Introduction to Class 12 Business Studies Chapter 1 Notes
Management is a vital topic in Business Studies as it deals with the orderly operation and thriving economy in any organisation. As stated in the Class 12 Business Studies Chapter 1 Notes, Management is a technique of getting work done within a given time frame. It is learned to fulfil a goal set in by an organisation efficiently and effectively.
This approach toward Efficiency, which is the best way to save money, is discussed in the Chapter 1 Business Studies Class 12 Notes created by the Extramarks. According to the Class 12 Business Studies Chapter 1 Notes, efficiency is defined as a work that is completed with adequate preparation and with the best use of available resources to achieve the desired result. On the other hand, effectiveness refers to the ability to produce a product or complete a project within a specified time frame.
The first Chapter in Class 12 Business Studies Chapter 1 Notes describes these approaches, which are similar yet have different features. As a result, it’s critical to strike a balance between the two.
Key Topics Covered in Class 12 Business Studies Chapter 1 Notes
- Concept:
Meaning:
Management refers to the collection of all activities and actions which contributes to smooth running operations within a company or an organisation. It aids in the organisational instruments necessary for its growth. The successful use of materials, money, tools and labour for producing goods and services is referred to as Management. A management plan is an effective strategy for running a firm efficiently.
Definition:
Management is defined as planning, organising, actuating, and controlling all organisational operations to coordinate the human and material resources essential for the effective and efficient attainment of objectives.
- Terminologies:
Process:
The term ‘Process’ refers to the Management’s significant operations in an organisation to reach the goal. Planning, organising, staffing, directing, and managing are all part of the process.
Effectively:
The term effectively refers to completing work within the given period.
Efficient:
The term efficient refers to completing a task with the least money and the best use of resources.
Differences between Effectiveness and Efficiency:
| Basis |
Effectiveness |
Efficiency |
| Meaning |
It refers to completing the assigned task within the given time frame. |
It refers to completing the assigned task with minimum wastage and minimum costs.
|
| Objective |
To do work in a given timeframe. |
Optimum utilisation of resources at reduced costs.
|
| Main Element |
Time |
Cost
|
More in-depth explanations about these terminologies are covered in Extramarks Class 12 Business Studies Chapter 1 Notes
- Characteristics of Management:
Students can learn more about the Characteristics of Management topic via Extramarks Class 12 Business Studies Chapter 1 Notes.
Goal-Oriented Process:
Each company has its own set of goals to meet as a final product. Management is responsible for directing the employees’ efforts toward the achievement of these goals. As a result, Management might be defined as a goal-oriented process. It is pointless to operate if a company does not have a precise aim.
All Pervasive:
Management is an all-encompassing activity. It is required in all types of organisations: large and small, and is carried out at all levels of authority: top, middle, and lower. The five management activities are the same for all businesses, regardless of their economic, social, or political borders. The process varies, but the fundamentals and basis stay the same.
Multidimensional:
There are three major dimensions to Management. The following are some of them:
Every business has a reason for existing. The main goal is to complete specific tasks to achieve the desired outcome. Management translates the task into goals and assists in their attainment. For instance, a hospital is a facility that provides medical care to patients. A supermarket exists to meet people’s day-to-day needs.
Management brings together the efforts of a group of people working in an organisation to function as a team. A manager’s job is to get things done for both individuals and groups of people.
- Management of operations:
Every business needs to produce some essential product or service, which necessitates a manufacturing process and operations to transform the inputs into the final result.
Management is a continuous process:
It is a continuous process since it comprises a series of interconnected actions. These tasks should be carried out systematically, ordered, and sequential. It’s a never-ending cycle. Planning, organising, directing, staffing, and controlling are some activities.
Management is a group activity:
It is so because it involves the collective efforts of a group of people. It brings the group’s efforts together and leads them towards a single goal.
A Dynamic Function:
The organisation’s business policies and practices must evolve in response to the business environment, which includes a variety of social, economic, and political aspects. Because the world is growing in every way, new practices and conventions must be followed to meet the environment’s ever-changing needs.
Intangible Force:
Management is a force that is not visible. It is not visible, but it can be felt via accomplishing goals.
- Objectives of Management:
Objectives are the desired outcomes that motivate managers to achieve them. There are three managerial objectives:
Organisational Objectives:
Organisational Objectives are the goals that an organisation’s Management sets for itself over a specified period. An organisation must meet different types of objectives, and these objectives are determined by taking into account the various stakeholder interests. An organisation’s primary goal is to make the best use of its resources most effectively and efficiently. It’s broken down into three sections: survival, profit, and expansion.
The fundamental goal of Management is to ensure long-term market survival by making positive decisions for the company.
An organisation’s primary goal is to generate enough income to cover its production costs.
The ultimate goal of any person or individual who runs a business is to make a profit. Management ensures that enough profit is generated to meet the company’s diverse needs. To produce a profit, Management makes the best use of money, material, machines, labour and other resources. A higher profit yields a higher return to investors in the form of dividends, interest, etc.
Management should strive to improve the organisation’s performance consistently. Management’s overall goal is to achieve maximum results with fewer resources to increase wealth and growth. An organisation’s development can be measured in various ways by using a variety of indicators. The growth indicators differ from one firm to the next. Some may contemplate expanding sales volume, while others may seek a more significant number of products, and so on.
Organisational Objectives is a crucial topic to understand in organisation management. Extramarks team has developed Class 12 Business Studies Chapter 1 Notes that cover all aspects of this topic.
Social Objectives:
Any organisation that exists does not exist only to make a profit. It also has some social responsibilities and goals that must be met. This may differ from one company to the next.
For Example, some seek to provide basic infrastructure to the nearby people, while others strive to provide maximum employment. Some would want to produce eco-friendly beneficial products.
Personal Objectives:
Everyone joins an organisation to achieve their own goals. Some people join for a decent wage package, some for increased notoriety, and others for survival. As a result, it varies from person to person. An organisation must identify personal goals and connect them with them to achieve organisational harmony.
- Importance of Management:
Attainment of group objectives:
Management instils in a group of individuals cooperation and a sense of belonging. Leadership also motivates group members to contribute their full potential to attain the common goal. Management has established this unified goal.
Optimal resource utilisation:
Management puts together workers, money, material, and machines in the proper proportions to cut costs and increase output.
Cost-cutting:
Management improves efficiency and lowers costs by implementing improved planning, organisation, and control. Management aids an organisation’s ability to compete by removing waste and keeping costs low.
Social development:
Management raises people’s living standards by delivering high-quality products and services. It also aids in creating new jobs and the adoption of new technology.
Achievement of personal objectives:
Management plays a critical role in establishing individual goals and integrating them with companys’ aims to achieve organisational harmony and particular objectives.
Nature of Management:
Over time, Management has changed and has got much more dynamic in recent years. It used to be founded on a system of rules and regulations, or as we would call them, conventions, that evolved to meet the ever-changing needs.
Extramarks Class 12 Business Studies Chapter 1 Notes cover all the above topics at a broader length by giving real-life examples. Students are recommended to register on Extramarks website to access these study notes.
- Management as an Art:
Management as an Art refers to putting one’s knowledge, and abilities into practice to attain goals. It can be learned through various approaches, including observation, study, and training.
Basic characteristics:
- Theoretical Knowledge Existence:
Art entails the use of theoretical knowledge. Management is the art of getting things done through persons to achieve desired outcomes by applying available information.
- Personalised application:
Because information is used differently by different people, Management is an individual skill. Two persons can execute the same work, but their methods will always be distinct.
- Based on practice and creativity:
Management is goal-oriented and results-oriented, based on experience and creativity. In the same way that art demands practice, Management also requires it. Consistent practice sharpens individual talents and creativity.
As a result, Management can be regarded as an art form, as it involves skills, practice, and innovation. This articulation of Management as an Art is covered beautifully in Extramarks Class 12 Business Studies Chapter 1 Notes.
- Management as a Science:
Science is a systematised collection of knowledge that may be learned via observation and experimentation. It’s broadly accepted notions that outline how causes and consequences interact.
Basic characteristics:
- A well-organised body of knowledge:
Management is a systematised body of knowledge with its own set of ideas and concepts based on cause-and-effect relationships.
- Principle-based on experiments and observation:
Fundamental management principles are formed through experiments and observations. Their findings are testable and verifiable.
Management principles do not have the same general validity and application as scientific ideas. The fundamentals of Management are taught to managers, but the remainder must be adjusted to the organisation’s and environment’s needs.
As a result, Management is a science, but it is a social science because it is dependent on human behaviour. Since human behaviour cannot be studied through experiments, Management can be referred to as a soft science.
- Management as a Profession:
A profession is a vocation that involves specific knowledge, practical training, service motivation, and a code of conduct. Below we have given a few essential traits of how we can look at Management as a Profession. More finer aspects on this topic are covered in our Class 12 Business Studies Chapter 1 Notes
Essential traits:
- Well-defined body of knowledge:
A professional domain’s entire set of ideas, concepts, words, and activities.
Every profession has a set of requirements for entry, such as an Examination or a specific educational degree.
- Professional Associations:
Every profession is linked with a professional association, which governs entry and establishes a code of ethics for the domain. IMA, ICAI, etc.
Every profession has an ethical code of conduct that governs its members’ behaviour.
A profession’s primary goal is to serve its clients.
- Levels of Management:
Company management operates at different levels as detailed below. Extramarks Class 12 Business Studies Chapter 1 Notes focuses on various elements that impact the management at top, middle and operational levels.
Top Management Roles and Responsibilities:
CEO, Board of Directors, MD, GM, and VP make up this group. The central role is to conceptualise the organisation’s aim, formulate policies and strategies, and organise, control, and monitor activities and resources. Individual work performance is monitored, and budgets are approved.
Middle Management-Designations and Functions:
Its primary responsibility is to carry out plans and policies created by top-level Management, prepare organisational setup, appoint employees, provide instructions, and motivate staff. It is made up of Departmental, Sub-departmental, and Divisional leaders. Moreover, ensuring interdepartmental interaction is one of its functions as well.
Supervisory and operational Level-Designations and Functions:
Forepersons, supervisors, and others make up this group. The significant role is to guarantee that policies are implemented as directed by the top and medium-level managers and bring workers’ problems to the attention of Management and preserve worker discipline.
- Functions of Management:
Planning:
Setting goals and objectives and establishing a strategy and action plan to attain them is the process of planning. It fills the space between where we are now and where we want to be. This is an essential function of an organisation and the first stage of Management.
Organising:
The process of establishing power and responsibility connections is known as organising. It entails delegating responsibilities to people and distributing resources to them.
Staffing:
Staffing is matching the right employee to the right job at the right time. Employee recruitment, selection, placement, induction, and training are all part of this process. It is also known as the organisation’s Human Resource function.
Directing:
Leading, influencing, and encouraging people in the organisation to execute the assigned task successfully and efficiently is referred to as Directing. Employees must be consistently motivated to improve their performance. The fundamental components of directing as functions are leadership and motivation. It tends to bring out the best in people.
Controlling:
Controlling is monitoring an organisation’s performance and comparing it to established criteria. Corrective steps are also conducted if there is a discrepancy between the actual and desired results.
Planning, organising, staffing, directing and controlling are broad topics and require a deeper level understanding of how it works. Students can register on Extramarks website and get access to Class 12 Business Studies Chapter 1 Notes. All these 5 functions of management are explained with multiple examples for quicker understanding of students.
- Coordination:
Coordination is a force that synchronises all five management functions and levels to achieve the organisational aim. Coordination is implicit and fundamental in all the tasks within an organisation and students can refer to Extramarks Class 12 Business Studies Chapter 1 Notes for gaining a better in-depth explanation around how coordination works in sync with all five management functions.
Without coordination, job overlap, duplication, delays, and confusion are risks. The coordination function is derived from the planning function. Coordination thus synchronises the varied activities and actions of multiple organisational units.
Characteristics of Coordination:
- Coordination integrates group efforts:
Coordination integrates group efforts and ensures that the organisation’s performance meets the established standards.
- Coordination ensures unity of action:
Coordination is a force that unites the various departments and guarantees that all efforts are focused on attaining the corporate goals.
- Coordination is a never-ending process:
Coordination is a never-ending and ongoing procedure. It is essential at all levels of Management and in all operations of the company, from beginning to end.
- Coordination is a deliberate function:
Management must purposefully coordinate the activity of many employees inside the organisation. Coordination does not happen by itself. It requires a purposeful and conscious effort on the part of each Management.
- Coordination is the responsibility of all managers:
All employees must operate responsibly and coordinate to achieve the organisation’s objectives or goals.
- Coordination is an all-pervasive function:
Coordination is essential in every organisation, no matter how large or small. It is required at all levels and in all management functions.
Importance of Coordination:
Coordination harmonises individual goals with corporate aims, resulting in increased size. This leads to the organisation’s expansion, which leads to an increase in the number of individuals employed there.
- Functional Differentiation:
Every department within an organisation has its own goals, policies, and working styles. However, to achieve organisational goals, coordination is required to link the operations of all departments.
- Specialisation: Specialisation combines all of the actions of the specialists into a single endeavour.
More information can be found on various study materials and solutions for the Class 12 Business Studies Chapter 1 Notes, all available at the Extramarks website.
Class 12 Business Studies Chapter 1 Notes – Exercise and Solutions
Subject matter experts from the Business Studies domain have prepared Extramarks NCERT Class 12 Business Studies Chapter 1 Notes. These study materials will help students score extra marks and achieve good grades.
The advanced level questions and answers covered in these study notes aid in developing problem-solving skills, thus allowing students to face Higher Order Thinking Skills(HOTS) Questions asked in the CBSE Board Examination with ease. Students can click on link below to access these questions and its solutions
Below are the additional set of other study materials students can refer to:
- NCERT Solutions
- CBSE Syllabus
- CBSE Extra Questions
- CBSE Revision Notes
- CBSE Notes
- Important Questions
- CBSE Previous Year’s Question Papers
- CBSE Sample Papers
The chapter notes and solutions provided here contain well-structured answers, several practice problems, and in-depth explanations, all developed by specialists to assist students in acing the examinations. Students will be able to improve their overall learning and better understand the subjects by using our study materials.
Key Features of NCERT Solutions Class 12 Business Studies Chapter 1 Notes
Class 12 Business Studies Chapter 1 Notes will guide students to a better teaching-learning process. Studying from NCERT textbooks might not be enough for students to understand the concept thoroughly. Hence Extramarks has introduced a series of Notes for Class 12 Business Studies, which will help students comprehend this subject and prepare well for examinations.
Some of the critical features of Class 12 Business Studies Chapter 1 Notes by Extramarks are as below:
- All the CBSE Revision Notes and CBSE Business Studies Class 12 Chapter 1 Notes are exclusively prepared for students by subject experts at Extramarks.
- These Notes give an in-depth explanation of every topic in the Chapter. All the topics are covered in simple and easy to understand language.
- Students can refer to Notes, Solutions, Question Papers, or any study material through the Extramarks website.
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