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CBSE CLASS 12 BUSINESS STUDIES
CHAPTER – I
NATURE AND SIGNIFICANCE OF MANAGEMENT
REVISION NOTES

1
...
”
Kreitner
2
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a
...

b
...

c
...
EFFECTIVENESS VS EFFICIENCY
•
•

Effectiveness is about doing the right task, completing the assigned job on time, no matter
whatever the cost
...
e
...


In simple
words

It simply means
doing right things

It simply means doing things
correctly in a faster and cost
efficient manner
...
CHARACTERISTICS OF MANAGEMENT:

It refers to the completion of
work correctively with
minimum cost and maximum
profit

I
...
Management unites the efforts of
the individuals in the organisation towards achieving these goals
...


Management is all pervasive: Management is common to all organisations whether
economic, social or political
...
g
...


III
...


Management is a continuous process: It is a series of continuous, composite, but separate
functions, performed by all managers all the time
...


Management is a group activity: All the individuals in the organisation contributes
towards achieving the goals set by the organization
...


Management is a dynamic function: It has to adapt itself to its changing external
environment, which consists of various social, economic and political factors
...


Management is an intangible force: It cannot be seen but its presence can be felt from
the way organization functions
...
MANAGEMENT OBJECTIVES:

Organisational Objectives: Organizational Objectives can be divided into Survival (Earning
enough revenues to cover cost); Profit (To cover cost and risk); and Growth (To improve its
future prospects)
...
Management by taking positive
decisions with regard to different business activities ensures survival of business for long
term
...
Profits provide a vital
incentive for the continued successful operation of the enterprise
(c) Growth: Growth indicates how well it exploits the potential opportunities
...

Social Objectives:
Is to provide quality products at reasonable rates and generating employment opportunities for
disadvantaged sections of society
...

Personal Objectives:
Includes meeting the financial needs like competitive salaries and perks and Social and safety
needs of the employee like basic amenities, peer recognition etc
...
IMPORTANCE OF MANAGEMENT

1
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Increases efficiency: Management increases efficiency by using resources in the best possible
manner to reduce cost and increase productivity
...
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
...
Achieving personal objectives: Through motivation and leadership management helps the
individuals in achieving personal goals while working towards organizational objective
...
Development of society: Management helps in the development of society by producing good
quality products, creating employment opportunities and adopting new technologies
...
NATURE OF MANAGEMENT
1
...
The features of art are as follows:
a
...

b
...


c
...
For e
...
the music created by musicians are different though the musical
notes used are the same
...
He/she uses his
creativity in applying management techniques and his skills improve with regular application
...
So it can called an art
...
Management as a Science
Science is a systematized body of knowledge that is based on general truths, which can be tested
anywhere, anytime
...
Systematized body of knowledge: Science has a systematized body of knowledge based
on cause and effect relationship
...
Principles based on experiments and observation: Scientific principles are developed
through experiments and observation
...
Universal validity: Scientific principles have universal validity and application
...

As the principles of management are not as exact as the principles of pure science, so it may
be called-an inexact science
...

3
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The main features of profession are as follows:
a
...

b
...

c
...
Eg
...
Ethical Code of Conduct: All professions are bound by a code of conduct, which guides
the behavior of its members
...
Service Motive: The main aim of a profession is to serve its clients
...


8
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Main task is conceptualizing of
organizational goal, policy and strategy formulation and organising, controlling and monitoring
activities and resources
...

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
...

Supervisory and operational Level : Designations and Functions
Consists of Foremen and supervisor etc
...


9
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Planning : Setting objectives and targets and formulating an action plan
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II
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III
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It
involves recruitment, selection, placement, induction and development of employees
...


Directing: Refers to leading, influencing, motivating the staff chosen to perform the
assigned task efficiently and effectively
...


Controlling: Refers to monitoring organizational activities towards the attainment of
organizational goals
...


10
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Lack of coordination results in overlapping, duplication, delays and chaos
...
Coordination is implicit and inherent in all functions of an
organisation
...


Coordination Integrates Group Effort: It is an orderly arrangement of group effort to
ensure that performance is at par with the plans and schedules
...


Coordination Ensures unity of action: It is a binding force between various departments
and ensures that all efforts are focused towards achieving the organizational goal
...


Coordination is a Continuous Process: It is a never-ending process as its needs are felt
at all levels and in all activities in the organisations
...


IV
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It is the responsibility of all the individuals in an organisation to
carry out their work in a responsible manner and coordinate with each other to achieve
organizational goals
...


Coordination is a deliberate function: A manager has to coordinate the efforts of
different people in a conscious and deliberate manner
...


VI
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Lack of coordination can lead to overlapping of activities
...


Growth in the Size: An organisations growth results in the increase in the number of
people employed with varied individual aspirations and culture
...


II
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However all departments and
individuals are interdependent and cannot work in isolation
...


III
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Coordination seeks to sequence and integrate all the specialists’ activities into a
wholesome effort

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