Business Studies Class 12 Notes Nature and Significance of Management

  Management is an artwork of getting matters performed with and via others. Management can be described as, the system of getting matters completed with the intention of attaining organizational dreams successfully and efficiently.

For Example

U mart is a non-public limited company with various branches all over the country.

It has a complex organization shape in which actual manufacturing is in the fingers of several knowledgeable artisans and marketing is accomplished by means of workforce at   branches and  Karishma manages the whole organization .

This means continuously presenting direction and motivation to her employees.

She also has to make certain that production is carried out in accordance to plans in order to make sure everyday sales.

An ordinary day in Karishma life consists of a sequence of interrelated and non-stop functions.

She has to format exclusive festive collection for Diwali and Christmas.

This means organising extra cash and recruiting extra artisans.

She also has to typically speak with her suppliers to make certain that deadlines regarding transport of items are met.

In the path of the day she meets customers for a conventional remarks So in this way effective and efficient manager is required for better managing the organization

Efficiency and Effectiveness

Efficiency (completing the work at low cost) ability doing the assignment effectively at minimal price via ideal utilization of sources whilst effectiveness (Completing the work on time) is involved with stop end result capability finishing the venture successfully inside stipulated time.

Although effectivity and effectiveness are specific yet they are inter related.

It is vital for administration to preserve a stability between the two.

1. Kamlesh organized a well-documented and factual file on Co’s overall performance however she ought to now not current it in Board assembly as she should now not whole it on time.

[Hint: Efficient but not effective]

2. Best roadways promised to supply items in time and charged greater cash from Mr. Sharma But the items had been no longer delivered on time.
[Hint: Efficient but  not effective]

Characteristics of Management

1. Goal oriented Process: It is a purpose oriented process, which is to obtain already exact and favored targets by using appropriate utilization of on hand resources.

For Example

example, the goal of a groceries store may be to enhance sales , but the goal of The ngo and societies   of India is to impart education to children Management unites the efforts of different individuals in the organization towards achieving such targets

2. Pervasive: Management is well-known in nature. It is used in all sorts of businesses whether or not economic, social or political irrespective of its size, nature and region and at every and each and every level.

For Example

A school  needs to be managed  much as a hospital or a ngo  so management is needed in every organization

3. Multidimensional: It is multidimensional as it includes administration of human beings,work and operations.

4. Continuous: It consists of a collection of feature and its features are being carried out by using all managers simultaneously.

The manner of administration continues until a corporation exists for reaching its objectives.

For Example

Manager of xyz ltd. Has to continue manage the affairs of the company in order to achieve organisational targets

5. Group Activity: It is a team endeavor considering it includes managing and coordinating things to do of special humans as a group to obtain the favored targets of the organization.

6. Dynamic features: It is a dynamic feature due to the fact it has to adapt in accordance to need, time and state of affairs of the altering commercial enterprise environment.

 For example, kfc  made principal adjustments in its ‘Menu’ to live to tell the tale in the Indian market.

7. Intangible Force: It is intangible pressure as it can’t be viewed however its results can be felt in the shape of effects like whether or not the goals are met and whether or not human beings are inspired or no longer and there is orderliness and coordination in the work environment.

Objectives of Management

(1) Organizational objectives

Organizational Objectives can be divided into three parts :

(A) Survival – Management via taking fantastic selections with regard to exclusive commercial enterprise things to do ensures survival of enterprise for lengthy term.

(B) Profit – It performs an essential position in dealing with commercial enterprise dangers and profitable strolling of enterprise activities.

(C) Growth – Management should make certain increase which can be measured by using enlarge in sales, variety of employees, wide variety of products, extra investment, etc.

(2) Social Objectives:

Social goals is to grant some advantages to society like making use of environmental pleasant practices in the manufacturing manner and giving employment to deprived sections of society, etc

Example: Asian Paints,TISCO,ITC,infoysys etc  continuously helping the society under corporate social responsibility

(3) Personal Objectives:

Personal Objectives is to focal point on various non-public targets of human beings working in the corporation which want to be reconciled with organizational objectives.

Importance of Management

(1) Achieving Group Goals: Management creates group work and coordination in the group. Managers supply frequent course to character efforts in reaching the typical desires of the organization.

(2) Increases Efficiency: Management will increase effectivity via the usage of assets in the high-quality viable manner to minimize value and expand productivity.

(3) Creates Dynamic organization: Management helps the personnel overcome their resistance to exchange and adapt as per altering scenario to make certain its survival and growth.

(4) Achieving private objectives: Management helps the people obtain their private desires whilst working in the direction of organizational objectives.

(5) Development of Society: Management helps in the improvement of society with the aid of producing accurate excellent products, developing employment possibilities and adopting new technologies.

Management as an Art:-

Art refers to skillful and non-public utility of present expertise to attain favored results.

It can be obtained via study, remark and experience. The elements of artwork as follows:

(1) Existence of theoretical knowledge: In each and every art, Systematic and prepared learn about fabric need to be handy compulsorily to collect theoretical knowledge.

(2) Personalized application: The use of primary information differs from individual to man or woman and thus, artwork is a very personalized concept.

(3) Based on exercise and creativity: Art includes in steady and innovative exercise of current theoretical knowledge.

In administration additionally a large extent of literature and books are accessible on extraordinary factors of management.

Every supervisor has his very own special fashion of managing matters and people.

He makes use of his creativity in making use of administration methods and his abilities enhance with normal application.

Since all the aspects of artwork are existing in management. so it can known as an art.

Management as a Science

Science is a systematized physique of expertise that is primarily based on prevalent truths which can be examined anywhere, anytime.

The elements of Science are as follows:

(1) Systematized physique of knowledge: Science has a systematized body of expertise based totally on ideas and experiments.

(2) Principles primarily based on experiments and observation: Scientific standards are developed thru experiments and observation.

(3) Universal validity: Scientific concepts have conventional validity and application.

Management has systematic physique of information and its ideas are developed over a duration of time based totally on repeated experiments & observations which are universally relevant however they have to be modified in accordance to given situation.

As the ideas of administration are now not as precise as the concepts of pure science, so it may also be called-an inexact science.

The prominence of human component in the administration makes it a Social Science.

Management as Profession

Profession potential an occupation for which specialized understanding and capabilities are required and entry is restricted.

The essential elements of career are as follows:

(1) Well-defined physique of Knowledge: All the professions are primarily based on properly described physique of knowledge.

(2) Restricted Entry: The entry in each and every occupation is limited thru examination or via some minimal academic qualification.

(3) Professional Associations: All professions are affiliated to a expert affiliation which regulates entry and frames code of behavior pertaining to to the profession.

(4) Ethical Code of Conduct: All professions are sure by means of a code of habits which publications the conduct of its members.

(5) Service Motive: The most important intention of a occupation is to serve its clients.

Management does no longer fulfill all the points of a occupation and as a result it is no longer a full-fledged occupation like doctor, lawyer, etc., however very quickly it will be recognized​ as full-fledged profession.

Levels of Management

1. Top Level Management
2. Middle Level Management
3. Lower Level Management

Levels of Management

1. Top Level Management: It Consists of Chairperson, Chief Executive Officer, Chief Operating Officer or equal and their team.

Chief project is to combine and to coordinate the quite a number things to do of the business, framing policies, formulating organizational dreams & strategies.

2. Middle Level Management :

Consists of Divisional or Departmental heads, Plant Superintendents and Operation Managers etc.

Main duties are to interpret the insurance policies of the pinnacle administration to make certain the availability of assets to put into effect policies, to coordinate all activities, make certain availability of crucial personnel & assign obligations and duties to them.

3.Lower Level/Supervisory Level:

Consists of Foremen and supervisor etc.

Main challenge is to make certain authentic implementation of the insurance policies as per directions, carry workers’ grievances earlier than the administration & hold self-discipline amongst the workers.

Functions of Management

1.Planning: Thinking in strengthen what to do, when to do, and who is going to do it. It bridges the hole between the place we are and the place we desire to reach.

2.Organising: organization ability finding out the framework of working how many gadgets and sub-units are needed, how many posts are needed, how to distribute the authority and responsibilities.

3. Staffing: It refers to recruitment, selection, training, improvement and appointment of the employees.

4.Directing: It refers to guiding, instructing, inspiring and motivating the employees.

5.Controlling: This is a fundamental features of management.

Controlling is monitoring the organizational overall performance closer to the attainment of the organizational goals.

Coordination (The Essence of Management)

Coordination is the pressure which synchronizes all the features of administration and things to do of exclusive departments.

Lack of coordination effects in overlapping, duplication, delays and chaos.

It is involved with all the three degrees of administration as if all the tiers of administration are appeared at together, they emerge as a team and as in the case of each and every group, they additionally require coordination amongst themselves.

So, it is no longer a separate feature of management, instead it is the essence of management.

Nature and Significance of Management

l. Coordination integrates crew efforts: It integrates various enterprise things to do into purposeful crew endeavor making sure that all humans work in one route to reap organizational goals.

2. Coordination ensures solidarity of action: It directs the things to do of special departments and employees in the direction of success of frequent dreams and brings team spirit in man or woman efforts.

3. Coordination is a non-stop process: It is no longer a unique undertaking count number it is required at all levels, in all departments until the company continues its operations.

4. Coordination is all pervasive function: It is frequent in nature. It synchronizes the things to do of all tiers and departments as they are interdependent to hold organizational balance.

5. Coordination is the accountability of all managers: It is equally necessary at all the three-top, center and decrease tiers of management.

Thus it is the accountability of all managers that they make efforts to set up coordination.

6. Coordination is a deliberate function: Coordination is by no means hooked up by using itself instead it is a aware effort on the section of each and every manager.

Cooperation is voluntary effort of personnel to assist one another.

Effective coordination can’t be completed besides cooperation of team members.

Related Questions

1. Define management.

2. Name any two important features  of management.

3. Kamal  is the manager of the northern division of a large corporate house. At what level does she work in the organisation? What are his  basic functions?

4. Why is management considered a multi-faceted concept?

5. Discuss the basic features of management as a profession.

Long Answer Type

1. Management is considered to be both an art and science. Explain.

2. Do you think management has the characteristics of a full fledged profession?

3. Coordination is the essence of management. Do you agree? Give reasons.

4. “A successful enterprise has to achieve its goals effectively and efficiently.” Explain.

5. Management is a series of continuous interrelated functions. Comment.