Class 12 Business Studies Chapter 1 Notes (Nature & Significance of Management)

As a Class 12 Business Studies student, you know that preparing for the BST subject becomes easier when you have well-structured and exam-focused notes in front of you.

Our expert team has prepared Class 12 Business Studies Chapter 1 (Nature and Significance of Management) notes to help you understand the fundamentals of management and its role in achieving organizational goals.

On this page, students will learn the meaning of management, its characteristics, objectives, importance, and how management helps organizations work efficiently.

Additionally, you can understand management as a process, goal-oriented activity, pervasive function, multi-dimensional concept, continuous process, group activity, dynamic function, and intangible force.

Let’s start.

Before you proceed, below are the quick details:

Class: 12
Subject: Business Studies
Chapter Number: 1
Chapter Name: Nature & Significance of Management

Let's get started!

Management	Features / Characteristics of Management
Objectives of Management	Importance of Management

Management

Management is a process of getting things done with the aim of achieving goals effectively and efficiently. In other words, “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.”

Management is said to be a Process

Process refers to series or sequence of steps, management is a process because it performs series of functions to get the things done. These functions are planning, organizing, staffing, directing and controlling.

Features / Characteristics of Management

Management is a Goal-oriented Process

Every organization is established to achieve some goals. Goals are the basic reason for the existence of the organization. Different organizations have different goals. Management units/combines the efforts of different individuals in the organization for achieving these goals. For example : The goal of a retail store may be to increase sales, but the goal of a school is to impart education to children.

Management is Pervasive

Management is pervasive as it is required in all organizations, in all departments and at all levels. Management is a universal phenomenon. The use of management is not restricted to business firms only, it is applicable in profit making, non-profit making, even a hospitals, schools, club, and house has to be managed properly.

Management is Multi-dimensional

Management of Work : All the organization exists for the performance of some work. Management activities aims at achieving goals to be accomplished. The tasks or work depends upon the nature of the business.
Management of People : Human resources are an organization's greatest asset. Management is concerned with “getting things done through people” which is not an easy task.
To manage the people two dimensions need to be covered : i. Dealing with employees as individuals with diverse needs and behaviour ii. c) Dealing with employees as a group of people.
Management of Operations : Management of operations is interlinked with both management of work and the management of people. As every organization provides certain goods and services to society which involves a process of converting inputs into desired outputs.

Management is a Continuous Process

Management is a continuous or never-ending function. All the functions of management are performed simultaneously. The process of management is a series of continuous, composite, but separate functions. Managers perform ongoing series of functions continuously in the organization. For example : Managers at the top level spends more time in planning and organizing than managers at lower levels of the organization.

Management is a Group Activity

Management consists of several people who work as a group. Efforts of all the members were directed towards the achievement of common goals. Each and every member of the organization have a different purpose for joining the organization. But as a member of the organization, they work towards fulfilling the common organizational goal.

Management is a Dynamic Function

Management must make changes in goals, objectives, and other activities according to changes taking place in the environment. To be successful an organization must change itself and its goal according to the needs of the environment. For example : MC Donald, the fast-food giant made major changes in its menu to be able to survive in the Indian market, e.g., it offers the aloo tikki burger.

Management is an Intangible Force

Management function cannot be physically seen but its presence can be felt. The presence of management can be felt by seeing the orderliness and coordination in the working environment. For example : When targets are met according to plans, employees are happy and satisfied, and there is orderliness instead of chaos.

Objectives of Management

Organizational Objectives: These objectives aim at the prosperity and growth of the organization. Generally, it is assumed that profit maximization is the main objective of every organization, but it is not true. The managers try to develop and attain a variety of objectives in all management areas which reduces costs and brings maximum prosperity to the organization.
The three important organizational objectives of a manager are:
1. Survival: The basic purpose of every organization is to survive and exist in the competitive market for a long period of time, and it is possible only when it can cover its cost.
2. Profit: The most important objective of every organization is earning an adequate amount of profit. Profit is essential for covering the costs and risks of the business.
3. Growth: The business organization must grow and expand its activities. The success of any organization is measured by the growth rate, and growth is measured in terms of sales, number of branches, number of products, number of employees, etc.
Social Objectives: Social objectives of the organizations deal with the commitment of the organization towards society. The major social objectives are:
1. Supply of good quality products at reasonable prices.
2. Contribution towards desirable civic activities. Providing basic amenities like schools and crèches to employees.
3. Generation of economic wealth.
4. Providing employment opportunities to the weaker section of society.
5. Using environmentally friendly methods of production.
6. Organizing educational, health and vocational training programmes.
Personal Objectives: As employees are the most important resources of every company and satisfied and motivated employees contribute maximum to the organizations. The main individual objectives of management are:
1. Competitive salary.
2. Personal growth and development.
3. Peer recognition (self-respect and respect for colleagues).
4. Social recognition.
5. Good and healthy working conditions.

Importance of Management

Management Helps in Achieving Group Goals - Management tries to integrate the objectives of individuals along with organizational goals.
Management Improves Efficiency - Management insists on efficiency and effectiveness in the work through planning, organizing, staffing, directing and controlling.
Management Creates a Dynamic Organization - Organizations must survive in a dynamic environment, so managers keep making changes in the organization to match the environmental changes. The employees in the organization are generally resistant to change. Efficient management motivates employees to adopt changes willingly by convincing them that change is not only beneficial for the organization, but it improves the employee’s work also in the competitive world.
Management Helps in Achieving Personal Objectives - The manager leads the people in such a manner that along with the organizational goal, the individual goal of employees is also achieved. As organizational goals and individual goals are in one direction only. Individual wants to earn more, and organization wants maximum production. Employees can earn more by producing more. This will fulfill the objectives of both groups.
Management Helps in the Development of Society - Efficient management always has multiple objectives, they give due importance to social obligations, towards different groups of people such as employees, customers, suppliers, etc. It insists on providing quality goods, competitive salaries, creating employment opportunities, etc. by increasing production management also contributes to an increase in GDP and leads to the growth of the nation.

The End

👉

A List of Notes:

👉

See More:

Click here to access more Business Studies Class 12 educational content (worksheets, case studies, MCQs, sample papers, and more).

CBSE Class 12 Business Studies Chapter 1 Notes: Nature & Significance of Management