Class XII-Business Studies

CHAPTER 1

NATURE AND SIGNIFICANCE OF MANAGEMENT

Meaning of Management

Management is the process of planning, organizing, staffing, directing and controlling the resources efficiently and effectively to achieve the organizational goals.

Definitions of Management

“Management is the art of getting things done through others.” – Mary Parker Follet

“Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals.” – Koontz and O’Donnell

Effectiveness versus Efficiency

Effectiveness and efficiency are the two sides of the same coin. The management should maintain a proper balance between the ‘effectiveness’ and ‘efficiency’ in achieving the organizational goals.

‘Completing’ the given task correctly within the given time is called effectiveness. It is concerned with the end result.

Doing the given task with ‘minimum resources’ (costs) is called efficiency. It is concerned with minimisation of resources.

If a manager completes the given task within the given time but at a high cost (resources), then he is said to be effective but not efficient.

If he completes the given task with minimum resources (costs) but exceeds the given time, then he is said to be efficient but not effective.

If he completes the given task by exceeding the given time and costs (resources), then he is neither efficient nor effective.

If he completes the task within the given time and with minimum costs (resources), then he is said to be effective as well as efficient.

A good manager should always be effective as well as efficient.

Fore More Notes on:

1. Nature and Significance of Management

2. Principles of Management

3. Business Environment

4. Planning, Organising, Staffing, Directing and Controlling

5. Financial Managenet, Financial Market and Marketing Management

6. Consumer Protection etc.....Click on the below given button