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Ltd. “Trademark Acknowledgements Allbrandaamesandproductnamesiedinthsbookare tae mes service mars tademarhsor reptere ademas ofthe respectvowaen: VK Global PabicstonsPrt Led. snctsiocited vethanyproductorvendormentonedinthisbook Every fforthas been made to avo errors or omissions in this publication, In pte of his some errors might havecreptin, Any mistake, ror or discrepancy noted maybe brought 0 ‘ur notice which shal be taken cae of in the next eton Its notified that nether the publishers nor the author o eer wil be esponsibe for any damage rls of ation to anyone of any kind, in any manner, therefrom. For binding mistakes, mispeints or for missing pages ec. the publisher’ labty is lmited to replacement within one month of purchasby [Link] borne the purchaseContents PART A : Principles and Functions of Management 1. Nature and Significance of Management...........002s0000008 1.1 Modern Concept of Management/Meaning of Management 1.2 Characteristics or Features of Management 1.3 Objectives of Management 1.4 Importance of Management 1.5 Nature of Management 1.6 Levels of Management 1.7 Functions of Management 1.8 Coordination 2. Principles of Management 2.1 Meaning of Principles of Management 2.2 Nature/Features/Characteristics of Management Principles 2.3 Significance/Importance of Management Principles 2.4 Fayol’s Principles of Management 2.5 Scientific Management Developed by FW. Taylor 2.6 Comparison between Taylor and Fayol 3. Business Environment .........06+++eeee sree sree eee eeeeee 3.1 Meaning of Business Environment 3.2 Features/Characteristics/Nature of Business Environment 3.3 Importance of Business Environment3.4 Dimensions of Business Environment 3.5 The Features of New Economic Policy 1991 4, Planning 4.1 Meaning of Planning 4.2 Features/Nature/Characteristics of Planning 4.3 Importance/Significance of Planning 4.4 Limitations of Planning 4.5 Planning Process 4.6 Plan 4.7 Types of Plans 5.1 Meaning of Organising 5.2 Organising Process 5.3 Importance/Significance of Organising 5.4 Organisational Structure 5.5 Formal and Informal Organisation 5.6 Delegation of Authority 5.7 Centralisation and Decentralisation 6.1 Meaning of Staffing 6.2 Importance/Need/Benefits/ Advantages of Staffing 6.3 Staffing and Human Resource Management 644 Staffing Process 6.5 Components/Elements/ Aspects of Staffing 6.6 Methods of Training7s Directing erect ee eee eee eee eee reece) 293 7.1 Meaning and Introduction 7.2 Features/Characteristics of Directing Function 7.3 Importance of Directing Function 7.4 Elements of Directing 7.5 Supervision 7.6 Motivation (Will to work) 7.7 Leadership 7.8 Communication 351 8. Controlling . 8.1 Meaning of Controlling 8.2 Nature of Controlling 8.3 Importance of Controlling 8.4 Relationship between Planning and Controlling 8.5 Controlling Process PART B: Business Finance and Marketing 9. Financial Management. . 9.1 Meaning of Financial Management 9.2. Objectives of Financial Management 9.3 Financial Decisions 9.4 Financial Planning 9.5 Capital Structure 9.6 Fixed and Working Capital 9.7 Working Capital (Short term Investment Decision)10. u. . Consumer Protection . Financial Market..........6.0.00e0eeeeceeeseeeeeeneneees 431 10.1 Financial Market: Concept and Nature 10.2 Money Market 10.3 Capital Market: Meaning and Definition 10.4 Stock Exchange Marketing Management ............0ceeceeeeeeeeeeeeeens 473 11.1 Introduction and Meaning 11.2 Marketing 11.3 Marketing Management Philosophies 11.4 Functions of Marketing 11.5 The Marketing Mix 529 12.1 Importance of Consumer Protection 12.2 Legal Protection to Consumers 12.3 Consumer Rights 12.4 Consumers’ Responsibilities 12.5 Redressal Agencies under the Consumer Protection Act, 1986 and Their Jurisdiction 12.6 Role of Consumer Organisations and NGOs = CBSE Sample Question Paper 2020 (Solved)..........0000605 561 = Project WorkPreface It gives me immense pleasure and overwhelms me to know that students and teachers have highly appreciated and accepted this book. ‘This has encouraged me to thoroughly revise the book as per the latest syllabus of CBSE. Significant improvementshave been made in several chaptersas per the new syllabus. While revising the book questions, from last year question papers are included in Review Exercise and some new additions are made in Higher Order Thinking Skill questionsand Conceptual Questions. The present bookhas been specifically designed tomeet the academic requirement ofthe new syllabus for the students of Class XI ‘This is the eighth revised and enhanced edition of this book. The book is divided into two parts. Part A covers topics related to Principles and Functions of Management and Part B covers Business Finance and Marketing. ‘Themain featuresofthe bookare: ‘The languageis very simpleand styleis examination oriented. 2. ‘The subjectis presented in self-explanatory manner, sothat students may find it easy to understand, 3. Topicsare explained in points, so that students may find iteasy to learn and understand, 4, Chartsand diagrams are drawn after every topic, 5, Each chapter begins with the learning objectives. 6. This book is strictly as per the latest CBSE syllabus and covers complete matter as per the NCERT book. 7. After every topic, Objective Type Questions and Case Studies are given based on the latest CBSE ‘Sample Paper (2020), (Hints of theiranswers are given atthe end of each chapter.) 8, At the end of each chapter, 40 objective type questions (20 MCQs + 10 Fill in the blanks + 10 ‘True/False) are given along with answersat the end. 9. Keywords ofeach topicare given at the end of each topic, to help students to solve casestudies 10, A flow chart ofeach chapteris given at the end to recap the topics covered in that chapter. 11. Quickrevision isgiven to reviseal thetopicsin short time. 12, Attheend of each chapter, questions asked in last 7 years’ Board Exam are given, so thatthe students ‘may getan idea of what types of questions are expected from this chapter. (Hints ofanswersofthese questionsarealso given.) 13, CaseStudiesare framed by using words strictly from the NCERT. 14, A section of questions-Higher Order Thinking Skill (HOTS) along with their answers is added to prepare the students to answer indirect questions and difficulty-level questionsin board exam. 15, Review Exercises of NCERT textbook are also covered at the end of each chapter under the hheading-Guidelines to NCERT Questions. 1, sincerely believe that the students and (learned) teachers will find this book useful and instructive, request all the teachers to give their views, suggestions, comments for further improvement of the book, at my mail bst,poonamgandhi@gmailcom. Your suggestions are always welcome and shall be gratefully acknowledged, |Iwantto thank the pillar of my strength, my husband, Rajiv Gandhi for his never ending support. also want tothankmy son Bhuvan Gandhi, who helped and assisted me in preparingand writing the manuscript ofthis book. Finally, I thank the publishers VK Global Publications Pvt. Ltd, for bringing out this book in an attractive format and nice set-up. Regards, Poonam GandhiDedicated to My Father-in-Law (Late Shri M.G. Gandhi) Father (Late Mr. T.R. Saigal) & Mother (Late Mrs. C.M. Saigal)SYLLABUS CENTRAL BOARD OF SECONDARY EDUCATION, NEW DELHI BUSINESS STUDIES, CLASS-XII One Paper Time : 3 hours Theory: 80 Project: 20 1, Nature and Significance of Management 12 2. Principles of Management “4 } 16 3, Business Environment 12 4. Planning 4 } 4 5. Organising 15 6. Staffing 16 7. Directing 15 | 2 8. Controlling 12 Tol 0 50 PART-B: Business Finance and Marketing 9, Financial Management 20 10, Financial Markets 18 } 6 11, Marketing Management 30 } 6 12, Consumer Protection 12 PART-C: Project Work (One) 30 20 Total 10 50Part A: Principles and Functions of Management Unit 1: Nature and Significance of Management Management—concept, objectives, and importance Management as Science, Art and Profession | Levels of Management Management functions—planning, organizing, staffing, directing and controlling Coordination—concept and importance Unit 2: Principles of Management Principles of Management—concept and significance Fayol’ principles of management Taylor's Scientific management—principles and techniques Unit 3: Business Environment 110 Periods 12 Periods Afier going through this unit, the student/learner would beable to: ‘= Understand the concept of management. ‘= Explain the meaning of ‘Effectiveness and Efficiency. Discuss the objectives of management. Describe the importance of management. Examine the nature of management as a science, art and profession. Understand the role of top, middle and lower levels of management. Explain the functions of management. Discuss the conceptand characteristics of coordination. Explain the importance of coordination. 14 Periods After going through this unit, the student/learner would be able to: = Understand the concept of principles of management. Explain the significance of management principles. Discuss the principles of management developed by Fayol. Explain the principles and techniques of ‘Scientific ‘Management. Compare the contributions of Fayol and Taylor. 12 Periods | Demonetization—concept and features Impact of Government policy changes on business with special reference toliberalization, privatization and globalization in India Business Environment—concept_ and _ After going through this unit, the student/learner would importance be able to: ‘= Understand the concept of ‘Business Environment. ‘= Describe the importance of business environment. Dimensions of Business Environment— = Describe the various dimensions of ‘Business Economic, Social, Technological, Political and Environment. Legal = Understand the concept of demonetization. = Examine the impact of government policy changes on business in India with reference to liberalisation, privatization and globalisation since 1991. Discuss the managerial response to changes in business environment.Unit 4: Plan Concept, importance and limitation Planning process Single use and standing plans. Objectives, Strategy, Policy, Procedure, Method, Rule, Budget and Programme Unit 5: Organising Concept and importance 14 Periods After going through this unit, the student/learner would be able to: ‘= Understand the concept of planning, ‘= Describe the importance of planning. Understand the limitations of planning. Describe the steps in the process of planning. Develop an understanding of single use and standing plans. Describe objectives, policies, strategy, procedure, method, rule, budget and programme as types of plans. 15 Periods After going through this unit, the student/learner would be able to: = Understand the concept of organizing as a structure and as a process. ‘= Explain the importance of organising. Organising Process Structure of organisation—functional and divisional concept. Formal and informal organisation—concept Delegation: concept, elements and importance Decentralization: concept and importance Unit 6: Staffing Concept and importance of staffing = Describe the steps in the process of organising. Describe functional and divisional structures of organisation. Explain the advantages, disadvantages and suitability of functional and divisional structure. Understand the concept of formal and informal organisation. Discuss the advantages, disadvantages of formal and informal organisation, Understand the concept of delegation. Describe the elements of delegation. Appreciate the importance of Delegation. Understand the concept of decentralisation. Explain the importance of decentralisation. Differentiate between delegation and decentralisation. 16 Periods After going through this unit, the student/learner would beable to: = Understand the concept of staffing, _ = Explain the importance of stafing.Staffing as a part of Human Resource Management—concept, Staffing process = Understand the specialised duties and activities performed by Human Resource Management. Describe the steps in the process of staffing. Recruitment process Understand the meaning of recruitment, Discuss the sources of recruitment, Explain the merits and demé external sources of recruitment. of internal and Understand the meaning of selection. 1 Describe the steps involved in the process of selection. Selection process ‘Training and Development—Concept and Understand the concept of training and importance, Methods of training—on the development. job and off the job—vestibule training, Appreciate the importance of training to the apprenticeship training and internship organisation and to the employees. training = Discuss the meaning of induction training, vestibule training, apprenticeship training and_ internship training. 1 Differentiate between training and development. ‘= Discuss on the job and off the job methods of training, Unit 7: Directing 15 Periods After going through this unit, the student/learner would be able to: 1 Describe the concept of directing. Discuss the importance of directing Concept and importance Elements of Directing Describe the various elements of directing Understand the concept of motivation. Develop an understanding of Maslow’s Hierarchy of needs. = Discuss the various financial and non-financial \centives. Motivation—concept, Maslow’s hierarchy of needs, Financial and non financial incentives = Understand the concept of leadership. = Understand the various styles of leadership. Leadership—concept, styles—authoritative, democratic and laisser faire Communication—concept, formal and = Understand the concept of communication. informal communication; barriers to effective _m Understand the elements ofthe communication process. Fa = Discuss the concept of formal and informal barriers en aa = Discuss the various barriers to effective communication, = Suggest measures to overcome barriers to ‘communication.Unit 8: Controlling Concept and importance Steps in process of control 12 Periods After going through this unit, the student/learner would, be able to: = Understand the concept of controlling. = Explain the importance of controlling. | Relationship between planning and controlling = Describe the relationship between planning and controlling. | “Discuss the steps in the process of controlling. Part B: Business Finance and Marketing Unit 9: Financial Management | Concept, role and objectives of Financial ‘Management Financial decisions: investment, financing and dividend—Meaning and factors affecting 110 Periods 20 Periods Alter going through this unit, the student/learner would beable ‘Understand the concept of financial management, Explain the role of financial management in an organisation. Discuss the objectives of financial management. Discuss the three financial decisions and the factors affecting them. Financial Planning—Concept and importance Capital Structure—Concept and factors affecting capital structure Fixed and Working Capital—Concept and factors affecting their requirements Unit 10: Financial Markets Financial Markets: Concept, functions and types Money market and its instruments Describe the concept of financial planning and its objectives. Explain the importance of financial planning. Understand the concept of capital structure. = Describe the factors determining the choice of an appropriate capital structure of a company. Understand the concept of fixed and working capital. = Describe the factors determining the requirements of fixed and working capital. 18 Periods After going through this unit, the student/learner would beable Understand the concept of financial market. Explain the functions of financial market. Understand capital market and money market as types of financial markets. ‘Understand the concept of money market. Describe the various money market instruments.Capital market and its types (primary and = secondary), methods of floatation in the » primary market Discuss the concept of capital market. Explain primary and secondary markets as types of capital market. Differentiate between capital market and money market. Discuss the methods of floating new issues in the primary market. Distinguish between primary and secondary markets. Stock Exchange—Functions and trading procedure Securi and Exchange Board of India (SEBI)— objectives and functions Give the meaning of a stock exchange. Explain the functions of a stock exchange. Discuss the trading procedure in a stock exchange. Give the meaning of depository services and demat account as used in the trading procedure of sec State the objectives of SEBI. = Explain the functions of SEBI. Unit 11: Marketing 30 Periods Marketing—Concept functions. and _After going through this unit, the student/learner would philosophies be able to: = Understand the concept of marketing, ‘Marketing Mix—Concept and elements . Product— Branding, labelling and packaging— Concept Price—Concept, Factors determining price Physical Distribution—Concept, components and channels of distribution. Explain the features of marketing, Discuss the functions of marketing. Explain the marketing philosophies. Understand the concept of marketing mix. Describe the elements of marketing mix. ‘Understand the concept of product as an element of marketing mix. Understand the concept of branding, labelling and packaging. Understand the concept of price as an element of marketing mix. Describe the factors determining price of product. ‘Understand the concept of physical distribution. Explain the components of physical distribution. Describe the various channels of distribution.Promotion— Concept and _ elements; Advertising, Personal Selling, Sales Promotion and Public Relations. Unit 12: Consumer Protection Concept and importance of consumer protection ‘= Understand the concept of promotion as an element of marketing mix. ‘= Describe the elements of promotion mix. = Understand the concept of advertising. = Understand the concept of sales promotion. ‘= Discuss the concept of public relations. 12 Periods After going through this unit, the student/learner would beable to: = Understand the concept of consumer protection. = Describe the importance of consumer protection. = Discuss the scope of Consumer Protection Act, 1986. Consumer protection Act 1986: Meaning of consumer Rights and responsibilities of consumers Who can file a complaint? Redressal machinery Remedies available Consumer awareness—Role of consumer organizations and Non-Governmental Organizations (NGOs). Part C: (Unit-13) Project work ‘= Understand the concept of a consumer according to the Consumer Protection Act 1986. = Explain the consumer rights. = Understand the responsibilities of consumers. ‘= Understand who can file a complaint and against whom? = Discuss the legal redressal machinery under Consumer Protection Act 1986. = Examine the remedies available to the consumer under Consumer Protection Act 1986. = Describe the role of consumer organizations and NGOs in protecting consumers’ interests. 30 PeriodsDESIGN OF MODEL QUESTION PAPER BUSINESS STUDIES, CLASS-XII Time: 3 Hours ‘Max. Marks: 80 S. Typology of Questions No. Objective typeMCQ (mark) Short Answer -I (3 marks) Short “Answer-II (4 marks) Long Answer-I (S marks) Long Marks Answer-II (6 marks) 1, Remembering: Exhibit memory of previously learned material by recalling facts, terms, basic concepts and. ‘Understanding: ‘Demonstrate understanding of facts and ideas by organizing, ‘comparing, translating, interpreting, giving descriptions ‘and stating main ideas. Applying: Solve problems to new situations by applying acquired knowledge, facts, techniques and rules in a different way. ‘Analysing and Evaluating: ‘Examine and break information into parts by identifying motives ‘or causes. Make inferences and find evidence to support ‘generalizations, Present and defend opinions bby making judgements about information, validity of ideas or ‘quality of work based on a set of Creating: ‘Compile information together ina different way by combining. ‘elements in a new pattern or Proposing alternative solutions. 7 Total 20x1=20 553215 3xd=12 35215, 3x6-18 80(34) Note: There will be Internal Choice in questions of 3 marks (1 choice), 4 marks (1 choice), 5 marks (2 choices) and 6 marks (2 choices). In all, total 6 internal choices.PART: A PRINCIPLES AND FUNCTIONS OF MANAGEMENTV7’ Part: A | Principles and Functions of Management NATURE AND SIGNIFICANCE OF MANAGEMENT l= ~Management—Concept, Objectives, and Importance @ Concept includes Meaning and Features | Management as Science, Art and Profession Levels of Management = Management Functions—Planning, Organizing, Staffing, Directing and Controlling = Coordination—Concept and Importance INTRODUCTION Successful organisations do not achieve their goals by chance but by following a deliberate process called management. Management is essential for all organisations big or small, profit or non-profit, service or manufacturing management is necessary so that individuals make their best contribution towards group objectives. Managers take decisions as to who will do what, when they will do it and what resources they will use. Basic job of a manager is the effective and efficient utilisation of physical, financial and human resources to achieve organisational objectives. No matter what the organisation is or what its goal might be, they all have something in common, ie., Management and managers. Management consists of a series of inter-related functions that are performed by all managers, for examples, managers have to plan the objective of the firm, organise resources to achieve that objective, recruit and select employees who can implement these objectives. Giving directions, communicating and motivating these employees to achieve objectives effectively and efficiently and ultimately checking whether everything is going as per plan or not. However, the time spent by managers in different functions is different. Managers at top level spent more time in planning and organising than the managers at lower level. If we see real life examples, Shiv Nadar of HCL Enterprise performs all these functions, so is Nusli Wadia of Bombay Dying, Bill Gates of Microsoft, Indra Nooyi of Pepsico and Principal of your school, etc.12 [ Part: A rciples and Functions of Management 1,1 MODERN CONCEPT OF MANAGEMENT/ MEANING OF MANAGEMENT According to modern concept “management is a process of getting things done with the aim of achieving goals effectively and efficiently.” ‘The concept of Management insist on three terms: 1. Process. Process refers to series or sequence of steps, management is a process because it performs series of functions to get the things done. These functions are planning organising, staffing, directing and controlling. (These functions are discussed in detail is the later part of chapter and book.) 2. Effectiveness, It is concerned with doing the right task, completing activities and achieving goal, In other words, it is concerned with end result, Being effective or doing work effectively means finishing the given task or achieving the goal on time. 3. Efficiency, It refers to do the task in the right way, i.e., with minimum cost and optimum utilisation of resources. Efficiency involve cost benefit analysis. It focus on deriving more benefits by using less resources. It insist on using less inputs such as money, materials, equipments persons to get more output. Management is concerned with efficient use of resources because reduction in cost leads to higher profit. Difference between Effectiveness vs Efficiency Basis of Difference Effectiveness Efficiency 1. Meaning It refers to completing the task on It refers to completing the task with minimum time, no matter whatever the cost. cost, optimum utilisation of resources and in cost effective manner. 2. Objective To achieve end result To conduct cost benefit analysis. 3. Main consideration | Doing the right task Doing the task in right way. Relation between Efficiency and Effectiveness/Conclusion Effectiveness and efficiency are equally important as being effective ‘means completing the task but it is not enough to just complete the task, it must be done correctly without any wastage of resources. Effectiveness and efficiency are the two sides of a same coin, one without other is of no <> use. Effectiveness and efficiency together lead to higher profit and prosperity of an organisation. And failure of an organisation is due to inefficiency and ineffectiveness.Chapter: 1 Nature and Significance of Management | 13 Definitions by different autho! @ “To manage is to forecast, to plan to organise, to command, to coordinate and to control.” @ “Managementis the creation of an internal environment where ing effectively and efficiently for the achievement of organisational goal. iduals working in a group can perform @ “Management is establishing an effective environment for people operating in formal organisational group.” —Koontz and O’Donnel © “Management isthe art of knowing exactly what you want your men to do and then seeing that they do it in the best and cheapest way.” —James L. Ludney @ “Management is the coordination of all resources through the process of planning, organising, directing and controlling in order to attain stated objectives.” FW. Taylor © “Management is the process by which a cooperative group directs actions of others towards common goals.” —Marrie and Douglas (Planning, organising, staffing, directing, (Being effective or doing work (Efficiency involve cost benefit analysis it focus on deriving more benefits by controlling) effectively means using less resources. It insist on using finishing the given less inputs such as money, materials, task or achieving equipments persons to get more output.) the goal) Ceo I Management: A process to achieve goal effectively and efficiently. (i) Effectively: Completion of task or achievement of goal on time (i) Efficiently: Completing the task or achieving the goal with minimum cost or optimum utilisation of resources or in cost effective manner. “Management has to see that tasks are completed and goals are achieved with the least amount of resources at a minimum cost.” Identify the two related concepts of management. (a) Coordination and efficiency (b) Efficiency and effectiveness (c) Planning and effectiveness (d) Management and administration 2. Successful organisations do not achieve their goals by chance but by following a deliberate process called: (a) effectiveness (b) efficiency (©) coordination (@) management14 [ Part: A Principles and Functions of Management 3. During festival season ABC Ltd. received a new order of 10,000 mobile phones to be delivered in 10 days, failing which the contract will be null and void. To complete this production manager planned to outsource the production so that order could crease in cost by 30%. be delivered on time. The outsourcing resulted in (i) Do you think the production manager performed duties effectively and efficiently? (ii) Give any two points of difference between effective and efficiency. 4, ABC Ltd., a garment manufacturing Company set the target production of 100 garments per month at the estimated cost of € 200 per garment. Mohan, a worker worked double shift and manufactured around 150 garments but at the estimated cost of 230 per garment. On the other hand, Ravi another worker focus on cost and handled resources very carefully so he manufactured 90 garments but at the estimated cost of € 190 per garment. Third worker maintained the balance and achieved target of 100 garment at the estimated cost of & 200 per garment. (a) Identify the quality possessed by Ravi, Mohan and what they are lacking. (b) What quality is possessed by third worker? () Which worker is preferred by management? (Answers at Page no. 56) fi CHARACTERISTICS OR FEATURES OF MANAGEMENT Management is Goal-oriented Process. Management always aims at achieving the organisational objectives. The functions and activities of manager lead to the achievement of organisational objectives. Management unites the efforts of different individuals in the organisation, common goals. ‘Management is Pervasive, Managerial activities are performed in all types of organisations, in all departments and at all levels. ‘Management is required in all organisation whether big or small, manufacturing or service organisation, profit or non-profit making organisation. Concept of management is used in whole world. What managers do in India, USA, Germany or Japan is same, how they do it may be quite different. Management is Multi-dimensional. Management does not mean one single activity but it includes three main activities: (a) Management of work.Chapter: 1 Nature and nificance of Management 115 (b) Management of people. (©) Management of operations. (a) Management of work. All organisations are set up to perform some task or goal. Management activities aim at achieving goals or tasks to be accomplished. The task or work depends upon the nature of Business for example, work to be accomplished in a school is providing education, in hospital is to treat patient, in industry to manufacture some product. Management makes sure that work is accomplished effectively and efficiently. (b) Management of people. People refer to human resources and human resources are the most important assets of an organisation. Management has to get task accomplished through people by making their strength effective and their weakness irrelevant. Managing people has two dimensions: (i) Taking care of employee’ individual needs. (ii) Taking care of group of people. (©) Management of operations. Operations refers to activities of production cycle such as buying inputs, converting them into semi-finished goods, finished goods. Management of operations concentrates on mixing management of work with management of people, i.e., deciding what work has to be done, how it has to be done and who will do it. i Management Management Management of Work of People of Operations ‘ { ng [Sita | Organisin Controlling HHH 4. Management is a Continuous Process. Management is a continuous or never ending function. All the functions of management are performed continuously, for example, planning, organising, staffing, directing and controlling are performed by all the managers all the time. Sometimes, they are doing planning, then staffing or organising, etc. Managers perform ongoing series of functions continuously in the organisation.16 [ Part: A Principles and Functions of Management ‘Management is a group activity: Together everyone achieves more as a team. 5. Management is a Group Activity. Management always refers to a group of people involved in managerial activities. Each individual performs his/her role at his/her status and department, then only management function can be executed. Even the result of management affects every individual and every department of the organisation so it always refers to a group effort and not the individual effort of one person. 6. Management is a Dynamic Function. Management has to make changes in goal, objectives and other activities according to changes taking place in the environment. The external environment such as social, economical, technical and political environment has great influence over the management. As changes take place in these environments, same are implemented in organisation to survive in the competitive world. 7. Intangible. Management function cannot be physically seen but its presence can be felt. ‘The presence of management can be felt by seeing the orderliness and coordination in the working environment. |, a 7 Managementis Management Management Management Management Management Goal-oriented is isMut- isaContinuous isaGroup is Dynamic __ intangible Process Pervasive dimensional —_—Process ‘Activity FunctionChapter: 1 Nature and Significance of Management | 17 Il Features of Management @ cid) (ii) (iy) ™ (wi) (i) Goal Oriented: Management focus on the end result. ‘Multidimensional Managementis multi facet, focus on three main activities—Management of work, People and Operations. Pervasive: Use of management in business as well non-business organisation, everywhere, universal Continuous: Never ending, not one time task, ongoing process. Group Activity Alllevels of management perform, involvement of all employees to manage and achieve the goal Use of we not | to represent management. Dynamic: Any change in organisation, change in goal, change in technology, change in menu, etc, intangible Situation showing systematic working, no chaos, ie., presence of management can be felt not seen. 1 3. 4. 5. Human Resources are an organisation’s greatest assets. Despite all developments in technology “getting work done from people” is still a major task of manager” Identify the dimension of management being described above. (a) Management of work (b) Management of people (c) Management of operations (d) All of the above Management always work by keeping an end result or aim of the organisation. All activities of managers are directing towards the end result. It is related to which feature of management: (a) Management is multidimensional (b) Management is continuous (c) Management is intangible (d) Management is a goal oriented process Is planning, organising, staffing, directing and controlling applied in organisations such as school, club, restaurant, hospitals, etc.? If yes which characteristics of management does it signify? Explain that characteristic. ‘The task of management is to make people work towards achieving the organisational goals by making their strengths effective and their weakness irrelevant. Identify the dimension of management. Dominos Pizza's keep introducing new variety of Pizzasin its menu, Which characteristics of management is highlighted in this? Explain any other two characteristics of management. (Answers at Page no. 56)