Class :12 eM th

sub : o.c. lesson :1notes

MEANING OF MANAGEMENT

➢ 1)Management is the art of getting work done through the others.

➢ 2) Management is a process which plans and organize, men, machine, method, money and market,
it provides leadership co-ordination and direction to human to achieve the business objective.

NATURE OF MANAGEMENT

[Link] process:
➢ Management is universal process.
➢ Management is required where people are working in group for the achievement of objective.
➢ Management is not only required in industries but also necessary in every field.
➢ Management is required in various social and religious field and activities like army, agriculture,
education etc.
[Link] oriented activity:
➢ Every business unit is established to achieve certain objective.
➢ Management is necessary to achieve these objectives in a best way.
[Link] activity:
➢ Management is a collective activity carried out by two or more people.
➢ Management is required where two or more people are working together for the accomplishment
of predetermined objective.
[Link] process:
➢ Management is a continuous process.
➢ Management is a goal-oriented activity yet it does not stop after the achievement of objective.
➢ New objective and targets are decided by business unit.
➢ The cycle of defining objective, achieving them and redefining them continuously goes on.
[Link] process:
➢ In management human element is most important.
➢ Other means of production are useless without man.
➢ Management is done by human being and for the human being.
➢ Man is in the Centre of management.
➢ Thus, it is a human process which is done by and for the man.
[Link] process:
➢ Decision process is a function of management.
➢ Management has to take decision constantly while managing business.
➢ No work can be done without taking decision.
➢ After taking decision, management has to proceed to implement of it.
[Link], Art and profession:
➢ Science: Like science management has its own rules or principles. Hence management consider
as a science.
➢ Art: man is the important factor of management therefore getting work done from him, requires
proficiency, intelligence and cleverness. It is known as art of getting things done through other.
➢ Profession: management of a modern business unit is handed over to trained and expert people.
➢ In recent time manager has also adopted professionalism like lawyers, doctors, chartered
accountants.
➢ Thus, it is clear that management is a profession too.

IMPORTANCE OF MANAGEMENT

[Link] IN EVERY FIELD:

➢ Management is necessary in every field.
➢ Management is not only required in business activity but also required in all types of activities.
➢ Example Religion, defence, society, politics, education, sports etc.
[Link] UTILISATION OF RESOURCES:
➢ Management makes it possible to take the optimum utilization of business resource like land,
capital, raw, material, labour, and machinery.
➢ It avoids wastage resource.
[Link] BENEFITS
➢ Every business is carried out as a part of society and for the interest of society.
➢ Success of any business increases the wealth and welfare of society.
➢ Business units produce goods and service at low cost. this provides good at reasonable rate which
results into welfare of the entire society.
[Link] FOR JOB
➢ If management is efficient the firm soon develop itself in the form of company.
➢ Due to this there is increase in job opportunities.
➢ If there as inefficient management so it become responsible for closure of many companies which
leads to further increase in unemployment.
[Link] MOTIVE
➢ Management is essential to take maximum utilization of untapped human resource and factor of
production for the economic, social and national development of an economy.
[Link] OF OBJECTIVE
➢ Management is necessary for accomplishment of objective.
➢ Management make it possible to take optimum utilization of resource which helps to achieve
business objectives
[Link] IN PROFIT
➢ Generally business units work with the motive of profit.
➢ Capable and skill manager with their capacity make the maximum and the most economical
utilization of available resource and earn maximum profit.
➢ Therefore, it is rightly said that profit is the barometer for success of business.
[Link] FOR SUCCESS OF BUSINESS
➢ Success or failure of business depends on management.
➢ If small scale industry can convert itself into a largescale industry, then its entire credit goes to
Management.
➢ Efficient management help to convert a loss-making unit to profit making unit.
MANAGEMENT as a profession

Meaning: Profession is an activity where specialized knowledge in specific field is acquired and it
is used for the welfare of the entire society.
➢ In return fees is charged.
➢ Example Doctor, lawyer, C.A, etc.

Characteristics

[Link] OF SPECIALISED KNOWLEDGE:

➢ As per nature of profession specialized knowledge is required in it.
➢ e.g. L.L.B degrees for the profession of lawyers.
➢ Same BBA, MBA, degrees are necessary for the specialized knowledge of management.

[Link] IN KNOWLEDGE AND RESEARCH

➢ Like other professions, in management too, due to experience and training there is increase in
knowledge and research.
[Link] ASSOCIATION
➢ All professionals form their association.
➢ Management in the same way has its own association
➢ it’s gives education and training of management.
➢ IIM (Indian institute of management) imparts management education in India.
➢ This institute work for the development of the profession of management.
[Link] OF CODE OF CONDUCT
➢ Each of the professional association frame code of conduct for its members.
➢ It is mandatory for all members to follow the code of conduct.
5. MORAL RESPONSIBILITY
➢ Moral responsibility it’ an important factor in any profession.
➢ All the professional must be loyal to their profession and need to fulfil their moral responsibility.
➢ E.g. A Charted accountant must be loyal to his clients and should not disclose any information of
his clients.

Top level Middle level Bottom level

About Top level is the supreme authority Middle level is the link Bottom level is the operation
between top and bottom and function.
level
 Includes It includes board of directors, It includes department officers It includes jobbers,
managing directors, general and experts. supervisors and foreman.
managers, CEO
Also known as Higher level of management Officer’s level Supervisions’ level

Primary duty To set the goal of business. To implement the orders and To plan routine work of the
instructions of CEO. department.
Solution It gives solution of complex It gives solution of functioning It gives solution of genuine
problems of management. problems to sub division. problems of workers.
No of members Less More than top, More
Less than bottom.
Steps To take steps to plan for enterprise To take steps to increase
efficiency and
effectiveness of activity.
Budget To sanction the budget prepared by To prepare the budget for each
middle level management. department.
Secondary duty To select CEO and general manager To encourage the employees
and assign them authority and in department.
responsibility.
Decision risk More risky Less risky Least risky

• Function of management
[Link]
➢ “Even god cannot change the past, but men can change the future”.
➢ In present give prior thought to the future it is known as planning.
➢ Management begins with planning. When in advance it is widely considered what work, who
will do, when, how and when work is finished for the achievement of predetermined objective, it
is known as planning.
➢ Due to planning all the activities of a business are undertaken in a systematic manner.
[Link]
➢ Organization is a structure for the assignment of authority and responsibility among individuals
working for the achievement of common objective.
➢ The activities of business are divided among different section and various group of people for the
accomplishment of objective.
➢ Planning is the brain of business unit while organization is its physical structure.
[Link]
➢ Employees are arms and legs (limbs) of unit.
➢ where there is a business organization there will be existence of staff.
➢ Any organization without staff is like a mere Skeleton.
➢ Staffing include selection, training, transfer, promotion, dismissal, retirement, and welfare
activities of employees.
➢ Staffing function studies problem related to employees.
➢ At present staffing also included man- power planning human resource development, education
of work job analysis etc.
[Link]
➢ Direction means to guide and to supervise the employee for the accomplishment of objective.
➢ For the achievement of objective, it is necessary to give direction to employee. Direction include
various activities like to direct the subordinate to supervise them, to give order and instructions,
to motivate the workers etc.
➢ Direction is continuous process it is required at every level of management.

[Link]
➢ Control is the function of maintaining balance among efforts, results, resources and objective.
➢ Controlling is the last function of management.
➢ The function of controlling is to see whether all the business activities are done according to
planning or not.
CO – ORDINATION
Meaning: To bring co-ordination and harmony among the different function carried out by different
departments in the business unit is called co-ordination.
Characteristics of co- ordination
➢ Co-ordination is present in all function of management.
➢ Co-ordination is present in every level of management.
➢ Effective communication is required for success of co-ordination.
➢ Co-ordination provide optimum utilization of business resource.
Importance of management
➢ Co-ordination makes management function effective.
➢ Co-ordination makes business activity easy.
➢ No possibility of duplication of work.
➢ work never left incomplete.
➢ Maintain harmony among all departments.
FUNCTIONAL AREA OF MANAGEMENT
[Link] MANAGEMENT
➢ The function of marketing management is to get the information about the market demand.
➢ Marketing management is the activity of providing goods or service from producer to customer.
➢ Marketing management include exchange of good with money as well as market research,
distribution method, sale promotion, storage, insurance etc.
➢ FUNCTIONS OF MARKETING MANAGEMENT
1 PRODUCT OR PRODUCT MIX
2 PRICES
3 DISTRIBUTION
4 PROMOTION
[Link] RESOURCE MANAGEMENT
➢ Human resource management is the process of managing employees.
➢ H.R.M includes selection, training, promotion, and direction to the employee.
➢ Every business units take care of its asset like land, building, machine, furniture, and vehicle.
➢ Just like that employees treated as a live asset of business.
CHARACTERTISC OF HRM
➢ Basic functions of human resource management are to manage the employees as they are valuable
asset.
➢ It provides proper training and thus developed employees for the job.
➢ Human resource management check performance of employee and place them at right position.
IMPORTANCE OF HRM
➢ Efficiency of employee is increase.
➢ Profit of business is increase.
➢ Prestige of business is maintained.
➢ Feeling of oneness among employee is developed.
➢ Reduction in labour turnover rate is seen.
➢ Higher standard for the quality of good or service are maintained.
 FINANCIAL MANAGEMENT
➢ Financial management means the function of acquisition, utilization and allocation of capital.
FUNCTION OF FINANCIAL MANAGEMENT
➢ To Estimate financial need
➢ To prepare budget
➢ To allocate funds
➢ To form financial policy.
➢ To plan for taxes.
➢ To make arrangements of assets.
➢ To decide capital structure and select sources of acquisition of capital.
PRODUCTION OF MANAGEMENT
Production management is the process which includes production planning, deciding programmed
maintaining co-ordination, direction and keeping control.
FUNCTION OF PRODUCTION MANAGEMENT
➢ To decide Production plan
➢ To undertake Production plan.
➢ To select product development as well as product mix.
➢ To select technology and machinery.
➢ To take decision regarding selection of location as well as layout.
➢ To have quality control.
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