CBSE Class 12 Business Studies Nature And Significance Of Management Notes Set B

bjectives of management
(A) Organizational objectives of Survival (Earning enough revenues to cover cost); Profit (To Cover cost and risk); & Growth (To improve its future Prospects).
(B) Social Objectives of giving benefits to society like using environmentally friendly practices and giving employment to disadvantaged sections of society etc.
(C) Personal Objectives because diverse personal objectives of people working in the organization have to be reconciled with organizational objectives.

Importance of management
(1) Achieving Group Goals: Management helps in achieving group goals. Manager give common
direction to the individual effort in achieving the overall goal of the organisation.
(2) Increases Efficiency: Management increases efficiency by using resources in the best possible
manner to reduce cost and increase productivity.
(3) Creates Dynamic Organisation: Management helps in creating Dynamic organisation which
could adopt changing situations easily.
(4) Achieving Personal Objectives: Management helps in achieving objectives of individuals
working in the organisation.
(5) Development of Society: Management helps in the development of society by producing good
quality products, creating employment opportunities and adopting new technology.

Levels of Management: Top, Middle and operational levels.
Top Level
Consists of Chairperson, Chief Executive Officer, Chief Operating Officer or equivalent and their team.
Chief task is to integrate and to coordinate the various activities of the business, framing policies, formulating organisational goals & strategies.

Middle Level
Consists of divisional heads, Plant Superintendent and Operations Manager etc.
Main tasks are to interpret the policies of the top management, to ensure the availability of resources to implement Policies & to coordinate all activities, ensure availability of necessary personnel & assign duties & responsibilities to them.

Lower Level / Supervisory Level
Consists of Foremen and supervisors etc.
Main task is ensuring actual implementation of the policies as per directions, bring workers grievances before the management & maintain discipline among the workers.

Functions of Management: Planning, Organizing, Staffing, Directing and Controlling.
Planning is deciding in advance what to do in future and how to do it.
Organizing is to assign duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan.
Staffing is finding the right people for the right job.
Directing is leading, influencing and motivating employees to perform the tasks assigned to them. Controlling is monitoring the organizational performance towards the attainment of organizational goals.

Coordination: The essence of Management: Coordination is the force which synchronizes all
the functions of management and activities of different departments.
It integrates the group efforts.
It ensures unity of action.
It is a continuous process.
It is an all-pervasive function.
It is a deliberate function.
It is the responsibility of all managers.