KENDRIYA VIDYALAYA SANGATHAN

REGIONAL OFFICE GUWAHATI

के न्द्रीय विद्यालय संगठन

क्षेत्रीय कार्यालय गुवाहाटी

MIND MAP
BUSINESS STUDIES
2024-25
 OUR PATRON

Mrs. NIDHI PANDEY, IIS

Commissioner
Kendriya Vidyalaya Sangathan

Dr. P. Devakumar
Joint Commissioner (Acad)
Kendriya Vidyalaya Sangathan
 TEAM

Shri Chandra Shekhar Azad

Deputy Commissioner
KVS RO Guwahati

Shri Ram Kumar Panigrahi Shri Naresh Kumar Shri Randheer Singh
Assistant Commissioner Assistant Commissioner Assistant Commissioner
KVS RO Guwahati KVS RO Guwahati KVS RO Guwahati

Shri Amod Kumar - Principal

PM Shri KV North Lakhimpur
 CONTENT DEVELOPER TEAM
Mr. Manoj Kumar - PM Shri KV Missamari

Mr. Kush Srivastava - PM Shri KV Digaru

Mrs. Neelam Sharma - KV IIT Guwahati

Mr. Naba Kumar Deka - PM Shri KV Borjhar

Mr. Neeraj Gothwal - PM Shri KV No. 1 Tezpur

Mr. Mohan Upadhyay - PM Shri KV Narengi

Mr. Vijay Kumar Bohra - KV Lumding

Dr. Niraj Sarswat - KV Maligaon

Mr. Manoj Kumar Singh - PM Shri KV Khatkhati

Mrs. Chand Kishori - PM Shri KV No.1 AFS Jorhat

Ms. Manveer Bajpai - PM Shri KV Khanapara

Mr. Krishna Sahu - PM Shri KV Lokra

 KENDRIYA VIDYALAYA SANGATHAN,
GUWAHATI REGION
MIND MAP
NATURE AND SIGNIFICANCE OF MANAGEMENT

Meaning of Management
Management is the process of getting thing done with the aim of achieving goals efficiently
and effectively.
Features of Management
Management is an intangible force
Management is goal oriented process
Management is group activity
Management is all pervasive
Management is continuous process
Management is dynamic function
 1. **D**ivision of Work

2. **A**uthority and Responsibility

3. **D**iscipline

4. **U**nity of Command

5. **C**oordination (Unity of Direction)

6. **S**ubordination of Individual Interests

to the General Interest

7. **S**cientific Selection and Training of

Personnel (Remuneration)

8. **R**emuneration

9. **R**esponsibility (Scalar Chain / Chain

of Command)

10. **O**rder

11. **I**nitiative

12. **S**tability of Tenure of Personnel

13. **E**quity

14. **E**sprit de Corps (Unity and Harmony) 14 Principles of Management 

(Henri Fayol)
1. **Division of Work**: Specialization
increases productivity by allowing
employees to focus on specific tasks.

2. **Authority and Responsibility**:

Managers must have the authority to give
orders and bear responsibility for
outcomes.

3. **Discipline**: Adherence to rules and

agreements ensures smooth operations
and cooperation.

4. **Unity of Command**: Each employee

should receive orders from one superior to
avoid confusion.

5. **Coordination (Unity of Direction)**: All

efforts must be aligned with common
objectives and coordinated towards
organizational goals.

6. **Subordination of Individual Interests to

the General Interest**: The organization’s
goals should take precedence over
individual interests.

7. **Scientific Selection and Training of

Personnel**: Selecting and training
employees scientifically ensures efficiency
and competence. Explanation of Each Principle:

8. **Remuneration**: Fair wages motivate

employees and lead to greater performance.

9. **Responsibility (Scalar Chain/Chain of

Command)**: There must be a clear chain
of command in the hierarchy of authority.

10. **Order**: Proper organization and

structure ensure that resources and
people are efficiently arranged.

11. **Initiative**: Employees should be

encouraged to take initiative, which
fosters innovation and growth.

12. **Stability of Tenure of Personnel**:

Stability in the workforce helps maintain
productivity and reduces training costs.

13. **Equity**: Managers should treat

employees with fairness and respect,
leading to higher morale.

14. **Esprit de Corps**: Promoting team

spirit helps in achieving organizational 
harmony and cooperation.
 Unit 4: Planning

Features
Meaning Planning process
* Planning is a goal oriented
process Planning is an important * Setting objectives
functions of management and
* primary function of involves deciding in advance * Developing planning
management what to do and how to do premises
* Planning is apervasive * Identifying alternative
function courses of action
* continuous activity * Selection of the best
* Planning is futuristic alternative
* It involves decision making * Implementation of the
* It is a mental exercise plan
*Follow-up action and
Planning review of the plan
Importance
* Planning provides direction for
various activities
* It reduces uncertainty Limitations Types of plan
*. It eliminates overlapping and * Planning leads to rigidity *Objectives
wasteful activities *Strategy
* May not work in dynamic
* It promotes innovation and enviornment *Policies
creativity
* Planning reduce creativity *Procedure
* It facilitates decision-making
* Time consuming process *Methods
* It establish standard for
controlling *It does not guarantee *Rule
success
*Programmes
* It may not be accurate
*Budget:
Meaning: It is a process of deciding in advance the future course of activities
for achieving the predetermined goal or objectives of business. Planning
means the determination of what is to be done, how and where it is to be
done, and by whom it is to be done.. It is the process of thinking before doing..

Features of planning:

1) Planning is a goal oriented process.

2) It is a primary function of management.
3) It is a pervasive function, i.e., it is basic to all other functions of
management.
4) It is a continuous activity.
5) It is forward looking.
6) It involves decision making.
7) It is mental or intellectual activity.

Importance of planning:

1. Planning provides direction for various activities.

2. It reduces uncertainty.
3. It eliminates overlapping and wasteful activities. It ensures focus on
meaningful activities.
4. It promotes innovation and creativity.
5. It facilitates decision-making in business.
6.It serves as the basis of control by providing standards of performance.

Limitations of planning:
1.Planning leads to rigidity. Commitment to rules, policies and procedures
compel managers to be rigid and inflexible.
2.It may prove to be a failure in case of dynamic environment.
3.It may discourage creative thinking by managers.
4.It is a time consuming process.
5.It is a costly process.
6.It does not guarantee success. It may create a false sense of security among
managers and make them complacent
7. It may not be accurate.
Steps in planning:

1. Setting objectives.
2. Developing planning premises.
3. Identifying alternative courses of action.
4. Selection of the best alternative.
5. Implementation of the plan.
6. Follow-up action and review of the plan.

Types of plan:
Single use plan: one time use and it comes to end when the project is
over. It mainly include Budget , programme and Projects
Standing plan: once made used for many years. It is used for activities
that occur regularly over a period of time. It mainly include policies ,
procedure, method ,rules etc

Objectives: Determine what is to be done. It is the end result of

planning. Eg increase in sale by 10%
Strategy: It Is a comprehensive plan to achieve the organizational
objectives. Eg sales promotion techniques, choice of channel of
distribution
Policies: It is the organization’s own way of handling the problems.
Procedure: Sequence of steps to carry on different activities. Eg
admission procedure in a school or colleges
Methods: Way of doing the work. Eg method of depreciation
Rule: code of conduct or general instruction in any organization.
Specify what to do and what not to do.
Programmes : combination of objectives, policies, procedure and rules
Budget: expected result expressed in numerical terms. Eg ; sales etc
MIND MAP- CHAPTER- 5_ORGANISING
SUMMARY CHART
 KEYWORDS FOR CASE STUDIES
S.NO. CONCEPT KEYWORDS
1. Organising ● A process

● Function of management
● Process that co-ordinates human efforts, assemble resources and
integrate both.
● Process that initiates implementation of plans by clarifying jobs and
working relationships and effectively deploying resources.

2 Departmentalisation ● Process of grouping together similar activities.

3 Organisation ● Framework that specifies relationship b/w people, work and

Structure
resources.

4 Span of Management ● No. of subordinates that can be effectively managed by a superior.

5 Functional ● Grouping of jobs of similar nature.

Organisation
Structure ● Separate departments.
● Leads to occupational specialisation.
● Minimum duplication of work.
● Suitable when size of org. is large, has diversified activities and
operations and high degree of specialisation.
6 Divisional ● More than one category of product.
Organisation
Structure ● Set of homogenous functions.
● Separate business units or divisions.
● Within each Division, functional structure is adopted.
● Product specialisation
● Suitable for business where a large variety of products is
manufactured, when an org. grows, need more employees, create
more departments, and introduce new levels of management.

7 Formal organisation ● Guided by rules and regulations

● Job description
● Org. structure deliberately designed by the management.

● Specifies clear boundaries of authority and responsibilities.

● Formal org. can be Functional or Divisional.
● Procedural delays
8 Informal organisation ● Network of social relationships among employees.

● Emerges within Formal Organisation.

● No defined roles.
● No fixed lines of communication.
● Spontaneous
● Interpersonal relations
● Grapevine structure
9 Delegation ● Downward transfer of authority from superior to subordinate.

● Manager extends his area of operations.

● Delegation does not mean abdication. It means manager shall still be
accountable for the performance of assigned tasks.
● Authority can be taken back and re-delegated to someone else.
10 Elements of delegation ● Authority (right to command or power to take decisions) (flows
downwards) (can be delegated)

● Responsibility (obligation to do task) (flows upwards),(can’t be

entirely delegated).

● Accountability (answerability) (can’t be delegated)(flows

upward)
11 Decentralisation ● Manner in which decision making responsibilities are divided
among hierarchal levels.

● Dispersal of authority through entire organisation.

● Propagates that employees are competent, capable and resourceful.
● Extension of delegation to the lowest level of management.
● Decentralisation is a policy decision of the Top management.

ACRONYMS
CHAPTER-5 ORGANISING
PROCESS OF ORGANISING IDEA
1 Identification and division of work

2 Departmentisation
3 Assigning of duties
4 Establishing reporting relationships

Importance of organizing BADO-CAG

1 Benefits of specialization
2 Clarity in working relationships
3 Optimum utilization of resources
4 Adaptation to changes
5 Development of personnel
6 Expansion and growth
Delegation –AAR
AUTHORITY
RESPONSIBILITY
ACCOUNTABILITY
 STAFFING
Meaning of Staffing: Staffing function of management is concerned with obtaining,
utilising and maintaining a satisfactory and satisfied workforce. It is the process of
filling and keeping filled, the positions in the organisational structure.

Importance of Staffing: (SHO CM)

Obtaining competent personnel

Higher Performance

Continuous Survival and Growth

Optimum utilisation of human reosurces
Improves job satisfaction and morale of
employees.

Staffing as a Part of HRM: (PTM HARD)

Developing
Recruitment Analysing Job
Compensation

Training and Maintaining Handling

Development labour relations grievances

Providing for Defending the

social security company
 Steps in Estimation of manpower requirements
Staffing Workload Analysis
Process Workforce Analysis
(ERSPTP
PC) Placement and Orientation
Training and Development
Performance Appraisal
Promotion and Career Planning
Compensation

Internal Sources of Recruitment:

⮚ Transfers
⮚ Promotions

External Sources of Recruitment:

⮚ Casual Callers
⮚ Labour Contractors
⮚ Direct Recruitment
⮚ Advertisement
⮚ Campus Recruitment
⮚ Placement Agencies and Management consultants
⮚ Recommendations of Employees.
⮚ Employment Exchange
⮚ Advertising on Television
⮚ Web Publishing.

Steps Involved in the Selection Process: (PSER SMJ C)

• Selection Decisions

Prelimi Employ •Referen Selectio Medical

nary Selectio ment ce and n
Backgro Examinat Job Contract of
Screeni n Test Intervie Decisio
ion Offer. Employment
ng w und ns
Checks
Types of Selection/ Employment Tests: (PIITA)

Intelligence Aptitude Personality

Trade Test Interest Test
Tests Tests Tests

Importance of Training:
❖ Benefits of training to the Organisation:
⮚ Systematic learning.
⮚ Equips the future managers
⮚ Increase employee morale
⮚ Enhance employee productivity
⮚ Effective response to fast changing environment.
❖ B. Benefits of training to the Employees:
⮚ Career growth
⮚ Improved performance
⮚ Reduces accidents
⮚ Increase the morale.

Methods of Training:
 Off the job training methods
On the job training methods:
are used away from the workplace. It
are used at the workplace. It means
means learning before doing.
learning while doing. Examples are:
Examples are

Apprenticeship
Training Vestibule Training
Programme

Internship Traning. Induction Training.

 Mind Map of DIRECTING
Importance: -
● Initiates Action
● Leads to Integrated group activity
● Helps to implement changes
● Helps to achieve organisational goal
Elements of Directing: - Supervision, Motivation, Leadership and Communication
Motivation Leadership Communication
Maslow’s Need Hierarchy Leadership Styles: - Elements of Communication
Theory: - 1. Autocratic or Authoritative Process: -
1. Physiological Needs 2. Democratic or Participative 1. Sender
2. Safety and Security Needs 3. Laissez Faire or Free Rein 2. Message
3. Social/Affiliation Needs 3. Encoding
4. Esteem Needs Types of Communication: - 4. Media
5. Self Actualisation Needs 1. Formal 5. Decoding
(a) Vertical: - Upward and 6. Receiver
Financial Incentives: - Downward 7. Feedback
1. Pay and Allowances (b) Horizontal 8. Noise
2. Productivity Linked Wage (c) Diagonal
3. Bonus
4. Profit Sharing 2. Informal(Grapevine)
5. Stock Option
6. Retirement Benefits Types of Barrier to Effective
7. Perquisites Communication: -
(I) Semantic- (II) Organisational-
Non- Financial Incentives: - 1. Body Language and Gesture 1. Organisational Policy
1. Status decoding 2. Rules and Regulations
2. Organisational Climate 2. Technical Jargon 3. Status
3. Employee Participation 3. Unqualified Assumptions 4. Complex Structure
4. Job Security 4. Faulty Translation 5. Organisational Facilities
5. Job Enrichment 5. Use of symbols with different
6. Career Advancement Meanings
6. Badly Expressed Message

(III) Psychological- (IV) Personal-

1. Premature Evaluation 1. Fear to authority
2. Lack of Incentive 2. Lack of Confidence
3. Poor retention 3. Unwillingness to
4. Distrust communicate
4. Lack of Proper Incentives
 PA RT- B
(BUSINESS FINANCE ANDMARKETING)
(MindMap)
 MARKETING: (Mind Map)

Concept: It is a social process whereby people exchange goods and services

for money or something of value.

Marketing Management
: It refers to planning, organizing, directing and
control of activities which facilitates exchange of goods and services between
producers and consumers.

Functions of Marketing:
 Gathering and analysing market information
 Marketing planning
 Product designing and development
 Standardisation and grading
 Packaging and labeling
 Branding
 Customer support services
 Pricing of product
 Promotion
 Physical distribution
 Transportation
 Storage and warehousing
 Marketing Philosophies/Concept:
Basis Production Product Selling Marketing Societal
concept concept concept concept Marketing
concept
Main Quantity of Quality Existing Customer Customer
focus product Of product product needs needs and
society’s
welfare
Means Availability Product Selling and Integrated Integrated
and improvement promoting marketing market
affordabilit s
y
Of product
Ends Profit Profit through Profit Profit Profit
through product through Through Through
volume of quality sales Customer’s Customer’s
production volume satisfaction Satisfaction
And social
welfare

Elements of Marketing Mix: consist of 4 P’s of marketing

 Product
 Price
 Place
 Promotion

Product Mix:

 Packaging
 Labelling
 Branding

Concept of Packaging: process of designing a suitable wrapper or

container for a product.
Levels of Packaging:

 Primary packaging
 Secondary packaging
 Transportation packaging

Functions of Packaging:

 Product identification
 Product protection
 Facilitating use of product
 Product promotion

Concept of Labelling: process of designing a label for a product.

Functions of Labelling:

 Describe the product and specifies its content

 Identification of brand
 Grading of product
 Providing information required by law
 Helps in promotion of product

Concept of Branding: process of assigning a name, sign, symbol or

combination of all to identify the products and to distinguish them from those
of the competitors.

Factors affecting the price of a product:

 Cost of manufacturing a product

 Utility and demand
 Extent of competition
 Government and legal regulations
 Pricing objectives
 Marketing methods used
 Types of channels of
Distribution

Place related decisions: Direct Channel

Indirect Channel

 One level channel

 Two level channel
 Three level
channel

Components of Physical
Distribution Decision

 Order
processing
 Inventory
control
 Transportation
 Warehousing

Presonal Selling which refers to

personal form of communication

Promotion mix refers to combination

of promotional tools used by an
Sales Promotion refers to short organization to achieve its Advertising is paid form of
term incentives offered by communication objectives. non – personal
marketers to promote sales. communicaton undertaken
by the marketer.

Public Relation refers to practice

of maintaining positive image
between an organization and
public.
 CONSUMER PROTECTION – A FLOW CHART/MIND MAP
1. Meaning: Protection of consumer rights and interests against unfair practices in the market.

2. Importance of Consumer Protection:

Consumer’s Point of view Businessman’s Point of view
1. Consumer Ignorance 1. Long term interest of business
2. Unorganized Consumers 2. Business uses society’s resources
3. Widespread Exploitation of consumers 3. Social Responsibility
4. Moral Justification
5. Government Intervention

3. Consumer Rights:
Right to Safety: Protection from hazardous goods and services.

Right to Be Informed: Access to information regarding the quality, quantity, price, and usage
of goods and services.

Right to Choose: Freedom to select from a variety of goods and services.

Right to Be Heard: Right to file a complaint and to be heard in case of dissatisfaction.

Right to Seek Redressal: Right to seek a remedy for grievances or unfair trade practices.

Right to Consumer Education: Awareness about consumer rights and responsibilities.

4. Consumer Responsibilities:
1. Exercise Right 2. Be Cautious 3. File Complains 4. Quality Conscious
5. Insist Cash Memo 6. Form Consumer Societies 7. Be aware of goods 8. Don’t
blindly follow advertisement 9. Respect Environment
5. Redressal Agencies:
a. District Commission: When value of goods and services does not exceed 1 crore

b. State Commission: When value of goods and services exceeds 1 crore but less than 10
crore

c. National Commission: When value of goods and services exceeds 10 crore.

6. Reliefs (Remedies) Available to Consumers:

⮚ Remove defect/deficiency
⮚ Replace defective product
⮚ Refund the price
⮚ Pay compensation
⮚ Pay damages
⮚ Discontinue unfair trade practices
⮚ Discontinue sale of hazardous product
⮚ Withdraw hazardous product

7. Role of Consumer Organisations and NGOs

(a) Educate Public (b) Publish Periodicals (c) Test Consumer Products (d) File
Complaints (e) Provide Legal Assistance (f) Encourage consumers to protect

8. Various Quality Marks:

I. FPO Mark: Food Products
II. ISI Mark: Electrical Appliances
III. Hallmark: Jewellery
IV. Eco mark: Environment friendly product
V. AGMARK: Agricultural Product
VI. Wool mark: Pure Wool

9. The Act Applicable: Consumer Protection Act, 2019.