PRINCIPLES OF MANAGEMENT (IMPORTANCE AND FEATURES)

 

                         PRINCIPLES OF MANAGEMENT
 

 

 

 

Meaning -  
·        Management is a process of getting a work done efficiently and effectively.

 

·        Principles of management are the general rules, opinions, ways which helps in decision making , action taking and problem solving easy ,

 

So that, a manager can achieves the organizational goal efficiently and effectively.

 

 

                                                Features
 

NOTE:  I will only provide four features which will include all other features.

                                            (NO NEED TO WORRY)

 

 

 

 

 

1.     FORMATION:  The principles of management have been evolved from repeated experimentation and observation by practitioner after devoting a long period of time.

 

Practitioners are those renowned business professionals who have already applied these principles of management   for the smooth functioning of organization as well as society.

 

 

2.     PERVASIVE or UNIVERSAL or GENERAL or COMMON APPLICABILITY:
 

[Pervasive or Universal or General or common applicability meaning of all the terms are same i.e.  It includes everything, everyone and is required everywhere (both inside as well as outside the organization or firms).]

 

The principles of management can be applied anywhere and in any type of organization irrespective of size and nature of organization.

 

 

3.     TAILOR MADE: 

Tailor made means to modify things easily as per situation or fashion unlike ready made things may not be modified.

 

Unlike principles of science they are flexible

 

Means principles of management can be modified and have to modify as per demand and situation of dynamic nature of humans and business environment.

 

 

4.     CAUSE AND EFFECT RELATIONSHIP:

 

Here Cause and effect relationship means principles of management every time study 

§  cause of prevailing situation

§   Effect of cause and action on prevailing situation.

 

Though prediction is not so accurate because the principles of     management are ALWAYS APPLIED ON HUMANS and their nature is dynamic (which keeps on changing).

 In short, it helps in avoiding future issues.

5.     BASED ON HUMAN BEHAVIOR:

 

All the principles of management are always applied on humans.

Example:

§   Principle of Division of work.

§   Principle of Discipline.

§  Principle of harmony and discord.

 Human behavior is unpredictable that’s why they are required to be modified as needs of situation, nature of humans and business environment because their nature is dynamic (keeps on changing).

 

 

 

 

1.     BETTER UNDERSTANDING AND IMPROVES KNOWLEDGE:

 

§  This factor says that principles of management increases knowledge about managerial skills, which leads in efficient and effective management.

 

§   This is so because these principles of management have been developed after repeated practice, experiment and observation.

§  Because it has been developed by renowned business professionals and leads to brain storming at the time of modification of principles.

 

2.     SCIENTIFIC  DECISION:

 

·        Scientific decision means making any decision after deep examination and realizing the logic behind it so that it can be justified.

 

·        It does not include hit and trial method.

 

·        CONCLUSION:  using principles of management leads in scientific decision making as it deeply studies cause and effect relationship.

 

3.     OPTIMUM UTILIZATION OF RESOURCES:

 

 

·        Optimum means Maximum.

·        As we know improved knowledge and scientific decision are important outcomes of principles of management.

 

These factors also help in minimizing cost of operation for example:

BY USING STABILITY OF PERSONNEL when firms are in need of employees, we save time and money.

 

4.     FULFILLING SOCIAL RESPONSIBILITY:

 

·        Now days, social satisfaction is mandatory for any type of business, for achieving money motive.

·         Principles of management are a helpful source for achieving social motive of the firm.

 

·        Like principle of equity, principle of harmony not discord.

 

·        HARMONY and EQUITY maintains and increases the goodwill in the organization.

 

 

 

 

 

 

 

BUSINESS STUDIES CHAPTER-1 FOR CLASS 11 PART -2

 

 

 

                                                                                                                                                                        CLASSIFICATION OF BUSINESS ACTIVITIES

 

 

Business activities on the basis of functions can be classified into two parts:

•         Industry
•        Commerce

 

INDUSTRY: It is a function of business activity which involves production, processing and provides finished goods i.e. the consumer goods or the industrial goods only.

 

• Extractive industry deals with extraction of natural resources first time, like mining of coal.
•  Genetic industry deals with breeding of fishes, bees etc.
• Manufacturing industry deals with changing of semi-finished goods of primary industry into finished goods.
• Constructive industry deals with construction of buildings, dams etc.
• Tertiary industry helps only by providing services to PRIMARY AND SECONDARY INDUSTRIES.

 

COMMERCE:  This function of business activity only helps in the distribution of finished goods produced by industries to the ultimate consumers. In business activities there a number of hindrances by TRADE, which are solved through the help of commerce.

 

                               

                                               

·       Trade refers to the way through which exchange of consumer goods from manufacturer to consumer. It has further two divisions i.e.

·       Internal trade (with the geographical boundaries)

 

a.    Wholesale trade –when goods are purchased in large quantity and sold in large quantity.

b.    Retail trade – when goods are purchased and sold in small quantity.

 

·       External trade (outside the geographical boundaries)

 

a.    Import-purchase of goods from other country for consumption.

b.    Export-sales of goods to other countries.

c.     Entrepot- purchase of goods from other countries for the purpose of resale.

 

 

 

AIDS TO TRADE: are services that help in the success of trade of goods. It removes various hindrances, like

Hindrance of gap - removed by warehouse

Hindrance of place – removed by transportation

Hindrance of people – removed by trade

Hindrance of knowledge – by advertisement

Hindrance of money – by banking

 

 BUSINESS RISK: It is the uncertainty of business of getting loss in the future course. It cannot be eliminated but it can be reduced.

 

 

 

 

·       INSURABLE risk is that risk in which loss can be recovered.

·       NON-INSURABLE risk is that risk in which losses cannot be recovered.

·       SPECULATIVE risk is that in which there are changes of both happening i.e. loss as well as gain.

·       PURE risk is that risk in which if something occurs, it will be  loss only .

class-12 (introduction to management) chapter-1

 

BUSINESS NOTES

 

 

Business studies chapter-1 for class 11

          Business studies (class-11)   chapter-1

Topics included:

• Human Activities
• Features / Characteristic of business
• Objective of business
• Importance of profit in business
• Business activities 

                                        

          

                                          HUMAN ACTIVITIES

  1.ECONOMIC ACTIVITIES                         2. NON- ECONOMIC                                                                                                   ACTIVITIES

                             

Serial No.	Point of basis	BUSINESS	PROFESSION	EMPLOYMENT
1.	Meaning	Relates economic activities and involves sales distribution of goods and services, purchase etc.	Relates to activity which requires special qualifications and skills to do.	When a person work for some another person  and is remunerated(gets salary) in return
2.	Objective	Main objective is to earn profit	Main objective is to provide services	Main objectives is to earn  income by satisfying the employer
3.	In return	Gets profit	Gets  fees	No risk
4.	Level of risk	High risk	Little risk	No risk
5.	Commencement (starting business)	Can be started anytime when decision is taken.	Can be started only when a person have legal degree or qualification.	Can be started when Agreement is signed by a person.
6.	Investment	High investment	Little investment	No investment
7.	Continuity	Can carry on after the death of owner	Cannot carry on after the death of professional person.	Cannot carry on if not mentioned in agreement.

 

                       

Point  of  basis	ECONOMIC ACTIVITIES	NON- ECONOMIC ACTIVITIES
meaning	When a person work to earn money is economic activity.	When a person work to provide psychological satisfaction.
Types	Three types- business, profession, employment.	No types
example	Ex. Producer sales its product, doctor takes fees for the treatment etc.	Ex.  Going to temples ,helping our elders etc.

                          
                               
                     
                                


(Features of business)

·       AN ECONOMIC ACTIVITY:

 According to this feature business is an economic activity    because its main motive is to earn profit.

·       ARRANGEMENT OF GOOD AND SERVICES: Generally most of the firms produces or arranges goods and services (as raw material) to convert them into finished goods.

·       EXCHANGE OF GOODS AND SERVICES:  According to this characteristic of business when goods and services are exchanged in return of money then only that event will be known as business.

·       EXCHANGE OF GOODS AND SERVICES ON REGULAR BASIS:

This feature unfolds that when goods and are exchanged on regular basis then that event will be considered as business.

·        PROFIT EARNING:

 This feature is one of the most important features which state that the main motive of business is to earn profit not to provide mental satisfaction.

·       UNCERTAIN RISK:

As we all know that our future is uncertain that’s why there are always some chances for the occurrence of risk. Risk from the business cannot be eliminated but its level can be reduced.

       


  

OBJECTIVES OF BUSINESS

ü ECONOMIC OBJECTIVE:    According to this objective business should earn profit in order to overcome its cost of production for survival and to grow in the competitive market.

ü SOCIAL OBJECTIVE:  This objective deals with the welfare of the society. A business must fulfill some of the under listed  social work:

a)    Avoid pollution

b)    Provide employment

c)     Avoid unfair trade practices

d)    Provide good quality products at reasonable price

ü  INDIVIDUAL OBJECTIVE: This feature deals with the employees of the organisation. It must fulfill some important responsibilities towards employees and workers. Like :

a)  Providing competitive salary

b) Safe working conditions

c)  Benefits after retirement

d) Personal development

                  

                                                                                                                                   

                     // IMPORTANCE OF BUSINESS AND BUSINESS                                          ACTIVITIES WILL BE INCLUDED IN 2^ND PART

browse this link to reach to 2nd part-https://businessgyanm.blogspot.com/2020/10/business-studies-chapter-1-for-class-11.html