BUSINESS STUDIES XII PDF

BUSI NESS STUDI ES ~CADI PESHARORA CONTENTS 1.NATUREANDSI GNI FICANCEOFMANAGEMENT 2.PRI NCI PLESOFMANAGEMENT 3.BUSI NESSENVI RONMNET 4.PLANNI NG 5.ORGANI ZING 6.STAFFI NG 7.DI REC...

BUSI NESS STUDI ES ~CADI PESHARORA CONTENTS 1.NATUREANDSI GNI FICANCEOFMANAGEMENT 2.PRI NCI PLESOFMANAGEMENT 3.BUSI NESSENVI RONMNET 4.PLANNI NG 5.ORGANI ZING 6.STAFFI NG 7.DI RECTI NG 8.CONTROLLI NG 9.FI NANCI ALMANAGEMENT 10.FI NANCI ALMARKETS  11.MARKETI NGMANAGEMENT 12.CONSUMERPROTECTI ON CHAPTER- 1 NATUREANDSI GNI FICANCEOFMANAGEMENT Meani ng Managementcanbedefi nedasapr ocessofget ti ngt hingsdonewi tht heai m ofachi evi nggoal s ef fect ivel yandeff ici ent ly.  Process: Itmeansthepri mar yf unct ionsoracti vit iesthatmanagementper for mstoget thi ngsdone.Thesefunct ionsar eplanni ng,organi zing,st aff ing, dir ect ingandcont rol l ing.  Eff ecti veness: eff ect ivenessi sconcernedwi thr ightt ask, compl eti ngact ivi ti esand achi evi nggoals.I tai msatendr esul ts.  Eff ici ency :Itmeansdoingthet askcor rect lywi thmi nimum cost ,byusi ngl essr esour ce l ikemoney,mater ial s,equi pmentandpeopl e. Basi s Ef fi ciency Ef fect iveness Meani ng I tmeansdoi ngthetaskcor rect ly I tmeansachi evi ngt hepr edet ermi ned wi thmini mum cost. goal sont ime. Pur pose Mi nimum wast e Achi evet argetont ime Focus Means Ends Char act eri sti csofmanagement 1. Goal ori ent edpr ocess Theprimaryai m ofmanagementistoachievetheorgani zat ionalgoal.Thesegoal smaybe economicorsoci al.Managementint egrat est heef fort sofdiff erenti ndivi dual sint he organi zat iontowar dsachievi ngthesegoals.Thesuccessoforgani zati onismeasuredbyext ent towhichtheest abli shedgoal sareachieved. 2. Al lper vasi ve Managementi suniver sal lyappl iedinall typesofor gani zationswhethereconomi c, pol i tical or soci al.Theut i li zati onofmanagementi snotrest ri ctedt oonl yprof it -makingfi rmsbutalso appl icableinnon-profi tmakingorgani zati onsli keNGO’s,chari tabl etrust s,government hospit als,orphanage’set c.moreover, ourhouseneedtobemanagedpr oper ly. 3. Mul ti dimensi onal Managementi sacompl exact ivi tywhi chhast hreemai ndi mensi ons.Thesear e:  Managementofwor k:Al lorgani zati onsexi sttoper for m somet askorwork. Managementtransl atestheworkintermsofgoal stobeachievedandassignst he meanstoachievethesegoals.Managementmakessur ethattheworkisbeingcar ri ed outef fect ivel yandef f ici ent ly.  Managementofpeopl e:Humanr esourcesorpeoplearet hemostv aluableassetofan organizat ion.Withthehel pofeffi cientemployeesanor ganizat ioncancompet ewith othersbecauset woor ganizat ionshavesamet echnol ogicalandphy sicalresourcesbut nothumanr esourcesduet othefactthatmostoft heempl oyeesconsi derdiff erent ty pesofmi ndandt hinki ng.  Managementofoperati ons: I nordert osur vi veandgroweachor ganizati onhasto prov idegoodsorser v i ces.Thisrequi resaproducti oninwhichinputsar econv ert edinto desi redoutput.Oper ationsaretheactiv iti esofproduct ionprocesseslikebuyi nginput s, conver ti ngthem i ntofinishedgoods. 4. Cont inuouspr ocess Managementisanongoingornev erendingact ivi ty.Managementgoesonwi t houtbr eaksor gaps.I tinv olv esconti nuoushandl ingsofprobl emsandi ssues.Al lthef unct ionsof managementareper formedbyallthemanagersatall thetimes. 5. Gr oupact ivi ty Managementi sat eam workratherthanindi vidualef fort.Itr eplaces‘ I’ with‘ we’.Anor gani zat ion consi stsofdiverseindivi dual swi thdiver seneeds.Eachmemberj oi nstheorganizati onf or di ffer entpurpose.But ,asamemberoft heorganizat ion, theywor kt owardsfulf il lingthe commonor ganizationalgoal.Themanagementcan’ tbeperfor medi ni solat ion. 6. Dy nami cfunct ion Managementi sadynamicfuncti onasi tadaptsit sel ft othechangingenvir onment.An organizati oninter actswi thitsexternal env i ronment,whichconsistofvari oussoci al,economi c, technologi cal , l egalandpoli ti calfactor s.Inordertobesuccessful,anorgani zat ionmustchange i tselfanditsgoalsaccor dingtotheneedsoft heenv ironment. 7. I ntangi ble/ inv isi ble/ unseenf orce Managementcannotbeseenbuti tspr esencecanbefel twhentarget sareachi evedaccor ding t oplans, employeesarehappyandsat isf iedandt her eisorder li nessinst eadofchaos. Obj ect ivesofmanagement Objecti vesaret heendsorgoal stowardswhichtheact ivi ti esoft hebusinessar edirect edand thestandar dsagai nstwhi chtheperfor manceismeasured.Managementhastoachiev eal lit s object ivesi naneff ecti veandeff ici entmanner. A.Or gani zat ionalobj ect ives Theseobject ivesaret hemainobjecti ves,whicharerequi redtoachi evetheeconomicobj ect ives oftheorgani zati on.Themanagerstryt odev elopandachieveki ndsofobject ivesi nall managementar easwhi chleadtoreducti onincostsandbr i ngmaximum prosperi tyf or organi zati on.  Survi val :thebasicobjecti veofanyor ganizat ioni ssurv ival.Managementmuststri vet o ensuret hesur vi valoforganizati on.I nor dert osurvi ve,anorgani zat ionmustear n enoughrevenuestocov ercosts.  Profi t:Managementhast oensur ethatthebusinessmakesreasonableprof it s,whichis anincent ivefort hecontinuedsuccessf uloperati onofthecompany.Prof iti sessenti alto meetthecostofbusinessandalsocoverthebusinessri sk.  Growt h: i tisimport antforthebusinessorganizat iontogrowandexpandt hei racti vi ti es. Toremaininthemar ket, managementmustexpl oitf ull ythegrowthpot ent ial ofthe or ganizati on.Growthofthebusinesscanbemeasur edintermsofincreasein pr oduction,i ncr easei nnumberofpr oduct s,salestur nover,capi tal investmentetc.  B.Soci alobj ect ives Soci alobj ecti vesoft heor ganizat ioninv olveconsi stent lycr eati ngbenef it soreconomi cvalue forv ari ousconstit uentsofthesociet y.Busi nessorgani zati onsaret hepartoft hesoci ety.The mainsoci alobject ivesoforgani zati onare:  Conser vat ionofnat ural resour ces  Usi ngenv ironmentf ri endl ymet hodsofpr oduct ion  Pr ovi dingf inanci alsuppor ttocommuni ty  Pr ovi dingbasi cameni ti esl i keschool sandcr èchest oempl oyees  Gener ati ngempl oymentoppor tuni ti est othedi sadv ant agedsect ionsoft hesoci ety.  Cont ri but iont owar dsnecessar yci vi cact ivi ti es.  Pr ovi dingqual i typr oduct satr easonabl epr ices.  Or gani zi ngeducat ionandheal thpr ogr ams.  Honestandpr omptpay mentoft axest othegov ernment. C.Per sonalori ndi vi dualobj ect ives Personalobjecti vesar erel atedtotheempl oyeesoftheor ganizat ion.Asempl oyeesareoneof themostv aluabl er esourcesofeveryorganizati on,sati sfacti onoft hei robjectiv esi smost i mpor tantbecauseasat i sfi edworkf or cecont r ibut emaxi mum f ortheorganizati on.Inan organi zationdiff erenttypesofpersonalit iescomesf rom diff erentbackgrounds, cul tur es, experi encesandobj ecti ves.Fol l owi ngarethemai nobjecti vesofmanagement :  Compet it ivesal aryandper ks  Peerr ecogni ti on   Soci alr ecogni ti on  Pr ovi dingj obsecur it y  Recogni ti onofmer it ori ouswor k  Hy gieni candgoodwor kingcondi ti ons  Oppor tuni ti esf ort rai ning, per sonal growt handdev elopment I mpor tanceofmanagement Abusinessor ganizat ionr isest othetopbecauseofit squal it yofmanagement.Ont heot her hand, lackofpropermanagementr esul tsinwastageoft ime,moneyandef for ts. 1.Achi evi nggr oupgoal s Managementtr iestoreconcil etheindi vidualobj ect iveswit hthegoal softheor gani zati on.The taskoft hemanageristodirecttheeff ortsofall theindi vi dual sinthecommondir ect ionof accompli shi ngorgani zati onal goal s. 2.I ncr easesef fi ciency Themai nmot i veofamanagerist oreducecostandimproveproducti vit ywithproperut il izat ion ofresourcesandel iminatewastage.Managementalwaysf ocustobri ngeffi ciencyand eff ectiv enessinacti vi tiesthr oughbet t erpl anning,or gani zing,staf fi ng,dir ect ingandcontroll i ng. 3.Cr eat esady nami cor gani zat ion Al lbusinessorgani zationsoperatei naconst antl ychangingenv ironment.Inordertosurvi veand gr ow, t heor gani zat ionhast oadoptit selfaccordi ngtotheneedsoft heenvir onment. Employeesgeneral lyresistt ochanges.Managementhel pspeopletoimplementt hesechanges sothattheorgani zati oni sabletomaint ainitscompeti tiv eedge. 4.Achi evi ngper sonalobj ect ives Managementnotonl yhel psinaccompl i shi ngtheorgani zati ongoal sbutalsotheindi vi dual goalsoftheemployees.Wit ht hehel pofmot i vat ionandleader shi ptechni ques,management hel psindivi dualstodevel opteam spi rit ,cooper ati onandcommi tmentet c.thathel pthem t o att ainthei rpersonalobj ect ives. 5.Dev elopmentofsoci ety Whileachi evi ngthedevelopmentoforganizat ion,managementalsoaimstodev el opsocietyby gi vingdueimport ancetosocialobl igat ions.Effect ivemanagementimprovesli vingstandar dof peoplei nthesociet ybygenerati ngempl oymentoppor t uni ties, prov idi ngbetterquali tygoodsat areasonabl epri ce,prov idingf airwagest oworkers,adopt ingnewtechnol ogy,protect ing env ironmentf rom get ti ngpol l uted, incr easi ngt heweal thoft henat ionet c. Managementasasci ence 1.Sy stemat icbodyofknowl edge Scienceisasyst ematicbodyofknowl edgewhichi sdevelopedaf t eryear sofresear chand experiment ati on.Li kescience, managementi salsoasystematizedbodyofknowledget hathas beendev el opedoveraperi odofti mebymanagementthinkers.So,thi sfeat ureofscienceis presentinmanagement. 2.Pr inci plesbasedonexper iment sandobser vat ion Thescienti fi cpr incipl esarederi vedthroughr epeat edobserv ati onsandexperi mentsunder cont roll edcondi tions.Theresul tofeachexper imentcanbever if iedaddef ini teout comescan bepredict ed. Simil arly ,managementpri nci pleshav ebeendevel opedoveraper i odofti meandarebasedon observati onsandexper iment si ndi fferentt ypesoforgani zat ions.Butt hesepri nci plesdeal with humanbehav i orwhichi sunpredict able.So,thi schar acter ist icisnotpr esenti nmanagement. 3.Uni ver salv ali dit y Sci enti fi cpr i ncipl eshav euniver salv ali dit yandcanbeappli edinal lsi tuat ionsandatal lti mes. Fori nstance,thel awofgrav itat ioni sappli cabl einal lcount ri es. Thepr i ncipl esofmanagementareal souniversali nnaturebutt hepri nci plesofmanagement arenotexactli kescient if icpr inci plessot heirappl icat ionandusei snotuniver sal.So,t his character ist icofsci encedoesnotf ul lyapplyincaseofmanagement. Concl usi on:oncomparingthecharacteri sti cofsci encewi t hmanagement , wecanconcludet hat managementcannotbeconsider edaspur eorper fectoraccur atesci enceli kephy sicsor chemi str y.Buti tisaninexactorsocialsci ence. Managementasanar t 1.Exi stenceoft heor eti calknowl edge Arti sbasedonexist enceofsometheor eti calknowledgeofconcept sandpri ncipl es.I n managementtoo,t herei salotofl i terat ureav ailabl einvari ousareasofmanagement. so, thi s feat urei spresenti nmanagement. 2.Per sonal i zedappl i cat ion Ar tisapersonali zedconceptasever yoneappli estheoret icalknowledgeinhisownpersonal way.Ever yart istworksaccordi ngtohisownpersonalsty le.Thischaract eri sti cofartisal so pr esentinmanagementasev erymanagerhashi sownuni quest y leofmanagi ngt hingsand peopl e,al thoughal lmanager slear nsamemanagementt heor iesandpr inci ples. 3.Basedonpr act iceandcr eat ivi ty Practi cemakesamanper f ect.Thear ti strequi resconstantpract iceofarttoobt ai nexcell ence andper fect ion.Artcanbeimpr ovedwi t hthehel pofregularpr acti ce.Everyarthasanelement ofcreativi tyandanar ti stuseshisski l l sandst yletoproducesomet hi ngthathadnotexi st ed before.Thisfeatureofarti salsopr esentinmanagement.Agoodmanagerwor ksthr ougha combi nati onofr egul arpracti ce,creati vit y,imaginati on,i niti ati veandinnovati on. Conclusion:Oncomparingthecharact eri sti csofar twi thmanagementwefi ndal lthe characteri sti csofartar epr esenti nmanagementsowecal lmanagementasanar tofget ti ng thi ngsdonet hroughpeople. Managementasapr ofessi on 1.Wel ldef inedbodyofknowl edge Allprofessi onsarebasedonawel l- def inedbodyofknowl edgethatcanbeacquiredt hr ough trai ningandinstr uctions.Si mil arl y,i nmanagemental sothereisspeciali zedknowledgewhichi s taughtinuniver sit iesandmanagementi nst it utes.So,t hisfeat ureofpr ofessi oni spr esenti n management. 2.Rest ri ctedent ry Noonecanent eraprofessionwit houtgoingthroughanexami nati onorthr oughacquiringan educati onaldegreewhereasther eisnor est ri cti ononappoi ntmentofmanager,i rrespecti veof theeducati onalqual if icati onspossessedbyhim.Butnowmostoft hecompani espr eferto appointmanagersonl ywi thMBAdegr ee.Sopresentl y,t hischaracter ist ici snotappli cableto themanagementbutv erysoonitwil lbeincl uded. 3.Pr ofessi onalassoci ati on Allprofessionsareassociat edt oastatutor yassoci ati onorinst it uti onwhichregulat esentr yin theprof essi on,issuescer tif icat eofpr acti ceandenfor cesacodeofconduct.Present ly, thi s featureofpr of essionisnotpresenti nmanagementasi ti snotmandat oryforamanagert obea memberofanymanagementassoci ation. 4.Ser vicemot ive Themai nai m ofpr ofessi oni stoser vet hecl i ent swi thdedi cat ionwher easmai nmot iveof managementist oachieveor ganizat ionalgoalwhichisgener all yprofi tmaximizati on.I norderto sur viv einthecompet it iveenvi ronment,anorganizati onhastofulf il li tssoci alobli gati onalong wit heconomicobj ect ives.Sopresentl y,t hisfeat ur eofpr ofessi onisnotcentpercentpr esenti n management. 5.Et hicalcodeofconduct Ev eryprofessi onisregul atedbyacodeofconductwhichhast obefol l owedbyever y pr ofessi onal.Thecodeofconductmeansrulesandregul ati onsframedtogui det hebehav iorof pr ofessi onals.Pr esentl y,t hisfeat ureofpr ofessi onisnotpresenti nmanagement. Conclusi on:Onthebasi sofabovedi scussi on,wecansaythatmanagementi smovi ngf asti n thedi recti onofbecomingaprof essi onbutpresent lyi tcannotbeconsi der edasaf ull -f ledged prof ession. Lev elsofmanagement Lev elsofmanagementrefert oali neofdemarcat ionbet weenv ari ousmanager ial posi ti onsi n anorgani zat ion.Thet hreemainl evel sofmanagementare: 1.Topmanagement Toplevelmanagementofacompanyconsi st soft heseniormostexecuti vesoftheorganizat ion. Topleveli ncl udesBoardofdirector s,managi ngdi r ector s, general manager, Chiefexecuti ve offi cer( CEO),ChiefFi nanci aloffi cer(CFO) ,ChiefOperat ingOf fi cer(COO) ,Presi dent ,Vice- presi dent, chai rmanandsoon. Fol l owi ngar ethemai nfunct ionsoft opmanagement :  Thi slev elest abl i shest hegoal sofanent erpr ise.  Thi slev elf ormul atesov eral lor gani zat ional goal sandst rat egi esf ort hei rachi evement.  Thi slev eli sresponsi blef ort hewel far eandsur viv aloft heor gani zat ion.  Theyar eresponsi blef oral lthebusi nessact ivi ti esandt hei rov eral li mpactont hesoci ety.  Theyar eal sohel dresponsi blef ort heov eral lsuccessorf ail ureoft heent erpr ise.  Thet oplev elmanagementarr angesr esour cessuchasmen, money ,machi ne, mat eri al et ctoachi evedesi redobj ect ives.  Thet opl evel managementappoi ntst heexecut ivesf ort hemi ddl elev el.  2.Mi ddl elev elmanagement Middl elevelconsist sofdepart mentalheadsli kepurchasedepart menthead,sal esdepar tment head, marketingmanager,fi nancemanager,executi veoff icer s,pl antsuper int endent ,per sonnel manageretc.fol lowingar ethemainfuncti onsoft hi slev el:  Toi nterpretandexpl aint hepl ansandpol i ciesf ormul atedbyt opl evel managementt o l owerlevel.  Theyar eresponsi blef ori mpl ement ingandcont rol l ingpl ansandst rat egi esf ramedby topmanagement.  Theyensur ethatt hei rdepar tmenthasnecessar yper sonnel.  Tomotiv ateempl oyeesf orhi gherpr oduct ivi tyandr ewar dingt hem f ort hei rbet ter per for mance.  Assignnecessar yduti esandr esponsi bil i tiest othest affandal soar rangeneedf ul resour cesforthesame.  Repor ti ngtheper for mance, probl ems, suggest ions, andot heri mpor tantdat atot het op management.  Recommendi ngneworr evi sedpol i ciest othet opmanagementt oimpr oveper for mance. 3.Super visor yoroper ati onalmanagement Operat ional managementconsist sofcl erk, super visor s,i nspect ors,account soff icer s,sub- depart mentalact ivi ti eset c.Themanager satthi slevelar eindir ectcontactwi thworker s.  Pl anni ngdayt odayact ivi ti esandi ssui ngor der sandi nst ruct ionst owor ker s.  Ar rangi ngmachi ner y,mat eri alt ool set c.f orwor ker s.  Theyensur epr operandsaf ewor kingcondi ti onsofwor ker s.   Theyguideandhel pthemi ddl elev elmanagementi nsel ect ion, trai ning, placementand promoti onofemployees.  Theyencour agesthewor ker stotakei nit iat ivesandwel comet hei rsuggest ionsand rewr dthem fort heirsuggest ions.  Theysendr epor tsonwor kper for mancet othehi gherl evel management. Funct ionsofmanagement 1.Pl anni ng Planni ngi sthebasi cfunct ionofmanagement.Itdeter minesinadvancewhattodo,howtodoi t, whentodo,andbywhom.Iti slooki ngaheadandprepari ngforthefut ure.I tbr idgesthegap betweenwherewear eandwher ewewanttoreach. 2.Or gani zi ng Theor ganizi ngfuncti onexaminestheacti vit iesandresour cesrequi redtoexecutetheplan.I t decideswhowi lldoapart icul artask,wher eitwillbedoneandwheni twil lbedone.Thusitis thefuncti onofassi gni ngduti es,groupi ngtasks,est abli shi ngauthor ityandall ocati ngresources requir edt ocarr youtaspecifi cplan. 3.St aff ing Staff ingmeansf i l lingupthev ar iousjobsintheorganizat ionwithcompetentpersonnel.Thi s funct ionisconcernedwithfi ndingtherightpersonfortheri ghtposit ionattheri ghttime.I t i nv ol vesacti vi ti esl i kerecrui tment,sel ection, placement,tr aini nganddev el opmentof employees. 4.Di rect ing Dir ecti ngistheprocessofi nst ruct ing, guidi ng,moti vat ing,andl eading,counsel i ngandcoaching oftheemployeesintheor gani zati onsothatthei ref for tsresul tinachievementofor gani zat ional obj ecti ves.  5.Cont rol l ing Thisi sthemanagementf uncti onofmonit oringorganizati onalper formancetowardsthe accompli shmentoforganizat ional goal s.I tinvol vesest abli shi ngstandar dsofper f ormance, measuri ngactualper formance,compar ingitwit hst andardsandtaki ngcorrect iveact ionift her e i sanydev i ati oninthesame. Coor dinat ion Meani ng Coordi nati onreferstosynchr onizingt heeffortsbyunify ing,int egrati ngandharmonizi ngthe acti vi ti esofdiff erentdepart ment sandindi vidual stowardst heachievementofcommon obj ecti ves.I tisthroughtheprocessofcoordinat ionthatamanagerensur estheorder ly arr angementofindivi dualandgroupeffort st oensur euni t yofactioninordertoachi eve commonobj ect ives. Char act eri sti cs 1.I ntegr atesgr oupef for ts Thereisnoneedf orcoor dinat ionwhenanindiv idualworksini solat ionwi thoutaf fect ing anyone’sfunct ioni ng.Butwhentwoormor epeopleworktoget hertoachi evecommongoals, thenthereisneedtocoordi natethei ref for tsincommondi rect ion. 2.Ensur esuni tyofact ion I tleadstouni tyofact iontowardstheorgani zat ional goal s.Itact sasthebindi ngf orcebetween depart mentsandensuresthatal lact ionsareai medatachievi ngthegoal softheorgani zat ions. 3.Cont inuouspr ocess Iti sanev erendingprocess.I tiscar ri edonbyal lthemanagersall theti me.It sneedi sfel tat eachandev erystepintheenter pri se.I tst art swi ththepl anningfunct ionandendswi tht he contr oll i ngf unction. 4.Per vasi vef unct ion Iti suniversali nnatur e.Iti sneededatal l thel evel s,inal lthedepar tmentsbecauseof i nterdependenceofvari ousacti vi ties.I ntheabsenceofcoordi nati on, therei sov er lappi ngand chaosinsteadofharmonyandintegrat ionofact ivi ti es.  5.Responsi bil i tyofal lmanager s Iti stheresponsi bil i tyofal lthemanagersi ntheor ganizat ion.Themanager sateachl evel coordi natethei ract ivi ti essoastoperf ormthei rduti eseff ectivel yandef fi cient ly. 6.Del i ber atef unct ion Amanagerhastocoordinat etheeffor tsofdif ferentpeopl einaconsciousanddel i ber ate manner.Cooper ati onintheabsenceofcoordi nationmayleadtowastedef f ortsand coor dinat ionwit houtcooperat ionmayleadtodissati sfact ionamongempl oyees. I mpor tance 1.Gr owt hinsi ze Theneedofcoor di nat ionincr easeswhentheorganizati ongr owsi nsi zebecauseinlarge organi zationt herei smor enumberofpeopleworking.Empl oyeescomefrom dif ferent backgrounds, theyhavedif fer entatt it udes, dif ferentstyl esofworki ng,di ff erentexperi encesand object ives. 2.Funct ionaldi ff erent iat ion Thefunct ionsofanor gani zati onarediv idedi ntodepart ments, div isi onsorsect ions.Eachuni t tri est oper f ormit smissi oninisol ati onfr om t heother s.So, theremayari seconfl ictbet ween them. 3.Speci ali zat ion I nmodernorgani zat ion, thereishighdegreeofspecial izat ion, ari singoutofthecomplext iesof moder ntechnol ogyanddiversi tyoftaskstobeperformed.Thati swhycoor dinat ioni sneeded t oavoi dconfli ctbet weenthespeci al i stsandtheothermember s. Coor dinat ion:Theessenceofmanagement  I nplanni ng,coordi nati onisrequi redbet weenthemast erpl anoft heor gani zat ionandt he pl ansofdif ferentdepar tmentsordiv isi ons.  I nor gani zing, coordi nat ioni sneededbet weenr esour cesofanent erpr iseandact ivi ti es t obeper formed.  I nstaf fi ng,coor dinat ionisneededbetweenski ll ofemployeesandj obsassi gnedt o t hem,betweeneff ici encyoftheemployeesandcompensati on.  I ndir ecti ng,coor dinat ioni srequi redamongsuper iorandsubor dinat es, bet weenor der s, i nst ruct ionsandsuggesti ons.  I ncont rol l ing, coor dinat ioni sneededbet weenpl annedst andar dsandact ual  per for mance.  Toplevel managersneedtocoor dinatewit hthei rsubor dinat est oensur ethatov eral l pol ici esfort heorgani zati onaredulycar ri edout.  Mi ddl elev elmanager scoor dinat ewi thbot hthet opl evel andl owerl evel manager s.  Operat ionall evelmanagementcoor dinat est heact ivi ti esofi tswor ker stoensur ethat workproceedsaccor dingtopl ans. Thus,i tcanbeconcl udedt hatcoordinat ionisconcer nedwit hal lthef uncti onsofmanagement andlev elsofmanagement.Ther efore,coordi nati oniscal l edast heessenceofmanagement. CHAPTER–2 PRI NCI PLESOFMANAGEMENT Meani ng Apr i nci pleisastat ementwhichref lect sthefundament altr uthaboutsomephenomenonbased oncauseandef f ectrel ati onshi p.Pr inci plesofmanagementarebr oadandgeneral guidel i nes fordeci sion- makingandbehavi orofmanagers. Feat ures 1.Uni ver salappl i cabi l ity Themanagementpr i nci plesareuniver salinnature.Thesepri nciplesareuni versal lyappli cabl e toallt ypesoforgani zat ionsi. e.busi nessaswel l asnon- busi ness.Iti sappli cableatalll evel s andatallt imes.However,t heextentoftheirappl icabi li tymayv aryaspernatureandsizeofthe organi zati on. 2.Gener algui del i nes Thepr i nciplesofmanagementactonl yasguidel i nesfordeci sion- makingandaction.Howev er , theydonotpr ovi dereadymadesoluti onstoallmanager ialpr oblems.Thi sissobecausei nreal business,situat ionsareverycomplexanddynamicandarearesultofmanyfact ors.The i mpor tanceofpr inci plescannotbeunder est imatedbecauseevenasmal l guidel i nehel psto solveagiv enproblem. 3.Pr act iceandexper iment ati on Theprinci plesofmanagementar efor medonl yaft erdeepandthoroughresearchwork.They arenotdevelopedautomat icall yortheyarenotbaseduponpersonalfeel ingofanyperson. Theyareder i vedonthebasisofobservat ionandanaly sisofevent swhi chmanagerfacein actual practiceandal soafterconducti ngexperi mentalst udies. 4.Fl exi ble Thesearefl exibl einnat urei.e.t heycanbemodi f iedbythemanager saccordi ngt othegiv en si tuat ion.Thesepri nci plescanbeut i l izedunderv ariedcondi ti onsi ndif fer entway s.These pri nci plesarenotastat icorrigi dstatement. 5.Mai nlybehav ior al Managementprinci plesaremainl ybehaviorali nnaturesincetheyaredev i sedtoinfl uence behavi orofhumanbei ngs.Mor eover , t hesepr i ncipl esenableabetterunderstandi ngofthe rel ati onshi pbetweenhumanandphy sicalresourcesinachiev ingorganizati onalgoal s.Butthese pri nci plesmaynotbringthedesir edresul tduet ocompl exandunpredictabl enatureofhuman behavi or. 6.Causeandef fectr elat ionshi ps Managementpr i ncipl esestabl i shar el at i onshi pbet weencauseandef f ectsothattheycanbe usedinsimil arsit uati onsinalargenumberofcases.Whenapr i ncipl eisappliedtoapar t icul ar si tuat ion,i sknownascauseandt heresultofappli cati onofthepri nciplei scalledeff ect.These pri nci plestel lthemanagersifaparti cularpri ncipl eisappli edinagivensituat ion,whatmaybe i tsli kelyeff ect. 7.Cont ingent Managementpr i ncipl esarenotabsol uteorstat icinnatur e.Theiruseiscont ingentor dependentupontheprevai li ngsit uati onataparticul arpointoft ime.Theymustbeappl i edv ery caref ull ydependingupontheorgani zati onalr equirementsandsituat ional demands. I mpor tance 1. Usef uli nsi ghti ntor eal i ty Theseprincipl eshel pinincreasingmanager i aleff ici encybyaddi ngt ot heirknowledgeand abi li tytounder st andt hev arioussituati ons.Thesepr i ncipl esguidemanager stotakeri ght deci sionatt heri ghtt i me, byimprovingtheirknowledge,abi li tyandunder standi ngofmanageri al abi li ti es.Thesepr i nciplesenablemanager stolearnfrom t heirpastmistakesandt osaveti me bysolvi ngr ecurr ingpr oblemsqui ckly. 2. Opt imum ut il izat ionofr esour ces Thesepri nciplesaim atopt imum ut il izati onofallty pesofresourcesfort heachi