Business Studies Class 12
Chapter 1 Nature and Significance of Management
- Concepts of Management
Management is the art of getting things done with and through others. Management can be defined as, the process of getting things done with the aim of achieving organizational goals effectively and efficiently.
Management is a Goal-Oriented Process
2. Characteristics of Management
An organization’s existence is based on objectives and management is the process that unites the efforts of every individual to achieve the goal.
(ii) Management is All Pervasive
The use of management is not restricted, it is applicable in all organization’s big or small, profit or non-profit-making.
(iii) Management is Multidimensional
It does not contain one activity, it is a complex activity including three main activities
- Management of house
- Management of people
- Management of operations
(iv) Management is a Continuous Process
It is a never-ending process. It consists of series of interrelated functions which perform continuously.
- Management is a Group Activity Organization is a collection of many individuals, every individual contributes towards achieving the goal.
(vi) Management is an Intangible Force
It cannot be seen or touched only it can be felt in the way the organization functions.
3. Objectives of Management
Objectives can be classified into organizational, social, or personal
(i) Organizational Objectives
- Survival It exists for a long time in the competition
- Profit It provides a vital incentive for the continued successful
- The growth Success of an organization is measured by the growth and expansion of
- Social Objectives Involves creation of benefit for
- Personal Objectives Objectives of employees like good salary, promotion, social recognition, healthy working
5. Importance of Management
- Management Helps Achieving Group Goals It integrates the objective of the individual along with organizational goals.
- Management Increases Efficiency It increases productivity through better planning, organizing, directing the activities of the organization
- Management Creates a Dynamic Organization Organization have to survive in the dynamic environment thus manager keep changes in the organization to match environmental changes.
- Management Helps in Achieving Personal Objectives Through motivation and leadership, management helps in achieving the personal
- Management Helps in the Development of Society It provides good quality products and services, creates employment, generates new technology in that sense it helps in the development of society.
6. Management as an Art
Management as an art because it satisfies the following points
- It is based on practice and
- Lots of literature is present which gives the existence of theoretical
7. Management as a Science
Management as a science because
- It is a systematized body of
- Its principles are based on
- Management as a Profession It does not meet the exact criterion of a profession, it does have some features of a profession
- Levels of Management (i) Top Management It consists of senior-most executives who are usually referred to as the Chairman, Chief Executive Officer, President, and Vice
- Middle Management is usually division heads who are the link between top and lower level of management.
- Operational Management is usually the foremen and supervisors who actually carry on the work or perform the activities.
10. Functions of Management
- Planning It refers to deciding in advance what to do, how to do and developing a way of achieving goal efficiently and
- Organizing It refers to the assigning of duties, grouping tasks, establishing authority, and allocating resources required to carry out a specific
- Staffing implies the right people for the right
- Directing involves leading, influencing, motivating employees to perform the task assigned to them.
- Controlling refers to the performance measurement and follow-up actions that keep the actual performance on the path of the plan.
- Co-ordination—The Essence of Management Co-ordination means binding together all the activities such as purchase, production, sales, finance to ensure continuity in the working of the organization. It is considered as a separate function of management, in order to achieve harmony among individuals, efforts towards the accomplishment of goods.
12. Characteristics of Co-ordination
- It integrates group
- It ensures units of action
- It is a continuous process.
- It is an all-pervasive function.
- It is the responsibility of all managers.
13. Importance of Co-ordination
- Growth in Size When there is a growth in size, the number of people employed by the organization also increases. Thus to integrate the efforts, coordination is needed.
- Functional Differentiation In an organization, there are separate departments and different goals. The process of linking these activities is achieved by coordination.
- Specialization Modern organization is characterized by a high degree of specialization. Coordination is required among different specialists because of their different approaches, judgment, etc.
- Management in the Twenty-First Century Management in the 21st century means the new ways, trends, ideas, and techniques of doing business and makes it possible to think of the organization as a ‘Global Organization.’