Class 12 Business Studies Chapter 1, titled Nature and Significance of Management, introduces students to the world of management—how it works, why it’s important, and what makes a good manager. This chapter lays the foundation for all other topics in Business Studies. It covers the concept, features, importance, and objectives of management along with its classification as an art, science and profession. The chapter also introduces the levels of management and their respective functions in a business organisation.
I chose to write about this chapter because most students underestimate its importance. But if you get the core ideas of this chapter clearly, it becomes very easy to connect with future chapters like Planning, Organising and Controlling. Personally, I found that understanding real-life examples of management helped me remember the points better. Also, questions from this chapter often appear in case-study format in board exams, so learning this well will give you an advantage. Management is not just a subject; it’s something you’ll see around you everywhere—from your school to your home to large companies. So it’s better to learn it the right way from the start.
What is Management?
Management is the process of planning, organising, staffing, directing and controlling efforts to achieve organisational goals efficiently and effectively. It involves coordinating people and resources to reach desired results in minimum time and cost.
Features of Management
- Goal-Oriented: Management aims to achieve specific results.
- Pervasive: It is used in all types of organisations—business, government, schools.
- Multidimensional: Involves management of people, work and operations.
- Continuous Process: It is an ongoing function.
- Group Activity: It brings people together to work towards common objectives.
- Dynamic Function: It adjusts to changes in the environment.
Importance of Management
- Helps in achieving group goals
- Increases efficiency
- Creates a dynamic organisation
- Brings harmony in work
- Improves relationships between people
- Encourages innovation
Objectives of Management
- Organisational Objectives: Profit, growth, productivity
- Social Objectives: Fair wages, environment protection, community welfare
- Personal Objectives: Salary, job satisfaction, development of employees
Is Management an Art, Science or Profession?
This is a favourite question in board exams. Let’s break it down:
| Aspect | Explanation |
|---|---|
| Art | Involves creativity, personal skills and practice. Management requires creativity and experience. |
| Science | Has a systematic body of knowledge, principles and cause-effect relationship. |
| Profession | Requires specialised knowledge, formal training, and a code of conduct. Management is moving towards becoming a profession but is not fully there yet. |
Levels of Management
| Level | Examples | Key Role |
|---|---|---|
| Top Level | CEO, MD | Planning, making policies |
| Middle Level | HOD, Branch Manager | Implementing policies, coordinating teams |
| Lower Level | Supervisors, Foremen | Direct supervision of workers, maintaining quality |
Functions of Management
There are five major functions of management:
- Planning – Setting goals and deciding how to achieve them
- Organising – Assigning tasks, arranging resources
- Staffing – Recruiting and training employees
- Directing – Leading, motivating and communicating with employees
- Controlling – Monitoring performance and making corrections
These functions are interlinked and not done in a fixed order. A manager may be planning something while also directing a team on another task.
Download PDF – NCERT Class 12 Business Studies Chapter 1
You can download the full PDF of Chapter 1: Nature and Significance of Management
