Business Studies | Unit-1 | Nature of Management | Class-12

Class-12 Business Studies Unit-1: Nature of Management Concept of Management: Answer: Management is the process of getting things clone thro...

Class-12

Business Studies

Unit-1: Nature of Management

Concept of Management:

Answer: Management is the process of getting things clone through others for achieving predetermined objectives. All the activity done by the managers such as planning, organizing, staffing, directing, and controlling is management. The word management is constituted with three words, i.e. manage-men-t which means to manage human resources tactfully for the achievement of organizational goal. The proper use of organizational resources helps to maximize productivity and minimize cost. It helps to face competition in the market.

According to Henry Fayol, "Management is the process by which co-operative group directs action towards common goals,"

Management is known as the backbone of an organization. An efficient management system is essential for the successful functioning of an organization. Management's major goal is to fulfill the organization's economic objectives in a methodical and efficient manner by enlisting the help of subordinates.

1. Explain the characteristics of management?

Answer: Management is the process of getting things done through others in systematic manner for achieving predetermined objectives. The following are the common characteristics of management:-

• Goal-oriented
• Universal activity
• Social process
• Dynamic activity
• Group activity
• Both science and art
• A profession

• Goal-Oriented: One of the most significant aspects of human activity is management. It is necessary in all types of global organizations. It aids in the development of work completion standards, systems, and procedures.
• Universal Activity: Management is one of the important parts of human activities. It is essential in all type of organization of the world. It helps to develop certain rules, system and procedures for completion of work.
• Social Process:-Management is an important aspect of the social process. Managers assist their employees with various tasks. They must maintain relationships with external stakeholders such as consumers, suppliers, bank officials, and government officials, among others.
•  Dynamic Activity: Management must be dynamic and flexible with the changing environment of the society. It should be flexible according to time and situation and needs of the society.
• Group Activity: The concept of management is not applicable where only one person or proprietor is working. All the members of the organization need to consider management system while doing activities. It is essential for effective group performance
• Both Science and Art: Management is science as it satisfies many properties of science and it is also regarded as an art as it is an art of getting things done through others. Management is done by manager and it depend upon the creativities and personal skills of managers. Hence. It is also an art.
• A Profession: A profession is a sort of job that requires a certain level of academic qualification, knowledge, and experience. Doctors, engineers, lawyers, and chartered accountants are examples of such professionals.

2. Explain Management as Science. Art or Profession?

Answer: Whether management is a science an art, or a profession is a point of contention among academics. As a result, in order to determine, whether management is a science, an art, or a profession, we must examine the characteristics of these disciplines and assess whether or not they are aligned with the concept of management.

The following is a detailed examination of the above discipline:

A. Management as a Science:

Answer: The basic principles of management are based on scientific observation and experiment and are applied in all types of organizations, so it is a social science as it deals with people and their behavior. The following are the common features of science and those features are also included in management,

• Systematic Body of knowledge:- Management is a set of knowledge that is organized in a methodical way. It has its own set of principles, philosophies, and conceptions. Management philosophers, theorists, and practitioners created them. They are universally acknowledged. They may be analyzed and understood in a methodical and logical manner.
• Observation and Experimentation:- Management knowledge has been developed through observation and experimentation. It is based on observation and analysis of management practices and experiences. It gives importance to facts and reason. It is based on research and experiments about various aspects of human behavior in organizational settings.
• Universal Applicability:- Management principles are universally applicable. They can be used by any form of organization. Managers are guided by them. Management is a situational practice. It varies depending on the circumstances. Management principles are adjusted to meet the demands of the scenario.
• Cause and Effect Relationship:- Principle of management establish cause and effect relationships between variables. For example. Poor motivation leads to low performance.
• Validity and Predictability:- Management principles are both valid and predictable. They can be validated and evaluated for accuracy. They serve as a foundation for forecasting future events. It isn't based on rigorous testing in a laboratory setting. In situational circumstances, it is used with discretion.

B. Management as Art:

Answer: Management is the art of getting things done through others. For this purpose manager needs to play the role of an artist. The main elements of art and involvement of those elements in management are as follows:

• Ability and Skills: - Managers use their own unique abilities and skills to solve challenges Long-term thinking necessitates conceptual skills.
• Practical Knowledge: - Art is founded on real-world experience. It entails some techniques, which an artist must follow in order to obtain the desired outcome. Work completion is also a part of management, which includes some processes and procedures. He must have hands-on experience in order to put management principles and processes into practice while dealing with work-related issues.
• Results-orientation: - Management is results-oriented. It achieves goals. It completes job within time, cost and quality requirements. It achieves goals with efficiency and effectiveness. Efficiency is doing the job right at low cost. Effectiveness is doing the right job.
• Regular Practice: - Management is not a one-time affair. It involves regular practice. The knowledge, abilities and skills are regularly practiced for problem solving. Practice provides experience
• Creativity: - Management is a form of creativity. It solves difficulties that aren't easy to fix. It necessitates novel ideas and approaches. In a risky and uncertain environment, management necessitates making decisions. It is a company that develops innovative items. It controls people deftly.

C. Management as a profession:-

Answer: Professional managers are required in corporate sectors where management and ownership are distinct. The following are the characteristics of the profession, which are covered to some extent by management:

• Specialized Knowledge: - Management is a body of well-defined specialized knowledge. It has its own concepts, theories and principles. [t is a separate discipline. Management knowledge is increasing through research, teaching and practice. Professional managers are experts in management.
• Formal Education and Practical Training: - The management profession necessitates formal education and training in universities and colleges. Internships are a great way to get practical experience. As part of their official education, students are reclaimed to get real-world experience. Managers keep their skills and expertise up to date all of the time. To improve performance, this is necessary.
• Association of Members: - Professional management associations are made up of managers. The associations govern members' admission into the profession as well as their behavior. It protects and promotes their common interests. It establishes a code of ethics for its members. Nepal has MAN — Management Association of Nepal. Its members exchange knowledge and experience, regularly. All managers do not become members of association.
• Code of Conduct: - Managers are required to observe the code of conduct of their association. They need to behave ethically. Violation of code of conduct is punishable by cancellation of membership. Professional managers practice self-discipline.
• Social Responsibility: - Professional managers, on the other hand, are socially conscious. Stakeholders' interests are protected by them. Investors, customers, employees, the government, and the community are all stakeholders. They're curious about the places where managers work. Managers are motivated by a desire to provide excellent customer service. They aren't enraged because of a lack of funds, Society appreciates their contributions.

3. Explain the Functions of Management?

Answer: The major functions of management involve planning, organizing, staffing, directing, and controlling. The major functions of management are as follows:-

§  Planning

§  Organizing

§  Staffing

§  Directing

§  Controlling

• Planning:- The process of determining objectives and selecting the best course of action for accomplishing those objectives is known as planning. Planning entails deciding ahead of time what will be done, when it will be done, why it will be done, how it will be done, and who will be responsible for it. The primary job of management is planning. It focuses on the next steps to take.
• Organizing: - Organizing is the process of combining together all the organizational resources and establishing productive relations among them. The organizational resources involve money, materials, machines and manpower. Organizing defines the hierarchy of positions of all the authorities from top level to subordinate levels.
• Staffing: - All activities linked to human resource management are included in staffing it entails tasks such as hiring, training, motivating, and keeping personnel in the organization. Recruitment, selection, appointment, and placement of the right individual in the right job are all part of the initial step. It also entails the implementation of personnel efficiency development initiatives.
• Directing: - The activity of directing is an element of the managerial function of implementation. Directing is a vital tool for improving an organization's working environment. Supervision, motivation, leadership, communication, and coordination are some of the key characteristics of directing.
• Controlling: - Controlling is the process of comparing actual performance achieved with that of standard performance and taking corrective step if any deviation is found in actual performance. After certain period of implementation of plan managers measure. and compare actual performance achieved with that of planned performance.

4. Explain the Differences between Administration and Management?

Answer: Generally, there is no any fundamental difference between management and administration. However, on the basis of views of some management scholars the Following are the basis of difference management and administration:

Point of Difference	Administration	Management
a. Nature of work	- Policy formulation. - Thinking function.	- Policy implementation. - Execution function to get - Job done.
b. Scope	- Provides guidelines for decision making.	- Makes decisions within the policy guidelines.
c. Participants	- Top-Level management - Owners	- Middle and lower level managers.
d. Authority	- Broad level of authority. - No delegation of authority.	- Narrow level of authority - Delegation of authority.
e. Decision-making	- Influenced by public opinion and environmental forces.	- influenced by values and beliefs of managers.
f. Nature of organization	- Service providing and non-business organizations.	- Profit making business organizations.
g. Skills	- Requires conceptual skills.	- Requires technical and human skills.
h. Application	- Government and non-government organizations.	- Business Organizations.

5. Explain the Level of Management?

Answer: There are three degrees of management: top, middle, and subordinate. It is impossible for a manager to manage all organizational performance without delegating to subordinates in huge organizations. As a result, management systems can be separated into several tiers depending on the nature and size of the organization. However, in business organization, the levels of management may be classified into the following three levels:

• Toy Level Management: - The organization's management has the highest level of authority. Goals, strategies, policies, and plans are all established. It is the final authority figure. It is in charge of resource mobilization and allocation. This level is also called the management's brain. It wrests control from the owners immediately. The act is completely responsible for the organization's success. The following are the major functions of top level management:
• It defines long terms objectives of the organization,
• It develops organizational structure in hierarchical form.
• It appoints departmental managers and other staff of the organization.
• It directs co-ordinates and leads to all the members of the organization.
• It exercises overall control to all the authorities of the organization.

• Middle level Management: - Department heads such as human resource managers, production managers, marketing managers, finance managers, research and development managers, and similar positions are represented at this level of management. Departmental managers are in charge of all activities in their respective departments. Heads of the department come under senior level whereas branch heads are under junior level management. The top level management delegates major part of its authority and responsibility to this level. This level plays the role of mediator between top level management and subordinate level management. The following are the major functions of middle level management:-
• It determines short term objective of the organization.
• It delegates authority and responsibility to the subordinate level managers.
• It prepares short term plan for achieving short term objectives of the organization.
• It plays the role of mediator between top level management and subordinate level management.
• It divides work among the subordinates and maintains co-ordination among them. 

3. Lower or subordinate level Management:-

Answer: Subordinate level management is known as first line or operating level of management. It is directly involved in actual operation of the organization such as production, marketing, financing, accounting, etc. This level consists of supervisors, foreman, superintendents, sales officers, account officers, and other operational heads. They are responsible for the implementation of plans in practice. They have direct relations with the employees and do work with them. The following are the major functions of subordinate level of management:-

• It determines very short or day to day objectives of the organization.
• It distributes responsibilities and duties to the employees.
• It provides necessary resources and instruction to employees to do the work in the best possible way.
• It submits the report of achievement of work to middle level management.
• It maintains close and harmonious relation among all the employees and their performance.