Management Process and Organisational Behaviour

1 What do you mean by Span of Control? Differentiate between narrow

span of control and wide span of control. Describe the factors that
influence the span of control.
Meaning of span of control
Difference between narrow and wide span of control
Factors that influence span of control
Ans span of control where the managers had few subordinates reporting to them and
the resulting organizational structure was vertical and tall.
Narrow span :
1. Many levels of management
2. High cost excessive distance between top and bottom level
3. Superiors tend to get too much involved in the work of subordinates
Wide span :
1. Overloaded superiours may become decision bottlenecks
2. Danger of superiorsloss of control
3. Requires high quality managers

Influence the span of control

1. Training
2. Task definition and delegation
3. Well defined plans and repetitive process
4. Verifiable objectives
5. Speed of change
6. Org ananization structure, written and oral commucation
7. Effective intereraction and meeting
8. Specialists
9. Task simplicity
10.Competency of managers
11.Subordinates readiness

2 define the term controlling. What are the pre-requisites of effective

control?
Definition of controlling

Pre-requisites of effective control

Ans controlling is a systematic exercise which is called as a process of checking
actual performance against the standards or plans with a view to ensure adequate
progress and also recording such experience as Is gained as a contribution to
possible future needs.

Pre requisites of effective control

1.
2.
3.
4.
5.
6.
7.
8.

Tailoring controls to plans and positions

Tailoring controls to individual manager
Designing point to the expections at critical point
Obejectivity of controls
Flexibility
Fitting to the organization culture
Economy of controls
Ability to lead to corrective action

3 Define the term personality. Describe Cattells Personality Factor

Model.
Definition of Personality
Cattells Personality Factor Model

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Ans According to Larson and Buss, Personality is the set of psychological traits and
mechanisms within the individual that are organized and relatively enduring and that
influence his/her interactions with and adaptations to physical and social environments
and his/her own psyche.

4 Discuss the contemporary theories of motivation. 10

Explanation of contemporary theories of motivation

Ans The contemporary motivation theories include:

ERG theory

McClellands theory of Needs

Cognitive Evaluation theory

Goal-Setting theory

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Reinforcement theory

Equity theory

Vrooms Expectancy theory

Motivational Language theory

5 What are the factors that affect group behaviour?

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Explanation of factors that affect group behaviour

Ans Apart from group process, there are several factors that affect the group behavior.
The change in group behavior and the group process also impacts the decision making
in a group.
6 Define the term leadership. Write a brief note on Contingency
Theories of Leadership
Definition of Leadership
Contingency Theories of Leadership

Ans People have long been interested in leadership. Several theories have emerged
over the years to answer peoples query about what differentiates a leader from a
common person. However, these theories are still trying to offer a comprehensive view
of leadership.
Several models and studies have contributed to the development of leadership style
theory. Action-centered leadership (ACL) is an advanced leadership style that focuses on
team, individual, and tasks. However, there are certain shortcomings.
2 Def :Leadership is a function of knowing yourself, having a vision that is well
communicated, building trust among colleagues, and taking effective action to realise
your own leadership potential.
3 Contingency theories claim that there is no best way to organize or to take decisions.
Success depends upon a number of variables Such as behavior, context, and need.
Therefore, effectiveness of leadership depends on adopting the leadership style
according to the situation. However, the approach has been criticized because it was
unsuccessful in explaining completely why people with certain leadership styles are
more effective in some situations than others.

Business Communication

1As a speaker you are addressing a group of people. Explain the elements involved
in this communication.
Key elements of communication
Ans Key elements of communication and its importance
Irrespective of the number of people involved, communication always includes the
following key elements:

A sender who transmits a message

A receiver who decodes or attaches meaning to a message

A channel or medium through which the message is sent

Feedback given by the receiver to the sender

Noise that can disrupt the communication at any time

The context in which the communication takes place

Communication is not always successful and can go wrong if any of the key elements go
wrong.

2What is the importance of Kinesics and Proxemics in communication? Explain

with examples.
Kinesics with example
Proxemics with example

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3How does internal business communication affect the organization? Discuss the
role of each stakeholder in this.
Importance of internal business communication

Stakeholders role

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4Imagine a new product from food industry. Write a persuasive letter to customers,
persuading them to buy your companys product.
Choosing the product and describing in letter
Persuading the customer to buy it

5You are going to face a job interview for the post of Manager-operations. Which
aspects you will keep in mind while facing the interview?
Aspects to be kept in mind during job interview

6Write short notes on:

a) SQ3R technique of reading
b) Circulars
a) meaning and benefits of SQ3R
b) Meaning and role of Circulars

STATISTICS FOR MANAGEMENT

1 Distinguish between Classification and Tabulation. Explain the structure and

components of a Table with an example.
Meaning of Classification and Tabulation
Differences between Classification and Tabulation.

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Structure and Components of a Table with an example

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Ans Classification is the process of arranging things or data in groups or classes

according to their resemblances and affinities. Classification simplifies and makes data
more comprehensible and renders the data ready for statistical analysis. Classified data
is tabulated in rows and columns for presentation, using various methods.
Tabulation is a logical or systematic listing of related data in rows and columns,
commonly known as tables. Common examples of data tables from our daily lives
include the score card of a student, a bank statement and a project plan.

2 a) Describe the characteristics of Normal probability distribution.

b) In a sample of 120 workers in a factory, the mean and standard deviation of
wages
were Rs. 11.35 and Rs.3.03 respectively. Find the percentage of workers getting
wages
between Rs.9 and Rs.17 in the whole factory assuming that the wages are normally
distributed.
Characteristics of Normal probability distribution

Formula/Computation/Solution to the problem

3a) The procedure of testing hypothesis requires a researcher to adopt several
steps.
Describe in brief all such steps.
b) Distinguish between:
i. Stratified random sampling and Systematic sampling
ii. Judgement sampling and Convenience sampling

Hypothesis testing procedure

Differences

4a) What is regression analysis? How does it differ from correlation analysis?
b) Calculate Karl Pearsons coefficient of correlation between X series and Y series.
X 110 120 130 120 140 135 155 160 165 155
Y 12 18 20 15 25 30 35 20 25 10

Meaning of Regression and Correlation

Differences
Formula/ Computation/ Solution to the problem
5Briefly explain the methods and theories of Business forecasting.
Meaning of Business forecasting
Methods of Business forecasting
Theories of Business forecasting
6Construct Fishers Ideal Index for the given information and check whether Fishers
formula satisfies Time Reversal and Factor Reversal Tests.

Items P0 Q0 P1 Q1

A 16 5 20 6
B 12 10 18 12
C 14 8 16 10
D 20 6 22 10
E 80 3 90 5
F 40 2 50 5
Formula of Fishers Ideal Index
Computation of Fishers Ideal Index
Fishers formula satisfies Time Reversal Test
Fishers formula satisfies Factor Reversal Test

4 FINANCIAL AND MANAGEMENT ACCOUNTINg

1Give the classification of Accounts according to accounting equation approach with
its meaning and examples. Compare the traditional approach with modern approach
of accounting equation approach. Analyze the transaction under traditional
approach.

a. 20.1.2011 Paid salary Rs. 30,000

b. 20.1.2011 Paid rent by cheque Rs. 8,000
c. 21.1.2011 Goods withdrawn for personal use Rs. 5,000
d. 25.1.2011 Paid an advance to suppliers of goods Rs. 1,00,000
e. 26.1.2011 Received an advance from customers Rs. 3,00,000
f. 31.1.2011 Paid interest on loan Rs. 5,000
g. 31.1.2011 Paid instalment of loan Rs. 25,000
h. 31.1.2011 Interest allowed by bank Rs. 8,000
Classification of accounting equation approach with meaning and
examples

2The following trial balance was extracted from the books of Chetan, a small
businessman. Do you think it is correct? If not, rewrite it in the correct form.
Debits Rs. Credits Rs.

Stock
Purchases
Returns outwards
8250
12750
700
Capital
Sales
Returns inwards
10000
15900
1590
Discount received
Wages and salaries
Rent and rates
Sundry debtors
Bank Overdraft
800
2500
1850
7600
2450
Discount
allowed
Scooty
Carriage charges

Sundry creditors
Bills payable
800
1750
700
7250
690

Journal entries of all the transactions

Conclusion
3 From the given trial balance draft an Adjusted Trial Balance.
Trial Balance as on 31.03.2011
Debit balances Rs. Credit balances Rs.
Furniture and Fittings 10000 Bank Over Draft 16000
Buildings 500000 Capital Account 400000
Sales Returns 1000 Purchase Returns 4000
Bad Debts 2000 Sundry Creditors 30000
Sundry Debtors 25000 Commission 5000
Purchases 90000 Sales 235000
Advertising 20000
Cash 10000
Taxes and Insurance 5000
General Expenses 7000
Salaries 20000
TOTAL 690000 TOTAL 690000
Adjustments:

1. Charge depreciation at 10% on Buildings and Furniture and fittings.

2. Write off further bad debts 1000
3. Taxes and Insurance prepaid 2000
4. Outstanding salaries 5000
5. Commission received in advance1000

Preparation of ledger accounts

Preparation of trial balance

4 Compute trend ratios and comment on the financial performance of Infosys

Technologies Ltd. from the following extract of its income statements of five years.

(in Rs. Crore)

Particulars 2010-11 2009-10 2008-09 2007-08 2006-07
Revenue 27,501 22,742 21,693 16,692 13,893
Operating Profit
(PBIDT)
8,968 7,861 7,195 5,238 4,391
PAT from
ordinary activities
6,835 6,218 5,988 4,659 3,856
(Source: Infosys Technologies Ltd. Annual Report)
Preparation of trend analysis
Preparation of trend ratios
Conclusion

5 Give the meaning of cash flow analysis and put down the objectives of cash flow
analysis. Explain the preparation of cash flow statement.
Meaning of cash flow analysis
Objectives of cash flow analysis
Explanation of preparation of cash flow analysis

6Write the assumptions of marginal costing. Differentiate between absorption

costing
and marginal costing.
Assumptions of marginal costing (all 7 points)
Differences of marginal and absorption costing (Includes all 8
points)

5 Managerial Economics

1 Most of the firms spend considerable amounts of money on advertisement.

Explain advertising elasticity of demand and its practical applications in this
context.
Explanation of advertising elasticity of demand
Explanation of practical applications

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Ans Elasticity of demand:Responsiveness or sensitiveness of demand to a given change in the

price or non-price determinant of a commodity.

2 Explain production function in detail.

Explanation of production function
Types
Uses

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Ans Production function:Technological or engineering relationship between physical quantity of

inputs employed and physical quantity of outputs obtained by a firm.

3 Explain Marris Growth Maximisation Model in detail.

Explanation of the model
Constraints
Demerits

4 Explain Price output determination under monopoly.

Explanation
Assumptions

5 Investment is the second important component of effective demand. Explain

investment function.
Explanation
Types
Determinants

6 Write short notes on:

a) Monetary Policy
b) Physical policy or direct controls
a) Parameters and objectives
b) Instruments and disadvantages
ans

6 Human Resource Management

1 What do you mean by Human Resource Management? Describe the functions of

Human
Resource Management.
Definition of Human Resource Management
Explaining the functions of Human Resource Management
Ans According to Fisher, Schoendfelt and Shaw, HRM involves all management
decisions and practices that directly affect or influence the people or Human resources
who work for the organization.
HRM operations encompass a variety of functions in an organization. HRM functions
include combining the administrative functions with employee welfare initiatives. The
HR department liaises between employees and the top management to fulfill
organizational requirements. This is a critical task as an organizations performance can
be determined on the quality of the human resources available to the organization. The
availability of the human resources, in turn, is largely dependent on employeemanagement relations.
The functions of HRM are broadly classified into:

Managerial functions

Operative functions

2 Give an overview of the Human Resource Management (HRM) in India. Explain the
HRM

challenges faced by HR Managers.

Give a brief description of the HRM practices in India
Explaining the HRM challenges faced by HR Managers

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Ans
3 What do you mean by HRIS? Explain the components of HRIS. Describe the
different
applications of HRIS in Human Resource Management.
Definition of HRIS
Brief about the components of HRIS
Explain the different applications of HRIS
Ans HRIS includes all the HR functions of the organization, namely, recruitment and
selection, training and development, wages and salary administration, incentives and
benefits, grievance resolution, human resource planning and succession planning.

Components of Human Resource Information System

A HRIS performs three interconnected activities as a database: (i) receiving inputs in the
form of data from different sources. (ii) storing and processing data with the purpose of
transforming them into meaningful information. (iii) generating output in different
forms, as required by the users.

Application of HRIS in Human Resource Management

Different applications of an HRIS are applicant tracking system, training and
development system, compensation management system, performance management
system, manpower planning system, succession planning system and grievance
management system.

4 Discipline in the broad sense means orderliness-the opposite of confusion. What

do you
mean by Discipline? Explain the basic guidelines of a Disciplinary policy.
Meaning of Discipline

Explain the basic guidelines of a Disciplinary Policy

Ans According to Dr. Jeffrey Spiegel, "discipline is the force that prompts an individual
or a group to observe the rules, regulations and procedures which are deemed to be
necessary to the attainment of an objective; it is force or fear of force which restrains an
individual or a group from doing things which are deemed to be destructive of group
objectives. It is also the exercise of restraint or the enforcement of penalties for the
violation of group regulations".

Basic Guidelines of a Disciplinary Policy

As far as possible, all the rules should be framed in cooperation and collaboration with
the representatives of employees.
All the rules should be appraised at frequent and regular intervals.
Rules should be uniformly enforced if they are to be effective.
A disciplinary policy should be preventive rather than punitive.
It is essential that these rules and regulations are properly and carefully formulated and
communicated to employees.

5 Suppose you have joined as an HR and you have been assigned a task to carry
out the
grievance handling procedure in your organization. What according to you are the
causes
of Grievance? Describe in detail the Grievance handling procedure
Causes of Grievance
Explain the Grievance handling procedure

Ans Grievance Handling Procedure

The following directions help in handling a grievance:

Receive and define the nature of the dissatisfaction.

Get the facts.

Analyse and divide.

Apply the answer.

Follow-up.
Grievance should be dealt within the limits of the first line manager.
The appellate authority should be made clear to the employee.
The grievance should be dealt with speedily.
In establishing a grievance procedure, if the grievance is against an instruction given by
a superior in the interest of order and discipline, the instructions must be carried out
first and then only an employee can register his protest.
In case the grievance has not been settled by the top management and the top union
leadership, the same may be submitted to an impartial arbitrator
Grievances can stem from day-to-day working relations in an organization. The
employees relations with supervisors and colleagues can also have an impact on the
job satisfaction. Employee grievances can arise because of a number of reasons.

6 Write short notes on the following :

a)Competency Mapping
b)Flexi Time

ans Competency mapping is a process of identifying key competencies that are to be

possessed by employees for organizational success, and includes incorporating those
competencies throughout the various processes (that is, job evaluation, training,
recruitment) of the organization.
The steps involved in Competency Mapping are:
1.

Conduct a Job Analysis: The first step in the process of job competency
mapping is to conduct a job analysis by asking incumbents to complete a Position
Information Questionnaire (PIQ).

2.

Develop a Competency Based Job Description: A competency based job

description can be developed and analyzed using the results of the job analysis.

3.

Mapping the Competencies: Once the competency based job description has
been completed, competencies can be mapped in each of the human resource

processes. This information also ensures that performance evaluations are

performed on more objective grounds.
4.

Development or Training: The results of the evaluation can also be used to

identify training and development needs and develop programs that will help
employees learn behaviors that will ultimately result in individual and
organizational success.

Flexi time is a work arrangement where an organization gives its employees the
opportunity of flexible working hours. Under flexi time, there is normally a core period of
the day when employees must be at work, while the rest of the working day is
considered flexi time, in which the staff can choose when they need to work to
complete the given tasks.
A flexi time policy usually benefits everyone involvedthe employees, their families,
and the organization.
Flexi time is a scheme where an organization gives its employees the opportunity of a
flexible working hours arrangement.

Flexi time is a work arrangement where an organization gives its employees the
opportunity of flexible working hours. Under flexi time, there is normally a core period of
the day when employees must be at work, while the rest of the working day is
considered flexi time, in which the staff can choose when they need to work to
complete the given tasks.
A flexi time policy usually benefits everyone involvedthe employees, their families,
and the organization.