Nature and Significance of Management Class 12 Notes Business Studies Chapter 1 - CBSE

Chapter: 1

What Are Nature And Significance Of Management ?

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    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

    • Effectiveness is completion of assigned work on time.

    Efficiency

    • 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

    Organisational Objectives

    • Survival
    • Growth
    • Profit

    Social Objectives

    • Quality Products
    • Reasonable Price
    • Employment Opportunities
    • Economic Wealth
    • Education, Health & Vocational Training Programmes
    • Eco-friendly Methods of Production

    Personal Objectives

    • 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

    Top Management

    • • Set objectives
    • • Scan environment
    • • Plan and make decisions

    Middle Management

    • • Allocate resources
    • • Oversee first-line managers
    • • Report to top management
    • • Develop and implement activities

    First-line / Supervisory / Operational Management

    • • Coordinate activities
    • • Supervise employees
    • • Report to middle managers
    • • Involved in day-to-day operations

    Functions Of Management

    Planning

    What is to be done, when is to be done and how is to be done.

    Organizing

    Assigning duties, grouping task, establishing authorities and allocating resources.

    Staffing

    Finding the right people for right job.

    Directing

    Leading, influencing and motivating employees.

    Controlling

    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
    • Specialization