class 12 commerce business studies notes
class 12 commerce business studies notes:- the course in Business Studies at CBSE Class 12 level will prepare students to analyse, manage, evaluate and respond to changes which affect business. we provide class 12 commerce business studies notes in this article.
class 12 commerce business studies notes
class 12 commerce business studies notes:-Business Studies : Principles and Functions of Management
class 12 commerce business studies notes:-Nature and Significance of Management
Management is considered to be both an art and a science. Explain.
Management fulfills the criteria of both an art as well as a science. The following points explain the features of management as an art and as a science.
Management as an Art
Management satisfies the following criteria for it to be called an art.
- Existing Literature: All art forms such as music, dance presuppose a defined body of knowledge and literature. Similarly, management also has a lot of literature for theoretical knowledge and learning. Various theories and principles have been developed in management. Such as Henry Fayol’s Principles of Management, Taylor’s Scientific Management Theory.
- Dynamic Application: Art is the personalised applicability of the existing knowledge. That is, each individual uses the basic knowledge in his own creative way. For example, every dance form has some basic steps. These steps are used by each dancer using his own creative manner. In a similar manner, managers use the available theories and principles as per the situation in their own unique manner. That is, the managers use their own creativity and imagination for the application of the knowledge of management.
- Practice and Creativity: Art involves practice and innovation. The artists use the existing literature as per his own creativity and innovation. For example, two writers can describe a given situation based on their unique interpretations. Similarly, in management, a manager applies the theories and principles of management to different situations as per his own creativity and imagination and some times even formulates new ways to address a situation.
Management as a Science
As a science, management fulfills the following criteria.
- Systematic Body of Knowledge: Science has a specified body of knowledge which is based on cause and effect relationship. Similarly management has its own body of theories and principles that are developed over years. In addition, similar to other disciplines of science, management also has its own vocabulary.
- Theories Based on Experimentation: In science the principles and theories are based on continuous observation and experimentation. In a same manner, the principles of management have also developed over several years based on repeated observations and experiments. However, as against science, in management no exact cause and effect relationship can be established. This is because management primarily deals with humans and human behavior. As human behavior is subject change, so, the outcome of these theories would also vary from one situation to another. Despite this, management fulfils this criterion of science to some extent as the scholars have been able to identify certain theories and principle that act as guidelines in management.
- Universal Validity: In science, the principles have universal validity. In management also the theories and principles are valid to some extent if not universal. Although the application of the theories and their outcomes vary from situation to situation, however they act as standards for actions in different situations. That is, these principles can be used for the basic training of the managers.
You can also check Viva questions for business studies class 12 from this article.
class 12 commerce business studies notes:-Planning
What are the main points in the definition of planning?
Planning is a psychological process of ‘thinking and deciding in advance’ about ‘what is to be done’ and ‘how it is to be done’. It is a mental activity, in which the manager decides about the goals to be achieved, and actions through which they are to be accomplished. It is futuristic in nature as it involves looking ahead, along with analysing and predicting the future. Planning can be defined as a process of setting up of goals and objectives for a given period of time, formulating alternatives for the course of action to be taken, and finally deciding an appropriate action from the various alternatives. The following are the main points in the definition of planning.
i. Setting Objectives: Planning must pertain to a particular objective. That is, there must be a definite objective for the achievement of which planning is to be done.
ii. Time Period: The plan must be formulated for a definite time period. If planning is not done with a time frame, it may prove futile. This is because with time business environment changes and requires fresh planning and action.
iii. Formulating Alternatives for Course of Action: Once the objective is decided, the next task is to decide how it is to be achieved. For the achievement of any objective there can be various alternative course of action. These alternatives must be appropriately formulated.
iv. Deciding a Course of Action: From the various available alternatives, the best one must be decided.
How does planning provide direction?
Planning states in advance what is to be done. It defines the goals and objectives to be achieved. These goals and objectives as stated in the plan gives direction to the managers about what course of action is to be followed for achieving them. Planning ensures clarity in thoughts so that the right action is taken in the right direction for the achievement of objectives. Planning ensures that each department in the organisation work in a coordinated manner towards the common objective of the organisation. That is, with planning each department knows exactly what is to be done and thereby, moves in the right direction. Without planning work would be done in a haphazard manner with each department going in different directions. Thus, planning ensures smooth functioning towards the desired goals of an organisation.
class 12 commerce business studies notes:-Staffing
Briefly enumerate the important sources of recruitment.
Recruitment refers to the process of searching and attracting the required personnel for a job. In other words, it is the process of finding the potential candidates and instigating them to apply for the job. The following are the two important sources of recruitment.
i. Internal sources: Internal sources of recruitment refer to the sources that are within the organisation. That is, through internal sources the jobs are filled up from inside the organisation. It can take the form of transfers and promotions. Through transfers, the job of a specific profile is filled by shifting a suitable person working in another department of the organisation to the concerned department. Similarly, through promotions, higher position job vacancies in the organisation are filled by promoting the lower level employees.
ii. External Sources: External sources of recruitment refer to the sources of recruitment that are outside the organisation. Through external sources the jobs in an organisation are filled by bringing in new people. For example, one of the external sources of recruitment is ‘direct recruitment’ which involves putting up a notice board outside office and then following the recruitment process on a specified date. Similarly, placement agencies work as an external source as they act as a match maker for the job seekers and job providers.
Define the staffing process and the various steps involved in it?
Staffing process refers to the procedure of filling the vacancies and keeping them filled. It focuses on timely fulfillment of the human resource required within the organisation. According to ‘Theo Haimann’, ‘staffing pertains to recruitment, selection, development, training and compensation of subordinate managers. This definition includes the steps involved in the staffing process. Following is a brief description of various steps involved in staffing.
(i) Estimation of the Required Manpower: The process of estimating manpower requirement is the basic step in the process of staffing. It refers to knowing the number and the kind of persons that are required in the organisation. Estimation process involves two steps-workload analysis and workforce analysis. Work load analysis implies an estimation of the number and the kind of persons required for various jobs. On the other hand, workforce analysis implies an estimation of the existing persons. The two-step analysis reveals whether there is any overstaffing or understaffing in the organisation and thereby, forms the basis of the staffing process. For example, a situation of understaffing would imply that more personnel are required to be appointed and a situation of overstaffing would imply that some of the existing personnel need to be removed.
(ii) Recruitment/Searching: It refers to enlisting and searching the suitable candidates for the job. It is the process of searching the appropriate people for the job and influencing them to apply for the job. Recruitment creates a pool of prospective candidates for a job. It involves searching through various sources that includes internal sources (transfers and promotions) and external sources (advertising and placement agencies). It forms the basis for the selection process by attracting the aspirants towards the organisation.
(iii) Selection: Selection involves choosing the right candidate out of the gathered pool of aspirants which is created after recruitment process. It is a rigorous procedure and comprises of series of tests, interviews, etc. The candidates who are not able to negotiate the selection process are rejected. It ensures that only the competent and the best ones are selected for the job. It is a highly important process as it forms the basis for working efficiency of the organisation.
(iv) Induction and Placement: Once the selection is done it becomes important to make the selected employees familiar with the working environment of the organisation. Induction involves giving a brief overview about the workplace, introducing them to other employees and the managers and making them comfortable with the work environment. Placement refers to occupying the position by the employee for which he has been selected.
(v) Training and Development: Next step in the staffing process is training and development of the employee. Both the process emphasise on improving the employee competence. Training is a process of increasing the employee’s capabilities and skills required for performing the job. Development, on the other hand, focuses on the overall growth of the employee by enhancing his thinking and understanding capabilities. They help the workers to upgrade their knowledge and increase their efficiency. Moreover, training and development motivates the workers and provides them opportunities for growth and career development.
(vi) Appraisal: Performance appraisal is an important aspect of any organisation as it helps in evaluating the work of the individuals. Appraisal implies assessing the performance of the employee against certain predetermined standards. In addition, under performance appraisal the superior provides proper feedback to the employee so that right measures can be taken for increasing the working efficiency.
(vii) Promotions: Every employee needs encouragement and motivation for continuing the work with right efficiency. Promotion of the employee in terms of position, pay, etc. helps in providing job satisfaction to the employee and encourages them to realise their potential. Promotions serve the long term interests of the employees.
(viii) Compensation: Worth of the job is an important aspect to determine. All organisations need to establish the right pay or salary for each job. Compensation entails the price of a job along with the rewards that the employee deserves. Compensation provided to the employee can be in direct terms (that is, wages and salaries) as well as in indirect terms (such as insurance, bonus, etc.).
class 12 commerce business studies notes
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class 12 commerce business studies notes
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