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MODEL QUESTIONS

MG64 PRINCIPLES OF MANAGEMENT

S6 ELECTRONICS AND COMMUNICATION ENGINEERING

ANNA UNIVERSITY, TIRUNELVELI

Submitted by

MONITA SUTHERSON

Department of Management Studies

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PART A (2 MARKS)

UNIT I

OVERVIEW OF MANAGEMENT

1. Define organization.

William Scott has defined organization as follows:

Organizations are collectivities of people that have been establishedfor the pursuit of relatively specific objectives on a more or less on acontinuous basis.

2. What do you mean by sole proprietorship?

In sole proprietorship, the business is owned by one man. It is oneperson in business on his own. The owner supplies all the capital needed torun the organization and produces only with the help of his own land, capitaland labor. The owner enjoys the profits and suffers the losses in his business.

3. What is partnership?

According to the Indian Partnership Act, 1932,

Partnership is defined as ‘the relationship between persons carryingon a business to share profits of a business.’

4. Who are general partners?

All partners who are in the partnership are known as general partners.

5. What do you mean by active partners?

Partners who take active part in management and help in theformulation of policies are known as active partners. They are also knownas working or managing partners.

6. What do you understand by sleeping partners or silent partners?

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Partners who just invest money and do not take part in themanagement are known as sleeping or silent partners. Such people aftercontributing their share of capital wake up only either to share the profits orto liquidate the business.

7. Explain about nominal partners.

Partners who do not invest money and do not take part in themanagement but they lend their reputed name for the company’s reputationare known as nominal partners.

8. Who are the secret partners?

These partners take part in the management secretly but nowhere theirnames appear.

9. Write a short note on minor partners.

People who have not attained the age of 18 years and associate withthe business are known as minor partners. Such partners can be allowedonly with the consent of other members. Their liability is limited.

10. What are joint stock companies?

Joint Stock Company is the voluntary association of individuals tostart and run the businesses. The capital amount required to start thebusiness can be collected from a large number of people. Capital is dividedinto large number of shares of measurable value.

11. State the two types of joint stock companies.

i. Private Limited company

ii. Public Limited company

12. Explain about liquidation in joint stock companies.

It becomes difficult to run the company if liability becomes muchmore than assets, when creditors press for payments of loans, etc. At thisstage, the company has to be dissolved or wind up. This is known as

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liquidation. Liquidation may be compulsory or voluntary or under thesupervision of court. If the resources so not permit the payment, then theassets of the company have to be sold and the amount is paid to the creditorsin proportion. If some amount is left after the payments, then it isdistributed among the shareholders.

13. What do you mean by amalgamation in joint stock companies?

Amalgamation is the joining together of two businesses resulting inmore efficient operation because of economies of large scales,administration and marketing economies. Both parties in a proposedamalgamation can have some existing assets and liabilities which could beset out in a balance sheet or statement of affairs at the date of amalgamationalong with certain adjustments.

14. Define cooperatives.

Cooperative society is defined as the voluntary association ofindividuals with limited membership and collectively owned fund,consisting of wage earners and small producers, united on a democratic basisfor the establishment of enterprises under joint management for the purposeof improving their business economy.

15. Classify the different types of cooperative societies.

i. Producer’s Cooperative society

ii. Consumer’s Cooperative society

iii. Housing Cooperative society

iv. Farming Cooperative society

v. Credit Cooperative society

16. List out the three categories of public sector organizations.

i. Departmental organizations

ii. Public corporations

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iii. Government companies

17. Explain some of the important characteristics of government departmentalorganizations.

i. Such organization has direct control under the concerned ministry.

ii. Departmental organizations have to follow the rules and regulations ofthe government.

iii. The money required for the departmental organizations would beincluded in the budget.

iv. Profit of this organization goes to public exchequer.

v. Employees of this organization are government servants.

18. What is a public corporation?

A public corporation is fully owned by state government or centralgovernment. It is established by a special act of parliament with internalautonomy. Internal autonomy of the public corporation refers to thefreedom to appoint employees, freedom to fix salaries of employees andfreedom to make decisions.

19. What are the advantages of public corporations?

i. Corporations are supposed to be better managed. These are expectedto provide better working conditions to the employees and cheaperand better products to the customers.

ii. As the corporations do not have profit motive, they are suitable formanaging public utilities at a reasonable cost.

iii. Quick decisions can be possible.

iv. Since the corporations are not subjected to accounting and auditcontrol, it can utilize fund s with greater freedom.

v. More flexibility as compared to departmental organizations.

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vi. As the management is in the hands of experienced and capabledirectors and managers, these are managed more efficiently thandepartmental organizations.

vii. It provides economic foundations for increased opportunities foremployment.

20. What is a Government company?

A Government company, according to Indian Companies Act 1956, isany company in which not less than 51% of the share capital is held by thecentral Government or by any state Government or partly by Central andState Governments.

21.What is Joint sector management or Joint Sector Unit?

The participation by the Government and Private Industry in sharingthe capital and general management of the firm is set up. In Joint sector, theGovernment invests the capital and private party looks after the efficientworking of the management of the industry. Examples are CochinRefineries, Madras Refineries, Madras Fertilizers and Indian Oil.

22. State any one definition of management.

According to McFarland, management is defined for conceptual,theoretical and analytical purposes as that process by which managers create,direct, maintain and operate purposive organizations through systematic,coordinated, cooperative human efforts.

23.What is scientific management?

Frederick Winslow Taylor has defined scientific management as follows:

Scientific management is concerned with knowing exactly what youwant men to do and then see in that they do it in the best and cheapest way.

24.What do you understand by management science theory?

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Management science theory utilizes various quantitative techniques tomaximize resources. Quantitative Management, Operations Management,Total Quality Management and Management Information System arecoming under Management Science Theory.

25. Explain chain of command.

Unbroken line of authority is known as chain of command. The lineof authority flows from top to bottom through the chain of command.

26.Who is referred to as the Father of Scientific Management? What is the goalof Scientific Management?

Frederick Winslow Taylor is known as the ‘Father of ScientificManagement’. The main goal of Scientific Management is to replace rulesof thumb and trial and error methods by scientific methods, dividing theworkers scientifically, selecting people based on scientific principles,performing all the works in accordance with principles of science.

27. What is the contribution of Taylor to the evolution of scientificmanagement?

Taylor noticed that managers were supposed to pick up theirmanagerial skills through trial and error. He was against the use of rules ofthumb. He believed that productivity could be increased by the applicationof scientific methods and increased pay of workers.

28. Explain scalar chain.

Scalar chain refers to the ‘chain of superiors’ ranging from the highestto the lowest ranks. The line of authority must flow from the top of theorganization to the bottom. The line of authority should be very clear andthis must be clearly indicated in the organization chart.

29. What is esprit de corps?

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This is the principle that ‘union is strength’. Harmony is the greateststrength to an organization. Team work should be encouraged. The successof a business activity depends on the unity of work.

30. List the functions of managers (or) management.

The functions of managers (or) management are

i. Planning

ii. Organizing

iii. Staffing

iv. Directing

v. Controlling

31. Define Administration.

Spriegal states that:

Administration is that phase of a business enterprise that concernsitself with the overall determination of institutional objectives and thepolicies necessary to be followed in achieving those objectives.Management, on the other hand, is an executive function which is primarilyconcerned with carrying out broad policies laid down by the administration.

32. Distinguish between management and administration.

Administration Management

1. Administration lays down corporateobjectives and policies.

Management executes theobjectives and policies set by theadministration.

2. Administration resembleslegislative.

Management resembles executive.

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3. Administration is associated withtop level management.

Management is associated withlower level activities.

4. The term administration is used ingovernmental, military andeducational organizations.

The term management is used inprofit making businessorganizations.

5. Administration is needed in longterm finance to make decisions onhow to collect capital needed tostart or expand business.

Management is needed in shortterm finance decisions.

6. Administration determines the sizeof the organization structure.

Management makes use oforganizational resources toachieve organizational objectives.

7. Administration exercises controlover management.

Management is accountable toadministration.

33. List the three essential skills according to Katz that managers need toperform the duties.

Katz (1974) talks of three types of skills that are recognized by allmanagers. These are the technical, the human and the conceptual skills.

i. Technical skill:

It is the ability to work with resources in a particular area ofexpertise.

ii. Human skill:

It is the ability to work effectively as a group member and to buildcooperative effort within the team he leads.

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iii. Conceptual skill:

This skill means the ability to see the organization as a whole andit includes recognizing how the various functions depend on oneanother.

34. List the roles of managers according to Mintzberg.

Mintzberg identified ten roles and the roles are classified into threecategories:

I. Interpersonal roles:

i. Figurehead role

ii. Leader role

iii. Liaison role

II. Informational roles:

i. Monitor role

ii. Disseminator role

iii. Spokesperson role

III. Decision role:

i. Entrepreneur role

ii. Disturbance handler role

iii. Resource allocator role

iv. Negotiator role

35.What are the schools of management thought?

i. Scientific management

ii. Administrative management

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iii. Behavioral management

iv. Management science

v. Organizational environment

36. What is Hawthorne effect?

The improvement in productivity was due to social factors such asmorale, satisfactory inter relationships between members of a work groupand effective management- a kind of managing that would understandhuman behavior, especially group behavior and serve it through suchinterpersonal skills as motivating, counseling, leading and communicating.This phenomenon is known as Hawthorne effect.

37. Define International management.

International management is an aspect of management that involvescollecting business and industrial operations in foreign countries and isaffected by cultural and national influences.

38. What is joint venture?

In joint ventures, a company in one country pools its resources withanother foreign company to produce and market products and jointly shareprofits and losses.

39. Define foreign subsidiary.

Foreign subsidiaries are the wholly owned branches of a parentcompany operating in foreign countries. In foreign subsidiaries, a firminvests in production operations in a foreign country. The production andmarketing of products are done by through subsidiaries in a foreign countrythat is wholly owned by the parent company. Many Japanese automobilecompanies have subsidiaries in U. S.

40. Define licensing.

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In licensing, a company authorizes companies in foreign countries toproduce and or market a given product within a specified territory in returnfor a fee. It helps the home company since it does not have to set up acomplete production and distribution set up in the host country.

41.What do you mean by Multinational Corporations?

Multinational Corporations are large industrial organizations whichextend their industrial and marketing activities through a network of theirbranches.

42. What are the types of Multinational Companies?

i. Ethnocentric companies

ii. Polycentric companies

iii. Regiocentric companies

iv. Geocentric companies

43.What is Ethno Centric Organization?

Ethnocentric organizations provide emphasis on their home countries.The managers in ethnocentric companies practice ideas that are orientedtowards home country environment. This form of organization is notsuitable for all types of business environment.

44.What is Theory Z management?

Traditional Japanese management practices include collectiveresponsibility, informal control and consensus decision making.

Traditional American management practices include individualresponsibility, formal control, mechanisms and individual decision making.

Theory Z is the mixed management practices of Japanese andAmerican practices and it includes individual responsibility, informal controlmechanisms and consensus decision making.

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45. What is managing concept in France?

I. Le plan:

Government’s planning at a national level is known as Leplan. Government provides cooperation and assistance toFrench industries. The involvement of government inindustries is more. Most of the companies in France are ownedby government or aided by Government. So, one in fourFrench employees are Government servants.

II. Cadre:

French universities make managers with better analyticalability, independence and proficiency in synthesizing facts.

46. State the factors influencing managing in Australia.

i. Australian managers must give importance to social andpolitical values.

ii. They are achievement oriented.

iii. They are able to work in risk or uncertain environment.

47. Compare the management practices in Japan to those in the United States.

Japanese ManagementPractices

US Management practices

1. Japanese companies providemore emphasis on lifetimeemployment.

There is no life timeemployment.

2. Decision making in Japanesecompanies is participative.

Individual decision making isfollowed in US companies.

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3. Informal control mechanismsare used in Japanesecompanies.

Formal control methods areused.

4. Collective responsibility is themain aspect of Japanesecompanies.

American managementpractices include individualresponsibility.

48.What is liberalization?

The term liberalization refers to open market conditions and they cantake various forms namely

i. Reduction of tariff and nontariff barriers.

ii. Deregulation of domestic regulatory measures.

iii. Enhanced transparency of trade policies.

iv. Simplification of customs procedures and practices.

49. Define globalization.

Globalization is defined as that integration of economy of one countrywith worldwide economy with a view to eliminate supply bottlenecks,improving investment climate and improving quality of products andservices provided to the ultimate consumers.

50. State the various methods of globalization.

i. Exporting

ii. Licensing and Franchising

iii. Joint ventures

iv. Fully owned manufacturing facilities

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v. Assembly operations

vi. Mergers and acquisitions

vii. Strategic alliance

viii. Contract manufacturing

ix. Management contracting

x. Counter trade

51. What is Management by Exception (MBE).

Management by Exception (MBE) states that only significantdeviations from established standards should be brought to the notice of themanagement.

52. List out some economic factors which affect the global environment.

i. Economic development

ii. Infrastructure

iii. Resource and product markets

iv. Exchange rates

v. Nature of economic system

53. State the merits of globalization.

i. Allows for greater realization of potential.

ii. Economies of scale of operations.

iii. Technological and productivity improvements through crossborder specialization.

iv. Utilization of global factors of production and technology.

v. Allows for more productive applications of capital.

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vi. Worldwide increased standard of living.

vii. Maximum rates of return on savings and investment.

54. What are the different approaches of unified Global management theory?

i. The Empirical approach

ii. The Systems approach

iii. Situational or contingency approach

iv. Merging motivation and leadership theories

v. Organization development approach

55. State the 7Ps in the marketing strategy.

i. Product

ii. Place

iii. Price

iv. Promotion

v. Physical evidence

vi. People

vii. Public Relations

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UNIT II

PLANNING

1. Define planning.

Planning is a process by which a manager looks to the future anddiscovers alternative courses of action. In other words, planning isanticipatory decision making. Planning is the process used by managers toidentify and select goals and courses of action of the organization.

2. What is the purpose of planning?

i. To determine the direction of an organization.

ii. To provide a basis for team work.

iii. To minimize wastages in the future.

iv. To facilitate decision-making.

v. To improve morale of the employees.

3. State the objectives of planning.

i. To determine the direction of an organization.

ii. To provide a basis for team work.

iii. To minimize wastages.

iv. To facilitate control.

v. To adapt to the changes in environment.

vi. To provide coordination.

vii. To reduce risk or uncertainty.

4. State the various steps involved in planning.

i. Being aware of opportunities.

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ii. Establishing objectives.

iii. Considering planning activities.

iv. Identifying alternatives.

v. Evaluating alternative courses of action.

vi. Choosing a best alternative course of action.

vii. Formulating derivative plans.

viii. Numerising plans by budgeting.

5. Classify the various types of plans used in planning.

i. Mission

ii. Objectives or goals

iii. Strategies

iv. Policies

v. Procedures

vi. Rules

vii. Programs

6. What do you mean by mission?

Mission is the organization’s purpose or fundamental reason forexistence. Every organization must have a mission or purpose.

7. Why do you need a vision for an organization?

i. A vision defines the basic purpose or objectives of anorganization.

ii. It has the power to inspire people.

iii. Successful vision guides for decision making.

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8. What do you mean by procedures?

Procedures describe in detail, the steps to be taken in order toaccomplish a job. Procedures are chronological sequences of requiredactions. They are called action guidelines.

9. Define the term ‘Planning Premises’.

Planning premises are defined as the anticipated environment inwhich plans are expected to operate. Premises are the assumptions on whichplans are formulated.

10.What are objectives?

Objectives are the ends towards which the activities of an organizationare directed. Different organizations have different objectives. Objectivesare set by the owners or senior management.

11.What are the characteristics of objectives?

i. Objectives of an organization are structured into a hierarchy.

ii. Objectives are multiple in nature.

iii. Objectives may be of long-term or short-term objectives.

iv. Objectives should be specific and measurable.

v. Objectives are interdependent.

vi. Objectives must cover key result areas.

12. State the benefits of objectives.

i. There is unity of planning.

ii. Objectives facilitate coordination.

iii. Objectives provide better control.

iv. Objectives facilitate direction.

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v. Objectives are used to measure performance.

13. What are the two approaches for setting objectives?

i. Top-down approach:

The top management determines objectives for subordinates.

ii. Bottom-up approach:

Subordinates help managers in setting objectives.

14. What is the importance of setting organizational objectives in a moderncomplex organization?

i. Objectives provide the basics for planning.

ii. Objectives facilitate coordination of work.

iii. Objectives motivate employees.

iv. Objectives provide the yardstick to measure the performance of theemployees and hence better control.

15. Define MBO (Management by Objectives).

MBO (Management by Objectives) is a method whereby clearobjectives for every department, project and person are jointly set bysuperior and subordinates. MBO integrates the organizational objectivesand individual objectives.

16. What are the benefits of MBO (Management by Objectives)?

i. Employees can be motivated because they participate in the goalsetting process.

ii. Performance can be improved because MBO concentrates onobjectives.

iii. Unnecessary efforts will be minimized because objectives are setclearly.

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iv. MBO helps managers to exercise better control over employees.

17. What are the weaknesses of MBO?

i. MBO involves too much paper work and holding of many meetings.

ii. MBO is a time consuming process.

iii. An environment of poor employer- employee relations reduces MBOeffectiveness.

iv. Failure to teach the philosophy of MBO weakens the MBO program.

18.What are the features of MBO?

i. Emphasis on results rather than activities.

ii. Achievement of maximum performance.

iii. Harmonization of individual employee goals with the organizationalgoals.

iv. Translation of overall objectives of an organization into objectives ofevery department, every person and every project.

v. Assessing performance of each employee or division and comparingwith planned performance.

vi. Delegation of authority and power from the top level management tothe lower level management.

vii. Involving people at all levels of the organization.

19. State the requirements of MBO.

i. Approval and support of top management.

ii. Teaching the philosophy and fundamentals of MBO to allsubordinates clearly.

iii. Setting objectives for both individual and division jointly by thesuperior and subordinates.

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iv. Implementing appraisal methods to evaluate the contribution of eachindividual and every department.

v. Implementing MBO at lower levels.

20. Define strategy.

Strategy is defined as the determination of long-term objectives of anorganization, making the best choices for the future and allocating theresources necessary to accomplish the objectives.

21. What do you mean by strategic planning?

Strategic planning is defined as the determination of long-termobjectives of an organization, making the best choices for the future andallocating the resources necessary to accomplish the objectives.

22. What is grand strategy?

Grand strategy is the action plan by which a firm intends to achieve itslong-term goals.

23. What is global strategy?

Global strategy is the action plan by which an organization intends toachieve its long term goals in the international environment.

24. Mention the three levels of strategy.

i. Corporate level strategy

ii. Business level strategy

iii. Functional level strategy

25. Distinguish between strategical and tactical planning.

Strategical planning Tactical planning

1. Long range planning Short term planning

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2. Emphasis on analyzing thefuture.

Emphasis on analyzing day-to-dayfunctions.

3. Developed by top levelmanagement.

Developed by low levelmanagement.

26. Classify the different types of strategies.

I. Grand strategy:

i. Stability strategy

ii. Growth strategy

iii. Retrenchment strategy

II. Global strategy:

i. Globalization strategy

ii. Multidomestic strategy

iii. Transnational strategy

27. List the five categories of corporate level strategies.

i. Forward vertical integration strategy

ii. Backward vertical integration strategy

iii. Horizontal integration strategy

iv. Concentric diversification strategy

v. Conglomerate diversification strategy

28. What are the four types of strategies in the TOWS matrix?

i. WT strategy

ii. WO strategy

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iii. ST strategy

iv. SO strategy

29. What are the four alternative categories under BCG matrix?

i. Star

ii. Cash Cow

iii. Question mark

iv. Dog

30. Mention Porter’s five competitive forces in a company’s environment.

i. Threat of new entrants

ii. Threat of substitute products

iii. Bargaining power of buyers

iv. Bargaining power of suppliers

v. Rivalry among current competitors

31. List the various tools used for developing organizational strategies.

i. SWOT analysis

ii. BCG matrix

iii. Porter’s five forces model

32. What do you mean by situation or SWOT analysis?

Situation analysis includes SWOT – Strengths, Weaknesses,Opportunities and Threats. The situation analysis is important for analyzingthe competitive situation of the organization. SWOT is a systematicanalysis that facilitates matching the external threats and opportunities withthe internal weaknesses and strengths of an organization.

33. Define policy.

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Policy is a statement and predetermined guideline that providesdirections for decision making and taking action. Policies may be basedupon a thorough analysis of objectives and it should be consistent with thecompany’s mission and philosophy.

34. Distinguish between policies and strategies.

Policies Strategies

1. Policies are the guidelines todecision making.

Strategy is the long term view andto see the big picture.

2. Policies are formulated by topand middle level management.

Strategic planning is made by toplevel management only.

3. Policies are the means forachieving organizational goals.

Strategy is concerned withpositioning the business in themarket and establishing areputation with customers,employers and other stakeholders.

35. What are the guidelines to be followed for effective policy-making?

i. Policies as far as possible should be in writing.

ii. They should be clearly understood by those who are supposedto implement them.

iii. They should reflect the objectives of the organization.

iv. Policies should be periodically reviewed.

36. Distinguish between policies and objectives.

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Policies Objectives

1. Policies are formulated by thetop and middle management.

Objectives are set by the topmanagement only.

2. Policies are standing plans.Standing plan is developed foran activity which is likely to berepeated in future.

Objectives are single use plans.Single use plans are developed foran activity which is not likely tobe repeated in future.

3. They are the guidelines thatprovided direction for decisionmaking.

Objectives are aims or goals i.e.they are the ends.

4. They determine how the work isto be done.

They determine what is to bedone.

5. Policies are the means forachieving organizational goals.

Objectives are the focal points forthe efforts of the organization.

6. Organizational existence andsurvival do not depend upon thepolicies.

Organizational existence andsurvival depends upon theobjectives.

37. What is decision making?

Decision making is defined as the selection of a course of actionamong alternative courses of action. Decision making should be rational.Decision making involves a choice among alternatives.

38. State any two decision making strategies.

i. Decision tree method

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ii. Operations research

iii. Break even analysis

iv. Simulation or stochastic techniques

39. What do you term ‘bounded rationality’ in decision making?

If people are having time and cognitive ability for making decisions, itis said to be bounded rationality. The concept of bounded rationalityattempts to describe decision processed in terms of three mechanisms:

i. Sequential attention to alternative solutions: People examinepossible solutions to a problem sequentially.

ii. Use of heuristics: A heuristic is a rule which guides the searchfor alternatives into areas that have a high probability foryielding satisfactory solutions.

iii. Satisfying: An alternative is satisfactory if there exists a set ofcriteria that describes minimally satisfactory alternatives.

40. Mention the various types of decision making models.

i. Econologic model or Economic Man model

ii. Administration Man Model or Bounded Rationality Model

iii. Implicit favorite Model or Gamesman Model

41. List the forecasting techniques used for decision making.

i. Consumer survey method

ii. Expert opinion (Delphi) method

iii. Sales force opinion method

iv. Test market method

v. Controlled experience method

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vi. Trend projection method

vii. Leading indicators method

viii. Regression method

42. What do you mean by DSS?

Decision Support Systems are applied broadly to systems that aiddecision making by providing the answers to a series of ‘what if’ questions.Decision support systems include expert systems, natural language systems,artificial intelligence systems and knowledge based systems.

43. List any four quantitative forecasting techniques.

i. Trend projection method

ii. Leading indicators method

iii. Regression method

iv. Simultaneous equation method

44. Define forecasting.

Forecasting is the statistical analysis of the past and current movementon the given time series so as to obtain clues about the future pattern ofthose movements. Forecasting means prediction of the future.

45.What do you mean by group decision making?

In large organizations facing complex problems, decisions are notmade by individuals, but decisions are made from a series of meetings inwhich executives jointly approach problems. The meetings are called asconference committees, boards or staff meetings.

46. State any two advantages and disadvantages of group decision making.

Advantages:

i. Viewing of problems from several perspectives.

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ii. More alternative solution due to greater information and knowledge.

Disadvantages:

i. Considerable wastage of time.

ii. No one is responsible for decisions made.

47. Define simulation.

Simulation is the process of building, testing and operating models ofreal-world phenomena through the use of mathematical relationships thatexist among critical factors.

48. Describe the various decision making techniques.

I. Probabilistic or stochastic techniques:

i. Expected value method

ii. Decision tree method

iii. Simulation techniques

II. Deterministic techniques:

i. Operations research

ii. Break even analysis

iii. Inventory control

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UNIT III

ORGANISING

1. What do you mean by organizing?

Organizing is the process by which managers create the structure ofworking relationships between organizational members that allows them towork together and to achieve organizational goals.

Thus organizing is

i. Identifying and classifying the required tasks.

ii. Grouping people into departments.

iii. Delegating authority and responsibility.

2. Define organizational structure.

Organizational structure refers to the formal, established pattern ofrelationships among the various parts of a firm or any organisation. Theserelationships are formal implies that they are deliberately specified andadopted and do not evolve on their own.

3. List out the elements of organizational structure.

i. Division of labor

ii. Departmentation

iii. Span of control

iv. Delegation of authority

v. Centralization and Decentralization

vi. Formalization

4. What is division of labor?

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The process of assigning various activities to different people who arespecialists in that area is known as division of work or division of labor.Division of work improves efficiency.

5. Write a short note about formalization.

Formalization refers to the degree to which jobs within theorganization are standardized. It helps the job incumbent know what is to bedone, when it is to be done, and how he or she should do it. Formalization isdone through written policies, rules and regulations. It helps managers‘manage by exceptions’. Managers need to concentrate only on exceptionalcases, instead of paying attention to daily routine aspects of the workplace.

6. Explain departmentation.

Departmentation is a process which divides the entire organisationinto smaller, flexible and administrative units. Dividing the work and peopleand grouping them on some logical basis is called departmentation.Departmentation is a method of arranging activities to facilitate theaccomplishment organizational objectives.

7. Compare departmentation by function and product.

Functional departmentation Product departmentation

1. Activities are grouped accordingto the common functions ofmanagement.

Activities are grouped accordingto the product or product lines.

2. It is suitable for organizationsdealing with a single product.

It is suitable for largeorganizations.

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8. Differentiate between functional and product/market organisation structure.

Functional Structure Product/Market structure

1. The activities are groupedaccording to functions ofmanagement such as finance,accounting, purchasing.

The activities are groupedaccording to the variety ofproducts or product lines.

2. This type of organisationstructure is most suitable at thetime of starting the organisation.

This type of structure is suitablewhen the organisation grows andbecomes larger in size.

3. Functional structure is suitablefor organisations having a singleproduct.

Product structure is suitable fororganisations having multiplenumbers of products.

9. What are the advantages of product structure?

i. Product line managers get broader experience.

ii. Decision making is faster.

iii. It permits fast change in product line.

iv. It permits growth and diversity of products and services.

10. What are the advantages of matrix types of organisation?

i. It efficiently manages large and complex tasks.

ii. It permits efficient utilization of resources.

iii. It allows interaction among members of both product and functionalorganization.

iv. It improves the skills and broadens the knowledge of managers.

11. What are the disadvantages of matrix types of organisation?

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i. It requires high level of coordination.

ii. It increases conflict between two managers.

iii. It requires high levels of management skills.

iv. It requires managers effective in human relations.

12.What is SBU?

A strategic business unit (SBU) is a division or subsidiary of a largeorganization and it provides a distinct product or service and has its ownmission and goals.

13.Define span of control in an organization.

Span of control refers to the number of persons a manager can controleffectively to achieve the goals of the organisation. It is the function todecide how many subordinates a manager can supervise.

14.What is the difference between flat structure and tall structure?

Flat Structure (Wide Span) Tall Structure (Narrow Span)

1. Wide span results in moredelegation of authority.

Narrow span provides tight controland close supervision.

2. Managers with special skillsmust be essential.

Managers with average skills areenough.

3. Manager has a limited time totake a decision.

Manager has more time to take adecision.

4.Managers get overloaded.

Manager is free and he can think ofthe future.

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15. Enumerate the factors affecting span of control.

i. Nature of work

ii. Competence and leadership ability of the manager

iii. Capability of the subordinate

iv. Planning and standardization of work

16. Define centralization and decentralization.

Louis A. Allen has defined both the terms as, ‘Centralization is thesystematic and consistent reservation of authority at central points within anorganization. Decentralization applies to the systematic delegation ofauthority in an organization-wide context.

17. State the various methods to be followed for making decentralizationeffective.

i. Centralized top policy

ii. Appreciation of concept of decentralization

iii. Development of managers

iv. Competition among units

v. Open communication

vi. Effective co-operation

18. What are the advantages of decentralization?

i. It reduces burden of the management so that it can focus moreattention on strategic management.

ii. It encourages decision making and assumption of authority andresponsibility.

iii. It facilitates the growth and diversification in the organization.

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iv. It enables the department staff members to complete work early.

19. State any four disadvantages of decentralization.

i. It is difficult to have a uniform policy and procedure.

ii. There is an increase in complexity of coordination of decentralizedorganizational units.

iii. If it is not followed properly, decentralization will create chaos in theorganization in the absence of proper control.

iv. There is a possibility of duplication of work.

20. Compare delegation and decentralization.

Delegation Decentralization

1. It is the process of devolution ofauthority.

It is the end result achieved by thedelegation.

2. It implies the relationshipbetween a superior and asubordinate.

It implies the relationshipbetween top management andvarious departments or sections.

3. The delegation control restsentirely with the superior.

Here, the top managementexercises only overall control anddelegates the authority for controlto the departmental heads.

4. It is a must for management. It is optional.

21. What is meant by delegation of authority?

Delegation of authority is the process that allows the transfer ofauthority from superior to subordinates. Delegation is the process through

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which a manager assigns duties to employees and gives them authority tocarry out the tasks.

22. State the three important elements of delegation.

The three important elements of delegation are

i. Responsibility

ii. Authority

iii. Accountability

23. What are the guidelines for effective delegation?

i. Define assignments and delegate authority in light of results to beachieved.

ii. Select right person.

iii. Establish adequate controls.

iv. Provide proper incentives.

24. What do you mean by responsibility?

Responsibility is the duty or obligation of the subordinates to performthe task as required by the manager. Each employer having responsibilityshould have commensurate authority to complete the job.

25. Differentiate between authority and responsibility.

Authority is the right to influence others to act.

Responsibility is the obligation to perform a task, function orassignment.

26. Distinguish between authority and power.

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Authority Power

1. Authority is the right to giveorders.

Power is to extract obedience.

2. Authority is the right tocommand action by others.

Power is derived from authority.

27. Classify the two types of delegation.

I. Formal delegation

i. Bottom-up delegation

ii. Lateral delegation

II. Informal delegation

28. Differentiate formal and informal organisation.

Formal organisation Informal organization

The relationship betweenmembers in the organizationalstructure is well defined.

There is no formal relationshipbetween members.

It has clear and definiteorganizational structure.

It has not clear organizationalstructure.

Individual goals are consistentwith the organizational goals.

Individual goals may not supportorganizational goals.

29. Why is informal organisation needed?

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The speed of communication flow through the informal channels isfaster than formal channels. Many tasks which cannot be accomplished byformal organisation can be completed by informal organisation. Informalorganisation encourages cooperation between people. Informal organisationprovides job satisfaction, personal attachment and status to workers. Thus,informal organization is needed for any organisation.

30. Name the different types of organization structure.

i. Line organizational structure

ii. Line and staff organizational structure

iii. Functional organizational structure

iv. Committee structure

31. Define line organization.

According to Lunday,

Line organization is characterized by direct lines of authority flowingfrom top to bottom of the organizational hierarchy and the lines ofresponsibility flowing in an opposite but equally direct manner.

32. Give two examples of line organization.

i. Military

ii. Small enterprises

33. What do you mean by line and staff organisation?

In line and staff organisation, the line authority remains the same as itdoes in the line organisation i.e. the authority flows from top to bottom andthe line executives perform the major functions, staff support and advise theline executives.

34. State the different types of staff in line and staff organisations.

i. Personnel staff

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ii. Specialized staff

iii. General staff

35. What are the merits of line and staff organization?

i. There are good chances for growth of the business because the entiretask is divided systematically.

ii. The discipline and control is better in such organisations.

iii. As the resources are utilised fully, wastages are eliminated.

36. What is the necessity of staff authority in line organizations?

At some point of growth of the organisation there will be a need forspecialists to provide advice and support to the organisation. Hence, staffauthority is needed in line organizations.

37. What is ‘line relationship’ in line and staff organizations?

In line and staff organisations, the line authority remains the same asit does in the line organisations i.e. the authority flows from top to bottomand the line executive perform the major functions, staff support and advisethe line executives.

38. What are the limitations of line and staff?

i. Production cost in line and staff organisation is very high because ofthe high salaries of staff executives.

ii. Staff executives do not have any authority. So, they are unable toimplement a policy or plan.

iii. Conflict will be more in such organisation because authority andresponsibility are not clearly defined.

iv. Line and staff organisation is not suitable for small organizations.

39. What is meant by functional organisation structure?

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Grouping activities according to the functions of management isknown as functional organisation structure. The basic organizationalfunctions are finance, accounting, purchasing, production and marketing. Infunctional organisation, a staff executive is given authority over other peopleaccording to his specialization. Each function should be controlled by onespecialist of the concerned field.

40. What is meant by functional authority?

In functional authority, each function is controlled by one specialist ofthe concerned field. A staff executive is given authority over other peopleaccording to his specialization. The specialist is an expert in a particularfield and workers will be controlled by him.

41. What are the characteristics of functional organisation?

i. Each area is divided according to functions.

ii. Each function is performed by specialists.

iii. Functional organizations cover only specific task areas.

iv. It covers only specific task areas

42. Enumerate the advantages of functional organisation.

i. Specialization

ii. Quick training of workers

iii. Scope for research and growth of the industry

iv. Expert guidance reduces the accidents and wastage of materials.

43. What is meant by committee organisation?

A committee is a tool for the development of ideas to solve problemsand recommendations of policy and procedure. It brings better plans andpolicies for operations and results in better cooperation in their execution.

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The final decision to put committee recommendations into action rests withthe line.

44. Define staffing.

Staffing function is defined as filling and keeping filled positions inthe organizational structure. This is done by identifying number ofemployees required, analyzing the number of employees presently working,recruiting, selecting, placing, promoting, appraising, planning the careers of,compensating and training of both candidates and existing employees so thatthey can accomplish their tasks effectively and efficiently.

45. List out the functions of staffing in HRD.

i. Human resources are utilised optimally.

ii. Skilled and talented people are procured by staffing.

iii. Staffing helps individuals to achieve their personal goals.

iv. Staffing improves employer-employee relationships.

46. What do you mean by career strategy?

The career plan which is designed to utilize strengths and overcomeweaknesses in order to take advantage of career opportunities is known ascareer strategy.

47. Define recruitment.

According to Edwin B. Flippo,

Recruitment is the process of searching the candidates foremployment and stimulating them to apply for jobs in the organization.

48. What are the internal sources of recruitment?

The internal sources of recruitment are

i. Temporary workers

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ii. Promotion

iii. Transfer

iv. Apprentice

v. Dependents

vi. Past employees

49. Define selection.

Selection is the process of choosing the most suitable worker for thejob. The aim of selection process is to determine whether a candidate meetsthe qualification for a specific job and to choose the candidate who is mostlikely to perform well in the job.

9. List out the various steps involved in selection process.

i. Preliminary screening of applicants

ii. Preliminary interview

iii. Application blank

iv. Checking references

v. Employment tests

vi. Psychological tests

vii. Employment interview

viii. Final approval/ selection

ix. Placement

x. Induction

50. State the various psychological tests used in selection process.

i. Intelligence tests

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ii. Proficiency or aptitude tests

iii. Personality tests

iv. Vocational tests

v. Achievement tests

51. What are the various types of interviews?

i. Structured interview

ii. Unstructured interview

iii. Semi structured interview

iv. Stress interview

v. Group interview

vi. Depth interview

52. What do you mean by interview?

The interview, one of the most helpful tools in the selection processprovides the opportunity for meeting the applicant and observing his verbalability, appearance, general personality and attitude as well as chances to gettogether and to talk it over.

53. Define induction.

Induction is concerned with introducing or orienting a new employeeto his work-group, supervisor and the organisation. It is the beginning of thefusion process which helps integration between the organisation goals andthe personal goals of the new employee. It generates a feeling ofbelongingness to the organization.

54. State the purpose of induction.

i. To build the new employee’s confidence in the organization.

ii. To promote a feeling of belonging and loyalty to the organization.

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iii. To eliminate false impressions about the organizations from the newemployee’s mind.

iv. To give the new entrant the information he needs such as location ofrestrooms, cafeteria, work time, leave rules, etc.

v. To foster a close relationship between the old and new workers andsupervisors.

55. Define career development.

Career development is the systematic process of growth anddevelopment by which individuals develop their interests and abilities.

56. List out the various stages involved in career development.

i. Exploratory stage

ii. Establishment stage

iii. Maintenance stage

iv. Stage of decline

57. Define performance appraisal.

According to Spriegal,

Performance appraisal is the process of evaluating the employee’sperformance on the job in terms of the requirements of the job.

58. Give any two characteristics of performance appraisal.

i. Performance appraisal is a continuous process by which evaluationsare periodically made.

ii. It is a systematic evaluation of employee’s strengths and weaknessesin terms of job requirements.

59. State any two objectives of performance appraisal.

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i. To assess the ability of the employee and to make use of his talent inthe present job.

ii. To prove the justification of different rates of wages to differentworkers according to their abilities.

60. State the various types of performance appraisal.

i. Comprehensive review or approval

ii. Progress or periodic reviews

iii. Continuous monitoring

61. Write a short note on periodic appraisals.

Periodic appraisals are conducted at regular intervals. The periodic reviewsare conducted to identify problems and barriers in key result areas. These reviewsimprove the communication between superior and subordinates.

62. Give the definition of training.

According to Edwin B. Flippo,

Training is an act of increasing the knowledge and skills of an employee fordoing a particular job. Training involves the development of skills that arenecessary to perform a specific job. Its purpose is to achieve a change in thebehavior of those trained and to enable them to do their jobs better.

63. What are the reasons for training needs?

i. Technology changing at a fast pace

ii. Quality conscious customers

iii. Greater productivity

iv. Stable workforce

v. Increased safety

vi. Better management

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64. What are the various types of training?

i. Induction or orientation training

ii. Job training

iii. Apprenticeship training

iv. Internship training

v. Refresher training or retraining

vi. Training for promotion

65. What is meant by retraining? Why is it needed?

Retraining is the process of providing training to employees who havelong been in the service of an organisation and have underwent training earlier.Retraining becomes necessary when the knowledge and skills of employeesbecome obsolete due to rapid change in technology.

66. State any two objectives of training.

i. To prepare workers for higher jobs by developing advanced skills inthem.

ii. To make the workers handle materials and machinery efficiently.

67. Define the term ‘on-the-job training’.

Under this method, the worker is given training at the workplace by hisimmediate supervisor. It is suitable for imparting skills that can be learned in arelatively short period of time. It is based on the principle of ‘learning by doing’ inan actual work environment.

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UNIT IV

DIRECTING

1. What is meant by the term directing?

Directing may be defined as the process of instructing, guiding andinspiring human factors in the organization to achieve organizationobjectives. It is not only issuing orders and instruction by a superior to hissubordinates but also including the process of guiding and inspiring them towork effectively.

2. State the important characteristics of directing.

i. Directing is an important managerial function through which themanagement initiates actions in the organization.

ii. It is performed at all levels of management. Every manager in theorganization performs his duties both as superior and a subordinate.

iii. It is a continuous process and it continues throughout the life of theorganization.

iv. It has dual objectives. It aims at getting work done by thesubordinates and the other hand, to provide superiors opportunities forthe same more important work which their subordinates cannot do.

3. Mention any two scope of directing in the organization.

i. Directing integrates the employee’s individual efforts to make iteffective to achieve organisation objectives, since each individual’sperformance affects the performance of others in the organisation.

ii. Without having proper motivation, leadership and communication,individual’s capability and potential may not be fully utilized.Motivation, leadership and communication are the elements ofdirecting. Therefore, directing provides the way to utilize capabilityof the individual and attempts to get maximum benefits out of them.

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4. List down the human factors in managing.

i. Multiplicity of roles

ii. Individuality

iii. Personal dignity

5. Define creativity.

Creativity is defined as the ability to produce new and useful ideasthrough the combination of known principles and components in novel andnon obvious ways. Creativity exists throughout the population, largelyindependent of age, sex and education.

6. Mention the steps involved in creative process.

i. Saturation

ii. Preparation

iii. Frustration and incubation

iv. Inspiration or illumination

v. Verification

7. List out some of the characteristics of creative people.

i. Self-confidence and independence

ii. Curiosity

iii. Approach to problems

iv. Some personal attributes

8. Define innovation.

Innovation means the use of new ideas. These new ideas may bedeveloped through creativity. In an enterprise, innovation can meandeveloping a new product or service, or a new way of doing things.

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Innovation is not only relevant to high-tech enterprises but also crucial forold-line, traditional companies which may not service without the infusionof innovation.

9. State the situations that prompt the adoption of innovation.

i. The unexpected event, failure or success.

ii. The fact that the difference between what is assumed and what reallyis.

iii. The process or task that needed improvement.

iv. Change in the market or industry improvement.

v. Change in the market or industry structure.

vi. Change in human population.

vii. Change in meaning or in the way things are perceived.

viii. Innovation based on knowledge.

10.How are problems solved by creative tool?

Creativity tools are designed to help you devise, creative andimaginative solutions to problems. It helps you to spot opportunities thatyou might otherwise miss.

11.What is a SCAMPER tool?

SCAMPER is a checklist that helps us to think of changes. We canmake to an existing product to create a new one. These changes can be usedeither as direct suggestions or as stating points for lateral thinking.

12. What does SCAMPER stand for?

i. S- Substitute- components , materials, people

ii. C- Combine – mix, combine with other assemblies or services,integrate

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iii. A- Adapt- alter, change function, use part of another element

iv. M- Modify- increase or reduce in scale, change shape, modifyattributes (e.g. color)

v. P- Put to another use

vi. E- Eliminate- remove elements, simplify , reduce to core functionality

vii. R- Reverse- turn inside out or upside down, also use of reversal

13. What is meant by reframing matrix?

Reframing matrix is a simple technique that helps to look at businessproblems from a number of different viewpoints. It expands the range ofcreative solutions that you can generate. The approach relies on the fact thatdifferent people with different experience approach problems in differentways.

14. State the function of mind mapping tool.

This tool is similar to concept fan except looking one step back frommain topic. A mind map consists of a central word or concept with 5 to 10main ideas that relate to that word, similar to creating a spider-web.

15. Mention the use of DO IT process for creativity.

DO IT is a process for creativity. DO IT bundles aspects of creativethinking together, introduce formal methods of problem definition andevaluation. These help to get the best out of the creativity techniques. DOIT is an acronym that stands for:

i. D- Define problem

ii. O- Open mind and apply creative techniques

iii. I- identify best solution

iv. T- Transform

16. What are the steps involved in simplex tool?

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i. Problem finding

ii. Fact finding

iii. Problem definition

iv. Idea finding

v. Selection and evaluation

vi. Planning

vii. Sell data

viii. Action

17. Distinguish between creativity and innovation.

Creativity Innovation

1. Creativity is the ability tovisualize, generate andimplement new ideas.

The effort of an individual or anorganization to use new ideas todevelop new products or new usesfor existing products or services isknown as innovation.

2. Creativity is essential to makedecisions or planning.

Innovation is essential to makenew products and to satisfy theircustomers.

18.Define brainstorming.

Brainstorming is a technique of developing many creative solutions toa problem. It works by focusing on a problem, and then coming up withmany radical solutions to it. The essence of brainstorming is a creativeconference, ideally of 8 to 12 people meeting for less than an hour todevelop a long list of 50 or more ideas. Suggestions are listed withoutcriticism on a blackboard or newsprint as they are offered; one visible idealeads to others. At the end of this session, participants are asked how theideas could be combined or improved.

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19. Differentiate innovation and invention.

Innovation means the use of creative ideas.

Invention means really finding new things which are not alreadyavailable.

20. How can harmonizing objectives be achieved?

i. Mutual trust

ii. Cooperation and understanding

iii. Worker’s participation in management

iv. Balancing the objectives of the organisation with those of individuals

21.Define ‘multiplicity of roles’.

Individuals are not only the productive factor in management’s plans.They are members of a social system of many organisations. This refers tothe ‘multiplicity of roles’ played by individuals in organisations.

22. Define motivation.

In the opinion of Stephen P. Robbins,

‘Motivation is the willingness to exert high levels of effort towardorganizational goals conditioned by the effort ability to satisfy someindividual need’

23.Distinguish between motivation and satisfaction.

Motivation Satisfaction

1. Motivation is the process ofinspiring and actuating theworkers to accomplish theobjectives of the organization.

Satisfaction is the end result ofmotivation. It is the happiness thatcomes after motivation.

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2. Motivation leads to higher levelsof productivity.

Satisfaction makes changes in thebehavior of employees. Afterattaining the goals, everyone getshappiness.

24. Mention the importance of motivation.

i. Proper utilization of human resources possible since it inspiresemployees to make best possible use of different factors ofproduction.

ii. Proper motivation improves the efficiency of operation.

iii. Motivation creates a willingness on the part of workers to do the workin a better way.

25. State the different types of motivation.

i. Positive motivation

ii. Negative motivation

iii. Extrinsic motivation

iv. Intrinsic motivation

26.What is power motive?

Intrinsic motivation is called as power motive. Intrinsic motivation isavailable at the time of performance of work. These motivations provide asatisfaction during the performance of the work itself. Some of the intrinsicmotivations are praise, recognition, responsibility, esteem, power, status,participation, etc.

27.Define morale.

M.S. Viteles defines morale as an attitude of satisfaction, with a desireto continue in and willingness to strive for the goals of a particular group ororganisation.

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28. What are the factors determining the morale of a work group?

i. A feeling of togetherness

ii. Need for a clear goal or objective to be achieved

iii. Expectation of success towards the attainment of the goal

iv. Feeling of each member within the group that he has a meaningfultask to perform for achieving the goals

v. Supportive and simulative leadership

29. Mention the various factors involved in using motivational techniques.

i. Money

ii. Participation

iii. Quality of working life

30. State the different theories of motivation.

i. McGregor’s Theory X and Theory Y

ii. Theory Z

iii. Maslow’s hierarchy of needs theory

iv. Herzberg’s motivation- hygiene theory

v. McClelland’s needs theory

vi. Expectancy theory

vii. Equity theory

viii. Skinner’s behaviouralist- reinforcement theory

ix. Alderfer’s ERG theory

x. Carrot and Stick approach of motivation

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31. Mention the two categories of motives.

The two categories of motives are:

i. Primary needs: Physiological requirements such as food, sleep, water andshelter

ii. Secondary needs: Self esteem, status, affection, accomplishment andaffiliation with others

32. Distinguish motivators and hygiene factors.

Hygiene factors:

According to Herzberg, maintenance or hygiene factors are necessary tomaintain a reasonable level of satisfaction among employees. These factors do notprovide satisfaction to the employees but their absence will dissatisfy them.Therefore, these factors are called dissatisfiers. Herzberg identified somemaintenance or hygiene factors as

i. Company policy and administration

ii. Technical supervision

iii. Interpersonal relations with subordinates

iv. Salary

v. Job security

vi. Personal life

vii. Working conditions

viii. Status

ix. Interpersonal relations with superiors

x. Interpersonal relations with peers

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Motivators:

Motivational factors create satisfaction to the workers at the time of presencebut their absence does not cause dissatisfaction. Herzberg identified somemotivational factors as

i. Achievement

ii. Recognition

iii. Advancement

iv. Opportunity for growth

v. Responsibility

vi. Work itself

Since these factors increase level of satisfaction in the employees, these can beused in motivating them for higher output.

33. Give the meaning of social needs.

Social needs are for love, friendship, exchange of feelings and grievances,recognition, conversation, belongingness, companionship, etc. Social needs tendto be stronger for some people than for others and stronger in certain situations.

34. State the Maslow’s hierarchy of needs.

Maslow viewed human needs in the form of hierarchy. The hierarchies ofneeds are

i. Physiological needs

ii. Safety needs

iii. Social needs

iv. Esteem needs

v. Self actualization needs

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35. Describe the relationship of hygiene factors, motivation factors and jobenrichment.

The factors which give rise to satisfaction are called motivation factors.They include recognition, achievement, personal growth and challenging work.

The factors which give rise to dissatisfaction are called hygiene factors.They include salary, working conditions, and company policy and job security.

The motivation factors are related to job content. So job enrichment is usedto improve motivation factors. The hygiene factors are more related toenvironment rather than job content.

36. List the three types of basic motivating needs proposed by McClelland.

i. Need for power

ii. Need for affiliation

iii. Need for achievement

37. What are the two assumptions made on equity theory?

i. Individuals make contributions for which they expect certain rewards.Inputs include such things as the individuals past training andexperience, special knowledge, personal characteristics, etc.Outcomes or rewards include pay, recognition, status, prestige, etc.

ii. Individual compares his input-outcome ratio with the input-outcomeratio of other members of his level or status in the organisation. If theindividual feels that his ratio is equal to that of others, there is equity.Therefore, he feels happy and gets motivated. If the ratio issignificantly less than those of others, the individual feels underpaidand frustrated. If the ratio is significantly more, the individual feelsoverpaid and guilty. He is likely to reduce his input of effort to createequity. Equity relationship can be expressed by

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Outcomes by a person = Outcomes by another person

Inputs by a person Inputs by another person

38. State any two merits of equity theory.

i. This theory makes managers realize that equity motive tends to be one of themost important motives of the people in the organization.

ii. Feelings or perceptions in equity are important factor in work setting.Management should take necessary steps to develop the perceptual skill ofthe people.

39. Define theory-X.

McGregor’s theory –X is concerned with sets of assumptions about humanbehavior. Theory- X assumptions are:

i. Employees are inherently lazy and will avoid work if they can.

ii. They lack ambition and dislike responsibility.

iii. They must be controlled, directed and threatened with punishment toachieve organizational objectives.

iv. They are by nature resistant to change and they are not very bright.

40. What are the two important assumptions made on Y theory?

i. Work is as natural as play or rest. The average human being has thetendency to work.

ii. External control and threat of punishment are not only means ofreaching the objectives of organisation. Man will have self-directionand control. By this, organizational objectives can be achieved.

41. Compare Theory X and Theory Y.

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Theory X Theory Y

1. Theory X is pessimistic and rigid. Theory Y is optimistic, dynamic andflexible.

2. People will never like to do workand they lack ambition and dislikeresponsibility.

People like working. Work is asnatural as play or rest for them. Theyaccept responsibility under properconditions.

3. They must be controlled, threatened,directed with punishment to achieveorganizational objectives.

They do not have to be controlled ordirected so long as they arecommitted to the organizationalobjectives.

4. They are by nature resistant tochange and not very bright.

People are able to exerciseimagination and creativity in thesolution of organizational problems.

42. Mention any two leadership qualities.

(Or)

What are the four basic ingredients of leadership skill?

i. Physical traits: Activity, energy, appearance and height.

ii. Intelligence and ability traits: Judgment, knowledge, intelligence andability.

iii. Personality traits: Self-confidence, self-control, enthusiasm, self-monitoring, creativity, innovative, genuineness and originality.

iv. Work-related characteristics: Achievement drive, task orientation, drivesfor responsibilities and initiative.

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v. Social characteristics: Supervisory ability, cooperativeness, tactics,diplomacy, popularity, prestige.

43. What are the basic ingredients of leadership skill?

i. The ability to use power.

ii. The ability to understand people having different motivation atdifferent times and in different situations.

iii. The ability to inspire the followers to do work more.

iv. The ability to develop an organizational climate conducive toresponding and work.

44. Who is a leader?

Leader is one who guides or influences the behavior of others. People whoare guided or influenced are called the followers.

45. Explain leading.

Leading is the process of instructing, counseling, guiding and motivating thehuman factor to achieve organizational goals effectively.

46. Define leadership.

Leadership is the process where a person exerts influence over others andinspires, motivates and directs their activities to achieve goals. Leadership is thedynamic process whereby one individual in a group is not only responsible for thegroup’s result but actively seeks the collaboration and commitment of all the groupmembers in achieving group goals.

47. Mention the various types of leadership styles on the basis of authority.

i. Autocratic leadership

ii. Democratic or participative leadership

iii. Laissez-faire leadership

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iv. Benevolent autocratic leadership

v. Supportive leadership

48. Differentiate between autocratic and democratic leadership.

Autocratic leadership Democratic leadership

1. Autocratic leader is called ‘TheoryX’ leader.

Democratic leader is called ‘TheoryY’ leader.

2. Decision making is centralized andno quick decisions are possible.

Decentralized decision making andslow process of decision making.

3. Punishment and threats are used. Rewards and involvement are used.

4. It is more efficient under short runand emergency conditions.

It is efficient in the long run.

49. Define autocratic leadership.

Autocratic leadership is authoritative, task oriented and restrictive.Autocratic leader accomplishes tasks by threatening or punishing his subordinates.He maintains a highly critical and negative relation with his subordinates.

50. Why is leadership essential in an industrial organization?

i. To secure cooperation among employees.

ii. Creating confidence in the minds of employees.

iii. To provide a good working climate.

iv. To motivate the followers to do work more.

51. List out the theories of leadership.

i. Trait theory

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ii. Behavioral theories

iii. Situational or contingency theory

52. What do you mean by legitimate power?

Legitimate power is the influence based on the manager’s authority resultingby their management position in the organization’s hierarchy. For example,parents, teachers, police, etc. have legitimate power only when their authority isaccepted in the positions they held.

53. State the characteristics of a laissez- faire leader.

Laissez- faire leader gives complete freedom to the group and he does notprovide any leadership. He assumes the role of just another member of the group.He does not establish any policy or procedure to do the job. Each member of thegroup is left alone. Laissez- faire leadership can function effectively if theemployees are sincere and devoted to work.

54. Distinguish between a leader and a manager.

Leader Manager

1. Leader leads people. Manager manages things.

2. Leader can use his/her informalinfluence.

Managers hold formal positions.

3. Leaders create a vision and inspireothers to achieve this vision.

Managers achieve results by directingthe activities of others.

4. Leader possesses non-sanctionedinfluencing ability.

Manager enjoys formal designatedauthority.

5. Leader inspires enthusiasm. Manager engenders fear.

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55. Mention the importance of leadership.

i. Motivating employees

ii. Leader develops team work

iii. Better utilization of manpower

iv. Creating confidence to followers

v. Directing group activities

vi. Building morale

vii. Maintaining discipline

56. State something about weakness of trait theory.

i. The trait theory did not classify the most important traits and least importanttraits.

ii. The trait theory does not mention the particular traits or characteristics thatseparate leaders from non-leaders.

iii. There is no direct relationship between personal traits and success of leader.

iv. The same traits cannot be applied to every situation.

v. Trait theory does not distinguish between traits which are required to acquireleadership and traits which are needed to maintain leadership.

vi. Trait theory does not analyze the behavioral patterns.

57. List out few leadership traits.

i. Leadership based on use of authority

ii. Managerial grid

iii. Leadership as a continuum

iv. Michigan studies

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v. Ohio state university studies

vi. Harvard university studies

58. State House’s path- goal approach.

Leaders are effective because of the influence on followers’ motivation,ability to perform and their satisfaction.

59. What are the advantages of democratic leadership?

i. Better decisions can be made because ideas and suggestions of employeesare considered in decision making.

ii. Creativity, knowledge and experience of subordinates can be used indecision making.

iii. People get job satisfaction and morale.

iv. Two way communications improve the understanding between superior andsubordinates.

v. Individual abilities can be developed through participation.

vi. Subordinates feel more committed to organizational objectives. There is lessresistance to managerial actions.

60. State a few functions of leaders.

i. Leader develops team work.

ii. Leader is an appropriate counselor.

iii. Leader is a representative of subordinates.

iv. Leader uses power properly.

v. Leader uses time well.

61. List out the different types of power.

i. Legitimate power

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ii. Reward power

iii. Coercive power

iv. Referent power

v. Expert power

62. What is noise in a communication system?

Anything which affects the communication process is known as noise.It may be in the sender, the transmission or the receiver stage. If anyone isaffected, the proper communication will not reach the receiver. To ensureeffective communication, we have to provide noiseless environment. Inaddition to this, the effectiveness of communication must be checked by thesender by feedback. It is done for checking the information whether it iscorrectly reached or not. Examples of noise are environment, faultyencoding, interruptions in the channel, inattention, faulty decoding andincorrect gestures or postures.

63. Define communication.

Communication is the process of transmitting ideas, facts, opinionsand feelings to others. Communication is a mutual interchange process thatoccurs between two or more persons.

64. Define effective communication.

The communication after removing the barriers in communicationprocess and channels is known as effective communication. When themessage sent by the sender to the receiver is understood by the receiver inthe same sense, it is also called effective communication.

65. Bring out the benefits and drawbacks of electronic media in communication.

Benefits:

i. Faster than conventional methods of communication.

ii. Communication over long distances is possible.

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iii. Productivity will be more.

iv. In telephonic conversation, manager can clarify doubts and he can come to aconclusion.

v. Quality of transmission is high.

Drawbacks:

i. Initial equipment cost is very high.

ii. Equipment fault directly affects communication.

iii. Delay may occur due to heavy traffic in the network.

iv. Quality of information is less compared to other electronic media.

66. Mention the different types or forms of communication.

I. Based on communication flow:

i. Downward communication

ii. Upward communication

iii. Horizontal communication

iv. Diagonal communication

II. Based on channel:

i. Formal communication

ii. Grapevine or Informal communication

III. Based on expression:

i. Written communication

ii. Oral communication

iii. Non verbal communication

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67. List a few suggestions for managers to overcome barriers to communication.

i. Regulate the flow of information

ii. Encourage feedback

iii. Simplify the language

iv. Listen actively

v. Constraints negative emotions

vi. Use nonverbal cues

vii. Use the grapevine

68. Mention the elements of communication process.

i. Sender/source

ii. Encoder

iii. Transmission channel

iv. Receiver

v. Decoder

69. State the characteristics of oral communication.

i. Oral communication involves conversation.

ii. It can be made through telephones, intercoms or dictating machines.

iii. Oral communication can be informal.

iv. It can be planned or accidental.

70. Define non-verbal communication.

Non-verbal communication is neither in an oral format nor in a writtenformat and it does not involve words. Smile, gesture, body language, facial

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expressions, physical appearance and a fist can be considered as a non-verbalcommunication.

71. List out the important electronic media which is useful for communication.

i. Telecommunication

ii. Telephone answering machines (voice mail)

iii. Facsimile (FAX) Machines

iv. Teleconferencing

v. Closed Circuit Television Systems

vi. Internet

vii. Electronic Mail systems

viii. Electronic typewriters

ix. Electronic Bulletin Boards

x. Computers (Main frame, mini and personal)

xi. Cellular telephones

72. List any four methods of non-verbal communication.

Facial expressions, eye contact, dress, posture, gestures, handshake,proxemics, chronometry, etc. are some of the methods of non-verbalcommunication.

73. State the need for communication.

i. Basis for planning

ii. Basis for decision making

iii. To perform managerial functions effectively

iv. To facilitate coordination among workers

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v. To develop understanding between superiors and subordinates

vi. To motivate workers

74. Note down the various communicating networks.

i. Simple chain network

ii. Wheel or star network

iii. ‘Y’ network

iv. Circular network

75. Differentiate single and multiple channel networks.

Single channel communication Multiple channel communication

1. The communication is allowed ononly one path called as lineauthority. It is simply referred asthrough proper channel.

The communication is allowed inmore than one path.

2. Communication flow is slow. Communication flow is faster.

3. Easy to maintain, orderly in nature. Potential problems may occur.

4. Miscommunication is reduced. Miscommunication is high.

76. State the advantages of oral communication.

i. It enables the communicator to see the immediate response of the receiver.

ii. This provides immediate feedback.

iii. People can ask questions and clarify points.

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iv. A meeting with superior may give a feeling of importance to thesubordinates.

v. It develops a friendly environment, cooperation and team spirit.

vi. It is more suitable under emergency conditions.

77. What are the barriers involved in effective communication?

i. Lack of planning

ii. Semantic distortion

iii. Selective perception or filtering

iv. Fear and emotions

v. Distrust and threat

vi. Timing of communication

vii. Overloading of communication

viii. Loss by transmission and poor retention

ix. Status symbols

x. Poor listening and premature evaluation

xi. Poorly expressed messages

xii. Unclarified assumptions

xiii. Faulty organisation

xiv. Barriers in the international environment

78. State the important rules for effective communication.

i. Clarify your ideas before communicating

ii. Examine the true purpose of communication

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iii. Consider the physical and human setting in which communication will takeplace

iv. Consult with others, when appropriate, in planning communication

v. Be mindful of the nonverbal messages you send

vi. Take the opportunity to convey something to the receiver

vii. Follow up the communication

viii. Communicate for tomorrow as well as today

ix. Be sure actions support communication

x. Seek not only to be understood but to understand

79. Why is management by wandering around considered effectivecommunication?

A good management always wants to minimize the conflict with effectivecommunication. For example, negative communication, blaming communication,superior communication, dishonest communication and selective communicationcan be easily avoided by wandering around considered effective communication.

80. List out the different types of grapevine.

i. Single chain grapevine

ii. Gossip grapevine

iii. Probability grapevine

iv. Cluster grapevine

81. Define organizational culture.

Organizational culture can be defined as a pervasive underlying set ofbeliefs, assumptions, values, shared feelings and perceptions which influence theactions and decisions taken by the organizations. The same distinguishes oneorganization from another.

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82. Mention the different types of cultures.

i. Dominant culture and subculture

ii. Strong and weak cultures

83. What do you mean by dominant culture?

A dominant culture is marked by a ser of core values that are shared by amajority of the organizational members. It gives a macro view of an organization’spersonality. It guides the day-to-day behavior of employees.

84. Write a short note on strong culture.

A strong culture is characterized by the organization’s core values beingintensely held and widely shared. The more intensely the core values are shared,the stronger the culture is. The degree of sharedness depends on two factors:orientation and rewards. In order for people to share the same cultural values,orientation programs are organized to tell the new comers about the organization’sphilosophy and method of operation. Reward may be in the form of promotingemployees who hold core values which help everyone understand core values.

85. State any two functions of culture.

i. Culture provides shared patterns of cognitive perceptions or understandingabout the values or beliefs held by the organisation.

ii. It provides a boundary that creates distinctions between one organisation andanother. It helps to identify members and non-members of an organisation.

86. What are the sources of culture?

i. Stories

ii. Rituals

iii. Symbols

iv. Languages

87. Define cultural diversity.

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A variety or multiformity in race, ethnicity, language, tradition, culture,morality and religion existing within a community, organization, or population isknown as cultural diversity. Diversity is the unification of cultures, providingreasons why we are more alike than dissimilar. The coexistence of differentethnic, gender, racial, and socioeconomic groups within one social unit is alsoknown as cultural diversity.

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UNIT V

CONTROLLING

1. Define controlling.

Controlling is the process of checking, regulating, verifying or makingadjustments to keep things on track. Controlling is the process by whichmanagers take preventive or corrective action to ensure that theorganization’s mission and objectives are accomplished effectively andefficiently.

2. State any five types of critical control point standards.

i. Physical standards

ii. Cost standards

iii. Capital standards

iv. Revenue standards

v. Program standards

vi. Intangible standards

vii. Goals as standards

viii. Strategic point control

3. What are the three types of control?

i. Feed forward control

ii. Concurrent control

iii. Feedback control

4. Write a short note on feed forward control.

Feed forward control identifies and prevents problems before theyoccur. It is the control before an activity commences. It prevents

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anticipated problems. Feed-forward control ensures that input quality ishigh enough to prevent problems when the organisation performs its tasks.

5. State the principle of preventive control.

The principle of preventive control can be stated as follows:

‘The higher the quality of managers and their subordinates, the lesser will bethe need for direct controls.’

6. What do you mean by concurrent control?

Concurrent control gives immediate feedback on how inputs areconverted into outputs. Concurrent control allows managers to correctproblems as they occur.

7. What is feedback control?

In feedback control, corrective action is taken after the damageoccurs. Feedback control is gathering information about a finished activity,assessing that information and taking corrective actions to improve similarprocess in the future. It is the process of adjusting future course of action onthe basis of information about past performance.

8. What are the disadvantages of control?

i. Control is expensive and time-consuming process.

ii. Human behavior and employee morale also cannot be measured.

9. Distinguish between feed forward control and feedback control.

Feed forward control Feedback control

1. Feed forward control occursbefore a problem arises.

Feedback control occurs after aproblem is over.

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2. Feed forward systems monitorinputs into a process and inputquality is high enough to preventproblems.

Feedback control systemmeasure outputs and takecorrective measures to improvesimilar processes in the future.

3. The example for feed forwardcontrol is a cash budget made byfinancial manager. Cash budgetis prepared for the next year’scash flow.

The example for feedbackcontrol is inspection and testingof products. After the testresults, corrective actions can betaken.

4. It avoids wastages and improvesproduct quality.

It results in more wastage.

10. What do you mean by critical control points?

Critical control points are the standards against which the actualperformance is to be measured. Effective control requires attention oncritical control points to evaluate the actual performance.

11. Define benchmarking.

Benchmarking is the process of identifying, learning and adoptingoutstanding practices and processes from any organization anywhere in theworld to help an organization improve its performance.

12. List out the different methods of benchmarking.

i. Internal benchmarking

ii. Competitive benchmarking

iii. Functional benchmarking

iv. Generic benchmarking

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13. Define budget.

Budget is a quantitative statement of the plan for a specified period oftime in the future, most typically a period of one year. Budget is aconsolidated statement prepared prior to a definite period of time for thepurpose of obtaining a given objective.

14. What is budgetary control?

Budgetary control is the establishment of budget relating theresponsibilities of executives to the continuous comparison of actual withbudgeted results either to secure by individual action of the objective of thatpolicy or to provide a basis for revision.

15. Write some objectives of budgetary control.

i. It aims at the maximization of profits.

ii. To plan and control the income and expenditure of the organization.

iii. To provide an adequate working capital.

16. State any two benefits of budgetary control.

i. Budgets help management to look at the success or failure of pastbudgets, isolate errors and analyze their causes.

ii. Budgets serve as a means of co-ordination. Budgets integrate thevarious activities of the organization.

iii. Budgets help to minimize waste and unproductive use of financial andother resources. They help to keep expenses under control and toincrease profit.

iv. Budgets motivate employees because employees will know theirresponsibility and standards by which their performance can beevaluated.

17. Write the limitations of budgeting.

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i. Over-budgeting results in rigidity and confusion.

ii. Budgets are based on the forecasts or historical data. Inaccuracy inthe forecast will affect the budget.

iii. A budget can not reveal various inefficiencies of a manager.

iv. Establishing budgetary control in an organisation is very expensiveand it requires money, time and efforts.

18. State the two methods of budgeting.

i. Zero-base budgeting

ii. Performance budgeting

19. What do you understand by zero-base budgeting?

Zero-base budgeting requires the management to take a fresh look atall programmes and activities each year rather than preparing budgets on thebasis of last year’s budget. The zero-base budgeting is constructed from azero base. In zero-base budgeting, last year’s budget allocations are notconsidered as a basis for current year’s budget. In zero-base budgeting, acomprehensive analysis is made every time when a new budget is prepared,based on the changed importance of different variables in the situation. Inzero-base budgeting, the key element is future-objective orientation of pastobjectives.

20. Define performance budgeting.

Performance budget is input or output budget or costs/results budget.It is mainly used in government. Performance budgeting controls andcoordinates the use of resources for a specified period.

21. What are the classifications of budgets?

i. Functional budgets

ii. Transaction types

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iii. Activity types

iv. Time interval basis

22. Mention the various types of functional budgets.

i. Sales budget

ii. Production budget

iii. Material budget

iv. Labor budget

v. Manufacturing overheads budget

vi. Administrative overhead budget

vii. Distribution overhead budget

viii. Cash budget

23. How do you classify budgets on the basis of time?

i. Continuous budget

ii. Periodic budget

24. State the types of transaction budgets.

i. Operating budget

ii. Capital budget

25. Give examples for activity level budgets.

i. Flexible budget

ii. Fixed budget

iii. Master budget

26. What do you mean by master budget?

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All the functional budgets are collected into one budget known asmaster budget. Master budget is a statement of budgeted profit and losstogether with a projected balance sheet. The master budget incorporates allthe functional and operational budgets such as sales budget, productionbudget, material budget and overheads budget, etc.

27. What do you understand by ‘flexi-budgets’?

Flexi-budget is otherwise known as variable budget. Flexible budgetreflects the changes in expenditure as a result of changes in volume ofproduction.

28. Write some advantages of flexible budgets.

i. Flexible budget is a useful tool for controlling costs.

ii. It is more realistic and practical.

iii. It traces the impact of various levels of activity on profits.

29. What are the steps for the effective implementation of budgetary control?

i. Support of top management

ii. Flexibility

iii. Budget education

iv. Participation

30. What are the factors which will be considered for the production budget?

i. Production stability

ii. Plant capacity

iii. Time

iv. Sales requirements

31. What is direct labor budget?

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Labor budget provides details about labor requirements in quantitywith estimated costs. Labor budget is the forecast of direct and indirectlabor requirements to meet the demands of the company.

32. What are the data required for preparation of sales budget?

i. Past sales data

ii. Plant capacity

iii. Financial resources available

iv. Raw material available

33. What is cash budget?

Cash budgets are prepared after the completion of all the functionalbudgets. Cash budgets are the total sum of all the functional budgets inmonetary terms. This budget gives an estimate of the anticipated receiptsand payments of cash during the budget period.

34. What is fixed budget?

A fixed budget is a budget designed to remain unchanged. Fixedbudget does not change with changes in activities. Fixed budgets can beprepared for a small period of time. Fixed budget is a budget designed toremain unchanged irrespective of the level of activity actually attained.

35. What are the steps involved in Zero-based budgeting (ZBB) process?

i. Decision package

ii. Ranking

iii. Allocation of resources

36. Explain the significance of ZBB.

i. ZBB is also an educational process that can promote the development ofthe management team.

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ii. Managers tend to evaluate in their operations, efficiency and costeffectiveness not only during the budget cycle but also throughout theoperating cycle.

37. How do use personal observation of budgetary control?

Managers observed their subordinated characters, attitudes and skills.Mistakes committed by the workers can be corrected by the managerdirectly.

38. What is critical point control?

The points selected for critical process is called critical points. Theprinciple of critical point control is one of the most important controlprinciples states. The effective control requires an attention to those factorscritical to evaluate the performance against plans.

39. What is break-even analysis?

Break-even analysis is a method of determining the relationshipbetween total revenues and total costs at various levels of production so as toestablish a breakeven point.

40. State some of the advantages of break-even analysis.

i. Break-even analysis provides the relationship between cost, output andprofit relationship.

ii. It is helpful in forecasting profits.

iii. It is helpful in selecting the best product mix.

41. What is the inter-relationship between planning and control?

The management process begins with planning and ends with control.The planning determines standards for performance. A control helps inachieving them.

42. What is Management by Exception (MBE)?

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Management by Exception (MBE) states that only significantdeviations from established standards should be brought to the notice of themanagement.

43. Write some advantages of management by exception?

i. This is used to identify important problems.

ii. It reduces the unnecessary burden of the top management.

iii. It provides a better utilization of managerial talent and knowledge.

44. Who are the users of financial statements?

i. Shareholders

ii. Creditors

iii. Employees

iv. Trade unions

v. Managers

vi. Economists

vii. Members of parliament

viii. SEBI

ix. Government departments

x. Tax authorities

xi. Financial institutions

xii. Commercial banks

45.What are the limitations of financial statements?

i. The data given in these statements are only approximate.

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ii. Current price changes are not considered for valuing the assets of thebusiness.

iii. Non-monetary factors are ignored while preparing the financialstatements.

iv. Information is incomplete.

v. Qualitative information is ignored.

46.What do you mean by balance sheet?

A balance sheet is the statement which sets out the financialconditions of a business company. Balance sheet contains profit and lossamount which will give vital information about the financial position andoperation of the company. A balance sheet is also described as a statementshowing the sources and application of capital. It is a statement, not anaccount.

47.Write the format of a balance sheet.

X Ltd. Balance sheet as on 31st Dec. 1998

Capital andliabilities

Amount (Rs.) Assets andproperty

Amount (Rs.)

Capital -------------- Fixed Assets --------------

Reserves andsurplus

-------------- Investments --------------

Long termliabilities

-------------- Current Assets --------------

Current -------------- Miscellaneous --------------

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liabilities andprovisions

asset

--------------

--------------

--------------

--------------

48. Give the importance of a balance sheet.

i. The balance sheet is considered to be a more important document thanthe profit and loss account.

ii. The balance sheet gives a clear picture of the financial position of thebusiness.

iii. It reflects the result of all recorded accounting transactions since theenterprises is promoted.

iv. It is a cumulative record of the progress of the business.

49. Define asset.

Asset is the cost which represents the expected future economicbenefits to the business.

50. What are fixed assets?

Fixed assets are those assets used in the business permanently.Examples of fixed assets are buildings, machinery.

51. What do you mean by current assets?

Current assets are assets which are reasonably expected to be realizedin cash. Examples of current assets are cash in bank, D.D.

52.Define liabilities.

Liabilities represent obligations which require a settlement in future.

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53.What are fixed liabilities?

The liabilities that are payable only on the termination of business areknown as fixed liabilities. An example of fixed liabilities is paid up capital.

54. What do you understand from current liabilities?

The liabilities that are payable within a year or due date are known ascurrent liabilities. Examples of current liabilities are bills payable, shortterm bank overdraft.

55. What do you mean by cash flow statement?

A cash flow statement shows the impact of transactions on cashposition of the firm and includes all transactions on cash position of thecompany. The cash flow statement analyses the source and uses of cash inthe company.

56. Write a short note on income statement.

The income statement is also known as profit and loss account. Itperforms a report recording, such as change in income, expenses, profits andlosses as a result of business operation during the year. It summarizes therevenues and expenses of the period.

57. State some of the key words of cost control.

i. Assets

ii. Fixed assets

iii. Current assets

iv. Liabilities

v. Fixed liabilities

vi. Current liabilities

58.Give any two advantages of cash flow statement.

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i. Cash flow statement is useful in the evaluation of cash position of thecompany.

ii. It helps the management to plan the repayment of loan, and long termplanning.

59. Define production.

Production is defined as the step-by-step conversion of raw material intofinished products through chemical or mechanical processes to create the finishedproduct. For example, copper exists in nature as an ore. It is converted into copperplates by chemical process.

60. List out the objectives of purchasing department.

i. Better purchasers can save a firm’s financial resources.

ii. By scientific purchasing, cost would be reduced and in turn it will alsoreduce the inventory asset base.

iii. The effectiveness of the purchasing function will have an impact in otheroperating results.

iv. Purchasing uses majority of a firm’s financial resources to procure materialsfor manufacturing processes.

61. Mention the types of special purchase systems.

i. Forward buying

ii. Tender buying

iii. Blanket order

iv. Zero stock

v. Rate contract

62. List out the various methods of purchasing.

i. Purchasing according to the requirement

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ii. Price forecasting method

iii. Purchasing for some definite future period

iv. Market purchasing

v. Speculative purchasing

vi. Contract purchasing

vii. Scheduled purchasing

viii. Public buying

ix. Tender purchasing

63. Define maintenance control.

Maintenance control is the process of keeping the machine andequipment in good working condition, so that the efficiency of the machineis retained and its life is increased. Plant maintenance control is acombination of actions carried out by an organization to replace, repairservice the machineries, components or their groups in a manufacturingplant, so that it will continue to operate satisfactorily.

64.State the basic functions of maintenance.

i. Inspection

ii. Repair

iii. Overhaul

iv. Lubrication

v. Salvage

65. Mention the two types of maintenance practices.

i. Breakdown maintenance

ii. Preventive maintenance

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66. What do you mean by breakdown maintenance?

In the case of breakdown maintenance, the equipment is generallyattended to only when it breaks down. Only when it becomes out of order, itis repaired and set right. Next maintenance is down when it breaks downagain.

67.State any two disadvantages of breakdown maintenance.

i. Planning of maintenance work is not possible.

ii. Distribution of work load is difficult.

iii. Result is imbalanced utilization of maintenance staff.

68.Define preventive maintenance.

Preventive maintenance is a systematic maintenance procedure wherein the condition of the plant is constantly watched through a systematicinspection and preventive action is taken to reduce the incidence ofbreakdown.

69.Compare preventive and breakdown maintenance.

Breakdown maintenance Preventive maintenance

1. Maintenance is done afterbreakdown.

It is done to prevent breakdown.

2. The time of breakdown isunanticipated. So themaintenance cannot be planned.

Maintenance work is planned andscheduled in a well advancedmanner.

3. Cost due to downtime is more. No downtime.

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4. Production loss takes place. No production loss.

5. It affects the quality of the goodsproduced by that equipment andmachineries.

Preventive maintenance improvesthe quality of the goods.

6. The breakdown maintenancecannot be planned and scheduledas systematically and effectivelyas preventive maintenance.

Preventive maintenance is plannedand scheduled systematically andeffectively.

70.Write any four advantages of preventive maintenance.

i. Reduced breakdown and down time.

ii. Lesser overtime to maintenance people.

iii. Greater safety to workers.

iv. Low maintenance and repair cost.

71.Define quality control.

Quality control is the procedure that is followed to achieve andmaintain the required quality. Quality control aims at prevention ofproducing defective products.

72.List out the dimensions of quality.

i. Performance

ii. Features

iii. Conformance

iv. Reliability

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v. Durability

vi. Service

vii. Response

viii. Reputations

73.What do you understand by statistical quality control (SQC)?

Statistical quality control (SQC) means controlling the qualitycharacteristics of a product or process using statistical method.

74.Mention the types of control charts used in statistical quality control.

i. Control charts for variables

ii. Control charts for attributes

75.Write a short note on control charts for attributes.

Control charts for attributes are used when the parameter undercontrol is the proportion or fraction of defectives. Control charts for thenumber of defects per unit are used when a single defect may not be of greatsignificance but a large number of defects would add up to a defectiveproduct.

76.List at least four advantages of statistical quality control.

i. Improvement in product quality

ii. Reduction of scrap and rework

iii. Product quality is uniformly maintained

iv. SQC satisfies production department and the customer

77. Define the term productivity.

Productivity is defined as the ratio of output produced to the inputresources utilised in production. Productivity is an attitude of mind;

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certainty of being able to do better today than yesterday; continual effort toapply new techniques and methods.

Productivity=Output produced

Input resources

78.Define operations management.

Operations management is defined as the decision making thatinvolves decision making, planning and management of many factors thataffect operations.

79. Write some of the requirements that must be fulfilled to ensure the JITmethod of work.

i. The quality of the parts should be very high; a defective part can holdup the assembly line.

ii. There must be smooth relationship between suppliers.

iii. Suppliers should be located near the company.

80. What are the uses of computers in handling the information?

i. Computers are used in processing financial information such asaccount statements, pay roll and capital budgeting.

ii. Forecasting information can be handled by computers.

iii. Design information can also be obtained with the help of computer.

81. What is MIS?

MIS is defined as an integrated, user-machine system to provideinformation to support operations, management and decision-makingfunctions in an organization.

82.Define JIT.

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JIT is defined as the philosophy that focuses attention on eliminatingwaste by purchasing or manufacturing just enough of the right items at theright time.

83. What are Quality circles?

Quality circles are small groups of people doing similar work whotogether with their superiors voluntarily meet for an hour a week to studyand solve work related problems which affects them.

84. What do you mean by CIM?

The integration of computer aided design, computer aidedmanufacturing and computer aided process planning is known as ComputerIntegrated Manufacturing (CIM).

85. What is internal audit?

Internal audit is defined as the systematic and independentexamination to check whether these planned arrangements are implementedeffectively to achieve required objectives. Internal audit is done by internalauditors who are an employee of the organization. He examines theobjectives, policies, plans, procedures and performance of the management.

86.What are the traditional techniques of control?

i. Personal observation

ii. Break-even analysis

iii. Statistical reports

iv. Budgetary reports

87.Mention the modern techniques of control.

i. Management audit

ii. Return on Investment (ROI)

iii. PERT and CPM

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iv. MIS

v. Human Resource Accounting

88. What do you mean by PERT and CPM?

In both techniques, a project is decomposed into activities and then allactivities are integrated in a highly logical sequence to find the shortest timerequired to complete the entire project.

89. Write some uses of PERT and CPM.

i. It forces the right actions, right point and right time in theorganization.

ii. It is used to work out the cost estimates of a project.

iii. It is used to determine manpower, material and capital requirements.

90. State the differences between PERT and CPM.

Sl.No. CPM PERT

1. It is activity-oriented. PERT is event oriented.

2. CPM is planning device. PERT is control device.

3. It estimates only one time. It estimates three times.

4. It is a deterministic model. It is a probabilistic model.

91. List out the three types of time for PERT technique.

i. Optimistic time

ii. Pessimistic time

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iii. Most likely time

92. What is optimistic time?

Optimistic time is the shortest time in which everything goesexceptionally well.

93. What is Pessimistic time?

Pessimistic time is the time estimate, in which everything goes wrong.

94.What are the disadvantages of PERT and CPM?

i. It forces planning; it will not make a control automatic.

ii. It is expensive and time consuming process.

95. Define MIS.

MIS is more advanced technology for solving its basic requirements.It is a system of obtaining, abstracting, storing and analyzing data toproductions information for the use in planning, controlling and decision-making by the managers at the time. They can most effectively be used.

96. What are the characteristics of MIS?

i. MIS must be simple.

ii. MIS helps in decision making process.

iii. MIS should be clear.

iv. MIS should help in resolving the complicated problems effectively.

97.What are MIS resources?

i. Computer Hardware

ii. Software

iii. Data

iv. People

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98. What are the applications of MIS?

i. To find out new applications

ii. To provide sales forecasting

iii. To allocate resources

iv. To provide effective managerial activities

99.What is a decision support system?

A decision support system (DSS) is a specialized MIS designed tosupport a manager’s skill at all stages of decision making, identifying theproblem, choosing the relevant data and evaluating the alternative courses ofaction.

100. State some of the objectives of MIS.

i. To provide the information up to date.

ii. To take effective decision making.

iii. To provide the right information available in the right form at the righttime.

101. How to use of MIS for Middle Management?

MIS gives information about marketing level, problems with customers, andreduction in sales, and quality of product.

102. What are the factors affecting productivity?

i. Technology

ii. Human resources

iii. Government Policy

iv. Machinery and equipment

v. Skill of the worker

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103. Mention the factors to be considered for product design.

i. Marketing

ii. Government policy

iii. Production

iv. Technology

v. Product quality

104. State the benefits of increasing productivity for workers.

i. Job satisfaction and job security

ii. Promotion

iii. Higher salary

iv. Better working conditions

105. Define OR.

Operations Research is a systematic analysis of a problem through scientificmethods, carried out by appropriate specialists, working together as a team,finding an optimum and the most appropriate solution to meet the givenobjective under a set of constraints. It involves the use of scientific models orconceptual frameworks to represent real situations.

106. What are the steps involved in solving a problem through OR?

i. Formulation of the problem

ii. Construction of a mathematical model

iii. Deriving the solution from the model

iv. Test the model

v. Install a feedback mechanism

vi. Implementation of the final results

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107. Mention some of the disadvantages of OR.

i. It is not qualitative.

ii. It does not consider the human factors.

iii. It can be used only for specified problems.

108. Give some techniques used in OR.

i. Linear programming

ii. Assignment problem

iii. Transportation model

iv. Game theory

v. PERT/CPM method

vi. Decision tree approach

109. List out some of the applications of OR.

i. National planning and budgeting

ii. Defense service operations

iii. R & D engineering

iv. Agriculture and irrigation

v. Business management and competition

vi. Education and training

110. Give some of the applications of OR in defense.

i. Development of new technology

ii. Inventory control

iii. Optimization of cost and time in defense projects

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iv. Effective battle strategies and tactics

111. What are the applications of OR in the area of business management?

i. Selection of business and area of application

ii. Decision making under competition

iii. Optimum advertisement turtle

iv. Market survey and analysis

v. Market research techniques

vi. Capital investment and returns

112. How is OR used in the field of education and training?

i. Optimum mix of student/teachers ratio

ii. Optimum number and location of examination centers

iii. Demand and supply of textbooks and stationary

113. What are the important functions of operations research?

i. Optimization of resources

ii. Minimizing time

iii. Maximizing profit

iv. Selecting the best alternative

114. Mention the tools and techniques available for making operations moreproductive.

i. Linear programming

ii. Assignment problem

iii. Transportation model

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iv. Game theory

v. PERT/CPM method

vi. Decision tree approach

115. Define linear programming.

Linear programming is a versatile mathematical technique inOperations Research and a plan of action to solve a given problem involvinglinearly related variables in order to achieve the laid down objective in theform of minimizing or maximizing the objective function under givenconditions. It involves the development of linear equations to obtain the bestsolution for the allocation of the problem.

116. Give some uses of LPP.

i. Optimum product mix to maximize the profit.

ii. Optimum schedule of orders to maximize the total cost

iii. Optimum staffing in hotels, police stations and hospitals to maximizethe efficiency.

iv. Optimum facilities in telephone exchange to have minimumbreakdowns.

117. What is inventory control?

Inventory control refers to the control of raw materials and purchasedmaterials in store and regulation of investment in them. It is the function ofdirecting the movement of goods through the entire manufacturing cyclefrom the requisitioning of raw materials to meet the objectives of maximumcustomer service with minimum investment and efficient plant operation.

118. Write any four importance of inventory control.

i. Efficient utilization of resources.

ii. It provides and maintains the best consumer service.

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119. Define Economic Order Quantity.

Economic Order Quantity (EOQ) is the size of the order that yieldsoptimum total incremental inventory cost during the given period of timeunder the assumption that the demand rate is constant and known as

EOQ =√ 2C3R∕ C1

Where C3 = Order cost

C1 = Inventory carrying cost/unit /unit time

R= Demand for the product120. Write some advantages of JIT.

i. Inventory cost is reduced.

ii. It leads to job satisfaction of employees.

iii. It improves the efficiency of workers.

iv. Quality product.

121. What are the disadvantages of JIT?

i. Stoppage of any one machine will affect the work.

ii. The suppliers do not deliver the materials before the work starts. Itaffects the continuous work.

122. What is value engineering?

Value engineering or value analysis is a tool of management whichattempts the question of saving cost from the point of view of value or inother words the main aim is to study the relationship between the designfunction and cost of a part, keeping in view to reduce part and cost throughchange in design, modification in specification of the material used bychanging the source of supply and so on.

123. List out the objectives of value engineering.

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i. Modify and improve product design

ii. Reduce the product cost

iii. Increase the profit

iv. Simplify the product

124. Mention the uses of value engineering.

i. It prevents over-design.

ii. It increases the profits.

iii. Job satisfaction to the employees.

125. What are the advantages of quality circles?

i. Increases productivity

ii. Reduction of costs

iii. Reduction of wastes

iv. Increases the self confidence and job satisfaction

126. What do you mean by CAD?

CAD (Computer Aided Design) is a method by which computers areused for creation, modification, analysis and optimization of designs toincrease productivity.

127. State the steps in value engineering.

i. Blast

ii. Create

iii. Refine

128. What do you mean by Gantt chart?

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Gantt chart involves the representation of work progress over a periodof time in the form of bar chart.

129. Define financial controls.

Financial control helps an organization to control its financialresources.

130. How is ROI calculated?

i. Investment Turnover = Sales

Capital employed or investment

ii. Percentage profit on sales = Profit x 100

Sales

iii. Return on capital employed = Profit x 100

Capital employed

131. What are the advantages of ROI?

i. ROI measurement shows business efficiency.

ii. It is used in inter-departmental comparison.

Iii.ROI is used for top management for budget decisions.

132. What are the limitations of ROI?

i. Depreciation cannot be considered.

ii. It does not give a correct judgment of financial analysis.

133. What is direct control?

The process of identifying the cause of a negative deviation andmaking efforts to rectify the deviations is known as direct control. Thenegative deviation indicates that the performance is less than the standard.

134. State some of the factors which affect the direct control.

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i. Uncertainty

ii. Lack of knowledge

iii.Lack of communication

iv.Lack of coordination

135. What are the effective steps for direct control?

i. Performance can be measured.

ii. Effectively utilizes time.

iii. Errors can be discovered on time.

iv. Coordination

136. What is preventive control?

An efficient manager applies the skills in managerial philosophy to eliminatean undesirable activity which are the reasons for poor management. It is known aspreventive control.

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PART B (16 MARKS)

UNIT I

OVERVIEW OF MANAGEMENT

1. Describe the principles of organization briefly.

i. Principle of unity of objective

ii. Principle of specialization or division of work

iii. Principle of organizational efficiency

iv. Principle of co-ordination

v. Principle of span of control

vi. Principle of authority and responsibility

vii. Principle of unity of command

viii. Principle of definition

ix. Principle of correspondence

x. Principle of balance

xi. Principle of continuity

xii. Principle of chain of command

xiii. Principle of flexibility

xiv. Principle of simplicity

xv. Principle of specialization or division of wo

2. Explain the different theories of organizations in detail.

I. Classical organization theory

II. Neo-classical organization theory

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III. Modern organization theory: systems approach

3. What are the various types of business organizations? Write short notes oneach.

I. Private Sector Organizations

i. Sole proprietorship or Individual ownership

ii. Partnership organizations

iii. Joint stock companies

iv. Cooperative societies

II. Public Sector Organizations

i. Departmental organizations

ii. Public corporations

iii. Government companies

4. Discuss in detail about the debate as to whether management is a science or anart.

i. Introduction

ii. Management as Science

iii. Management as Art

iv. Management: Both Science and Art

5. I. Describe briefly about the features of management. (8)

i. Organized activities

ii. Existence of objectives

iii. Relationship among resources

iv. Working with and through people

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v. Decision Making

II. Explain the importance of management. (8)

i. Effective utilization of resources

ii. Development of resources

iii. To incorporate innovations

iv. Integrating various interest groups

v. Stability in the society

6. Explain in detail about Taylor’s scientific management.

I. Introduction

II. Elements and Tools of Scientific Management:

i. Separation of Planning and Doing

ii. Functional Foremanship

iii. Job Analysis

iv. Standardization

v. Scientific Selection and Training of Workers

vi. Financial incentives

vii. Economy

viii. Mental Revolution

III. Principles of Scientific Management:

i. Replacing Rule of Thumb with Science

ii. Harmony in Group Action

iii. Cooperation

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iv. Maximum Output

v. Development of Workers

IV. Followers of Scientific Management

V. Critical Analysis of Scientific Management

7. Describe in detail about Henry Fayol’s Administrative management.

I. Introduction

II. Managerial Qualities and Training

III. General Principles of Management

i. Division of Work

ii. Authority and Responsibility

iii. Discipline

iv. Unity of Command

v. Unity of Direction

vi. Subordination of Individual Interest to General Interest

vii. Remuneration of Personnel

viii. Centralization

ix. Scalar Chain

x. Order

xi. Equity

xii. Stability of Tenure

xiii. Initiative

xiv. Esprit de Corps

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IV. Elements of Management

V. Relevance of Fayol’s Principles

8. I. Describe the various functions of management. (8)

i.Planning

ii.Organizing

iii.Staffing

iv.Directing

v.Controlling

II.Explain the three levels of management in organizations with diagram. (8)

i. First Line Managers

ii. Middle Level Managers

iii. Top Level Managers

9. Explain in detail about the various views on management and administration.

I. Administration:

i. Formulation of corporate policy

ii. Coordination of finance, production and distribution

iii. Settlement of the compass of an organization

iv. The ultimate control of executive

II. Management:

III. Three different views of administration and management:

i. Administration is broader than management

ii. Administration is part of management

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iii. Administration and management are identical

10.Explain the various roles of managers according to Mintzberg.

Mintzberg identified ten roles and the roles are classified into threecategories:

IV. Interpersonal roles:

i. Figurehead role

ii. Leader role

iii. Liaison role

V. Informational roles:

iv. Monitor role

v. Disseminator role

vi. Spokesperson role

VI. Decision role:

v. Entrepreneur role

vi. Disturbance handler role

vii. Resource allocator role

viii. Negotiator role

IV. Validity of Role Approach

V. Reconciling Management functions and roles

11. Write an essay on the evolution of management thought.

I. Management in the ancient times

II. Management in the medieval period

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III. Management during the industrial revolution

IV. Schools of Management thought:

i. Scientific management

ii. Administrative management

iii. Behavioral management

iv. Management science

v. Organizational environment

12. Explain in detail about an organization’s environmental factors.

i. Economic environment

ii. Political- legal environment

iii. Technological environment

iv. Socio-cultural environment

v. Competitive environment

13.Define international management. Describe the various modes of internationalbusiness.

I. Definition

II.Modes of international business:

i. Exporting

ii. Licensing

iii. Franchising

iv. Joint Ventures

v. Foreign subsidiary

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vi. Management contracts

vii. Local warehousing and selling

viii. Local assembly and packaging

14. Write a detailed essay on Multinational Corporations (MNCs). Also explainabout their merits and demerits.

I. Characteristics

II. Types:

i. Ethnocentric companies

ii. Polycentric companies

iii. Regiocentric companies

iv. Geocentric companies

I. Strategies

II. Reasons for the growth of MNCs:

i. Expansion of market territory

ii. Marketing superiorities

iii. Financial superiorities

iv. Technological superiorities

v. Product innovations

III. Advantages:

i. Lower Labor Costs

ii. Potential for high rate of return on investment

iii. Expanded markets

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iv. Capital Resources

v. Availability of natural resources

IV. Harmful effects:

i. Distortion of economic structure

ii. Political interference

iii. Technology transfer not conducive to development

iv. Payment of dividends and royalty

15. Explain about international management in selected countries in detail.

I. Japanese management and Theory Z:

i. Life time employment

ii. Decision making

iii. Theory Z

II.Germany

III. France:

i. Le plan

ii. Cadre

IV. Korean management

V. Management in other countries:

i. Australia

ii. India

iii. Italian

iv. Britain

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16.Give a detailed account of globalization along with its advantages anddisadvantages.

I. Introduction

II. Meaning

III. Advantages

IV. Disadvantages

V. Factors behind globalization

a) Pull factors:

i. Profit advantage

ii. Growth prospect

b) Push factors:

i. Domestic market constraints

ii. Competition

iii. Government policies and regulations

iv. Spin-off benefits

v. Strategic vision

17.Explain in detail about the various methods of globalization.

i. Exporting

ii. Licensing and Franchising

ii. Joint ventures

iv. Fully owned manufacturing facilities

v. Assembly operations

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vi. Mergers and acquisitions

vii. Strategic alliance

viii. Contract manufacturing

ix. Management contracting

x. Counter trade

18.Discuss the unified global theory of management in detail.

i. The Empirical approach

ii. The Systems approach

iii. Situational or contingency approach

iv. Merging motivation and leadership theories

v. Organization development approach

vi. Discuss the various strategies for international business in detail.

I. Basic Areas:

i. Scope

ii. Resource

iii. Uniqueness

iv. Synergy

II.Strategic mix:

i. Corporate strategies:

a. Curtailment goal

b. Status-quo goal

c. Growth goal

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d. Diversification goal

ii. Business Strategies:

a. Defender Strategy

b. Reactor Strategy

c. Analyzer Strategy

d. Prospector Strategy

i. Functional strategies:

a. Production Strategy

b. Marketing Strategy

c. Finance Strategy

d. Personnel Strategy

e. R & D Strategy

III.Strategy implementation:

a. Organizational structure

b. Control mechanism

c. Information system

d. Evaluation system

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UNIT II

PLANNING

1. Describe in detail the nature of planning.

i. Planning is pervasive in nature.

ii. Planning is primary in nature.

iii. Planning is continuous in nature.

iv. Planning is flexible in nature.

v. Planning is goal oriented.

vi. Planning is an integrated process.

vii. Planning is forward looking.

viii. Planning is an intellectual process.

ix. Planning involves choice.

x. Planning includes efficiency and effectiveness dimensions.

2. Explain the purpose or importance of planning in detail.

i. Planning determines the direction of an organization.

ii. Planning provides a basis for teamwork.

iii. Planning is economical as it minimizes cost.

iv. Planning adapts to the changes in environment.

v. Planning provides co-ordination.

vi. Planning reduces risks or uncertainty.

vii. Planning facilitates decision making.

viii. Planning encourages innovation and creativity.

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ix. Planning improves morale.

x. Planning improves morale.

xi. Planning facilitates control.

xii. Planning facilitates participation.

3. Explain about the various steps involved in planning.

ix. Being aware of opportunities.

x. Establishing objectives.

xi. Considering planning activities.

xii. Identifying alternatives.

xiii. Evaluating alternative courses of action.

xiv. Choosing a best alternative course of action.

xv. Formulating derivative plans.

xvi. Numerising plans by budgeting.

4. Classify the various types of plans in detail.

i. Mission

ii. Objectives or goals

iii. Strategies

iv. Policies

v. Procedures

vi. Rules

vii. Programs

viii. Budgets

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5. Explain the characteristics of objectives in detail.

i. Hierarchy of objectives

ii. Objectives are multiple in nature.

iii. Long range-short range objectives

iv. Objectives should be specific and measurable.

v. Objectives are interdependent.

vi. Objectives must cover key result areas.

vii. Objectives should have defined time period.

viii. Objectives should have priority.

ix. Objectives should be challenging but realistic.

x. Objectives should be linked to rewards.

6. Give a detailed account of the benefits of objectives.

i. Unity of planning

ii. Motivate subordinates

iii. Objectives facilitate coordination.

iv. Objectives provide better control.

v. Objectives facilitate direction.

vi. Basis for planning

vii. Basis for measuring performance

viii. Legitimacy

7. Describe the various steps involved in the process of MBO in detail.

i. Set objectives.

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ii. Identify key result areas.

iii. Participatory or joint objective setting.

iv. Make action plan.

v. Review progress and take corrective action.

vi. Appraise performance.

8. Explain the benefits of MBO (Management by Objectives).

i. Employees can be motivated because they participate in the goalsetting process.

ii. Performance can be improved because MBO concentrates onobjectives.

iii. Unnecessary efforts will be minimized because objectives are setclearly.

iv. MBO helps managers to exercise better control over employees.

9. What are the limitations of MBO?

i. MBO involves too much paper work and holding of many meetings.

ii. MBO is a time consuming process.

iii. An environment of poor employer- employee relations reduces MBOeffectiveness.

iv. Failure to teach the philosophy of MBO weakens the MBO program.

10. Compare strategic planning with tactical and operational planning.

11. Classify the different types of strategies and explain them in detail.

III. Grand strategy:

i. Stability strategy

ii. Growth strategy

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iii. Retrenchment strategy

IV. Global strategy:

i. Globalization strategy

ii. Multidomestic strategy

iii. Transnational strategy

12. Mention the three levels of strategy and explain them in detail.

I. Corporate level strategy:

i. Forward vertical integration strategy

ii. Backward vertical integration strategy

iii. Horizontal integration strategy

iv. Concentric diversification strategy

v. Conglomerate diversification strategy

II. Business level strategy

III. Functional level strategy

13. Explain the various steps involved in the strategic planning process.

I. Develop mission and objectives

II. Diagnose internal and external environment

III. Situation (SWOT) Analysis/ TOWS Matrix:

i. WT strategy

ii. WO strategy

iii. ST strategy

iv. SO strategy

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IV. Develop alternative strategies

V. Formulate strategies:

i. Formulating corporate level strategy:

A. BCG matrix:

a. Star

b. Cash Cow

c. Question mark

d. Dog

ii. Formulating business level strategy:

A. Porter’s five forces model:

a. Threat of new entrants

b. Threat of substitute products

c. Bargaining power of buyers

d. Bargaining power of suppliers

e. Rivalry among current competitors

iii. Formulating functional level strategy

VI. Implementing strategies

14. Classify the different types of policies and explain them in detail.

I. On the basis of levels:

i. Basic policy

ii. General policy

iii. Division policy

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II. On the basis of functions:

i. Production policy

ii. Marketing policy

iii. Personnel policy

iv. Accounting policy

III. On the basis of sources:

i. Originated policy

ii. Appealed policy

iii. External policy

15. Describe the four steps involved in the process of policy making.

i. Policy formulation

ii. Policy communication

iii. Policy application

iv. Policy review and appraisal

16. Describe the characteristics of a good policy in detail.

17. Classify the various types of decisions and explain them in detail.

i. Programmable and non-programmable decisions

ii. Once-for-all and routine decisions

iii. Individual and group decisions

iv. Personal and organizational decisions

v. Initiative and approval decisions

vi. Certain and ambiguity decisions

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vii. Strategic and operating decisions

viii. Adaptive and innovative decisions

18. Explain the various steps involved in decision-making process in detail.

i. Recognize the need for a decision

ii. Definition of the problem

iii. Search and develop alternatives

iv. Evaluate alternatives

v. Selecting an alternative course of action among alternatives

a) Experience

b) Research and analysis

c) Experimentation

vi. Implement chosen alternative

vii. Learn from feedback

19. Describe the various decision making techniques.

III. Probabilistic or stochastic techniques:

i. Expected value method

ii. Decision tree method

iii. Simulation techniques

IV. Deterministic techniques:

i. Operations research

ii. Break even analysis

iii. Inventory control

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20. Explain the different conditions involved in decision-making.

I. Conditions of perfect certainty:

II. Conditions of risk:

i. Risk analysis:

a) A Priori probability

b) Empirical probability

c) Subjective probability

III. Conditions of uncertainty:

i. Maximax criterion

ii. Maximin criterion

iii. Minimax criterion

iv. Insufficient reason criterion

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UNIT III

ORGANISING

1. Explain the nature and purpose of organizing in detail.

Nature of organizing:

i. Division of work or specialization

ii. Orientation towards goals

iii. Composition of individuals and groups

iv. Differentiated functions

v. Continuous process

Purpose of organizing:

i. Facilitates management and administration

ii. Helps to achieve organizational goals

iii. Facilitates growth and diversification

iv. Optimum use of technological development

v. Optimum use of resources

vi. To perform managerial functions

vii. Human treatment of employees

viii. Provides job satisfaction and morale

ix. Stimulate creativity

x. Facilitates coordination

2. Explain the purpose of an organizational structure.

i. It facilitates management.

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ii. It encourages growth and diversification.

iii. It facilitates the optimum use of technological improvement.

iv. It encourages proper use of human resources.

v. It stimulates creativity.

3. Write a short notes on

i. Division of labor

ii. Formalization

4. Explain in detail about the different types of departmentation.

i. Departmentation by function

ii. Departmentation by territory or geography

iii. Departmentation by customer

iv. Departmentation by product

v. Departmentation by process

vi. Departmentation by time

vii. Departmentation by number

viii. Matrix departmentation

ix. Strategic business units (SBUs)

5. Classify the two types of organizations based on the span of control andexplain.

i. Organizations with wide span

ii. Organizations with narrow span

6. Explain the Graicunas theory of span of control in detail.

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i. Direct single relationship

ii. Direct group relationship

iii. Cross relationship

7. Explain the various factors affecting the span of control.

i. Nature of work

ii. Competence and leadership ability of the manager

iii. Capability of subordinates

iv. Planning and standardization of work

v. Degree of independence in decision making

vi. Use of objective standards for judging the efficiency of thesubordinates

vii. Communication techniques

viii. Level of personal contact needed

ix. Stability of organisation environment

8. Explain the concept of decentralization along with its advantages anddisadvantages. How can decentralization be made effective?

I. Concept of decentralization

II. Advantages

III. Disadvantages

IV. Making decentralization effective:

i. Centralized top policy

ii. Appreciation of concept of decentralization

iii. Development of managers

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iv. Competition among units

v. Open communication

vi. Effective co-operation

10.A) Classify the two types of delegation and explain them in detail.

III. Formal delegation

i. Bottom-up delegation

ii. Lateral delegation

IV. Informal delegation

B) Explain the various steps involved in the process of delegation.

i. Allocation of duty

ii. Delegation of authority

iii. Assignment of responsibility

iv. Creation of accountability

11. Explain the various barriers to effective delegation.

i. Willingness to let authority go

ii. Lack of confidence and trust in subordinates

iii. Lack of receptiveness

iv. Sense of insecurity

v. Lack of controls

vi. Fear on the part of employees

vii. Lack of incentives

viii. Lack of self-confidence

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12.What are the guidelines for effective delegation? Explain the advantages ofdelegation?

Guidelines for effective delegation:

i. Define assignments and delegate authority in light of results to beachieved

ii. Select right person

iii. Open communication

iv. Establish adequate controls

v. Proper incentives

Advantages of delegation:

i. Quick decisions can be possible

ii. Motivates subordinates

iii. Better strategic planning

iv. Promotes specialization

13. Explain the characteristics of formal and informal organization in detailwith their merits and demerits. Also distinguish between formal andinformal organization.

Formal organization:

i. Characteristics

ii. Benefits

iii. Demerits

Informal organization:

i. Characteristics

ii. Benefits

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iii. Demerits

Formal organisation Informal organization

The relationship betweenmembers in the organizationalstructure is well defined.

There is no formal relationshipbetween members.

It has clear and definiteorganizational structure.

It has not clear organizationalstructure.

Individual goals are consistentwith the organizational goals.

Individual goals may not supportorganizational goals.

14. Explain the different types of organization structure.

i. Line organizational structure

ii. Line and staff organizational structure

iii. Functional organizational structure

iv. Committee structure

15. Give the important characteristics of staffing and explain them in detail.

i. People- oriented

ii. Comprehensive function

iii. Based on fundamentals

iv. Both line and staff function

v. Continuous nature

vi. Human objectives

vii. Challenging task to the managers

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viii. Implied authority

16. Describe the objectives of staffing in detail.

i. Optimum utilization of human resources

ii. Procure people

iii. To develop employees

iv. To arrange effective communication with employees

v. To secure full cooperation

vi. To improve morale and job satisfaction

vii. To establish harmonious relations between labor and capital

viii. To improve employer-employee relationship

17. Write a detailed account of the various steps in staffing.

i. Planning and organizing

ii. Estimating the number of people required

iii. Analyzing the existing man power

iv. Analyzing present and future needs for people

v. Analyzing internal and external sources

vi. Recruitment

vii. Selection

viii. Placement

ix. Promotion

x. Performance appraisal

xi. Career strategy

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xii. Training and development

18. Explain the various factors affecting staffing in detail.

I. External factors:

i. Educational factors

ii. Political- legal factors

iii. Global factors

iv. Cultural factors

II. Internal factors:

i. Unions

ii. Organization culture and conflict

19. Explain elaborately about the sources of recruitment.

I. Internal Sources:

i. Temporary workers

ii. Promotion

iii. Transfer

iv. Apprentice

v. Dependents

vi. Past employees

II. External Sources:

i. Job advertisements

ii. Employment exchanges

iii. Recruitment from educational institutions

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iv. Recruitment from private employment agencies

v. Professional bodies/employee consultants

vi. Recommendations of existing employees

vii. Recruitment at the factory gate

viii. Labor contractors

ix. Casual callers

x. Deputation

20. Explain the various steps involved in selection process.

i. Preliminary screening of applicants

ii. Preliminary interview

iii. Application blank

iv. Checking references

v. Employment tests

vi. Psychological tests

vii. Employment interview

viii. Final approval/ selection

ix. Placement

x. Induction

21. Explain the various steps involved in induction process.

i. Prearrival stage

ii. Encounter stage

iii. Metamorphosis stage

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21. Briefly explain the career development model.

I. Career need assessment

II. Career opportunities

III.Need-Opportunity alignment:

i. Individual techniques

ii. Performance appraisal

iii. Management by objectives

iv. Career counseling

IV. Monitoring career moves

22. Explain the various stages involved in career development.

i. Exploratory stage

ii. Establishment stage

iii. Maintenance stage

iv. Stage of decline

23. Describe the various methods of performance appraisal elaborately.

i. Critical incidence method

ii.Checklist method

iii.Graphic rating scale method

iv.Ranking method

v.Forced distribution method

vi.Assessment centre method

vii.Appraisal by results (MBO)

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viii.Fixed review method

ix.Paired comparison method

x.Confidential report method

24. Explain the reasons for training needs.

i. Technology changing at a fast pace

ii. Quality conscious customers

iii. Greater productivity

iv. Stable workforce

v. Increased safety

vi. Better management

25. Describe the various benefits of training in detail.

i. Quick learning

ii. Higher productivity

iii. Standardization of procedures

iv. Less supervision

v. Economical operations

vi. Higher morale

vii. Preparation of future managers

viii. Better management

Advantages of training to employees:

i. Confidence

ii.New skills

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iii.Promotion

iv.Higher earnings

v.Adaptability

vi.Increased safety

26. What are the various types of training? Explain them in detail.

i. Induction or orientation training

ii. Job training

iii. Apprenticeship training

iv. Internship training

v. Refresher training or retraining

vi. Training for promotion

27. Explain the various methods of training in detail.

I. On- the-job training:

i. Coaching

ii. Understudy

iii. Position rotation

II. Off-the-job training:

i. Special lecture cum discussion

ii. Conference training

iii. Case study

III. Vestibule training

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UNIT IV

DIRECTING

1. Explain the steps involved in creative process in detail.

i. Saturation

ii. Preparation

iii. Frustration and incubation

iv. Inspiration or illumination

v. Verification

2. Explain in detail about the human factors in managing.

i. Multiplicity of roles

ii. Individuality

iii. Personal dignity

3. Describe elaborately about the various creativity tools used to solveproblems.

i. Brainstorming

ii. Vertical thinking and lateral thinking

iii. Reversal Tool

iv. SCAMPER Tool

v. Reframing Matrix

a) The 4Ps approach

b) The ‘Professions Approach’

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vi. Concept Fan

vii. Mind mapping

viii. Provocation

ix. DO IT

a) Define Problem

b) Open Mind and apply creative techniques

c) Identify the best solution

d) Transform

x. Simplex Tool

a) Problem Finding

b) Fact Finding

c) Problem definition

d) Idea Finding

e) Selection and Evaluation

f) Planning

g) Sell Idea

h) Action

4. I. Explain the nature of motivation. (8 marks).

i. Motivation is internal to man

ii. A single motive can cause different behaviors

iii. Different motives may result in single behavior

iv. Motives come and go

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v. Motives interact with the environment

II. Describe the basic elements involved in motivation process. (8 marks).

i. Motives

ii. Goals

iii. Behavior

5. Explain in detail about the various types of motivation.

i. Positive motivation

ii. Negative motivation

iii.Extrinsic motivation

iv.Intrinsic motivation

6. Discuss the different theories of motivation.

i. McGregor’s Theory X and Theory Y

ii. Theory Z

iii. Maslow’s hierarchy of needs theory

iv. Herzberg’s motivation- hygiene theory

v. McClelland’s needs theory

vi. Expectancy theory

vii. Equity theory

viii. Skinner’s behaviouralist- reinforcement theory

ix. Alderfer’s ERG theory

x. Carrot and Stick approach of motivation

7. Explain the importance of leadership. Also explain the functions of leaders.

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Importance of leadership:

i. Securing cooperation

ii. Creating confidence in the minds of employees

iii. Providing good working climate

Functions of leaders:

i. Leader develops team work.

ii. Leader is an appropriate counselor.

iii. Leader is a representative of subordinates.

iv. Leader uses power properly.

v. Leader uses time well.

8. Explain in detail about the different types of power.

i. Legitimate power

ii. Reward power

iii. Coercive power

iv. Referent power

v. Expert power

9. Explain elaborately about the various styles of leadership.

I. Leadership styles based on use of authority:

i. Autocratic leadership

ii. Democratic or participative leadership

iii. Laissez-faire leadership

iv. Benevolent autocratic leadership

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v. Supportive leadership

II. Leadership styles based on managerial grid:

i. Impoverished style

ii. Country club style

iii. Produce or perish style

iv. Middle-of-the-road style

v. Team style

III. Leadership styles based on continuum

10.Write a detailed essay on the various theories of leadership.

i. Trait theory

ii. Behavioral theories

iii. Situational or contingency theory

11. Explain the importance of communication. Also explain thecommunication process in detail.

Importance of communication:

i. Basis for planning

ii. Basis for decision making

iii. To perform managerial functions effectively

iv. To facilitate coordination among workers

v. To develop understanding between superiors and subordinates

vi. To motivate workers

Communication process:

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i. Sender/source

ii. Encoder

iii. Transmission channel

iv. Receiver

v. Decoder

12. Write a detailed essay on the different forms or types of communication.

IV. Based on communication flow:

i. Downward communication

ii. Upward communication

iii. Horizontal communication

iv. Diagonal communication

V. Based on channel:

i. Formal communication

ii. Grapevine or Informal communication

VI. Based on expression:

i. Written communication

ii. Oral communication

iii. Non verbal communication

13. Describe the barriers involved in effective communication in detail. Explain afew suggestions for managers to overcome barriers to communication.

Barriers involved in effective communication:

i. Lack of planning

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ii. Semantic distortion

iii. Selective perception or filtering

iv. Fear and emotions

v. Distrust and threat

vi. Timing of communication

vii. Overloading of communication

viii. Loss by transmission and poor retention

ix. Status symbols

x. Poor listening and premature evaluation

xi. Poorly expressed messages

xii. Unclarified assumptions

xiii. Faulty organisation

xiv. Barriers in the international environment

Overcoming barriers to communication:

i. Regulate the flow of information

ii. Encourage feedback

iii. Simplify the language

iv. Listen actively

v. Constraints negative emotions

vi. Use nonverbal cues

vii. Use the grapevine

14. Explain the important guidelines for effective communication.

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i. Clarify your ideas before communicating

ii. Examine the true purpose of communication

iii. Consider the physical and human setting in which communication will takeplace

iv. Consult with others, when appropriate, in planning communication

v. Be mindful of the nonverbal messages you send

vi. Take the opportunity to convey something to the receiver

vii. Follow up the communication

viii. Communicate for tomorrow as well as today

ix. Be sure actions support communication

x. Seek not only to be understood but to understand

15. Write a detailed essay on the important electronic media which are useful forcommunication.

i. Telecommunication

ii. Telephone answering machines (voice mail)

iii. Facsimile (FAX) Machines

iv. Teleconferencing

v. Closed Circuit Television Systems

vi. Internet

vii. Electronic Mail systems

viii. Electronic typewriters

ix. Electronic Bulletin Boards

x. Computers (Main frame, mini and personal)

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xi. Cellular telephones

16. I. Describe the different types of cultures. (8 marks).

i. Dominant culture and subculture

ii. Strong and weak cultures

II. Explain the characteristics which describe organizational culture. (8 marks).

i. Observed behavioral regularities

ii. Norms

iii. Dominant values

iv. Philosophy

v. Rules

vi. Organizational climate

17. Write a detailed essay on creating, sustaining and changing a culture.

I. Creating a culture

II. Sustaining a culture:

i. Selection

ii. Top management

iii. Socialization

iv. Prearrival

v. Encounter

vi. Metamorphosis

III. Changing a culture:

i. A dramatic crisis

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ii. Change in leadership

18. How is culture learnt? Explain in detail about the sources of culture.

i. Stories

ii. Rituals

iii. Symbols

iv. Languages

19. Explain the benefits and disadvantages of cultural diversity.

Benefits of cultural diversity:

i. Promotes humanistic valuesii. Improves productivity and profitability

iii. Helps to create a pool of talentiv. Exchange of innovative ideasv. Other benefits of diversity

Disadvantages of Cultural Diversity in the Workplace:i. Feelings of Discriminationii. Prolonged Decision Makingiii. Turnover

20. Explain some of the important steps for managing cultural diversity.

i. Learn the professional aspirations of all team members and support theirefforts to achieve them.ii. Create opportunities for highly talented employees to be exposed to leaderswho may not otherwise interact with them.

iii. Create cross-functional teams.

iv. Volunteer for community projects that teach tolerance, both directly andindirectly.

v. Delegate fairly

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Vi.Communicate and support intolerance of inappropriate and disrespectfulbehavior.

vii. Evaluate performance objectively.

viii. Consider individual needs when enforcing company policies and guidelines.

Actions that Make a Difference:1. Make time to talk privately with each of your employees on a regular basis.

2. Ask your staff, individually, how they would prefer to be managed and how theywould prefer to be rewarded.

3. The more actions you take to demonstrate sincere interest in the individual, themore likely your staff will want to "go the extra mile."

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UNIT V

CONTROLLING

1. Explain the nature or characteristics of controlling.

i. Planning and controlling are closely related

ii. Controlling is forward looking

iii. Controlling is goal oriented

iv. Controlling should be simple

v. Controlling should be flexible

vi. Controlling should be economically realistic

vii. Controlling enables to make quick actions

viii. Controlling should be participative

ix. Controlling system should be acceptable.

2. Give a detailed account on the importance of controlling.

i. Controlling is the basis for future action

ii. Controlling is helpful to achieve goals

iii. Controlling copes up with uncertainty

iv. Controlling facilitates decentralization

v. Facilitates coordination

vi. Improves morale and job satisfaction

vii. Facilitates supervision

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3. Give an elaborate account of the process of controlling.

I. Establishing standards:

a) Quantitative standards:

i. Productivity standards

ii. Cost standards

iii. Time standards

b) Qualitative standards

II. Measure actual performance

III. Compare actual performance against standards

IV. Take corrective action

4. Explain in detail about the critical control point standards and benchmarkingtechniques.

Critical control point standards:

i. Physical standards

ii. Cost standards

iii. Capital standards

iv. Revenue standards

v. Program standards

vi. Intangible standards

vii. Goals as standards

viii. Strategic point control

Benchmarking techniques:

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i. Internal benchmarking

ii. Competitive benchmarking

iii. Functional benchmarking

iv. Generic benchmarking

5. Explain the requirements for effective control.

i. Understandable measures

ii. Acceptable by employees

iii. Linkage to strategies

iv. Balance of objective and subjective data

v. Accuracy

vi. Flexibility

vii. Timeliness

viii. Economical

ix. Responsibility for failures

6. Write a detailed essay on the various types of budgets.

I. Functional budgets:

i. Sales budget

ii. Production budget

iii. Material budget

iv. Labor budget

v. Manufacturing overheads budget

vi. Administrative overhead budget

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vii. Distribution overhead budget

viii. Cash budget

II. Transaction types:

i. Operating budget

ii. Capital budget

III. Activity types:

i. Flexible budget

ii. Fixed budget

iii. Master budget

IV. Time interval basis:

i. Continuous budget

ii. Periodic budget

7. Write a detailed essay on various non-budgetary control techniques.

i. Personal observation

ii. Statistical data

iii. Special reports and analysis

iv. Break-even analysis

Costs:

a) Fixed costs

b) Variable costs

c) Total costs

Methods of break-even analysis:

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a) Chart method (or) graphical method

b) Algebraic method of Break-even analysis

v. Operational audit

vi. Financial statements

vii. Ratio analysis

a) Profit measurement ratio

b) Liquidity ratio

c) Solvency ratio

d) Activity ratio

viii. Logistic control system

8. Explain the important terms associated with cost control in detail.

i. Financial statements

ii. Importance of financial statements

iii. Income statement

iv. Balance sheet

v. Key words of cost control

vi. Cash flow statement

9. Explain the different types of special purchase systems in detail.

i. Forward buying

ii. Tender buying

iii. Blanket order

iv. Zero stock

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v. Rate contract

10. Write a detailed essay on the various steps involved in the standardpurchasing procedure.

i. Processing the requirements

ii. Location and choice of suppliers

iii. Placing of orders

iv. Follow up and expediting

v. Invoice check up and clearance

vi. Maintenance of records

11.Give a detailed account on the various methods of purchasing.

i. Purchasing according to the requirement

ii. Price forecasting method

iii. Purchasing for some definite future period

iv. Market purchasing

v. Speculative purchasing

vi. Contract purchasing

vii. Scheduled purchasing

viii. Public buying

ix. Tender purchasing

12. I. Explain the basic functions of maintenance. (8 marks).

i. Inspection

ii. Repair

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iii. Overhaul

iv. Lubrication

v. Salvage

II. Describe the basic techniques of planned maintenance control in detail.(8 marks).

i. Inventory facilities

ii. Marking the equipment

iii. The facility register

iv. Marking schedule

v. Job specification

vi. Maintenance program

vii. Job report

13. Write a detailed essay on the two types of maintenance control.

i. Breakdown maintenance

ii. Preventive maintenance

14. Write a detailed account on statistical quality control (SQC).

i. Definition

ii. Dimensions of quality

iii. Statistical quality control (SQC)

iv. Types of control charts used in statistical quality control:

a) Control charts for attributes

b) Control charts for variables

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v. Procedure for statistical quality control

vi. Advantages of statistical quality control:

a) Improvement in product quality

b)Reduction of scrap and rework

c) Product quality is uniformly maintained

d)Product design can be improved

e) SQC develops quality

f) SQC satisfies production department and the customer

15. Write a detailed essay on the various factors affecting productivity.

I. External factors

II. Internal factors:

i. Factors related to product

ii. Factors related to methods

iii. Factors related to management

iv. Factors related to workers

16. Explain in detail about the various elements of operations management system.

I. Inputs

II. Outputs

III. External environment

IV. Transformation process

i. Planning

ii. Systems design

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iii. Operating the system

iv. Controlling the operations