(a) State any three functions of middle level management. OR (b) State any three features of 'Demonetisation'.
(a) State any three functions of middle level management. OR (b) State any three features of 'Demonetisation'.
Official answer
This is an OR question — attempt only ONE part, (a) or (b).
(a) Functions of middle level management (any three):
- Interpreting the policies framed by top management for lower-level managers and workers.
- Ensuring that their department has the necessary personnel to carry out its work.
- Assigning necessary duties and responsibilities to the personnel working under them.
- Cooperating with other departments to ensure smooth functioning of the organisation.
- Sending important reports and other data regularly to top management.
(b) Features of Demonetisation (any three):
- It is a monetary/economic policy measure under which currency notes of a given denomination are officially withdrawn and declared no longer legal tender.
- It is primarily aimed at curbing black money, fake/counterfeit currency, and corruption in the economy.
- Holders of old notes must exchange or deposit them in banks within a government-specified time limit.
- It pushes the economy towards greater use of cashless/digital modes of payment.
- As an economic-environment factor, it can temporarily disrupt business liquidity, consumer demand, and day-to-day cash transactions.
Marking scheme
- 1.1 mark for each correctly stated point, up to a maximum of 3 marks — only the part attempted, (a) or (b), is evaluated.
- 2.Full marks for any three valid points from the recognised list for the chosen part; generic or repeated statements earn no additional credit.
- 3.Both alternatives carry equal weight — no preference given to either option.
Hint
For (a), think 'middle management = policy interpreter + departmental coordinator', not policy-maker. For (b), think 'old notes invalid + curb black money + time-bound exchange'.
Quick oral answer
Middle management interprets top management's policies and coordinates between departments, while demonetisation is a government measure that withdraws currency notes as legal tender to curb black money and push digital payments.
Common mistakes
- 1.Confusing middle-level functions (interpreting policy, departmental coordination) with top-level functions (policy formulation, objective setting).
- 2.In part (b), describing general effects of demonetisation on the economy instead of stating its specific defining features.
- 3.Writing more than three points when only three are required — examiners typically credit only the first three.
Analysis and explanation
Part (a) tests the levels of management hierarchy taught under Nature and Significance of Management — top, middle and operational/supervisory levels each have distinct functions, and middle management's role is essentially to translate top management's broad policy into departmental action.
Part (b) links Business Studies to a real economic-policy event and tests understanding of the economic environment — a dimension of business environment covering government monetary/fiscal measures that directly affect business operations, liquidity and demand.
Exam trap: In part (a), students often confuse middle-level functions (departmental coordination, interpreting policy) with top-level functions (framing policy, setting objectives) or operational-level functions (direct supervision of workers). In part (b), students sometimes describe demonetisation's effects on the economy generally rather than its defining features as asked.
Interesting facts
NCERT identifies three broad levels of management — top, middle, and operational/supervisory — each with distinct time horizons and decision-making scope.
India's most well-known demonetisation exercise took place on 8 November 2016, when ₹500 and ₹1,000 notes were withdrawn as legal tender overnight.
Demonetisation is often cited as a textbook example of how a single government economic decision can simultaneously affect a business's cash flow, consumer demand, and payment technology adoption.
Question details
Q26 of 37 questions
- Board
- CBSE
- Class
- Class 12
- Subject
- Business Studies
- Year
- 2026
- Section
- Section B
- Marks
- 3
- Type
- Short Answer
- Chapter
- Nature and Significance of Management
- Topic
- Functions of Middle Level Management / Features of Demonetisation (OR)
- Bloom's level
- remember
- Syllabus topic
- Unit 1: Nature and Significance of Management — Levels of Management (Middle Level) / Unit 3: Business Environment — Economic Environment (Demonetisation as a monetary policy measure)
- Author
- CBSE
- Reviewed by
- Padhantu Academic Team
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Frequently asked questions
What are the three levels of management according to NCERT?
Top level (sets objectives, frames policies), middle level (interprets policies and coordinates departments), and operational/supervisory level (directly supervises workers and day-to-day operations).
Is demonetisation part of the core NCERT Business Studies syllabus?
Demonetisation itself is not a named NCERT chapter topic, but it is commonly used as a real-world illustration of the economic dimension of Business Environment — a government monetary measure that alters the operating conditions for businesses.