Revision: Principles and Functions of Management >> Nature and Significance of Management Business Studies Commerce (English Medium) Class 12 CBSE

A profession may be defined as an occupation backed by specialized knowledge and training, and to which entry is regulated by a representative body and duly recognized by society.

• Coordination is balancing and keeping together the team by ensuring suitable allocation of tasks to the various members and seeing that the tasks are performed with harmony among the members themselves. - E. F. L. Brech
• Coordination is the process whereby an executive develops an orderly pattern of group efforts among his subordinates and secures unity of action in the pursuit of common purpose. - McFarland
• Coordination is the orderly synchronising of efforts of subordinates to provide proper amount, timing and quality of execution so that their united efforts lead to the stated objectives, namely, the common purpose of the enterprise. - Theo Haimann

• Management is essential for all organisations, regardless of size or type.
• Managers perform interrelated functions — planning, organising, coordinating, and controlling.
• Top-level managers spend more time on planning and organising than lower-level managers.
• Tata Group illustrates management excellence through diversification, worker welfare, and environmental responsibility ($103.51bn market cap, ISO 14001).
• Namchi Designer Candles shows how management functions apply even in small, rural enterprises with a social mission.
• Both examples confirm that achieving organisational goals requires coordinated management effort at every level.

• Management is goal-oriented, directing all efforts towards achieving organisational objectives.
• It is universal (all pervasive) and is required in every type of organisation, regardless of size or sector.
• Management is multidimensional, involving the management of work, people and operations.
• It is a continuous process, with functions like planning, organising, staffing, directing and controlling performed continuously.
• Management is a group activity that coordinates individual efforts to achieve common goals and promotes teamwork.
• Management is dynamic and intangible—it adapts to changing environments, and its effectiveness is seen through organisational success rather than being physically visible.

• Management objectives arise from the basic purpose of business and must be achieved efficiently.
• Organisational objectives: survival, profit and growth for long-term success.
• Social objectives: benefit society through eco-friendly production, employment and community services.
• Personnel objectives: satisfy financial, social and growth needs of employees while maintaining organisational harmony.
• ITC’s E-Choupal shows how management objectives and social responsibility can be achieved together in rural India.

• Management helps in achieving common organisational goals.
• It increases efficiency by reducing wastage and improving productivity.
• It enables organisations to adapt to changing business environments.
• It supports employee growth and helps achieve personal objectives.
• It contributes to society through quality goods, services and employment.
• Effective management promotes overall organisational and economic development.

• Management is as old as civilisation and has existed since the time of ancient civilisations through organised activities.
• Early management practices were based on a set of rules and regulations developed from governmental and commercial experiences.
• The development of trade and commerce gradually led to the evolution of management principles and practices.
• Management has evolved into a dynamic subject with its own special characteristics, based on both managerial experience and theoretical knowledge.

• Art is the skillful application of knowledge to achieve desired results.
• Management requires personal skills, creativity and regular practice.
• Art is based on theoretical knowledge and personalised application.
• Managers apply management principles creatively according to different situations.
• Successful managers are distinguished by their effective application of management principles.

• Management uses organised, verifiable knowledge and principles, so it shows key features of science.
• Management and science share systematic knowledge, observation, cause–effect relationships, and universal principles.
• Management is a social and inexact science because it deals with human behaviour and qualitative outcomes.
• Management principles arise from experimentation, draw from many disciplines, and need situational modification.
• Management combines art (practice) and science (principles), and both work together for effective management.

• Management is an emerging profession with a systematic body of knowledge.
• It provides formal education and training through management institutions.
• Managers develop expertise through education and practical experience.
• Management lacks compulsory qualifications, statutory regulation and mandatory association membership.
• Management is a combination of art, science and profession.

• Levels of management divide human resources into parts based on size and needs of the organisation.
• Management functions operate within a hierarchy of authority‑responsibility relationships.
• Three main levels: top, middle, and supervisory/operational.
• Top management sets goals, strategies, and ensures survival and welfare.
• Middle management connects top and lower levels and executes plans and policies.
• Supervisory management directly controls workers and ensures quality, low wastage, and safety.

• Coordination synchronises departmental activities and binds all management functions.
• It integrates group efforts, ensures unity of action, is continuous, all pervasive, deliberate and the responsibility of every manager.
• It is the essence of management, like a thread through all functions; without coordination, organisational chaos results.
• Coordination is crucial due to organisational growth, functional differentiation and specialisation.
• The Dabbawallas example demonstrates practical excellence in coordination using a multi-step, low-technology, highly punctual system.

• Modern organisations operate in a global environment with blurred borders.
• Communication technology has created a “global village”.
• Global organisations must be managed with a global perspective.
• Global managers need hard skills (analysis, strategy, engineering, technology).
• Softer skills related to teams, organisations, and motivation are critical for global success.
• Effective global managers work productively in very different countries and cultures.
• The role of a global manager is now multi-faceted, combining technical, people, and cultural learning skills.