AHSEC - 12: Nature and Significance of Management Important Notes for March 2022 - 23 Exam | Business Studies Class 12 Notes

[AHSEC Class 12, Business Studies Notes, Revised Syllabus, 2022 Exam, Nature and Significance of Management]

Class 12 Business Studies Notes
Unit – 1: Nature and Significance of Management

Objective Types Questions:

1. “Anything minus management is nothing”. What does this statement tell?

Ans: This statement tells about the importance of management in the organisation. Here anything refers to all types of business and non-business activities and nothing refers to failure or loss.

2. Management is multi dimensional. Write one dimension.

Ans: Management is a multi faced activity or multidimensional. Three Dimensions are:

(i) Management of work: It is concerned with performance of tasks in an organisation.

(ii) Management of people: It implies dealing with employees as individuals and dealing with individuals as a group.

(iii) Management of operations: It is interlinked with both management of work and management of people.

3. Name the level of management the following posts belong to: Purchase Manager and Superintendent.
Ans: Purchase Manager – Middle level management. 

Superintendent – Lower level management.

4. What do you mean by “efficiency” and Managerial Effectiveness?

Ans: Managerial Effectiveness: The effectiveness of the managers is measured in the effectiveness of the organization in achieving the organizational goals. 

Managerial efficiency is the proportion of total organization resources that contribute to productivity during the manufacturing process.

5. Which function of management ensures that actual activities conform to planned activities? Or Name the function which reviews the operations in a business unit.

Ans:  Controlling

6. Who are regarded as middle management in a business organisation?

Ans: operational supervisors

7. List two social objectives of management.

Ans: 1. Providing equal employment opportunities and 2. Providing Good Quality Product

8. What is POSDCORB? Who coined the term?

Ans: P – Planning. O – Organising, S – Staffing, D – Directing, C – Coordinating, O – Organising, R – Reporting and B – Budgeting. This term is coined by L. Gullick and L. Urwick.

9. Why is coordination known as essence of Management?                      2012

Ans.: Because it is not a separate function of Management rather it forms a major part of all the other functions of Management. It is the base of all other function of management.

10. Implementation of plan is the function of which level of management?                           2011

Ans: Middle Level Management/ Lower level mgt.

11. At which level business policy is framed?                     2015

Ans: Top Level

12. Management is intangible and dynamic. (True or false)         2011                              

Ans: True 

13. Who defined management as the art of getting things done through others?               

Ans: Harold Koontz

14. Why is it said management principles are universal?             

Ans: Universal Application: Management principles are applied in every situation, where the objectives are attained through group efforts. All social, economic, political, cultural or even religious organizations apply management principles for the successful operations of their activities.

15. How management is an intangible force?

Ans: Management is intangible: It cannot be seen but it can be felt through the performance of the workers. Mismanagement if any is quickly noticed and is a sign of poor management.

16. What do you mean by management?

Ans: Management is the coordination of all resources through the process of planning, organizing, directing, staffing and controlling in order to attain stated objectives effectively and efficiently.  Effectively means doing the right task, completing activities and achieving goals and efficiently means to attain objectives with least amount of resources at a minimum cost.

17. Write one important objective of Management.

Ans: Obtaining maximum output with minimum input:  A successful management must achieve the objectives of the business by making optimum utilization of available resources effectively.

18. Why is it said that management is pervasive?            2016

Ans: Because it is needed in all spheres say-business and non business organization.

19. Why management is Goal oriented?

Ans: Every management activity is directed towards achieving predetermined objectives of the organisation. That is why management is a goal – oriented process.

20. “Management is a continuous process.” Elucidate the statement.

Ans: It is a never ending process. It is concerned with constantly identifying the problem and solving them by taking adequate steps. It is an on-going process.

21. Why management is called a Dynamic Function?

Ans: Management is dynamic: Under dynamic environment management faces several challenges hence efforts are made to develop and use new techniques for managing the organizations effectively and efficiently.  As social change takes place, management also changes to overcome the problems whenever they arise.

22. Name two features of professions which are not available in Management?                              2016

Ans.: (I) Restricted entry (II) Ethical code of conduct which is devised by ALL INDIA MANAGEMENT ASSOCIATION (AIMA).

23. In an organization employees are happy and satisfied (there is no chaos and affect of management is noticeable .which characteristic of management is highlighted by this statement?

Ans.: Management is an intangible force.

24. Name the process of working with and through others to effectively achieve organization objectives by efficiently using its limited resources in the changing environment?

Ans.: Management.

25. In order to be successful an organization must change its goals according Management to the needs of the environment. Which characteristic of Management is highlight in the statement?

Ans.: Management is dynamic.

26. Give any two characteristics of Management?

Ans.: (I) Management is goal – oriented process. (II) Management is all pervasive.

27. To meet the objectives of the firm the Management of BPL ltd. It offers employment to physically challenged person. Identify the organization and objective it is trying to achieve?

Ans.: It is social objective.

28. Name two features of professions which are not available in Management?                              2016

Ans.: (I) Restricted entry (II) Ethical code of conduct which is devised by ALL INDIA MANAGEMENT ASSOCIATION (AIMA).

29. “The Management principles can be applied to all types of activities” Which characteristic of Management is highlighted by this statement?

Ans.: Management is all pervasive.

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ALSO READ (AHSEC ASSAM BOARD CLASS 12)

1. AHSEC CLASS 12 BUSINESS STUDIES CHAPTERWISE NOTES

2. AHSEC CLASS 12 BUSINESS STUDIES QUESTION PAPERS (FROM 2012 TILL DATE)

3. AHSEC CLASS 12 BUSINESS STUDIES SOLVED QUESTION PAPERS (FROM 2012 TILL DATE)

4. AHSEC CLASS 12 BUSINESS STUDIES IMPORTANT QUESTIONS

5. BUSINESS STUDIES MCQs

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Short and long answer Type Questions (2/3/5 Marks)

Q.1. What is Management?  2007, 2010, 2014, 2015

Ans: Management is the coordination of all resources through the process of planning, organizing, directing, staffing and controlling in order to attain stated objectives effectively and efficiently.  Effectively means doing the right task, completing activities and achieving goals and efficiently means to attain objectives with least amount of resources at a minimum cost.

According to Modern concept “Management is a process of getting things done with the aim of achieving goals effectively and efficiently.”

According to Harold Koontz, “Management is an art of getting things done through others and with formally organised groups." (This definition asked in 2015 exam)

Q.2. Explain the modern concept of management.

Ans: According to the modern concept,”Management is a process of getting things done with the aim of achieving goals effectively and efficiently.” This modern concept of management emphasise on the following points:

a) Process: Management is a co-ordination of all resources through the process of planning, organising, directing, staffing and controlling.

b) Effective and efficient performance: The modern concept implies that the employee must be effective as well as efficient. Achieving a target on time denotes effectiveness of an employee and achieving of target without wastage of resources refers to efficiency.

c) Achievement of organisational goals: The modern concept of management insists that all activities of the employees must be directed towards the achievement of common organisational goals.

Q.3. Mention features/characteristics/nature of Management.  2009, 2013

Ans: Features of Management:

a)      Management is goal oriented: Every management activity is directed towards achieving predetermined objectives of the organisation.

b)      Management deals with several functions: Management includes several functions such as planning, organizing, staffing, directing, co-ordinating, controlling, motivating or actuating, controlling, decision making, leadership and communication.

c)       Management is intangible: It cannot be seen but it can be felt through the performance of the workers. Mismanagement if any is quickly noticed and is a sign of poor management.       2017

d)      Management is a continuous process: It is a never ending process. It is concerned with constantly identifying the problem and solving them by taking adequate steps. It is an on-going process.

e)      Management is dynamic: Under dynamic environment management faces several challenges hence efforts are made to develop and use new techniques for managing the organizations effectively and efficiently.  As social change takes place, management also changes to overcome the problems whenever they arise.

Q.4. What are the objectives of management?  2008, 2010, 2012, 2019, 2020

Ans:  Objectives of management are divided into four main categories which are stated below:

1) Organisational Objectives: Organisational objectives refer to high priority or core objectives which are essential for the existence of an organisation. These objectives aim at the prosperity and growth of the organisation. Some of the organisational objectives are state below:

a) Obtaining maximum output with minimum input and cost.

b) Improving efficiency of the factors of production which will lead to excellent performance.

c) Reasonable profits so as to give a fair return on the capital invested in business.

d) Survival and solvency of the business.

2) Social Objectives: Management is not only a representative of the owners and employees but is also responsible towards various groups outside the organisation such as consumer, government, creditors etc. some of the social objectives are stated below:

a) Supply of quality goods and services at reasonable prices.

b) Honest and regular payment of taxes to the government.

c) Using eco-friendly method of production.

d) Fair dealings with suppliers, dealers and competitors.

e) Providing employment opportunities to the weaker section of the society.

3) Personal or individual objectives: These objectives are related to the employees of the organisation. Employees are the most important resources of every company and satisfied and motivated employees contribute maximum for the organisations. The main individual objectives of management are:

a) Competitive salary, personal growth and development.

b) Good and healthy working conditions.

c) Participation in management and social recognition.

d) Reasonable security of service.

4) General objectives: Besides the above mentioned main objectives, management tries to achieve the following several objectives:

a) Maximum prosperity for employer and employees.

b) Human betterment and social justice.

c) Economic development and growth.

Q.5. Explain the importance of management.

Ans: IMPORTANCE/SIGNIFICANCE OF MANAGEMENT: According to Drucker, management is the dynamic life giving element in every organization. In its absence, an organization is merely a collection of men, machines, money and material. The importance of management is:

a)      Optimum Use of Resources: Management always concentrates on optimum utilisation of resources of the enterprise. The available resources for production put to use in effective way so as to reduce wastages.

b)      Effective leadership and Motivation: In the absence of management, the working of an enterprise will become unorganised and unsystematic. Management creates teamwork and motivates employees to work harder and better by providing guidance, counseling and effective leadership.

c)       Achievement of Goals: Objectives can be achieved only when the human and non human resources are combined in a proper way. Managers plan carefully, organize the resources properly, hire efficient people and provide necessary guidance to achieve organisation objectives. Thus management is goal oriented.

d)      Reduces Costs: In modern time, it is necessary for every business enterprise to minimise the cost of production and distribution. Only those concerns can survive in the market which can produce better quality product at a minimum cost. Management uses physical, human and financial resources in such a manner which results in efficiency and effectiveness in the work.  This helps in reducing cost of production.

e)      Effective and smooth running of business: Management ensures efficient and smooth running of business through better planning, sound organisation and effective control of the various factors of production.

f)       Provide innovation: Management gives new ideas, imaginations and visions to the enterprise.

Q.6. “Management is a science and also an art”. Comment. Why management is not an exact science?  2009, 2010, 2011, 2012, 2014, 2019

Ans: Management As a Science: Science is defined as a systematized body of knowledge and it uses scientific methods of observation measurement, experimentation etc. Science may be normative and positive both. Its principles are exact and university applicable. Similarly, Management has systematized body of knowledge and its principles are evolved on the basis of observation and are applicable universally. Management is also considered as a science since it is based on certain definite principles and particular methods are applied to solve various problems before the management personnel. But at the same time it should also be born into mind that management cannot be given the place of science like Physics, Chemistry etc. It is not as true and full of facts as the natural sciences are in their subject matter. There are several reasons which do not allow management to be considered as pure science. These are:

a)      Universally unverifiable: Management principles are not universally verifiable.

b)      Modified plans and policies: Unlike science, managers are deals with government, employees, customers etc. who are human beings and it is not possible to hold human beings constant and any prediction about these factors is impossible.

c)       Based on imaginary considerations: Management principles and concepts are based on imaginary considerations like human behaviour, etc. Its principles when executed do not provide exact results.

d)      Incomprehensive: Various managerial techniques are new and not known to each and every manager due to lack of proper training. A manager prefers other ways to solve managerial problems.

Management As an Art: Art refers to the way of doing specific things i.e. it indicates “how an objective is to be achieved. It is the skill and ability to achieve the desired results.  Art is the practical application of skill and ability guided by certain principles or truths. Management is an art in the sense that it calls for ability and skill to translate scientific management knowledge into meaningful practice. The art of management consists in understanding the diverse managerial and organisational situations and in applying relevant management concepts and methods to the practical realities. Managers have to be creative and innovative in their thinking and have to rely on their own previous experience in every situation. Management is also an art in the sense that management involves blending and balancing diverse interests and concerns, at a point of time and over a period of time. In short, Management is considered as an art because of the followings reasons:

a)      The process of management involves the use of ability and skills.

b)      The process of management is directed towards the accomplishment of organisational objectives.

c)       It is creative in the sense that it is the function of creating productive situations needed for further improvements.

d)      Management is personalized in the sense that every manager has his own approach to problems.

Management is both a science as well as an art.  The science of management provides certain principles that can guide managers in the professional efforts, while the art of management deals with tackling every situation in an effective manner.  Planning and organizing emphasize the science of management while direction, communication motivation coordination and control emphasize art of management.  Getting work done through people is an art of management.

Q.7. “Is management becoming a profession”? Discuss in light of emerging trend.  2008, 2016

Ans: Management is a Profession: Profession is an occupation for which specialized skills and training are required and these skills are used not for private profit but for the larger interests of the society.  There is a professional body to control the behaviour of its members.  At present management is not a full fledged profession but it is heading towards becoming a profession. Management is by and large becoming a profession. Management is emerging now as a profession because it has the following essential features of process:

a) Management is a specialised body of knowledge having its own principles, concepts and theories.

b) Proper training and education is essential for managers to improve managerial skills.

c) Indian Management Association and All India Management Development Association is set up in India to lays down the standards of education and training for that entering management profession.

d) Manager must strictly observe code of conduct and ethics.

e) There is dominance of service motive in any profession. Management aims at providing maximum efficiency at eh lowest cost so as to serve the interests of employers, consumers, society and nation at large.

In conclusion, it may be said that managers at the top level do not satisfy all the requirements of profession but management is becoming a profession.

Q.8. Briefly explain “MANAGEMENT AS A PROCESS”.

Ans: - Management is regarded as a process because it consists of Setting up objectives for an enterprise and taking a series of steps such as planning, coordinating, directing, organizing and staffing to ensure that these objectives are achieved. This process starts at the top and continues in more or less degree at every level of the organization.

Q.9. “MANAGEMENT AS A GROUP has the responsibility of an enterprise”. Explain.

Ans: - Management as a GROUP refers to the Board of Directors or Executive Directors who are responsible for effectively managing the affairs of the business by guiding and controlling the work of other managers such as production, sales, finance, personnel, quality control managers, etc. This approach focuses on a team rather than individuals. This is because it is believed that management as a team can contribute more effectively and efficiently than an individual.

Q. 10. “Management is a learned DISCIPLINE”. Comment.  2007

Ans: Discipline is a subject that can be studied, organized and taught. It should meet the basic requirements such as It should be acceptable and It should be capable of discovering knowledge, which can be verified, passed on to others and can be successfully applied.

A large number of schools, colleges & universities have introduced management courses. It has got experts, thinkers and philosophers of the subject. These experts are devoted to impart their skill of the subject to learners of the discipline. They follow a code of conduct prescribed for them. As such we can conclude that management is a discipline.

Q.11. Explain in brief “MANAGEMENT AS AN ACTIVITY”.

Ans: Management is a human activity that plans, controls, directs and organizes the efforts of all employees in the best interest of the organization and society. For this the human and physical resources should be integrated in such a way that there is minimum waste of material, time and energy.  It takes decisions on the following activities:

a)      The goals of the organization

b)      The activities to achieve the goals of the organization.

c)       The people who will perform those activities of the organization.

d)      The allocation of resources for the various activities of the organization.

e)      It leads by doing oneself what it wants others to do; and

f)       It directs the subordinates by showing & encouraging them to do things the right way.

Q.12. What are the feature of managerial functions?

Ans:  Management functions have got the following special features:

a)      Management functions are inter-related and inseparable.

b)      All the management functions are necessary they cannot be ignored.

c)       There is no rigid sequence of performance of these functions.

d)      All managerial functions are performed simultaneously, which make management a complex process.

Q.13. List out functions/ Elements of Management.   2008, 2018

Ans:  Functions/Elements of Management: According to Henry Fayol, in every organization manager perform certain functions to achieve results. These functions are broadly classified under five categories:-

a)      Planning: Planning is a process of making decision about future. It provides direction to enterprise activities. Its work is to decide in advance what is to be done, when and where it is to be done, how it is to be done and by whom. The main functions of planning are Set up goals, Forecasting, Search for alternatives source of action and Budgeting.

b)      Organizing: It is concerned with the arrangement of an organization’s resources – people, material, technology and finances in order to achieve enterprise objective. The main functions of organizing are Job design, Job specification and Authority and responsibility.

c)       Staffing: Staffing is the function of employing suitable personas for the enterprise. It may be defined as an activity where people are recruited, selected, trained, developed, motivated and compensated for manning various positions.

d)      Directing: According to Dale, direction is telling people what to do and seeing that they do it to the best of their ability. Directing is a function of guiding and supervising the activities of sub ordinates. The four main elements of directing are:                2018

1. Supervising: Supervision means instructing, guiding, monitoring and observing the employees while they are performing jobs in the organisation.

2. Leadership: It is a process of influencing the action of a person or a group to attain desired objectives. The success of an organization depends upon the quality of leadership shown by its managers.

3. Motivation: It is the process of stimulating people to take desired courses of action. It is to inspire, encourage and impel people to take required action.

4. Communication: It is a way of reaching other with ideas, facts, and thoughts. Effective communication is important in organization because managers Can achieve very little without it.

e)      Controlling: It is the management function concerned with monitoring employee’s activities, keeping the organization on track towards its goals, and making corrections as required. It include four things:

Ø  setting standard of performance;

Ø  measuring actual performance;

Ø  comparing actual performance against the standard ;

Ø  taking corrective actions to ensure goal accomplishment.

Q.14. What is levels of management? What are its various categories?

Ans: The term management does mean a single individual doing all the managerial activities but it refers to a group of person who are employed and placed at different places to perform different managerial activities. To carry on these activities these employees are given necessary authority and responsibility. This authority and responsibility is divided into three levels which is called levels of management. The main levels of management are: a) Top Level management b) Middle level management c) Supervisory or operational or lower level of management.

Q.15. Who are considered to be the operative management in an organization? State functions of lower level management?   2009, 2013, 2018

Ans: Low level management is considered as operative management. The first line/operative or low level management includes supervisors, foreman, clerk, sub-department executive, Inspectors etc. They are a link between middle level management and workers. They have the following functions:

a)      Representing the problems of workers: They represent the workers’ grievances before the middle level management.

b)      Looking to safety of workers: Lower level managers provides safe and secure work environment for workers.

c)       Control of workers: They assign duties to workers and guide them in handling their jobs efficiently.

d)      Helps in controlling wastage of materials: They prevent wastage of materials by negligent workers which helps in reducing cost.

e)      Ensuring quality standards by the workers: They try to maintain precise standard of quality and ensure steady flow of output.

Q.16. Who are considered to be the MIDDLE LEVEL management in an organization? State functions of Middle level management?                                  2015

Ans: Middle management consists of departmental heads and other executive officers of different departments such as Purchase management. Sales manager, Marketing Manager etc. They execute the policies framed by the top management. They are a link between the top management and supervisory or lower level of management. Functions of middle level management

a)      Interpretation of policies framed by top management to lower and middle management: They explain the main plans and policies framed by the top management to the lower level.

b)      Preparation of organizational set up: They prepare the organizational set up of their department.

c)       Recruitment/selection of the required employees for their department: They find out suitable personnel and assign duties to them for execution of their department functions.

d)      Motivating the employees: They offer various incentives to employees so that they get motivated and perform to their best ability.

e)      Controlling and instructing the employees: They control and instruct the lower level management and also prepare their performance appraisal reports.

Q.17. Who are regarded as Top level management in a business organization? State any two functions of Top mgt.? 2007

Ans: Top management is the 3rd line of management, which consists of Chairman, Directors, Managing Director, General Manager and other top-level executives required to achieve the goals of the enterprise. For example: Mr. Hazarika has retired as the managing director of a manufacturing company. He is said to be working at top level of management.

The functions of top management are:

a)      Determining the objectives of the enterprise: They determine both long term as well as short term objective of the enterprise.

b)      Framing of plans and policies: They formulate plans and policies to achieve the desired objectives.

c)       Assigning activities to different individuals: They assign jobs to different individuals working at middle level.

d)      Assembling all the resources needed: They assemble the resources such as finance, workers, fixed assets etc. needed to put the plans into operation.

e)      Controlling the performance of employees: They keep a check on the employees and their performance to ensure that plans are implemented in the right direction.

Q.18. Write down the difference between levels of management on the basis of their functions.

Basis

Top Level Management

Middle Level Management

Supervisory Level Management

Time Range 

It covers span of period.

It covers intermediate range.

It is concerned with short period.

Skills 

It requires creative skills.

It needs persuasive skills.

It is concerned with operative skills.

Evaluation 

It is difficult to evaluate its achievement.

It is less difficult to evaluate its performance

It is easy to evaluate its performance

Persons 

It involves few persons

It concerns moderate number of persons

It is concerned with large number of persons

Policy formulation

It is concerned with policy formulation to a greater extent.

It is moderately concerned with policy formulation.

It is least concerned with policy formulation.

Q.19. What is coordination? What are its features? Mention its importance.  2007, 2010, 2017, 2020

Ans: Coordination is defined as the process of bringing about unity and harmony of functioning amongst the various elements of an organisation.  In the words of Henry Fayol,”To co-ordinate is to harmonise all the activities of a person in order to facilitate its working and its success.”

The key features of coordination are as follows:

a)      Coordination is not a distinct function but the very essence of management.

b)      It is the result of conscious and concerted action by management.

c)       Coordination is a continuous, never ending or on-going process. It is also a dynamic process.

d)      Coordination is required in group efforts not in individual effort.

e)      Coordination has a common purpose of getting organizational objectives accomplished.

Importance of coordination

Co-ordination is essential at every level of management for achieving harmony of individual efforts. Where sub-division and departmentalization is essential, co-ordination is all the more important. The important benefits of co-ordination are stated as follows:

1.       Good Personnel Relations: Management and staff create cordial human relations through co-ordination. The points of dispute or conflict among different can be settled by mutual discussions.

2.       Unity of Direction: Coordination helps in creating unity of direction. Different segments of the business may set different goal. The coordination process helps in synchronizing various efforts. It motivates various employees to view their work from the standpoint of the business.

3.       Efficiency and Economy: Coordination promotes efficiency and economy in the organisation. By coordinating activities the efficiency is brought in the working. It also helps in avoiding delays and eliminating duplication of efforts.

4.       Size and geographical coverage: An organisation of large size has greater chances of conflicts and requires coordination at each level. Similarly, organisation having several units, departments and branches located at different places need to be balance and harmonise.

5.       Helpful in Developing and Retaining of Personnel. Co-ordination by synchronizing various activities helps in promoting team spirit among organisational personnel. There will be no conflict or confusion in division of work and everybody will try to improve his own performance.

Coordination as an Essence of Management                      2019, 2020

Coordination, no doubt is the essence of management because all the managerial functions cannot be completed without proper coordination. It makes coordination as the soul of managerial operations. The significance of co-ordination can be verified by the fact that management experts such as Henry Fayol, R.C. Davis and Allen regard co-ordination as separate function of management. Coordination aims at creating harmonious relationship between departments, employees, manager and between workers and management. Effective coordination results in unity of action, Inspite of individual differences. It also results in integrated and balanced development, avoids overlapping and duplication of work and creates thrilling atmosphere of mutual confidence and co-operation. This is why; coordination is rightly said as the essence of management. Coordination exists in every function of management which is discussed below: (Process of coordination)

a)      Coordination through Planning: Planning facilitates coordination by integrating the various plans through mutual discussion, exchange of ideas. e.g., Coordination between finance budget and purchases budget.

b)      Coordination through Organizing: Coordination is very important at the time of organising. It is necessary when a manager groups or departments and assigns various activities to his subordinates or the departmental head.

c)       Coordination through Staffing: A manager should bear in mind that the right number of personnel in various positions with right type of education and skills are taken which will ensure right men on the right job.

d)      Coordination through Directing: The purpose of giving orders, instructions and guidance to the subordinates is served only when there is a harmony between superiors and subordinates.

e)      Coordination through Controlling: Manager ensures that there should be coordination between actual performance and standard performance to achieve organizational goals.

Now we can conclude that all the functions of management are affected by coordination. Hence coordination is essential for achieving the objectives of the organisation. It is also required for the survival, growth and profitability of the organisation. Coordination encourages team spirit, gives right direction, motivates employees, and makes proper utilisation of resources. Therefore, Coordination is rightly called the "Essence of Management".

Q.20. What is the result of an effective co- ordination?

Ans:  An effective co – ordination results in:

a)      Efficient and economical use of resources.

b)      Creates congenial atmosphere of work.

c)       Saves from the losses caused by unnecessary efforts.

Q.21. Distinguish between coordination and co-operation and co-ordination and control.

Ans: Difference between Coordination and Co-operation

Basis

Coordination

Cooperation

1. Meaning

It refers to bringing together the activities of an organisation.

It refers to voluntary efforts of individuals to work together and help each other.

2. Nature

It is a conscious and deliberate effort of manager.

It is a voluntary effort of employees.

3. Scope

It includes co-operation and hence has a wider scope.

It has a narrow scope as it is towards establishing co-ordination.

4. Requirement

Co-ordination is essential for achievement of organisational goal.

Co-operation is voluntary in nature.

5. Relations

Co-ordination arises out of both formal and informal relations.

It arises out of informal relations.

Difference between Co-ordination and Control

Basis

Co-ordination

Control

1. Meaning

It refers to bringing together the activities of an organisation.

Control is a process which enables management to get its policies implemented and take corrective actions.

2. Responsibility

Coordination is the responsibility of all managers.

Controlling is the responsibility of top level management.

3. Necessity

Coordination is needed in controlling.

Controlling is not necessary in coordination.