Principles of Management 2 Mark Questions

1. Definition 0f management? Management is the art and science of getting work done through people. It is the process of giving direction and controlling of various activities of people to achieve the objectives of organization. KOONTZ & WEIHRICH Management is the process of designing and maintaining of an environment in which individuals working together in groups effectively accomplish selected aims. F.W.TAYLOR Management is the art of knowing what do you want to do and then seeing that is done in the best cheapest way. 2. Skills needed for managers: Technical skill 1. It refers to the ability to the tools e!uipment procedure and techni!ues. ". #ffective supervision and co$ordination of the work a group members or subordinates. Human skill 1. It refers to the ability of the manager to work effectively as a group members and to build co$operative effort in team leaders. ". %eeded to understand people. Concep ual skill 1. It is also called as design and problem ". &o see the organization and the various component of it as whole '. &o understand how its various parts and functions mesh together 3. Different approaches of management 1. (ystem approach ". )ontingency approach

!"s em app#oach In #o$uc ion *ike a human organism an organization in a system. In an organization also people task and management are independent. !"s em concep s (ystem theory was first applied in field of science and engineering. Con in%enc" app#oach &he )ontingency approach is called as situational approach. It is developed by managers consultant and researchers who tried to apply for real life situation. (ome management concepts are different and are very effectively in one situation. &he same concept is failed in another situation. +esults or solutions differ because situations differ. In this approach the managers identify which is suitable techni!ue for a particular solution. ,articular environment of the organization at a specific time. . !omparison "et#een art and science. !cience& It is a systematic body of knowledge with array of principles. A# & 1. It is the application of skill in finding desired results. ". Management is both science and art'. It contains general principle .. It also an art because it re!uire certain personal skills to achieve desired result. $. %unctions of management 1. ,lanning ". /rganizing '. (taffing .. )o 0 ordinating 1. )ontrolling

&. Management le'el and functions. 1. &op$level management ". Middle level management '. *ower level management Top le'el mana%emen (unc ions 1. &o formulate goals and policies ". &o formulate budgets '. &o appoint top e2ecutives )i$$le le'el mana%emen (unc ions. 1. &o train motives 3develop supervisory level ". &o monitor and control the operations performance Lo* le'el mana%emen 1. &o train 3develop workers ". &o assign job '. &o give orders and instructions .. &o report the information about the workers (. )hat to *ou mean "* social responsi"ilit*+ social responsi'eness. )orporate social responsibility is seriously considering the impact of the company4s action on society. (ocial responsiveness means the ability of a corporation to relate its operations 3 policies to the social environment in ways that are mutually beneficial to the company and to society. ,. )hat is institutionali-ing ethics+ ho# it can "e accomplished? Institutionalizing ethics means applying 3 integrating ethical concepts in to daily actions. &his can be accomplished in three ways. 1. 5y establishing appropriate company policy or a code of ethics ". 5y using a formally appointed ethics committee '. 5y teaching ethics in management development programs

.. )hat is ethics? )hat are the t*pes of ethics e/plain? #thics is defined as the discipline dealing with what is good 3 bad and with moral duty 3 obligation. &he three types of ethics are. +e#sonal e hics& &he rules by which an individual lives his or her personal life. Accoun in% e hics& &he code that guides the professional conduct of accountants. ,usiness e hics& )oncerned with truth3 justice 3 has a variety of aspects such as e2pectations of society. 6air competition advertising public relations social responsibility consumer autonomy 3 co$operate behavior. 10. )hat are the arguments against the social in'ol'ement of "usiness? 1. (ocial involvement may reduce economic efficiency. ". (ocial involvement would create e2cessive costs for business which cannot commit its resources for social action. '. (ocial involvement can weaken the international balance of payment. .. it may leads to the hike in prices of the commodities 1. Incomplete support for involvement in social action 33disagreement among groups will cause friction. 7. &here is a link of accountability of business to society. 11. )hat is to#s metrics? &he tows metrics is a conceptual frame work for a systematic analysis which facilitates matching the e2ternal threats and opportunities with the internal weakness 3 strength of the organization. In the tows metrics 8&4 stands for threat4s4 stands for opportunities 894 for weakness and 8(4 for strength.

12. Defining planning premises? ,lanning premises are defined as the anticipated environment in which plans are e2pected to operate. &hey include assumptions or forecasts of the future 3 known conditions that will effects the operation of plans. 13. 0ist out the social responsi"ilities of managers? +esponsibilities towards share holders. +esponsibilities towards employees creditors government suppliers.

competitors general public

1 . )hat is social audit? (ocial audit involves a commitment to systematic assessment of the company4s main activities that have a social impact reporting to the society on relevant issues. #very voluntary social program ends with a social audit social encompasses every possible area such as pollution control training 3 development promotion of minorities 3 so on. 1$. Define code of ethics? : code is a statement of policies principles or rules that guide behaviors codes of ethics should guide the behavior of persons in all organizations 3 in every day of life. 1&. 0ist out the functions of ethics committee 1. ;olding regular meeting to discuss ethical issues. ". <ealing with 8gray areas4 '. )ommunicating the code to all members of organization. .. )hecking for possible violations of the code 1. #nforcing the code.

1( #hat is planning? ,lanning is a process of selecting the objectives 3 determining the course of action re!uired to achieve these objectives. 1,. 1mportant o"ser'ations su"2ected a"out planning? 1. ,lanning is obtaining a future course of action in order to achieve an objective. ". ,lanning is looking ahead. '. ,lanning is getting ready to do something tomorrow. .. ,lan is a trap laid down to capture the future. 1.. Define mission? Mission may be defines as a statement which defines the role that an organization plays in the society. 20. Define policies? ,olicies are general statement or understanding which provides guidance in decisions making to various managers. 21. 3/plain in "rief a"out the t#o approaches in #hich the hierarch* of o"2ecti'es can "e e/plained? &here are two approaches in which the hierarchy can be e2plained. 1. top$down approach ". bottom$up approach in the top$down approach the total organization is directed through corporate objective provided by the top$level management. In the bottom up approach the top level management needs to have information from lower level in the form of objectives. 22. 4d'antages of o"2ecti'es: 1. =nified planning ". <efining an organization '. <irection

.. Individual motivation 1. 5asis for decentralization 7. 5asis for control >. )o$ordination 23. Steps in'ol'ed in M56 process: 1. setting preliminary objectives ". fi2ing key result areas '. setting subordinates objectives .. matching resources with objectives 1. recycling objectives 7. ,eriodic resources with objectives. >. :ppraisal 2 . features of M56: 1. M5/ tries to combine the long range goals of organization with short range of organization. ". M5/ involves participation of subordinate managers in the goal setting process. '. M5/ increase the organization capability of achieving goals. .. M5/4( emphasis is not only on goals but also on effective performance. 2$. Definitions of M56: :ccording to ?#/+?# /<I/+%# M5/ is a process where by the superior and the subordinates managers of an enterprise jointly identify its common goals define each individuals major areas of responsibility in terms of results e2pected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members. KOONTZ &WEIHRICH ha'e $e(ines ),O as (ollo*s& M5/ is comprehensive managerial system that integrates many key managerial activities in a systematic manner 3 that is consciously directed towards the effective and efficient achievement of organizational and individual objectives.

2&. Define strateg*? : strategy may be defined as special type of plan prepared for meeting the challenges posted by the activities o competitors and other environment forces. 2(. Steps in'ol'ed in strategic planning: 1. Mission and objectives. ". #nvironmental analysis '. )orporate analysis .. Identification of alternatives. 1. (trategic decision making 7. Implementations review 3 control. 2,. State the characteristic of a sound polic*? 1. +elationship to organizational objectives. ". )larity of policy '. : policy is a guide to thinking in decision making .. ,olicies should be written 1. )ommunication of policies 7. 5alance of policies. >. ,lanned formulation. 2.. 0ist out the steps in'ol'ed in formulation of policies: 1. <efining the policy area ". <efining of policy alternatives. '. #valuation of policy alternatives. .. )hoice of policy 1. )ommunication of policy 7. Implementation of policy >. +eview of policy

30. 7ame the classification of planning premises? 1. Internal and e2ternal ". &angible and intangible premises. '. )ontrollable and uncontrollable premises 31. State the importance of 89M? 1. &o achieve competitive advantage over other organisation. ". &o improve the efficiency of the organisation. '. 6or the fuller utilization of available resources. .. )ost effective administration. 32. State the importance of staffing:: 1. It helps to make use of the /rganisational resources. ". It provides effective and efficient personals to the organisation. '. ;elps to discover talented and competent persons. .. ;elps to ensure uninterrupted flow of business. 33. 4d'antages of 6rganisational !hart:: 1. It shows the overview of staffing in organisation. ". &he manager ready for promotion can be identified. '. ;elps to predict future internal supply of managers. .. ;elps in transfer of manager internally to strengthen weak areas. 3 . 0ist some factors affecting span of control 1. (ubordinates training re!uirement. ". )larity of delegation of authority. '. )larity of plans. .. =se of objectives and standards. 3$. !ross 9elationship

It arises because of mutual interaction of subordinates working under common superior normally they are assuming this to be 7. 3&. !lassification of po#er 1. &he legitimate power ". #2pert power '. +eference power .. +eward power 3(. Define Decision Making <ecision Making is defined as selection of a course of action from among alternatives. It is a core of planning. : plan cannot be said to e2ist unless a decision 0 a commitment of resources direction or reputation has been made. =ntil that point there is only planning studies and analysis. 3,. )hat are the three approaches in selecting an alternati'e? 1. #2perience ". #2perimentation '. +esearch and :nalysis 3.. Define Decision trees? &he best way to analyze a decision is by means of decision trees. In a decision tree the various chance events decision points and probabilities involved in various courses that might be undertaken are represented in the form of a 8tree4. &he decision tree approach makes it possible to see the major alternatives and facts that subse!uent decision may depend upon. 0. 7eed of Departmentisation:: (pecialisation of works and the limitation of number of subordinates that can be directly controlled by superior. If there is no departmentisation there is a serious limitation of size of the organisation.

1. )hat is Departmentisation? <epartmentisation is a process of grouping the activity based on its similarities. 2. )hat are the t*pes of Departmentisation 1. 5y simple numbers. ". <epartmentisation by time. '. <epartmentisation based on enterprise. .. )lassification based on territory or geographical area. 1. <epartmentisation by products. 7. )ustomer <epartmentisation. >. Market oriented <epartmentisation. @. ,rocess or #!uipment. 3. )hat are the three "asic approaches to select among alternati'es? 1. #2perience ". #2perimentation '. +esearch and :nalysis E-pe#ience& +elying on post e2perience the choice among alternatives is selected to avoid mistakes. E-pe#imen a ion& : firm may test a new product in a certain market before e2panding its sale nationwide. Resea#ch an$ Anal"sis& &he trend in research and analysis is simulation i.e. to develop mathematical tools. . )hat is cost 3ffecti'eness 4nal*sis? )ost effectiveness :nalysis is a techni!ue for choosing the best plan when the objectives are less specific than sales costs or profits. It means finding the least costly

way of reaching an objective or getting the greatest value for giving e2periences. It is also called as )ost 5enefit :nalysis. $. )hat is the principle of limiting factor? ,rinciple of limiting factor is given as 5y recognizing and overcoming those factors that stand critically in the way of a goal the best alternative course of action can be selected. &. Define 6rganising? /rganising is an activity involves in analyzing the nature of job to be performed grouping them dividing into departments divisions selections and that can be assigned to various individuals and delicate authority to carry out the task. (. Define Decentralisation? &he tendency to discuss the decision making in an organisation structure. &he fundamental aspect of <ecentralisation is delectation of authority. ,. 4d'antages of Decentralisation? 1. It is a big relief to top managers. ". It encourages the decision making. '. It promotes the development of general manager. .. 6acilitates product diversification. .. Define Scalar Principle:: &he clear the line of authority from the ultimate management position in an enterprise to every subordinate position the clear will be the responsibility for decision making and the more will be effective will be the organisation communication. $0. Define Polic*

,olicy of <ecentralisation affects all area of management and it can be looked upon an essential element of managerial system. Managers could not use the discursion to handle the ever changing situation they face. $1. )hat is 6rganisation Structure? In organisation structure simply by means the systematic arrangement of people working for the organisation. &he organisation is concerned with establishment of positions and relationship between positions. &he organisation structure has two dimensions. 1. ;orizontal ". Aertical $2. )hat do *ou mean "* 6rganisation !ulture? It is the general pattern of behavior norms shared beliefs and values there are uni!ue for organisation. It is fairly stable and does not change fast. It often sets the tone for the company and establishes implied rules for the way people should behave. /rganisation culture even influences how individuals behave at work and hence will affect both individual and /rganisational performances.

$3. 5enefits of Decentrali-ation:: 1. ?ives managers more freedom and independence in decision making. ". It encourages decision making and assumption of authority and responsibility. '. :ids in adoption to fast changing environment. .. ,romotes development of general managers. 1. 6acilitates product <iversification. 7. ,romotes establishment and use of broad controls which may increase motivation. $ . ;ses of 6rganisation !hart 1. &he organisation chart pinpoints the weakness of an organisation. &his will helps to overcome the short coming of organisation.

". It tells !uickly who is responsible for particular function. '. It is useful in showing nature of an organisation and changes if any in the e2isting staff and new comers. $$. )hat are the t*pes of Departmentation? 1. <epartmentation by simple numbers. ". <epartmentation by &ime. '. <epartmentation by #nterprise function. .. <epartmentation by &erritory or ?eography. 1. )ustomer <epartmentation. 7. ,rocess or #!uipment <epartmentation. >. <epartmentation by product. $&. Distinguish "et#een authorit* and po#er ,ower is the ability of individuals or groups to induce r influence the belifs or actions of other persons or groups. :uthority in organisation is the right in a position to e2ercise discretion in making decisions and affecting others. $(. )hat are the different "ases of po#er? 1. *egitimate ,ower ". +eferent ,ower '. +eward ,ower .. )oercive ,ower

$,. Scalar Principle

&he clear the line of authority from the ultimate management position in an enterprise to every subordinate position the clearer will be responsibility for decision making and the more effective will be the organisation communication. $.. %unctional 4uthorit* It is the right which is delegated to an individual or a department to control specified processes practices policies or other matters relating to activities undertaken by persons in other departments. &0. 0imitations of staff:: 1. <anger of undertaking line authority ". *ack of staff responsibility '. &hinking in a vacuum .. Managerial problems &1. State an* t#o merits of e<uit* theor*: 1. &his theory makes managers realize that e!uity motive tends to be one of the most important motives of the people in the organisation. ". 6eelings or perceptions in e!uity are important factor in work setting. Management should take necessary steps to develop the perceptual skill of the people. &2. Mention the 'arious factors in'ol'ed in using moti'ational techni<ues: 1. Money ". ,articipation '. Buality of working life &3. )hat is 2o" enrichment? Cob enrichment is therefore based on the assumption that in order to motivate personnel the job itself must provide opportunities for the achievement recognition responsibility advancement and growth.

& . )hat are the limitations of 2o" enrichment? 1. Cob enrichment is based on the assumption that workers want more responsibility. 5ut in practice most of the workers may prefer less responsible jobs with good social interaction. (uch workers may show feelings of inade!uacy and fear of failure to job enrichment. ". (ome jobs cannot be enriched beyond a certain point. &$. =i'e the re<uired guidelines to make effecti'e 2o" enrichment. 1. =se job enrichment selectively after taking into account situational variables such as job characteristics personal characteristics of employees /rganisational level etc. ". ,rovide a supportive climate for innovation and change. &&. )ho is a leader? *eader is one who makes his subordinates to do willingly what he wants. &(. Define 0eadership *eadership is the process of influencing the behaviour of others towards the accomplishment of goals in a given situation. &,. Mention the importance of 0eadership 1. Motivating #mployees ". *eader develops team work '. 5etter utilization of manpower .. )reating confidence to followers 1. <irecting group activities 7. 5uilding morale >. Maintaining discipline &.. State something a"out #eakness of trait theor*

1. &here is no universal list of traits of successful leaders. It is thereforeD very difficult to indicate what mi2 of traits is necessary to make an affective leader. Individuals who never achieve leadership also possess some of the traits as successful leader. ". +esearchers simply provide the list of !ualities. &hey fail to give the scale to measure the !ualities. It is not clear how high a score a person must achieve an a given trait to make it effective.

(0. State 8ouse>s path ? goal approach *eaders are effective because of the influence on followers motivation ability to perform and their satisfaction. (1. 7ame the 'arious leadership st*les. 1. :utocratic or <ictatorial leadership ". ,articipative or <emocratic leadership '. *aissez 0 faire or 6ree 0 rein leadership (2. )hat are the ad'antages of democratic leadership? 1. &he subordinates are motivated by participation in decision 0 making process. &his will also increase job satisfaction ". :bsence of leader does not affect output '. *abour absenteeism and turn 0 over will be minimum .. &he !uality of decision is improved 1. &he leader multiplies his abilities through the contribution of his followers (3. )hat is 0aisse- ? faire? )omplete freedom is given to the subordinates so that they plan motivate control and otherwise be responsible for their own actions.

( . )hat is !ommunication? )ommunication is passing of information from one person to another person. ($. Mention the 'arious elements in the process of communication 1. (ender ". )ommunication )hannels '. (ymbols .. +eceiver 1. %oise and feedback in communication (&. 0ist the different t*pes of communication flo# 1. <ownward )ommunication ". =pward communication '. ;orizontal or *ateral )ommunication ((. 7ote do#n the 'arious communication net#orks 1. (imple )hain ". 9heel '. )ircular .. 6ree flow 1. Inverted A (,. Differentiate Single and Multiple channel net#orks S. 7o. 1. Single !hannel !ommunication Multiple !hannel !ommunication

&he )ommunication is allowed on only &he communication is allowed in more one path is called as line authority. It is than one path. simply referred as through proper channel. )ommunication flow is slow #asy to maintain orderly in nature Miscommunication is reduced

". '. ..

)ommunication flow is faster ,otential problems may occur Miscommunication in increased

(.. !reati'it* refers to #hat? :bility and power to develop new ideas. ,0. )hat are the t*pes of moti'ation? 1. ,ositive Motivation ". %egative Motivation '. #2trinsic Motivation .. Intrinsic Motivation ,1. Define 5udgeting control? : 5udgeting control is defined as Ea financial or !uantitative statement prepared and approved prior to a defined period of time of time policy to be pursued during the period for the purpose of attaining a given object. ,2. )hat is meant "* Management 4udit? Management :udit is a systematic evaluation of the functioning performance and effectiveness of management of an organization. It is a thorough$going critical and constructive review of the !uality of management. ,3. )hat is P39@ and !PM? ,#+& is an event$oriented network because emphasis is given on important stages of completion task rather than the activities re!uired to be performed to reach to a particular event or task. ,#+& is normally applied to projects of non$repetitive nature. ),M can be applied in an environment of certainty. It is deterministic. :nd is suitable for establishing a trade$off for optimum balancing between schedule time and cost of the project. , . )hat do *ou mean "* the #ord Producti'it*? ,roductivity is the ratio of output to some or all there sources used to produce the output.

,$. )hat do *ou mean "* Qualit* !ircle? Buality )ircles consists of a small homogeneous group of people doing similar work who voluntarily meet together regularly about an hour per week in paid time under the leadership of their own supervisor to identify analyze and solve a problem. ,&. )hat do *ou mean "* !ontrol? )ontrol is intended to ensure and make possible performance of planned activities and to achieve the predetermined goals and results. ,(A Define 5udgetar* !ontrol? :ccording to I)M: #ngland E5udgetary )ontrol is the establishment of budgets relating to the responsibilities of e2ecutives to the re!uirements of a policy and the continuous comparison of actual with the budget to provide a basis for its revision. ,,. 0ist out the 'arious kinds of "udget? 1F 6unctional 5udget "F Master 5udget 'F 6i2ed 5udget .F 6le2ible 5udget 1F Gero$base 5udget ,.. )hat do *ou mean "* Master 5udget? : Master 5udget is the summary budget incorporating all functional budgets. It is prepared with a view to coordinate the activities of various functional departmental. .0. )hat do *ou mean "* Bero:"ase "udgeting? Gero$base budgeting is the latest techni!ue aimed at cost reduction and optimum realization of resources. .1. )hat is %eed %or#ard !ontrol?

6eed 6orward )ontrol involves evaluation of input and corrective measures before a particular se!uence of operation is completed. It is based on timely and accurate information about changes in the environment. .2. )hat is !oncurrent !ontrol? )oncurrent )ontrol is also known as Ereal$timeE or steeringE control. It provides for taking corrective actions or making adjustments while the programmes is still in operation and before any major damage occurs. .3. 0ist out the important features of controlling? aF 6unction of Management. bF )ontinuous function cF 6uture $oriented and dF :ction$oriented. . . )hat is %le/i"le 5udget? 6le2ible 5udget is one which is designed to change in accordance with the level of activity actually attained. It is suitable when the estimation of demand is uncertain and the enterprise works under conditions of lack of material and labor power. .$. )hat are the "enefits of control? 1. )ontrol eliminates actions which deviate or which is not in conformity with the cherished goals of the firm. ". It offers enough information for future planning and /rganising. .&. 0ist out the characteristics of !ontrol function? 1F 6unctional Management "F )ontinuous function 'F 6uture$oriented .F :ction$oriented 1F Measuring the performance and

7F ,lanning the control .(. )hat if Production? ,roduction is defined as the step by step conversion of one form of material into another form through manual mechanical or chemical process to create or enhance the utility of the product to the user. .,. )hat is production management? ,roduction management is the process of planning /rganising directing and controlling production activities of an organisation for the actual transformation of elements of input into marketable finished goods services. .,. )hat are the "asic steps in'ol'ed in the process of controlling? 1 establishment of standards " measurement of performance ' comparing performance with the slandered . taking corrective action ... )hat are the different technologies "ased producti'it* impro'ement techni<ues? aF ):< bF ):M cF )IM dF +obotics eF *aser technology fF #nergy technology. 100A #hat is 'alue engineering? value analysis is also called value engineering is basically a cost reductions techni!ue which is the organisation and systematic study of every element of cost in a part material or service to make certain fulfills its functions at the lowest cost.