LESSON PLAN 2

Business Studies
XII: G

Topic – Nature & Significance of Management

Sub Topic- Nature of Management, levels of management, Functions of Management.

 The term ‘management’ today has several different connotations that highlight the different
aspects of its nature.
 The study of management has evolved over a period of time based both on
 the experience and practice of managers and
 a set of theoretical relationships.
 Is management a Science or an Art?


 Definition: Art is the skillful and personal application of existing knowledge to achieve desired
results

 Features of ART  Applicability in Management

 Existence of theoretical knowledge:  There is a lot of literature available in various areas

Art presupposes the existence of certain of management like marketing, finance and human
theoretical knowledge. resources which the manager has to specialise in. There is
existence of theoretical knowledge.

 Personalised application: The use of  A manager applies this acquired knowledge in a

this basic knowledge varies from individual personalised and skillful manner in the light of the realities
to individual. Hence a personalised concept of a given situation.

 Based on practice and creativity:  A manager applies scientific methods and body of
Art is practical & involves the creative knowledge to a given situation, an issue or a problem, in
practice of existing theoretical knowledge . his own unique manner. A good manager works through a
combination of practice, creativity, imagination, initiative
and innovation. A manager achieves perfection after long
practice

 Conclusion: Management can be said to be an art since it satisfies all the criteria mentioned for
Art. All management practices are based on the same set of principles; what distinguishes a successful
manager from a less successful one is the ability to put these principles into practice.
  Definition: Science is a systematised body of knowledge that explains certain general truths or the
operation of general laws.

Features of ART Applicability in Management

 Systematised body of knowledge: It is a  Management has a systematised body of

systematic body of knowledge. Its knowledge. It has its own theory and
principles are based on a cause and effect principles that have developed over a period
relationship. of time, but it also draws on other disciplines
such as Economics, Sociology, Psychology and
Mathematics.

 Principles based on experimentation:  The principles of management have evolved

Scientific principles are first developed over a period of time based on repeated
through observation and then tested experimentation and observation in different
through repeated experimentation under types of organisations. since management
controlled conditions deals with human beings and human
behaviour, the outcomes of these
experiments are not capable of being
accurately predicted or replicated.

 Universal validity: Scientific principles  Since the principles of management are not
have universal validity and application. as exact as the principles of science, their
application and use is not universal. They
have to be modified according to a given
situation.

 Conclusion: Based on the above features, we can say that management has some characteristics
of science.
 Overall conclusion: Practice of management is an art. However, managers can work better if their
practice is based on the principles of management. These principles constitute the science of
management. Management as an art and a science are therefore not mutually exclusive, but
complement each other.

 Management is called an inexact science because management deals with human beings
and human behaviour, the outcomes of these experiments are not capable of being
accurately predicted or replicated. Therefore, management can be called an inexact science.

 Definition:

 Features of PROFESSION  Applicability in Management

 Well-defined body of knowledge: All  Management is based on a systematic body of

professions are based on a well-defined body of knowledge comprising well defined principles based on
knowledge that can be acquired through a variety of business situations. This knowledge can be
instruction. acquired.

 Restricted entry: The entry to a  There is no restriction on anyone being

profession is restricted through an examination designated or appointed as manager in any business
or through acquiring an educational degree enterprise.

 Professional association: All professions  There are many professional associations

are affiliated to a professional association which however, there isn’t any compulsion for managers to
regulates entry, grants certificate of practice and be members of such an association nor does it have
formulates and enforces a code of conduct any statutory backing.

 Ethical code of conduct: All professions  AIMA has laid down a code of conduct to
are bound by a code of conduct which guides the regulate the activities of their members.
behaviour of its members

 Service motive: The basic motive of a  If an organisation has a good management

profession is to serve their client’s interests by team that is efficient and effective it automatically
rendering dedicated and committed service serves society by providing good quality products at
reasonable prices.

 Conclusion: Management does not meet the exact criteria of a profession. However, it does have
some of the features of a profession:
 All forms of organised activity need to be managed and organisations look for individuals with
specific qualifications and experience to manage them. There has been an increase in the corporate form of
business on the one hand and increasing emphasis on managed business concerns. Thus management is
fast moving towards being a profession.

LEVELS OF MANAGEMENT

 Management is a universal term used for certain functions performed by individuals in an

enterprise who are bound together in a hierarchy of relationships.
 Every individual in the hierarchy is responsible for successful completion of a particular task.
 TOP

MANA
GEME
NT
MIDDLE LEVEL
MANAGEMENT

LOWER LEVEL/OPERATIONAL/SUPERVISORY
MANAGEMENT

LEVEL TOP MANAGEMENT MIDDLE LEVEL MANAGEMENT OPERATIONAL

MANAGEMENT

COMPRISE They consist of the senior- link between top and lower level comprise the lower level
most executives of the managers in the hierarchy of the
organisation organisation

REFERRED AS chairman, the chief They are usually known as division Foremen, supervisors,
executive officer, Chief heads, production manager, Superintendent, Section
finance officer, chief marketing manager, operating officer
operating officer, General manager, Regional manager,
manager,president and Purchase manager, Sales
vice-president manager, Plant supervisor

FUNCTIONS/ROLE  integrate diverse  implementing and  directly oversee

elements controlling plans and the efforts of the
 coordinate the strategies developed by workforce.
activities of top management.  Their authority
different (i) interpret the and
departments policies framed by responsibility is
 Responsible for the top management. limited according
welfare and (ii) ensure that their to the plans
survival of the department has drawn by the top
organisation. the necessary management.
 formulate overall personnel  Through their
organisational goals (iii) assign necessary efforts quality of
and strategies for duties and output is
their achievement. responsibilities to maintained,
 responsible for all them. wastage of
the activities of the (iv) motivate them to materials is
business and for its achieve desired minimised and
impact on society objectives. safety standards
(v) cooperate with
 other are maintained.
departments for  play a very
smooth important role in
functioning of the the organisation
organisation since they
 responsible for all the interact with the
activities of first line actual work force
managers. and pass on
instructions of
the middle
management to
the workers.

Functions of Management
C
R
T
N
OA
P
IL
DG
E
F
S

Assignment:
1. Survival, Profit and growth are the essential targets of any business. Which objective of
management is being referred to?
2. When an organisation is concerned about personal growth and development of employees,
which management objective is highlighted?
3. Asian paints funded a large scale community development project to enable the farmers to
use local resources effectively. Identify the objective of the organisation.
4. Rishitosh Mukerjee has recently joined AMV Ltd., a company manufacturing refrigerators.
He found that his department was under-staffed and other departments were not
 cooperating with his department for the smooth functioning of the organisation. Therefore,
he ensured that his department has the required number of employees and its cooperation
with other departments is improved.
(a) Identify the level at which Rishitosh Mukerjee was working.
(b) Also, state three more functions required to be performed by Rishitosh Mukerjee at this
level.
5. Real Alliance Ltd. is a well-known company in India. It is able to earn adequate revenues to
cover costs. Its capital base, number of employees and production turnover have increased
manifold over the years. The rate of the profitability of the business is also creditable. The
employees of the company are happy and satisfied with their remuneration, working
conditions, promotion policy, etc. As a part of its moral obligation, the company has taken
many initiatives for providing employment to specially persons and promoting literacy in the
villages adopted by it.
Identify and explain the various types of objectives of management being fulfilled by Real
Alliance by quoting lines from the paragraph.
6. Complete the crossword
https://crosswordlabs.com/view/nature-significance-of-management