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CSEET · Business Laws and Management · Principles of Management and Modern Approaches

Sunita Textiles has high-quality machines and skilled workers, yet its output is wasted because tasks are not coordinated and targets are unclear. A consultant advises the owner to improve management. Which importance of management does this advice mainly reflect?

The advice reflects the importance of management in achieving group goals. Even with good machines and workers, results suffer when effort is uncoordinated and targets are unclear, so management must align individual efforts with common objectives and provide direction.

  1. AManagement helps in achieving group goals by directing individual efforts towards common objectivesCorrect
  2. BManagement creates a dynamic organisation by changing the products every year
  3. CManagement gives the firm a legal identity separate from its owners
  4. DManagement guarantees that the firm will earn profits in every period

Explanation

The problem is uncoordinated effort and unclear targets, so management is needed to align individual efforts with common goals. Managing change is a different benefit and is not the issue. Legal identity comes from incorporation, not management. Management cannot guarantee profits.

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