Plus Two Business Studies Notes Chapter 1 Nature and Significance of Management

Chapter 1 – Important Topics:
  • Concept of Management – Definitions and Meaning
  • Effectiveness vs Efficiency
  • Characteristics of Management
  • Objectives of Management (Organisational, Social, Personal)
  • Importance of Management
  • Nature of Management – Art, Science, Profession
  • Levels of Management
  • Difference between Administration and Management
  • Functions of Management – Planning, Organising, Staffing, Directing, Controlling
  • Co-ordination – Characteristics and Importance

Introduction – Management at Work

Management is essential for all organisations – big or small, profit or non‑profit, services or manufacturing. It is the process of getting things done with the aim of achieving goals effectively and efficiently.

Management: The process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. (Koontz & Weihrich)
Management: The process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in the changing environment. (Kreitner)
Simple Explanation: Management means making sure work gets done by organising people and resources. A manager does not do all the work himself; he gets it done by his team, using resources wisely and achieving goals.

Effectiveness versus Efficiency

  • Effectiveness – doing the right task, completing activities, achieving goals (end result).
  • Efficiency – doing the task correctly, with minimum cost, best use of resources (input-output ratio).

Both are important. Being effective but not efficient (completing work at high cost) or efficient but not effective (saving cost but failing to meet targets) are both undesirable. Good management balances both.

Live Example: Smita Rai of Namchi Designer Candles plans a special Diwali collection (effectiveness) and ensures production at low cost by using local women workers (efficiency).
💭 Think: If a manager achieves the target but spends twice the budget, is he a good manager?
Simple Hints: He is effective but not efficient. Good management needs both.

Characteristics of Management

  1. Goal‑oriented process: Management always aims at achieving organisational goals.
  2. All pervasive: It is needed in all types of organisations and at all levels.
  3. Multidimensional: It has three dimensions – management of work, people, and operations.
  4. Continuous process: A series of ongoing functions, not a one‑time activity.
  5. Group activity: It involves a group of people working together towards a common goal.
  6. Dynamic function: It adapts to changes in the environment.
  7. Intangible force: Its presence is felt through results like order, coordination, and satisfaction.
Simple Explanation: Management has clear goals, is needed everywhere, involves many dimensions (work, people, operations), never stops, is done by teams, changes with the environment, and you can't see it but you feel its effects.
Live Example – Multidimensional: At Tata Steel, management of work (steel production), people (workers’ welfare), and operations (technology, finance) all go hand in hand.
💭 Think: Why is management called an intangible force?
Simple Hints: You cannot see it, but you can see its results – well‑coordinated work, motivated employees, achieved targets.
Exam Practice (4 marks): Explain any four characteristics of management. (2023 Say – 4 marks)

Objectives of Management

Management has three categories of objectives:

  1. Organisational objectives: Survival, profit, and growth.
    • Survival: Earn enough revenue to cover costs.
    • Profit: Essential for covering risks and growth.
    • Growth: Expansion in sales, employees, products, etc.
  2. Social objectives: Creating benefit for society – quality goods, employment, environment protection, community services (e.g., ITC’s E‑Choupal).
  3. Personal objectives: Satisfying diverse needs of employees – financial, social, and self‑actualisation.
Simple Explanation: Management has to balance goals: for the organisation (survive, profit, grow), for society (good products, jobs), and for employees (fair wages, satisfaction).
Live Example – Social: LULU Group donated ₹5 crore to Kerala flood relief – fulfilling social objective. (2019 Say Q5)
💭 Think: Why should management care about social objectives?
Simple Hints: Business is part of society. If society suffers, the business will eventually suffer (bad image, boycotts, regulations).
Exam Practice (3 marks): Which among the following is not an organisational objective of management? (2019 Mar – 1 mark) / Profit is one organisational objective. Write the other two. (2022 Mar – 2 marks)

Importance of Management

  1. Optimum utilisation of scarce resources: Resources (men, material, money) are limited; management uses them wisely to maximise profit.
  2. Accomplishment of group goals: Aligns individual efforts towards organisational objectives.
  3. Minimisation of cost: Reduces costs through better planning, efficiency, and waste reduction.
  4. Helps in development of society: Provides good quality products, employment, and fair prices.
  5. Brings stability in business: Helps adapt to changes (government policies, consumer tastes, competition) and ensures survival.
Simple Explanation: Management is important because it makes the best use of limited resources, unites people, cuts costs, benefits society, and keeps the business stable amidst change.
Live Example – Cost minimisation: Toyota’s lean manufacturing reduces waste – result of excellent management.
Exam Practice (5 marks): “Management is the process of dealing with things or people.” Validate by highlighting its importance. (2021 Mar – 4 marks)

Nature of Management

Management as an Art

  • Involves skillful and personal application of knowledge.
  • Requires practice and creativity.
  • Managers use theoretical knowledge in their own unique way.

Management as a Science

  • Systematised body of knowledge based on cause‑effect relationships.
  • Principles developed through observation and experimentation.
  • But it is an inexact science because it deals with human behaviour.

Management as a Profession

  • Well‑defined body of knowledge (management education).
  • No compulsory licensing, but professional associations (AIMA) exist.
  • Increasingly professional in character, but not a full‑fledged profession.
Simple Explanation: Management is an art because it requires skill and creativity. It is a science because it has a body of knowledge, though not as exact as physics. It is becoming a profession, but not fully yet (no compulsory license).
Live Example – Art: Two managers handling the same situation may use different styles – both successful – that’s art.
Live Example – Science: Fayol’s principles of management are universally taught – that’s science.
💭 Think: Can management be called a full profession like medicine or law?
Simple Hints: No, because there is no compulsory licensing, no uniform code of conduct, and managers work for a salary.
Exam Practice (4 marks): “Management is an inexact science.” Give reasons. (2020 Say – 4 marks) / List out any two features of management as an art. (2022 Say – 2 marks)

Levels of Management

  • Top level: Board of Directors, CEO, MD – formulate policies, set goals, plan strategies.
  • Middle level: Department heads, division managers – implement policies, coordinate activities, link top and lower levels.
  • Lower level: Supervisors, foremen – oversee workers, ensure day‑to‑day operations.
Simple Explanation: Top management decides what to do, middle management decides how to do it, lower management actually gets it done with workers.
Live Example – Top level: The CEO of Tata Steel decides company strategy.
Live Example – Middle level: Production manager ensures plans are executed.
Live Example – Lower level: Supervisor guides workers on the shop floor.
💭 Think: What happens if the middle level does not communicate well with the lower level?
Simple Hints: Plans may not be executed properly; workers may be confused.
Exam Practice (3 marks): Policy formulation is the function of which level? (2021 Say – 1 mark) / Chairman belongs to which level? (2023 Say – 1 mark)

Differences Between Administration and Management

AdministrationManagement
Formulation of plans and policiesGetting things done through others
Thinking functionDoing function
Denotes higher level of managementIs emphatic at lower levels
Determinative functionExecutory function
Related with government offices and non‑business organisationsWidely used in business organisations in private sector
Simple Explanation: Administration is about deciding what should be done (policy‑making). Management is about actually doing it (execution). Administration is mostly at top levels; management at middle and lower levels.
💭 Think: In a business, who does administration and who does management?
Simple Hints: Board of Directors (administration), managers (management).

Functions of Management

  1. Planning: Deciding in advance what to do, how to do it, when, and who will do it.
  2. Organising: Identifying and grouping activities, assigning them to departments and people.
  3. Staffing: Recruiting, training, and placing the right people in the right jobs.
  4. Directing: Leading, motivating, and supervising employees to achieve goals.
  5. Controlling: Monitoring performance and taking corrective action to ensure plans are followed.
Simple Explanation: Managers do five main things: plan (set goals), organise (arrange resources), staff (hire people), direct (lead them), and control (check if goals are met).
Live Example – Planning: A restaurant manager decides the menu for the week and orders ingredients.
Live Example – Organising: He divides tasks among chefs, waiters, and cleaners.
Live Example – Staffing: He hires a new chef.
Live Example – Directing: He trains the new chef and motivates the team.
Live Example – Controlling: He checks customer feedback and food quality daily.
💭 Think: Which function comes first?
Simple Hints: Planning comes first because you need to know what to do before you can organise, staff, direct, or control.
Exam Practice (5 marks): Explain the functions of management. (2021 Say – 5 marks) / Discuss the five major functions of management. (2024 Mar – 5 marks)

Co‑ordination – The Essence of Management

Co‑ordination is the process of integrating the activities of different units of an organisation to achieve the organisational goals. It is not a separate function but the essence of management, binding all other functions.

Characteristics of Co‑ordination:

  1. Integrates group efforts.
  2. Ensures unity of action.
  3. Continuous process.
  4. All pervasive function.
  5. Responsibility of all managers.
  6. Deliberate function.

Importance of Co‑ordination:

  1. Growth in size: As organisations grow, co‑ordination harmonises individual and departmental goals.
  2. Functional differentiation: Different departments need to work together; co‑ordination links them.
  3. Specialisation: Specialists’ efforts need to be co‑ordinated for common goals.
Co‑ordination: The essence of management – integrating activities to achieve organisational goals.
Simple Explanation: Co‑ordination means making sure all parts of an organisation work together smoothly. It's like an orchestra conductor ensuring all musicians play in harmony.
Live Example – Dabbawallas of Mumbai: Thousands of dabbawallas co‑ordinate their work using cycles, trains, and a simple coding system to deliver lunch boxes accurately every day.
💭 Think: Is co‑ordination a separate function of management?
Simple Hints: No, it is the essence – it runs through all functions (planning, organising, etc.).
Exam Practice (3 marks): The process by which a manager synchronises the activities of different departments is known as? (2019 Say – 1 mark) / “Co‑ordination is the essence of management.” Do you agree? Give reasons. (2021 Mar – 3 marks)

മലയാളം വിഭാഗം

പ്രധാന പാഠഭാഗങ്ങൾ:
  • മാനേജ്മെന്റിന്റെ നിർവചനവും അർത്ഥവും
  • ഫലപ്രാപ്തി (effectiveness) vs കാര്യക്ഷമത (efficiency)
  • മാനേജ്മെന്റിന്റെ സവിശേഷതകൾ
  • മാനേജ്മെന്റിന്റെ ലക്ഷ്യങ്ങൾ (സംഘടനാ, സാമൂഹ്യ, വ്യക്തിഗത)
  • മാനേജ്മെന്റിന്റെ പ്രാധാന്യം
  • മാനേജ്മെന്റിന്റെ സ്വഭാവം – കല, ശാസ്ത്രം, പ്രൊഫഷൻ
  • മാനേജ്മെന്റ് തലങ്ങൾ
  • അഡ്മിനിസ്ട്രേഷനും മാനേജ്മെന്റും തമ്മിലുള്ള വ്യത്യാസം
  • മാനേജ്മെന്റിന്റെ ധർമ്മങ്ങൾ – ആസൂത്രണം, സംഘാടനം, ഉദ്യോഗവൽക്കരണം, കാര്യനിർവ്വഹണം, നിയന്ത്രണം
  • ഏകോപനം – സവിശേഷതകളും പ്രാധാന്യവും

ആമുഖം

എല്ലാത്തരം സ്ഥാപനങ്ങൾക്കും – ചെറുതോ വലുതോ, ലാഭേച്ഛയുള്ളതോ അല്ലാത്തതോ, സേവനമോ ഉൽപ്പാദനമോ – മാനേജ്മെന്റ് അനിവാര്യമാണ്. മറ്റുള്ളവരിലൂടെ കാര്യങ്ങൾ ചെയ്യിക്കുകയും ലക്ഷ്യങ്ങൾ ഫലപ്രദമായും കാര്യക്ഷമമായും കൈവരിക്കുകയുമാണ് മാനേജ്മെന്റ്.

നിർവചനങ്ങൾ: മേരി പാർക്കർ ഫൊള്ളറ്റ്: “മറ്റുള്ളവരിലൂടെ കാര്യം നടത്തിക്കുന്ന കലയാണ് മാനേജ്മെന്റ്.” പീറ്റർ ഡ്രക്കർ: “ഒരു മാനേജർ ചെയ്യുന്നത് എന്തെല്ലാമാണോ അതെല്ലാം തീരുമാനങ്ങളെടുക്കുന്നതിലൂടെയാണ്.”

ഫലപ്രാപ്തി vs കാര്യക്ഷമത

  • ഫലപ്രാപ്തി (effectiveness): ശരിയായ ജോലി ചെയ്യുക, ലക്ഷ്യം കൈവരിക്കുക.
  • കാര്യക്ഷമത (efficiency): ജോലി കുറഞ്ഞ ചെലവിൽ, മിതമായി ചെയ്യുക.

രണ്ടും സന്തുലിതമായിരിക്കണം.

മാനേജ്മെന്റിന്റെ സവിശേഷതകൾ

  1. ലക്ഷ്യത്തെ കേന്ദ്രീകരിച്ചുള്ള പ്രക്രിയ.
  2. സർവവ്യാപി (എല്ലായിടത്തും ആവശ്യം).
  3. ബഹുമുഖം – ജോലി, ആളുകൾ, പ്രവർത്തനങ്ങൾ.
  4. തുടർച്ചയായ പ്രക്രിയ.
  5. കൂട്ടായ പ്രവർത്തനം.
  6. ചലനാത്മകം (മാറ്റങ്ങളുമായി പൊരുത്തപ്പെടൽ).
  7. അദൃശ്യ ശക്തി.

മാനേജ്മെന്റിന്റെ ലക്ഷ്യങ്ങൾ

  1. സംഘടനാ ലക്ഷ്യങ്ങൾ: നിലനിൽപ്പ്, ലാഭം, വളർച്ച.
  2. സാമൂഹ്യ ലക്ഷ്യങ്ങൾ: സമൂഹത്തിന് പ്രയോജനം – ഗുണമേന്മയുള്ള ഉൽപ്പന്നങ്ങൾ, തൊഴിൽ, പരിസ്ഥിതി സംരക്ഷണം.
  3. വ്യക്തിഗത ലക്ഷ്യങ്ങൾ: ജീവനക്കാരുടെ ആവശ്യങ്ങൾ നിറവേറ്റൽ.

മാനേജ്മെന്റിന്റെ പ്രാധാന്യം

  1. ദുർലഭ വിഭവങ്ങളുടെ ഒപ്റ്റിമം ഉപയോഗം.
  2. സംഘടനാ ലക്ഷ്യങ്ങൾ കൈവരിക്കൽ.
  3. ചെലവ് കുറയ്ക്കൽ.
  4. സമൂഹവികസനത്തിന് സഹായം.
  5. ബിസിനസ്സിൽ സ്ഥിരത കൈവരുത്തൽ.

മാനേജ്മെന്റിന്റെ സ്വഭാവം

കല: അറിവിന്റെ വിദഗ്ധവും വ്യക്തിപരവുമായ പ്രയോഗം.

ശാസ്ത്രം: ചിട്ടപ്പെടുത്തിയ അറിവിന്റെ ശേഖരം, എന്നാൽ കൃത്യതയില്ലാത്ത ശാസ്ത്രം.

പ്രൊഫഷൻ: പ്രത്യേക പരിജ്ഞാനം ആവശ്യമുള്ള തൊഴിൽ, എന്നാൽ പൂർണ്ണ പ്രൊഫഷനല്ല.

മാനേജ്മെന്റ് തലങ്ങൾ

  • ഉന്നത തലം: നയരൂപീകരണം, ലക്ഷ്യനിർണ്ണയം.
  • മധ്യ തലം: നയങ്ങൾ നടപ്പിലാക്കൽ, ഏകോപനം.
  • കീഴ് തലം: തൊഴിലാളികളുടെ മേൽനോട്ടം.

അഡ്മിനിസ്ട്രേഷനും മാനേജ്മെന്റും തമ്മിലുള്ള വ്യത്യാസങ്ങൾ

അഡ്മിനിസ്ട്രേഷൻമാനേജ്മെന്റ്
പദ്ധതികളും നയങ്ങളും രൂപീകരിക്കുകമറ്റുള്ളവരിലൂടെ കാര്യങ്ങൾ ചെയ്യിക്കുക
ചിന്തയുടെ പ്രവർത്തനംചെയ്യലിന്റെ പ്രവർത്തനം
ഉന്നത മാനേജ്മെന്റ് തലംതാഴ്ന്ന തലങ്ങളിൽ കാണപ്പെടുന്നു
നിർണ്ണായക പ്രവർത്തനംനിർവ്വഹണ പ്രവർത്തനം
സർക്കാർ ഓഫീസുകളിലും ലാഭേച്ഛയില്ലാത്ത സ്ഥാപനങ്ങളിലുംസ്വകാര്യമേഖലാ ബിസിനസുകളിൽ വ്യാപകം

മാനേജ്മെന്റിന്റെ ധർമ്മങ്ങൾ

  1. ആസൂത്രണം (planning): എന്ത്, എങ്ങനെ, എപ്പോൾ, ആര് ചെയ്യണമെന്ന് മുൻകൂട്ടി തീരുമാനിക്കുക.
  2. സംഘാടനം (organising): പ്രവർത്തനങ്ങൾ തിരിച്ചറിഞ്ഞ് ഗ്രൂപ്പുകളാക്കി വകുപ്പുകൾക്ക് ചുമതല നൽകുക.
  3. ഉദ്യോഗവൽക്കരണം (staffing): അനുയോജ്യരായ ആളുകളെ നിയമിക്കുക, പരിശീലിപ്പിക്കുക.
  4. കാര്യനിർവ്വഹണം (directing): ജീവനക്കാരെ നയിക്കുക, പ്രചോദിപ്പിക്കുക, മേൽനോട്ടം വഹിക്കുക.
  5. നിയന്ത്രണം (controlling): പ്രവർത്തനങ്ങൾ പദ്ധതിക്കനുസരിച്ചാണോയെന്ന് പരിശോധിച്ച് തിരുത്തുക.

ഏകോപനം – മാനേജ്മെന്റിന്റെ സത്ത

സംഘടനയുടെ വിവിധ യൂണിറ്റുകളുടെ പ്രവർത്തനങ്ങളെ സംയോജിപ്പിച്ച് ലക്ഷ്യങ്ങൾ കൈവരിക്കുന്ന പ്രക്രിയയാണ് ഏകോപനം. ഇത് മറ്റെല്ലാ ധർമ്മങ്ങളെയും ബന്ധിപ്പിക്കുന്നു.

സവിശേഷതകൾ:

  1. ഗ്രൂപ്പ് പ്രവർത്തനങ്ങളെ ഏകീകരിക്കുന്നു.
  2. പ്രവർത്തനങ്ങളിൽ ഏകത ഉറപ്പാക്കുന്നു.
  3. തുടർച്ചയായ പ്രക്രിയ.
  4. സാർവത്രികം (എല്ലാ തലങ്ങളിലും ആവശ്യം).
  5. എല്ലാ മാനേജർമാരുടെയും ഉത്തരവാദിത്തം.
  6. ബോധപൂർവ്വം നടത്തുന്ന പ്രക്രിയ.

പ്രാധാന്യം:

  1. സ്ഥാപനത്തിന്റെ വലിപ്പം കൂടുമ്പോൾ വ്യക്തികളുടെയും വകുപ്പുകളുടെയും പ്രവർത്തനങ്ങൾ ഏകോപിപ്പിക്കേണ്ടത് അനിവാര്യം.
  2. വകുപ്പുകൾ തമ്മിലുള്ള ആശ്രിതത്വം കാരണം ഏകോപനം ആവശ്യമാണ്.
  3. സ്പെഷ്യലിസ്റ്റുകളുടെ പ്രവർത്തനങ്ങൾ ഏകോപിപ്പിക്കണം.

Important Exam Questions

  • Policy formulation is the function of which level of management? (2021 Say - 1 Mark)
  • Which among the following is not an organizational objective of management? (2019 Mar - 1 Mark)
  • The process by which a manager synchronizes the activities of different departments is known as? (2019 Say - 1 Mark)
  • Select the correct pair from the following. (2019 Say - 1 Mark)
  • LULU Group offered Rs. 5 Crores to the Chief Minister's Drought Relief Fund. Which objective of management is achieved? (2019 Say - 1 Mark)
  • Management is: (a) Goal-oriented (b) Pervasive (c) Multi-dimensional (d) All of these (2021 Mar - 1 Mark)
  • Find the odd one: Marketing Manager, Managing Director, Production Manager, Purchase Manager. (2022 Mar - 1 Mark)
  • Supervisor belongs to which level of management? (2022 Say - 1 Mark)
  • Achievement of goals with minimum resources is called: (2023 Mar - 1 Mark)
  • Chairman belongs to which level of Management? (2023 Say - 1 Mark)
  • Which of the following best describes the nature of management as an art? (2024 Mar - 1 Mark)
  • Complete the series: (a) Top level Management – Managing Director (b) Middle level Management – ? (c) Lower level Management – ? (2025 Mar - 1 Mark)
  • Management has three dimensions such as management of work, management of operations and management of ______. (2025 Say - 1 Mark)
  • From the following which is not a relevant feature of management as science? (2024 Say - 1 Mark)
  • Management is multi‑dimensional. Give any two dimensions. (2019 Say - 2 Marks)
  • Manoj is working as the Managing Director of Metro Ltd. Name the level and write any one function. (2020 Say - 2 Marks)
  • Profit is one of the organizational objectives. Write the other two. (2022 Mar - 2 Marks)
  • List out any Two features of management as an art. (2022 Say - 2 Marks)
  • Briefly explain the concept of management. (2023 Mar - 2 Marks)
  • Briefly explain the term Co‑ordination. (2023 Say - 2 Marks)
  • A visiting card with imaginary details is given. Identify the level of management and mention any one function. (2024 Mar - 2 Marks)
  • "Management is a continuous process." Explain. (2024 Say - 2 Marks)
  • Identify and state the force that binds all the other functions of management. (2025 Mar - 2 Marks)
  • 'Management has some features of science.' Briefly explain any two. (2025 Say - 2 Marks)
  • "Co‑ordination is the essence of management." Do you agree? Write two features. (2021 Mar - 3 Marks)
  • Match the following: Top Level Management, Middle Level Management, Lower Level Management with their responsibilities. (2021 Mar - 3 Marks)
  • Briefly explain objectives of management. (2021 Say - 3 Marks)
  • State the importance of co‑ordination. (2021 Say - 3 Marks)
  • What do you mean by co‑ordination? Explain its importance. (2022 Mar - 3 Marks)
  • In a debate, Neetu argued Management is a profession, but Nandan argued it is not a full‑fledged profession. Give two points each. (2019 Say - 4 Marks)
  • Identify the process by which a manager synchronizes the activities of different departments. Write any three features. (2020 Mar - 4 Marks)
  • "Management is an inexact science." Give reasons. (2020 Say - 4 Marks)
  • "Management is the process of dealing with things or people." Validate by highlighting its importance. (2021 Mar - 4 Marks)
  • Classify the following personnel under suitable levels: Production Manager, Managing Director, Marketing Manager, Supervisor, CEO, Finance Manager, Foreman, Sales Manager. (2021 Say - 4 Marks)
  • Explain any Four features of co‑ordination. (2022 Say - 4 Marks)
  • Write any four functions of middle level management. (2023 Mar - 4 Marks)
  • What do you mean by Management? List out any three features. (2023 Say - 4 Marks)
  • Mr. Jojo is working as Production Manager. Identify his level and state any four functions. (2019 Mar - 5 Marks)
  • Briefly explain the various levels of management. (2021 Mar - 5 Marks)
  • Briefly explain the functions of management. (2021 Say - 5 Marks)
  • Discuss the five major functions of Management. (2024 Mar - 5 Marks)
  • What is coordination? Explain its any three features. (2024 Say - 5 Marks)
  • "Management is a series of continuous interrelated functions." Comment. (2025 Mar - 5 Marks)
  • a) 'Co‑ordination is called as the essence of management.' Comment. b) List any two points of importance. (2025 Say - 5 Marks)
  • What do you mean by management? List out any four features. (2022 Say - 6 Marks)

About the author

SIMON PAVARATTY
PSMVHSS Kattoor, Thrissur

تعليق واحد

  1. prince j antony
    prince j antony
    Our students need malayalam as 60-70% students write Business studies Exam in malayalam.