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12th Standard Commerce — Functions of Management Online Test

12th Standard · Commerce · #2

Chapter 2 of 12th Commerce explains the functions of management: the seven main functions of planning, organising, staffing, directing, motivating, controlling and co-ordination, and the four subsidiary functions of innovation, representation, decision-making and communication, with the role each plays in reaching an organisation's goals.

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About Functions of Management

Easy ~35 min study

Functions of Management is the second chapter of Unit I, Management Process, in the Tamil Nadu State Board Class 12 Commerce book. It opens with Thirukkural couplet 517 on choosing the right person for a task and explains that management functions, also called the managerial process, run as a 24 hours non stop process.

The lesson divides the functions into two groups. The main functions are planning, organising, staffing, directing, motivating, controlling and co-ordination; the subsidiary functions are innovation, representation, decision-making and communication. Boxes explain the saying 'passing the buck' and list motivators for generation Z workers.

This page gathers the five one mark questions of the book exercise with answers checked against the lesson, plus additional questions on proverbs, definitions, statements, assertion-reason, matching and odd one out items, each with a short explanation.

What you'll learn

  • List the seven main functions and four subsidiary functions of management.
  • Explain why planning is called the primary function of management.
  • Describe the activities included in staffing and organising.
  • Explain how directing, motivating and controlling help reach goals.
  • State why co-ordination is part of every managerial function.
  • Describe innovation, representation, decision-making and communication.

Before you start

  • The meaning of management from Chapter 1, Principles of Management.
  • A general idea of how a business organisation employs and directs workers.

Topics covered in this chapter

Planning The primary function of management; deciding in advance, backed by the proverbs 'Think before you act' and 'Look before you leap'.
Organising Establishing harmonious relationships and a network of relationships; assigning work with authority and accountability.
Staffing Selection, training, promotion, retirement, performance appraisal and remuneration; right persons in the right jobs.
Directing and motivating Guiding subordinates through circulars, manuals and notice-boards; motivation by a resourceful leader to achieve goals.
Controlling Evaluating performance, identifying under performers and synchronising actual performance with predetermined standards.
Co-ordination Unification of all actions; included in every managerial function; harder as the organisation grows.
Subsidiary functions Innovation, representation, decision-making and communication.

Functions of Management explained

What this chapter covers

Nature of management functions

Managerial functions are time specific, institution specific and country specific. They are called the managerial process, a 24 hours non stop process for attaining objectives again and again.

Main functions

  • Planning: the primary function; deciding in advance what, where, how and who.
  • Organising: harmonious relationships, authority and accountability.
  • Staffing: right persons in the right jobs.
  • Directing: motivating, leading, guiding and communicating with subordinates.
  • Motivating: speed of work and willingness of workers.
  • Controlling: comparing actual performance with standards.
  • Co-ordination: included in every managerial function.

Subsidiary functions

Innovation prepares the organisation for change, representation covers dealings with outsiders, decision-making keeps the organisation running smoothly and communication transmits thoughts and views from one person to another.

Common mistakes to avoid

  • Counting decision-making or communication as a main function. Both are subsidiary functions.
  • Calling controlling the primary function. The lesson names planning as the primary function.
  • Treating co-ordination as a separate step at the end. The lesson says it is included in every managerial function.
  • Confusing staffing with organising. Staffing places the right persons in the right jobs; organising builds relationships, authority and accountability.

Test yourself on these with the practice test, then check the worked reasoning in the solved MCQs.

Frequently asked questions

What are the main functions of management?

The main functions are planning, organising, staffing, directing, motivating, controlling and co-ordination. Together they form the managerial process through which an organisation reaches its objectives.

What are the subsidiary functions of management?

Innovation, representation, decision-making and communication are the subsidiary functions. They support the main functions by preparing for change, dealing with outsiders, keeping work running smoothly and passing information.

Why is planning called the primary function?

Nothing can be performed without planning. It means deciding in advance what shall be done, where, how and by whom, so that present actions can be adjusted to the established goal.

What is meant by staffing?

Staffing is the selection and placement of competent personnel, that is, placing the right persons in the right jobs. It also covers training, promotion, retirement, performance appraisal and adequate remuneration.

How are employees kept informed under directing?

Employees are kept informed of all necessary matters through circulars, instruction manuals, newsletters, notice-boards, meetings and participative mechanisms, so that they can accomplish the organisational goals.

What does controlling do?

Controlling evaluates the performance of employees for increments and promotions, identifies under performers, arranges remedial training and synchronises actual performance with predetermined standards.

What does 'passing the buck' mean?

It means shifting or reassigning the blame or responsibility for something to another person, group or thing. 'The buck stops here' means accepting the responsibility oneself.

Last updated 16 October 2026

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1 Principles of Management 3 Management by Objectives (MBO) and Management by Exception (MBE) 4 Introduction to Financial Markets 5 Capital Market 6 Money Market 7 Stock Exchange 8 Securities and Exchange Board of India (SEBI) 9 Fundamentals of Human Resource Management 10 Recruitment Methods 11 Employee Selection Process 12 Employee Training Method 13 Concept of Market and Marketer 14 Marketing and Marketing Mix 15 Recent Trends in Marketing 16 Consumerism 17 Rights, Duties and Responsibilities of Consumers 18 Grievance Redressal Mechanism 19 Environmental Factors 20 Liberalization, Privatization and Globalization 21 The Sale of Goods Act, 1930 22 The Negotiable Instruments Act, 1881 23 Elements of Entrepreneurship 24 Types of Entrepreneurs 25 Government Schemes for Entrepreneurial Development 26 Companies Act, 2013 27 Company Management 28 Company Secretary