PART 1 -BUSINESS STUDIES DEFINITIONS (CLASS 12)CBSE

This worksheet gives you a few definitions and concepts in business studies PART 1 class 12 

1. Definition of Management

“Management is defined as the process of planning, organizing, actuating and controlling an organization’s operations in order to achieve coordination of the human and material resources essential in the effective and efficient attainment of objectives.” 

Robert L. Trewelly and M. Gene Newport

2. Principle

A principle is a statement which provides a guide to thought and action. Principle serves as the foundation for a system of belief or behavior or for a chain of reasoning.

3. Taylor’s Scientific Management

“Scientific management is the art of knowing exactly what you want your men to do and then seeing that they do it in the best and cheapest way.”

4. Fayol’s Principles of Management

Henry Fayol, a French Industrialist through his experience and study developed general theory of management. He suggested fourteen principles of management.

5. Meaning of Business Environment

Business environment refers to all the factors that are outside the control of the business enterprise but may equally affect the performance of the business. The social, political, economic, technological factors that operate outside a business forms a part of the business environment.

6. Privatisation

It refers to the shifting of the development responsibility from the public sector towards the private sector. Private sector are those where the share of government in the ownership of the enterprise is less than 51 percent.

7. Globalisation

Globalisation means to open ways for the various economies of the world to participate in the making of a global economy. This was done to initiate a free flow of imports and exports in and around the world. Globalisation enabled rapid advancement in technology as geographical boundaries were no longer a barrier. 

8. Demonetization

The term demonetisation means to invalidate all the currency notes of a particular denomination by the government of a country. The Indian Government demonetised the two largest denomination notes of Rs 500 and Rs 1000 on 8th November, 2016. The aim of this move was to curb corruption and illegal activities and stop hoarding of black money.

9. Definition—

“Planning is an intellectual process, conscious determination of course of action, the basing of decision on purpose, facts and considered estimates.”- Koontz O'Donnell

10. Organising--

refers to the process of the identification, classification and coordination of work to be performed by establishing reporting relationships between the people, setting up their responsibilities and authorities so as to collectively integrate the human efforts for the successful achievement of organisational objectives.

11. Introduction and Meaning: Staffing

The working of an organization depends upon the Human Resource of that organization. The growth highly depends upon introduction of efficient and quality staff. Staffing Is the next step after planning and selection of the organization structure. In this step the right people are placed in the right positions. This involves various steps like recruitment, selection, training, development, promotion, compensation and performance appraisal of the workforce. Therefore, Staffing is a management function that entails hiring candidates who are a good fit for the organization by evaluating their skills and knowledge and assigning them specific roles based on their skill set. It is involved in meeting an organization's human resource requirements. 

12. Communication

It is the process of exchange of information between two or more people with an aim to create common understanding.

13. Leadership

Leadership is the process of influencing the behaviour of people in such a way that they voluntarily work towards the achievement of organizational objectives.

14. Motivation

A stimulator used by managers to make people act in a desired way to achieve organizational goals. 

15. Directing

Directing is the process in which a superior provides instructions, guidance and counselling to its subordinate so as to motivate and lead them for the successful achievement of objectives.

16. Managerial control

“Managerial Control implies the measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans.”

Koontz and O'Donnell.