UNIT-1 (CONCEPTS OF MANAGEMENT)

1.(a) State the important characteristics of management. 5M

Task Setting: Every employee in the company has to work with specific task or work for the
developing of the company.
Planning For Operations: This involve the planning of operation for the accomplishment of
objectives or goals of the company, Especially it deals with (i) what work is to be done (ii)
How it is to be done (iii) Where it is to be done (iv) When it is to be done
Time and Motion Study: This deals with the measurement of exact time required for the
operation. Motion study involves studying the motion of the material, men and machine in
performing the job. Taylor recorded the time for both men and machine and found a method
for the reduction of time taken for the operations.
Scientific Selection and training: The selection of best talented worker should be based on
the scientific method.
Differential Piece rate system of wages: Taylor introduced this method to increase worker’s
efficiency and to receive higher incentives.
Standardization of Machines and Tools: For improving efficiency of the worker and to
improve the production, the company has to standardize the tools and procedure of the
operations.
Cordial Relation between Management and Workers: For achieving the specified
objective both management and workers should have good relation.
(b) Name and describe the various levels of management with their functions. 5M

As per the management there are three levels of managements. Among all the top
management have highest authority. The major functions of Top managements are as follows
Top Management:
Deciding Objectives of Organization: The objectives of the organization are decided by the
top management. The objectives will be normally profit, growth, marketing, distribution,
expansion of the organization etc.,
Policy Formation: Policies are formed to achieve organizational objectives.
Ex: Production policy deals with quality, variety, production planning etc.,
Marketing policy deals with advertising, promotion, publicity and pricing etc.,
Organizational Frame work: Top management frames the organizational structure for the
purpose of executing the plans
Utilization of Resources: For the execution of plans proper resources like men, material,
money etc., are needed
Controlling Organizational Operations: Different controlling techniques like budgetary
control, quality control etc are used for the organizational operations

Middle Management:
Middle level managements consists of departmental heads and other executive of different
departments.
Functions:
 Generally these people will implements the policies made by the top management
 Top management will have enough time to look after responsibilities
 They act like mediators for top and low level managements
 Develop and train the employees
 Low Level Management:
This level consists of supervisors, foreman. These people will have direct contact with the
workers. These people responsibility is to perform the works as per schedule. The overall
successes of the organization depend on these people only.
Functions:
 Supervise and control the works
 arrange necessary men, material, money for the workers
 Assign jobs for the workers
 provide good relation and discipline with workers
 motivate the workers

2(a) State and describe the Taylor’s principles of scientific management 5M

F.W. Taylor is considered to be “father of scientific Management”. According to him the
object of management should be to secure the maximum prosperity for employer and
employee. He adopted scientific methods to increase the productivity and greater efficiency in
production.

Task Setting: Every employee in the company has to work with specific task or work for the
developing of the company.
Planning For Operations: This involve the planning of operation for the accomplishment of
objectives or goals of the company, Especially it deals with (i) what work is to be done (ii)
How it is to be done (iii) Where it is to be done (iv) When it is to be done
Time and Motion Study: This deals with the measurement of exact time required for the
operation. Motion study involves studying the motion of the material, men and machine in
performing the job. Taylor recorded the time for both men and machine and found a method
for the reduction of time taken for the operations.
Scientific Selection and training: The selection of best talented worker should be based on
the scientific method.
Differential Piece rate system of wages: Taylor introduced this method to increase worker’s
efficiency and to receive higher incentives.
Standardization of Machines and Tools: For improving efficiency of the worker and to
improve the production, the company has to standardize the tools and procedure of the
operations.
Cordial Relation between Management and Workers: For achieving the specified
objective both management and workers should have good relation.

(b) State and describe the Fayol’s principles of management. 5M

Henri Fayol is considered as the father of the Administrative Management. He is the French
Industrialist who developed the administrative principles applicable for top level management.
He defined five management functions as Planning, Organizing, Commanding, Co-
coordinating and Controlling.
Principles of Management:
Division of Work: The effectiveness of any work depends on the Planning, Organizing,
Directing and Controlling. All the works may not be performed by a single person effectively.
Hence it needs division of the work based on their specialization in that field.
 Authority and Responsibility: As the management relates to the getting the things done
through others, It needs that the manager has to give orders to others for getting the work
done. At the same time he must responsible for the orders given by him. Hence manager
always needs authority to take decisions and responsibility without authority is no use.
Discipline: Discipline means obedience to the authority, sticking to the rules of the
organization and respect of higher officials. It always needs for the smooth operation of the
organization.
Unity of Command: Any worker must receive instructions from only one supervisor
otherwise it may create confusion among them
Subordination of Individual Interest to General Interest: In any business, an employee is
always interested in money, reorganization, satisfaction etc., Hence the administration has to
look after that and has to convert their individual interest into company’s interest.
Remuneration: Organization must pay remuneration to the employees based on their cost of
living, productivity and the capacity of the company. Always good remuneration improves the
worker’s efficiency, morality and loyalty to the company.
Centralization: If the subordinates are given more role and importance it is known as
decentralization otherwise it is centralization. The degree of centralization or decentralization
depends on the capacity of the subordinate, size of the firm, type of activities, organization
structure etc.,
Scalar Chain: There should be an hierarchy from the higher executive to the lower executive
for the proper communication i.e the information should pass through proper channel. But in
case of emergency it can pass directly.
Equity: It means the management must treat all the employees equally. Equity provides
healthy relation between the management and employees.
Stability: To motivate the workers the management should provide assurance for their job.
Then the employees will work without any fear about their job.
Initiative: Employees must be encouraged to initiate their work and execute accordingly
Esprit De Corps: There should be unity among the workers for achieving the organizational
goals. For that Fayol suggested two things (i) Divide and rule policy should be avoided (ii)
Use of verbal communication must be there to overcome misunderstanding
3(a) State and explain the Douglas Mc-Gregor’s Theory X and Theory Y 5M
These theories are related to work motivation and Management. ( A person refusing to work
(X) and a person cheering the opportunity to work (Y)). Mcgregor believed that self-
actualization was the highest level of reward for an employee. This motivates them and makes
the company reach the goals.
Theory X
It believes that the worker has little ambition, avoids responsibility, lazy and individual goal
oriented. The manager believes that the employees will be controlled either with punishments,
penalties or rewards depending on their performance. In this the managers will have close
look on the workers because they don’t believe workers. This is more effective when the
workers are not to motivate to perform. This is most suitable for the mass production with
quality.
Theory Y
In this the employees are internally motivated towards their job and are considered as one of
the most valuable assets of the company. In this the employees don’t need any close
supervision and they take responsibility towards the work to create quality products. Before
 the product preparation the employee must obtain permission from the manager, so that the
work stays efficient with company standard. This is suitable where the people are already
motivated
(b) Describe the Hertzberg’s Two factor theory of motivation. 5M

Frederick Herzberg, a behavioral scientist proposed a two-factor theory or the motivator-

hygiene theory. According to Herzberg, there are some job factors that result in satisfaction
while there are other job factors that prevent dissatisfaction.

Herzberg classified these job factors into two categories-

Hygiene factors- Hygiene factors are those job factors which are essential for the motivation
of workers at workplace. The hygiene factors symbolized the physiological needs which the
individuals wanted and expected to be fulfilled. These factors are as follows

 Pay - The pay or salary structure should be appropriate and reasonable.

 Company Policies and administrative policies - The company policies should not be
too rigid and must be fair and clear.

Ex: Flexible working hours, dress code, breaks, vacation, etc.

 Fringe benefits - The employees should be offered health care plans (Mediclaim),
benefits for the family members, employee help programmes, etc.
 Physical Working conditions - The working conditions should be safe, clean and
hygienic. The work equipment should be updated and well-maintained.
 Status - The employees’ status within the organization should be familiar and
retained.
 Interpersonal relations - The relationship of the employees with his peers, superiors
and subordinates should be good. There should be no conflict or humiliation element
present.
 Job Security - The organization must provide job security to the employees.

Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as

motivators. The motivational factors yield positive satisfaction in performing the job. These
factors motivate the employees for a superior performance and are called as satisfiers.
Motivational factors include:

 Recognition - The employees should be praised and recognized for their

accomplishments by the managers.
 Sense of achievement - The employees must have a sense of achievement i.e they
should get the fruit of the job.
 Growth and promotional opportunities - There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
 Responsibility - The employees must hold themselves responsible for the work. The
managers should give them ownership of the work.
 Meaningfulness of the work - The work itself should be meaningful, interesting and
challenging for the employee to perform and to get motivated.
4(a) Describe the Mayo’s Hawthrone experiments 5M
According to Elton Mayo, Taylor’s scientific management or Fayal’s administrative
management did not achieve complete production and work efficiency. This is also known as
human relation approach. Elton and his associates conducted Hawthorne Studies in
Hawthorne plant in Electric company and have the following conclusions.

 Employee Morale: Employee morale has great impact on the production. So

management has to treat the people with respect
 Group Attitude: To solve the managerial problems, management should understand
the group attitude and psychology of the employees.
 Management should satisfy the employees
 Encourage the group activities among the workers
 Management should reward, praise or recognition to the employees for their works
LIMITATIONS:
 In this only social factors are considered but not technology
 In the group activity of the workers conflict may arise among them
 In case of emergency quick decisions are needed but not based on all discussions
 This considers that only money satisfies all the workers.
(b) 5M
Describe the Maslow’s Hierarchy of human needs.

Human behavior is goal-directed. Motivation cause goal-directed behavior. It is through

motivation that needs can be handled and tackled purposely. This can be understood by
understanding the hierarchy of needs by manager. The needs of individual serve as a driving
force in human behavior. Therefore, a manager must understand the “hierarchy of needs”.
Maslow has proposed “The Need Hierarchy Model”.

Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier

model of human needs, often represented as hierarchical levels within a pyramid.

Needs lower down in the hierarchy must be satisfied before individuals can attend to needs
higher up. From the bottom of the hierarchy upwards, the needs are: physiological, safety,
love and belonging, esteem and self-actualization.

This five-stage model can be divided into deficiency needs and growth needs. First four needs
are often referred as deficiency needs (D-needs) and top level is known as growth or Being
needs (B-needs). The D-needs are to be tackled first. Ex: A person who is not having food for
longer time, will be hungry and won’t work until it is fulfilled.

Physiological needs - these are biological requirements for human survival, e.g. air, food,
drink, shelter, clothing, warmth, sleep. If these needs are not satisfied the human body cannot
function optimally. Maslow considered physiological needs the most important as all the other
needs become secondary until these needs are met.

Safety needs - These needs are also important for human beings. Everybody wants job
security, protection against danger, safety of property, etc.

Love and belongingness needs - After physiological and safety needs have been fulfilled, the
third level of human needs is social and involves feelings of belongingness. The need for
interpersonal relationships motivates behavior
 Ex: Friendship, intimacy, trust, and acceptance, receiving and giving affection and love.
Affiliating, being part of a group (family, friends, work).

Esteem needs - which Maslow classified into two categories: (i) Esteem for oneself (dignity,
achievement, mastery, independence) and (ii) The desire for reputation or respect from others
(e.g., status, prestige).

Maslow indicated that the need for respect or reputation is most important for children and
adolescents and precedes real self-esteem or dignity.

Self-actualization needs- These are the needs of the highest order and these needs are found
in those person whose previous four needs are satisfied. This deals with the desire to become
the most that one can be. This will include need for social service, meditation.

5 (a) “Management is the art of getting things done through and with the people” Comment 5M
This is the most popular definition of the management. The definition stresses on “Getting
Things Done” i.e getting the tasks or goals carried out. Management is not just philosophy but
performance orientation function. These people will get the work done from the employees of
the organization both managers and non-managers. Management gives authority and
responsibility to the people for getting the works done. The things will be done from
employees either individual or team work.
Normally for getting the work done by the people is really an art and it requires
different skills like conceptual skills, technical skills, administrative skills and social skill. For
attaining the goals the management requires planning, organizing, staffing, motivation and
direction. For achieving the goals and objectives of the company everybody has to contribute
to the company by individual and in group.
(b) 5M
Describe the systems approach to management
The management which unify all the managements and is known as ‘Systems Approach’.
The organization is considered as an open system which consists of sub systems and all are
inter-related and interdependent in hierarchy. There will be inter-relations in various
 functions like planning, organizing, directing and controlling.
Ex: Industry consists of sub-systems like production. Marketing, Finance and Accounting
etc.,
Following are the important features of systems approach to management:
 System approach considers the organization as a system consists of sub systems
which are interrelated to attain the goals of the organization.
 The management has to take care of its short and long term goals and should act as
market leaders in the dynamic, competitive environment.
 It uses the knowledge of different fields of study such as psychology, information
systems, economics etc. to improve interaction with its counterparts.
 System approach enables organization to frame policies that promote business and
social objectives.
 Decisions are made keeping in mind organization-environment interface.
 Focus on the entire system of operations

Limitations of System Approach:

 The way an organization actually works and solves problems has no appeal in the
theory.
 Relationship between system and sub-system has been defined but their inter-
dependence is not defined.
 Exact relationship between internal and external environment of the organization is
not defined.
 System approach fails to provide uniform approach to management.
 The principles framed by the management may not be same for all organizations.

6 10M
Explain the process of organization
Organization is an indefinable group of people contributing their efforts towards the
attainment of goal. Principles of management play an important role in achieving the
objectives. These principles will help in the planning and organizing. It helps in decision
making. The process of designing organizational structure involves the following steps.
Defining Objectives: The objective of every organization will be different from one to other
company.
Ex: A hospital’s main objective is to provide best health services but not of gaining profits.
Similarly an educational institution is to develop students in terms of all qualities.
Identification of activities: Organization structure is developed to achieve organizational
objectives like production of products, maximization of sales, rendering services
Grouping of Activities: Closely related activities are grouped together to form department,
divisions or sections. Such groups are called departmentation.
Ex: Activities related to finance and cost are clubbed to finance department, selling activities
are grouped to marketing departments.
Key departments and sub departments: Key departments are those which render key
activities and needs key attention. Ex: Finance, Marketing, Designing, Manufacturing
departments are key ones.
Assigning the Duties: Individuals or Group activity members are those who carries the
activities in the company. Hence each individual should be assigned to a job. While assigning
the jobs their characteristics, capabilities, quality, education etc., are to be taken care, so that
 right person will be assigned to right duty.
Delegation of Authority: In order to perform the duties, individuals are to be assigned to
specific authority. It creates a position of superior and subordinates at various positions in the
organization, so that the worker will know from whom he has to take orders and report.
Coordination System: Every department in the system should have coordination.
Ex: production department wants to create different variety of products whereas finance
department may oppose this due to limited resources.
Scalar Principle: The organization structure should consist of authority from top managers
to low managers. The authority will be in decreasing order from top to bottom. The orders
may be communicated through these levels which are called as chain of communication.
Unity of command: The employee should receive orders from only one superior otherwise
the employees may be confused.
Ex: if the Employee in production department is ordered by marketing department manager,
he will be in confusion whether to take the decision or not.
Span of Control: The number of employees present under a manager is called span of
control of the manager. Depending on the number of activities this span may vary.
Principle of Continuity: The principles are to be designed in such a way that organization
should be there for longer duration. It should also take present activities but also capable of
dealing with future activities.
Principle of flexibility: Organization should be flexible for the adoption of new changes if
needs.

7(a) 5M
Describe the principles of Organization.
Same as Answer 6.
(b) 5M
Describe the organizational structures.

There are majorly two types of organization structures i.e formal Organization and Informal
Organization structure
Formal Organization: It is deliberately created by the management for achieving objectives
of the organization. It is a frame work of authority-responsibility relationships and
communications. It is an official and rational structure.
Characteristics:
(i) It is deliberately created by the top management to achieve organizational objectives
(ii) It depends on the division of labor and efficiency in operation
(iii) Organization concentrate more on the performance of the job but not on the
individual’s performance
(iv) Every individual should respect the authority and responsibility
(v) Coordination among all the employees are well defined through rules and
procedures.
Informal Organization:
These groups are formed based on the personal and social relations among the people. These
groups are formed spontaneously based on their friendship, common interest and may be or
may not be related to the work.
Characteristics:
(i) These are formed spontaneously and are not well designed and well planned
(ii) These are created based on the similarities in their jobs, habits, languages, age
etc.,
 (iii) Members to these group is voluntary. One can be member in more than one group
(iv) Behavior of the members are controlled by group members only but not with the
norms of the organization

8 Explain Functional organization and write its merits and demerits. 10M
Organization structure is a network of relationship between various positions in the
organization. In this tasks are assigned along with proper authority.
Line or Scalar Organization:
It is an oldest type of organizational structure and is known as departmental or military type
organization. This is because in military bottom level people have to obey the orders of the
top officers. Here owner makes decision and will be communicated to all the department
heads like finance, production, marketing and sales. Each department heads are sole
responsible for their department from the selection of the employees, sales, raw materials,
purchase etc., production department especially contains foreman and he has to train all the
new comers and supervisions for the quality products.
Chief Executive (Owner)

Sales Manager Production Manager Finance Manager

Foreman Shop A Foreman Shop A Foreman Shop A

Workers Workers Workers

In this superior executes have more authority and responsibility on the subordinates who are
entirely responsible for their performances. No operation is under two bosses and
communications is always from bottom to the top.
Advantages:
Simplicity: Simple and easy structure to understand, establish and operate. Even the
employee knows for whom he is responsible.
Quick decision making: The manager can take decision quick decision as he is independent
and need not to consult any other
Responsibility: Clear cut responsibilities have been defined
Discipline: In this each position is under immediate direct control of supervisor and hence
easy to maintain discipline in the system.
Straight Communication: Communication is easy because the employee has to report to his
immediate superior only
Economical: As it doesn’t contain specialist, it is more economical
Limitations:
 As the manager doesn’t have specialists in his team, he himself have to perform
various operations which are not related to him.
 Managers may be overburdened with no time for planning, innovations and creativity
  Only certain people will be overloaded
 More chance of wastage of material because of insufficient knowledge of all the men
 It has no meaning of rewarding the employee
Suitability:
 This is more suitable for small scale industries
 When the work is simple and routine
 Sugar and Cement Industries
 Automatic system which doesn’t need any expert knowledge
 Area where more labor problem
LINE AND STAFF ORGANIZATION
The total organizational functions are classified into two ways. The production, Finance and
sales are called as Line functions whereas all other functions like Personal, Engineering and
legal advices etc., are called staff functions. Line functions directly and staff functions
indirectly affects the production. As the business develops more the problems of taxation,
labor and new technology adaptation is became necessary. Hence the specialists are needed to
tackle these things. These members can give advices to the line managers but cannot insist
them to implement.
Ex; A specialist in accountancy department will have authority over clerks in his department
but he may have relationship with production people and can give advices but can’t make
them to implement the same in production.
Advantages:
Relief to Top Executives: As separate specialist is there to look after various things, it
relieves burden on the managers and they can think innovatively for the quality products.
Expert Advice: Quality of decision improves by the managers as the availability of experts
Training of Personal: As every executive is in one field separately, he can give training to
the young staff to get expertise.
Flexibility: Line and staff organization is more flexible to the managers.
Limitations:
(i) The overhead cost is high because of high salaried staff
(ii) There may be conflict between managers and specialist persons
(iii) Tendency of putting responsibility on others increases
(iv) As staff persons are not responsible for the results they may not take the tasks
seriously
Suitability: Suitable for the large organizations but for smaller one.
 Chief Executive

Industrial Engineer (Staff) Research Engineer (Staff) Legal Advisor (Staff)

Sales Manager Production Manager Finance Manager

Foreman Shop A Foreman Shop A Foreman Shop A

Workers Workers Workers

FUNCTIONAL ORGANIZATION:
With growth and complexity of the business the need for the specialization increased to a
level that line and staff organization is also not sufficient. Hence functional organization is
evolved. Under this all the organization divides into number of functional areas and is
managed by a separate expert in that area.
Ex: Personal department deals with the process of recruitment, selection, placement and
training etc. Every department gives their requirements to the personal department
Similarly Every department gives their requirements to the purchase department and it deals
with the purchasing of their requirements.
In this type of organization ultimate responsibility lies on the top management like Chief
Executive, MD, G.M etc., because they control overall activities in the organization. The
chief managers require advices from sale, finance and works managers. The managers’ major
function is to frame suitable policies and put for the consideration of the chief executive.
These managers are responsible for their respective department.
Chief Executive

Finance Manager Production Manager Sales Manager

Design Engineer Production Engineer Maintenance Engineer Purchase Engineer

Foreman Foreman Foreman

Worker

Advantages:
 It relieve line executives of routine works and allows them for planning
 It provides expert advice and guidance to the line executive in the field of
technology, finance, personal etc.,
  Expert people not only give advices but also provides training for the personals
 With the different experts in their fields the organization will achieve very high level
of efficiency
Limitations:
 It increases the overhead cost due to high salaries paid to the experts
 Manager must be capable to coordinate activities of the line, staff and functional
managers
 It may give chance to have conflict between managers and experts

9(a) Describe the departmentation with their merits and demerits 5M

Departmentation is the process of breaking down a company into various departments so that
organizational objectives can be easily achieved. The departmentation can be obtained based
on the following
 Specialization: Departmentation allows to take benefit of specialization
 Expansion: One manager can supervise only few subordinates. Grouping of activities
and personal into department makes it possible for enterprise to grow and expand
 Responsibility Fixation: Departmentation allows fixation of responsibility
 Departmentation facilitates communication, coordination and control. It makes training
and development of executives simple.
 Through departmentation, large and complex organization is divided into small and
flexible and managerial departments. These enables easy administration control

(b) Describe the decentralization and their merits and demerits. 5M

Centralization and Decentralization are the two sides of the coin. In Centralization all the
authority is lies with the top management where as in Decentralization the authority is
distributed to low level management.
Factors deciding decentralization
Size of Organization: The size of the organization in terms of volume of sales, number of
plants and number of employees plays an important role in determining the extent of
decentralization.
Ability of low level Management: Certain talented low level executives are willing to work
in the department with their own abilities. They will handle the projects effectively. When
there is such executives in the departments, decentralization can be done.
Strategy of the Organization: The strategy of the organization depends on the type of
market, the technology environment and its competitors. These factors influence the amount
of decentralization.
Nature of Management functions: In large organizations, management functions like
purchasing, quality control, plant engineering, cost accounting, personal etc., are to be
decentralized whereas financial planning may be reserved to highest level for decision
making and control.
Degree of diversification: In a company having diversified product line, decentralization is
beneficial whereas for standard products centralization is beneficial.
Dispersal of Operation: When the operations of the company are diversified to different
locations then it needs decentralization because operating from one location is difficult. If the
activities of the company are local, then centralization is needed.
 Advantages:
Relieve top managements from work: Decentralization reduce the work load on the top
management. Hence they can spend greater time for policy making decisions than routine
decisions.
Reduces the problem of Communication: In big organizations transferring of the decision
taken takes more time to reach bottom people whereas in decentralization it reaches very fast
Speeds up Decisions: In decentralization, as the managers are nearer to the problems, they
will take the decisions fast for the development of their department rather than the top
management who is not in touch with the problem at all.
Provide competitiveness spirit in the organization: In decentralization, each department is
independent and every head wants to make his department profitable. Hence every body
works hard to make their department efficient.
Develops new managers: The young managers will be trained with the decentralization
Provides Diversification: With the growth of the company, various number of departments
are to be added which may be difficult for the single manager to handle. Hence
decentralization will improve the efficiency and diversification in the product design,
marketing etc.,
Motivation: With the decentralization the manager feel that they are motivated and satisfied
in their jobs.
LIMITATIONS:
Expensive: Each division or department need physical facilities, staff and trained personals.
There may be duplication of works or staff. Hence this may be costlier
Coordination is Difficult: As each department is independent, coordination among them is
difficult
Non-Uniformity: As each department is independent, they may form their own policies and
procedures. So there may not be uniformity in all departments
Incompetent: If managers are incompetent then decentralization is difficult

10 (a) Write the definition of Management and Administration 10M

Management is a distinct process consisting of planning, organizing, directing and
controlling performance to determine and accomplish the objectives by the use of people and
resource.
Administration is a part of management which deals with the planning, organizing, directing
and controlling. According to Williams Newman Administration is defined as “ The guidance,
leadership and control of the effects of grouping of individuals towards the same common
goal”
(b) Differentiate between Theory X and Theory Y

THEORY X
 The worker is lazy, dislikes to work and
will try to do little work
 To ensure the employees work the
managers will closely observe them
THEORY Y
 Employees are not lazy and if they get a
chance will do work which is good for
the organization
 The managers will provide an
opportunity for the workers to exercise
initiative and self-direction
  The managers will create strict rules
 The managers will define a system of
rewards and punishments to control
employees
(c) What are the basic dissimilarities between Authority and Power
AUTHORITY
(i) It is defined as the power to make
decision which guide the actions of
others
(ii) It is delegated to an individual by
superior
 Managers decentralize the authority
 Managers will provide necessary
resources to achieve organizational
goals.
POWER
(i) It is defined as the ability to influence a
person to act
(ii)It is earned by individuals with their
qualities

(iii)With the change in position, authority (iii)With the change in position, it doesn’t
of the people will also change change

(iv)It is well defined in organizational chart (iv)It is not defined and not presented in
organizational chart
(v)It serves basis for the formal (v)It serves for basis for the informal
organization organization

(d) Mention the Organizational Chart of your college

These charts show how the authority flows with superior and subordinate system relationships

Chairman

Vice Chairman (Optional)

Principal

Vice Principal (Optional)

HOD

Teaching Staff Non-Teaching staff Lab Staff Students

(e ) How an Accountability is important for an organization

Accountability is the obligation to carry out responsibility and exercise authority in terms of
performance standards set by the manager. This makes to be answerable for one’s activity.
This is very important in any organization because with this, the work assigned to a worker
will complete within specified time.
Ex: If a manager assigns a job to produce 100 products to a worker in a week, the worker is
accountable for that.