CBSE Class 12 Business Studies Nature And Significance Of Management Notes

Linking of Class XI syllabus:

1. In sole proprietorship business, the owner him‐self manages his business.

2. In Partnership business all partners or any one partner on behalf of other partners can manage the business.

3.In HUF ‘Karta’ manages the business.

4. But in a Joint Stock Company, it is managed by professionally qualified managers. So in this context, the need for management arises.

CONCEPT MAPPING

Concept: Management is the process of planning, organising, staffing, directing and controlling the resources efficiently and effectively for achieving the organisational goals.

Characteristics: (a) goal oriented process, (b) pervasive, (c) multidimensional (d) group activity, (e) continuous process, (vi) dynamic function, (vii) intangible force

Objectives : (a) organisational (b) social, and (c) personal objectives

Importance: (a) achieves group goals (b) increases efficiency (c) creates dynamic organization (d) helps
achieve personal goals (e) development of society

Management as Art: Theoretical knowledge, personal application, based on practice, creativity

Management as a Science : (a) Systematic body of knowledge (b) principles dpplication,
base on a(c) universal validity Management as a Profession: (a) well defined body of knowledge (b). restricted entry (c) professional association (d) ethical code of conduct Management fulfills
some but not all of these requirements

Levels of management: (a) Top Level management (b) Middle Level management (c) Supervisory or operational or lower level management

Functions of Maniagement: Planning, organising, staffng, directing and controlling

Coordination : The process of achieving unity of action among interdependent activities and departments of an organisation. It is the essence of management as it is required in all managerial functions.

KEY CONCEPTS IN NUTSHELL

1.MEANING/CONCEPT OF MANAGEMENT: Management is the process of getting things done with the aim of achieving goals effectively and efficiently.

• Process: refers to the primary function like planning, organising, staffing, directing and c.
ontrolling performed by the management to get things done

• Effectiveness: means completing the right task to achieve the deputed goal within the time frame.

• Efficiency: means completion of task using minimum resources

2.DEFINITION OF MANAGEMENT: “Management is the process of working with and through others to effectively achieve the organisational objectives by efficiently using limited resources in the changing environment.”

3. Staffing ­ Finding and placing the right person at the right job at the right

4. Directing ­ Leading, influencing, motivating the staff chosen to perform the assigned task efficiently and effectively.

5. Controlling ‐ Ensuring/Monitoring the activities in an organisation are performed as per the plan.

4. Nature of Management: As an art, As a science and As a professio

5. MANAGEMENT OBJECTIVES­ Organisational Objectives:

Survival:­ Ensure that the organisation survives and exists in the future. Profitability:­ Earning adequate profit in order to survive and grow Growth:­ Growth indicates how well it exploits the potential opportunities.

SocialObjectives:

• Producing quality products at reasonable rates,

• generating employment opportunities,

• Community progress and development by providing schools and crèches to employees In fact most of the firms have taken upon themselves the concept of social responsibility as one of the basic element of business objectives .

• Environmental friendly method of production.

PersonalObjectives:

• Meeting the Financial needs like competitive salaries and perks

• Social and safety needs of the employee like peer recognition, self respect and respect for colleagues

• Higher level needs like implementation and monitoring of policies for personal growth and survival

• Reconcile personal goals with organisational objectives for harmony in the organisation.

6. IMPORTANCE OF MANAGEMENT

• Aids in achievement of individual and organisational goals

• Increases efficiency

• Enhances optimum utilisation of resources

• Creates a dynamic organisation

• Promotes development of society

7. LEVELS OF MANAGEMENT

Top level: ­ Designations and Functions

• Comprises of CEO, Board of Directors, MD, GM, VP

• Conceptualising of organisational goal, policy and strategy formulation

• Organising , Controlling and Monitoring activities and resources

• Controlling the work performance

• Approving Budgets

MiddleLevel:­ ­ Designations and Functions

• Comprises of Departmental, Sub‐Departmental and Divisional heads.

• Execution of plans, policies framed by the top level management

• Preparing organisational set up & appointing employees

• Issuing instructions and motivating employees

• Ensuring interdepartmental cooperation

LowerLevel:­ ­ Designations and Functions

• Forwarding suggestions and feedback to the top level

• Comprise of Supervisors, Foremen and inspectors

• Maintain Morale, safety and discipline amongst the work force

• Oversee the work of the workers

• Assist the management in selection, training, placement & promotion of workers

8. NATURE OF MANAGEMENT As an art:

• Existence of theoretical knowledge.

• Developed through Practical and creative process.

• Personalised application and skill

Asa Profession:

• Well defined body of knowledge.

• Existence of code of conduct

• Professional association (AIMA)

• Restricted entry

• Fees as remuneration for their services

Asa Science:

• Arranged, organised systematic body of knowledge

• Universal validity

• Principles arrived at after experimentation

9. COORDINATION

It is the synchronisation of various activities and efforts in an organisation providing the required amount of quality, timing and sequence; thus ensuring the achievement of the planned goal with minimum content.

10. FEATURES OF COORDINATION: 

• Integrates Group Effort: It is an orderly arrangement of group effort and not individual effort

• Ensures unity of action: It is a binding force between departments and ensures that all efforts are focussed towards achieving the organisational goal

• It is a Continuous Process never ending process as its needs are felt at all levels and steps in the organisations. It begins at the planning stage and continues till controlling

• It remains the function and responsibility of every manager: the top level coordinates the overall plan, middle level coordinates the efforts of the different sections and subsections and lower level management coordinates the activities of the workers.

Q14. Amit and Kavya, complete their school education together. After that Amit appears and qualifies MBBS entrance examinations and joins a reputed Medical college to pursue a degree in medicine. After 4 years, he will get a degree from Medical council of India and start practicing as a doctor. Kavya had to take over her mother’s business as she passes away in a tragic accident. She assumes the post of Managing Director’ in the company. Kavya also joins National Open School to complete her graduation along side.

On the basis of above para identify and explain the main features of a profession. Also, share your views on whether management is a profession or not.

Q15. Prime Minister of India, launched the Swaach Bharat Abhiyan and urged all the citizens and business organizations to actively support it. Keeping this in mind, Armour Helments Pvt. Ltd. decided to contribute by installing 500 dustbins in and around major markets of the city.
Which objective of management is the company trying to fulfill by this act?

ANSWERS

Answer 1: The company is lacking an important aspect of management that is Coordination. Here production department, marketing department and finance department are not working in unity for achieving the goals of the organization due to which return on investment and market share is declining.
To bring company back on track proper coordination should be ensured. Coordination will help in integrating activities of separate units of an organization to accomplish the goals efficiently.
Favourable environment should be created where departments instead of blaming each other can work in harmony with each other for improving the current situation of the company.

Answer 4: Top level management

Answer 6: a. Social Objectives have been discussed in the given situation. The social objectives of an organisation basically involves the creation of benefit and development of the society. The
following are some of the social objectives of management that are being indicated in the given situation.
i. Producing environment friendly products such as solar lanterns.
ii. Setting-up a factory of solar lanterns in order to provide electricity in rural areas.
iii. Providing employment opportunities to the needy.

Answer 10: He is effective but not efficient

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