Topics
Nature and Significance of Management
- Case Study: Tata Group – Excellence in Management
- Concept of Management
- Characteristics of Management
- Objectives of Management
- Importance of Management
- Nature of Management
- Management as an Art
- Management as a Science
- Management as a Profession
- Levels of Management
- Functions of Management
- Coordination as an Essence of Management
- Management in the Twenty-First Century
Principles and Functions of Management
Business Finance and Marketing
Principles of Management
- Case Study: Toyota's Guiding Principles of Management
- Evolution of Management Principles
- Concept of Management Principles
- Nature of Management Principles
- Significance of Management Principles
- Taylor's Scientific Management Theory
- Principles of Scientific Management
- Techniques of Scientific Management> Functional Foremanship
- Techniques of Scientific Management> Standardisation and Simplification of Work
- Techniques of Scientific Management> Differential Piece Wage System
- Fayol’s Principles of Management
- Comparison of Taylor's and Fayol’s Principles.
Business Environment
- Case Study: Dharamveer Kamboj's Entrepreneurial Journey
- Concept of Business Environment
- Importance of Business Environment
- Dimensions of Business Environment
- External Factors> Economic Environment
- External Factors> Social Environment
- External Factors> Technological Environment
- External Factors> Political Environment
- External Factors> Legal Environment
- Economic Environment in India
- The 1991 Economic Crisis and Reforms
- Liberalisation
- Privatisation
- Globalisation
- Demonetisation
Planning
Organising
- Case Study: Wipro's Organisational Restructuring for Growth
- Organising
- Steps in the Process of Organising
- Importance of Organising
- Structure of Organisation
- Types of Organisation Structure > Functional Structure
- Types of Organisation Structure > Divisional Structure
- Comparison Between Functional Structure and Divisional Structure
- Formal Organisation
- Informal Organisation
- Comparison between Formal Organisation and Informal Organisation
- Concept of Delegation of Authority
- Concept of Decentralization
- Comparison Between Delegation and Decentralization
Staffing
- Case Study: Management of Human Resources at Infosys
- Staffing
- Staffing as Part of Human Resource Management
- Evolution of Human Resource Management
- Staffing Process
- Aspects of Staffing > Recruitment
- Sources of Recruitment
- Internal Sources
- External Sources
- Aspects of Staffing > Selection
- Aspects of Staffing > Training and Development
- Methods of Training
Directing
- Case Study: Leadership Development at Ford Motor Company
- Directing
- Principles of Directing
- Elements of Directing
- Supervision
- Motivation
- Motivation> Motivation Process
- Motivation> Importance of Motivation
- Motivation > Maslow’s Need Hierarchy Theory of Motivation
- Motivation> Financial and Non-Financial Incentives
- Leadership
- Communication
- Communication> Formal Communication
- Communication> Informal Communication or Grapevine
- Barriers to Communication
- Improving Communication Effectiveness
Controlling
Financial Management
- Case Study: Tata Steel–Corus Acquisition
- Concept of Business Finance
- Concept of Financial Management
- Financial Decisions> Investment Decision
- Financial Decisions> Financing Decision
- Financial Decisions> Dividend Decision
- Concept of Financial Planning
- Importance of Financial Planning
- Capital Structure
- Factors affecting the Choice of Capital Structure
- Fixed Capital
- Working Capital
Financial Markets
- Concept of Financial Market
- Money Market
- Capital Market
- Primary Market
- Secondary Market/Stock Exchange
- Distinction Between Capital Market and Money Market
- Distinction between Primary and Secondary Market
- Functions of Stock Exchange
- Trading Procedure of Stock Exchange
- Depository Services
- Demat System
- Securities and Exchange Board of India (SEBI)
Marketing Management
- Concept of Marketing
- Concept of Marketing Management
- Marketing vs. Selling
- Marketing Management Philosophies
- Functions of Marketing
- Concept of Marketing Mix
- Marketing Mix> Product
- Classification of Products> Consumer Products
- Classification of Products> Industrial Products
- Branding
- Packaging
- Labelling
- Marketing Mix> Pricing
- Marketing Mix> Physical Distribution
- Marketing Mix> Promotion
- Promotion Mix
- Advertising
- Personal Selling
- Sales Promotion
- Public Relations
- Distinction Between Advertising and Personal Selling
Marketing
- Concept of Financial Market
- Types of Financial Market
- Money Market
- Capital Market
- Primary Market
- Secondary Market/Stock Exchange
- Securities and Exchange Board of India (SEBI)
- Distinction Between Capital Market and Money Market
- National Stock Exchange of India (NSE)
- Overview of Marketing
Consumer Protection
- Case Study: Consumer Protection in Banking Services
- Concept of Consumer Protection
- Importance of Consumer Protection
- Consumer Protection Act, 2019
- Concept of Consumer
- Consumer Rights
- Responsibilities of Consumers
- Ways and Means of Consumer Protection
- Redressal Agencies Under The Consumer Protection Act
- Role of Consumer Organisations and NGO's
- Overview of Consumer Protection
Estimated time: 15 minutes
CBSE: Class 12
Introduction
- As organisations grow larger, it becomes difficult for top management to handle all decisions alone.
- Decentralisation refers to sharing decision-making authority with lower levels of the organisation.
- It ensures that employees closer to operations - who often have more relevant knowledge - can act quickly and independently.
CBSE: Class 12
Definition: Decentralisation
- Decentralisation refers to systematic effort to delegate to the lowest level all authority except that which can be exercised at central points. - Louis Allen
- Everything which goes to increase the importance of a subordinate’s role is decentralisation, everything that goes to reduce it is centralisation. - Henri Fayol
CBSE: Class 12
Centralisation vs Decentralisation
| Basis | Centralisation | Decentralisation |
|---|---|---|
| Authority | Concentrated at top | Delegated to lower levels |
| Subordinate role | Reduced | Increased |
| Typical in | Smaller organisations | Larger organisations |
CBSE: Class 12
Degree of Decentralisation
- Complete centralisation or decentralisation are both unrealistic extremes.
- Every organisation uses a mix of both.
- Larger organisations tend towards greater decentralisation.
- A balance must be maintained as organisations grow.
CBSE: Class 12
Importance
- Develops initiative: subordinates gain freedom to make decisions and rely on their own judgment.
- Develops managerial talent: independent assignments serve as practical training for future managers.
- Quick decision-making: decisions are made near the point of action, reducing delays and distortion.
- Relieves top management: frees senior leaders for major policy decisions.
- Facilitates growth: departmental autonomy drives productivity and better returns for expansion.
- Improves control: enables performance evaluation at each level using tools like Balanced Scorecards and MIS.
CBSE: Class 12
Caution
- Decentralisation must be applied carefully.
- Without checks, departments may act against overall organisational interests.
- Must be balanced with centralisation for major policy decisions.
CBSE: Class 12
Example: Johnson & Johnson
- J&J operates through ~190 smaller companies, each focused on specific products or geographies.
- Decentralised structure enables: proximity to customers, short communication lines, faster talent development.
- Result: combines large-firm advantages with small-firm agility.
CBSE: Class 12
Key Points: Concept of Decentralization
- Decentralisation = delegating authority to the lowest possible level.
- Neither full centralisation nor full decentralisation is practical - organisations always use a mix.
- Key benefit: faster decisions as authority lies near the point of action.
- Builds future managers through independent decision-making experience.
- Frees top management for strategic and policy work.
- Must be balanced carefully to protect overall organisational interests.
