Nature and Scope of Management; Levels and Functions of Management Questions

Question 1

Define management.

Accepted Answer

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

Question 2

What is meant by efficiency?

Accepted Answer

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

Question 3

State any one function of management.

Accepted Answer

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

Question 4

Who are top level managers? (Give examples)

Accepted Answer

Top level managers include the Board of Directors, Chief Executive Officer (CEO), Managing Director (MD) and General Manager.

Question 5

What is meant by authority?

Accepted Answer

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

Question 6

State any one managerial skill suggested by Katz.

Accepted Answer

Human skill is the ability to work with, understand and motivate individuals and groups effectively.

Question 7

Explain the nature/characteristics of management.

Accepted Answer

Management is **goal-oriented** because every activity is directed towards achieving organisational objectives. It is a **continuous process** as planning, organising, directing and controlling go on throughout the life of an organisation. Management is **all-pervasive and dynamic**, applicable to all types of organisations and adaptable to changes in environment, technology and competition. It is also a **social/group activity** since work is achieved through people by coordination, motivation and leadership.

Question 8

Differentiate between efficiency and effectiveness.

Accepted Answer

**Efficiency** means optimum use of resources—doing work with minimum cost, time and wastage (doing things right). **Effectiveness** means achievement of objectives—selecting the right goals and completing the required work (doing the right things). An organisation may be efficient but not effective if it saves cost while pursuing wrong goals; therefore, management aims at both together.

Question 9

State and explain the functions of management (brief).

Accepted Answer

The main functions of management are: **Planning** (deciding objectives and actions in advance), **Organising** (arranging resources and assigning duties), **Staffing** (recruiting, selecting and developing employees), **Directing** (leading, motivating, communicating and supervising), and **Controlling** (setting standards, measuring performance and taking corrective action). These functions are interrelated and performed continuously.

Question 10

Explain the functions of top level management.

Accepted Answer

Top level management performs strategic functions such as framing **vision/mission and long-term objectives**, formulating **policies and strategies**, and taking major decisions regarding expansion, investments and allocation of key resources. It coordinates the overall activities of the organisation, builds relationships with external stakeholders and ensures that the organisation adapts to environmental changes.

Question 11

Write a note on managerial skills (Katz).

Accepted Answer

Katz suggested three managerial skills: **Technical skill** (knowledge of methods, processes and tools) which is most important at lower levels; **Human skill** (ability to work with and motivate people) which is essential at all levels; and **Conceptual skill** (ability to see the organisation as a whole and understand interrelationships) which is most important at top level management for policy and strategy decisions.

Question 12

Explain the importance of management in an organisation.

Accepted Answer

Management is important because it helps in **achieving group goals** through coordination and unity of direction. It improves **efficiency** by optimum utilisation of resources and reduction of wastage. Management enables an organisation to **face change** by planning, adapting and controlling performance, and it encourages **innovation and stability** through policies, systems and leadership.

Question 13

Explain management as an art, science and profession.

Accepted Answer

Management is regarded as an **art** because it involves personal skills, practical knowledge and experience in dealing with people. Managers use judgement, creativity and initiative in areas like leadership, motivation and conflict handling.

Management is also a **science** because it has a systematic body of knowledge consisting of principles, concepts and theories that explain cause–effect relationships. Modern management uses analysis, forecasting, budgeting and other scientific tools to take decisions. However, it is not a pure science since results may differ due to human behaviour and changing situations.

Management shows features of a **profession** as it requires specialised knowledge, formal education and training, and is supported by professional bodies (such as AIMA) that promote standards and ethics. But it is not a full profession everywhere because entry is not strictly regulated by law and practice does not require a compulsory licence.

Hence, management is best described as a combination of art and science, with increasing professionalisation.

Question 14

Discuss the levels of management and explain the functions performed at each level.

Accepted Answer

Levels of management are generally classified into **top**, **middle** and **lower (supervisory)** levels.

**Top level management** (Board, CEO/MD, General Manager) is concerned with policy and strategy. It sets the organisation’s vision and long-term objectives, frames policies, takes major decisions regarding expansion and investments, and represents the organisation to external stakeholders.

**Middle level management** (departmental/branch/plant managers) converts top-level objectives into departmental plans and programmes. It coordinates between top management and supervisors, allocates resources within departments, implements policies, and controls performance by comparing results with targets.

**Lower level (supervisory) management** (foremen, supervisors) is responsible for day-to-day operations. It issues instructions to workers, maintains discipline and work schedules, ensures quality and timely completion of tasks, and reports problems and performance upward.

Thus, as we move downward, the focus shifts from strategic decisions to operational execution, while coordination remains essential at all levels.

Question 15

Explain the functions of management. Describe the steps involved in planning and controlling.

Accepted Answer

The main functions of management are **Planning, Organising, Staffing, Directing and Controlling**. Planning decides objectives and actions; organising arranges resources and assigns duties; staffing provides suitable people; directing guides and motivates employees; controlling ensures work is done as per plan.

**Steps in planning:** (i) setting objectives, (ii) developing planning premises/assumptions, (iii) identifying alternative courses of action, (iv) evaluating alternatives, (v) selecting the best alternative, (vi) implementing the plan, and (vii) follow-up and review.

**Steps in controlling:** (i) setting performance standards, (ii) measuring actual performance, (iii) comparing actual performance with standards, (iv) analysing deviations and identifying reasons, and (v) taking corrective action and revision of plans if required.

Planning and controlling are closely linked because planning provides standards, while controlling checks achievement and keeps the organisation on the right track.

Nature and Scope of Management; Levels and Functions of Management

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