Short Notes: Nature and Significance of Management | Business Studies (BST) Class 12 - Commerce PDF Download

• Definition of Management: Process of creating an environment for group work to achieve goals efficiently.
• Applies to all organisations (big/small, profit/non-profit).
• Science & Art: Structured knowledge (science) and practical application (art).
• Dynamic: Adapts to changing situations and times.

Characteristics of Management

• Goal-Oriented: Aims to achieve specific objectives using resources.
• All-Pervasive: Used in all organisations, regardless of type or size.
• Multidimensional: Includes management of work, people, and operations.
• Continuous: Ongoing process of interrelated functions.
• Group Activity: Involves teamwork toward common goals.
• Dynamic: Adapts to changing environments (e.g., McDonald’s menu changes in India).
• Intangible: Felt through organisational functioning, not seen.

Efficiency vs. Effectiveness

• Efficiency: Doing tasks correctly with minimal resources/cost (focus on process).
• Effectiveness: Achieving desired results on time (focus on outcome).
• Good management balances both for success.

Objectives of Management

• Organisational:
  1. Survival: Earn enough to cover costs.
  2. Profit: Ensure long-term success.
  3. Growth: Expand and stay competitive.
• Social: Benefit society (e.g., eco-friendly practices, jobs for the underprivileged).
• Personal: Align individual goals with organisational objectives.

Importance of Management

• Achieves group goals through teamwork and coordination.
• Increases efficiency by optimising resource use.
• Adapts organisation to changes for survival/growth.
• Helps individuals achieve personal goals.
• Contributes to society via quality products, jobs, and technology.

Management as an Art

• Features:
  1. Theoretical knowledge exists (e.g., marketing, HR principles).
  2. Personalised application varies by manager.
  3. Requires practice and creativity.
• Managers use knowledge, observation, and experience to apply principles creatively.

Management as a Science

• Features:
  1. Systematised body of knowledge.
  2. Principles from experiments/observations.
  3. Universal validity (broadly applicable).
• Inexact science; principles adjusted per situation.

Management as a Profession

• Features:
  1. Well-defined knowledge (e.g., IIM education).
  2. Restricted entry (exams for institutes).
  3. Professional associations (e.g., AIMA, no legal power).
  4. Ethical code of conduct (not mandatory).
  5. Service motive (client-focused).
• Not fully professional due to lack of mandatory restrictions.

Levels of Management

• Top Level: CEO, COO; sets goals, policies, analyses environment.
• Middle Level: Department heads; executes plans, coordinates, motivates staff.
• Lower/Supervisory Level: Foremen; ensures policy implementation, maintains discipline.

Functions of Management

• Planning: Deciding goals and methods in advance.
• Organising: Assigning duties, grouping tasks, allocating resources.
• Staffing: Hiring right people for jobs.
• Directing: Leading, motivating employees.
• Controlling: Measuring performance, ensuring plan adherence.

Coordination (Essence of Management)

• Definition: Synchronises management functions and departments to avoid duplication, delays.
• Characteristics:
  1. Integrates group efforts for unified goals.
  2. Ensures unity of action across departments.
  3. Continuous and all-pervasive process.
  4. Responsibility of all managers.
  5. Deliberate function requiring conscious effort.
• Importance:
  1. Manages growth in organisational size.
  2. Links functional differentiation.
  3. Coordinates specialised roles.