Acronyms to Remember Business Studies Class XII CBSE

ACRONYMS

CHAPTER-1 -----------NATURE AND SIGNIFICANCE OF MANAGEMENT

FEATURES OF MANAGEMENT

My Charming Dad Is Giving Grand Party (MCD PIG²)

1.MultiDimensional

2.Continous

3. Dynamic

4. Intangible

5. Group Activity

6. group Goals

7.Pervasive

IMPORTANCE OF MANAGEMENT

GDP depends upon Efficient Society

1.       Achieving Group Goals

2.       Dynamic Organisation

3.       Achieving Personal Objectives

4.       Increases efficiency

5.       Helps in Development of Society

MANAGEMENT AS AN ART

CAT

1.      Based on practice and Creativity

2.      Personalised Application

3.      Existence of Theoretical knowledge

MANAGEMENT AS SCIENCE-------------USP

1.     Universal validity

2.     Systematic Body of knowledge

3.     Principles based on Experimentation

NATURE OF COORDINATION--------------Police Controls DRUG

1.      Pervasive Function

2.      Continuous Process

3.      Deliberate Function

4.      Responsibility of All Managers

5.      Unity of Action

6.      Integrates Group Efforts

IMPORTANCE OF COORDINATION

Coordination is needed when organization grows in size, has specialization and includes functional Diffferentiation.

CHAPTER-2-----PRINCIPLES OF MANAGEMENT

FAYOL’S PRINCIPLES OF MANAGEMENT

DAD U C USSR? O I SEE

1 DIVISION OF WORK

2. AUTHORITY AND RESPONSIBILITY

3.DISCIPLINE

4. UNITY OF COMMAND

5. CENTRALISATION AND DECENTRALISATION

6. UNITY OF DIRECTION

7. SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST

8. SCALAR CHAIN

9. REMUNERATION OF EMPLOYEES

10. ORDER

11. INITIATIVE

     12. STABILITYOF TENURE OF PERSONNEL

     13. EQUITY

     14. ESPIRIT DE CORPSE     

PRINCIPLES OF SCIENTIFIC MANAGEMENT

SCIENCE leads to DEVELOPMENT by HARMONY and COOPERATION.

1.       Science, not rule of Thumb

2.       Development of each person to his or her greatest Effeciency

3.       Harmony not Discord

4.       Cooperation, not individualism

TAYLOR’S TECHNQUES OF SCIENTIFIC MANAGEMENT

My Sweet Simple Mother and Father Taught Taylor’s Different Functions

1.       Motion Study

2.       Standardization and Simplification

3.       Method Study

4.       Fatigue Study

5.       Time Study

6.       Differential Piece Wage System

7.       Functional foremanship

CHAPTER-3-----BUSINESS ENVIRONMENT

Features of Business Environment

Disturb C

D – Dynamic

I – Interrelated

S – Specific and general forces

T – Totality of External forces

U – Uncertainity

R – Relativity

B –

C – Complex

Dimensions of Business Environment

S – Social

T – Technological

E – Economic

P – Political

L – Legal

CHAPTER-4------PLANNING

Process of Planning

SP-ICS-F

S – Setting Objectives

P – developing Premises

I – Identify alternate course of action

C – Evaluating alternative courses

S – Selecting an alternative

D – Formulation of derivative plans

I – Implementation of plan

F – Follow up action

Features of Planning

DCP of MP

D – decision Making

C – Continuous Process

P – Pervasive

O – Objective achievement

F – Futuristic

M – Mental Exercise

P – Primary Function

Importance – DRSODI

D – it provides direction

R – Reduce the risk of uncertainity

S – Establishes standard of controlling

O – Reduces overlapping

D – Decision Making

I – Promotes Innovative Ideas

Limitations

NCR DTC

N – No guarantee of success

C – Involves huge cost

R – It creates rigidity

D – Does not work in dynamic environment

T – Time consuming Process

C – Reduces Creativity

CHAPTER-5----ORGANISING

PROCESS OF 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

CHAPTER-6----Staffing

Staffing process- MR SPOTPPC

1                   ESTIMATING MANPOWER REQUIREMENTS

2                   Recruitment

3                   Selection

4                   Placement and orientation

5                   Training and development

6                   Performance appraisal

7                   Promotion and career planning

8                   Compensation

Training methods- APP.IVI

1                   Induction training

2                   Vestibule training

3                   Apprenticeship training

4                   Internship training

COMPONENTS OF STAFFING- TSR

1                   RECRUITMENT

2                   SELECTION

3                   TRAINING

INTERNAL SOURCES- PT

1                   TRANSFER

2                   PROMOTION

IMPORTANCE OF STAFFING- JCT-SHO

1                   Ensures availability of competent personnel

2                   Higher performance

3                   Ensures continuous survival and growth

4                   Ensures optimum utilization of human resources

5                   Improves job satisfaction and morale

6                   Advancement of technology

CHAPTER-7----Directing

Features of Directing: (CIFT)

i)  Initiate’s action:

(ii) Takes place at every level of management:

(iii) Continuous process:

(iv) Flows from top to bottom:

Importance of Directing :( SAIIF)

1.     Achieving Goal

2.     Integrate employees efforts

3.     Fuller utilization of employees capabilities

4.     Introducing changes

5.     Stability in organization

Supervision

Importance of Supervision (AADHIE)

1.     Act as friend, philosopher and guide

2.      Avoid misunderstanding and conflict among worker and management

3.     Harmony among workers

4.     Efficient team of workers

5.     Increase morale of workers

6.     Develop work skill

Motivation

Features of Motivation (IPCC)

1.     Internal feeling

2.     Produces goal directed behavior

3.     Can be either positive or negative

4.     Complex process.

Motivation Process(U Tension Doge Sabko Sath Rulaaonga)

1.     Unsatisfied need

2.     Tension

3.     Drive

4.     Search behavior

5.     Satisfied need

6.     Reduction of Tension

Motivation Importance(N RR II)

1.     Improves performance level of employee

2.     Negative attitude to positive attitude

3.     Reduce employee turnover

4.     Reduce abseentism

5.     Introducing change smoothly

Maslow’s Need Hierarchy Theory of motivation (PEASS)

1.     Basic Physiological need

2.     Safety and security need

3.     Affiliation and belongingness need

4.     Esteem need

5.     Self actualization need

Techniques of motivation:

A.   Financial Incentives(Please 4ward, BRS)

1.     Pay and allowances

2.     Perquisites

3.     Productivity  linked wage incentives

4.     Profit Sharing

5.     Bonus

6.     Retirement benefit

7.     Stock option and co partnership

B.   Non-Financial Incentives(JJOCEE-SE)

1.     Status

2.     Organization Climate

3.     Career advancement opportunities

4.     Job enrichment

5.     Job security

6.     Employee recognition programme

7.     Employee participation

8.     Employee empowerment.

Leadership

Features of leadership(ABC-IE)

1.     Ability to influence other

2.     Bring change in behavior of other

3.     Interpersonal relations between leader and follower

4.     Exercise for common goal

5.     Continuous process.

Importance of Leadership(PCMB-I)

1.     Produces good results

2.     Creates congenial work environment

3.     Introduction of change with minimum discontentment

4.     Maintain harmonious relations

5.     Build up successor and help in smooth succession process

Qualities of good leader(PCM-CSD-KII)

1.     Physical Features

2.     Knowledge

3.     Integrity

4.     Initiative

5.     Communication Skill

6.     Motivation skill

7.     Self Confidence

8.     Decisiveness

9.     Social skill

Communication

Importance of Communication(CDS-ME-BP)

1.     Act as a basis of coordination

2.     Act as a basis of Decision making

3.     Help in Smooth working of an enterprise

4.     Increase Managerial efficiency

5.     Promotes cooperation and peace

6.     Establish effective leadership

7.     Boost morale and provide motivation

Barriers to communication process

A.   Semantic barriers(BSF-TUB)

1.     Badly expressed message

2.     Symbols with different meaning

3.     Faulty translation

4.     Unclarified assumption

5.     Technical jargon

6.     Body language and gesture decoding

B.   Psychological Barriers(PLLD)

1.     Premature evaluation

2.     Lack of attention

3.     Loss by transmission and poor retention

4.     Distrust

C.   Organisational barriers(RS-PCC)

1.     Policy

2.     Rules and regulations

3.     Status

4.     Complexities in structures

5.     Communication  facilities

D.   Personal Barriers(FLUU)

1.     Fear of challenge to authority

2.     Lack of confidence on subordinates

3.     Lack of incentives

4.     Unwillingness to communicate

Measures to improve communications (BCCI FACT)

1.     Clarity of  message

2.     Communicate according to the need of receiver

3.     Consult other to develop plan for communication.

4.     Beware of language, content and tone.

5.     Communicate thing of value to others

6.     Ensure proper feedback

7.     Connect present with future

8.     Follow up communication

9.     Be a good listener

Chapter 8. Controlling

A.   Steps in controlling process(Some  Measurable CAT)

1.     Setting up objectives

2.     Measurement of actual performance

3.     Comparison with standard performance

4.     Analysis of deviation

5.     Taking corrective action

B.   Importance of controlling(First-I-EAT-Jam)

1.     Accomplishing organization goal

2.     Judging accuracy of standard

3.     Efficient use of resources

4.     Improves employee motivation

5.     Ensure order and discipline

6.     Facilitate coordination in action

C.   Limitation of controlling(RLD)

1.     Difficulty in setting quantitative standard

2.     Little control on external factors

3.     Resistance from employee

CHAPTER-9 AND 10 ---Financial Management & Financial Market

1.    Decisions   -        FDI

2.    Trading Procedure       -        SOPES

                                I.            Selection of broker

                              II.            Opening Demat A/c

                            III.            Placing the order

                           IV.            Executing the order

                             V.            Settlement

3.    Methods of Floatation -        POORE/RO2PE

                                I.            Private Placement

                              II.            Offer through Prospectus

                            III.            Offer for sale

                           IV.            Right Issue

                             V.            E-IPOs

4.      Factors Affecting Capital Structure DISC⁴

i.                    Debt -  Service coverage ratio

ii.                  Interest coverage ratio

iii.                Stock Market condition

iv.                Cost of equity

v.                  Cost of Debt

vi.                Cash flow position

vii.              Control Consideration

CHAPTER -11 : MARKETING MANAGEMENT

1.      Features of Marketing

NCCE

(i)                 Needs and Wants

(ii)               Creating a Market offering

(iii)             Customer Value

(iv)              Exchange Mechanism

2.      Marketing Management – Philosophies

SPP-MT

(i)                 Production concept

(ii)               Product Concept

(iii)             Selling concept

(iv)              Marketing Concept

(v)                The Social Marketing concept

3.      Elements of Marketing Mix

4Ps

(i)                 Product

(ii)               Price

(iii)             Place

(iv)              Promotion

4.      Characteristics of a Good Brand Name

SSD AVC

(i)                 Short and Simple

(ii)               Suggests the products and Qualities

(iii)             Distinctive

(iv)              Adaptable to packing or labeling

(v)                Versatile to accommodate new products

(vi)              Capable of being registered

CHAPTER-12----CONSUMER PROTECTION

1.      Consumer rights

RICH-SE

(i)                 Right to Safety

(ii)               Right to be Informed

(iii)             Right to Choose

(iv)              Right to be Heard

(v)                Right to Seek Redressal

(vi)              Right to Consumer Education

2.      Consumer Responsibilities

Honest CBSE: Fair SRCC

(i)                 Be aware about various goods and services

(ii)               Buy only Standardized goods

(iii)             Learn about risk Associated

(iv)              Cautious consumers

(v)                Assert yourself to ensure to get a Fair deal

(vi)              Be Honest in dealings

(vii)            Ask for Cash Memo

(viii)          Ready to file a Complaint

(ix)              Form consumer Societies

(x)                Respect the Environment

3.      Role of Consumer Organizations and NGOs

PEELI-CC

(i)                 Educating the consumers

(ii)               Publishing periodical and other publications

(iii)             Carrying and comparative testing of consumer products

(iv)              Encouraging consumer to protest

(v)                Provide Legal assistance

(vi)              Filling Complaints

(vii)            Taking an Initiative in filing of case.