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INDIA 201303



BBA (JULY 2010-11)
Assignment A
Ans 1. Schools of Management

1. Classical school :
classsical management theory consists of a group of similar ideas on the
managament of organizations evolved in late 19th & early 20th century.
This school is also called the traditional school of management. This
school evolved as a result of industrial revolution in response to the
growth of large organizations. classical school discusses management as:
A. Management is ordering people to do the job.
B. Management is desigening job structure.
C. Management is to forcast, to plan, to organize, to coordinate and to
The first statement of management was based on economic rationality of
the employee. That assumes that people choose there course of action that
maximizes their monetary rewards. Thus to get employees to work hard,
managers should appeal to their monetary desire. Classical theorists
recognized human emotions.

The second statement was based on the series of ideas developed by

Frederick Winslow Taylor. Which are as follows:
1. Each person's job should be broken down into elements & a scientific
way to perform each element should be determined.
2. Workers should be scientifically selected & trained to do the work in
designed & trained manner.
3. There should be good cooperation between management & workers so
that tasks are performed in the designed manner.
4. There should be a division of labour between managers & workers.
Managers should take over the work of supervising and setting up
instructions and designing the work, and the worker should be free to
perform the work himself.

The third statement was based on the Fayol's unified concept. Fayol wrote
that all the activities of business enterprises could be divided into six
groups: technical, commercial , financial , accounting , commanding,
coordinating and controlling. He focused on the managerial activity &
propounded that basic functions of a manager consists of planning,
organizing , commanding, coordinating and controlling. He also presented
14 principles of management.
2. Behavioural school:
The human relations approach of management has evolved into modern
behaviourism. The term modern behaviourism refers to the current stage of
evolution of the behavioural school of management,which gives primacy
to psychological needs but treats fulfillment of emotional needs mainly as
a means of achieving other primary economic goals. Important behavioural
scientists like Abraham Maslow, Frederick Herzberg & Karl Lewin had
regorous traning in various social sciences and used sophisticated research
models. They regarded the classical management theory as highly
mechanistic , which tends to degrade the human spirit and is non-
responsive to human needs. The behaviourists preferred more flexible
organization structures with jobs built around the capabilities and aptitudes
of average employees.

3. Modern Management School:

The Modern management theory highlights the complexity of the
organization as well as individuals and the diversity of their needs,
motives, aspirations and potentials. As a result , universal management
principles are impracticable. There is no single managerial strategy that
works for all the poeple at all times. Four important modern management
theories are: 1. systems theory: A system is an entity made up of two or
more interdependent parts that interacts to form a functioning organism. A
system can either be open or closed. A system adapts and adjusts to the
changing conditions of its environment and exercises control over its
operations through feedback.
2. contingency theory: The contingency approach stresses the absence of a
single best way to manage and emphasizes the need for managerial
strategies based on all relevent facts. This theory says that organization
must be designed to fit its situation, particularly its environment & the
technology it uses.
3. organizational humanism: The philosophy of this theory is that the
individuals need to use all of their capacities and creative skills at work as
well as at home. Organizational humanism focuses on individual needs and
the satisfaction of these needs at work.
4. management science: This theory proposes the use of quantitative
technique to aid decision making. It focuses on making objective &
rational decisions.
The most important theory out of three is Modern Management school
theory. As it is not possible to have a common management strategy for
different oranizational needs in a fast changing business world. The
Modern Management theory ephasises on having different strategies for
different needs. Also it caters for the human needs at work place so taking
in account some important findings & theories of Behavioural school.
Ans 2. Principles of Management by Henry Fayol.

Fayol wrote a book called 'General and Industrial management'.

He stressed on managerial aspects and he regarded elements of
management as its functions. His observations are still valid after 7-8
decades. He is also called the real father of modern management theory.
His 14 pinciples of management are flexible not absolute.

1. Division of work: This principle proposes that work can be performed

more efficently and more productively if it is divided into smaller elements
& assigning specific elements to specific workers. Fayol applied this
principle to both managerial as well as technical work.
2. Authority and responsibility: Managers require auhority
commensurate with responsibility, to give orders so that tasks will be
accomplished. Fayol
found these are related, with latter arising from formal.
3. Discipline: This principle suggests that along with good supervisors at
all levels, organizations require a set of clearly defined rules and
procedures aimed at attaining good employee discipline and obedience.
4. Unity of command: This principle suggests that for any action what so
ever, an employee should receive orders from one boss only.
5. Unity of direction: This principle proposes that there should be only
one plan and one boss for each group of activities having the same
6. Subordination of individual to general interest: This principle
proposes that employees must sacrifice their personal interests for the good
of the organization. The goals of organization must take over the intrests of
7. Remuneration: Compensation for work done sholud be reasonable to
both employee and the organization, and it should be sufficiently
8. Centralization: According to this principle organizations must attain a
balance between centralization and decentralization and the degree of both
can be determined by individual circumstances.
9. Scalar chain: This principle suggests that communication in
organizations should be basically vertical, and there should be horizontal
communication only when the need arises.
10. Order: This principle suggests that in organizations there should be
aplace for everything and everything should be in place.Basically ,the
principle provides a form of formal organizational control.

11. Equity:Equity means fairness. According to this principle the equity

that results from managers being kind and just towards their subordinates
will lead to devoted and loyal service.
12. Stability of tenure: This principle suggests that training new
employees takes time and it is expensive.Unnecessary employee turnover
would thus be inefficient and should be avoided.
13. Initiative: This principle proposes for managers who possess the
ability to conceive new ideas as well as the ability to implement them
while sacrificing personal vanity.
14. Espirit-De-Corps: According to the last principle maintance of high
moral and unity among employees is imperative.

The most important principle out of the 14 is the "Divison of work" as this
also forms a part of planning process. Dividing the work according to the
expertise of the employees leads to better productivity , best utilization &
less wastage of the resources. Division of work according to employee's
area of knowledge also increases job satistaction among the employees.
Ans 3. Decision Making

Decision making is considered as the most critical part of managerial task

as it is the core of all planned activities. All the objectives of decision
making process are directly focused on the improvement of the business.
These objectives include sucessfully solving the problems by analysing the
causes of the problem and implementing solutions to prevent the problem
in future.
Steps involved in Decision making process:
1. Identify and select the problem : A discrepancy between an existing
and desired state of affairs is known as problem. A manager should be able
to idetify the problem and its urgency at the moment it aries.
2. Analyse the cause of the problem : This step involves brainstroming
all potential causes of the discrepancy and collecting data which provides
the needed facts to determine the root cause of the problem.
3. Generate potential decisions: For most problems there are usaually
several solutions. It is important to get to know all the possible solutions as
the first idea is not always the best.
4. Select & plan the decison to be implemented: This step involves
prioritising the best solution identified while keeping in mind the costs that
will be incurred, Risks likely to be encountered and Outcomes that are
desired. A specific acton plan is prepared in this step which identifies the
key activities. Then the plan is presented to the higher management for
further consideration.
5. Decide and implement: Project teams are now formed to implement
the decided solution. These teams are regularly reviewd to ensure progress
and cost control. Contingency plans may come into play if necessary.
6. Evaluating the decision: After the sucessful implementation, the
project needs to be closley monitered and evaluated to find out the extent
to which the desired results have been achived.
Ans 4. Communication Process:
The responsibility of an effective communication lies with both the sender
and recevier.

Effective communication = Receipt of message + Understanding +

Acceptance + Action

For proper receipt of message the responsibility lies with the sender as the
sender must be clear about purpose of message and this is the first part of
communication process. Listening is the key to understanding, listening is
the responsibility of recevier and this is the second part of the process.
How do the sender know that message has been received properly? By
feedback. This will tell the sender that the recevier understood the
message. This feed back forms the third step of the process. Last step of
the process is to take proper action which is being sent in the message this
step is recevier's responsibility. Hence one can say Communication is an
exchange , not just to give , both parties must complete the information
exchange for an effective communication.
Ans 5. Planning as a management process:
Planning is deciding in advance who will do what, at certain time what is
to be achived. In business planning is an ongoing effort. A paln is a
predetermined course of action to achieve goals. Its a blue print of action.
Hence can be said"planning is charting the future course of action at
Advantages of palnning :
# Attention on objectives
#Minimising uncertaninties
#Better utilization of resources
#Better coordination
#Facilitates control
Planning covers all the important areas of management such as objectives
and goals of the company , planning is involved in every management
process wether it be finacial process like budgeting or planning the course
of action for expansion & growth of the business. A detailed planning is
always needed in every mangement process to achieve desired results.
Advantages of planning include unidirectional efforts of the employees
and managers to achieve the goal faster , effectively managing the change ,
and controlling the standards.
Assignment B

Ans 1. The process of bringing about improvement in knowledge, skill,

habits. and attitudes of employees in an organization is a fairly important
part of management activities, still it constitutes too small part of the total
scope of management activities to qualify as a definition of management.
Management is consists of four broad function, which are (1) planning or
decision making, (2) organizing and staffing, (3) motivating and leading,
and (4) controlling. All the activities described in the question form a
small part of staffing activity, which in itself is a part of the second activity
listed above.Also the definition of management given in the question
makes no mention of the responsibility of management in achieving the
organizational objectives, toward which all management activities need to
be directed.
Thus desorption of management as "a process of bringing about
improvement in knowledge, skill, habits. and attitudes of employees in an
organization" is not a very good or satisfactory definition of management.
Ans 2. Types of plans & steps of planning:
Different types of plans could be:
1. Purpose or mission – Basic function assingned by the society to the
2. Objectives – Ends towards which organization's activities are focused.
3. Strategies – The broad areas of organization's operations , These are a
framework for guiding, thinking & action.
4. Policies – The general statements that guide or help in desicion making
5. Procedures – Procedures establish a required method of handling future
activities,they are guides to action. Procedures also include Rules ,
Programs & Budget.

Steps pf planning:
1. Assessing current conditions – Dertermining the current situation
including examination of resources, market trends, economic indicators
and competitors.
2. Determining Goals & Objectives – Clearly determining the goals which
are the future states or the long term plans contributing to the fulfillment of
organiz 's mission. And the objectives which are short term , specific &
measurable targets that must be reached to accomplish organizational
3. Establishing an action plan – Placing in a action plan with specific set of
behaviour that will lead to the atatainment of an objective.
4. Allocating resources – Resources include people , money & time.
Carefull allocation of work among the employees according to their
expertise. Carefull budgeting according to the project. Clearly framing the
time limits.
5. Implementation – Implementing the decided action plan with the
organizational resources through the delegation of taskes, objective driven
actions, and feedback of data.
6. Controlling the implementation – Continusly managing the plans to
ensure they meet objectives int the correct time frame.
Ans 3. Forms of Departmentalization :
1. Departmentalization by simple numbers.
only useful at the lowest level.
2. Departmentalization by time
very old-system shifts
3. Departmentalization by enterprise function.
grouping of activities in accordance with the functions of an enterprise.
4. Functional Departmentalization
based on organising activities
5. Customer Departmentalization
grouping of activities to reflect a primary intrest in coustomers.
6. Process Departmentalization
used by manufacturing firms
7. Product Departmentalization
used by multi line large scale enterprises
Case Study

Ans 1. Mr. Bansal satisfied his full time employees's need of Esteem by
providing them their own counter area and their own line of merchandise.

Ans 2. According to Maslow's hierarchy of needs Esteem need is the need

to feel good about oneself. To have confidence in one's abilities. To be
recognized as having capabilities or skills by peers.
In given case Mr. Bansal provided him employees with their own work
stations & line of merchandise. He fulfilled their need by recognizing their
capabilities & skills.

Ans 3. Mr. Bansal satisfied satisfied his employees's esteem needs by

using Advancement & Recognition as motivational strategies. He gave
seperate work stations to his full time employees & gave more
responsibility to the sales staff for managing their own inventory as a part
of advancement strategy. He also organised staff meetings every week to
bring staff together to review the policies & procedures. These meetings
gave him an opportunity to recognize the accomplishments of employees
as a part of recognition strategy.
Assignment 'C'

Q 1.
Ans. C

Q 2.
Ans. B

Q 3.
Ans. A

Q 4.
Ans. D

Q 5.
Ans. C

Q 6.
Ans. B

Q 7.
Ans. D

Q 8.
Ans. D

Q 9.
Ans. C

Q 10.
Ans. D

Q 11.
Ans. B
Q 12.
Ans. D

Q 13.
Ans. D

Q 14.
Ans. C

Q 15.
Ans. D

Q 16.
Ans. D

Q 17.
Ans. A

Q 18.
Ans. D

Q 19.
Ans. A

Q 20.
Ans. C

Q 21.
Ans. D

Q 22.
Ans. B

Q 23.

Q 24.
Ans. A
Q 25.
Ans. B

Q 26.
Ans. C

Q 27.
Ans. D

Q 28.
Ans. D

Q 29.
Ans. A

Q 30.
Ans. C

Q 31.
Ans. D

Q 32.
Ans. C

Q 33.
Ans. C

Q 34.
Ans. D

Q 35.
Ans .A

Q 36.
Ans. B

Q 37.
Ans. C
Q 38.
Ans. D

Q 39.
Ans. C

Q 40.
Ans. C