Management Process and Organisational Behaviour

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

span of control and wide span of control. Describe the factors that

influence the span of control. Meaning of span of control

Difference between narrow and wide span of control

Factors that influence span of control

Ans  span of control where the managers had few subordinates reporting to them and the resulting organizational structure was vertical and tall.

Narrow span :

1. Many levels of management2. High cost excessive distance between top and bottom level3. Superiors tend to get too much involved in the work of subordinates

Wide span :

1. Overloaded superiours may become decision bottlenecks2. Danger of superior’sloss of control3. Requires high quality managers

Influence the span of control

1. Training 2. Task definition and delegation 3. Well defined plans and repetitive process4. Verifiable objectives 5. Speed of change6. Org ananization structure, written and oral commucation 7. Effective intereraction and meeting8. Specialists9. Task simplicity10. Competency of managers11. Subordinates readiness

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

control?

Definition of controlling

Pre-requisites of effective control

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

Pre requisites of effective control

1. Tailoring controls to plans and positions2. Tailoring controls to individual manager3. Designing point to the expections at critical point4. Obejectivity of controls5. Flexibility6. Fitting to the organization culture7. Economy of controls 8. Ability to lead to corrective action

3 Define the term ‘personality’. Describe Cattell’s Personality Factor

Model.

Definition of Personality

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

4 Discuss the contemporary theories of motivation. 10

Explanation of contemporary theories of motivation search

Ans The contemporary motivation theories include:

ERG theory McClelland’s theory of Needs Cognitive Evaluation theory

Goal-Setting theory Reinforcement theory Equity theory Vroom’s Expectancy theory Motivational Language theory

5 What are the factors that affect group behaviour? search Explanation of factors that affect group behaviour

Ans Apart from group process, there are several factors that affect the group behavior. The change in group behavior and the group process also impacts the decision making in a group.

6 Define the term ‘leadership’. Write a brief note on “Contingency

Theories of Leadership”

Definition of Leadership

Contingency Theories of Leadership

Ans People have long been interested in leadership. Several theories have emerged over the years to answer peoples’ query about what differentiates a leader from a common person. However, these theories are still trying to offer a comprehensive view of leadership.

Several models and studies have contributed to the development of leadership style theory. Action-centered leadership (ACL) is an advanced leadership style that focuses on team, individual, and tasks. However, there are certain shortcomings.

2 Def :Leadership  is a function of knowing yourself, having a vision that is well communicated, building trust among colleagues, and taking effective action to realise your own leadership potential.

3 Contingency theories claim that there is no best way to organize or to take decisions. Success depends upon a number of variables Such as behavior, context, and need. Therefore, effectiveness of leadership depends on adopting the leadership style according to the situation. However, the approach has been criticized because it was unsuccessful in explaining completely why people with certain leadership styles are more effective in some situations than others.

Business Communication

1As a speaker you are addressing a group of people. Explain the elements involved

in this communication.

Key elements of communication

Ans Key elements of communication and its importance

Irrespective of the number of people involved, communication always includes the following key elements:

A sender who transmits a message A receiver who decodes or attaches meaning to a message A channel or medium through which the message is sent Feedback given by the receiver to the sender Noise that can disrupt the communication at any time The context in which the communication takes place

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

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

with examples.

Kinesics with example

Proxemics with example search

3How does internal business communication affect the organization? Discuss the

role of each stakeholder in this.

Importance of internal business communication

Stakeholders role search

4Imagine a new product from food industry. Write a persuasive letter to customers,

persuading them to buy your company’s product.

Choosing the product and describing in letter

Persuading the customer to buy it

5You are going to face a job interview for the post of Manager-operations. Which

aspects you will keep in mind while facing the interview?

Aspects to be kept in mind during job interview

6Write short notes on:

a) SQ3R technique of reading

b) Circulars

a) meaning and benefits of SQ3R

b) Meaning and role of Circulars

STATISTICS FOR MANAGEMENT

1 Distinguish between Classification and Tabulation. Explain the structure and

components of a Table with an example.

Meaning of Classification and Tabulation

Differences between Classification and Tabulation. search

Structure and Components of a Table with an example searchAns Classification is the process of arranging things or data in groups or classes according to their resemblances and affinities. Classification simplifies and makes data more comprehensible and renders the data ready for statistical analysis. Classified data is tabulated in rows and columns for presentation, using various methods.

Tabulation is a logical or systematic listing of related data in rows and columns, commonly known as tables. Common examples of data tables from our daily lives include the score card of a student, a bank statement and a project plan.

2 a) Describe the characteristics of Normal probability distribution.

b) In a sample of 120 workers in a factory, the mean and standard deviation of wages

were Rs. 11.35 and Rs.3.03 respectively. Find the percentage of workers getting wages

between Rs.9 and Rs.17 in the whole factory assuming that the wages are normally

distributed.

Characteristics of Normal probability distribution

Formula/Computation/Solution to the problem

3a) The procedure of testing hypothesis requires a researcher to adopt several steps.

Describe in brief all such steps.

b) Distinguish between:

i. Stratified random sampling and Systematic sampling

ii. Judgement sampling and Convenience sampling

Hypothesis testing procedure

Differences

4a) What is regression analysis? How does it differ from correlation analysis?

b) Calculate Karl Pearson’s coefficient of correlation between X series and Y series.

X 110 120 130 120 140 135 155 160 165 155

Y 12 18 20 15 25 30 35 20 25 10

Meaning of Regression and Correlation

Differences

Formula/ Computation/ Solution to the problem

5Briefly explain the methods and theories of Business forecasting.

Meaning of Business forecasting

Methods of Business forecasting

Theories of Business forecasting

6Construct Fisher’s Ideal Index for the given information and check whether Fisher’s

formula satisfies Time Reversal and Factor Reversal Tests.

Items P0 Q0 P1 Q1

A 16 5 20 6

B 12 10 18 12

C 14 8 16 10

D 20 6 22 10

E 80 3 90 5

F 40 2 50 5

Formula of Fishers Ideal Index

Computation of Fisher’s Ideal Index

Fisher’s formula satisfies Time Reversal Test

Fisher’s formula satisfies Factor Reversal Test

4 FINANCIAL AND MANAGEMENT ACCOUNTINg

1Give the classification of Accounts according to accounting equation approach with

its meaning and examples. Compare the traditional approach with modern approach

of accounting equation approach. Analyze the transaction under traditional approach.

a. 20.1.2011 Paid salary Rs. 30,000

b. 20.1.2011 Paid rent by cheque Rs. 8,000

c. 21.1.2011 Goods withdrawn for personal use Rs. 5,000

d. 25.1.2011 Paid an advance to suppliers of goods Rs. 1,00,000

e. 26.1.2011 Received an advance from customers Rs. 3,00,000

f. 31.1.2011 Paid interest on loan Rs. 5,000

g. 31.1.2011 Paid instalment of loan Rs. 25,000

h. 31.1.2011 Interest allowed by bank Rs. 8,000

Classification of accounting equation approach with meaning and

examples

2The following trial balance was extracted from the books of Chetan, a small

businessman. Do you think it is correct? If not, rewrite it in the correct form.

Debits Rs. Credits Rs.

Stock

Purchases

Returns outwards

8250

12750

700

Capital

Sales

Returns inwards

10000

15900

1590

Discount received

Wages and salaries

Rent and rates

Sundry debtors

Bank Overdraft

800

2500

1850

7600

2450

Discount

allowed

Scooty

Carriage charges

Sundry creditors

Bills payable

800

1750

700

7250

690

Journal entries of all the transactions

Conclusion

3 From the given trial balance draft an Adjusted Trial Balance.

Trial Balance as on 31.03.2011

Debit balances Rs. Credit balances Rs.

Furniture and Fittings 10000 Bank Over Draft 16000

Buildings 500000 Capital Account 400000

Sales Returns 1000 Purchase Returns 4000

Bad Debts 2000 Sundry Creditors 30000

Sundry Debtors 25000 Commission 5000

Purchases 90000 Sales 235000

Advertising 20000

Cash 10000

Taxes and Insurance 5000

General Expenses 7000

Salaries 20000

TOTAL 690000 TOTAL 690000

Adjustments:

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

2. Write off further bad debts 1000

3. Taxes and Insurance prepaid 2000

4. Outstanding salaries 5000

5. Commission received in advance1000

Preparation of ledger accounts

Preparation of trial balance

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

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

(in Rs. Crore)

Particulars 2010-11 2009-10 2008-09 2007-08 2006-07

Revenue 27,501 22,742 21,693 16,692 13,893

Operating Profit

(PBIDT)

8,968 7,861 7,195 5,238 4,391

PAT from

ordinary activities

6,835 6,218 5,988 4,659 3,856

(Source: Infosys Technologies Ltd. – Annual Report)

Preparation of trend analysis

Preparation of trend ratios

Conclusion

5 Give the meaning of cash flow analysis and put down the objectives of cash flow

analysis. Explain the preparation of cash flow statement.

Meaning of cash flow analysis

Objectives of cash flow analysis

Explanation of preparation of cash flow analysis

6Write the assumptions of marginal costing. Differentiate between absorption costing

and marginal costing.

Assumptions of marginal costing (all 7 points)

Differences of marginal and absorption costing (Includes all 8

points)

5 Managerial Economics

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

Explain advertising elasticity of demand and its practical applications in this

context.

Explanation of advertising elasticity of demand

Explanation of practical applications searchAns Elasticity of demand:Responsiveness or sensitiveness of demand to a given change in the price or non-price determinant of a commodity.

2 Explain production function in detail.

Explanation of production function

Types

Uses searchAns Production function:Technological or engineering relationship between physical quantity of inputs employed and physical quantity of outputs obtained by a firm.

3 Explain Marris’ Growth Maximisation Model in detail.

Explanation of the model

Constraints

Demerits

4 Explain Price –output determination under monopoly.

Explanation

Assumptions

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

investment function.

Explanation

Types

Determinants

6 Write short notes on:

a) Monetary Policy

b) Physical policy or direct controls

a) Parameters and objectives

b) Instruments and disadvantages

ans

6 Human Resource Management

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

Resource Management.

Definition of Human Resource Management

Explaining the functions of Human Resource Management

Ans According to Fisher, Schoendfelt and Shaw, “HRM involves all management decisions and practices that directly affect or influence the people or Human resources who work for the organization”.

HRM operations encompass a variety of functions in an organization. HRM functions include combining the administrative functions with employee welfare initiatives. The HR department liaises between employees and the top management to fulfill organizational requirements. This is a critical task as an organization’s performance can be determined on the quality of the human resources available to the organization. The availability of the human resources, in turn, is largely dependent on employee-management relations.

The functions of HRM are broadly classified into:

Managerial functions Operative functions

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

challenges faced by HR Managers.

Give a brief description of the HRM practices in India

Explaining the HRM challenges faced by HR Managers search

Ans

3 What do you mean by HRIS? Explain the components of HRIS. Describe the different

applications of HRIS in Human Resource Management.

Definition of HRIS

Brief about the components of HRIS

Explain the different applications of HRIS

Ans HRIS includes all the HR functions of the organization, namely, recruitment and selection, training and development, wages and salary administration, incentives and benefits, grievance resolution, human resource planning and succession planning.

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

Application of HRIS in Human Resource ManagementDifferent applications of an HRIS are applicant tracking system, training and development system, compensation management system, performance management system, manpower planning system, succession planning system and grievance management system.

4 “Discipline in the broad sense means orderliness-the opposite of confusion.” What do you

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

Meaning of Discipline

Explain the basic guidelines of a Disciplinary Policy

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

Basic Guidelines of a Disciplinary PolicyAs far as possible, all the rules should be framed in cooperation and collaboration with the representatives of employees.

All the rules should be appraised at frequent and regular intervals.

Rules should be uniformly enforced if they are to be effective.

A disciplinary policy should be preventive rather than punitive.

It is essential that these rules and regulations are properly and carefully formulated and communicated to employees.

5 Suppose you have joined as an HR and you have been assigned a task to carry out the

grievance handling procedure in your organization. What according to you are the causes

of Grievance? Describe in detail the Grievance handling procedure

Causes of Grievance

Explain the Grievance handling procedure

Ans Grievance Handling ProcedureThe following directions help in handling a grievance:

Receive and define the nature of the dissatisfaction. Get the facts. Analyse and divide. Apply the answer. Follow-up.

Grievance should be dealt within the limits of the first line manager.

The appellate authority should be made clear to the employee.  

The grievance should be dealt with speedily.

In establishing a grievance procedure, if the grievance is against an instruction given by a superior in the interest of order and discipline, the instructions must be carried out first and then only an employee can register his protest.

In case the grievance has not been settled by the top management and the top union leadership, the same may be submitted to an impartial arbitrator

Grievances can stem from day-to-day working relations in an organization. The employee’s relations with supervisors and colleagues can also have an impact on the job satisfaction. Employee grievances can arise because of a number of reasons.

6 Write short notes on the following :

a)Competency Mapping

b)Flexi Time

ans Competency mapping is a process of identifying key competencies that are to be possessed by employees for organizational success, and includes incorporating those competencies throughout the various processes (that is, job evaluation, training, recruitment) of the organization.

The steps involved in Competency Mapping are:

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

2. Develop a Competency Based Job Description: A competency based job description can be developed and analyzed using the results of the job analysis.

3. Mapping the Competencies: Once the competency based job description has been completed, competencies can be mapped in each of the human resource processes. This information also ensures that performance evaluations are performed on more objective grounds.

4. Development or Training: The results of the evaluation can also be used to identify training and development needs and develop programs that will help employees learn behaviors that will ultimately result in individual and organizational success.

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

A flexi time policy usually benefits everyone involved—the employees, their families, and the organization.

Flexi time is a scheme where an organization gives its employees the opportunity of a flexible working hours arrangement.

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

A flexi time policy usually benefits everyone involved—the employees, their families, and the organization.