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MANAGEMENT NOTES
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Mission
100
BUSINESS STUDIES
CHAPTER - 1
MANAGEMENT
AnuragD wivedi
9871812231
CHAPTER -1 [MANAGEMENT]
Introduction
Management is universal concept. It is needed in every organization, whether it is a
profit or non-profit organization.
Consider the following cases:
➢ A school without a principal
➢ A cricket team without a captain
➢ A country without a government
In all these cases, situations is likely to be disorganized and chaotic because there is
no management. So, Management is essential for all organizations big or small,
profit or non-profit, service or manufacturing.
Meaning
Management is an art of getting things done with and through others. Management
can be defined as, the process of getting things done with the aim of achieving
organizational goals effectively and efficiently.
Efficiency and Effectiveness
Efficiency means doing the task correctly at minimum cost through optimum
utilization of resources while effectiveness is concerned with end result means
completing the task correctly within stipulated time. Although efficiency and
effectiveness are different yet they are inter related. It is important for management
to maintain a balance between the two.
Characteristics/Features/Nature of Management
1. Goal Oriented Process: It is a goal oriented process, which is under taken to
achieve already specified and desired objectives by proper utilization of
available resources.
2. Pervasive: Management is universal in nature. It is used in all types of
organizations whether economic, social or political irrespective of its size,
nature and location and at every level.
3. Multidimensional: It is multidimensional as it involves management of work,
people and operations.
4. Continuous: It consists of a series of function and its functions are being
performed by all managers simultaneously. The process of management
continues till an organization exists for attaining its objectives.
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5. Group Activity: It is a group activity since it involves managing and
coordinating activities of different people as a team to attain the desired
objectives.
6. Dynamic function: It is a dynamic function since it has to adapt according to
need, time and situation of the changing environment. For example, McD
made major changes in its 'Menu' to survive in the Indian market.
7. Intangible Force: It is intangible force as it can't be seen but its effects can
be felt in the form of result like whether the objectives are met and whether
people are motivated or not and there is orderliness and coordination in the
work environment.
Objectives of Management
1. Organizational Objectives: Organizational Objectives is survival (Earning
enough revenues to cover cost); profit (To cover cost and risk); & Growth (To
improve its future prospects).
(i) Survival – Management by taking positive decision with regard to
different business activities ensures survival of business for long.
(ii) Profit – It plays an important role in facing business risks and
successful running of business activities.
(iii) Growth – Management must ensure growth which can measured by
increase in sales no. of employees, product, investment etc.
2. Social Objectives: Social Objectives means giving benefits to society like
using environmental friendly practices and giving employment to
disadvantaged sections of society, providing better quality products at
reasonable prices and providing basic amenities like school and creches.
3. Personal Objectives: Objectives which are related to individual needs of the
employees of an organization are known as personal objectives. These needs
can be financial needs, social needs and higher level needs.
Importance of Management
1. Achieving Group Goals: Management creates team work and coordination
in the group. Managers give common direction to individual efforts in
achieving the overall goals of the organization.
2. Increases Efficiency: Management increases efficiency by using resources
in the best possible manner to reduce cost and increase productivity.
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3. Creates Dynamic Organization: Management helps the employees
overcome their resistance to change and adapt as per changing situation to
ensure its survival and growth.
4. Achieving personal objectives: Management helps the individuals achieves
their personal goals while working towards organizational objectives.
5. Development of Society: Management helps in the development of society
by producing good quality products, creating employment opportunities and
adopting new technology.
Nature of Management
1. Management as a Art:
Art refers to skillful and personal application of existing knowledge to achieve
desired results. It can be acquired through study, observation and experience.
Management can be said to be an Art:
(i) Existence of theoretical knowledge:
➢ In every art systematic and organized study material should be
available compulsorily to acquire theoretical knowledge.
➢ This feature of art is present in management as there is a lot of
literature available in various areas of management like marketing,
finance and human resources which he manager has to specialize in.
So, there is existence of theoretical knowledge.
(ii) Personalized application:
➢ Use of basic knowledge differs from person to person and thus, art is a
very personalized concept.
➢ This feature of art is also present in management as every manager
has his own unique ay of managing things and people.
(iii) Based on practice and creativity
➢ Art involves the creative practice of existing theoretical knowledge. The
creativity and practice of an artist makes him called an artist in real
sense.
➢ This feature of art is also present in management, a manner applies
this acquired knowledge in a personalized and skillful manner with
regular practice of management principles.
Conclusion: From above discussion we may conclude that management
satisfies all the features of an art. Therefore, we may conclude that
management is the pure art.
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2. Management as a Science:
Science is a systematized body of knowledge that is based on general truths
which can be tested anywhere, anytime and in any situation.
Management cannot be said to be a Science:
(i) Systematized body of knowledge:
➢ Science has a systematized body of knowledge based on principles
and experiments.
➢ This feature of science is present in management, as it has its own
theory and principles that have developed over a period of time. The
managerial principles have also got a cause- effect relationship.
(ii) Principles based on experiments and observation:
Scientific principles are developed through experiments and observation.
This feature of is not cent percent applicable, since the management deals
with the human beings whose behaviour cannot be predicted on the basis of
absolute laws and experimentation.
(iii) Universal validity:
➢ Scientific principles have universal validity and application.
➢ This feature is not cent percent applicable, since their application and
use has yo be modified according to given situation.
Conclusion: From above discussion we may conclude that management
does not satisfy all the features of a pure science which makes it being called
an inexact science or soft science or social science.
3. Management as Profession:
Profession means an occupation backed up by specialized knowledge and
skills. Entry in the profession is restricted.
Management cannot be said to be a profession.
(i) Well-defined body of knowledge:
➢ All the professions are based on well defined body of knowledge, which
can be learnt through instructions.
➢ This feature is applicable to management, as it is based on a well
defined body of knowledge which can be acquired at different colleges
and professional institutes and through a number of books and
journals.
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(ii) Restricted Entry:
➢ The entry in every profession is restricted through examination or
through some minimum educational qualification.
➢ This feature is not applicable to management, as there is no restriction
on anyone being designated as manager in any business enterprise.
Anyone can be called manager irrespective of the educational
qualification.
(iii) Professional Associations:
➢ All professions are affiliated to a professional association which
regulates entry and frames code of conduct relating to the profession.
➢ This feature is not applicable to management as it is not compulsory for
a manager to be a member of any management association.
Management has also got an association that is AIMA (All India
Management Association) that regulate the activities of the managers,
but there is no legal support to it.
(iv) Ethical code of conduct:
➢ All professions are bound by a code of conduct which guides the
behaviour of its members.
➢ This feature is not applicable in management as there is no uniform
code of conduct for the managers. There are several associations of
practicing manages like AIMA (All India Management association) that
has laid down a code of conduct to regulate the activities of their
members, but there is no legal support to it.
(v) Service Motive:
➢ The main aim of a profession is to serve its clients.
➢ This feature is not applicable in management as the basic purpose of
management is to help the organization to achieve organizational goal,
which is generally profit maximization.
Conclusion: From the above discussion we may conclude that management
is not a full-fledged profession like legal, accounting or medical profession
because it does not fulfill all the characteristic of a profession.
Levels of Management
"Levels of management" means different categories of managers, the lowest
to the highest on the basis of their relative responsibilities, authority and
status.
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In an organization, there is three levels of management:
1. Top level management
2. Middle level management and
3. Lower or operational or supervisory level management
4. Top Level:
➢ Top level consists of Chairperson, Chief Executive Officer, Chief
Operating Officer or equivalent and their team.
➢ Chief task is to integrate and to coordinate the various activities of the
business, framing policies, formulating organizational goals &
strategies.
2. Middle Level:
➢ Middle Level Consists of Divisional or Department heads, Plan
Superintendents and Operation Managers etc.
➢ Main tasks are to interpret the policies of the top management to
ensure the availability of resources to implement policies, to coordinate
all activities, ensure availability of necessary personal & assign duties
and responsibilities to them.
3. Lower Level/Supervisory Level/Operational Level:
Lower Level Consists of all first line managers like supervisor, foremen and
superintendent etc.
Main task is to ensure actual implementation of the policies as per directions bring workers'
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Functions of Management
A good manager in the organization has to perform various functions
(activities). Planning, Organizing, Staffing, Directing and Controlling are the
main functions of management that every manager has to perform to achieve
some common goals of the organizations. There functions are:
1. Planning:
Planning is deciding in advance, what is to be done, how it is to be done,
when it is to be done and by whom.
➢ It involves setting goals in advance and developing a way of achieving
them effectively and efficiently.
2. Organizing:
Organizing can be defined as a process that initiates implementation of plans
by clarifying jobs and working relationship and effectively deploying resources
for attainment of organizational goals.
➢ Once a specified plans has been established for the accomplishment if
an organizational goal, the organizing function examines the activities
and resources required to implement the plans.
3. Staffing:
➢ Staffing is the process of finding the right person, for the right job,
having the right qualifications, doing the right task at the right time.
➢ Staffing function is also known as the human resources function and it
involves activities like recruitment, selection, training and development.
4. Directing:
➢ Directing is telling people what to do and seeing that they do it to the
best of their ability. Directing involves leading, influencing and
motivating employees to perform the assigned tasks.
➢ There are four elements of directing, viz. (a) Supervision, (b)
Motivation, (c) leadership, (d) communication.
5. Controlling:
Controlling is the management function of monitoring organizational
performance towards the attainment of organizational goals.
It involves establishing standards of performance, measuring current
performance, comparing and analysing the deviations and taking corrective
actions (if there is any significant deviation).
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Coordination
Coordination is the force binds all the other functions of management.
Coordination is sometimes consider a separate function of management.
However, it is the essence of management, for achieving harmony among
individuals efforts towards the accomplishment of group goals. The dictionary
meaning of Coordination is rapport. Thus, "coordination refers to the orderly
synchronization, harmonization and unification of efforts of the subordinates
towards the achievement of common goal."
Coordination makes 1+1=11 possible.
Characteristic/Features/Nature of Coordination:
1. Coordination integrates group efforts: It integrates diverse business
activities into purposeful group activity ensuring that all people work in one
direction to achieve organizational goals.
2. Coordination ensure unity of action: It directs the activities of different
departments and employees towards achievement of common goals and
brings unity in individual efforts.
3. Coordination is a continuous process: It is not a specific activity matter it is
required at all levels, in all departments till the organization continues its
operations.
4. Coordination is all pervasive function: it is universal in nature. it
synchronizes the activities of all levels and departments as they are
interdependent to maintain organizational balance.
5. Coordination is the responsibility of all managers: It is equally important
at all the three-top, middle and lower levels of management. Thus it is the
responsibility of all managers that they make efforts to establish coordination.
6. Coordination is a deliberate function: Coordination is never established by
itself rather it is a conscious effort on the part of every manager. Cooperation
is voluntary effort of employees to help one another. Effective coordination
can not be achieved without cooperation of group members.
Coordination: Essence of Management:
Coordination is the force that binds all the other functions of management
(i.e., planning, organizing, staffing, directing and controlling). It is essence of
management due to following two reasons:
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1. Coordination is required in all managerial functions: Coordination is
implicit and inherent in all function of an organization.
(a) Coordination is required in Planning:
➢ For objectives and available resources.
➢ For overall plan and departmental plans.
➢ For example: Coordination between production department plans and
sales department target.
(b) Coordination is required in Organizing:
➢ For resources and activities to be performed.
➢ For assigning authority, responsibility and accountability.
➢ For examples: If the finance manager is given authority to raise funds,
he should also be given the responsibility to manage funds efficiently.
(c) Coordination is required in Staffing:
➢ For skills of the workers and the jobs assigned to them.
➢ Efficiency of the workers and compensation.
➢ For example: A CA should generally be given work of a financial
nature.
(d) Coordination is required in Directing:
➢ Among orders, instructions and suggestions.
➢ Between superior and subordinates.
➢ For example: A manger instructs the subordinates, motivates them and
also supervises their work.
(e) Coordination is required in Controlling:
➢ Between standards and actual performance.
➢ Between correction of deviations and achievement of objectives.
➢ For example: If the actual output falls 20% short of planned target, then
corrective action is taken to ensure that plans coordinate with actual
performance.
[Link] is needed at all levels: Coordination is required between activities
of all the three levels of management hierarchy.
(a) Top level needs coordination to integrate activities of organization for
accomplishment of goals.
(b) Middle level requires coordination to integrate efforts of different sections and
sub sections.
(c) Lower level needs coordination in the activities of worker, to ensure that work
proceeds as per plans.
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Conclusion: From above, we may conclude that coordination is concerned with all
functions and level of management. Therefore, coordination is termed as the
essence of management.
Need/Importance of Management:
1. Growth in size: As organizations grow in size, the number of people in They
organization also increases. They may work for cross purpose. So,
coordination is needed to integrate their efforts and activities, i.e., unity of
action. Thus, it becomes necessary for organization efficiency to harmonize
individual goals and organizational goals through coordination.
2. Functional differentiation: Functions of an organization are divided into
departments, divisions and sections. All departments may have their own
objectives, policies and their own style of working. Coordination helps to
synchronizes activities of these departments so that they proceed together in
a single direction instead of working as independent units.
3. Specialization: Modern organizations have an essence of high degree of
specialization. So, organizations employ a number of specialists, who think
that they only are qualified to evaluate, judge and decided. They usually don't
take advice or suggestions from other members, which leads to conflicts
between them. Therefore, coordination is required to avoid conflict between
the specialists and the other members.
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[MULTIPLE CHOICE QUESTIONS]
Q.1. What are the Levels of Management?
A. [ ] Top, Middle and Operational
B. [ ] Taxation, Accounting and Marketing
C. [ ] Production, Sales and Marketing
D. [ ] Marketing, Finance and Accounting
Q.2. What are the responsibilities of Top Level Management in an Organization?
A. [ ] Framing of Plans and Policies of the organization
B. [ ] Looking to safety of workers
C. [ ] Production of Goods
D.[ ] Managing Books of Accounts
Q.3. Middle Level Management consists of –
E. [ ] Supervisors, Superintendents, Clerks
F. [ ] Chairman, Board of Diectors, C.E.O., C.F.O
G. [ ] Departmental Heads, Financial Manager, Executive Officers
H. [ ] None of the option
Q.4. Mr. Avinash Rathode is one of the members of the Board of Directors of XYZ
Ltd. He is a part of-
A. [ ] Top Level of Management
B. [ ] Supervisory Level of Management
C. [ ] None of the options
D.[ ] Middle Level of Management
Q.5. Sub Department Executive is a part of
E. [ ] Operational Level of Management
F. [ ] Middle Level of Management
G. [ ] None of the options
H. [ ] Top Level of Management
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Q.6. Marketing Manager is related to Level of Management
A. [ ] Middle level of Management
B. [ ] Top Level of Management
C. [ ] Operational Level of Management
D. [ ] None of the options
Q.7. Avantika is the manager of northern division of a large corporate house. At
what level does she work in the organization?
A. [ ] Top Level of Management
B. [ ] Operational Level of Management
C. [ ] Middle Level of Management
D. [ ] None of the options
Q.8. Which of the following is also called operational level of management or
supervisory level management?
A. [ ] Middle Level of Management
B. [ ] Top Level of Management
C. [ ] None of the options
D. [ ] First line Management
Q.9. Madan has retired from the post of foreman in a factory. At what level of
management was he working?
A. [ ] Middle Level of Management
B. [ ] Top Level of Management
C. [ ] None of the options
D. [ ] Operational Level of Management
Q.10. Which level of management frames the plans and policies of the
organization?
A. [ ] Middle Level of Management
B. [ ] Operational Level of Management
C.[ ] None of the Options D.
To Level of Management
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Q.11. Which Level of management organizes the activities of their department for
executing plans and policies?
A. [ ] Top Level of Management
B. [ ] Middle Level of Management
C. [ ] Operational Level of Management
D. [ ] all of the options
Q.12. Which level of management are directly linked with the subordinates?
A. [ ] Top Level of Management
B. [ ] All of the options
C. [ ] Middle Level of Management
D. Operational Level of Management
Q.13. Managers at which level has maximum authority?
A. [ ] All of the options
B. [ ] Operational Level of Management
C. [ ] Middle Level of Management
D. [ ] Top Level of Management
Q.14. Which level of management try to maintain precise standard of quality and
ensure steady flow of output.
A. [ ] Operational Level of Management
B. [ ] Middle Level of Management
C. [ ] All of the options
D. [ ] Top level of Management
Q.15. Which level of managers are responsible for maintaining discipline among the
workers.
A. [ ] Middle Level of Management
B. [ ] All of the options
C. [ ] Operational Level of Management
D. [ ] Top Level of Management
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Q.16. Which level of management motivates people to perform to their best ability?
A. [ ] Top Level of Management
B. [ ] Operational Level of Management
C. [ ] Middle Level of Management
D. [ ] None of the options
Q.17. Which Level of Management has liason with the outside world?
A. [ ] Operational Level of Management
B. [ ] All of the options
C. [ ] Top Level of Management
D. [ ] Middle Level of Management
Q.18. Which level of management's work is to looking into the safety of workers?
A. [ ] Middle Level of Management
B. [ ] Operational Level of Management
C. [ ] Top Level of Management
D. [ ] None of the options.
Q.19. What are the Levels of Management?
A. [ ] Top, Middle and Operational
B. [ ] Taxation, Accounting and marketing
C. [ ] Production, Sales and Marketing
D. [ ] Marketing, Finance and Accounting
Q.20. What are the responsibilities of Top Level management in an Organization?
A. [ ] Framing of Plans and Policies of the Organization
B. [ ] Looking to safety of workers
C. [ ] Production of Goods
D. [ ] Managing Books of Accounts
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Q.21. Middle Level Management consists of-
A. [ ] Supervisors, Superintendents, Clerks
B. [ ] Chairman, Board of Diectors, CEO, CFO
C. [ ] Departmental Heads, Financial Manager, Executive Officers
D. [ ] None of the options
Q.22. Mr. Avinash Rathode is one of the members of the Board of Directors of XYZ
Ltd. He is a part of-
A. [ ] Top Level of Management
B. [ ] Supervisory Level of Management
C. [ ] None of the options
D. [ ] Middle Level of Management
Q.23. Sub Department Executive is a part of
A. [ ] Operational Level of Management
B. [ ] Middle Level of Management
C. [ ] None of the options
D. Top Level of Management
Q.24. Marketing Manager is related to Level of Management
A. [ ] Middle Level of Management
B. [ ] Top Level of Management
C. [ ] Operational Level of Management
D. [ ] None of the options
Q.25. Avantika is the manager of northern division of a large corporate house. At
what level does the work in the organization?
A. [ ] Top level of Management
B. [ ] Operational Level of Management
C. [ ] Middle Level of Management
D. [ ] None of the options
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Q.26. Which of the following is also called operational level of management or
supervisory level management?
A. [ ] Middle Level of Management
B. [ ] Top Level of Management
C. [ ] None of the options
D. [ ] First the Management
Q.27. Madan has retired from the post of a foreman in a factory. At what level of
management was he working?
A. [ ] Middle Level of Management
B. [ ] Top Level of Management
C. [ ] None of the options
D. [ ] Operational Level of Management
Q.28. Which level of Management frames the plans and policies of the
organization?
A. [ ] Middle Level of Management
B. [ ] Operational Level of Management
C. [ ] None of the options
D. [ ] Top Level of Management
Q.29. Which level of management organizes the activities of their department for
executing plans and policies?
A. [ ] Top Level of Management
B. [ ] Middle Level of Management
C. [ ] Operational Level of Management
D. [ ] All of the options
Q.30. Which level of managers are directly linked with the subordinates?
A. [ ] Top Level of Management
B. [ ] All of the options
C. [ ] Middle Level of Management
D. [ ] Operational Level of Management
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Q.31. Managers at which level has maximum authority?
A. [ ] All of the options
B. [ ] Operational Level of Management
C. [ ] Middle Level of Management
D. [ ] Top Level of Management
Q.32. Which level of management try to maintain precise standard of quality and
ensure steady flow of output.
A. [ ] Operational Level of Management
B. [ ] Middle Level of Management
C. [ ] All of the options
D. [ ] Top Level of Management
Q.33. Which level of managers are responsible for maintaining discipline among the
workers.
A. [ ] Middle Level of Management
B. [ ] All of the options
C. [ ] Operational Level of Management
D. [ ] Top Level of Management
Q.34. Which level of management motivates people to perform to their best ability.
A. [ ] Top Level of Management
B. [ ] Operational level of Management
C. [ ] Middle Level of Management
D. [ ] None of the options
Q.35. Which level of management has liason with the outside world?
A. [ ] Operational Level of Management
B. [ ] All of the options
C. [ ] Top Level of Management
D. [ ] Middle Level of Management
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Q.36. Which level of management's work is to looking into the safety of workers?
A. [ ] Middle Level of Management
B. [ ] Operational Level of management
C. [ ] Top Level of Management
D. [ ] Non of the options
Q.37. Which is the first function of management?
A. [ ] Controlling
B. [ ] Planning
C. [ ] Directing
D. [ ] Organizing
Q.38. What is the main purpose of Staffing in an organization?
A. [ ] Setting up goals of the organization.
B. [ ] Finding right people for the right job
C. [ ] A part of accounting cycle
D. [ ] Setting performance standards
Q.39. Middle Level Managers keep their focus on Staffing and Coordination.
A. [ ] True
B. [ ] False
Q.40. Which function is called the essence of management?
A. [ ] Controlling
B. [ ] Coordination
C. [ ] Staffing
D. [ ] Directing
E. [ ] Planning
Q.41. What is coordination?
A. [ ] Function that managers are not concerned about
B. [ ] Is a part of Production Process
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C. [ ] Deliberate Function of Management
D. [ ] Part of taxation process
Q.42. Which department is responsible for the appointment of employees, their
placement and training?
A. [ ] Coordination
B. [ ] Directing
C. [ ] Planning
D. [ ] Staffing
Q.43. Which of the following is not an element of coordination
A. [ ] Integration
B. [ ] Timing
C. [ ] Balancing
D. [ ] Energy
Q.44. Select the current sequence of Management Process
A. [ ] Organizing, Controlling, Directing, Staffing and Planning
B. [ ] Planning, Organization, Staffing, Directing and Controlling
C. [ ] Planning, Organizing, Staffing, Controlling and Directing
D. [ ] Planning, Directing, Staffing, Organizing and controlling
Q.45. Which function of management ensures issuing of instructions and orders and
also motivate the employees?
A. [ ] Organizing
B. [ ] Planning
C. [ ] Directing
D. [ ] Coordination
Q.46. Which of the following is not a function of Management
A. [ ] Organising
B. [ ] Planning
C. [ ] Staffing
D. [ ] Cooperation
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Q.47. Which function is considered as the base of all other functions?
A. [ ] Organizing
B. [ ] Directing
C. [ ] Staffing
D. [ ] Planning
Q.48. Lower level managers focus on directing and controlling as they give
directions to workers.
A. [ ] False
B. [ ] True
Q.49. In controlling function, coordination is required between
A. [ ] Standards and actual performance
B. [ ] Main plan and supportive plans of different departments
C. [ ] Different resources of an organization and also between
authority responsibility and accountability
D. [ ] Skill of a person and the job assigned to him
Q.50. Without coordination every company can work efficiently and earn profits
A. [ ] False
B. [ ] True
Q.51. Name the function of management which ensures work accomplishment as
per plan.
A. [ ] Directing
B. [ ] Staffing
C. [ ] Controlling
D. [ ] Organizing
Q.52. Name the function of management which injects life in the organization
A. [ ] Planning
B. [ ] Directing
C. [ ] Organizing
D. [ ] Staffing
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Q.53. Which of the following is an objective of controlling functions?
A. [ ] Find out reasons for deviation between actual performance and
planned performance
B. [ ] All of the options
C. [ ] Suggesting corrective measures to match actual performance with
planned performance
D. [ ] To match actual performance with the planned performance
Q.54. Directing is the step in management process.
A. [ ] 3rd
B. [ ] 2nd
C. [ ] 1st
D. [ ] 4th
Q.55. Why is balancing important in coordination?
A. [ ] To schedule the operations in a suitable order.
B. [ ] To integrate the activities and efforts of different departments,
working independently.
C. [ ] To unity all the unrelated interests or activities.
D. [ ] None of the options.
Q.56. The need of coordination-
A. [ ] decreases with the increase in size of organization
B. [ ] Increases with the increase in size of organization
C. [ ] Remains constant with the increase in size of organization
D. [ ] None of the options
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