BRIGHT RIDERS SCHOOL, ABU DHABI

Grade 12-Business studies Subject

Definition:
Management is an art of getting things done through others. Management can be defined as, the
process of getting things done with the aim of achieving goals effectively and efficiently.
Efficiency and Effectiveness:
.a. Process: refers to the primary function like planning, organising, staffing, directing and
controlling performed by the management to get things done.
b. Effectiveness: means completing the right task to achieve the deputed goal within the time
frame. c. C. Efficiency: means completion of task using minimum resources
Efficiency means doing the task correctly at minimum cost while effectiveness means
completing the task correctly. Although Efficiency and effectiveness are different but they are
interrelated. It is important for management to be both i.e. effective and efficient.
Example : A business produces targeted 1000 units but at a higher cost is effective but not
efficient. Therefore if the business has to be effective and efficient then it has to produce 1000
units within cost.
Characteristics of Management:
1. Goal oriented Process : It is a goal oriented process, which is undertaken to achieve already
specified and desired objectives.
2. Pervasive : Management is pervasive in nature. It is used in all types of organizations whether
economic, social or political and at every level.
3. Multidimensional : It is multidimensional as it involves management of Work, People and
operations.
4. Continuous : It is a continuous process i.e. its functions are being performed by all managers
simultaneously. The process of management continue till an organisation exist for attaining its
objectives.
5. 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.
6. Dynamic function : it is a dynamic function since it has to adapt to the changing environment.
7. Intangible Force : It is an intagible 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.

Objectives of management:
Organisational Objectives: Organizational Objectives can be divided into Survival (Earning
enough revenues to cover cost); Profit (To cover cost and risk); and Growth (To improve its
future prospects).
(a) Survival: Earning enough revenues to cover cost. Management by taking positive decisions
with regard to different business activities ensures survival of business for long term.
(b) Profitability: Earning adequate profit in order to survive and grow. Profits provide a vital
incentive for the continued successful operation of the enterprise
(c) Growth: Growth indicates how well it exploits the potential opportunities. Growth of a
business can be measured in terms of sales volume increase, number of employees, products etc.
Social Objectives: Is to provide quality products at reasonable rates and generating employment
opportunities for disadvantaged sections of society. To provide basic amenities like schools and
crèches to employees and by using environmental friendly methods of production.
Personal Objectives: Includes meeting the financial needs like competitive salaries and perks and
Social and safety needs of the employee like basic amenities, peer recognition etc

Importance of management:
(1) Achieving Group Goals : Management helps in achieving group goals. Manager give
common direction to the individual effort in achieving the overall goal of the organisation.
(2) Increases Efficiency : Management increases efficiency by using resources in the best
possible manner to reduce cost and increase productivity.
(3) Creates Dynamic Organisation : Management helps in creating Dynamic organisation which
could adopt changing situations easily.
(4) Achieving Personal Objectives : Management helps in achieving objectives of individuals
working in the organisation.
(5) Development of Society : Management helps in the development of society by producing
good quality products, creating employment opportunities and adopting new technology.

Management as an Art:
Art refers to skillful and personal application of existing knowledge to achieve
desired results. It can be acquired through study, observation and
experience. The features of art are as follows.
(1) Existence of theoretical knowledge : In every art systematic & organized study material
should be available compulsorily to acquire theoretical knowledge.
(2) Personalised application : The use of basic knowledge differ from person to person and thus,
art is a very personalised concept.
(3) Based on practice and creativity : Art involves the creative practice of existing theoretical
knowledge. All the features of art are present in management so it can be called an art.

Management as a science:
Science is a systematised body of knowledge that is based on general truths which can be tested
anywhere, anytime. The features of science are as follows
(1) Systematized body of knowledge : Science has a systematised body of knowledge based on
principles and experiments.
(2) Principles based on experiments & observation : Scientific principles are developed through
experiments and observations.
(3) Universal Validity : Scientific principles have universal validity and application.
Management has systematic body of knowledge and its principles are developed over a period of
time based on repeated experiments & observation, which are universally applicable. As the
principles of management are not as exact as the principles of pure science, so it may be called
inexact science.
Management as a Profession:
Profession means an occupation for which specialised knowledge and skills are required. The
main features of profession are as follows.
(1) Well defined body of knowledge : All the professions are based on well defined body of
knowledge.
(2) Restricted entry : The entry in every profession is restricted through examination or through
some minimum educational qualification.
(3) Professional Associations : All professions are affiliated to a professional association which
regulates entry and frame code of conduct relating to the profession.
(4) Ethical code of conduct : All professions are bound by a code of conduct which guides the
behaviour of its members
(5) Service Motive : The main aim of a profession is to serve its clients. Management does not
fulfill all the features of a profession and thus it is not a full pledged profession.

Levels of Management : Top, Middle and Lower or Operational levels.

a) Top Level
Consists of Chairperson, Chief Executive Officer, Chief Operating Officer
or equivalent and their team.
Chief task is to integrate and to coordinate the various activities of the
business, framing policies, formulating organisational goals & strategies.
b) Middle Level
Consists of divisional heads, Plant Superintendent and Operations Manager etc.
Main tasks are to interpret the policies of the top management, to ensure the availability of
resources to implement Policies & to coordinate all activities, ensure availability of necessary
personnel & assign duties &responsibilties to them.
c) Lower Level / Supervisory Level
Consists of Foremen and supervisors etc. Main task is ensure actual implementation of the
policies as per directions, bring workers grievances before the management & maintain
discipline
among the workers.

Functions of Management: Planning, Organizing, Staffing, Directing and Controlling.

1. Planning is deciding in advance what to do in future and how to do it.

Coordination: The essence of Management : Coordination is the force which synchronizes all
the functions of management and activities of different
departments.
 It integrates the group efforts.
 It ensure unity of action.
 It is a continuous process.
 It is an all pervasive function.
 It is a deliberate function.
 It is the responsibility of all managers

Features of coordination:
a. Coordination Integrates Group Effort: It is an orderly arrangement of group effort to
ensure that performance is at par with the plans and schedules.
b. II. Coordination Ensures unity of action: It is a binding force between various
departments and ensures that all efforts are focused towards achieving the
organizational goal. III.
c. Coordination is a Continuous Process: It is a never-ending process as its needs are felt
at all levels and in all activities in the organisations. It begins at the planning stage
and continues until controlling.
d. IV. Coordination is the responsibility of all managers: coordination is equally
important at all levels of management. It is the responsibility of all the individuals in
an organisation to carry out their work in a responsible manner and coordinate with
each other to achieve organizational goals.
e. V. Coordination is a deliberate function: A manager has to coordinate the efforts of
different people in a conscious and deliberate manner. In other words, coordination is
never established by itself rather it is a conscious effort on the part of every manager.
f. VI. Coordination is all pervasive function: It is needed in all departments and at all
levels. Lack of coordination can lead to overlapping of activities.

Importance of Coordination:
The reasons that bring out the importance or the necessity for coordination are
a. Growth in the Size: An organisations growth results in the increase in the number of
people employed with varied individual aspirations and culture. So it is important to
harmonize individual goal with the organizational goals through coordination.
b. Functional Differentiation: All the departments and divisions may have their own,
objective, policies and their own style of working. However all departments and
individuals are interdependent and cannot work in isolation. Thus, coordination is
necessary for linking the activities of various departments.
c. Specialization: Mostly specialists have a feeling of superiority and prioritize their
zone of activities. Coordination seeks to sequence and integrate all the specialists’
activities into a wholesome effort.