business managment

2. Assignment
on
Business
Management
Name: Yamuna
Class: 2nd PUC
Course: HEBA
SECTION: A

3. Content
 Introduction
 Concept
 Characteristics Of Management
 Objectives Of Management
 Importance Of Management
 Functions Of Management
 Principles Of Management
 Principles Of Scientific Management
 Limitations
 Advantages

4. Introduction
What is BUSINESS MANAGEMENT?
Management in all business areas and organizational activities are the acts of getting
getting people together to accomplish desired goals and objectives efficiently and effectively.
effectively.

5. Concept
 Planning :
It is the starting point. In this phase, you create your business plan and how you are going to achieve
it. But it is not as easy as it sounds. You need to make a realistic assessment of your business goals
and chart out the detailed strategies (with full back up plans in case if those strategies fail) through
which your company can achieve its business objectives.
 Organizing:
It follows planning. Here you organize all your resources like employees, machines and finance into
a well-oiled unit. You need to get all these combination and synchronization right. Organizing helps
you to define “who is going to do what”. It set well demarcated job roles, organizational hierarchies
and streamlines co-ordination between them.
 Staffing:
It deals with acquiring, deploying, and retaining the right skilled workforce to get the business
results. The objective of staffing is to create the right positive impacts on the organization’s
effectiveness. Through staffing you get the right people at the right positions doing the right things.
In short, it’s about right delegation.

6.  Leading:
It is the most important function of the management process. Without motivated workforce, you can
never you achieve your business goals. Leading is all about how you can align employees’ tasks with
the overall organizational goals. Leading is how you can motivate, influence and inspire your
employees to give their best performance at work. Leading is how you can make your employees
participate willingly in the growth and development of the company.
 Controlling:
It is active and constant monitoring of people, process and other resources of your company. Here
you track the performance of all the resources of your company and ensure that they are on the right
track. Through controlling you can accurately evaluate whether all the resources of the company are
optimally utilized for desired business goals. And making corrections whenever and wherever there
are deviations, mistakes and loopholes.

7. Characteristics Of Management

8.  Universal:
All the organizations, whether it is profit-making or not, they require management, for managing their
activities. Hence it is universal in nature.
 Goal Oriented:
Every organization is set up with a predetermined objective and management helps in reaching those goals
timely, and smoothly.
 Continuous Process:
It is an ongoing process which tends to persist as long as the organization exists. It is required in every
sphere of the organization whether it is production, human resource, finance or marketing.
 Multi-dimensional:
Management is not confined to the administration of people only, but it also manages work, processes
and operations, which makes it a multi-disciplinary activity.
 Group:
An organization consists of various members who have different needs, expectations and beliefs. Every
person joins the organization with a different motive, but after becoming a part of the organization they
work for achieving the same goal. It requires supervision, teamwork and coordination, and in this way,
management comes into the picture. activity:
 Dynamic function:
An organization exists in a business environment that has various factors like social, political, legal,
technological and economic. A slight change in any of these factors will affect the organization’s
growth and performance. So, to overcome these changes management formulates strategies and
implements them.

10.  Organisational Objectives:
Management is responsible for setting and achieving objectives for the organisation. The main
objective of any organization should be to utilise human and material resources to the maximum
possible advantage, i.e., to fulfill the economic objectives of a business.
Survival: The basic objective of any business is survival. In order to survive, an organization
must earn enough revenues to cover costs.
Profit: Management has to ensure that the organization makes a profit. Profit provides a vital
incentive for the continued successful operation of the enterprise.
Growth: To remain in the industry, management must exploit fully the growth potential of the
organization. There are many indicators of growth such as sales volume, increase in the of
employee count, the number of products or the increase in capital investment
 Social Objectives
As a part of society, every organization whether it is business or non-business, has a social
obligation to fulfill which is to consistently create economic value for various constituents of
society. This includes:
Environmental friendly methods of production
Giving employment opportunities to the disadvantaged sections of society
Providing basic amenities like schools and crèches to employees

11.  Personal Objectives
Organization consists of different types of individual who joins it to satisfy their diverse
needs. The Individual may seek to satisfy needs such as:
Competitive salaries and perks
Peer recognition
personal growth and development
Management has to reconcile personal goals with organizational objectives for harmony in the
organization.
 Functional objectives
Functional objectives are those that relate to the specific functions of a business (e.g.
marketing, operations, HRM, finance) and which are designed to support the achievement of
corporate objectives.
A well-established business will divide its activities into several business functions.
These traditionally include areas such as:
Finance & administration
Marketing & sales
Production & operations
Human resource management

13.  Accomplishment of Organizational Goals
Management achieves the organizational goals by properly planning, organizing, staffing,
directing, controlling the activities and affairs of the organization.
The success of any business organizations depends on the extent of its effective and efficient
attainment of the predetermined objectives for goals by properly utilizing its human and
physical resources and facilities, and by copying well with its environmental elements, Such
as consumers, suppliers competitors, etc.
 To Run Large Scale Industries Smoothly
It is the time of large scale production nowadays. Large-scale production enjoys some certain
advantages over small-scale production but simultaneously faces some difficulties also.
The main difficulty faced by the enterprise having large-scale production is to coordinate the
activities and to manage the distribution of goods and services.
Thus, Business administration and management help the Enterprise in overcoming these
problems with the help of business administration and management, The business enterprise can
carry out the large-scale production easily and can manage for the proper distribution of goods
and services.
 Proper Running of Business Organization
Management successfully leads and motivates the workers to put their maximum efforts, skills,
ability, and experience in performing their duties and responsibilities.

14.  Designing of Good Organizational Structure
People in an enterprise must be properly organized into well constituted purposeful groups in
order to create co-operation and co-ordination in their thinking and activities.
 Creation of proper organization climate
The good working climate is the must for people to perform their task and responsibilities
enthusiastically and economically.
So, Managers create proper organizational climate by Establishing effective reward system,
grievance handling system, problem-solving system, etc.
 Creating and maintaining coordinating
If people in the organization perform their individual activities without caring for and knowing
about their linkage with other one another, such scattered activities and efforts shall result in
all futile exercise, Productivity and will be hampered. Results shall be dismal and disappointing
and objective shall remain unattained.

16.  Planning
Planning is future oriented and determines an organization’s direction. It is a rational and
systematic way of making decisions today that will affect the future of the company. It is a kind
of organized foresight as well as corrective hindsight. It involves the predicting of the future as
well as attempting to control the events. It involves the ability to foresee the effects of current
actions in the long run in the future.
“Planning is the continuous process of making present entrepreneurial decisions systematically
and with best possible knowledge of their futurity, organizing systematically the efforts needed to
carry out these decisions and measuring the results of these decisions against the expectations
through organized and systematic feedback”.
 Organizing
Organizing requires a formal structure of authority and the direction and flow of such authority through
which work subdivisions are defined, arranged and coordinated so that each part
relates to the other part in a united and coherent manner so as to attain the prescribed objectives.
According to Henry Fayol, “To organize a business is to provide it with everything useful or its
functioning i.e. raw material, tools, capital and personnel’s”.
 Staffing
Staffing is the function of hiring and retaining a suitable work-force for the enterprise both at managerial
as well as non-managerial levels. It involves the process of recruiting, training, developing,
compensating and evaluating employees, and maintaining this workforce with proper incentives and
motivations. Since the human element is the most vital factor in the process of management, it is
important to recruit the right personnel.
According to Kootz & O’Donell, “Managerial function of staffing involves manning the organization
structure through proper and effective selection, appraisal & development of personnel to fill the roles
designed in the structure”.

17.  Directing
The directing function is concerned with leadership, communication, motivation and supervision
so that the employees perform their activities in the most efficient manner possible, in order to
achieve the desired goals.
The leadership element involves issuing of instructions and guiding the subordinates about
procedures and methods.
The communication must be open both ways so that the information can be passed on to the
subordinates and the feedback received from them.
Motivation is very important, since highly motivated people show excellent performance with
less direction from superiors.
Supervising subordinates would lead to continuous progress reports as well as assure the
superiors that the directions are being properly carried out.
 Controlling
The function of control consists of those activities that are undertaken to ensure that the events do
not deviate from the per-arranged plans. The activities consist of establishing standards for work
performance, measuring performance and comparing it to these set standards and taking
corrective actions as and when needed, to correct any deviations.
According to Koontz & O’Donell, “Controlling is the measurement & correction of performance
activities of subordinates in order to make sure that the enterprise objectives and plans desired to
obtain them as being accomplished”.

19.  Principle 1: Co-create where you can
It’s hard to push back on the plan, if you’ve taken part in designing it. Bring in the end audience
in the design of what the change is, and how you will roll out the change. Beyond reducing
resistance to change, you may actually be designing a better change!
 Principle 2: Take the blinkers off
Make sure you know what else is going on that could get in the way of your change OR
could be an opportunity to leverage. Make the time to speak with other leaders and find out
what’s happening in their parts of the business. Generate a change radar that tells you what is
dropping at what point. Clear the runway for your change or juice it up.
 Principle 3: Resource for success
Bringing in something new is not the time to be stingy and expect your managers and
employees to wear multiple hats. Multi tasking during change means everything is
compromised. Create backfill for your employees, resource with dedicated change practitioners.
 Principle 4: Communicate what’s known, what’s not known and when you expect
to know more
To wait for perfect information is to create a vacuum, and that vacuum will surely be filled
with rumor and innuendo.

20.  Principle 5: Engagement wins every time
Change resistance is inversely proportional to the amount of stakeholder engagement that occurs.
You don’t need a strategy to deal with the blockers. You just need to engage with people who will
be impacted by the change. Engage with empathy, curiosity and frequently.
 Principle 6: Purpose matters.
Purpose is bigger than What’s In it for me? (WIIFM). Purpose is big, enduring, the reason why
people get out of bed to go to work enthusiastically. If you can align your change with purpose,
people get it. It makes sense. If it’s not aligned to the companies purpose, then forget about it.
 Principle 7: Change leadership is critical.
The fish rots from the head. If your leadership team is not fully and visibly committed you can’t
expect anyone else to make the changes. A fully committed leadership team will override poorly
designed change every time.

21. Principles of Scientific Management
 Taylor's four principles are as follows:
1)Replace working by "rule of thumb," or simple habit and common sense, and instead use the scientific
method to study work and determine the most efficient way to perform specific tasks.
2)Rather than simply assign workers to just any job, match workers to their jobs based on capability and
motivation, and train them to work at maximum efficiency.
3)Monitor worker performance, and provide instructions and supervision to ensure that they're using the
most efficient ways of working.
4)Allocate the work between managers and workers so that the managers spend their time planning and
training, allowing the workers to perform their tasks efficiently.

23.  Changing nature
The principles of management are not static; with the growth of science and technology, the
concepts of management are also changing. Old ideas are being eliminated and new ideas being
innovated, old products are being out and new products are being put on the market and now
likes and dislikes are developing every year. Similarly, modern and scientific management it
taking place of traditional management.
 Narrow concept
The narrow outlook of managers is also an important limitation of management. The habit of
getting work done by others develops dictatorship and authoritarian attitude among the
managers. Moreover work load is unnecessarily increased due to concentration of power in few
hands only.
 Flexibility in the principle
The techniques and polices of management are to be adjusted according to specific
circumstances. For example, one principle may be good for one enterprise, but it may not be
suitable for another. Similarly, a technique may be suitable for developed countries like England,
America, Japan and Germany, but it may be unworkable in developing countries like India,
Pakistan and Srilanka.
 Effect of External factors
Management is the process of decision-making. But it is influenced by external factors. It has to
operate within the economic fluctuations, policies of ruling party, interventional relations and
climate conditions.

24.  Changing social needs
Management is a social science. It studies social needs which are always subject to change
due to which the society becomes more extracting and demanding while the management
fails to fulfill the society’s changing needs. Therefore, management should change its
principles and policies as the society dictates.
 Related to human behavior
Management is related with human behavior and the same is changing. Different groups
and different men, even in the same group of people behave differently under different
circumstances. According to Oliver Sheldon, “Management principles may be waste paper,
where human beings are concerned.”
 Differences among organizational objectives, philosophies and exceptions
Although management is a universal concept and applicable to every kind of organization,
however, there exist differences among organizational objectives, philosophies and assumptions
between different organizations. Similarly, the nature, size business outlook etc. of every
business organization is not the same. Hence, a person with specific knowledge and experience
cannot manage all types of business organizations.
 Management is culture bound
The culture and social customs of every country influence management. Social, political and
religious environment put much influence on management. Man is the product of environment
and the environment is fast changing. A manager has to take decisions keeping in view the
cultural environment.

25.  Profit oriented concept
Another important limitation of management is that, it is actuated by self-interest and pecuniary
consideration. Managers give priority to their own interests, progress and profit as against the
interest, progress and profit of the enterprise.
 Actuated by self-interest and pecuniary considerations
Also another important limitation of management is that even today it considers maximization of
profits. On many occasions, it neglects the social interests while working for the achievement of
profit objective.

27.  Efficient Execution:
Control is an important pre-requisite for an effective and efficient implementation of the pre-
determined plans. It assists in determining variations, pinpointing the factors responsible for them and
taking remedial measures.
 Helps Delegation:
Control can be meaningful only when it is preceded by proper delegation of authority and duties. Thus,
it promotes delegation of authority to the employees at lower levels. In this way they develop a sense
of involvement in the working of an organization.
 Aid to Decentralization:
The modern trend of business organizations is towards decentralization which calls for a systematic
attempt for controlling. Under decentralization, the authority of decision making is dispersed
throughout the organization. Management must keep control in its hands to know whether the
authority is being used properly. Without adequate controls, decentralization cannot succeed.
 Assists Co-ordination:
The size of modern business enterprises is increasing. A huge amount of capital and large number of
people are employed in them. This creates the problem of adequate control as there are many divisions
producing and distributing different products. In order to co-ordinate their activities, an efficient
system of control is required.

28.  Simplifies Supervision:
Control simplifies supervision by pinpointing significant deviations. It keeps the employees
under check and brings discipline among them. A good system of control detects the weak points
very quickly. This helps the expansion of span of control at all levels.
 Aids to Efficiency:
Basically, control is concerned with ensuring that all the important factors in the enterprise move
along the right lines and at the right pace. This assists in promoting efficiency all rounds.
 Boosts Morale:
Control techniques help in finding the deviations and identifying the factors responsible for the
same. This boosts the morale of the employees because they know the work for which they are to
be held responsible.