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AR INSTITUTE OF MANAGEMENT & TECHNOLOGY, MEERUT
BCA- I SEMESTER
BCA S 103 PRINCIPLES OF MANAGEMENT
MM: 75 TIME: 3

Hrs.
SECTION-A
Attempt all questions- (75-100 words) (35=15)
Q.1 What are the different approaches of management?
Ans. There are three approaches of management. These are:
1. Classical Approach: Classical theories focused on "work and "organizations". They treated business
enterprise as "technical and "commercial entities.
2. The neo-classical approaches: Human Relation movements stressed that business is a "social system"
and as such much attention should be accorded to "humans" working in the enterprise.
3. Modern approaches: These approaches take a comprehensive view at management process. They
include:
a) Quantitative approach- data based analysis and decision approach.
b) System approach- focuses on inter-related issues among various elements involved.
c) Contingency approach- a ad-hoc approaches.

Q.2 List down the steps involved in principles of effective delegation.
Ans. Principles of effective delegation:
1. Determine what you will delegate. Effective delegation begins with defining your responsibilities.
Write down all of your activities and responsibilities. Review your master list and categorize all of the
items into two secondary lists: things you alone must do and things that others could do or help you
complete. Anything that falls into the second list presents an opportunity for delegation.
2. Choose the right person to delegate the task to. Andrew Carnegie said, "The secret to success lies not
in doing your own work, but in recognizing the right person to do it." The key to finding the right person
to delegate an assignment to is matching skills and attitude to the task at hand.
3. Clarify the desired results. When the results are clear, it allows the employee to use his or her own
creativity and resources to accomplish the task. An added benefit of effective delegation is the individual
may find a better and more effective way to accomplish the task or achieve the desired results.
4. Clearly define the employee's responsibility and authority as it relates to the delegated
task. Clearly communicate the expectation, responsibilities, and timeline. Be sure to ask the employee to
share his or her understanding.
5. Establish a follow up meeting or touch points. The follow up meetings should be focused on two
things-monitoring progress and determining the need for assistance. The number of follow up meetings
will vary based on the scope of the task or project and whether the employee is new or a long term
member of the department.

Q.3 Briefly classify the types of plans.
Ans. Types of plans:
1. Operational plans: The specific results expected from departments, work groups, and individuals are
the operational goals. These goals are precise and measurable. Process 150 sales applications each
week or Publish 20 books this quarter are examples of operational goals.
2. Tactical plans: A tactical plan is concerned with what the lower level units within each division must
do, how they must do it, and who is in charge at each level. Tactics are the means needed to activate a
strategy and make it work.
3. Strategic plans: A strategic plan is an outline of steps designed with the goals of the entire
organization as a whole in mind, rather than with the goals of specific divisions or departments.
Strategic planning begins with an organization's mission.
4. Contingency plans: Intelligent and successful management depends upon a constant pursuit of
adaptation, flexibility, and mastery of changing conditions. Strong management requires a keeping all
options open approach at all times that's where contingency planning comes in.

Q.4 Differentiate between coordination and cooperation.
Ans.
Basis` Co-ordination Co-operation
Meaning It is an orderly arrangement of group efforts
in pursuit of common goals.
It means mutual help willingly.
Scope It is broader than co-operation which
includes as well because it harmonizes the
group efforts.
It is termed as a part of co-ordination.
Process The function of co-ordination is performed
by top management.
The functions of co-operation are prepared by
persons at any level.
Requirements Co-ordination is required by employees and
departments at work irrespective of their
work.
Co-operation is emotional in nature because it
depends on the willingness of people working
together.
Relationship It establishes formal and informal
relationships.
It establishes informal relationship.
Freedom It is planned and entrusted by the central
authority & it is essential.
It depends upon the sweet will of the
individuals and therefore it is not necessary.
Support It seeks wholehearted support from various
people working at various levels.
Co-operation without co-ordination is fruitless
& therefore it may lead to unbalanced
developments.

Q.5 Name the theories of Motivation.
Ans. There is various theory of motivation. These are:






























Q.6 Write down the steps of planning process.
Ans. The various stages in the process of planning are as follows:
i. Goal setting: Plans are the means to achieve certain ends or objectives. Therefore, establishment of
organizational or overall objectives is the first step in planning. Setting objectives is the most crucial
part of planning. The organizational objectives should be set in key areas of operations.
ii. Developing the planning premises: Before plans are prepared, the assumptions and conditions
underlying them must be clearly defined these assumptions are called planning premises and they can be
identified through accurate forecasting of likely future events.
iii. Reviewing Limitations: In practice, several constraints or limitations affect the ability of an
organization to achieve its objectives. These limitations restrict the smooth operation of plans and they
must be anticipated and provided for.
iv. Deciding the planning period: Once the broad goals, planning premises and limitations are laid down,
the next step is to decide the period of planning. The planning period should be long enough to permit
the fulfillment of the commitments involved in a decision.
Theories of Motivation
Alderfers ERG Theory
Maslows Need Theory
Herzbergs Motivation
Hygiene Theory/Two Factor
Theory
Porter-Lawler Model
(Extension of VIE Theory)
McClellands Need Theory
of Motivation
McGregor Theory X and
Theory Y
Vrooms Valence and
Instrumentality Theory
Equity Theory of Work
Motivation
Reinforcement Theory
Goal-Setting Theory
v. Formulation of policies and strategies: After the goals are defined and planning premises are
identified, management can formulate policies and strategies for the accomplishment of desired results.
vi. Preparing operating plans: After the formulation of overall operating plans, the derivative or
supporting plans are prepared. Several medium range and short-range plans are required to implement
policies and strategies.
vii. Integration of plans: Different plans must be properly balanced so that they support one another.
Review and revision may be necessary before the plan is put into operation. Moreover, the various plans
must be communicated and explained to those responsible for putting them into practice.

Q.7 What is meant by Leading?
Ans. As one of the four functions of management, leading can be both extremely important and challenging.
Along with planning, organizing and controlling, all managers will execute these four functions of management.
From managing a local store to managing a large corporation, every manager will perform each of the functions
at some point in their jobs.
A manager should strive to become an inspiration to the rest of the employees. Employees will follow a
manager because the manager is the boss. However, a manager that is an inspiration means that employees
follow that person because they believe in what the manager is doing and they are trying to help the company
achieve its goals. Finding ways to inspire employee means coaching them and motivating them to succeed as
integral parts of the company.

Q.8 What do you understand by Span of management?
Ans. Span of management refers to the number of subordinates that a manger can efficiently
manage. Number of subordinates directly reporting to a manager is known as span. Span of management is
important for:
Determining the complexity of an individual managers job and
Determining shape and structure of the organization
Fewer the number of subordinates reporting to a manger larger the number of managers required.
Therefore span for control should be fixed.

Q.9 Discuss the concept of Organizational Structure?
Ans. An organizational structure consists of activities such as task allocation, coordination and supervision,
which are directed towards the achievement of organizational aims. It can also be considered as the viewing
glass or perspective through which individuals see their organization and its environment.

Organizations are a
variant of clustered entities.
An organization can be structured in many different ways, depending on their objectives. The structure of an
organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different functions and processes
to different entities such as the branch, department, workgroup and individual.

Q.10 What are the essential skills required for managers?
Ans. There are three fundamental skills of a manager:
Technical: The manager should be proficient at specific tasks. This in turn helps to provide the
credibility or knowledge to persuade people to do certain things.
Human: The manager has to know how to work with people.
Conceptual: The manager can see the organization as a whole. In other words, there has to be some
knowledge of the organization and what it does and how it interacts with other organizations.

Q.11 What are the main barriers to effective planning?
Ans. Barriers to Effective Planning:
i. Poor Communication: The planning process is complicated when communication within or between
groups is poor. Insufficient communication of tactics, plans and priorities leads to replication of effort
and people working.
ii. Resistance: The difficulties of the planning process are not always the result of accident or
incompetence. Not infrequently, people who are going to be affected by change don't like the idea and
resist it.
iii. Insufficient Resources: If plans become excessively ambitious, they can sometimes by stymied be a
simple lack of resources on the part of a company or organization. This is particularly true if the
planning involves physical plant renovation or expansion.
iv. Unknowable Future: No matter how thorough a planning process is, the future always holds surprises.
Planners who forget this fact tend to create excessively detailed and specific plans, and then have these
plans compromised by unexpected events or changing conditions.
v. Lack of Creative Thinking: The human mind tends to base its thoughts, activities and expectations on
what has happened in the past. Often, this is a valuable trait, but in a planning process it can become a
liability.
vi. Inertia: Inertia is most frequently a problem for large and long-established organizations. Inertia can be
created by a combination of archaic infrastructure, calcified modes of thinking, oversize bureaucracy
and fear of change.

Q.12 Differentiate between Centralization & Decentralization.
Ans. Centralization is said to be a process where the concentration of decision making is in a few hands. All the
important decision and actions at the lower level, all subjects and actions at the lower level are subject to the
approval of top management. According to Allen, Centralization is the systematic and consistent reservation
of authority at central points in the organization.
On the other hand, Decentralization is a systematic delegation of authority at all levels of management and in all
of the organization. In a decentralization concern, authority in retained by the top management for taking major
decisions and framing policies concerning the whole concern. Rest of the authority may be delegated to the
middle level and lower level of management.

Q.13 Give the difference between Authority & Responsibility.
Ans.
Basis Authority Responsibility
Meaning It is the right of the manager to
command his subordinates.
It is the obligation of the
subordinate to complete the
assigned work.
Origin It arises due to the position of
superior.
It arises due to superior-
subordinate relationship.
Flow It flows from top to bottom. It flows from bottom to top.
Period It has longer period as compared to It gets completed with the
responsibility. completion of the task so has the
shorter period.
Nature Authority is power. Responsibility is the duty.
Delegation Authority can be delegated to
others.
Responsibility cannot be delegated.

Q.14 List out the steps involved in formulation of policies.
Ans. Process of Policy Formulation:
Policy formation is a creative and analytical phase of planning. It is based on the underlying objectives of the
organization. Policy formulation process involves various steps or activities and their analysis in order arrive at
a decision. The important steps involved in policy formulation may be briefly described as follows:
i. Understanding of Corporate Objectives
ii. Analysis of the Environment
iii. Internal Analysis
iv. Definition of Policy Area
v. Choice or Selection of Policy
vi. Communication and Implementation of Policy
vii. Review and Modification of Policy

Q.15 List out the characteristics of control function.
Ans. Controlling has the following important features, which clearly bring out its nature:
i. Control is a Continuous Process:
ii. Purpose of Control is Positive:
iii. Controlling is a exercise at all levels in the Management Hierarchy:
iv. Control Guides Behavior of People and use of Resources and Facilities:.
v. Control is mainly Forwarding Looking
vi. Control Measures and Evaluate Performances
vii. Control Facilities Coping with Environment
viii. Control Closely Related to Planning

Q.16 Write down the main principles of organization.
Ans. The organizing process can be done efficiently if the managers have certain guidelines so that they can
take decisions and can act. To organize in an effective manner, the following principles of organization can be
used by a manager.
a) Principle of Specialization: According to the principle, the whole work of a concern should be divided
amongst the subordinates on the basis of qualifications, abilities and skills. It is through division of work
specialization can be achieved which results in effective organization.
b) Principle of Functional Definition: According to this principle, all the functions in a concern should be
completely and clearly defined to the managers and subordinates. This can be done by clearly defining
the duties, responsibilities, authority and relationships of people towards each other.
c) Principles of Span of Control/Supervision: According to this principle, span of control is a span of
supervision which depicts the number of employees that can be handled and controlled effectively by a
single manager. According to this principle, a manager should be able to handle what number of
employees under him should be decided. This decision can be taken by choosing either from a wide or
narrow span.
d) Principle of Scalar Chain: Scalar chain is a chain of command or authority which flows from top to
bottom. With a chain of authority available, wastages of resources are minimized, communication is
affected, overlapping of work is avoided and easy organization takes place. A scalar chain of command
facilitates work flow in an organization which helps in achievement of effective results.
e) Principle of Unity of Command: It implies one subordinate-one superior relationship. Every
subordinate is answerable and accountable to one boss at one time. This helps in avoiding
communication gaps and feedback and response is prompt.

Q.17 Write down the 7 Cs of communication.
Ans. 7Cs of communication:
1. Clear: When writing or speaking to someone, be clear about your goal or message. What is your
purpose in communicating with this person? If you're not sure, then your audience won't be sure either.
2. Concise: When you're concise in your communication, you stick to the point and keep it brief. Your
audience doesn't want to read six sentences when you could communicate your message in three.
3. Concrete: When your message is concrete, then your audience has a clear picture of what you're telling
them. There are details (but not too many!) and vivid facts, and there's laser-like focus. Your message is
solid.
4. Correct: When your communication is correct, it fits your audience. And correct communication is also
error-free communication.
5. Coherent: When your communication is coherent, it's logical. All points are connected and relevant to
the main topic and the tone and flow of the text is consistent.
6. Complete: In a complete message, the audience has everything they need to be informed and, if
applicable, take action.
7. Courteous: Courteous communication is friendly, open, and honest. There are no hidden insults or
passive-aggressive tones. You keep your reader's viewpoint in mind, and you're empathetic to their
needs.
Q.18 Is Management & Administration different? Why?
Ans. According to Theo Haimann, Administration means overall determination of policies, setting of major
objectives, the identification of general purposes and laying down of broad programmes and projects. It refers
to the activities of higher level. It lays down basic principles of the enterprise. According to Newman,
Administration means guidance, leadership & control of the efforts of the groups towards some common
goals.
Whereas, management involves conceiving, initiating and bringing together the various elements; coordinating,
actuating, integrating the diverse organizational components while sustaining the viability of the organization
towards some pre-determined goals. In other words, it is an art of getting things done through & with the people
in formally organized groups.

Q.19 What are the elements involve in decision making?
Ans. Elements in decision-making:
The Decision Makers
Goals to be served
Relevant Alternatives
Ordering of Alternatives
Choice of Alternatives

Q.20 What is meant by stress? State the forms of stress.
Ans. Stress is an internal alarm system that prepares your body for action in response to any real or perceived
threat or fear. In moderation, stress is natural, normal and necessary.
Stress arises when individuals perceive that they cannot adequately cope up with the demands being made on
them or with threats to their well being.
Stress results from an imbalance between demands and resources.
Forms of Stress:
EUSTRESS: Eustress or positive stress occurs when your level of stress is high enough to motivate you
to move into action to get things accomplished.
DISTRESS: Distress or negative stress occurs when your level of stress is either too high or too low. It
causes physical, psychological and behavioral problems.

Q.21 What do you understand by TQM?
Ans. Total Quality Management (TQM) is a comprehensive and structured approach to organizational
management that seeks to improve the quality of products and services through ongoing refinements in response
to continuous feedback. TQM requirements may be defined separately for a particular organization or may be in
adherence to established standards, such as the International Organization for Standardization's ISO 9000 series.
TQM can be applied to any type of organization; it originated in the manufacturing sector and has since been
adapted for use in almost every type of organization imaginable, including schools, highway maintenance, hotel
management, and churches. As a current focus of e-business, TQM is based on quality management from the
customer's point of view.


SECTION-B
(27.5=15)
Q.1 What do you understand by Supervision? Explain the qualities of a good Supervisor.
Ans. Supervision: Supervision means overseeing the subordinates at work. It involves a face-to-face contact
between the supervisor and his subordinates. The aim of supervision is to ensure that subordinates work
efficiently to accomplish the tasks assigned to them.
Supervisor: A supervisor is the lowest, or most-junior, management position. It is usually a step above lead
(Accounting Supervisor is senior to Lead Accounting Specialist), but below Manager.
A supervisor is responsible for the day-to-day performance of a small group. It may be a team, or a shift. The
supervisor has experience in what the group does, but is not necessarily better at it than everyone he/she
supervises. The supervisor's job is to guide the group toward its goals, see that all members of the team are
productive, and resolve problems as they arise.
A supervisor generally does not have the power to hire or fire employees or to promote them. A supervisor
usually recommends such action to the next level of management. The supervisor does, however, often have the
authority to change the work roles of the members of the team, for instance deciding which individual will work
at which station.
If vision implies seeing, the word supervision can be read as over-seeing, looking over someones shoulder
to check on them; and also super in the sense of outstanding or special, helping someone to extend their
professional skills and understanding. Both of these aspects will be relevant to varying degrees in supervision,
depending on the context. It can be helpful to think about supervision both in terms of development (which is
related to ongoing professional learning) and performance (which is related to clinical governance and standard
setting).
Managing a group of people who all have different personalities, abilities and who may or may not interact well
with each other is not an easy task and, in my opinion, to be successful you require certain qualities and skills
such as:
i. Excellent communication skills: You need to relay instructions very clearly so every part is well
understood in order to avoid mistakes. You also need to listen carefully to what your employees tell you.
A very good way to make sure someone has understood your instructions is to ask them to repeat
everything in their own words. To make sure you have received information correctly, you should say
"so what you are saying is..." and repeat in your own words. This simple method avoids many
misunderstandings.
ii. Fairness: Human beings react badly to what they perceive as unfair. So if you delegate work to others
make sure you are scrupulous in allocating pleasant and unpleasant tasks evenly.
iii. Good organizational skills are essential: It is your job to coordinate the work and allocate resources.
You should know where everything is and be prepared for the task.
iv. Knowledge: Part of the supervisor's job is to train others so it goes without saying that you should be at
least one step ahead of them.
v. Accountability: If a mistake is made by one of your team you should acknowledge responsibility every
time unless they have deliberately disobeyed your instructions.
vi. Efficiency: For your department to work like clockwork you should always have the next task ready to
be allocated to the right person so no-one spends any time doing nothing.
vii. Adaptability: Be ready to manage change efficiently as and when it happens even if you don't agree
with it.
viii. Social skills: You should be courteous at all times. When you have to tell someone off, it should be
done assertively but politely and never in front of other people. Everyone makes mistakes and nobody
needs to be humiliated. Shouting at people is not a good idea as they will become resentful and unhappy.
You will get more done with a smile than with rudeness. Don't be afraid to praise your team for a task
well done. The carrot always works better than the stick.
ix. Diplomacy: As a supervisor you have loyalty to the company who pays your wages but also loyalty to
your team who are responsible for your results. A difficult balance which requires a great deal of tact.
x. Self-discipline: As a supervisor, you should inspire respect so discretion in your private life is not
essential nor can you tell people off for lateness if you are always late yourself.

Q.2 Planning without control is meaningless and control without planning is a waste. Discuss. Also
explain the main techniques of control.
Ans. Planning and controlling are closely related to each other. After a plan becomes operational, control is
necessary to measure progress, to uncover deviations from the targets and to take corrective steps. It is also not
possible to think of an effective system of control without the existence of good plans. Billy E. Geotz has
explained the relationship between planning and controlling in the following words, "Managerial planning seeks
consistent, integrated and articulated programmes, while management control seeks to compel events conform
to plans".
Control is always based on planning. It is also true that in a running enterprise planning depends upon
controlling. Every manager uses certain standards for measuring and appraising performance which are laid
down by planning. The control process, in turn, may reveal the deficiency of plans and may lead to the revision
of planning. It may also lead to setting of new goals, improving staffing and making changes in the techniques
of supervision, motivation and leadership.
Planning without control is meaningless and control without planning is blind. Planning is an empty exercise
without controlling. A good plan will not bring any concrete result if the management is lacking in controlling.
Planning identifies the goals and determines the ways of achieving them. It is control which ensures attainment
of goals by evaluating performance and taking corrective action. Control presupposes the existence of standards
with which the actual performance is to be compared. If the standards of performance are not set in advance, the
manager will have no idea of `what is control'. Thus, planning must be done before the actual operation and
control should follow plans during and after the actual operation. The experience gained in controlling will help
improve the process of planning.
Controlling and coordination are twins of management. Control is an import-ant element in the process of
management, whereas coordination is the essence of management itself. Control is a function of management
like planning, organizing, staffing and directing. But coordination is an all-inclusive function. Each of the
managerial functions including controlling is an exercise in coordination. Thus, controlling is a facilitative
function that promotes coordination in the organization. If controlling does not lead to effective coordination, its
basic purpose will be lost.
Controlling and coordination are closely related in many ways. Firstly, authority is the basis of both the
processes. Secondly, both are performed by the managers at all levels. Thirdly, both are aimed at achieving
organizational goals. Fourthly, both are necessary for achieving stability, continuity and growth of the
organization and consistency, precision and discipline in the organization. Lastly, both control and coordination
are rational concepts in the sense that they seek to relate organizational means with organizational ends or goals.
They strive to maintain organizations as rational systems, relatively free from conflict, confusion and chaos.
Controlling is an important function of management. Without control, a manager cannot complete his job. All
other managerial functions are only preparatory steps for getting the work done, and controlling is concerned
with making sure that there is proper execution of these functions. Control is necessary whenever a manager
assigns duties and delegates authority to his subordinates. He must exercise control over the actions of his
subordinates so that the authority delegated to them is used properly.
The road signals at a road crossing appropriately illustrate the significance of control. Just as road signals are
essential to ensure accident-free and smooth traffic, management controls are necessary in any organization for
its smooth functioning. By controlling, the manager ensures that resources are obtained and used economically
and efficiently for the achievement of organizational objectives. A good control system provides timely
information to the manager which is very much useful for taking various decisions. Control simplifies
supervision by pointing out the significant deviations from the standards of performance. It keeps the
subordinates under check and brings discipline among them.

Q.3 Differentiate between Authority and Responsibility.
Ans. Responsibility and authority are two things which go hand in hand. People who are in an authoritarian
position have more responsibilities which come with the power of authority. Authority comes with special
skills, greater knowledge, and vast experience, or perhaps due to age and the type of education a person has
achieved during his lifetime. For example, the parents have the authority to make decisions for their children till
they are not grown up enough to make the decisions themselves. The senior-most people in an organization
have the authority to make decisions for the gain of the whole organization.
Responsibility, on the other hand, is another word for answerability. When one is responsible for some action or
has to take the responsibility for the consequences of actions, taken either by themselves or by somebody else
for whom they are responsible, this is answerability or responsibility. The consequences could be good or bad,
but the accountability is taken by the person who is responsible. It has been seen that the people who are in
authority are responsible for the combined actions or results of the whole organization. For example, if a
company is doing well, the CEO is appreciated for his efforts as he is in the authority to take decisions as well
as punish or reward anybody who is not working in the interests of the company. No matter who makes
mistakes, a senior or a junior person in the company, the results that occur due to the actions are to be answered
for by the senior-most people. Similarly, the parents have the authority to command obedience from their
children. No matter how they instill obedience or discipline in their children, their actions whether good or bad
are the responsibility of the parents. The parents are responsible and have to take the blame or the credit for the
children. Responsibility definitely involves doing certain duties and in a reasonable fashion. Responsibility
involves people being reasonable and having the duty to communicate to others what needs to be done. It also
involves the awareness of certain relationships one has with others. Authority and responsibility might go hand
in hand, but at times the people who are in power or authority choose to transfer the responsibility to others for
a lot of things. People in authority have the power. Thus, they get away with shirking responsibility too. The
person in authority might sometimes make blunders and not take responsibility for it. Thus, we can say that
authority is basically power to make decisions, power to command others and rule others, but it does not
necessarily mean that a person is a responsible person who is ready to be accountable for the people for whom
he has authority over. Whereas a responsible person might not be the most authoritative person but be
reasonable and skilled enough to be accountable.

Q.4 Explain with diagram of line and staff organization.
Ans. Line and staff organization is a modification of line organization and it is more complex than line organization.
According to this administrative organization, specialized and supportive activities are attached to the line of command
by appointing staff supervisors and staff specialists who are attached to the line authority. The power of command
always remains with the line executives and staff supervisors guide, advice and counsel the line executives. Personal
Secretary to the Managing Director is a staff official.

Features of Line and Staff Organization:
i. There are two types of staff :
Staff Assistants- P.A. to Managing Director, Secretary to Marketing Manager.
Staff Supervisor- Operation Control Manager, Quality Controller, PRO
ii. Line and Staff Organization is a compromise of line organization. It is more complex than line concern.
iii. Division of work and specialization takes place in line and staff organization.
iv. The whole organization is divided into different functional areas to which staff specialists are attached.
v. Efficiency can be achieved through the features of specialization.



vi. There are two lines of authority which flow at one time in a concern :
Line Authority
Staff Authority
vii. Power of command remains with the line executive and staff serves only as counselors.
Merits of Line and Staff Organization:
i. Relief to line of executives- In a line and staff organization, the advice and counseling which is provided
to the line executives divides the work between the two. The line executive can concentrate on the
execution of plans and they get relieved of dividing their attention to many areas.
ii. Expert advice- The line and staff organization facilitates expert advice to the line executive at the time
of need. The planning and investigation which is related to different matters can be done by the staff
specialist and line officers can concentrate on execution of plans.
iii. Benefit of Specialization- Line and staff through division of whole concern into two types of authority
divides the enterprise into parts and functional areas. This way every officer or official can concentrate in
its own area.
iv. Better co-ordination- Line and staff organization through specialization is able to provide better
decision making and concentration remains in few hands. This feature helps in bringing co- ordination in
work as every official is concentrating in their own area.
v. Benefits of Research and Development- Through the advice of specialized staff, the line executives,
and the line executives get time to execute plans by taking productive decisions which are helpful for a
concern. This gives a wide scope to the line executive to bring innovations and go for research work in
those areas. This is possible due to the presence of staff specialists.
vi. Training- Due to the presence of staff specialists and their expert advice serves as ground for training to
line officials. Line executives can give due concentration to their decision making. This in itself is a
training ground for them.
vii. Balanced decisions- The factor of specialization which is achieved by line staff helps in bringing co-
ordination. This relationship automatically ends up the line official to take better and balanced decision.
viii. Unity of action- Unity of action is a result of unified control. Control and its effectively take place when
co- ordination is present in the concern. In the line and staff authority all the officials have got
independence to make decisions. This serves as effective control in the whole enterprise.
Demerits of Line and Staff Organization:
i. Lack of understanding- In a line and staff organization, there are two authority flowing at one time.
This results in the confusion between the two. As a result, the workers are not able to understand as to
who is their commanding authority. Hence the problem of understanding can be a hurdle in effective
running.
ii. Lack of sound advice- The line official get used to the expertise advice of the staff. At times the staff
specialists also provide wrong decisions which the line executives have to consider. This can affect the
efficient running of the enterprise.
iii. Line and staff conflicts- Line and staff are two authorities which are flowing at the same time. The
factors of designations, status influence sentiments which are related to their relation, can pose a distress
on the minds of the employees. This leads to minimizing of co- ordination which hampers a concerns
working.
iv. Costly- In line and staff concern, the concerns have to maintain the high remuneration of staff specialist.
This proves to be costly for a concern with limited finance.
v. Assumption of authority- The power of concern is with the line official but the staff dislikes it as they
are the one more in mental work.
vi. Staff steals the show- In a line and staff concern, the higher returns are considered to be a product of
staff advice and counseling. The line officials feel dissatisfied and a feeling of distress enters a concern.
The satisfaction of line officials is very important for effective results.

Q.5 Management is a trinity of art, science & profession. In the light of this statement, explain the
nature of management.
Ans. Art: Art implies application of knowledge & skill to trying about desired results. An art may be
defined as personalized application of general theoretical principles for achieving best possible results. Art has
the following elements or characters-
i. Practical Knowledge: Every art requires practical knowledge therefore learning of theory is not
sufficient. It is very important to know practical application of theoretical principles. E.g. to become a
good painter, the person may not only be no different color and brushes but different designs,
dimensions, situations etc to use them appropriately.
ii. Personal Skill: Although theoretical base may be same for every artist, but each one has his own style
and approach towards his job. That is why the level of success and quality of performance differs from
one person to another.
iii. Creativity: Management is also creative in nature like any other art. It combines human and non-human
resources in useful way so as to achieve desired results. It tries to produce sweet music by combining
chords in an efficient manner.
iv. Perfection through practice: Practice makes a person perfect. Every artist becomes more and more
proficient through constant practice. Similarly managers learn through an art of trial and error initially
but application of management principles over the years makes them perfect in the job of managing.
v. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same manner,
management is also directed towards accomplishment of predetermined goals. Managers use various
resources like men, money, material, machinery & methods to promote growth of an organization.
vi. Thus, we can say that management is an art therefore it requires application of certain principles rather it
is an art of highest order because it deals with molding the attitude and behavior of people at work
towards desired goals.

Management as a Science: Science is an organized body of knowledge based on proper findings and exact
principles. It develops a relationship between cause and effect and its findings apply in all the situations. The
basic difference between an art and science is that art implies knowing how the application whereas science is
concerned with knowing why.
Science is characterized by following main features:
i. Universally acceptance principles - Scientific principles represents basic truth about a particular field
of enquiry. These principles may be applied in all situations, at all time & at all places. E.g. - Principle
of Unity of Command i.e. one man, one boss. This principle is applicable to all type of organization -
business or non business.
ii. Experimentation & Observation - Management principles are based on scientific enquiry &
observation and not only on the opinion of Henry Fayol. They have been developed through experiments
& practical experiences of large no. of managers. E.g. it is observed that fair remuneration to personal
helps in creating a satisfied work force.
iii. Cause & Effect Relationship - Principles of science lay down cause and effect relationship between
various variables. E.g. when metals are heated, they are expanded. The cause is heating & result is
expansion. The same is true for management; therefore it also establishes cause and effect relationship.
E.g. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. If you know
the cause i.e. lack of balance, the effect can be ascertained easily i.e. in effectiveness. Similarly if
workers are given bonuses, fair wages they will work hard but when not treated in fair and just manner,
reduces productivity of organization.
iv. Test of Validity & Predictability - Validity of scientific principles can be tested at any time or any
number of times i.e. they stand the test of time. Each time these tests will give same result. Moreover
future events can be predicted with reasonable accuracy by using scientific principles.
E.g. H2 & O2 will always give H2O. Principles of management can also be tested for validity. E.g.
principle of unity of command can be tested by comparing two persons - one having single boss and one
having 2 bosses. The performance of 1st person will be better than 2nd. It cannot be denied that
management has a systematic body of knowledge but it is not as exact as that of other physical sciences
like biology, physics, and chemistry etc. The main reason for the inexactness of science of management
is that it deals with human beings and it is very difficult to predict their behavior accurately.
Management as a Profession:-
Over a large few decades, factors such as growing size of business unit, separation of ownership from
management, growing competition etc have led to an increased demand for professionally qualified managers.
The task of manager has been quite specialized. As a result of these developments the management has reached
a stage where everything is to be managed professionally.
A profession may be defined as an occupation that requires specialized knowledge and intensive academic
preparations to which entry is regulated by a representative body. The essentials requirements of a profession
are:
Specialized body of knowledge.
Educational requirements and training.
Representative or professional body.
Code of conduct for self-regulation.
Social status.

Q.6 What are the requirements of effective control?
Ans. Requirements of effective control:
i. Focus on Objectives: The control system should always focus on objectives. It should aim to achieve
the objectives of the organization.
ii. Suitability: The control system should be suitable to the needs of the organization.
iii. Promptness: The control system should be prompt. That is, it should find out the deviations quickly.
This will help the management to correct the deviations quickly.
iv. Flexibility: The control system should be flexible. It should change according to the changes in plans,
situations, environments, etc. A rigid control system will always fail. Hence flexibility is necessary for a
control system.
v. Forward Looking: The control system should be forward-looking. It should forecast the future
deviations. That is, it should find out the deviations before it happens. It should also take steps to
prevent these future deviations.
vi. Economical: The control system should be economical. This means the cost of the control system
should not be more than its benefits.
vii. Simplicity: The control system should not be complicated. It should be easy to understand and simple to
use. Those who are going to use the control system should understand it clearly and completely.
viii. Motivating: The control system should be motivating. That is, it should give more importance to
preventing the mistakes and less importance to punishing the employees. So, it should encourage, not
discourage the employees.
ix. Suggestive: The control system should be suggestive and it should give complete answers for the
following questions :-
What is the Problem?
Where is the Problem?
How to solve the Problem?
x. Proper Standards: The control system should have proper standards. The standards should be very
clear. They should be definite, verifiable, specific and measurable. They should not be too high or too
low.

Q.7 Discuss the various functions of management.
Ans. Functions of Management:
The most widely accepted are functions of management given by KOONTZ and ODONNEL i.e. Planning,
Organizing, Staffing, Directing and Controlling.
For theoretical purposes, it may be convenient to separate the function of management but practically these functions
are overlapping in nature i.e. they are highly inseparable. Each function blends into the other & each affects the
performance of others.

Planning
Planning is the pre-determination of future course of action. It bridges the present with the future. It gives us an
idea about where we are and where we want to go. Planning involves the formulation of what is to be done,
how, when, where it is to be done. Who is to do it and how results are to be evaluated.
The steps in planning are:-
Determination of objectives for the organization.
Forecasting.
Decision-making.
Formulation of policies and procedures.
Preparation of schedules programmes and budgets.

Organizing
Organizing is the process of task allocation, delegation of authority and developing authority responsibility
relationship.
Organizing as a process involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.
Staffing
Staffing is the function involves hiring right persons at the right time, training and development of employees,
performance evaluation of employees, preparation of compensation package plan etc.
Staffing involves:
Manpower Planning (estimating man power in terms of searching, choose the person and giving
the right place).
Recruitment, selection & placement.
Training & development.
Remuneration.
Performance appraisal.
Promotions & transfer.
Directing
Directing function involves providing effective leadership, integrating people and tasks, effective
communication and providing climate for subordinates development.
Direction is that inert-personnel aspect of management which deals directly with influencing, guiding,
supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following
elements:
Supervision
Motivation
Leadership
Communication

Supervision- Implies overseeing the work of subordinates by their superiors. It is the act of watching &
directing work & workers.
Motivation- It means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives may be used for this purpose.
Leadership- It may be defined as a process by which manager guides and influence the work of
subordinates in desired direction.
Communications- It is the process of passing information, experience, opinion etc from one person to
another. It is a bridge of understanding.

Controlling
Controlling function involves checking the performance by comparing it with the desired results to see how
much has been achieved.
Therefore controlling has following steps:

Establishment of standard performance.
Measurement of actual performance.
Comparison of actual performance with the standards and finding out deviation if any.
Corrective action.

Q.8 What are the various levels of management? Explain.
Ans. The term Levels of Management refers to a line of demarcation between various managerial positions
in an organization. The number of levels in management increases when the size of the business and work force
increases and vice versa. The level of management determines a chain of command, the amount of authority &
status enjoyed by any managerial position. The levels of management can be classified in three broad
categories: -
Top level / Administrative level
Middle level / Executory
Low level / Supervisory / Operative / First-line managers
a) Top Level of Management: It consists of board of directors, chief executive or managing director. The top
management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more
time on planning and coordinating functions.
The role of the top management can be summarized as follows
Top management lays down the objectives and broad policies of the enterprise.
It issues necessary instructions for preparation of department budgets, procedures, schedules etc.
It prepares strategic plans & policies for the enterprise.
It appoints the executive for middle level i.e. departmental managers.
It controls & coordinates the activities of all the departments.
It is also responsible for maintaining a contact with the outside world.
It provides guidance and direction.
The top management is also responsible towards the shareholders for the performance of the enterprise.
b) Middle Level of Management: The branch managers and departmental managers constitute middle level. They
are responsible to the top management for the functioning of their department. They devote more time to
organizational and directional functions. In small organization, there is only one layer of middle level of management but
in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as
They execute the plans of the organization in accordance with the policies and directives of the top
management.
They make plans for the sub-units of the organization.
They participate in employment & training of lower level management.
They interpret and explain policies from top level management to lower level.
They are responsible for coordinating the activities within the division or department.
It also sends important reports and other important data to top level management.
They evaluate performance of junior managers.
They are also responsible for inspiring lower level managers towards better performance.
c) Lower Level of Management: Lower level is also known as supervisory / operative level of management. It
consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, Supervisory
management refers to those executives whose work has to be largely with personal oversight and direction of operative
employees. In other words, they are concerned with direction and controlling function of management. Their activities
include
Assigning of jobs and tasks to various workers.
They guide and instruct workers for day to day activities.
They are responsible for the quality as well as quantity of production.
They are also entrusted with the responsibility of maintaining good relation in the organization.
They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level
and higher level goals and objectives to the workers.
They help to solve the grievances of the workers.
They supervise & guide the sub-ordinates.
They are responsible for providing training to the workers.
They arrange necessary materials, machines, tools etc for getting the things done.
They prepare periodical reports about the performance of the workers.
They ensure discipline in the enterprise.
They motivate workers.
They are the image builders of the enterprise because they are in direct contact with the workers.

Q.9 Define Directing. What are its elements?
Ans. DIRECTING is said to be a process in which the managers instruct, guide and oversee the performance of
the workers to achieve predetermined goals. Directing is said to be the heart of management process. Planning,
organizing, staffing has got no importance if direction function does not take place.
Directing initiates action and it is from here actual work starts. Direction is said to be consisting of human
factors. In simple words, it can be described as providing guidance to workers is doing work. In field of
management, direction is said to be all those activities which are designed to encourage the subordinates to
work effectively and efficiently. According to Human, Directing consists of process or technique by which
instruction can be issued and operations can be carried out as originally planned Therefore, Directing is the
function of guiding, inspiring, overseeing and instructing people towards accomplishment of organizational
goals.
Elements of Direction
Supervision
"Guiding and directing efforts of employees and other resources to accomplish stated work outputs"
- Terry and Franklin.
Supervision is an element of direction.
"Day-to-day relationship between an executive and his immediate assistant and covers training,
direction, motivation, coordination, maintenance of discipline, etc."
- Newman and Warren.
Supervision denotes the functions performed by the supervisors.
Motivation
"Motivation is the complex force starting and keeping a person at work in an organization. Motivation is
something that moves the person to action, and continues him in the course of action already initiates."
- Dubin.
Motivation is the core of management. Technically, the term motivation can be traced to the Latin word
movere, which means 'to move'. Motivating is a term which implies that one person induces another, to engage
in action by ensuring that a channel to satisfy the motive becomes available to the individual. Motive is
energizer of action, motivating is the channelization and activation of motives, motivation is the work behavior
itself. Motivation depends on motives and motivating. It is a complex process.
Leadership
"Leadership is essentially a continuous process of influencing behaviour. A leader breathes life into the
group and motivates it towards goals. The lukewarm desires for achievement are transformed into
burning passion for accomplishment"
- George R. Terry.
Leadership is the process of influencing the behavior of others to work willingly and enthusiastically for
achieving predetermined goals. It is an essential ingredient for successful organization. The successful
organization has one major attribute that sets it apart from unsuccessful organization that is dynamic and
effective leadership.
Communication
"Communication is the transfer of information from one person to another person. It is a way of
reaching others by transmitting ideas, facts, thoughts, feeling sand values."
- Newstrom and Davis.
Communication is regarded as basic to the functioning of the organization, in its absence; the organization
would cease to exist. It is the process through which two or more persons come to exchange ideas and
understanding among themselves.
Q.10 Differentiate between the theory of Taylors scientific management & Fayols theory of
organization.
Ans. Scientific Management
The concept of scientific management was developed by Frederick Taylor (1856-1915) in late 19th century. The
core idea of scientific management was to increase the efficiency of workers through rationalization and
standardization of work. The main concepts and techniques used to achieve increased efficiency were division
of labor, time and motion studies, work measurements and piece-rate wages.

Administrative Management
The concept of administrative management was introduced by Henry Fayol (1841-1925) and focused on the
management process and principles of management. He created a functional approach to management and
argued that management is a universal process that consists of planning, organizing, commanding, coordinating
and controlling.
Comparison between Taylor and Fayol
S. No. Basis of comparison Taylor Fayol

1. Perspective Shop floor level Top management
2. Focus Improving productivity
through work
simplification &
standardization
Improving overall
administration through
general principles
3. Personality Scientist Practitioner
4. Results Scientific observation
and measurement
Universal truths
developed from personal
experience
5. Major contribution Science of industrial
management
A systematic theory of
management

Q.11 Explain the Elton Mayo theory of management.
Ans. Hawthorne Experiments: George Elton Mayo (December 26, 1880 September 7, 1949) was an Australian
psychologist, sociologist and organization theorist.
Elton Mayos Study based on Employee Motivation and Work Productivity. E. Mayo conducted the Hawthorne
experiments at Hawthorne plant of general electronic company (GEC) and manufacturing telephone system bell
Chicago with 30,000 workers. In the plant, there prevailed a great deal of discontent and dissatisfaction among
its employees. The experiment was conducted in many phases and the results of the study are known as
Hawthorne experiments.
The researchers George Elton Mayo and Fritz J. Roethlisberger of the Harvard Business School were invited to
join in studies at the Hawthorne works in 1927, which is lasted up to 1932 with the objective of the experiment
was to find out the behaviour and attitude of employees under better working conditions. Earlier from 1924 to
1927, the management requested National Academy of Sciences to investigate the reasons for dissatisfaction of
employees and decrease in productivity. On this basis, Prof. Elton Mayo and his team conducted researches in
four phases.
Following experiments were conducted under Hawthorne experiments:
Illumination experiments (1924-27)
Relay assembly room experiments (1927-1928)
Mass interviewing programme (1928-1930)
Bank wiring room study (1931-1932)
I. Illumination experiments: This experiment was conducted to establish relationship between output and
illumination. When the intensity of light was increased, the output also increased. The output showed an
upward trend even when the illumination was gradually brought down to the normal level. Therefore, it
was concluded that there is no consistent relationship between output of workers and illumination in the
factory. There must be some other factor which affected productivity.
II. Relay assembly room experiments: This experiment was done to knowing not only the impact of
illumination on production but also the other factors like length of the working day, rest hours, and other
physical conditions. In this experiment, a small homogeneous work-group of six girls was constituted.
These girls were friendly to each other and were asked to work in a very informal atmosphere under the
supervision of a researcher. Productivity and morale increased considerably during the period of the
experiment. Productivity went on increasing and stabilized at a high level even when all the
improvements were taken away and the pre-test conditions were reintroduced. The researchers
concluded that socio-psychological factors such as feeling of being important, recognition, attention,
participation, cohesive work-group, and non-directive supervision held the key for higher productivity.
III. Mass interviewing programme: After the second phase of experiment researchers begin to realize the
importance of informal groups. They conducted about 20,000 interviews between 1928 & 1930 to
determine the employees attitude towards company, supervision, insurance plans, promotion.
Interviews asked questions considered important by managers and researchers. The researchers observed
that the replies of the workmen were guarded. Therefore, this approach was replaced by an indirect
technique, where the interviewer simply listened to what the workmen had to say. The findings
confirmed the importance of social factors at work in the total work environment.
IV. Bank wiring room study: The objective of fourth phase of research programme was to conduct an
observational analysis of the informal work groups to find out the social aspect of work organization.
There were 14 men employed on bank wiring including nine wiremen, three solder men and two
inspectors. So, workers were asked to install, wires to switches and they have been given certain target
in a day. They were failed to achieve that. They all performed according to norms of the group not as an
individual because they have set their own norms of behaviour including personal conduct. There are
some following reasons for low performance:
Fear of unemployment of less-productive workers.
The group had its own unofficial standards of performance.
Individual output remained fairly constant over a period of time.
Protection of slower workers.

Q.12 Explain the advantages & disadvantages of Centralization & Decentralization.
Ans. Centralization is said to be a process where the concentration of decision making is in a few hands. All
the important decision and actions at the lower level, all subjects and actions at the lower level are subject to the
approval of top management. According to Allen, Centralization is the systematic and consistent reservation
of authority at central points in the organization.
Advantages of Centralization:
i. Reduced cost The standardized procedure and method helps in considerably reduction of office cost.
Office cost is reduced as it does not emphasize on more specialists, and more departmental machines
and equipment.
ii. Uniformity in action Uniformity in action is established throughout the organization because of
central administrative control. The same executive supervises the work and same type of office
equipments are used which ensure uniform performance of activities.
iii. Personal leadership Centralization encourages and permits personal leadership. The introduction of
personal leadership facilitates quick action, aggressive marketing and attainment of pin-pointed
objective or purpose,
iv. Flexibility Centralization permits flexibility and adaptability of the organization to the changed
circumstances. Occasional pressure of extra clerical work is handled with the existing staff.
v. Improved quality of work Improved quality of work is possible because of standardized procedure,
better supervision and use of improved- machinery.
vi. Better co-ordination Centralization facilitates better coordination among various operations. Direct
control and supervision are facilitated which results in less likelihood of conflict of authority and
duplication of work.
vii. Quick decision- For taking advantage of rare opportunities coming in the way, it is necessary that
decision should be quickly taken lest the opportunity so available may be slipped away. Centralized
office organization helps in such a quick decision.
viii. No duplication of work- centralized personal leadership, uniformity of activities and specialization
leave any scope for duplication of work in the office. Thus extra labor and extra cost involved in
duplication is avoided and economy is ensured.
Disadvantages of Centralization:
Opponents attribute the following disadvantages against centralization.
i. Delay in work Centralization creates loss of man-hours and delay in performance of work because of
transmission of records from and to the central control room. Quick decision is not possible which also
results delay in office work.
ii. Remote control Better supervision is not possible as the executives are under heavy pressure of work.
Slackness in work is developed in the absence of better control and supervision.
iii. No loyalty In centralization there is no subordinate's initiative in work because they are required to do
such works which they were asked for. Workers work like machine which results in no involvement in
work and absence of zeal. All these factors stand as barrier in the development of loyalty to work.
iv. No SecrecySecrecy is not possible in centralized set up organization because here orders and
decisions flow from one place and is conveyed to all.
v. No special attention In centralization no special attention is given to special work as all works are
done at one place.
Decentralization: On the other hand, Decentralization is a systematic delegation of authority at all levels of
management and in all of the organization. In a decentralization concern, authority in retained by the top
management for taking major decisions and framing policies concerning the whole concern. Rest of the
authority may be delegated to the middle level and lower level of management.

Advantages of decentralization:
i. Decentralization encourage under consultation i.e. no department in the organization is neglected in the
decision making process.
ii. It increases efficiency of the organization.
iii. Quick development is achieved in a decentralize system because there is opportunity for development in
this system (every unit has the tendency to develop even faster than others.
iv. It speeds up operational decisions in the organization: For example, species working in the production
sector of the organization goods can take major decisions about local matters without further reference.
This is especially relevant for diverse product groups.
v. It brings spirit of belonging: i.e. junior managers are happy because they can delegate authorities.
vi. It encourages initiative and motivation: Middle management can exercise power for greater authority in
a decentralized situation. Also, it stimulates managers and supervisors to use their initiative.
vii. It copes better with change: Organization that are operating in a highly flexible market (rapid changing
technology) can cope more easily if they decentralize decision to those in touch with the immediate
problems of adaptation.
Limitations of Decentralization:
i. Decentralization may lead to the problem of co-ordination at the level of an enterprise as the decision-
making authority is not concentrated.
ii. Decentralization may lead to inconsistencies (i.e. absence of uniformity) at the Organization level. For
example, uniform policies or procedures may not be followed for the same type of work in different
divisions.
iii. Decentralization is costly as it raises administrative expenses on account of requirement of trained
personnel to accept authority at lower levels. Even the services of such highly paid manpower may not
be utilized fully, particularly in small organizations.
iv. Introduction of decentralization may be difficult or may not be practicable in small concerns where
product lines are not broad enough for the creation of autonomous units for administrative purposes.
v. Decentralization creates special problems particularly when the enterprise is facing number of
uncertainties or emergency situations. The decision-making process gets delayed and even correct
decisions as per the changing situations may not be possible.

Q.13 Differentiate between Direction & Supervision.
Ans.
Basis of Differences Direction Supervision
Meaning Direction is a function of
instructing, guiding and
motivating the subordinates
for the achievement of
organizational goals.
Supervision is a function of
controlling the
subordinates to ensure that
work is being done in
accordance with the
instructions issued.
Elements Direction includes
communication, leadership,
motivation and supervision.
Supervision is only an
element of direction
function.
Importance in Hierarchy Direction is important at all
levels of the organization, i.e.,
from top management to
operative level.
Supervision is important at
the operative level because
the activities of workers
must be guided and
controlled continuously.
Face to Face Contact Direction does not need
frequent face-to-face contact
between the superior and the
subordinate.
Supervision involves
frequent face-to-face
contact between the
superior and the
subordinate.

Q.14 Discuss the system & situational approach.
Ans. System Approach
The systems approach to management implies that every manager should be much more precise about decision-
making and information flow. For this to be effective, a company should have an overall system of corporate
objectives. First a detailed systems study will be necessary to decide on the best objectives and then subsidiary
systems must be set up to realize these objectives as efficiently as possible. This paper is directed at senior
management and is a simple attempt to emphasize the urgent need to apply the systems approach, both in
government and industry.
Contingency Approach
The contingency approach is relatively new approach to management. It is an extension of the systems
approach. The basic theme of the contingency approach is that organizations have to cope with different
situations in different ways. There is no single best way of managing applicable to all situations. The
contingency approach attempts to match specific concepts and techniques of managing to the specific situation
at hand in order to attain organizational objectives most effectively.
The main features of the contingency approach are as follows:
i. Management is entirely situational. The application and effectiveness of any technique is contingent on
the situation. In other words, the conditions and complexity of the situation determine which measure or
technique is applicable and effective.
ii. Management should, therefore, match or fit its approach to the requirements of the particular situation.
To be effective management policies and practices must respond to environmental changes. The
organizational structure, the leadership style, and the control system all should be designed to fit the
particular situation.
iii. Since managements success depends on its ability to cope with its environment; it should sharpen its
diagnostic skills so as to anticipate and comprehend the environmental changes.
iv. Managers should understand that there is no one best way to manage. They must not consider
management principles and techniques universal.

Q.15 Explain the concept of motivation. Discuss its nature & significance.
Ans. Motivation: The term motivation has been derived from the word motive. A motive is an inner state
that activated, energizes or moves an individual and channelizes his behavior towards goals.
Motivation is a psychological process. In brief we can say motivation is a relation between need, drive and goal.
Nature of Motivation:
Psychological concept
Continuous process
Complex and difficult function
Circular process
Importance of Motivation:
Higher efficiency
Low absenteeism and turnover.
Facilitates change
Human relations

Q.16 Distinguish between Theory X & Theory Y.
Ans. McGregor Theory X & Theory Y
McGregor developed two theories of human behavior at work: Theory and X and Theory Y. He did not imply
that workers would be one type or the other. Rather, he saw the two theories as two extremes - with a whole
spectrum of possible behaviors in between.
Theory X workers could be described as follows:
Individuals who dislike work and avoid it where possible
Individuals who lack ambition dislike responsibility and prefer to be led
Individuals who desire security
The management implications for Theory X workers were that, to achieve organizational objectives, a business
would need to impose a management system of coercion, control and punishment.
Theory X and Theory Y: Douglas McGregor proposed a Theory X and Theory Y model to explain basic human
traits.
Theory X assumptions is:
The average human being has an inherent dislike of work and will avoid it if he can.
Most people must be coerced, controlled, directed or threatened with punishment to get them to expend
adequate effort towards the achievement of organizational objectives.
The average human being prefers to be directed, wishes to avoid responsibility, has relatively little
ambition, and wants security above all.
On the other hand, Theory Y makes different assumptions about the nature of people:
Expenditure of physical and mental effort in work is as natural as play or rest. The average human being
does not inherently dislike work, which can be a source of satisfaction.
External control and the threat of punishment are not the only means of bringing about effort. People can
exercise self-direction to achieve objectives to which they are committed.
Commitment to objectives is a result of the rewards associated with their achievement. The most
significant of those rewards is satisfaction of the self -actualization needs.
The average human being learns, under proper conditions, not only to accept, but to seek, responsibility.
Avoidance of responsibility, emphasis on security and low ambition are the result of experience and are
not inherent in mans nature.
Capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of
organizational problems is widely, not narrowly, distributed in the population.
Under conditions of modern industrial life, the intellectual potential of the average human being is only
partially utilized.

Q.17 What was Max Webers contribution to management?
Ans. Max Weber Theory: Bureaucratic Model: Bureaucracy is an administrative system designed to
accomplish large scale administrative tasks by systematically coordinating the work of many individuals. Weber
said that in any organization there are three types of power: traditional, charismatic and rational legal. He has
emphasized that bureaucratic type of power is the ideal one. Max Weber (1864-1920), a German sociologist.
Weber specified several characteristics and elements of his ideal organization structure.
Weber identified three types of legitimate authority:
Rational-legal authority: Obedience is owned to a legally established position or rank within the
hierarchy of a business, military unit, government, and so on.
Traditional authority: People obey a person because he belongs to certain class or occupies a position
traditionally recognized as possessing authority, such as a royal family.
Charismatic authority: Obedience is based on the followers belief that a person has some special
power or appeal.
Webers theory of bureaucracy recognizes rational-legal authority as the most important type in organizations.
Under traditional authority, leaders are not chosen for their competence, and charismatic authority is too
emotional and irrational.
Characteristics or Features of Bureaucracy
Weber has given a number of features or characteristics of bureaucratic organizations. These are:
Administrative Class: Bureaucratic organizations generally have administrative class responsible for
maintaining coordinative activities of the members. Members are whole time employees their tenure in
the organization is determined by the rules and regulations of the organization. They are selected for the
purpose of employment based on their competence.
Hierarchy: Hierarchy is a system of ranking various positions in descending scale from top to bottom of
the organization. This hierarchy serves as lines of communication and delegation of authority. It implies
that communication coming down or going up must pass through each position.
Division of Work: Work of the organization is divided on the basis of specialization to take the
advantage of division of labor. Thus, division of labor tries to ensure that each office has a clearly-
defined area of working within the organization and each one knows the areas in which he operates and
the areas in which he must not get involve from action so that he does not go beyond the boundary
between his role and those of others.
Official Rules: A basic feature of bureaucratic organization is that administrative process is continuous
and governed by official rules. Rules provide the benefits of stability, continuity, and predictability and
each official knows precisely the outcome of his behavior in a particular matter.
Impersonal Relationships: A notable feature of bureaucracy is that relationships among individuals are
governed through the system of official authority and rules. Official positions are free from personal
involvement, emotions and sentiments. Thus, decisions are governed by rational factors rather than
personal factors.
Official Record: Bureaucratic organization is characterized by maintenance of proper official records.
The decisions and activities of the organization are formally recorded and preserved for future reference.

Q.18 What is meant by Communication? Discuss in brief its Scope and Objectives.
Ans. Meaning & Definition: The word communication has been derived from the Latin Word, Communis or
Communiacare which means to make common.
Communication is the activity or process of expressing or transmitting ideas and thoughts from one person to
another person for the purpose of creating understanding in the thinking of the person receiving the
communication. It involves a systematic process of telling, listening and understanding. Communication is an
art which people use for mutual understanding.
Communication is an intercourse by words, letters, symbols or message: and is a way that one organization
member shares meaning and understanding with another.
Given by- Koontz and ODonnell

Scope of Communication:
i. Information sharing: The main purpose of communication is to transmit information from a source to
target individuals or groups. Various types of information are transmitted in the organization rules and
regulations, policies and changes and development in the organization etc.
ii. Feedback: There is a need to give feedback to the employees on their achievements, to the departments
on their performance, and to the higher management on the fulfillment of goals.
iii. Control: The management information system is well known as a control mechanism. Information is
transmitted to ensure that plans are being carried out according to the original design.
iv. Influence: The purpose of communication is to influence people. The manager communicates to create
a good working environment, right attitudes, and friendly working relationship.
v. Problem solving: In many cases communications aim at solving problems. Communication between the
management and the unions on some issues is aimed at finding a solution. Alternate solutions are also
put forward to solve the problems.
vi. Decision-making: For arriving at a decision several kinds of communication are needed, e.g.; exchange
of information, views and available alternatives etc., thus communication helps a great deal in decision
making.
vii. Group building: Communication helps in building relationship. Communication provides the necessary
lubricants for the proper functioning of a group.
viii. Gate keeping: Communication helps to build linkages of the organization with the outside world. The
organization can use its environment to increase its effectiveness.
Objective of communication:
i. Conveying the right message: The main objective of communication is to convey the right message to
the right person for whom it is meant.
ii. Coordination of effort: Communication is an effective tool for coordinating the activities of different
persons engaged in running a business. All the workers have to do all work in the same direction and
help to each other.
iii. Good industrial relations: Communication develops good industrial relations as it conveys the
feelings, ideas, opinions and viewpoints of one party to the other party. The two parties like the
management and the subordinates come closer through communication.
iv. Development of managerial skills: Communication helps managers to understand human behavior at
work. The managers learn many things by the communication of facts, ideas, opinions, information etc.
and value to knowledge of managers about various happenings in the organization and behavior of
people.


SECTION-C
Attempt any three questions (300-350 words) (315=45)

Q.1 Briefly discuss the Leadership Styles and Approaches.
Ans. Leadership: Leadership is the process of influencing the behavior of others to work willingly and
enthusiastically for achieving predetermined goals. It is the ability of a leader to induce subordinates to work
with confidence and zeal. Leadership changes potential into reality. It is the final act that brings to success or
the potential, i.e., in an organization and its people. Thus, leadership is the ability to influence a group toward
the achievement of goals.
According to Alan Keith, Leadership is ultimately about creating a way for people to contribute to making
something extraordinary happen.
Leadership Styles:
i. Authoritarian Leadership (Autocratic): Authoritarian leaders, also known as autocratic leaders,
provide clear expectations for what needs to be done, when it should be done, and how it should be
done. There is also a clear division between the leader and the followers. Authoritarian leaders make
decisions independently with little or no input from the rest of the group.
ii. Participative Leadership (Democratic): Lewiss study found that participative leadership, also known
as democratic leadership, is generally the most effective leadership style. Democratic leaders offer
guidance to group members, but they also participate in the group and allow input from other group
members. In Lewiss study, children in this group were less productive than the members of the
authoritarian group, but their contributions were of a much higher quality.
Participative leaders encourage group members to participate, but retain the final say over the decision-
making process. Group members feel engaged in the process and are more motivated and creative.
iii. Delegative (Laissez-Faire) Leadership: Researchers found that children under delegative leadership,
also known as laissez-fair leadership, were the least productive of all three groups. The children in this
group also made more demands on the leader, showed little cooperation and were unable to work
independently.
Delegate leaders offer little or no guidance to group members and leave decision-making up to group
members. While this style can be effective in situations where group members are highly qualified in an
area of expertise, it often leads to poorly defined roles and a lack of motivation.
Leadership Approaches:
i. The Trait Approach to Leadership: The Trait Approach arose from the Great Man theory as a way
of identifying the key characteristics of successful leaders. It was believed that through this approach
critical leadership traits could be isolated and that people with such traits could then be recruited,
selected, and installed into leadership positions. This approach was common in the military and is still
used as a set of criteria to select candidates for commissions. The problem with the trait approach lies in
the fact that almost as many traits as studies undertaken were identified. After several years of such
research, it became apparent that no consistent traits could be identified. Although some traits were
found in a considerable number of studies, the results were generally inconclusive. Some leaders might
have possessed certain traits but the absence of them did not necessarily mean that the person was not a
leader.
Although there was little consistency in the results of the various trait studies, however, some traits did
appear more frequently than others, including: technical skill, friendliness, task motivation, application
to task, group task supportiveness, social skill, emotional control, administrative skill, general charisma,
and intelligence. Of these, the most widely explored has tended to be charisma.
ii. The Behavioral School: The results of the trait studies were inconclusive. Traits, amongst other things,
were hard to measure. How, for example, do we measure traits such as honesty, integrity, loyalty, or
diligence? Another approach in the study of leadership had to be found. After the publication of the late
Douglas McGregor's classic book The Human Side of Enterprise in 1960, attention shifted to
behavioral theories. McGregor was a teacher, researcher, and consultant whose work was considered
to be "on the cutting edge" of managing people. He influenced all the behavioral theories, which
emphasize focusing on human relationships, along with output and performance.
iii. McGregors Theory X & Theory Y Managers: Although not strictly speaking a theory of leadership,
the leadership strategy of effectively-used participative management proposed in Douglas McGregor's
book has had a tremendous impact on managers. The most publicized concept is McGregor's thesis that
leadership strategies are influenced by a leader's assumptions about human nature. As a result of his
experience as a consultant, McGregor summarized two contrasting sets of assumptions made by
managers in industry.

Theory X managers believe that:
The average human being has an
inherent dislike of work and will avoid it if
Possible.
Because of this human characteristic,
most people must be coerced,
controlled, directed, or threatened with
punishment to get them to put forth
adequate effort to achieve organizational
objectives.
The average human being prefers to be
directed, wishes to avoid responsibility,
has relatively little ambition, and wants
Theory Y managers believe that:
The expenditure of physical and mental effort
in work is as natural as play or rest, and the
average human being, under proper conditions,
learns not only to accept but to seek
responsibility.

People will exercise self-direction and self-
control to achieve objectives to which they are
committed.

The capacity to exercise a relatively high
level of imagination, ingenuity, and creativity
in the solution of organizational problems is
security above all else. widely, not
narrowly, distributed in the population, and the
intellectual potentialities of the average human
being are only partially utilized under the
conditions of modern industrial life.

Q.2 What are the various Barriers of communication? Also explain the various ways of overcoming
barriers.
Ans. Introduction: Communication is a complex process wherein information is shared between individuals
through a common system of symbols, signs, and behavior expressing, feelings, ideas, views, opinions, etc.
People communicate to satisfy needs.
This poor (or ineffective or unsuccessful or failed) communication is caused by a large number of barriers. We
will however be discussing them under three broad categories.
Types of Barriers:
Barriers of communication can be classified as under:
1. Semantic Barriers: The obstructions that come in the process of encoding or decoding the message are
known as semantic barriers. Some of them are as follows:
a) Different Language: Employees in organization have no common language. This is obvious barrier
where there is no common language to convey ideas, feelings and information.
b) Words: Words and symbols used have several meanings depending upon the context in which they are
used. Same word can have different meanings. Similar sounding words like access and excess,
flour and flower, cite, site and sight can cause misunderstanding in speech.
c) Pictures: Maps, graphs, charts, blueprints, and three dimensional models etc, pictures should be
supported with proper words; otherwise the receiver may get confused and might not understand
properly.
d) Actions: Actions include gestures, movements and body language. Proper actions make communication
effective.
e) Poor Vocabulary: The communicator should use the clear and precise meaning of the used words and
their appropriate replacement, if needed.
2. Emotional or Psychological Barriers: These arise from motives, attitudes, judgement, sentiments,
emotions, and social values of participants. These create psychological distance that hinders the communication
or partly filters it out, or causes misinterpretation, thereby making the communication inadequate. Following are
some emotional barriers:
a) Loss in Transmission and Retentions: Communication when passed through various levels in an
organization, its accuracy gets decreased.
b) Distrust of Communicator: Mangers own subordinates sometimes distrust the communication,
especially when he lacks self-confidence, or is less competent in his position.
c) Failure to Communicate: Sometimes managers do not communicate the needed message to their
subordinates either due to laziness, or they arbitrarily assume that everybody has got the information, or
they may hide information deliberately to embarrass the subordinate.
d) Undue Reliance on the Written Word (Order): In this case, employees hesitate in accepting the face
to face verbal communication of their superiors because the oral orders of superiors are not consistent
with the written policies of the organization. Only written communication is taken seriously making
organizational verbal communication ineffective.
3. Physical Barriers: Some physical barriers are as follows:
a) Noise: Any disturbance or interference that reduces the clarity and effectiveness of communication is
called noise.
b) Improper Time: It also hinders the process of communication. For example, a phone call at midnight,
interrupting sleep, further irritates the receiver, if message is not urgent.
c) Distance: Long distance between the senders and receivers can also obstruct effective communication.
4. Organizational Barriers: Major organizational barriers are as follows:
a) Organizational policy: If the policy hindrance in the free flows of communication in different directions,
communication would not be smooth and effective.
b) Organizational Rules & Regulation: Organizational rules & regulations prescribing the different sub-
matter along the formal communication may restrict the flow of messages and act as hindrance in the
communication process.
5. Personal Barriers: As communication is basically an interpersonal process, many personal factors inherent
in the sender and receiver influence the flow of communication:
I. Barriers in Superiors: Superiors play an important role in communication. Because of their
hierarchical position, superiors act as barriers in a number of ways as follows:
a) Attitude of superiors: If the attitude is unfavorable, there is greater possibility of filtering or coloring of
the information.
b) Fear of challenge to authority: Superiors many times withhold the upward or downward flow of
information for the fear of disclose of their own weaknesses, especially when superior lacks self-
confidence.
c) Underestimation of their subordinates: The superiors generally perceive that their subordinates are
less competent and are not capable of advising their superiors. This stops the superiors to talk to their
subordinates.
d) Ignoring the juniors: Superiors ignore their juniors and do not pass the information, just as to maintain
their importance.
II. Barriers Regarding Subordinates: Factors like attitude, lack of time etc. adversely affect the
subordinates participation in communication process. Two more factors, blocking upward
communication are:
a) Unwillingness to communicate: The subordinates generally are not willing to communicate upward any
information which is likely to affect them adversely.
b) Poor Listening: Most of the times managers just hear, but not attentively.
c) Egotism: The self-centered persons think that their own ideas are more important and others are wrong.
Such people are very bad listeners.
d) Emotions: Effective communication requires a clear heart and a silent mind.
6. Socio-psychological Barriers: Socio-psychological this comes out of attitudes, emotions, status, source of
communication, inattentiveness, poor retention, unsolicited communication, etc. People attend to stimuli in the
environment in very different ways. Communication fails if there are hasty judgments, refusal to listen to a
problem, distraction, acceptance of words literally, fear of criticism, day dreaming, impatience, interruptions,
preconceived notions, switching off, etc.
7. Cultural Barriers: Cultural differences often cause communication problems the same category of words,
symbols, phrases, actions mean different things to people of different countries/cultural backgrounds.
8. Technological Barriers: Technology can either facilitate communication or act as a barrier; sometimes it can
do both at the same time. These barriers are briefly described as follows:
a) Use of technology which is not updated.
b) Lack of technological knowledge.
c) Technical noise.
Overcoming Barriers:
The following are the ways of overcoming communication barriers:
Maintaining similarity
Emphasize description
Empathy
Working hypothesis
Be patient
Establish rules
Ask questions
Respect
Be positive
Self reflect

Q.3 What are the functions of management? State the principles of management as given by Henry
Fayol.
Ans. Management functions refer as above.
Principles of Management: While Taylor is considered the father of scientific management, Henry Fayol
(1841-1925) is considered the father of administrative management theory. He focuses on the development of
broad administrative principles applicable to general & higher managerial levels. He started his career as a
junior engineer in a coal mining company in France in 1860 and turned to a leading industrial & successful
General Manager in 1880.
Fayol has evolved 14 basic principles of management, which are proving to be general guide to the
management process & management practice. These are as under:
1. Division of work- It refers to the division of work among various individuals in the organization to bring
about specialization in every activity. He further says that every work must be divided into small jobs and these
jobs must be accomplished by the skilled and trained persons. It is called the canon of Right person in the right
job. So that the various functions of management can be effectively carried out by a specialist person, who is
mentally and physically able to perform.
2. Authority and responsibility- Authority is the right or power to give orders to the subordinates.
Responsibility means the duty which the subordinate is expected to perform by virtue of his position in the
organization. If managers have power to give order so they are also responsible for the work of their team.
3. Discipline- If an organization wants to be successful, discipline should be there in the organization.
Discipline means to obey the orders of the superiors, having belief in the rules of the organization and norms of
performance, respect for agreements, sincere efforts for completing the given job. To maintain discipline there
should be good supervisors at all levels, clear and fair agreements between the employees and the employer,
and judicious application of penalties.
4. Unity of Direction- Fayol expressed this principle to mean one head and one plan for a group of activities
having the same objectives. He also says that, To run an organization successfully, the unity of direction is
necessary while for the successful performance of the employees work. Unity of direction is provided for by
sound organization of the body corporate.
5. Unity of Command- This principle states that there must be only one superior to a subordinate. That is, an
employee or a worker must not have many bosses or superiors. If an employee or subordinate has to work under
the influence of many bosses or superiors, then it creates a confusing situation, dilemma and disorder. This also
affects overall efficiency, productivity and profit of the organization. In other words, the work of a worker or
job of an employee must always be supervised by a single head.
Example of Unity of Command
Unity of command is explained with the help of following diagrammatic e.g.

In the above example, Correct Unity of Command flows from Manager to Assistant Manager, Assistant Manger
to Supervisor, Supervisor to Executive, and finally from executive to workers.
According to the Principle of Unity of Command, the organization shall follow a Correct Unity of Command. It
must not communicate through Incorrect Unity Of Command as shown in the above diagrammatic example.
6. Subordination of Individual Interest to Organization Interest- The interest of any one employee or group
of employees should not take precedence over the interests of the organization as a whole. For the achievement
of organizational objectives, both the employees and management should subordinate their interests to the
general interests of the concern.
7. Remuneration of Personnel- The employees must be remunerated fully for their services rendered to the
organization. The remuneration and methods of payment should be fair and should offer the maximum
satisfaction to employees and employer. And, it should be made without any delay.
8. Centralization and Decentralization- There should be one central point in the organization which exercises
overall direction and control of all the parts. Centralization means that all most all of the power and decisive
roles are to be taken by top management. On the other hand, decentralization refers to the dispersal of authority
to the lower levels in the organization. According to Fayol there should be centralization in small units and
proper decentralization in big organization. Further, Fayol does not favor centralization or decentralization of
authorities but suggests that these should be proper and effective adjustment between centralization and
decentralization in order to achieve maximum objectives of the business. The choice between centralization and
decentralization be made after taking into consideration the nature of work and the efficiency, experience and
decision-making capacity of the executives.
9. Scalar Chain- Scalar chain means the hierarchy of authority from the highest executive to the lowest one for
the purpose of communication. the line of authority should run in order of rank from top management to level in
the enterprise, there ever this provide to be very time consuming in cases where people reconciled- fined a
satisfactory way of dealing with (opposite facts, ideas etc.) in different departments, but of the same level of
hierarchy needed to communicate with each other. Fayol solved this problem by introducing Gang Plank, policy
where such people could communicate with each other directly but with the permission of their superiors. In
such situations the respect for the line of authority must be reconciled with the need for time saving swift action.
For example,


Scalar chain

In the above figure, there are two ladders of authority one from A to F and the other from A to P. If E wants to
communicate with O under the scalar chain, information will first flow upward from E to A through D, C and B
and then downward from A to O through L, M and N. Thus, communication will normally be a time consuming
process. In order to allow swift action, E and O should be allowed to exchange information directly by using
gang plank. This will help management to follow the scalar chain and at the same time ensure swift action as
and when necessary.
10. Order- Here, order means the orderly arrangement of both materials and men. It is necessary to run the
production process systematically by which logical and planned system of both materials and men may be
established. In this relation, Fayol has propounded two sub-principles:
i. Everything must be in a defined place and a defined place for everything; and
ii. Every person must be in right job and a right job for every person.
In such system, the boss of materials and time may be checked.
11. Equity- Equity means equality of fair treatment. Equity results from a combination of kindness and justice.
It requires fair judgement in dealing with human resources. Employees expect management to be equally
behaved with everybody. The superiors in the organization should be experienced and good-natured so as to
deal with the subordinates in a proper manner.
12. Stability of Tenure of Personnel- In order to motivate workers to do more and better work it is necessary
that they should be assured security of job by the management. If they have fear of job insecurity, so their moral
will be low, working efficiency will decline and they cannot give more and better work. Because of this
organization has to suffer and this will affect the production.
13. Initiative- Fayol said that, the subordinates should be given an opportunity to take initiative & to come out
with new plans and thinking the process for executing the plans. Employee gets satisfaction when they are
allowed to take initiative. Workers at all levels must be encouraged to think about and execute the organized
task in a better way. Workers must be encouraged to make new suggestions or make improvements in the
original plans.
14. Esprit de corps- This means union is strength or team spirit. All the employees of the organization are put
together as team in order to achieve the objective of the organization. If there is any misunderstanding or
difference of opinions or distrust on other employees, the management should take corrective steps to remove
them. The management should not follow the policy of divide and rule.
Q.4 Discuss in detail the various features and elements of organizational structure.
Ans. Organizational Structure: An organizational structure consists of activities such as task allocation,
coordination and supervision, which are directed towards the achievement of organizational aims. It can also be
considered as the viewing glass or perspective through which individuals see their organization and its
environment.
An organization can be structured in many different ways, depending on their objectives. The structure of an
organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different functions and processes
to different entities such as the branch, department, workgroup and individual.
Organizational structure affects organizational action in two big ways. First, it provides the foundation on which
standard operating procedures and routines rest. Second, it determines which individuals get to participate in
which decision-making processes, and thus to what extent their views shape the organizations actions.
Features of Organizational Structure:
i. Simplicity: An organizational structure should be basically simple. The concept of simplicity implies
that various organizational relations should be kept minimum possible.
ii. Flexibility: An organizational structure should be flexible enough so that changes can be incorporated
whenever needs arise.
iii. Clear Line of Authority: Whatever the form of structure is adopted, there should be clear lines of
authority running from top to bottom or in horizontal directions.
iv. Principles of Unity of Direction and Command: Principles of unity of direction and unity of
command should be followed.
v. Proper Emphasis on Staff: Line functions should be separated from staff functions and adequate
emphasis should be placed on important staff activities.
vi. Proper Delegation of authority: The concept of ultimate responsibilities can work only when there is
proper delegation of authority at various levels of the organization. Delegation of authority refers to
authorizing a manager to make certain decision.
Elements of Organizational Structure:
Organizational design is engaged when managers develop or change an organization's structure. Organizational
Design is a process that involves decisions about the following six key elements:
I. Work Specialization: Describes the degree to which tasks in an organization are divided into separate jobs.
The main idea of this organizational design is that an entire job is not done by one individual. It is broken down
into steps, and a different person completes each step. Individual employees specialize in doing part of an
activity rather than the entire activity.
II. Departmentalization: It is the basis by which jobs are grouped together. For instance every organization
has its own specific way of classifying and grouping work activities.
There are five common forms of departmentalization:
Functional Departmentalization. As shown in the Figure 2-1, it groups jobs by functions performed. It can be
used in all kinds of organizations; it depends on the goals each of them wants to achieve.
Functional Departmentalization example

Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
o Efficiencies from putting
together similar specialties and
people with common skills,
knowledge, and orientations
o Coordination within functional
area
o In-depth specialization
o Poor communication across
functional areas
o Limited view of organizational
goals
Product Departmentalization. It groups jobs by product line. Each manager is responsible of an area
within the organization depending of his/her specialization
Product Departmentalization example


Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
o Allows specialization in
particular products and services
o Managers can become experts
in their industry
o Closer to customers
o Duplication of functions
o Limited view of organizational
goals

Geographical Departmentalization. It groups jobs on the basis of territory or geography.


Geographical Departmentalization example


Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
o More effective and efficient
handling of specific regional
issues that arise
o Serve needs of unique
geographic markets better
o Duplication of functions
o Can feel isolated from other
organizational areas
Process Departmentalization. It groups on the basis of product or customer flow.

Process Departmentalization example


Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
o More efficient flow of work
activities
o Can only be used with certain
types of products

Customer Departmentalization. It groups jobs on the basis of common customers

Customer Departmentalization example

Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
o Customers' needs and problems
can be met by specialists
o Duplication of functions
o Limited view of organizational
goals

III. Chain of command
It is defined as a continuous line of authority that extends from upper organizational levels to the lowest
levels and clarifies who reports to whom. There are three important concepts attached to this theory:
Authority: Refers to the rights inherent in a managerial position to tell people what to do and to expect
them to do it.
Responsibility: The obligation to perform any assigned duties.
Unity of command: The management principle that each person should report to only one manager.

IV. Span of Control
It is important to a large degree because it determines the number of levels and managers an
organization has. Also, determines the number of employees a manager can efficiently and effectively
manage.

V. Centralization and Decentralization
More Centralization More Decentralization
Environment is stable
Lower-level managers are not as
capable or experienced at making
decisions as upper-level
managers.
Lower-level managers do not want
to have say in decisions
Decisions are significant.
Organization is facing a crisis or
the risk of company failure.
Company is large.
Effective implementation of
company strategies depends on
managers retaining say over what
happens.
Environment is complex,
uncertain.
Lower-level managers are
capable and experienced at
making decisions.
Lower-level managers want a
voice in decisions.
Decisions are relatively minor.
Corporate culture is open to
allowing managers to have a say
in what happens.
Company is geographically
dispersed.
Effective implementation of
company strategies depends on
managers having involvement and
flexibility to make decisions

VI. Formalization
It refers to the degree to which jobs within the organization are standardized and the extent to which
employee behavior is guided by rules and procedures.

Q.5 Write a short note on the following:
a) Differentiate between Management and Administration
b) Herzbergs Motivation Theory
c) Management as an Art, Science and Profession

Ans. Difference between Management and Administration
The difference between Management and Administration can be summarized under 2 categories: -
1. Functions
2. Usage / Applicability
On the Basis of Functions: -



























Basis Administration Management
1. Nature It is a determination or thinking
function.
It is an executive or doing
function.
2. Scope It is concerned with the
determination of major
objectives and policies.
It is concerned with the
implementation of policies.
3. Level It is mainly a top-level function. It is largely a middle- and lower-
level function.
4. Influence Administrative decisions are
influenced mainly by public
opinion and other outside forces.
Managerial decisions are
influenced mainly by objectives
and policies of the organization.
5. Process Administration decides what is
to be done & when it is to be
done.
Management decides who
should as it & how should he do
it.
6. Direction of human efforts It is not directly concerned with
direction of human efforts.
It is actively concerned with
direction of human efforts in the
execution of plans.
7. Main functions Planning and control are the
main functions involved in it.
Directing and organizing are the
main functions involved in it.
8. Skills Required Conceptual and human skills. Technical and human skills.
9. Usage Used largely in government and
public sector.
Used mainly in business
organizations.
10. Illustration Minister, Commander,
Commissioner, Registrar, Vice-
Chancellor, Governor, etc.
Managing Director, General
Manager, Sales Manager,
Branch Manager, etc.


The Figure above clearly shows the degree of administration and management performed by the different levels
of management.
Ans. Herzbergs Two-Factor Theory of Motivation
In 1959, Frederick Herzberg, a behavioral scientist proposed a two-factor theory or the motivator-hygiene
theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job
factors that prevent dissatisfaction. According to Herzberg, the opposite of Satisfaction is No satisfaction
and the opposite of Dissatisfaction is No Dissatisfaction.

FIGURE: Herzbergs view of satisfaction and dissatisfaction

Herzberg classified these job factors into two categories-
a) Hygiene factors- Hygiene factors are those job factors which are essential for existence of motivation at
workplace. These do not lead to positive satisfaction for long-term. But if these factors are absent / if these
factors are non-existent at workplace, then they lead to dissatisfaction. In other words, hygiene factors are those
factors which when adequate/reasonable in a job, pacify the employees and do not make them dissatisfied.
These factors are extrinsic to work. Hygiene factors are also called as dissatisfies or maintenance factors as they
are required to avoid dissatisfaction. These factors describe the job environment/scenario. The hygiene factors
symbolized the physiological needs which the individuals wanted and expected to be fulfilled. Hygiene factors
include:
Pay - The pay or salary structure should be appropriate and reasonable. It must be equal and competitive
to those in the same industry in the same domain.
Company Policies and administrative policies - The company policies should not be too rigid. They
should be fair and clear. It should include flexible working hours, dress code, breaks, vacation, etc.
Fringe benefits - The employees should be offered health care plans (mediclaim), benefits for the
family members, employee help programmes, etc.
Physical Working conditions - The working conditions should be safe, clean and hygienic. The work
equipments should be updated and well-maintained.
Status - The employees status within the organization should be familiar and retained.
Interpersonal relations - The relationship of the employees with his peers, superiors and subordinates
should be appropriate and acceptable. There should be no conflict or humiliation element present.
Job Security - The organization must provide job security to the employees.
b) Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as motivators. The
motivational factors yield positive satisfaction. These factors are inherent to work. These factors motivate the
employees for a superior performance. These factors are called satisfiers. These are factors involved in
performing the job. Employees find these factors intrinsically rewarding. The motivators symbolized the
psychological needs that were perceived as an additional benefit. Motivational factors include:
Recognition - The employees should be praised and recognized for their accomplishments by the
managers.
Sense of achievement - The employees must have a sense of achievement. This depends on the job.
There must be a fruit of some sort in the job.
Growth and promotional opportunities - There must be growth and advancement opportunities in an
organization to motivate the employees to perform well.
Responsibility - The employees must hold themselves responsible for the work. The managers should
give them ownership of the work. They should minimize control but retain accountability.
Meaningfulness of the work - The work itself should be meaningful, interesting and challenging for the
employee to perform and to get motivated.
Limitations of Two-Factor Theory
The two factor theory is not free from limitations:
The two-factor theory overlooks situational variables.
Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by
Herzberg stressed upon satisfaction and ignored productivity.
The theorys reliability is uncertain. Analysis has to be made by the raters. The raters may spoil the
findings by analyzing same response in different manner.
No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite
the fact that he may hate/object part of his job.
The two factor theory is not free from bias as it is based on the natural reaction of employees when they
are enquired the sources of satisfaction and dissatisfaction at work. They will blame dissatisfaction on
the external factors such as salary structure, company policies and peer relationship. Also, the
employees will give credit to themselves for the satisfaction factor at work.
The theory ignores blue-collar workers. Despite these limitations, Herzbergs Two-Factor theory is
acceptable broadly.
Implications of Two-Factor Theory
The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of the hygiene
factors to avoid employee dissatisfaction. Also, the managers must make sure that the work is stimulating and
rewarding so that the employees are motivated to work and perform harder and better. This theory emphasize
upon job-enrichment so as to motivate the employees. The job must utilize the employees skills and
competencies to the maximum. Focusing on the motivational factors can improve work-quality.
Management as an Art and Science:
Management is both an art and a science. The above mentioned points clearly reveal that management combines
features of both science as well as art. It is considered as a science because it has an organized body of
knowledge which contains certain universal truth. It is called an art because managing requires certain skills
which are personal possessions of managers. Science provides the knowledge & art deals with the application of
knowledge and skills.
A manager to be successful in his profession must acquire the knowledge of science & the art of applying it.
Therefore management is a judicious blend of science as well as an art because it proves the principles and the
way these principles are applied is a matter of art. Science teaches to know and art teaches to do. E.g. a person
cannot become a good singer unless he has knowledge about various ragas & he also applies his personal skill in
the art of singing. Same way it is not sufficient for manager to first know the principles but he must also apply
them in solving various managerial problems that is why, science and art are not mutually exclusive but they are
complementary to each other (like tea and biscuit, bread and butter etc.).
The old saying that Manager are Born has been rejected in favor of Managers are Made. It has been aptly
remarked that management is the oldest of art and youngest of science. To conclude, we can say that science is
the root and art is the fruit.
Management as a Profession:-
Over a large few decades, factors such as growing size of business unit, separation of ownership from
management, growing competition etc have led to an increased demand for professionally qualified managers.
The task of manager has been quite specialized. As a result of these developments the management has reached a
stage where everything is to be managed professionally.
A profession may be defined as an occupation that requires specialized knowledge and intensive academic
preparations to which entry is regulated by a representative body. The essentials requirements of a profession are:
i. Specialized body of knowledge.
ii. Educational requirements and training.
iii. Representative or professional body.
iv. Code of conduct for self-regulation.
v. Social status.

Q.6 Discuss the various types and importance of Decision Making.
Ans. Decision Making: Decision making is an essential leadership skill. If you can learn how to make timely,
well-considered decisions, then you can lead your team to well-deserved success. If, however, you make poor
decisions, your time as a leader will be brutally short.
Decision making is the study of identifying and choosing alternatives based on the values and preferences of
the decision maker.
Decision making is the process of sufficiently reducing uncertainty and doubt about alternatives to allow a
reasonable choice to be made from among them.
Importance of Decision Making:
i. Better Utilization of Resources: Decision making helps to utilize the available resources for achieving
the objectives of the organization. The available resources are the 6 Ms, i.e. Men, Money, Materials,
Machines, Methods and Markets. The manager has to make correct decisions for all the 6 Ms. this will
result in better utilization of these resources.
ii. Facing Problems and Challenges: Decision making helps the organization to face and tackle new
problems and challenges. Quick and correct decisions help to solve problems and to accept new
challenges.
iii. Business Growth: Quick and correct decision making results in better utilization of the resources. It
helps the organization to face new problems and challenges. It also helps to achieve its objectives. All
this results in quick business growth. However, wrong, slow or no decisions can result in losses and
industrial sickness.
iv. Achieving Objectives: Rational decisions help the organization to achieve all its objectives quickly.
This is because rational decisions are made after analyzing and evaluating all the alternatives.
v. Increases Efficiency: Rational decisions help to increase efficiency. Efficiency is the relation between
returns and cost. If the returns are high and the cost is low, then there is efficiency and vice versa.
Rational decisions result in higher returns at low cost.
vi. Facilitate Innovation: Rational decisions facilitate innovation. This is because it helps to develop new
ideas, new products, new process, etc. This results in innovation. Innovation gives a competitive
advantage to the organization.
vii. Motivates Employees: Rational decision results in motivation for the employees. This is because the
employees are motivated to implement rational decisions. When the rational decisions are implemented
the organization makes high profits. Therefore, it can give financial and non-financial benefits to the
employees.
TYPES OF DECISIONS:
i. Programmed Decisions: Programmed decisions are routine and repetitive, and the organization
typically develops specific ways to handle them. A programmed decision might involve determining
how products will be arranged on the shelves of a supermarket. For this kind of routine, repetitive
problem, standard arrangement decisions are typically made according to established management
guidelines.
ii. Non Programmed Decisions: Non programmed decisions are typically one shot decisions that are
usually less structured than programmed decision.
iii. Irreversible: These decisions are permanent, once taken, they can't be undone. The effects of these
decisions are far-reaching and are taken only when all other options have been exhausted.
iv. Reversible: Reversible decisions are not final and binding, they can be retracted at any point, and
another more fitting decision made. It allows one to acknowledge mistakes and undertake relevant
damage control, depending on how the new circumstances play out.
v. Delayed: Such decisions are put on hold until the decision maker thinks that the right time has come.
This delay might cause one to miss certain opportunities that may present themselves, especially in the
case of businesses, and may lead to losses. However, such decisions are the norm for large bodies like
the government, which decide policies that affect the lives of millions of people. The time taken to
collect all information required and to organize plans of implementation is crucial to the ultimate well-
being of the public.
vi. Quick Decisions: These decisions enable one to make maximum use of the opportunity available at
hand. However, only a very astute personality can take decisions that are both instantaneous and correct.
In order to be able to take the right decision within a short span of time, one should also take the long-
term results into consideration.
vii. Experimental: One of the ways of decision-making is the experimental type, where the final decision
cannot be taken until the preliminary results appear and are positive. This approach is used when one is
sure of the final destination but is not convinced of the course to be taken. Experimental decisions are
common in fields such as medicine, where the product being tested goes through several phases, and
decisions may change with every iteration.
viii. Trial and Error: This approach involves trying out a certain course of action. If the result is positive it
is followed further, if not, then a fresh course is adopted. Such a trial and error method is continued until
the decision-maker finally arrives at a course of action that convinces him of success. This allows a
manager to change and adjust his plans until the final commitment is made.
ix. Conditional: Conditional decisions allow an individual to keep all his options open. He sticks to one
decision as long as the circumstances remain the same. Once the competitor makes a new move,
conditional decisions allow a person to take up a different course of action.

Q.7 Discuss the meaning & definition of management. What is the scope & importance of management?
Ans. Management
Management is a universal phenomenon. It is a very popular and widely used term. Management is a purposeful
activity. Every organization requires the making of decisions, the coordinating of activities, the handling of
people, and the evaluation of performance directed towards group activities. It is something that directs group
efforts towards the attainment of certain pre-determined goals.
Thus, Management is the brain of an enterprise. A manager keeps himself in touch with the current environment
and supplies foresight to the enterprise. He helps in predicting what is going to happen in future which will
influence the working of the enterprise.
Management involves creating an internal environment: - It is the management which puts into use the various
factors of production. Therefore, it is the responsibility of management to create such conditions which are
conducive to maximum efforts so that people are able to perform their task efficiently and effectively. It
includes ensuring availability of raw materials, determination of wages and salaries, formulation of rules &
regulations etc.
Management is an art of getting things done through and with the people in formally organized groups. It is an
art of creating an environment in which people can perform and individuals and can co-operate towards
attainment of group goals.
Harold Koontz
Management is the creation & maintenance of an internal environment in an enterprise where individuals
working together in groups can perform efficiently and effectively towards the attainment of group goals.
Koontz and O Donnell
Scope of management:
i. Functional matter of the management: - The functional matter of the Mgt. includes the entire process
of management. i.e. planning, organizing, staffing, directing, and controlling.
ii. Departmental areas of management:-
Production Management: - It deals with plant site, plant layout, work measurement, production
planning and control etc.
Financial Management: - It includes financial planning, management. of earnings, capital,
capitalization, capital structure, management accounting, etc
Human Resource Management: - It basically deals with the manpower planning, job analysis,
recruitment and selection, orientation, placement, training and development, compensation,
promotion, transfer, social security and labor welfare, retirement, industrial relations, etc.
Material Management: - It includes inventory control, materials control, purchasing, materials
handling, transportation, shipment etc.
Marketing Management: - It includes the marketing process, marketing planning, marketing
mix, market segmentation, marketing research etc.
iii. Management is an inter-disciplinary approach: - For the effective application of the management
principles, theories and techniques, a study of commerce, economics, psychology, sociology, etc. is also
required.
iv. Universality of management principles: - The principles of management have universal application. It
is because of the fact that of management, tourism management etc. All this widens the scope of
management to a very extent.
Objective of Management:
The main objectives of management are:
i. Getting Maximum Results with Minimum Efforts The main objective of management is to secure
maximum outputs with minimum efforts & resources. Management is basically concerned with thinking
& utilizing human, material & financial resources in such a manner that would result in best
combination. This combination results in reduction of various costs.
ii. Increasing the Efficiency of factors of Production Through proper utilization of various factors of
production, their efficiency can be increased to a great extent which can be obtained by reducing
spoilage, wastages and breakage of all kinds, this in turn leads to saving of time, effort and money which
is essential for the growth & prosperity of the enterprise.
iii. Maximum Prosperity for Employer & Employees Management ensures smooth and coordinated
functioning of the enterprise. This in turn helps in providing maximum benefits to the employee in the
shape of good working condition, suitable wage system, incentive plans on the one hand and higher
profits to the employer on the other hand.
iv. Human betterment & Social Justice Management serves as a tool for the up liftmen as well as
betterment of the society. Through increased productivity & employment, management ensures better
standards of living for the society. It provides justice through its uniform policies.
Importance of Management:
i. It helps in Achieving Group Goal It arranges the factors of production, assembles and organizes
the resources, integrates the resources in effective manner to achieve goals. It directs group efforts
towards achievement of pre-determined goals. By defining objective of organization clearly there would
be no wastage of time, money and effort. Management converts disorganized resources of men,
machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in
such a manner that enterprise work towards attainment of goals.
ii. Optimum Utilization of Resources Management utilizes all the physical & human resources
productively. This leads to efficacy in management. Management provides maximum utilization of
scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes
use of experts, professional and these services leads to use of their skills, knowledge, and proper
utilization and avoids wastage. If employees and machines are producing its maximum there is no under
employment of any resources.
iii. Reduces Costs It gets maximum results through minimum input by proper planning and by using
minimum input & getting maximum output. Management uses physical, human and financial resources
in such a manner which results in best combination. This helps in cost reduction.
iv. Establishes Sound Organization No overlapping of efforts (smooth and coordinated functions). To
establish sound organizational structure is one of the objective of management which is in tune with
objective of organization and for fulfillment of this, it establishes effective authority & responsibility
relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors &
who are subordinates. Management fills up various positions with right persons, having right skills,
training and qualification. All jobs should be cleared to everyone.
v. Establishes Equilibrium It enables the organization to survive in changing environment. It keeps in
touch with the changing environment. With the change is external environment, the initial co-ordination
of organization must be changed. So it adapts organization to changing demand of market / changing
needs of societies. It is responsible for growth and survival of organization.
vi. Essentials for Prosperity of Society Efficient management leads to better economical production
which helps in turn to increase the welfare of people. Good management makes a difficult task easier by
avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is
beneficial to business and society will get maximum output at minimum cost by creating employment
opportunities which generate income in hands. Organization comes with new products and researches
beneficial for society.
Q.8 Explain the decision making process in detail.
Ans. Introduction: Decision making is a daily activity for any human being. There is no exception about that.
When it comes to business organizations, decision making is a habit and a process as well. Effective and
successful decisions make profit to the company and unsuccessful ones make losses. Therefore, corporate
decision making process is the most critical process in any organization.
In the decision making process, we choose one course of action from a few possible alternatives. In the process of
decision making, we may use many tools, techniques, and perceptions. In addition, we may make our own private
decision or may prefer a collective decision. Usually, decision-making is hard. Majority of corporate decisions involve
some level of dissatisfaction or conflict with another party. Lets have a look at the decision making process in detail.
Steps of Decision Making Process:
Following are the important steps of the decision making process. Each step maybe supported by different tools and
techniques.
1. Identification of the purpose of the decision: In this step, the problem is thoroughly analysed. There are a
couple of questions one should ask when it comes to identifying the purpose of the decision.
What exactly is the problem?
Why the problem should be solved?
Who are the affected parties of the problem?
Does the problem have a deadline or a specific time-line?
2. Information gathering: A problem of an organization will have many stakeholders. In addition, there can be
dozens of factors involved and affected by the problem.
In the process of solving the problem, you will have to gather as much as information related to the factors and
stakeholders involved in the problem. For the process of information gathering, tools such as 'Check Sheets' can
be effectively used.
3. Principles for judging the alternatives: In this step, the baseline criteria for judging the alternatives should
be setup. When it comes to defining the criteria, organizational goals as well as the corporate culture should be
taken it to consideration.
As an example, profit is one of the main concerns in every decision making process. Companies usually do not
make decisions that reduce profits, unless it is an exceptional case. Likewise, baseline principles should be
identified related to the problem in hand.
4. Brainstorm and analyze the different choices: For this step, brainstorming to list down all the ideas is the
best option. Before the idea generation step, it is vital to understand the causes of the problem and prioritization
of causes. For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-Effect
diagram helps you to identify all possible causes of the problem and Pareto chart helps you to prioritize and
identify the causes with highest affect. Then, you can move on generating all possible solutions (alternatives)
for the problem in hand.
5. Evaluation of alternatives: Use your judgment principles and decision-making criteria to evaluate each
alternative. In this step, experience, and effectiveness of the judgment principles come into play. You need to
compare each alternative for their positives and negatives.
6. Select the best alternative: Once you go through from Step 1 to Step 5, this step is easy. In addition, the
selection of the best alternative is an informed decision since you have already followed a methodology to
derive and select the best alternative.
7. Execute the decision: Convert your decision into a plan or a sequence of activities. Execute your plan by
yourself or with the help of subordinates.
8. Evaluate the results: Evaluate the outcome of your decision. See whether there is anything you should learn
and then correct in future decision making. This is one of the best practices that will improve your decision-
making skills.
Conclusion: When it comes to making decisions, one should always weigh the positive and negative business
consequences and should favour the positive outcomes.
This avoids the possible losses to the organization and keeps the company running with a sustained growth.
Sometimes, avoiding decision-making seems easier; specially, when you get into a lot of confrontation after
making the tough decision.
But, making the decisions and accepting its consequences is the only way to stay in control of your corporate
life and time.

Q.9 Explain Taylors scientific theory in detail.
Ans. Scientific Management:
The concept of scientific management was introduced by Frederick Winslow Taylor in USA in the beginning
of 20
th
century. Scientific management was concerned essentially with improving the operational efficiency at
the shop-floor level. Since Taylor has put the emphasis on solving managerial problems in a scientific way,
often, he is called as father of scientific management and his contributions as the principles of scientific
management.
Taylor joined Midvale steel Company in U.S.A. as a worker and later on became supervisor. During this period,
he continued his studies and eventually completed his M.E. (Master of Engineering). Subsequently, he joined
Bethlehem Steel Company. At both these places, he carried experiments about how to increase the efficiency of
people. Even after his retirement, he continued to develop scientific management. On the basis of his
experiments, he published many papers and books and all his contributions were compiled in his book
Scientific Management. Taylors contributions can be described in two parts: elements and tools of scientific
management and principles of scientific management.
Definitions of Scientific Management-
Its cord is the operational study of work, the analysis of work into its simplest element and the systematic
improvement of the workers performance of each element.
Peter Drucker
Scientific management viewed as a process or a method is concerned primarily with the discovery of casual
relationship between the efforts expended for a given objective and the results of these efforts with special
emphasis upon the discovery of the best method in the light of the available manpower, materials and
technology.
Elements and Tools of scientific Management:
The elements or mechanisms of scientific management as suggested by F.W. Taylor are discussed below:
1. Scientific Task Setting- Taylor felt that the workers restricted their output because of the major reason that
there was no standard about a proper days work. Therefore, it is essential to set the standard task which an
average worker should do during working hours. Taylor termed it a fair days work. The standard task is to be
set by the management scientifically so that it represents the amount of work which a worker, working under
standardized conditions in an atmosphere of mutual trust and cooperation, will be able to do during a day. It will
prevent them from doing work much below their capacity.
2. Work Study- It implies an organized, objective, systematic, analytical and critical assessment of the
efficiency of various operations in an organization. Work study includes the following techniques:
a) Method study: This study is conducted to know the best method of doing a particular job. It helps in
reducing wastage of distance travelled by materials, and brings improvements in handling, transporting,
inspection and storage of raw materials and goods.
b) Motion study: It is the study of the movement of an operator or a machine. Its purpose is to eliminate
useless motions and find out the best method of doing a particular job. By motion study, an attempt is
made to know whether some elements of a job can be eliminated, combined or their sequence changed
to achieve the necessary flow of work.
c) Time study or work measurement: Time study is an art of observing and recording the time required
for doing an industrial operation. Through time study the precise time required for each element of a
mans work is determined. It helps in fixing the standard time required to do a particular job.
d) Fatigue study: Fatigue, physical or mental, has an adverse effect on workers health and his efficiency.
Fatigue study helps in reducing fatigue among the workers. Fatigue is generally caused by long working
hours without rest pause, repetitive operations, excessive specialization and poor working conditions.
The purpose of fatigue study is to maintain the operational efficiency of the workers.

Difference between Motion and Time Study: Motion study differs from time study in respect of the
following:
Motion study means to watching and recording the movements of operators. Whereas, Time study
involves careful measurement of the time required to do the different parts of a given job.
Motion study helps to minimize the movements of operators, whereas time study helps to increase the
productivity of labour.
The purpose of motion study is to determine the best way of doing a jo. But the aim of time study is to
determine fair days work.
3. Financial Incentives- Financial incentives can motivate workers to put in their maximum efforts. If
provisions exist to earn higher wages by putting in extra effort, workers will be motivated to earn more. Taylor
himself applied the concept of differential piece rate system which was highly motivating. According to this
scheme, a worker who completes the normal work gets wages at higher rate per piece and one who does not
complete gets at lower rate. Taylor has suggested that wages should be based on individual performance and not
on the position which he occupies. Further, the wage rate should be fixed on accurate knowledge and not on
estimates.
4. Standardization of Tools and Equipments- Taylor, also, strongly advocated the standardization of tools,
equipment, cost system and several other items. Efforts should be made to provide standardized working
environment and methods of production to be used and to set standards of performance of workers at all levels.
Standardized helps to reduce spoilage and wastage of materials, improve quality of work, reduce cost of
production and reduce fatigue among the workers.
5. Scientific Selection and Training- The management should design a scientific selection procedure so that
right candidate can be selected for the right job. This way, the first step in scientific selection is determining the
jobs for which workers are required. Further, the most appropriate qualification, training, experience and the
level of efficiency for the requisite post are defined. Thus, the employees are selected according to pre-defined
standards.
6. Scientific Task Planning- Taylor emphasized the need for planning work. He advocated that planning
function should be separated from the executive function. Workers should not be supposed to choose their own
methods and decide what they have to do. The planning department should prepare detailed instructions for the
workers as to type, quality and quantity of the products to be produced and determine the time required for
completion of various operations.
7. Specialization or Functional Foremanship- Taylor has suggested that specialization must be introduced in
a factory and, to introduce specialization, he advocated functional foremanship. According to him, planning
must be separated from executing. He suggested four foremen in the planning department, namely, route clerk,
and instruction card clerk, time and cost clerk and ship disciplinarian. The four foremen recommended for
getting the required performance from the workers include gang boss, speed boss, maintenance boss and
inspector.
Aims & Objectives of Scientific Management:
The main objective of the scientific management is to solve the managerial problems with the help of scientific
tools. The main objectives are as such:
i. To increase the working capacity and performance of the workers;
ii. To bring maximum mutual development by using the optimum resources;
iii. To generate mental revolution;
iv. To decrease the cost; and
v. To implement scientific outlook in the areas of management.

Q.10 What is Time and Motion study in detail.
Ans. A time and motion study is a business efficiency technique combining the Time Study work of Frederick Winslow
Taylor with the Motion Study work of Frank and Lillian Gilbreth (the same couple as is best known through the
biographical 1950 film and book Cheaper by the Dozen). It is a major part of scientific management (Taylorism). After its
first introduction, time study developed in the direction of establishing standard times, while motion study evolved into
a technique for improving work methods. The two techniques became integrated and refined into a widely accepted
method applicable to the improvement and upgrading of work systems. This integrated approach to work system
improvement is known as methods engineering and it is applied today to industrial as well as service organizations,
including banks, schools and hospitals.
Time and motion study have to be used together in order to achieve rational and reasonable results. It is particularly
important that effort to be applied in motion study to ensure equitable results when time study is used. In fact, much of
the difficulty with time study is a result of applying it without a thorough study of the motion pattern of the job. Motion
study can be considered the foundation for time study. The time study measures the time required to perform a given
task in accordance with a specified method and is valid only so long as the method is continued. Once a new work
method is developed, the time study must be changed to agree with the new method.
Time Study:
Time study is a work measurement technique for recording the times and rates of working for the elements of a
specified job carried out under specified conditions and for analyzing data so as to determine the time necessary
for carrying out the job at a defined level of performance.
Essentials of Time Study
An accurate specification of where the job begins and where it ends, and the method by which it is
carried out, including details of material, equipment.
A system of recording the observed times taken by workers to do the job while under observation.
Procedure of Time Study
Identifying the job to be timed and operations to be timed.
Obtaining an improved procedure from method study department.
Select worker for study
Collecting the equipment and arrange machinery required to conduct time study and ensure accuracy in
recording time
Explaining to the worker the improved working procedure and use of tools and fixtures
Breaking the job into operations and operations into elements and writing them in a proper format
Conducting the observations and recording them on the time study form
Rating the performance of the worker
Applications of Time Study
For determining schedules and planning of work
For calculation of Standard costs and as an aid in preparing budgets
For determining machine effectiveness, the number of machines which one person can operate and also
for construction activities.

Q.11 What do you mean by Ethics? What is its importance? Also explain the ethical issues in business.
Ans. Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines
ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of
business conduct and is relevant to the conduct of individuals and entire organizations.
Business ethics has both normative and descriptive dimensions. As a corporate practice and a career
specialization, the field is primarily normative. Academics attempting to understand business behavior employ
descriptive methods. The range and quantity of business ethical issues reflects the interaction of profit-
maximizing behavior with non-economic concerns. Interest in business ethics accelerated dramatically during
the 1980s and 1990s, both within major corporations and within academia. For example, today most major
corporations promote their commitment to non-economic values under headings such as ethics codes and social
responsibility charters. Adam Smith said, "People of the same trade seldom meet together, even for merriment
and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise
prices." Governments use laws and regulations to point business behavior in what they perceive to be beneficial
directions. Ethics implicitly regulates areas and details of behavior that lie beyond governmental control. The
emergence of large corporations with limited relationships and sensitivity to the communities in which they
operate accelerated the development of formal ethics regimes.
Importance of Ethics
1. Stop business malpractices: Some unscrupulous businessmen do business malpractices by indulging in
unfair trade practices like black-marketing, artificial high pricing, adulteration, cheating in weights and
measures, selling of duplicate and harmful products, hoarding, etc. These business malpractices are
harmful to the consumers. Business ethics help to stop these business malpractices.
2. Improve customers' confidence: Business ethics are needed to improve the customers' confidence
about the quality, quantity, price, etc. of the products. The customers have more trust and confidence in
the businessmen who follow ethical rules. They feel that such businessmen will not cheat them.
3. Survival of business: Business ethics are mandatory for the survival of business. The businessmen who
do not follow it will have short-term success, but they will fail in the long run. This is because they can
cheat a consumer only once. After that, the consumer will not buy goods from that businessman. He will
also tell others not to buy from that businessman. So this will defame his image and provoke a negative
publicity. This will result in failure of the business. Therefore, if the businessmen do not follow ethical
rules, he will fail in the market. So, it is always better to follow appropriate code of conduct to survive in
the market.
4. Safeguarding consumers' rights: The consumer has many rights such as right to health and safety,
right to be informed, right to choose, right to be heard, right to redress, etc. But many businessmen do
not respect and protect these rights. Business ethics are must to safeguard these rights of the consumers.
5. Protecting employees and shareholders: Business ethics are required to protect the interest of
employees, shareholders, competitors, dealers, suppliers, etc. It protects them from exploitation through
unfair trade practices.
6. Develops good relations: Business ethics are important to develop good and friendly relations between
business and society. This will result in a regular supply of good quality goods and services at low prices
to the society. It will also result in profits for the businesses thereby resulting in growth of economy.
7. Creates good image: Business ethics create a good image for the business and businessmen. If the
businessmen follow all ethical rules, then they will be fully accepted and not criticised by the society.
The society will always support those businessmen who follow this necessary code of conduct.
8. Smooth functioning: If the business follows all the business ethics, then the employees, shareholders,
consumers, dealers and suppliers will all be happy. So they will give full cooperation to the business.
This will result in smooth functioning of the business. So, the business will grow, expand and diversify
easily and quickly. It will have more sales and more profits.
9. Consumer movement: Business ethics are gaining importance because of the growth of the consumer
movement. Today, the consumers are aware of their rights. Now they are more organised and hence
cannot be cheated easily. They take actions against those businessmen who indulge in bad business
practices. They boycott poor quality, harmful, high-priced and counterfeit (duplicate) goods. Therefore,
the only way to survive in business is to be honest and fair.
10. Consumer satisfaction: Today, the consumer is the king of the market. Any business simply cannot
survive without the consumers. Therefore, the main aim or objective of business is consumer
satisfaction. If the consumer is not satisfied, then there will be no sales and thus no profits too.
Consumer will be satisfied only if the business follows all the business ethics, and hence are highly
needed.
Ethical issues in business
1. Ethical Relativism are there universal values that apply to everyone or is everything relative to individual,
country, company etc.
a) Relates to cultural relativism. This presumes that different peoples reason about morality varies by culture,
education and religious traditions.
b) Arguments for ER are:
i. Empirical evidence of cultural relativism.
ii. There is no viable universal standard that can be applied to everyone.
c) Arguments against ER are:
i. Just because finding universals is hard that does not imply that ER is correct.
ii. Just because a particular issues is not resolved does not imply that it is, in principle, not ever resolvable.
iii. Taking ER to its full extent means that you cant justify any moral judgements at all.
d) The Foreign Corrupt Practices Act (1977) attempted to legislate that what we say is moral is how we should
behave. This Act was driven by the issue that you are being inconsistent with yourself if you say something is
immoral yet do it anyway just because you are in a foreign country.
2. Truth telling can you ever justify not telling the truth? Must we communicate honestly?
a) A vigorous defender of truth telling is Kant. TT is an essential feature of right communication (Lectures on
Ethics). His reasoning is:
i. We all want others to follow this when speaking to us.
ii. All societies depend on mutual bonds of honesty and truthfulness to enforce their continued existence.
iii. Lying thwarts the discovery of new truths. Knowledge growth is required for the advancement of a
society.
b) Counter agreements to this are:
i. Everyone understands the game of inflating claims (not lying) in advertising etc. so it is all right.
ii. You cant ever know the perfect truth around a product/service because perfect information is not
available people cant know if a company is lying or bluffing.
iii. Outside of the advertising arena: How do you conduct a business negotiation if you never put
something on the table that gives you room to wiggle so to speak?

Q.12 What is Social Responsibility? What are the obligations towards different groups?
Ans. Social responsibility is an ethical or theory that an entity, be it an organization or individual, has an obligation to
act to benefit society at large. Social responsibility is a duty every individual or organization has to perform so as to
maintain a balance between the economy and the ecosystem. A trade-off always exists between economic
development, in the material sense, and the welfare of the society and environment. Social responsibility means
sustaining the equilibrium between the two. It pertains not only to business organizations but also to everyone whos
any action impacts the environment. This responsibility can be passive, by avoiding engaging in socially harmful acts, or
active, by performing activities that directly advance social goals.
Businesses can use ethical decision making to secure their businesses by making decisions that allow for government
agencies to minimize their involvement with the corporation. (Kaliski, 2001) For instance if a company is and follows
the United States Environmental Protection Agency (EPA) guidelines for emissions on dangerous pollutants and even
goes an extra step to get involved in the community and address those concerns that the public might have; they would
be less likely to have the EPA investigate them for environmental concerns. A significant element of current thinking
about privacy, however, stresses "self-regulation" rather than market or government mechanisms for protecting
personal information (Swire, 1997) According to some experts, most rules and regulations are formed due to public
outcry, which threatens profit maximization and therefore the well-being of the shareholder, and that if there is not
outcry there often will be limited regulation.
Critics argue that Corporate social responsibility (CSR) distracts from the fundamental economic role of businesses;
others argue that it is nothing more than superficial window-dressing; others argue that it is an attempt to pre-empt the
role of governments as a watchdog over powerful Tricorp corporations though there is no systematic evidence to
support these criticisms. A significant number of studies have shown no negative influence on shareholder results from
CSR but rather a slightly negative correlation with improved shareholder returns.
Employee Behavior: From large corporations to small businesses, individuals involved in all types of business
often face ethical issues stemming from employee behavior. For example, whether an employee can spend work
time checking personal email accounts, how a manager deals with claims of harassment and to what extent a
manager can "groom" a certain employee for a promotion are all examples of ethical issues regarding employee
behavior. There are legal consequences for some unethical employee behavior. For example, if a supervisor
discriminated against an employee based on her gender, religion or ethnicity when making recommendations
for a promotion, legal action could be sought. Small business owners can help to prevent ethical problems
stemming from employee behavior by drafting a clear, attorney-reviewed set of standards that dictate behavior
policies for employees at all levels.
Employee Working Conditions: In addition to employee behavior, there are a number of ethical issues
business people must consider about employee working conditions. For example, employers must be aware of
the safety of their work environment and if they have compensated employees for all the time they have
worked. The must also consider if they have required an employee to work an unreasonably long period of time
or if they have him doing an unusually difficult task. Just like there are legal consequences for some unethical
issues regarding employee behavior, there are also legal consequences for unethical working conditions. For
example, an employer who requires an employee to work without pay or who creates an unsafe working
environment can face legal action.
Supplier/Customer Relations: In addition employees and business owners must consider the ethical issues
involved with their relationships between suppliers and customers. Business owners in particular must consider
whether it is ethical to do business with suppliers who have unethical practices. When dealing with customers or
clients, business people must ensure that they use their information correctly, do not falsely advertise a product
or service, and do not intentionally do sub-standard work.
Small Business Ethics: Although there are ethical issues like discrimination that apply to all areas of business,
each business area has its own ethical concerns. For example, business people who act as consultants must
ensure they are giving sound advice. In the area of small business, some major ethical issues result from hiring,
firing and dealing with employees. For example, conflicts of interest may cause ethical issues in small
businesses, especially if they are family run. When personal family issues interfere with business decisions, this
is a conflict of interest and an ethical concern.

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