Nature and Significance of Management Class 12 Notes
Nature and Significance of Management Notes for Class 12- Management can be defined as the process of getting things done by others efficiently and effectively.
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Management — Definition
Traditional Definition:-
Management can be defined as the art of getting things done through others for achieving goals
Modern Definition by Mary Douglas
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“ Management is defined as the process of planning, organising and controlling an organisation’s operations in order to achieve the target efficiently and effectively.
Characteristics of Management
Goal-Oriented Process:-
- Management is carried out with the main objective to achieve the goal set up by the organisation.
- In other words, Management is goal-oriented in nature. Management unifies the efforts of all individuals to achieve goals.
- The goal may be quantitative or qualitative in nature.
All Pervasive:-
- Management is pervasive in the sense that it is applicable to all organization whether small or big, profit organisation or NPO, sole proprietorship or any other form of organisation.
- In other words, it is universally applicable
Multidimensional:- It does not contain one activity, it is a complex activity including three main activities
- Management of house
- Management of people
- Management of operations
Continuous Process:-
- It is a never-ending process. It consists of series of interrelated functions which are needed to perform continuously.
- In other words, it is not a one-time process. An organization requires management throughout so as to ensure optimum utilisation of resources.
Group Activity:-
- An organisation is a collection of many individuals, every individual contributes towards achieving the goal. Management cannot be performed by one person.
- There are three levels in management and each level includes so many people Therefore, the whole organisation is included in the process of management.
Intangible Force:-
- It cannot be seen or touched only it can be felt in the way the organisation functions
- In other words, management cannot be perceived by our senses because it can neither be seen nor touched but can only be felt by many people in an organisation.
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Objectives of Management -Nature and Significance of management Notes for Class 12
Organisational Objectives
Survival:-
The primary role of every organisation to survive in the market for long duration of time.
It exists for a long time in the competitive market.
Profit:-
It provides a vital incentive for continuous successful operations. Management makes sure optimum utilisation of resources and thereby profit maximisation.
Growth:-
- The success of an organisation is measured by the growth and expansion of activities.
- Growth is often measured by the number of units sold, profit margin, number of branches and number of employees in the organisation.
Social Objectives:-
An organisation is carried out in society. It uses society’s resources and sells goods and renders services to society. Therefore, it becomes their responsibility to take care of society.
It Involves the creation of benefit for society.
In other words, providing benefit to society in terms of water saving, waste management, wildlife conversion, planting trees
It includes:-
- Environment-Friendly Methods of Production
- Employment Opportunities
- Good Quality Product at Reasonable Prices
- Lawful Business
- Providing basic amenities to employees
- Taking Steps for Environment Conversation
- Donating Funds for Social Cause
Personal Objectives:-
Employees are the major stakeholder of every organisation. They play a major role in the achievement of the goal. Therefore, it becomes the responsibility of each organisation to cater to employees.
- The responsibility of the firm towards employees is considered to be personal objectives.
- It includes:-
- Financial Needs
- Social needs
- Higher Level Needs
- Good and Healthy Working Environment
Importance of Management-Nature and Significance of Management Notes for Class 12
(i) Management Helps in Achieving Group Goals:- It integrates the objective of the individual along with the organisational goal.
(ii) Management Increases Efficiency:- It increases productivity through better planning, organising, directing the activities of the organisation.
(iii) Management Creates a Dynamic Organisation:- Organisation have to survive in the dynamic(everchanging ) environment thus manager keep changes in the organisation to match environmental changes.
(iv) Management Helps in Achieving Personal Objectives:- Through motivation and leadership, management helps in achieving personal objectives.
(v) Management Helps in the Development of Society:-It provides good quality products and services, creates employment, generate new technology in that sense it helps in the development of the society.
Nature of Management:- Nature and Significance of Management Notes for Class 12
Management as an Art because it deals with the application of personal skills which can be improved through constant practice.
Management as an art because it satisfies the following points
(i) It is based on practice and creativity.
(ii) Lots of literature is present which gives the existence of theoretical knowledge.
Management as a Science
Management has a systematic body of language which can be used to train prospective and present managers.
It is a science because:-
(i) It is a systematised body of knowledge.
(ii) Its principles are based on experimentation.
Management as a Profession
It does not meet the exact criterion of a profession, it does have some features of a profession.
How is Management as a Profession:-
The essentials of a profession are:
- Specialized Knowledge — A profession must have a systematic body of knowledge that can be used for the development of professionals. Every professional must make deliberate efforts to acquire expertise in the principles and techniques. Similarly, a manager must have devotion and involvement to acquire expertise in the science of management.
- Formal Education & Training — There are no. of institutes and universities to impart education & training for a profession. No one can practice a profession without going through a prescribed course. Many institutes of management have been set up for imparting education and training. For example, a CA cannot audit the A/C’s unless he has acquired a degree or diploma for the same but no minimum qualifications and a course of study has been prescribed for managers by law. For example, MBA may be preferred but not necessary
- Social Obligations — Profession is a source of livelihood but professionals are primarily motivated by the desire to serve society. Their actions are influenced by social norms and values. Similarly, a manager is responsible not only to its owners but also to society and therefore he is expected to provide quality goods at reasonable prices to society.
- Code of Conduct — Members of a profession have to abide by a code of conduct that contains certain rules and regulations, norms of honesty, integrity and special ethics. A code of conduct is enforced by a representative association to ensure self-discipline among its members. Any member violating the code of conduct can be punished and his membership can be withdrawn. The AIMA has prescribed a code of conduct for managers but it has no right to take legal action against any manager who violates it.
- Representative Association — For the regulation of the profession, existance of a representative body is a must. For example, an institute of Charted Accountants of India establishes and administers standards of competence for the auditors but the AIMA however does not have any statuary powers to regulate the activities of managers.
From the above discussion, it is quite clear that management fulfils several essentials of a profession,
However, it does not fulfil the following conditions of management:-
Levels of Management
Top Management It consists of senior-most executives who are usually referred to as the Chairman, Chief Executive Officer, President and Vice President.
Functions of Top Level Management:-
- To coordinate activities of different departments
- To analyze the business environment and its application for the survival of the firm
- To formulate organizational goal and strategies for their achievement.
- To arrange resources of 5 M’s (man, material, materials, money and methods ) to achieve desired goals.
Middle Management They are usually division heads who are the link between top and lower level of management.
Functions of Middle-Level Management:-
- To interpret the policies of top-level management
- To ensure that their department has the necessary personnel.
- To assign necessary duties and responsibilities to them.
- To motivate people to achieve desired objectives.
- To cooperate with other departments for the smooth functioning of the organisation.
Operational or Supervisory or Lower Level Management They are usually the foremen and supervisors who actually carry on the work or perform the activities.
Functions of Lower-Level Management:-
- To oversee the efforts of the workforce.
- To directly interact with the workforce and pass instructions from the middle level of management to subordinates.
- To represent workers’ grievances
- To ensure the quality of output is maintained
- To ensure a safe and proper working environment to workers.
Functions of Management
Planning refers to deciding in advance what to do, how to do and developing a way of achieving a goal efficiently and effectively.
Organising refers to the assigning of duties, grouping tasks, establishing authority and allocating of resources required to carry out a specific plan.
Staffing implies placing the right people for the right job at the right time or cost.
Directing involves leading, influencing, motivating employees to perform the task assigned to them.
Controlling refers to the performance measurement and follow up actions that keep the actual performance on the path of a plan to ensure that goals are actually achieved.
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agement
Co-ordination means binding together all the activities such as purchase, production, sales, finance to ensure continuity in the working of the organisation.
It is considered as a separate function of management, in order to achieve harmony among individual, efforts towards the accomplishment of goods.
It is known as “ Essence of Management “ because it is required at each stage of management.
- It begins at the planning stage in which top-level management plans for the entire organisation.
- At the organising stage, the organisational structure is developed as per plans
- The staffing function is performed thereafter as per structure developed in organisational structure
- Directing is often required to ensure that these plans are executed accordingly
- The controlling function ensures that deviations between actual and planned activities are taken care of
Conclusion:- Like a thread in a garland, coordination is part of all management functions. Coordination synchronises the efforts through all functions of management and ensures that objectives are achieved with a minimum of conflict.
Characteristics of Co-ordination Nature and Significance of Management Notes for Class 12
(i) It integrates group efforts.
(ii) It ensures units of action.
(iii) It is a continuous process.
(iv) It is an all-pervasive function.
(v) It is the responsibility of all managers.
Importance of Co-ordination Nature and Significance of Management Notes for Class 12
(i) Growth in Size When there is a growth in size, the number of people employed by the organisation also increases. Thus to integrate the efforts, coordination is needed.
(ii) Functional Differentiation In an organisation, there are separate department and different goals. The process of linking these activities is achieved by coordination.
(iii) Specialisation Modern organisation is characterised by a high degree of specialisation. Co-ordination is required among different specialists because of their different approaches, judgement etc.
Management in the Twenty-First Century
Management in the 21st century means the new ways, trends, ideas, techniques of doing business and makes it possible to think of the organisation as a ‘Global Organisation.’
Nature and Significance of Management Class 12 Notes
Nature and Significance of Management Class 12 Notes
Nature and Significance of Management Class 12 Notes
Nature and Significance of Management Class 12 Notes
