Chapter 1 of CBSE Class 12 Business Studies, Nature and Significance of Management, introduces the fundamental idea of management and its crucial role in achieving the goals of an organization. Management is all about planning, organizing, directing, and controlling resources in the most effective way to reach specific objectives. It’s both an art, relying on creativity and skill, and a science, based on proven principles and careful analysis.
The chapter highlights that management is important in every type of organization, whether it’s a business, a non-profit, or a government body. It focuses on achieving goals, aligning efforts across the organization, and is an ongoing process. Good management ensures that resources are used efficiently, helping organizations stay adaptable, foster innovation, and make smart, informed decisions.
Overview of Class 12 Business Studies Chapter 1 Nature and Significance of Management
The Chapter 1 in the CBSE Class 12 Business Studies Syllabus revolves around the various studies and theories regarding Reproduction in Organisms. Below, we have shared an overview of what students are to study in this chapter:
- Management Definition: The process of planning, organizing, directing, and controlling resources to achieve specific objectives efficiently.
- Nature of Management: A combination of art (creativity and skill) and science (systematic principles and research).
- Universality: Essential in all types of organizations, including businesses, non-profits, and government bodies.
- Goal-Oriented: Focuses on achieving organizational objectives through coordinated efforts.
- Continuous Process: Management is ongoing and dynamic.
- Significance: Ensures efficient resource use, adaptability to change, innovation, and informed decision-making for organizational success.
NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management
To help students complete their preparations for the final examination of the Biology subject in class 12th we have added the NCERT Solutions for Class 12 Business Studies Chapter 1 Nature and Significance of Management below:
Q1. Various input resources are required by management to complete a task effectively and efficiently. Name any two.
Sol. Money and people are two input resources that are required by management to complete a task effectively and efficiently. In any organization, management requires various input resources to execute tasks. Money is necessary for funding operations, purchasing resources, and paying employees, while personnel (human resources) are essential for performing tasks, decision-making, and ensuring smooth operations. These resources are fundamental to achieving goals effectively and efficiently.
Q2. Management is the process of getting things done.’ State the meaning of the term ‘Process’ used in this statement.
Sol. The term ‘process’ in this context refers to a series of interrelated activities that managers perform in order to achieve organizational objectives. These activities include planning (setting goals), organizing (arranging resources), staffing (recruiting employees), directing (guiding employees), and controlling (monitoring performance). These functions are continuous and interdependent, forming the core of management.
Q3. What is meant by ‘Efficiency’ in management?
Sol. Efficiency in management refers to how well resources (like time, money, and human effort) are used to achieve desired outcomes. It focuses on achieving results with minimal waste and cost-effectiveness while ensuring tasks are completed within the set time frame. Efficient management ensures that resources are not squandered, contributing to the overall success of the organization.
Q4. Explain, how management helps in the development of society.
Sol. Management plays a crucial role in societal development by creating value through the products and services it provides. By ensuring the production of high-quality goods and services, management contributes to economic growth. Moreover, management facilitates the creation of jobs, providing employment and offering fair compensation to employees, which enhances their quality of life and helps in overall social progress. This promotes the well-being of society and contributes to economic prosperity.
Q5. How does management help in achieving personal objectives? State.
Sol. Management aligns personal goals of employees with the organizational objectives by fostering a motivating environment. Effective leadership and guidance help employees achieve their personal aspirations (e.g., career growth, financial stability) while working towards the success of the organization.
Q6. What is meant by ‘Management’ of People?
Sol. Management of people refers to understanding and managing the individual needs, motivation, and behavior of employees. It involves treating employees as unique individuals, recognizing their diverse abilities, aspirations, and challenges, while also integrating them into team dynamics for the collective success of the organization. Effective people management balances individual needs with the goals of the organization to create a productive and harmonious work environment.
Q7. What is meant by ‘Management of Work’?
Sol. Management of work involves planning and organizing tasks to meet specific goals. It requires determining what work needs to be done, setting clear objectives, and allocating resources efficiently to ensure these goals are met. Additionally, it involves motivating employees to achieve these goals, tracking progress, and ensuring that tasks are completed on time and with the desired level of quality. The focus is on achieving high performance by managing work processes effectively.
Q8. Identify the basic characteristic of management involved in the statement— ‘The activities involved in managing an organisation are common to all organisations, whether economic, social or political’.
Sol. The characteristic of all-pervasiveness refers to the fact that management functions (planning, organizing, directing, and controlling) are applicable in all types of organizations, whether they are economic, social, or political in nature. This means that regardless of the sector or type of activity, effective management principles are crucial for achieving objectives and ensuring success, and they can be applied universally across different organizational contexts.
Q9. What is meant by ‘Management’? Explain its any three features that establish it as an Art.
Sol. Management is a process that converts resources into results. It is a set of practices that makes organisational goals a reality, effectively and efficiently. The important features of management that establish it as an art are:
(a) Existence of theoretical knowledge — Like art, the faculty of management has adequate theoretical knowledge. This is taught in business schools and practiced by managers. This theoretical knowledge, though based on observation and experience, needs constant updating.
(b) Individual Application – A manager applies the theoretical knowledge according to the given situation. He/she utilises creativity and initiative which makes the project a success.
(c) The Managerial skills – They improve with practice. Like the practitioners of different arts, managers improve their skills with experience and develop their own style of management. They apply their insight to adapt to the dynamic business environment. On comparing the features of art with management we find all the features of art are present in management, so we can call management as an art of getting the things done by others.
Q10. Explain the features of management that do not establish it as a profession.
Sol. The important features that do not establish management as a profession are:
(a) Though management has a body of knowledge based on observation of human behaviour, this knowledge is not universal and can only be applied with fair amount of modification.
(b) Most profession have restricted entry such as doctors have to study medicine and lawyers have to study law. However, any one can become a manager irrespective of his/her education. Though, these days people study in business schools and get a degree of MBA or a diploma, these are desirable but not essential to bbecoming a manager.
(c) Professional Association: Most professions are affiliated to professional association which regulate entry and issue certificate of practice. Even though there are various management associations, it is not mandatory for managers to join them. Also, there is no code of conduct that is binding on the practicing managers.
Q11. What is meant by ‘coordination’ in management?
Sol. Coordination ensures that all activities within an organization are harmonized and directed toward a common goal. It involves unifying and integrating individual and departmental efforts to achieve organizational objectives efficiently and effectively.
Q12. How does coordination integrate group efforts? State.
Sol. Coordination aligns the activities of various team members toward achieving shared goals. By providing a unified direction and resolving conflicts, coordination ensures that group efforts are not wasted and that everyone works in harmony to achieve organizational success.
Q13. ‘Coordination is needed at all levels of management and is the responsibility of all managers.’ Explain.
Sol. Yes, Coordination is indeed the essence of management. By Coordination, we mean a path through which the group functions are linked up. It binds the people of the organisation and their activities to ensure a smooth functioning of the work. It is that force which unites the working and efforts of the people of the organisation towards the common objective of the organisation. Coordination links the interrelated management functions. It is found at every level of management. It begins right from the stage of planning where goals and objectives are set for the organisation. Coordination is then required between the stage of planning and staffing so that right kind of people are hired for the execution of the plan. Next, the functions of directing and controlling must also be coordinated with each other so as to realise the achievement of desired goals. Hence, we see that coordination is intrinsic and imperative for management. It is the ‘essence’ of management.
Q14. Explain any three reasons, which clarify that management is gaining importance day by day.
Sol. The points which clarify that management is gaining importance day by day are explained as follows:
(i) Achievement of goals: Management helps in the achievement of goals such that the efforts of all the individuals are organised and directed towards the common goals of the organisation.
(ii) Increases efficiency: An increase in efficiency implies minimising the costs and increasing the productivity through the optimum utilisation of resources. As management helps in optimum utilisation of resources, it helps in increasing efficiency.
(iii) Creates dynamic organisation: Management helps an organisation to adapt the changes in external factors such as political, social, environmental and economic changes.
