NCERT Class 12 Business Studies Nature And Significance Of Management

NATURE AND SIGNIFICANCE OF MANAGEMENT

Introduction

The above case is an example of a successful organisation which is amongst the top companies in India. It has risen to the top because of i ts qual i ty of management . Management is required in all kinds of organisations whether they are manufacturing computers or handlooms, trading in consumer goods or providing hairstyling services and even in non-business organisations. Let us take another example. Suhasini is the branch manager of Fabmart, an organisation that promotes the sales of Indian handloom and handicraft products while providing equitable employment to traditional artisans.

Fabmart sources its products from over 7500 craft persons and artisans across India. Planning the products is a difficult task that is done by a team of marketing and design experts to ensure that whatever is produced is according to market demand. These plans are then communicated by Suhasini to the rural artisans who actually implement them.  Fabmart is a private limite company with several branches all over the country. It has a complex organisation structure in which actual production is in the hands of several skilled artisans and marketing is done by staff at branches such as the one managed by Suhasini.

This means constantly providing direction and motivation to her employees. She also has to ensure that production  is carried out according to plans inorder to ensure regular sales. A typical day in Suhasini’s life  consists of a series of interrelatedand continuous functions. She has to plan a special festive collection for Diwali and Christmas. This means organising more funds and recruiting more artisans. She also has to regularly communicate with her suppliers to ensure that deadlines regarding delivery of goods are met. In the course of the day she meets customers for a general feedback and any suggestions that theymay have.

Suhasini is the manager of Fabmart. So is Nusli Wadia of Bombay Dyeing, Bill Gates of Microsoft, ShivNadar of HCL Enterprises, Indra Nooyi of Pepsico and the Principal of your school. They all manage organisations. Schools, hospitals,shops and large corporations are all organisations with diverse goals thatare aimed at achieving something. No matter what the organisation is or what its goals might be, they all have something in common – management and managers.

You have observed that Suhasini’s work as a manager consists of a series of different activities or functions aimed at achieving the goals of the organisation. These interconnected and interdependent functions are part of management  Successful organisations do noachieve their goals by chance but by following a deliberate process called ‘management’. Management is essential for all organisations big or small, profit or non-profit, services or manufacturing. Management is necessary so that individuals make their best contribution towards group objectives. 

Management consists of a series of interrelated functions that are performed by all managers. Shiv Nadar, the CEO of HCL Enterprises performs all these functions and so does Suhasini at Fabmart. Later in this chapter you will understand that although both of them are managers, they function at different levels in the organisation. The time spent by managers in different functions however is different. Managers at the top level spend more time in planning and organising than managers at lower levels of the organisation.

Concept

Management is a very popular term and has been used extensively forall types of activities and mainly for taking charge of different activities in any enterprise. As you have seen from the above example and case studythat management is an activity which is necessary wherever there is a group of people working in an organisation. People in organisations are performingdiverse tasks but they are all working towards the same goal. Managementaims at guiding their efforts towards achieving a common objective — agoal. Thus, management has to se that tasks are completed and goals are achieved (i.e., effectiveness) with the least amount of resources at a minimum cost (i.e., efficiency). Management, has therefore, been defined as a process of getting thingsdone with the aim of achieving goals effectively and efficiently. We needto analyse this definition. 

Exercises

Short Answer Type

1. Define management.

2 . Name any two important characteristics of management.

3 . Ritu is the manager of the northern division of a large corporate house. At what level does she work in the organisation? What are her 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.

Multiple Choice

1. Which is not a function of management of the following

   (a) planning

   (b) staffing

   (c) cooperating

   (d) controlling

2 . management is 

   (a) an art

   (b) a science

   (c) both art and science

   (d) neither

3 . the following is not an objective of management

   (a) earning profits

   (b) growth of the organisation 

   (c) providing employment

   (d) policy making

4 . policy formulation is the function of

   (a) top level managers

   (b) middle level managers

   (c) operational management

   (d) all of the above

Please refer to attached file for NCERT Class 12 Business Studies Nature And Significance Of Management