Amity CampusUttar PradeshIndia 201303

ASSIGNMENTSPROGRAM: DBM

Subject Name : PRINCIPLE AND PRACTICE OF MANAGEMENTStudy COUNTRY : NAMIBIARoll Number (Reg. No.): NOT YET ALLOCATEDStudent Name : BENHARD MANGUDNU H.

INSTRUCTIONSa) Students are required to submit all three assignment sets.

ASSIGNMENT DETAILS MARKSAssignment A Five Subjective Questions 10Assignment B Three Subjective Questions + Case Study 10Assignment C Objective or one line Questions 10

b) Total weight age given to these assignments is 30%. OR 30 Marksc) All assignments are to be completed as typed in word/pdf.d) All questions are required to be attempted.e) All the three assignments are to be completed by due dates and need to be

submitted for evaluation by Amity University.f) The students have to attach a scan signature in the form.

Signature :Date : 19 December 2015( √ ) Tick mark in front of the assignments submittedAssignment

‘A’ Assignment ‘B’ Assignment ‘C’

Principles and practices of Management

ASSIGNMENT- A

All questions carry equal marks.

Q-1. Compare the three schools of management thought and discuss which theory as per you is most important and why?

Ans: All managers perform the same managerial function regardless of their position in the organizational hierarchy.

Different school of thought has emerged and all of them define management in their own way:

Classical school:

Management is ordering people to do the job.

Management is designing job structure.

To manage is to forecast, to plan, to organize, to command, to coordinate, and to control (Fayol)

Behavioral School:

Management is managing men.

Management is the development of people and not the direction.

Modern management theory:

Modern definition: Management is a multipurpose of an organ of a society, which aims at utilizing the resources of the country for creating a situation of plenty and comforts instead scarcity and misery.

However another school of thought, led by eminent Writer Oliver Sheldon, is of the view that management is a lower-level function and is concerned primarily with the execution of the policies formed by the top-body or administration. This school, narrows down the meaning of management

by stating that administration determines the corporate policy, co-ordination of finance, and definition of goals, whereas, management uses the policies and strives towards the objectives.

The development of the theory of management is useful because it provide a broad basis for approaching management problems. In the recent time, there has been a growing concern about the proper role of a firm within our society. Traditionally this role was limited to production and distribution of economic goods and services, in return for profits. However, the term ‘’social responsibility” is being referred to quite often in the present day situation. It has been increasing felt that the social consequences of business organization cannot be ignored any longer.

Management is a process comprising of series of actions that lead to accomplishment of objectives. Since this action is basically concerned with inert-personal relationships, every management decisions have a social impact. Therefore, management can also be called a social process. Is management and administration the same? According to one school of thought ‘management ‘is a comprehensive term embracing within its scope of the entire process of planning, policy making, co-ordination of activities, maintaining discipline, as well as controlling the operations so as to attain best possible results.

Thus management activity can be classified into two broad heads-administrative management and operative management. The former is primarily concerned with policy- decision making, changing such decision as and when necessary, preparing plans, fixing standards of performance and verifying the actual performances vise-a-visa pre-determined standard. On the other hand operative management is concerned with carrying out of these policies and plans to achieve the organizational objectives.

Best school of management according to me:I agree with the behavioral school of management means managing men and the development of people.

According to me behavioral school is the best and most updated with today’s beliefs and most efficient in the actual work scenario.

Management effort are to provide an atmosphere in which efficiency and accomplishment are recognized and rewarded, employee self- development is emphasized, and employees’ rights and privileges are fulfilled.

The growth of the organization is a cumulative effect of the growth of the people working in an organization.

Behavioral school of management gives utmost importance to the most useful resources in any organization and that is human resource. It’s the human in an organization that have to perform the task right from minor to major tasks.

Behavioral school guides to manage and develop the men of the organization which is the base of any organization and when the base is strong then the organization is strong too. So I believe in strength of behavioral school of management.

Because the person working in an organization should be developed and should be aware of latest technologies then only they can contribute towards the betterment of the organization. Actually management is managing the men only, not the process, because the process is always running.

In the management of a small team, the human factor is crucial to success. Let’s consider possible motivators and a simple framework of dealing with people.

When you are struggling with a deadline or dealing with delicate decision, the last thing you want to deal with is “people”. When the fight is really on and the battle is undecided, you want your team to act co-operatively, quickly, and rationally; you do not want a disgruntled employee bitching about life, you do not want a worker who avoids work, you do not want your key engineer being tired all day because the baby cries all night. But this is what happens, and as a manager you have to deal with it. Few “people’s problems” can be solved quickly, some are totally beyond your control and can only be contained; but you do have influence over many factors which affect your people and so it is your responsibility to ensure that your influence is a positive one.

You can only underestimate the impact which you personally have upon the habits and effectiveness of your group. As the leader of a team you have the authority to sanction, encourage or restrict most aspects of their working day, and this places you in a position of power and responsibility. This article looks briefly at your behavior and at what motivates people, because by understanding these you can adapt yourself and the work environment so that your team and the company are both enriched. Since the human psychology is a vast and complex subject, we do not even pretend to explain it. Instead, the article then outlines a simple model of behavior and a systematic approach to analyzing how you can exert your influence to help your team to work.

Actually management means to evaluate and control all the process of an organization in addition giving the feedback to ADMINISTRATION to find the other resources for the betterment of the organization for continual growth of organization as well as the employee. Because can only be benefitted if the income of the organization is to be increased by means of evaluating and modifying the existing infrastructure time to time as per the demand of rapidly changing the technology, which can be only updated with the efforts of a good management.

Effective general management includes the ability to communicate, to be approachable, to encourage and respond to upward flows of ideas, and to adopt great behavioral flexibility.

We hear that firms are over-managed’ and under-lead’; leading to an unfortunate distinction between management and leadership with pernicious implication that good management is some-how inferior and less important than leadership. The distinction can cause great mischief when embodied in the belief that a senior executive need only to be a good leader rather than an effective manager.

Influential leaders who did not know how to manage have done much damage in human affairs as they raised expectations without the ability to deliver on them. And no effective number –two executive officer/chief operating officer/executive vice president types can totally compensate for the destructive effects of a charismatic leader who has no aptitude for the nitty-gritty of actual management.

Of course, the good manager/non-leader can be boringly bureaucratic. In the long run such narrow people can also reduce human liberties and spirit, as adherence to rules becomes an end instead of a means. The worldwide skepticism about government-run business reflexes this unhappy experience.

The effective general executive does not need to be an important philosopher-king, but does need an ability to uncover vision and convert it into action. The chief executive alone does not have to be the creator for the unifying vision. The vision may be more collective in origin than one individual, but clearly it must be shared and converted into management practice.

Q-2. Discuss the 14 general principles of management given by Fayol. Which principle do you think is the most important?

ANS=Henri Fayol-process management theory: Fayol wrote a book called “General and Industrial management”.

Fayol stressed on managerial aspects and he regarded element of management as it’s functions-planning, organizing, commanding, coordinating and controlling. His observations are still valid after 7-8 decades. Throughout his study he stressed on the universality of the principles. He repeatedly pointed out that the principles apply not only to business but also to political, religious, philanthropic, military and other undertakings. Fayol is also called the real father of modern management theory, according to fayol there are 14 general principles of management.

These principles are flexible not absolute.

Division of work-Fayol applies these principles to all kind of work, managerial as well as technical.

Authority and Responsibility-Fayol found these are related, with latter arising from the former.

Discipline-Fayol said discipline requires good superior at all levels.

Unity of command-Single superior should give orders.

Unity of direction- Each group of activity with the same objective must have one head and one plan.

Subordination of individual to general interest.

Remuneration-must be fair giving maximum possible satisfaction to employees and employer.

Centralization-Fayol says individual circumstances will determine the degree to which authority is concentrated or dispersed.

Scalar chain-Fayol believed that “chain of superior” from highest to lowest rank should not be departed from needlessly but can be short- circuited when the need be.

Order-“A place for everything and everyone”

Equity-Loyalty can be elicited from personnel by combination of kindliness and justice.

Stability of tenure-unnecessary turnover can have high danger and costs.

Initiative-Managers must sacrifices personal vanity to permit subordinates to exercise initiative.

Espirit-De-Corps-“in union there is strength” emphasizing the need for teamwork” and importance of communication in obtaining it.

Q-3. "Decision making is the most critical managerial task." Discuss the above statement in light of decision-making steps.

ANS=It is the selection of the appropriate alternative from a set of alternative courses of action. It is the core of planning. Decision making has been identified as the primary responsibility of any manager. Decision making is at the core of all planned activities. Effective decision making must be rational, i.e., for effective decision making the decision maker must generate all the possible alternatives, he must also all the relevant information, be able to analyze and evaluate alternatives and must have a desire to achieve the best solution. Seldom can 100% rationality be achieved as future entails uncertainties so the manager must settle for limited rationality. Limitations are in terms of information, time and certainty.

Alternative are evaluated based on quantitative and qualitative factors. Selection is done based on experience, experimentation or research and analysis. The decision may be programed (structured) i.e., repetitive and routine or non-programed (unstructured) i.e., unique, strategic. Decisions are made under different condition: Certainty condition – cause effect known, means decision maker are sure what are the effects of the decision.

Risk condition – Probabilities can be drawn, meaning decision maker are not sure what would be the effect area of that decision. So it’s better to draw all the probabilities after the decision and then to select the right decision.

Uncertainty condition- Meager database ensure whether the situation will change or not. It is better to make some database or if possible can consult his colleagues before taking any final decision.

Decision making process requires a structured approach involving six steps:

Identify and select the problem-A problem is a deviation between the ACTUAL result and the TARGET level at which the result should be, or an OPPORTUNITY level at which the result should be. A problem statement should be written based on the measurement taken. The most serious problems are those customer experiences. Implement holding action, if necessary, while solving the problem.

Analyze the causes of the problem-Brainstorm all potential causes of the deviation. Usually, there are several causes of a problem that require analyzing and prioritizing. This will require collecting data which the fact needed rather than opinions. Determine the root causes.

General potential decision- For most problems there are usually several solutions. The first idea is not always the best. ‘Brainstorming’ and ‘Building’ on ideas are the most effective way to find the right solution. Use competitive benchmarking to adopt other ideas.

Select and plan the decision to be implemented: Prioritize the solution identified using cost-benefit analysis together with the timetable demanded by the urgency of the problem. A specific ACTION PLAN must be prepared identifying the key activities with start and finish dates, and the named individual who will carry them out. The proposed plan is then presented to the next higher manager for approval, giving opportunity for team recognition.

Decide and implement: The project teams are responsible for implementing the decision. Regular review of the project is essential to control progress and costs, ensuring that the benefits are gained. Contingency plans may need to be activated to overcome practical difficulties arising.

Evaluating the decision following successful implementation, the project must be monitored and evaluated. Has the problem been solved? Is the customer satisfied? What added value has been

achieved? It may be necessary to use the decision making process again. Also evaluation can be done by collecting the feedback.

Q. 4. Which party bears more responsibility in the communication process-sender, receiver or both? Justify your answer.

ANS:=Communication is defined as “the sharing, transfer (exchange) of messages, facts” opinion, idea or attitudes and emotions between sender (manager) and receiver (employee) or between two or more people. Sharing or exchange is a two way process.

Real communication in the context of a work organization is not one way process.

Communication involves both sender and receiver and it also involves the medium and feedback.

Communication is a two way process where sender and receiver are equally responsible for effective communication.

Proper understanding (the way it is intended by sender) of message/information by the receiver is equally important. If this does not happen the very purpose of communication is defeated.

Effective communication occurs only if the receiver understands the exact information or idea that the sender intended to transmit.

The responsibility of effective communication lies with both the sender and the listener.

Communication is very important in an organization. A two way communication is required to enable the smooth operation and getting proper feedback of any organization. Actually sender becomes receiver if he wants the feedback and the receiver becomes the sender for proper feedback to the previous. A message has NOT been communicated unless it is understood by the receiver.

By two way communication or feedback only we can decide that communication is effective. This feedback will tell the sender that the receiver understood the message; it is level of importance, and what must be done with it. Communication is an exchange not just to give, all parties must participate to complete to complete the information exchanged.

Source and encoder: Information source is the origin of the message. Sender is the source of some thought, need or information to be transmitted. He is also the encoder. The message is put into a code before it is transmitted. Language is a popular code.

Message: spoken words, printed words, graphic drawing, facial expression, gesture and etc., are all messages.

Channel: Medium used to transfer message, sight and sound, phone, newspaper, TV and etc., the best communication channel is face to face interaction. The channel links sender with the receiver. Proper channel is vital for effective communication.

Decoder and receiver: receiver decodes message and attaches meaning to it. But he should be ready for it. Communication is not complete unless it is understood.

Q-5. "Planning is charting the future course of action at present." Do you agree? Discuss the advantage of planning as a management process.

ANS:- Planning is the process by which managers examine their internal and external environments and ask fundamental questions about their organizations missions, goals, and objectives. If group effort has to be effective, people must know what they are expected to accomplish. Therefore it is the first and the most important management function.

Planning requires selecting missions and objectives and the action to achieve them.

Planning is deciding in advance who will do what, at a certain time and what is to be achieved. In business, planning is an ongoing effort since changes are continuous. A plan is a predetermined course of action to achieve a specific aim or goal. It is a blue print of action.

Planning process

Collection and analysis

Identify problems, analyze resource data, and determine objectives, inventory resources.

Description support

Formulate alternatives, evaluate alternatives, and make decisions.

Application and evaluation

Implement the plan, evaluate the plan.

Planning is an analytical thought process that covers:

Assessment of future.

Determination of objectives and goals.

Development of alternative courses of action.

Selection of best course of action.

Planning precedes all other functions-All plans must contribute to purpose and objectives. It is all pervasive activity- all levels of managers have to do planning. Plans are effective if they achieve their purpose at a reasonable cost (in terms of time and money). Planning has to be systematic to ensure timely, orderly, and cost effective to achieve specific objectives. Planning should involve everyone – centralized planning occurs when responsibility rests with top level executives. Decentralized planning occurs when responsibilities rest with managers and workers who actually execute the tasks.

Benefits of planning: planning can be very beneficial with four major areas:

Coordinating of efforts

Preparation change

Development of performance standards

Development of managers

1 .Integrated, constant and purposeful action is more easily achieved. All efforts are directed towards the desired objectives or results. Unproductive work and waste of resources can be minimized. Through planning managers can relate decisions to each other and goals of the enterprise.

2. Planning enables a company to be competitive with other rivals. Progressive management likes to be proactive rather than reactive.

3. through planning adverse situation can be anticipated and mistakes or delays avoided.

Trouble can be more often easily corrected in its earlier stages than after a crisis” forewarned is forearmed.

4. Planning helps to plan for changes and also help in managing change effectively.

5. Planning leads to systematic and thorough investigation of alternative methods.

6. Plans are based on adequate information of the past, present and intelligent forecasting of the future.

7. Plans give control standards.

8. Planning facilitate effective delegation of authority and remove communication difficulties.

Assignment BQ-1. Management can be defined as “a process of bringing about improvement knowledge, skills habit and attitudes of the employees” in an organization’, Discuss.

ANS:- Management is universal in modern industrial world. Every organization requires the making of decision, the coordination of activities, handling of people, and the evaluation of the performance directed toward organizational objectives. Specialization and increase in the scale of operations have increased the importance of management.

Management is the process of designing and maintaining an environment in which individuals working together in groups accomplish effectively selected aims. If we expand this definition we will understand that:

Management is present in any kind of organization (business or non-business). Its aim is to create a surplus, i.e., management is concerned with productivity

which is measured through effectiveness and efficiency.

A manager works in coordination with both the internal and external environment.

It is essentially decision making under various constraints.

It is an integrated as well as continuous process.

It is use of means to accomplish given ends.

For achieving the objective the managers have to assume responsibility, achieve a balance among competing (and often conflicting) goals, and have to be conceptual thinkers. The term management is often used to refer to a group of managerial personnel of an enterprise. Sometimes, this term is used as a way of referring to the process of managing. On other occasions it is used as a substantive to describe the subject, the body of knowledge and practice as a whole, the discipline. Strictly speaking, management is a functional concept and does include persons who practice management. Such persons are designated as managers, executives and etc. However in our daily transaction we generally include the practitioners within the scope of this term.

The managerial process is a complex social activity. It is a process because it comprises of a series of actions that lead to accomplishment of objectives. It is known as a social process because this action is concerned with relations between people, i.e., interpersonal relationship. IT is a continuous process, there are always fresh minds to stimulate, newer are and approaches to explore, and never changing situations to tackle. Management is mental or intellectual process involving thoughts, judgments and decisions. The fundamental aim is being achieved of certain objectives.

Technological development has continuously changed the setting of management. However, the chief characteristics of management are the integration and application of knowledge and analytical approaches developed by numerous disciplines. This involves:

Formation of policies and its translation into plans. Execution and implementation of plans, and

Exercising administrative control over the plan.

Utilization of resource has been one of the most common and yet perhaps the most complex management activity. Maximum return utility from limited available resources has been the main aim of any manager. Traditionally, only three factors of production were recognized, in the absence of which the other three factors could be rendered useless. This fourth vital factor of production is entrepreneurship. The entrepreneur could be having his own resources or a custodian of someone else resources, organizing it with a view to attain maximum output and efficiency with minimum input. As such, management can also be defined as a process through which all the resources are organized and utilized to attain maximum output and efficiency through minimum input.

A liberal point of view is not merely a sum of number of narrow approaches. Its emphasis is on freedom to choose from widest range of possibilities already available or newly involved. The stress is on to expanding the mental horizon with utmost freedom with an effort to strive towards an ultimate in life. The paradox of management is that it is based on identifiable and rigorous framework of concepts, but at the same time it continues to strive towards breaking out of any self-discipline

Thus, management can also be defined as a process of bringing about improvement in knowledge, skills, habits and attitudes of the employee in an organization. In other word it refers to development

of people in the organization. Management involves improvement in knowledge factors, attitude factors, and ability factors of the employees in an organization.

Knowledge factors: refers to ideas concepts, or principles that are conscious, able to be expressed, and are accepted because they are subject to logical proof.

Attitude factors: relates to those beliefs, feelings, desires, and value that may be based on emotions and may not be subject to conscious verbalization. Interest in ones work, desire to accept responsibility, respect for the dignity of ones associates, and desire for creative contribution are some of the attitude factors.

Ability factors: are too often treated as being unaffected by environment. Skills, art, judgments and wisdom are the four most important ability factors required in management. Although this are abstract, but nevertheless they can be developed and sharpened through practice.

Q-2. Which are the various types of plans you are familiar with? Discus the steps involved in the planning process.

ANS:- Types of planning : types of planning is determined by three factors, namely- scope (the range of activities covered) – time frame (the period covered by the plan) and level of details (the specificity of the plan) Depending upon this factors planning could be:

1.Strategic planning- comprehensive, long-term and relatively general planning.

2.Operational planning- focus, short –term, and specific planning.

3.Tactical planning- more narrow, intermediate-term planning, more specific than strategic planning, but not as narrow as operational planning.

Types of plans: as opposed to the various type of planning, different types of plans could be:

1.Purpose or mission-basic functions assigned by society to the organization.

2.Objectives/ goals-ends towards which activities are aimed and end point of the organization.

3.Strategies- broad areas of an enterprise operation, normally it is in light of competitors. The has to decide on its growth goal and desired profitability. Form a framework of for guiding, thinking and action.

4.Policies—general statement that guides decision-making. Policies encourage discretion and initiative within limits.

5.Procedures- establish a required method of handling future activities, they are guides to action.

6.Rules-specific required action, allowing no discretion.

7.Programs-complex of goals, policies, procedures, rules, tasks, assignment steps to be taken, resources to be employed and other elements necessary.

8.Budget-statement of expected results expressed in numerical terms, i.e. numerical program.

Steps in the planning process: Planning process involve four steps and then gives way to the implementation phase. These are:

1. Asses’ current condition:-determine the current situation, including examination of resources, market trends, economic indicators, and competitors.

2. Determining goals and objectives:-goals are the future states or conditions that contribute to the fulfillment of the organization mission. Objectives are short-term, specific, measurable targets that must be reached to accomplish the organizational goals.

3. Establishing an action plan: An action plan is a specific set of behavior that will lead ti the attainment of an objective.

4. Allocate resources: Resources include people, time and money. TFP – (Total Factor Productivity) is a measure of a firm’s effectiveness in using its resources to create product values. A budget is a predetermined amount of resources allocated to an activity which includes budgeting organizational resources for each step in the process.

5. Implementation: The commitment of the organizational resources through the delegation of tasks, objective driven actions, and feedback of data.

6. Control the implementation: The continuous management of plans to ensure that they meet the objectives in the correct time horizon.

Q-3.Departmentalization is grouping activities and people into departments. Which are the various forms seen in the industry?

ANS:- Departmentalization : After reviewing the plans, usually the first step in organizing process is departmentalization. Once job have been classified through work specialization, they are grouped so that those common tasks can be coordinated. Departmentalization is the basis on which work or individuals are grouped into manageable units.

In other words we can say that departmentalization is grouping activities and people into departments. It helps to expand the organization. There is no ideal way of departmentalization applicable to all situations and organizations.

Various forms are seen in the industries, such as:

Departmentalization by simple numbers (only useful at the lowest level)

1.departmentalization by time (very old systems-shift seen in organizations where normal working days does not surface. E.g. Hospitals)

2.Departmentalization by enterprise function (grouping of activities in accordance with the function of an enterprise- e.g. –product, selling, financing etc.

3.Functional departmentalization (it is the most widely employed basis for organizing activities and is at present seen in almost every enterprise.

4.Departmentalization by territory –(Based on geographical territories)

5.Customer departmentalization-(grouping of activities to reflect a primary interest in customer, is common in service industries.)

6.Process departmentalization (seen in manufacturing firms)

7.Product departmentalization (In multi-line large –scale enterprises)

Coordination may be achieved through rules, procedures, planning, organizational hierarchy, personal contacts and sometimes through the liaison department.

CASE STUDY

NO COMMISSIONED ALLOWED

Q-1. What motivational need did Mr. Bansal satisfy for his fulltime employee?

ANS:-

Mr. Bansal gave full time employees their own counter area and their own line of merchandise. He also increased the responsibility of the sales staff for managing their own inventory and their own line of merchandise. So he gave them RECOGNITION AND RESPONSIBILITY.

Sales person were allowed to talk directly to the buying staff and the customers regarding any additional information. Mr. Bansal developed intrinsic or true work motivation i.e. sales person were in a position where they can shape their own social environment. True creativity or production comes into being only when learning is free from external constraints. Employees were able to make decisions on what they did every day.

When a person is allowed to exercise choice with respect to some given activity, it could be that the person’s sense of self-determination is enhanced not only in relation to that activity, but that there is an overall increase in this sense of personal autonomy.

Q-2. Discuss these needs with reference to Maslow’s hierarchy of needs.

Mr. Basal gave self - actualization and Esteem needs to employees by changing the working condition, quality of supervision, interpersonal relation, company policies, quality of policy. Which are called as META needs or growth needs as per Maslow’s hierarchy of needs.

Abraham Maslow developed the hierarchy needs model in 1940-50’s USA, and the hierarchy od needs theory remains valid today for understanding human motivation, management training and personal development.

Q-3.Mr. Bansal achieved significant productivity gains because of a positive change in employee’s attitudes. What motivational strategies did he use to achieve this success?

ANS:- Mr. Bansal observed the working condition, policies, administrative practices and supervision hygiene or dissatisfies, Mr. Bansal changed the policies and procedure of departmental store, also he discuss with employees about their problems , he started weekly meeting with employees, through which he recognize the accomplishment of employees.

He gave them their own counter area and their own line of merchandise.

He increase responsibility of staff by:

o Making them to manage their own inventory, and

o Manage their own line of merchandise.

Encouraged effective communication from his side to sale person regarding goals and departmental policies, from any person to himself regarding any problem or query, hence emphasizing organizational interest to all time and gain.

Publicly recognize achievement of sale person in meetings which boosts moral of sale person and further motivates them to work better.

Sales person were allowed to talk directly to the buying staff and the customers regarding of any additional information.

ASSIGNMENT - C

Multiple choices: ANSWERS

1. =C

2. =D

3. =A

4. =D

5. =C

6. =A

7. =B

8. =D

9. =D

10.=D

11.=B

12.=D

13.=A

14.=C

15.=C

16.=A

17.=B

18.=D

19.=B

20.=C

21.=D

22.=B

23.=A

24.=A

25.=B

26.=A

27.=D

28.=D

29.=A

30.=C

31.=D

32.=C

33.=C

34.=D

35.=A

36.=C

37.=C

38.=D

39.=C

40. =C

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Academy of management journal; Harvard Business.

Schermerhorn ,J.R. and Chappell,D.S.2000. Introducing management. New York: John Wiley.