class 12 business studies Nature & Significance of management Notes

Nature and significant of management. .... Short & Easy Notes for Board Exam

#1. What is management? what are its objectives?

> Management is a process of getting things done through and with formally organised group with the aim of achieving the organisational goal inefficient and effective manner.

Following are its objectives;

i. To create market share.

ii. Optimum utilisation of resources.

iii. Growth and development of business.

iv. Ensure regular supply of goods.

v. Improving performance.

vi. Provide service to the society.

#2. Write the characteristics or element of Management.

> The basic characteristics of Management may be as follows;

i. Management is a goal oriented process - An organisation has a set of basic goals which are the basic reason for its existence.

ii. Management is all pervasive - The activities involved in managing and enterprise are common to all organisation. Whether economic social or political

iii. Management is multidimensional - Management is a complex activity that has three main dimension. These are as follows, (A) management of work  (B) management of people  (C) management of operation.

iv. Management is a continuous process - The process of management is a series of continuous composite but separate function like planning, organising, staffing, directing, controlling these functions are simultaneously performed by all managers at all the time.

v. Management is a group activity - An organisation is a collection of diverse individuals with different needs.

vi. Management is a dynamic function.

vii. Management is intangible force - Management is an intangible force that can not be seen but its presence can be felt in the way.

#3. write the functions of Management.

> Following are the main functions of Management;

i. Planning - Planning is the process of Thinking before doing it is performed by all level of management. Planning process decide beforehand; 

What is to be done.

How is to be done. .

Where is to be done. 

When is to be done. 

By whom is to be done.

ii. Organising - It involves the establishment of an organisational structure. Through determination and grouping the activity. It fixes the duty, responsibility and accountability to achieve the goal.

iii. Staffing - It is the process of selecting the employees and which person age deserving which job. It includes recruiting and appointing the employees it also include training and development

iv. Directing - Through directing manager instruct their subordinates about what they should do, when they should do, how they should do and ensure that all the instructions are followed and implemented in the proper perspective.

v. Controlling  - It is the last function of management. It is the process of comparing the actual performance with planned performance to ensure that the activities are performed according to the plan and if not, they taking corrective action

#4. What is the level of management?

> There are three levels of Management;

i. Top level management - It consists of CEO, board of directors, chairman, managing directors and general managers. It has maximum authority.

Following are its functions;

(A) Making Strategies and goals of the organisation.

(B) Taking decision regarding activities to be performed.

(C) Framing policies for the organisation.

(D) Responsible for survival and welfare of the organisation.

ii. Middle level management - It consists of departmental manager, Deputy departmental manager, Sales Manager, purchase manager, finance manager, marketing  manager. 

Following are its function;

(A) To act as a link between lower level management and upper level management.

(B) Motivate to supervisory level management.

(C) Explain the objectives, goals and policies set by upper level management.

(D) Monitoring the actual result and comparing them with planned goals.

iii. Lower level management - It consists of supervisor, superintendent, and formen.

Following are its functions;

(A) Representing the problem of worker to the higher authority.

(B) To assign the task to the Employees for training and development.

C) To provide feedback to the officers.

(D) To ensure regular flow of output.

(E) Motivate the workers.

#5. What do you mean by co-ordination? Features and importance?

> Coordination is the process which established harmony and arranges the activities being performed in an organisation.

Following are its features;

i. Coordination integrates group efforts.

ii. Coordination ensure unity of action.

iii. Coordination is the continuous process.

iv. Coordination is an all pervasive function.

v. Coordination is the responsibility of all managers.

Following its importance

i. Unity of command and direction.

ii. Higher morale of employees.

iii. Power of human relation.

iv. Creative and constructive power.

v. To achieve organisational goal.

#6. What are the importance of Management?

> Management is the backbone of any organisation. It is essential in all organisation at all level.

Following are its importance;

i. To obtain maximum result with minimum effort.

ii. To obtain pre-planned target.

iii. To get advantage of Technical and scientific researches.

iv. To determine objectives.

v. To determine policies.

vi To solve the labour problems.

vii. To fulfill social responsibilities.

viii. For development of people.

ix. To establish social stability.

x. For country's development.

#7. Management is an art or science or both?

> Management is an art because;

i. It is based on theoretical and practical knowledge.

ii. It is based on management principles.

iii. It depend upon experience and personal skills of managers.

Management is science because;

i. It is scientific method of observation.

ii. It is bassed on experiment.

iii. It is established cause and effect.

iv. It has Universal validity.

v. It has systemized body of knowledge.

Both of them exist together in every function of management. Thus, management is both Art and Science

#8. Is management a profession?

> Profession referred to that economy, actually which is conducted by a person having some special knowledge and skills.

Characteristics of profession;

i. It has systematic body of knowledge

ii. It has obtained through formal training

iii. It has a code of conduct

From the above discussion, reveals that management fulfill several essential of a profession but it doesn't restrict the entry into managerial job. The Management Association have no legal right to force their code of conduct so management is not restrictly. The statement that management is a profession is false.

#9. Difference between coordination and cooperation.

> Coordination;

i. It is collective effort by the person working together.

ii. It is both formal and informal.

iii. It is mandatory.

iv. It is prepared by the management through its executive.

v. It has wider scope.

vi. It is interdependent.

vii. Its objective is to achieve organisational goal.

Cooperation;

i. It is individual effort.

ii. It is informal.

iii. It is voluntary.

iv. It is sort by the employees working together.

v. It has narrow scope.

vi. It is dependent.

vii. Its objective is to help each other.

    POINTS

1. According to Lawrence Appley management is the development of the people and not the direction of the things.
2. Management is an art as well as science.
3. Management in India is necessary.
4. The main cause of slow progress of India is the lack of efficient management.
5. The primary cause of America prosperity is efficient management.
6. Coordination is the essence of management.
7. Planning is the process of Thinking before doing.
8. Management start from planning.
9. Motivate employees to do more work.
10. Management is needed at all level at all the time.
11. The social responsibility of management is towards employees, Government and consumers.
12. Management is a profession this statement is given by American Management Association.
13. Higher level of management spend 35% time in planning.
14. Management is delicate responsibility it involves machine.
15. According to George R Terry there are four function of management.
16. According to Koontz and O'Donnel there are five function of management.
17. Coordination is established by all level management.
18. Coordination is necessary.
19. There are three level of management.
20. Management is the basic pillar of progress.
21. The foremost need of development in a country is efficient management.

THE END