May 28, 2020

NATURE AND SIGNIFICANCE OF MANAGEMENT- CLASS 12 COMMERCE

NATURE AND SIGNIFICANCE OF MANAGEMENT CLASS 12 COMMERCE

*Management is  a  process  of getting  work done  with the aim  of achieving  the  goals of an organisation in an efficient and effective  manner. 
*Key terms in the definition of  management  

*Process: Process  means the  interrelationship among  the basic functions of  management such  as planning, organising, staffing, directing  and controlling. None  of the  functions can be  performed in isolation.

 * Effectiveness: Completing  a  given work in the  required time with a  focus on the end results. 

* Efficiency: Completing  a  task with the minimum  possible cost and resources. Greater benefits with less resources.

 * Efficiency Same benefits with less resources  

*  Efficiency Less benefits even with more  resources 

 * Inefficiency

 *Interrelationship between  Effectiveness and Efficiency Both effectiveness and efficiency  are  two prime  inputs for  achieving  an organisation’s goals. However, a  trade-off has  to be often made  between them. This means that if an organisation aims at achieving  efficiency, then it  may  have  to  compromise  on effectiveness and vice versa
The  following  are  the  various features of management.
 1)  All-pervasive: ‘Pervasive’ implies practised and followed by  one  and all. Management is practised and needed by  all  organisations irrespective  of their  geographical  location and whether  they  are  large  or  small, whether  they  work for  economic, social or  political interest and whether they  are  located in rural or urban areas.
 2)  Goal-oriented: Management consolidates the efforts of various individuals in an organisation for the  achievement of  the common  goals of the organisation
. 3)  Continuous: Various functions of management (such as planning, organising, directing, staffing  and controlling)  are  performed simultaneously  and  continuously  by  the managers at all levels. 
4)  Dynamic: Every  organisation operates in a  dynamic  environment. Factors such as government policies, competitors’ policies, consumers’ tastes and preferences vary widely. Such  factors  are  collectively  termed  external forces. Thus, management must aim at adapting  to various changes in the  external forces for  the pursuit  of the  organisation’s goals.
 5)  Multidimensional: Management involves multiple dimensions, namely, managing  the work, managing  the people and managing  the operations. 
6)  Intangible: ‘Intangible’ refers to something  that ‘cannot be seen  and cannot  be  touched’. Management as  a  process cannot be seen, but its presence  can be  felt  by  the  success of an organisation. For  instance, a  high degree  of harmony  and orderliness in an  organisation confirms the  effectiveness of its  management.
 7)    Group activity: Every  Individuals in an organisation work together  as a part of  the same group  for  the fulfillment of the common goals of the  organisation. But management must ensure  the individual  growth and development of  each member of  the organisation. 

*Management  -  A  Multi-Faceted  Concept The  following  are  the  three  main dimensions of management. 

1)  Managing the  work: With management, the work  of  an organisation is  interpreted in terms of the objectives  and goals  achieved owing  to the  work. Management also specifies the guidelines  regarding  how these  objectives  can  be  achieved. 

2)  Managing the  people: Managing  the people implies dealing  with the  employees both as individuals and as a  group such that their  strengths are  utilised and their  weaknesses  are identified.
 3)  Managing the  operations-  The  production process where  the inputs are  transformed into a  product or  a  service  requires continuous management in order to ensure  the utilisation of  the resources efficiently  and  effectively. 

*Objectives of  Management 

1)  Organisational/economic  objectives: Organisational or economic  activity  involves optimal utilisation of  the  material and human  resources available. The  following  are  the objectives involved.
 a.  Survival: The  overall  revenue  must  be  adequate to  cover the  costs. 
b.  Profit: Profits must be earned such that the risks  and costs are  covered. 
c.  Growth: To continue  in the  long  run, an organisation should focus on growth in terms of  sales, production, number of  employees, etc. 
2)  Social  objectives: Social obligations such as adoption of environment-friendly  production methods, contribution to social causes such as imparting  education to children and providing  employment to  the unemployed, etc., should be considered.
 3)  Personal objectives: The  personal objectives of the  individuals (financial objectives as well  as social objectives)  must  be  accommodated. 

*Importance  of  Management 
1)  Achievement of goals:  The  efforts of  all  the individuals  must  be  organised  and directed towards the  common  goals of the organisation.
 2)  Increases efficiency: An  increase  in efficiency  implies minimising  the costs  and increasing  the productivity  through the optimum utilisation of resources. 
3)  Creates dynamic organisation:  Management helps  an organisation to adapt  to the changes in external factors such as political, social, environmental and economical changes.
 4)  Development  of  society:  Management must contribute to the development  of  society  by producing  good quality  products at fair prices, using  honest selling  practices, etc. 
*Management as a Science 
1)  Systematic body  of knowledge: Management has its own body  of theories and principles that were  developed over  the  years.  In  addition, it has its own vocabulary. 2)  Theories based on  experimentation: The  principles of management  have  developed over the  years based on repeated observations and  experiments. However, as management deals with human behavior, no exact cause-and-effect relationship can be  established. 
3)  Universal  validity: Theories and principles of  management are  valid universally  to a  great extent. They  can be  used  to impart basic knowledge  and managerial skills to budding managers. 

*Management as an Art
 1)  Existing  literature: Management has its own literature  for  theoretical knowledge  and learning, such  as  Henry  Fayol’s principles of management and  Frederick  Taylor’s scientific  management theory. 
2)    Dynamic application:  Managers mould the  theories and  principles of management as per situations and the need of  the hour. 
3)  Practice  and creativity:  Managers use  creativity  and imagination to apply  the theories and principles of  management to different situations. Just  like  each artist  specialises in one  form of art, different  managers distinguish themselves in terms of  their  creativity  and application of  their  managerial skills. For  instance, the acting  skills of Mr. Amitabh Bachchan differ  from those  of Mr. Robert Downey  Jr; similarly, the managerial skills of two managers differ in some way. 

*Management as a  Profession As a  profession, management fulfils  the following  criteria.
 1)  Systemised knowledge: Knowledge  of management can be  attained by  studying  in various management colleges  and institutes and  by  reading  management books.
 2)  Freedom  to be a  manager: No specific qualification or  degree  is required to be a manager. 
3)  Professional association: Managers are  affiliated  to professional associations, such as the All  India Management Association (AIMA), which regulate  the  functions of their members.
 4)  Code  of conduct: Managers have  a  specific  code  of  conduct.  But it is not  obligatory  for them to abide  by  the  code. 
*Features of  Coordination
 1)  Unifies individuals’ efforts: Coordination  integrates the efforts of  the individuals towards the set targets or  goals of  the organisation.
 2)  Ensures unity: It unifies  the actions of the  individuals and departments to achieve  the organisational  goals.
 3)  Goes on  continuously:  Coordination is  a  never-ending  and  continuous process that ensures that work is performed as per  the  planned  targets. 
4)  Pervades all levels:  It is  performed  at all the  levels of management. 
5)  Involves managers: Coordination is  an activity  that involves the managers at all levels. The  top-level managers perform it to ensure  the  overall  welfare  of the  organisation. The middle-level managers practise  it  to ensure  that the  top-level and  lower level  managers work together in harmony.  The  operational level  managers perform it to ensure  that work goes on  according  to the  planned targets. 
6)  Implies deliberate  action: Managers practice  coordination deliberately  so as to give a direction to the  efforts of  the individuals of the organisation. 



Note: Author does not claim over work! Work is derived from various sources.


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This blog was made by Dhruv Panjrolia and Drashti Panjrolia. Major contributions in the process were made by Mousmi Shrivastava and Kalindi Chokshi

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