Class 12 Business Studies Lesson 1

Concept of Management:

Management is the activity of directing leading to achieve the predetermined goals. In other sense, the word management is combination of three word that is manage-men-t (tactfully) which means to manage human resources tactfully for mobilization of other physical resources to meet goal.

According to Robbins “management is the process of getting things done by other things with the aim of achieving goal effectively and efficiently.”

In conclusion, management is the process of PODSLC. PODSLC means planning, organizing, staffing, directing, leading and controlling respectively. It is an art of getting things done through people for the achievement of goals. Principle of management have been universally applied. It is essential for organizational effectiveness. Good management achieved the organizational objectives with the best use of all kind of resources.

Level of management:

The level of management are as follows:

Shareholder

Top Level Management      Middle Level Management Lower       Level Management

Board of Directors       Department Manager Supervision

Chief Executive Officer       Division Head Foreman

General Manager       Section Head Clerk

Managing Director       Head of Departments

Branch Manager

1. Top level of management: Top level management consists of board for director (BOD). Chief executive officer (CEO), general manager and managing director. Top level management is the supreme body of an organization they are responsible in formulating long term plans, policies, mission, vision, goals, etc. of an organisation.

Important function of top level management are as follows:

i) To determine the goals of an organization.

ii) To make plan and policies to attain a goal.

iii) To set up an organization structure to conduct the operation is for plan.

iv) To provide overall direction in the organization.

v) Investing in research and development.

2. Middle level of management: Middle level of management consists of head of department, branch manager, division head, section head etc. Middle level management are primarily responsible to implement the policies and plan developed by the top level management. Middle level management are essential to bridge the upper and lower level of organization.

The important function of middle level management are as follows:

i) To interpret the policies found by the top level management.

ii) To recruit and select suitable operative supervisory staff.

iii) To assign duties and responsibilities for first line officer.

iv) To motivate personal (staff) to attend a productivity and reward them properly.

3. Lower level of management: Lower level management consists of foreman, supervisors, sales officer, marketing officer, etc. lower level management is also known as fast line management and operating level management. It is directly concerned with the direction and control of the performance of the operative non-managerial employees.

The important function of lower level management are as follows:

i) Instruction and guidance to the operating employees and workers.

ii) Preparation of short term plan.

iii) Assignment of duties: it assigns job, duties and responsibilities to the non-managerial employees.

iv) To arrange the necessary tools and equipment, materials etc. for the workers.

v) To solve the problems of workers

vi) To inform the unsolved problems of workers to the management.

Feature of Management:

->The feature of management are as follows:

1. Process: Management is a process. The function short is planning, organizing, directing, staffing, leading and controlling are included in the process which proper coordination of resources by means of managerial function.

2. Group Activity: Management is based on group activities. The significance of management is the group participation both note industrialization. a group can easily and effectively attain the goals of organization rather than an individual.

3. Purposeful: Every management activity is purposeful. Management it helps in or contributes greatly for efficient and effective use of different resources to achieve the goal. The main objective of management is to maximize the productivity through minimum sources.

4. Both science and art: Management is both science and art. It is science because it is based on same basic principle of universal application. it is also in because the result of an organization depends upon the personal skills, efficiency and experience of manager and his subordinates.

5. Profession: Management is also profession because it has the feature of profession like specific knowledge, formal education, service motive, ethical codes etc. So, in today’s world measurement is Taken as a profession.

6. Universal: Management is universal in nature. It is necessary and practice in almost all types of organization. Management institute query or essential where there is human activity. It means that wherever there is a human activity, there is management. The principle of management is universally applicable.

7. Dynamic: Management is a continuous and dynamic activity. Principle of management and not rigid. The principles are flexible as for the need and requirement of time and organization. The system of management of today may not be suitable or applicable tomorrow. So, management modifies its style and system is for time and situation which saves the organization to adjust itself in changing environment of business.

8. Social Process: Management is a social process because it consists of getting things done through others. This involves dealing with people. the effort of human beings has to be directed, coordinated and regulated by management. Moreover, management has a social obligation to make optimum use of limited resources for the benefit of community as a whole.

9. Multi-disciplinary: Management draws knowledge and concept from other discipline such as economics, psychology, sociology, statistics, operation, research etc. management integrates ideas and concepts taken from other discipline and use them in managing the organization.

Function of management:

->The functions of management are:

1. Planning: Planning is an important function of management. It involves selecting courses of action from a set of alternatives. Planning decides advance as to: what is to be done? And how it is to be done? When it is to be done? Where it is to be done? You will do it and how results are to be evaluated? decision making is the part of planning process that involves development of alternatives, evaluation of alternatives and selecting the best alternatives

2. Organizing: It is another important function of management. Organizing involves: determining the activities, the activities to be done, grouping the activities, assigning the group of activities to individuals and creating structure of authority and responsibility among the people to achieve of the enterprises. It is a tool for achieving organizational objectives and mechanisms for propose full action for implementation of policies and programs.

3. Staffing: Staffing is also an important function of management. The staffing function involves recruitment, selections, socialization, training and development etc. It is Human resource management function in an organization. It ensures qualified efficient, experienced and skilled staff.

4. Direction: Direction is the act of ordering subordinates by exercising power for organizational performance. It is required all level of management. Direction maintains good human relation and is motivates staff.

5. Leading: Leading is also important function of management. it influences the group towards the attainment of goals. Leadership is also considered as personal quality of an individual who organizes the effort, capabilities and talents of the followers and directs towards the attainment of organizational goals. leading involves:

i) Issue, order and instruction.

ii) Guiding, training, motivating supervision and communicating.

iii. Coordination and influencing.

6. Controlling: Define all basic function of management is controlling. It is the process of maintaining the organization’s progress towards its goals. The controlling function involves: evaluating actual performance, comparing actual performance to standard and taking corrective action if necessary. It increases productivity and reduce cost of production.

Management: science, art and profession

Is Management as an art, a science or a profession?

Management as an art: Art is an application of knowledge and skills to get desired results. Management is also taken as an art; a creative art is it requires. Acknowledge of innovating and integrating skills in relation to good resources etc. Management also satisfied basic features of an art. An artist as to apply his theoretical knowledge into practice to get the desired result. In the same way the management also applies the theoretical knowledge in practice. So, it is an art as well. the main element of art and involvement of those elements in management are as follows:

1. Practical knowledge
2. Personal ability
3. Result oriented
4. Regular practice
5. Creativity
6. Situational
7. Personal judgement.

Management as a science: Science is a systematic body of knowledge with observation and experiment. Its principles are: universal established, cause and effect relationship between variables. In the same way, management also satisfies the features of science which contains systematic body of knowledge. In the form of general principles which can be applied in all placed through the world. The principles of management are also based on experiments and observations. Likewise, it also establishes cause and effect relationship between variables. So, management is a science. it studies about human behavior but it is not natural science like physics and chemistry. Essential features are as follows:

1. Systematic knowledge
2. Based on observation and experimentation
3. Cause and effect relationship
4. Universal validity of principles.

Management as a profession: Profession is an occupation. for a profession there must be in academic and professional qualification presented by law. A professional manager is one who specializes in the work of planning, organizing, leading and controlling the effort through systematic use of knowledge. The example of profession are occupation of lawyer ,doctor, accountant, etc. The essential features of profession most helpful in things:

1. Specialized knowledge
2. Formal education and training
3. Social responsibility
4. Representative body.

Management also features these means and features. Therefore, it can also be taken as a profession.

Basis of Difference	Administration	Management
Nature	Mental or thinking function	Executive function
Level	Top-level management	Operational or executive level management
Work	Determination of objectives and policies	Implementation of plans and policies
Use	Mainly in government, education, and social institutions	Mainly in business organizations with economic motives
Involvement	Generally, owners are involved	Generally, personnel or employees are involved
Skill and Ability	Requires administrative ability	Requires technical and managerial ability
Belief	American school of thought: Management is part of administration	British school of thought: Administration is part of management
Function	Determination of objectives and formulation of functions	Includes planning, organizing, staffing, directing, leading, and controlling

Important questions

i) Define management. Explain the features of management.

ii) Give the differences between administration and management.

iii) Discuss management as an art , a science or profession.

iv) What are the function of management?

v) Describe the level of organization of management.