- Books Name
- BUSINESS STUDIES-XII
- Publication
- ABCD CLASSES
- Course
- CBSE Class 12
- Subject
- Business Studies
Nature and Significance of Management
- Multidimensional:
- Management of work:Management translates the work in terms of goals to be achieved and assigns the means to achieve it.(by planning and organizing)
- Management of people: make people work towards achieving the organization’s goals, by making their strengths effective and weakness irrelevant. (by staffing, directing, controlling)
- Management of operations: provides a process that involves the flow of input material and transforming this input into the preferred output for consumption. (purchase, production, sales, finance, advertisement)
- Continuous process:
- The management process is a series of continuous but separate functions (planning, organizing, directing, staffing and controlling which are together performed by all managers all the time.
- Group activity:
- Inorganizationdifferent individuals have different needs.
- Higher salary, promotion, learning
- A common goal can be met through teamwork and coordination
- Dynamic function:
- Adapt itself to the changing environment which is consists of various social, economic and political factors.
- In order to be successful, an organization must change itself and its goals according to the needs of the environment.
- Goal-oriented process:
- The different organizations have different goals
- School to provide quality education, mobile company to increase the customer base
- efforts of different individuals in the organization towards achieving these goals
- Intangible force:
- It does not have a physical shape that can be seen and touched,
- Its presence can be felt when organization achieve goals, targets are met according to plans and employees are happy and satisfied.
- All pervasive:
- Management is common to all organizations whether economic, social or political.
- This difference is due to the differences in culture, tradition and history
Importance of Management
- Group goals:
- Management gives a common direction to the individual departments (like finance, production, purchase) for achieving the overall goal of the organization.
- It unites physical (material-machine-money) resources and human resources in one direction of profit –survival and growth.
- Useful in a dynamic organization:
- All organizations have to function in an environment that is constantly changing(SLEPT)
- Management helps people adapt to these changes to survive and grow and able to maintain its competitive edge
- Increases efficiency:
- Managers try to reduce costs and increase productivity through better planning, organizing, directing, staffing and controlling the activities of the organization.
- As a result per unit cost of production is reduced.
- Development of society:
- Helps to provide good quality products and services, creates employment opportunities, adopts new technology for the benefit of the people and leads the path towards growth and development.
- Enhance personal objectives:
- Through motivation and leadership, the management helps individuals to develop team spirit, cooperation and commitment to group success.
- A manager motivates and leads his team in such a manner that individual members can achieve personal goals while contributing to the overall organizational objective.