A
B
C
D
E
100
How is management multidisciplinary? Explain.
Ans: Management is multidisciplinary because of the following reasons:
Management of an organisation requires wide knowledge about various disciplines as it covers handling of man, machine, material and looking after production, distribution, accounting and many other functions.
It is a separate field of study with its own principles, practices, techniques and approaches.
It can be drawn from fields like Math, Engineering, and Economics.
100
Q) ‘‘Planning is the most important of all the management functions.’’ Do you agree? Give any three reasons in support of your answer.
Answer:
Yes I agree, planning is the most important of all the management functions.
Planning reduces uncertainty, risk and confusion in operation.
It guides the decision making by the managers.
It helps in achieving coordination and facilitates control.
100
Q) State any two functions performed by an employment exchange.
Answer: Employment exchanges firstly identify the names of qualified employment seekers already registered with them. They then forward the appropriate profiles to the employer to consider.
100
Q) As a function of management, how is directing useful?
Answer: As a function of management, directing is useful in the following ways:
It guides and helps the subordinates to complete the given task properly and as per schedule.
It provides supervision, which is important to make sure that the work is performed according to the orders and instructions.
It provides the motivation to subordinates to complete the work satisfactorily and do their best.
It provides leadership that helps in creating an ideal work environment as well as build team spirit.
100
Q) State any two features of a good control system.
Anwer: 2 features of a good control system are:
Planning is the Basis of Control : Control is said to be checking performance as per what has been planned. So planning precedes controlling.
Control is a Continuous Process : It is an ongoing and dynamic function of management. It involves a continuous review of performance and is not a one time exercise.
200
Q) State any four objectives of management
Example: Market stability, Changes in technology. Ans: The four objective of management are as follows:
Optimum utilization of resources:
Management should try to secure maximum outlay with minimum efforts and resources by utilising the human and material resources available in an organisation for deriving the best results.Fair return on capital:
Management has to provide a fair return to the owners on the capital invested by them. Management must maintain the investment and should also attract further investments for growth and expansion.
Create goodwill:
Management should aim at building the reputation of the firm through various activities like popularising products by advertising, reasonable price, good quality products etc. Business environment is dynamic and is influenced by a number of factors.Meet challenges of the changing environment:
Enterprises which are unable to adopt itself to the changing situations, will not be able to survive. Management should frame steps to meet the challenges of the changing environment. Thus, management can help an organisation for its survival and growth.
200
Q) What is meant by delegation? Briefly describe its elements.
Answer: Delegation is a process of assigning a part of the work or responsibility and also authority to another person. Thus creating accountability for performance.
3A’s
Assigning responsibility: Duties are broken down into 2 parts
One that the individual can perform himself
Other, that he can assign to his subordinates.
Granting Authority: When duties are assigned to subordinates then the required authority must also be given to him.
Creating Accountability: When a duty is assigned, it becomes an obligation on the subordinates part to ensure the work is done.
200
Q) What is meant by ‘Compensation’? Briefly explain its categories.
Answer: ‘Compensation’ refers to a wide range of financial (bonus, Salary) and non-financial rewards (extra holiday, paid vacation) to the employees for services rendered to the organisation.
Compensation can be divided into 2 categories:
Base/Primary Compensation - It is a fixed amount paid every month to an employee. E.g. Salary/Wages.
Supplementary Compensation - It is the compensation paid to motivate the employees to work efficiently.
200
Q) It is the process of inspiring people to work towards the achievement of organizational objectives. Name this element of directing. State its importance.
Answer: Motivation is the process of inspiring people to work towards the achievement of organizational objectives.
The importance of motivation is as follows:
With proper motivation there can be maximum utilisation of the factors of production (i.e. man , money, material, etc).
It helps reduce employee turnover and absenteeism.
It improves morale and fosters a sense of belongingness among the employees towards the organization.
It reduces the number of complaints/grievances.
200
Q) State any four points of relationship between planning and controlling.
Answer: 4 points of relationship between planning and controlling are:
Planning fixes the goals/standards to be achieved. Controlling checks the actual performance with the standards fixed.
Planning sets the course of actions. Control compares the actual course and the planned course.
Control identifies deviations from the course and initiates corrective actions. Planning is fruitful when control is exercised.
Planning is both backward looking and forward looking. It looks ahead on the basis of past data. Controlling is also both forward and backward looking because controlling involves comparing the actual performance with the planned performance.
300
Q) ‘‘The different levels of management taken together form the hierarchy of management.’’ Do you agree? Explain briefly with the help of a diagram.
Ans: Yes, I agree that the different levels of management taken together form the hierarchy of Management.
There are three levels of management which are as follows:
The top level management includes the Board of Directors and the Chief Executive. The chief executive may have the designation of Chairman, Managing Director, President, Executive Director or General Manager. This level determines the objectives of the business as a whole and lays down policies to achieve these objectives (making of policy means providing guidelines for actions and decision).
The middle-level management includes heads of various departments, e.g., production, sales, etc., and other departmental managers. Sometimes senior departmental heads are included in the top management team. The objectives of the business as a whole are translated into departmental objectives for the middle level management. Middle-level managers are particularly concerned with the activities of their respective departments
The lower-level management consists of foremen and supervisors who look after the operative workers, and ensure that the work is carried out properly and on time. Thus, they have the primary responsibility for the actual production of goods and services in the organisation.
300
Q) Describe the steps in the process of organizing.
Answer:
Identification of activities: Every organisation is created with a purpose. Based on this, activities can be identified.
Grouping of activities: Once the activities are identified, they can be grouped in different ways. The activities that are similar can be grouped as one and a separate department can be created. Eg. Marketing dept. Can look into the sales and after sales of a product.
Assignment of Responsibilities: Based on the individual's strengths relevant tasks are to be assigned.
Granting Authority: Based on the individual’s responsibility, they are also given authority to ensure effective performance.
Establishing Relationship: This is a very job of management as everyone in the organisation should know as to whom he/she is to report.
300
Q)’Selection procedure consists of a number of steps in logical order to identify the candidates who are to be finally appointed.’ Explain these steps in the order in which these have to be taken.
Answer: The following are the steps in the selection process:
a.) Screening the Applications: After receiving the applications from the candidates through the recruitment process, the same must be examined to decide which ones deserve to be considered and followed up.
b.) Holding Tests: These tests are made to discover and measure the skill and abilities of the candidates in terms of the requirements of the job.
c.) Selection Interview: Interview is the most important part of the selection procedure. It serves as a means of checking the information given in the application form and making an overall assessment of the candidates suitability for the job.
d.) Checking of References: In addition to the requisite educational qualification, skills and experience, it is important that the candidates have a balanced temperament, honesty, loyalty, etc. Since these virtues cannot be judged on the basis of any test this information must be verified from the heads of educational institutes or previous employers.
e.) Medical Examination: Candidates finally selected for the job are asked to undergo a medical examination to see whether they are physically fit for the job.
f.) Issue of Appointment: Selected candidates are offered to join the organisation with a formal appointment letter containing the nature of the job, the compensation, and other terms and conditions.
300
Q) Describe briefly ‘Maslow’s Hierarchy of Needs.’
Answer: Maslow has given hierarchy of needs in the following ways :
Physiological Needs: These needs include need for food, shelter and clothing.
Safety and Security Needs : Once physiological needs are fulfilled then the people start thinking about their safety. Safety needs include need for physical safety and economic safety. Physical safety means safety from accidents, disease etc. Economic safety refers to safety of livelihood.
Social Needs : Man is a social animal. Therefore, he wants friends and relatives with whom he can share his joys and sorrows. Social needs include need for love, affection, friendship etc.
Esteem Needs : These are the need for respect and recognition. Esteem needs are also known as Ego needs.
Self Actualisation Needs : Self actualisation needs are concerned with reaching one fulls potential. These needs include need for growth, self fulfillment etc.
300
Q1) Define ‘Controlling’. Explain the steps in the process of control.
Answer: Controlling as a function of management refers to the evaluation of actual performance of work against planned and taking the corrective action.
The process of control is as follows:
Establishment of Standards : Setting standard is the first requirement of control. Standards arise out of plans and provide the basis of comparison. There can be different types of standards, e.g., number of units to be produced per hour, cost of production per unit, and so on.
Measurement of Performance : When standards are established, the next step is to measure the performance at regular intervals. Performance can be measured by observations, inspection and reporting.
Comparison of Performance with Standards : The next step in the control process is comparison of actual performance against the standards.
Detecting the Reasons for Deviations : Before taking any corrective action, managers should try to ascertain the reasons for the occurrence of deviations.
Taking Corrective Action : Once the causes for deviations become known, the next step is to go in for a corrective action which may involve revision of standards, changing the methods of selection and training of workers or providing better motivation.
400
Q) “Principles of management are statements of fundamental truth, which provide guidelines for the managers for decision making.” In the light of the statement briefly describe any four points of importance of principles of management.
Ans: Management principles have considerable importance in all group efforts. Following are the points of importance of management principles:
1. Act as a Guide for Research in Management :
The principles so far developed can be tested in new situations and management practices can be made more effective. For example, in earlier days workers were motivated by their remuneration. But now a days family health, education of the children etc. should be considered by the organisation in order to motivate and retain the workers.
2. Improve Understanding :
The knowledge of principles of management help the managers to manage an enterprise properly. The principles of management help the managers for taking correct decisions. Managers can handle situations smoothly.
3. Identify the Areas for Training of Managers :
The principles of management help in identifying the areas where the managers should be trained.
4. Act as Reference for Managers :
Principles act as reference for the managers and help to evaluate whether the decision taken by him are appropriate and accurate.
5. Increases efficiency :
Principles are guidelines for managers for taking accurate decisions. Principles help the manager for solving problems of an enterprise.
400
Q) Briefly describe the following types of plans:
Objectives and
Budget
Answer:
Objectives: Objectives are the end result, towards which activities are directed. It should be measurable in quantitative and achievable. Eg.To train 50 teachers in a year.
Budget: It is a statement of expected results in financial terms. They are quantitative statements showing expected use of cash. Cash budget estimates the expected cash inflow and outflow over a period of time.
400
Q) What is meant by training? Explain the different methods of training.
Answer: Training is the act of increasing the knowledge and skill so as to be able to perform their tasks more efficiently is known as training.
The different methods of training can be categorised as:
On-the-job methods: In these methods, employees learn about their job while doing the job while being assisted by their supervisors or seniors.
Off-the-job methods: In these methods, employees are trained away from their workplace so that experts may conduct the training where the trainees are free from the immediate pressure of completing the job at hand.
400
Q) How can employees be motivated? Discuss.
Answer: Employees can be motivated with a combination of financial and non-financial incentives.
Following are the Financial Incentives :
1. Pay and Allowances : Salary is the basic monetary incentive of every employee. Salary includes basic pay, dearness allowance etc.
2. Bonus : Bonus means the payment to employees in addition to their regular remuneration.
3. Commission : In the sales department, salespersons get commission on the basis of their sales.
Following are the Non-financial Incentives :
1. Career Advancement Opportunity : Appropriate skill development programmes will encourage employees to show improved performance.
2. Status : Status means the rank of a person in an organization. The rank is linked with authority, responsibility and other extra benefits. Everybody has a wish to be in a higher rank. Therefore an employee can be motivated by placing him in a higher rank.
400
Q3) What is meant by control? Briefly describe any four characteristics of control
Answer: Controlling as a function of management refers to the evaluation of actual performance of work against planned or standard performance and taking the corrective action, if necessary.
Planning is the Basis of Control : Control is said to be checking performance as per what has been planned. So planning precedes controlling.
Control is a Continuous Process : It is an ongoing and dynamic function of management. It involves a continuous review of performance and is not a one time exercise.
Control is All Pervasive : Control is exercised at all levels of management, and is done in every functional area and at each unit or department.
Action is the Essence of Control : Control is an action-oriented process.
Control is Forward Looking : Control is futuristic in nature. It measures current performance and provides guidelines for the corrective action.
500
State the fourteen principles of management given by Henry Fayol.
Ans: The principles of management given by Henry Fayol are:
1. Division of Work : This principle suggests that work should be assigned to a person for which he is best suited. Work should be divided into compact jobs to be assigned to individuals. This facilitates specialization and improves efficiency.
2. Authority and Responsibility: Responsibility means the work assigned to any person, and authority means rights that are given to him to manage people and things to ensure performance. In other words, authority should go hand in hand with the responsibility for effective results.
3. Discipline : This principle emphasises that subordinates should respect their superiors and obey their orders. On the other hand, superiors’ behaviour should be such that they make subordinates obedient. If such discipline is observed, there will be no problem of industrial disputes.
4. Unity of Command : A subordinate should work under the supervision of one superior only from whom he gets instructions and to whom he is accountable. It avoids confusion in authority and instructions.
5. Unity of Direction : Each group of activities having the same objective must have one head and one plan of action. Otherwise, there may be wastage, over expenditure and useless rivalry among the managers.
6. Subordination of Individual Interest to General Interest: While taking any decision, the collective good and collective interest of the organization as a whole should be preferred to individual interests. The individual’s interest should be subordinated to the overall interest of the organization. This ensures welfare of the organization as well as its individual members.
7. Remuneration : Management should try to give fair wages to the employees so as to ensure reasonable satisfaction of workers and productivity for the organization.
8. Centralisation: When a single person controls the affairs of an organization, it is said to be complete centralisation. In small concerns, a single manager can supervise the work of the subordinates easily, while in a big organization, control is divided among a number of persons to facilitate operational decision making at various levels. Fayol’s opinion was that there should be a proper balance between centralisation and delegation of authority in an organization.
9. Scalar Chain : This is the chain of authority relationship from the highest to the lowest ranks. This implies that subordinates report to their immediate supervisors who, in turn, report directly to their own boss. The order of this chain should be maintained when some instructions are to be passed on or enquiries are to be made.
10. Order : Placement of men and materials should be properly made. Proper space should be made available where materials can be kept safely. Each man should be provided the work for which he is best suited.
11. Equity : This principle requires the managers to be kind and just to workers. This promotes a friendly atmosphere between superiors and subordinates and motivates them to perform their duties efficiently.
12. Stability of Tenure : Employees should be provided stability and continuity of their tenure of employment. There should not be frequent termination of employees. This could be achieved through attractive remuneration and honorable treatment of personnel.
13. Initiative : This implies encouraging initiative among its personnel to chalking out and execution of a plan to achieve the desired results.
14. Esprit de Corps : These French words mean team spirit. Managers should infuse the spirit of teamwork and cooperation among the employees. It helps in developing an atmosphere of mutual trust and a sense of unity.
500
Explain the features of planning.
Ans: The features of planning are:
Planning is the primary function of management as every activity needs to be planned before it is actually performed. Planning precedes all other managerial functions and provides the very basis for organising, staffing, directing and controlling.
Planning is always goal directed. A manager cannot plan anything unless he knows what he wants to achieve.
Planning is pervasive at all levels of management and so also for all functional areas.
Planning is always futuristic. It is deciding in advance what to do, how to do, etc.It requires collection of information about various matters relating to the business.
Planning is an intellectual activity. It needs good foresight and sound judgment to anticipate future events, develop alternative courses of action and make the right choice.
Planning is a continuous process.
Planning involves making choices. Need for planning arises when goals/objectives are many and alternatives to achieve them are also plenty.
Planning is flexible. Planning is done on the basis of some forecasts which may not materialise. Hence, plans have to be changed in accordance with the changed conditions.
500
Q) ‘There are many hindrances that adversely affect effective communication. Briefly explain the organizational hindrances.
Answer: The organizational hindrances to effective communication is as follows:
Rules and Regulation: Rigid rules may lead to red tapism, delay in action and delay in movement of information.
Status: Managers of a higher rank are not open to sharing information with their colleagues of lower ranks. This can cause miscommunication/misunderstandings that mislead the team.
Organizational Policies : Rigid organizational policies can deter the flow of information and centralisation of authority can lengthen the processes.
Complexity in Organizational Structure: In an organization where there are a number of managerial levels, there will be delay in communication. Factual information can also fall victim to the grapevine effect