BUSINESS STUDIES – CLASS 12

1. Introduction

1. Meaning of Management
   • Management is the process of getting things done with the aim of achieving goals effectively and efficiently.
   • It is a universal activity required in all types of organizations—business, non-business, government, hospitals, schools, NGOs, clubs, and households.
   • Management ensures that people work together toward a common objective by planning, organizing, staffing, directing and controlling.
2. Why Management is Needed
   • To guide people’s efforts, use resources wisely, reduce wastage, maintain order, and achieve coordinated results.
   • Helps organizations survive in a competitive and changing environment.
3. Management as a Discipline
   • Systematic knowledge with principles, concepts and theories.
   • Students learn these principles to become future managers.

2. Concept of Management

1. As a Process
   • Series of activities: planning → organizing → staffing → directing → controlling.
   • Continuous cycle to accomplish objectives.
2. As a Group of People
   • Managers at different levels (top/middle/lower) who guide others.
   • They hold authority and responsibility.
3. As a Discipline
   • Organized body of knowledge that can be taught and learnt.
4. Dynamic Activity
   • Management adjusts according to changes in technology, competition, and consumer needs.
5. Management = Achieving objectives effectively & efficiently
   • Effectiveness: completing tasks and achieving goals.
   • Efficiency: achieving goals with minimum cost and maximum productivity.

3. Characteristics of Management

1. Goal-oriented
   • Every managerial activity aims at achieving organizational goals.
2. Universal
   • Applicable in all types of organizations—business or non-business.
3. Continuous Process
   • Ongoing series of functions, without any fixed end.
4. Multidimensional
   • Involves:
     • Work management – activities
     • People management – motivating and directing
     • Operations management – production of goods/services
5. Group Activity
   • Involves coordinating efforts of many individuals.
6. Intangible Force
   • Cannot be seen but felt through results like increased productivity, better morale, and efficiency.
7. Dynamic Function
   • Adapts to technological, economic and social changes.
8. Science, Art, and Profession
   • Science: systematic knowledge, cause-effect relationship.
   • Art: requires creativity, experience, skill.
   • Profession: based on specialized knowledge, ethical code, professional bodies.

4. The Management Mantra from GE (General Electric)

(CBSE textbook reference–summary in easy points)

1. Jack Welch’s GE Philosophy
   • Empower people rather than control them.
   • Focus on simplicity and speed.
   • Encourage innovation and change.
2. Three essential practices from GE
   • Boundaryless Organization: remove barriers between departments.
   • Stretch Goals: set ambitious but achievable targets.
   • Work-Out Programs: open discussions to find quick solutions.
3. Learning for Students
   • Management should be flexible, people-centric, innovative and time-conscious.

5. Objectives of Management

A. Organizational (Economic) Objectives

1. Survival
   • Continue business operations in a competitive environment.
2. Profit Maximization
   • Essential for growth, expansion, innovation and rewards.
3. Growth
   • Increase in size, sales, market share, employees, product range, or technological capability.

B. Social Objectives

1. Supplying Quality Goods at Fair Prices
   • Ensures consumer satisfaction and ethical social contribution.
2. Fair Treatment of Employees
   • Reasonable wages, safety, and welfare.
3. Environment Protection
   • Pollution control, sustainable practices.
4. Contribution to Society
   • Schools, hospitals, donations, CSR activities.

C. Personal / Individual Objectives

1. Enhancing Employee Development
   • Training, skill-building, promotions.
2. Satisfaction of Needs
   • Monetary and non-monetary rewards.
3. Maintaining Healthy Relationships
   • Respect, recognition, motivational environment.

6. Importance of Management

1. Achieving Group Goals
   • Guides the efforts of people toward organizational objectives.
2. Efficiency & Effectiveness
   • Optimum use of resources to reduce wastage and increase productivity.
3. Creating a Dynamic Environment
   • Helps employees adapt to change through leadership and motivation.
4. Developing a Proper Organizational Structure
   • Clarifies roles, responsibilities and reporting relationships.
5. Reducing Costs & Increasing Productivity
   • Better utilization of manpower, machines and materials.
6. Innovation and Adaptability
   • Encourages new ideas, technologies and systematic problem-solving.
7. Encourages Team Spirit
   • Harmonizes individual goals with organizational goals.
8. Ensures Stability and Growth
   • Long-term success and survival of the business.

7. Nature of Management

1. Management as a Science

• Systematic body of knowledge
• Universal principles
• Cause and effect relationship
• Predictability
  However: management deals with human behaviour → exact universal applicability may vary.

2. Management as an Art

• Personal skills, creativity, innovation
• Practical knowledge and experience required
• Goal-oriented and application-based
• Continuous practice improves results

3. Management as a Profession

• Specialized knowledge
• Formal education (MBA, BBA)
• Code of conduct (professional ethics)
• Service motive
• Professional bodies (e.g., AIMA)
  Management is moving toward professionalism but not yet a full profession.

8. Levels of Management

1. Top Level Management
   • Examples: CEO, CFO, COO, MD, Chairperson.
   • Functions:
     • Policy formulation
     • Setting goals & strategies
     • Long-term planning
     • Coordination of departments
     • Representing the company to external stakeholders
2. Middle Level Management
   • Examples: Division heads, plant managers, department managers.
   • Functions:
     • Implement top-level plans
     • Make departmental plans
     • Motivate and lead lower-level managers
     • Liaison between top and operational levels
3. Lower / Operational Level Management
   • Examples: Supervisors, foremen, section officers.
   • Functions:
     • Direct contact with workers
     • Ensuring quality and timely production
     • Maintaining discipline
     • Providing feedback to higher levels

9. Functions of Management

1. Planning

• Setting goals and deciding how to achieve them.
• Forecasting, strategies and action plans.
• Reduces uncertainties and gives direction.

2. Organizing

• Identifying activities
• Grouping activities
• Assigning jobs
• Delegating authority
• Establishing reporting relationships

3. Staffing

• Recruitment, selection, training
• Development of employees
• Performance appraisal
• Promotion and remuneration

4. Directing

• Leading, influencing, motivating and communicating with employees.
• Components:
  • Supervision
  • Motivation
  • Leadership
  • Communication

5. Controlling

• Establishing standards
• Measuring actual performance
• Comparing performance with standards
• Taking corrective action

10. Coordination — Essence of Management

1. Meaning
   • Synchronizing the efforts of different people towards a common goal.
2. Why Essence?
   • Present in every function of management.
   • Integrates planning, organizing, staffing, directing and controlling.
3. Features of Coordination
   • Integrates Group Efforts
   • Ensures Unity of Action
   • Continuous Process
   • Pervasive (at all levels, in all functions)
   • Deliberate Function

11. Importance of Coordination

1. Harmonization of Goals
   • Balances individual and organizational objectives.
2. Unity of Direction
   • Ensures all departments work in one direction.
3. Efficiency & Economy
   • Avoids duplication, delays and resource wastage.
4. Good Human Relations
   • Reduces conflicts, improves cooperation and trust.
5. Smooth & Orderly Functioning
   • Integrates various activities and departments.
6. Adapting to Change
   • Helps adjust to technological, market and organizational changes.

12. Management in the Twenty-First Century

1. Globalization
   • Operations beyond national boundaries.
   • Need for cultural sensitivity and global strategies.
2. Technological Advancements
   • Automation, AI, robotics, digital communication.
   • Managers must adapt quickly.
3. Innovation & Creativity
   • Competitive markets require continuous innovation.
4. Knowledge-Based Workforce
   • Employees are more educated and demand empowerment.
5. Sustainability & Ethics
   • Environmental responsibility, CSR, ethical leadership.
6. Flat Organizational Structures
   • Reduced hierarchy, faster communication.
7. Remote Work & Flexibility
   • Hybrid workplaces, digital management tools.
8. Customer-Centric Approaches
   • Personalization, quality assurance, quick service delivery.
9. Data-Driven Decision Making
   • Use of analytics, forecasting tools and big data.

13. Conclusion

• Management is essential for the success, growth and smooth functioning of any organization.
• It combines science, art and profession, making it both systematic and creative.
• Through planning, organizing, staffing, directing and controlling, managers ensure productivity, efficiency and employee satisfaction.
• Coordination remains the essence of all managerial functions.
• In the 21st century, managers must be dynamic, innovative, ethical, global in outlook and technologically updated.
• Effective management helps businesses not only survive but also thrive in an increasingly complex and competitive world.