SS 3 Commerce First term Week 5

Topic: Introduction to Business Management

Content –

  • Meaning of Business Management
  •  Business Resources
  • Objectives of Business

Management: Management is the process of getting things done through other people. It is the act of controlling, organizing, directing, planning and formulating organization activities so as to achieve organizational objective.

Management is also the process of directing all the human and physical resources in an organization so as to achieve the objectives of the organization.

Management is the most important resources of a business as it determines the success or failure of any organization.

Management is also the process of using authority to organize, direct, and control subordinates in order to achieve the goals of the organization.

Business can be defined as all the activities involve in providing people with goods and services in exchange for money.

Functions of Management

  1. Planning: this is the process of setting goals or objectives, formulating policy and setting the procedures and means by which the set goals can be achieved.
    Benefits of Planning
    Planning ensures an organization to set up goals and targets
    Planning provides means and procedure by which the set goals can be achieved
    It leads organization to an acceptable decision
    It helps to forecast the activity of the organization over a particular period of time.
  2. Motivating: This is the way a leader get the subordinates to willingly carry out their responsibilities to the business by inspiring them through monetary and non monetary welfare. it serves as an encouragement.
  3. Controlling: controlling involves the process of ensuring that organizations objectives are actually being attained and correct lapses where necessary. Elements of controlling are: setting standards, measuring progress with standard, interpreting results and taking corrective measures.
  4. Organizing: Organizing is the process of bringing together and or arranging or arranging resources that are available to achieve the organizational objectives.
  5. Staffing: Staffing is the process of providing qualified managerial and skilled personnel for an enterprise. The stages involve in recruiting new staffs are: screening, application form, testing, reference check, oral interview and questioning.
  6. Communication: This is the means of transferring of information or ideas from one person to another.
  7. Business Resources: Business resources are the inputs combined together in activities involving the provision of goods and services for people with the aim of making profit. Business resources are; human, money, material and opportunities. All these can be categorized into two.
    Human resources: human resources are in form of labor it could be skilled or unskilled or both depending on the nature of the business operation. It is the part of business that plans, organizes, direct and control the operation of the business enterprise.
    Non-human resources: This involves money, materials and opportunities. Money include the all the working capital available for the financing of the business activities. Materials constitute tools, machineries equipment etc used in running of the business. Opportunities refer to the facilities within the environment which the business uses. They include water, roads, electricity etc.

 Objectives of Business

  1. The major objective of business is to make maximum profit.
  2. To make goods and services available to customers
  3. To contribute to the development of the country
  4. To protect the interest of workers
  5. To create employment opportunities for people
  6. To satisfy the consumers
  7. To prevent idleness and earn a living.

Test and Exercises

  1. The process of directing both human and non human resources to achieve an organizational goal is called (a) mismanagement (b) controlling (c) management (d) encouragement. ans (c)
  2. The main objective of any business is to make (a) profit (b) loss (c) interest (d) embezzle. ans (a)
  3. The resources that involve both skilled and unskilled labor is (a) non human resources (b) human resources (c) financial resources (d) consumer resources. ans(b)
  4. The function of management that help to set goals and set procedure for achieving the set goals is (a)controlling (b)organizing (c)staffing (d) planning.ans (d)
  5. One of these is not a function of management (a) planning (b) organizing (c)Believing (d) motivating.ans (c)