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PRINCIPLES & PRACTICE OF MGT. (BCA 2) 1/56

OBJECTIVE TYPE QUESTIONS (1 MARKS EACH) 1. The highest level of human need suggested by Maslow is i) Physiological Need ii) Esteem Need iii) Social Need iv) Self-actualization Need

2) The number of worker under the direct control of a supervisor is called i) Operative Span ii)Administrative Span iii) Executive span iv) None of these

3) The concept of Managerial grid was given by: i) Elton Mayo ii) Chester Barnard iii) Henry Mintzberg iv)Robert S. Brake

4) Henry Fayol has given …………… Principal of Management i) 10 ii) 12 iii) 14 iv) 15

5) 'Division of work ' implies i) Discipline ii) Specialization iii)Order 6) 'Espirit de corps' means i)Team spirit ii) Co- ordination iii)Self orientation

7) Following is a type of plan i) Mission ii) Objectives iii) Procedure iv)All of these 8) Degree of decentralization is determined by i) Availability of personnel ii) Availability of Funds

9)………….are guidelines to strategies. i) Procedure ii) Programme iii) Policy 10) Following is a basis of departmentation i) Functional ii) Territorial iii) Product iv) All of these 11) Management is i) Science ii) Art iii)Both iv) None of these

12) Henry Gantt's major contribution is i) Gantt Graph ii) Gantt Chart iii)Gantt Schedule 13) Theory Z was given by i) Mc Gregor ii) Herzberg iii) Z.L urwick 14) A reactive control system is i) Feed forward control ii) Concurrent control iii)Feedback control 15) A system, which interacts with its environment, is called i) Open ii) Closed iii)Global system

16. Management is essential in every: a) Business b) Organized group effort PRINCIPLES & PRACTICE OF MGT. (BCA 2) 2/56 c) Government d) Industry 17. Management, as a noun, refers to: a) All those who manage b) All that a manager does c) The subject of management d) None of these

18. Management is needed at : a) Top level b) Middle level c) Lowe Level d) All levels

19. Management is a) An art b) A science c) An art as well as science d) None of these

20. Management is a) A pure science b) An exact Science c) A Social Science d) Natural Science

21. Management is a) Tangible b) Intangible c) Fictitious d) None of these

22. Theory X and theory was given by a) urwick b) Mc.Gregor c) Peter F. drucker d) None of these

23. Planning is a a) Looking ahead b) Looking back c) Guiding people d) Delegation of authority

24. Authority flows vertically in a a) Functional organization b) Line organization c) Lie and staff

25. Recruitment, selection and training is a function of: a) Organizing b) Directing c) Leadership d) staffing

26. Which function is regarded as the essence of management: a) Direction b) Directing c) Controlling d) Planning

27. Delegation of authority is an element of a) Staffing b) Directing c) Controlling d) Organizing

28. Who is referred to as Father of Scientific Management a) HenryFayol b) F.W.Taylor c) Louis D. Brandeis d) None of these

29. The scientific Techniques of task setting is known as: a) Work study b) Motion study c) Time study d) None of these

30. According to Taylor the two function of planning and doing should be: PRINCIPLES & PRACTICE OF MGT. (BCA 2) 3/56 a) Combined b) Separation c) Flexible d) Rigid

31. What is the function of management? a) Planning b) Organizing c) Directing d) Controlling e) All of these

32. Strategy is made by: a) Top level b) Middle level c) Lower level d) All of these

33. Scientific management should be introduced a) Gradually b) Immediately c) Like a machine d) Not at all

34. The main aim of Taylor was to a) Improve the labor relations b) Improve productivity c) to attempt a general theory of management d) To fight for worker's rights

35.Fayol classified industrial activities into : a) Five groups b) Three groups b) Six groups d) Four groups

36. Fayol identified how many functions of management a) Four b) Six c) Three d) Five

37. Fayol has given how many principles of management a) Ten b) Twelve c) Fourteen d) Fifteen

38. Division of work promotes a) Specialization b) Inefficiency c) Wastages d) Confusion

39. The principles of unity of command is concerned with : a) Activities b) Persons c) Remuneration d) Respect of authority

40. The Principle of equity implies a) One head and one plan b) Right man in right job c) Issuing instruction d) Justice and Kindness

41. Principles of management can be applied to a)Big organizations b)Small organization c)All organization d) Government organization

42. Henry Fayol is known as : a) Father of scientific management b) Father of principles of management c) Father of business management d) None of these 43. In line and staff organization line is: a) technically experts b) are not technically experts PRINCIPLES & PRACTICE OF MGT. (BCA 2) 4/56

c) gives advise d) none of these

44) Planning involves a) Future course of action b) Review of past performance c) Analysis of policies

45) Formal organization is made by: a) Top management b) Middle management c) Lower management d) None of these

46. Quality control technique concentrates on: a) Design of the product b) Quality of the product c) all of the above

47. Operational planning is undertaken at: a) Top level management b) Lower level management c) Worker's level

48. Planning is helpful for a) reducing inefficiency b) better utilization resources c) raising employee's morale

49. Decision-making involves a) Selection from alternative b) Selecting the best alternative course of action c) Implementing a policy

50. Decision -making is based on a)competitors policies b)rational thinking c)government directions

51. Decision-making helps in a) improving efficiency b)Increasing profits c)achieving organizational goals

52. Repetitive decisions are known as a) Operational decisions b) non programmed decisions c) Routine decisions

53. Policy decisions are made at : a) Middle level b) top level c) Operational level

54. Who has given the bureaucratic model of management? a) Taylor b) Henry fayol c) Max Weber d) None of these

55) Organisation deals with a) Centralizing of activities b) Decentralizing of activities c) Division of work

56) Organizational structure is a means towards a) Achievement of organizational goals b) Achievement of co-ordination c) Achievement of effective performance PRINCIPLES & PRACTICE OF MGT. (BCA 2) 5/56

57) Formal Organisation is the a) conscious co-ordination of activities b) Relationship among people outside the organisation c) Relationship based on personal likes and dislikes

58) Span of control relates to the a) Number of persons to be supervised b) Delegation of authority c) Division of responsibility

59. A business should have : a) Multiplicity of objectives b)Common objectives c) Permanent objectives

60. Principle of specialization requires a) Division of labour b)Centralization of work c) De Centralization of work

61. Authority flows a) Downward in the line b) Upward in the line c) None of the two

62. In line organization authority flows :- a) From top to the bottom b) At the same level of management c) From the bottom to top

63. In functional organisation work is divided a) According to importance b) According to nature c) According to different functions.

64. In departmental line organisation overall control lies with a) Chief executive b) Departmental manager c) Personnel Manager

65. Communication begins with a. encoding b. idea origination c. decoding d. channel selection

66. The term ‘Gang Boss' is used in : a) Line organization b) Staff organization c) Line and staff organization d) Functional organization

67. In management by exception the exceptional problems are handled by : a) Top level b) Middle level c) Lower level d) All of the above

68. Internal sources of recruitment are a) Advertisement b) Casual callers c) Retirement d) Retrenchment

69. Recruitment and selection are same things a) true false 70. Compensation involves a) Wages c) Salaries c) Both a and b d) None of these PRINCIPLES & PRACTICE OF MGT. (BCA 2) 6/56

71.In democratic leadership; a) Employee don’t participate in decision making. b) Employees participate in decision making c) Leader treats subordinates like a father d) None of these

72. Public companies are those who has a a) Minimum paid up capital of Rs.1 lakh b) Minimum paid up capital of Rs. 5 lakhs c) Minimum members 7 d) Minimum members 2

73. In sole proprietorship and partnership, both have to registered under companies act 1956 a) true false

74. MBO technique was given by: a) Henry fayol b) Peter f.drucker c) Taylor d) None of these

75. In MBO technique goals are set by the a) Superior only b) Top level only c) Superiors and subordinate collectively d) Both a and b

76. Committee involves: a) Only 2 persons b) Only 3 persons c) More than 2 persons d) Minimum 8 persons

77. Human beings are considered in which theory: a) Elton mayos theory b) Max webers theory c) Henry fayols theory d) None of these

78. Need hierarchy theory s given by: a) Peter f. drucker b) Abraham Maslow c) Fayol d) None of these

79. Match The Following a) Control - i) action b) Measurement - ii) design c) Motivating - iii) performance d) Deviations - iv) standard e) Flexible – v) employees

Correct answer a)Control - Standard b) Measurement - Performance c) Motivating - Employees d) Deviations - Action e) Flexible – Design

80) The purpose of job enrichment is to a. expand the number of tasks an individual can do b. increase job efficiency PRINCIPLES & PRACTICE OF MGT. (BCA 2) 7/56

c. increase job effectiveness d. increase job satisfaction of middle management

81) Strategic planning as a broad concept consists of: a. corporate strategy and business strategy b. strategy formulation and strategy implementation c. inputs and outputs d. environmental analysis and internal analysis

82) According to Herzberg, which of the following is a maintenance factor? a. Salary b. Work itself c. Responsibility d. Recognition

83) The concept of power refers to a. defined authority and responsibility b. a relative hierarchical position in an organization c. the ability to influence the behavior of others d. the specialized knowledge possessed by an individual

84) The problem-solving process begins with a. clarification of the situation b. establishment of alternatives c. identification of the difficulty d. isolation of the cause

85. Policies are sometimes defined as a(n) a. shortcut for thinking b. action plan c. substitute for strategy d. substitute for management authority

86 Functional managers are responsible a. for a single area of activity b. to the upper level of management and staff c. for complex organizational sub-units d. for obtaining copyrights and patents for newly developed processes and equipment Answers 1) iv 2) I 3) iv 4) iii 5) ii 6) i 7) iv 8) i 9)iii 10) iv 11) iii 12)ii 13) iii 14)i 15)i 16) b 17) a 18) d 19)c 20 c) 21) b 22) b 23) a 24) b 25) d 26)c 27) d 28) B 29) a 30) b 31)e 32) d 33) a 34) b 35) b 36) d 37) d 38)a 39) b 40) d 41) b 42) b 43) b 44) a 45) a 46) c 47)b 48) b 49) b 50) b 51) c 52)c 53) b 54) c 55) c 56) a 57)a 58) a 59) b 60) a 61) a 62) a 63) c 64) b 65) b 66) d 67) a 68) both c and d 69) b 70) c 71) b 72) b 73) b 74) b 75) c 76)c 77) a 78) b 79) match 80)c 81)b 82)a 83)c 84)c 85) a 86)a

Section – B 5 Marks Questions [QUESTIONS 1 TO 21]

Q1. Explain the various types of planning premises. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 8/56

Ans. Planning premises is the anticipated environment in which plans are expected to operate. Planning premises are all those assumptions, circumstances and conditions that are present at time of making plan. Types of planning Premises 1) External Premises: They exist in the organizations external environment. E.g. Economic, Social, cultural, political and market environment. 2) Internal Premises: These exist in the organizations internal environment E.g.: strength and weakness, its structure, its product etc. 3) Tangible Premises. These are those premises, which can be measured quantitatively like sales forecast, labor hour, machine hour, unit of product etc. 4) Intangible premises. They are those premises which are quantitative in nature e.g. image of company. 5) Controllable Premises. These are those premises which can be controlled by organization, e.g. organization's policy, its structure its system, procedure etc. 6) Uncontrollable Premises. These are the external Premises and outside the control of organization e.g. Rate of economic growth, market share of a companies product, labor of taxation. Q2. Discuss the process of MBO? Is MBO successful in India? Ans. Management by objective (MBO) is comprehensive managerial system that integrates many key managerial activities in a systematic manner in such a way so that the objective of organization is achieved. MBO is setting up of objective of organization, making plans by the managers taking help and particulars of subordinates.

Process of MBO The process of MBO begins with the setting of subordinate’s objectives jointly by the immediate superior and ends with the performance appraisal of the subordinates. 1) Set up the organizational objectives 1) Decide the key result areas. 2) Set the subordinate objective 3) Match resources with the objective 4) Implementing and maintaining self control 5) Appraise the performance 6) Provide the feedback.

MBO in Indian Organization In India there is very limited scope of MBO. Very few organizations have applied MBO. At Initial Stage, MNC's have applied the concept of MBO. In 1969 MBO made a systematic entries through management Institution in Hyderabad, Administrative staff college of India. They organized seminar a MBO in which head of many companies participated like Galaxo, Wipro, Hindustan Level Limited, Tata, Ranbaxy, Procter and Gamble.

Q3. Explain the McKinsey’s 7-S approach. Ans. 1. Strategy: The direction in which an organization wants to move in the long run so as to commit organizational resources to a specific plan made towards accomplishment of predetermined goals. 2. Structure. The basic organization of the company i.e. its various interrelationships – the departments, the hierarchy and associated authority – responsibility relationships 3. System: The formal and informal procedures that govern the operation of the organization. The theorists suggest that the 3Ss – strategy, structure, and systems can be thought to be PRINCIPLES & PRACTICE OF MGT. (BCA 2) 9/56

the ‘hard Ss’ of the entire approach because of their inherent nature. The following 4Ss are tangible and flexible and to were taken to be ‘Soft Ss’ of the approach. 4. Skills: The unique diversifiable competency of the organization personnel. 5. Staff: The human resource of the organization – studying the demographic ands social characteristics like average age of the manager. 6. Style. The rhythm of work and the overall culture that flows within an organization. 7. Shared values. The collective values for which the organization stands for as each individual merges his personal values and interest with these shared values.

Structure

Strategy Systems

Shared values

Skills Style

Staff

Q4. Explain hygiene maintenance theory of motivation. Ans. Hygiene Model. - Motivation refers to the way in which urges, drives, aspirations, strivings or needs, direct, control or explain the behaviour of human beings. According to Herzberg there are few factors, which motivates a person to work. He divided these factors into two forms – motivational factor and hygiene factors (or Maintenance factor). Maintenance Factor – These factors provide no motivation to the employee, but absence of these factors serves as dissatisfaction. Motivational Factors – These are that factor, which provides motivation to the employees, their absence will not cause dissatisfaction, but their presence will certainly motivates employees. Example of maintenance of Hygienic factors Motivational factors.  Company policy and Achievement Administration  Technical supervision Recognition  Working Conditions Advancement  Interpersonal relations with Work itself peers.  Salary Possibility of growth  Job security Responsibility  Personal Life  Status

Q5. Why a manager should do socially responsible acts and take ethical decision? Should profit be the main guiding principle in decision making. Ans. As we all know, today business is customer oriented. Customer is the king. To survive in the market it is very important that every manager should do socially responsible acts and take ethical decisions. Social responsibility refers to businessman's decisions and action taken for reasons at least partially beyond the firms direct economic interest. Following are PRINCIPLES & PRACTICE OF MGT. (BCA 2) 10/56

some reasons to keep the manager socially responsible and ethical :

i) Business is a part of society ii) To avoid the government regulations and legal compilations. iii) To keep the long-term interest of the business iv) To maintain the traditional values v) In order to keep the peace in the society. vi) In order to do welfare of employees

II) Should profit be the only motive of business? No, as we have already discussed the concept of business, it has been changed. Now it is customer oriented and society oriented. So profit should not be only objective of business because the other objective like social objective, human objectives, and national objectives should be also given equal importance. Business has long life, so profit making can be good only in the short run. For maintaining the long life, the other objectives should not be ignored.

Q6. What is the difference between formal organization and informal organization? Ans. Formal Organization Informal Organization 1) It is structured organization, 1) It is a natural outcome at deliberately designed to achieve the work place. It is not some particular objective. designed or planned. 2) It is designed by the top 2) It is created by the members Management itself on basis of their personal likings or dislikings. 3) It is based on division of labour. 3) Membership is voluntary 4) Authority and responsibility 4) Behaviour of members is assigned to each job. coordinated by the group Norms. 5) Formal organizations are large 5) The informal organization in size. are small in size. Q7. Define motivation and the Maslow’s need theory of Motivation. Ans. Motivation is an inner drive, which makes a person behave and act in a particular manner. Mc Celland defined motivation as "Motivation refers to the way in which urges, drives, desires, aspirations, need, directs or controls or explain the behaviour of human behavior

Characteristics of Motivations 1. Motivation is an internal feeling. Needs are feeling in the mind of a person, that he lacks certain things. Such feelings affect the behavior of the person. Motivation is a psychological phenomenon, which generates with in individual. 2. Performance is the result of ability and motivation. If an employee is highly qualified but his performance is very poor, it can be due to the absence of motivation. Therefore Performance = Ability *Motivation 3) Person in totality, not in part, is motivated. Each individual in the organization is a self contained and inseparable unit and his needs are interrelated. These affect the behavior in different way. Moreover feeling of needs is a continuous process as such these are continuing in human behavior. Maslow’s need theory of motivation. – This theory is based on the fact that human beings have five stages of needs, which makes an individual to work or behave or react in a particular manner. A.H. Maslow developed a conceptual framework for understanding the human motivation. Process of motivation begins with an assumption that behaviour is directed towards the achievement of satisfaction of needs. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 11/56

Self Actualization

Self esteem

Social Needs

Safety needs

Physiological needs

Maslow stated there are five type of needs present in human being.

1) Basic physiological needs. - This need is related to food clothing, shelter, air, water, other necessity of life. 2) Safety and security needs. - Like need of job security, personal security, security of income, provision of old age? 3) Social needs. - Need for affiliations, love, and exchange of feelings, sociability, feeling of grievances and sharing them with others. 4) Esteem and statues Needs. - Need for self-confidence, Ego, independence, achievement, status competence, knowledge and success. 5) Self-actualization needs. - To achieve final goal, find position in life, Self-development, to realize one potential to have feeling of accomplishment or fulfillment.

Q8. What is the contribution of Fayol in general principles of Management? Ans. Fayol has given fourteen principles of management, which will make the improvement in the working of the organization. 1. Division of work –It means divide the work among workers. Division of work will bring specialization among workers. 2. Authority and responsibility - The authority and responsibility are related with each other, they are two sides of one coin. Proper authority should be given in order to get the work done responsibility. 3. Discipline - All persons working in one organization should be displeased. Discipline is obedience, application, energy, behavior and mark of respect shown by employees. Discipline is self imposed discipline (Discipline by) or command discipline (i.e. discipline imposed by some authority) 4. Unity of command- Means a person should have only one boss. A person should get order and instructions from one superior only. 5. Unity of direction- According to this principle each group of activities with the same objective must have one head and one plan. 6. Subordination of individual to general interest-Common interest of organization is more important than the interests of the individual. 7. Remuneration of Personnel: Remuneration of employees should be fair and provide maximum satisfaction to the employees and employers. 8. Centralization. - Every activity, which reduces the subordinates role and authority, is centralization. Decentralization is to increase the authority and power of subordinates. Centralization and decentralization should be in the equal proportion. 9. Scalar chain. -There should be chain of authority and of communication ranging from highest level. Communication should flow in a hierarchy in the organization. 10. Order. - This is a principle related to the arrangement of things and people in proper order. There should be a place for everything and everything should be in its proper place. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 12/56

11. Equity. - Means a combination of justice and kindness. Equity in treatment and behaviour is liked by every one and brings locality in organization (Equity means equal treatment) 12. Stability of Tenure. - There should be a reasonable security of job. If the jobs of the employees are stable then they will provide more output. 13. Initiative. - Manager should encourage employees to take initiative (Start) or participate in the activities of organization. 14. Esprit de corps. - This is the principle of union is strength i.e. manager should encourage the concept of unity among its employees, as unity is diversity.

Q9. What are the functions of management? Ans. Management performs six functions. These are. 1) Planning. - It is the process of thinking about future. It is to determine the future course of action. This involves why, what when how, and where to do action. 2) Organizing. - Organizing is the process of dividing work into convenient tasks or duties and grouping of such activities. Making organization structure, defining position, giving them authority and responsibility. 3) Staffing. - Staffing involves mapping the various positions created by the organizing process. It includes preparing inventory of personnel (man-power) (How many number of person are required in the organization) 4) Directing. -Means to guide, to show them direction. Telling the subordinates that what manager expects from them. 5) Co-ordination. - It is synchronization of all the activities. Coordination is a group process by which harmony in organization is brought up. 6) Controlling. - Means to keep a check. Controlling means to compare the actual performance with the standards set; see where the difference lies between actual and standard performance and if difference arises then taking a corrective action for it.

Q10. Do you think management helps in achieving the goals of an organization? Give several line examples to support your answer? Ans. Management is the art of securing maximum prosperity within a minimum of effort. When the theme is an organizational group of people working towards common goals, some type of management becomes essential. It has been rightly said that 'anything minus management amounts to nothing. In the case of business enterprise, management is all more important because" no business runs on itself. According to Peter Drucker,' Management to a dynamic life giving elements in an organization. In its absence the business cannot survive and run efficiently. The following points further highlight the importance of management. Achievement of group Objective It is the management, which helps the employees to realize the objective of group, and directs their efforts towards the achievements of these objectives of the organization. Optimum Utilization of resource No business activity can be undertaken without the five factors of production i.e. the land, Labour, capital, enterprise and the management. The four factors may prove ineffective in the absence of fifth that is the management. It is the management, which makes optimum utilization of research possible. In the words of Urwick and French " No Ideology, no political theory can win greater output with less efforts, only sound management”.

Minimization of cost (to combat rising competition) In the present days of increasing competition only those organization can survive which produce quality goods at the lowest of cost through better planning, sound organization & effective control. Management enables a concern to reduce cost and enables an enterprise to face cut-through competition. Increased Profits Profit can be increased in any organization either by increasing the sales or reducing cost. Management by reducing cost increases the profit & provides opportunities for future growth & development. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 13/56

Smooth running of business Management ensures efficient and smooth running of business through better planning, sound organization, effective control and the various tool of management. Provide Innovation Management provides new Ideas, imagination and illusion to the organization. Change of growth An enterprise operates in a changing environment. Management moulds not only the enterprise but also alters the environment itself to ensure the success of the business. In order to meet the challenge of automation and the complexities of advanced technology also there is a need for the development of management. Social Benefits Management is beneficial not only to the business enterprise but to the society as a whole. It raises the standard of living of the people by providing good quality products and services at the lowest possible cost. It also makes the optimum use of scarce resources & promotes peace & prosperity in the society. Special importance of Management in India's Developing Economy Management has to play a more vital role in the developing countries, like India where productivity is low and the relevance limited. It has been rightly said, " There are no under-developed counties. There are only under managed one’s." Line Example Microsoft. In the recent past worlds leading Giant software co Microsoft was taken to court on some capital issues. If the company lose the case they might have to pay half to their capital to the court, but they adopted such strategy that they won the case & then management help the company to survive in the changing world.

Q11. Explain motivation and its characteristics. Ans. In an organization management has to coordinate various factors of production in such a way that each factor contributes to its maximum efficiency to achieve organizational goals. So far as non-human factors i.e. Materials, machines etc. are concerned with the efficiency depends largely upon the type of technology followed by the performance levels of human factors, which handle and control non-human factors. Thus to make total factors efficient and effective, one has to improve the performance level of human beings in the organization. Their performance is determined by two factors i.e. level of ability to do certain work and second is level of motivation. Further, these two factors are to be multiplied rather than added. This can be expressed as Performance = Ability X Motivation Thus performance level will be high if both of these are high, if a worker is very capable of doing certain things but he is otherwise not willing to do the work his performance level would not be high while ability to do is governed by education and training, willingness to do can be effected by the factors governing human behavior in the organization. Motivation has come from motive wheels, which are expression of human needs by a human being. In fact the activities of human beings are the cause and behind every action, there is particular motive or need. Motivation is the process of inducing person to experience needs for certain desired behavior so that organizational efficiency is achieved. Various persons have defined motivation in their own words. However the basic contents are the same e.g. Scott has defined motivation as follows. “Motivation means are process of stimulating people to action to accomplish desired goals " As against this, Mc Forland has defined as, “Motivation refers to the way in which urges, drives, desires, aspiration, aspirations, need, directs, controls or explain the behavior of human behavior Characteristics of Motivations 1) Motivation is an internal feeling. Needs are feeling in the mind of a person, that he lacks certain things. Such feelings affect the behavior of the person. Motivation is a psychological phenomenon, which generates with in individual. 2) Performance is the result of ability and motivation. If an employee is highly qualified but his performance is very poor, it can be due to the absence of motivation. Therefore Performance = Ability *Motivation PRINCIPLES & PRACTICE OF MGT. (BCA 2) 14/56

3) Person in totality, not in part, is motivated. Each individual in the organization is a self contained and inseparable unit and his needs are interrelated. These affect the behavior in different way. Moreover feeling of needs is a continuous process as such these are continuing in human behavior.

Q12. How for motivation help in increasing efficiency of organization? Differentiate self-motivation and management induced motivation. Ans. Motivation helps increasing organizational efficiency in following ways (Importance of Motivation) Motivation is one of the most important factors determining organizational efficiency. All organizational facilities will go waste in the lack of motivated people to utilize these facilities effectively. Every superior in the organization must motivate his subordinate for right types of behavior. 1. High performance level. Motivated employees put higher performance as compared to other employees. In a study by William James, It was found that motivated employees worked at close to 80-90% of their ability. The high performance is almost for an organization being successful and this performance comes by motivation. 2. Low employee turnover and absenteeism. Motivated employees stay in the organization and their absenteeism is quite low. High turnover and absenteeism create many problems in the organization. Recruiting training and developing large no. of new personnel into a working terms take years. In a competitive economy, this is also an impossible task. . Difference between Self Motivation and management induced Motivation is as follow. Self-Motivation. It can be defined as the ability to persist in the face setbacks and failures. Self-motivation is affected by the needs, motives, past experience, current psychological needs and his attitude. Self- motivation is a general term i.e. it totally depends on the ambition of the person. If he need something he will motivate himself to that thing without any others interference. Self-motivation also depends upon the past experience i.e. he has failed in past he will be motivated to be successful and he will work hard in that direction. In nutshell we can conclude that self-motivation is an internal feeling unaffected by the desires of others. Management Induced motivation Management induced motivation is the process that account for an individual’s intensity, direction and persistence of effort towards attaining a goal. In general motivation is concerned with effect toward any goal but in this motivation is organizational goal in order to reflect single work behaviour. Motivation is an effective instrument in the hand of managers for inspiring the work force & creating a confidence in it. By motivating the workforce management creates " will to work " which is necessary to achievement of organization goals. At the end we can say that motivation is the tool of management.

Q13. Explain briefly various types of plan. Ans. The plans may be classified as follows. Plans Standing / Repeated use plan Single use plan -Objectives - Programme -Policies -Budget - Procedures -Rules -Strategies

Standing Plans 1. Objectives. Objective are the ends for the achievement of which managerial activates are directed – effective management is possible only through the setting up of objectives and all managerial efforts should be directed to achieve these objective. It constitute the purposes, the attainment of which is necessary for the business. An organization can grow in an orderly way if well-defined goals have been set. Objective is a pre-request for planning. No planning is possible without setting up of objectives. Objectives are not only helpful in planning but also in other managerial functions like organization, directing and controlling. Clear out objectives help in proper decision-making and in achieving better results. Profit earning was considered to be the only objectives of the business in the recent past. But it is no longer true. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 15/56

No doubt, profit is the main objective of a business concern but it is not only objective. The awareness of social responsibility has exploded the myth of profit objective. Characteristics of objectives 1. Hierarchical pattern 2. Objectives are inter-related. 3. Objectives are multiple in natures. 4. Objective may be realistic and operational 5. Objectives may be long-term or short term.

2. Policies Policies are the general statements, which are formulated by an organization for the guidance of its personnel. The objectives are first formulated and then policies are planned to achieve them. Policies are made of thought and the principle underlying the activities of an organization. Policies do not require action, but are intended to guide managers in their decision making process. Policies provide a framework within which person has freedom to act. According to George R Terry "Policy is a verbal, written or implied overall guide setting up boundaries that supply the general limit and direction in wherein managerial action will take place." 3. Procedures Procedures are details of actions or the guidelines for achievement of business objective. Procedures give details of how things are to be done i.e. no room is left for judgment. These should help in implementation of policies. Procedures also determine the policy of responsibility. . According to Koontz and O’Donnell "Procedure is a series of relative tasks that make up the chronological sequence and the established way of performing the work to be accomplished”. 4. Rules A rule is a plan that lays down required courses of action with regard to a situation. A rule is in the nature of decision made by management regarding what is to be done and what is not to be done in a particular situation. A rule is definite and original and always no deviation to the subordinate. Like procedures, rules do not follow a chronological sequence of steps to be taken to achieve a given objective. A rule may or may not be a part of the procedure. A rule such as No Smoking in the factory will not form a part of procedure. On the other a rule to make payment with in 21days will be part of a procedure. 5. Strategies A strategy is a technique of own maneuvers the opponent. A planner should see the plans and policies of his competitions and then modify or readjust his plan. So that he may provide the superiority of his product or service. It is difficult to distinguish b/w policies and strategic, sometimes both are used interchangeably. A strategy is a policy in the respect that it is a broad term to think but a strategy is a particular kind of policy.

SINGLE USE PLANS Programme. A programme is a sequence of activities designed to implement policies and accomplish objectives. It is devised to meet a particular situation. Programme may be taken as combination of policies, procedures, rules, budgets, tasks assignment etc. developed for the specific purpose of carrying out a particular course of action. Programme is prepared for accomplishing different tasks. The same programme may not be used for achieving other goals. It is a single use plan lay down for new and non-repetition activates. Budgets A budget is the monetary expression of business plan and policies to be used in the future period of time. The term budgeting is used for preparing budgets and other procedures for planning, co-ordination and control of business. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 16/56

According to George R. Terry "A budget is an estimate of future needs answered according to an orderly bases covering some or all of the activates of an enterprise”.

Q14. Explain the steps in the process of planning. Ans. The various steps involved in the process of planning are. Steps in planning Planning process involves the setting up business objectives and allocation of resources for achieving them. Planning determines the future course of action for utilizing various resources in a best possible way. It is combination of information handling and decision making system based on information inputs, outputs & feedback loop. Following steps are taken in planning process. a) Recognizing Need for action. The first step in planning process is awareness of business opportunity and the needs for taking action. Present and future opportunity must be found so that planning may be undertaken for them. The trend of economic situation should also be visualized. b) Laying Dawn Objectives. Objectives are the goals, which the management tries to achieve. The objectives are the end products and all energies are divided to achieve these goals. Goals are thread, which binds the whole company. Planning stands with the determination of objectives. Objectives are the guidelines for employees c) Gathering Necessary Information. Before actual planning is an initiated relevant facts and figures are collected. All information relating to operations of the business should be collected in detail. Information can be collected by market survey. d) Determining planning Premises: The next step is to find out the conditions under which planning activities can be undertaken. These conditions may be internal or external. External conditions are govt. policies, suppliers, and raw materials etc. Internal conditions are availability of funds, skilled labour, and latest machinery. Planning is based on these types of conditions. e) Examining alternative course of action The next step in planning is to identify alternative courses of action e.g. to develop more than one courses of action .All the information should be studied carefully so that number of alternatives can be made. f) Evaluation of action pattern After choosing a course of action, the next step will be to make an evaluation of those courses of action. It involves the study of performance of various actions .The analyst should carefully find our expected results. They also study how much time to be taken to complete the project. How much risk is involved in it? g) Implementation of plan The last step in planning process is the implementation. The implementation will require establishment of policies, procedures, standards and budgets. After studying the various plans, the management should choose the best alternative and communicate this plan to the concerned employees so that they can follow these guidelines for achieving the objectives. h) Follow Up: In this step we check the progress of the plan and note down its shortcomings and weaknesses. These shortcomings should be rectified without nay delay and all future plans should be made in the light of these shortcomings

Q15. Define Management, what is nature of Management. Ans. “Management is art of getting things done through others”. Management can be defined alternatively in three different ways. 1. Management as discipline 2. Management as a group of people 3. Management as a process 1. Management as a discipline: It refers to a field of study having well defined concepts and principle. So it is both science and art. 2. Managements as group of People: It refers to all those personnel who perform managerial functions in organizations. E.g. Manager and subordinates. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 17/56

3. Management as a Process: Management is considered as a process, which includes all the activities –starting from the setting up of objectives of a business enterprise to the taking up of these steps that ensure the attainment of these objectives. So, management is a process, which involves planning, organizing, staffing, directing and controlling human efforts to achieve stated objectives in organization. Nature of Management. - 1. It is multidisciplinary in nature. (Takes help from different disciplines line economics, Psychology, operation research Sociology). 2. It has principle of dynamic nature. (i.e. principle changes with the change in the situation and environment) 3. Management is science as well as art. 4. Management is a profession. 5. Management is a process of organized activities. 6. Management sets the relationship among the resources. 7. Managements principles are relative (i.e., change with the change in organization) not absolute (rigid) in nature. 8. Management principles are universally applicable with little modification.

Q16. Contribution of Henry Fayol to development of Management thought. Ans. Henry Fayol was French industrialist; He has given contributions in the field of management. Fayol has divided the activities of an Industrial Organization into six groups. These are. 1. Technical (relating to production) 2. Commercial (Buying, selling and exchange) 3. Financial (search for money and its use capital) 4. Security (Protection of properties and person 5. Accounting (Book keeping) 6. Managerial (planning, organizing, directing Co ordination)

Besides this he had given principles of Management 1) Division of work –It means divide the work among workers. Division of work will bring specialization among workers. 2) Authority and responsibility - The authority and responsibility are related with each other, they are two sides of one coin. Proper authority should be given in order to get the work done responsibility. 3) Discipline: Discipline is obedience, application, energy, behavior and mark of respect shown by employees. Discipline is self-imposed discipline (Discipline by) or command discipline (i.e. discipline imposed by some authority) 4) Unity of command- Means a person should have only one boss. A person should get order and instructions from one superior only. 5) Unity of direction- According to this principle each group of activities with the same objective must have one head and one plan. 6) Subordination of individual to general interest-Common interest of organization is more important than the interests of the individual. 7) Remuneration of Personnel: Remuneration of employees should be fair and provide maximum satisfaction to the employees and employers. 8) Centralization. - Every activity, which reduces the subordinates role and authority, is centralization. Decentralization is to increase the authority and power of subordinates. Centralization and decentralization should be in the equal proportion. 9) Scalar chain. -There should be chain of authority and of communication ranging from highest level. Communication should flow in a hierarchy in the organization. 10) Order. - This is a principle related to the arrangement of things and people in proper order. There should be a place for everything and everything should be in its proper place. 11) Equity. - Means a combination of justice and kindness. Equity in treatment and behaviour is liked by every one and brings locality in organization (Equity means equal treatment) PRINCIPLES & PRACTICE OF MGT. (BCA 2) 18/56

12) Stability of Tenure. - There should be a reasonable security of job. If the jobs of the employees are stable then they will provide more output. 13) Initiative. - Manager should encourage employees to take initiative (Start) or participate in the activities of organization. 14) Esprit de corps. - This is the principle of union is strength i.e. manager should encourage the concept of unity among its employees, as unity is diversity.

Q17. Explain the term planning and its various features. Ans. Planning is thinking in advance about future”. Planning is a process which involve determination of future course of action Planning tells what is to be done How it is to be done? Who will do it? When it is to done? What it is to be done? Features of Planning: 1. Planning is a primary function of management: The functions of management are broadly classified as planning, organization, direction and control. It is thus the first function of management at all levels. Since planning is involved at all managerial functions it is rightly called as an essence of management. 2. Planning focuses on objectives: Planning is a process to determine the objectives or goals of an enterprise. It lays down the means to achieve theses objectives. The purpose of every plan is to contribute in achievement of objectives of an enterprise. 3. Planning is a function of all managers: Every manager must plan. A manager at a higher level has to devote more time to planning as compared to person at the lower level. So the President or Managing Director in a company devotes more time to planning than the supervisor. 4. Planning is an intellectual process: Planning is a mental work basically concerned with thinking before doing. It is an intellectual process and involves creative thinking and imagination. Wherever planning is done, all activities are orderly undertaken as per plans rather than on the basis of guesswork. Planning lays down a course of action to be followed on the basis of facts and considered estimates, keeping in view the objectives, goals and purpose of an enterprise. 5. Planning is continuous process: It is a continuous and permanent process and it has no end. A manager makes new plans and also modifies the old plans in the light of information received from the persons who are concerned with the execution of plans. It is a never-ending process. 6. Planning is dynamic: It is dynamic function in the sense that the changes and modifications are continuously done in the planned course of action on account of changes in the business environment. As factors affecting the business are not with in the control of management, necessary changes are made as and when they take place. If modifications cannot be included in plans it is said to be bad planning. 7. Planning involves forecasting: Planning largely depends upon accurate business forecasting .The scientific techniques of forecasting helps in projecting the present trends into future. 8. Planning has limitations: A plan should be formulated in the light of limiting factors, which may be any one of five like men, machine, money, materials and management. 9. Planning secures efficiency, economy and accuracy: A pre-requisite of planning is that it should lead to the attainment of objectives at the least cost. It should also help in the optimum utilization of resources by securing efficiency, economy and accuracy in the business enterprise. Planning is also economical because it brings down the cost to the minimum

Q18. Define policy, its characteristics. On which basis policies can be classified. Ans. Meaning. “Policy is a verbal, written or implied overall guide setting up boundaries that supply the general limits and direction in which managerial action will take place.” Policies are specific guidelines and constraints for managerial thinking on decision-making and action. They provide the framework within which the decision makers are expected to operate while making organizational decisions. As such, they are the basis of executive operations. These are the planned PRINCIPLES & PRACTICE OF MGT. (BCA 2) 19/56 expression of the companies official attitudes towards the range of behavior within which it will [permit or desire its employees to act. But they provide scope for interpretation. They are guides to thinking and lead to consistent decisions at some future point of time. The purpose of policy formulation is as under. 1. To ensure that there will be no deviation from planned course of action. 2. To ensure consistency of action 3. To provide a guide for thinking in future planning 4. To leave scope for interpretation. Policies may be of different types, which are as follow: 1) Top management policies: A policy made by the top management is the fundamental policy and its objective is to achieve the basic goals of the organization. These types of policies effect the all business plans. These policies are long term in nature. 2) Middle Management policies: These are the general policies of the enterprises and affect the large part of the enterprise. For example: sale policy of the enterprise may be to sell the goods at cheap rates at the initial points. 3) Departmental policies: These are the usual or regular policies made by the lower management .For example: Workers may have to apply 15 days in advance if they want to go long leave. 4) Written and unwritten policy: A policy, which is written in the form of statement, is known as written policy and the policy which is orally communicated is called as unwritten policy. 5) Implied policy: These are the policies, which are neither written nor verbal but exist in the working environment. These policies can be known by watching the actual working of the organization 6) Functional policy: The policies, which are related to, the various functions of the enterprises called as functional policy. For example: a) Financial policy b) marketing policy

Q19. What is BCG model? Or what is Portfolio matrix? Ans. The BCG matrix compares various businesses in an organization’s portfolio on the basis of relative market share and market growth rate. Relative market share determined by the ratio of a business’s market share (in terms of unit volume) compared to the market share of its largest rival. Market growth rate is the growth in the market during the previous year relative to growth in the economy as a whole. The combinations of high and low market share and high and low business growth rate provide four categories for a corporate portfolio. (Hedley, Naylor).

High

Stars Question Marks Market Growth Rate Cash Dogs Cows

Low

High Low Relative Market Share  Stars. SBUs that are stars have a high share of a high-growth market and typically require large amounts of cash to support their rapid and significant growth. They have additional growth potential and so, profits should be ploughed back into this business for future growth and profits.  Cash cows. SBUs that are cash cows (provide lot of cash of the firm) have a high market share of a slowly growing market. As a result, they tend to generate more cash that is necessary to maintain their market position. Cash cows are often former stars ad can be valuable in a portfolio because they can be ‘milked’ to provide cash for other riskier and struggling business.  Question marks (problem child or wild cat). SBUs that are ‘question marks’ have a small share of a high growth market. The question mark business is risky, since there is already a market leader in that business. As such, it requires lot of funds to invest in plant, equipment and personnel, in order to keep pace with the fast-growing market. The term question mark is well conceived, PRINCIPLES & PRACTICE OF MGT. (BCA 2) 20/56

because at every stage the organization has to think hard about whether to keep investing funds in the business (to turn it into a star) or to get out.  Dogs. SBUs that are ‘dogs’ have a relatively small share of a low growth market. They may barely support themselves, or they may even use cash resources that other SBUs have generated. Usually, dogs are harvested, divested or liquidated (if turnaround is not possible). After the SBUs of an organization have been plotted on the growth-share matrix, the next step is to evaluate whether the portfolio is healthy and well balanced. A balanced portfolio; obviously has a number of stars and cash cows and not too many questions marks or dogs. Depending on the position of each SBU, four basic strategies can be formulated while building a balanced portfolio.  Heavily invest in stars. High market share and high industry growth mean higher probability of future success.  Maintain cash cows because they provide resources of future growth-investment in wild cats and stars.  Use selective resource allocation for wildcats to convert them into stars.  Liquidate or divest dogs that are not worth, investing in to improve their position.

Q20. What are the techniques used in forecasting? Ans. Techniques of Forecasting The various techniques of forecasting may be classified into two major categories. 1. Quantitative and 2. Qualitative. Quantitative techniques apply various statistical tools to data for predicting future events. They include Time Series Analysis, Regression Analysis, Econometric Models and Extrapolation. Qualitative techniques employ mainly human judgment to predict future such as Historical perspective (business barometers), Panel Consensus, Delphi Method and Relevance Tree Method. These methods are used where data is not readily available. For instance, quantitative methods cannot be used to forecast technological environment. A brief discussion of various quantitative and qualitative methods of forecasting is given below. 1.Time Series Analysis. Time series analysis assists to identify and explain any regular or systematic variation in the series of data which is due to some seasonal and cyclic trends that repeat after every two or three years or more. With the help of time series analysis, using the method of least squares, which is the best indicator of the trend, can identify a trend line. Time series analysis provides an initial approximation forecast that task into account the empirical regularities, which may be expected to persist. After the seasonal effects have been identified and measured, the original data may be adjusted for these influences, yielding a new historical time series consisting of the trend and seasonally adjusted data. The new time series may be used in the analysis and interpretation of cyclical and residual influences. This method has certain limitations also. Since the future does not always reflect the past, the time series analysis may give misleading results in some cases. Moreover, this method can be used only when data of several years are available. 2. Regression Analysis. Regression analysis is the mean by which we can select among the many possible relationships between different variables, which are relevant to forecasting. If two variables are functionally related, then the knowledge of one will make possible an estimation of the other. For instance, if it is known that advertising expenditure and sales are correlated, then we can find out the probable increase or decrease in sales with the given increase or decrease in the advertising expenditure. Regression analysis also helps in forecasting where there is one dependent variable and several independent variables. The help of computer programme may be sought to solve the regression equations that are very complex and time consuming. 3. Econometric Models. Econometrics refers to the application of mathematical economic theory and statistical procedures to economic data in order to verify economic theorems and to establish quantitative results. Econometric models take the form of a set of simultaneous equations. The number of equations may be very large in some cases. So the help of electronic data processing equipment may be sought to solve these equations. It is also significant to point out that the development of an econometric model requires sufficient data so that the correct relationships can be established. The econometric models reveal, in quantitative terms, the way in which various aspects of a problem are interrelated. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 21/56

4. Extrapolation. This technique is used frequently for sales forecasting and other estimates when other forecasting methods may not be justified. It is the simplest method of forecasting. In many forecasting situations, it can be expected more reasonably that the variable will follow its already established path. Extrapolation assumes the relative consistency in pattern of past movements in some time series.

Qualitative techniques:

1. Historical perspective (Business Barometers). Historical perspective technique uses business barometers to make business forecasts. The term ‘barometer’ is used to indicate the economic situations. The assumption behind the use of business barometers, i.e. various indices, is that past patterns tend to repeat them in the future and that the future can be predicted with the help of certain happening of the present. The various barometers, which can be used in forecasting, include gross national product, wholesale prices, consumer’s prices, industrial production, volume of money supply, stock exchange quotations, etc. Some of these index numbers may also be combined into a general index of business activity. The general index refers to general conditions of commerce and industry. However, this composite index may show quite contrary tendencies from those of some of its components. So proper care must be taken while using the index numbers for business forecasting. If the business barometer being used is reliable, it will reduce the chances of wrong forecasting. 2.Panel Consensus Method. Under this method, data is presented to a group of experts. The list of experts related to particular problem area is prepared with great care and the experts are brought together to have a face-to-face discussion and arrive at a common decision. Such a forecast is expected to prove better as compared to a forecast made by one expert. Several experts can determine better forecast than one working alone. 3.Delphi Method. The Delphi technique is a group process that anonymously generates ideas and judgments from physically dispersed experts. A manger begins the Delphi process by identifying the issues he or she wants to investigate .For example, A manager might want to inquire about customer demand, customer future preferences or the impact of locating a new plant in new region. Next participants are identified and questionnaire is developed. The Questionnaire is sent to the participants and returned to the manager. The manager then summarizes the responses and sends feedback to the participants. At this stage participants are asked to review the feedback 2) prioritize the issues being considered and return the survey with in a specified time period. This cycle repeats until the manager obtains the necessary information. 4.Relevance Tree Method. In its normative application, the purpose of the relevance tree method is to help the business in determining objectives and predicating ways to attain them. According to this method, the feasibilities of the future objective is judged first of all, and by working backwards, attempt is make to find the technological innovations needed to achieve the objective. In its exploratory application, the relevance tree method is similar to the decision tree method of decision-making. It is used to develop alternatives and to determine the most desirable course of action. Q21. Explain the theory x theory y of motivation. Ans. McGregor has given the theory of motivation called theory X and theory Y. These are based on two distinct viewpoints of human beings. Theory X deals with one extreme, based on one set of assumptions and Theory Y, deals with other extreme based on other set of assumptions. Theory X Theory X emphasis on management by direction and control. It states that people are lazy, avoids responsibility, dislike work and will continue to avoid work and shirk responsibility. They should be forced to perform work. Management must punish them if they avoid work, and give reward if anyone performs work up to standards. Assumptions of Theory X are. 1. The average human beings inherently dislike work and will try to avoid it, wherever possible. 2. Employees must be controlled, coerced, threatened with punishment to achieve goals, to which they are indifferent. 3. Employees have little ambitions so try to avoid responsibility and seek formal directions. 4. Most workers place security above all other factors associated with worker. Theory Y PRINCIPLES & PRACTICE OF MGT. (BCA 2) 22/56

Theory Y emphasis on cooperation between management and employees. It States that people take work as play, they like work, people are optimistic, self-directed. Therefore, If people are satisfied, then they will perform better. They can be motivated by delegation of authority, job enlargement, and workers participation.

Assumptions of Theory Y are: 1. Human beings do not inherently dislike work. They can view work as natural and enjoyable. 2. Employees are committed to objectives and exercise self-control and self-direction for their attainment. 3. They can learn and can even seek responsibility, if provided with proper working conditions. 4. Commitment to objectives is a function of rewards associated with achievement. 5. All people are capable of making creative and innovative decisions.

Q1. Explain the Theory Z. Ans. The Type Z model, as argued by William Ouchi in 1981, is an attempt to integrate common business practices in the United States and Japan into a single middle-ground framework. Ouchi suggest that there are many traditional U.S. firms (which he calls Type A companies) and a similar set of traditional Japanese companies (Type J). He argues that these firms are difference along seven important dimensions. (1) length of employment, (2) mode of decision making, (3) location of responsibility, (4) Speed of evaluation and promotion, (5) mechanisms of control, (6) specialization of career path, and (7) nature of concern for the employee. For example, some Japanese firms are characterized by lifetime employment opportunities and collective decision making, whereas their American counterparts offer short-term employment and rely on individual decision making. Theory Z is not a contingency theory of management. Ouchi suggested that this style of management is universally better than the traditional American approach and prescribes Theory Z as appropriate for almost any management situation. In fact, in many ways, Theory Z reflects a return to the outdated “one best way” thinking of behavioral management theory. In the tradition of behavioral management, Theory Z identifies employs as a key component of organizational productivity and effectiveness. It prescribes how employees “should be’ managed so that organizational efficiently and effectiveness implement and a concern for employees’ total life.

Q2. Explain the terms authority, responsibility and delegation of authority. What are the features of delegation of authority? Ans. Before defining the 'delegation of authority', it is necessary to know the meaning of word 'authority ' and responsibility. Authority. -According to Simon "Authority may be defined as the power to make decisions, which guide, the action of another. It is a relationship b/w two individual one supervisor, another subordinate, the superior frames and transmits decision that will be accepted by the subordinate. The subordinate executes such decision and his conduct is determined by them" Responsibility Responsibility is the obligation to do something. It is the duty that one has to perform in organizational tasks, functions, or assignments. Authority and responsibility go side by side. When authority is delegated then some responsibility go side by side when authority is delegated then some responsibility go side-by- side when authority is delegated then some responsibility for getting the assigned task is also fixed. According to knots and O' Donnel "Responsibility is defined as the obligation of a subordinate to whom a duty has been designed to perform the duty". Delegation of authority Delegation of authority is one of the important factors in the process of organization. The real meaning of delegation of authority means getting things done through others by giving them responsibility. Authority alone means some power but delegation means to give this power to some other person who is capable to do the right task. Delegation of authority flows from the top level to the bottom level always because top level have the powers which is to be delegated to the lower level.. In real since everyone wants some power, which is used while doing a particular work. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 23/56

There is a limit up to which a person can supervise the subordinate when the number of subordinate increases beyond it then he will have to delegate his power to others who perform supervision for him. The manager assigns duties and authority to his subordinate & issues the achievements of desired organization goals. Features of Delegation of Authority 1. Delegation of authoritie a manager to act in a certain manner. 2. Delegation has dual characteristics 3. Authority once delegated can be enhanced; reduced or withdrawn depending on the situation and requirement. 4. Delegation of authority is always to the position created through the process of organizing. 5. A manager delegates authority out of the authority vesting in him. 6. Delegation of authority may be specific or general.

Q3. Explain the process of delegation of authority. Ans. The process of delegation of authority is. 1. Determination of Result Expected Authority should be delegated to a position according to the result expected from position .It is essential that authority is delegated to accomplish expected result . It implies that result expected from each position have been identified properly. Therefore, the first requirement is the determination of contribution. 2. Assignment of duties. : The second step is the assignment of duties to the subordinate. Duties can be described in the ways. First these can be described in terms of an activity or set of activities e.g. For selling activity to salesman ,according to this view delegation involves assignment of their activities by a manager to subordinate. Second duties can be described in terms of results that are expected from the performance of activities e.g. how much sale is to be achieved by salesman. Assignment of duties in terms of results expected works better. A man’s duties will be clear to him only when he know what activities he must fulfill. 3. Authorization for action : The third step is authorization for action. This case involves the granting of permission to take action like making use of resources and the other actions necessary to get the assigned work done. This problem is essentially one of determining the scope of authority to be delegated to each particular subordinate. In the delegation process the manager confirms upon a subordinate the right to act in a specified ways or to decide within the limited boundaries. The process of delegation states out the boundaries of permissible action. Separating them from actions, which are not permissible. A ground rule in this context is that the scope of authority allocated to individual by the superior is inseparably linked with activities allocated to them. 4. Creation of obligation: The fourth and the last one step is creation of obligation. The last aspect of delegation is to create obligation on the part of subordinate for the satisfactory performance of his assignment. A subordinate is responsible for the total activities assigned to him and not only for the activities actually being performed by him .The sense of obligation required varies from the maintenance of responsibility by the superior that the work performed must meet his expectations. Q4. Explain the difference between decentralization and centralization. Ans. The difference between decentralization and centralistion is as follow. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 24/56

Centralization : In an organization if the decision-making powers vest with one person at the top, it will be called centralization. Centralization is a common occurrence in small enterprises. The success of a small enterprise depends upon dynamic manager who single headily commands the running of the concern. He takes all the decision himself. The subordinate implement these decisions. There is a direct link between the proprietor and his employees. He personally supervises all managerial function of production, marketing financing etc. In fact he and organization are one and same thing. He is consulted for every type of guidance and his counseling is final. Centralization is suited to small-scale enterprises. This is possible because the operations are limited and proprietor is able to denote personal attention to every activity of business. This type of management is useful where emergency decision is to be taken. With the expansion of business, the control becomes difficult and the need for decentralization arises. Decentralization: Decentralization implies the dispersal of decision-making power at lower levels of management. When the power to take decision and formulate policies, is passed on to different person at various levels, it will be a case of decentralization. The decisions taken at lower levels should not only be more in number but they should be less important also. Decentralization is suited to large-scale enterprise. This is because in a big concern there is large number of decisions to be taken & it will not be possible for the top management to take all the decisions. So the decision-making power is given to the lower levels & help in taking decision in large organization.

Q5. Explain methods (Types) of departmentation. Ans. The methods of departmentation are as follow: 1) Function wise departmentation: It is the most common form of departmentation .It is concerned with grouping of all activities of the business into departments who reports to the chief executive. In this form all activities are classified in production, finance, engineering, human resources, accounting etc. For example sales manager is responsible for all the selling activities. 2) Product wise departmentation: When there are many product lines and each product lines consist of a variety of items, functional classification is not appropriate to give balanced emphasis on each product .For the expansion and development of their products many big organization have created self sufficient product division based either on single product or group of related products. For example company may deal in eight or nine products lines like chemical, foodstuffs, cosmetics, drugs etc. under a separate division. 3) Geographical departmentation: Such departmentation is especially attractive to large scale enterprises or others having activities physically or geographically spread out .It is proper when its purpose is to encourage local participation in decision making and to take advantage of certain economies of localized operations. The territory is fixed for carrying out the operations e.g. eastern region, western region, southern region, and northern region. It is also found in companies where customers are served on a national and international basis. 4) Customer wise departmentation: Departmentation by customers puts a greater emphasis on the customers and distinguishes one from other eg. Industrial buyer, wholesalers, government, public undertakings. When products are offered to an extensive market through many channels it has the special benefit of supplying goods in accordance with unusual needs of the customer. The example of this type of departmentation is division of branches of State Bank of Patiala by customers and of insurance companies by the type of policyholders 5) Departmentation by process: This structure is used where the machines need special skills for operating them or have technical facilities, which make concentrated location desirable .This type of structure is mainly motivated by cost and economic considerations. Where activities are performed on the basis of sequence .Departmentation can be done on the basis of process e.g. In textile firm the division may be on the basis of spinning , weaving bleaching ,dyeing, inspection, boxing, shipping.

Q6. (a) What are the advantages of delegation? (b) What are the reasons for lesser delegation of authority by the delegator? (c) What are the ways to make the process of delegation effective? PRINCIPLES & PRACTICE OF MGT. (BCA 2) 25/56

Ans. Delegation is to import or to give away delegation of authority that means to share the authority. Manager gives away his authority and responsibility to the peers, subordinates, to get his work done from others. (a) Advantages of delegation 1. Managers responsibility and authority are distributed and its reduces his burden of work 2. As a result of delegation the subordinate receives authority from his superior and feels proud. 3. Authority once delegated can be enhanced reduced or taken back from subordinate depending upon the situation. 4. It creates an obligation on the part of subordinate and makes him feel responsible. 5. Delegation facilitates the results expected from the position. (b) The delegator (Manager) will delegate less authority due to the following reasons. 1. He lusts for authority and doesn’t want to delegate it. 2. He wants to maintain tight control 3. He has a fear of the growth of subordinate by delegating authority 4. Negative attitude of subordinate also sometimes makes the manager feels uncomfortable for delegation. 5. Autocratic superior will not like to share (delegate) his authority, as it will end his dictatorship. c) Delegation process can be made more effective by following guidelines 1) It is necessary to clear the nature and scope of the activity to the subordinate before delegating authority .If the subordinate is not clear what he has o do than the purpose of delegation will not serve its purpose. 2) There must be a balance between authority and activity .It means the authority should be proportionate to the assigned task. 3) It is necessary for subordinate to understand the limits of his authority so that he may not misuse it. 4) Positive incentive must be given to the subordinate so that he may accept responsibility. it means that some type of encouragement is required to motivate the individual.

Q7. Which factors highlight the Line and staff conflict? What are the ways to resolve them? Ans. Line and staff relationship based as the assumption that line managers and staff groups have conflicting objectives and different views to look over a situation. The three important factors, which highlight this conflict, are. - 1. View point of line manager 2. View point of staff Managers 3. Nature of line staff relationship Viewpoint of line managers 1. According to line manager’s staff people lack responsibility but enjoy their authority. 2. Line Manager take staff people as threat to eliminate their authority and position. 3. Line Managers feel that staff people interfere in their work.

Viewpoint of staff people 1. Staff people feel that manager do not make their proper use, they ignore them. 2. Staff people feel that managers don’t take their ideas. 3. Staff people feel that they are not given proper authority.

Nature of staff-line relationship: 1. Different back grounds of both 2. Different interest of line & staff 3. Lack of proper understanding.

Ways to restore the conflict 1. Co-operation between line and staff should be maintained PRINCIPLES & PRACTICE OF MGT. (BCA 2) 26/56

2. To understand the authority relationship 3. To make proper use of staff 4. To take suggestions from staff and give them proper authority.

Q8. What is rational decision-making process? Ans. Steps in Rational Decision Making A rational decision is backed by a scientific process involving analysis of the problem, collection of relevant data, review of key factors, evaluation of alternatives and choice of best alternative. Such a decision could be justified on a logical basis and does not suffer from the personal bias of the decision maker. Rational decisions making involves the following stages.

1. Diagnosing and defining the problem. 2. Analyzing the problem 3. Collection of data 4. Developing alternatives 5. Review of key factors 6. Selecting the best alternative 7. Putting the decision into practice. 8. Follow up. Diagnosing and Defining the Problem. .It is true to a large extent that a problem well defined is half solved. A lot of bad decisions are made because the person making the decision does not have a good grasp of the problem. Analyzing the Problem. After clearly recognizing the problem, the next phase of decision-making is the analysis of problem, which involves classifying the problem and gathering information. Classification is necessary in order to know who should take the decision and who should be consulted for taking it. Collection of Data. A lot of information is required to classify any problem. So long as the required information is not available, any classification would be misleading. This will also have an adverse impact on the quality of he decision. Developing Alternatives. After defining and analyzing the problem, the next step in the decision making process is their development of alternative courses of action. Without resorting to the process of developing alternatives, a manager is likely to be guided by his limited imagination Review of Key Factors. While developing alternatives the principle of limiting factor has to be taken care of. A limiting factor is one, which stands in the way of accomplishing the desired goal. It is the key factor in decision making. If such factors are properly identified, a manager can confine his search of alternatives to those, which will overcome the limiting factors. In choosing among alternatives, the individual can recognize those factors which are limiting or critical to the attainment desired goal Selecting the Best Alternative. In order to make the final choice of the best alternative, one will have to evaluate all the possible alternatives. There are many ways to evaluate alternatives. The most common methods is through intuition. The second way to choose the best alternative is to weigh the consequences of one against those of the others. Putting the Decision into Practice. The choice of an alternative will not serve any purpose if it is not put into practice. The manager is not only concerned with taking a decision, but also with its implementation. He should try to ensure that systematic steps are taken to implement the decision Follow Up: A follow up system ensures the achievement of objectives .It is executed through control .It is concerned with the process of checking the proper implementation of decisions. Follow up is necessary so as o modify and improve the decisions at the earliest.

Q9. What are the steps in the decision-making process? Ans. A Decision is a judgment, a final resolution of some problem. A manager does decision-making and it shaves the response of the organization to some problem or situation steps of Decision-making are. - 1. To specify the objectives or goals 2. To identify the difficulty or problem 3. To search for different alternatives PRINCIPLES & PRACTICE OF MGT. (BCA 2) 27/56

4. To Evaluate different alternative 5. To choose the best alternate 6. To take the action 7. To evaluate the result.

It is better to check the results after putting the decision into practice. The reasons for following up of decisions are as follows. 1. If the decision is a good one, one will know what to do if faced with the similar problem again. 2. If the decision is a bad one, one will know what not to do the next time. 3. If the decision is a bad and one follows up soon enough, corrective action may still be possible.

Q10. Elaborate the concept of span of management / supervision. Why is this concept important? Ans. Concept of span of management meaning of span: - The term span literally means the space b/w two supports of a structure, e.g. the space between two pillars of a bridge. The space between two pillars of bridge should neither be too large nor too small. If it is too large, the bridge may collapse and if it is so small, it will enhance its cost. Span of management when applied to mgt. “span” refers to the number of subordinates a manager can manage effectively and efficiently. Obviously, if the number of subordinate placed under one manager is too large, it will become difficult to effectively control them & the desired results cannot be achieved. On the other hand, if number is too small, the time, energy and abilities of manager would not be fully utilized. Span of mgt., supervision therefore refers to the optimum number of subordinates that managers can manage effectively. The number of subordinates who report to a supervision or superior has two important implications. –

(i) It is influential in determining the complexity of individual’s manager’s job. (ii) Span of mgt. determines the shape or configuration of org., the fewer the no. of people reporting to the superior, the larger the number of managers required.

Every person has limited capacity to effectively supervise and control other people, manager cannot control beyond this limit. So, the number of subordinates reporting to a superior should be fined which in any case can’t go beyond a certain limit.

Definition. In the words of Spiegel “Span of mgt. means number of sub-ordinates reporting directly to an authority. The principle of span of mgt. implies that no single executive should have more people looking to him for guidance and leadership that he can reasonably be expected to serve.”

Q11. What are the early ideas on span of management? How span of management can be determined? Ans. Early ideas on span of mgt. Span of management is a traditional and older concept: (1) An individual person was considered the head & he performed all the controlling activities. (2) He had responsibility to guide the subordinate& to lead them & subordinate are responsible to report him. (3) Earlier ideas on span of mgt. were not in any sense in favor of subordinates. Subordinates were not given any authority they had only responsibility (4) The executives control the activities in command sense. (5) Wide span of management. Determination of span of management. No, doubt, mgt. thinkers agree that the span of management principle holds true but they don’t agree on the number of subordinates that can be put under one superior.The classical writers have suggested that number of subordinates should be between 3 to 8 are ideal, depending on the level of mgt. With lower the level of management higher the number of subordinates. Graicunas,a French management consultant has PRINCIPLES & PRACTICE OF MGT. (BCA 2) 28/56 suggested the fixation number of subordinates based on mathematical calculation. He has identified mathematical formula. He has identified three types of relationships. (a) Direct single relationships: It arises from the direct individual contacts of the superior with his subordinates. Thus if here are three subordinates A, B, C under one superior X there will be three direct single relationships. (b) Direct group relationship. – It arises between the superior and his subordinate in all possible combination. Thus, superior may consult with his subordinates with one or more providing assistance. With three subordinates there will be nine such relationships such as like A with B, A with C, B with C and so on. (c) Cross relationships. It arises because of mutual interaction of subordinates working under the common superior e.g. AB, BA, AC so on. The relationship is quite different b/w A&B than B&A from mgt. point of view because the type of interaction will be different in both the cases. With number of subordinates being n, the number of various relationships will be as follows. Direct Single relationship = n

Direct Group relationship =n (2^n-1 -1 Cross relationships = n (n-1) Total relationships = n (2^n + n-1) 2 This formula suggests that while the n number of subordinate’s increases in arithmetical progression & number of relationships increases in geometrical profession.

Q12. Which factors influence the span of management? Ans. Factors influencing span of management. - Following factors influence the span of management. (1) Capacity & ability of superior: - The characteristics & abilities such as leadership administration capabilities, ability to communicate to listen, to guide and inspire, physical strength etc. differ from person to person. Managers with more capacity in respect of these factors can manage more no of subordinates in similar situation. More over, the attitudes & personality of the manager also determine his span of management. (2) Capacity of Subordinates: Capacity of Subordinates also affects the degree of span of management. Efficient & trained subordinates may discharge their functions more efficiently without much help of superior. They may just need broad guidelines & rest of things can be performed by them .In such case, they require lesser time from their superior who will be in position to manage larger number of subordinates. (3) Nature of work: Nature of work affects degree of span of mgt. Different types of work require different patterns of mgt & hence different time from superior. If subordinates are performing similar function they require less attention of their superior & span can be wider. Rate of change in work also affects span of mgt. Work with lower degree of change facilitating higher span & work with higher degree of change restricting span of mgt. Degree of decentralization: Degree of decentralization affects span of mgt. by affecting the degree of involvement of the superior in decision-making process. Thus higher the degree of decentralization higher is the degree of span because they will devote less time to manage subordinates on their own. In case of centralization subordinates would require consultation clarification & instruction from their superior. This will require more time on part of superior & his span will be narrow. (4) Degree of planning: Higher is the degree of plans (i.e. clean & easily understandable) the task of supervision becomes easier & span of mgt. can be wider. On the other hand, ineffective plans impose limits on the span of mgt. (5) Communication Techniques: The patters or media of communication affects the time requirement in managing subordinates & consequently span of management. If communication is face to face it requires more time on the part of both superior &subordinate. ( Narrow span). Communication with staff assistant & through the use of modern communication tools like electronic devices will save lot of time & span can be increased. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 29/56

(6) Use of Staff assistance: Staff assistance assist in reducing the work load of managers & enables them to manage more number of subordinates. These staff personnel on behalf of managers can discharge many of the many functions. This will gain the time of managers and the degree of span can be increased. Supervision from other: It is very common that a subordinate receives instructions from several other personnel beside his direct superior. In such a case the workload of direct superior is reduced &he can supervise more no of subordinates.

Q13. What factor would you consider while establishing an organization? Ans. Organization is the structural framework of duties and responsibilities of workers for performing various functions with a view to achieve business goals through organization management. It combines various business activities to accomplish predetermined goals. There must be a good & well organizational structure, which is the established pattern of relationship among different parts of the origination. A good organization structure should meet various needs and requirements of the enterprise, which are as follow: Clear line of authority There should be a clear line of authority form top to bottom. The delegation of authority should be step by step and according to the nature of work assigned every body in the organization. Every employee should be clear about his work and the authority delegated to him. In the absence of this clarity there will be confusion, friction and conflict. Adequate delegation of Authority Delegation of authority must be commensurate with the responsibility assigned. If the authority is not sufficient for getting the assigned task then the work will not be completed. Sometimes managers assign work to subordinate without giving the proper authority. It shows lack of decision making on their part. An Inadequate authority will create problems for the subordinate because they may not be able to accomplish the task. Less Managerial levels As far as possible minimum levels of management may be created. More the number of these levels, more the delays in the communications. It will take more time to communicate the decisions from top to bottom. Similarly, Information from lower levels will take much time in reaching the top .The number of managerial levels depends upon the nature and scale of operations. No specific members of levels may be specific for each and every concern but effort should be made to keep them at the minimum. Span of control Span of control refers to the number of people a manager can directly supervise .A person supervise only that number of subordinate to whom he can directly keep under contact. The number of people to be supervised may not be universally fixed because it will be influenced by the nature of work. Efforts should be made to keep a well managed group under a supervisor otherwise there will be inefficiency and low performance. Simple and Flexible Organizational structure should be very simple. There should not be unnecessary levels of management. A good structure avoids ambiguity and confusion .The system should also be flexible to adjust according to the changing needs. There may be diversification, which is required reclassification of duties, and responsibilities .The oorganizational structure should be able to incorporate new changes without disturbing the basic elements.

Q14. Define the term delegation of authority. What are the elements of delegation of authority? Ans. CONCEPT OF DELEGATION. - Delegation of authority is one of important factor of organizing process. When an enterprise is small then decision-making power is centralized in few hands. As enterprise grows there is need to delegate authority to more and more people to cope with work. Delegation is necessary for an enterprise to exit. Delegation is a distractive process of getting thing done others by giving them responsibility. Every superior delegates the authority to his or her subordinates for getting work done. The process goes to the level where actual work is executed. The person who is given responsibility for a particular work is given requisite authority for getting it done. Superiors cannot delegate authority, they do not have. DEFINITION. - “The entrustment of a part of the work, or responsibility and authority to another, and the creation of accountability for performance.” “Delegation refers to a manager’s ability to share his burden PRINCIPLES & PRACTICE OF MGT. (BCA 2) 30/56 with other. It consists of granting authority or the right to decision making in certain defined areas and charging subordinates with responsibility for carrying through & assigned task” \ Elements of delegation Delegation involves following three elements. (1) Assignment of responsibility: The first step in delegation is the assignment of work or duty to the subordinate. The result expected from each position is identified properly. Then accordingly task is assigned to the subordinate by supervisors. Duty is in terms of function or task to be performed constitute the basis of delegation process. (2) Grant of Authority: The grant of authority is the second element of delegation. The delegator grants authority to the subordinate so that assigned task is accomplished. The delegation of authority without responsibility creates problem and responsibility without authority is meaningless. Authority is derived from responsibility. Superior transfers action, rights like spending, directions etc. to his subordinate. The purpose of this transfer is to enable the subordinate to complete the assigned work properly. There should be a balance between authority and responsibility. (3) Creation of accountability: Accountability is the obligation of a subordinate to perform the duties assigned to him by his superior. The delegation creates an obligation on the subordinate to accomplish the assigned task. When work is assigned and authority is delegated, then accountability is the by-product of this process. Authority flows downward and. there should be balance between authority and responsibility. Single accountability improves work and discipline.

Q15. Explain the brain storming technique of group decision-making. Ans. Brainstorming: Brainstorming is used to help groups generate multiple ideas and alternatives for solving problems. This technique is effective because it helps to reduce interface caused by critical and judgment reactions to one’s ideas from other group members. In brainstorming a group is convened and the problem at hand is reviewed. Individual members are then asked to silently generate ideas/alternatives for solving the problem. Next, these ideas/alternatives are solicited and written on a board or a flip chart. A second session is used to critique and evaluate the alternatives. Managers are advised to follow for rules when brainstorming. 1. Freewheeling is encouraged. Group members are advised to offer any and all ideas they have. They are free to give ideas. 2. Criticism is discourages. Don’t criticize during the initial stage of idea generation. Phrases such as “we’ve never done it in that way”, “it won’t work”, “it is too expensive”, and “the boss will never agree” should not be used. 3. Quantity of ideas is encouraged: Managers should try to generate and write down as many ideas as possible. 4. Combination and improvement of ideas is pursued: Group members are advised to take credit on ideas of others. Brainstorming is an effective technique for generating new ideas/alternatives. It is not appropriate for evaluating alternatives or selecting solutions.

Q16. What are the various ways of departmentation? Explain. (Last Year Q.P-5 Marks) Ans. Departmentation means “group of activities and employees into departments”. In the words of Allen it is a means of dividing the large and monolithic functional organization into smaller, flexible administrative unites. Basis of Departmentation. 1. On the basis of Functions. - The functional structure is the most common. Departmentation is done on the basis of functions such as sales, production, personnel, planning, transport, etc. 2. On the basis of product- Product wise departmentation is restored to where specialization is required in respect of specific product of the company. For eg, company may deal in eight or nine product lines e.g. chemical, foodstuffs, cosmetics, drugs etc. under a separate division. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 31/56

3. On the basis of territorial or geographical region – Such departmentation is especially attractive to large –scale enterprise or others having activities physically or geographically spread out. It is proper when its purpose is to encourage local participation in decision-making and to take advantage of certain economies of localized operation. 4. On the basis of customers- Departmentation by customers play a grater emphasis on the customer and distinguish one from other. For example: industrial buyer, whole sellers, government, and public undertakings. 5. On the basis of process or equipment. - This structure is used where the machines need special skills for operating them or have technical facilities, which make concentrated location desirable. This type of structure is mainly motivated by cost and economic considerations.

Q17. Define the concept of authority and explain the difference between decentralization and delegation of authority. Ans. Authority is the right to give orders and exact obedience. Authority gives right of decision making because a manager can give order only when he decides what is to be done or not to be done by his subordinates. The basic objective behind the use of power is to influence the behaviour of subordinates in terms of doing right things at right time so that organizational objectives are achieved. The use of authority may control the negative aspects of behaviour. Authority in itself is an objective thing but its exercise is always subjective. There are two viewpoints about the sources of formal authority. 1. According to the classical view, the formal authority originates at the top and then flows downward to subordinates. 2. According to modern view subordinates legitimize authority.

Distinction between delegation and decentralization: The term delegation and decentralization appear to mean the same thing, but in reality there is considerable difference between the two. The main differences are as follow. 1. Delegation is the process, while decentralization is the end result of delegation and dispersal of authority. 2. Delegation mainly refers to granting of authority and the creation of responsibility between one individual and another; decentralization is the situation that exists as a result of systematic delegation of authority throughout the organization. 3. In delegation superior continue to be responsible for work delegated to the subordinates. While in decentralization superior is relieved from his responsibility for the work because in decentralization, the subordinate becomes liable for that. 5. Delegation is essential and vital to the management process. Only through delegation subordinate can be involved in the organization and management can get things done from the others. Decentralization is optional, in the sense that it may or may not be practiced as systematic policy.

Q18. Explain the various conditions of decision-making. Ans. Decision-making involves selection of best sources of action out of the given alternatives. The alternatives are put into action, which will take place in future period. Decisions are taken for future period. Conditions

Perfect certainty conditions of risk complete uncertainty

Prior probability empirical subjective

Thus there are three main conditions of decision-making depending on availability of info either about the outcomes or the relative chances for any single outcomes. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 32/56

1. Decision Making Under Certainty. - When a manager knows exactly which state of nature will occur, circumstances of certainty exist. This means that the manager will be able to make perfectly accurate decisions time after time. Decision under certainty is repetitive, routine and have definite procedure for handling them are called programmed decisions. This can be expressed as a set of steps to follows a flow- chart a decision table, or a formula. Conditions of certainty exist when decision involves action in immediate future and the manager has made such a decision number of times with the same results. In certainty, deterministic model is used the one in which all factors are assumed to be exact with chance of playing no role. Under such conditions, he doesn’t need to analyze the chance element. 2. Risk: Most of the organizational decisions are made under the conditions of risk, that is, some information is available, but this is not sufficient to answer overall questions about the outcomes of the decisions. In such situations, manager has to develop estimates of likelihood of the various states of events occurring. These estimates may be based on experience, incomplete but reliable information or intelligence. In such situations where the estimates are made, there is a risk involved and requires the use of risk analysis. Risk analysis is to calculate the risk involved in a decision & what can be the best or adverse consequences of the decisions. There are 3 methods of estimating probability under conditions of risk. (i) A Priori Probability: It is obtained through inference from assumed conditions e.g. Toss of a coin (nature of coin) 50% risk (ii) Empirical Probability: It is based on recording actual experience over a period of time & computing the %age of times as each event has occurred. e.g. insurance companies generally compute probability of accidents & deaths on their basis. (iii) Subjective Probability. - When the manager does not have sufficient data to calculate either priori or empirical probability he may estimate probability on his own judgment. This is subjective probability because the manager does not have any information to calculate probability. This probability is less exact as compared to others and may vary from manager to manager. 3) Condition of Uncertainty. - If a decision involves condition about which the manager has no information, either about the outcome or relative chances for any single outcome, he is said to be operating under conditions of uncertainty. Since the manager does not decision have any information on which he can develop any analysis, the best he can do is to be aware that he has no chance of predicting the events. Decision under taken the conditions of uncertainty are called non-programmed decision. These decisions are taken by top-level mgt e.g. opening of new branch.

Q19. Explain the various decision criteria’s. Ans. The Decision criteria’s are of following types. (i)Maximax Criterion: It is applied by optimistic decision makers. Under this philosophy the manager will select that alternative under which it is possible to receive the most favorable payoff Limitations It ignores possible losses & chances of making or not making profit. (ii) Maximin Criterion: It is adopted by the most pessimistic decision maker. The manager believes that worst possible may occur. This pessimism results in the selection of that alternative, which maximizes the least favourable payoff. (iii) Minimax Criterion. – It leads to the minimization of regret. The managerial regret is defined as the pay off for each alternative under every date of nature of competitive action subtracted from the most favorable payoff that is possible with the occurrence of the particular event. Low middle high Centralized 0 0 15 Decentralization 20 0 0 Since the manager does not know the probability of happening a particular event, he will choose an alternative, which minimizes his regret. (iv) Insufficient Reason Criterion: In this case, probability can be assigned though there is no criterion for assuming the probability. The situation is known as insufficient reason criterion .In this criterion since the probability cannot be assigned on any basis; equal probability is assigned to each event. The basis is that the probability of occurring an event is unknown, every event should be treated as equal. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 33/56

Q20. Explain the decision tree. Ans. Decision tree Some decision involved a series of steps, the second step depending on outcome of the, third depending on he outcome of the second and so on. Often uncertainty surrounds each step, so that the decision maker faces uncertainty piled on uncertainty. Decision tree is a model for solving such problems. “ Decision tree is a graphical method to identifying various alternative actions, estimating probabilities and indicating he resulting expected payoff. This graphical form visually helps the decision maker view his alternatives and outcomes. Constructions. The construction of a decision tree requires definition of alternatives, estimation of probabilities for various events and calculation of expected payoff resulting from an action. This process can be undertaken in the following way: (i) The first basic step in construction of a decision tree is definition of various alternatives available at the first stage e.g. If an organization wants to launch a new product in the market, it has two alternatives available to it :either it can go for permanent tooling or it can go for temporary tooling . (ii) The second step in decision tree requires the estimation of probabilities foe various events. The estimation of probabilities will be based on manager’s own experience, consultation with others and information available in this respects e.g. it may have high success, moderate or it may fail. The probabilities for each event will be different. (iii) The third step is the calculation of pay off from each alternative in various events. Payoff = Probability of event * expected payoff

Initial Investment : Permanent tooling = 2 crore Temporary tooling = 1 crore

Payoff without considering probabilities: Events Alternatives Permanent tooling temporary tooling Succeed Rs. 1 cr. Rs. 0. 60cr. Moderate Rs.0. 50cr. Rs.0. 30cr. Fail Rs 2 cr. Rs.1 cr. Expected payoff of permanent tooling = 1.00x .5 x.8 = 40 lakhs When decisions are based on decision tree, it becomes more complicated as chance events increase. Computer is needed to process the information

Uses. (i) Make decision in complex situations (ii) It makes possible for decision makers to see at least the major alternatives open to them and the subsequent decisions may depend on events of the future. (iii) By incorporating probabilities of various events in the decision tree. It is possible to comprehend the true probability of a decision leading to results desired. (iv) It forces replacement of broad areas of judgment with focus on critical elements in a decision. Limitation. - (i) Complexity (ii) Inconsistency in assigning probabilities to various events. (iii) Time consuming (iv) Not applicable /good for small decisions

Q21. What are group-aided decisions? Explain its advantages and problems. Ans. Group Aided decisions PRINCIPLES & PRACTICE OF MGT. (BCA 2) 34/56

The early work culture was focused largely on spotting individual decision-making. But later on organization becomes very complex. So decisions of one individual are not effective to make the organization successful. That’s why group aided decisions are taken by large organizations. Group added decisions are taken by a group of persons. The decisions of board, directors are come under this category. These are generally important decision and related to policy matter.

Advantages. (i) More alternative ideas to solve a problem (ii) Advantage of specialization (iii) Pooling of knowledge and experience (iv) Facility for co-ordination (v) Fear of too much authority in a single person. (vi) Moderation through participation. (vii) A tool of management development Problems. (i) High cost (ii) Slow decision (iii) Indecisiveness (iv) Pressure on minority

Q22. What are the advantages of decentralization? Ans. The advantages of decentralization are as follows. (i) Decentralization relieves the top executives from the burden of performing various functions. It reduces the time at the disposal of top executives who should concentrate on their important managerial functions. (ii) Decentralization permits quicker and better decision-making. - the managers who are close to the work and are , therefore most knowledgeable about the specific details and circumstances of problems that arise in dept. have the authority to take action. (iii) This gives the manager power, prestige and status. They feel more motivated and satisfied in their jobs. (iv) Decentralization leads to competitive climate with in the org.- Each division is made into a distinct profits center and this encourages the head to exercise greater initiative and ingenuity and since he is being compared with his peers on various measures. (v) Decentralization ensures the development of more capable managers- because managers in a decentralized structure often have to adapt and deal with difficult situation. As a result they have a thorough knowledge of every assignment under their control and are in a position to make amendments and take corrective actions. (vi) Decentralization facilities diversification of product, activity and markets- this has been sampling demonstrated by Alfred D.Chandler in his study of such large American industrial enterprises. As Ponds, General Motors Standard Oil and Sears Roebuck, Chandler found that these companies in their initial stages had a centralized structure, that was best suited for the limited products. But after sometime their companions start expanding their operations .Due to this reason their centralized structure started proving inefficient and impractical. Some centralized controls were maintained but in general these companies had to shift to a decentralized structure with several near autonomous division in order to remain successful.

Q23. Which factors determine the degree of decentralization? Ans. A basic question always arises while designing the organization structure is: how much to decentralize the authority? Managers cannot ordinarily be for or against decentralization of authority. They may prefer to delegate the authority or they may like to make all decisions. Although the temperament of individual managers affects the extent of authority delegation, others factors also affect it. Most of these factors may be beyond the control of individual managers. Such factors are of following types: (i) Size of the organization. -- The size of the org. in term of rupee, volume of sales number of plants, number of employees, is the strongest single factor determining PRINCIPLES & PRACTICE OF MGT. (BCA 2) 35/56

the extent of decentralizatio. It appears that the speed and adequacy of decision- making are enhanced through decentralization (ii) History and age of org. - If the org. has grown primarily from within or expand under the direction of the owner founder show a marked tendency to keep authority centralized. On the other hand if it has grown by acquisition and mergers it is likely to be decentralized. Similarly a relatively high degree of centralization may be needed at the start when new values and viewpoints are being established at the top. (iii) Philosophy of top mgt. - Some managers pride themselves in making all decisions themselves. On the other hand other managers feel equally pride and confident by delegating authority to their subordinate. (iv) Availability of Managers: availability of managers directly affects the degree of centralization because exercise of authority requires competence on the part of those who exercise authority .If better quality managers are available there is more chance for decentralization because of two reasons. First their managers can handle the problems of decentralized units effectively. Second such managers have higher need for degree of autonomy which is possible in decentralized structure only. Moreover, decentralization also works as training ground for managers which increases the ability of good managers (v) Decentralization of managers: The nature of operations also determines the extent of decentralization i.e. whether the operations of the organization are concentrated at the one place or in a region or dispersed to different territories it will prosper by this policy of decentralization. (vi) Nature of management functions: Some management functions are more amiable to decentralization than others. In a large multi plant company such functions as purchasing, cost accounting, quality control, plant engineering tends to be decentralized; yet financial planning and resource allocation may be reserved for the very highest level of decision-making and control. Marketing may or may not be decentralized depending up on the nature of the markets and the varieties of products.

Section – C 5 Marks Questions [QUESTIONS 1 TO 13]

Q1. Compare the Japanese and American management culture. Or State the difference between Japanese Management and culture of American companies. Ans. Difference between American and Japanese management culture is as follow. American practices Japanese practices Planning: 1) Primarily short-term orientation. Primarily long-term orientation. 2) Individual decision-making. Collective decision-making. 3) Decisions flow from top to bottom. Decisions flow upward and back. 4) Fast decision-making but slow Slow decision-making strategies implementation. 5) Operational decisions are tactical. Operational decisions are strategic. Organising: 1) Individual responsibility. Collective responsibility. 2) Emphasis on formal structure. Emphasis on informal structure. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 36/56

3) Common organization culture Common organization culture lacking. and philosophy..

Staffing: 1) Short-term employment. Life-long employment. 2) Rapid upward movement. Slow upward movement. 3. Segmented concern for employees. Holistic concern for employees. 4. Professionalism. Loyalty to the organization. 5. Specialized career. General career. 6. Rewards based on individual Reward based on group performance. performance. 7. Substantial differences in pay Small differences in pay increase. increase. Directing: 1. Directive Style. Paternalistic style. 2. Individual motivation Group motivation. 3. Leader as decision maker. Leader as group facilitator. 4. Top-down communication. Bottom-up communication. 5. Emphasis on written communication. Emphasis on face to face communication. Controlling: 1. Control by superior. Control by peers. 2. Control of individual performance. Control of group performance. 3. Limited use of quality control Extensive use of quality circle. control circle.

Q2. What are the techniques or methods to ensure effective co-ordination? Ans. Co-ordination is integration of human efforts for achieving the goals for the basic objectives of all functions in organization. Techniques to ensure effective co-ordination (Methods) are. 1) Coordination by chain of command : Coordination by chain of command means by providing authority the coordination is maintained. It is the most important method of coordination particularly vertical and horizontal. Vertical coordination is required to harmonize the work allocated to several levels in the organization. It ensures that various levels do not act out of accord with each other or with policies and objectives of the organization. A manager can achieve the vertical coordination by using his authority. Because of his organizational position, he can issue orders and instructions to his subordinates. 2) Coordination by leadership : Leadership is the process of inducing subordinates to cooperate willingly. A leader formally or informally ensures coordination. Thus, inducing people to work in harmony by exercising leadership can overcome many conflicting situations. 3) Coordination by committees : Committee is group of persons entrusted with discharge of some functions collectively as a group. The role of committee is significant in achieving horizontal coordination. Problems are solved through group discussions, which increase the understanding. Improved understanding of organization-wide matters leads to better coordination. 4) Coordination by staff meeting : Periodic staff meetings can be highly effective in promoting coordination through better communication. 5) Self-coordination: The basic principle of self-coordination is modification of functioning of a department in such a way that each department coordinates with other departments. It can be achieved when every department coordinates itself to facilitate the other departments. 6) Special coordinators : Special coordinators are appointed to keep a check on the work of the staff. Sometimes even a special coordination cell is also created for this. The basic responsibility of cell is to collect the relevant information and to send this to various heads of sections or department so that interdepartmental work and relationship can e coordinated. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 37/56

Q3. What are the different types of control on the basis of stage at which control is exercised? Or State the difference between feed forward control, concurrent control and feedback control. Ans. In an organization following types of controls can be exercised. Feed forward control. -It is the control, which involves the evaluation of inputs and taking corrective action before a particular sequence of operation is completed. Thus it removes the limitation of time lag in operations. This control helps in know whether the actual inputs are according to planned inputs or hot, if not take corrective action immediately. Con-current control. -It is exercised during the execution of operations of a programme. It provides the measure for taking corrective action or making adjustment while the programme is still is operation and before any further damage is done. Here the focus is on process itself. Data provided by this control system is used to adjust the process. Feedback control. - It is based on the measurement of the results of an action. If any deviation is found between the actual performance and the standards previously set, then corrective action is undertaken. The control aims at future action of similar nature so that there is conformity between standards and actual. To make feedback control effective it is essential to take corrective action as soon as possible.

Q4. What do mean by control? What are various techniques of control? Explain traditional control techniques. Ans. Control is the process of checking whether the plans are being adhered to or not, keeping a record of progress and then taking corrective measurers if there is any deviation. Control is one of the managerial functions. These functions start with planning and end at controlling. According to Henry Fayol " In an undertaking, control consists in verifying whether everything occurs in conformity with plan adopted the instruction issued and principles established.” Every management wants to ensure that the scarce resources at its disposal are effectively and productively utilized. To achieve this objective, it has to devise a monitoring system, which will keep the management informed about the implementation of its plans and policies. In case the plans are not properly implemented then variations in performance must come to the notice of management so that timely corrective measures are taken up. A control system should be devised to evaluate the performance of various segments of enterprise. Every organization has its own methods to exercise control and some of these devices are as follows:

Control Techniques Traditional Control Techniques Modern Control Techniques - Budgeting and budgetary control -Return on investment control - Cost control -Programme Evaluation and review techniques -Inventory control Management informal system (MIS) -Break Even Analysis - Profit and loss control Management Audit Statistical Data Analysis

Traditional Control Techniques are as follow: 1) BUDGETING A budget is the monetary or /and quantitative expression of business plan and policies to be pursued in the future period of time. In term budgeting is used for preparing budget and other procedures for planning, co- ordination and control of business enterprise. So a budget is a pre-determined statement of management policy during a given period, which provides a standard for comparison with result actually achieved. There are many types of budget such as sales budget, expenditure budget etc. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 38/56

2) Cost Control Cost Control is a control of all the cost of an enterprise in order to achieve cost effectiveness in business operations. Cost can be classified as fixed cost, variable cost, semi variable cost etc. The fixed costs are incurred over a period of time and are not directly related to productions. These costs remain the same even if there is increase or decrease in production. Semi variable cost is fixed as well as variable in nature. The cost standards are fixed for each product or activity and actual cost records are also sent to the incharge of the product or activity. In case of any deviation in cost, immediate remedial measures are taken up. The regular cost control system will help in keeping cost under check.

3) Production Planning And control Production planning and control is an important task of production manager. It has to see that production process is properly decided in advance and is carried out as planned. Production planning is the function of looking ahead, anticipating difficulties to be faced and the likely remedial steps to remove them. There are some techniques which are helpful in production planning and control, such as routing, scheduling, dispatching or implementation follow up and expediting, inspecting.

4) Inventory Control Inventory control or materials management control controlling the kind, amount, location and timing of various commodities used in and produced by the industrial enterprise. It ensures maximum return on working capital. Inventory control is necessary for the smooth and uninterrupted functioning of production department. Its main purpose is to maintain an adequate supply of correct material at the lowest total cost.

5) Break Even Analysis The break-even analysis is basically concerned with the cost, volume and profit relationship. It signifies a set of relationship of fixed cost variable cost, price level of output and sales. Profitability is made mathematically by applying the formula to trace the break-even point, contribution, margin of safety and profit volume Ratio. Mathematically relationships can be expressed as follows Break even point = Fixed cost Contribution per unit Contribution = Sales per unit -variable cost per unit Margin of safety = Total sales proceeds - sales at B.E. = Total contribution -fixed cost 6) Profit and loss control Profit and loss control is a simple and commonly used overall control device to find out the immediate revenue or cost factors responsible for either the success or failure of an enterprise. As a control device, it is regarded as very effective in certain respects because it enables the management to influence in advance revenues, expenses and consequently even profits.

7) Statistical Data Analysis Statistical data analysis is an important control technique. This analysis is possible by means of comparison of ratios, percentages, averages, trends etc. of different periods with a view to pinpoint deviation and causes. This method of control is very useful in case of inventory control, production control etc. The minimum and maximum control limits are fixed and deviations within these limits are allowed but if variation goes beyond prescribed parameters then immediate steps are taken to correct them.

Q5. What are the modern control techniques? Ans. The modern control techniques are. 1) Return on investment control (ROI): Profits are the measure of overall efficiency of a business. Profit earned in relation to the capital employed in a business is an important control device, if the rate of return on investment (Share holder fund) is quite satisfactory. It will be taken as a yardstick of good performance. The return on investment can be compared over a period of time as well as with that of other similar concerns. The return on investment is computed by dividing the operating net profit by the capital employed in the concern. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 39/56

Return on Investment Net profit before interest & tax /Capital employed. ROI is used to measure the overall efficiency of a concern, higher the return better are the results.

2) Programme Evaluation and Review Techniques (PERT) : Programme evaluation and review techniques (PERT) was first developed as a management tool for coordination and early completion of projects. Ballistic Missile project in USA resulting in a reduction of 30% time in project execution. A contemporary of PERT is CPM (critical path Method) and was developed in connection with maintenance & construction of projects. PERT is useful at several stages of project management starting from early planning stages with various alternative programmes

3) Management Information system (MIS) : Management Information system (MIS) is an approach of providing timely adequate and accurate information to the right person in the organization that helps in taking right decision. So MIS is a planned and organized approach for the transferring of intelligence within an organization for better management MIS is of two types (i) Management operating system is meant for meeting the information needs of lower level and middle level management. (ii) Management reporting system, which supplies information to top- level management for decision making. An MIS should be so designed which helps management in exercising effective control over all aspects of the organization.

i) Management Audit Management audit is an investigation by an independent organization to find out whether the management is carried out most effectively or not. In case there are drawbacks at any level then recommendation should be given to improve managerial efficiency. In the words of Leslie R. Moword “Management Audit is an investigation of a business from the highest level downward in order to ascertain whether sound management prevails throughout, thus facilitating the most effective relationship with the outside world & the most efficient organization & smooth running internally”

Q6. Discuss the factors, which make the coordination difficult. Ans. Need of coordination is obvious in all kinds of organizations, but it is not easily achieved. The task of coordination is becoming increasingly complex and difficult. The factors, which contribute to difficulty in coordination, are as follow. 1. Growth in size. With growth in size of an enterprise, there is a consequent growth in the number of employees thus enlarging the area and leads to be coordinated. A more complex organization structure involving more subordinates brings about added problems of communication. All this makes coordination, difficult. 2. Growing specialization. Modern business has become increasingly complex due to the facts that various functions are to be performed by specialists. Specialization, in turn, brings about the need for more coordination because of diversity of tasks to be undertaken and of process to carry out them. 3. Human Nature. The nature of human beings presents the problem of coordination. Executives and their departments are preoccupied with work and, therefore, are reluctant to become in the activities of other units or departments. 4. Differences in time orientation. Some members of the organization are more concerned with problems that have to be solved immediately or within short period of time. Other may be preoccupied with problems that may take years to solve. 5. Differences in interpersonal orientation. In some organizational activities, such as production, there may be relatively more ways of communication and decision-making. In other activities such as R & D, the style of communication and decision-making may be informal. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 40/56

Q7. What are the reasons for human resistance to control? What are the measures to overcome resistance to control? Ans. Controls imply and involve continuous check on the performance of individuals. Controls are best aimed at results and not at people as such. People dislike and resist controls because of following reasons. 1. The controls may suppress the creative and innovative urges and abilities of the individuals. 2. The standards of performance may be imposed from the top and the subordinates have no say in their determination. The standards of performance may be rigid and unrealistic. 3. The performance appraisal may concentrate on fault finding rather than guiding the people for better action. 4. There may be no place for self-control even for intelligent and responsible people. Controls may be based on the assumption that people are basically lazy and shirk work and they need to be supervised closely and strictly. 5. The controls may be administered in a in a discriminatory, arbitratory manner.

Measures to overcome Resistance to control The organizations should take up the following measures to overcome people’s control. 1. The controls should be realistic and flexible. They should make allowance for general human behaviour. 2. The controls should give adequate emphasis to self- direction and self-control of people. They should allow people to make use of their creativity. 3. The people whose behaviour and performance are to be controlled must have a say in determination of standards and administration of controls. 4. The management should have faith in the ability and capacity of the subordinates and should follow selective control only. ’Control by exception’ should be the rule where subordinates are responsible and can be depended upon. 5. The reward system in the organization should be integrated with various kinds of control. The subordinates should be offered rewards for acceptable performance and behaviour so that they may get positive reinforcement. 6. There should be consistent operation of various kinds of controls. They should not give undue power to the superiors to discriminate between the individuals. 7. There should be two-way communication in the organization. The employees should be free to send their reactions and suggestions to the top management. The manager at various levels should be persuasive; they should tell their subordinates that controls are directed to achieve the goals of the organization and not to curb the freedom of the individuals.

Q8. What is the relationship between planning and control? Explain. Or Q. “Planning forms the basis for control.” In the light of this statement discuss the process of controlling. Or Q. Explain the concept of control. What is the relationship between planning and control? Ans. CONCEPT OF CONTROL:- Control is the last function of management functions. The objective of every organization is to use scarce resources in a best possible way. Plans are made to achieve better results. Control is the process of checking whether the plans are being adhered to or not, keeping a record of progress and then taking corrective measures if there is any deviation. Control is one of managerial function because it is the function of every manager from president to supervisor. Some managers, particularly at lower levels forget that the primary responsibility for the exercise of controls rest in every manager charged with the execution of plans. Control is a continuous activity. Control is regularly exercised. It is not an activity in isolation. The manager will have to see that his subordinates perform according to plans at all the times. Once the control is withdrawn it will adversely affect the work. So control will have to be exercised continuously. It helps in finding out the reasons for low performance and then suggesting the ways of improving it. It also give PRINCIPLES & PRACTICE OF MGT. (BCA 2) 41/56 information to the top executives to asserts their performance and then takes corrective measures if necessary. So it has to point out weaknesses and errors in order to rectify them and prevent recurrence. It operates on every thing. DEFINITIONS.- “ Management control is the process by which manager assures that resources are obtained and used effectively and efficiently in the accomplishment of an organization’s objectives.” “In an undertaking, control consists in verifying whether everything occurs in conformity with the plans adopted, the instructions issued and principles established.”

PLANNING CONTROL RELATIONSHIP:- Planning and control are closely related to each other. Planning is first managerial function and controlling is the last function. The other functions like organizing staffing, directing act as the connecting link between planning and controlling. Planning will be successful only if a program is properly controlled. “Planning involves settings up of goals and of objectives while controlling seeks to ensure performance in accordance with plans.” In fact some writers think that these functions cannot be separated. It is wise to separate them conceptually still planning and controlling can be treated or viewed as the blades of a pair of scissors. The scissors cannot work unless there are two blades. Without objectives and plans control is not possible because performance has to be compared against some established criteria. Planning is the first perquisite for making control effective. Planning involves the setting of objective and then deciding about the appropriate course of action. First of all organizational goals are set and then departmental or sectional objectives are set. The objectives are the targets for the achievement of which all energies are pooled. The objectives must be specific so that their achievement may be determined. The pre determined course of action should be used to reach various objectives. Control is concerned with finding out whether the objectives have been achieved or not. If the results are not according to the standards set then deviations are ascertained. Controlling relates to the finding out of deviations and taking corrective measures. If the performance is low then immediate steps should be taken to set the things right. Planning must precede control .It is essential to plan first and then exercise control for its implementation.

Q9. Explain the process of control. Ans. PROCESS OF CONTROL:- Control is a continuous process. It is not applied when everything else is done. There may be difference in standards to be achieved and actual performance.this may be due to some human limitations. Some control methods may have to be applied to improve performance .The basic control process is as follow: 1) Setting objectives 2) Establishing standards 3) Measuring Performance 4) Comparing actual and standard performance 5) Correcting deviations.

1) Setting Objectives. – To start he control process, the manager should set out the objectives of controlling. The areas preferred for control should be of significant to the enterprise. However since plans vary in detail and complexity and since manager cannot usually watch everything, so for different plans, different guidelines are settled and special standards are established.

2) Establishing Standards. - Standards are by definition simply criteria of performance. Every enterprise plans its activates in advance. On the basis of plans the objectives and goals of every branch, department etc are fixed. These goals are converted into quantity, value, man, hour etc. These are to be achieved in future. There may also be qualitative goals. The achievement of various targets is made the responsibility of specific persons. The levels of achievement are decided in advance. Standards are the selected points in an entire planning program at which measures of performance are made so that manager receive signals about how thing are going and thus do not have to watch every step in the execution of plans. Standards are expressed quantitatively and aim at achieving the desired quality and quantity with in particular cost and time frame. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 42/56

Guidelines for setting objectives: (a) The control points should be timely. (b) Economical (c) Control points, especially for executives at higher levels should provide Comprehensive coverage. (d) Control points should be such as would promote balanced performance.

(3) Measuring performance: Next step in controlling process is measuring performance against standards should ideally be done on a forward- looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions. This will enable mangers to determine whether the work is being done according to plans or not .The measurement of quantitative objectives is easy since figures of work already have been available. The quantitative performance such as human relations, employee, morale, etc can only be measured via psychological tests and surveys. Measurement of performance is an important part of control process. If measurement is such that deviation is detected at the earliest then it will enable appropriate action in time. If that is not possible then deviations should be detected as early as possible

(4) Comparing actual and standard performance: If standards are appropriately drawn and if means are available for determining exactly what subordinates are doing, appraisal of actual or expected performance is fairly easy. While comparing actual performance with standard performance some permissible limits are also identified. When the deviations are with in the prescribed limits then there is no cause for worry. But when the deviations are more than the allowable limits then it calls for urgent action. This is also known as management by exception. The purpose of this comparison is (1) To find out deviations, if any (2) To determine the reasons for such deviations When the actual performance is not up to the level then causes for it should be pin- pointed. Necessary steps are taken so that performance is not adversely affected once again.

5) Correcting deviations: The last but most important step in controlling process is to take corrective actions. No control system process can automatically rectify the mistakes in a system. It is the action which is required to set the things right. Correction of deviations is the point at which control can be seen as a part of the whole system of management and can be related to the other managerial functions. Mangers can correct deviations by redrawing their plans or by modifying their goals in case goals are not achievable even with more efforts or they may exercise their organizing function through reassignment or clarification of duties .The may also correct deviations by additional staffing, by better selection and training of subordinates via effective leadership.

Q10. “Some authors consider coordination is an essence of management” Do you agree. Ans. Coordination- the essence of management. Some authors consider coordination to be separate function of the management. It seems more accurate, however to regard it as the essence of management for achieving harmony among individuals efforts toward the accomplishment of group goals. Each of the managerial functions is an exercise contributing to consideration.

Definition Dalton McFarland defines coordination as “the process whereby an executive develops an orderly pattern of group efforts among his subordinate and secures unity of action in the pursuit of common purpose.”

The reasons for treating coordination as the essence of mgt. may be as follows. (i) The concept of essence relates to intrinsic nature of an object. Coordination, being synchronization of efforts of human beings in an organization, is intrinsic to mgt. as mgt. also tries to synchronize group efforts for achieving org. objectives. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 43/56

(ii) A mgt. function is different from its essence. A function is a composite of duties closely related in harmonious character and in operational similarly, which for the purpose of execution has to perform some important and some less significant functions. On the other hand, coordination, involves the integration of human efforts for achieving the goals. (iii) When various managerial functions are performed properly and adequate consideration is given to their interdependence, the result is integrated, well balanced composite efforts by the group. Coordination is recognized as managerial functions by the classical authors and not by authors of modern era. All mgt. functions try to achieve integration of efforts and coordination becomes essence of management.

Q11. How coordination is different from cooperation? Ans. Coordination and cooperation: Coordination and cooperation both work for the achievement of organizational goals. But it must be noted that coordination and cooperation don’t mean the same thing. The difference lies in their fundamental meanings. Main points of difference between them are: Coordination Cooperation 1. The basic objective of cooperation is to 1. The basic objective of coordination is the protect the interest of members of a cooperative synchronization of efforts of individuals in a group especially from the threats presented by work group. the conflicting groups. 2. Coordination is much wider term than 2. Cooperation is narrow term than coordination. cooperation. 3. Coordination is conscious managerial 3. Cooperation is attitude of a group of people. effort. 4. Cooperation is essential for coordination to 4. Cooperation may exist without coordination. exist. 5. Coordination is synchronization of efforts 5. Cooperation is motto for collective action. done. 6. Coordination is achieved via performance 6. Cooperation indicates the willingness of of special efforts. individual to help each other. 7. Coordination is responsibility of managers, 7. Cooperation is the essence of management i.e. so it is a managerial function. required to perform managerial functions. 8. Coordination is formal. 8. Cooperation is informal.

Q12. What are the essentials of effective control systems? Ans. The essentials of an effective control system are as follows. 1. Suitable. The control system should be appropriate to the nature and needs of the activities. The flow of information concerning current performance should correspond with the organizational structure employed. So that deviations may be reported according to job positions at different levels of the organization. 2. Subordinates should inform their superiors expeditiously about the threatened deviations and failures. The feedback system should be as short and quick as possible. 3. Objectivity: The fixation of standards, measurement of performance and corrective action must be objective and impersonal. Subjective and arbitrary control cannot be effective .It is essential that the standards to judge the actual performance are clear, definite and stated in numerical terms. 4. Flexible. The control system should be flexible so that it can be adjusted to suit the needs of any change in the environment. 5. Economical. The benefit derived from the control system should be more than cost of implementing it. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 44/56

6. Prescriptive and operational. A control system in order to be effective, and adequate must not only detect the deviations from standards but also provide for the solution to the problems that cause deviation. 7. Acceptable to organizational members. The control system should be acceptable to the organization members. 8. Reveal exceptions at Strategic points. The control system should be such as to reveal exceptions at strategic points. Small exceptions in certain areas have greater significance than larger deviations in other areas. 9. Motivate people to high performance. A control system is most effective when it motivate people for high performance. Most people respond to a challenge, so the challenge should not be too difficult or too easy. 10. Control over one phase should not lead to less attention to other aspects.

Q13. What is the need or importance of coordination? Ans. The need for coordination arises because of the following factors.

1. Division of labour: When managers divide work into specialized functions or departments, they at the same time create need for coordination of these activities. Generally greater the division of labour, greater is the need for coordination. Coordination ensures the proper synchronization between the activities of different units, avoids interruptions due to such as delay in supply of materials, tools or duplication of work.

2. Interdependence of units: The need for coordination also arises because of the interdependence of various units. The greater the interdependence of units, the greater is the need for coordination. The units can be linked in any of the following ways. a) Pooled interdependence b) Sequential interdependence c) Reciprocal interdependence

3. Individual interests versus Organizational interests: The need for coordination is also felt to integrate various activities and objectives of the separate units of the organization in order to efficiently achieve the organizational goals. Coordination reconciles the differences in approach, efforts or interests of various departments by avoiding inconsistencies in their priorities, objectives and policies. It harmonizes the corporate and individual goals by making individuals see, how their jobs contribute to the dominant goals of the enterprise.

4. Functional differentiation. Functions of the organization are frequently divided into departments, divisions, sections and the like. Coordination is therefore necessary to link the functions together and assures their contribution to the total result. 5. Specialization . There is high degree of specialization in modern organizations. Specializations arise from the complexities of modern technologies as well as from the diversities of the task and persons needed to perform them. If specialists are allowed to work without coordination, the results can be costly. Therefore some mechanism is required to coordinate the efforts of various specialists in the organization.

Long answer questions (10 marks questions)

Q.1. Define Management and describe its essential characteristics or nature. Ans. Management: Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals can co-operate towards attainment of group goals”. According to F.W. Taylor, “Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way”. Management is a purposive activity. It is something that directs group efforts towards the attainment of certain pre – determined goals. It is the process of working with and through others to effectively achieve PRINCIPLES & PRACTICE OF MGT. (BCA 2) 45/56 the goals of the organization, by efficiently using limited resources in the changing world. Of course, these goals may vary from one enterprise to another. E.g.: For one enterprise it may be launching of new products by conducting market surveys and for other it may be profit maximization by minimizing cost. Management involves creating an internal environment: - It is the management which puts into use the various factors of production. Therefore, it is the responsibility of management to create such conditions which are encouraging to maximum efforts so that people are able to perform their task efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and salaries, formulation of rules & regulations etc. Therefore, we can say that good management includes both being effective and efficient. Being effective means doing the appropriate task and being efficient means doing the task correctly, at least possible cost with minimum wastage of resources.

Characteristics or Nature of management can be highlighted as: - Management is Goal-Oriented: The success of any management activity is accessed by its achievement of the predetermined goals or objective. Management is a purposeful activity. It is a tool which uses the resources( land,labour and machinery) to fulfill the pre-determined goals. For example, the goal of an enterprise is maximum consumer satisfaction by producing quality goods and at reasonable prices. This can be achieved by employing efficient persons and making better use of scarce resources Management integrates Human, Physical and Financial Resources: In an organization, human beings work with non-human resources like machines,materials, financial assets, buildings etc. Management integrates human efforts to those resources. It brings harmony among the human, physical and financial resources. Management is Continuous: Management is an ongoing process. It involves continuous handling of problems and issues. It is concerned with identifying the problem and taking appropriate steps to solve it. For achieving this target various policies have to be framed but this is not the end. Marketing and Advertising is also to be done. For this policies have to be again framed. Hence this is an ongoing process. Management is all Pervasive: Management is required in all types of organizations whether it is political, social, cultural or business because it helps and directs various efforts towards a definite purpose. Thus clubs, hospitals, political parties, colleges, hospitals, business firms all require management. Whenever there is more than one person is engaged in working for a common goal, management is necessary. Whether it is a small business firm which may be engaged in trading or a large firm like Tata Iron & Steel, management is required everywhere irrespective of size or type of activity. Management is a Group Activity: Management is very much less concerned with individual’s efforts. It is more concerned with groups. It involves the use of group effort to achieve predetermined goal of management . Organized Activities: Management is a process of organized activities. Groups of people cannot be involved in the performance of activities without organized activities. Management comes into existence where a group of people are involved in achieving a common objective. Existence of Objectives: The existence of objectives is a basic criterion of every human organization. The organizational objectives are the desired state of affairs which have to be achieved by the organisation Decision-making: Management process involves decision making at all levels. Decision-making describes the process by which a course of action is selected as the way to deal with a specific problem. If there is only one alternative, the question of decision making does not arise. The quality of alternatives which a manger selects determines the organization’s performance, and the future of the organization. Multidisciplinary: Management is multidisciplinary because it includes knowledge/information from various disciplines- economics, statistics, maths, psychology, sociology, ecology, operations research, history, etc. Management integrates the ideas and concepts taken from these disciplines and presents concepts which can be put into practice for managing the organizations. Management is dynamic: Management has framed certain principles, which are flexible in nature and change with the changes in the environment in which an organization exits. Relative, Not Absolute Principles: Management principles are relative, not absolute, and they should be applied according to the need of the organization. A particular management principle has different PRINCIPLES & PRACTICE OF MGT. (BCA 2) 46/56 strengths in different conditions. Therefore, principles should be applied according to the prevailing conditions.

Q.2. Explain Management as a Science and as an Art and as a both Ans. Management can be considered as a science as well as art both. It can be considered as follow: Management as a Science Science is a systematic body of knowledge pertaining to a specific field of study that contains general facts which explains a phenomenon. It establishes cause and effect relationship between two or more variables and underlines the principles governing their relationship. These principles are developed through scientific method of observation and verification through testing. Science is characterized by following main features: 1. Universally acceptance principles – Scientific principles represents basic truth about a particular field of enquiry. These principles may be applied in all situations, at all time & at all places. E.g. – law of gravitation which can be applied in all countries irrespective of the time. Management also contains some fundamental principles which can be applied universally like the Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type of organization – business or non business. 2. Experimentation & Observation – Scientific principles are derived through scientific investigation & researching i.e. they are based on logic. E.g. the principle that earth goes round the sun has been scientifically proved. Management principles are also based on scientific enquiry & observation They have been developed through experiments & practical experiences of large no. of managers. E.g. it is observed that fair remuneration to personal helps in creating a satisfied work force. 3. Cause & Effect Relationship – Principles of science lay down cause and effect relationship between various variables. E.g. when metals are heated, they are expanded. The cause is heating & result is expansion. The same is true for management; therefore it also establishes cause and effect relationship. E.g. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. If you know the cause i.e. lack of balance, the effect can be ascertained easily i.e. in effectiveness. Similarly if workers are given bonuses, fair wages they will work hard but when not treated in fair and just manner, reduces productivity of organization. 4. Test of Validity & Predictability – Validity of scientific principles can be tested at any time or any number of times i.e. they stand the test of time. Each time these tests will give same result. Moreover future events can be predicted with reasonable accuracy by using scientific principles. E.g. H2 & O2 will always give H2O. Principles of management can also be tested for validity. E.g. principle of unity of command can be tested by comparing two persons – one having single boss and one having 2 bosses. The performance of 1st person will be better than 2nd. It cannot be denied that management has a systematic body of knowledge but it is not as exact as that of other physical sciences like biology, physics, and chemistry etc. The main reason for the inexactness of science of management is that it deals with human beings and it is very difficult to predict their behavior accurately. Since it is a social process, therefore it falls in the area of social sciences. It is a flexible science & that is why its theories and principles may produce different results at different times and therefore it is a behavior science. Management as an Art Art implies application of knowledge & skill to trying about desired results. Art has the following characters – Practical Knowledge: Every art requires practical knowledge therefore learning of theory is not sufficient. It is very important to know practical application of theoretical principles. E.g. to become a good painter, the person must have a knowledge of different color and brushes but also should have a knowledge o different designs, dimensions, situations etc to use them appropriately. A manager can never be successful just by obtaining degree or diploma in management; he must have also known how to apply various principles in real situations by functioning in capacity of manager. Personal Skill: Although theoretical base may be same for every artist, but each one has his own style and approach towards his job. That is why the level of success and quality of performance differs from one person to another. E.g. there are several qualified painters but M.F. Hussain is recognized for his style. Similarly management as an art is also personalized. Every manager has his own way of managing things PRINCIPLES & PRACTICE OF MGT. (BCA 2) 47/56 based on his knowledge, experience and personality, that is why some managers are known as good managers (like Aditya Birla, Rahul Bajaj) whereas others as bad. Creativity: Every artist has an element of creativity in line. That is why he aims at producing something that has never existed before which requires combination of intelligence & imagination. Management is also creative in nature like any other art. Perfection through practice: Practice makes a man perfect. Every artist becomes more and more proficient through constant practice. Similarly managers learn through an art of trial and error initially but application of management principles over the years makes them perfect in the job of managing. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same manner, management is also directed towards accomplishment of pre-determined goals. Managers use various resources like men, money, material, machinery & methods to promote growth of an organization.

Management as both Science and Art Management is both an art and a science. The above mentioned points clearly reveal that management combines features of both science as well as art. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. It is called an art because managing requires certain skills which are personal possessions of managers. Science provides the knowledge & art deals with the application of knowledge and skills. A manager to be successful in his profession must acquire the knowledge of science & the art of applying it. Therefore management is a judicious blend of science as well as an art because it proves the principles and the way these principles are applied is a matter of art. Science teaches to ’know’ and art teaches to ’do’. E.g. a person cannot become a good singer unless he has knowledge about various ragas & he also applies his personal skill in the art of singing. Same way it is not sufficient for manager to first know the principles but he must also apply them in solving various managerial problems that is why, science and art are not mutually exclusive but they are complementary to each other (like tea and biscuit, bread and butter etc.).The old saying that “Manager are Born” has been rejected in favor of “Managers are Made”. It has been aptly remarked that management is the oldest of art and youngest of science. To conclude, we can say that science is the root and art is the fruit.

Q.3. Explain the various Concepts of Management. Ans. Meaning of Concept Concept is the idea or image or understanding about things, activity or a person that emerges in the mind of a person. There are several different concepts about management. Economists have treated management as a factor of production; sociologists have treated it as a class or group of persons; practitioners have treated it as a process comprising of different activities. There are three basic concepts of Management

Management as a Discipline Discipline refers to a field of study having well-defined concepts and principles. When we refer to management as a discipline, we include in it the various relevant concepts and principles, the knowledge of which helps in managing the things properly.

Management as a Group of People : We refer to management as a group of people in which we include all those personnel who perform managerial functions in organizations. We refer to two distinct classes or groups of personnel in the organization. In the first category, we include all those persons who are responsible for managerial functions and in the second category, we include non-managerial personnel

Management as a process In studying management discipline, we generally refer to management as a process. A process can simply be defined s systematic method of handling activities. However, the management process can be treated as a complex one which can be referred to as an identifiable flow of information through interrelated stages of analysis directed towards the achievement of an objective or set of objective. It is a concept of dynamic rather than static existence in which events and relationships must be seen as dynamic, continuous, and flexible, and as such, must be considered as a whole. Thus, management as a process includes various activities and sub activities PRINCIPLES & PRACTICE OF MGT. (BCA 2) 48/56

Q.4. What do you understand by the term ‘Level of Management’? Briefly describe the different levels of management. Ans. Level of management refers to the categories or layers of managerial positions in an organization. The level of management determines the amount of authority and status of the person occupying the position at that level. These managerial positions divided into various categories according to their amount of authority and status, they are known as the level of management Managerial Hierarchy consists of- Top Level Management or senior management Middle Level Management Lower Level Management Top-level management Top level management consists of owners, shareholders, managing director etc. These are the key persons in the organization who are the main source of authority. Management they formulate plans, decide objectives & communicate to middle level management. • Require an extensive knowledge of management roles and skills. • They have to be very aware of external factors such as markets. • Their decisions are generally of a long-term nature 1) Their decisions are made using analytic, directive, conceptual and/or behavioral/participative processes 2) They are responsible for strategic decisions. 3) They have to make the plan and see that plan may be effective in the future. 4) They are executive in nature.

Middle Level of Management The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as – • They execute the plans of the organization in accordance with the policies and directives of the top management. • They make plans for the sub-units of the organization. • They participate in employment & training of lower level management. • They interpret and explain policies from top level management to lower level. • They are responsible for coordinating the activities within the division or department. • It also sends important reports and other important data to top level management. • They evaluate performance of junior managers. • They are also responsible for inspiring lower level managers towards better performance.

Lower Level of Management Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. They are concerned with direction and controlling function of management. Their activities include Assigning of jobs and tasks to various workers. • They guide and instruct workers for day to day activities. • They are responsible for the quality as well as quantity of production. • They are also entrusted with the responsibility of maintaining good relation in the organization. • They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers. They help to solve the grievances of the workers. • They supervise & guide the sub-ordinates. • They are responsible for providing training to the workers. • They arrange necessary materials, machines, tools etc for getting the things done. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 49/56

• They prepare periodical reports about the performance of the workers. `• They ensure discipline in the enterprise. • They motivate workers. • They are the image builders of the enterprise because they are in direct contact with the workers.

Q.5. Explain main Objectives of Management. Ans. The main objectives of management are: 1. Getting Maximum Results with Minimum Efforts – The main objective of management is to secure maximum outputs with minimum efforts & resources. Management is basically concerned with thinking & utilizing human, material & financial resources in such a manner that would result in best combination. This combination results in reduction of various costs. 2. Increasing the Efficiency of factors of Production – Through proper utilization of various factors of production, their efficiency can be increased to a great extent which can be obtained by reducing spoilage, wastages and breakage of all kinds, this in turn leads to saving of time, effort and money which is essential for the growth & prosperity of the enterprise. 3. Maximum Prosperity for Employer & Employees – Management ensures smooth and coordinated functioning of the enterprise. This in turn helps in providing maximum benefits to the employee in the shape of good working condition, suitable wage system, incentive plans on the one hand and higher profits to the employer on the other hand. 4. Human betterment & Social Justice – Management serves as a tool for the betterment of the society. Through increased productivity & employment, management ensures better standards of living for the society. It provides justice through its uniform policies. 5. It helps in Achieving Group Goals – It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of organization clearly there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals. 6. Optimum Utilization of Resources – Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternative uses. If employees and machines are producing its maximum there is no under employment of any resources. 7. Reduces Costs – It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction. 8. Establishes Sound Organization – No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure it is very important that there should be effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Management fills up various positions with right persons, having right skills, training and qualification. All jobs should be cleared to everyone. 9. Establishes Equilibrium – It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization. 10. Essentials for Prosperity of Society – Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society.

Q.6. Explain the different function of Management Ans. Managerial Functions:. Henry Fayol, the father of functional or administrative management remarked: “To manage is to forecast and plan, to organize, to command, to coordinate and to control” Thus, Fayol classified management functions into five categories as follows: PRINCIPLES & PRACTICE OF MGT. (BCA 2) 50/56

(i) To forecast and plan, (ii) To organize, (iii) To command or to give orders, (iv) To co-ordinate, and (v) To control According to Koontz and ‘O’ Donnell, “The most useful method of classifying managerial activities is to group them around the functions of planning, organizing, staffing, directing, and controlling. “ They think that coordination is not a separate function but is the essence of management. Thus, for the sake of analysis of there management process, we can classify the management functions into the following categories:

1. Planning : It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. According to KOONTZ, “Planning is deciding in advance – what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc. Planning is a process of seeking answer to some of the following particular questions: (i) What is to be done? (ii) Why it is to be done? (iii) How the work will be done? (iv)Who will do the work? (v) When the work will be done? (vi)Where the work will be done? Planning pervades at all the levels of organization. But the scope of planning is not the same at each level of organization. Higher the level of organization, the broader the scope of planning. Planning may be long term and short term.

2. Organizing : It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves: 1. Identification of activities. 2. Classification of grouping of activities. 3. Assignment of duties. 4. Delegation of authority and creation of responsibility. 5. Coordinating authority and responsibility relationships.

3. Staffing: It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection; appraisal & development of personnel to fill the roles designed the structure”. Staffing involves: 1. Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place). 2. Recruitment, selection & placement. 3. Training & development. 4. Remuneration. 5. Performance appraisal. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 51/56

6. Promotions & transfer. 4. Directing : Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating the sub-ordinates for the achievement of organizational goals. Direction has following elements: 1. Supervision 2. Motivation 3. Leadership 4. Communication Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose. Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction. Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding. 5. Controlling : It implies measurement of accomplishment against the standards and correction of deviation, if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur.

According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”. Therefore controlling has following steps: a. Establishment of standard performance. b. Measurement of actual performance. c. Comparison of actual performance with the standards and finding out deviation if any. d. Corrective action.

Q.7. Discuss the Qualities of a Successful Manager. Ans. It is easy to find a bad manager, but much harder to find a successful one. So what makes a manager successful? Here are my top ten qualities of a successful manager: 1. Demonstrates integrity - A manager should walk the talk. The old saying, "Lead by example" is the first quality that makes a manager a stand out. 2. Deals honestly and diplomatically - A manager, who owns their mistakes, deals openly, and honestly with others, earns the respect of those they are trying to lead. 3. Demonstrates flexibility - A manager who is responsive to the needs of the business and the needs of employees, is able to keep his team on target and yet achieve the goals of the business. 4. Shows commitment and reliability - A manager who delivers their promises shows their team that they are reliable and promotes trust. 5. Listens effectively - A manager who 'seeks first to understand, then to be understood' (Dr Steven Covey) is a manager who will always have their finger on the pulse of the business. 6. A good negotiator - A manager who comes to the table prepared to give a little that the outcome is a positive one for everyone, will not only earn the respect of his employees but be guaranteed of the opportunity for further negotiations in the future. 7. A thorough planner - 'If you fail to plan, you plan to fail.' This saying is especially true for managing. A manager is a coach to their team and the team are looking to them for the game plan. 8. Is fair - A manager who doesn't take sides , show favoritism ;earn their trust and in turn, will have more personal power to influence their team for good. 9. Knows how to have fun and has a good sense of humor - A manager who is able to promote a safe and happy work environment, will ensure the retention of staff. 10. Seeks to understand their workers - A manager who is able to accurately assess the skills, abilities and personalities of their work team, will be able to develop individual managers to maximize their effectiveness and help them to reach their potential, while focusing their efforts on the goal. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 52/56

Q.8. What do you mean by managerial role? Discuss the different roles that managers play in an organization. Ans. To meet the demands of organization and to perform their functions, managers have to assume multiple roles. A role is an organized set of behaviors. The roles are divided into three groups: interpersonal, informational, and decisional. The informational roles link all managerial work together. The interpersonal roles ensure that information is provided. The decisional roles make significant use of the information. The performance of managerial roles and the requirements of these roles can be played at different times by the same manager and to different degrees depending on the level and function of management. The ten roles are described individually, but they form an integrated whole.

The three interpersonal roles are primarily concerned with interpersonal relationships. In the figurehead role, the manager represents the organization in all matters of formality. The top level manager represents the company legally and socially to those outside of the organization. The supervisor represents the work group to higher management and higher management to the work group. In the liaison role, the manger interacts with peers and people outside the organization. The top level manager uses the liaison role to gain favors and information, while the supervisor uses it to maintain the routine flow of work. The leader role defines the relationships between the manager and employees. The direct relationships with people in the interpersonal roles place the manager in a unique position to get information. Thus, the three informational roles are primarily concerned with the information aspects of managerial work. In the monitor role, the manager receives and collects information. There are four decisional roles. • In the entrepreneur role, the manager initiates change. • In the disturbance handler role, the manger deals with threats to the organization. • In the resource allocator role, the manager chooses where the organization will expand its efforts. • In the negotiator role, the manager negotiates on behalf of the organization. The top level manager makes the decisions about the organization as a whole, while the supervisor makes decisions about his or her particular work unit. The supervisor performs these managerial roles but with different emphasis than higher managers. Supervisory management is more focused and short-term in outlook. Thus, the figurehead role becomes less significant and the disturbance handler and negotiator roles increase in importance for the supervisor. Since leadership permeates all activities, the leader role is among the most important of all roles at all levels of management.

Q.9. What are responsibilities of Managers and discuss the importance of Management. Ans. Responsibilities of a managerial position : 1. Supervise and manage the overall performance of staff in his department. 2. Achieve business and organization goals, visions and objectives. 3. Analyzing, reporting, giving recommendations and developing strategies on how to improve quality and quantity 4. Involved in employee selection, career development, succession planning and periodic training. 5. Working out compensations and rewards 6. Responsible for the growth and increase in the organizations' finances and earnings. 7. Identifying problems, creating choices and providing alternatives courses of actions.

Importance of Management It helps in Achieving Group Goals – It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards PRINCIPLES & PRACTICE OF MGT. (BCA 2) 53/56 achievement of pre-determined goals. By defining objective of organization clearly there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals. Optimum Utilization of Resources – Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate uses. If employees and machines are producing its maximum there is no under employment of any resources. Reduces Costs – It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction. Establishes Sound Organization – No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure it is very imporatnrt that there should be effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Management fills up various positions with right persons, having right skills, training and qualification. All jobs should be cleared to everyone. Establishes Equilibrium – It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change in external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization. Essentials for Prosperity of Society – Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial to business and society, will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society.

Q.10. What do you mean by Principles of management? Explain Principles of Management. Ans. Management principles are statements of fundamental truth. These principles serve as guidelines for decisions and actions of managers. They are derived through observation and analysis of events which managers have to face in practice Fayol is called as the father of principles of management. According to Fayol the activities of an industrial organization could be divided into six categories as shown below TECHNICAL - (Production & Manufacturing) COMMERCIAL - (Buying, Selling & Exchange) FINANCIAL - (Acquiring & using capital) SECURITY - (Protection of Property & Person) ACCOUNTING - ( Balance sheet, cost & statistics) MANAGERIAL - (Planning, Organizing, Commanding, directing and controlling

There are 14 Principles of Management described by Henry Fayol 1. Division of Work - : The specialization of the workforce should be done according to the skills of a person, creating specific personal and professional development within the labour force and therefore increasing productivity; leads to specialization which increases the efficiency of labour. By separating a small part of work, the workers speed and accuracy in its performance increases. This principle is applicable to both technical as well as managerial work. 2. Authority and Responsibility- : The issue of commands followed by responsibility for their consequences. Authority means the right of a superior to give order to his subordinates; responsibility means obligation for performance. This principle suggests that there must be parity between authority and responsibility. They are co-existent and go together, and are two sides of the same coin. 3. Discipline- : Discipline refers to obedience, proper conduct in relation to others, respect of authority, etc. It is essential for the smooth functioning of all organizations. 4. Unity of Command - : This principle states that every subordinate should receive orders and be accountable to one and only one superior. If an employee receives orders from more than one superior, it is PRINCIPLES & PRACTICE OF MGT. (BCA 2) 54/56 likely to create confusion and conflict. Unity of Command also makes it easier to fix responsibility for mistakes. 5. Unity of Direction - : All those working in the same line of activity must understand and pursue the same objectives. All related activities should be put under one group, there should be one plan of action for them, and they should be under the control of one manager. It seeks to ensure unity of action, focusing of efforts and coordination of strength. 6. Subordination of Individual Interest :The management must put aside personal considerations and put company objectives first. Therefore the interests of goals of the organization must prevail over the personal interests of individuals. 7. Remuneration - : Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity. The quantum and methods of remuneration payable should be fair, reasonable and rewarding of effort. 8. The Degree of Centralization - :Centralization implies the concentration of decision making authority at the top management. Sharing of authority with lower levels is called decentralization. The organization should strive to achieve a proper balance. 9. Scalar Chain - Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank. The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels. It is considered as a chain of command. It involves a concept called a "gang plank" using which a subordinate may contact a superior or his superior in case of an emergency. However the immediate superiors must be informed about the matter .These can be used to initiate and aid the processes of change, organization, decision making, skill management and the overall view of the management function 11. Equity - : Employees must be treated kindly, and there should be a justice with everyone.Managers should be fair and impartial when dealing with employees. 12. Stability of Tenure of Personnel - : The period of service should not be too short and employees should not be moved from positions frequently. An employee cannot render useful service if he is removed before he becomes accustomed to the work assigned to him. 13. Initiative - : Using the initiative of employees can add strength and new ideas to an organization. Initiative on the part of employees is a source of strength for the organization because it provides new and better ideas. Employees are likely to take greater interest in the functioning of the organization. 14. Esprit de Corps - :This refers to the need of managers to ensure and develop morale in the workplace; individually and communally. Team spirit helps in developing an atmosphere of mutual trust and understanding.

Q.11. Differentiate between Unity of Command & Unity of Direction. Ans. Basis Unity of command Unity of direction Meaning It implies that a sub-ordinate should receive It means one head, one plan for a group of orders & instructions from only one boss. activities having similar objectives. Nature It is related to the functioning of personnel’s. It is related to the functioning of departments, or organization as a whole. Necessity It is necessary for fixing responsibility of It is necessary for sound organization. each subordinate. Advantage It avoids conflicts, confusion & chaos. It avoids duplication of efforts and wastage of resources. Result It leads to better superior sub-ordinate It leads to smooth running of the relationship. enterprise. PRINCIPLES & PRACTICE OF MGT. (BCA 2) 55/56

Q.12. Write short note on Scientific Management. Ans. Fredrick Winslow Taylor commonly known as ’Father of Scientific Management’ started his career as an operator in coalmine company and rose to the position of chief engineer. He conducted various experiments during this process which forms the basis of scientific management. It implies application of scientific principles for studying & identifying management problems. According to Taylor, “Scientific Management is an art of knowing exactly what you want your men to do and seeing that they do it in the best and cheapest way”. In Taylors view, if a work is analyzed scientifically it will be possible to find one best way to do it. Hence scientific management is a thoughtful, organized, dual approach towards the job of management against hit or miss or Rule of Thumb. Principles of scientific management are as below: 1. Development of Science for each part of men’s job (replacement of rule of thumb) a. This principle suggests that work assigned to any employee should be observed, analyzed with respect to each and every element and part and time involved in it. b. This means replacement of odd rule of thumb by the use of method of enquiry, investigation, data collection, analysis and framing of rules. c. Under scientific management, decisions are made on the basis of facts and by the application of scientific decisions. 2. Scientific Selection, Training & Development of Workers a. There should be scientifically designed procedure for the selection of workers. b. Physical, mental & other requirement should be specified for each and every job. c. Workers should be selected & trained to make them fit for the job. d. The management has to provide opportunities for development of workers having better capabilities. e. According to Taylor efforts should be made to develop each employee to his greatest level and efficiency & prosperity. 3. Co-operation between Management & workers or Harmony not discord a. Taylor believed in co-operation and not individualism. b. It is only through co-operation that the goals of the enterprise can be achieved efficiently. c. There should be no conflict between managers & workers. d. Taylor believed that interest of employer & employees should be fully harmonized so as to secure mutually understanding relations between them. 4. Division of Responsibility a. This principle determines the concrete nature of roles to be played by different level of managers & workers. b. The management should assume the responsibility of planning the work whereas workers should be concerned with execution of task. c. Thus planning is to be separated from execution. 5. Mental Revolution a. The workers and managers should have a complete change of outlook towards their mutual relation and work effort. b. It requires that management should create suitable working condition and solve all problems scientifically. c. Similarly workers should attend their jobs with utmost attention, devotion and carefulness. They should not waste the resources of enterprise. d. Handsome remuneration should be provided to workers to boost up their morale. e. It will create a sense of belongingness among worker. f. They will be disciplined, loyal and sincere in fulfilling the task assigned to them. g. There will be more production and economical growth at a faster rate. . Maximum Prosperity for Employer & Employees. a. The aim of scientific management is to see maximum prosperity for employer and employees. b. It is important only when there is opportunity for each worker to attain his highest efficiency. c. Maximum output & optimum utilization of resources will bring higher profits for the employer & better wages for the workers. d. There should be maximum output in place of restricted output. e. Both managers & workers should be paid handsomely.

Q.14. Short note on - Criticism of Scientific Management Ans. Although it is accepted that the scientific management enables the management to put resources to its best possible use and manner, yet it has not been spared of severe criticism. Workers Viewpoint 1. Unemployment – Workers feel that management reduces employment opportunities from them through replacement of men by machines and by increasing human productivity. Less workers are needed to do work 2. Exploitation – Workers feel they are exploited as they are not given due share in increasing profits which is due to their increased productivity. Wages do not rise in proportion as rise in production. Wage payment creates uncertainty & insecurity (beyond a standard output, there is no increase in wage rate). 3. Monotony – Due to excessive specialization the workers are not able to take initiative on their own.Jobs become dull. Workers loose interest in jobs and derive little pleasure from work. 4. Weakening of Trade Union – Everything is fixed & predetermined by management. So it leaves no room for trade unions to bargain as everything is standardized, standard output, standard working conditions, standard time etc. This further weakens trade unions, PRINCIPLES & PRACTICE OF MGT. (BCA 2) 56/56

5. Over speeding – The scientific management lays standard output, time so they have to rush up and finish the work in time. These have adverse effect on health of workers. The workers speed up to that standard output, so scientific management drives the workers to rush towards output and finish work in standard time.

Employer’s Viewpoint 1. Expensive – Scientific management is a costly system and a huge investment is required in establishment of planning dept., standardization, work study, training of workers. It may be beyond reach of small firms. Heavy food investment leads to increase in overhead costs. 2. Time Consuming – Scientific management requires mental revision and complete reorganizing of organization. A lot of time is required for work, study, standardization & specialization. Work suffers a lot in this.

.15. Define Administration. In which respect is it different from Management? Ans. According to Theo Haimann, “Administration means overall determination of policies, setting of major objectives, the identification of general purposes and laying down of broad programmes and projects”. It refers to the activities of higher level. It lays down basic principles of the enterprise. According to Newman, “Administration means guidance, leadership & control of the efforts of the groups towards some common goals”. In other words, it is an art of getting things done through & with the people in formally organized groups The difference between Management and Administration can be summarized under the category: - On the basis of Functions

On the Basis of Management Administration Functions:- Basis Meaning Management is an art of getting things done It is concerned with formulation of through others by directing their efforts broad objectives, plans & policies. towards achievement of pre-determined goals. Nature Management is an executing function. Administration is a decision- making function. Process Management decides who should as it & Administration decides what is to how should he dot it. be done & when it is to be done. Function Management is a doing function because Administration is a thinking managers get work done under their function because plans & policies supervision. are determined under it. Skills Technical and Human skills Conceptual and Human skills Level Middle & lower level function Top level function

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