Business studies

Lesson 1

Management

Meaning

Management is an art of getting things done through or with the help of others in order to achieve
specific organisational objectives

Definition

According to Robert L Trewelly and M Gene New Port management is a process of planning ,
organising , controlling and actuating an organisation in order to achieve coordinate of human and
material resources essential in the effective and efficient attainment of objective

Characteristics of management

1. Management is a goal oriented process

2. Management is all pervasive
3. Multidimensional
4. Management of operation
5. Management is a continuous process
6. Group activity
7. Dynamic function
8. Intangible force

Objectives of management

Organisational objectives

Social objectives

Personal objectives

Importance of management

a. It helps in achieving group goals

b. Helps in achieving personal objectives
c. Management increases efficiency
d. Management helps In dynamic organisation
e. Management helps in the development of society

Levels of management

a. Top management : Board of directors , chairman , ceo , managing director ,general manager,
chief finance officer ,vice president
b. Middle management : production manager, purchase manger , sales manager
c. Operational management: foreman, supervisors

Lesson 3

BUSINESS ENVIRONMENT
Meaning :it is the sum total of all individuals , institutions and other forces that are outside the
control of a business enterprise that may affect its performance

Features of business environment

1. Totality of external sources

2. Specific and general forces
3. Inter relatedness
4. Dynamic nature
5. Uncertainity
6. Complexity
7. Relativity

Importance of business environment

1. It enables the firm to identify the threats and getting the first mover advantage
2. It helps the firm to identify the threats and early warning signals
3. It helps in tapping up useful resources
4. It helps in coping up of rapid changes
5. It helps in planning and policy formulation
6. It helps in improving performance

Impact of government policy changes on business and industry

The policy of liberalisation , privatisation , and globalisation of government has made a significant
impact on working of enterprises in business and industry .The Indian corporate sector has come
face to face several challenges due to govt policy changes

1. Increase in competition
2. More demanding costumers
3. Rapidly changing environment
4. Rapidly changing technological environment
5. Necessity for change
6. Need for developing human resource
7. Market orientation
8. Loss of budgetary support to the public sector

Dimensions of business environment

1. Social environment
2. Technological environment
3. Political environment
4. Legal environment
5. Economic environment

Chapter 3

Principles of management

Scientific management

Father of scientific management is Fredrick Winslow Taylor

He was an engineer in steel manufacturing company in America

 1. Science, but not rule of thumb
2. Harmony, not discord
3. Cooperation ,not individualism
4. Development of each and every person to their greater efficiency and prosperity

Principles of general management

Father of general principles of management is Henry Fayol

1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Remuneration of employees
7. Subordination of individual interest and general interest
8. Centralisation and decentralisation
9. Scalar chainsta1.
10. Orders
11. Equity
12. Initiative
13. Stability of personnel
14. Esprit de corps

Chapter 4

Staffing

Staffing process

The man concern of the staffing function in the management process is the timely fulfilment of the
manpower requirement within an organisation .staffing process involves the following stages

1. Estimating man power requirement

2. Recruitment
3. Selection
4. Placement and orientation
5. Training and development
6. Performance appraisal
7. Promotion and carrier planning
8. Compensation

Selection process

Putting the right person for the right job .According to Dalt Yoter selection is the process of choosing
from among the candidates from within the organisation or from outside , the most suitable person
for the current position and for the future position

The important selection steps are

1. Preliminary screening
2. Selection test
3. Employment interview
 4. Reference and background checks
5. Selection decision
6. Medical examination
7. Job offer
8. Contract of employment

Sources of recruitment

Internal sources

1. Internal sources
a. Promotion
b. Transfer
2. External sources
a. Direct recruitment
b. Casual callers
c. Advertisement
d. Employee interview
e. Placement agencies and management
f. Consultants
g. Campus recruitment
h. Recommendation of employees
i. Labour contract
j. Advertisement on tv
k. Web publishing

Types of job training methods

Of the job training

Training is given within the office hours and within the office premises

A. Apprenticeship programs
B. Coaching
C. Internship training
D. Job rotation

On the job training

Training is given after the office hours and outside the office premises

a. Class room lecturers conferences

b. Films
c. Case study
d. Computer modelling
e. Vestibule training
f. Programmed instruction

Chapter 5

Consumer protection act 1987

Consumer protection refers to providing adequate legal protection to consumers against
unscrupulous exploitation like unfair trade practices such as black marketing , hoarding,
adulteration by sellers etc

Importance of consumer protection

In the view of consumer

1. Consumer ignorance
2. Unorganised costumers
3. Wide spread exploitation

In the view of business

1. Long term interest of business

2. Business uses societies resources
3. Social responsibility
4. Moral justification
5. Government intervention

Consumer rights

1. Right to safety
2. Right to be heard
3. Right to choice
4. Right to be informed
5. Right to seek redressal
6. Right to consumer education

Consumer responsibilities

1. Beware of various goods and services available in the market so that intelligent and wise
choice can be taken
2. Buy only standardised goods as they provide quality products
3. Read label carefully so has to have information about the price, net weight , manufacturing
and expiry date
4. Ask for a cash memo on purchase of a good or service
5. Be honest in your dealings
6. Ensure that you get a fair trade