ____________ of the company in the long run.
(a) Growth
(b) Survival
(c) Welfare
(d) Profit

Question. “The goal of the organization which Shilpa wanted to achieve acted as a vital incentive for the continued successful operation of the enterprise”. Which goal of the organization Shilpa wanted to achieve?
(a) Growth
(b) Survival
(c) Profit
(d) Efficiency 

Read the source given below and answer the following questions :
Sameer is a foreman in a factory. He directs all the members under him to follow the targets and advises them to put their efforts in the direction of the achievement of these targets. He leads, influences and motivates the workers to perform the tasks assigned to them. He encourages the employees to do their best. Sameer was assigned a target of 1,000 units in the month of July. For this he and his team had to operate on double shifts. Sameer was able to achieve the production target but at a higher production cost. 

Questions :

Question. Name the function of management Sameer is performing in the above paragraph.(Choose the correct alternative)
(a) Planning
(b) Organisaing
(c) Directing
(d) Controlling

Question. Which of the following functions is performed by Sameer as a foreman.
(a) Interpreting the policies formed by top management
(b) Assigning necessary duties and responsibilities to the workers.
(c) Directly overseeing the efforts of the workers
(d) Coordinating the activities of different departments.

Question. With reference to the above case, Sameer believes in motivation, teamwork , communication and achievement of objectives. Sameer in the given case is ………………….. . (Fill in the blank with the correct alternative)
(a) Effective
(b) Efficient
(c) Cooperative
(d) Goal oriented 

Question. At which level of management, Sameer is working . (Choose the correct alternative)
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) None of the above 

Read the source given below and answer the following questions :
Sana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s objective is to promote the sales of Indian handloom and handicraft products. It sells fabrics, furnishings, readymades and household items made out of  traditional Indian fabrics. Sana decides quantities, variety, colour and texture of all the above items and then allocates resources for their purchase from different suppliers. She appoints a team of designers and crafts people in the company, who developed some prints for bed covers in bright colours on silk. Although the products looked very attractive and impressive, they were relatively expensive on the front of affordability for an average customer. Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control. 

Questions :

Question. With reference to the above case, at which level of management Sana is working?
(a) Lower level
(b) Top level
(c) Middle level
(d) Shop floor

Question. “She appoints a team of designers and crafts people in the company, who developed some prints for bed covers in bright colour on silk.” Which function of management is highlighted in this context?
(a) Controlling
(b) Staffing
(c) Planning
(d) Directing 

Question. In the above case “company’s objective is to promote the sales of Indian handloom and handicraft products.” The above line focuses on which feature of management?
(a) Management is an intangible force
(b) Management is a goal oriented process
(c) Management is pervasive in nature
(d) Management is a continuous process 

Question. “Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control”. Which function of management is highlighted in this context? 
(a) Controlling
(b) Staffing
(c) Organizing
(d) Planning 

Read the source given below and answer the following questions :
Alcargo Ltd is a operating its business on large scale. Co. realizes that human resources are the most important assets of its business, So HRM Department is set up to show a developmental path to the employees through proper training modules and joben richment. Time to time incentives and awards are given to employees which was based on their performance, which keeps the employees highly motivated. Ravi , just a graduate inhumanities is appointed as the Plant superintendent in the company. Ravi knew that there are certain theories and principles of management based on deep observation and experimentation. So, he studied various theories and principles of management before joining the Company. Ravi is very energetic and he likes to deal with severe situations.On August 20th, He informed his boss that the goal he had been assigned had been achieved and the quality was also very good. The best part is that there is one day left for the deadline ,which is August 21.However,his boss was dissatisfied because the expenses incurred by his team to complete the project exceeded the upper limit (norms).

Questions :

Question. Which objective of management is pursued by management of Alcargo Ltd.:
(a) Organizational objectives
(b) Social objectives
(c) Personal objectives
(d) None of these 

Question. Identify the feature of profession which is not applicable here – “Ravi, just a graduate in humanities is appointed as the Plant superintendent in the company.’
(a) Well defined body of knowledge
(b)Restricted Entry
(c)Ethical code of conduct
(d)Service Motive 

Question. Which aspect of management is violated by Ravi in above case?
(a) Planning
(b) Efficiency
(c) Effectiveness
(d) Controlling 

Question. Identify the nature of management highlighted inthisline-“Ravi knew that there are certain theories and principles of management based on deep observation and experimentation.”
(a) Management as Profession
(b) Management as Science
(c) Management as an Art
(d)None of the above 

Question. Which aspect of management is followed by Ravi in above case?
(a) Planning
(b) Efficiency
(c) Effectiveness
(d) Controlling