NCERT Solutions of Class 12th: Ch 1 Nature and Significance of Management Business Studies I
→ Management is based on a systematic body of knowledge comprising well- defined principles based on a variety of business situations. This knowledge can be acquired at different colleges and professional institutes and through a number of books and journals. The subject of management is taught at different institutions For example, Indian Institute of Management (IIM) in India in which entry to different institutes is usually through an examination.
→ The professionals require an educational degree through an examination. However, there is no restriction on anyone being designated or appointed as manager in any business enterprise. But professional knowledge and training is considered to be a desirable qualification, since there is greater demand for those who possess degrees or diplomas from reputed institutions.
→ All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates and enforces a code of conduct. In management also, there are several associations of practising managers in India, like the AIMA (All India Management Association) that has laid down a code of conduct to regulate the activities of their members. However, no compulsion for managers to be members of such an association nor does it have any statutory backing.
→ All professions are bound by a code of conduct which guides the behaviour of its members. The basic motive of a profession is to serve the clients by rendering dedicated and committed service. In management also, have a specific Code of Conduct but, it is not obligatory for the managers to abide by them. The basic purpose of management is to help the organisation achieve its stated goal. A good management team that is efficient and effective automatically serves society by providing good quality products at reasonable prices.
3. Coordination is the essence of management. Do you agree? Give reasons.
→ Growth in size: When an organisation grow in size the number of people employed by the organisation also increases where each person differ in their habits of work, background, interests and individual goal also. It may become difficult to integrate their efforts and activities towards the common goals of the organisation. Therefore, for organisational efficiency, it is important to harmonise individual goals and organisational goals through coordination.
→ Functional differentiation: Functions of an organisation are divided into departments, divisions and sections such as finance, production, marketing or human resources. All these departments may have their own objectives, policies and their own style of working. All departments and individuals are interdependent and they have to depend on each other for information to perform their activities. The activity of each department needs to be focused on the attainment of common organisational goals. The process of linking the activities of various departments is accomplished by coordination.
Being effective or doing work effectively basically means finishing the given task. Effectiveness in management is concerned with doing the right task, completing activities and achieving goals. In other words, it is concerned with the end result.
But it is not enough to just complete the tasks. Completing task efficiently is also important. Efficiency means doing the task correctly and with minimum cost. There is a kind of cost-benefit analysis involved and the relationship between inputs and outputs. If by using less resources more benefits are derived then efficiency has increased. Efficiency is also increased when for the same benefit or outputs, fewer resources are used and less costs are incurred. Management is concerned with the efficient use of the available resources, because they reduce costs and ultimately lead to higher profits.
For management, it is important to be both effective and efficient. Effectiveness and efficiency are two sides of the same coin.
Usually high efficiency is associated with high effectiveness which is the aim of all managers. But undue emphasis on high efficiency without being effective is also not desirable.
with the right qualifications are available at the right places and times to accomplish the goals of the organisation. It involves activities such as recruitment, selection, placement and training of personnel.
workers means simply creating an environment that makes them want to work. Leadership is influencing others to do what the leader wants them to do. A good manager directs through praise and criticism in such a way that it brings out the best in the employee.
(a) an art
(b) a science
(c) both art and science
(a) earning profits
(b) growth of the organisation
(c) providing employment
(d) policy making
(a) top level managers
(c) operational management
(d) all of the above
5. coordination is
(a) function of management
(b) the essence of management
(c) an objective of management
(d) none of the above