CBSE Class 12 - Business Studies - NATURE AND SIGNIFICANCE OF MANAGEMENT (Important Points) (#cbseNotes)

NATURE AND SIGNIFICANCE OF MANAGEMENT (Important Points)

1. Management is the art of getting things done through others in formally organised
groups for the accomplishment of organisational objectives.

2. For management it is important to be both effective and efficient. Effectiveness is
qualitative whereas efficiency is quantitative.

3. Characteristics of management include:
(a) It is a goal-oriented process
(b) it is all pervasive
(c) it is multidimensional as it includes management of work, people and operations
(d) it is a continuous process
(e) group activity
(f) dynamic function
(g) intangible force.

4. Importance of management:
(a) helps in achieving group goals
(b) increases efficiency
(c) creates a dynamic organisation
(d) helps in achieving personal objectives
(e) helps in the development of society.



5. Nature of management:
As an ART:
(a) Existence of theoretical knowledge
(b) Personalised application
(c) Based on practice and creativity;
As SCIENCE:
(a) Systematised body of knowledge
(b) Principles based on experimentation
(c) Universal validity.
However Management is not as exact as science as it deals with human behaviour, which is unpredictable.
As a PROFESSION:
(a) Well defined body of knowledge
(b) Restricted entry
(c) Professional association
(d) ethical code of conduct
(e) Service motive.
Management is not a full-fledged profession as it does not have any restricted entry
requirements and as such does not have defined ethical code of conduct by law.

6. There are three levels of management -
TOP LEVEL which lays down the objectives and goals;
MIDDLE LEVEL which is concerned with implementing and controlling the plans;
OPERATIONAL LEVEL which actually implements the plans and policies.

7. There are five functions of management -
PLANNING- which means thinking in advance what to do in the future;

ORGANISING which means designing authority - responsibility relationships and obtaining money and material resources;

STAFFING which means manpower planning, recruitment, selection, induction, training and development of
human resources;

DIRECTING which means supervising, leadership, motivation and communication with the human resources and

CONTROLLING which means rectifying any deviation in the implementation of the Plans.

8. COORDINATION is that force which binds all the functions of management by synchronising the activities. It is the essence of management because of its nature; -
(a) it integrates the group efforts
(b) ensures unity of action
(c) it is a continuous process
(d) it is an all- pervasive function
(e) it is the responsibility of all the managers
(f) it is a deliberate function.

9. In the twenty first century management has to be seen as a process of managing a large global organisation, which has no boundaries with international perspective.


10. Management is an art of getting things done with and through others.