This MCQ module is based on: Objectives, Importance, Art-Science-Profession & Levels
TOPIC 2 OF 24
Objectives, Importance, Art-Science-Profession & Levels
🎓 Class 12
Social Science
CBSE
Theory
Chapter 1 — Nature and Significance of Management
⏱ ~28 min
🌐 Language: [gtranslate]
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1.4 Objectives of Management — What Management Tries to Achieve
Management is purposeful — it pursues definite objectives?. These objectives are the desired results of management activity, derived from the basic purpose of the organisation. NCERT classifies them into three groups: organisational objectives, social objectives and personal (or individual) objectives.
1.4.1 Organisational Objectives
Management is responsible for setting and achieving objectives for the organisation. It must consider the interest of all stakeholders — shareholders, employees, customers and the government. The main objective should be to use human and material resources to the maximum advantage — i.e., to fulfil the economic objectives of the business: survival, profit and growth.
Survival
The most basic objective. To survive, an organisation must earn enough revenue to cover its costs. Without survival, no other objective makes sense.
Profit
Mere survival is not enough. Profit provides a vital incentive for continued successful operation, covers costs and risks, and rewards capital.
Growth
A business needs to grow to remain in the industry. Growth is measured by sales volume, employee numbers, product range or capital investment.
1.4.2 Social Objectives
Every organisation — whether business or non-business — has a social obligation. Social objectives mean consistently creating economic value for various constituents of society. These include using environment-friendly methods of production, providing employment opportunities to under-privileged sections, and supplying basic amenities such as schools and healthcare for the community.
🏛 Case Box — ITC: Empowering Rural India through E-Choupal
A quiet digital revolution has been reshaping the lives of farmers in remote Indian villages. Farmers in these villages — who grow soyabean, wheat and coffee on small plots — have for thousands of years had no reliable electricity and antiquated phone lines. Most had never seen a computer. Yet today they conduct e-business through E-Choupal — an initiative by ITC, one of India's largest consumer-goods and agribusiness companies. E-Choupal eliminates wasteful intermediation, gives farmers direct market access and real-time customised information to improve decisions and prices. The role of the Choupal Sanchalak (lead farmer of the village) is central. E-Choupal Smart Cards identify farmers and reward them for volume and value of usage. The initiative even became a Harvard Business School case study illustrating CSR through technology — a textbook example of management fulfilling its social objective.
1.4.3 Personal (Individual) Objectives
Organisations are made up of people with different personalities, backgrounds and experiences. They join an organisation to satisfy their diverse needs:
- Financial needs — competitive salaries and perks.
- Social needs — peer recognition and a sense of belonging.
- Higher-level needs — personal growth and development.
Management must reconcile personal goals with organisational objectives for harmony in the organisation. When the two sets of goals conflict, dissatisfaction sets in; when they align, both organisation and individual prosper.
1.5 Importance of Management — Five Reasons Management Matters
Why is management universally important? NCERT lists five reasons.
(i) Achieves Group Goals
Management is required not for itself but for achieving the goals of the organisation. The manager gives a common direction to individual efforts so that the overall goal is reached.
(ii) Increases Efficiency
A manager aims to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling.
(iii) Creates a Dynamic Organisation
All organisations function in a constantly changing environment. People generally resist change — moving from familiar to challenging. Management helps people adapt so the organisation maintains its competitive edge.
(iv) Achieves Personal Objectives
A manager motivates and leads the team so individual members achieve their own goals while contributing to the organisation. Through motivation and leadership, management builds team spirit, cooperation and commitment to group success.
(v) Develops Society
An organisation has multiple objectives serving multiple groups. Through these, management helps develop the organisation and through it, society — providing quality products, employment, new technology and the path to growth.
1.6 Management as Art, Science and Profession
Management is as old as civilisation. Modern management theory emerged from the practice and experience of managers, supplemented by a body of theoretical relationships. The recurring question for the student is: is management an art, a science, a profession, or some combination? NCERT examines each criterion.
1.6.1 Management as an Art
Art? is the skilful and personal application of existing knowledge to achieve desired results. It is acquired through study, observation and experience and requires personal ingenuity and creativity. The basic features of any art are:
| Feature of Art | Explanation | Does Management Satisfy? |
|---|---|---|
| (i) Existence of theoretical knowledge | Experts in their fields derive certain basic principles applicable to the art (e.g., literature on dance, public speaking, music). | ✅ Yes — vast literature exists on marketing, finance, HR. |
| (ii) Personalised application | The use of theoretical knowledge varies from individual to individual — two dancers, two speakers will always differ. | ✅ Yes — each manager applies principles in their own unique way. |
| (iii) Based on practice and creativity | All art is practical — a musician interprets the seven notes uniquely. Practice and creativity make the difference. | ✅ Yes — managers achieve perfection only after long practice; their style is their interpretation. |
Verdict: Management satisfies all three criteria of art. The best managers are committed, dedicated, well-trained individuals with ambition, self-motivation, creativity and imagination. What distinguishes a successful manager from a less successful one is the ability to put principles into practice.
1.6.2 Management as a Science
Science? is a systematised body of knowledge that explains general truths or the operation of general laws. The features of science are:
| Feature of Science | Explanation | Does Management Satisfy? |
|---|---|---|
| (i) Systematised body of knowledge | Principles based on cause-and-effect relationships (e.g., gravity explains why apples fall). | ✅ Yes — management has its own theories and a common vocabulary; it draws on Economics, Sociology, Psychology and Mathematics. |
| (ii) Principles based on experimentation | Scientific principles are first developed by observation, then tested by repeated controlled experiments. | ⚠️ Partly — F.W. Taylor's Scientific Management and Henri Fayol's Functional principles emerged from observation. But because management deals with humans, outcomes cannot be accurately predicted or replicated. Hence management is called an inexact science. |
| (iii) Universal validity | Scientific principles apply universally and identically. | ⚠️ Partly — management principles are not as exact as physics; they must be modified for each situation. Yet they offer standardised techniques useful for training and decision-making. |
Verdict: Management has features of science but cannot match the precision of pure sciences — it is an inexact (or social) science.
📘 Cross-Disciplinary Roots of Management (NCERT Box)
NCERT highlights that management borrows from six disciplines: (i) Anthropology — cultural understanding; (ii) Economics — allocation of scarce resources, free trade and protectionism; (iii) Philosophy — values and ethics that shape authority and rewards; (iv) Political Science — government, contracts, property rights; (v) Psychology — motivation, leadership, employee selection, performance appraisal; (vi) Sociology — globalisation, gender roles, family-life trends affecting organisational practice. (Source: Robbins & DeCenzo, Fundamentals of Management.)
1.6.3 Management as Both Art and Science
The practice of management is an art; managers work better when their practice is grounded in the principles of management — and these principles constitute the science of management. Management as an art and a science are not mutually exclusive — they complement each other.
1.6.4 Management as a Profession
A profession? has five characteristics. Let us see how far management satisfies them.
| Profession Criterion | Standard (e.g., Doctor / CA / Lawyer) | Management's Position |
|---|---|---|
| (i) Well-defined body of knowledge | All professions are based on a body of knowledge acquired through formal instruction. | ✅ Yes — taught at IIMs and many other institutions, with textbooks, journals and well-defined principles. |
| (ii) Restricted entry | Entry restricted by examination or specific educational degree (e.g., ICAI for CAs). | ❌ No — anyone can be appointed manager regardless of educational qualifications. A degree is desirable but not mandatory. |
| (iii) Professional association | Affiliated body regulates entry, certifies practice and enforces a code of conduct (e.g., Bar Council for lawyers). | ⚠️ Partly — AIMA (All India Management Association) exists with a code of conduct, but membership is not compulsory nor statutorily backed. |
| (iv) Ethical code of conduct | All professions bound by a code (doctors take an ethical oath). | ⚠️ Partly — AIMA has a code, but enforcement is voluntary. |
| (v) Service motive | Basic motive is to serve clients' interests (e.g., a lawyer ensures justice). | ⚠️ Changing — earlier purpose was profit maximisation; today good management automatically serves society by providing quality products at reasonable prices. |
Verdict: Management does not meet the exact criteria of a profession but possesses many of its features. It is "to a large extent professional in character" but not a fully-fledged profession in the strict sense.
📘 NCERT Conclusion
Management is a combination of an organised body of knowledge (science) and its skilful application (art). It is to a large extent professional in character, even though it does not fully satisfy every criterion of a profession.
1.7 Levels of Management — A Three-Tier Hierarchy
Management is a universal term used for certain functions performed by individuals bound in a hierarchy. Each individual has authority (right to take decisions) and responsibility. This authority-responsibility relationship gives rise to three levels of management.
1️⃣ Top Management
Who: Senior-most executives — Chairman, CEO, COO, President, Vice-President, CFO, VP-Marketing.
- Integrate diverse elements and coordinate activities of different departments.
- Responsible for the welfare and survival of the organisation.
- Analyse the business environment and its implications.
- Formulate overall organisational goals and strategies.
- Responsible for all activities and the firm's impact on society.
- Job is complex, stressful, demands long hours and total commitment.
2️⃣ Middle Management
Who: Division heads — e.g., Production Manager, Sales Manager, Regional Manager. They are subordinate to top managers and superior to first-line managers.
- Main task: carry out the plans formulated by top management.
- (i) Interpret policies framed by top management.
- (ii) Ensure their department has the necessary personnel.
- (iii) Assign duties and responsibilities.
- (iv) Motivate them to achieve desired objectives.
- (v) Cooperate with other departments for smooth functioning.
- Acts as the link between top and operational levels.
3️⃣ Supervisory / Operational Management
Who: Foremen and supervisors — the lower level in the hierarchy.
- Directly oversee the efforts of the workforce.
- Authority and responsibility limited to plans drawn by top management.
- Interact with the actual workforce; pass on instructions from middle management.
- Ensure quality of output is maintained, wastage minimised, safety standards upheld.
- Output quality and quantity depend on the hard work, discipline and loyalty of workers — and therefore on the supervisor.
📌 Time Allocation by Level
NCERT notes that managers at top level spend more time in planning and organising, while managers at lower levels spend relatively less time on these and more on directing and operational supervision. The distribution of time across functions therefore differs systematically across levels.
1.8 Functions of Management — POSDC
Management is the process of planning, organising, staffing, directing and controlling the efforts of organisational members and using organisational resources to achieve specific goals. The mnemonic POSDC captures the five functions.
1.8.1 Planning
Planning is the function of determining in advance what is to be done and who is to do it. It implies setting goals in advance and developing a way of achieving them efficiently and effectively. In Smita's organisation the objective is the production and sale of candles. She has to decide quantities, variety and colour, then allocate resources for purchase from suppliers. Planning cannot prevent problems, but it can predict them and prepare contingency plans to deal with them.
1.8.2 Organising
Organising assigns duties, groups tasks, establishes authority and allocates resources required to carry out the plan. Once a plan is set, the organising function decides what activities and resources are required, who will do a particular task, where it will be done and when. Tasks are grouped into manageable departments or work units, and authority and reporting relationships are established. Different businesses require different organising structures.
1.8.3 Staffing
Staffing is finding the right people for the right job. Right people with the right qualifications must be at the right places and times to accomplish the goals of the organisation. Also called the human resource function, it involves recruitment, selection, placement and training. NCERT cites Infosys Technologies, which develops software and therefore needs systems analysts and programmers — staffing is what brings them in.
1.8.4 Directing
Directing involves leading, influencing and motivating employees to perform the tasks assigned to them. It requires creating an atmosphere that encourages employees to do their best. Two key components are motivation and leadership. It also includes communicating effectively and supervising employees. Motivating workers means creating an environment that makes them want to work; leadership is influencing others to do what the leader wants. A good manager directs through both praise and criticism, in a way that brings out the best in the employee.
1.8.5 Controlling
Controlling is the management function of monitoring organisational performance towards the attainment of goals. It involves: (i) establishing standards of performance; (ii) measuring current performance; (iii) comparing this with established standards; (iv) taking corrective action where any deviation is found. Management must determine what activities are critical to success, how and where they can be measured, and who has authority to take corrective action.
⚠ Important Note
The functions are usually discussed in order — plan, organise, staff, direct, control — implying a manager does them sequentially. In reality managers rarely carry out these functions in isolation: their activities are interrelated, and it is often difficult to pinpoint where one ends and the next begins. The five functions are studied in greater detail in later chapters of Business Studies — Planning (Ch. 4), Organising (Ch. 5), Staffing (Ch. 6), Directing (Ch. 7) and Controlling (Ch. 8).
Activity 1.4 — Solar DEMU and Multiple Objectives
Indian Railways' solar DEMU saves 21,000 L of diesel and Rs 12,00,000 a year. Identify which objectives of management — organisational, social, personal — are achieved, with reasons.
- Organisational — Cost savings (Rs 12 lakh/year) improve profit; cleaner operations support survival of Railways in a climate-conscious world; new products help growth.
- Social — Reduced diesel use means lower carbon emissions, less pollution and a cleaner environment for the public — a clear discharge of CSR.
- Personal — Engineers, drivers and managers who developed/operate the system gain new technical skills, recognition and growth — partly fulfilling personal objectives.
- Conclusion: The single innovation simultaneously serves all three objectives — proof that good management seeks balance, not a single goal.
Activity 1.5 — Ritu the Northern Division Manager
Ritu is the manager of the northern division of a large corporate house. (a) At which level does she work? (b) What are her basic functions?
- Level: Ritu works at the middle level of management. As a divisional head, she is subordinate to top managers and superior to first-line managers — fitting NCERT's example of "division heads".
- Basic functions: (i) interpret the policies framed by top management; (ii) ensure her division has the necessary personnel; (iii) assign duties and responsibilities; (iv) motivate her team to achieve desired objectives; (v) cooperate with other departments (finance, marketing, HR) for smooth functioning.
- Time-wise she will balance planning and controlling for her division with day-to-day directing of first-line managers under her.
Activity 1.6 — Levels of Management for a New Product Modification
A company wants to modify its existing product because of declining sales. Identify any product (e.g., a soap brand). What decisions/steps should each level of management take?
- Top Management: Analyse environment (consumer trends, competitor moves); set the strategic goal — e.g., "regain 5% market share in 18 months"; decide overall positioning, budget, brand direction, R&D priorities.
- Middle Management: Translate strategy into departmental plans — Production Manager redesigns formulation/packaging; Marketing Manager plans campaigns and pricing; HR plans new training; Finance allocates budget across divisions.
- Operational Management: Supervisors ensure new packaging line runs correctly, quality standards are met, wastage is minimised, sales-team scripts are followed in field, customer feedback is collected.
- The three levels work in coordination — top sets "why", middle decides "how", operational delivers the "what" on the ground.
📝 Competency-Based Questions — Objectives, Importance, Nature, Levels, Functions
Source-based scenario: ITC's E-Choupal empowers rural farmers with real-time prices and direct market access through Smart Cards and Choupal Sanchalaks — a Harvard Business School case study. Indian Railways' solar DEMU saves 21,000 L of diesel and Rs 12 lakh per year. Tata Steel runs on the TCOC across 100+ countries. Smita's middle-management decisions for Diwali require interpreting top-level festive strategy and motivating Operational supervisors.
Q1. Which of the following is NOT one of the three economic objectives of any business as listed in NCERT?
L1 RememberAnswer: (d) — The three economic (organisational) objectives are Survival, Profit and Growth. Donation to charity falls under social objectives, not the core economic objectives.
Q2. ITC's E-Choupal removes intermediaries and gives farmers direct market access. Which objective of management is being fulfilled, and how does it differ from a purely organisational objective?
L4 AnalyseAnswer: E-Choupal fulfils a social objective — it creates economic value for an underprivileged constituency (rural farmers) and addresses CSR. Difference from organisational objective: An organisational objective targets the firm's own survival, profit and growth; a social objective targets benefit for society at large (jobs for under-privileged, eco-friendly methods, schools, healthcare). Of course the two are linked — by serving rural farmers, ITC also expands its rural distribution network, indirectly supporting profit and growth.
Q3. "Management does not satisfy all the criteria of a profession, yet it is considered to be largely professional in character." Justify this statement using any three criteria.
L4 AnalyseAnswer: (i) Body of knowledge ✓ — management has well-defined principles taught at IIMs and through journals. (ii) Restricted entry ✗ — anyone can be designated a manager without a formal degree (unlike doctors or CAs). (iii) Professional association partly ✓ — AIMA exists with a code of conduct, but membership is not mandatory or statutorily backed. Hence management has some but not all features — it is professional in character but not a full-fledged profession.
Q4. (HOT) Management is described as "an art and a science", complementing each other. Design a 3-step argument that proves the practice of one without the other will fail. Use a real-life management example.
L6 CreateAnswer (sample): Step 1 — Science without art: A manager who memorises Taylor's principles but cannot adapt them to a real factory's culture will see workers resist scientific norms (e.g., a textile mill that imposes time-and-motion rules without explaining them risks strikes). Step 2 — Art without science: A charismatic founder who motivates by sheer instinct without budgets, plans or KPIs will run out of cash — many start-ups fail this way. Step 3 — Both together: Tata Steel uses scientific principles (ISO 14001, six-sigma quality) and the artful TCOC values to lead 100+ countries — the marriage of art and science is what produced sustained success. Therefore both are necessary.
🔗 Assertion–Reason Questions (Class 12 Format)
Options: (A) Both A & R true, R correctly explains A · (B) Both true, R does not explain A · (C) A true, R false · (D) A false, R true.
Assertion (A): Management is called an "inexact science".
Reason (R): Because management deals with human beings and human behaviour, the outcomes of its experiments cannot be accurately predicted or replicated.
Answer: (A) — Both true, R correctly explains A. NCERT explicitly states that because management deals with humans, repeated experiments under controlled conditions are impossible, so its principles are not as exact as those of physics or chemistry.
Assertion (A): Top management spends more time on planning and organising than do supervisory managers.
Reason (R): Top management is responsible for the welfare and survival of the organisation and formulates overall organisational goals and strategies.
Answer: (A) — Both true, R correctly explains A. Because top management's job is strategic — analysing the environment, framing goals, integrating departments — the bulk of its time is on planning and organising. Supervisors, by contrast, focus on directing the workforce.
Assertion (A): Management fully meets all five criteria of a profession.
Reason (R): All India Management Association (AIMA) lays down a code of conduct and has the statutory power to ban its members from working as managers.
Answer: (D) — A is false: management does not fully meet the criteria — entry is not restricted by law, and there is no compulsion for managers to belong to a professional association. R is also false: AIMA has a code of conduct, but it is not statutorily backed and cannot legally ban anyone from being a manager. Strictly the answer is "both false" — but in CBSE 4-option ARQ format, the closest is (D) recognising A as false. (Some textbooks treat this as a "Both False" option.)
Frequently Asked Questions
What are the three types of objectives of management?
Management has three categories of objectives. Organisational objectives focus on survival, profit and growth — earning enough revenue to cover costs and expand. Social objectives mean creating benefits for society, such as fair wages, eco-friendly methods and basic amenities. Personal objectives address employee needs — competitive salary, peer recognition and personal growth opportunities.
Why is management important for an organisation?
Management is important because it (1) helps achieve group goals by giving common direction, (2) increases efficiency by reducing waste, (3) creates a dynamic organisation that adapts to change, (4) helps achieve personal objectives that motivate employees, and (5) supports social development through quality goods, fair employment and ethical practices.
Is management an art, a science, or a profession?
Management has features of all three. As an art it requires personal skill, creativity and practice. As a science it has a systematic body of knowledge based on cause-effect principles, even though its principles are not as exact as physics. As a profession it has specialised knowledge and a code of conduct, but entry is not legally restricted, so it is only a partial profession.
What are the three levels of management?
Top level — board of directors, CEO, MD — frames objectives and policies. Middle level — divisional and departmental heads — interprets policies and links top with operational levels. Operational or supervisory level — foremen and supervisors — directs the workforce so that planned output is produced.
What are the five functions of management?
The five POSDC functions are: Planning — deciding what is to be done; Organising — assigning duties and resources; Staffing — putting the right person in the right job; Directing — leading and motivating people; Controlling — measuring performance against standards and taking corrective action.
How do management functions relate to each other?
The functions are interrelated and continuous. Planning sets goals; organising allocates resources to those goals; staffing fills the resource boxes with people; directing energises the people; controlling checks whether goals were met and feeds back into the next plan. None of the functions can stand alone.
What is the role of middle-level management?
Middle managers — sales managers, plant superintendents, branch heads — translate top management's broad policies into specific departmental plans. They allocate work to operational managers, motivate them, coordinate across departments, and report performance back upward. They are the bridge that keeps strategy and execution connected.
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