Introduction to Management : Business Studies Class 12 Study Materials


(In this conversation son (Krishh) is asking her mother (why she wakes up early in the morning?)So his mother is explaining, how she manages home and what are the different type of activities are required on a regular basis?)

Krishh : Good Morning MOM!

Mother : Very Good morning Krishh.

Krishh : Mom, Why do you always wake up early in the morning?

Mother: Dear, I have to perform many tasks like: To cook breakfast, clean home, To water plants in the garden and many other tasks.

Krishh : How do you perform all these activities alone?

Mother :No Dear, It is not possible for me to perform all these activities alone in effective and efficient manner.

Son : Effective and Efficient manner?

Mother : Look Krishh, If I complete all my tasks (like preparation of food, cleaning of house, etc.) in the given time frame then only I will be effective.

If I complete all my tasks with minimum wastage and in the minimum time then I will be efficient.

Son :

Okay! So how do you manage so many things?

Mother : Dear, for that I have to think in advance what is to be done, what is to be done, who is to do it?


I have to divide whole tasks into small jobs. Then I have to find out how many persons are required to perform these tasks on time because no one can perform all the activities alone.


After deciding how many persons are required, I consult  your dad regarding selection of different housekeeping persons (Gardener, Cleaner and Maid)

After selecting these persons, I assign them duties e.g.

Maid     – cook food for breakfast, lunch and Dinner

Gardener – water and take care of plants regularly

Cleaner  – clean home on regular basis


Krishh : So Mom, after assigning all these works to these persons appointed. You can go for rest.

Mother : No, Dear It is not possible

Krishh : Why?

Mother : After assigning all the duties, I have to act like a leader because I have to guide, instruct and communicate these people that how these tasks should be performed.

It is necessary to oversee their work, inspire and motivate them at the time when they are performing their tasks.


Lastly when all these people perform their tasks, I check and evaluate their actual work done.

If work performed is not as per my expectations, then I suggest them how to make improvements.


Son : Mom, You are brilliant manager of our home

Explore More: Business Studies Class 12 Notes



  • It is the process of getting things done through others with the aim of achieving goals effectively and efficiently.
  • It is organization and coordination of different activities of the business in order to achieve organizational goals and objectives.
  • It is a distinct intellectual activity consisting of several functionslike Planning, Organising, Directing, Controlling and staffing.
  • The person who performs all these functions is known as Manager.


  • Planning:
  • It is the intellectual process of deciding in advance what is to be done, when, where, how and for whom it is to be done.
  • It bridges the gap from where we are to where we want to go.
  • It is the primary function of management without which no other function can be performed.
  • Organizing:
  • Planning is just to put some idea in writing, but to convert that idea into reality organizing is required.
  • It is the management function of assigning duties, grouping tasks, establishing reporting relationships and allocating resources required to carry out a specific plan.
  • Staffing:
  • It means finding the right man for the right job.
  • It includes activities like>Recruitment>Selection


    >Training  and Development of personnel

  • Directing:
  • It is said to be the process in which managers instruct, guide and overseeing the performance of the workers to achieve predetermined goals
  • Elements of Directing


  • Controlling:
  • It is a function of monitoring organization performance towards the achievement oforganization goals
  • It involves->Establishing standards of performance


    >Measuring actual performance


    >Comparing actual performance with standards


    >Taking corrective action for the deviation


Also Read: Understand Every bit of Business Studies


  • Effectiveness is about doing the right task, completing the assigned job on time, no matter whatever the cost.
  • And on the other hand, Efficiency is about doing the job in cost effective manner i.e. getting maximum output with minimum input
Parameters Effectiveness Efficiency
(1) Meaning It refers to the completion of work on time.


It refers to the completion of work correctively with minimum cost and maximum profit
(2) In simple words It simply means doing right things It simply means doing things rightly(i.e. in cheaper and faster manner)
(3) Objective To achieve end results on time Perform   ing task with least waste of time and effort(cost)
(4) Main Focus Time Cost

(5) Example


Mr. Ram (a salesman) achieved the target of 10000 units but not in the given time.

We can say that Ram is effective but not efficient

Mr. Rahim (a salesman) achieved the target of 20000 units (double of the target assigned) in a given time.

We can say that Rahim is efficient


1. Management is an art of……………
  1. doing various tasks assigned
  2. getting things done through others
  3. making profits
  4. Both (a) and (b)

Answer : b

2. Which of the following is not the function of management?
  1. Planning
  2. Directing
  3. Staffing
  4. Strategy

Answer : d

3. Effectiveness refers to
  1. Completion of work on time
  2. Completion of job in cost- effective manner
  3. Both a) and b)
  4. None of these

Answer : c

4. Which of the following is the primary function of Management?
  1. Directing
  2. Staffing
  3. Controlling
  4. Planning

Answer : d

5. Staffing does not include
  1. Recruitment
  2. Motivation
  3. Training of personnel
  4. None of the above

Answer : b

6. Which of the following statement is not true?
  1. Controlling monitors the performance of the organization.
  2. Planning is not the primary function
  3. Organizing function is required to put idea into reality
  4. None of these

Answer : b

Answer: b


Leave a Comment

Your Mobile number and Email id will not be published.



  1. Brilliant application 👌👌.