It is true that management is an art because of the following reasons:
(i) It has a systematised body of knowledge consisting of principles, concepts and vocabulary which forms the basis of the art.
(ii) The practice of management principles differs from individual to individual, giving rise to different styles of management.
(iii) Management involves practice and creativity for finding solutions to complex managerial problems.

Business environment is not static and it keeps on changing. These changes are so fast and effective that a company has to scan its environment in order to survive in the long-run.
For example,
(i) Flat Screen TVs are replaced by LCDs and LEDs, is an example of technological change.
(ii) Shift towards health consciousness, leading to more healthy options food items, fitness equipment, etc, are examples of social change.
(iii) More impetus for development of communication and information technology is an example of political factor.

Yes, by understanding the business environment it becomes easy for a company to maintain good image in the market. As the company produces goods according to the need of the customer and after proper scanning of the environment, they are able to adopt the changes ads per the requirement, which help them in improving performances also.

Study of management principles is necessary due to the following reasons:
(i) They provide useful insights to managers.
(ii) Principles help managers to secure optimum utilisation of resources.
(iii) It helps in taking scientific decisions.
(iv) Management principle help in fulfilling social responsibilities.

Study of management principles is necessary due to the following reasons:
(i) They provide useful insights to managers.
(ii) Principles help managers to secure optimum utilisation of resources.
(iii) It helps in taking scientific decisions.
(iv) Management principle help in fulfilling social responsibilities.

Impact of LPG (Liberalisation, Privatisation, and Globalisation) Policy Changes on Business and Industry
The policy of liberalisation, privatisation, and globalisation of the government has made a significant impact on the working of enterprises in business and industry. They have become more customer focused and have adopted measures to improve customer relationship and satisfaction.
Following are some of the challenges faced by the business and industries.
1. Increasing Competition
Changes in the rules of industrial licensing and entry of foreign firms, has increased the competition for Indian firms especially in service industries such as banking, communication, health, etc.
2. More Demanding Customers
Due to increase in competition, wider choice of products is available in the market.As a result, customers are becoming more choosy.He is now regarded as the 'King of the market'.
3. Rapidly Changing Technological Environment
Increased competition in market forces the firms to develop new ways to survive and grow in market.Due to this, smaller firms face tough challenges for transformations in processes, technology, machines, and products.
4. Necessity for Change
Rapid change in the market forces the enterprises to continuously modify their operations.
5. Need for Developing Human Resource
The new market conditions require people with higher competence and greater commitment. Thus, the need to develop human resource is increasing.
6. Market Orientation
Earlier firms used to produce first and then sell goods in the market. But now, in the fast changing world, production-oriented technique is changed to market orientation, where firms study and analyse the market first and produce goods accordingly.
7. Loss of Budgetary Support to the Public Sector
The central government's budgetary support for financing the public sector outlays has declined over the years.
Public sector undertakings have realised that in order to survive, they will have to develop their own resources and be more efficient.

Dimension of business environment are as follows:
(a) Political Environment
In includes political condition of the country and attitude of the government towards business policy.
(b) Economic environment
In includes economic factors like inflation, interest rates, tax rates, GDP etc that affect business enterprises.
(c) Social environment 
It consists of all the social forces within which business operates such as trends, customs, and traditions.
(d) Legal environment
It includes legislation passed by the courts, government, commissions and administrative bodies.

(i) Time Study
It determines the standard time taken to perform a well-defined job. Time measuring devices were used to conduct this study. This type of study is helpful in deciding the time required to perform a job. It also helps in determining incentive schemes and labour costs.
(ii) Motion Study
Motion Study refers to an in-depth study of movements of a worker while doing a task. Taylor recognised three types of movements:
(a) Productive   (b) UnProductive   (c) Incidental
The objective of motion study is to eliminate unproductive movements in doing a task to achieve efficiency and reduce the time required to do the task. for this, Taylor used stopwatches and various colours and symbols to idntify productive and unproductive movements of the employees.
(iii) Fatigue Study
Fatigue study seeks to find out the amount and frequency of rest intervals to be given to workers in completing task. This would help the worker to regain his stamina and work with the same efficiency again. It also aims to reduce various causes of fatigue such as long working hours, doing unsuitable work, bad working conditions, etc. The objective of this study is to find out how long a person can perform the standard task without any adverse effects on his health and productivity.
(iv) Method Study
This technique of scientific management is conducted to find out the 'one best method or way' of performing a particular task. The objective of this study is to minimise the cost of production and maximise the quality and satisfaction of the customer.
For this, techniques such as process charts and operations research are used.
(v) Simplification and Standardisation of work
Standardisation is the process of setting standards for every business activity, process, raw materials, time, machinery and methods, to achieve efficiency.
Standardisation of product implies that the size, design, quality, shape, etc of the product should meet the requirements and tastes of consumers.
The objective of standardisation are:
(i) To maintain quality standards.
(ii) To set up performance standards of men and machines.
(iii) To provide interchangeability of manufactured parts and products.
(iv) To achieve target production in pre-determined time. simplification means eliminating superfluous sizes, varieties and dimensions. Its aim is to:
(a) Eliminate unnecessary diversity of products and thereby reduce costs.
(b) Help in achieving economy in the use of required machines and tools.