Principles of Management
Class 12 Business Studies (CBSE)
1. Meaning of Management
Management is the process of planning, organising, staffing, directing and
controlling the efforts of organisational members and the use of other resources to
achieve predetermined objectives efficiently and effectively.
2. Nature of Management
Management has the following characteristics:
1. Management is a goal-oriented process – It aims at achieving organisational
objectives.
2. Management is pervasive – It is required in all types of organisations and at all
levels.
3. Management is multidimensional – It involves management of work, people
and operations.
4. Management is a continuous process – It involves continuous planning,
organising, staffing, directing and controlling.
5. Management is a group activity – It requires collective efforts of individuals.
6. Management is a dynamic function – It adapts to changes in the environment.
7. Management is an intangible force – It cannot be seen but its presence can be
felt.
3. Importance of Management
1. Helps in achieving group goals
2. Increases efficiency
3. Creates a dynamic organisation
4. Helps in achieving personal objectives
5. Helps in the development of society
4. Levels of Management
, (a) Top Level Management
Chairman, Managing Director, CEO
Determines objectives and policies
(b) Middle Level Management
Departmental managers
Implements plans and policies
(c) Operational Level Management
Supervisors and foremen
Oversees day-to-day activities
5. Principles of Management
Principles of management are broad guidelines for decision-making and behaviour
of managers.
Characteristics of Principles of Management
Universal applicability
Flexible nature
Based on practice and experimentation
Contingent in nature
Cause and effect relationship
6. Fayol’s 14 Principles of Management
1. Division of Work
Work should be divided into small tasks to improve efficiency and specialisation.
2. Authority and Responsibility
Authority gives managers the right to give orders, while responsibility creates
obligation.
3. Discipline
Employees must obey rules and regulations of the organisation.
Class 12 Business Studies (CBSE)
1. Meaning of Management
Management is the process of planning, organising, staffing, directing and
controlling the efforts of organisational members and the use of other resources to
achieve predetermined objectives efficiently and effectively.
2. Nature of Management
Management has the following characteristics:
1. Management is a goal-oriented process – It aims at achieving organisational
objectives.
2. Management is pervasive – It is required in all types of organisations and at all
levels.
3. Management is multidimensional – It involves management of work, people
and operations.
4. Management is a continuous process – It involves continuous planning,
organising, staffing, directing and controlling.
5. Management is a group activity – It requires collective efforts of individuals.
6. Management is a dynamic function – It adapts to changes in the environment.
7. Management is an intangible force – It cannot be seen but its presence can be
felt.
3. Importance of Management
1. Helps in achieving group goals
2. Increases efficiency
3. Creates a dynamic organisation
4. Helps in achieving personal objectives
5. Helps in the development of society
4. Levels of Management
, (a) Top Level Management
Chairman, Managing Director, CEO
Determines objectives and policies
(b) Middle Level Management
Departmental managers
Implements plans and policies
(c) Operational Level Management
Supervisors and foremen
Oversees day-to-day activities
5. Principles of Management
Principles of management are broad guidelines for decision-making and behaviour
of managers.
Characteristics of Principles of Management
Universal applicability
Flexible nature
Based on practice and experimentation
Contingent in nature
Cause and effect relationship
6. Fayol’s 14 Principles of Management
1. Division of Work
Work should be divided into small tasks to improve efficiency and specialisation.
2. Authority and Responsibility
Authority gives managers the right to give orders, while responsibility creates
obligation.
3. Discipline
Employees must obey rules and regulations of the organisation.
