CS FOUNDATION
ALL IMPORTANT DEFINITIONS & CONCEPTS
UNDER ONE ROOF UNIQUE ACADEMY
BUSINESS MANAGEMENT,ETHICS
& ENTREPRENEURSHIP
BY
CS SHUBHAM MODI
UNIQUE ACADEMY
ALL DEFINITIONS UNDER ONE ROOF
PART A BUSINESS MANAGEMENT
LESSON 1: Nature of Management and its Process
Sr.No Author’s Name Definition
1 Stephen R. Covey Management is efficiency in climbing the ladder of
success; leadership determines whether the ladder is
leaning against the right wall.
2 HickSSSSS Management: “the process of getting things done by
the people and through the people”.
3 Koontz and Managementmeans, “Getting things done through
O’DonnellS and with people”.
4 Henry Fayol Management:“To Manage is to forecast, and to
plan, to organize, to command and to coordinate”.
5 Haimann “Management is the function of getting things done
through people and directing the effortsofindividuals
towards a common objective”.
6 Frederick Taylor Frederick Taylor–Known as Father of Scientific
Management.
The goal of Frederick Taylor’sscientific management
was to use systematic study to find the ‘one best
way’ of doing each task. To dothat, managers must
follow the four principles:
1. First, ‘develop a science’ for each element of
work. Study it. Analyse it. Determine the ‘one
best way’ to dothe work.
2. Second, scientifically select, train, teach and
develop workers to help them reach their full
potential.Before Taylor, supervisors often
hired on the basis of favouritism and
nepotism.
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Sr.No Author’s Name Definition
3. Third, cooperate with employees to ensure
implementation of the scientific principles.
4. The fourth principle of scientific management
was to divide the work and the responsibility
equally betweenmanagement and workers.
7 Fayol Fayol suggested the following fourteenprinciples of
management:
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination
7. Remuneration
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Espirit de Corps.
8 Henry Mintzberg MANAGERIAL ROLES
published a now- 1. INTERPERSONAL- Figurehead, Leader, Liaison
classic book called 2.INFORMATIONAL-
The Nature of Monitor,Disseminator,Spokesperson
Managerial Work 3. DECISIONAL- Entrepreneur, Disturbance handler,
Resource allocator, Negotiator
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LESSON 2: Planning
Sr.No Author’s Name Definition
1 Philip Kotler Planning means deciding in the present what to do in
the future. It is the process whereby
companiesreconcile their resources with their
objectives and opportunities.
2 George R. Terry Planning is the selecting and relating of facts and the
making and using ofassumptions regarding the
future in the visualization and formulation of
proposed activities believed necessaryto achieve
desired results.
3 Anthony defines strategies as resulting from: “the process of
deciding on objectives ofthe organization, on
changes in these objectives, on the resources used to
attain these objectives, and on thepolicies that are to
govern the acquisition, use and disposition of these
resources”.
4 Chandler Strategies: “the determination of the basic long-
term goals and objectives of an enterprise, and the
adoption of coursesof action and the allocation of
resources necessary to carry out these goals”.
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LESSON 3: Organizing
Sr.No Author’s Name Definition
1 Kast and Organization structure is the pattern of relationships
Rosenzweig among the component parts of the organization.
2 Fayol Authority:“the right to give orders and exact
obedience”, and viewed this as official authority.
Fayol defined authority as “the right to give orders
and exact obedience
Mooney1 described authority as “the supreme
coordinating power”
3 Barnard Barnard viewed informal organisation as joint
personal activity without being conscious of the joint
purpose,even though possibly contributing to joint
results.
4 Keith Davis Keith Davis regards informal organisation as the
network of personal and social relationships which is
notestablished or required by formal organisation.
Thus informal organisation comprises of the whole
set of customs,social norms and ideas by which
people are influenced.
5 Peter F. Drucker Peter F. Drucker also views organisation asa means
to the end of business performance and results.
6 Larry E. Greiner Organisational growth:Larry E. Greiner says Each
evolutionary period is characterised by the
dominantmanagement style used to achieve growth,
while each revolutionary period is characterised by
the dominantmanagement problem that must be
solved before growth will continue.
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LESSON 4: Human Resource Management
Sr.No Author’s Name Definition
1 Byars and Rue Human Resource Management encompasses those
activities designed to provide for and coordinate the
human resources of an organization.
2 Definitions of “Human Resource Management is that part of
Human Resource management which is concerned with people at
Management work andwith their relationship with an enterprise.
Its aim is to bring together and develop into effective
organizationthe men and women who make up an
enterprise and having regard for the well-bring of
the individual and ofworking groups, to enable them
to make their best contribution to its success”.
3 Definitions of Human Resources may be defined as the total
Human Resource knowledge, skills, creative abilities, talents and
aptitudesof an organization’s workforce, as well as
the values, attitudes, approaches and beliefs of the
individuals involvedin the affairs of the organization.
It is the sum total or aggregate of inherent abilities,
acquired knowledge andskills represented by the
talent and aptitudes of the persons employed in an
organization.
4 Leon C. Megginson “From the national point of view, human resources
may be defined asknowledge, skills, creative abilities,
talents and aptitudes obtained in the population;
whereas from the viewpointof the individual
enterprise, they represent the total of the inherent
abilities, acquired knowledge and skills asexemplified
in the talents and aptitudes of its employees.”
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5 Jucius Michael He calls these resources, ‘human factors’, which
refer to “a whole consisting of inter-related,
interdependentand interacting physiological,
psychological, sociological and ethical components.”
Thus, human resources are multi-dimensional in
nature.
6 French Wendell Personnel Management is the recruitment,
selection, development, utilization,compensation
and motivation of human resources by the
organization.
7 Edwin B. Flippo Personnel Management is the planning, organizing,
directing, and controlling ofthe procurement,
development, resources to the end that individual
and societal objectives are accomplished.
8 G.R. Terry The personnel function cannot be turned on and off
like water from a faucet; it cannot be practiced only
one hour each day or one day a week. Personnel
management requires a constant alertness and
awareness of human relations and their importance
in everyday operations.
9 Dirks The objectives of personnel administration include
the utilization of human resourceseffectively,
establishment and maintenance of productive and
self-respecting working relationships among
theparticipants and attainment of maximum
individual development of the members in the
organization.
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Sr.No Author’s Name Definition
10 Indian Institute of Personnel management aims to achieve
Personnel bothefficiency and justice, neither of which can be
Management pursued successfully without the other. It seeks to
bring togetherand develop into an effective
organization the men and women who make up an
enterprise, enabling each tomake his or her own best
contribution to its success both as an individual and
as a member of a working group.It seeks to provide
fair terms and conditions of employment and
satisfying work for those employed.
11 Edwin B. Recruitment is the process of searching the
Flippo candidates or employment and stimulating them to
applyfor jobs in the organization.It is a linking activity
that brings together those offering jobs and those
seeking jobs.
12 Dale S. Beach Recruitment is the development and maintenance of
adequate manpower resources.It involves the
creation of a pool of available labour upon whom the
organization can draw when it needsadditional
employees.
13 Dale Yoder Performance appraisalincludes all formal
procedures used to evaluate personalities and
contributions and potentials of group membersin a
working organization. It is a continuous process to
secure information necessary for making correct and
objective decisions on employees.
14 Peter Drucker It wasPeter Drucker who proposed goal setting
started and Douglas approach to performance appraisal which he called
Mc.Gregor ‘Management by Objectives and Self Control’. This
strengthened approach was further strengthened by Douglas
Mc.Gregor
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LESSON 5: Direction and Co-ordination
Sr.No Author’s Name Definition
1 Urwick and Brech Directing is the guidance, the inspiration, the
leadership of those men and women that
constitutethe real core of the responsibilities of
management.
2 McFarland Coordination is the process whereby an executive
develops an orderly pattern of group efforts among
hissubordinates and secures unity of action in the
pursuit of a common purpose.
3 George R. Terry and Supervisionis guiding and directing efforts of
Stephen G. Franklin employees and other resources to accomplish stated
work outputs.
4 Chester Bernard Chester Bernard recognized the willingness to work
or cooperateas an important element in the success
of an organization. It is the responsibility of
management of any enterprise to “build into the
entire system factors that willinduce people to
contribute as effectively and efficiently as possible. A
manager does this by building into everypossible
aspect of the organizational climate those things
which will cause people to act in desired ways”.
5 Eric Berne A transaction is the unit of social intercourse. When
two or more people encounter oneanother, sooner
or later one, of them will speak or give some
indication of acknowledging their presence. This
iscalled transactional stimulus.
The other person will then say or do something
which is in some way related to thestimulus, and
that is called transactional response.
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Sr.No Author’s Name Definition
Transactional analysis is the method of examining
the socialintercourse of this type. It helps in finding
out ‘why people do as they do’ by determining which
part of the multiplenatured individuals is being
activated in any transaction.
6 Keith Davis Leadership is the ability to persuade others to seek
defined objectives enthusiastically.It is the human
factor which binds a group together and motivates it
towards goals.
7 Mooney and Reelay Co-ordination is orderly arrangement of group
efforts to provide unity of action in the pursuit of
common goals.
8 Charles Worth Co-ordination is the integration of several parts into
an orderly hole to achieve the purpose of
understanding.
9 Brech Co-ordination is balancing and keeping together the
team by ensuring suitable allocation of tasks to the
variousmembers and seeing that the tasks are
performed with the harmony among the members
themselves.
10 Mary The first test of a business administration should be
Parker Follett whether you have a business with all its parts so
coordinated,so moving together in their closely knit
and adjusting activities, so linking, inter-locking,
inter-relating, that theymake a working unit that is
not a congenic of separate pieces, but a functional
whole or integrated unit.
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Sr.No Author’s Name Definition
11 Mary Parker Follett Co-ordinating is the “Plus-value of the group”.That
is, if there is good coordinatingbetween the groups
then the combined achievement of the groups will
be greater than the total of theachievement of the
individual group, i.e. 3+2=6. This is impossible in the
physical world, but it is possible inhuman affairs
through co-ordinating.
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LESSON 6: Controlling
Sr.No Author’s Name Definition
1 Koontz and The managerial control implies the measurement of
O’Donnell accomplishment against the standard and the
correctionof deviation to assure attainment of
objectives according to plans.
2 Dale Henning Control is the process of bringing about conformity
of performance with planned action.
3 The Institute of Cost defines a budget as “a financial and/or quantitative
and Management statement prepared prior to a defined period of time
Accountants of of the policy to be pushed during that periodfor the
England and Wales purpose of attaining a good objective”.
4 The Institute of Cost definedbudgetary control as “theestablishment of
and Management objectives relating to the responsibilities of
Accountants of executives to the requirements of a policy and
England and Wales thecontinuous comparison of actual with budgeted
results, either to secure by individual action the
objective of thatpolicy or to provide a basis for its
revision”.
5 Koontz and Budgets correlate planningand allow authority to be
O’Donnel delegated without loss of control.
6 Koontz, O’Donnell “Every objective, every goal of the many planning
and Weihrich programmes,every policy, every procedure, and
every budget become standards against which actual
or expected performancemight be measured.”
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LESSON 7: Recent Trends in Management
Sr.No Author’s Name Definition
1 Charles Kettering The world hates change, yet that is the only thing
that has brought progress.
2 Venette Crisis is a process of transformation where the old
system can no longer be maintained.
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PART B BUSINESS ETHICS
LESSON 8: BUSINESS ETHICS
Sr.No Author’s Name Definition
1 Wheeler Business Ethics is an art and science for maintaining
harmonious relationship with society,its various
groups and institutions as well as reorganizing the
moral responsibility for the rightness and wrongness
of business conduct.
2 Rogene. A. Buchholz Business ethics refers to right or wrong behaviour in
business decisions.
3 School of Distance Business ethics is primarily concerned with those
Education issues not covered by the law, or wherethere is no
definite consensus on whether something is right or
wrong.
4 Cantt, J. S.Mill, Principles of business ethics:
Herbert Spencer,
Plato, Thomas 1. Sacredness of means and ends
Garret, Woodrad, 2. Not to do any evil
Wilson 3. Principle of proportionality
4. Non co-operation in evils
5. Co-operation with others
6. Publicity
7. Equivalent price
8. Universal value
9. Human dignity
10. Non-violence
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PART CBUSINESS COMMUNICATION
LESSON 9: Business Communication
Sr.No Author’s Name Definition
1 Sydney J. Harris The two words ‘information’ and ‘communication’
are often used interchangeably, but they signify
quitedifferent things. Information is giving out;
communication is getting through.
2 Webster’s Communicationis the act of exchanging information
dictionary and understandingfrom one person to another.
3 Scott Administrativecommunication is a process which
involves the transmission and accurate replication of
ideas ensured byfeedback for the purpose of eliciting
action which will accomplish organization goals.
4 Seven C’s of Correctness of Facts
Effective Clarity of Expression
Communication Conciseness of message
Completeness of information
Consideration for the receiver
Concreteness in presentation
Courtesy towards recipient
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LESSON 10: Essentials of Good English
Sr.No Author’s Name Definition
1 Derek Walcott The English language is nobody’s special property. It
is the property of the imagination: it is the property
ofthe language itself.
2 Definition of A shortened form of a word or phrase used for
Abbreviation brevity in its place consisting of the first letter, or the
first fewletters of the word, followed by a period (full
stop).
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LESSON 11: Business Correspondence
Sr.No Author’s Name Definition
1 John Kotter Good communication does not mean that you have
to speak in perfectly formed sentences and
paragraphs. It isn’t about slickness.Simple and clear
go a lang way.
2 Peter Drucker in “Enterprises are paid to create wealth, not to control
Management costs. But first year accounting students are taught
Challenges for the thatthe balance sheet portrays the liquidation value
21st century of the enterprise and provides creditors with the
worst-caseinformation”.
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PART D ENTREPRENEURSHIP
LESSON 14: ENTREPRENEURSHIP
Sr.No Author’s Name Definition
1 A Student in Enterprise is living a few years of your life like most
Warren G. Tracy’s people won’t so you can spend the rest of your life
Class likemost people don’t.
2 Definition of Entrepreneurship is defined as the process of making
Entrepreneurship money, earning profits and increasing the wealth
whileposing characteristics such as risk taking,
management, leadership and innovation.
3 Cantillon Cantillon referred entrepreneurs as one of the
classes of ‘landowners’ who are financially
independent aristocrats.For him; individuals who
purchased a good at a certain price, used that good
to produce a product and then soldthat product at
an uncertain price could be considered
‘entrepreneurs’.
4 Schumpeter Schumpeter viewed entrepreneurship as a force
of“creative destruction.”
5 Schumpeter The entrepreneurship is essentially a creative activity
or it is an innovative function.
6 Peter P Drucker Entrepreneurship is neither a science nor an art. It is
a practice. It is knowledge based. Knowledge
inentrepreneurship is a means to an end, that is, by
the practice.
Describing the entrepreneur as someone who
actually searches for change, responds to it, and
exploits those changes as an opportunity
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Sr.No Author’s Name Definition
7 Confucius Choose a job that you like and you will never have to
work a day in your life.
8 Maslow What a man can be, he must be. This need we call
self actualization.
9 Hilaire Belloc I have wandered all my life, and I have also traveled;
the difference between the two being this, that we
wanderfor distraction, but we travel for fulfillment.
10 Jane Austen quotes A large income is the best recipe for happiness I ever
heard of.
11 Napoleon Hill Your real boss is the one who walks around under
your hat.
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LESSON 15: Entrepreneurship – Creativity and Innovation
Sr.No Author’s Name Definition
1 Jack Welch People always overestimate how complex business
is. This isn’t rocket science; we’ve chosen one of the
world’s more simple professions.
2 Albert S Humphrey SWOT Analysis: IE MATRIX
in the 1960s Strengths, Weaknesses, Opportunities, and Threats.
3 PESTLE ANALYSIS PESTLE stands for - Political, Economic, Sociological,
Technological, Legal, and Environmental.
(Generic orientation tool)
4 PORTER’S Porter’s Five Forces Analysis:
APPROACH TO 1. Supplier Power
INDUSTRY ANALYSIS 2. Buyer Power
3. Competitive Rivalry
4. Threat of Substitution
5. Threat of New Entry
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LESSON 16: Growth & Challenges of Entrepreneurial Venture
Sr.No Author’s Name Definition
1 Stewart B. Johnson Our business in life is not to get ahead of others, but
to get ahead of ourselves — to break our own
records,to outstrip our yesterday by our today.
2 Alfred Marshall The necessity of entrepreneurship for production
was first formally recognized by Alfred Marshall in
1890.
3 Alfred Marshall There are four factors of production:
land, labour,capital and organization.
4 Alfred Marshall Marshall claimsthat the abilities of entrepreneur are
“so great and so numerous that very few people can
exhibit them in all in avery high degree”.
5 Kirzner process of innovation is actually of
spontaneous“undeliberate learning”.
6 Peter F. Drucker innovation is a means by which entrepreneurs
exploit change as anopportunity for a different
business or a different service.
7 McClelland McClelland emphasizes that achievement orientation
is the prime factor thatexplains economic behavior
of entrepreneurs.
8 Peter Drucker Entrepreneurship is neither a science nor anart. It is
a practice. It has a knowledge base. Knowledge in
entrepreneurship is a means to an end.Indeed, what
constitute knowledge in practice is largely defined by
the ends, that is, by the practice.
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Sr.No Author’s Name Definition
9 As the Business and “Policies to foster entrepreneurship are essential to
Industry Advisory job creation and economic growth.” Government
Committee to the officials can provide incentives that encourage
Organization for entrepreneurs to risk attempting new
Economic ventures.Among these are laws to enforce property
Cooperation and rights and to encourage a competitive market
Development system.
(OECD) said in 2003
10 Knight claims that an entrepreneur will be able to bear the
risk of a new venture if he believes that there is a
significant chance of profits.
11. Paul H.Wilken in his Initial Expansion
work, Subsequent Expansion
‘Entrepreneurship – Factor Innovation-
a comparative and (Financial,Labour,Material)
historical study’ lists
the following Production Innovation-
innovations by (Technological,Organosational)
changes brought
out by Market Innovations
entrepreneurs: (Product,Market)
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LESSON 17: Social Entrepreneurship
Sr.No Author’s Name Definition
1 Greg Dees Social entrepreneurs are individuals with innovative
solutions to society’s most pressing social problems.
Theyare ambitious and persistent, tackling major
social issues and offering new ideas for wide-scale
change.
Historical Examples of Leading Social Entrepreneurs
2. Susan B. Anthony Fought for Women’s Rights in the United States
(U.S.):
3 Vinoba Bhave Founder and leader of the Land Gift Movement-
(India) redistribution of more than 7,000,000 acres of land
to aid India’s untouchables and landless.
4. Dr. Maria Developed the Montessori approach to early
Montessori (Italy): childhood education
5. Florence Founder of modern nursing, she established the first
Nightingale (U.K.): school for nurses and fought to improve hospital
conditions.
6. Margaret Sanger Founder of the Planned Parenthood Federation of
(U.S.) America, she led the movement for family planning
efforts around the world.
7. John Muir (U.S.) Naturalist and conservationist, he established the
National Park System and helped found The Sierra
Club.
8. Jean Monnet Responsible for the reconstruction of the French
(France) economy following World War II, including the
establishment of the European Coal and Steel
Community (ECSC).
9. The Bill & Melinda Issued loan guarantees
Gates Foundation
10. Social Impact Bonds Launched in the UK in 2010
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