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MODEL QUESTIONS
PRINCIPLES OF MANAGEMENT
VELLAMMAL INSTITUTE OF TECHNOLOGY, CHENNAI
Submitted by
SURIANARAYANAN.R.
Department o Mana!ement Studie"
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PART A #$ MAR%S &
UNIT I
OVERVIEW OF MANAGEMENT
1. Define organization.
William Scott has defined organization as follows:
Organizations are collectivities of people that have been established
for the pursuit of relatively specific objectives on a more or less on a
continuous basis.
. What do you mean by sole proprietorship!
"n sole proprietorship# the business is owned by one man. "t is one
person in business on his own. $he owner supplies all the capital needed to
run the organization and produces only with the help of his own land# capital
and labor. $he owner enjoys the profits and suffers the losses in his business.
%. What is partnership!
&ccording to the "ndian 'artnership &ct# 1(%#
'artnership is defined as )the relationship between persons carrying
on a business to share profits of a business.*
+. Who are general partners!
&ll partners who are in the partnership are ,nown as general partners.
-. What do you mean by active partners!
'artners who ta,e active part in management and help in the
formulation of policies are ,nown as active partners. $hey are also ,nown
as wor,ing or managing partners.
.. What do you understand by sleeping partners or silent partners!
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'artners who just invest money and do not ta,e part in the
management are ,nown as sleeping or silent partners. Such people after
contributing their share of capital wa,e up only either to share the profits or
to li/uidate the business.
0. 12plain about nominal partners.
'artners who do not invest money and do not ta,e part in the
management but they lend their reputed name for the company*s reputation
are ,nown as nominal partners.
3. Who are the secret partners!
$hese partners ta,e part in the management secretly but nowhere their
names appear.
(. Write a short note on minor partners.
'eople who have not attained the age of 13 years and associate with
the business are ,nown as minor partners. Such partners can be allowed
only with the consent of other members. $heir liability is limited.
14. What are joint stoc, companies!
5oint Stoc, 6ompany is the voluntary association of individuals to
start and run the businesses. $he capital amount re/uired to start the
business can be collected from a large number of people. 6apital is divided
into large number of shares of measurable value.
11. State the two types of joint stoc, companies.
i. 'rivate 7imited company
ii. 'ublic 7imited company
1. 12plain about li/uidation in joint stoc, companies.
"t becomes difficult to run the company if liability becomes much
more than assets# when creditors press for payments of loans# etc. &t this
stage# the company has to be dissolved or wind up. $his is ,nown as
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li/uidation. 7i/uidation may be compulsory or voluntary or under the
supervision of court. "f the resources so not permit the payment# then the
assets of the company have to be sold and the amount is paid to the creditors
in proportion. "f some amount is left after the payments# then it is
distributed among the shareholders.
1%. What do you mean by amalgamation in joint stoc, companies!
&malgamation is the joining together of two businesses resulting in
more efficient operation because of economies of large scales#
administration and mar,eting economies. 8oth parties in a proposed
amalgamation can have some e2isting assets and liabilities which could be
set out in a balance sheet or statement of affairs at the date of amalgamation
along with certain adjustments.
1+. Define cooperatives.
6ooperative society is defined as the voluntary association of
individuals with limited membership and collectively owned fund#
consisting of wage earners and small producers# united on a democratic basis
for the establishment of enterprises under joint management for the purpose
of improving their business economy.
1-. 6lassify the different types of cooperative societies.
i. 'roducer*s 6ooperative society
ii. 6onsumer*s 6ooperative society
iii. 9ousing 6ooperative society
iv. :arming 6ooperative society
v. 6redit 6ooperative society
1.. 7ist out the three categories of public sector organizations.
i. Departmental organizations
ii. 'ublic corporations
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iii. ;overnment companies
10. 12plain some of the important characteristics of government departmental
organizations.
i. Such organization has direct control under the concerned ministry.
ii. Departmental organizations have to follow the rules and regulations of
the government.
iii. $he money re/uired for the departmental organizations would be
included in the budget.
iv. 'rofit of this organization goes to public e2che/uer.
v. 1mployees of this organization are government servants.
13. What is a public corporation!
& public corporation is fully owned by state government or central
government. "t is established by a special act of parliament with internal
autonomy. "nternal autonomy of the public corporation refers to the
freedom to appoint employees# freedom to fi2 salaries of employees and
freedom to ma,e decisions.
1(. What are the advantages of public corporations!
i. 6orporations are supposed to be better managed. $hese are e2pected
to provide better wor,ing conditions to the employees and cheaper
and better products to the customers.
ii. &s the corporations do not have profit motive# they are suitable for
managing public utilities at a reasonable cost.
iii. <uic, decisions can be possible.
iv. Since the corporations are not subjected to accounting and audit
control# it can utilize fund s with greater freedom.
v. =ore fle2ibility as compared to departmental organizations.
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vi. &s the management is in the hands of e2perienced and capable
directors and managers# these are managed more efficiently than
departmental organizations.
vii. "t provides economic foundations for increased opportunities for
employment.
4. What is a ;overnment company!
& ;overnment company# according to "ndian 6ompanies &ct 1(-.# is
any company in which not less than -1> of the share capital is held by the
central ;overnment or by any state ;overnment or partly by 6entral and
State ;overnments.
1.What is 5oint sector management or 5oint Sector ?nit!
$he participation by the ;overnment and 'rivate "ndustry in sharing
the capital and general management of the firm is set up. "n 5oint sector# the
;overnment invests the capital and private party loo,s after the efficient
wor,ing of the management of the industry. 12amples are 6ochin
@efineries# =adras @efineries# =adras :ertilizers and "ndian Oil.
. State any one definition of management.
&ccording to =c:arland# 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.
%.What is scientific management!
:rederic, Winslow $aylor has defined scientific management as follows:
Scientific management is concerned with ,nowing e2actly what you
want men to do and then see in that they do it in the best and cheapest way.
+.What do you understand by management science theory!
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=anagement science theory utilizes various /uantitative techni/ues to
ma2imize resources. <uantitative =anagement# Operations =anagement#
$otal <uality =anagement and =anagement "nformation System are
coming under =anagement Science $heory.
-. 12plain chain of command.
?nbro,en line of authority is ,nown as chain of command. $he line
of authority flows from top to bottom through the chain of command.
..Who is referred to as the :ather of Scientific =anagement! What is the goal
of Scientific =anagement!
:rederic, Winslow $aylor is ,nown as the ):ather of Scientific
=anagement*. $he main goal of Scientific =anagement is to replace rules
of thumb and trial and error methods by scientific methods# dividing the
wor,ers scientifically# selecting people based on scientific principles#
performing all the wor,s in accordance with principles of science.
0. What is the contribution of $aylor to the evolution of scientific
management!
$aylor noticed that managers were supposed to pic, up their
managerial s,ills through trial and error. 9e was against the use of rules of
thumb. 9e believed that productivity could be increased by the application
of scientific methods and increased pay of wor,ers.
3. 12plain scalar chain.
Scalar chain refers to the )chain of superiors* ranging from the highest
to the lowest ran,s. $he line of authority must flow from the top of the
organization to the bottom. $he line of authority should be very clear and
this must be clearly indicated in the organization chart.
(. What is esprit de corps!
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$his is the principle that )union is strength*. 9armony is the greatest
strength to an organization. $eam wor, should be encouraged. $he success
of a business activity depends on the unity of wor,.
%4. 7ist the functions of managers AorB management.
$he functions of managers AorB management are
i. 'lanning
ii. Organizing
iii. Staffing
iv. Directing
v. 6ontrolling
%1. Define &dministration.
Spriegal states that:
&dministration is that phase of a business enterprise that concerns
itself with the overall determination of institutional objectives and the
policies necessary to be followed in achieving those objectives.
=anagement# on the other hand# is an e2ecutive function which is primarily
concerned with carrying out broad policies laid down by the administration.
%. Distinguish between management and administration.
Admini"tration Mana!ement
1. &dministration lays down corporate
objectives and policies.
=anagement e2ecutes the
objectives and policies set by the
administration.
. &dministration resembles
legislative.
=anagement resembles e2ecutive.
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%. &dministration is associated with
top level management.
=anagement is associated with
lower level activities.
+. $he term administration is used in
governmental# military and
educational organizations.
$he term management is used in
profit ma,ing business
organizations.
-. &dministration is needed in long
term finance to ma,e decisions on
how to collect capital needed to
start or e2pand business.
=anagement is needed in short
term finance decisions.
.. &dministration determines the size
of the organization structure.
=anagement ma,es use of
organizational resources to
achieve organizational objectives.
0. &dministration e2ercises control
over management.
=anagement is accountable to
administration.
%%. 7ist the three essential s,ills according to Catz that managers need to
perform the duties.
Catz A1(0+B tal,s of three types of s,ills that are recognized by all
managers. $hese are the technical# the human and the conceptual s,ills.
i' Te()ni(a* "+i**,
"t is the ability to wor, with resources in a particular area of
e2pertise.
ii' -uman "+i**,
"t is the ability to wor, effectively as a group member and to build
cooperative effort within the team he leads.
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iii' Con(eptua* "+i**,
$his s,ill means the ability to see the organization as a whole and
it includes recognizing how the various functions depend on one
another.
%+. 7ist the roles of managers according to =intzberg.
=intzberg identified ten roles and the roles are classified into three
categories:
I' Interper"ona* ro*e",
i. :igurehead role
ii. 7eader role
iii. 7iaison role
II' Inormationa* ro*e",
i. =onitor role
ii. Disseminator role
iii. Spo,esperson role
III' De(i"ion ro*e,
i. 1ntrepreneur role
ii. Disturbance handler role
iii. @esource allocator role
iv. Degotiator role
%-.What are the schools of management thought!
i. Scientific management
ii. &dministrative management
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iii. 8ehavioral management
iv. =anagement science
v. Organizational environment
%.. What is 9awthorne effect!
$he improvement in productivity was due to social factors such as
morale# satisfactory inter relationships between members of a wor, group
and effective managementE a ,ind of managing that would understand
human behavior# especially group behavior and serve it through such
interpersonal s,ills as motivating# counseling# leading and communicating.
$his phenomenon is ,nown as 9awthorne effect.
%0. Define "nternational management.
"nternational management is an aspect of management that involves
collecting business and industrial operations in foreign countries and is
affected by cultural and national influences.
%3. What is joint venture!
"n joint ventures# a company in one country pools its resources with
another foreign company to produce and mar,et products and jointly share
profits and losses.
%(. Define foreign subsidiary.
:oreign subsidiaries are the wholly owned branches of a parent
company operating in foreign countries. "n foreign subsidiaries# a firm
invests in production operations in a foreign country. $he production and
mar,eting of products are done by through subsidiaries in a foreign country
that is wholly owned by the parent company. =any 5apanese automobile
companies have subsidiaries in ?. S.
+4. Define licensing.
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"n licensing# a company authorizes companies in foreign countries to
produce and or mar,et a given product within a specified territory in return
for a fee. "t helps the home company since it does not have to set up a
complete production and distribution set up in the host country.
+1.What do you mean by =ultinational 6orporations!
=ultinational 6orporations are large industrial organizations which
e2tend their industrial and mar,eting activities through a networ, of their
branches.
+. What are the types of =ultinational 6ompanies!
i. 1thnocentric companies
ii. 'olycentric companies
iii. @egiocentric companies
iv. ;eocentric companies
+%.What is 1thno 6entric Organization!
1thnocentric organizations provide emphasis on their home countries.
$he managers in ethnocentric companies practice ideas that are oriented
towards home country environment. $his form of organization is not
suitable for all types of business environment.
++.What is $heory F management!
$raditional 5apanese management practices include collective
responsibility# informal control and consensus decision ma,ing.
$raditional &merican management practices include individual
responsibility# formal control# mechanisms and individual decision ma,ing.
$heory F is the mi2ed management practices of 5apanese and
&merican practices and it includes individual responsibility# informal control
mechanisms and consensus decision ma,ing.
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+-. What is managing concept in :rance!
I' Le p*an,
;overnment*s planning at a national level is ,nown as 7e
plan. ;overnment provides cooperation and assistance to
:rench industries. $he involvement of government in
industries is more. =ost of the companies in :rance are owned
by government or aided by ;overnment. So# one in four
:rench employees are ;overnment servants.
II' Cadre,
:rench universities ma,e managers with better analytical
ability# independence and proficiency in synthesizing facts.
+.. State the factors influencing managing in &ustralia.
i. &ustralian managers must give importance to social and
political values.
ii. $hey are achievement oriented.
iii. $hey are able to wor, in ris, or uncertain environment.
+0. 6ompare the management practices in 5apan to those in the ?nited States.
.apane"e Mana!ement
Pra(ti(e"
US Mana!ement pra(ti(e"
1. 5apanese companies provide
more emphasis on lifetime
employment.
$here is no life time
employment.
. Decision ma,ing in 5apanese
companies is participative.
"ndividual decision ma,ing is
followed in ?S companies.
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%. "nformal control mechanisms
are used in 5apanese
companies.
:ormal control methods are
used.
+. 6ollective responsibility is the
main aspect of 5apanese
companies.
&merican management
practices include individual
responsibility.
+3.What is liberalization!
$he term liberalization refers to open mar,et conditions and they can
ta,e various forms namely
i. @eduction of tariff and nontariff barriers.
ii. Deregulation of domestic regulatory measures.
iii. 1nhanced transparency of trade policies.
iv. Simplification of customs procedures and practices.
+(. Define globalization.
;lobalization is defined as that integration of economy of one country
with worldwide economy with a view to eliminate supply bottlenec,s#
improving investment climate and improving /uality of products and
services provided to the ultimate consumers.
-4. State the various methods of globalization.
i. 12porting
ii. 7icensing and :ranchising
iii. 5oint ventures
iv. :ully owned manufacturing facilities
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v. &ssembly operations
vi. =ergers and ac/uisitions
vii. Strategic alliance
viii. 6ontract manufacturing
i2. =anagement contracting
2. 6ounter trade
-1. What is =anagement by 12ception A=81B.
=anagement by 12ception A=81B states that only significant
deviations from established standards should be brought to the notice of the
management.
-. 7ist out some economic factors which affect the global environment.
i. 1conomic development
ii. "nfrastructure
iii. @esource and product mar,ets
iv. 12change rates
v. Dature of economic system
-%. State the merits of globalization.
i. &llows for greater realization of potential.
ii. 1conomies of scale of operations.
iii. $echnological and productivity improvements through cross
border specialization.
iv. ?tilization of global factors of production and technology.
v. &llows for more productive applications of capital.
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vi. Worldwide increased standard of living.
vii. =a2imum rates of return on savings and investment.
-+. What are the different approaches of unified ;lobal management theory!
i. $he 1mpirical approach
ii. $he Systems approach
iii. Situational or contingency approach
iv. =erging motivation and leadership theories
v. Organization development approach
--. State the 0's in the mar,eting strategy.
i. 'roduct
ii. 'lace
iii. 'rice
iv. 'romotion
v. 'hysical evidence
vi. 'eople
vii. 'ublic @elations
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UNIT II
PLANNING
1. Define planning.
'lanning is a process by which a manager loo,s to the future and
discovers alternative courses of action. "n other words# planning is
anticipatory decision ma,ing. 'lanning is the process used by managers to
identify and select goals and courses of action of the organization.
. What is the purpose of planning!
i. $o determine the direction of an organization.
ii. $o provide a basis for team wor,.
iii. $o minimize wastages in the future.
iv. $o facilitate decisionEma,ing.
v. $o improve morale of the employees.
%. State the objectives of planning.
i. $o determine the direction of an organization.
ii. $o provide a basis for team wor,.
iii. $o minimize wastages.
iv. $o facilitate control.
v. $o adapt to the changes in environment.
vi. $o provide coordination.
vii. $o reduce ris, or uncertainty.
+. State the various steps involved in planning.
i. 8eing aware of opportunities.
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ii. 1stablishing objectives.
iii. 6onsidering planning activities.
iv. "dentifying alternatives.
v. 1valuating alternative courses of action.
vi. 6hoosing a best alternative course of action.
vii. :ormulating derivative plans.
viii. Dumerising plans by budgeting.
-. 6lassify the various types of plans used in planning.
i. =ission
ii. Objectives or goals
iii. Strategies
iv. 'olicies
v. 'rocedures
vi. @ules
vii. 'rograms
.. What do you mean by mission!
=ission is the organization*s purpose or fundamental reason for
e2istence. 1very organization must have a mission or purpose.
0. Why do you need a vision for an organization!
i. & vision defines the basic purpose or objectives of an
organization.
ii. "t has the power to inspire people.
iii. Successful vision guides for decision ma,ing.
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3. What do you mean by procedures!
'rocedures describe in detail# the steps to be ta,en in order to
accomplish a job. 'rocedures are chronological se/uences of re/uired
actions. $hey are called action guidelines.
(. Define the term )'lanning 'remises*.
'lanning premises are defined as the anticipated environment in
which plans are e2pected to operate. 'remises are the assumptions on which
plans are formulated.
14.What are objectives!
Objectives are the ends towards which the activities of an organization
are directed. Different organizations have different objectives. Objectives
are 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 longEterm or shortEterm objectives.
iv. Objectives should be specific and measurable.
v. Objectives are interdependent.
vi. Objectives must cover ,ey result areas.
1. State the benefits of objectives.
i. $here 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.
1%. What are the two approaches for setting objectives!
i' Top/do0n approa(),
$he top management determines objectives for subordinates.
ii' 1ottom/up approa(),
Subordinates help managers in setting objectives.
1+. What is the importance of setting organizational objectives in a modern
comple2 organization!
i. Objectives provide the basics for planning.
ii. Objectives facilitate coordination of wor,.
iii. Objectives motivate employees.
iv. Objectives provide the yardstic, to measure the performance of the
employees and hence better control.
1-. Define =8O A=anagement by ObjectivesB.
=8O A=anagement by ObjectivesB is a method whereby clear
objectives for every department# project and person are jointly set by
superior and subordinates. =8O integrates the organizational objectives
and individual objectives.
1.. What are the benefits of =8O A=anagement by ObjectivesB!
i. 1mployees can be motivated because they participate in the goal
setting process.
ii. 'erformance can be improved because =8O concentrates on
objectives.
iii. ?nnecessary efforts will be minimized because objectives are set
clearly.
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iv. =8O helps managers to e2ercise better control over employees.
10. What are the wea,nesses of =8O!
i. =8O involves too much paper wor, and holding of many meetings.
ii. =8O is a time consuming process.
iii. &n environment of poor employerE employee relations reduces =8O
effectiveness.
iv. :ailure to teach the philosophy of =8O wea,ens the =8O program.
13.What are the features of =8O!
i. 1mphasis on results rather than activities.
ii. &chievement of ma2imum performance.
iii. 9armonization of individual employee goals with the organizational
goals.
iv. $ranslation of overall objectives of an organization into objectives of
every department# every person and every project.
v. &ssessing performance of each employee or division and comparing
with planned performance.
vi. Delegation of authority and power from the top level management to
the lower level management.
vii. "nvolving people at all levels of the organization.
1(. State the re/uirements of =8O.
i. &pproval and support of top management.
ii. $eaching the philosophy and fundamentals of =8O to all
subordinates clearly.
iii. Setting objectives for both individual and division jointly by the
superior and subordinates.
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iv. "mplementing appraisal methods to evaluate the contribution of each
individual and every department.
v. "mplementing =8O at lower levels.
4. Define strategy.
Strategy is defined as the determination of longEterm objectives of an
organization# ma,ing the best choices for the future and allocating the
resources necessary to accomplish the objectives.
1. What do you mean by strategic planning!
Strategic planning is defined as the determination of longEterm
objectives of an organization# ma,ing the best choices for the future and
allocating the resources necessary to accomplish the objectives.
. What is grand strategy!
;rand strategy is the action plan by which a firm intends to achieve its
longEterm goals.
%. What is global strategy!
;lobal strategy is the action plan by which an organization intends to
achieve its long term goals in the international environment.
+. =ention the three levels of strategy.
i. 6orporate level strategy
ii. 8usiness level strategy
iii. :unctional level strategy
-. Distinguish between strategical and tactical planning.
Strate!i(a* p*annin! Ta(ti(a* p*annin!
1. 7ong range planning Short term planning
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. 1mphasis on analyzing the
future.
1mphasis on analyzing dayEtoEday
functions.
%. Developed by top level
management.
Developed by low level
management.
.. 6lassify the different types of strategies.
I' Grand "trate!y,
i. Stability strategy
ii. ;rowth strategy
iii. @etrenchment strategy
II' G*oba* "trate!y,
i. ;lobalization strategy
ii. =ultidomestic strategy
iii. $ransnational strategy
0. 7ist the five categories of corporate level strategies.
i. :orward vertical integration strategy
ii. 8ac,ward vertical integration strategy
iii. 9orizontal integration strategy
iv. 6oncentric diversification strategy
v. 6onglomerate diversification strategy
3. What are the four types of strategies in the $OWS matri2!
i. W$ strategy
ii. WO strategy
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iii. S$ strategy
iv. SO strategy
(. What are the four alternative categories under 86; matri2!
i. Star
ii. 6ash 6ow
iii. <uestion mar,
iv. Dog
%4. =ention 'orter*s five competitive forces in a company*s environment.
i. $hreat of new entrants
ii. $hreat of substitute products
iii. 8argaining power of buyers
iv. 8argaining power of suppliers
v. @ivalry among current competitors
%1. 7ist the various tools used for developing organizational strategies.
i. SWO$ analysis
ii. 86; matri2
iii. 'orter*s five forces model
%. What do you mean by situation or SWO$ analysis!
Situation analysis includes SWO$ G Strengths# Wea,nesses#
Opportunities and $hreats. $he situation analysis is important for analyzing
the competitive situation of the organization. SWO$ is a systematic
analysis that facilitates matching the e2ternal threats and opportunities with
the internal wea,nesses and strengths of an organization.
%%. Define policy.
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'olicy is a statement and predetermined guideline that provides
directions for decision ma,ing and ta,ing action. 'olicies may be based
upon a thorough analysis of objectives and it should be consistent with the
company*s mission and philosophy.
%+. Distinguish between policies and strategies.
Po*i(ie" Strate!ie"
1. 'olicies are the guidelines to
decision ma,ing.
Strategy is the long term view and
to see the big picture.
. 'olicies are formulated by top
and middle level management.
Strategic planning is made by top
level management only.
%. 'olicies are the means for
achieving organizational goals.
Strategy is concerned with
positioning the business in the
mar,et and establishing a
reputation with customers#
employers and other sta,eholders.
%-. What are the guidelines to be followed for effective policyEma,ing!
i. 'olicies as far as possible should be in writing.
ii. $hey should be clearly understood by those who are supposed
to implement them.
iii. $hey should reflect the objectives of the organization.
iv. 'olicies should be periodically reviewed.
%.. Distinguish between policies and objectives.
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Po*i(ie" Ob2e(ti3e"
1. 'olicies are formulated by the
top and middle management.
Objectives are set by the top
management only.
. 'olicies are standing plans.
Standing plan is developed for
an activity which is li,ely to be
repeated in future.
Objectives are single use plans.
Single use plans are developed for
an activity which is not li,ely to
be repeated in future.
%. $hey are the guidelines that
provided direction for decision
ma,ing.
Objectives are aims or goals i.e.
they are the ends.
+. $hey determine how the wor, is
to be done.
$hey determine what is to be
done.
-. 'olicies are the means for
achieving organizational goals.
Objectives are the focal points for
the efforts of the organization.
.. Organizational e2istence and
survival do not depend upon the
policies.
Organizational e2istence and
survival depends upon the
objectives.
%0. What is decision ma,ing!
Decision ma,ing is defined as the selection of a course of action
among alternative courses of action. Decision ma,ing should be rational.
Decision ma,ing involves a choice among alternatives.
%3. State any two decision ma,ing strategies.
i. Decision tree method
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ii. Operations research
iii. 8rea, even analysis
iv. Simulation or stochastic techni/ues
%(. What do you term )bounded rationality* in decision ma,ing!
"f people are having time and cognitive ability for ma,ing decisions# it
is said to be bounded rationality. $he concept of bounded rationality
attempts to describe decision processed in terms of three mechanisms:
i. Se/uential attention to alternative solutions: 'eople e2amine
possible solutions to a problem se/uentially.
ii. ?se of heuristics: & heuristic is a rule which guides the search
for alternatives into areas that have a high probability for
yielding satisfactory solutions.
iii. Satisfying: &n alternative is satisfactory if there e2ists a set of
criteria that describes minimally satisfactory alternatives.
+4. =ention the various types of decision ma,ing models.
i. 1conologic model or 1conomic =an model
ii. &dministration =an =odel or 8ounded @ationality =odel
iii. "mplicit favorite =odel or ;amesman =odel
+1. 7ist the forecasting techni/ues used for decision ma,ing.
i. 6onsumer survey method
ii. 12pert opinion ADelphiB method
iii. Sales force opinion method
iv. $est mar,et method
v. 6ontrolled e2perience method
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vi. $rend projection method
vii. 7eading indicators method
viii. @egression method
+. What do you mean by DSS!
Decision Support Systems are applied broadly to systems that aid
decision ma,ing by providing the answers to a series of )what if* /uestions.
Decision support systems include e2pert systems# natural language systems#
artificial intelligence systems and ,nowledge based systems.
+%. 7ist any four /uantitative forecasting techni/ues.
i. $rend projection method
ii. 7eading indicators method
iii. @egression method
iv. Simultaneous e/uation method
++. Define forecasting.
:orecasting is the statistical analysis of the past and current movement
on the given time series so as to obtain clues about the future pattern of
those movements. :orecasting means prediction of the future.
+-.What do you mean by group decision ma,ing!
"n large organizations facing comple2 problems# decisions are not
made by individuals# but decisions are made from a series of meetings in
which e2ecutives jointly approach problems. $he meetings are called as
conference committees# boards or staff meetings.
+.. State any two advantages and disadvantages of group decision ma,ing.
Ad3anta!e",
i. Hiewing of problems from several perspectives.
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ii. =ore alternative solution due to greater information and ,nowledge.
Di"ad3anta!e",
i. 6onsiderable wastage of time.
ii. Do one is responsible for decisions made.
+0. Define simulation.
Simulation is the process of building# testing and operating models of
realEworld phenomena through the use of mathematical relationships that
e2ist among critical factors.
+3. Describe the various decision ma,ing techni/ues.
I' Probabi*i"ti( or "to()a"ti( te()ni4ue",
i. 12pected value method
ii. Decision tree method
iii. Simulation techni/ues
II' Determini"ti( te()ni4ue",
i. Operations research
ii. 8rea, even analysis
iii. "nventory 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 of
wor,ing relationships between organizational members that allows them to
wor, together and to achieve organizational goals.
$hus organizing is
i. "dentifying and classifying the re/uired tas,s.
ii. ;rouping people into departments.
iii. Delegating authority and responsibility.
. Define organizational structure.
Organizational structure refers to the formal# established pattern of
relationships among the various parts of a firm or any organisation. $hese
relationships are formal implies that they are deliberately specified and
adopted and do not evolve on their own.
%. 7ist out the elements of organizational structure.
i. Division of labor
ii. Departmentation
iii. Span of control
iv. Delegation of authority
v. 6entralization and Decentralization
vi. :ormalization
+. What is division of labor!
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$he process of assigning various activities to different people who are
specialists in that area is ,nown as division of wor, or division of labor.
Division of wor, improves efficiency.
-. Write a short note about formalization.
:ormalization refers to the degree to which jobs within the
organization are standardized. "t helps the job incumbent ,now what is to be
done# when it is to be done# and how he or she should do it. :ormalization is
done through written policies# rules and regulations. "t helps managers
)manage by e2ceptions*. =anagers need to concentrate only on e2ceptional
cases# instead of paying attention to daily routine aspects of the wor,place.
.. 12plain departmentation.
Departmentation is a process which divides the entire organisation
into smaller# fle2ible and administrative units. Dividing the wor, and people
and grouping them on some logical basis is called departmentation.
Departmentation is a method of arranging activities to facilitate the
accomplishment organizational objectives.
0. 6ompare departmentation by function and product.
Fun(tiona* departmentation Produ(t departmentation
1. &ctivities are grouped according
to the common functions of
management.
&ctivities are grouped according
to the product or product lines.
. "t is suitable for organizations
dealing with a single product.
"t is suitable for large
organizations.
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3. Differentiate between functional and productImar,et organisation structure.
Fun(tiona* Stru(ture Produ(t5Mar+et "tru(ture
1. $he activities are grouped
according to functions of
management such as finance#
accounting# purchasing.
$he activities are grouped
according to the variety of
products or product lines.
. $his type of organisation
structure is most suitable at the
time of starting the organisation.
$his type of structure is suitable
when the organisation grows and
becomes larger in size.
%. :unctional structure is suitable
for organisations having a single
product.
'roduct structure is suitable for
organisations having multiple
numbers of products.
(. What are the advantages of product structure!
i. 'roduct line managers get broader e2perience.
ii. Decision ma,ing is faster.
iii. "t permits fast change in product line.
iv. "t permits growth and diversity of products and services.
14. What are the advantages of matri2 types of organisation!
i. "t efficiently manages large and comple2 tas,s.
ii. "t permits efficient utilization of resources.
iii. "t allows interaction among members of both product and functional
organization.
iv. "t improves the s,ills and broadens the ,nowledge of managers.
11. What are the disadvantages of matri2 types of organisation!
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i. "t re/uires high level of coordination.
ii. "t increases conflict between two managers.
iii. "t re/uires high levels of management s,ills.
iv. "t re/uires managers effective in human relations.
1.What is S8?!
& strategic business unit AS8?B is a division or subsidiary of a large
organization and it provides a distinct product or service and has its own
mission and goals.
1%.Define span of control in an organization.
Span of control refers to the number of persons a manager can control
effectively to achieve the goals of the organisation. "t is the function to
decide how many subordinates a manager can supervise.
1+.What is the difference between flat structure and tall structure!
F*at Stru(ture #6ide Span& Ta** Stru(ture #Narro0 Span&
1. Wide span results in more
delegation of authority.
Darrow span provides tight control
and close supervision.
. =anagers with special s,ills
must be essential.
=anagers with average s,ills are
enough.
%. =anager has a limited time to
ta,e a decision.
=anager has more time to ta,e a
decision.
+.
=anagers get overloaded.
=anager is free and he can thin, of
the future.
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1-. 1numerate the factors affecting span of control.
i. Dature of wor,
ii. 6ompetence and leadership ability of the manager
iii. 6apability of the subordinate
iv. 'lanning and standardization of wor,
1.. Define centralization and decentralization.
7ouis &. &llen has defined both the terms as# )6entralization is the
systematic and consistent reservation of authority at central points within an
organization. Decentralization applies to the systematic delegation of
authority in an organizationEwide conte2t.
10. State the various methods to be followed for ma,ing decentralization
effective.
i. 6entralized top policy
ii. &ppreciation of concept of decentralization
iii. Development of managers
iv. 6ompetition among units
v. Open communication
vi. 1ffective coEoperation
13. What are the advantages of decentralization!
i. "t reduces burden of the management so that it can focus more
attention on strategic management.
ii. "t encourages decision ma,ing and assumption of authority and
responsibility.
iii. "t facilitates the growth and diversification in the organization.
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iv. "t enables the department staff members to complete wor, early.
1(. State any four disadvantages of decentralization.
i. "t is difficult to have a uniform policy and procedure.
ii. $here is an increase in comple2ity of coordination of decentralized
organizational units.
iii. "f it is not followed properly# decentralization will create chaos in the
organization in the absence of proper control.
iv. $here is a possibility of duplication of wor,.
4. 6ompare delegation and decentralization.
De*e!ation De(entra*i7ation
1. "t is the process of devolution of
authority.
"t is the end result achieved by the
delegation.
. "t implies the relationship
between a superior and a
subordinate.
"t implies the relationship
between top management and
various departments or sections.
%. $he delegation control rests
entirely with the superior.
9ere# the top management
e2ercises only overall control and
delegates the authority for control
to the departmental heads.
+. "t is a must for management. "t is optional.
1. What is meant by delegation of authority!
Delegation of authority is the process that allows the transfer of
authority from superior to subordinates. Delegation is the process through
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which a manager assigns duties to employees and gives them authority to
carry out the tas,s.
. State the three important elements of delegation.
$he three important elements of delegation are
i. @esponsibility
ii. &uthority
iii. &ccountability
%. What are the guidelines for effective delegation!
i. Define assignments and delegate authority in light of results to be
achieved.
ii. Select right person.
iii. 1stablish ade/uate controls.
iv. 'rovide proper incentives.
+. What do you mean by responsibility!
@esponsibility is the duty or obligation of the subordinates to perform
the tas, as re/uired by the manager. 1ach employer having responsibility
should have commensurate authority to complete the job.
-. Differentiate between authority and responsibility.
&uthority is the right to influence others to act.
@esponsibility is the obligation to perform a tas,# function or
assignment.
.. Distinguish between authority and power.
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Aut)ority Po0er
1. &uthority is the right to give
orders.
'ower is to e2tract obedience.
. &uthority is the right to
command action by others.
'ower is derived from authority.
0. 6lassify the two types of delegation.
I' Forma* de*e!ation
i. 8ottomEup delegation
ii. 7ateral delegation
II' Inorma* de*e!ation
3. Differentiate formal and informal organisation.
Forma* or!ani"ation Inorma* or!ani7ation
$he relationship between
members in the organizational
structure is well defined.
$here is no formal relationship
between members.
"t has clear and definite
organizational structure.
"t has not clear organizational
structure.
"ndividual goals are consistent
with the organizational goals.
"ndividual goals may not support
organizational goals.
(. Why is informal organisation needed!
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$he speed of communication flow through the informal channels is
faster than formal channels. =any tas,s which cannot be accomplished by
formal organisation can be completed by informal organisation. "nformal
organisation encourages cooperation between people. "nformal organisation
provides job satisfaction# personal attachment and status to wor,ers. $hus#
informal organization is needed for any organisation.
%4. Dame the different types of organization structure.
i. 7ine organizational structure
ii. 7ine and staff organizational structure
iii. :unctional organizational structure
iv. 6ommittee structure
%1. Define line organization.
&ccording to 7unday#
7ine organization is characterized by direct lines of authority flowing
from top to bottom of the organizational hierarchy and the lines of
responsibility flowing in an opposite but e/ually direct manner.
%. ;ive two e2amples of line organization.
i. =ilitary
ii. Small enterprises
%%. What do you mean by line and staff organisation!
"n line and staff organisation# the line authority remains the same as it
does in the line organisation i.e. the authority flows from top to bottom and
the line e2ecutives perform the major functions# staff support and advise the
line e2ecutives.
%+. State the different types of staff in line and staff organisations.
i. 'ersonnel staff
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ii. Specialized staff
iii. ;eneral staff
%-. What are the merits of line and staff organization!
i. $here are good chances for growth of the business because the entire
tas, is divided systematically.
ii. $he discipline and control is better in such organisations.
iii. &s the resources are utilised fully# wastages are eliminated.
%.. What is the necessity of staff authority in line organizations!
&t some point of growth of the organisation there will be a need for
specialists to provide advice and support to the organisation. 9ence# staff
authority is needed in line organizations.
%0. What is )line relationship* in line and staff organizations!
"n line and staff organisations# the line authority remains the same as
it does in the line organisations i.e. the authority flows from top to bottom
and the line e2ecutive perform the major functions# staff support and advise
the line e2ecutives.
%3. What are the limitations of line and staff!
i. 'roduction cost in line and staff organisation is very high because of
the high salaries of staff e2ecutives.
ii. Staff e2ecutives do not have any authority. So# they are unable to
implement a policy or plan.
iii. 6onflict will be more in such organisation because authority and
responsibility are not clearly defined.
iv. 7ine and staff organisation is not suitable for small organizations.
%(. What is meant by functional organisation structure!
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;rouping activities according to the functions of management is
,nown as functional organisation structure. $he basic organizational
functions are finance# accounting# purchasing# production and mar,eting. "n
functional organisation# a staff e2ecutive is given authority over other people
according to his specialization. 1ach function should be controlled by one
specialist of the concerned field.
+4. What is meant by functional authority!
"n functional authority# each function is controlled by one specialist of
the concerned field. & staff e2ecutive is given authority over other people
according to his specialization. $he specialist is an e2pert in a particular
field and wor,ers will be controlled by him.
+1. What are the characteristics of functional organisation!
i. 1ach area is divided according to functions.
ii. 1ach function is performed by specialists.
iii. :unctional organizations cover only specific tas, areas.
iv. "t covers only specific tas, areas
+. 1numerate the advantages of functional organisation.
i. Specialization
ii. <uic, training of wor,ers
iii. Scope for research and growth of the industry
iv. 12pert guidance reduces the accidents and wastage of materials.
+%. What is meant by committee organisation!
& committee is a tool for the development of ideas to solve problems
and recommendations of policy and procedure. "t brings better plans and
policies for operations and results in better cooperation in their e2ecution.
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$he final decision to put committee recommendations into action rests with
the line.
++. Define staffing.
Staffing function is defined as filling and ,eeping filled positions in
the organizational structure. $his is done by identifying number of
employees re/uired# analyzing the number of employees presently wor,ing#
recruiting# selecting# placing# promoting# appraising# planning the careers of#
compensating and training of both candidates and e2isting employees so that
they can accomplish their tas,s effectively and efficiently.
+-. 7ist out the functions of staffing in 9@D.
i. 9uman resources are utilised optimally.
ii. S,illed and talented people are procured by staffing.
iii. Staffing helps individuals to achieve their personal goals.
iv. Staffing improves employerEemployee relationships.
+.. What do you mean by career strategy!
$he career plan which is designed to utilize strengths and overcome
wea,nesses in order to ta,e advantage of career opportunities is ,nown as
career strategy.
+0. Define recruitment.
&ccording to 1dwin 8. :lippo#
@ecruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the organization.
+3. What are the internal sources of recruitment!
$he internal sources of recruitment are
i. $emporary wor,ers
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ii. 'romotion
iii. $ransfer
iv. &pprentice
v. Dependents
vi. 'ast employees
+(. Define selection.
Selection is the process of choosing the most suitable wor,er for the
job. $he aim of selection process is to determine whether a candidate meets
the /ualification for a specific job and to choose the candidate who is most
li,ely to perform well in the job.
(. 7ist out the various steps involved in selection process.
i. 'reliminary screening of applicants
ii. 'reliminary interview
iii. &pplication blan,
iv. 6hec,ing references
v. 1mployment tests
vi. 'sychological tests
vii. 1mployment interview
viii. :inal approvalI selection
i2. 'lacement
2. "nduction
-4. State the various psychological tests used in selection process.
i. "ntelligence tests
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ii. 'roficiency or aptitude tests
iii. 'ersonality tests
iv. Hocational tests
v. &chievement tests
-1. What are the various types of interviews!
i. Structured interview
ii. ?nstructured interview
iii. Semi structured interview
iv. Stress interview
v. ;roup interview
vi. Depth interview
-. What do you mean by interview!
$he interview# one of the most helpful tools in the selection process
provides the opportunity for meeting the applicant and observing his verbal
ability# appearance# general personality and attitude as well as chances to get
together and to tal, it over.
-%. Define induction.
"nduction is concerned with introducing or orienting a new employee
to his wor,Egroup# supervisor and the organisation. "t is the beginning of the
fusion process which helps integration between the organisation goals and
the personal goals of the new employee. "t generates a feeling of
belongingness to the organization.
-+. State the purpose of induction.
i. $o build the new employee*s confidence in the organization.
ii. $o promote a feeling of belonging and loyalty to the organization.
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iii. $o eliminate false impressions about the organizations from the new
employee*s mind.
iv. $o give the new entrant the information he needs such as location of
restrooms# cafeteria# wor, time# leave rules# etc.
v. $o foster a close relationship between the old and new wor,ers and
supervisors.
--. Define career development.
6areer development is the systematic process of growth and
development by which individuals develop their interests and abilities.
-.. 7ist out the various stages involved in career development.
i. 12ploratory stage
ii. 1stablishment stage
iii. =aintenance stage
iv. Stage of decline
-0. Define performance appraisal.
&ccording to Spriegal#
'erformance appraisal is the process of evaluating the employee*s
performance on the job in terms of the re/uirements of the job.
-3. ;ive any two characteristics of performance appraisal.
i. 'erformance appraisal is a continuous process by which evaluations
are periodically made.
ii. "t is a systematic evaluation of employee*s strengths and wea,nesses
in terms of job re/uirements.
-(. State any two objectives of performance appraisal.
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i. $o assess the ability of the employee and to ma,e use of his talent in
the present job.
ii. $o prove the justification of different rates of wages to different
wor,ers according to their abilities.
.4. State the various types of performance appraisal.
i. 6omprehensive review or approval
ii. 'rogress or periodic reviews
iii. 6ontinuous monitoring
.1. Write a short note on periodic appraisals.
'eriodic appraisals are conducted at regular intervals. $he periodic reviews
are conducted to identify problems and barriers in ,ey result areas. $hese reviews
improve the communication between superior and subordinates.
.. ;ive the definition of training.
&ccording to 1dwin 8. :lippo#
$raining is an act of increasing the ,nowledge and s,ills of an employee for
doing a particular job. $raining involves the development of s,ills that are
necessary to perform a specific job. "ts purpose is to achieve a change in the
behavior of those trained and to enable them to do their jobs better.
.%. What are the reasons for training needs!
i. $echnology changing at a fast pace
ii. <uality conscious customers
iii. ;reater productivity
iv. Stable wor,force
v. "ncreased safety
vi. 8etter management
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.+. What are the various types of training!
i. "nduction or orientation training
ii. 5ob training
iii. &pprenticeship training
iv. "nternship training
v. @efresher training or retraining
vi. $raining for promotion
.-. What is meant by retraining! Why is it needed!
@etraining is the process of providing training to employees who have
long been in the service of an organisation and have underwent training earlier.
@etraining becomes necessary when the ,nowledge and s,ills of employees
become obsolete due to rapid change in technology.
... State any two objectives of training.
i. $o prepare wor,ers for higher jobs by developing advanced s,ills in
them.
ii. $o ma,e the wor,ers handle materials and machinery efficiently.
.0. Define the term )onEtheEjob training*.
?nder this method# the wor,er is given training at the wor,place by his
immediate supervisor. "t is suitable for imparting s,ills that can be learned in a
relatively short period of time. "t is based on the principle of )learning by doing* in
an actual wor, environment.
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UNIT I8
DIRECTING
1. What is meant by the term directing!
Directing may be defined as the process of instructing# guiding and
inspiring human factors in the organization to achieve organization
objectives. "t is not only issuing orders and instruction by a superior to his
subordinates but also including the process of guiding and inspiring them to
wor, effectively.
. State the important characteristics of directing.
i. Directing is an important managerial function through which the
management initiates actions in the organization.
ii. "t is performed at all levels of management. 1very manager in the
organization performs his duties both as superior and a subordinate.
iii. "t is a continuous process and it continues throughout the life of the
organization.
iv. "t has dual objectives. "t aims at getting wor, done by the
subordinates and the other hand# to provide superiors opportunities for
the same more important wor, which their subordinates cannot do.
%. =ention any two scope of directing in the organization.
i. Directing integrates the employee*s individual efforts to ma,e it
effective to achieve organisation objectives# since each individual*s
performance 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.
=otivation# leadership and communication are the elements of
directing. $herefore# directing provides the way to utilize capability
of the individual and attempts to get ma2imum benefits out of them.
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+. 7ist down the human factors in managing.
i. =ultiplicity of roles
ii. "ndividuality
iii. 'ersonal dignity
-. Define creativity.
6reativity is defined as the ability to produce new and useful ideas
through the combination of ,nown principles and components in novel and
non obvious ways. 6reativity e2ists throughout the population# largely
independent of age# se2 and education.
.. =ention the steps involved in creative process.
i. Saturation
ii. 'reparation
iii. :rustration and incubation
iv. "nspiration or illumination
v. Herification
0. 7ist out some of the characteristics of creative people.
i. SelfEconfidence and independence
ii. 6uriosity
iii. &pproach to problems
iv. Some personal attributes
3. Define innovation.
"nnovation means the use of new ideas. $hese new ideas may be
developed through creativity. "n an enterprise# innovation can mean
developing a new product or service# or a new way of doing things.
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"nnovation is not only relevant to highEtech enterprises but also crucial for
oldEline# traditional companies which may not service without the infusion
of innovation.
(. State the situations that prompt the adoption of innovation.
i. $he une2pected event# failure or success.
ii. $he fact that the difference between what is assumed and what really
is.
iii. $he process or tas, that needed improvement.
iv. 6hange in the mar,et or industry improvement.
v. 6hange in the mar,et or industry structure.
vi. 6hange in human population.
vii. 6hange in meaning or in the way things are perceived.
viii. "nnovation based on ,nowledge.
14.9ow are problems solved by creative tool!
6reativity tools are designed to help you devise# creative and
imaginative solutions to problems. "t helps you to spot opportunities that
you might otherwise miss.
11.What is a S6&='1@ tool!
S6&='1@ is a chec,list that helps us to thin, of changes. We can
ma,e to an e2isting product to create a new one. $hese changes can be used
either as direct suggestions or as stating points for lateral thin,ing.
1. What does S6&='1@ stand for!
i. SE SubstituteE components # materials# people
ii. CE 6ombine G mi2# combine with other assemblies or services#
integrate
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iii. AE &daptE alter# change function# use part of another element
iv. ME =odifyE increase or reduce in scale# change shape# modify
attributes Ae.g. colorB
v. PE 'ut to another use
vi. EE 1liminateE remove elements# simplify # reduce to core functionality
vii. RE @everseE turn inside out or upside down# also use of reversal
1%. What is meant by reframing matri2!
@eframing matri2 is a simple techni/ue that helps to loo, at business
problems from a number of different viewpoints. "t e2pands the range of
creative solutions that you can generate. $he approach relies on the fact that
different people with different e2perience approach problems in different
ways.
1+. State the function of mind mapping tool.
$his tool is similar to concept fan e2cept loo,ing one step bac, from
main topic. & mind map consists of a central word or concept with - to 14
main ideas that relate to that word# similar to creating a spiderEweb.
1-. =ention the use of DO "$ process for creativity.
DO "$ is a process for creativity. DO "$ bundles aspects of creative
thin,ing together# introduce formal methods of problem definition and
evaluation. $hese help to get the best out of the creativity techni/ues. DO
"$ is an acronym that stands for:
i. DE Define problem
ii. OE Open mind and apply creative techni/ues
iii. IE identify best solution
iv. TE $ransform
1.. What are the steps involved in simple2 tool!
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i. 'roblem finding
ii. :act finding
iii. 'roblem definition
iv. "dea finding
v. Selection and evaluation
vi. 'lanning
vii. Sell data
viii. &ction
10. Distinguish between creativity and innovation.
Creati3ity Inno3ation
1. 6reativity is the ability to
visualize# generate and
implement new ideas.
$he effort of an individual or an
organization to use new ideas to
develop new products or new uses
for e2isting products or services is
,nown as innovation.
. 6reativity is essential to ma,e
decisions or planning.
"nnovation is essential to ma,e
new products and to satisfy their
customers.
13.Define brainstorming.
8rainstorming is a techni/ue of developing many creative solutions to
a problem. "t wor,s by focusing on a problem# and then coming up with
many radical solutions to it. $he essence of brainstorming is a creative
conference# ideally of 3 to 1 people meeting for less than an hour to
develop a long list of -4 or more ideas. Suggestions are listed without
criticism on a blac,board or newsprint as they are offeredJ one visible idea
leads to others. &t the end of this session# participants are as,ed how the
ideas could be combined or improved.
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1(. Differentiate innovation and invention.
"nnovation means the use of creative ideas.
"nvention means really finding new things which are not already
available.
4. 9ow can harmonizing objectives be achieved!
i. =utual trust
ii. 6ooperation and understanding
iii. Wor,er*s participation in management
iv. 8alancing the objectives of the organisation with those of individuals
1.Define )multiplicity of roles*.
"ndividuals are not only the productive factor in management*s plans.
$hey are members of a social system of many organisations. $his refers to
the )multiplicity of roles* played by individuals in organisations.
. Define motivation.
"n the opinion of Stephen '. @obbins#
)=otivation is the willingness to e2ert high levels of effort toward
organizational goals conditioned by the effort ability to satisfy some
individual need*
%.Distinguish between motivation and satisfaction.
Moti3ation Sati"a(tion
1. =otivation is the process of
inspiring and actuating the
wor,ers to accomplish the
objectives of the organization.
Satisfaction is the end result of
motivation. "t is the happiness that
comes after motivation.
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. =otivation leads to higher levels
of productivity.
Satisfaction ma,es changes in the
behavior of employees. &fter
attaining the goals# everyone gets
happiness.
+. =ention the importance of motivation.
i. 'roper utilization of human resources possible since it inspires
employees to ma,e best possible use of different factors of
production.
ii. 'roper motivation improves the efficiency of operation.
iii. =otivation creates a willingness on the part of wor,ers to do the wor,
in a better way.
-. State the different types of motivation.
i. 'ositive motivation
ii. Degative motivation
iii. 12trinsic motivation
iv. "ntrinsic motivation
..What is power motive!
"ntrinsic motivation is called as power motive. "ntrinsic motivation is
available at the time of performance of wor,. $hese motivations provide a
satisfaction during the performance of the wor, itself. Some of the intrinsic
motivations are praise# recognition# responsibility# esteem# power# status#
participation# etc.
0.Define morale.
=.S. Hiteles defines morale as an attitude of satisfaction# with a desire
to continue in and willingness to strive for the goals of a particular group or
organisation.
3. What are the factors determining the morale of a wor, group!
i. & feeling of togetherness
ii. Deed for a clear goal or objective to be achieved
iii. 12pectation of success towards the attainment of the goal
iv. :eeling of each member within the group that he has a meaningful
tas, to perform for achieving the goals
v. Supportive and simulative leadership
(. =ention the various factors involved in using motivational techni/ues.
i. =oney
ii. 'articipation
iii. <uality of wor,ing life
%4. State the different theories of motivation.
i. =c;regor*s $heory K and $heory L
ii. $heory F
iii. =aslow*s hierarchy of needs theory
iv. 9erzberg*s motivationE hygiene theory
v. =c6lelland*s needs theory
vi. 12pectancy theory
vii. 1/uity theory
viii. S,inner*s behaviouralistE reinforcement theory
i2. &lderfer*s 1@; theory
2. 6arrot and Stic, approach of motivation
%1. =ention the two categories of motives.
$he two categories of motives are:
i. Primary need": 'hysiological re/uirements such as food# sleep# water and
shelter
ii. Se(ondary need": Self esteem# status# affection# accomplishment and
affiliation with others
%. Distinguish motivators and hygiene factors.
-y!iene a(tor",
&ccording to 9erzberg# maintenance or hygiene factors are necessary to
maintain a reasonable level of satisfaction among employees. $hese factors do not
provide satisfaction to the employees but their absence will dissatisfy them.
$herefore# these factors are called dissatisfiers. 9erzberg identified some
maintenance or hygiene factors as
i. 6ompany policy and administration
ii. $echnical supervision
iii. "nterpersonal relations with subordinates
iv. Salary
v. 5ob security
vi. 'ersonal life
vii. Wor,ing conditions
viii. Status
i2. "nterpersonal relations with superiors
2. "nterpersonal relations with peers
Moti3ator",
=otivational factors create satisfaction to the wor,ers at the time of presence
but their absence does not cause dissatisfaction. 9erzberg identified some
motivational factors as
i. &chievement
ii. @ecognition
iii. &dvancement
iv. Opportunity for growth
v. @esponsibility
vi. Wor, itself
Since these factors increase level of satisfaction in the employees# these can be
used in motivating them for higher output.
%%. ;ive the meaning of social needs.
Social needs are for love# friendship# e2change of feelings and grievances#
recognition# conversation# belongingness# companionship# etc. Social needs tend
to be stronger for some people than for others and stronger in certain situations.
%+. State the =aslow*s hierarchy of needs.
=aslow viewed human needs in the form of hierarchy. $he hierarchies of
needs are
i. 'hysiological needs
ii. Safety needs
iii. Social needs
iv. 1steem needs
v. Self actualization needs
%-. Describe the relationship of hygiene factors# motivation factors and job
enrichment.
$he factors which give rise to satisfaction are called motivation factors.
$hey include recognition# achievement# personal growth and challenging wor,.
$he factors which give rise to dissatisfaction are called hygiene factors.
$hey include salary# wor,ing conditions# and company policy and job security.
$he motivation factors are related to job content. So job enrichment is used
to improve motivation factors. $he hygiene factors are more related to
environment rather than job content.
%.. 7ist the three types of basic motivating needs proposed by =c6lelland.
i. Deed for power
ii. Deed for affiliation
iii. Deed for achievement
%0. What are the two assumptions made on e/uity theory!
i. "ndividuals ma,e contributions for which they e2pect certain rewards.
"nputs include such things as the individuals past training and
e2perience# special ,nowledge# personal characteristics# etc.
Outcomes or rewards include pay# recognition# status# prestige# etc.
ii. "ndividual compares his inputEoutcome ratio with the inputEoutcome
ratio of other members of his level or status in the organisation. "f the
individual feels that his ratio is e/ual to that of others# there is e/uity.
$herefore# he feels happy and gets motivated. "f the ratio is
significantly less than those of others# the individual feels underpaid
and frustrated. "f the ratio is significantly more# the individual feels
overpaid and guilty. 9e is li,ely to reduce his input of effort to create
e/uity. 1/uity relationship can be e2pressed by
Outcomes by a person M Outcomes by another person
"nputs by a person "nputs by another person
%3. State any two merits of e/uity theory.
i. $his theory ma,es managers realize that e/uity motive tends to be one of the
most important motives of the people in the organization.
ii. :eelings or perceptions in e/uity are important factor in wor, setting.
=anagement should ta,e necessary steps to develop the perceptual s,ill of
the people.
%(. Define theoryEK.
=c;regor*s theory GK is concerned with sets of assumptions about human
behavior. $heoryE K assumptions are:
i. 1mployees are inherently lazy and will avoid wor, if they can.
ii. $hey lac, ambition and disli,e responsibility.
iii. $hey must be controlled# directed and threatened with punishment to
achieve organizational objectives.
iv. $hey are by nature resistant to change and they are not very bright.
+4. What are the two important assumptions made on L theory!
i. Wor, is as natural as play or rest. $he average human being has the
tendency to wor,.
ii. 12ternal control and threat of punishment are not only means of
reaching the objectives of organisation. =an will have selfEdirection
and control. 8y this# organizational objectives can be achieved.
+1. 6ompare $heory K and $heory L.
T)eory 9 T)eory :
1. $heory K is pessimistic and rigid. $heory L is optimistic# dynamic and
fle2ible.
. 'eople will never li,e to do wor,
and they lac, ambition and disli,e
responsibility.
'eople li,e wor,ing. Wor, is as
natural as play or rest for them. $hey
accept responsibility under proper
conditions.
%. $hey must be controlled# threatened#
directed with punishment to achieve
organizational objectives.
$hey do not have to be controlled or
directed so long as they are
committed to the organizational
objectives.
+. $hey are by nature resistant to
change and not very bright.
'eople are able to e2ercise
imagination and creativity in the
solution of organizational problems.
+. =ention any two leadership /ualities.
AOrB
What are the four basic ingredients of leadership s,ill!
i. P)y"i(a* trait": &ctivity# energy# appearance and height.
ii. Inte**i!en(e and abi*ity trait", 5udgment# ,nowledge# intelligence and
ability.
iii. Per"ona*ity trait", SelfEconfidence# selfEcontrol# enthusiasm# selfE
monitoring# creativity# innovative# genuineness and originality.
iv. 6or+/re*ated ()ara(teri"ti(", &chievement drive# tas, orientation# drives
for responsibilities and initiative.
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v. So(ia* ()ara(teri"ti(", Supervisory ability# cooperativeness# tactics#
diplomacy# popularity# prestige.
+%. What are the basic ingredients of leadership s,ill!
i. $he ability to use power.
ii. $he ability to understand people having different motivation at
different times and in different situations.
iii. $he ability to inspire the followers to do wor, more.
iv. $he ability to develop an organizational climate conducive to
responding and wor,.
++. Who is a leader!
7eader is one who guides or influences the behavior of others. 'eople who
are guided or influenced are called the followers.
+-. 12plain leading.
7eading is the process of instructing# counseling# guiding and motivating the
human factor to achieve organizational goals effectively.
+.. Define leadership.
7eadership is the process where a person e2erts influence over others and
inspires# motivates and directs their activities to achieve goals. 7eadership is the
dynamic process whereby one individual in a group is not only responsible for the
group*s result but actively see,s the collaboration and commitment of all the group
members in achieving group goals.
+0. =ention the various types of leadership styles on the basis of authority.
i. &utocratic leadership
ii. Democratic or participative leadership
iii. 7aissezEfaire leadership
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iv. 8enevolent autocratic leadership
v. Supportive leadership
+3. Differentiate between autocratic and democratic leadership.
Auto(rati( *eader")ip Demo(rati( *eader")ip
1. &utocratic leader is called )$heory
K* leader.
Democratic leader is called )$heory
L* leader.
. Decision ma,ing is centralized and
no /uic, decisions are possible.
Decentralized decision ma,ing and
slow process of decision ma,ing.
%. 'unishment and threats are used. @ewards and involvement are used.
+. "t is more efficient under short run
and emergency conditions.
"t is efficient in the long run.
+(. Define autocratic leadership.
&utocratic leadership is authoritative# tas, oriented and restrictive.
&utocratic leader accomplishes tas,s by threatening or punishing his subordinates.
9e maintains a highly critical and negative relation with his subordinates.
-4. Why is leadership essential in an industrial organization!
i. $o secure cooperation among employees.
ii. 6reating confidence in the minds of employees.
iii. $o provide a good wor,ing climate.
iv. $o motivate the followers to do wor, more.
-1. 7ist out the theories of leadership.
i. $rait theory
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ii. 8ehavioral theories
iii. Situational or contingency theory
-. What do you mean by legitimate power!
7egitimate power is the influence based on the manager*s authority resulting
by their management position in the organization*s hierarchy. :or e2ample#
parents# teachers# police# etc. have legitimate power only when their authority is
accepted in the positions they held.
-%. State the characteristics of a laissezE faire leader.
7aissezE faire leader gives complete freedom to the group and he does not
provide any leadership. 9e assumes the role of just another member of the group.
9e does not establish any policy or procedure to do the job. 1ach member of the
group is left alone. 7aissezE faire leadership can function effectively if the
employees are sincere and devoted to wor,.
-+. Distinguish between a leader and a manager.
Leader Mana!er
1. 7eader leads people. =anager manages things.
. 7eader can use hisIher informal
influence.
=anagers hold formal positions.
%. 7eaders create a vision and inspire
others to achieve this vision.
=anagers achieve results by directing
the activities of others.
+. 7eader possesses nonEsanctioned
influencing ability.
=anager enjoys formal designated
authority.
-. 7eader inspires enthusiasm. =anager engenders fear.
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--. =ention the importance of leadership.
i. =otivating employees
ii. 7eader develops team wor,
iii. 8etter utilization of manpower
iv. 6reating confidence to followers
v. Directing group activities
vi. 8uilding morale
vii. =aintaining discipline
-.. State something about wea,ness of trait theory.
i. $he trait theory did not classify the most important traits and least important
traits.
ii. $he trait theory does not mention the particular traits or characteristics that
separate leaders from nonEleaders.
iii. $here is no direct relationship between personal traits and success of leader.
iv. $he same traits cannot be applied to every situation.
v. $rait theory does not distinguish between traits which are re/uired to ac/uire
leadership and traits which are needed to maintain leadership.
vi. $rait theory does not analyze the behavioral patterns.
-0. 7ist out few leadership traits.
i. 7eadership based on use of authority
ii. =anagerial grid
iii. 7eadership as a continuum
iv. =ichigan studies
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v. Ohio state university studies
vi. 9arvard university studies
-3. State 9ouse*s pathE goal approach.
7eaders are effective because of the influence on followers* motivation#
ability to perform and their satisfaction.
-(. What are the advantages of democratic leadership!
i. 8etter decisions can be made because ideas and suggestions of employees
are considered in decision ma,ing.
ii. 6reativity# ,nowledge and e2perience of subordinates can be used in
decision ma,ing.
iii. 'eople get job satisfaction and morale.
iv. $wo way communications improve the understanding between superior and
subordinates.
v. "ndividual abilities can be developed through participation.
vi. Subordinates feel more committed to organizational objectives. $here is less
resistance to managerial actions.
.4. State a few functions of leaders.
i. 7eader develops team wor,.
ii. 7eader is an appropriate counselor.
iii. 7eader is a representative of subordinates.
iv. 7eader uses power properly.
v. 7eader uses time well.
.1. 7ist out the different types of power.
i. 7egitimate power
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ii. @eward power
iii. 6oercive power
iv. @eferent power
v. 12pert power
.. What is noise in a communication system!
&nything which affects the communication process is ,nown as noise.
"t may be in the sender# the transmission or the receiver stage. "f anyone is
affected# the proper communication will not reach the receiver. $o ensure
effective communication# we have to provide noiseless environment. "n
addition to this# the effectiveness of communication must be chec,ed by the
sender by feedbac,. "t is done for chec,ing the information whether it is
correctly reached or not. 12amples of noise are environment# faulty
encoding# interruptions in the channel# inattention# faulty decoding and
incorrect gestures or postures.
.%. Define communication.
6ommunication is the process of transmitting ideas# facts# opinions
and feelings to others. 6ommunication is a mutual interchange process that
occurs between two or more persons.
.+. Define effective communication.
$he communication after removing the barriers in communication
process and channels is ,nown as effective communication. When the
message sent by the sender to the receiver is understood by the receiver in
the same sense# it is also called effective communication.
.-. 8ring out the benefits and drawbac,s of electronic media in communication.
1eneit",
i. :aster than conventional methods of communication.
ii. 6ommunication over long distances is possible.
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iii. 'roductivity will be more.
iv. "n telephonic conversation# manager can clarify doubts and he can come to a
conclusion.
v. <uality of transmission is high.
Dra0ba(+",
i. "nitial e/uipment cost is very high.
ii. 1/uipment fault directly affects communication.
iii. Delay may occur due to heavy traffic in the networ,.
iv. <uality of information is less compared to other electronic media.
... =ention the different types or forms of communication.
I' 1a"ed on (ommuni(ation *o0,
i. Downward communication
ii. ?pward communication
iii. 9orizontal communication
iv. Diagonal communication
II' 1a"ed on ()anne*,
i. :ormal communication
ii. ;rapevine or "nformal communication
III' 1a"ed on e;pre""ion,
i. Written communication
ii. Oral communication
iii. Don verbal communication
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.0. 7ist a few suggestions for managers to overcome barriers to communication.
i. @egulate the flow of information
ii. 1ncourage feedbac,
iii. Simplify the language
iv. 7isten actively
v. 6onstraints negative emotions
vi. ?se nonverbal cues
vii. ?se the grapevine
.3. =ention the elements of communication process.
i. SenderIsource
ii. 1ncoder
iii. $ransmission channel
iv. @eceiver
v. Decoder
.(. State the characteristics of oral communication.
i. Oral communication involves conversation.
ii. "t can be made through telephones# intercoms or dictating machines.
iii. Oral communication can be informal.
iv. "t can be planned or accidental.
04. Define nonEverbal communication.
DonEverbal communication is neither in an oral format nor in a written
format and it does not involve words. Smile# gesture# body language# facial
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e2pressions# physical appearance and a fist can be considered as a nonEverbal
communication.
01. 7ist out the important electronic media which is useful for communication.
i. $elecommunication
ii. $elephone answering machines Avoice mailB
iii. :acsimile A:&KB =achines
iv. $eleconferencing
v. 6losed 6ircuit $elevision Systems
vi. "nternet
vii. 1lectronic =ail systems
viii. 1lectronic typewriters
i2. 1lectronic 8ulletin 8oards
2. 6omputers A=ain frame# mini and personalB
2i. 6ellular telephones
0. 7ist any four methods of nonEverbal communication.
:acial e2pressions# eye contact# dress# posture# gestures# handsha,e#
pro2emics# chronometry# etc. are some of the methods of nonEverbal
communication.
0%. State the need for communication.
i. 8asis for planning
ii. 8asis for decision ma,ing
iii. $o perform managerial functions effectively
iv. $o facilitate coordination among wor,ers
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v. $o develop understanding between superiors and subordinates
vi. $o motivate wor,ers
0+. Dote down the various communicating networ,s.
i. Simple chain networ,
ii. Wheel or star networ,
iii. )L* networ,
iv. 6ircular networ,
0-. Differentiate single and multiple channel networ,s.
Sin!*e ()anne* (ommuni(ation Mu*tip*e ()anne* (ommuni(ation
1. $he communication is allowed on
only one path called as line
authority. "t is simply referred as
through proper channel.
$he communication is allowed in
more than one path.
. 6ommunication flow is slow. 6ommunication flow is faster.
%. 1asy to maintain# orderly in nature. 'otential problems may occur.
+. =iscommunication is reduced. =iscommunication is high.
0.. State the advantages of oral communication.
i. "t enables the communicator to see the immediate response of the receiver.
ii. $his provides immediate feedbac,.
iii. 'eople can as, /uestions and clarify points.
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iv. & meeting with superior may give a feeling of importance to the
subordinates.
v. "t develops a friendly environment# cooperation and team spirit.
vi. "t is more suitable under emergency conditions.
00. What are the barriers involved in effective communication!
i. 7ac, of planning
ii. Semantic distortion
iii. Selective perception or filtering
iv. :ear and emotions
v. Distrust and threat
vi. $iming of communication
vii. Overloading of communication
viii. 7oss by transmission and poor retention
i2. Status symbols
2. 'oor listening and premature evaluation
2i. 'oorly e2pressed messages
2ii. ?nclarified assumptions
2iii. :aulty organisation
2iv. 8arriers in the international environment
03. State the important rules for effective communication.
i. 6larify your ideas before communicating
ii. 12amine the true purpose of communication
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iii. 6onsider the physical and human setting in which communication will ta,e
place
iv. 6onsult with others# when appropriate# in planning communication
v. 8e mindful of the nonverbal messages you send
vi. $a,e the opportunity to convey something to the receiver
vii. :ollow up the communication
viii. 6ommunicate for tomorrow as well as today
i2. 8e sure actions support communication
2. See, not only to be understood but to understand
0(. Why is management by wandering around considered effective
communication!
& good management always wants to minimize the conflict with effective
communication. :or e2ample# negative communication# blaming communication#
superior communication# dishonest communication and selective communication
can be easily avoided by wandering around considered effective communication.
34. 7ist out the different types of grapevine.
i. Single chain grapevine
ii. ;ossip grapevine
iii. 'robability grapevine
iv. 6luster grapevine
31. Define organizational culture.
Organizational culture can be defined as a pervasive underlying set of
beliefs# assumptions# values# shared feelings and perceptions which influence the
actions and decisions ta,en by the organizations. $he same distinguishes one
organization from another.
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3. =ention the different types of cultures.
i. Dominant culture and subculture
ii. Strong and wea, cultures
3%. What do you mean by dominant culture!
& dominant culture is mar,ed by a ser of core values that are shared by a
majority of the organizational members. "t gives a macro view of an organization*s
personality. "t guides the dayEtoEday behavior of employees.
3+. Write a short note on strong culture.
& strong culture is characterized by the organization*s core values being
intensely held and widely shared. $he more intensely the core values are shared#
the stronger the culture is. $he degree of sharedness depends on two factors:
orientation and rewards. "n order for people to share the same cultural values#
orientation programs are organized to tell the new comers about the organization*s
philosophy and method of operation. @eward may be in the form of promoting
employees who hold core values which help everyone understand core values.
3-. State any two functions of culture.
i. 6ulture provides shared patterns of cognitive perceptions or understanding
about the values or beliefs held by the organisation.
ii. "t provides a boundary that creates distinctions between one organisation and
another. "t helps to identify members and nonEmembers of an organisation.
3.. What are the sources of culture!
i. Stories
ii. @ituals
iii. Symbols
iv. 7anguages
30. Define cultural diversity.
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& variety or multiformity in race# ethnicity# language# tradition# culture#
morality and religion e2isting within a community# organization# or population is
,nown as cultural diversity. Diversity is the unification of cultures# providing
reasons why we are more ali,e than dissimilar. $he coe2istence of different
ethnic# gender# racial# and socioeconomic groups within one social unit is also
,nown as cultural diversity.
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UNIT 8
CONTROLLING
1. Define controlling.
6ontrolling is the process of chec,ing# regulating# verifying or ma,ing
adjustments to ,eep things on trac,. 6ontrolling is the process by which
managers ta,e preventive or corrective action to ensure that the
organization*s mission and objectives are accomplished effectively and
efficiently.
. State any five types of critical control point standards.
i. 'hysical standards
ii. 6ost standards
iii. 6apital standards
iv. @evenue standards
v. 'rogram standards
vi. "ntangible standards
vii. ;oals as standards
viii. Strategic point control
%. What are the three types of control!
i. :eed forward control
ii. 6oncurrent control
iii. :eedbac, control
+. Write a short note on feed forward control.
:eed forward control identifies and prevents problems before they
occur. "t is the control before an activity commences. "t prevents
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anticipated problems. :eedEforward control ensures that input /uality is
high enough to prevent problems when the organisation performs its tas,s.
-. State the principle of preventive control.
$he principle of preventive control can be stated as follows:
)$he higher the /uality of managers and their subordinates# the lesser will be
the need for direct controls.*
.. What do you mean by concurrent control!
6oncurrent control gives immediate feedbac, on how inputs are
converted into outputs. 6oncurrent control allows managers to correct
problems as they occur.
0. What is feedbac, control!
"n feedbac, control# corrective action is ta,en after the damage
occurs. :eedbac, control is gathering information about a finished activity#
assessing that information and ta,ing corrective actions to improve similar
process in the future. "t is the process of adjusting future course of action on
the basis of information about past performance.
3. What are the disadvantages of control!
i. 6ontrol is e2pensive and timeEconsuming process.
ii. 9uman behavior and employee morale also cannot be measured.
(. Distinguish between feed forward control and feedbac, control.
Feed or0ard (ontro* Feedba(+ (ontro*
1. :eed forward control occurs
before a problem arises.
:eedbac, control occurs after a
problem is over.
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. :eed forward systems monitor
inputs into a process and input
/uality is high enough to prevent
problems.
:eedbac, control system
measure outputs and ta,e
corrective measures to improve
similar processes in the future.
%. $he e2ample for feed forward
control is a cash budget made by
financial manager. 6ash budget
is prepared for the ne2t year*s
cash flow.
$he e2ample for feedbac,
control is inspection and testing
of products. &fter the test
results# corrective actions can be
ta,en.
+. "t avoids wastages and improves
product /uality.
"t results in more wastage.
14. What do you mean by critical control points!
6ritical control points are the standards against which the actual
performance is to be measured. 1ffective control re/uires attention on
critical control points to evaluate the actual performance.
11. Define benchmar,ing.
8enchmar,ing is the process of identifying# learning and adopting
outstanding practices and processes from any organization anywhere in the
world to help an organization improve its performance.
1. 7ist out the different methods of benchmar,ing.
i. "nternal benchmar,ing
ii. 6ompetitive benchmar,ing
iii. :unctional benchmar,ing
iv. ;eneric benchmar,ing
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1%. Define budget.
8udget is a /uantitative statement of the plan for a specified period of
time in the future# most typically a period of one year. 8udget is a
consolidated statement prepared prior to a definite period of time for the
purpose of obtaining a given objective.
1+. What is budgetary control!
8udgetary control is the establishment of budget relating the
responsibilities of e2ecutives to the continuous comparison of actual with
budgeted results either to secure by individual action of the objective of that
policy or to provide a basis for revision.
1-. Write some objectives of budgetary control.
i. "t aims at the ma2imization of profits.
ii. $o plan and control the income and e2penditure of the organization.
iii. $o provide an ade/uate wor,ing capital.
1.. State any two benefits of budgetary control.
i. 8udgets help management to loo, at the success or failure of past
budgets# isolate errors and analyze their causes.
ii. 8udgets serve as a means of coEordination. 8udgets integrate the
various activities of the organization.
iii. 8udgets help to minimize waste and unproductive use of financial and
other resources. $hey help to ,eep e2penses under control and to
increase profit.
iv. 8udgets motivate employees because employees will ,now their
responsibility and standards by which their performance can be
evaluated.
10. Write the limitations of budgeting.
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i. OverEbudgeting results in rigidity and confusion.
ii. 8udgets are based on the forecasts or historical data. "naccuracy in
the forecast will affect the budget.
iii. & budget can not reveal various inefficiencies of a manager.
iv. 1stablishing budgetary control in an organisation is very e2pensive
and it re/uires money# time and efforts.
13. State the two methods of budgeting.
i. FeroEbase budgeting
ii. 'erformance budgeting
1(. What do you understand by zeroEbase budgeting!
FeroEbase budgeting re/uires the management to ta,e a fresh loo, at
all programmes and activities each year rather than preparing budgets on the
basis of last year*s budget. $he zeroEbase budgeting is constructed from a
zero base. "n zeroEbase budgeting# last year*s budget allocations are not
considered as a basis for current year*s budget. "n zeroEbase budgeting# a
comprehensive analysis is made every time when a new budget is prepared#
based on the changed importance of different variables in the situation. "n
zeroEbase budgeting# the ,ey element is futureEobjective orientation of past
objectives.
4. Define performance budgeting.
'erformance budget is input or output budget or costsIresults budget.
"t is mainly used in government. 'erformance budgeting controls and
coordinates the use of resources for a specified period.
1. What are the classifications of budgets!
i. :unctional budgets
ii. $ransaction types
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iii. &ctivity types
iv. $ime interval basis
. =ention the various types of functional budgets.
i. Sales budget
ii. 'roduction budget
iii. =aterial budget
iv. 7abor budget
v. =anufacturing overheads budget
vi. &dministrative overhead budget
vii. Distribution overhead budget
viii. 6ash budget
%. 9ow do you classify budgets on the basis of time!
i. 6ontinuous budget
ii. 'eriodic budget
+. State the types of transaction budgets.
i. Operating budget
ii. 6apital budget
-. ;ive e2amples for activity level budgets.
i. :le2ible budget
ii. :i2ed budget
iii. =aster budget
.. What do you mean by master budget!
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&ll the functional budgets are collected into one budget ,nown as
master budget. =aster budget is a statement of budgeted profit and loss
together with a projected balance sheet. $he master budget incorporates all
the functional and operational budgets such as sales budget# production
budget# material budget and overheads budget# etc.
0. What do you understand by )fle2iEbudgets*!
:le2iEbudget is otherwise ,nown as variable budget. :le2ible budget
reflects the changes in e2penditure as a result of changes in volume of
production.
3. Write some advantages of fle2ible budgets.
i. :le2ible budget is a useful tool for controlling costs.
ii. "t is more realistic and practical.
iii. "t traces the impact of various levels of activity on profits.
(. What are the steps for the effective implementation of budgetary control!
i. Support of top management
ii. :le2ibility
iii. 8udget education
iv. 'articipation
%4. What are the factors which will be considered for the production budget!
i. 'roduction stability
ii. 'lant capacity
iii. $ime
iv. Sales re/uirements
%1. What is direct labor budget!
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81
7abor budget provides details about labor re/uirements in /uantity
with estimated costs. 7abor budget is the forecast of direct and indirect
labor re/uirements to meet the demands of the company.
%. What are the data re/uired for preparation of sales budget!
i. 'ast sales data
ii. 'lant capacity
iii. :inancial resources available
iv. @aw material available
%%. What is cash budget!
6ash budgets are prepared after the completion of all the functional
budgets. 6ash budgets are the total sum of all the functional budgets in
monetary terms. $his budget gives an estimate of the anticipated receipts
and payments of cash during the budget period.
%+. What is fi2ed budget!
& fi2ed budget is a budget designed to remain unchanged. :i2ed
budget does not change with changes in activities. :i2ed budgets can be
prepared for a small period of time. :i2ed budget is a budget designed to
remain unchanged irrespective of the level of activity actually attained.
%-. What are the steps involved in FeroEbased budgeting AF88B process!
i. Decision pac,age
ii. @an,ing
iii. &llocation of resources
%.. 12plain the significance of F88.
i. F88 is also an educational process that can promote the development of
the management team.
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ii. =anagers tend to evaluate in their operations# efficiency and cost
effectiveness not only during the budget cycle but also throughout the
operating cycle.
%0. 9ow do use personal observation of budgetary control!
=anagers observed their subordinated characters# attitudes and s,ills.
=ista,es committed by the wor,ers can be corrected by the manager
directly.
%3. What is critical point control!
$he points selected for critical process is called critical points. $he
principle of critical point control is one of the most important control
principles states. $he effective control re/uires an attention to those factors
critical to evaluate the performance against plans.
%(. What is brea,Eeven analysis!
8rea,Eeven analysis is a method of determining the relationship
between total revenues and total costs at various levels of production so as to
establish a brea,even point.
+4. State some of the advantages of brea,Eeven analysis.
i. 8rea,Eeven analysis provides the relationship between cost# output and
profit relationship.
ii. "t is helpful in forecasting profits.
iii. "t is helpful in selecting the best product mi2.
+1. What is the interErelationship between planning and control!
$he management process begins with planning and ends with control.
$he planning determines standards for performance. & control helps in
achieving them.
+. What is =anagement by 12ception A=81B!
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=anagement by 12ception A=81B states that only significant
deviations from established standards should be brought to the notice of the
management.
+%. Write some advantages of management by e2ception!
i. $his is used to identify important problems.
ii. "t reduces the unnecessary burden of the top management.
iii. "t provides a better utilization of managerial talent and ,nowledge.
++. Who are the users of financial statements!
i. Shareholders
ii. 6reditors
iii. 1mployees
iv. $rade unions
v. =anagers
vi. 1conomists
vii. =embers of parliament
viii. S18"
i2. ;overnment departments
2. $a2 authorities
2i. :inancial institutions
2ii. 6ommercial ban,s
+-. What are the limitations of financial statements!
i. $he data given in these statements are only appro2imate.
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ii. 6urrent price changes are not considered for valuing the assets of the
business.
iii. DonEmonetary factors are ignored while preparing the financial
statements.
iv. "nformation is incomplete.
v. <ualitative information is ignored.
+.. What do you mean by balance sheet!
& balance sheet is the statement which sets out the financial
conditions of a business company. 8alance sheet contains profit and loss
amount which will give vital information about the financial position and
operation of the company. & balance sheet is also described as a statement
showing the sources and application of capital. "t is a statement# not an
account.
+0. Write the format of a balance sheet.
X Ltd. Balance sheet as on 31
st
Dec. 1998
Capita* and
*iabi*itie"
Amount #R"'& A""et" and
property
Amount #R"'&
6apital EEEEEEEEEEEEEE :i2ed &ssets EEEEEEEEEEEEEE
@eserves and
surplus
EEEEEEEEEEEEEE "nvestments EEEEEEEEEEEEEE
7ong term
liabilities
EEEEEEEEEEEEEE 6urrent &ssets EEEEEEEEEEEEEE
6urrent EEEEEEEEEEEEEE =iscellaneous EEEEEEEEEEEEEE
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liabilities and
provisions
asset
EEEEEEEEEEEEEE
EEEEEEEEEEEEEE
EEEEEEEEEEEEEE
EEEEEEEEEEEEEE
+3. ;ive the importance of a balance sheet.
i. $he balance sheet is considered to be a more important document than
the profit and loss account.
ii. $he balance sheet gives a clear picture of the financial position of the
business.
iii. "t reflects the result of all recorded accounting transactions since the
enterprises is promoted.
iv. "t is a cumulative record of the progress of the business.
+(. Define asset.
&sset is the cost which represents the e2pected future economic
benefits to the business.
-4. What are fi2ed assets!
:i2ed assets are those assets used in the business permanently.
12amples of fi2ed assets are buildings# machinery.
-1. What do you mean by current assets!
6urrent assets are assets which are reasonably e2pected to be realized
in cash. 12amples of current assets are cash in ban,# D.D.
-. Define liabilities.
7iabilities represent obligations which re/uire a settlement in future.
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86
-%. What are fi2ed liabilities!
$he liabilities that are payable only on the termination of business are
,nown as fi2ed liabilities. &n e2ample of fi2ed liabilities is paid up capital.
-+. What do you understand from current liabilities!
$he liabilities that are payable within a year or due date are ,nown as
current liabilities. 12amples of current liabilities are bills payable# short
term ban, overdraft.
--. What do you mean by cash flow statement!
& cash flow statement shows the impact of transactions on cash
position of the firm and includes all transactions on cash position of the
company. $he cash flow statement analyses the source and uses of cash in
the company.
-.. Write a short note on income statement.
$he income statement is also ,nown as profit and loss account. "t
performs a report recording# such as change in income# e2penses# profits and
losses as a result of business operation during the year. "t summarizes the
revenues and e2penses of the period.
-0. State some of the ,ey words of cost control.
i. &ssets
ii. :i2ed assets
iii. 6urrent assets
iv. 7iabilities
v. :i2ed liabilities
vi. 6urrent liabilities
-3. ;ive any two advantages of cash flow statement.
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87
i. 6ash flow statement is useful in the evaluation of cash position of the
company.
ii. "t helps the management to plan the repayment of loan# and long term
planning.
-(. Define production.
'roduction is defined as the stepEbyEstep conversion of raw material into
finished products through chemical or mechanical processes to create the finished
product. :or e2ample# copper e2ists in nature as an ore. "t is converted into copper
plates by chemical process.
.4. 7ist out the objectives of purchasing department.
i. 8etter purchasers can save a firm*s financial resources.
ii. 8y scientific purchasing# cost would be reduced and in turn it will also
reduce the inventory asset base.
iii. $he effectiveness of the purchasing function will have an impact in other
operating results.
iv. 'urchasing uses majority of a firm*s financial resources to procure materials
for manufacturing processes.
.1. =ention the types of special purchase systems.
i. :orward buying
ii. $ender buying
iii. 8lan,et order
iv. Fero stoc,
v. @ate contract
.. 7ist out the various methods of purchasing.
i. 'urchasing according to the re/uirement
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88
ii. 'rice forecasting method
iii. 'urchasing for some definite future period
iv. =ar,et purchasing
v. Speculative purchasing
vi. 6ontract purchasing
vii. Scheduled purchasing
viii. 'ublic buying
i2. $ender purchasing
.%. Define maintenance control.
=aintenance control is the process of ,eeping the machine and
e/uipment in good wor,ing condition# so that the efficiency of the machine
is retained and its life is increased. 'lant maintenance control is a
combination of actions carried out by an organization to replace# repair
service the machineries# components or their groups in a manufacturing
plant# so that it will continue to operate satisfactorily.
.+.State the basic functions of maintenance.
i. "nspection
ii. @epair
iii. Overhaul
iv. 7ubrication
v. Salvage
.-. =ention the two types of maintenance practices.
i. 8rea,down maintenance
ii. 'reventive maintenance
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89
... What do you mean by brea,down maintenance!
"n the case of brea,down maintenance# the e/uipment is generally
attended to only when it brea,s down. Only when it becomes out of order# it
is repaired and set right. De2t maintenance is down when it brea,s down
again.
.0.State any two disadvantages of brea,down maintenance.
i. 'lanning of maintenance wor, is not possible.
ii. Distribution of wor, load is difficult.
iii. @esult is imbalanced utilization of maintenance staff.
.3.Define preventive maintenance.
'reventive maintenance is a systematic maintenance procedure where
in the condition of the plant is constantly watched through a systematic
inspection and preventive action is ta,en to reduce the incidence of
brea,down.
.(.6ompare preventive and brea,down maintenance.
1rea+do0n maintenan(e Pre3enti3e maintenan(e
1. =aintenance is done after
brea,down.
"t is done to prevent brea,down.
. $he time of brea,down is
unanticipated. So the
maintenance cannot be planned.
=aintenance wor, is planned and
scheduled in a well advanced
manner.
%. 6ost due to downtime is more. Do downtime.
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90
+. 'roduction loss ta,es place. Do production loss.
-. "t affects the /uality of the goods
produced by that e/uipment and
machineries.
'reventive maintenance improves
the /uality of the goods.
.. $he brea,down maintenance
cannot be planned and scheduled
as systematically and effectively
as preventive maintenance.
'reventive maintenance is planned
and scheduled systematically and
effectively.
04.Write any four advantages of preventive maintenance.
i. @educed brea,down and down time.
ii. 7esser overtime to maintenance people.
iii. ;reater safety to wor,ers.
iv. 7ow maintenance and repair cost.
01.Define /uality control.
<uality control is the procedure that is followed to achieve and
maintain the re/uired /uality. <uality control aims at prevention of
producing defective products.
0.7ist out the dimensions of /uality.
i. 'erformance
ii. :eatures
iii. 6onformance
iv. @eliability
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91
v. Durability
vi. Service
vii. @esponse
viii. @eputations
0%.What do you understand by statistical /uality control AS<6B!
Statistical /uality control AS<6B means controlling the /uality
characteristics of a product or process using statistical method.
0+.=ention the types of control charts used in statistical /uality control.
i. 6ontrol charts for variables
ii. 6ontrol charts for attributes
0-.Write a short note on control charts for attributes.
6ontrol charts for attributes are used when the parameter under
control is the proportion or fraction of defectives. 6ontrol charts for the
number of defects per unit are used when a single defect may not be of great
significance but a large number of defects would add up to a defective
product.
0..7ist at least four advantages of statistical /uality control.
i. "mprovement in product /uality
ii. @eduction of scrap and rewor,
iii. 'roduct /uality is uniformly maintained
iv. S<6 satisfies production department and the customer
00. Define the term productivity.
'roductivity is defined as the ratio of output produced to the input
resources utilised in production. 'roductivity is an attitude of mindJ
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92
certainty of being able to do better today than yesterdayJ continual effort to
apply new techni/ues and methods.
'roductivityMOutput produced
"nput resources
03.Define operations management.
Operations management is defined as the decision ma,ing that
involves decision ma,ing# planning and management of many factors that
affect operations.
0(. Write some of the re/uirements that must be fulfilled to ensure the 5"$
method of wor,.
i. $he /uality of the parts should be very highJ a defective part can hold
up the assembly line.
ii. $here must be smooth relationship between suppliers.
iii. Suppliers should be located near the company.
34. What are the uses of computers in handling the information!
i. 6omputers are used in processing financial information such as
account statements# pay roll and capital budgeting.
ii. :orecasting information can be handled by computers.
iii. Design information can also be obtained with the help of computer.
31. What is ="S!
="S is defined as an integrated# userEmachine system to provide
information to support operations# management and decisionEma,ing
functions in an organization.
3.Define 5"$.
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5"$ is defined as the philosophy that focuses attention on eliminating
waste by purchasing or manufacturing just enough of the right items at the
right time.
3%. What are <uality circles!
<uality circles are small groups of people doing similar wor, who
together with their superiors voluntarily meet for an hour a wee, to study
and solve wor, related problems which affects them.
3+. What do you mean by 6"=!
$he integration of computer aided design# computer aided
manufacturing and computer aided process planning is ,nown as 6omputer
"ntegrated =anufacturing A6"=B.
3-. What is internal audit!
"nternal audit is defined as the systematic and independent
e2amination to chec, whether these planned arrangements are implemented
effectively to achieve re/uired objectives. "nternal audit is done by internal
auditors who are an employee of the organization. 9e e2amines the
objectives# policies# plans# procedures and performance of the management.
3..What are the traditional techni/ues of control!
i. 'ersonal observation
ii. 8rea,Eeven analysis
iii. Statistical reports
iv. 8udgetary reports
30.=ention the modern techni/ues of control.
i. =anagement audit
ii. @eturn on "nvestment A@O"B
iii. '1@$ and 6'=
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iv. ="S
v. 9uman @esource &ccounting
33. What do you mean by '1@$ and 6'=!
"n both techni/ues# a project is decomposed into activities and then all
activities are integrated in a highly logical se/uence to find the shortest time
re/uired to complete the entire project.
3(. Write some uses of '1@$ and 6'=.
i. "t forces the right actions# right point and right time in the
organization.
ii. "t is used to wor, out the cost estimates of a project.
iii. "t is used to determine manpower# material and capital re/uirements.
(4. State the differences between '1@$ and 6'=.
S*'No' CPM PERT
1. "t is activityEoriented. '1@$ is event oriented.
. 6'= is planning device. '1@$ is control device.
%. "t estimates only one time. "t estimates three times.
+. "t is a deterministic model. "t is a probabilistic model.
(1. 7ist out the three types of time for '1@$ techni/ue.
i. Optimistic time
ii. 'essimistic time
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95
iii. =ost li,ely time
(. What is optimistic time!
Optimistic time is the shortest time in which everything goes
e2ceptionally well.
(%. What is 'essimistic time!
'essimistic time is the time estimate# in which everything goes wrong.
(+.What are the disadvantages of '1@$ and 6'=!
i. "t forces planningJ it will not ma,e a control automatic.
ii. "t is e2pensive and time consuming process.
(-. Define ="S.
="S is more advanced technology for solving its basic re/uirements.
"t is a system of obtaining# abstracting# storing and analyzing data to
productions information for the use in planning# controlling and decisionE
ma,ing by the managers at the time. $hey can most effectively be used.
(.. What are the characteristics of ="S!
i. ="S must be simple.
ii. ="S helps in decision ma,ing process.
iii. ="S should be clear.
iv. ="S should help in resolving the complicated problems effectively.
(0.What are ="S resources!
i. 6omputer 9ardware
ii. Software
iii. Data
iv. 'eople
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(3. What are the applications of ="S!
i. $o find out new applications
ii. $o provide sales forecasting
iii. $o allocate resources
iv. $o provide effective managerial activities
((.What is a decision support system!
& decision support system ADSSB is a specialized ="S designed to
support a manager*s s,ill at all stages of decision ma,ing# identifying the
problem# choosing the relevant data and evaluating the alternative courses of
action.
144. State some of the objectives of ="S.
i. $o provide the information up to date.
ii. $o ta,e effective decision ma,ing.
iii. $o provide the right information available in the right form at the right
time.
141. 9ow to use of ="S for =iddle =anagement!
="S gives information about mar,eting level# problems with customers# and
reduction in sales# and /uality of product.
14. What are the factors affecting productivity!
i. $echnology
ii. 9uman resources
iii. ;overnment 'olicy
iv. =achinery and e/uipment
v. S,ill of the wor,er
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14%. =ention the factors to be considered for product design.
i. =ar,eting
ii. ;overnment policy
iii. 'roduction
iv. $echnology
v. 'roduct /uality
14+. State the benefits of increasing productivity for wor,ers.
i. 5ob satisfaction and job security
ii. 'romotion
iii. 9igher salary
iv. 8etter wor,ing conditions
14-. Define O@.
Operations @esearch is a systematic analysis of a problem through scientific
methods# carried out by appropriate specialists# wor,ing together as a team#
finding an optimum and the most appropriate solution to meet the given
objective under a set of constraints. "t involves the use of scientific models or
conceptual framewor,s to represent real situations.
14.. What are the steps involved in solving a problem through O@!
i. :ormulation of the problem
ii. 6onstruction of a mathematical model
iii. Deriving the solution from the model
iv. $est the model
v. "nstall a feedbac, mechanism
vi. "mplementation of the final results
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140. =ention some of the disadvantages of O@.
i. "t is not /ualitative.
ii. "t does not consider the human factors.
iii. "t can be used only for specified problems.
143. ;ive some techni/ues used in O@.
i. 7inear programming
ii. &ssignment problem
iii. $ransportation model
iv. ;ame theory
v. '1@$I6'= method
vi. Decision tree approach
14(. 7ist out some of the applications of O@.
i. Dational planning and budgeting
ii. Defense service operations
iii. @ N D engineering
iv. &griculture and irrigation
v. 8usiness management and competition
vi. 1ducation and training
114. ;ive some of the applications of O@ in defense.
i. Development of new technology
ii. "nventory control
iii. Optimization of cost and time in defense projects
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99
iv. 1ffective battle strategies and tactics
111. What are the applications of O@ in the area of business management!
i. Selection of business and area of application
ii. Decision ma,ing under competition
iii. Optimum advertisement turtle
iv. =ar,et survey and analysis
v. =ar,et research techni/ues
vi. 6apital investment and returns
11. 9ow is O@ used in the field of education and training!
i. Optimum mi2 of studentIteachers ratio
ii. Optimum number and location of e2amination centers
iii. Demand and supply of te2tboo,s and stationary
11%. What are the important functions of operations research!
i. Optimization of resources
ii. =inimizing time
iii. =a2imizing profit
iv. Selecting the best alternative
11+. =ention the tools and techni/ues available for ma,ing operations more
productive.
i. 7inear programming
ii. &ssignment problem
iii. $ransportation model
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iv. ;ame theory
v. '1@$I6'= method
vi. Decision tree approach
11-. Define linear programming.
7inear programming is a versatile mathematical techni/ue in
Operations @esearch and a plan of action to solve a given problem involving
linearly related variables in order to achieve the laid down objective in the
form of minimizing or ma2imizing the objective function under given
conditions. "t involves the development of linear e/uations to obtain the best
solution for the allocation of the problem.
11.. ;ive some uses of 7''.
i. Optimum product mi2 to ma2imize the profit.
ii. Optimum schedule of orders to ma2imize the total cost
iii. Optimum staffing in hotels# police stations and hospitals to ma2imize
the efficiency.
iv. Optimum facilities in telephone e2change to have minimum
brea,downs.
110. What is inventory control!
"nventory control refers to the control of raw materials and purchased
materials in store and regulation of investment in them. "t is the function of
directing the movement of goods through the entire manufacturing cycle
from the re/uisitioning of raw materials to meet the objectives of ma2imum
customer service with minimum investment and efficient plant operation.
113. Write any four importance of inventory control.
i. 1fficient utilization of resources.
ii. "t provides and maintains the best consumer service.
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11(. Define 1conomic Order <uantity.
1conomic Order <uantity A1O<B is the size of the order that yields
optimum total incremental inventory cost during the given period of time
under the assumption that the demand rate is constant and ,nown as
1O< MO 6
%
@P 6
1
Where 6
%
M Order cost
6
1
M "nventory carrying costIunit Iunit time
@M Demand for the product
14. Write some advantages of 5"$.
i. "nventory cost is reduced.
ii. "t leads to job satisfaction of employees.
iii. "t improves the efficiency of wor,ers.
iv. <uality product.
11. What are the disadvantages of 5"$!
i. Stoppage of any one machine will affect the wor,.
ii. $he suppliers do not deliver the materials before the wor, starts. "t
affects the continuous wor,.
1. What is value engineering!
Halue engineering or value analysis is a tool of management which
attempts the /uestion of saving cost from the point of view of value or in
other words the main aim is to study the relationship between the design
function and cost of a part# ,eeping in view to reduce part and cost through
change in design# modification in specification of the material used by
changing the source of supply and so on.
1%. 7ist out the objectives of value engineering.
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1021
i. =odify and improve product design
ii. @educe the product cost
iii. "ncrease the profit
iv. Simplify the product
1+. =ention the uses of value engineering.
i. "t prevents overEdesign.
ii. "t increases the profits.
iii. 5ob satisfaction to the employees.
1-. What are the advantages of /uality circles!
i. "ncreases productivity
ii. @eduction of costs
iii. @eduction of wastes
iv. "ncreases the self confidence and job satisfaction
1.. What do you mean by 6&D!
6&D A6omputer &ided DesignB is a method by which computers are
used for creation# modification# analysis and optimization of designs to
increase productivity.
10. State the steps in value engineering.
i. 8last
ii. 6reate
iii. @efine
13. What do you mean by ;antt chart!
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;antt chart involves the representation of wor, progress over a period
of time in the form of bar chart.
1(. Define financial controls.
:inancial control helps an organization to control its financial
resources.
1%4. 9ow is @O" calculated!
i. "nvestment $urnover M Sales
6apital employed or investment
ii. 'ercentage profit on sales M 'rofit 2 144
Sales
iii. @eturn on capital employed M 'rofit 2 144
6apital employed
1%1. What are the advantages of @O"!
i. @O" measurement shows business efficiency.
ii. "t is used in interEdepartmental comparison.
"ii.@O" is used for top management for budget decisions.
1%. What are the limitations of @O"!
i. Depreciation cannot be considered.
ii. "t does not give a correct judgment of financial analysis.
1%%. What is direct control!
$he process of identifying the cause of a negative deviation and
ma,ing efforts to rectify the deviations is ,nown as direct control. $he
negative deviation indicates that the performance is less than the standard.
1%+. State some of the factors which affect the direct control.
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i. ?ncertainty
ii. 7ac, of ,nowledge
iii.7ac, of communication
iv.7ac, of coordination
1%-. What are the effective steps for direct control!
i. 'erformance can be measured.
ii. 1ffectively utilizes time.
iii. 1rrors can be discovered on time.
iv. 6oordination
1%.. What is preventive control!
&n efficient manager applies the s,ills in managerial philosophy to eliminate
an undesirable activity which are the reasons for poor management. "t is ,nown as
preventive control.
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PART 1 #<= MAR%S&
UNIT I
OVERVIEW OF MANAGEMENT
1. Describe the principles of organization briefly.
i. 'rinciple of unity of objective
ii. 'rinciple of specialization or division of wor,
iii. 'rinciple of organizational efficiency
iv. 'rinciple of coEordination
v. 'rinciple of span of control
vi. 'rinciple of authority and responsibility
vii. 'rinciple of unity of command
viii. 'rinciple of definition
i2. 'rinciple of correspondence
2. 'rinciple of balance
2i. 'rinciple of continuity
2ii. 'rinciple of chain of command
2iii. 'rinciple of fle2ibility
2iv. 'rinciple of simplicity
. 12plain the different theories of organizations in detail.
". 6lassical organization theory
"". DeoEclassical organization theory
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""". =odern organization theory: systems approach
%. What are the various types of business organizations! Write short notes on
each.
I. Private Sector Organizations
i. Sole proprietorship or "ndividual ownership
ii. 'artnership organizations
iii. 5oint stoc, companies
iv. 6ooperative societies
II. P!"ic Sector Organizations
i. Departmental organizations
ii. 'ublic corporations
iii. ;overnment companies
+. Discuss in detail about the debate as to whether management is a science or an
art.
i. "ntroduction
ii. =anagement as Science
iii. =anagement as &rt
iv. =anagement: 8oth Science and &rt
-. ". Describe briefly about the features of management. A3B
i. Organized activities
ii. 12istence of objectives
iii. @elationship among resources
iv. Wor,ing with and through people
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v. Decision =a,ing
"". 12plain the importance of management. A3B
i. 1ffective utilization of resources
ii. Development of resources
iii. $o incorporate innovations
iv. "ntegrating various interest groups
v. Stability in the society
.. 12plain in detail about $aylor*s scientific management.
I' Introdu(tion
II' E*ement" and Too*" o S(ientii( Mana!ement,
i. Separation of 'lanning and Doing
ii. :unctional :oremanship
iii. 5ob &nalysis
iv. Standardization
v. Scientific Selection and $raining of Wor,ers
vi. :inancial incentives
vii. 1conomy
viii. =ental @evolution
III' Prin(ip*e" o S(ientii( Mana!ement,
i. @eplacing @ule of $humb with Science
ii. 9armony in ;roup &ction
iii. 6ooperation
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iv. =a2imum Output
v. Development of Wor,ers
I8' Fo**o0er" o S(ientii( Mana!ement
8' Criti(a* Ana*y"i" o S(ientii( Mana!ement
0. Describe in detail about 9enry :ayol*s &dministrative management.
I' Introdu(tion
II' Mana!eria* Qua*itie" and Trainin!
III' Genera* Prin(ip*e" o Mana!ement
i. Division of Wor,
ii. &uthority and @esponsibility
iii. Discipline
iv. ?nity of 6ommand
v. ?nity of Direction
vi. Subordination of "ndividual "nterest to ;eneral "nterest
vii. @emuneration of 'ersonnel
viii. 6entralization
i2. Scalar 6hain
2. Order
2i. 1/uity
2ii. Stability of $enure
2iii. "nitiative
2iv. 1sprit de 6orps
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I8' E*ement" o Mana!ement
8' Re*e3an(e o Fayo*>" Prin(ip*e"
3. ". Describe the various functions of management. A3B
i. 'lanning
ii.
Organizing
iii. Staffing
iv. Directing
v. 6ontrolling
"". 12plain the three levels of management in organizations with diagram. A3B
i. :irst 7ine =anagers
ii. =iddle 7evel =anagers
iii. $op 7evel =anagers
(. 12plain in detail about the various views on management and administration.
I' Admini"tration,
i. :ormulation of corporate policy
ii. 6oordination of finance# production and distribution
iii. Settlement of the compass of an organization
iv. $he ultimate control of e2ecutive
II' Mana!ement,
III' T)ree dierent 3ie0" o admini"tration and mana!ement,
i. &dministration is broader than management
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1101
ii. &dministration is part of management
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1101
iii. &dministration and management are identical
14.12plain the various roles of managers according to =intzberg.
=intzberg identified ten roles and the roles are classified into three
categories:
I8' Interper"ona* ro*e",
i. :igurehead role
ii. 7eader role
iii. 7iaison role
8' Inormationa* ro*e",
iv. =onitor role
v. Disseminator role
vi. Spo,esperson role
8I' De(i"ion ro*e,
v. 1ntrepreneur role
vi. Disturbance handler role
vii. @esource allocator role
viii. Degotiator role
I8' 8a*idity o Ro*e Approa()
8' Re(on(i*in! Mana!ement un(tion" and ro*e"
11. Write an essay on the evolution of management thought.
I' Mana!ement in t)e an(ient time"
II' Mana!ement in t)e medie3a* period
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1111
III' Mana!ement durin! t)e indu"tria* re3o*ution
I8' S()oo*" o Mana!ement t)ou!)t,
i. Scientific management
ii. &dministrative management
iii. 8ehavioral management
iv. =anagement science
v. Organizational environment
1. 12plain in detail about an organization*s environmental factors.
i. 1conomic environment
ii. 'oliticalE legal environment
iii. $echnological environment
iv. SocioEcultural environment
v. 6ompetitive environment
1%.Define international management. Describe the various modes of international
business.
I' Deinition
II'Mode" o internationa* bu"ine"",
i. 12porting
ii. 7icensing
iii. :ranchising
iv. 5oint Hentures
v. :oreign subsidiary
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1121
vi. =anagement contracts
vii. 7ocal warehousing and selling
viii. 7ocal assembly and pac,aging
1+. Write a detailed essay on =ultinational 6orporations A=D6sB. &lso e2plain
about their merits and demerits.
I' C)ara(teri"ti("
II' Type",
i. 1thnocentric companies
ii. 'olycentric companies
iii. @egiocentric companies
iv. ;eocentric companies
I' Strate!ie"
II' Rea"on" or t)e !ro0t) o MNC",
i. 12pansion of mar,et territory
ii. =ar,eting superiorities
iii. :inancial superiorities
iv. $echnological superiorities
v. 'roduct innovations
III' Ad3anta!e",
i. 7ower 7abor 6osts
ii. 'otential for high rate of return on investment
iii. 12panded mar,ets
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1131
iv. 6apital @esources
v. &vailability of natural resources
I8' -armu* ee(t",
i. Distortion of economic structure
ii. 'olitical interference
iii. $echnology transfer not conducive to development
iv. 'ayment of dividends and royalty
1-. 12plain about international management in selected countries in detail.
I' .apane"e mana!ement and T)eory ?,
i. 7ife time employment
ii. Decision ma,ing
iii. $heory F
II'Germany
III' Fran(e,
i. 7e plan
ii. 6adre
I8' %orean mana!ement
8' Mana!ement in ot)er (ountrie",
i. &ustralia
ii. "ndia
iii. "talian
iv. 8ritain
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1141
1..;ive a detailed account of globalization along with its advantages and
disadvantages.
I' Introdu(tion
II' Meanin! III'
Ad3anta!e" I8'
Di"ad3anta!e"
8' Fa(tor" be)ind !*oba*i7ation
a# P"" $actors%
i. 'rofit advantage ii.
;rowth prospect
!# Ps& $actors%
i. Domestic mar,et constraints
ii. 6ompetition
iii. ;overnment policies and regulations
iv. SpinEoff benefits
v. Strategic vision
17.12plain in detail about the various methods of globalization.
i. 12porting
ii. 7icensing and :ranchising
ii. 5oint ventures
iv. :ully owned manufacturing facilities
v. &ssembly operations
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1151
vi. =ergers and ac/uisitions
vii. Strategic alliance
viii. 6ontract manufacturing
i2. =anagement contracting
2. 6ounter trade
13.Discuss the unified global theory of management in detail.
i. $he 1mpirical approach
ii. $he Systems approach
iii. Situational or contingency approach
iv. =erging motivation and leadership theories
v. Organization development approach
vi. Discuss the various strategies for international business in detail.
I' 1a"i( Area",
i. Scope
ii. @esource
iii. ?ni/ueness
iv. Synergy
II'Strate!i( mi;,
i. 6orporate strategies:
a. 6urtailment goal
b. StatusE/uo goal
c. ;rowth goal
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1161
d. Diversification goal
ii. 8usiness Strategies:
a. Defender Strategy
b. @eactor Strategy
c. &nalyzer Strategy
d. 'rospector Strategy
i. :unctional strategies:
a. 'roduction Strategy
b. =ar,eting Strategy
c. :inance Strategy
d. 'ersonnel Strategy
e. @ N D Strategy
""".Strate!y imp*ementation,
a. Organizational structure
b. 6ontrol mechanism
c. "nformation system
d. 1valuation system
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1171
UNIT II
PLANNING
1. Describe in detail the nature of planning.
i. 'lanning is pervasive in nature.
ii. 'lanning is primary in nature.
iii. 'lanning is continuous in nature.
iv. 'lanning is fle2ible in nature.
v. 'lanning is goal oriented.
vi. 'lanning is an integrated process.
vii. 'lanning is forward loo,ing.
viii. 'lanning is an intellectual process.
i2. 'lanning involves choice.
2. 'lanning includes efficiency and effectiveness dimensions.
. 12plain the purpose or importance of planning in detail.
i. 'lanning determines the direction of an organization.
ii. 'lanning provides a basis for teamwor,.
iii. 'lanning is economical as it minimizes cost.
iv. 'lanning adapts to the changes in environment.
v. 'lanning provides coEordination.
vi. 'lanning reduces ris,s or uncertainty.
vii. 'lanning facilitates decision ma,ing.
viii. 'lanning encourages innovation and creativity.
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1181
i2. 'lanning improves morale.
2. 'lanning improves morale.
2i. 'lanning facilitates control.
2ii. 'lanning facilitates participation.
%. 12plain about the various steps involved in planning.
i2. 8eing aware of opportunities.
2. 1stablishing objectives.
2i. 6onsidering planning activities.
2ii. "dentifying alternatives.
2iii. 1valuating alternative courses of action.
2iv. 6hoosing a best alternative course of action.
2v. :ormulating derivative plans.
2vi. Dumerising plans by budgeting.
+. 6lassify the various types of plans in detail.
i. =ission
ii. Objectives or goals
iii. Strategies
iv. 'olicies
v. 'rocedures
vi. @ules
vii. 'rograms
viii. 8udgets
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1191
-. 12plain the characteristics of objectives in detail.
i. 9ierarchy of objectives
ii. Objectives are multiple in nature.
iii. 7ong rangeEshort range objectives
iv. Objectives should be specific and measurable.
v. Objectives are interdependent.
vi. Objectives must cover ,ey result areas.
vii. Objectives should have defined time period.
viii. Objectives should have priority.
i2. Objectives should be challenging but realistic.
2. Objectives should be lin,ed to rewards.
.. ;ive a detailed account of the benefits of objectives.
i. ?nity of planning
ii. =otivate subordinates
iii. Objectives facilitate coordination.
iv. Objectives provide better control.
v. Objectives facilitate direction.
vi. 8asis for planning
vii. 8asis for measuring performance
viii. 7egitimacy
0. Describe the various steps involved in the process of =8O in detail.
i. Set objectives.
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1201
ii. "dentify ,ey result areas.
iii. 'articipatory or joint objective setting.
iv. =a,e action plan.
v. @eview progress and ta,e corrective action.
vi. &ppraise performance.
3. 12plain the benefits of =8O A=anagement by ObjectivesB.
i. 1mployees can be motivated because they participate in the goal
setting process.
ii. 'erformance can be improved because =8O concentrates on
objectives.
iii. ?nnecessary efforts will be minimized because objectives are set
clearly.
iv. =8O helps managers to e2ercise better control over employees.
(. What are the limitations of =8O!
i. =8O involves too much paper wor, and holding of many meetings.
ii. =8O is a time consuming process.
iii. &n environment of poor employerE employee relations reduces =8O
effectiveness.
iv. :ailure to teach the philosophy of =8O wea,ens the =8O program.
14. 6ompare strategic planning with tactical and operational planning.
11. 6lassify the different types of strategies and e2plain them in detail.
III' Grand "trate!y,
i. Stability strategy
ii. ;rowth strategy
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1211
iii. @etrenchment strategy
I8' G*oba* "trate!y,
i. ;lobalization strategy
ii. =ultidomestic strategy
iii. $ransnational strategy
1. =ention the three levels of strategy and e2plain them in detail.
I' Corporate *e3e* "trate!y:
i. :orward vertical integration strategy
ii. 8ac,ward vertical integration strategy
iii. 9orizontal integration strategy
iv. 6oncentric diversification strategy
v. 6onglomerate diversification strategy
II' 1u"ine"" *e3e* "trate!y
III' Fun(tiona* *e3e* "trate!y
1%. 12plain the various steps involved in the strategic planning process.
I' De3e*op mi""ion and ob2e(ti3e"
II' Dia!no"e interna* and e;terna* en3ironment
III' Situation #S6OT& Ana*y"i"5 TO6S Matri;,
i. W$ strategy
ii. WO strategy
iii. S$ strategy
iv. SO strategy
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1221
I8' De3e*op a*ternati3e "trate!ie"
8' Formu*ate "trate!ie",
i. :ormulating corporate level strategy:
A. BCG matrix:
a. Star
b. 6ash 6ow
c. <uestion mar,
d. Dog
ii. :ormulating business level strategy:
A. Porters i!e orces model:
a. $hreat of new entrants
b. $hreat of substitute products
c. 8argaining power of buyers
d. 8argaining power of suppliers
e. @ivalry among current competitors
iii. :ormulating functional level strategy
8I' Imp*ementin! "trate!ie"
1+. 6lassify the different types of policies and e2plain them in detail.
I' On t)e ba"i" o *e3e*",
i. 8asic policy
ii. ;eneral policy
iii. Division policy
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1231
II' On t)e ba"i" o un(tion",
i. 'roduction policy
ii. =ar,eting policy
iii. 'ersonnel policy
iv. &ccounting policy
III' On t)e ba"i" o "our(e",
i. Originated policy
ii. &ppealed policy
iii. 12ternal policy
1-. Describe the four steps involved in the process of policy ma,ing.
i. 'olicy formulation
ii. 'olicy communication
iii. 'olicy application
iv. 'olicy review and appraisal
1.. Describe the characteristics of a good policy in detail.
10. 6lassify the various types of decisions and e2plain them in detail.
i. 'rogrammable and nonEprogrammable decisions
ii. OnceEforEall and routine decisions
iii. "ndividual and group decisions
iv. 'ersonal and organizational decisions
v. "nitiative and approval decisions
vi. 6ertain and ambiguity decisions
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1241
vii. Strategic and operating decisions
viii. &daptive and innovative decisions
13. 12plain the various steps involved in decisionEma,ing process in detail.
i. @ecognize the need for a decision
ii. Definition of the problem
iii. Search and develop alternatives
iv. 1valuate alternatives
v. Selecting an alternative course of action among alternatives
aB 12perience
bB @esearch and analysis
cB 12perimentation
vi. "mplement chosen alternative
vii. 7earn from feedbac,
1(. Describe the various decision ma,ing techni/ues.
III' Probabi*i"ti( or "to()a"ti( te()ni4ue",
i. 12pected value method
ii. Decision tree method
iii. Simulation techni/ues
I8' Determini"ti( te()ni4ue",
i. Operations research
ii. 8rea, even analysis
iii. "nventory control
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1251
4. 12plain the different conditions involved in decisionEma,ing.
I' Condition" o pere(t (ertainty,
II' Condition" o ri"+,
i. @is, analysis:
aB & 'riori probability
bB 1mpirical probability
cB Subjective probability
III' Condition" o un(ertainty,
i. =a2ima2 criterion
ii. =a2imin criterion
iii. =inima2 criterion
iv. "nsufficient reason criterion
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1261
UNIT III
ORGANISING
1. 12plain the nature and purpose of organizing in detail.
Nature o or!ani7in!,
i. Division of wor, or specialization
ii. Orientation towards goals
iii. 6omposition of individuals and groups
iv. Differentiated functions
v. 6ontinuous process
Purpo"e o or!ani7in!,
i. :acilitates management and administration
ii. 9elps to achieve organizational goals
iii. :acilitates growth and diversification
iv. Optimum use of technological development
v. Optimum use of resources
vi. $o perform managerial functions
vii. 9uman treatment of employees
viii. 'rovides job satisfaction and morale
i2. Stimulate creativity
2. :acilitates coordination
. 12plain the purpose of an organizational structure.
i. "t facilitates management.
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1271
ii. "t encourages growth and diversification.
iii. "t facilitates the optimum use of technological improvement.
iv. "t encourages proper use of human resources.
v. "t stimulates creativity.
%. Write a short notes on
i. Division of labor
ii. :ormalization
+. 12plain 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. =atri2 departmentation
i2. Strategic business units AS8?sB
-. 6lassify the two types of organizations based on the span of control and
e2plain.
i. Organizations with wide span
ii. Organizations with narrow span
.. 12plain the ;raicunas theory of span of control in detail.
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i. Direct single relationship
ii. Direct group relationship
iii. 6ross relationship
0. 12plain the various factors affecting the span of control.
i. Dature of wor,
ii. 6ompetence and leadership ability of the manager
iii. 6apability of subordinates
iv. 'lanning and standardization of wor,
v. Degree of independence in decision ma,ing
vi. ?se of objective standards for judging the efficiency of the
subordinates
vii. 6ommunication techni/ues
viii. 7evel of personal contact needed
i2. Stability of organisation environment
3. 12plain the concept of decentralization along with its advantages and
disadvantages. 9ow can decentralization be made effective!
". 6oncept of decentralization
"". &dvantages
""". Disadvantages
"H. =a,ing decentralization effective:
i. 6entralized top policy
ii. &ppreciation of concept of decentralization
iii. Development of managers
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iv. 6ompetition among units
v. Open communication
vi. 1ffective coEoperation
14.&B 6lassify the two types of delegation and e2plain them in detail.
III' Forma* de*e!ation
i. 8ottomEup delegation
ii. 7ateral delegation
I8' Inorma* de*e!ation
8B 12plain the various steps involved in the process of delegation.
i. &llocation of duty
ii. Delegation of authority
iii. &ssignment of responsibility
iv. 6reation of accountability
11. 12plain the various barriers to effective delegation.
i. Willingness to let authority go
ii. 7ac, of confidence and trust in subordinates
iii. 7ac, of receptiveness
iv. Sense of insecurity
v. 7ac, of controls
vi. :ear on the part of employees
vii. 7ac, of incentives
viii. 7ac, of selfEconfidence
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1301
1.What are the guidelines for effective delegation! 12plain the advantages of
delegation!
Guide*ine" or ee(ti3e de*e!ation,
i. Define assignments and delegate authority in light of results to be
achieved
ii. Select right person
iii. Open communication
iv. 1stablish ade/uate controls
v. 'roper incentives
Ad3anta!e" o de*e!ation,
i. <uic, decisions can be possible
ii. =otivates subordinates
iii. 8etter strategic planning
iv. 'romotes specialization
1%. 12plain the characteristics of formal and informal organization in detail
with their merits and demerits. &lso distinguish between formal and
informal organization.
Forma* or!ani7ation,
i. 6haracteristics
ii. 8enefits
iii. Demerits
Inorma* or!ani7ation,
i. 6haracteristics
ii. 8enefits
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iii. Demerits
Forma* or!ani"ation Inorma* or!ani7ation
$he relationship between
members in the organizational
structure is well defined.
$here is no formal relationship
between members.
"t has clear and definite
organizational structure.
"t has not clear organizational
structure.
"ndividual goals are consistent
with the organizational goals.
"ndividual goals may not support
organizational goals.
1+. 12plain the different types of organization structure.
i. 7ine organizational structure
ii. 7ine and staff organizational structure
iii. :unctional organizational structure
iv. 6ommittee structure
1-. ;ive the important characteristics of staffing and e2plain them in detail.
i. 'eopleE oriented
ii. 6omprehensive function
iii. 8ased on fundamentals
iv. 8oth line and staff function
v. 6ontinuous nature
vi. 9uman objectives
vii. 6hallenging tas, to the managers
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viii. "mplied authority
1.. Describe the objectives of staffing in detail.
i. Optimum utilization of human resources
ii. 'rocure people
iii. $o develop employees
iv. $o arrange effective communication with employees
v. $o secure full cooperation
vi. $o improve morale and job satisfaction
vii. $o establish harmonious relations between labor and capital
viii. $o improve employerEemployee relationship
10. Write a detailed account of the various steps in staffing.
i. 'lanning and organizing
ii. 1stimating the number of people re/uired
iii. &nalyzing the e2isting man power
iv. &nalyzing present and future needs for people
v. &nalyzing internal and e2ternal sources
vi. @ecruitment
vii. Selection
viii. 'lacement
i2. 'romotion
2. 'erformance appraisal
2i. 6areer strategy
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2ii. $raining and development
13. 12plain the various factors affecting staffing in detail.
I' E;terna* a(tor",
i. 1ducational factors
ii. 'oliticalE legal factors
iii. ;lobal factors
iv. 6ultural factors
II' Interna* a(tor",
i. ?nions
ii. Organization culture and conflict
1(. 12plain elaborately about the sources of recruitment.
I' Interna* Sour(e",
i. $emporary wor,ers
ii. 'romotion
iii. $ransfer
iv. &pprentice
v. Dependents
vi. 'ast employees
II' E;terna* Sour(e",
i. 5ob advertisements
ii. 1mployment e2changes
iii. @ecruitment from educational institutions
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iv. @ecruitment from private employment agencies
v. 'rofessional bodiesIemployee consultants
vi. @ecommendations of e2isting employees
vii. @ecruitment at the factory gate
viii. 7abor contractors
i2. 6asual callers
2. Deputation
4. 12plain the various steps involved in selection process.
i. 'reliminary screening of applicants
ii. 'reliminary interview
iii. &pplication blan,
iv. 6hec,ing references
v. 1mployment tests
vi. 'sychological tests
vii. 1mployment interview
viii. :inal approvalI selection
i2. 'lacement
2. "nduction
1. 12plain the various steps involved in induction process.
i. 'rearrival stage
ii. 1ncounter stage
iii. =etamorphosis stage
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1. 8riefly e2plain the career development model.
". 6areer need assessment
"". 6areer opportunities
""".DeedEOpportunity alignment:
i. "ndividual techni/ues
ii. 'erformance appraisal
iii. =anagement by objectives
iv. 6areer counseling
"H. =onitoring career moves
. 12plain the various stages involved in career development.
i. 12ploratory stage
ii. 1stablishment stage
iii. =aintenance stage
iv. Stage of decline
%. Describe the various methods of performance appraisal elaborately.
i. 6ritical incidence method
ii. 6hec,list method
iii. ;raphic rating scale
method iv. @an,ing method
v. :orced distribution method
vi. &ssessment centre method
vii. &ppraisal by results
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1361
A=8OB
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1371
viii. :i2ed review method
i2. 'aired comparison method
2. 6onfidential report
method
+. 12plain the reasons for training needs.
i. $echnology changing at a fast pace
ii. <uality conscious customers
iii. ;reater productivity
iv. Stable wor,force
v. "ncreased safety
vi. 8etter management
-. Describe the various benefits of training in detail.
i. <uic, learning
ii. 9igher productivity
iii. Standardization of procedures
iv. 7ess supervision
v. 1conomical operations
vi. 9igher morale
vii. 'reparation of future managers
viii. 8etter management
Ad3anta!e" o trainin! to emp*oyee",
i. 6onfidence
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1381
ii. Dew s,ills
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1391
iii. 'romotion
iv. 9igher
earnings v.
&daptability
vi. "ncreased safety
.. What are the various types of training! 12plain them in detail.
i. "nduction or orientation training
ii. 5ob training
iii. &pprenticeship training
iv. "nternship training
v. @efresher training or retraining
vi. $raining for promotion
0. 12plain the various methods of training in detail.
I' On/ t)e/2ob trainin!,
i. 6oaching
ii. ?nderstudy
iii. 'osition rotation
II' O/t)e/2ob trainin!,
i. Special lecture cum discussion
ii. 6onference training
iii. 6ase study
III' 8e"tibu*e trainin!
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UNIT I8
DIRECTING
1. 12plain the steps involved in creative process in detail.
i. Saturation
ii. 'reparation
iii. :rustration and incubation
iv. "nspiration or illumination
v. Herification
. 12plain in detail about the human factors in managing.
i. =ultiplicity of roles
ii. "ndividuality
iii. 'ersonal dignity
%. Describe elaborately about the various creativity tools used to solve
problems.
i. 8rainstorming
ii. Hertical thin,ing and lateral thin,ing
iii. @eversal $ool
iv. S6&='1@ $ool
v. @eframing =atri2
aB $he +'s approach
bB $he )'rofessions &pproach*
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1411
vi. 6oncept :an
vii. =ind mapping
viii. 'rovocation
i2. DO "$
aB Define 'roblem
bB Open =ind and apply creative techni/ues
cB "dentify the best solution
dB $ransform
2. Simple2 $ool
aB 'roblem :inding
bB :act :inding
cB 'roblem definition
dB "dea :inding
eB Selection and 1valuation
fB 'lanning
gB Sell "dea
hB &ction
+. ". 12plain the nature of motivation. A3 mar,sB.
i. =otivation is internal to man
ii. & single motive can cause different behaviors
iii. Different motives may result in single behavior
iv. =otives come and go
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v. =otives interact with the environment
"". Describe the basic elements involved in motivation process. A3 mar,sB.
i. =otives
ii. ;oals
iii. 8ehavior
-. 12plain in detail about the various types of motivation.
i. 'ositive motivation
ii. Degative motivation
iii.12trinsic motivation
iv."ntrinsic motivation
.. Discuss the different theories of motivation.
i. =c;regor*s $heory K and $heory L
ii. $heory F
iii. =aslow*s hierarchy of needs theory
iv. 9erzberg*s motivationE hygiene theory
v. =c6lelland*s needs theory
vi. 12pectancy theory
vii. 1/uity theory
viii. S,inner*s behaviouralistE reinforcement theory
i2. &lderfer*s 1@; theory
2. 6arrot and Stic, approach of motivation
0. 12plain the importance of leadership. &lso e2plain the functions of leaders.
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1411
Importan(e o *eader")ip,
i. Securing cooperation
ii. 6reating confidence in the minds of employees
iii. 'roviding good wor,ing climate
Fun(tion" o *eader",
i. 7eader develops team wor,.
ii. 7eader is an appropriate counselor.
iii. 7eader is a representative of subordinates.
iv. 7eader uses power properly.
v. 7eader uses time well.
3. 12plain in detail about the different types of power.
i. 7egitimate power
ii. @eward power
iii. 6oercive power
iv. @eferent power
v. 12pert power
(. 12plain elaborately about the various styles of leadership.
I' Leader")ip "ty*e" ba"ed on u"e o aut)ority,
i. &utocratic leadership
ii. Democratic or participative leadership
iii. 7aissezEfaire leadership
iv. 8enevolent autocratic leadership
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v. Supportive leadership
II' Leader")ip "ty*e" ba"ed on mana!eria* !rid,
i. "mpoverished style
ii. 6ountry club style
iii. 'roduce or perish style
iv. =iddleEofEtheEroad style
v. $eam style
III' Leader")ip "ty*e" ba"ed on (ontinuum
14.Write a detailed essay on the various theories of leadership.
i. $rait theory
ii. 8ehavioral theories
iii. Situational or contingency theory
11. 12plain the importance of communication. &lso e2plain the
communication process in detail.
Importan(e o (ommuni(ation,
i. 8asis for planning
ii. 8asis for decision ma,ing
iii. $o perform managerial functions effectively
iv. $o facilitate coordination among wor,ers
v. $o develop understanding between superiors and subordinates
vi. $o motivate wor,ers
Communi(ation pro(e"",
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i. SenderIsource
ii. 1ncoder
iii. $ransmission channel
iv. @eceiver
v. Decoder
1. Write a detailed essay on the different forms or types of communication.
I8' 1a"ed on (ommuni(ation *o0,
i. Downward communication
ii. ?pward communication
iii. 9orizontal communication
iv. Diagonal communication
8' 1a"ed on ()anne*,
i. :ormal communication
ii. ;rapevine or "nformal communication
8I' 1a"ed on e;pre""ion,
i. Written communication
ii. Oral communication
iii. Don verbal communication
1%. Describe the barriers involved in effective communication in detail. 12plain a
few suggestions for managers to overcome barriers to communication.
1arrier" in3o*3ed in ee(ti3e (ommuni(ation,
i. 7ac, of planning
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ii. Semantic distortion
iii. Selective perception or filtering
iv. :ear and emotions
v. Distrust and threat
vi. $iming of communication
vii. Overloading of communication
viii. 7oss by transmission and poor retention
i2. Status symbols
2. 'oor listening and premature evaluation
2i. 'oorly e2pressed messages
2ii. ?nclarified assumptions
2iii. :aulty organisation
2iv. 8arriers in the international environment
O3er(omin! barrier" to (ommuni(ation,
i. @egulate the flow of information
ii. 1ncourage feedbac,
iii. Simplify the language
iv. 7isten actively
v. 6onstraints negative emotions
vi. ?se nonverbal cues
vii. ?se the grapevine
1+. 12plain the important guidelines for effective communication.
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i. 6larify your ideas before communicating
ii. 12amine the true purpose of communication
iii. 6onsider the physical and human setting in which communication will ta,e
place
iv. 6onsult with others# when appropriate# in planning communication
v. 8e mindful of the nonverbal messages you send
vi. $a,e the opportunity to convey something to the receiver
vii. :ollow up the communication
viii. 6ommunicate for tomorrow as well as today
i2. 8e sure actions support communication
2. See, not only to be understood but to understand
1-. Write a detailed essay on the important electronic media which are useful for
communication.
i. $elecommunication
ii. $elephone answering machines Avoice mailB
iii. :acsimile A:&KB =achines
iv. $eleconferencing
v. 6losed 6ircuit $elevision Systems
vi. "nternet
vii. 1lectronic =ail systems
viii. 1lectronic typewriters
i2. 1lectronic 8ulletin 8oards
2. 6omputers A=ain frame# mini and personalB
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2i. 6ellular telephones
1.. ". Describe the different types of cultures. A3 mar,sB.
i. Dominant culture and subculture
ii. Strong and wea, cultures
"". 12plain the characteristics which describe organizational culture. A3 mar,sB.
i. Observed behavioral regularities
ii. Dorms
iii. Dominant values
iv. 'hilosophy
v. @ules
vi. Organizational climate
10. Write a detailed essay on creating# sustaining and changing a culture.
I' Creatin! a (u*ture
II' Su"tainin! a (u*ture,
i. Selection
ii. $op management
iii. Socialization
iv. 'rearrival
v. 1ncounter
vi. =etamorphosis
III' C)an!in! a (u*ture,
i. & dramatic crisis
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ii. 6hange in leadership
13. 9ow is culture learnt! 12plain in detail about the sources of culture.
i. Stories
ii. @ituals iii.
Symbols iv.
7anguages
1(. 12plain the benefits and disadvantages of cultural diversity.
1eneit" o (u*tura* di3er"ity,
i. 'romotes humanistic values
ii. "mproves productivity and profitability
iii. 9elps to create a pool of talent
iv. 12change of innovative ideas
v. Other benefits of diversity
Di"ad3anta!e" o Cu*tura* Di3er"ity in t)e 6or+p*a(e,
i. :eelings of Discrimination
ii. 'rolonged Decision =a,ing
iii. $urnover
4. 12plain some of the important steps for managing cultural diversity.
i. 7earn the professional aspirations of all team members and support their
efforts to achieve them.
ii. 6reate opportunities for highly talented employees to be e2posed to leaders
who may not otherwise interact with them.
iii. 6reate crossEfunctional teams.
iv. Holunteer for community projects that teach tolerance# both directly and
indirectly.
v. Delegate fairly
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Hi.6ommunicate and support intolerance of inappropriate and disrespectful
behavior.
vii. 1valuate performance objectively.
viii. 6onsider individual needs when enforcing company policies and guidelines.
A (t i o n " t ) at M a + e a D i ere n ( e :
1. =a,e time to tal, privately with each of your employees on a regular basis.
. &s, your staff# individually# how they would prefer to be managed and how they
would prefer to be rewarded.
%. $he more actions you ta,e to demonstrate sincere interest in the individual# the
more li,ely your staff will want to Qgo the e2tra mile.Q
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UNIT 8
CONTROLLING
1. 12plain the nature or characteristics of controlling.
i. 'lanning and controlling are closely related
ii. 6ontrolling is forward loo,ing
iii. 6ontrolling is goal oriented
iv. 6ontrolling should be simple
v. 6ontrolling should be fle2ible
vi. 6ontrolling should be economically realistic
vii. 6ontrolling enables to ma,e /uic, actions
viii. 6ontrolling should be participative
i2. 6ontrolling system should be acceptable.
. ;ive a detailed account on the importance of controlling.
i. 6ontrolling is the basis for future action
ii. 6ontrolling is helpful to achieve goals
iii. 6ontrolling copes up with uncertainty
iv. 6ontrolling facilitates decentralization
v. :acilitates coordination
vi. "mproves morale and job satisfaction
vii. :acilitates supervision
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%. ;ive an elaborate account of the process of controlling.
I' E"tab*i")in! "tandard",
a" #$antitati!e standards:
i. 'roductivity standards
ii. 6ost standards
iii. $ime standards
%" #$alitati!e standards
II' Mea"ure a(tua* perorman(e
III' Compare a(tua* perorman(e a!ain"t "tandard"
I8' Ta+e (orre(ti3e a(tion
+. 12plain in detail about the critical control point standards and benchmar,ing
techni/ues.
Criti(a* (ontro* point "tandard",
i. 'hysical standards
ii. 6ost standards
iii. 6apital standards
iv. @evenue standards
v. 'rogram standards
vi. "ntangible standards
vii. ;oals as standards
viii. Strategic point control
1en()mar+in! te()ni4ue",
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i. "nternal benchmar,ing
ii. 6ompetitive benchmar,ing
iii. :unctional benchmar,ing
iv. ;eneric benchmar,ing
-. 12plain the re/uirements for effective control.
i. ?nderstandable measures
ii. &cceptable by employees
iii. 7in,age to strategies
iv. 8alance of objective and subjective data
v. &ccuracy
vi. :le2ibility
vii. $imeliness
viii. 1conomical
i2. @esponsibility for failures
.. Write a detailed essay on the various types of budgets.
I' Fun(tiona* bud!et",
i. Sales budget
ii. 'roduction budget
iii. =aterial budget
iv. 7abor budget
v. =anufacturing overheads budget
vi. &dministrative overhead budget
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vii. Distribution overhead budget
viii. 6ash budget
II' Tran"a(tion type",
i. Operating budget
ii. 6apital budget
III' A(ti3ity type",
i. :le2ible budget
ii. :i2ed budget
iii. =aster budget
I8' Time inter3a* ba"i",
i. 6ontinuous budget
ii. 'eriodic budget
0. Write a detailed essay on various nonEbudgetary control techni/ues.
i. 'ersonal observation
ii. Statistical data
iii. Special reports and analysis
iv. 8rea,Eeven analysis
Costs:
aB :i2ed costs
bB Hariable costs
cB $otal costs
&ethods o %rea'(e!en anal)sis:
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aB 6hart method AorB graphical method
bB &lgebraic method of 8rea,Eeven analysis
v. Operational audit
vi. :inancial statements
vii. @atio analysis
aB 'rofit measurement ratio
bB 7i/uidity ratio
cB Solvency ratio
dB &ctivity ratio
viii. 7ogistic control system
3. 12plain the important terms associated with cost control in detail.
i. :inancial statements
ii. "mportance of financial statements
iii. "ncome statement
iv. 8alance sheet
v. Cey words of cost control
vi. 6ash flow statement
(. 12plain the different types of special purchase systems in detail.
i. :orward buying
ii. $ender buying
iii. 8lan,et order
iv. Fero stoc,
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v. @ate contract
14. Write a detailed essay on the various steps involved in the standard
purchasing procedure.
i. 'rocessing the re/uirements
ii. 7ocation and choice of suppliers
iii. 'lacing of orders
iv. :ollow up and e2pediting
v. "nvoice chec, up and clearance
vi. =aintenance of records
11.;ive a detailed account on the various methods of purchasing.
i. 'urchasing according to the re/uirement
ii. 'rice forecasting method
iii. 'urchasing for some definite future period
iv. =ar,et purchasing
v. Speculative purchasing
vi. 6ontract purchasing
vii. Scheduled purchasing
viii. 'ublic buying
i2. $ender purchasing
1. ". 12plain the basic functions of maintenance. A3 mar,sB.
i. "nspection
ii. @epair
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iii. Overhaul
iv. 7ubrication
v. Salvage
"". Describe the basic techni/ues of planned maintenance control in detail.
A3 mar,sB.
i. "nventory facilities
ii. =ar,ing the e/uipment
iii. $he facility register
iv. =ar,ing schedule
v. 5ob specification
vi. =aintenance program
vii. 5ob report
1%. Write a detailed essay on the two types of maintenance control.
i. 8rea,down maintenance
ii. 'reventive maintenance
1+. Write a detailed account on statistical /uality control AS<6B.
i' Deinition
ii' Dimen"ion" o 4ua*ity
iii' Stati"ti(a* 4ua*ity (ontro* #SQC&
i3' Type" o (ontro* ()art" u"ed in "tati"ti(a* 4ua*ity (ontro*,
aB 6ontrol charts for attributes
bB 6ontrol charts for variables
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3' Pro(edure or "tati"ti(a* 4ua*ity (ontro*
3i' Ad3anta!e" o "tati"ti(a* 4ua*ity (ontro*,
aB "mprovement in product /uality
bB @eduction of scrap and rewor,
cB 'roduct /uality is uniformly maintained
dB 'roduct design can be improved
eB S<6 develops /uality
fB S<6 satisfies production department and the customer
1-. Write a detailed essay on the various factors affecting productivity.
I' E;terna* a(tor"
II' Interna* a(tor",
i. :actors related to product
ii. :actors related to methods
iii. :actors related to management
iv. :actors related to wor,ers
1.. 12plain in detail about the various elements of operations management system.
". "nputs
"". Outputs
""". 12ternal environment
"H. $ransformation process
i. 'lanning
ii. Systems design
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iii. Operating the system
iv. 6ontrolling the operations