UPMSP Class 12 Business Studies key terms

The process of getting work done through other people so that organisational goals are achieved efficiently and effectively. It combines planning, organising, staffing, directing and controlling into one continuous activity.

Completing a task and actually reaching the stated goal on time. It is about doing the right task, even if the method used costs more effort or money than another option would.

Doing a task with the least possible waste of resources such as money, materials and time. It means getting more output from the same input, or the same output from fewer inputs.

The orderly synchronising of the separate efforts of individuals and departments so that they pull in the same direction. It is the thread that runs through every function of management rather than a separate function.

The view that management meets some features of a profession, such as a body of knowledge and a code of conduct, but lacks compulsory licensing and a single enforceable code, so it is not a full profession.

The feature of management meaning its basic principles and functions can be used in every type of organisation, whether business, government, hospital or club, though the way they are applied differs.

A general statement of guidance, derived from observation and experience, that managers can apply flexibly in practice. Principles are not rigid rules and are applied with judgement according to the situation.

Taylor's and Fayol's idea that a large task should be split into small specialised parts, each handled by a person suited to it, so that repetition builds skill and output rises.

Fayol's principle that an employee should receive orders from and be accountable to only one superior. Following it avoids confusion, conflicting instructions and shifting of responsibility.

Fayol's principle that all activities having the same objective should be grouped under one head and one plan. One head, one plan, one goal is the short way to remember it.

The unbroken line of authority running from the top manager to the lowest worker. Communication normally travels along this chain, though a gang plank may be used for speed in emergencies.

A shortcut in the chain of command that lets two employees at the same level communicate directly in an emergency, provided their superiors are informed afterwards.

Fayol's principle of building team spirit and harmony among employees, so that individual interests are set aside and people feel part of a united group.

Taylor's approach of applying systematic observation, measurement and standardisation to work so that productivity rises, using methods such as time study, motion study and differential piece wages.

A technique of measuring the time a qualified worker takes to complete a standard task under set conditions. The result is used to fix a fair standard time for the job.

The close observation of a worker's body movements while doing a job, aimed at removing unnecessary and wasteful movements so that the task is done faster and with less fatigue.

Taylor's wage plan in which workers who complete at least the standard output are paid a higher rate per unit, while those below standard get a lower rate, rewarding efficiency.

The sum of internal and external factors, such as customers, competitors, government policy and technology, that surround a firm and influence its decisions and performance.

The main groups of external factors a firm must watch: economic, social, technological, political and legal. Each dimension can create opportunities or pose threats to the business.

The removal or relaxation of government restrictions on business, such as licensing rules and limits on foreign investment, so that firms enjoy greater freedom to decide what to produce and where.

The transfer of ownership and control of public sector enterprises to private individuals or companies, usually through disinvestment, aimed at improving efficiency and reducing the government's burden.

The growing integration of economies so that goods, services, capital and technology move freely across national borders, exposing domestic firms to foreign competition and opening new markets.

A tool that identifies a firm's internal strengths and weaknesses and its external opportunities and threats, helping managers match the organisation's resources to the environment in which it operates.

Deciding in advance what to do, how to do it and when, so that goals are set and the best course of action is chosen before action begins. It is the primary function of management.

A comprehensive plan that sets the broad direction of an organisation over the long term, choosing the path and resource allocation needed to reach major objectives in an uncertain environment.

A general statement or guideline that channels thinking and decision-making in a stated direction, leaving managers free to decide the details of how it is applied in particular cases.

The management function of identifying and grouping work, defining authority and responsibility, and creating relationships so that people can work together effectively towards planned goals.

The process by which a superior assigns part of their work and the necessary authority to a subordinate, who then becomes accountable for the assigned task.

The right of a manager to give orders and expect them to be obeyed, flowing downward from the top of the organisation to lower levels through the chain of command.

The obligation of a subordinate to answer for the work assigned to them and to report results to the superior. It cannot be delegated away and always flows upward.

The number of subordinates a manager can effectively supervise at one time. A narrow span creates a tall structure with many levels; a wide span creates a flat structure.

The management function of finding the right people for the right jobs and keeping them, covering manpower planning, recruitment, selection, placement, training, appraisal and compensation.

The process of searching for and attracting a pool of prospective candidates so that the organisation can choose the most suitable people for its vacancies. It precedes selection.

The process of screening applicants and picking the most suitable one for a job, using tests, interviews and checks so that the chosen person fits the requirements of the post.

The management function of instructing, guiding, motivating and leading people so that they work willingly towards organisational goals. It includes supervision, motivation, leadership and communication.

The ability of a manager to influence the behaviour of others so that they willingly follow and contribute to group goals, without relying only on formal authority or fear of punishment.

The inner force that makes a person act towards a goal and keep working at it. Managers create it through rewards, recognition and a supportive work climate.

A theory arranging human needs in five levels, from physiological and safety needs up to social, esteem and self-actualisation needs, where a satisfied need stops acting as a motivator.

The management function of comparing actual performance with planned standards, finding deviations, and taking corrective action so that goals are achieved as planned.

A control principle saying that managers should attend only to significant deviations from standards and leave minor variations to subordinates, saving time and effort for important issues.

A control principle under which managers focus on the key areas where deviation would seriously affect results, rather than trying to check every activity equally.

The activity of planning, raising, investing and managing the funds of a business so that it earns adequate returns while keeping risk at an acceptable level.

The mix of debt and equity used to finance a firm's assets. Managers aim for a mix that raises returns for owners without making the firm too risky.

The funds needed to finance day-to-day operations, such as stock, wages and bills, calculated as current assets minus current liabilities and tied to the operating cycle.

A place, physical or electronic, where buyers and sellers of financial assets such as shares, debentures and bills meet to transfer funds from savers to those who need them.

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

The market, usually a stock exchange, where existing securities are bought and sold among investors. It gives liquidity and price discovery without giving the company new funds.

The set of controllable elements a firm combines to satisfy its target market, commonly described as the four Ps: product, price, place and promotion.

The stages a product passes through over time, usually introduction, growth, maturity and decline, each requiring different marketing, pricing and promotion decisions.

Giving a product a name, sign or symbol that identifies it and sets it apart from competitors, helping buyers recognise it and building loyalty and trust over time.

The set of laws, institutions and practices that safeguard buyers of goods and services against unfair trade practices, defective products and misleading claims by sellers.

Indian law that protects buyers by defining consumer rights, regulating misleading advertisements and product liability, and setting up a three-tier system for redressing consumer complaints.

The three-tier dispute body under Indian consumer law, with district, state and national commissions hearing complaints according to the value of the claim and the compensation sought.