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CBSE Class 12 Commerce Business Studies Nature And Significance Of Management Complete Notes

CBSE Class 12 Commerce Business Studies Nature And Significance Of Management Complete Notes

CBSE Class 12 Commerce Business Studies Nature And Significance Of Management : The CBSE envisions a robust, vibrant and holistic school education that will engender excellence in every sphere of human endeavour. The Board is committed to provide quality education to promote intellectual, social and cultural vivacity among its learners. It works towards evolving a learning process and environment, which empowers the future citizens to become global leaders in the emerging knowledge society. The Board advocates Continuous and Comprehensive Evaluation with an emphasis on holistic development of learners. The Board commits itself to providing a stress-free learning environment that will develop competent, confident and enterprising citizens who will promote harmony and peace.

CBSE Class 12 Commerce Business Studies Nature And Significance Of Management Complete Notes

CBSE Class 12 Commerce Business Studies Nature And Significance Of Management : Business is a dynamic process that brings together technology, human ability and natural resources in a regularly evolving business environment. To understand the framework in which a business operates, you need to know about the organisation and management of business processes and its interaction with the environment is required. Business studies, as a subject, provides a way of looking at and interacting with the business environment. It recognizes the fact that business influences and is influenced by social, political, legal and economic forces.

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CBSE Class 12 Commerce Business Studies Nature And Significance Of Management Complete Notes

CBSE Class 12 Commerce Business Studies Nature And Significance Of Management : Business Studies can be taken as an elective subject from a student’s Grade 10 year through to their Grade 12 year. South Africa has many different standards of Education. Some schools vary in the Exam Board, chosen, to educate their students under. The Governmental Department of Education allow for children to write NSC Examinations; this Board is the most widely used in South Africa. Students from private schools write IEB Exams and are taught under IEB-Standards. Lastly, Business Studies can be taken as part of the GCSE, or can be taken as part of a GCE Advanced Level (A-level) course in Schools run under the Cambridge International Examinations Board, providing a British education in South Africa. Cambridge Schools are of the fewest in South Africa. Business Studies includes a range of subjects, which give the student general understanding of the various elements of running a business

CBSE Class 12 Commerce Business Studies Nature And Significance Of Management Complete Notes

CBSE Class 12 Commerce Business Studies Nature And Significance Of Management : Management is an art of getting things done with and through others. Management can be defined as, the process of getting things done with the aim of achieving organizational goals effectively and efficiently.

Efficiency and effectiveness

Efficiency means doing the task correctly at minimum cost through optimum utilization of resources while effectiveness is concerned with end result means completing the task correctly within stipulated time. Although efficiency and effectiveness are different yet they are inter related. It is important for management to maintain a balance between the two.

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 targeted 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 by proper utilization of available resources.

2. Pervasive : Management is universal in nature. It is used in all types of organisations whether economic, social or political irrespective of its size, nature and location and at every level.

3. Multidimensional : It is multidimensional as it involves management of work, people and operations.

4. Continuous : It consists of a series of function and its functions are being performed by all managers simultaneously. The process of management continues till an organization exists 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 according to need, time and situation of the changing environment. For example, Mc Donalds made major changes in its ‘Menu’ to survive in the Indian market.

7. Intangible Force : It is intangible force as it can’t be seen but its effects can be felt in the form of results like whether the objectives are met and whether people are motivated or not and there is orderliness and coordination in the work environment.

Objectives of management

(A) Organizational objectives of Survival (Earning enough revenues to cover cost); profit (To cover cost and risk); & Growth (To improve its future prospects).

(B) Social objectives of giving benefits to society like using environmental friendly practices and giving employment to disadvantaged sections of society etc. Example :- TISCO, ITC, and Asian Paints.

(C) Personal Objectives because diverse personal objectives of people working in the organization have to be reconciled with organizational objectives.

Importance of Management

(1) Achieving Group Goals : Management creates team work and coordination in the group. Managers give common direction to the individual efforts in achieving the overall goals of the organization.

(2) Increases Efficiency : Management increases efficiency by using resources in the best possible manner to reduce cost and increase productivity.

(3) Creates Dynamic organization : Management helps the employees to overcome their resistance to change and adapt as per changing situation to ensure its survival and growth.

(4) Achieving personal objectives : Management helps the individuals to achieve their personal goals while working towards organizational objectives.

(5) Development of Society : Management helps in the development of society by producing good quality products, creating employment opportunities and adopting new technology.

CBSE Class 12 Commerce Business Studies Nature And Significance Of Management Complete Notes

CBSE Class 12 Commerce Business Studies Nature And Significance Of Management :

7 Important Natures of Principles of Management

The following points bring out the nature of principles of management:

(1) Universal Applicability:

Universality refers to that truth which is equally applicable in all spheres (both business and non-business). The principles of management are also universal in nature. All business (industrial units, etc.) and non-business organisations (educational institutions, government offices, playgrounds, agricultural farms, army, clubs and other social organisations), in order to achieve their objectives have to apply more or less the same principles.

(2) General Guidelines:

The principles of management are not definite like the principles of physics and chemistry. The principles of physics and chemistry are very clear and definite, and their outcomes can be predicted. The principles of management, on the other hand, are of the nature of general guidelines, and they cannot be applied strictly.

(3) Formed by Practice and Experimentation:

Principles of management are the results of various problems faced by the professional people. First of all problems appeared and then through careful research work solutions were found. Thus, we recognise the solutions, found with the help of practice and experience, as principles of management.

Similarly, researchers undertake experimental study to find out the principles of management.

For example, the principle of ‘Unity of Command’ must have emerged when two groups of people must have been compared wherein the first group of people had one boss while the second group of people had two bosses. Undoubtedly, the first group of people must have performed better.

(4) Flexibility:

The principles of management as they exist today are not in the form of final truths. As and when political, economic and social changes take place, new kinds of problems arise. Old principles are altered and new principles are propounded. Therefore, the principles of management are dynamic in nature and cannot be called stagnant or fixed.

(5) Mainly Behavioural:

The principles of management are directly concerned with human behaviour. The management activity is mainly concerned with management of man, who is a social animal having his own nature, desires and expectations which cannot be repressed or eliminated.

This is the main reason why the principles of management are affected by human behaviour, and often human behaviour is the main hindrance in the successful application of principles of management.

For example, the principle of division of work is usually adopted for increasing efficiency, but after doing the same work repeatedly a person gets bored (this is human behaviour), thereby resulting in a decrease in efficiency.

(6) Relationship between Cause and Effect:

The principles of management establish a relationship between cause and effect. They specify what the ultimate outcome will be if in a particular situation, work is done in a particular manner.

For example, if according to the principle of division of work, the work is divided into different parts, each part being assigned to a particular person according to his interests and capability, then it will result in an increase in overall efficiency.

In this case, the division of work is the cause and the increase in efficiency is the effect. In the same manner, the other principles of management also establish relationship between cause and effect.

(7) Contingent:

The principles of management are not fixed or permanent. They are affected by situations or circumstances. Therefore, the decision to implement them or not is taken according to the situations or circumstances.

For example, according to the principle of division of labour a worker should be assigned a definite part of a job time and again to increase his efficiency. But on the contrary, if a worker is fed up with doing a job repeatedly, the application of this principle will not be beneficial. Therefore, it will have to be changed.

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