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Principles of Management
QUESTION BANK
UNIT: I
2 MARKS
1. Define Management.
According to KOONTZ & WEIHRICH, “Management is the process of designing and maintaining of an environment in which individuals working together in groups efficiently accomplish selected aims”.
“Management is the art of getting things through and with people in formally organized groups”.
Ex: Human Resource Management, Financial Management.
2. Is Management - an art or science?
Managing as practice is an art; the organized knowledge underlying the practice is a science.
Managing has the following features that make it an art.
- Creative
- Individual approach
- Application and dedication
- Initiative and
- Intelligence.
The following features make it a science.
- Systematic decision making
- Universal management process
- Situational output and
- Universally accepted management.
Thus management can be called both as an art and science.
3. What are the essential skills of Managers?
The major skills required or expected out of managers are:-
- Technical skills – Pertaining to knowledge and proficiency in activities involving methods and procedures;
- Human skills – Ability to work effectively with other persons and to build up cooperative group relations to accomplish organizational objectives;
- Conceptual skills – Ability to recognize significant elements in a situation; and to understand the relationship among those elements; and
- Design skills – Ability to solve problems in ways that will benefit the enterprise. 4. Define Scientific Management.
Scientific management involves specific method of determination of facts through observation. The concept of scientific management was introduced by Frederick Winslow Taylor in the USA in the beginning of 20th century. It was further carried on by Frank and Lillian Gilbreth, Henry Gantt, etc. It was concerned essentially with improving the operational efficiency at the shop floor level.
“Scientific Management is concerned with knowing exactly what you want men to do and then see in that they do it best and cheapest way”.
5. List the principles of Scientific Management.
Scientific management was introduced by F.W Taylor who is known as the Father of Scientific Management. He adopted scientific methods to increase the productivity and greater efficiency in production.
The principles of Scientific Management are:-
Separation of planning and working Functional foremanship Job analyzers Time study
- Middle level management
- Lower level management Top level management functions
- To formulate goals and policies
- To formulate budgets
- To appoint top executives Middle level management functions.
- To train motives &develop supervisory level
- To monitor and control the operations performance Low level management
- To train &develop workers
- To assign job
- To give orders and instructions
- To report the information about the workers 9. What are the roles played by a Manager?
Interpersonal roles
- Figurehead role
- The leader role
- The liaison role Informational roles
- The recipient role
- The disseminator role
- The spokesperson role Decision roles
- The entrepreneurial role
- The disturbance-handler role
- The resource allocator role
- The negotiator role
10. Define ‘Sole proprietorship’.
A Business unit that is owned and controlled by a single individual is known as sole trading or sole proprietorship concern. He uses his own savings for running the business. The sole trader makes all purchases and sells on his own and maintains all the accounts. He alone enjoys all the profits and bears all the losses.
Ex: A Fancy store.
11. What do you mean by a ‘Partnership firm’? A partnership is an association of two or more persons to carry on business and to share its profit and losses. The relation of a partnership arises from contract. The maximum number of partners is limited to 10 in the case of banking business and 20 in the case of other business.
Ex: Chand & Co.
12. What do you understand by the term ‘Joint Stock Company’?
“By a Company we mean an association of many persons who contribute money or money’s worth to a common stock and employs it in some trade or business and also shares the profit and loss as the case may be arising there from”.
There are two types of Joint stock companies:-
- Private Limited company – Ex: M/s Key Media Pvt. Ltd.
- Public Limited company – Ex: M/s Pearl credits Ltd.
13. Who is (i) an active partner (ii) a sleeping partner?
Active partner: Any partner who is authorized by others to manage the business is known as active partner. Sleeping partner: Any partner who does not express his intention to participate in the business can be called as a sleeping partner. He will be just an investor who has a right to share profits.
18. What is a Public Corporation? A Public corporation is an autonomous body corporate created by a special statute of a state or central government. A public corporation is a separate legal entity created for a specific purpose.
Ex: LIC.
16 Marks
1. Trace the evolution of management with reference to the contributions made by management thinkers.
Management is defined for conceptual, theoretical and analytical purposes as that process by which managers direct, maintain and operate purposive organizations through systematic, coordinated, cooperative human efforts. Management is a process involving planning, organizing, staffing, directing and controlling human efforts to achieve stated objective in an organization.
Contributions of:
Peter Drucker
F.W. Taylor
Elton Mayo
Henri Fayol
Max Weber
Henry Gantt
Frank & Lillian Gilbreth.
These contributions came bit by bit and in haphazard manner and have failed to stimulate to study management as a distinct discipline. However their ideas created awareness about managerial problems.
2. What is the role of scientific management in the modern era?
Scientific management involves specific method of determination of facts through observation. The concept of scientific management was introduced by Frederick Winslow Taylor in the USA in the beginning of 20th century. It was further carried on by Frank and Lillian Gilbreth, Henry Gantt, etc. It was concerned essentially with improving the operational efficiency at the shop floor level.
“Scientific Management is concerned with knowing exactly what you want men to do and then see in that they do it best and cheapest way”.
Scientific management was introduced by F.W Taylor who is known as the Father of Scientific Management. He adopted scientific methods to increase the productivity and greater efficiency in production.
The Features of Scientific Management are:-
- Separation of planning and working
- Functional foremanship
- Job analyzers
- Time study or Work measurement
- Method study
- Motion study
- Fatigue study
- Standardization
- Scientific selection of training
- Financial incentives
- Economy and
- Mental revolution.
Role of scientific management in the modern era
- Paved way for progress in productivity
- Employee-Employer relationship to be harmonious
¬ Scientific selection of training ¬ Financial incentives ¬ Economy and ¬ Mental revolution.
Benefits of scientific management:
Taylor’s scientific management is more relevant to mechanization and automation- technical aspect of efficiency- than the broader aspects of management of an organization. It created awareness about operational efficiency at the shop floor level than at the higher levels.
4. Explain the contributions of Henri Fayol.
Management is simply the process of decision-making and control over the action of human beings for the expressed purpose of attaining pre-determined goals. “Management is the art of getting things through and with people in formally organized groups”.
Administrative Theory of Management – Usage of the term ‘Administration’; the six activities of an industrial organization namely, technical, commercial, financial security, accounting and managerial. Fourteen general Principles of Management – Division of work, Espirit de corps. Five Elements of management – Planning, Organizing, Commanding, Coordinating, Controlling Six Managerial qualities – Physical, Mental, Moral, Educational, Technical and Experience.
Fayol made a clear distinction between management principles and management elements. These principles are flexible and capable of being adapting to every need. It is a matter of knowing how to use each of them which is a difficult art requiring intelligence, experience and proportion.
5. Discuss the functions of management with neat diagram. (study using author book )
6. What are the various environmental factors that a manager should consider in an organization?
Environment is a collectivity of all factors within the control of individual business and beyond the control of individual business. Environment includes all the conditions, circumstances, and influences surrounding the total organization or any of its part. The environment may be
EXTERNAL ENVIRONMENT
It greatly influences the working of every business. Its major components are:
- Economic- capital, labor, suppliers, consumers and customers
- Technological
- Social
- Political
- Ethical
INTERNAL ENVIRONMENT
It is considered with the day to day work of the various departments of an organization. They may be
- Financial aspects
- HR policies and procedures
- Production activities
- Marketing and selling activities
- Information system The environmental forces may affect different parts of the organization in different ways because different parts interact with their relevant external environment differently. The impact of environmental forces on the organizations is not unilateral but the organizations may also affect the environment. So the organizations must either adjust to the environment or perish.
UNIT: 2
2 Marks
1. What is planning?
Planning is a process of selecting the objectives & determining the course of action required to achieve these objectives. (Or) Planning involves selecting missions and the objectives and the actions to achieve them. It ends with decision making, which is choosing the best alternative from the avail-able future courses of action.
EG: The goal set for limited period like five year plans
2. Important observations subjected about planning?
a) Planning is obtaining a future course of action in order to achieve an objective. b) Planning is looking ahead. c) Planning is getting ready to do something tomorrow. d) Plan is a trap laid down to capture the future.
3. Define mission and vision?
Mission may be defines as a statement which defines the role that an organization plays in the society. EG: Canara Bank “Good People to Grow With”. A vision statement indicates how the organization should be, after a particular time period.
4. Define policies?
Policies are general statement or understanding which provides guidance in decisions making to various managers.
5. Defining planning premises?
Planning premises are defined as the anticipated environment in which plans are expected to operate. They include assumptions or forecasts of the future & known conditions that will effects the operation of plans.
6. Explain in brief about the two approaches in which the hierarchy of objectives can be explained? There are two approaches in which the hierarchy can be explained. 1. top-down approach 2. bottom-up approach In the top-down approach, the total organization is directed through corporate objective provided by the top-level management. In the bottom up approach, the top level management needs to have information from lower level in the form of objectives. 7. Definitions of MBO:
KOONTZ &WEIHRICH: Management by objectives (MBO) is defined as a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organizational and individual objective. (OR) “MBO is a process whereby the superiors and the subordinate managers of an enterprise jointly identify its common goals, define each individual major areas of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.” - GEORGE ODIORNE
8. Define strategy? A strategy may be defined as special type of plan prepared for meeting the challenges posted by the activities of competitors and other environment forces.
13. What is tows metrics? The tows metrics is a conceptual frame work for a systematic analysis, which facilitates matching the external threats and opportunities with the internal weakness & strength of the organization. In the tows metrics ‘T’ stands for threat’s’ stands for opportunities ‘W’ for weakness and ‘S’ for strength. 14. FORECASTING: Forecasting is the process of predicting future conditions that will influence and guide the activities, behavior and performance of the organization. EG: forecasting the output by sales department.
16 Marks
- Explain the Process of decision making with neat diagram.
- Define MBO. Explain the process of MBO with the merits and demerits.
- Explain the various types of planning.
- Mention and explain the steps in planning with neat diagram.
UNIT 3
2 marks
1. Define Organization.
An identified group of people contributing their efforts towards the attainment of goals is called an organization. Organization is the process of establishing relationships among the members of the enterprise.
2. What is the purpose of Organization? - Facilitates Administration - Increases the efficiency management - Stimulates creativity and innovation - Facilitates growth and diversification and - Facilitates co-ordination and communication. 3. What is organizing?
Organizing refers to the formal grouping of people and activities facilitate achievement of the firm’s objectives.
Organizing may be defined as the process of
i) Identifying and classifying the required activities i.e. Job Design ii) Grouping the work to be performed i.e., Departmentation iii) Defining and delegating responsibility and authority i.e. Delegation of authority iv) Span of Control
4. What is Job design?
Job design is usually broad enough to accommodate people’s needs and desires. It may be especially appropriate to design jobs for exceptional persons in order to utilize their potential. People spend a great deal of time on the job and it is therefore important to design jobs so that individuals feel good about their work.
Authority in organisation is the right in a position to exercise discretion in making decisions and affecting others.
9. What are the different bases of power? 1. Legitimate Power 2. Referent Power 3. Reward Power 4. Coercive Power 10. Functional Authority
It is the right which is delegated to an individual or a department to control specified processes practices, policies or other matters relating to activities, undertaken by persons in other departments.
11. Formal Organization
The structure of jobs and positions with clearly defined functions and relationship as prescribed by the top management and bound by rules, systems and procedures.
12. Informal Organization
A network of interpersonal relationships that arise when people associate with each other.
13. Departmentation
The organizational process of determining how activities are to be grouped is called departmentation. (or) Departmentation is a means of dividing the large and complex organization into smaller, flexible administrative units.
14. Empowerment Empowerment means that employees, managers or teams at all levels in the organization are given the power to make decision without asking their superiors for permission.
15. Decentralization
The tendency to disperse decision making authority in an organized structure.
16. What do you mean by a strategy?
Strategy is defined as the determination of long-term objectives of an organisation. Making the best choices for the future and allocating the resources necessary to accomplish the objectives.
17. What is decision making?
Decision making is defined as the selection of a course of action among alternative courses of action. Decision making should be rational. Decision making involves a choice among alternatives.
18. What is the purpose of planning?
a. To determine the direction of an organisation b. To provide a basis for team work c. To minimise wastages in the future d. To facilitate decision making e. To improve morale of the employees.
19. State the importance of HRM? 1. To achieve competitive advantage over other organisation. 2. To improve the efficiency of the organisation. 3. For the fuller utilization of available resources. 4. Cost effective administration. 20. State the importance of staffing:- 1. It helps to make use of the Organisational resources. 2. It provides effective and efficient personals to the organisation.
