CBSE CLASS 12 BUSINESS STUDIES CHAPTER, Study Guides, Projects, Research of Business Management and Analysis

Download CBSE CLASS 12 BUSINESS STUDIES CHAPTER and more Study Guides, Projects, Research Business Management and Analysis in PDF only on Docsity! CBSE CLASS 12 BUSINESS STUDIES CHAPTER – I NATURE AND SIGNIFICANCE OF MANAGEMENT REVISION NOTES 1. DEFINITION OF MANAGEMENT: “Management is the process of working with and through others to effectively achieve the organizational objectives by efficiently using limited resources in the changing environment.” Kreitner 2. MEANING/CONCEPT OF MANAGEMENT: Management is the process of getting things done with the aim of achieving goals effectively and efficiently. a. Process: refers to the primary function like planning, organising, staffing, directing and controlling performed by the management to get things done. b. Effectiveness: means completing the right task to achieve the deputed goal within the time frame. c. Efficiency: means completion of task using minimum resources 3. EFFECTIVENESS VS EFFICIENCY • Effectiveness is about doing the right task, completing the assigned job on time, no matter whatever the cost. • Efficiency is about doing the job in cost effective manner i.e. getting maximum output with minimum input Basis Effectiveness Efficiency Meaning It refers to the completion of work on time. It refers to the completion of work correctively with minimum cost and maximum profit In simple words It simply means doing right things It simply means doing things correctly in a faster and cost efficient manner. Objective To achieve end results on time Performing task with least wastage of time and effort(cost) Main Focus Is on t ime Is on cost 4. CHARACTERISTICS OF MANAGEMENT: 1. Management helps in achieving group goals: Management creates teams and coordinates with individuals to achieve individual goals along with organizational goals 2. Increases efficiency: Management increases efficiency by using resources in the best possible manner to reduce cost and increase productivity. 3. Creates dynamic organization: Management helps the employees overcome their resistance to change and adapt as per changing situation to ensure its survival, growth and its competitive edge. 4. Achieving personal objectives: Through motivation and leadership management helps the individuals in achieving personal goals while working towards organizational objective. 5. Development of society: Management helps in the development of society by producing good quality products, creating employment opportunities and adopting new technologies. 7. NATURE OF MANAGEMENT 1. Management as an Art Art refers to skillful and personal application of existing knowledge acquired through study, observation and experience. The features of art are as follows: a. Existence of theoretical knowledge: In every art, Systematic and organized study material is available to acquire theoretical knowledge and experts in the respective fields apply these principles to their respective art forms. b. Personalized application: The use of basic knowledge differs from person to person and thus, art is a very personalized concept. c. Based on practice and creativity: Art involves creativity and practice of the experts. For e.g. the music created by musicians are different though the musical notes used are the same. Every manager has his own unique style of managing things and people. He/she uses his creativity in applying management techniques and his skills improve with regular application. Since all the features of art are present in management. So it can called an art. 2. Management as a Science Science is a systematized body of knowledge that is based on general truths, which can be tested anywhere, anytime. The features of Science are as follows: a. Systematized body of knowledge: Science has a systematized body of knowledge based on cause and effect relationship. b. Principles based on experiments and observation: Scientific principles are developed through experiments and observation. c. Universal validity: Scientific principles have universal validity and application. Management has systematic body of knowledge and its principles are developed over a period of time based on repeated experiments & observations which are universally applicable but they have to be modified according to given situation. As the principles of management are not as exact as the principles of pure science, so it may be called-an inexact science. The prominence of human factor in the management makes it a Social Science. 3. Management as Profession Profession means an occupation for which specialized knowledge and skills are required and entry is restricted. The main features of profession are as follows: a. Well-defined body of Knowledge: is complete set of principles, concepts, terms and activities that make up a professional domain. b. Restricted Entry: The entry in every profession is restricted through examination or through educational degree. c. Professional Associations: All professions are affiliated to a professional association, which regulates entry and frames code of conduct relating to the profession. Eg. IMA, ICAI d. Ethical Code of Conduct: All professions are bound by a code of conduct, which guides the behavior of its members. e. Service Motive: The main aim of a profession is to serve its clients. Management does not fulfill all the features of a profession and thus it is not a full-fledged profession like doctor, lawyer, etc. 8. LEVELS OF MANAGEMENT Top Management: Designations and Functions Comprises of CEO, Board of Directors, MD, GM, VP. Main task is conceptualizing of organizational goal, policy and strategy formulation and organising, controlling and monitoring activities and resources. Controlling the work performance of individuals and approving Budgets. Middle Management : Designations and Functions Comprises of Departmental, Sub‐Departmental and Divisional heads, its main task is execution of plans, policies framed by the top level management and preparing organisational set up & appointing employees and issuing instructions and motivating employees. Ensuring interdepartmental cooperation as well. Supervisory and operational Level : Designations and Functions Consists of Foremen and supervisor etc. Main task is to ensure actual implementation of the policies as per directions of top and middle level managers and also to Bring workers’ grievances before the management & maintain discipline among the workers. 9. FUNCTIONS OF MANAGEMENT: