12th OCM 2nd chapter exercise (Functions of Management) Maharashtra Board – Free Solution

12th OCM 2nd chapter exercise

Chapter 2 – Functions of Management

Q.1 A) Select the correct option and rewrite the sentences.

1) The functions of management start with _____ function.
a) organizing
b) planning
c) coordinating

2) The functions of management end with _____. 
a) directing
b) staffing
c) controlling

3) _____ sets out standards for controlling.
a) Staffing
b) Planning
c) Coordinating

4) Organization function is important for execution of the plans which have been prepared by _____ management.
a) top level
b) middle level
c) lower level

5) _____ is the function which supports to activate the plans with the help of employees.
a) Staffing
b) Directing
c) Co-ordinating

6) _____ is the function of execution according to the plan and the organizational structure. 
a) Controlling
b) Directing
c) Staffing

7) _____ arranges the work in such a way that minimum conflicts are raised.
a) Co-ordinating
b) Organizing
c) Controlling

Q.1 B) Match the pairs.

Group A	Group B
a) Planning	1) It is the process of instructing, guiding, communicating, and motivating.
b) Organizing	2) It is an integration and synchronization of the efforts of group.
c) Staffing	3) Deciding in advance what to do, how to do, when to do and who is to do it.
d) Directing	4) Management is what a manager does.
e) Coordinating	5) To focus on the role of the manager.
	6) Decides the ways and means to achieve what has been planned.
	7) It is the process of comparing the actual performance with the pre-determined standard performance.
	8) It is a set of principles.
	9) It is the process of recruiting, selecting, placing, and remunerating.
	10) To manage is to forecast and plan.

Answers.
a. 3) Deciding in advance what to do, how to do, when to do and who is to do it.
b. 6) Decides the ways and means to achieve what has been planned.
c. 9) It is the process of recruiting, selecting, placing, and remunerating.
d. 1) It is the process of instructing, guiding, communicating, and motivating.
e. 2) It is an integration and synchronization of the efforts of group.

Q.1 C) Give one word/phrase/term for the following statements.

1) The right person at the job with right pay.
Answer: Staffing

2) A person who shows the correct path as well as guides employees in solving the problems.
Answer: Director

3) First function of management.
Answer: Planning

4) Last function of management.
Answer: Controlling

5) It is an intellectual process of logical thinking and rational decision-making.
Answer: Planning

6) The term that is used to denote the structure.
Answer: Organization

7) It is the process of attracting, recruiting, selecting, placing, appraising, and remunerating the people.
Answer: Staffing

8) The process that leads the employees towards the accomplishment of organizational goals.
Answer: Directing

9) It increases the team spirit of workplace.
Answer: Co-ordinating

10) It is the process of comparing the actual performance with the predetermined standard performance.
Answer: Controlling

Balbharti Textbook Solutions for other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.1 D) State whether the following statements are true or false.

1) Every function of management is not based on planning. (False)
2) Specialization in activities leads to an increase in organizational efficiency. (True)
3) Qualified, efficient and skilled workforce is always an asset of the organization. (True)
4) Cooperation is not necessary for smooth flow of organizational activities. (False)
5) Coordination motivates the employees to take initiative while completing their assigned tasks. (True)
6) Standards are not set for every performance in controlling function. (False)

Q.1 E) Find the odd one.

1) Planning, Organizing, Staffing, Writing.
2) Selecting, Training, Co-ordinating, Placing

Q.1 F) Complete the sentences.

1) The task of getting the things done by others is known as Management.
2) The functions of a manager start with Planning.
3) The Directing function of management initiates action.
4) Recruitments are done under Staffing function.
5) Planning is the fundamental function of management.
6) Co-ordinating integrates departmental activities for achieving common goal of the organization. 
7) Controlling is the last function of management.

Q.1 G) Select the correct option from the bracket.

1) Planning is a detailed programme of (present/future/past) course of action. (Future)
2) Directing is the responsibility of (managers/workers/people) at all levels. (manager)
3) Qualified, efficient and skilled workforce is always a (liabilities/assets/expenses) of the organization. (assets)

Q.1 H) Answer in one sentence.

1) What is management?
Answer: The tasks which are taken to achieve organizational goal is called management. Management is a set of principles that relate to the various functions such as planning, organizing, staffing, directing, coordinating, controlling, etc. which are helpful in achieving organizational goals. 

2) What is planning?
Answer: Planning is an intellectual process of logical thinking and rational decision-making. It focuses on the organization’s objectives and develops various courses of action.

3) What is staffing?
Answer: Staffing is the process of attracting, recruiting, selecting, placing, appraising, remunerating, developing, and retaining the best workforce.

4) What is directing?
Answer: Directing is the soul of management function. It is the process of instructing, guiding, communicating, inspiring, motivating and supervising the employees to achieve predetermined goals of an organization.

5) What is controlling?
Answer: Controlling is a function of comparing the actual performance with the predetermined standard performance. It measures deviation, if any, identifies the causes of deviation, and suggests corrective measures

Q.1 I) Correct the underlined word and rewrite the following sentences.

1) Factors of business environment are always fixed.
Answer: changing

2) Staffing is concerned with machines.
Answer: humans

3) Directing is a function of comparing the actual performance with the predetermined performance.
Answer: Controlling

4) Co-ordination helps to maximize the wastage of resources and controls the cost of work.
Answer: Minimise

5) Controlling measures are rigid to some extent.
Answer: Flexible

Q.1 J) Arrange in proper order.

1) Controlling, Organizing, Planning.
Answer: Planning, Organizing, Controlling

2) Directing, Co-ordinating, Staffing.
Answer: Staffing, Directing, Co-ordinating

Q.2 Explain the following terms/concepts.

1) Management
Answer: The tasks which are taken to achieve organizational goal is called management. Management is a set of principles that relate to the various functions such as planning, organizing, staffing, directing, coordinating, controlling, etc. which are helpful in achieving organizational goals.
According to Henry Fayol, “To manage is to forecast and to plan, to organize, to command and to control.”

2) Planning
Answer: Planning is the basic function of management. Every function of management is based on planning. It includes deciding the things to be done in advance. Planning is an intellectual process of logical thinking and rational decision-making. It focuses on the organization’s objectives and develops various courses of action.
James Stoner: “Planning is the process of establishing goals and a suitable course of action for achieving these goals.”

3) Organizing
Answer: Organizing is the process of identifying, and bringing the required resources together such as men, money, material, machine, and method, grouping and arranging them properly for achieving the objectives. This function is important for the execution of the plans which have been prepared by top-level management people.
The synchronization and combination of workforce, physical, financial, and information resources are established in the process of organizing.

4) Staffing
Answer: Staffing is the function of execution according to plan and organizational structure. It is the process of attracting, recruiting, selecting, placing, appraising, remunerating, developing, and retaining the best workforce. Overall growth and success of every venture is based on the appropriateness of staffing function.
The function emphasizes managing human and not material or financial resources.

5) Directing
Answer: Directing is the soul of the management function. It is the process of instructing, guiding, communicating, inspiring, motivating and supervising the employees to achieve the predetermined goals of an organization. Direction is a continuous function initiated at top level and flows to the lower level through organizational hierarchy. It is a continuous managerial process that goes on throughout the tenure of the organization.

Balbharti Textbook Solutions for other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.3 Study the following case/situation and express your opinion.

(1) Mr. Ram, an emerging entrepreneur has designed a structure of his business organization by taking into consideration the required resources such as land, money, machinery, workforce etc, for his new business. He appointed Mr.Shyam as a manager. Mr.Ram has assigned the responsibilities such as recruitment, selection, training and development and determining the remuneration of the employees’ to Mr.Shyam. Mr. Ram has also appointed Mr.Shubham to supervise the work done by the employees according to the standards given to the employees. Mr.Shubham has to also suggest remedies to the employees wherever necessary.

On this context, find out the management functions performed by
i. Mr. Ram
ii. Mr.Shyam
iii. Mr.Shubham 

Answer:
1) Mr. Ram performs the function of planning and organizing.
2) Mr. Shayam performs the function of staffing because his main duties are to recruitment, selection, training, and development of the employees.
3) Mr. Shubham performs the function of controlling because he compares the actual performance of employees to standard performance. He also suggests remedies to overcome deviations.

(2) In XYZ Company, Mr. Lele gives instructions to the employees working under him, provides guidance, and motivates them for their best performance. On the other hand, Mr.Sayyad takes an effort to harmonize the work done by the employees of different departments while achieving organizational goals. Mr.Desai is looking after the arrangement of required resources for the business organization.

Mention the name of the employee engaged in the following functions:
i. Organization
ii. Direction
iii. Coordination

Answer:
1) Mr. Desai is engaged in the organizing function because he is looking after the arrangement of required resources for the business organization.
2) Mr. Lele is engaged in the function of directing as he gives instructions to the employees working under him, provides guidance, and motivates them for their best performance.
3) Mr. Sayyed is engaged in the function of coordination as he makes an effort to harmonize the work done by the employees of different departments while achieving organizational goals.

Q.4 Distinguish between.

1. Planning and Organizing

Points	Planning	Organizing
1) Meaning	Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it.	Organizing is the process of defining and grouping the activities of the enterprise and  establishing the authority  relationships among them.
2) Objective	To set goals and choosing the means to achieve these goals.	To identify and bring together all required resources.
3) Area of function	It includes setting objectives by identifying the ways of attaining the goal and selecting the best plan.	It includes identification and grouping of activities, assigning the work and establishing the authority relationship.
4) Factors	Internal and external factors are considered in the planning process.	Internal and external factors are considered in the arrangement of resources.
5) Resources	Planning is done as per the  requirement and  availability of  resources.	All available resources i.e. men, money, material, machine and  method are arranged in a systematic manner.
6) Level of management	Top management is concerned with planning the activities.	Top and middle level management  is related with organizing the required resources.

2. Organizing and Staffing

Points	Organizing	Staffing
1) Meaning	Organizing is the process of defining and grouping the activities of the enterprise and  establishing the authority  relationships among them.	The staffing function pertains to the recruitment, selection, development, training, and compensation of subordinate managers.
2) Objective	To identify and bring together all required resources.	To appoint right type of people at the right positions and the right time.
3) Area of function	It includes identification and grouping of activities, assigning the work, and establishing the authority relationship.	It includes recruitment, selection, training, development, and compensation of human resources.
4) Factors	Internal and external factors are considered in arrangement of resources.	Staffing is mostly concerned with internal factors.
5) Resources	All available resources i.e. men, money, material, machine and  method are arranged in a systematic manner.	It is the process relating to organization of human resources.
6) Level of management	Top and middle-level management  is related to organizing the required resources.	Middle-level management is related to recruitment, training and selection Top level is concerned with promotion and compensation.

3. Staffing and Directing

Points	Staffing	Directing
1) Meaning	The staffing function pertains to the recruitment, selection, development, training, and compensation of subordinate managers.	Directing is the guidance inspiration, the leadership of those men and women constitutes the real case responsibilities of  management.
2) Objective	To appoint right type of people at the right positions and the right time.	To direct the subordinates to get things done in the right manner.
3) Area of function	It includes recruitment, selection, training, development, and compensation of human resources.	It includes instructing, guiding, inspiring, communicating and motivating the human resources.
4) Factors	Staffing is mostly concerned with internal factors.	Directing is concerned directly with internal factors i.e. human  resources.
5) Resources	It is the process relating to organization of human resources.	It gives direction to the employees  regarding use of other resources.
6) Level of management	Middle-level management is related with recruitment, training and selection Top level is concerned with promotion and  compensation.	Middle-level management is involved in directing the employees.

4. Directing and Controlling

Points	Directing	Controlling
1) Meaning	Directing is the guidance inspiration, the leadership of those men and women constitutes the real case responsibilities of  management.	Controlling is the process of taking steps to bring actual results and desired results closer together.
2) Objective	To direct the subordinates to get things done in the right manner.	To ensure that the objectives are achieved according to the plan.
3) Area of function	It includes instructing, guiding, inspiring, communicating and motivating the human resources.	It includes setting up of standards,  measurement, and comparison with actual performance and taking corrective steps whenever  necessary.
4) Factors	Directing is concerned directly with internal factors i.e. human  resources.	Internal and external factors are taken into account for taking corrective action.
5) Resources	It gives direction to the employees  regarding use of other resources.	It is related to all organizational resources which help to achieve goal of organization.
6) Level of management	Middle-level management is involved in directing the employees.	Top and middle-level management are responsible for controlling the activities.

5. Co-ordinating and Controlling

Points	Co-ordinating	Controlling
1) Meaning	Coordination is an orderly arrangement of group efforts to provide unity of action in the pursuit of a common goal.	Controlling is the process of taking steps to bring actual results and desired results closer together.
2) Objective	To ensure harmony of efforts of the employees for smooth functioning of organization.	To ensure that the objectives are achieved according to the plan.
3) Area of function	It includes integration of efforts of top level, middle level and lower level.	It includes setting up of standards,  measurements, and comparisons with actual performance and taking corrective steps whenever  necessary.
4) Factors	It is the harmonization of human  resources, so it is concerned  with internal factors.	Internal and external factors are taken into account for taking corrective action.
5) Resources	It is related to human resources.	It is related to all organizational resources which help to achieve goal of organization.
6) Level of management	It is related to all the levels of  management to achieve the goal of an organization.	Top and middle-level management are responsible for controlling the activities.

6. Planning and Controlling

Points	Planning	Controlling
1) Meaning	Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it.	Controlling is the process of taking steps to bring actual results and desired results closer together.
2) Objective	To set goals and choosing the means to achieve these goals.	To ensure that the objectives are achieved according to the plan.
3) Area of function	It includes setting objectives by identifying the ways of attaining the goal and selecting the best plan.	It includes setting up of standards,  measurements, and comparisons with actual performance and taking corrective steps whenever  necessary.
4) Factors	Internal and external factors are considered in the planning process.	Internal and external factors are taken into account for taking corrective action.
5) Resources	Planning is done as per the  requirement and  availability of  resources.	It is related to all organizational resources which help to achieve goal of organization.
6) Level of management	Top management is concerned with planning the activities.	Top and middle level management are responsible for controlling the activities.

7. Organising and Directing

Points	Organizing	Directing
1) Meaning	Organizing is the process of defining and grouping the activities of the enterprise and  establishing the authority  relationships among them.	Directing is the guidance inspiration, the leadership of those men and women constitutes the real case responsibilities of  management.
2) Objective	To identify and bring together all required resources.	To direct the subordinates to get things done in the right manner.
3) Area of function	It includes identification and grouping of activities, assigning the work and establishing the authority relationship.	It includes instructing, guiding, inspiring, communicating and motivating the human resources.
4) Factors	Internal and external factors are considered in arrangement of resources.	Directing is concerned directly with internal factors i.e. human  resources.
5) Resources	All available resources i.e. men, money, material, machine and  method is arranged in a systematic manner.	It gives direction to the employees  regarding use of other resources.
6) Level of management	Top and middle-level management  is related with organizing the required resources.	Middle-level management is involved in directing the employees.

8. Organising and Co-ordinating

Points	Organizing	Co-ordinating
1) Meaning	Organizing is the process of defining and grouping the activities of the enterprise and  establishing the authority  relationships among them.	Coordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goal.
2) Objective	To identify and bring together all required resources.	To ensure harmony of efforts of the employees for smooth functioning of organization.
3) Area of function	It includes identification and grouping of activities, assigning the work and establishing the authority relationship.	It includes integration of efforts of top level, middle level and lower level.
4) Factors	Internal and external factors are considered in the arrangement of resources.	It is the harmonization of human  resources, so it is concerned  with internal factors.
5) Resources	All available resources i.e. men, money, material, machine and  method are arranged in a systematic manner.	It is related to human resources.
6) Level of management	Top and middle-level management  is related to organizing the required resources.	It is related to all the levels of  management to achieve the goal of organization.

Balbharti Textbook Solutions for other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.5 Answer in brief.

1) Explain any five points of importance of planning.

Answer: Refer to question number 8 (1) – Write any 5 to 6 points with an explanation.

2) Explain any five points of importance of organizing.

Answer: Refer to question number 8 (2) – Write any 5 to 6 points with an explanation.

3) Describe any five points of importance of staffing.

Answer: Refer to question number 8 (3) – Write any 5 to 6 points with an explanation.

4) Explain any five points of importance of directing.

Answer: Refer to question number 8 (4) – Write any 5 to 6 points with an explanation.

5) Des any five points of importance of coordinating.

Answer: Refer to question number 8 (5) – Write any 5 to 6 points with an explanation.

Q.6 Justify the following statements.

1) Planning is the first function of management.

Answer:
a) Planning is the basic and first function of management.
b) Every function of management is based on planning.
c) It includes deciding the things to be done in advance. Planning is an intellectual process of logical thinking and rational decision-making.
d) Designing proper planning and implementing accordingly is the key for achieving the objectives of an organization.
e) Unless the plan is ready, other management functions such as organizing, staffing, etc. cannot be undertaken. thus, planning is the first function of management.

2) Controlling is the last function of management.

Answer:
a) Controlling is a function of comparing the actual performance with the predetermined standard performance. b) It measures deviation, if any, identifies the causes of deviation, and suggests corrective measures.
c) The process of controlling help in the formulation of future plans also.
d) The effectiveness of the planning function can be determined with the function of controlling.
e) The function of management ends with controlling.
Thus, Controlling is the last function of management.

3) Organizing facilitates the administration as well as operation of the organization.

Answer:
a) Organizing process leads to identifying and too group the activities.
b) Grouping and assigning the activities is the task of administration whereas processing according to it is operational activity.
c) Due to a proper grouping of the tasks and the employees, there is an increase in production and a reduction in wastage.
d) Duplication of work is restricted and effective delegation becomes possible.
e) Thus, organizing facilitates administration as well as operation of the organization.

4) Right person at right job with right pay is the basic principle of staffing.

Answer:
a) The need of staffing arises since the initial period of organization.
b) Due to promotion, transfer, business expansion, retirement, resignation, accidents, death of employee, etc. vacancies are created in organization.
c) In this context, staffing function plays very important role in an organization.
d) Thus, Right person at right job with right pay is the basic principle of staffing.

5) Co-ordination between different functions and all levels of management is the essence of organizational success. 

Answer:
a) Co-ordination between different functions and all levels of employee is the essence of organization success.
b) It is an integration of different activities· which is essential for their smooth flow.
c) It establishes harmony among all the activities of an organization in achieving desired goal.
d) In an organization, a number of persons are working together to achieve a common goal. Their work is closely linked with each other.
e) Therefore, it becomes necessary to bring together the group efforts and harmonize them carefully. 

Q.7 Attempt the following.

1) Explain the importance of planning.

Answer: Refer to question number 8 (1) – Write any 5 to 6 points with an explanation.

2) Describe the importance of organizing.

Answer: Refer to question number 8 (2) – Write any 5 to 6 points with an explanation.

3) Explain the importance of staffing.

Answer: Refer to question number 8 (3) – Write any 5 to 6 points with an explanation.

4) Explain the importance of directing.

Answer: Refer to question number 8 (4) – Write any 5 to 6 points with an explanation.

5) Describe the importance of coordinating.

Answer: Refer to question number 8 (5) – Write any 5 to 6 points with an explanation.

6) Explain the importance of controlling.

Answer: Refer to question number 8 (6) – Write any 5 to 6 points with an explanation.

Balbharti Textbook Solutions for other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.8 Answer the following.

1) Define the term planning and explain the importance of planning.

Answer:
Planning is the basic function of management. Every function of management is based on planning. It includes deciding the things to be done in advance. Planning is an intellectual process of logical thinking and rational decision-making. It focuses on the organization’s objectives and develops various courses of action.

James Stoner: “Planning is the process of establishing goals and a suitable course of action for achieving these goals.”

Importance of Planning:

1) Helps to set clear objectives

Planning is concerned with setting objectives, and targets, and formulating plans to achieve them. It helps managers to analyze the present condition of the organization and on that basis to identify the ways of attaining the desired position in the future.

2) Provides a path of action

Planning ensures that the goals or objectives are clearly stated. They act as a guide and they provide direction for doing the right things at the right time with right way. It helps employees to know what organization has to do and what they must do for achieving the goals.

3) Planning improves performance

It helps managers to improve future performances of employees by establishing objectives and selecting a course of action. Planning leads to the efficient working of the employees. Due to proper planning, the employees can work according to timely guidelines. This improvement in performance results into higher profitability of the organization.

4) Minimizes the risk

Planning is based on the forecasting technique. It is the process of looking into the future and anticipating future changes. By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes or risks cannot be eliminated totally but they can be anticipated and can be tackled with preventive measures. It minimizes the risk of future or uncertainties of future.

5) Planning leads to optimum utilization of resources

Organizational plans are prepared by taking into consideration the availability of resources and proper allocation of resources for various activities. It also facilitates optimum utilization of resources which brings higher efficiency and better results. One can avoid wastage of resources by proper planning.

6) Helps in decision making

There are various alternatives in front of the management. For achieving goals planning helps the management to select the best alternative by considering all positive and negative outcomes of all the alternatives. Decisions are taken after selecting alternative courses of action to achieve a predefined goal.

7) Useful in setting the standards for controlling

Planning set out standards for controlling. So, the actual performance can be compared with the standards and managers can find out the deviation, if any between the actual and the standard performance. Such deviation can be bridged by taking controlling steps. Therefore, planning provides basis for control.

8) Facilitates Coordination of all activities

Planning facilitates the coordination of activities. It reduces overlapping among activities. All activities of a business organizations are closely linked with each other which is considered in the process of planning. Sound planning inter-relates all the activities and resources of an organization. Thus, various departments work as per the overall plan and coordination is achieved.

9) Facilitates other management functions

Every organization functions towards achieving goal and a goal is set at the planning stage. Unless the plan is ready, other management functions such as organizing, staffing etc. cannot be undertaken thus, planning facilitates all other functions of management.

10) Promotes innovative ideas

Planning is the basic function of management. It is a process of decision-making that involves the promotion of innovative ideas after critical thinking. Ultimately, these innovative plans result into the attainment of the goals of the organization. It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the organization.

2) What is organizing? Explain the importance of organizing.

Answer:
Organizing is the process of identifying, bringing the required resources together such as men, money, material, machine, and method, grouping and arranging them properly for achieving the objectives. This function is important for execution of the plans which have been prepared by top-level management people. 

Mooney and Railey: “Organization is the form of every human association for the attainment of a common purpose.”

Importance of Organizing:

1) Facilitates Administration as well as Operation

The organizing process leads to identify and to group the activities. Grouping and assigning the activities is the task of administration whereas processing according to it is operational activity. Thus, organizing facilitates administration as well as operation of the organization. Due to proper grouping of the tasks and the employees, there is increase in production and a reduction in wastage. Duplication of work is restricted and effective delegation becomes possible.

2) Brings Specialization

Organizational structure is a network of relationships in which the work is divided into units and departments. This division of work helps in bringing specialization in various activities of an organization. Specialization in activities leads to an increase in organizational efficiency.

3) Defines the Jobs Properly

Organizational structure helps in putting right men on right job which can be done by selecting people for various departments according to their qualifications, skill, and experience. This is helping in defining the jobs properly which clarifies the role of every person.

4) Clarifies Authority and Responsibility

An organizational structure defines the role to every manager. This can be done by delegating the authority to every manager and clarifying the way he has to exercise those powers. So that misuse of powers does not take place. Well-defined jobs and responsibilities help in bringing efficiency into manager’s work. This helps in increasing productivity.

5) Establishes Coordination

This function helps in establishing coordination among different departments of an organization. It creates clear-cut relationships among positions and ensures mutual co-operation among individuals. Coordination or synchronization between all departments and different levels of managers is important for the smooth functioning of organizational activities.

6) Helps for Effective Administration

This function determines different positions, departments, activities, and the roles are clearly structured. The utmost care is taken while placing right person in the right job with right authorities and responsibilities. It is achieved through division of work and delegation of authorities. This all leads to efficient and effective administration.

7) Helpful for Growth and Diversification

The growth of every organization depends on its smooth and efficient functioning. Clearly defined roles and responsibilities, coordination among all levels of management personnel, and use of appropriate control techniques bring efficiency at workplace, and the organization grows well. This is possible only when the organization structure is well-defined

8) Creates Sense of Security

Organizational structure clarifies the job positions. It clearly states the duties and responsibilities of everyone. Everyone can work accordingly. The clarity in jobs and powers helps in increasing mental satisfaction and it creates a sense of security among the employees.

9) Scope for Innovation

The organizing function clears the roles and activities to be performed. Employees can work by using their new ideas. This provides enough space to the manager to develop talent and flourish the knowledge. This scope for innovation into adopting new changes in methods of work is possible only through a set of organizational structures.

10) Helps in Optimum Utilization of Resources

This function provides different jobs to different employees according to the job specification. Due to this, specialization of work becomes possible. This right workforce utilizes other resources at its optimum level so that desired results are achieved within a defined period. 

3) What do you mean by staffing? Describe the importance of staffing.

Answer:
Staffing is the function of execution according to plan and organizational structure. It is the process of attracting, recruiting, selecting, placing, appraising, remunerating, developing, and retaining the best workforce. Overall growth and success of every venture is based on the appropriateness of staffing function. The function emphasizes managing human and not material or financial resources.

Theo Haimann: “The staffing function pertains to the recruitment, selection, development, training, and compensation of subordinate managers.”

Importance of Staffing:

1) Effective Managerial Function

Staffing is the key to the effective performance of other functions of management such as planning, organizing, directing, and controlling. A competent workforce can work effectively in different functional areas like production, sales, finance, etc. The outcome of other functions is based on the effectiveness of staffing.

2) Leads to Effective Utilization of Human Resources

Staffing function leads to effective utilization of human resources i.e. workforce. Proper care is taken at every stage such as recruitment, selection, placement, remuneration, training, development, etc. Excessive burden of work is avoided. Optimum utilization of human resources results in an improvement in performance and progress of the organization.

3) Builds Cordial Relationship

This function is helpful in building healthy relationships among all levels of employees in the organization. A smooth human relation is a key to better communication and coordination of managerial efforts in an organization.

4) Helps Human Resource Development

The skilled and experienced employee is an asset of a business organization. Staffing helps to inculcate the organizational culture into employees. It trains and develops the existing workforce. It also ensures smooth functioning of all the managerial aspects of the business organization.

5) Helps in Effective use of Technology and Other Resources

Trained employees can use the latest technology, capital, material and methods of work effectively. It helps in building competitive strength of the organization. It is also helpful in improving standard of work and productivity in terms of quality and quantity.

6) Improves Efficiency

Training and development programmes are offered to the employees for self-development and organizational development. Through proper selection, the organization gets quality employees and through proper training the performance level of the employees can be improved.

7) Long-Term Effect

A qualified, efficient, and skillful workforce is always an asset of the organization. Proper selection of employees leads the organization towards the path of success. Naturally, long-term positive effects can be observed on the efficiency of an organization.

8) Essential Contribution

Staffing ensures the continuity and growth of the organization through the development of employees. Selection is based on the ability of the prospective employees. So that organizations can meet future challenges wisely. Therefore, the contribution of the staff in their future roles is taken into account in staffing function.

9) Provides Job Satisfaction

Employees can be motivated through financial and non-financial incentives. Adequate remuneration increases job satisfaction and morale of the employees. Training and development programmes, fair remuneration, and job security are the factors that are important in providing job satisfaction.

10) Maintains Harmony

In the staffing process, individuals are recruited, selected, and placed as well as their performance is regularly appraised and promotions are given on the basis of merit. For this, criteria is made and duly communicated to concerned employees. It brings peace and harmony in organization.

4) Give the definition of directing and explain the importance of directing.

Answer:
Directing is the soul of management function. It is the process of instructing, guiding, communicating, inspiring, motivating and supervising the employees to achieve predetermined goals of an organization. Direction is a continuous function initiated at top level and flows to the lower level through organizational hierarchy. It is a continuous managerial process that goes on throughout the tenure of the organization.

Theo Haimann: “Direction consists of the process and techniques utilizing in issuing instructions and making certain that operations are carried out as planned.”

Importance of Directing:

1) Initiates Action

Direction is the function that supports activating the plans with the help of employees. Every action is initiated through a timely direction. Proper instructions are given to subordinates while completing their assigned task. The managers direct the subordinates about what to do, how to do, when to do and also to see that their instructions are properly followed.

2) Integrates Efforts

Communication is one of the elements of direction. It helps in integrating the efforts of all the employees and departments which results in achievement of organizational goals. Integration of efforts is possible through persuasive leadership and effective communication towards the accomplishment of organizational goals.

3) Means of Motivation

While directing the subordinates, their opinions are also considered. A manager identifies the potential and abilities of its subordinates and helps them to give their best. He also motivates them by offering them financial and non-financial incentives to improve their performance. It boosts the morale of subordinates.

4) Provides Stability

Stability plays a significant role in the growth and survival of the organization. Effective leadership, communication, supervision, and motivation develop cooperation and commitment among the employees. It provides stability and creates balance among various departments and groups.

5) Coping up with the Changes

Factors of business environment are always changing. Adapting to environmental changes is necessary for the growth of the organization. With the help of motivation, proper communication, and leadership, the employees can clearly understand the nature of change and also the positive outcome of adapting to the change. For example, e-filing, use of Robots at workplace etc.

6) Effective Utilization of Resources

Direction involves assigning duties and responsibilities to everyone. Proper instructions and systems are developed to avoid wastage, duplication of efforts, etc. Subordinates are guided to utilize the resources i.e. men, machines, materials, and money in the maximum possible way. It helps in reducing costs and increasing profits.

7) Creates Team Spirit

Direction focuses on motivating the subordinates for group efforts. Group efforts or team spirit plays a vital role in the success of an organization than individual efforts. Therefore, the role of the manager as a director plays a very important role in guiding and motivating the employees to achieve the predetermined goals.

8) Explores Capabilities of Individuals

Every individual has various capabilities or potentials in addition to their formal qualifications. Direction helps to identify and utilize their abilities for best performance by encouraging and motivating them just like a leader.

9) Increases Efficiency Level

Guidance and motivation are given to subordinates to perform at their best level. Being a leader, team spirit is created by the manager as well as proper techniques of supervision are used. It works positively and results in enhancing the efficiency level of the whole organization.

10) Co-operation

Co-operation is necessary for smooth flow of organizational activities. It should be created by manager i.e. director from top level to the bottom level of management. Healthy cooperation, teamwork, and higher efficiency level lead to the attainment of goals. Thus, Directing to subordinates is a basic management function that includes building an effective work climate through motivation.

5) What is coordinating? Describe the importance of coordinating.

Answer:
Coordination between different functions and all levels of employees is the essence of organization success. It is an integration of different activities· which is essential for their smooth flow. It establishes harmony among all the activities of an organization in achieving desired goal.

Henry Fayol: “To co-ordinate is to harmonize all the activities of a concern to facilitate its working and its success.”

Importance of Co-ordinating:

1) Encourages Team Spirit

In organizations, groups of individuals work together. There may be existence of conflicts, disputes between individuals, departments, and employers, and employees regarding organizational policies, roles, and responsibilities, etc. Coordination arranges the work in such a way that minimum conflicts are raised. It increases the team spirit at the workplace.

2) Gives Proper Direction

Coordination integrates departmental activities for achieving common goal of the organization. The work is arranged in a very systematic way. The interdependence of departments gives proper direction to the employees.

3) Facilitates Motivation

Coordination motivates the employees to take initiative while completing their assigned tasks. Effective coordination increases efficiency and results in the growth and prosperity of the organization. A prosperous organization ensures job security, higher income, promotion, and incentives. Such monetary and non-monetary incentives provide job security and motivate the employees for hard work.

4) Optimum Utilization of Resources

Managers try to integrate all the resources systematically. It helps in utilizing all available resources at its optimum level. Co-ordination also helps to minimize the wastage of resources and control the cost of work.

5) Achieve Organizational Objectives

Co-ordination leads to minimizing the wastages of materials, idle time of employees, delay in completion of targets, departmental disputes, etc. to a great extent. It ensures smooth working of the organization in the process of achieving the objectives of the organization.

6) Improves Relation

Co-ordination develops cordial relations between all the levels of management of an organization. Every department depends on the functioning of another department. For example, sales department works according to production department, Production department depends on the Purchase department and so on. Coordination helps the employees to build strong relations among themselves and achieve the given targets.

7) Leads to Higher Efficiency

With the help of optimum utilization of resources and effective integration of resources, the organization can achieve high returns in terms of high productivity, high profitability as well as can reduce cost. Thus, coordination leads to higher efficiency.

8) Improves Goodwill

Higher sales and higher profitability can be achieved due to synchronized efforts of organizational people, strong human relations, and lower costs. It directly results into creating goodwill for organizations in the market. It reflects on market value of shares as well as helps in building good image in society.

9) Unity of Direction

Different activities are performed by different departments. Coordination harmonizes these activities for achieving common goal of organization. Thus, coordination gives proper direction to all departments of the organization.

10) Specialization

All departments of the organization are headed by experts in their respective fields. The specialized knowledge of these departmental heads helps in managerial decisions. It leads organizations to march towards growth and success in the competitive world of business. 

6) Define the term controlling and explain the importance of controlling.

Answer:
Controlling is a function of comparing the actual performance with the predetermined standard performance. It measures deviation, if any, identifies the causes of deviation and suggests corrective measures. The process of controlling help in the formulation of future plans also.

Philip Kotler: “Control is the process of taking steps to bring actual results and desired results closer together.”

Importance of Controlling:

1) Fulfilling Goals of the Organization

Controlling is the function of measuring the performances at every possible stage, finding out the deviations, if any; and taking corrective actions according to planned activities for the organization. Thus, it helps in fulfilling the organizational goals.

2) Making Efficient Utilization of Resources

Various techniques are used by managers to reduce wastage of material and spoilage of other resources. Standards are set for every performance. Employees have to follow these standards. As an effect of this, the resources are used by employees in the most efficient and effective manner so as to achieve organizational objectives.

3) Accuracy of Standards

An efficient control system helps management in judging the accuracy of standards whether they are accurate or not. Controlling measures are flexible to some extent. So after reviewing them according to changing circumstances, they are revised from time to time which is beneficial for checking performances accurately.

4) Motivates Employee

After setting standards of checking performance, they are communicated to employees in advance. Due to this, employees get an idea about what to do and how to do. Performances are evaluated and on that basis, employees are rewarded in the form of increments, bonuses, promotions, etc. It motivates the employees to perform at their best level.

5) Ensures Order and Discipline

Controlling is the function of order and maintaining discipline. It works for reducing the unprofessional behavior of the employees. Discipline is maintained by continuous checking of performances by the superiors and preventive actions are taken to minimize the gap between actual and standards.

6) Facilitates Co-ordination

Control is a function in which the roles and responsibilities of all departmental managers and subordinates are designed clearly. Coordination between them helps to find out the deviations in their respective departments and to use remedial measures for desired results of the organization.

7) Psychological Pressure

The performances are evaluated with the standard targets. The employees are very well aware that their performance will be evaluated and they will be rewarded accordingly. This psychological pressure works as a motivational factor for employees to give their best performance.

8) Ensures Organizational Efficiency and Effectiveness

Factors of control include making managers responsible, motivating them for higher performance, and achieving departmental coordination. It ensures organizational efficiency and effectiveness.

9) Builds Good Corporate Image

The controlling function helps to improve the overall performance of the organization. Minimum deviation in predetermined standards and actual performance results in the progress of business. It can be achieved with the help of proper control. This builds a good corporate image and brings goodwill to the business.

10) Acts as a Guide

The controlling function provides a set of standard performances. Managers, as well as subordinates,work according to it. Wherever necessary, they can take the help of these standards and can achieve desired results. Thus, controlling function acts as a guide for everyone. The steps are taken for controlling an activity guide the management while planning future activities.

Balbharti Textbook Solutions for other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

12th Commerce OCM Textbook Solutions

Chapter Name	Solution Link
1) Principles of Management	Click Here
2) Functions of Management	Click Here
3) Entrepreneurship Development	Click Here
4) Business Services	Click Here
5) Emerging Modes of Business	Click Here
6) Social Responsibilities of Business	Click Here
7) Consumer Protection	Click Here
8) Marketing	Click Here

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