NATURE &

SIGNIFICANCE OF
MANAGEMENT
BUSINESS STUDIES
CLASS XII
Is an art of getting things done through others
Features / Charactertics of management

 Goal oriented process

 Continuous process
 Group activity
 Intangible
 Dynamic
 Pervasive
 Multi dimensional
- Management of work
- Management of people
- Management of operations
 Management is a goal oriented process: the
aims of whole management is to achieve the
organisational goal .
 Plans are made to achieve that goal effectively
and efficiently
 Management is a continuous process: it is a
continuous process or never ending process
. All the functions of management are
performed continuously , once the
objective is complete the they plan to
achieve another goal .
 Management is a group activity : it refers
to a group of people . Group effort is
required to achieve the goal . It replace
“I” with We“
 All the functions of management cannot
be performed by an individual
 Management is intangible: Management
cannot be seen but its presence can be
felt .
 It is more easy to feel the presence of miss
management as it leads to chaos and
confusion
 Management is dynamic function:
management has to make changes in
their exterior environment as per external
environment . Such as social ,
economical , legal , political &
technological environment has great
impact on our business .
 Management is pervasive: Management
is a universal phenomenon , management
is essential for all types of organization . A
big or small , profit or non profit making ,
manufacturing and service , school or
hospital or house everywhere it is required
 Management is multi dimensional

A) Management of work: management must

focus on their work only . Work depends upon
the nature of business . Work of a school is to
provide education and a hospital is to treat
patient , so school management must focus
on quality education not to treat patient

Planning
Organising
Controlling
B) Management of people : people refers
to human resources they are the most
important assets of an organization .
Management must take care of individual
employee needs and group need also .
The goal of an organisation can be
achieved only with the support of human
resource .

Staffing
Directing
C) Management of operations: It refers to
all activities of operating cycle . It mixes
management of work with management
of people , it includes buying of inputs ,
converting them into semi finished goods ,
finished goods , maintain inventory etc .

Production
Sales
Purchases
Objectives of management

ORGANISATIONAL PERSONAL
OBJECTIVE OBJECTIVE

SOCIAL
OBJECTIVE
Objective are the end result of an activity :
Organizational Objective : These objective related to growth and development of
organization , all the manager try to reduce the cost bring maximum profit in the
organization.

a) Survival : It is the basic objective of every organization that they want to stay in
this competitive market for a long period of time satisfying consumers .
b) Profits : Only survival is not sufficient , organization also wants profits to run business
smoothly generation profits helps businessmen to take risk . Profits are also
essential for survival , growth and expansion.
c) Growth : It means expand their business activities the success of a business is also
determined by growth and development of business
 Social objective : These objectives are related to the development of human being
and society as apart pf society a businessman must do the following .
a) Supply of quality products at reasonable price.
b) Generation of employment opportunities for weaker section of society
c) Using environmental friendly methods of production
d) Participating in social activity
e) Ethical code of conduct
Personal Objective : As we all know that employee are the most important assets
of an organization so taking care of employee is an objective
a) Competitive salary to fulfill financial needs of the employee .
b) Respect and recognition
c) Healthy working condition
d) Growth and development of workers
 Importance of management

Achieving
Achieving Creates a Increase
personal goal Development
organization dynamic coordination
and group of society
goal organsation
goal

 Succesfull organisation donot achieve their goals by chance but by following a deliberate
process called management .
 A businessman reaches to the top because of its quality of management .
1. Achieving organization goal : The main aim of management is to achieve the
organizational goal , with the help of its function management tries to achieves its
goal and efficiency and effectively .Helps in achieving group goals by providing a
common direction to individual efforts.
2. Helps in achieving personal and group goals : Manager integrate individual efforts
into group efforts with the help of personal objective management , each individual
gets competitive salary , respect and career advancement opportunity .
3. Management creates a dynamic organization : Manager helps people in the
organisation to adapt to the various changes occuring in the environment by
providing training and mentorship . This helps the organisation in maintaining its
competitive edge.
4. Increases coordination : Management ensures that different department and
groups work in coordination therefore , there is unity of action among employee
groups and departments .
5. Management helps in development of society : Through its social objectives
management develops the society by providing good quality goods and services,
generates employment opportunities and adopts new technologies for the
betterment of the people.
Nature of management

Management Management Management

as science as art as profession
 Management as science
 Science is a systematic body of knowledge that helps in explaining general truths
or the operation of general laws. Following are some features of Science:
1. Systematic body of knowledge : Management like Science has its own theories
and principles. These theories and principles are based on cause and effect.
2. Principles based on experimentation : Management principles have been
developed on the basis of scientific observation and experiments in different types
of organisations. Since management deals with the human element of the
organisation, the results of these experiments cannot be accurately predicted. This
is the reason why management is considered as an inexact science.
3. Universal validity : The principles of management are not exact as the principles
of pure science and their application and use is not universal. These principles have
to be modified according to a given situation. However, they provide the
managers with certain standardised techniques that can be used in different
situations.
 Management as an art
 Art refers to the application of skillful and personal application of knowledge in
order to achieve desired outcomes. It is concerned with creativity and
innovativeness. Following are the features of an Art:
1. Systematic body of knowledge : A successful manager practices the art of
management based on his study, observation and experience. He may acquire
knowledge through written work available in various fields of management like
finance, human resource and marketing
2. Personalised application : There are several theories of management that have
been evolved by many management thinkers which are the basis of certain universal
principles. A manager applies knowledge and scientific methods to a particular
situation in his own distinct manner. A good manager works through a balanced
combination of practice, creativity, imagination, initiative and innovation.
3. Based on practice and creativity : Different managers have different styles of
getting things done through others. A manager applies his knowledge in a skillful and
personalised manner depending upon the situation faced by him. Hence it can be
concluded that management is an art as it satisfies the characteristics of an art.
 Management as profession
 Profession can be defined as an occupation backed by specialised knowledge
and training. Following are certain characteristics of a profession:
1. Well-defined body of knowledge :Management like profession has a systematic
body of knowledge having well-defined principles which are based on a variety of
business situations.
2. Restricted entry : Without a professional degree no one can enter into profession .
But in management anyone can be a manager irrespective of his academic
qualifications. There is no restriction on anyone being designated as a manager.
Hence management does not strictly meet this criterion of being a profession
3. Representative body or Professional Association :There are various associations of
practising managers in the country like AIMA (All India Management Association). It
lays down a code of conduct for its members. However, it is not mandatory for
managers to become members of such associations.
4. Service motive :Every professional motive is to serve the clients which is there
primary motive but in case of management primary objective is to earn profit .
Levels of management
Functions of top level of management
 Deciding overall organisational goals.
 Making policies and strategies
 Coordinating the activities of different departments from a level above.
 Welfare and survival of the organisation.
 Top management is ultimately responsible for all the actitivities of the
organisation
Functions of middle level of management
 Interpreting and transferring plan and policies framed by the top
management to lower level management
 Ensuring optimum number of personnel in the department by recruitments
of employees
 Assigning duties and responsibilities to the subordinates in the department.
 Motivating employees to perform their best ability
 Coordinating with other departmental heads at the same level.
Functions of lower level of management
 Giving instructions & feedback to the workforce.
 Maintaining good and healthy working condition for workers
 Providing on-the-job training to the workers.
 Acting as a link between workers and management.
 Representing the problems or grievances of workers before the middle level
of management
 BASIS EFFECTIVENESS EFFICIENCY

Meaning It refers to completion of It refers to completion of task

task on time on minimum cost

Orientation Time oriented Cost oriented

Objective Achieve end result Reducing the cost

Main Doing the right task Doing the right task in right
consideration way
 Coordination
 Coordination is the process by which a
manager integrates the activities of different
departments and individuals working in
these departments towards the
achievement of a common goal.
 It is the force that binds all the functions of
management. It is considered as the
essence of management.
Coordination is the essence of management
 It is needed to perform all the function of
management
 It is required at all levels
 Coordination is the most important function
of an organisation
 Characterstics of Coordination
 Coordination integrates group efforts : These various individual working at different level of
organization , coming from different background having different sense of understanding
with their individual goal coordination helps to integrate the group effort to achievement of
organizational goal .
 Coordination ensures unity of action : as the conflicts between various departments and
individuals are minimized .
 Coordination is a continuous process : Every individual in the organization must follow the
coordination process continuously then only an organization can successfully run
 Coordination is an all pervasive function : Similar to management coordination is a universal
phenomenon it is required at every level and every function of management coordination is
required in profit as well as non profit organisation
 Coordination is the responsibility of all managers : The top level managers coordinate with all
middle level managers. The middle level managers coordinate simultaneously with top as
well as lower level managers. The lower level managers coordinate with middle level
managers and the workers.
 Coordination is a deliberate function : It is pre-planned and does not happen on its own.
Importance of coordination
 Growth in size : When an organisation expands or grows in size, the number of
people and departments working in the organisation rises. This requires more
coordination.
 Functional differentiation : An organisation has several departments or divisions.
All these divisions or departments work differently. So there is a great possibility
that conflicts may arise between these departments. Coordination helps in
focusing the efforts and activities of various departments on attainment of
common organisational goals.
 Specialisation : Due to their expertise, the specialists do not like taking advice or
suggestions from others especially in matters relating to their field. Therefore, an
organisation needs coordination for the purpose of reconciling the different
approaches and interests of the specialists
Most important question (Board Exam )

1. Objectives of management (Case studies)

2. Importance of management (Case studies)
3. Functions of level of management