Class XII - Notes; By: Sarabjeet Singh
Chapter 1
Nature and Significance of Management
Management has been defined as a process of getting things done with the aim of achieving goals
effectively and efficiently
Management is an art of getting things done with and through others. It is the process of getting
things done with the aim of achieving goals effectively and efficiently using the available limited
resources.
Effectiveness: means completing the right task to achieve the goal within time.
Efficiency: means completion of task using minimum resources at minimum cost / wastage.
Features of Management: (code to remember: MCDPIG2)
1. Multidimensional: It is multidimensional as it involves management of Work, People and
Operations.
2. Continuous: It is a continuous process i.e. its functions are being performed by all managers
simultaneously. The process of management is continued till an organization exists for attaining its
objectives.
3. Dynamic function: it is a dynamic function since it has to adapt to the changing environment.
4. Pervasive: Management is pervasive in nature. It is used in all types of organizations whether
economic, social or political and at every level of the organization.
5. Intangible Force: It is an intangible force as it cannot be seen but its effect are felt in the form of
results like whether the objectives are met and whether people are motivated or not.
6. 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.
7. Goal oriented Process: It is a goal oriented process, which is undertaken to achieve already
specified and desired objectives.
Functions of management
1. Planning - Setting objectives and targets and formulating an action plan of what is to be done,
how to be done and when to do it. (Thinking in advance about future course of action)
2. Organising - Assignment of duties, task, establishment of authority and responsibility relationship,
allocating the resource required to perform the planned task.
3. Staffing-Finding and placing the right person at the right job at the right time.
4. Directing - Leading, influencing, motivating the staff chosen to perform the assigned task
efficiently and effectively.
5. Controlling - Ensuring/Monitoring the activities in an organisation are performed as per the plan.
Process of setting standard, measuring actual performance, comparing actual performance with
standard and taking corrective action if needed.
Success needs hard-work & preparation!
, Class XII - Notes; By: Sarabjeet Singh
Management objectives
Organisational objectives:
1. Survival:- Ensure that the organisation survives and exists in the future.
2. Profitability:- Earning adequate profit in order to survive and grow.
3. Growth:- Growth indicates how well it exploits the potential opportunities.
Social objectives:
• Producing quality products at reasonable rates
• Generating employment opportunities
• Environmental friendly methods of production.
Personal objectives:
• Meeting the Financial needs like competitive salaries and perks
• Social and safety needs of the employee like peer
• Providing healthy working conditions
• More opportunities for growth and development
Importance of management (code: GDP depends upon Efficient Society)
1. Achieving Group Goals: Management helps in achieving group goals. Manager gives common
direction to the individual effort in achieving the overall goal of the organization.
2. Dynamic organization: Management helps in creating Dynamic organization which could adapt
changing situations easily.
3. Achieving Personal objectives: Management helps in achieving objectives of individuals working in
the organization.
4. Increases efficiency: Management increases efficiency by using resources in the best possible
manner to reduce cost and increase productivity.
5. Development of society: Management helps in the development of society by producing good
quality products, creating employment opportunities and adopting new technology.
Success needs hard-work & preparation!
Chapter 1
Nature and Significance of Management
Management has been defined as a process of getting things done with the aim of achieving goals
effectively and efficiently
Management is an art of getting things done with and through others. It is the process of getting
things done with the aim of achieving goals effectively and efficiently using the available limited
resources.
Effectiveness: means completing the right task to achieve the goal within time.
Efficiency: means completion of task using minimum resources at minimum cost / wastage.
Features of Management: (code to remember: MCDPIG2)
1. Multidimensional: It is multidimensional as it involves management of Work, People and
Operations.
2. Continuous: It is a continuous process i.e. its functions are being performed by all managers
simultaneously. The process of management is continued till an organization exists for attaining its
objectives.
3. Dynamic function: it is a dynamic function since it has to adapt to the changing environment.
4. Pervasive: Management is pervasive in nature. It is used in all types of organizations whether
economic, social or political and at every level of the organization.
5. Intangible Force: It is an intangible force as it cannot be seen but its effect are felt in the form of
results like whether the objectives are met and whether people are motivated or not.
6. 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.
7. Goal oriented Process: It is a goal oriented process, which is undertaken to achieve already
specified and desired objectives.
Functions of management
1. Planning - Setting objectives and targets and formulating an action plan of what is to be done,
how to be done and when to do it. (Thinking in advance about future course of action)
2. Organising - Assignment of duties, task, establishment of authority and responsibility relationship,
allocating the resource required to perform the planned task.
3. Staffing-Finding and placing the right person at the right job at the right time.
4. Directing - Leading, influencing, motivating the staff chosen to perform the assigned task
efficiently and effectively.
5. Controlling - Ensuring/Monitoring the activities in an organisation are performed as per the plan.
Process of setting standard, measuring actual performance, comparing actual performance with
standard and taking corrective action if needed.
Success needs hard-work & preparation!
, Class XII - Notes; By: Sarabjeet Singh
Management objectives
Organisational objectives:
1. Survival:- Ensure that the organisation survives and exists in the future.
2. Profitability:- Earning adequate profit in order to survive and grow.
3. Growth:- Growth indicates how well it exploits the potential opportunities.
Social objectives:
• Producing quality products at reasonable rates
• Generating employment opportunities
• Environmental friendly methods of production.
Personal objectives:
• Meeting the Financial needs like competitive salaries and perks
• Social and safety needs of the employee like peer
• Providing healthy working conditions
• More opportunities for growth and development
Importance of management (code: GDP depends upon Efficient Society)
1. Achieving Group Goals: Management helps in achieving group goals. Manager gives common
direction to the individual effort in achieving the overall goal of the organization.
2. Dynamic organization: Management helps in creating Dynamic organization which could adapt
changing situations easily.
3. Achieving Personal objectives: Management helps in achieving objectives of individuals working in
the organization.
4. Increases efficiency: Management increases efficiency by using resources in the best possible
manner to reduce cost and increase productivity.
5. Development of society: Management helps in the development of society by producing good
quality products, creating employment opportunities and adopting new technology.
Success needs hard-work & preparation!
