class XII Business Studies B.St. Notes Chapter 1

CHAPTER-1
Nature and Significance of management

Management helps in achieving organization’s goals and objectives with and by the human resources effectively and efficiently.

1.1 Functions of the Management:
* Planning – it is the process of outlining blueprint for achieving objectives and goals.
* Organizing – it answers the questions like WHO, WHEN, HOW, WHERE will be plan translated into action.
* Staffing- it is the process of giving right job to right person.
* Directing – it is the process of guiding employees.
* Controlling- it is the process of finding out deviations.

1.2 Objectives of the Management
* Organizational objectives- basic and main objectives of any organization are expansion, continuous profit, survival.
* Social objectives- generating employment, providing quality products at reasonable prices, using eco-friendly production techniques.
* Personal objectives- training & development of employees, recognition.

1.3 Importance of Management
* It helps in attaining organizational goals as wells as group goals.
* It makes organization environment vigorous.
* It helps in producing effective and efficient results.
* It focuses on development of personal and social objectives.

1.4 Levels of Management
Top Management: board of directors
* Frames objectives & goals w.r.t organization missions & values.
* Creation of plan, policies for achieving the organizational objectives.

Middle management: head of departments
* Implementation of plans & policies formulated by top level.
* Coordinating with other division for achieving objectives.

Operational management: supervisors
* Link between top management and employees
* Motivate employees

1.5 Nature of Management: as SCIENCE, ART & PROFESSION
AS A SCIENCE
* It has systematic framework of knowledge.
* Its principles have been made after lot of experiments.
* Principles of management are not universal they are modified according to the situation.
AS AN ART
* Management has theoretical framework.
* Manager uses scientific knowledge and body in a given situation according to his interpretation.
* Management requires creativity as every management situation is different where unique problem solving approach is necessary.
AS A PROFESSION
* Professional courses – management courses are taught in the universities and institutions across world.
* Providing services – another aim is to provide services to the society.
* Code of conduct – there is a code of conduct which every manager has to follow.

1.5 Coordination
It means balancing various activities of different divisions or departments and employees for achieving of organizational goals.
With coordination managers ensures unity of actions of employees and group efforts for achievement of common goals.
Importance of coordination
* Expansion – when organization take its business global the number of employees are also increased, so harmonizing the employee’s goals and organizational objectives with coordination is vital.
* Departments differentiation- in an organization there are many departments & each departments has its own goals & objectives so it’s important to align the organization goals with departments goals here we need coordination to avoid conflicts.
* Interdependence of different processes – with modern complexities organization needs specialists who are highly qualified hence they do not take or consider anyone help or suggestion which leads to conflict so the need of coordination is important in modern organization now days.