Notes Chapter 1 Nature and Significance of Management
Class 12 students can refer to Chapter 1 Nature and Significance of Management notes given below which is an important chapter in the class 12 Business Studies book. These notes and important questions and answers have been prepared based on the latest CBSE and NCERT syllabus and books issued for the current academic year. Our team of Business Studies teachers has prepared these notes for class 12 Business Studies for the benefit of students so that you can read these revision notes and understand each topic carefully.
Nature and Significance of Management Notes Class 12 Business Studies
Refer to the notes and important questions given below for Nature and Significance of Management which is really useful and has been recommended by Class 12 Business Studies teachers. Understanding the concepts in detail and then solving questions by yourself will help you to learn all topics given in your NCERT Books.
MEANING OF MANAGMENT: –
Management is the process of planning organizing staffing directing and controlling the efforts of the organizational members by using all the other available resources to achieve the organizational goals.
DEFINATION OF MANAGEMENT: –
Management is an art of getting things done with and through others. Management can be defined as, the process of getting things done with the aim of achieving organizational goals effectively and efficiently.
Efficiency and Effectiveness
Efficiency (completing the work at low cost) means doing the task correctly at minimum cost through optimum utilization of resources while effectiveness (Completing the work on time) is concerned with end result means completing the task correctly within stipulated time. Although efficiency and effectiveness are different yet they are inter related. It is important for management to maintain a balance between the two.
CHARACTERSTICS OF MANAGEMENT: –
The features or characteristics of management:
1. Management is a process (involves all the activities: planning, organizing, staffing, directing and controlling)
2. Management is all pervasive/universal-(it is applied and required everywhere not only in business activities)
3. Management is a group activity-(performed together by all the levels for different purpose.)
4. Management is continuous-(ongoing process, after completion of one plan ,planning continuous for future)
5. Management is Dynamic-(changes should be brought with changing environment)
6. Management is intangible-( cannot be seen but can be felt in the environment)
OBJECTIVES OF MANAGEMENT
IMPORTANCE OF MANAGEMENT
(1) Achieving Group Goals: Management creates team work and coordination in the group. Managers give common direction to individual efforts in achieving the overall goals of the organization.
(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 and growth.
(4) Achieving personal objectives: Management helps the individuals achieve their personal goals while working towards organizational objectives.
products, creating employment opportunities and adopting new technologies.
The Nature of management:
Management can be:
a) Regarded as Science (Systematic body of knowledge acquired through experimentation and observation)
b) Regarded as Art (Creativity and personal skills)
c) Regarded as Profession (Specialized Knowledge and training)
FUNCTIONS FOR DIFFERENT LEVELS OF MANAGERS.
Broadly there are three levels of managers in the organizational hierarchy of authority;
1. Top level managers
2. Middle level managers
3.Lower level managers
1. TOP LEVEL MANAGERS;- It consists of mangers a the highest level of hierarchy, e.g. chief executives, board of directors, etc. the main function of top-level managers are ;
a) To establish and describe the overall objectives of the organization.
b) To plan, organize and exercise control over the middle and lower level of management.
c) To decide about the overall budget of the organization and budgets of the different departments.
2.MIDDLE LEVEL MANAGEMENT;- It consists of departmental heads of the organization. The functions of middle level mangers are;
a) To perform policies, prescribe procedures and methods in different areas to achieve the medium terms, short term and departmental objectives.
b) To assist the top management by periodic submission of reports, data and other important information.
c) To assign jobs amongst the subordinates and decide the process of delegation of authority.
3.LOWER/SUPERVISORY LEVEL MANAGEMENT; – These managers rank at lowest level in the organizational hierarchy. It consists of foremen, supervisors, etc. the main function of lower level managers are;
a) To translate the intermediate plan of middle level management into day-to-day operating plans.
b) To direct the operating employees by assigning jobs, evaluating and correcting there work performance.
c) To arrange necessary raw material, tools and other facilities.
d) To ensure implementation of work as per instructions, orders and standards.
MEANING OF COORDINATION:-
Coordination is the integration, synchronization or orderly arrangement of group efforts to provide for unity of action directed towards the accomplishment of common objectives.
NATURE OF COORDINATION:
Coordination is the process of achieving unit of action among independent activities. This would be better achieved if the nature of coordination is understood clearly as discussed below:
(i) Essence of management: Coordination is an activity that is required at every level and every time in the organization. Since organizations are performing diversified activities to achieve common goals, therefore the integration of efforts at all levels is equally important,.
(ii) Continues process: A notion of coordination as a fixed entity, which either exits or does not exist, is unrealistic. Coordination is present in varying degrees. Executives must work continuously to achieve coordination.
(iii) Group efforts: Coordination is a concept that applies to group, not individual, effort. When a member of individuals seek to work together, orderliness becomes significant.
IMPORTANCE OF COORDINATION
1. Size of the organization
2. Functional differentiation