CASE STUDY QUESTIONS AND ANSWERS
NATURE AND SIGNIFICANCE OF MANAGEMENT
3/4 MARK QUESTIONS
1. Mega Ltd manufactured water heaters. In the first year of its operations, the
revenue earned by the company was just sufficient to meet its costs. To increase the
revenue, the company analysed the reasons behind the less revenues. After analysis, the
company decided:
● To reduce the labour costs by shifting the manufacturing unit to a backward area
where labour was available at a very low rate
● To start manufacturing solar water-heaters and reduce the production of electric
water heaters slowly.
This will not only help in covering the risks but also help in meeting other objectives.
a) Identify and explain the objectives of management discussed above.
b) State any two values which the company wanted to communicate to society.
ANSWER: (a) The objectives of management discussed above are:
i. Organizational objectives: An organization strives to achieve multiple organizational
objectives in the interest of its stakeholders like owners, employees etc. The main
organizational objectives are survival, profit and growth.
ii. Social objectives: It is the obligation of every organization to undertake such activities
which will benefit the society at large like using eco-friendly methods, contributing
towards weaker sections of the society, generating employment opportunities,
promoting literacy etc.
(b) The two values that the company wanted to communicate to the society are:
i. Rural development
ii. Environmental sustainability
2. Mr. Nithin Singhania’s father has a good business of iron and steel. He wants to
go to USA for his MBA but his father thinks that he should join the business. On the basis
of emerging trends, do you think that Mr. Singhania should send his son to USA? Give any
three reasons in support of your answer.
In order to achieve target production of 50,000 units per month, the Production Manager of
Action Shoes Ltd had to operate on double shifts. The workers are paid overtime
charges.To earn higher wages workers try to go slow during normal working hours and
complete their targets during overtime hours. Though the manager could achieve his
target and produced 5000 units but at a higher production cost.
a. In your point of view, what is lacking in management?
b. Identify the values missing in the production manager and the employees of the organization.
,ANSWER:
Yes, according to me, Mr. Singhania should send his son to USA for his MBA
because management is being recognized as a profession to a great extent because of the
following reasons:
a) Well defined body of knowledge: Management is considered to be a well-defined body
of knowledge that can be acquired through instructions. As a separate discipline, it
contains a set of theories and principles formulated by various management experts.
Moreover, it is taught in various schools and colleges all over the world.
b) Ethical code of conduct: Management in practice, like other professions, is bound by a
code of conduct which guides the behavior of its members. Therefore, acquiring a degree
in management will equip him with the good managerial skills and approach.
c) Service motive: A good management course will provide him an insight into the
multiple goals that an organization should pursue. This knowledge will help him to serve
both the objectives of profit maximization and social welfare effectively for his company.
3. In order to achieve target production of 50,000 units per month, the Production
Manager of Action Shoes Ltd had to operate on double shifts. The workers are paid
overtime charges.To earn higher wages workers try to go slow during normal working
hours and complete their targets during overtime hours. Though the manager could achieve
his target and produced 5000 units but at a higher production cost.
a. In your point of view, what is lacking in management?
b. Identify the values missing in the production manager and the employees of the
organization.
ANSWER:
a) Efficiency
b) Values missing in the manager:
i) Optimum utilization of scarce resources.
ii) Sincerity
iii) Leadership
Values missing in the employees:
i) Sincerity
ii) Responsibility towards achieving the target
iii ) Self motivation and loyalty
4. XYZ power Ltd . set up a factory for manufacturing solar lanterns in a remote village
as there was no reliable supply of electricity in rural areas. The revenue earned by the
company was sufficient to cover the costs and the risks .the demand of lanterns was
increasing day by day ,so the company decided to increase production to generate
higher sales . For this they decided to employ people from the nearby village as very few
job opportunities were available in that area. The company also decided to open
schools and crèches for the children of its employees.
i. Identity and explain the objectives of management discussed above.
ii. State and two values which the company wanted to communicate to the society .
ANSWER:
,(i) (a)social objectives :
Objectives which are desired to be achieved for the benefits of the society is known as
social objectives. As a part of society ,every organization whether its is business or non-
business has a social obligation to fulfill. This refers to consistently creating economic
value for constituents of society.
for example , using environmental friendly methods of production , giving employment
opportunities to the disadvantaged section of society and providing basic amenties like
schools and crèches to employees .
(b) Organization objectives :
Growth
A business needs to add to its prospects in the run , for this it is important for the
busniness to grow. Growth of a business can be measured in terms of sales volume
increase in the number of employees, the number of products or the increase in capital
investment, etc.
(ii)(a)employment opportunities .
(a)educational enlightenment .
5. Mr. Amol passed his B.Sc (Non-medical) examination in the year 2014. After this he
successfully ran the business of his father. Suddenly he thought of seeking employment.
He got the job of a finance manager in a company on the basis of his knowledge,
experience and proficiency. He is doing his job successfully.
i. Is the appointment of Mr. Amol as a manager valid?
ii. Was not it necessary for him to do M.B.A or some other course for this job?
ANSWER:
. i. Yes, the appointment of Mr. Khan is valid as it is not essential to be a member of any
representative professional association in order to be a manager.
ii. No, it was not necessary for him to do M.B.A or some other course for this job as no
degree is required in order to be a manager.
6. Unique Ltd. is engaged in manufacturing electrical appliances. The company has been
facing a lot of problems for the last few months because of chaos between two
departments’ i.e, Production department and Sales department. The sales department
blames production department for delayed production. However, the production
department blames sales department for poor sales. The force that integrates the two
departments is missing.
Identify the missing force in the above case and list its two characteristics.
ANSWER:
The quality which is lacking in the above case is “co-ordination”.
Features:
i. It integrates group efforts into purposeful work activity.
ii. It is all pervasive as it is required at all levels of management
7. Kayco ltd is manufacturing detergents. They decide to launch a new range of herbal products.
As they in a hurry, they have tested products on animals only. The necessary information is
missing on the package. The management also plan to launch a new factory in a tribal area
, where the required products are available for work at low wages in the absence of development
opportunities and school
(a) Which value do you disturbing in the above para?
(b) Will the decision to install a new unit in a tribal area help society? Highlight the
social values involved in his decision.
ANSWER:
. (a) values found disturbing:
(i) testing on animals is banned.
(ii) No information about the products on package is violation of right to information.
(b) Benefits of decision to society:
(i) Yes, the decision of installing a new plant in tribal area will definitely help in
upliftment and development of tribal society
(ii) Social values Involved:
a. Equal opportunity to grow
b. Proper utilization of natural resource
5/6 MARK QUESTIONS
1. ABC handlooms Ltd. Set up a factory for manufacturing jute bags in a remote
village as therewas no raw materials available. The revenue earned by the
company was sufficient to cover the costs and the risks. The demand of bags was
increasing day by day, so the company decided toincrease production to
generate higher sales. For this they decided to employ people from the nearby
villages as very few job opportunities were available in that area. The company
alsodecided to open schools and creches for the children of its employees.
A) Identify and explain the objectives of management discussed above.
B) State any two values which the company wanted to communicate to the society.
ANSWER:
(i) The Company is fulfilling the organizational and social objectives of management.
Organisational objectives include survival, profit and growth.
• In order to survive, ABC handlooms Ltd. earns enough revenues.
• Company’s profits are sufficient to the cover the cost and the risks.
• Since demand for bags was increasing day by day and so the company
decided to increase production to generate higher sales, it implies that
the company exploits fully its growth potential.
Social objectives involve the creation of benefits for the society.
‘The company decided to employ people from the nearby villages as very
few job opportunities were available in that area. It also decided to open schools
and crèches for the children of its employees’ (ii) Values:
• Providing employment opportunities in rural areas
• Concern for the environment
NATURE AND SIGNIFICANCE OF MANAGEMENT
3/4 MARK QUESTIONS
1. Mega Ltd manufactured water heaters. In the first year of its operations, the
revenue earned by the company was just sufficient to meet its costs. To increase the
revenue, the company analysed the reasons behind the less revenues. After analysis, the
company decided:
● To reduce the labour costs by shifting the manufacturing unit to a backward area
where labour was available at a very low rate
● To start manufacturing solar water-heaters and reduce the production of electric
water heaters slowly.
This will not only help in covering the risks but also help in meeting other objectives.
a) Identify and explain the objectives of management discussed above.
b) State any two values which the company wanted to communicate to society.
ANSWER: (a) The objectives of management discussed above are:
i. Organizational objectives: An organization strives to achieve multiple organizational
objectives in the interest of its stakeholders like owners, employees etc. The main
organizational objectives are survival, profit and growth.
ii. Social objectives: It is the obligation of every organization to undertake such activities
which will benefit the society at large like using eco-friendly methods, contributing
towards weaker sections of the society, generating employment opportunities,
promoting literacy etc.
(b) The two values that the company wanted to communicate to the society are:
i. Rural development
ii. Environmental sustainability
2. Mr. Nithin Singhania’s father has a good business of iron and steel. He wants to
go to USA for his MBA but his father thinks that he should join the business. On the basis
of emerging trends, do you think that Mr. Singhania should send his son to USA? Give any
three reasons in support of your answer.
In order to achieve target production of 50,000 units per month, the Production Manager of
Action Shoes Ltd had to operate on double shifts. The workers are paid overtime
charges.To earn higher wages workers try to go slow during normal working hours and
complete their targets during overtime hours. Though the manager could achieve his
target and produced 5000 units but at a higher production cost.
a. In your point of view, what is lacking in management?
b. Identify the values missing in the production manager and the employees of the organization.
,ANSWER:
Yes, according to me, Mr. Singhania should send his son to USA for his MBA
because management is being recognized as a profession to a great extent because of the
following reasons:
a) Well defined body of knowledge: Management is considered to be a well-defined body
of knowledge that can be acquired through instructions. As a separate discipline, it
contains a set of theories and principles formulated by various management experts.
Moreover, it is taught in various schools and colleges all over the world.
b) Ethical code of conduct: Management in practice, like other professions, is bound by a
code of conduct which guides the behavior of its members. Therefore, acquiring a degree
in management will equip him with the good managerial skills and approach.
c) Service motive: A good management course will provide him an insight into the
multiple goals that an organization should pursue. This knowledge will help him to serve
both the objectives of profit maximization and social welfare effectively for his company.
3. In order to achieve target production of 50,000 units per month, the Production
Manager of Action Shoes Ltd had to operate on double shifts. The workers are paid
overtime charges.To earn higher wages workers try to go slow during normal working
hours and complete their targets during overtime hours. Though the manager could achieve
his target and produced 5000 units but at a higher production cost.
a. In your point of view, what is lacking in management?
b. Identify the values missing in the production manager and the employees of the
organization.
ANSWER:
a) Efficiency
b) Values missing in the manager:
i) Optimum utilization of scarce resources.
ii) Sincerity
iii) Leadership
Values missing in the employees:
i) Sincerity
ii) Responsibility towards achieving the target
iii ) Self motivation and loyalty
4. XYZ power Ltd . set up a factory for manufacturing solar lanterns in a remote village
as there was no reliable supply of electricity in rural areas. The revenue earned by the
company was sufficient to cover the costs and the risks .the demand of lanterns was
increasing day by day ,so the company decided to increase production to generate
higher sales . For this they decided to employ people from the nearby village as very few
job opportunities were available in that area. The company also decided to open
schools and crèches for the children of its employees.
i. Identity and explain the objectives of management discussed above.
ii. State and two values which the company wanted to communicate to the society .
ANSWER:
,(i) (a)social objectives :
Objectives which are desired to be achieved for the benefits of the society is known as
social objectives. As a part of society ,every organization whether its is business or non-
business has a social obligation to fulfill. This refers to consistently creating economic
value for constituents of society.
for example , using environmental friendly methods of production , giving employment
opportunities to the disadvantaged section of society and providing basic amenties like
schools and crèches to employees .
(b) Organization objectives :
Growth
A business needs to add to its prospects in the run , for this it is important for the
busniness to grow. Growth of a business can be measured in terms of sales volume
increase in the number of employees, the number of products or the increase in capital
investment, etc.
(ii)(a)employment opportunities .
(a)educational enlightenment .
5. Mr. Amol passed his B.Sc (Non-medical) examination in the year 2014. After this he
successfully ran the business of his father. Suddenly he thought of seeking employment.
He got the job of a finance manager in a company on the basis of his knowledge,
experience and proficiency. He is doing his job successfully.
i. Is the appointment of Mr. Amol as a manager valid?
ii. Was not it necessary for him to do M.B.A or some other course for this job?
ANSWER:
. i. Yes, the appointment of Mr. Khan is valid as it is not essential to be a member of any
representative professional association in order to be a manager.
ii. No, it was not necessary for him to do M.B.A or some other course for this job as no
degree is required in order to be a manager.
6. Unique Ltd. is engaged in manufacturing electrical appliances. The company has been
facing a lot of problems for the last few months because of chaos between two
departments’ i.e, Production department and Sales department. The sales department
blames production department for delayed production. However, the production
department blames sales department for poor sales. The force that integrates the two
departments is missing.
Identify the missing force in the above case and list its two characteristics.
ANSWER:
The quality which is lacking in the above case is “co-ordination”.
Features:
i. It integrates group efforts into purposeful work activity.
ii. It is all pervasive as it is required at all levels of management
7. Kayco ltd is manufacturing detergents. They decide to launch a new range of herbal products.
As they in a hurry, they have tested products on animals only. The necessary information is
missing on the package. The management also plan to launch a new factory in a tribal area
, where the required products are available for work at low wages in the absence of development
opportunities and school
(a) Which value do you disturbing in the above para?
(b) Will the decision to install a new unit in a tribal area help society? Highlight the
social values involved in his decision.
ANSWER:
. (a) values found disturbing:
(i) testing on animals is banned.
(ii) No information about the products on package is violation of right to information.
(b) Benefits of decision to society:
(i) Yes, the decision of installing a new plant in tribal area will definitely help in
upliftment and development of tribal society
(ii) Social values Involved:
a. Equal opportunity to grow
b. Proper utilization of natural resource
5/6 MARK QUESTIONS
1. ABC handlooms Ltd. Set up a factory for manufacturing jute bags in a remote
village as therewas no raw materials available. The revenue earned by the
company was sufficient to cover the costs and the risks. The demand of bags was
increasing day by day, so the company decided toincrease production to
generate higher sales. For this they decided to employ people from the nearby
villages as very few job opportunities were available in that area. The company
alsodecided to open schools and creches for the children of its employees.
A) Identify and explain the objectives of management discussed above.
B) State any two values which the company wanted to communicate to the society.
ANSWER:
(i) The Company is fulfilling the organizational and social objectives of management.
Organisational objectives include survival, profit and growth.
• In order to survive, ABC handlooms Ltd. earns enough revenues.
• Company’s profits are sufficient to the cover the cost and the risks.
• Since demand for bags was increasing day by day and so the company
decided to increase production to generate higher sales, it implies that
the company exploits fully its growth potential.
Social objectives involve the creation of benefits for the society.
‘The company decided to employ people from the nearby villages as very
few job opportunities were available in that area. It also decided to open schools
and crèches for the children of its employees’ (ii) Values:
• Providing employment opportunities in rural areas
• Concern for the environment
