CLASS 12 • BUSINESS STUDIES Chapter 1 • Revision Notes
CLASS 12 • BUSINESS STUDIES
CHAPTER 1 — NATURE AND SIGNIFICANCE OF MANAGEMENT
BOARD EXAM REVISION NOTES QUICK • CLEAR • EXAM-READY
What this chapter covers
Management • Objectives • Importance • Management as Art/Science/Profession • Levels of Management •
Functions of Management • Coordination • Coordination as the essence of management.
REVISION TIP: Learn the definitions first, then the headings/keywords. In board answers, write the heading
+ 1–2 lines of explanation + example wherever possible.
Board Exam Revision • Short Notes Page 1
, CLASS 12 • BUSINESS STUDIES Chapter 1 • Revision Notes
1. Meaning of Management
Management is the process of getting things done with the aim of achieving organisational goals effectively and
efficiently.
Two key words
Effectiveness = Completing the right task / achieving the desired goal.
Efficiency = Completing the task with minimum cost and optimum use of resources.
Management aims at both effectiveness and efficiency. A business may achieve its target but still be inefficient if it
wastes too many resources.
2. Characteristics / Features of Management
Feature Meaning
Goal-oriented Management seeks to achieve predetermined organisational objectives.
Pervasive Management is required in all types of organisations and at all levels.
Multidimensional It manages work, people and operations.
Continuous process Planning, organising, staffing, directing and controlling continue throughout the life of the
organisation.
Group activity It involves working with and through people.
Dynamic function Management changes according to changes in the business environment.
Intangible force Management cannot be seen directly; its presence is felt through results.
Board keyword: Management is goal-oriented, pervasive, multidimensional, continuous, group activity,
dynamic and intangible.
3. Objectives of Management
Type Main points
Organisational objectives Survival • Profit • Growth
Social objectives Provide quality goods/services at reasonable prices • Employment • Follow ethical practices •
Contribute to society
Personal objectives Satisfy employees' needs such as salary, recognition, promotion, learning and participation
Board Exam Revision • Short Notes Page 2
CLASS 12 • BUSINESS STUDIES
CHAPTER 1 — NATURE AND SIGNIFICANCE OF MANAGEMENT
BOARD EXAM REVISION NOTES QUICK • CLEAR • EXAM-READY
What this chapter covers
Management • Objectives • Importance • Management as Art/Science/Profession • Levels of Management •
Functions of Management • Coordination • Coordination as the essence of management.
REVISION TIP: Learn the definitions first, then the headings/keywords. In board answers, write the heading
+ 1–2 lines of explanation + example wherever possible.
Board Exam Revision • Short Notes Page 1
, CLASS 12 • BUSINESS STUDIES Chapter 1 • Revision Notes
1. Meaning of Management
Management is the process of getting things done with the aim of achieving organisational goals effectively and
efficiently.
Two key words
Effectiveness = Completing the right task / achieving the desired goal.
Efficiency = Completing the task with minimum cost and optimum use of resources.
Management aims at both effectiveness and efficiency. A business may achieve its target but still be inefficient if it
wastes too many resources.
2. Characteristics / Features of Management
Feature Meaning
Goal-oriented Management seeks to achieve predetermined organisational objectives.
Pervasive Management is required in all types of organisations and at all levels.
Multidimensional It manages work, people and operations.
Continuous process Planning, organising, staffing, directing and controlling continue throughout the life of the
organisation.
Group activity It involves working with and through people.
Dynamic function Management changes according to changes in the business environment.
Intangible force Management cannot be seen directly; its presence is felt through results.
Board keyword: Management is goal-oriented, pervasive, multidimensional, continuous, group activity,
dynamic and intangible.
3. Objectives of Management
Type Main points
Organisational objectives Survival • Profit • Growth
Social objectives Provide quality goods/services at reasonable prices • Employment • Follow ethical practices •
Contribute to society
Personal objectives Satisfy employees' needs such as salary, recognition, promotion, learning and participation
Board Exam Revision • Short Notes Page 2
