Class 12 – Business Studies
Chapter 1: Nature and Significance of
Management
1. Meaning of Management
Management is a systematic process that involves planning, organising, staffing, directing
and controlling the activities of an organisation. The main purpose of management is to
achieve pre-determined goals by utilising human and physical resources efficiently and
effectively. Efficiency refers to completing work with minimum cost and resources,
whereas effectiveness means achieving the desired objectives on time.
2. Objectives of Management
2.1 Organisational Objectives
Organisational objectives focus on the overall growth and success of the business.
Management ensures the survival of the organisation by earning adequate profits. Profit is
necessary for business continuity, while growth helps the organisation remain competitive
and expand its operations.
2.2 Social Objectives
Social objectives refer to the responsibilities of management towards society.
Management should provide good quality products at reasonable prices, avoid unfair trade
practices, create employment opportunities and operate in an ethical manner.
2.3 Personal Objectives
Personal objectives aim at satisfying the individual needs of employees. These include fair
remuneration, job satisfaction, recognition, career growth and personal development.
Achieving personal objectives increases employee motivation.
3. Importance of Management
Management plays a crucial role in achieving organisational goals by coordinating
individual efforts. It improves efficiency by reducing costs and wastage. Management
creates a dynamic organisation by adapting to environmental changes. It also helps
employees achieve personal goals and contributes to social welfare.
4. Nature of Management
Chapter 1: Nature and Significance of
Management
1. Meaning of Management
Management is a systematic process that involves planning, organising, staffing, directing
and controlling the activities of an organisation. The main purpose of management is to
achieve pre-determined goals by utilising human and physical resources efficiently and
effectively. Efficiency refers to completing work with minimum cost and resources,
whereas effectiveness means achieving the desired objectives on time.
2. Objectives of Management
2.1 Organisational Objectives
Organisational objectives focus on the overall growth and success of the business.
Management ensures the survival of the organisation by earning adequate profits. Profit is
necessary for business continuity, while growth helps the organisation remain competitive
and expand its operations.
2.2 Social Objectives
Social objectives refer to the responsibilities of management towards society.
Management should provide good quality products at reasonable prices, avoid unfair trade
practices, create employment opportunities and operate in an ethical manner.
2.3 Personal Objectives
Personal objectives aim at satisfying the individual needs of employees. These include fair
remuneration, job satisfaction, recognition, career growth and personal development.
Achieving personal objectives increases employee motivation.
3. Importance of Management
Management plays a crucial role in achieving organisational goals by coordinating
individual efforts. It improves efficiency by reducing costs and wastage. Management
creates a dynamic organisation by adapting to environmental changes. It also helps
employees achieve personal goals and contributes to social welfare.
4. Nature of Management
