Important Questions : Nature & Significance of Management - Class 12 PDF Download

 Page 1


 
CHAPTER – I 
NA TURE AND SIGNIFICANCE OF MANAGEMENT 
 
Linking of Class XI syllabus:   
1. In sole proprietorship business, the owner him-self manages his business. 
2. In Partnership business all partners or any one partner on behalf of other 
partners can manage the business. 
3. In HUF ‘Karta’ manages the business. 
4. But in a Joint Stock Company, it is managed by professionally qualified 
managers.  So in this context, the need for management arises.   
 
 
CONCEPT MAPPING 
 
 
Concept: Management is the process of planning, organising, staffing, directing 
and controlling the resources efficiently and effectively for achieving the 
organisational goals. 
 
 
Characteristics:     (a) goal oriented process, (b) pervasive, (c) multidimensional (d) 
group activity, (e) continuous process, (vi) dynamic function, 
(vii) intangible force 
 
 
Objectives :   (a) organisational (b) social, and (c) personal objectives 
 
 
Importance: (a) achieves group goals (b) increases efficiency (c) creates dynamic 
organization (d) helps achieve personal goals (e) development of society 
 
 
Management as Art: Theoretical knowledge, personal application, based on practice, 
creativity 
 
 
Management as a Science : (a) Systematic body of knowledge (b) principles 
based on application, (c) universal validity 
 
 
Management as a Profession: (a) well defined body of knowledge (b). 
restricted entry (c)  professional association 
(d) ethical code of conduct Management fulfills 
some but not all of these requirements 
 
 
Levels of management:    (a) Top Level management (b) Middle Level management 
(c) Supervisory or operational or lower level management 
 
 
Page 2


 
CHAPTER – I 
NA TURE AND SIGNIFICANCE OF MANAGEMENT 
 
Linking of Class XI syllabus:   
1. In sole proprietorship business, the owner him-self manages his business. 
2. In Partnership business all partners or any one partner on behalf of other 
partners can manage the business. 
3. In HUF ‘Karta’ manages the business. 
4. But in a Joint Stock Company, it is managed by professionally qualified 
managers.  So in this context, the need for management arises.   
 
 
CONCEPT MAPPING 
 
 
Concept: Management is the process of planning, organising, staffing, directing 
and controlling the resources efficiently and effectively for achieving the 
organisational goals. 
 
 
Characteristics:     (a) goal oriented process, (b) pervasive, (c) multidimensional (d) 
group activity, (e) continuous process, (vi) dynamic function, 
(vii) intangible force 
 
 
Objectives :   (a) organisational (b) social, and (c) personal objectives 
 
 
Importance: (a) achieves group goals (b) increases efficiency (c) creates dynamic 
organization (d) helps achieve personal goals (e) development of society 
 
 
Management as Art: Theoretical knowledge, personal application, based on practice, 
creativity 
 
 
Management as a Science : (a) Systematic body of knowledge (b) principles 
based on application, (c) universal validity 
 
 
Management as a Profession: (a) well defined body of knowledge (b). 
restricted entry (c)  professional association 
(d) ethical code of conduct Management fulfills 
some but not all of these requirements 
 
 
Levels of management:    (a) Top Level management (b) Middle Level management 
(c) Supervisory or operational or lower level management 
 
 
 
Functions of Management:  Planning, organising, staffing, directing and controlling 
 
 
Coordination : The process of achieving unity of action among interdependent 
activities and departments of an organisation. It is the essence of 
management as it is required in all managerial functions. 
 
KEY CONCEPTS IN NUTSHELL 
 
1. MEANING/CONCEPT OF MANAGEMENT: 
 
Management is the process of getting things done with the aim of achieving goals 
effectively and efficiently. 
 
• Process: refers to the primary function like planning, organising, staffing, 
directing and controlling performed by the management to get things done. 
 
• Effectiveness: means completing the right task to achieve the deputed goal 
within the time frame. 
 
• Efficiency: means completion of task using minimum resources 
 
 
2. DEFINITION OF MANAGEMENT: 
 
“Management is the process of working with and through others to effectively 
achieve the organisational objectives by efficiently using limited resources in the 
changing environment.” 
 
Kreitner 
 
3. Functions of management: 
 
 
 
 
1.  Planning - Setting objectives and targets and formulating an action plan of what is to 
be done, how to be done and when to do it 
 
2. Organising - Assignment of duties, task, establishment of authority and 
responsibility relationships, allocating the resources required to perform the planned 
task. 
3. Staffing - Finding and placing the right person at the right job at the right time. 
 
4. Directing - Leading, influencing, motivating the staff chosen to perform the assigned 
Page 3


 
CHAPTER – I 
NA TURE AND SIGNIFICANCE OF MANAGEMENT 
 
Linking of Class XI syllabus:   
1. In sole proprietorship business, the owner him-self manages his business. 
2. In Partnership business all partners or any one partner on behalf of other 
partners can manage the business. 
3. In HUF ‘Karta’ manages the business. 
4. But in a Joint Stock Company, it is managed by professionally qualified 
managers.  So in this context, the need for management arises.   
 
 
CONCEPT MAPPING 
 
 
Concept: Management is the process of planning, organising, staffing, directing 
and controlling the resources efficiently and effectively for achieving the 
organisational goals. 
 
 
Characteristics:     (a) goal oriented process, (b) pervasive, (c) multidimensional (d) 
group activity, (e) continuous process, (vi) dynamic function, 
(vii) intangible force 
 
 
Objectives :   (a) organisational (b) social, and (c) personal objectives 
 
 
Importance: (a) achieves group goals (b) increases efficiency (c) creates dynamic 
organization (d) helps achieve personal goals (e) development of society 
 
 
Management as Art: Theoretical knowledge, personal application, based on practice, 
creativity 
 
 
Management as a Science : (a) Systematic body of knowledge (b) principles 
based on application, (c) universal validity 
 
 
Management as a Profession: (a) well defined body of knowledge (b). 
restricted entry (c)  professional association 
(d) ethical code of conduct Management fulfills 
some but not all of these requirements 
 
 
Levels of management:    (a) Top Level management (b) Middle Level management 
(c) Supervisory or operational or lower level management 
 
 
 
Functions of Management:  Planning, organising, staffing, directing and controlling 
 
 
Coordination : The process of achieving unity of action among interdependent 
activities and departments of an organisation. It is the essence of 
management as it is required in all managerial functions. 
 
KEY CONCEPTS IN NUTSHELL 
 
1. MEANING/CONCEPT OF MANAGEMENT: 
 
Management is the process of getting things done with the aim of achieving goals 
effectively and efficiently. 
 
• Process: refers to the primary function like planning, organising, staffing, 
directing and controlling performed by the management to get things done. 
 
• Effectiveness: means completing the right task to achieve the deputed goal 
within the time frame. 
 
• Efficiency: means completion of task using minimum resources 
 
 
2. DEFINITION OF MANAGEMENT: 
 
“Management is the process of working with and through others to effectively 
achieve the organisational objectives by efficiently using limited resources in the 
changing environment.” 
 
Kreitner 
 
3. Functions of management: 
 
 
 
 
1.  Planning - Setting objectives and targets and formulating an action plan of what is to 
be done, how to be done and when to do it 
 
2. Organising - Assignment of duties, task, establishment of authority and 
responsibility relationships, allocating the resources required to perform the planned 
task. 
3. Staffing - Finding and placing the right person at the right job at the right time. 
 
4. Directing - Leading, influencing, motivating the staff chosen to perform the assigned 
 
task efficiently and effectively. 
 
5. Controlling - Ensuring/Monitoring the activities in an organisation are performed 
as per the plan. 
 
 
4. Nature of Management: As an art, As a science and As a profession. 
 
5. MANAGEMENT OBJECTIVES- Organisational Objectives: 
Survival:- Ensure that the organisation survives and exists in the future. Profitability:- 
Earning adequate profit in order to survive and grow Growth:- Growth indicates how 
well it exploits the potential opportunities. 
Social Objectives: 
 
• Producing quality products at reasonable rates, 
 
• generating employment opportunities, 
 
• Community progress and development by providing schools and crèches to 
employees In fact most of the firms have taken upon themselves the concept 
of social responsibility as one of the basic element of business objectives . 
 
• Environmental friendly method of production. 
 
Personal Objectives: 
 
• Meeting the Financial needs like competitive salaries and perks 
 
• Social and safety needs of the employee 
like peer recognition, self respect and 
respect for colleagues 
• Higher level needs like implementation and 
monitoring of policies for personal growth 
and survival 
• Reconcile personal goals with organisational objectives for harmony in the 
organisation. 
 
 
6. IMPORTANCE OF MANAGEMENT 
 
• Aids in achievement of individual and organisational goals 
• Increases efficiency 
 
• Enhances optimum utilisation of resources 
 
• Creates a dynamic organisation 
 
• Promotes development of society 
 
 
Page 4


 
CHAPTER – I 
NA TURE AND SIGNIFICANCE OF MANAGEMENT 
 
Linking of Class XI syllabus:   
1. In sole proprietorship business, the owner him-self manages his business. 
2. In Partnership business all partners or any one partner on behalf of other 
partners can manage the business. 
3. In HUF ‘Karta’ manages the business. 
4. But in a Joint Stock Company, it is managed by professionally qualified 
managers.  So in this context, the need for management arises.   
 
 
CONCEPT MAPPING 
 
 
Concept: Management is the process of planning, organising, staffing, directing 
and controlling the resources efficiently and effectively for achieving the 
organisational goals. 
 
 
Characteristics:     (a) goal oriented process, (b) pervasive, (c) multidimensional (d) 
group activity, (e) continuous process, (vi) dynamic function, 
(vii) intangible force 
 
 
Objectives :   (a) organisational (b) social, and (c) personal objectives 
 
 
Importance: (a) achieves group goals (b) increases efficiency (c) creates dynamic 
organization (d) helps achieve personal goals (e) development of society 
 
 
Management as Art: Theoretical knowledge, personal application, based on practice, 
creativity 
 
 
Management as a Science : (a) Systematic body of knowledge (b) principles 
based on application, (c) universal validity 
 
 
Management as a Profession: (a) well defined body of knowledge (b). 
restricted entry (c)  professional association 
(d) ethical code of conduct Management fulfills 
some but not all of these requirements 
 
 
Levels of management:    (a) Top Level management (b) Middle Level management 
(c) Supervisory or operational or lower level management 
 
 
 
Functions of Management:  Planning, organising, staffing, directing and controlling 
 
 
Coordination : The process of achieving unity of action among interdependent 
activities and departments of an organisation. It is the essence of 
management as it is required in all managerial functions. 
 
KEY CONCEPTS IN NUTSHELL 
 
1. MEANING/CONCEPT OF MANAGEMENT: 
 
Management is the process of getting things done with the aim of achieving goals 
effectively and efficiently. 
 
• Process: refers to the primary function like planning, organising, staffing, 
directing and controlling performed by the management to get things done. 
 
• Effectiveness: means completing the right task to achieve the deputed goal 
within the time frame. 
 
• Efficiency: means completion of task using minimum resources 
 
 
2. DEFINITION OF MANAGEMENT: 
 
“Management is the process of working with and through others to effectively 
achieve the organisational objectives by efficiently using limited resources in the 
changing environment.” 
 
Kreitner 
 
3. Functions of management: 
 
 
 
 
1.  Planning - Setting objectives and targets and formulating an action plan of what is to 
be done, how to be done and when to do it 
 
2. Organising - Assignment of duties, task, establishment of authority and 
responsibility relationships, allocating the resources required to perform the planned 
task. 
3. Staffing - Finding and placing the right person at the right job at the right time. 
 
4. Directing - Leading, influencing, motivating the staff chosen to perform the assigned 
 
task efficiently and effectively. 
 
5. Controlling - Ensuring/Monitoring the activities in an organisation are performed 
as per the plan. 
 
 
4. Nature of Management: As an art, As a science and As a profession. 
 
5. MANAGEMENT OBJECTIVES- Organisational Objectives: 
Survival:- Ensure that the organisation survives and exists in the future. Profitability:- 
Earning adequate profit in order to survive and grow Growth:- Growth indicates how 
well it exploits the potential opportunities. 
Social Objectives: 
 
• Producing quality products at reasonable rates, 
 
• generating employment opportunities, 
 
• Community progress and development by providing schools and crèches to 
employees In fact most of the firms have taken upon themselves the concept 
of social responsibility as one of the basic element of business objectives . 
 
• Environmental friendly method of production. 
 
Personal Objectives: 
 
• Meeting the Financial needs like competitive salaries and perks 
 
• Social and safety needs of the employee 
like peer recognition, self respect and 
respect for colleagues 
• Higher level needs like implementation and 
monitoring of policies for personal growth 
and survival 
• Reconcile personal goals with organisational objectives for harmony in the 
organisation. 
 
 
6. IMPORTANCE OF MANAGEMENT 
 
• Aids in achievement of individual and organisational goals 
• Increases efficiency 
 
• Enhances optimum utilisation of resources 
 
• Creates a dynamic organisation 
 
• Promotes development of society 
 
 
 
7. LEVELS OF MANAGEMENT 
 
 
 
 
 
Top level: - Designations and Functions 
 
• Comprises of CEO, Board of Directors, MD, GM, VP 
 
• Conceptualising of organisational goal, policy and strategy formulation 
 
• Organising , Controlling and Monitoring activities and resources 
 
• Controlling the work performance 
 
• Approving Budgets 
 
Middle Level:- - Designations and Functions 
 
 
• Comprises of Departmental, Sub-Departmental and Divisional heads. 
 
• Execution of plans, policies framed by the top level management 
 
• Preparing organisational set up & appointing employees 
 
• Issuing instructions and motivating employees 
 
• Ensuring interdepartmental cooperation 
Lower Level:- - Designations and Functions 
 
 
• Forwarding suggestions and feedback to the top level 
 
• Comprise of Supervisors, Foremen and inspectors 
 
• Maintain Morale, safety and discipline amongst the work force 
 
• Oversee the work of the workers 
 
• Assist the management in selection, training, placement & promotion of 
workers 
 
8. NATURE OF MANAGEMENT As an art: 
• Existence of theoretical knowledge. 
 
• Developed through Practical and creative process. 
Page 5


 
CHAPTER – I 
NA TURE AND SIGNIFICANCE OF MANAGEMENT 
 
Linking of Class XI syllabus:   
1. In sole proprietorship business, the owner him-self manages his business. 
2. In Partnership business all partners or any one partner on behalf of other 
partners can manage the business. 
3. In HUF ‘Karta’ manages the business. 
4. But in a Joint Stock Company, it is managed by professionally qualified 
managers.  So in this context, the need for management arises.   
 
 
CONCEPT MAPPING 
 
 
Concept: Management is the process of planning, organising, staffing, directing 
and controlling the resources efficiently and effectively for achieving the 
organisational goals. 
 
 
Characteristics:     (a) goal oriented process, (b) pervasive, (c) multidimensional (d) 
group activity, (e) continuous process, (vi) dynamic function, 
(vii) intangible force 
 
 
Objectives :   (a) organisational (b) social, and (c) personal objectives 
 
 
Importance: (a) achieves group goals (b) increases efficiency (c) creates dynamic 
organization (d) helps achieve personal goals (e) development of society 
 
 
Management as Art: Theoretical knowledge, personal application, based on practice, 
creativity 
 
 
Management as a Science : (a) Systematic body of knowledge (b) principles 
based on application, (c) universal validity 
 
 
Management as a Profession: (a) well defined body of knowledge (b). 
restricted entry (c)  professional association 
(d) ethical code of conduct Management fulfills 
some but not all of these requirements 
 
 
Levels of management:    (a) Top Level management (b) Middle Level management 
(c) Supervisory or operational or lower level management 
 
 
 
Functions of Management:  Planning, organising, staffing, directing and controlling 
 
 
Coordination : The process of achieving unity of action among interdependent 
activities and departments of an organisation. It is the essence of 
management as it is required in all managerial functions. 
 
KEY CONCEPTS IN NUTSHELL 
 
1. MEANING/CONCEPT OF MANAGEMENT: 
 
Management is the process of getting things done with the aim of achieving goals 
effectively and efficiently. 
 
• Process: refers to the primary function like planning, organising, staffing, 
directing and controlling performed by the management to get things done. 
 
• Effectiveness: means completing the right task to achieve the deputed goal 
within the time frame. 
 
• Efficiency: means completion of task using minimum resources 
 
 
2. DEFINITION OF MANAGEMENT: 
 
“Management is the process of working with and through others to effectively 
achieve the organisational objectives by efficiently using limited resources in the 
changing environment.” 
 
Kreitner 
 
3. Functions of management: 
 
 
 
 
1.  Planning - Setting objectives and targets and formulating an action plan of what is to 
be done, how to be done and when to do it 
 
2. Organising - Assignment of duties, task, establishment of authority and 
responsibility relationships, allocating the resources required to perform the planned 
task. 
3. Staffing - Finding and placing the right person at the right job at the right time. 
 
4. Directing - Leading, influencing, motivating the staff chosen to perform the assigned 
 
task efficiently and effectively. 
 
5. Controlling - Ensuring/Monitoring the activities in an organisation are performed 
as per the plan. 
 
 
4. Nature of Management: As an art, As a science and As a profession. 
 
5. MANAGEMENT OBJECTIVES- Organisational Objectives: 
Survival:- Ensure that the organisation survives and exists in the future. Profitability:- 
Earning adequate profit in order to survive and grow Growth:- Growth indicates how 
well it exploits the potential opportunities. 
Social Objectives: 
 
• Producing quality products at reasonable rates, 
 
• generating employment opportunities, 
 
• Community progress and development by providing schools and crèches to 
employees In fact most of the firms have taken upon themselves the concept 
of social responsibility as one of the basic element of business objectives . 
 
• Environmental friendly method of production. 
 
Personal Objectives: 
 
• Meeting the Financial needs like competitive salaries and perks 
 
• Social and safety needs of the employee 
like peer recognition, self respect and 
respect for colleagues 
• Higher level needs like implementation and 
monitoring of policies for personal growth 
and survival 
• Reconcile personal goals with organisational objectives for harmony in the 
organisation. 
 
 
6. IMPORTANCE OF MANAGEMENT 
 
• Aids in achievement of individual and organisational goals 
• Increases efficiency 
 
• Enhances optimum utilisation of resources 
 
• Creates a dynamic organisation 
 
• Promotes development of society 
 
 
 
7. LEVELS OF MANAGEMENT 
 
 
 
 
 
Top level: - Designations and Functions 
 
• Comprises of CEO, Board of Directors, MD, GM, VP 
 
• Conceptualising of organisational goal, policy and strategy formulation 
 
• Organising , Controlling and Monitoring activities and resources 
 
• Controlling the work performance 
 
• Approving Budgets 
 
Middle Level:- - Designations and Functions 
 
 
• Comprises of Departmental, Sub-Departmental and Divisional heads. 
 
• Execution of plans, policies framed by the top level management 
 
• Preparing organisational set up & appointing employees 
 
• Issuing instructions and motivating employees 
 
• Ensuring interdepartmental cooperation 
Lower Level:- - Designations and Functions 
 
 
• Forwarding suggestions and feedback to the top level 
 
• Comprise of Supervisors, Foremen and inspectors 
 
• Maintain Morale, safety and discipline amongst the work force 
 
• Oversee the work of the workers 
 
• Assist the management in selection, training, placement & promotion of 
workers 
 
8. NATURE OF MANAGEMENT As an art: 
• Existence of theoretical knowledge. 
 
• Developed through Practical and creative process. 
 
 
• Personalised application and skill 
 
As a Profession: 
 
• Well defined body of knowledge. 
 
• Existence of code of conduct 
 
• Professional association (AIMA) 
 
• Restricted entry 
 
• Fees as remuneration for their services 
 
As a Science: 
 
• Arranged, organised systematic body of knowledge 
 
• Universal validity 
 
• Principles arrived at after experimentation 
 
9. COORDINATION Meaning. 
 
It is the synchronisation of various activities and efforts in an 
organisation providing the required amount of quality, timing and 
sequence; thus ensuring the achievement of the planned goal with 
minimum content. 
 
 
 
10. FEATURES OF COORDINATION: 
 
• Integrates Group Effort: It is an orderly arrangement of group effort 
and not individual effort 
 
• Ensures unity of action: It is a binding force between departments and 
ensures that all efforts are focussed towards achieving the organisational 
goal 
 
• It is a Continuous Process never ending process as its needs are felt at 
all levels and steps in the organisations. It begins at the planning stage 
and continues till controlling 
 
• It remains the function and responsibility of every manager: the 
top level coordinates the overall plan, middle level coordinates the 
efforts of the different sections and subsections and lower level 
management coordinates the activities of the workers 
 
• A Deliberate function: It does not occur spontaneously nor is it achieved 
by force it is a deliberate action taken. 
 
• All pervasive function it is needed in all departments and at all levels. 
Lack of coordination can lead to overlapping of activities. 
11. NEED FOR COORDINATION: