Assam ASSEB Higher Secondary Business Studies flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Definition of management

Management is the process of getting things done with the aim of achieving goals effectively and efficiently, through planning, organising, staffing, directing and controlling.

Effectiveness vs efficiency

Effectiveness is completing a task on time to achieve goals; efficiency is doing it at minimum cost and resources. Both are needed, but effectiveness comes first.

Levels of management

Top level sets objectives and policy, middle level interprets policy and coordinates departments, supervisory level oversees day-to-day operations of workers.

Coordination

Coordination is the integration of group efforts toward a common goal. It is the essence of management and runs through all functions and levels.

Unity of command

Fayol's principle that each subordinate should receive orders from only one superior, preventing confusion and conflicting instructions in the organisation.

Unity of direction

Each group of activities with the same objective must have one head and one plan, ensuring a single focus for related efforts.

Scalar chain

The formal line of authority from top to bottom. A gang plank allows same-level managers to communicate directly in emergencies, bypassing the chain.

Differential piece wage

Taylor's system where workers producing above the standard output receive a higher piece rate, and those below receive a lower rate, motivating higher productivity.

Functional foremanship

Taylor's technique of placing eight specialised foremen (four planning, four production) over workers, replacing the single supervisor for greater specialisation.

Micro environment

The immediate environment of a firm including suppliers, customers, competitors, market intermediaries, financiers and the public, which directly affects operations.

Macro environment

The general environment of political, economic, social, technological, legal and environmental forces that affect all firms in an economy.

Planning

Planning is deciding in advance what to do, how, when and by whom. It is the primary, pervasive and continuous function that bridges present and desired future.

Planning premises

Assumptions about the future environment in which plans are to be executed, such as forecasts of demand, technology, costs and government policy.

Strategy vs policy

A strategy is a comprehensive plan to achieve objectives in a competitive environment; a policy is a general guideline channelling decisions toward objectives.

Delegation

The transfer of authority by a superior to a subordinate to carry out specific tasks, along with responsibility; accountability to the superior remains.

Decentralisation

The systematic dispersal of decision-making authority to lower levels throughout the organisation; it is an extension of delegation and relieves top management.

Span of control

The number of subordinates a manager can effectively supervise; a narrow span produces a tall structure and a wide span produces a flat one.

Recruitment vs selection

Recruitment is the positive process of attracting candidates; selection is the negative process of screening and rejecting unsuitable applicants to choose the best.

Training vs development

Training is job-oriented and short-term, improving skills for a specific role; development is career-oriented and long-term, building overall competence.

Job specification

Part of job analysis that states the qualifications, skills, experience and personal attributes a person must possess to perform a given job.

Maslow's hierarchy

A motivation theory arranging needs as physiological, safety, social, esteem and self-actualisation, where lower-level needs generally must be met first.

Leadership styles

Autocratic leaders centralise decision-making; democratic leaders involve subordinates; laissez-faire leaders give full freedom to the group.

Communication process

The flow of a message from sender through encoding and a channel to receiver, who decodes it and returns feedback; noise can distort every stage.

Controlling

Controlling is measuring actual performance against standards, identifying deviations and taking corrective action to ensure goals are achieved.

Management by exception

A control principle in which only significant deviations from standards are reported to management, saving time and focusing attention on critical issues.

Critical point control

A control technique that concentrates on key result areas where deviations would cause the greatest harm, rather than monitoring every activity.

Working capital

The capital required for day-to-day operations, calculated as current assets minus current liabilities; it finances inventory, receivables and cash needs.

Trading on equity

Using debt in the capital structure to magnify return on equity when the return on investment exceeds the interest cost of debt.

Primary market

The market where new securities are issued for the first time by companies to raise capital, through public issue, rights issue or private placement.

SEBI

The Securities and Exchange Board of India is the statutory regulator of the securities market, with protective, regulatory and developmental functions.

Marketing mix

The combination of four Ps - product, price, place and promotion - that a firm blends to satisfy target customers and achieve marketing objectives.

Consumer rights

Entitlements under the Consumer Protection Act, 2019, including safety, information, choice, being heard, redressal and consumer education.