Friday 10 June 2016

CLASS 12 BUSINESS STUDIES NOTES/ NATURE AND SIGNIFICANCE OF MANAGEMENT HOTS (HIGHER ORDER THINKING QUESTIONS)-1

1. “Management is a set of functions directed towards the efficient and effective utilisation of resources in  the pursuit of organizational goals.” Explain.
Answer.
       Managers at all levels in an organisation, large or small, have to perform a series of functions, viz., planning,organizing, staffing, directing, controlling and coordinating in order to achieve the goals of the organisation. Planning refers to the process of anticipating future demands and conditions and accordingly laying down the organizational goals and suitable course of action. Organizing is the process of bringing together, the desired human, material and financial resources, designing organizational structure and creating authority responsibility relationships among employees at various levels. The managerial function of staffing relates to procurement,training and development of employees to meet the requirements of the organisation. The process of directing involves continuous guiding, supervising, leading and motivating of employees for execution of plans in the desired manner. Controlling ensures that the actual performance conforms to planned performance and timely corrective actions are taken if any deviations occur. Coordination is considered to be the key to management as it is inherent in all functions of management. Coordination is the deliberate effort of the managers to integrate and synchronize the work of various individuals, groups and departments in the pursuit of common goals. Underlying all these managerial functions are the two interrelated concepts of efficiency and effectiveness.According to Peter F Drucker, efficiency means, “doing things right” and effectiveness means, “doing the right thing”. Thus, efficient utilisation of resources means that the resources are being judiciously used and the output level is in conformation to the input level, whereas effectiveness refers to the ability and skill to determine appropriate goals, objectives and decisions which are vital for survival, growth and expansion of an organisation. Therefore, both managerial effectiveness and managerial efficiency go hand in hand as effectiveness without efficiency will only lead to increase in cost. Whereas efficiency without effectiveness will never lead to desired goals.

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