SEBI Grade A 2022– Management Practice Question | Set- 2

Correct Answer:  C. cooperating

Explanation: Management has been defined as a process of getting things done with the aim of achieving goals effectively and efficiently. We need to analyse this definition. There are certain terms which require elaboration. These are (a) process, (b) effectively, and (c) efficiently. Process in the definition means the primary functions or activities that management performs to get things done. These functions are planning, organising, staffing, directing and controlling.

Correct Answer:  A. doing the right task, completing activities and achieving goals

Explanation: Being effective or doing work effectively basically means finishing the given task. Effectiveness in management is concerned with doing the right task, completing activities and achieving goals. In other words, it is concerned with the end result. But it is not enough to just complete the tasks. There is another aspect also, i.e., being efficient or as we say doing work efficiently. Efficiency means doing the task correctly and with minimum cost. There is a kind of cost-benefit analysis involved and the relationship between inputs and outputs. If by using less resources (i.e., the inputs) more benefits are derived (i.e., the outputs) then efficiency has increased.

Correct Answer: C. both art and science

Explanation:Management has features of both art and science. The practice of management is an art. However, managers can work better if their practice is based on the principles of management. These principles constitute the science of management. Management as an art and a science are therefore not mutually exclusive, but complement each other.

Correct Answer: D. policy making

Explanation: Management seeks to achieve certain objectives which are the desired result of any activity. They must be derived from the basic purpose of the business. In any organisation there are different objectives and management has to achieve all objectives in an effective and efficient manner. Objectives can be classified into organisational objectives, social objectives and personal or individual objectives.

(i) Organisational Objectives: The main objective of any organisation should be to utilise human and material resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a business. These are survival, profit and growth. Survival: The basic objectives of any business is survival. Management must strive to ensure the survival of the organisation. In order to survive, an organisation must earn enough revenues to cover costs. Profit: Mere survival is not enough for business. Management has to ensure that the organisation makes a profit. Profit provides a vital incentive for the continued successful operation of the enterprise. Profit is essential for covering costs and risks of the business. {Option a – eliminated} Growth: A business needs to add to its prospects in the long run, for this it is important for the business to grow. To remain in the industry, management must exploit fully the growth potential of the organisation. {Option b – eliminated}

(ii) Social objectives: It involves the creation of benefits for society. As a part of society, every organisation whether it is business or non-business, has a social obligation to fulfill. This refers to consistently creating economic value for various constituents of society. This includes using environmental friendly methods of production, giving employment opportunities to the disadvantaged sections of society {option c – eliminated} and providing basic amenities like schools and crèches to employees.

(iii) Personal 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. These vary from financial needs such as competitive salaries and perks, social needs such as peer recognition and higher level needs such as personal growth and development. Management has to reconcile personal goals with organisational objectives for harmony in the organisation.

Correct Answer: A. top level managers

Explanation: Generally speaking there are three levels in the hierarchy of an organisation.

(i) Top Management: They consist of the senior-most executives of the organisation. They are usually referred to as the chairman, the chief executive officer, chief operating officer, president and vice-president. Their 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 formulate overall organisational policies, goals and strategies for their achievement.

(ii) Middle Management: is the link between top and lower level managers. They are subordinate to top managers and superior to the first line managers. They are usually known as division heads, for example production managers. Middle management is responsible for implementing and controlling plans and strategies developed by top management. At the same time they are responsible for all the activities of first line managers. Their main task is to carry out the plans formulated by the top managers.

(iii) 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 plays a very important role in the organisation since they interact with the actual work force and pass on instructions of the middle management to the workers. Through their efforts quality of output is maintained, wastage of materials is minimised and safety standards are maintained.

Correct Answer: B. the essence of management

Explanation: While it is true that coordination is a function of management, it can be much better described as the essence of management. A manager has to perform five interrelated functions (planning, organising, staffing, directing and controlling) in the process of managing an organisation which is a system made up of different interlinked and interdependent subsystems. A manager has to link these diverse groups towards the achievement of a common goal. The process by which a manager synchronises the activities of different departments is known as coordination. 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.

Correct Answer: A. Planning

Explanation: Planning refers to anticipating the future conditions and choosing from among the alternative future courses of action. The planning process generally includes the following activities. i) Forecasting is looking ahead to anticipate the opportunity, problems and conditions in a future period of time. ii) Establishing objectives means setting the end results to be accomplished by directing organisational efforts. iii) Programming is establishing the sequence and priority of actions to be followed in the attainment of the objectives. iv) Scheduling is deciding on time sequence for programme steps. v) Budgeting is allocation of resources to minimise costs. vi) Establishing procedures means developing and applying standardised methods of performing a specific work. vii) Developing policies involve establishment and interpretation of standing decisions that apply to repetitive questions and problems of significance to the organisation as a whole.

Correct Answer:  D. Controlling

Explanation: Controlling enables management to ensure that achievement is in accordance with the established plans. It involves: i) Establishing performance standards for evaluating results. ii) Performance on the basis of records and reports on the progress of work. iii). Performance evaluation against the standards set. iv) Corrective action to regulate operations, remove deficiencies and improve performance.

Correct Answer:  C. Directing function

Explanation: Directing involves managing people and the work through the means of motivation, proper leadership, effective communication and coordination. A manager must develop the ability to command. He should issue orders and instructions without arousing any resentment among the subordinates. He must be able to secure willing obedience from his subordinates without destroying their initiative and creativity. Moreover, it requires a sound communication system to enable exchange of ideas and information for common understanding.

Correct Answer: C. Conceptual skill

Explanation: At all levels, managers require three types of skills. They are-

1) technical skills,

2) human skills, and

3) conceptual skills.