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Notes

10
FUNDAMENTALS OF MANAGEMENT
L et us take the example of a housewife. She is the person who manages all the household
work. She decides upon a number of things like – how to decorate the house in
terms of furniture, curtains, bed sheets, sofa covers, crockery, cooking utensils etc.;
what type of food is to be served to family members, what shall be the timing of
breakfast, lunch, dinner, etc.; and then arranges the requisite materials to prepare the
food, hires a maid/ servant to assist household work on a part time or full time basis
and looks after many other such work. She not only decides all these but ensures that
all this work is carried out properly. For this purpose she does some work herself and
may distribute certain work among the family members so that work is carried on
smoothly. For example, she may assign the task of dropping the children to the school
to her husband, the task of clearing the bed to the eldest child, the task of cleaning
utensils to the part time maid and so on. Every housewife does all this work in her
own way depending upon her understanding, interest and commitment and so also
the resources available.
Similarly, take the case of a school teacher who is given the task of taking school
children on a picnic. The teacher also decides upon a number of things like – where to
go, when to go, how many students and other teacher shall go, how much money is
required where to get such money, by what time students must come back, how to
collect them from home and drop them and so on. Then he also assigns duties to other
persons assisting him in the exercise. For example, he may assign the task to other for
arranging a bus for conveyance, collecting money from students, make a group of
students to arrange for food and its distribution, and so on. Again, every school
teacher if assigned a similar exercise may handle it in his own way depending upon
the capability and interest of the teacher as well as a number of other factors.
Let us take another example. There may be many grocery shops in your locality.
Consider any two such shops owned by individuals as sole-proprietors. Both of them
do a number of activities like procuring goods from manufacturers / wholesalers and
selling them to consumers, maintaining records of transactions, paying taxes,
supervising the staff, and making efforts to improve sales, etc. However, how they
handle all these jobs depends upon their capabilities and factors like the location of
their store, the assistants they have and so on.
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On analysing the above examples we find one thing common among the housewife,
the school teacher as well as the grocery owner i.e., they are all involved in
managing an important activity namely the household, the school picnic and the
Notes business respectively. Thus, we find management everywhere, every housewife
manages her household work, every professional manages his tasks and every
businessman manages his business. In this lesson we shall learn about the concept of
management in the context of managing a business, and its characteristics, nature,
importance, functions and the general principles guiding managerial actions in the
management process.

OBJECTIVES
After studying this lesson, you will be able to:
 explain the concept management;
 identify the characteristics of management;
 explain the importance of management;
 describe management as an activity, as a process, as a profession and as a discipline;
 identify the various levels of management;
 describe the functions of management; and
 explain the principles of management.

10.1 MEANING OF MANAGEMENT

Consider a business enterprise, it may be an industry or it may be a trading concern.
In both the cases, to start and run the business some amount of money is needed,
some materials, few machines and some men are required, and some processes are
involved. All these are considered the inputs for a business that result in output in
terms of products or services. However, with same amount of money, raw materials,
machines and men, and following the same processes, the output may not be same in
all cases. For example, with same amount of money, men, machines and materials, if
you and Ramesh start a similar business independently, the result may not be the same
for both of you. You may do well whereas Ramesh may not. But this is because the
inputs do not become output by themselves. Various activities are required and
these need to be properly directed, coordinated and integrated so that the inputs
produce good results. This process of using various resources (inputs) to produce
some results (outputs) is known as management, and the degree of success varies
according to the efficiency with which the resources are managed. Thus, management
refers to the process of using men, money, machines, material and processes through
proper direction, coordination and integration of several activities so as to produce
desired results and attain predetermined goals. In other words, management
consists of a series of activities classified into various functions like planning,
organising, staffing, directing and controlling.
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10.2CHARACTERISTICS OF MANAGEMENT
The various characteristics of management are: all
situ
(a) Management is universal: It means that management is required for every type
ati
of organisation. It may be a business organisation or social or political. It may be a
ons
small firm or a large one. Management is required by a school or a college or
to
university or a hospital or a big firm like Reliance Industries Limited or a small
co
variety store in your locality. Thus, it is a universal phenomenon and is common and
me
essential element in all organisations.
.
(b) Management is goal directed: Every organisation is created to achieve
certain goals. For example, for a business firm it may be to make maximum
profit and/or to provide quality products and services. Management of an
organisation is always aimed at achievement of the organisational goals. Success of
management is determined by the extent to which these goals are achieved.
(c) Management is a continuous process: Management is an ongoing process. It
continues as long as the organisation exists. No activity can take place without
management. To perform all activities like production, sale, storage, operation
etc. management is required. So, as long as these activities continue the
process of management also continues to operate.
(d) Management is an integrating process: All the functions, activities, processes
and operations are intermixed among themselves. It is the task of management to
bring them together and proceed in a coordinated manner to achieve desired result.
In fact, without integration of men, machine and material and coordination of
individual efforts to contribute successfully as a team, it will be difficult to achieve
organisational goals.
(e) Management is intangible: Management is not a place like a graphic showing
Board meeting or a graphic showing a school Principal at her office desk which can
be seen. It is an unseen force and you can feel its presence in the form of rules,
regulation, output, work climate, etc.
(f) Management is multi-disciplinary: Management of an organisation requires
wide knowledge about various disciplines as it covers handling of man, machine,
material and looking after production, distribution, accounting and many other
functions. Thus, we find the principles and techniques of management are mostly
drawn from almost all fields of study like – Engineering, Economics, Sociology,
Psychology, Anthropology, Mathematics, Statistics etc.
(g) Management is a social process: The most important aspect of management
is handling people organised in work groups. This involves developing and
motivating people at work and taking care of their satisfaction as social beings. All
managerial actions are primarily concerned with relations between people and so it
is treated as a social process.
(h) Management is situational: The success of management depends on, and
varies from, situation to situation. There is no best way of managing. The
techniques and principles of management are relative, and do not hold good for
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Notes

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10.3 IMPORTANCE OF MANAGEMENT

The existence and success of any organisation largely depends on the kind of
Notes management it has. No amount of quality resources is going to help unless they are put
to productive use by efficient management. It is because of this reason that
management is studied as a subject in almost every discipline of study. In today’s
scenario with globalisation, job specialisation, changing technologies, new
responsibilities of business, consumerism, competition and emphasis on research
and development, the role of management has grown multifold. Its importance is
reflected in the positive result that the organisation can get in respect of the
following.
(a) Attainment of Goals
Every organisation has a goal to achieve and each employee in the organisation also
has his own goals that he wants to achieve. Even at operational level each
department, each unit or even each group has a goal that it wants to achieve. It is
only through proper management – by well thought of planning, good direction and
proper coordination and control that effectiveness to the efforts of each group to
achieve given goals can be ensured.
(b) Stability and Growth
Management strives to utilise the available resources of the organisation effectively
and efficiently. It controls the activities and operations, integrates the functions,
motivates the employees, maintains the health of the organisation in the ever changing
environment. It thus, ensures stability to the working of the organisation and
contributes to its growth.
(c) Change and Development
Management keeps itself in touch with the changes in the environment and
foresees development in the future. Accordingly, plans are made to keep the
organisation ready to meet the challenges. The technologies, operations, process as
human factors are developed on a continuous basis keeping an eye on the future.
(d) Efficiency and Effectiveness
By proper planning, staffing, organising, coordinating, directing, and its controlling
activities, the management helps in achieving efficiency and effectiveness to human
efforts and operations.

INTEXT QUESTIONS10A
1. Define the term ‘Management’ in your own words.

2. Complete the following incomplete words by taking clues from the statements

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given for each. Every blank represents one letter only. First one has been done
for you.
(a) Management is U V S L (UNIVERSAL)

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(b) Management is N GI E levels
(c) Management is S I L process of
manag
(d) Management is S U O AL ement
(e) Management is a O TI O S process
Clues:
(a) It is required for every type of organisation.
(b) It is an unseen force.
(c) It deals with people organised in groups.
(d) There is no best way of managing, so it varies.
(e) It is an ongoing process.

10.4 NATURE OF MANAGEMENT

The nature of management can be better appreciated by looking at it
 as a process
 as a discipline
 as a group of individuals
 as a profession, and
 as a science as well as an art.
(a) Management as a Process
Management consists of a series of inter-related activities of planning, organising and
controlling. All activities are undertaken in a proper sequence with a systematic
approach so as to ensure that all actions are directed towards achievement of common
goals. Thus, it is regarded as a process of organising and employing resources to
accomplish the predetermined objectives.
(b) Management as a Discipline
Management is a systematised body of knowledge that has developed, grown and evolved
over the years through practice and research. The knowledge so cumulated is
disseminated to successive generations of managers and used by them in performing
their jobs. Thus, it has become a separate field of study with its own principles and
practices and thus, evolved as an independent discipline with its own techniques and
approaches.
(c) Management as a Group
Management normally refers to a group of managers working in an organisation. It includes
the top executive as well as the first line supervisors. These managers perform their
functions jointly as a group. The success of business does not depend on the efficiency
of one, but of all manages taken together. Managers work as a team so that objectives
of the business are fully achieved. However, in every organisation there are certain
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Notes

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with varying degree of the nature of authority and responsibilities. You will learn about
these later in this lesson.
(d) Management as a Science as well as an Art
Notes
Management is regarded as a science as well as an art. Science refers to a
systematic body of knowledge with reference to understanding of some phenomenon
or subject or object of study. It establishes a cause and effect relationship between
variables. It is based on systematic explanation, experimental analysis, critical evaluation
and logical consistency. In science we learn the ‘why’ of a phenomenon. For
example, two molecules/atoms of hydrogen and one molecule/atom of oxygen
makes water (H2O). Similarly we can say earth moves round the sun. Any subject of
study to be called a science should have the following characteristics:
(i) There must be a systematised body of knowledge that includes concepts, people
and theories.
(ii) We should be able to establish a cause and effect relationship.
(iii) Its principles should be verifiable.
(iv) Its should ensure predictable results.
(v) It should have universal application.
Management as a subject of study fulfils almost all the above characteristics. Theories
and techniques like scientific management, PERT and CPM, break even analysis,
budgeting etc. are all scientific in nature. However, since it deals with human
beings, we cannot predict a definite cause - effect relationships. Hence management is
not treated as a pure or full-fledged science.
As for the art, you know that it refers to bringing about the desired result through
application of skill. It is a personalised process and states that there is no best way of
doing a thing. Thus, it is creative and it improves by practice. In art we learn
about the ‘how’ of a phenomenon. For example, take the case of painting. There is
nothing called the best way of painting. More one paints, the more he improves and
learns how to paint. Now look at management. Here also we apply a lot of skill (like
technical, conceptual, human etc.) and it is also creative in nature. Nobody can say that
this is the best way of managing. It varies from one manager to another. The more one
manages, the more experienced and expert he becomes.
Thus, management is a combination of both science and art.
(e) Management as Profession
In the first lesson you had learnt that profession is an occupation. To be precise,
any occupation that satisfies the following requirements is called a profession.
(i) It must be an organised and systematised body of knowledge. Take for
example professions like engineering or chartered accountancy. These require a
specialised knowledge.

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(ii) There is always a formal method of acquisition of such knowledge. In other words,
individuals, to pursue a specific profession, must acquire the specialised
knowledge through some formal institutions. For example, you need to get a
degree in law or engineering to pursue the profession of a lawyer or engineer.
Notes
(iii) There exists an association to devise certain code of conduct for the
professionals. This code of conduct lays down norms to be observed by the
professionals while doing their job. Violation of the prescribed code can lead
to derecognising the professional to practise.

(iv) Aprofession is no doubt an occupation to earn one’s livelihood but the financial
reward is not the main measure of their success. The professional use their
specialised knowledge to serve the long-run interests of the society and are also
conscious of their social responsibility.

Though management may not meet all the requirements of a profession in strict sense
of the term, but it meets most of the above requirements and is, now a days, regarded a
full- fledged profession. A number of institutions have come up to teach
management in a formal way and train future managers. Various associations like
American Management Association in USA, All India Management Association in
India have been functioning as representative bodies of managers and have duly
devised codes of conduct for managers. Many more organisations have come up in
the specialised fields of management.

INTEXT QUESTIONS 10B

1. The following statements make the management an art, science or profession.
Identify each statement and put their numbers in the box given below.

(a) There is a systematised body of knowledge that includes concepts, theories

and people.

(b) It is creative in nature

(c) It should have universal application.

(d) There is no best way of managing.

(e) There is always a formal method of acquisition of

knowledge. Art Science Profession

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2. Match the expression given in Column-I with these given in Column-II.
Column - I Column - II
(a) Management as a discipline (i) Team of managers
Notes
(b) Management as a process (ii) Code of conduct for professionals
(c) Management as a group (iii) Developed and grown through practice
and research
(d) Management as a profession (iv) Series of inter-related activities

10.5 LEVELS OF MANAGEMENT

As stated earlier, there are certain levels of management with varying degree of
authority and responsibilities. Some managers decide about the objectives of the
business as a whole; some managers perform functions to achieve these objectives
in different departments, like production, sales, etc, and some of the managers are
concerned with the supervision of day-to-day activities of workers. Managers
performing different types of duties may, thus, be divided into three categories:
 Top-Level Management
 Middle-Level Management
 Lower-Level Management
The following diagram will give you an idea about the functions, positions and relations
of different levels of management.

POSITION FUNCTIONS

Board of Directors Defining the objectives and

and Chief formulating the policies.
Executives TOP
LEVEL
Departmental Identifying the departmental
heads and objectives and
Managers guiding the lower
level towards the
MIDDLE achievement of
LEVEL these objectives.
Supervisors Carrying out
and Foremen the operations
LOWER and their
LEVEL supervisions.

WORKERS

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The diagram shows that the top level management includes Board of Directors and progra
the Chief Executive. The chief executive may have the designation of Chairman, mmes
Managing Director, President, Executive Director or General Manager. This level of
determines the objectives of the business as a whole and lays down policies to activiti
achieve these objectives (making of policy means providing guidelines for actions and es.
decision). The top management also exercises an overall control over the organisation.
The middle-level management includes heads of various departments, e.g., production,
sales, etc., and other departmental managers. Sometimes senior departmental heads are
included in the top management team. The objectives of the business as a whole
are translated into departmental objectives for the middle level management. The heads
of the departments then work out their own strategies so as to achieve these objectives.
Middle- level managers are particularly concerned with the activities of their respective
departments.
The lower-level management consists of foremen and supervisors who look after
the operative workers, and ensure that the work is carried out properly and on time.
Thus, they have the primary responsibility for the actual production of goods and
services in the organisation.
These three levels of management taken together form the ‘hierarchy of management’.
It indicates the ranks and positions of managers in the hierarchy. It shows that the
middle- level management is subordinate to the top-level and that the lower-level is
subordinate to the middle-level management.
Carefully see the figure shown above once again. You will see that the number of people
at each level increases as one moves from top to bottom. Workers including crafts
persons, manual labourers, engineers, scientists, etc. form the bulk of the organisation
membership. Within the managerial ranks, the number of managers at each level
decreases as one moves from lower-level to top-level management. At the top of the
organisation, there is usually one person.

10.6 FUNCTIONS OF MANAGEMENT

In every organisation, the managers perform certain basic functions. These are broadly
divided into six categories viz., planning, organising, staffing, directing, coordinating
and controlling. These are discussed basically hereunder. You will learn about all these
functions in detail in the lessons to follow.
(a) Planning
Planning is deciding in advance what is to be done, when it is to be done, how it is to
be done. It is basically concerned with the selection of goals to be achieved and
determining the effective course of action from among the various alternatives. This
involves forecasting, establishing targets, developing the policies and programming and
scheduling the action, procedure, etc., Thus, planning requires decisions to be made
on what should be done, how it should be done, who will do it, where it will be done,
and why it is to be done. The essential part of planning consists of setting goals and
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(b) Organising
After the plans have been drawn, management has to organise the activities, and
physical resources of the firm to carry out the selected programmes successfully. It
Notes
also involves determining the authority and responsibility relationships among
functions, departments and personnel at various levels to ensure smooth and
effective function together in accomplishing the objective. Thus, the organising
function of management is primarily concerned with identifying the tasks involved and
grouping them into units and departments, and defining the duties and responsibilities
of people in different positions within each department for well coordinated and
cooperative effort in the organisation.
(c) Staffing
Staffing is concerned with employing people for the various activities to be performed.
The objective of staffing is to ensure that suitable people have been appointed for
different positions. It includes the functions of recruitment, training and development,
placement and remuneration, and performance appraisal of the employees.
(d) Directing
The directing function of management includes guiding the subordinates, supervising
their performance, communicating effectively and motivating them.Amanager should be a
good leader. He should be able to command and issue instruction without arousing any
resentment among the subordinates. He should keep a watch on the performance of his
subordinates and help them out whenever they come across any difficulty. The
communication system, i.e., exchange of information should take place regularly for
building common understanding and clarity. The managers should also understand the
needs of subordinates and inspire them to do their best and encourage initiative and
creativity.
(e) Controlling
This function of management consists of the steps taken to ensure that the performance
of work is in accordance with the plans. It involves establishing performance standards
and measuring the actual performance with the standards set. If differences are
noticed, corrective steps are taken which may include revision of standards, regulate
operations, remove deficiencies and improve performance.
(f) Co-ordinating
Management has to ensure that all the activities contribute to the achievement of
the objectives of the business as a whole. This requires integration of activities
and synchronisation of efforts. The heads of different departments should not treat
each other as competitors but should work as organs of one body. As the proper
functioning of every organ of a human body is important for a healthy body, the work
of every department is important for the organisation as a whole. Managers should,
therefore, see that everybody in the organisation understands its objectives and works
in co-operation with others to achieve these objectives. This function of management
is called co-ordination. It consists of harmonising group effort so as to achieve
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INTEXT QUESTIONS 10C

1. The following table contains the function, position and different levels of
management. Pick one from each column and make a meaningful combination. Notes

Levels of Position Functions

Management
(A) Top (a) Departmental heads (i) Identifying the
and managers departmental objectives
and guiding lower level
towards achievement of
objectives.
(B) Middle (b) Board of Directors (ii) Carrying out the operations
and Chief Executives and their supervisions.
(C) Lower (c) Supervisors and (iii) Defining the objectives and
Foreman formulating the policies.

2. Given one word substitution of the following.

(a) Deciding in advance about the future course of action.
(b) Guiding and supervising the subordinates towards the work.
(c) It confirms that plans are properly carried out.
(d) It brings harmony in group.
(e) It ensures that right type of persons are in the right position.

10.7CONCEPT OF SCIENTIFIC MANAGEMENT

F.W. Taylor, well-known management expert, worked as an apprentice, machinist,
foreman and ultimately as the chief engineer of a steel company in U.S.A. Taylor
suggested a new approach to management early in the twentieth century. This is
known as ‘Scientific Management’. The basic principles developed by Taylor as
principles of scientific management were:
1. Development of a true scientific approach to management replacing the old rule
of thumb method, which would enable managers, among other things, to determine
the best method of performing each task;
2. Scientific selection and placement of workers so that each worker could be
assigned the task for which he is best suited;
3. Scientific training and development of workers so as to achieve the highest level of
efficiency; and
4. Close co-operation between management and labour to ensure that work is
carried out in accordance with the scientific principles which are developed.

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A number of techniques like time study, motion study, standardisation of equipment
and working conditions, and differential piece rate of wages were also developed to
facilitate scientific management.
Notes
10.8GENERAL PRINCIPLES OF MANAGEMENT
Scientific management was primarily concerned with increasing the efficiency of
individual workers at the shop floor. It did not give adequate attention to role of
managers and their functions. However, around the same time Henry Foyal, Director of a
coal mining company in France made a systematic analysis of the process of
management. He strongly felt that managers should be guided by certain principles,
and evolved 14 general principles of management which are still considered
important in management. These are:
1. Division of Work: This principle suggests that work should be assigned to a
person for which he is best suited. Work should be divided into compact jobs to be
assigned to individuals. This facilitates specialisation and improves efficiency.
2. Authority and Responsibility: Responsibility means the work assigned to any
person, and authority means rights that are given to him to manage people and things
to ensure performance. In other words, authority should go hand in hand with the
responsibility for effective results.
3. Discipline: This principle emphasises that subordinates should respect their
superiors and obey their orders. On the other hand, superiors’ behaviour should
be such that they make subordinates obedient. If such discipline is observed, there will
be no problem of industrial disputes.
4. Unity of Command: Asubordinate should work under the supervision of one
superior only from whom he gets instructions and to whom he is accountable. It
avoids confusion in authority and instructions.
5. Unity of Direction: Each group of activities having the same objective must
have one head and one plan of action. Otherwise, there may be wastage, over
expenditure and useless rivalry among the managers.
6. Subordination of Individual Interest to General Interest: While taking any
decision, the collective good and collective interest of the organisation as a whole
should be preferred to individual interests. The individual’s interest should be
subordinated to the overall interest of the organisation. This ensures welfare of
the organisation as well as its individual members.
7. Remuneration: Management should try to give fair wages to the employees so as
to ensure reasonable satisfaction of workers and productivity for the
organisation.
8. Centralisation: When a single person controls the affairs of an organisation, it is
said to be complete centralisation. In small concerns, a single manager can

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su d among a
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ea
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number of persons to facilitate operational decision making at various levels. Fayol’s
opinion was that there should be a proper balance between centralisation and
delegation of authority in an organisation.
9. Scalar Chain: This is the chain of authority relationship from the highest to the Notes
lowest ranks. This implies that subordinates report to their immediate supervisors
who, in turn, report directly to their own boss. The order of this chain should be
maintained when some instructions are to be passed on or enquiries are to be
made.
10. Order: Placement of men and materials should be properly made. Proper
space should be made available where materials can be kept safely. Each man
should be provided the work for which he is best suited.
11. Equity: This principle requires the managers to be kind and just to workers.
This promotes a friendly atmosphere between superiors and subordinates and
motivates them to perform their duties efficiently.
12. Stability of Tenure: Employees should be provided stability and continuity of
their tenure of employment. There should not be frequent termination of
employees. This could be achieved through attractive remuneration and
honourable treatment of personnel.
13. Initiative: This implies encouraging initiative among its personnel to chalking out
and execution of a plan to achieve the desired results.
14. Esprit de Corps: These French words mean team spirit. Managers should infuse
the spirit of team work and cooperation among the employees. It helps in
developing an atmosphere of mutual trust and a sense of unity.
Fayol made it clear that these principles can be applied to most organisations, but these are
not absolute principles. Organisations are at liberty to adopt those which suit them or
to delete a few according to their needs.

INTEXT QUESTIONS 10D

1. What is meant by ‘unity of direction’?

2. From the following identify the general principles of management that each
sentences implies.
(a) A person should receive order from one person only.
(b) Team spirit should be encouraged.
(c) Managers should be kind and just to workers.
(d) Instructions should be passed through a well defined path only.
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10.9 WHAT YOU HAVE LEARNT

 Management is a significant aspect of our day-to-day life. In a business
Notes organisation, management helps in better utilisation of inputs like money, raw
materials, machines and men and this help in achieving better outputs.
 Management is an intangible, continues goal directed, universal activity. It deals
with people, hence called a social process. No best way of managing exists.
Management is always situational.
 Management helps in achieving goals with efficiency. It ensures both stability
and growth keeping in touch with change in the environment.
 Management is an art, science as well as profession.
 Management can be divided into three levels
- Top level management - Middle level management
- Lower level management
 In every organisation managers perform six important functions
- Planning - Directing - Organising
- Controlling - Staffing - Coordinating
Henry Fayol has listed fourteen principles of management, There
are
- Division of work - Authority and Responsibility
- Discipline - Unity of command
- Unity of Direction - Subordination of individual interest to general interest
- Remuneration - Centralisation
- Scalar Chain - Order
- Equity - Stability of Tenure
- Initiative - Esprit de Corps

10.10 KEY TERMS

Controlling Initiative Scalar chain
Co-ordinating Organising Unity of
command
Directing Planning Unity of direction
Equity Staffing
Esprit de corps Scientific management

10.11TERMINAL QUESTIONS
Very Short Answer Type Questions
1. Define the term ‘Management’.
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2. List different levels of management.
3. State the meaning of Esprit de Corps.
4. What is meant by subordination of individual interest to general interest?
5. Define the term ‘Equity’ as a principle of management. Notes
Short Answer Type Questions
6. Mention the different characteristics of management.
7. Explain the meaning of ‘management as a discipline’.
8. “Planning is looking forward; whereas controlling is looking back”. Explain
this statement.
9. Can management be treated as a profession? Give reasons in support of your
answer.
10. What is meant by scientific management?
Long Answer Type Questions
11. Describe the importance of management.
12. State the various functions of management.
13. State the fourteen principles of management given by Henry Fayol.
14. Explain any three characteristics of management.
15. Explain management as a discipline and as a group.

10.12 ANSWERS TO INTEXT QUESTIONS

10A
2. (b) INTANGIBLE (d) SITUATIONAL (c) SOCIAL (e) CONTINUOUS
10B
1. Art: (b), (d) Science: (a), (c) Profession: (e)
2. (a) - (iii) (b) - (iv) (c) - (i) (d) - (ii)
10C
1. (A) - (b) - (iii) (B) - (a) - (i) (C) - (c) - (ii)
2. (a) Planning (b) Directing (c) Controlling
(d) Coordination (e) Staffing
10D
2. (a) Unity of command (b) Esprit of corps (c) Discipline
(d) Equity (e) Scalar Chain

DO AND LEARN
1. Visit a nearby organisation. Make a list of all the people working there and
categorise on the basis of which level of management they belong to.
206 Senior Secondary
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Business Management
2. Suppose your mother is the head of your family. List all the activities she does
in her daily life. Put these task into categorise of different functions of
management.

Notes
ROLE PLAY
Anubhav has just finished his Sr. Secondary Course from NIOS. His father, a
businessman is happy that now his son will help him in his business. But, to his
displeasure Anubhav does not want to join the business now. He first wants to do
BBA (Bachelor of Business Administration) and then join his father in business.
Father : Anubhav, what is the need for BBA degree? Eventually you are going to
join my business. Then why waste two precious years in studying for a
management degree. I didn’t do any management course still I am doing
fine.
Anubhav : Papa, You started this business thirty years ago. Business environment
was comparatively stable. By trial and error and after many ups and
downs you have reached here. But in today’s world of globalisation,
changing technology and communication etc., one must learn to apply
management principles. Very soon we may survive but not able to
compete.
Father : Means?
Anubhav : In today’s changing world with declining resources, management helps us
in achieving our targets more effectively and efficiently.
Father : I have been managing.
Anubhav : But we may not be able to compete effectively. Anubhav explained in
details the significance of management to his father.
(Choose a role for yourself and the other for your friend and continue the conversation.)

Chapter at a Glance

10.1 Meaning of Management

10.2 Characteristics of Management
10.3 Importance of Management
10.4 Nature of Management
10.5 Levels of Management
10.6 Functions of Management
10.7 Concept of Scientific Management
10.8 General Principles of Management

Business Studies 207

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Business Management

206 Senior Secondary