Prepared by- - Krash Kumar Kushwaha

BUSINESS AND BUSINESS MANAGEMENT

Meaning :Means the state of being busy.

Definition :“Business is any enterprise which makes, distributes or provides any article or service which others member of community need and are able and willingly to pay for.” -Urwick and Hunt

BUSINESS

Characteristics of Business :

• 1.Sale,transfer or exchange for the satisfaction of human seeds.

• 2.Dealings in goods and services.• 3.Recurrence of transactions.• 4.Profit motive.• 5. Element of risk.

“Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.”

- Harold Koontz and Heinz Weihrich

“Management is defined as the process by which a cooperative group directs action toward common goal.”

Joseph massie

Objectives of Business Management

(i) Organisational Objectives: Business management is responsible for setting and achieving objectives for the organisation.

a. For Survivalb. For Profit:

c. For Growth(ii) Social objectives : It involves the creation of benefit for society.

(iii) Personal objectives: Organisations are made up of people who have different personalities, backgrounds, experiences and objectives. They all become part of the organisation to satisfy their diverse needs.

(iv) National Objectives :Keeping in view the national goal of establishing a democratic socialist society and achieving growth with stability and social justice

Importance of Business Management

(i) It helps achieving group goals.(ii) It increases efficiency.(iii) It creates a dynamic organisation.(iv) It helps in achieving personal objectives.(v) It helps in the development of society.

Principles of

Taylor’s Scientific Management :

• Fredrick Winslow Taylor –Founder of Scientific Management Movement

• LIFE TIME: March 20,1856 to March 21, 1915• PROFESSION: American mechanical engineer• EDUCATION: Degree in Mechanical Engineering from

Stevens Institute of Technology in 1883.

(i) Science not Rule of Thumb.

(ii) Harmony, Not Discord.

(iii) Cooperation, Not Individualism.

(iv) Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity.

Fayol’s Principle of Management

• Henri Fayol :• 1. Life Time: 1841 To 1925• 2. Profession: Mining Engineer and

Management Theorist (French national)• 3. Education: Graduated from Mining

Academy at St. Entinne. in 1880• He is also known as the ‘Father of General

Management’

The 14 principles of management given by him are:

(i) Division of Work: According to Fayol, “The intent of division of work is to produce more and better work for the same effort. Specialisation is the most efficient way to use

human effort.” (ii) Authority and Responsibility: According to Fayol,

“Authority is the right to give orders and obtain obedience, and responsibility is the corollary of authority.

(iii) Discipline: According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties.

(iv) Unity of Command: According to Fayol there should be one and only one boss for every individual employee.

(v) Unity of Direction: All the units of an organisation should be moving towards the same objectives through coordinated

and focussed efforts. (vi) Subordination of Individual Interest to General Interest: The interests of an organisation should take priority over the

interests of any one individual employee.

(vii) Remuneration of Employees: The overall pay and compensation should be fair to both employees and the organisation

(viii)Centralisation and Decentralisation: The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation.

(ix) Scalar Chain: According to Fayol, “Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the

subordinates.”

(x) Order: According to Fayol, “People and materials must be in suitable places at appropriate time for maximum

efficiency.”

(xi) Equity: Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible,”

Contd.....

• (xii) Stability of Personnel: “Employee turnover should be minimised to maintain organisational efficiency”,

• (xiii)Initative: Workers should be encouraged to develop and carry out their plans for improvements according to Fayol.

• (xiv) Espirit De Corps: Management should promote a team spirit of unity and harmony among employees

Decision making in Business:

Steps in decision making :

• Identification of problems• Analysis of problem• Developing the alternative solution• Evaluation of best alternative• Selection of best alternative: • Implementation of best alternative• Review of implementation

Characteristics of Decision-Making:

1. Rational Thinking.2. Process.3. Selective:4. Purposive:5. Positive:6. Commitment:7. Evaluation

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