VIRTUAL TEACHING YOUTUBE CHANNEL

BUSINESS MANAGEMENT IMPORTANT QUESTIONS

NATURE AND FEATURES OF MANAGEMENT

• Management is goal oriented process
• Management is Pervasive
• Management is Multidimensional
• Management is a continuous process
• Management is a group activity
• Management is a dynamic function
• Intangible
FUNCTIONAL AREAS OF MANAGEMENT
• Production management
• Marketing management
• Financial management
• Personnel management
• Office management

LEVELS OF MANAGEMENT
Low-level managers : Supervisors, section leads, and foremen are examples of low-
level management titles. These managers focus on controlling and directing.

Low-level managers usually have the responsibility of:

✓ Assigning employees tasks;

✓ Guiding and supervising employees on day-to-day activities;
✓ Ensuring the quality and quantity of production;
✓ Making recommendations and suggestions; and
✓ Up channeling employee problems.
Middle-level managers : General managers, branch managers, and department
managers are all examples of middle-level managers. They are accountable to the
top management for their department’s function.

Middle-level managers devote more time to organizational and directional functions

than top-level managers. Their roles can be emphasized as:

✓ Executing organizational plans in conformance with the company’s policies

and the objectives of the top management;
✓ Defining and discussing information and policies from top management to
lower management; and most importantly
✓ Inspiring and providing guidance to low-level managers towards better
performance.

Top-level managers :

✓ the board of directors, president, vice-president, and CEO are all

examples of top-level managers.
✓ These managers are responsible for controlling and overseeing the entire
organization. They develop goals, strategic plans, company policies, and
make decisions on the direction of the business.

NATURE OF MANAGEMENT PRINCIPLES

✓ Universal : the principles of management are universal
✓ Dynamic : management principles are flexible
✓ Human nature : management principles are like human nature they are very
complex
✓ Careful application : they must be applied very carefully

GENERAL PRINCIPLES OF MANAGEMENT

✓ Division of labour : dividing the work among the various individuals
✓ Authority and responsibility : authority means giving order .
responsibility means obligation to perform the task
✓ Discipline : willingness in the part of employees to obey the rules
and procedures
✓ Unity of command : each worker shall have only one supervisor
✓ Unity of directions : there is only one plan of action for each
category of work
✓ Subordination of individual interest to general interest :
management gives more importance to interest of the organisation
✓ Remuneration : if employees are paid fair wages they will be
satisfied
✓ Centralisation : if the authority is retained by the higher
management it is centralisation
FUNCTIONS OF MANAGEMENT
Planning
Planning is the primary function of management . it include the determination of
objectives , forcasting and choice of options , budgeting etc
Organising
Organising is the process of establishing harmonious authority – responsibility
relationship among the members of the enterprise
Staffing
Staffing is the process of filling all position in the organisation with qualified
personnels
Directing
Directing is the executive function of management , it is concerned with execution of
plans and policies
Coordination
Coordination is the essence of management . it is the orderly arranging the efforts of
subordinates for achieving the goals of the organisation
Motivation
Motivation is a constructive force in management . a manager inspires the
subordinates to do what he wants to do through motivation
Control
Establishing the standards , measuring the performance , appraisal of performance ,
taking corrective actions

Nature of planning
✓ Planning is goal – oriented
✓ Planning is a primary function
✓ Planning is directed towards efficiency
✓ Planning requires flexibility
✓ Planning is related to objectives
✓ Planning is all – pervasive
✓ Planning is a continuous process
✓ Planning is forward – looking
✓ Planning involves choice
✓ Planning involves choice
✓ Planning is an integrated process

IMPORTANCE OF PLANNING
 o Focuses attention on objectives
o Reduces uncertainty
o Provides sense of direction
o Facilitates control
o Encourages innovation and creativity
o Improves motivation
o Improves competitive strength
o Helps in co-ordination
o Guides decision-making
o Provides a basis for decentralisation
o Provides efficiency and economy in operations

PLANNING PROCESS

Planning process involves the setting up of business objectives and

allocation of resources for achieving them.

STEPS IN PLANNING PROCESS

▪ Awareness of opportunities
▪ Establishment of objectives
▪ Establishment of planning assumption
▪ Developing alternative courses of action
▪ Evaluation of alternatives
▪ Selection of the best alternative
▪ Formulation of sub plans
▪ Execution of the plans
▪ Evaluation of the plans

Types of planning
Multi use plans : plans which are used repeatedly in similar situation .
Objectives : objectives are the aims or purpose for which an organisation is set up and
operated .
Strategies : strategies is a board of action for the use of resources to achieve the
objective of an organisation
Policies : policies are guides to action . they provide a board guidelines as to how the
objectives of a organisation are to be achieved
Procedures : it is the terms of steps to be followed in carrying out certain kinds of work
Rules : they are the simplest and most specific type of standing plans . they are used
for guiding what may or may not be done
Programmes : it is a single used plan because it is not used in the same form again
Budgets : a budget is a plan which states expected results of a given future period in
numerical terms
Schedules : a schedule is a time table of work
Project : any scheme for investing resources which can be analysed and evaluated as
an independent unit .
Methods : methods provide detailed and specific guidance for day to day action

DISTINCTION BETWEEN FORMAL AND INFORMAL

ORGANIZATION
DIFFERENCE BETWEEN LINE ORGANISATION AND
FUNCTIONAL ORGANISATION
DIFFERNCE BETWEEN DELEGATION AND
DECENTRALISATION
ACCOUNTABILITY
Accountability is the obligation to carry out responsibility and exercise
authority in terms of performance standards . once a subordinate is
assigned a duty and given the necessary authority to complete it he
became answerable for results
DIRECTION
Direction is the managerial function of guiding , overseeing and leading
people to the attainment of certain objectives .
Features of directing
✓ It is a managerial function
✓ It is a linking function as it links between planning , organising ,
staffing and controlling
✓ It is a pervasive function as it can be find in all levels of management
✓ It is a dynamic function
✓ It is a continuing function
Process of direction
 ✓ Issuing orders and instructions
✓ Supervision
✓ Communication
✓ Motivation
✓ Leadership
✓ Co ordination
FEATURES OF LEADERSHIP
✓ Leadership is the process of influence others
✓ Leadership is a working relationship between leader and followers
✓ Leadership is a goal oriented
✓ Leadership is a power relationship as a leader derives his power
from superior knowledge or experience
✓ A leader must have followers .
QUALITIES OF A LEADER
✓ Technical and general education
✓ Communication skill
✓ Mental and physical energy
✓ Ability to take decision
✓ Self confidence
✓ Managerial skills