Nature and Significance of Management

Business Studies 2024-25: Revised Question Bank Second P.U.C

Chapter 1: Nature and Significance of Management

• Management involves planning, staffing, cooperating, and controlling.
• Earning profits, providing employment, and policy are objectives of management rather than growth of the organization
• Policy formulation is a top-level management function.
• Successful management balances timely goal achievement and minimizing costs.
• Management as a profession contains a well-defined body of knowledge and an ethical code.
• Increasing sales by 30% indicates a goal-oriented management approach for Hemangi enterprises
• Coordination is the essence of management.
• Efficiency refers to completing tasks correctly with minimal cost.
• Management is both an art and a science.
• Providing schools and hospitals aligns with management's social objectives.
• Management aims at achieving goals.
• Planning is the foundation for managerial functions.
• Top-level management consists of senior executives.
• Middle management links top and lower-level management.
• Coordination ensures action unity.
• Effectiveness: Doing the right task
• Organisation objective: Survival of Business

Levels of Management

• Management exists as a three-tiered activity
• Top level: Consisting of the Chairman, Board of Directors, Managing Directors, General Manager, President, Vice president, CEO, CFO
• Middle level: Consisting of Purchase Manager, Production Manager, Sales manager
• Operational level: Foremen, Supervisors
• Top-level management determines organizational goals, formulates policies, and coordinates activities.
• Middle management oversees functional departments, links top and lower levels, implements top management's plans.
• Operational-level management consists of supervisors and foremen who get work done by workers and act as links between middle management and workers.

Characteristics of Management

• Management is a goal-oriented process focused on achieving specific, clear objectives.
• Management is all-pervasive across economic, social, and political organizations.
• Management is multi-dimensional, overseeing work, people, and operations,
• Management is a continuous process, involving ongoing planning, organizing, staffing, directing, and controlling.
• Management is a group activity that requires managers and subordinates to work as a team to achieve goals
• Management is a dynamic function that adjusts to the changing environment.
• Management is an intangible force whose impact is seen in better results.

Objectives of Management

• Survival: Covering the cost and risk of business practices
• Profit is essential for covering costs and risks.
• Growth includes expanding the organisation activities and operations to new markets
• Social objectives include protecting the environment and providing employment.
• Personal objectives include satisfying financial needs of employees through salaries and incentives.
• High-level objectives include creating opportunities for employees

Management as an Art and Science

• Art: Eraser Pencil Geometry box
• Existence of theoretical knowledge: Uses study material for the theoretical knowledge
• Personalised applications: Managers need to be able to adapt to different problems depending on knowledge and experience
• Goal oriented: Management is directed toward achieving a goal or object
• Based on practice and creativity: The more the manager put learned skills to improve, the better they get
• Science consists of CUPS
• Cause and effect relationship: They allow effect relationships dealing with different scenarios in the organisation
• Universal validity: Many principals are the same in all operations. Example: Unity of command
• Principals based on experimentation: They go hand in hand
• Systematised body of knowledge: There are set principals for knowledge. Example: Motivation theory
• Both management has an art science

Co-ordination & Meaning of Management

• Co-ordination: IP CURD
• Integrates group efforts: Groups working different roles that all contribute to the goal
• All-pervaise function: It is need at all levels of managements working together in sync
• Continuous process: No ending, Begins at planning until controlling is finished
• Ensures Unity of action: Acting as a binder so everyone achieves goals together
• Responsibility of all managers is needed.
• Deliberate Function: Making sure people work together at being effective.

Functions of Management

• Planning: Deciding in advance what to do, how to do it, and who is going to do it.
• Organising: Grouping tasks, assigning duties, arranging resources, and establishing authority.
• Staffing: Finding the right people for the right job and Main purpose is to hire qualified personnel
• Directing: Refers to directing the process of communication and leadership, and helping people to achieve
• Controlling: Assessing if all activities are going as planned.

Chapter 2: Principles of Management

• The principals of management are flexible and behavioural
• Principles of management are formed by experience of managers not in a laboratory
• The principles of management are significant because of optimum utilisation of resources
• Henri Fayol was a Mining engineer
• Management should use science, not rule of thumb. Taylor does mention functional foremanship
• Management should use time study-
• Mental Revolution: It implies a change in attitude.

Fill in the Blanks

• FW Taylor is the Father of Scientific Management
• Just In Time is management developed on the basis of "principles of management"
• Fatigue study determines amount and frequency for the "rest" intervals.
• The Mental Revolution is change in attitude.
• Henri Fayol is the Father of General Management
• Order principle states there is a place for everything.

Short Answer Questions

• Taylor: Piece Wage System
• Time study: Well-defined Job
• Repair boss: Functional foremanship
• Kiran Mazumdar Shaw: Biocon Unity of Direction: One head for one plan
• Espirit De Corps: Team Spirit
• F.W Taylor talks about Standardization
• F.W Taylor talks about simplification eliminating uneccesary diversity of projects for saving costs
• Separation of planning and execution was advocated by F.W Taylor
• Functional foremanship is extended based on the principals of the division of work and specialisation to the shop floor
• Inspectors roles is to check the quality of work
• Objective of method study is one best way of doing a job
• Division of work. is better for smaller specialists
• 14 principles are used by Henri Fayol
• Single boss per employee is advocated by Fayol
• Gang Planks are used in emergencies
• Inisiative should be encouraged to develop improvements as made by Henri Fayol

Features of Principals of Management

• Universal Applicability: Can be applied to all types of businesses
• The Manager is a general guidline, no easy solutions
• Formed through practice: Principals is managed through experiments and many other things.
• Flexible: Principals are flexible by managed based on the current situation

Signifgance of Management

• Principles help managers fulfill responsibility of business
• flexible, Helps modification of any changes
• Help managers reduce issues, Helps more productivity.
• Bases for training, Help institute exams, MBA and BBA

Taylor's principals of mananagment

• There should be no conflict between managed and employees
• There is complete cooperation for management

Key management Principals

• The work should be spilt in small jobs
• Disciple is obedience to the organisation rules

Taylor and Fayol

• Taylor: Applicability is specialised, Focus is increasing productivity, Personal experience, practitioner
• Fayol: University

Chapter 3: Business Environment

• Employees are not a component of caracterizing the enviroment

Business environment

• Identify all best practices Coping with all changes The constitution

Liberalisation

Integration Economic

Demonetization

Tax Administration Dynamic nature Political

Technological

Uncertain Privatization External

Totality of external forces

Divestment Sale of shares

Economic Globalization

Integrating economy Liberalization No necessary restraints

Dynamic

Uncertainty Business environment has total external factors that business has no control over.

Key factors for sucess

• Economic, social and environmental

Chapter 4: Planning

• Planning involves setting ovectives
• Budget is standing plane
• Incoordination can disrupt objective.
• Setting objectives are first point

Marketing

Planning a dynamic view can be used for quick one use plan

• Planning means what do you say in advance

Key points

Planning is primary Method and ruled Rules Budget is a specific plan Setting objectives

Matching

Planning and primary Implementation : Action Strategy: Comprehensive Policies : General Planning : Vision

Standing:

Method Rules What is Planning

Examples:

Recruitment Methods

Principals and rules

What is budgetary

Limitations

Cannot change Time Costly

Features of planning

• Primary funtion Decision making

4, 5 & 6-

Step by step Budget

Chapter 5: Organisation

• Information organisation has more rise to rumours

Management

Organisation Functional organisation Internal organisaion

Matching

Decentralisation: Authority Authority: Right to command Informal org: Social Interaction Accountability: Answerable for the result scalar Chain: Formal

Questions

Organisation is important for business Optimum Change

7. and 8.

Effective expansion

Functions

structure

Divisional structure

The process in the long process

Delegation

Responsibilities cannot be delegated Delegate all of the tasks

Chapter 6: Staffing

1,D 2. B 3. A 4. A

Process of choosing among perspective job cannidates

Opportunites designed for all workers Introducing new employee Job Potation external source

Matching of management:

• ManPower
• External source
• internal source
• on the job/ off the job.
• Short answer

Main management concepts

Recuritnemtn Work, band,

Man power,

Recruitment and source The job Skill set Transfers

External

• Quality for help people with jobs Help provide many source To provide competitiveness

9., 10., 11., 12.

They help the organation The benifgits Hiring and help for all workers. Help the management

Chapter 7: Directing

• All of the above are key actions

Motive

Instructions Bonus Supervision Unify command direction. Motivation is the process and steps Leadership to influence

Communication,

Semantic Lack of good incentive

Matching questions

Supervision Financial incentives Non

Needs and help

One part

1. & 2.

The workers motivation The need on employees

Functions of the organisation

communication

Chapter 8: Directing

• Help the organisation achieve objective Forward function All levels

Quantifiables, the twin are inseparable

• twins. Corrective, Control is to control any operation

Matching

Help find first step The function Internal Key results

Key things here

They all the process The key points

The relationship of controlling and planning

Is looking forward and is looking backward Helps give better ideas

The point of limited contact from all factors

• limited external facrots. From many all over
• A high cost

Chapter 9: Managing Finances

• Business. to do what you want
• Max wealth is best

Quick notes

Running Budgeting

Capital structual analysis

Best interest

Working:

Investments needed.

Budgeting analysis

Long process Finances needed

Capital requirement:

High demand They all the process

Chapter 10: Marketing

• 1. 2., 3., 4., 5., 6., 7., 8.,
• all points all are good points to mention.

Matching key points

To set different operations.

Standardisation

the operation. is an asset.

###. Key management Consumer service The process

Management

The key services

9. What is your opinion 10. what is that

Consumer satisfaction

mass reach and high speed Brand the Advertising The key points

Key management facts:

1. Add support
2. Confused over
3. Quality
4. Bad taste

Key management Facts!

1. Discount
2. Give cash returns

Chapter 11: Consumer Products

• All 2019, what they need are here are some key -Social responsibility here. Exploit when is
• under weighted here Here

Which here.

• safety, To complain in courts This isn't a major reason

###Matching points!

• key things Key facts

Short and key results

Approach Here, what Here, how