CLASS -XII

BST CHAPTER -1
NATURE AND SIGNIFICANCE OF MANAGEMENT
What is Management?
Management is process of getting things done with the aim of
achieving goal efficiently and effectively.
Features of Management (PIG Goes MCD)
P-
Management is all Pervasive.
I- Management is Intangible.
G- Management is a group Activity.
Goes- Management is a Goal oriented process.
M- Management is multi dimensional / faceted.
C- Management is a process of continuous process going concern.
D- Management is all Dynamic function.

Explanation-
1.Management is all Pervasive.
Every organisation whether it is commercial or non commercial,

1. Management is a continuous process as it involves a series of functions like planning,

organizing, staffing, directing and controlling. All the managers perform these functions
regularly.
Management does not stop anywhere, it continuous without any break and exist as long
as the organization exist.
2 Management is a goal oriented process each and every organisation is established to
achieve certain goals. Every business have a different goal depending upon the nature of
organisation . For example- A school is having a target to provide good education to the
students, a hospital having main to provide a healthy treatment to the patients etc.
3 Management is a Dynamic function business environment keeps on changing
continuously , so in order to be successful management must change its goal and plans,
policy ets. According to the need of environment .
For example- Maruti suzuki brought many new changes in its car to face competition from
foreign automobile companies.
4.

Helps to the people to adopt these, changes to be successful.

5.Management helps in development of society-
Business is situated in society and it is getting everything from society. So it should serve
the society also by the way of providing good quality goods and services, employment
opportunities etc. So management helps in development of society.
6.Management helps in achieving personal objectives-
Management helps an individual working in an organisation in achieving their personal
objectives, which includes good slary, recognisation of work etc. Managers help the
individual to develop cooperation,team spirit by way of motivation and leadership.
7.Management increases efficiency-
The main aim of every manager in every organisation is to minimize the cost and increase
the production through better planning, organizing,staffing, directing and controlling.
In many organizations input resources are
 Man
 Material
 Machinery
 Money
Management uses these inputs in a paper and effective manner, so that the goals and
targets are achieve in cost effective manner.
Management Helps in achieving group goal:-
By giving a common direction to the individual working in the organisation.
Management is required not for organisation itself but fpr achieving goals and targets of
organisation.
Objectives of Business Management:-
There are three objectives of management –
1. Organisatianal objective
2. Social objective
3. Personal/Individual objective
Explanation_
Organisational objective- This is the main objective of business organisation. The main aim
of every organisation is to utilize the human and material resources in such a manner that
there will be reduction in cost and more profit maximization in the organisation. It consist
of three economic objectives-
 Survival
 Profit
 Growth
Survival- The main objective of every business is to survive for a long period in the
market. So mangemtn must ensure the survival of the organisation.
Profit- Only survival is not sufficient for the business. Profit earning is also necessary.
So, the management must ensure sufficient profits for the organisation.
Growth- It is the next important objective of the management which can be
measured in the term of increase in sales, increase in number of products etc.
2. Social Objective.
Business in situated in society and it is getting everything from society. So , it has
certain social obligations also towards the society. The main social obligations are-
a. Pollution free method of production
b. To supply good quality goods and services at reasonable price
c. To provide employment opportunities especially for the weaker section of society.
d. To provide financial support to society by donating for a noble cause.
 e. By providing basic facility to the employ like school for the children, medical
facility etc.

3.Personal/Individual objective-
It refers to the objective which are related to the employees of an organisation .
It includes:-
a. Financial needs like high salary, incentive and other monetary benefits.
b. Social needs like recognisation in any organisation .
c. Higher level needs including personal growth and development.
If the above needs of the employees are not satisfied, then he will not be able to
work efficiently.

Management as science Management Management as

(Inexact/social science) as an art profession

Management as Science:- It is systematic body of knowledge having logically observe

principles and findings. It establishes cause and effect relationship between two or more
events.
Following points are common between management & science (UPS).
 Universal validity
 Principle based on experimentation
 Systematized body of knowledge.
Universal validity:- Just as science , principle of management are also universal in nature as
they can be applied to each and every organisation irrespective of size and nature.
Principle based on experimentation:- Principle of science have been developed over a
period of time based on observation and experimentation. In the same manner, principle of
management has also been developed over a period of time on the basis of
experimentation & observation in different types of organisation.
Systematized body of knowledge. Management is also a systematic body of knowledge
having its own theory and principle that have been developed over a period of time.
Management as an Inexact/social science:-
The principle of management are not principle of physics and chemistry .
Since , management deals with human beings and human behaviors which keeps on
changing , so principle of management also change.
Principle of management are not completely universal in nature as they can be imedifield
according to given situation.
Many of the principles of management are not the outcome of research.
Hence,it implies of management is not a complete science but inexact or social science.
Management as an Art:- Art is a skilful and personal application of existing knowledge to
achieve desired results. It involves continues practice and creativity.
Following points will show the common features between management and art.
B- Based on practice and Creativity
P- Personalized Application
E- Existence of theoretical knowledge
Based on practice and Creativity:- Art involves creative practice of existing theoretical
knowledge . In the same manner, a good manager works through a combination of
continuous practice , creativity and innovations.
For example- The artist gains perfection by continuous practice in the same manner,
manager also becomes experienced by continuous practice. So the above features
strengthen the view that management is an art.
Existence of theoretical knowledge:- Like an art, certain theoretical knowledge is require in
the same manner the various areas of management like marketing ,sales , finance etc
involves a lot of theoretical knowledge.
Penalized Application:- It is a very personalized concept. It varies from person to person.
Fr Example:- Two dances, two writers, two professionals will always be different in showing
their art. In the same way, every manager uses his persionalized knowledge according to
the situation in his own unique way.
Management as profession:- Profession is a well defined body of knowledge which can be
acquired through instructions & training. It follows ethical standard.
For example:- Doctors, advocate, teachers are professional.

B- Well defined body of knowledge

E- Ethical code of conduct
P- Professional Associational
R- Restricted entry
S- Service motive
1. Well defined body of knowledge:- All professions are based on a well-defined body
of knowledge. At present management is also having a systematic body of
knowledge ,and well-defined principles. Nowdays, there are large number business,
schools and institutions and also large number of books of management are
available. For example:- IMM Ahmadabad is a well-known institute which provide
various management courses. Such as MBA.
2. Ethical code of conduct:- All professions are bound by code of conduct. In order to
regulate the activities of the manager AIMA (All India Management Association) has
lade down code of conduct to be followed by compulsion for managers to follow
them.
3. Professional Association:- All professionals are associated to a professional
association which regulate entry, provide certificate of practice and lay down code of
conduct. For example:- All advocates have to be the member of Bar of Council
compulsory. Similarly AIMA has been established for managers but its not
compulsory to be its member.
4. Restricted Entry:- The entry to a profession is restricted through an examination. In
the same manner there is an entrance exam for management schools and institutes.
But there is no restriction on anyone being appointed as manager. Irrespective of
education or qualification i.e on the basis of experience.
5. Service Motive:- The basic motive of a profession is to provide service to society.
Through the main motive of management is to earn profit but it also fulfills the social
responsibility by providing good quality goods at reasonable price, by providing
employment opportunities especially for the weaker section of society.
So, the above points show that at present management is not a full fledged profession
as law or medical. So, e can say management is an inexact profession.
Coordination :- It is a force that integrates all the functions of management
coordination is an orderly arrangement balance of group efforts to maintain harmony
among individuals efforts towards the accomplishment of common goods of an
organisation.
It is also called the assens of management.

Nature/Characteristic/feature:-
C- Continuous process
U- Ensures unity of action
E- Integrates group efforts
D- Deliberate function
P- Pervasive Function
R- Responsibilities of all

Continuous Process:- Coordination is not one time function. But a continuous process.
It begins at planning stage & continuous till controlling.
Ensures unity of Action:- Coordination is not a one time function of all the
departments and ensures that all activities have a common purpose to achieve goals &
targets of the organisation.
Integrates group efforts:- Coordination gives a common direction to a group efforts to
ensure that the work is perform according to the plans. This need arises because people
working in the organisation have different background and style of working.
 Coordination is a Deliberate function:- A manager has to coordinate tha efforts of
different people in a deliberate manner. It does not occur spontaneously or randomly.
Coordination is all pervasive function:- Coordination is required at all levels of
management & in all departments . There should be a proper coordination between
purchase department , production department ,finance department etc to achieve the
goals and targets of the organization.

Importance of coordination:-
 Growth in size
 Functional differentiation
 Specialization
Growth in size:- Growth in size with increase in size of organisation, number of employees
also rises. Individual come from different background with difference in interest, habits ,
work and goals. At times it may become difficult to integrate their efforts and activities.
It ensures that all individuals work towards the common goal of the organisation.
Therefore , for organizational efficiency coordination helps to harmonize individual goals
and organizational goals.
Functional Differentiation:- In an organizational, activities and functions are frequently
divided into departments, division or sections. All these departments may have their own
objectives, policies and their own style of working.
All department aims to achieve its own objective in isolation from others. It often leads to
clash of intereots between the various departments.
However, all department and individuals are interdependent and activity of each
department needs to be focused on attainment of common organizational goals.
Coordination helps in synchronization of activities of different departments. So, that they
proceed together in a single direction. Instead of working as independent units.
Specialization:- Due to increasing complexities of modern techno logy and diversities of
task a number of specialist are hired.
Specialist usually think that they only are qualified to evaluate, judge and decide
accordingly to their professional criteria.
They do not advise or suggestions from others in matters pertaining to their area of
specialilsation. It often leads to conflict among different specialist as well as others in the
organisation.
Coordination helps to reconcile the differences in approach, interest or opinion of the
specialist .

Impotance of management

1 Management help in achieving group goals: Management is required not for itself but for
achieving the goals of organisation.
2.Management increases efficiency : The aim of manager is to reduce cost and increase
productivity through better Planning, Organising , Staffing , Directing And Controlling.
3.Management creates dynamic organisation : business environment keeps on changing
continuously , so in order to be successful management must change its goal and plans,
policy ets. According to the need of environment .
For example- Maruti suzuki brought many new changes in its car to face competition from
foreign automobile companies.
4. Management help in achieving personal objectives: Through motivation and
leadership the management helps individual to develop team spirit, cooperation and
commitment to group success.
5. Management helps in development of society : It helps to provide good quality
products , creates employment opportunities etc for the developmet of society.
LEVELS OF MANAGEMENT
1. TOP MANAGEMENT
2. MIDDLE MANAGEMENT
3. SUPERVISORY OR OPERATIONAL MANAGEMENT

TOP MANAGEMENT
1.They are the senior most exectuvies of the organisation . They are usually referred
to as the chairman , chief executive officer, president and vice president.
2. They formulate overall organizational goals and strategies for their achievement.
3.They are responsible for welfare and survival of the organisation.

Middle Management
1 They act as a link between top and lower level managers. They are usually known
as division heads , operation manager or plant superintendent .

2.Middle management is responsible for implementing and controlling plans and

strategies developed by top management.
3. They are responsible for activities of first line management
Supervisory or Operational Management
1. Foremen and supervisors comprise the Lower Level in the organisation.
2. Supervisory Management plays a very important role in the organisation since they
interact with the actual workforce and pass on instructions of middle management to
the workers.
3. The quantity and quality of output depend upon the hard work, discipline and loyality
of workers

Chapter-2
Principles of Management
Principles of management are broad and general guidelines for decision making and
behaviors they can be used for establishing code of conduct in work place.
According to knootz O Donnel , management principles are fundamental truth of general
validity which have the value in predicting the result of management action.
Nature of management principles:-
Cause & effect relationship
Contingent
Flexible
Mainly Behavioral
Formed by practice &experimentation
Universal Applicability
General guidelines