(Subject Notes) Business Studies

Nature & Significance Of Management

Explain the term ”management” in brief?– 2 marks

Management is coordinating all the resources of an organization through the process of controlling, organising, motivating and planning (COMP) in order to achieve its goals. This process starts at the top and continues in more or less degree at every level of the organization.

State any two characteristic features of management?

Distinct activity:

• Management is a distinct activity, which consists of communicating, organizing, motivating, planning, leading, staffing, controlling, decision making, etc.

• It can be studied, experimented and practiced.

Intangible: Management is intangible i.e. it cannot be seen but it can be felt through the performance of the workers. Mismanagement if any is quickly noticed and is a sign of poor management. While efficient management reflects the efforts of the workers.

Explain briefly any two OBJECTIVES OF MANAGEMENT – 2 marks

Organizational objectives:

• The primary organizational objective of the management of any business should be to attain maximum output with minimum resources and least wastage.

• This generates high profits, reduces costs and maximizes prosperity.

Individual objectives:

• Each employee that joins an organization wants to satisfy his individual objectives, which means he would like to have good salary, develop his personality, get peer and social recognition. If his individual objectives are not satisfied, he will lose interest in his work and performance of organizational objectives may suffer.

• Hence while formulating corporate objectives, management should also consider individual objectives

Briefly explain MANAGEMENT AS A PROCESS. – 2 marks Marking scheme

• Management is regarded as a process because it consists of -

  • Setting up objectives for an enterprise; and

  • Taking a series of steps such as planning, coordinating, directing, organizing and staffing (PC-DOS) to ensure that these objectives are achieved.

• This process starts at the top and continues in more or less degree at every level of the organization.

“MANAGEMENT AS A GROUP has the responsibility of an enterprise”. Explain .– 2 marks

• Management as a GROUP refers to the Board of Directors or Executive Directors who are responsible for effectively managing the affairs of the business by guiding and controlling the work of other managers such as production, sales, finance, personnel, quality control managers, etc.

• This approach focuses on a team rather than individuals.

• This is because it is believed that management as a team can contribute more effectively and efficiently than an individual.

“Management is a learned DISCIPLINE”. Comment

• Discipline is a subject that can be studied, organized and taught. (SOT)

• It should meet the basic requirements such as:-

  • It should be acceptable

  • It should be capable of discovering knowledge, which can be verified, passed on to others and can be successfully applied.

• A large number of schools, colleges & universities have introduced management courses.

• It has got experts, thinkers and philosophers of the subject.

• These experts are devoted to impart their skill of the subject to learners of the discipline.

• They follow a code of conduct prescribed for them.

• As such we can conclude that management is a discipline

Explain in brief “MANAGEMENT AS AN ACTIVITY” – 2 marks

• Management is a human activity that (PC-DOS) plans, controls, directs and organizes the efforts of all employees in the best interest of the organization and society.

• For this the human and physical resources should be integrated in such a way that there is minimum waste of material, time and energy.

• It takes decisions on the following activities:

  • The goals of the organization

  • The activities to achieve the goals of the organization.

  • The people who will perform those activities of the organization.

  • The allocation of resources for the various activities of the organization.

  • It leads by doing oneself what it wants others to do; and

  • It directs the subordinates by showing & encouraging them to do things the right way.

Who are considered to be the operative management in an organization? State any two functions of lower level management –2 marks

• The first line/operative or low level management includes supervisors, foreman and Inspectors.

• They are a link between middle level management and workers
  They have the following functions (any 2 functions)

  • They represent the workers’ grievances before the management

  • They procure tools, materials required for the job

  • They assign duties to workers and guide them in handling their jobs

  • They prevent wastage of materials by negligent workers

Who are regarded as MIDDLE LEVEL MANAGEMENT in a business organisation? – 2 marks

• Middle management consists of departmental heads and other executive officers of different departments

• They execute the policies framed by the top management.

• They are a link between the top management and supervisory or lower level of management

State any two functions of middle level management – 2 marks

Their functions are as follows: (any two functions)

• They plan the operations of their department

• They prepare the organizational set up of their department.

• Find out suitable personnel and assign duties to them for execution of their department functions.

Your grandfather has retired as a director. At what level of management was he working? What functions do you think he was performing? State any two.

Or

Who are regarded as Top Management in a business organization? State any two functions of Top management? – 2 marks

Top management is the 3rd line of management, which consists of Chairman, Directors, Managing Director, General Manager and other top-level executives required to achieve the goals of the enterprise.

The functions of top management are:

• Determine the objectives of the enterprise.

• Frame the policies of the enterprise

What is meant by “Balancing” in coordination? – 2 marks

Or

State any two elements of coordination

The key elements of coordination are as follows: (BIT)

Balancing: The activities of one department must be properly balanced and supported by other departments in order to achieve optimum results.

Integration: It is the unification of all diverse group efforts, which are brought together to produce best possible results. This results in better performance of the firm.

Timing: The business activities should be planned in such a way that the functions of every employee and department are performed according to a time schedule.

What is administration – 2 marks

Administration means: (LIDS)

• Laying out broad programs, major projects, etc

• Identifying general purposes

• Determining policies

• Setting up major objectives

Administration is part of management. Comment? – 5 marks

• Some authors suggest that management is a wider concept than administration or administration is part of management.

• According to this view, management involves –

  • Responsibility to make policies

  • Responsibility for planning, organizing, directing, controlling & supervising (PC-DOS)

• Thus it is found that management begins with the administrative function at the top. As one moves down the levels of organization, managerial functions become more and more important.

Management and Administration mean the same thing” Explain this view – 5 marks

• Management and Administration are synonymous i.e. they are both identical and carry the same meaning.

• In practice, administration involves management and management involves administration. Both are complementary as well as supplementary to each other. Every officer has to perform both administrative and management functions at all levels.

• Both aim at achieving the desired goal of the business of maximising output at minimum cost and wastage.

“Administration comes first and management follows it” Comment. – 5 marks,

• Some authors suggest that administration is a wider concept than management or administration comes first and management follows it.

• According to this view,

  • Administration determines the policies while management executes those policies

  • Administration lays down the objectives of the organization while management has to direct the organization to operate under the broad policies laid down by administration in order to achieve those objectives.

Is management becoming a profession? Discuss in light of emerging trend?

Yes, management is by and large becoming a profession. This can be seen by referring to the following emerging trends in business:

1. All big companies appoint professional managers at all levels.

2. Many Indian companies take initiative to replace family members by professional mangers.

3. Proprietary managers are becoming more interested in acquiring latest knowledge and technique of management. They are sending their relatives abroad to do managerial course.
   In conclusion, it may be said that managers at the top level do not satisfy all the requirements of profession but management is becoming a profession.
   
   
   

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