Management Test - 1

The correct answer is Financing.

Key Points

Functions of Management 

• Management is described as the process of planning, organising, directing and controlling the efforts of organisational members and of using organisational resources to achieve specific goals.
  • Planning is the function of determining in advance what is to be done and who is to do it.
  • Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan. 
  • Staffing simply stated, is finding the right people for the right job. 
  • Directing involves leading, influencing and motivating employees to perform the tasks assigned to them. 
  • Controlling is the management function of monitoring organisational performance towards the attainment of organisational goals. 

The correct answer is All of the above.

Key Points

Objectives of Management

• Management seeks to achieve certain objectives which are the desired result of any activity.
• Objectives can be classified into, 
  • Organisational Objectives: Management is responsible for setting and achieving objectives for the organisation. 
  • Social objectives: It involves the creation of benefit for society. As a part of society, every organisation whether it is business or non-business, has a social obligation to fulfill. 
  • Personnel objectives: Organisations are made up of people who have different personalities, backgrounds, experiences and objectives. They all become part of the organisation to satisfy their diverse needs.

The correct answer is Systematised body of knowledge.

Key Points

• Management as an Art:  Art is the skillful and personal application of existing knowledge to achieve desired results.
• It can be acquired through study, observation and experience.
• Since art is concerned with personal application of knowledge some kind of ingenuity and creativity is required to practice the basic principles learnt.
• The basic features of an art are as follows:
  1. Existence of theoretical knowledge: Art presupposes the existence of certain theoretical knowledge. 
  2. Personalised application: The use of this basic knowledge varies from individual to individual. Art, therefore, is a very personalised concept
  3. Based on practice and creativity: All art is practical. Art involves the creative practice of existing theoretical knowledge. 
• Management as a Science Science: is a systematised body of knowledge that explains certain general truths or the operation of general laws.
• The basic features of science are as follows:
  1. Systematised body of knowledge: Science is a systematic body of knowledge. Its principles are based on a cause and effect relationship. 
  2. Principles based on experimentation: Scientific principles are first developed through observation and then tested through repeated experimentation under controlled conditions. 
  3. Universal validity: Scientific principles have universal validity and application

The correct answer is ​Existence of theoretical knowledge.

Key Points

• Management as a Science: is a systematised body of knowledge that explains certain general truths or the operation of general laws.
• The basic features of science are as follows:
  1. Systematised body of knowledge: Science is a systematic body of knowledge. Its principles are based on a cause and effect relationship. 
  2. Principles based on experimentation: Scientific principles are first developed through observation and then tested through repeated experimentation under controlled conditions. 
  3. Universal validity: Scientific principles have universal validity and application
• Management as an Art:  Art is the skillful and personal application of existing knowledge to achieve desired results.
• It can be acquired through study, observation and experience.
• Since art is concerned with personal application of knowledge some kind of ingenuity and creativity is required to practice the basic principles learnt.
• The basic features of an art are as follows:
  1. Existence of theoretical knowledge: Art presupposes the existence of certain theoretical knowledge. 
  2. Personalised application: The use of this basic knowledge varies from individual to individual. Art, therefore, is a very personalised concept
  3. Based on practice and creativity: All art is practical. Art involves the creative practice of existing theoretical knowledge.

The correct answer is Supervisory Management.

Key Points

• Levels of Management
• Management is a universal term used for certain functions performed by individuals in an enterprise who are bound together in a hierarchy of relationships. 
• Top Management: They consist of the senior-most executives of the organisation by whatever name they are called. They are usually referred to as the chairman, the chief executive officer, chief operating officer, president and vice-president.
• Middle Management: is the link between top and lower level managers. They are subordinate to top managers and superior to the first line managers.  
• Supervisory or Operational Management: Foremen and supervisors comprise the lower level in the hierarchy of the organisation. Supervisors directly oversee the efforts of the workforce. Their authority and responsibility is limited according to the plans drawn by the top management. 
• Supervisory Management is also called as Operational Management.

The correct answer is Management helps in the development of society.

Key Points

The basic characteristics of management are, 

• It is a goal-oriented process: An organisation has a set of basic goals which are the basic reason for its existence. These should be simple and clearly stated.
• Management is all-pervasive: The activities involved in managing an enterprise are common to all organisations whether economic, social or political.
• Management is multidimensional: Management is a complex activity that has three main dimensions.
• These are:
  • Management of work
  • Management of people
  • Management of operations
• Management is a group activity: An organisation is a collection of diverse individuals with different needs. 
• Management is a dynamic function: Management is a dynamic function and has to adapt itself to the changing environment
• Management is an intangible force: Management is an intangible force that cannot be seen but its presence can be felt in the way the organisation functions. 
• 'Management helps in the development of society is an objective of the Management and not the characteristics. Hence option 4 is correct. 

The correct answer is All of the above. 

Key Points

• Management as a Profession: 
• A profession has the following characteristics:
  1. Well-defined body of knowledge: All professions are based on a well-defined body of knowledge that can be acquired through instruction
  2. Restricted entry: The entry to a profession is restricted through an examination or through acquiring an educational 
  3. Professional association: All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates and enforces a code of conduct. 
  4. Ethical code of conduct: All professions are bound by a code of conduct which guides the behaviour of its members. 
  5. Service motive: The basic motive of a profession is to serve their client’s interests by rendering dedicated and committed service.

The correct answer is Top Management.

Key Points

• Levels of Management
• Management is a universal term used for certain functions performed by individuals in an enterprise who are bound together in a hierarchy of relationships. 
• Top Management: They consist of the senior-most executives of the organisation by whatever name they are called. They are usually referred to as the chairman, the chief executive officer, chief operating officer, president and vice-president.
  • Top Management basic task is to integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organisation.
  • These top level managers are responsible for the welfare and survival of the organisation.
  • They analyse the business environment and its implications for the survival of the firm. Hence option 4 is correct. 
• Middle Management: is the link between top and lower level managers. They are subordinate to top managers and superior to the first line managers.  
• Supervisory or Operational Management: Foremen and supervisors comprise the lower level in the hierarchy of the organisation. Supervisors directly oversee the efforts of the workforce. Their authority and responsibility is limited according to the plans drawn by the top management. 

The correct answer is Organising​.

Key Points

Functions of Management 

• Management is described as the process of planning, organising, directing and controlling the efforts of organisational members and of using organisational resources to achieve specific goals.
  • Planning is the function of determining in advance what is to be done and who is to do it.
  • Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan. 
  • Staffing simply stated, is finding the right people for the right job. 
  • Directing involves leading, influencing and motivating employees to perform the tasks assigned to them. 
  • Controlling is the management function of monitoring organisational performance towards the attainment of organisational goals. 

The correct answer is Coordination.

Key Points

• Coordination is the force that binds all the other functions of management.
• It is the common thread that runs through all activities such as purchase, production, sales, and finance to ensure continuity in the working of the organisation.
• Coordination is sometimes considered a separate function of management.
• It is however, the essence of management, for achieving harmony among individual efforts towards the accomplishment of group goals.
• Each managerial function is an exercise contributing individually to coordination.
• Coordination is implicit and inherent in all functions of an organisation.