Class 12 BST Part 1 – Complete Notes (Principles & Functions of Management)

Management

The process of getting things done effectively and efficiently through and with people.

Effectiveness

Doing the right things to achieve goals.

Efficiency

Using minimum resources to achieve goals.

Goal-oriented

Focused on achieving specified objectives.

Pervasive

Applicable in all areas and levels of an organization.

Multidimensional

Involving multiple aspects or elements.

Continuous

Ongoing and never-ending process.

Social activity

Involves interaction and cooperation among people.

Dynamic

Characterized by constant change and activity.

Intangible

Cannot be easily measured or quantified.

Economic Objectives of Management

Profit, growth, productivity.

Social Objectives of Management

Benefit society and adhere to ethical practices.

Human Objectives of Management

Employee satisfaction, motivation, and development.

Importance of Management

Achieves goals efficiently, reduces resource wastage, builds relationships, adapts to change.

Business Environment

All internal and external factors affecting business operations.

Internal Environment

Factors inside the organization such as employees and culture.

External Environment

Outside factors impacting the organization.

Micro / Operating Environment

Includes customers, suppliers, and competitors.

Macro / General Environment

Includes economic, social, political, technological, legal, and ecological factors.

Planning

Deciding in advance what to do and how to do it.

Goal-oriented Planning

Planning focused on achieving specific objectives.

Steps in Planning

1. Setting objectives 2. Developing premises 3. Identifying alternatives 4. Evaluating alternatives 5. Selecting the best alternative 6. Implementing the plan 7. Follow-up and control.

Types of Planning

Strategic, Tactical, Operational, Contingency.

Organising

Arranging resources and tasks to achieve objectives.

Steps in Organising

1. Identification and division of work 2. Departmentalization 3. Assignment of duties 4. Establishing authority relationships 5. Providing coordination mechanism.

Staffing

Recruiting, selecting, training, and developing employees.

Steps in Staffing

Manpower planning, recruitment, selection, placement, training, promotion, career planning.

Directing

Guiding, leading, and motivating employees to achieve goals.

Controlling

Measuring performance, comparing with standards, and correcting deviations.

Functions of Management

Planning, Organising, Staffing, Directing, Controlling (POSDC).

Fayol’s Principles Memory Aid

DAD’S SUPER ICE TES.