National Institute of Business Management

Chennai - 020

FIRST SEMESTER EMBA/ MBA

Subject : Principles and Practices of Management

Attend any 4 questions. Each question carries 25 marks

(Each answer should be of minimum 2 pages / of 300 words)

1. Explain the principles of Scientific Management by Taylor.

Answer - The Scientific Management approach was initially described and
theorized by Frederick Winslow Taylor in the in the late nineteenth and early
twentieth century. In his book Principles of Scientific Management, first
published in 1911, Frederick Taylor formulated a view on management that
was highly inspired by engineering principles. As such, the studies of
Frederick Taylor can be seen as a culmination of a series of developments
occurring in western industrialized countries, in which engineers took the
lead in developing manufacturing productivity and in industrializing
organizations.

Frederick Taylor developed Scientific Management out of the belief that

tasks could be optimized scientifically, and that Scientific Management
could design the best rational way of performing any task, which would lead
to enhanced productivity and profitability. Enhanced productivity would not
only lead to greater profits for the employers, but also for the workers, who
would be given the tools and training to perform at optimum performance.

The development of best practices should be based on detailed observation

of work processes, and on vigorous training and selection of the best suited
workers.

Four principles identified by him are as follows:

Develop a science of work

The science of work would be achieved by measuring output, and by
performing detailed studies of time and human movement. With these
 studies, improvements could be made to the tools and workstation
designs used by workers, which would increase effectiveness.
Scientific selection and training
Workers should be scientifically selected and trained. Frederick Taylor
theorized that workers had different aptitudes, and that each worker
should be fitted to the job. The task of management was therefore to
select the workers fitting to the specific job, and also to scientifically
train every worker in the most productive way of performing the
specific task. By doing this correctly, every worker would be selected
and trained to achieve his/her utmost potential.
Educate workers and managers in the benefits of Scientific
Management
Both workers and managers should be educated in understanding the
benefits of scientific management.
Specialization and collaboration between workers and managers
Management should focus on developing, designing and supervising
improved systems, whereas workers should concentrate on performing
their manual duties. If everyone fulfils their respective role, no
conflict would arise between management and workers, since the
Scientific Management approach would find the best solution for all
parties concerned.

Frederick Taylor strongly believed that the Scientific Management

approach would solve conflicts between workers and managers, and
that the approach had the potential of highly increasing the
productivity of organizations. However, many were not supporting his
ideas. Several managers were threatened by the approach, since many
supervisory jobs would be rendered useless if work was highly
standardized. Likewise, workers were not pleased with the approach,
since many jobs would be terminated when increasing productivity.
Lastly, critics thought Scientific Management to be inhuman, since
workers were believed to be reduced to bolts and nut in the industrial
machine.

Despite all criticism, Taylorism had a huge impact on the

industrialization process in the western world, and many companies
have adopted Frederick Taylors ideas over time. Taylorism can be
 seen performed in many modern companies, such as fast food
restaurants, today, and is oftentimes highly reflected in the work
processes of many modern service and manufacturing companies.

2. Explain the major steps in planning.

Answer - The process of planning includes the determination of objectives
and outlining the future actions that are needed to achieve these objectives.
Various steps that are followed in the process of planning are:

(i) Identifying the problem: It involves the identification of the aim for the
fulfillment of which the plan is being formulated. If a new plan is require or
the modification of an existing plan could help in achieving these aims.

(ii) Gathering information about the activities involve: An effective plan

needs complete knowledge of the activities involved and their effect on other
external and internal activities.

(iii) Analysis of information: This information is then analysed minutely and

the information related with similar subjects is classified so that similar type
of data can be kept together.

(iv) Determining alternate plans: There are alternate plans available for the
achievement of the objectives and ingenuity and creativeness are required as
some plans are also developed at this stage.

(v) Selecting the plan: At this stage the plan which is acceptable to the
operating personnel is proposed. The adaptability and the cost of the plan are
also taken into consideration.

(vi) Detailed sequence and timing: Detailed like who will perform which
activity under the plan and the time within which the plan should be carried
out is determining in this step.

(vii) Progress check of the plan: The provisions are made for the follow up
of the plan as the success of any plan can be measured by the results only.
Planning Process Types of the Plans
1. Planning Hierarchy
The concept of the feeling of the plans at the different hierarchical levels can
be understood a great deal with the help of the planning hierarchy. Here the
different plans are treated as the hierarchy, involves going towards the
lowest hierarchical plan from the broader hierarchical plan. The planning
hierarchy mainly consists of the following type of the plans

1. Business plans These types of the plans include whole of the business.

2. SBU plans These plans act as the strategic business unit plans including
the business units.

3. Corporate Plans These plans act as the plans of the organization

involving its activities. It is the total plan for the whole organization, a
corporate body working as a functional unit. The complete unit is covered
under such plans.

4. Departmental plans These plans are also referred to as the functional

unit plans and cover the branches, the projects, the departments, the units
that are separated for the functional efficiency.

2. Conceptual planning
Provides some type of the guidance for the planning but the major drawback
in this type of the planning is that the planning unit is not at all visible,
whose presence is very much critical in the planning. The conceptual
planning must consist of the following

1. Policy One time decision i.e. usually effective for a length of the time.

2. Objectives Focus direction of an achievement and the general outcome.

3. Goals Very well defined quantitative or the numerical objectives by the

end of a particular period with the plan. The practical orientation to the
implementation of the plans is obtained here.

4. Procedures Process rules that are carrying out the action.

5. Rules Fixed direction unless expressly revised.

6. Budgets Plans converted to the quantities and in the terms of the money
having the feature of the interpretation in the statistical and the accounting
terms.

7. Vision Statement- The statement includes the purpose operating for the
future and then to take the others in the vision fold of the organization.

8. Mission The purpose of offering the goods and the services in the terms
of the beneficiary.

9. Variable plans In order to satisfy the different types of the contingencies,

it is a necessity to draw different types of the plans. The variations may
include drawing a realistic plan and then following this step by the
preparation of an optimistic and pessimistic plan.

3. The Plan document

For getting a planned document, all the above steps are performed and
during this, one particular thing to kept in mind is that the plan must start
with the broader objectives and must be linked stepbystep to the actionable
and the implementation activity. The plan document must consist of the
following

a. Premising This step is needed at the each stage of the planning. Before
undertaking the plan, the strength, the weakness, the opportunity and the
threats (SWOT) can be calculated depending on the premises.
b. Vision The way in which we visualize our future.
c. Mission What we aim to deliver to the beneficiaries.
d. Policy What restrictions on means we will note during the execution of
the plan.
e. Objectives What we will keep as the broad directions for the
achievement.
f. Goals Translate the objectives into the quantitative and the financial
goals, which can be achieved by the operational people.
g. Procedures To prioritize and then draw the sequence of the action.
h. Budget Convert to the money terms in order to establish the standards
for the evaluation
4. The program
Whenever any activity is carried out, it is carried out to achieve one thing or
the other. But the results that one expects to be obtained must be achieved in
the proper frame of the time, so that they can be used at the right time for
various other activities. Hence, in order to get the results within the certain
time frame, a program is drawn.

The projects of the diverse nature within a subject are included in the
program. The program is actually a clubbing together of the things and for
getting a good view of the word program, it can be understood as the plan
document on a much wider scale than the planning document

3. Explain the limitations of Planning.

Answer The Disadvantages / Limitations of Planning.

(a) Internal: Within the control of business man

1. Time consuming Planning requires collection of information, its

analysis and interpretation which takes much time. This shows that
planning is time consuming.

2. Expensive Planning involves collection of data, their analysis

and interpretation that makes the planning process expensive

3. Non-availability of information Value of planning depends

upon the quality and accuracy of data collected. When reliable
information is not available, planning becomes useless

4. Probabilities Plans are based on estimates which are not exact.

Success of planning depends on accuracy of estimates.

5. Frustrating Planning sometimes can be very frustrating

because it requires an extremely detailed, careful and analytical
thought process

(b) External: Beyond the control of managers

 1. Natural calamities flood, earthquakes, etc.
2. Changes in market conditions Changes in fashion
3. Changes in technologies Replacement of simple typewriter by
electronic typewriter
4. Change in govt. Policies and rules Increase in excise duty
5. Due to Competitors policy Reduction in prices.

4. Examine the objectives of manpower Planning.

Answer - Four most important objectives of manpower planning are: 1.
Accurated estimates of manpower requirements, 2. inventorying of
personnel, 3. helpful in recruitment and selection and 4. achieving and
maintaining production level!

Manpower planning may be regarded as the quantitative and qualitative

measurement of labour force required in an organisation and planning in
relation to manpower. It may be regarded as establishing objectives to
develop human resources in line with broad objectives of the organization.

Main objects of manpower planning are enumerated as under:

1. Accurated Estimates of manpower requirements:

The most important object of manpower planning is to make as far as

possible correct estimates of future manpower requirements. The technique
of forecasting is very helpful in selecting right type of man for the right type
of job. Additional jobs are created by retirement, retrenchment, discharge,
demotion and separation etc. Forecasting also helps in minimising labour
costs.
2. Inventorying of Personnel:

Personnel inventorying is concerned with working details with regard to

present employees pertaining to their educational qualifications, professional
skill, proficiency in job and training received etc. The main object of
preparing the inventory is to know about the number of persons with varied
qualifications and skill etc. available in the organisation. This is helpful for
further expansion and modernisation of the concern.

3. Helpful in Recruitment and Selection:

Human resource or manpower management is immensely helpful in the

process of recruitment and selection also. It brings down the recruitment and
selection costs by pursuing sound procedures of recruitment and selection.

4. Achieving and maintaining Production Level:

Manpower planning helps in achieving and maintain production level in an

organisation. There is reduction in labour turnover, absenteeism and
accidents etc. These industrial hazards are properly estimated by manpower
management. These estimates in advance are helpful in maintaining desired
production levels.

Besides the above mentioned objects there are certain other objects of
manpower management also. These are bringing about industrial peace and
harmony, effective utilisation of manpower resources and undertaking
programmes for the development of employees.

5. A selection process involves a number of steps.What are they.

Explain the steps.
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6. Describe the methods of performance appraisal.

Answer the various methods of performance appraisal are as
follows,
Trait method This method is an ancient method of evaluation
and these are evaluated on basis of standard traits.
Ranking This is the oldest and simplest method of appraisal in
which the person is ranked against the performance of the rest
such as characteristic and Traits or on performance basis.
Paired comparison it slightly varies than ranking system. It is
designed to increase the value of use in the groups. In this each
person is compared with the other persons taking one at time.
Grading In this method, certain categories of abilities or
performance are defined well in advance and persons are put in
category depending on their traits and characteristics.
Forced choice method - this method contains a series of groups
of statements. The appraiser choses the statement based on their
characteristics or traits.
Critical incident method In this method only the critical
incidents are evaluated or the behavior related incidents of an
employee.
Graphic Rating Sale This method assesses the degree of
certain quantities required for a job. The central idea behind the
scaling is to provide the rater with a continuum representing
varying the degrees of a particular quantity.
25 x 4=100 marks