PRINCIPLES OF MANAGEMENT UNIT - I PART A - QUESTIONS & ANSWERS 1. Define Management.

. Management is the art of securing maximum results with minimum efforts so as to secure maximum prosperity and happiness for both employer and employee and give the public the best possible service. John Mee 2. Define Administration. Administration consists of the performance or management of business operations and thus the making or implementing of major decisions. Administration can be defined as the universal process of organizing people and resources efficiently so as to direct activities toward common goals and objectives. 3. What are the functions of management? Planning Organizing Staffing Directing Controlling. 4. What are the roles of manager? 1. Interpersonal Role Figure head Leader Liaison 2. Informational Roles Monitor Disseminator Spoke person 3. Decisional Role Entrepreneur Disturbance handled Resource allocator Negotiator 5. List the three essential skills of managers need to perform the duties. Conceptual Skills Human Skills Technical Skills

6. Define productivity. Productivity is defined as the output input ratio within a time period, with due consideration for quality. Quality = Output / input (within a time period, quality considered) 7. Define Scientific Management. A school of management developed between 1910 and 1940 which was based upon a logical and rational approach with an emphasis on making people work more efficiently by breaking down large tasks into smaller components and clearly defining how the job should be done and how long it should take. Scientific management was concerned with improving the operating efficiency at the shop floor level. Taylor has defined scientific management as follows: Scientific management is concerned with knowing exactly what you want men to do and the see that they do it in the best and cheapest way. 8. What are the Elements of Scientific Management: The techniques which Taylor regarded as its essential elements or features may be classified as under: 1. Scientific Task and Rate-setting, work improvement, etc 2. Planning the Task. 3. Vocational Selection and Training 4. Standardization (of working conditions, material equipment etc.) 5. Specialization 6. Mental Revolution. 9. Write short notes on Hawthorne Experiment. The Hawthorne Experiments began in 1924 and continued through the early 1930s. A variety of researchers participated in the studies, including Elton Mayo. One of the major conclusions of the Hawthorne studies was that workers' attitudes are associated with productivity. Another was that the workplace is a social system and informal group influence could exert a powerful effect on individual behavior. A third was that the style of supervision is an important factor in increasing workers' job satisfaction. 10.Differentiate between Efficiency and Effectiveness? Effectiveness is the extent to which an organization or programme produces particular outputs (which are concrete and measurable) or outcomes (which may not be measurable). Efficiency is defined as the extent to which an organisation or programme maintains a particular level of production with fewer resources or increases the level of goods or services it produces with a less than proportionate increase in the resources used. 11. Write short notes on unity of command Unity of command means a person should get orders and instructions from only one superior. Unity of command avoids conflicting orders and ensures order and stability in the organization. It is also helpful in fixing responsibility.

12. Write short notes on unity of direction According to this principle each group of activities with the same objective must have one head and one plan. Unity of direction is different from unity of command in the sense that the former is concerned with functioning of the organization. Unity of command cannot exist without unity of direction but does not flow from it. 13. Write short notes on scalar chain. Scalar chain refers to the chain of superiors ranging from highest authority to the lowest level in the organization. There should be a clear line of authority ranging from top to bottom in the organization. All upward and downward communication should flow through each position of authority along the scalar chain. 14. Write short notes on division of work Fayol has advocated division work to take the advantage of specialization belongs to natural order. It helps a person to acquire ability and accuracy with which he can do more and better work, with the same effort. The principle of division of work can be applied at all levels of the organization. 15. Write a note on Time study Time study involves the determination of time to complete a job.. The movement which takes minimum time is the best one. This helps in fixing the fair work for a period. 16. What is Motion Study? Motion study involves the study of movements in parts which are involved in doing a job and thereby eliminating the wasteful movements. Elimination of unnecessary movements in doing work reduces time taken in performing a work. 17. What is Fatigue Study? Fatigue study shows the amount and frequency of rest required in completing the work. After a certain period of time, worker feels fatigue and cannot work with full capacity. Therefore they require rest in between. What you mean by Taylor differential piece rate system? According to this scheme, a worker who completes the normal work gets wages at higher rate per piece and one who does not complete gets at lower rate. Wage rate should be fixed on accurate knowledge and not on estimates. 18. Define MBO MBO has been defined as follows MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. Consciously directed towards the effective and efficient achievement of organizational objectives. 19. What is specialization? Specialization means the process of dividing the work. Specialization permits individuals to develop expertise in their assigned tasks and their own and group effectiveness. Specialization refers to the degree to which the overall organizations activity is broken down into smaller components.

20. What are micro environmental factors that affect business? i) Shareholders ii) Suppliers iii) Distributors iv) Customers v) Competitors vi) Media

UNIT II 1. Define Planning. Planning involves selecting missions and objectives and the actions to achieve them. It requires decision making that is, choosing future courses of action among alternatives. 2. Write a note on operational planning. An operational planning is a subset of strategic work plan. It describes short-term ways of achieving milestones and explains how, or what portion of, a strategic plan will be put into operation during a given operational period, in the case of commercial application, a fiscal year or another given budgetary term. An operational plan is the basis for, and justification of an annual operating budget request. Therefore, a five-year strategic plan would need five operational plans funded by five operating budgets. 3. What is mission? The mission or purpose identifies the basic function or task of an enterprise or agency, or of any part of it. 4. Define Objective. Objectives or goals are the ends toward which activity is aimed, and every oganisation strives hard to achieve them. Objectives are known by different name, eg. Goals , aims, purposes, missions, targets etc. Objectives are end towards which the activities of an organization are directed. 5. Define Strategy. General program of action and deployment of resources to attain comprehensive objectives. 6. Define Budget. A budget is a statement of expected results expressed in numbers. Budget generally refers to a list of all planned expenses and revenues. Budget is a statement of expected results expressed in numerical terms for a definite period of time in future. It means of co-ordination and control. Budgetary co-ordination is activities of different departments by adjusting departmental budgets into the matter budget.

7. What is SWOT analysis? SWOT analysis A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in an anther situation of an organization or individual requiring a decision in pursuit of an objective. It involves monitoring the marketing environment internal and external to the organization or individual. 8. What do you mean by Planning Premises? Planning Premises are the anticipated environment in which plans are expected to be operated. They include assumptions or forecast of the future and known features that will affect the course of plans, such as prevailing policies and existing company plans control the basic nature of supporting plans -koonz O.Donnel. 9. Define MBO. Structural approach to organization-wide participative goal setting that aims to serve as a basis for (A) greater efficiency through systematic procedures, (B) greater employee motivation and commitment through participation in the planning process, and (C) planning for results instead of planning just for work. In MBO practice, managers and their subordinates determine specific objectives jointly, progress toward agreed-upon objectives is periodically reviewed, end results are evaluated, and rewards are allocated on the basis of the progress. 10. Define Strategic Planning. Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. 11. Define forecasting. Planning tool that helps management in its attempts to cope with the uncertainty of the future. It starts with certain assumptions based on the management's experience, knowledge, and judgment. These estimates are projected into the coming months or years using one or more techniques such as Delphi method, exponential smoothing, moving averages, regression analysis, and trend projection. 12. Define Decision Making. The thought process of selects a logical choice from among the available options. When trying to make a good decision, a person must weigh the positives and negatives of each option, and consider all the alternatives. Decision-making is the process of choosing a course of action from available alternatives. This process involves understanding the problem, collecting information, developing and evaluating alternatives, choice of a solution and evaluation.

13. What are the steps in the Process of Decision Making: Defining the problem Analyzing the problem Developing alternative solution Evaluating the problems Selecting the best solution Implementing the decisions Feedback and control. 14. Different types of Managerial Decision: Operational and Personal Decisions. Routine and strategic Decisions Programmed and Non-Programmed Policy and Operating decision Individual and Group decision 15. What is key result area (KRA) Organizational objective and planning premises together provide the basis for identification of KRA. KRA is derived from the expectations of various stakeholders. KRAs applicability are, Profitability Market standing Innovation Productivity Worker performance Financial resource Manager performance Public responsibility 16. Explain Marginal Analysis. Process of identifying the benefits and costs of different alternatives by examining the incremental effect on total revenue and total cost caused by a very small (just one unit) change in the output or input of each alternative. Marginal analysis supports decision-making based on marginal or incremental changes to resources instead of one based on 'totals' or 'averages.' 17. Define DSS (Decision Support System). Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organizational decision-making activities. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.

16. What is a Program? -Program is the concrete scheme of action designed to accomplish a given task. -It specifies the steps to be taken, resources to be used, time limit for each step and assignment of task. -It is a combination of objectives, policies, budget, task assignment and procedures. 19. What do you mean by Projects? -Project is a distinct cluster of functions and facilities for a definite purpose and definite time period. -A project is defined in terms of capital investment, specific objectives, inter dependence of tasks. 20. What is Partnership? A partnership is a business relationship entered into by a formal agreement between two or more persons or corporations carrying on a business in common. The capital for a partnership is provided by the partners who are liable for the total debts of the firms and who share the profits and losses of the firm according to the terms of their agreement. Partnerships (other than banking companies) are generally limited in size to twenty partners. The interest of a partner is transferable only with the prior consent of the other partner(s). However, a partner's right to a share of the partnership income may be received in trust for another person. Generally they are formed to pool resources and/or to retain experienced and talented employees. 21. What is a Corporation? A corporation is a legal entity that has most of the rights and duties of a natural person but with perpetual life and limited liability. Shareholders of a corporation appoint a board of directors and the board of directors appoints the officers for the corporation, who have the authority to manage the day-to-day operations of the corporation. Shareholders are generally liable for the amount of their investment in corporate stock and their personal property is immune from claims against the corporation-thus, their liability is limited.

UNIT III 1. Define Organising. Organising involves establishing a structure of roles for people to fill in an organisation and enquiring that the entire tasks necessary o accomplish goals are assigned to people who can do them best. 2. Distinguish between formal and informal organisation. Formal organisation means the intentional structure of roles in a formally organised enterprise. Informal Organisation means Network of personal and social relationships (alliances, cliques, friendships) that arise as people associate with other people in a work environment. . 3. Define Entrepreneurship and Intrapreneurship. Entrepreneurship is the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities. Practice of entrepreneurship in established firm. Intrapreneurship applies the 'start up' style of management (characterized by flexibility, innovation, and risk taking) to a secure and stable firm. The objective is to fast track product development (by circumventing the bureaucracy) to take advantage of a new opportunity or to assess feasibility of a new process or design. 4. Define Strategic Business Units (SBU). SBUs are distinct little businesses set up as units in a larger company to ensure that a certain product or product line is promoted and handled as though it were an independent business. 5. Define Authority and Power. Authority: The right in a organisation to enforce laws, exact obedience, command, determine, or judge. Power: The ability of individuals or groups to induce or influence the beliefs or actions of other persons or groups. 6. Define Scalar Principle. Classical-management rule that subordinates at every level should follow the chain of command, and communicate with their seniors only through the immediate or intermediate senior. According to its proponent, the French management pioneer Henri Fayol (1841-1925), a clear understanding of this principle is necessary for the proper management of any organization.

7. Define Organisation Structure. Define Functional Authority. Staff ability to initiate as well as to veto action in a given area of expertise. Functional authority allows decisions to be implemented directly by the staff in question. Areas where functional authority is found are accounting, labor relations, and employment testing.

8. Define Delegation of Authority.

The action by which a manager assigns part of his or her authority commensurate with the assigned task to a subordinate. While ultimate responsibility cannot be relinquished, delegation of authority carries with it the imposition of a measure of responsibility. The extent of the authority delegated must be clearly stated.

9. Distinguish between Centralization and Decentralization. Centralization: Situation in which decision-making power is at the top of an organization and there is little
delegation of authority.

Decentralization: Transfer of decision-making power and assignment of accountability and responsibility for results. It is accompanied by delegation of commensurate authority to individuals or units at all levels of an organization even those far removed from headquarters or other centers of power. 10, what is matrix organisation? Matrix organization Matrix structure is a hybrid organizational form, containing characteristics of both project and functional structures. It is two dimensional pattern developed to meet the problems of growing size and complexity of undertakings. Matrix organization is any organization that employs multiple command structure but also related support mechanism and an associated organizational culture and behavioral pattern. 11. What is an organisation chart? Organizational chart An Organizational chart is a diagrammatical form which shows the important aspects of an organization including the major functions and their respective relationships, the channels of supervision and the relative authority of each employee who is in charge of each respective function 12. Define Organizational Culture. A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way you perceive, think, and feel in relation to those problems.

13. Define Staffing. Selecting and training individuals for specific job functions, and charging them with the associated responsibilities. Koontz and ODonnell, The managerial function of staffing involves manning the organizational structure through proper and effective selection, appraisal and development of personal to fill roles designed into structure. 14. Define Human Resources Planning (HRP). Estimating or projecting the number of personnel with different skills required over time or for a project, and detailing how and when they will be acquired. 15. Define Recruitment and Selection. Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation. Selection is the process finding the right person for the right job. 16. Define induction programme. An induction programme is an important process for bringing staff into an organisation. It provides an introduction to the working environment and the set-up of the employee within the organisation. The process will cover the employer and employee rights and the terms and conditions of employment. As a priority the induction programme must cover any legal and compliance requirements for working at the company and pay attention to the health and safety of the new employee. 17. What is Brain- storming? Brain -storming is a technique stimulates idea generation for decision-making. Originally applied by OSBORN in 1938 in an American company using the brain to storm the problem a conference technique by which group attempts to find solution for a specific problem by amassing all the ideas spontaneously contributed to the members. 18. Define Halo effect. Halo effect is one of the perceptional bias which indicates that perception is based on only certain characters like intelligence, dress etc. In the selection process if the interviewer selects the candidate based on any one character which he admirers, then there is a possibility of selecting a wrong candidate. This will lead to poor performance followed by turn over in the later period leaving the company in a great loss.

19. Define Stereo Typing Stereotyping is making assumptions about individuals or groups based on information (which may or may not be valid) obtained before the individual or group has been encountered. Once encountered, opinions formed may be based on dress, speech, gender, ethnic origin, nationality, and gestures. 20. Define training and development. Training is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviors to enhance the performance of employees. Encouraging employees to acquire new or advanced skills, knowledge, and view points, by providing learning and training facilities and avenues where such new ideas can be applied. 21. Define Organisation Development (OD). Theory and practice of planned, systematic change in the attitudes, beliefs, and values of the employees through creation and reinforcement of long-term training programs. OD is action oriented. It starts with a careful organization-wide analysis of the current situation and of the future requirements, and employs techniques of behavioral sciences such as behavior modeling, sensitivity training, and transactional analysis. Its objective is to enable the organization in adopting-better to the fast-changing external environment of new markets, regulations, and technologies. 22. Define Organizational Structure: Koontz and O Donnell have defined organizations as the group of activities necessary to attain objectives, the assigning of each grouping to managers to attain objectives, the assigning of each grouping to managers with authority to supervise and the provisions for co-ordination horizontally and vertically in the enterprise structure. 23. Write short on formal Organization: It refers to the planned structure of jobs and positions with clearly defined objectives and functions. It is deliberately or consciously created by the top management for the accomplishment of enterprise objectives. It is made up of official relationship and channels of communication. Formal structure is governed by established rules and procedure.

24. What do you mean by informal organization? It arises from personal and social relations of people. It is not formally designed but develops spontaneously out of interactions between persons. It is influenced by personal attitudes, likes and dislikes. Informal relations cut across formal channels. 25. Define Departmentation Departmentation may be defined as the process of grouping individual job into departments. It involves grouping of activities and employees into department so as to facilitate the accomplishment of organization objectives. Once the total work of an enterprise is divided

into individual functions and sub-functions, these functions are grouping together into work units on a particular basis. 26. What is orientation programme? Orientation/Induction refers to the activities involved in introducing the new employees to the organization and its policies, procedure, rules and regulations. When a new employee reports for work, he must be helpful to get acquainted and adjusted with the work environment. 27. What is Span of management? Span of management refers to the number of sub-ordinates who can be managed effectively by superior. It is necessary to decide the appropriate span of every executive. If the number of executives reporting directly to the manager is very large, he may not be able to exercise effective supervision and control. On the other hand, if the number is too small, full use of manager abilities may not be made. There is a limit on the number of sub-ordinates that a manager can effectively supervise. 28. What do you mean by Recruitment? Recruitment is the process of identifying the sources of prospective candidate and attracting them to apply for jobs in the organization. Its purpose in to seek and attract the candidate having required abilities to fill positions in the organization. It enables the management to select suitable employees to different jobs in the enterprise. 29. Mention the drawbacks in interview. Halo effect Horns effect Central tendency Similar to me First impression The tendency to rate a person high on all factors even though the person was outstanding on only one factor The opposite of the halo effect The inability to rate all or most applicants anywhere but in the middle The tendency to rate higher those people who look, act, or have a background most like the interviewer Making the hiring decision within the first few minutes of the interview, instead of evaluating all the information from the full interview