Nature and Significance of Management

Class 12 Business Studies · Business Studies Part I · Chapter 1

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CBSE Class 12 · Business Studies

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CBSE Class 12 · Business Studies

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Summary

Management is the process of getting things done with the aim of achieving organisational goals effectively and efficiently. Effectiveness means completing the task and reaching the goal, while efficiency means doing the task with the least cost of resources; good management balances both. Management is characterised as a goal-oriented, pervasive, multidimensional, continuous, group and dynamic activity that is also an intangible force seen through its results. It works at three levels — top management which sets objectives and strategy, middle management which interprets policies and links top and lower levels, and supervisory or operational management which oversees workers directly. The basic functions of management are planning, organising, staffing, directing and controlling, performed in a sequence yet interrelated. Management is studied as a science (a systematised body of knowledge with principles), an art (personalised skilful application of that knowledge) and a developing profession (it has a knowledge base, training and codes of conduct but lacks restricted entry). Coordination is the orchestration of group effort to provide unity of action; it is not a separate function but the essence of management, integrating the work of departments and individuals towards common goals. It is needed at every level and runs through all managerial functions.

Meaning and concept of managementEffectiveness and efficiencyCharacteristics of managementLevels and functions of managementManagement as science, art and professionCoordination — the essence of management

Key terms

Management
The process of getting things done effectively and efficiently with and through people to achieve organisational goals.
Effectiveness
Completing the right task and achieving the end goal within the given time.
Efficiency
Achieving the goal with the minimum use of resources, reducing cost.
Levels of management
Top, middle and supervisory (lower) levels, each with distinct roles and authority.
Coordination
The orchestration and integration of group effort to give unity of action; the essence of management.
Profession
An occupation with a knowledge base, formal training, ethical code and professional association.

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