How to Use This Page
This page provides complete solutions for Chapter 2 — Functions of Management from the TN State Board Class 12 Commerce textbook. Use it as follows:
- Before exams: Start with the Key Concepts table for a quick recap, then attempt the MCQs and Fill in the Blanks to test recall.
- While studying: Read the detailed answers in the Short Answer and Long Answer sections alongside your textbook for deeper understanding.
- Last-minute revision: Use the Common Mistakes section to avoid frequent errors and the Exam Checklist to ensure you have covered every topic.
Key Concepts (Quick Recap)
| Term | Definition |
|---|---|
| Planning | The primary function of management; thinking before acting; setting objectives and determining courses of action |
| Organising | Distribution of work in groups and departments; establishing authority-responsibility relationships |
| Staffing | Placing the right persons in the right jobs; involves selection, training, and placement of personnel |
| Directing | Guiding and communicating with subordinates; issuing instructions and supervising work |
| Motivation | Stimulating employees to perform their work with willingness and speed; includes monetary and non-monetary incentives |
| Controlling | Evaluating performance by comparing actual results with predetermined standards and taking corrective action |
| Co-ordination | Synchronization of actions and integration of all activities; ensures unity of effort across departments |
| Innovation | A subsidiary function; preparing the organisation to face changes through new products, techniques, and methods |
| Representation | Acting as a representative of the company before third parties such as government, suppliers, and customers |
| Decision-making | Choosing the best alternative from available options for smooth functioning of the organisation |
| Communication | Transmission of human thoughts, views, and information from one person to another |
| Main Functions | Planning, Organising, Staffing, Directing, Motivation, Controlling, Co-ordination |
| Subsidiary Functions | Innovation, Representation, Decision-making, Communication |
| Span of Control | The number of subordinates a manager can effectively supervise |
I. Choose the Best Answer (MCQs)
Q1. Which is the primary function of management? Answer: Planning
Q2. Which is not a main function of management? Answer: Decision making
Q3. Which function integrates all activities of the organisation? Answer: Co-ordinating
Q4. Which function evaluates the performance of employees? Answer: Controlling
Q5. Which is a secondary function of management? Answer: Innovation — Innovation is one of the four subsidiary functions, not a main function.
Q6. "Look Before you Leap" refers to which function? Answer: Planning — Planning involves thinking before acting.
Q7. Find the odd one out: Planning, Organising, Decision-making, Controlling Answer: Decision-making — It is a subsidiary function, not a main function.
Q8. Selection and placement of personnel is part of which function? Answer: Staffing — Staffing involves placing the right persons in the right jobs.
Q9. Evaluating the performance of employees is the function of: Answer: Controlling
Q10. How many subsidiary functions of management are there? Answer: Four — Innovation, Representation, Decision-making, and Communication.
Q11. "Nothing can be performed without" which function? Answer: Planning
Q12. Which pair is correctly matched? Answer: Motivation — Fair treatment (Motivation involves monetary and non-monetary incentives; fair treatment is a motivator.)
II. Fill in the Blanks
1. __________ is the primary function of management. Answer: Planning
2. The process of placing the right persons in the right jobs is called __________. Answer: Staffing
3. __________ involves guiding and communicating with subordinates. Answer: Directing
4. Evaluating performance by comparing actual results with set standards is called __________. Answer: Controlling
5. The synchronization of actions and integration of all activities is known as __________. Answer: Co-ordination
6. There are __________ subsidiary functions of management. Answer: Four
7. "Look Before you Leap" refers to the function of __________. Answer: Planning
8. __________ is a subsidiary function that involves preparing the organisation to face changes. Answer: Innovation
9. The function of acting as a representative of the company before third parties is called __________. Answer: Representation
10. __________ is the transmission of human thoughts, views, and information from one person to another. Answer: Communication
III. True or False (with corrections)
IV. Match the Following
Q1.
| Column I | Column II | ||
|---|---|---|---|
| i | Planning | 4 | Think Before you Act |
| ii | Innovation | 3 | Face changes |
| iii | Controlling | 2 | Performance of employees |
| iv | Directing | 1 | Guiding and Communicating |
Q2.
| Column I | Column II | ||
|---|---|---|---|
| i | Organising | 4 | Placement of personnel |
| ii | Co-ordination | 3 | Integration of actions |
| iii | Representation | 2 | Representative of Company |
| iv | Communication | 1 | Transmission of human thoughts |
Q3.
| Column I | Column II | ||
|---|---|---|---|
| i | Decision making | 4 | Smooth functioning |
| ii | Motivating | 3 | Incentive |
| iii | Staffing | 2 | Selection |
| iv | Planning | 1 | Writing a book |
Q4.
| Column I | Column II | ||
|---|---|---|---|
| i | Motivation | 3 | Monetary and non-monetary incentives |
| ii | Controlling | 4 | Comparing actual with standards |
| iii | Organising | 1 | Distribution of work |
| iv | Representation | 2 | Acting on behalf of company |
V. Assertion and Reason
Q1. Assertion (A): Staffing function is successful when right persons are placed in right jobs. Reason (R): The success of staffing depends on the performance of employees. Answer: Both A and R are true — Staffing succeeds when the right persons are placed in right jobs, and performance validates the staffing decision.
Q2. Assertion (A): Planning is needed in management. Reason (R): Nothing can be performed without planning. Answer: A is true but R is false — Planning is needed, but the reason overstates it; not everything requires planning in the same way.
VI. Answer Briefly (2-Mark Questions)
Q1. What is the primary function of management? Answer: Planning is the primary function of management. It is a constructive review of future needs. Nothing can be performed without planning. The proverb "Look Before you Leap" emphasises the importance of planning before taking action.
Q2. What is motivation? Answer: Motivation is the process of increasing the speed and willingness of employees to perform their work. It involves both monetary incentives (salary, bonus, commission) and non-monetary incentives (recognition, fair treatment, promotion, job security).
Q3. Which function evaluates the performance of employees? Answer: Controlling evaluates the performance of employees by comparing actual results with set standards. It identifies deviations from the plan and takes corrective action to ensure objectives are achieved.
Q4. What are the subsidiary functions of management? Answer: The four subsidiary functions are: Innovation, Representation, Decision-making, and Communication. These functions support the main functions in ensuring smooth organisational operations.
Q5. What is the traditional proverb related to planning? Answer: "Thinking before doing" and "Look Before you Leap" — both emphasise the importance of planning before action. Planning is the foundation upon which all other management functions are built.
Q6. How are the functions of management classified? Answer: Functions of management are classified into two categories: Main functions (Planning, Organising, Staffing, Directing, Motivation, Controlling, Co-ordination) and Subsidiary functions (Innovation, Representation, Decision-making, Communication).
VII. Answer in Detail (5-Mark Questions)
Q1. Explain the main functions of management.
Main Functions of Management
1. Planning: Planning is the primary function of management. It is a constructive review of future needs and involves thinking before acting. It sets objectives, determines policies, and outlines the course of action. The proverb "Look Before you Leap" emphasises the importance of planning. Nothing can be performed without planning.
2. Organising: Organising involves the distribution of work in groups and departments. It establishes authority-responsibility relationships and creates a structure for carrying out plans effectively. Without organising, plans remain only on paper.
3. Staffing: Staffing is the process of placing the right persons in the right jobs. It involves selection, training, and placement of personnel. The success of staffing depends on employee performance. A well-staffed organisation has competent people in every position.
4. Directing: Directing involves guiding and communicating with subordinates. It includes issuing instructions, supervising work, and ensuring that employees carry out their tasks as planned. Directing bridges the gap between plans and actual performance.
5. Motivation: Motivation is the process of stimulating employees to perform their work with willingness and speed. It includes both monetary incentives (salary, bonus) and non-monetary incentives (recognition, fair treatment, promotion). Motivated employees contribute more effectively to organisational goals.
6. Controlling: Controlling evaluates the performance of employees by comparing actual results with predetermined standards. It identifies deviations and takes corrective action to ensure objectives are achieved. Controlling completes the management cycle and links back to planning.
7. Co-ordination: Co-ordination is the synchronization of actions and integration of all activities. It ensures unity of effort and harmonious working across departments. Co-ordination is not a separate function but the essence of all managerial functions.
Q2. Explain the subsidiary functions of management.
Subsidiary Functions of Management
1. Innovation: Innovation is a subsidiary function that involves preparing the organisation to face changes. It includes developing new products, new techniques, and methods of cost reduction to stay competitive. In a rapidly changing business environment, innovation is essential for survival and growth.
2. Representation: A manager acts as a representative of the company before third parties such as government authorities, suppliers, customers, and the general public. The manager communicates the company's position, negotiates deals, and protects the company's interests.
3. Decision-making: Decision-making involves choosing the best alternative from available options for the smooth functioning of the organisation. Every managerial function requires decisions — from planning to controlling. Good decision-making is central to effective management.
4. Communication: Communication is the transmission of human thoughts, views, and information from one person to another. It is essential for effective directing and co-ordination within the organisation. Without communication, instructions cannot be given, feedback cannot be received, and teamwork cannot be achieved.
Q3. Distinguish between main functions and subsidiary functions of management.
| Basis | Main Functions | Subsidiary Functions |
|---|---|---|
| Number | Seven functions | Four functions |
| Examples | Planning, Organising, Staffing, Directing, Motivation, Controlling, Co-ordination | Innovation, Representation, Decision-making, Communication |
| Nature | Essential for every organisation | Support the main functions |
| Sequence | Follow a logical sequence | Do not follow a fixed sequence |
| Dependency | Can function independently | Depend on main functions for effectiveness |
| Purpose | Directly achieve organisational goals | Facilitate and enhance main functions |
Q4. Describe the relationship between planning and controlling.
Planning and controlling are two sides of the same coin:
- Planning sets the standards: Planning establishes objectives, policies, and programmes that serve as the basis for controlling. Without planning, there are no standards to measure performance against.
- Controlling measures against standards: Controlling compares actual performance with the planned standards, identifies deviations, and takes corrective action.
- Cyclical relationship: The results of controlling feed back into planning. If deviations are found, plans are revised. This creates a continuous cycle of planning, action, control, and replanning.
- Interdependence: Planning without controlling is meaningless because there is no way to check whether plans are being followed. Controlling without planning is impossible because there are no standards to compare against.
- Both are goal-oriented: Both functions aim at achieving organisational objectives. Planning decides the path, and controlling ensures we stay on that path.
Common Mistakes to Avoid
- Confusing main functions and subsidiary functions: Planning, Organising, Staffing, Directing, Motivation, Controlling, and Co-ordination are the seven main functions. Innovation, Representation, Decision-making, and Communication are the four subsidiary functions. Do not mix them up.
- Treating Co-ordination as a separate function: Co-ordination is the essence of all managerial functions, not a completely independent step. It runs through planning, organising, staffing, directing, and controlling.
- Confusing Staffing with Organising: Organising is about distributing work and establishing authority structures. Staffing is specifically about placing the right persons in the right positions. They are distinct functions.
- Thinking Motivation is only monetary: Motivation includes both monetary incentives (salary, bonus, commission) and non-monetary incentives (recognition, fair treatment, promotion). Students often forget the non-monetary part.
- Overstating the role of planning: While planning is the primary function and essential, the assertion "nothing can be performed without planning" can be overstated. Planning is foundational but other functions are equally important.
- Confusing Representation with Communication: Representation means acting on behalf of the company before external parties. Communication means transmitting thoughts and information internally and externally. They are different subsidiary functions.
- Forgetting the sequence of main functions: The correct sequence is Planning, Organising, Staffing, Directing, Motivation, Controlling, and Co-ordination. Mixing up this order is a common exam error.
- Writing vague answers for Controlling: Always specify that controlling involves comparing actual results with set standards and taking corrective action. Do not just say "checking performance."
Exam Checklist
- [ ] Seven main functions of management with their definitions
- [ ] Four subsidiary functions of management with examples
- [ ] Planning as the primary function — "Look Before you Leap"
- [ ] Staffing — right person in the right job
- [ ] Directing — guiding, communicating, supervising
- [ ] Motivation — monetary and non-monetary incentives
- [ ] Controlling — comparing actual results with standards
- [ ] Co-ordination — synchronization and integration of activities
- [ ] Innovation — preparing the organisation to face changes
- [ ] Representation — acting on behalf of the company
- [ ] Decision-making — choosing the best alternative
- [ ] Communication — transmission of thoughts and information
- [ ] Difference between main functions and subsidiary functions