Nature & Significance of Mngt - commerce classes by deepak tanwer.pptx

Nature and significance of management ch1 business studies class 12 ppt helpful for teachers of business studies

1. Class XII Business Studies Chapter 1 NATURE AND SIGNIFICANCE OF MANAGEMENT – concept, features, importance, Objectives and nature of management Prepared by NARENDRA VERMA(PGT COMM, KV HFC BARAUNI DEEPAK KUMAR(PGT COMMERCE, KV KATIHAR)

2. A process of getting the work done by people to achieve the predetermined goals with effectiveness and efficiency . Link of free internet resources for the various definitions of Management by different authors https://youtu.be/JFPVgyT8ePw

3. EFFECTIVENESS To achieve goals within the given time period e.g. Hero Ltd.’s target is to produce 20,000 shirts per month at a cost of Rs.150 per shirt. The Production Manager could achieve this target at a cost of Rs.170 per shirt finally but in time

4. EFFICIENCY To achieve goals at minimum cost and at maximum benefit e.g. Hero Ltd.’s target is to produce 20,000 shirts per month at a cost of Rs.150 per shirt. The Production Manager could achieve this target at a cost of Rs.148 per shirt finally without compromising the quality of the shirts.

5. CHARACTERISTICS OF MANAGEMENT CODE- M y G rand P a C an I nstill G ood D eeds Management is M ultidimensional Management is G oal-oriented process Management is all P ervasive Management is C ontinuous process Management is I ntangible force Management is G roup activity Management is D ynamic function/process

6. FEATURES OF MANAGEMENT Management is M ultidimensional Management is a complex activity as it has three dimensions: Management of Work It translates the work in terms of goals and assigns means to achieve them. Management of People It deals with employees as individuals with diverse needs and behaviour Management of Operations It manages the operations through which the inputs are converted into outputs

7. Management has no justification to exist without goals. The success of management is measured by the extent to which the established goals are achieved Management is all P ervasive Management is present in all types of organisations; small, big, social, political, etc. and within all departments Management is G oal-oriented process

8. Management is continuous process as it is required as long as the organisation exists. It is composite process of the various sequential functions; planning, organising, staffing, directing and controlling Management is I ntangible force Management cannot be seen and touched but it can be felt when an organisation achieves its goals successfully that is why it is intangible force Management is C ontinuous process

9. Management is concerned with group performance rather than an individual performance. It involves the use of group efforts in pursuit of predetermined goals. Management is D ynamic function/process An organisation is affected by its external environment which includes social, political and economic factors. In order to be successful, it must change itself and its goals as per the needs of the environment. Management is G roup activity

10. CASE STUDIES If a manager is able to achieve the target of production of 5000 units but at a higher cost. Is he efficient or effective? “The activities involved in managing an enterprise are common to all organisations whether economic, social or political”. Which characteristic of management is highlighted by this statement? “Successful organizations do not achieve their goals by chance but by following a deliberate process”. Identify the process highlighted here. “ Directors of Bhuvan Ltd. assigned the task of implementing the plans and policies framed by the board to all the departmental heads. Departmental heads appointed supervisors, superintendent, executives, etc. so that work can be assigned to workers as per the plan and supervisors kept a check on workers as per the plan.” Identify the feature of management highlighted in above paragraph.

11. OBJECTIVES OF MANAGEMENT

12. Objectives are the end results that are achieved by an organisation. All activities of management are derived by these objectives. These objectives are divided in three categories:

13. Organisational Objectives Social Objectives Personal (Individual) Objectives

14. ORGANISATIONAL OBJECTIVES Organisational Objectives are short-term and medium-term goals that an organisation seeks to accomplish. These are also known as economic objectives of business. Every organisation aims to achieve three organisational objectives:

15. CODE- SPG

16. Survival The first and foremost objective of any organisation is to exist in market till it does not start earning profit. Therefore, initially an organisation has to earn enough revenue to meet out its daily or monthly expenses which are necessary to continue the business. Profit When it has passed enough time of survival of an organisation, it has to start earning profit, only then it can continue in long run. Profit is a reward of risk bearing and it also works as an incentive to succeed. Growth After earning continuous and enough profit, an organisation has to focus on its growth also. Growth can be measured in terms of increasing: sales volume, market share, number of employees, number of products, number of branches, capital investments, etc.

17. SOCIAL OBJECTIVES Social Objectives mean the objectives which are to be achieved by the management for the welfare of the society Management has obligation towards the various social groups including owners, employees, consumers, suppliers, government, environment, etc. Some of the major social objectives of management are:

18. CODE- E lephant & U mbrella L ying A t T he E arth Protection of E nvironment by adopting environment friendly methods of production Avoidance of U nfair trade practices such as overcharging, black-marketing, hoarding, etc. Conducting a L awful business Providing basic A menities to the employees T imely payments to the suppliers Creating E mployment opportunities for weaker and socially deprived sections

19. PERSONAL OBJECTIVES Personal Objectives mean objectives set to satisfy individual needs/objectives of the employees Many employees work in an organisation, who come from different backgrounds and having diverse needs. Management needs to set its overall objectives in such a way that by achieving common objectives of the organisation, an employee also fulfills his own needs or objectives. Some of the major individual objectives are:

20. CODE- F ull S how H osted by W izard F inancial needs like salaries and other facilities as per capabilities S ocial needs like self-respect and attachment with colleagues H igh level needs like career path, promotion policies, etc. Good W orking conditions in organisation

21. CASE STUDIES Unique Ltd. Is using eco-friendly method of production. Identify the objective it is trying to achieve. An organisation arranged yoga classes for its employees to improve their concentration level. State the objective of management it is trying to achieve. ‘Gen X Fashions’ is planning to launch casual wear line for college students in a year’s time to extend its product line. At present the company has reduced the prices of its formal wear by 10% to retain its existing market-share. Giving suitable reasons identify the objectives of management which Gen X Fashions is fulfilling by undertaking such activities.

22. CASE STUDIES Intello corp. is in the field of providing security alarms for households. It has put in a number of years and has reached a stage of achieving good profits and growth avenues. The company realises that employees are its most important assets and thus has always provided them with competitive salary and good working conditions. It also takes care of the society and has opened two hospitals where free treatment is provided to people from poor families. Is the management of Intello corp. able to fulfil its objectives? Justify your answer. 5. In the first year of operation, the revenues generated by Max Industries from sale of its products are just sufficient to cover the cost of production. ( i ) Which organisational objective is met in the given case? (ii) What are the two other organisational objectives, which the company is yet to achieve?

23. CODE- S ister G rona is E fficiently D ying with P lague Management helps in S ocietal development Management helps in achieving G roup goals Management helps in increasing E fficiency Management creates D ynamic organisation Management helps in achieving P ersonal objectives Sister Grona

24. 1.Management helps in S ocietal development As management is committed to fulfill its social objectives, it plays very important role in the development of society by providing jobs and increasing standard of living with qualitative goods and services. 2.Management helps in achieving G roup goals As management is to lead the individuals together, it has to create team spirit among them. It integrates group efforts to achieve common goals of the organisation. 3.Management helps in increasing E fficiency Through better planning and applying other functions, management strives to reduce costs and to increase productivity. In this way, management is necessary to increase efficiency of the organisation.

25. 4.Management creates D ynamic organisation Generally employees resist to changes as it is a big challenging to enter into some new process/way but by applying management successfully, the employees get ready to adapt to the changes happily. In this way, management is significant to create a dynamic organisation. 5.Management helps in achieving P ersonal objectives A manager has to motivate employees showing that by achieving the common goals of the organisation, they also achieve their personal objectives. Therefore, management is helpful in achieving personal objectives.

26. CASE STUDIES 1. Management at Stella Ltd. took steps to modernise their plants, keeping in tune with the latest technological developments in environment. To ensure that workers do not feel out of place with new technology, proper training facilities are arranged for them. They are thus able to pick up the required skills and are rather happy with the new and improved machines. Workers are encouraged to share their feedback, suggestions, complaints and grievances, if any. This motivates the employees to put in their best for goal achievement of the organisation. The company is also able to supply good quality goods to the members of the society. Identify and explain the importance of management highlighted in the above case. 2. Alpine Automobiles aims to produce and sell 2,00,000 cars in 2019. To achieve this objective, the production department strives for timely production and sales department takes all possible steps to sell them. Due to combined efforts of all the departments, the company is able to achieve its target. ( i )Which significance of management is highlighted in the given statement? (ii)Mention two other points of importance of management

27. CASE STUDIES 3. Nishtha is the marketing manager of a company selling laptops. She plans the target sale of 2000 laptops per month. She allocates necessary resources to carry out the plan. She has six salesmen working under her. She works with them, guiding and motivating them to achieve the target sales. At the end of the month, after comparison of actual sales with the target sales she found that actual sales exceeded the target sales. She rewards the efficient employees to motivate them. How does Nishtha prove the importance of management? 4. “Management helps to implement new changes in the organisation.” Which importance of management is referred in the statement?

28. What management is in actual irrespective of its definition and how it is perceived hints towards its nature. On the basis of the observations made by various prominent scholars, nature of management has been compared in three dimensions: 1.Management as a Science, 2.Management as an Art and 3. Management as a Profession

29. Management as a Science What is a science? Science is a systematized body of knowledge, acquired through observation and experimentation which explain general truths and operation of general laws. Science has its own features, management needs to be compared on these features to conclude whether management is a science or not.

30. Features of Science 1.Systematized Body of Knowledge All the concepts in science have some cause and effect relationship. Similarly, Management concepts also have this cause and effect relationship. 2. Principles based on Observation and Experimentation All the principles in science have been developed on the basis of the observation made and experimentation done by the various scientists. Similarly, principles of management are also developed on the basis of observation and experimentation by various authors. 3.Universal Validity All the results of scientific principles are universally valid; they are always same in all circumstances. But, this feature does not apply in management as it is related to human behaviour and in all circumstances, same results cannot be achieved.

31. Conclusion As principles of management are not universally valid, management is still considered a science but not an exact science. It can be termed as Inexact/ Applied/ Social Science

32. Management as an Art What is an art? An art is a skilful and personalised application of some existing knowledge to achieve some desired results. Art has its own features, management needs to be compared on these features to conclude whether management is an art or not.

33. Features of Art 1.Existence of Theoretical Knowledge Any art always has its theoretical knowledge i.e. literature on that art. Similarly, management also has its theoretical knowledge which can be learnt to expertise managerial skills. 2.Personalised Application Even after learning literature on any art, its application differs from person to person. Similarly, management can also be applied in personalised way even after learning the same literature. 3.Based on Practice and Creativity An art is developed and sharpened with continuous practice and application of creativity. Similarly, managerial skills can also be developed by continuous practice and creativity.

34. Conclusion As all the features of an art are applied in management also, it can be termed as an art completely. Therefore, Management is a full-fledged art.

35. Management as a Profession What is a profession? A profession is an occupation which is practised after gaining some specific and specialised skills, which has restricted entry. A profession has its own features, management needs to be compared on these features to conclude whether management is a profession or not.

36. Features of Profession 1.Well-defined Body of Knowledge Every profession has its own well-defined body of knowledge. It deals with courses and diploma available to become specialised in that profession. E.g. To become a lawyer, courses/examinations are L.L.B., LL.M., CLAT, etc. In management also, such courses are available to become specialised. E.g. B.B.A., M.B.A., etc. 2.Restricted Entry Every profession like C.A., lawyer, doctor, etc. has restricted entry. Without gaining the specialised knowledge, anybody cannot be called a professional one. In management, this feature does not hold good as there is no restricted entry to become a manager. Anyone can act as a manager if opportunity provided, whether he will be a successful one, it depends on his knowledge, skills and experience.

37. Features of Profession continued 3.Professional Association All professionals are the members of some association which prepares policy, courses, rules etc. And also provide certifications. E.g. for C.A.’s- ICAI; for Doctors- MCI, etc. In management, this feature also does not hold good. However, there is an association for the managers i.e. AIMA but it is not legally necessary to remain the member of this for all managers of India. 4.Ethical Code of Conduct Professional associations enforce their code of conduct on their members to keep their services ethical. It is mandatory for all the members to abide by that. But, in management, it does not happen as all managers are not legally bound to become the members of AIMA. Therefore, no point of following ethical code of conduct framed by AIMA. 5.Service Motive All the professions keep their service motive first. They provide services for the welfare of society without any partiality. But, a manager has to provide his services as per the objectives of the organisation in which he is working. He cannot go beyond that.

38. Conclusion As only single feature of profession is fully applied in management and other features are still in development phase, management cannot be perceived as profession. Therefore, management is not a full-fledged profession.

39. Code to remember all the features of three of the dimensions Cholera Rabies O x U nder S helter T rains P arrots & P igeons W hich A re S preading C holera & R abies

40. CODE- O x U nder S helter T rains P arrots & P igeons W hich A re S preading C holera & R abies Management as a Science 1.Principles based on O bservation and Experimentation 2. U niversal Validity 3. S ystematised Body of Knowledge Management as an Art 1.Existence of T heoretical Knowledge 2. P ersonalised Application 3.Based on P ractice and Creativity Management as a Profession 1. W ell-defined Body of Knowledge 2.Professional A ssociation 3. S ervice motive 4.Ethical C ode of Conduct 5. R estricted Entry

41. CASE STUDIES 1.‘Sonu Nigam’ the famous playback singer always spends time for practice and adds his creativity in his singing. Like Sonu Nigam, Mr. Rajiv, manager of Headlines Ltd. uses his creativity and practice management principles under different situations to manage the business. The employees are happy and satisfied as he every day reward employees for their punctuality and efficiency. ( i )Identify the nature of management highlighted above. (ii)Name other two aspects of nature of management. 2. Aman , Ahmed and Ally are partners in a firm engaged in the distribution of dairy products in Maharashtra state. Aman is a holder of Senior Secondary School Certificate from CBSE with Business Studies as one of his elective subjects. Ahmad had done his post-graduation in History and Ally in dairy farming. One day there was a serious discussion between Ahmad and Ally regarding the nature of management. Ahmad argued that management was a profession. Whereas Ally argued against it saying that the legal and medical professions are the only professions because they fulfil all the conditions of profession. Aman on the basis of his knowledge of business studies explained the nature of management as a profession to Ahmad and Ally. Explain, how Aman would have satisfied both Ahmad and Ally?

42. CASE STUDIES 3.Mr Sidharth Aggarwal has completed his education of MBA. During the course of his MBA he got the full theoretical knowledge of management. Now he has a full knowledge of management and is ready to work as a manager. He got selected in ‘Volta Limited’ for the post of Finance Manager. Within a few days of his joining the company he speeded up the working of his department, although his predecessor, the finance Manager working prior to Mr Aggarwal had been more qualified and experienced. Mr Aggarwal faced several problems in the course of his working, but he never felt discouraged but overcome them with firmness. During this period he got the opportunity of visiting several other companies. Besides, he participated in several seminars related to the problems of management and learnt the modern methods of management. He had a special interest in reading and writing articles on the problems of management. Because of this reason, there has been a continuous growth in his knowledge and experience of management. Now, he is working as a successful manager. He has obtained a distinct recognition in the field of finance ( i )In the above paragraph, three points of a concept of the nature of management have been described. Identify this concept. (ii)Describe briefly the three points of the concept identified in (a) by quoting the relevant lines

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