12 Business Studies–XII CHAPTER – 1
Quick Revision Notes
NATURE AND SIGNIFICANCE OF MANAGEMENT
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 controlling 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. Features of management
1. Goal oriented – Management processes at every stage aim at achieving the Organisational goal as its fundamental objective.
2. Group activity - It unties the efforts of different individuals in an organisation towards achievement of a common goal.
3. Intangible force - It is a force that cannot be seen or heard but can be felt. 4. All pervasive-This function is applied necessarily at every organisation, every level irrespective of its size and purpose.
5. Multidimensional - Being a sequential set of activities It binds the 5 M’s (men, material, money, machine and method)together. However, the Three main dimensions are- Management of Work: Every organisation exists to perform work Management of People: Management is all about getting work done through people and achieving the organisational goal/objectives. It implies dealing with diverse needs of the employees, and individuals as a group of people.
Management of Operations: An organization has to provide some service or product which entails production process having an input, transformation and output. 6. Continuous process - It comprises of series of interdependent, interconnected activities wherein one cannot be performed independent of the other.The functions of planning, organizaing, directing , staffing and controlling are peformed by all managers all the time.
7. Dynamic - The processes are moulded and adapted as per the changing external environment which consists of social, political and Economic factors. Quick Revision 13
4. Functions of management:
1. Planning - Setting objectives and targets and formulating an action plan of what is to be done, how to be done and when to do it
2. Organising - Assignment of duties, task, establishment of authority and responsibility relationship, allocating the resources required to perform the planned task. 3. Staffing - Finding and placing the right person at the right job at the right time. 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.
5. Management 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. Social:
▪▪ Producing quality products at reasonable rates,
▪▪ generating employment opportunities,
▪▪ Community progress and development by providing schools and crèches to employees. Infact 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.
▪▪ 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...
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