i) Rising standard of living.
ii) Economic development.
iii) Distribution of wealth.
iv) Encouragement of middle class sections.

i) Safety from Water and Air Pollution.
ii) Protection of Environment
iii) Fulfilling the Social responsibility

(a) Policies
(b) Objectives
(c) Strategies.

Louis Allen, “Organization is the process of identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.” In the words of Allen, organization is an instrument for achieving organizational goals. The work of each and every person is defined and authority and responsibility is fixed for accomplishing the same.
Wheeler, “Internal organization is the structural framework of duties and responsibilities required of personnel in performing various functions within the company It is essentially a blue print for action resulting in a mechanism for carrying out function to achieve the goals set up by company management”. In Wheeler’s view, organization is a process of fixing duties and responsibilities of persons in an enterprise so that business goals are achieved.

The term “Level of Management” refers to a line of demarcation between various mgt. positions in an organisation.

Explanation of grapevine
Useful— fast mode of communication
Harmful— as it gives rise to rumours.

Science is a systematised body of knowledge that establishes cause and effect relationship.
The basic features of science are:
(i) Systematised body of knowledge: Science is a systematised body of knowledge, consisting of principles and theories based on cause and effect relationship.
(ii) Principles based on experimentation: Scientific principles are valid and applicable universally.
Management is a science because of the following reasons:
(i) Like science, there is a systematised body of knowledge in management, consisting of theories, principles and concepts.
(ii) Principles of management are evolved after continuous observations and experimentation.
(iii) Like science, some of the principles of management have universal validity, but they are not as exact as principles of pure science.
Conclusion: Management is a social science or soft sciences, as it involves the study of human behaviour. Management cannot be as perfect as natural siences. Therefore it is an inexact science.

The functional structure suffers from the following disadvantages:
(i) It is difficult to hold a single department responsible for any problem.
(ii) As departments grow in number, coordination becomes difficult.
(iii) Conflicts may arise between departments.

The process of organising consists of the following steps:
(i) Identification and division of work.
(ii) Departmentalisation.
(iii) Assignment of duties.
(iv) Establishing reporting relationships.
1. Identification and division of work 
The first step in the process of organising involves identifying and dividing the work that has to be done in accordance with previously determined plans. Work is divided into manageable tasks, so that duplication can be avoided and workload can be shared among employees.
2. Departmentalisation
Once, work has been divided into small and manageable activities, then those activities which are similar in nature, are grouped together. This process is called departmentalisation. departments can be created on the basis of products, functions and territory. This brings specialisation in operations.
3. Assignment of Duties
Once the departments are created, each department is placed under the charge of an individual, called department head. Then, each job is allocated to an individual, according to his knowledge and skill. There should be a proper match between the nature of jobs and the ability of an individual.
4. Establishing Reporting Relationships
In the organisation, each employee has some authority as well as responsibility. It is necessary that every individual must know whom he has to take orders from and to whom he is answerable. This creates superior-subordinate hierarchy and helps in coordinating various activities in the organisation. 

These are the detailed statements stating the objectives, policies, procedures and budgets related to an activity to be undertaken.They clearly state how, when and by whom work is to be done. e.g. programme developed for construction of a shopping mall.

Directing refers to the process of instructing, guiding, leading and motivating people in an organisation to achieve predetermined goals.
Characteristics of directing are:
(i) Directing initiates action - Direction is an executive function of management. while the other function prepare a setting for action, directing initiates action in the organisation.
Therefore, a manager has to perform this function according to planning, organising, staffing and controlling.
(ii) Directing takes place at all levels - Every manager from top to bottom performs the function of directing or in other words, we can say, directing takes place wherever superior sub-ordinate relationship exists.
(iii) Directing is a continuous process - It is an ongoing process. It does not mean issuing an order or instruction but a manager must continuously guide, inspire and supervise his sub-ordinates, so that organisational goals are achieved on time.
This function continues throughout the lifetime of an organisation. If direction in the organisation stops, it cease to work and grow.

Planning is looking ahead, as it based on forecasting and is prepared for the future, analysing it and predicting it.Thus, it is a futuristic process.

Business environment refers to the sum total of factors and institutions that operate outside the business enterprise but affects its performance. It includes social, economic, political, legal and technological factors.

Technique of time study helps in improving the efficiency level in the following ways:
(i) Setting up the standard target for workers.
(ii) Determining the number of workers required to perform a job.
(iii) Categorising the workers into efficient and inefficient categories.

In the words of Taylor, 'scientific management means knowing exactly what you want men to do and seeing that they do it in the best and the cheapest way'.
It emphasises replacement of 'rule of thumb'  i.e. personal judgement, by scientific selected methods and tools.
Three principles of scientific management are:
(i) Science, not rule of thumb.
(ii) Harmony, not discord.
(iii) Cooperation, not individualism.

Significance of Management Principles
Provide useful insights to manager :- Principle of managers provides useful insights to managerial behaviour and influence managerial practices. These principles will add to their knowledge ability and understanding of managerial situations and circumstances.
Managers may apply inside principles to fulfill their task and responsibility. They enable the managers to learn from past mistakes and save time by solving recurring problems fast. So, management principles increase management efficiency.
Optimum Utilisation of Resources :- Management principles aim at optimum utilization of human and physical resources for the attainment of organizational goals. By optimum utilization, we learn that resources should be put to use in such a manner that they should give maximum benefit with minimum cost.
e.g:-  Science not rule of thumb suggest-every task should be done with minimum required efforts and energy.
Scientific Decisions
Management principles enable the managers to approach various problems systematically & scientifically & keep them in taking scientific decisions to meet changing conditions. Management decisions taken on the basis of principles are free from bias and prejudice because they emphasize logic rather than blind faith.
Meeting Changing Environment requirements :- Management principles train the managers to adopt the changes in technology in right direction and at right level in the organization. Thus, although the management principles are general guidelines, yet they are modified by the manager to meet changing requirements of the environment.
Fulfilling social Responsibility :-  Management principles not only act as guidelines for achieving organisational objectives but this principle also guide the managers to perform social responsibility.
E.g:- principles of “Fair Remuneration’ insists on adequate salary to employee.

Planning is of vital importance in the managerial process. No enterprise can achieve its objectives without systematic planning.
“Planning is the heart of management”
The following points highlight the importance of planning function of management :
1. Planning provides directions : By stating in advance how work is to be done, planning provide direction for action.
If goals are well defined, employees are aware of what the organisation has to do and what they must do to achieve those goals. Departments and individuals in the organisation are able to work in coordination
Planning keeps the organisation on the right path.
If there was no planning, employees would be working in different directions and the organisation would not be able to achieve its goals efficiently.
2. Planning reduces the risks of uncertainty : Business enterprises operate in an uncertain environment and face several types of risks. Planning enables these enterprises to predict future events and prepare to face the unexpected events. With the help of planning, managers can identify potential dangers and take steps to overcome them. Thus, planning helps risk and uncertainty.
3. Planning facilitates decision-making : Decision-making involves searching for various alternative courses of action, evaluating them and selecting the best course of action. Under planning, targets are laid down. With the help of these targets, managers can better evaluate alternative courses of action and select the best alternative. Plans lay down in advance what is to be done and how it is to be done. Therefore, decisions can be taken with greater confidence.
4. Planning reduces overlapping and wasteful activities : Since planning ensures clarity in thought and action, work is carried on smoothly without interruptions. There is no confusion and misunderstanding. Useless and redundant activities are minimized or eliminated. It is easier to detect inefficiencies and take corrective measures to deal with them.
5. Planning promotes innovative ideas : Planning is thinking in advance and, therefore, there is scope of finding better ideas and better methods and procedures to reach the objectives/goals of the enterprise. This forces managers to think differently about the future of the organizations from the present. Thus, planning makes the managers innovative and creative.
6. Planning establishes standards for controlling : Planning provides the goals or standards against which the actual performance can be measured and evaluated. A comparison of actual performance with the standards helps to identify the deviations and to take corrective action. Planning makes control meaningful and effective. ‘Control is blind without planning.” Thus, planning provides the basis of control.

The following basic characteristics of management highlight its nature :
1. Management is a goal – oriented process : An organisation has a set of basic goal which are the basic reason for its existence. These goals should be simple and clearly stated. Management unites the efforts of different individuals in the organisation towards achieving these goals. For example, a firm decides to sell 1000 TV sets in particular year. The manager will plan a course of action and organize the activities to achieve this goal.
2. Management is a group activity : An organization is a group of diverse individuals with different needs. Every member of the group has a different purpose for joining the organization. But as members of the organization they work towards achieving the common organizational goal. This requires team work and coordination of individual efforts in a common direction. Management as a team can contribute more effectively and efficiently rather than individuals.
3. Management is an intangible force : Management cannot be seen. The effect of management is noticeable in an organisation where targets are met according to plans, employees are happy and satisfied, and there is orderliness instead of chaos and there is coordination in the working environment.
4. Management is all pervasive : Management is virtually applied to every type of organisation, whatever its size or purpose. An auto plant, a city government, a cricket team, a hospital or a school all require management, a cricket team, a hospital or a school all require management. Moreover, what managers do in India, the USA, Germany or Japan is the same. How they do it may be quite different. This difference is due to the differences in culture, tradition and history.
5. Management is multidimensional : Management is a complex activity which has three main dimensions. i) Management of work ii) Management of people iii) Management of operation
6. Management is a continuous process : Management process is a series of continuous, composite but separate functions (planning, organizing, staffing and controlling). But these functions are inter-dependent. They are simultaneously performed by all managers all the time.
7. Management is a dynamic function : Management is a dynamic function and has to adapt itself to the changing environment. An organization interacts with its external environment which consists of various social, economic and political factors. In order to be successful, an organization must change itself and its goals according to the needs of the environment.

Internal sources refer to recruitment from within the organisation.Sources of internal recruitment are:
(i) Promotions
(ii) Transfers
Internal sources of recruitment suffer from the following advantages:
(i) Employee motivation Promotion to a higher level motivates the employee for better performance and leads to satisfaction of employees.
(ii) Simple process  The process of selection and placement becomes simpler, as the background of the candidate is already known.
(iii) Facilitate training  Transfer from one job to another facilitates training of employees.
(iv) No induction training  Employees selected from within the organisation do not need induction training.
(v) Filling deficiencies It helps to fulfill the deficiency of one department with the surplus of another.
(vi) Inexpensive  Recruitment from internal sources does not require much time, money and effort.
Limitations of Internal Sources
Internal sources of recruitment suffer from the following limitations.
(i) No fresh talent    Recruitment from internal sources does not bring fresh talent into the organisation.
(ii) Lethargic employees   When employees are sure of time-bound promotions, they become lethargic.
(iii) No competitive spirit   Competitive spirit among the employees may get hampered.
(iv) Reduce productivity   When employees are transformed frequently to different jobs, it results in reduced productivity.
(v) Not available to new enterprises   A new enterprise cannot avail the benefit of this source.

(i) Unity of Direction
It implies that there should be one head and one plan for a group of activities having the same objective. In other words, the related activities should be put under one group, there should be one plan of action for them and they should be in the control of one manager.
This ensures unity of action and coordination.

(ii) Equity
This principle emphasises kindliness and justice in the behaviour of managers towards workers. It will bring loyalty and devotion in the behaviour of employees and they will put their best to achieve the targets.
There should be no discrimination against anyone on account of sex, religion, language, caste or belief and equal opportunities should be available for all. 

(iii) Esprit De Corps
It means union is strength. Fayol emphasised on team work. He suggested that every employee must consider himself as a part of team. This sprit brings harmony in the groups and they strive to work hard to achieve the targets of an organisation.
For this, managers should replace 'I' with 'We' in all his conversations.

(iv) Order
As per this principle, there should be an orderly arrangement of men and material which implies that there is a fixed place for everything and everyone in the organisation.
A place for everything, called material order and a place for everyone. called social order, ensures that there is no hindrance in the activity going on in the organisation.

(v) Centralisation and Decentralisation
The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation. According to Fayol, an organisation should strive to achieve a proper balance between centralisation and decentalisation according to size of organisation, ability of superiors, ability of subordinates, etc.
In general large organisations have more decentralisation than small organisations.

(vi) Initiative
Fayol suggested that employees at all levels should take Initiatives or actions without any force or boundations. They should be encouraged to develop and carry out plans for improvements. Initiative means taking the first step with self-motivation.
This will help to motivate them and they will work hard for the betterment of the organisation.

Business environment refers to all the external forces including economic, political, social, technological and legal that affect the performance of a business organisation. It is the sum total of all the individuals, the control of a business enterprise but has the power to affect its performance. The features of the business environment are explained below:
a. Business environment includes all the forces, factors and Institutions which can directly or indirectly affect the performance of the business. It is an aggregate of all the external forces. 
b. All the forces and the factors which can affect the business organisation are interrelated to each other. 
c. The business environment is dynamic in nature. It is flexible and constantly changing. For example, the taste and preferences of the customers continue to change. 
d. The business environment is uncertain in nature. It is not easy to predict the future.
e. It is relative in nature. It differs from a region to another region. For example, the political conditions may differ from one region to another.
f. The business environment is the aggregate of various forces. This makes it complex and difficult to understand. It is easier to understand the effect of the individual forces but not of the aggregate forces. 
Specific environment and general environment: 
Specific environment refers to those external forces that affect an organisation directly. These are specific to a particular organisation. For example, a delay in the supply of raw material from the supplier directly affects the production of the company. 
General environment refers to those external forces which affect all the organizations. They do not have any effect on a particular organisation. For example, a change in the political condition that affect all the companies.