Class XII Business Studies
Chapter 1: Nature and Significance of Management (Notes)
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.
1. Rohini prepared a well-documented and factual report on Co’s performance
but she could not present it in Board meeting as she could not complete it on
time.
[Hint: Efficient but not effective]
2. Best roadways promised to deliver goods in time and charged extra money
from Mr. Singh. But the goods were not delivered on time.
[Hint: Efficient but not effective]
Characteristics of Management
1. Goal oriented Process It is a goal oriented process, which is to achieve already
specified and desired objectives by proper utilization of available resources.
2. Pervasive: Management is universal in nature. It is used in all types of
organizations whether economic, social or political irrespective of its size, nature and
location and at each and every level.
3. Multidimensional: It is multidimensional as it involves management of work,
people and operations.
4. Continuous: It consists of a series of function and its functions are being
performed by all managers simultaneously. The process of management continues
till an organization exists for attaining its objectives.
5. Group Activity: It is a group activity since it involves managing and coordinating
, activities of different people as a team to attain the desired objectives of the
organization.
6. Dynamic function : It is a dynamic function since it has to adapt according to
need, time and situation of the changing business environment. For example,
McDonalds made major changes in its ‘Menu’ to survive in the Indian market.
7. Intangible Force: It is intangible force as it can’t be seen but its effects can be felt
in the form of results like whether the objectives are met and whether people are
motivated or not and there is orderliness and coordination in the work environment.
Objectives of Management
(1) Organizational 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).
(A) Survival – Management by taking positive decisions with regard to different
business activities ensures survival of business for long term.
(B) Profit – It plays an important role in facing business risks and successful running
of business activities.
(C) Growth – Management must ensure growth which can be measured by increase
in sales, number of employees, number of products, additional investment, etc.
(2) Social Objectives:
Social objectives is to provide some benefits to society like applying environmental
friendly practices in the production process and giving employment to
disadvantaged sections of society, etc. Example: TISCO, ITC, and Asian Paints.
(3) Personal Objectives:
Personal Objectives is to focus on diverse personal objectives of people working in
the organization which need to be reconciled with organizational objectives.
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.
(5) Development of Society: Management helps in the development of society by
producing good quality products, creating employment opportunities and adopting
new technologies.
Management as an Art
Chapter 1: Nature and Significance of Management (Notes)
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.
1. Rohini prepared a well-documented and factual report on Co’s performance
but she could not present it in Board meeting as she could not complete it on
time.
[Hint: Efficient but not effective]
2. Best roadways promised to deliver goods in time and charged extra money
from Mr. Singh. But the goods were not delivered on time.
[Hint: Efficient but not effective]
Characteristics of Management
1. Goal oriented Process It is a goal oriented process, which is to achieve already
specified and desired objectives by proper utilization of available resources.
2. Pervasive: Management is universal in nature. It is used in all types of
organizations whether economic, social or political irrespective of its size, nature and
location and at each and every level.
3. Multidimensional: It is multidimensional as it involves management of work,
people and operations.
4. Continuous: It consists of a series of function and its functions are being
performed by all managers simultaneously. The process of management continues
till an organization exists for attaining its objectives.
5. Group Activity: It is a group activity since it involves managing and coordinating
, activities of different people as a team to attain the desired objectives of the
organization.
6. Dynamic function : It is a dynamic function since it has to adapt according to
need, time and situation of the changing business environment. For example,
McDonalds made major changes in its ‘Menu’ to survive in the Indian market.
7. Intangible Force: It is intangible force as it can’t be seen but its effects can be felt
in the form of results like whether the objectives are met and whether people are
motivated or not and there is orderliness and coordination in the work environment.
Objectives of Management
(1) Organizational 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).
(A) Survival – Management by taking positive decisions with regard to different
business activities ensures survival of business for long term.
(B) Profit – It plays an important role in facing business risks and successful running
of business activities.
(C) Growth – Management must ensure growth which can be measured by increase
in sales, number of employees, number of products, additional investment, etc.
(2) Social Objectives:
Social objectives is to provide some benefits to society like applying environmental
friendly practices in the production process and giving employment to
disadvantaged sections of society, etc. Example: TISCO, ITC, and Asian Paints.
(3) Personal Objectives:
Personal Objectives is to focus on diverse personal objectives of people working in
the organization which need to be reconciled with organizational objectives.
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.
(5) Development of Society: Management helps in the development of society by
producing good quality products, creating employment opportunities and adopting
new technologies.
Management as an Art
