This document summarizes key concepts related to business and management. It defines business as any enterprise that provides goods or services to satisfy human needs. Management is defined as the process of designing and maintaining an environment where people work together efficiently to achieve goals. The document outlines objectives of management at the organizational, social, and personal levels. It also discusses principles of scientific management by Taylor and Fayol's 14 principles of management, which include division of work, authority and responsibility, and unity of command. Decision-making is characterized as a rational, selective, and purposive process involving problem identification, alternative development and selection, and implementation review.

1. Prepared by-
- Krash Kumar Kushwaha

2. 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

3. 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.

4. “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

5. (i) Organisational Objectives: Business management is
responsible for setting and achieving objectives for the
organisation.
a. For Survival
b. For Profit:
c. For Growth
(ii) Social objectives :
It involves the creation of benefit for society.

6. (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

7. (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.

8. Principles
of

9. 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.

10. (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.

11. Fayol’s Principleof 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’

12. 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.

13. (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.

14. (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,”

15. 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

17. 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

18. Characteristics of Decision-Making:
1. Rational Thinking.
2. Process.
3. Selective:
4. Purposive:
5. Positive:
6. Commitment:
7. Evaluation

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