Introduction to Management: Meaning, Nature, Importance; Principles; Levels and Functions Questions

Question 1

What is meant by effectiveness?

Accepted Answer

Effectiveness means achieving the desired objectives and outcomes (doing the right things).

Question 2

State any one function of management.

Accepted Answer

Planning is a function of management in which objectives are decided and courses of action are selected in advance.

Question 3

Define management.

Accepted Answer

Management is the process of planning, organising, staffing, directing and controlling resources through and with people to achieve organisational objectives efficiently and effectively.

Question 4

What is meant by efficiency?

Accepted Answer

Efficiency means doing work with minimum cost, time and wastage, i.e., optimum utilisation of resources (doing things right).

Question 5

What is authority?

Accepted Answer

Authority is the right to take decisions and give orders needed to carry out assigned responsibilities.

Question 6

Name any one principle of management given by Fayol.

Accepted Answer

Unity of command is a Fayol principle which states that an employee should receive orders from only one superior.

Question 7

Explain the nature/characteristics of management. (Any three)

Accepted Answer

Management has the following **characteristics** (any three):

- **Goal-oriented**: Every activity is directed towards achieving organisational objectives.
- **Continuous process**: Planning, organising, directing and controlling are performed repeatedly, not once.
- **Pervasive (universal)**: Needed in every organisation (business, hospital, NGO) and at every level.

These points show that management is not a single action but an ongoing, coordinated effort to achieve results.

Question 8

Differentiate between efficiency and effectiveness.

Accepted Answer

**Efficiency** is about **resource utilisation**—doing work with minimum cost, time and wastage (**doing things right**). **Effectiveness** is about **goal achievement**—achieving the desired objectives (**doing the right things**).

| Basis | Efficiency | Effectiveness |
|---|---|---|
| Focus | Input/resources | Output/goals |
| Meaning | Best use of resources | Achieving desired results |
| Key idea | Doing things right | Doing the right things |

A good manager aims for both: achieving targets while minimising waste.

Question 9

State Fayol’s principles of management. (Explain any three)

Accepted Answer

Any three Fayol principles (with brief explanation):

- **Division of work**: Specialisation increases efficiency and quality (separate HR, accounts, production).
- **Unity of command**: One employee should receive orders from **one superior** to avoid confusion.
- **Equity**: Managers should treat employees with **fairness and justice** to build loyalty.

These principles act as practical guidelines for managing people and work effectively.

Question 10

Explain the functions of management (POSDC).

Accepted Answer

The main **functions of management** are:

- **Planning**: deciding objectives and actions in advance.
- **Organising**: arranging resources and assigning responsibilities.
- **Staffing**: recruiting, selecting and developing employees.
- **Directing**: guiding, motivating and communicating with employees.
- **Controlling**: comparing actual performance with standards and taking corrective action.

Flow (easy to draw in exam):

Planning → Organising → Staffing → Directing → Controlling

Question 11

Explain levels of management and their main roles.

Accepted Answer

There are three main **levels of management**:

- **Top level** (CEO/MD/Board): sets **vision, mission, policies** and long-term strategy.
- **Middle level** (department heads): converts policies into **departmental plans**, coordinates and controls performance.
- **Lower level** (supervisors/foremen): handles **day-to-day supervision**, discipline and execution on shop floor.

| Level | Focus | Examples |
|---|---|---|
| Top | Strategic/policy | CEO, Board |
| Middle | Tactical/coordination | Branch/Dept manager |
| Lower | Operational/supervision | Supervisor, Foreman |

Question 12

Differentiate between unity of command and unity of direction.

Accepted Answer

**Unity of command** means one employee should receive orders from **one superior** only, whereas **unity of direction** means activities with the same objective should follow **one plan** under **one head**.

| Basis | Unity of Command | Unity of Direction |
|---|---|---|
| Meaning | One boss for one employee | One plan for one set of activities |
| Purpose | Avoids conflicting orders | Ensures coordinated efforts |
| Focus | Reporting relationship | Common objective/plan |

Both principles reduce confusion and improve **coordination** in the organisation.

Question 13

Explain why management is considered both an art and a science.

Accepted Answer

Management is considered both **art** and **science** because it combines **systematic knowledge** with **practical skill**.

### Management as an **Art**
- **Personal skill**: A manager uses **leadership**, **communication** and **motivation** to get work done.
- **Creativity and judgement**: Real-life problems are not identical; managers use **experience** and judgement.
- **Result-oriented**: Success is measured by outcomes like productivity, quality, customer satisfaction.

### Management as a **Science**
- **Systematic body of knowledge**: Concepts like **planning**, **organisation structure**, **control process** are studied.
- **Principles and generalisations**: Guidelines (e.g., **unity of command**, **division of work**) help predict outcomes.
- **Cause–effect relationships**: For example, clear targets and feedback often improve performance.

### Conclusion
Therefore, management uses scientific principles, but applying them effectively needs the art of handling people and situations.

Question 14

Explain Fayol’s principles of management and their practical relevance. (Any five principles)

Accepted Answer

Henri Fayol suggested principles that act as **guidelines** for managers. Any five with relevance are:

1) **Division of work**: Specialisation increases **efficiency** and **quality**.
   - Example: separate HR, accounts and production improves speed and expertise.

2) **Authority and responsibility**: Authority should match responsibility.
   - If a manager is responsible for results, they must have authority to allocate resources.

3) **Unity of command**: One employee should receive orders from **one boss**.
   - Reduces confusion and avoids conflicting instructions.

4) **Unity of direction**: One plan and one head for activities having same objective.
   - Ensures all departments move towards a common goal.

5) **Equity**: Fair and just treatment improves **morale** and loyalty.

Quick comparison (helps in exams):

| Principle | Key idea | Benefit |
|---|---|---|
| Unity of command | One boss | Clarity, less conflict |
| Unity of direction | One plan | Coordination, goal focus |

Thus, Fayol’s principles support disciplined, coordinated and human-friendly management.

Question 15

Explain the control process. Also show it in a simple flowchart and give one example.

Accepted Answer

The **control process** ensures that actual performance matches planned standards. It is a continuous corrective function.

### Steps in the control process
1) **Setting standards**: Fix expected targets (quality, time, cost, output).
2) **Measuring performance**: Collect actual results through reports/inspection.
3) **Comparing with standards**: Identify deviations (positive or negative).
4) **Analysing deviations**: Find reasons (machine breakdown, poor training, wrong plan).
5) **Corrective action**: Improve methods, provide training, revise plan/standards.

### Simple flowchart (draw in exam)
Standards → Measurement → Comparison → Deviation analysis → Corrective action → Feedback

### Example
If monthly sales standard is 100 units but actual sales are 80, the manager compares results, identifies reasons (low promotion/stock-outs), and takes corrective action (increase promotion, ensure stock, train sales staff).

Introduction to Management: Meaning, Nature, Importance; Principles; Levels and Functions

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