Nature and Significance of Management Class 12 Notes Business Studies Chapter 1 - CBSE
What Are Nature And Significance Of Management ?
Concept Of Management
Management is getting work done through others with the aim of achieving goals effectively and efficiently. It is essential for all organisations whether big or small, profit or non-profit, services or manufacturing.
Effectiveness Vs Efficiency
• Effectiveness is completion of assigned work on time.
• Efficiency is completing work at minimal cost and with optimum utilisation of resources.
Characteristics of Management
- Management is a continuous process
- Management is a group activity
- Management is a dynamic function
- Management is an intangible force
- Management is a goal-oriented process
- Management is all pervasive
Management is multidimensional
- Management of work
- Management of people
- Management of operations
Objectives Of Management
- Quality Products
- Reasonable Price
- Employment Opportunities
- Economic Wealth
- Education, Health & Vocational Training Programmes
- Eco-friendly Methods of Production
- Adequate Salary
- Good Working Conditions
- Peer Recognition
- Training and Development
- Social Recognition
Importance of Management
- Management helps in achieving group goals
- Management increases efficiency
- Management creates a dynamic organisation
- Management helps in achieving personal objectives
- Management helps in the development of society
Nature Of Management
Management as an Art
Management has a theoretical knowledge, personalized application and application of management principles are based on practice and creativity. In this case as all the features of art are present in Management, it can be said that management is an art.
Management as a Science
Management has a systematic body of knowledge and its principles are developed through observation and based on experimentation. But, these principles are to be followed on human and their behavior is unpredictable. So, it cannot be said that all humans will react in same manner. For this reason only, management principles are not universal applicable.
Management has features of both art and science. Management as an art and a science are therefore not mutually exclusive, but complement to each other.
Management as Profession
Management has a well-defined body of knowledge and code of conduct like other profession. Till now, there is no restriction by a company that if the person has not done MBA then he/she cannot become manager.
The companies are planning to follow this. There are professional associations of MBA but all MBA’s are not registered. Now the companies are trying, if an organisation has a good management team that is efficient and effective it automatically serves society by providing good quality.
Management cannot be said full profession as it is moving towards profession by adopting features of profession.
Levels of Management
First-line / Supervisory / Operational Management
Functions Of Management
What is to be done, when is to be done and how is to be done.
Assigning duties, grouping task, establishing authorities and allocating resources.
Finding the right people for right job.
Leading, influencing and motivating employees.
Monitoring organizational performance towards attainment of goals
Coordination-the Essence Of Management
The process by which a manager synchronises the activities of different departments is known as coordination.
Charateristics of Coordination
- Coordination unifies unrelated or diverse interests into purposeful work activity.
- Coordination acts as the binding force between all departments and ensures that all action is aimed at achieving organisational goals.
- Coordination begins at the planning stage and continues till controlling.
- Coordination is required at all levels of management because activities of various departments depend on each other.
- Coordination is responsibility of all managers.
- A manager has to coordinate the efforts of different people deliberately
Importance Of Coordination
- Increase in number of employees
- Functions of an organization