Nature and Significance of Management Notes Business Studies Class 12 PDF

Management is the process of planning, organizing, staffing, directing, and controlling organizational resources to achieve goals efficiently and effectively.


Nature of Management:

  1. Goal-Oriented – Aims to achieve group objectives.

  2. Pervasive – Present at all levels and in all types of organizations.

  3. Multidimensional – Involves work with people, operations, and goals.

  4. Continuous Process – Ongoing series of functions.

  5. Group Activity – Involves teamwork and coordination.

  6. Dynamic Function – Adapts to changing environment.

  7. Intangible Force – Cannot be seen but felt through results like improved performance.


Objectives of Management:

  1. Organizational Objectives – Survival, profit, growth.

  2. Social Objectives – Serving society (e.g., fair wages, eco-friendliness).

  3. Personal Objectives – Employee satisfaction, development, and needs.


Importance of Management:

  • Achieves group goals

  • Increases efficiency

  • Creates a dynamic organization

  • Helps in achieving personal objectives

  • Helps in development of society


Management as an Art, Science, and Profession:

  1. Art – Requires creativity, personal skills, and practice.

  2. Science – Based on principles, cause-effect relationship, and experimentation.

  3. Profession – Has a code of conduct, specialized knowledge, but lacks strict entry barriers (so it’s not a full profession yet).


Levels of Management:

  1. Top Level – Strategy and vision (e.g., CEO).

  2. Middle Level – Executes plans (e.g., department heads).

  3. Lower/Supervisory Level – Day-to-day work (e.g., supervisors, foremen).


Functions of Management:

  • Planning

  • Organising

  • Staffing

  • Directing

  • Controlling

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