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NOV/DEC-07/MG1351 Answer key

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Part A

1. Skills of Manager:

Technical skill, human skill, conceptual skills are the essential skills of a manager.

2. Management:

It is the process of designing & maintaining an environment in which individualsworking together in groups efficiently accomplish selected aims.

3. MBO:MBO is a process whereby the superior and the superior and the subordinate manager of

an enterprise jointly identify its common goals, define each individuals major areas of

responsibility in terms of result expected of him, and use these measures as guides foroperating the unit and the contribution of each of its members is assessed.

4. DSS:

A Decision Support System (DSS) is a class of information systems (including but notlimited to computerized systems) that support business and organizational decision-making

activities. A properly designed DSS is an interactive software-based system intended to help

decision makers compile useful information from a combination of raw data, documents,personal knowledge, or business models to identify and solve problems and make decisions.

5. Organization strategy:

Organizing is the process of identifying and grouping of activities required to attain

objectivities, delegating authority, creating the responsibility and establishing relationship forthe people to work effectively.

6. Organization structure:

Organization structure is a mechanism focuses on finding in present organizationalinflexibility and makes the staff work effective to achieve the objectives.

7. Autocratic leadership:

The leader takes all decisions by himself without consulting the subordinates.

8. Benefits & drawbacks of electronic media in communication:It saves travel expenses & travel time, no need to make travel plans long in advance.

But the equipment is subject to breakdown, poor substitute to meet others face to face.

9. Budget:It is the expression of a firms plan in financial form for a period of time in to the

future.

10. Theory Z management:Japanese management can also be called as theory z management which deals

with human resource, job security, team work, promotion, decision making etc.

Part B

11. (a) Henri fayols principles:

1. Division of WorkThe specialization of the workforce according to the skills a person , creating specific

personal and professional development within the labour force and therefore increasing

productivity; leads to specialization which increases the efficiency of labour. By separating a

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small part of work, the workers speed and accuracy in its performance increases. This principle

is applicable to both technical as well as managerial work.

2. Authority and Responsibility-

The issue of commands followed by responsibility for their consequences. Authority

means the right of a superior to give order to his subordinates; responsibility means obligationfor performance. This principle suggests that there must be parity between authority and

responsibility.. They are co-existent and go together, and are two sides of the same coin.

3. Discipline-

Discipline refers to obedience, proper conduct in relation to others, respect of authority,

etc. It is essential for the smooth functioning of all organizations.

4. Unity of Command -

This principle states that every subordinate should receive orders and be accountable toone and only one superior. If an employee receives orders from more than one superior, it is

likely to create confusion and conflict. Unity of Command also makes it easier to fixresponsibility for mistakes.

5. Unity of Direction -

All those working in the same line of activity must understand and pursue the sameobjectives. All related activities should be put under one group, there should be one plan of

action for them, and they should be under the control of one manager. It seeks to ensure unity of

action, focusing of efforts and coordination of strength.

6. Subordination of Individual Interest-

The management must put aside personal considerations and put company objectives

first. Therefore the interests of goals of the organization must prevail over the personal interests

of individuals.

7. Remuneration -

Workers must be paid sufficiently as this is a chief motivation of employees and

therefore greatly influences productivity. The quantum and methods of remuneration payable

should be fair, reasonable and rewarding of effort.

8. The Degree of Centralization -

The amount of power wielded with the central management depends on company size.Centralization implies the concentration of decision making authority at the top management.

Sharing of authority with lower levels is called decentralization. The organization should strive

to achieve a proper balance.

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9. Scalar Chain -

Scalar Chain refers to the chain of superiors ranging from top management to the

lowest rank. The principle suggests that there should be a clear line of authority from top tobottom linking all managers at all levels. It is considered a chain of command. It involves a

concept called a "gang plank" using which a subordinate may contact a superior or his superiorin case of an emergency,defying the hierarchy of control.However the immediate superiors mustbe informed about the matter

10. Order -

Social order ensures the fluid operation of a company through authoritative procedure.

Material order ensures safety and efficiency in the workplace.

11. Equity -

Employees must be treated kindly, and justice must be enacted to ensure a justworkplace. Managers should be fair and impartial when dealing with employees.

12. Stability of Tenure of Personnel -

The period of service should not be too short and employees should not be moved from

positions frequently. An employee cannot render useful service if he is removed before hebecomes accustomed to the work assigned to him.

13. Initiative -

Using the initiative of employees can add strength and new ideas to an organization.Initiative on the part of employees is a source of strength for the organization because it providesnew and better ideas. Employees are likely to take greater interest in the functioning of the

organization.

14. Esprit de Corps -

This refers to the need of managers to ensure and develop morale in the workplace;

individually and communally. Team spirit helps develop an atmosphere of mutual trust and

understanding. These can be used to initiate and aid the processes of change, organization,

decision making, skill management and the overall view of the management function.

Fayol also divided the management function into five key roles:

To organise To plan and forecast (Prevoyance) To command To control To coordinate

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11. (b) Functions of management:

Management operates through various functions, often classified as planning,

organizing, leading/motivating, and controlling.

Planning: Deciding what needs to happen in the future (today, next week, next month,next year, over the next 5 years, etc.) and generating plans for action.

Organizing: (Implementation) making optimum use of the resources required to enablethe successful carrying out of plans.

Staffing: Job analyzing, recruitment, and hiring individuals for appropriate jobs. Leading: Determining what needs to be done in a situation and getting people to do it. Controlling: Monitoring, checking progress against plans, which may need modification

based on feedback.

Motivating: the process of stimulating an individual to take action that will accomplish adesired goal..

12. (a) Organizational planning:

Planning refers to the process of deciding what to do and how to do it. Planning occursat many levels, from day-to-day decisions made by individuals and families, to complex

decisions made by businesses and governments. This paper focuses on community land use and

transport planning, but most principles described apply to any planning activity.

Planners are professionals who facilitate decision-making. Planners do not makedecisions themselves; rather, they support decision-makers (managers, public officials, citizens)

by coordinating information and activities. Their role is to create a logical, systematic decision-

making process that results in the best actions.Good planning requires a methodical process that clearly defines the steps that lead to

optimal solutions. This process should reflect the following principles:Comprehensive all significant options and impacts are considered.

Efficient the process should not waste time or money.

Inclusive people affected by the plan have opportunities to be involved.

Informative results are understood by stakeholders (people affected by a decision).

Integrated individual, short-term decisions should support strategic, long-term goals.

Logical each step leads to the next.

Transparent everybody involved understands how the process operates.

A principle of good planning is that individual, short-term decisions should supportstrategic, long-term goals. This requires comprehensive evaluation and negotiation to help

people accept solutions that may seem difficult and costly in the short-term. Good planning is

insightful, comprehensive and strategic. Planners should strive to truly understand problems, notjust a single perspective or manifestation. Effective planning requires correctly defining

problems and asking critical questions.

A planning proecess should not be limited to the first solution proposed or the concernsof people who attend meetings. For example, downtown merchants might complain of

inadequate customer parking near their stores. This problem can be defined in various ways

inadequate parking supply, too many vehicles, or inefficient management of available spaces

each implying different solutions.

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How much parking exists, including spaces currently unavailable to customers?

Who currently uses the most convenient spaces?

Who encounters this problem, when and where?

How is parking currently managed (including regulations and prices)?

What is the cost of increasing parking supply?

What management strategies could help address this problem?

Who bears the costs and benefits from potential solutions?

How well do various solutions integrate with strategic planning objectives?Planners should strive to understand factors that will affect the future. For example,

rather than simply showing how traffic congestion has grown in recent years and extrapolating

that trend into the future, a better analysis identifies specific factors that increased vehicle travel(population growth, rising incomes, declining real fuel prices, etc.), projects their future, and

considers public policies that may change them. As a result, rather than simply saying, Traffic isgrowing 4% annually, an astute planner might say, Vehicle traffic grew 4% annually during

the last decade but this is likely to decline somewhat in the future due to aging population andhigher future fuel prices, and could be avoided altogether if we implement certain mobility

management strategies.

12. (b) Decision making process:

It is important to define the geographic scale and area for planning. For example,when referring to a particular city somebody could mean its Central Business District (CBD),

urban neighborhoods, legal jurisdiction, or the city and its adjacent suburbs, which may be

defined as a metropolitan planning area. Statistics, such as population, employment and travel

data published by census or transportation agencies, may reflect any of these scales. A planningprocess should cover appropriate geographic units. If a particular decision may affect people

outside a jurisdiction, it is generally best to include them in the planning process, although their

concerns may be given less weight than those of residents within the jurisdiction.The Concept of Accessibility Accessibility (also called access or convenience) refers to

the ability to reach desired goods, services, activities and destinations (together called

opportunities). For example, a stepladder provides access to a high shelf, a store provides accessto goods, and a library or telecommunications device provide access to information. Walking,

cycling, ridesharing and public transit provide access to jobs, services and other activities.

Access is the ultimate goal of most transportation, excepting the small portion of travel in which

movement is an end in itself, (e.g., cruising, historic train rides, horseback riding, jogging). Evenrecreational travel usually has a destination, such as a resort or a campsite.

Four general factors affect physical accessibility:1. Mobility, that is, physical movement. Mobility can be provided by walking, cycling, public

transit, ridesharing, taxi, automobiles, trucks and other modes.

2. Transportation System Connectivity, which refers to the directness of links and the density ofconnections in path or road network.

3. Mobility Substitutes, such as telecommunications and delivery services. These can provide

access to some types of goods and activities, particularly those involving information.4. Land Use, that is, the geographic distribution of activities and destinations. When real estate

experts say location, location, location they mean accessibility, accessibility, accessibility.

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How an activity is measured can affect planning decisions. For example, it is generally easier tomeasure vehicle traffic conditions (such as traffic speed, roadway Level of Service, and per-mile

vehicle costs) than mobility (such as door-to-door travel speeds, or the sense of security

experienced by pedestrians and transit users), or accessibility (peoples ability to reach desired

goods, services and activities, taking into account both their mobility and land use conditions).This tends to skew planning to focus more on automobile transportation than on other mobility

and accessibility options (Litman, 2003). This is particularly important because many automobiletravel improvement strategies degrade walking and transit conditions.

13, (a) Departmentation:

The basis on which individuals are grouped into departments and departments into total

organizations.

Approach options include;

1. Functional - by common skills and work tasks2. Divisional - common product, program or geographical location3. Matrix - combination of Functional and Divisional4. Team - to accomplish specific tasks

Network - departments are independent providing functions for a central core breaker

Organizations are often troubled by how to organize, particularly when a new strategy isdeveloped.

Changing market conditions or new technology requires change.

Organizations seek efficiencies through improvements in organizing.

13. (b) Centralization & decentralization:

Centralization - The location of decision making authority near top organizational levels. Decentralization - The location of decision making authority near lower organizational

levels.

Formalization - The written documentation used to direct and control employees.

14. (a) (i) Maslows hierarchy of needs theory:

The theory can be summarized as follows:

Human beings have wants and desires which influence their behavior. Only unsatisfiedneeds influence behavior, satisfied needs do not.

Since needs are many, they are arranged in order of importance, from the basic to thecomplex.

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The person advances to the next level of needs only after the lower level need is at leastminimally satisfied.

The further the progress up the hierarchy, the more individuality, humanness and psychologicalhealth a person will show.

(ii) Motivational jobs:

Workers in any organization need something to keep them working. Most times the

salary of the employee is enough to keep him or her working for an organization. However,

sometimes just working for salary is not enough for employees to stay at an organization. An

employee must be motivated to work for a company or organization. If no motivation is presentin an employee, then that employees quality of work or all work in general will deteriorate.

Keeping an employee working at full potential is the ultimate goal of employeemotivation. There are many methods to help keep employees motivated. Some traditional ways

or motivating workers are placing them in competition with each other. Friendly competition is a

great way to generate motivation among employees. This gives a chance for employees to flextheir working skills in a competition against their peers. This not only will motivate employees

with a result of greater production, but the competition with recorded results will give the

employer an idea of who is being most productive.

There are two kinds of motivation:

Intrinsic motivation occurs when people are internally motivated to do somethingbecause it either brings them pleasure, they think it is important, or they feel that what

they are learning is significant.

Extrinsic motivation comes into play when a student is compelled to do something or acta certain way because of factors external to him or her (like money or good grades).

14. (b) (i) Communication process:

The elements in the process of communication are sender, communication

channels, symbols, receiver, noise & feedback in communication. Sender is the person who starts

the communication process for passing the information to others. Channel is the medium throughwhich the encoded information is passed to receiver.

Symbols provide the basis for transfer of information symbols may be in the formof words, sketches, diagrams, figures, action and coding. Receiver is the person who receives

finally information and understands it.

Generally, communication is affected by noise at any stage. It may be in the

sender, the transmission or the receiver stage. If any one is affected, the proper communication

will not reach the receiver. To ensure proper communication noiseless environment to beprovided. The effectiveness must be checked by the sender by feedback. It is done for checking

the information whether it is correctly reached or not.

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(ii) Barriers to communication:

The barriers to effective communication in an organization may be broadly classified

as physical barriers, socio-physhological or personal barriers, organizational barriers, semanticsbarriers, mechanical barriers.

For effective communication the information should be simple and clear, theinformation should be in known language to the receiver, the sender should use correct

communicating channel. For recording purpose, it should be in written and oral method for fast

communication, in written communication, principle of line authority should be followed, theinformation should contain adequate information, communication should be sent and received

timely, communication should be checked through feedback, informal communication should be

sent judiciously.

15. (a) Effective control system:

Control is one of the managerial functions like planning, organizing, staffing and directing.It is an important function because it helps to check the errors and to take the corrective action so

that deviation from standards are minimized and stated goals of the organization are achieved indesired manner.

Characteristics of Control:

Control is a continuous process Control is a management process Control is embedded in each level of organizational hierarchy Control is forward looking Control is closely linked with planning

Control is a tool for achieving organizational activities. The four basic elements in a control

system (1) the characteristic or condition to be controlled, (2) the sensor, (3) the comparator ,

and (4) the activator occur in the same sequence and maintain a consistent relationship to eachother in every system.

The first element is the characteristic or condition of the operating system which is to bemeasured. We select a specific characteristic because a correlation exists between it and how the

system is performing. The characteristic may be the output of the system during any stage of

processing or it may be a condition that has resulted from the output of the system. For example,it may be the heat energy produced by the furnace or the temperature in the room which has

changed because of the heat generated by the furnace. In an elementary school system, the hours

a teacher works or the gain in knowledge demonstrated by the students on a national examinationare examples of characteristics that may be selected for measurement, or control. The second

element of control, the sensor, is a means for measuring the characteristic or condition. The

control subsystem must be designed to include a sensory device or method of measurement. In ahome heating system this device would be the thermostat, and in a quality-control system this

measurement might be performed by a visual inspection of the product.

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The third element of control, the comparator, determines the need for correction by

comparing what is occurring with what has been planned. Some deviation from plan is usual andexpected, but when variations are beyond those considered acceptable, corrective action is

required. It is often possible to identify trends in performance and to take action before an

unacceptable variation from the norm occurs. This sort of preventative action indicates that good

control is being achieved.

The fourth element of control, the activator, is the corrective action taken to return the

system to expected output. The actual person, device, or method used to direct corrective inputs

into the operating system may take a variety of forms. It may be a hydraulic controller positioned

by a solenoid or electric motor in response to an electronic error signal, an employee directed torework the parts that failed to pass quality inspection, or a school principal who decides to buy

additional books to provide for an increased number of students. As long as a plan is performed

within allowable limits, corrective action is not necessary; this seldom occurs in practice.

Information is the medium of control, because the flow of sensory data and later the flow

of corrective information allow a characteristic or condition of the system to be controlled. Toillustrate how information flow facilitates control, let us review the elements of control in the

context of information.

15. (b) Control tools:

Process of Controlling

Setting performance standards. Measurement of actual performance. Comparing actual performance with standards.

Analysing deviations. Correcting deviations.

Kinds of control:

Control may be grouped according to three general classifications: (1) the nature of

the information flow designed into the system (that is, open- or closed-loop control), (2) the kind

of components included in the design (that is man or machine control systems), and (3) therelationship of control to the decision process (that is, organizational or operational control).

Open- and Closed-Loop Control:

The difference between open-loop control and closed-loop control is determined bywhether all of the control elements are an integral part of the system being regulated, and

whether allowable variations from standard have been predetermined. In an open-loop system,

not all of the elements will be designed into the system, and/or allowable variations will not bepredetermined.

A street-lighting system controlled by a timing device is an example of an open-loop

system. At a certain time each evening, a mechanical device closes the circuit and energy flows

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through the electric lines to light the lamps. Note, however, that the timing mechanism is an

independent unit and is not measuring the objective function of the lighting system. If the lightsshould be needed on a dark, stormy day the timing device would not recognize this need and

therefore would not activate energy inputs. Corrective properties may sometimes be built into the

controller (for example, to modify the time the lights are turned on as the days grow shorter or

longer), but this would not close the loop. In another instance, the sensing, comparison, oradjustment may be made through action taken by an individual who is not part of the system. For

example, the lights may be turned on by someone who happens to pass by and recognizes theneed for additional light.

If control is exercised as a result of the operation rather than because of outside orpredetermined arrangements, it is a closed-loop system. The home thermostat is the classic

example of a control device in a closed-loop system. When the room temperature drops below

the desired point, the control mechanism closes the circuit to start the furnace and thetemperature rises. The furnace-activating circuit is turned off as the temperature reaches the

preselected level. The significant difference between this type of system and an open-loop

system is that the control device is an element of the system it serves and measures theperformance of the system. In other words, all four control elements are integral to the specific

system.

An essential part of a closed-loop system is feedback; that is, the output of the system

is measured continually through the item controlled, and the input is modified to reduce any

difference or error toward zero. Many of the patterns of information flow in organizations arefound to have the nature of closed loops, which use feedback. The reason for such a condition is

apparent when one recognizes that any system, if it is to achieve a predetermined goal, must have

available to it at all times an indication of its degree of attainment. In general, every goal-seeking

system employs feedback.

Man and Machine Control

The elements of control are easy to identify in machine systems. For example, the

characteristic to be controlled might be some variable like speed or temperature, and the sensingdevice could be a speedometer or a thermometer. An expectation of precision exists because the

characteristic is quantifiable and the standard and the normal variation to be expected can be

described in exact terms. In automatic machine systems, inputs of information are used in a

process of continual adjustment to achieve output specifications. When even a small variationfrom the standard occurs, the correction process begins. The automatic system is highly

structured, designed to accept certain kinds of input and produce specific output, and

programmed to regulate the transformation of inputs within a narrow range of variation.

For an illustration of mechanical control, as the load on a steam engine increases and the enginestarts to slow down, the regulator reacts by opening a valve that releases additional inputs of

steam energy. This new input returns the engine to the desired number of revolutions per minute.

This type of mechanical control is crude in comparison to the more sophisticated electronic

control systems in everyday use. Consider the complex missile-guidance systems that measure

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the actual course according to predetermined mathematical calculations and make almost

instantaneous corrections to direct the missile to its target.

Machine systems can be complex because of the sophisticated technology, whereas control ofpeople is complex because the elements of control are difficult to determine. In human control

systems, the relationship between objectives and associated characteristics is often vague; themeasurement of the characteristic may be extremely subjective; the expected standard is difficultto define; and the amount of new inputs required is impossible to quantify. To illustrate, let us

refer once more to a formalized social system in which deviant behavior is controlled through a

process of observed violation of the existing law (sensing), court hearings and trials (comparison

with standard), incarceration when the accused is found guilty (correction), and release fromcustody after rehabilitation of the prisoner has occurred.

The speed limit established for freeway driving is one standard of performance that isquantifiable, but even in this instance, the degree of permissible variation and the amount of the

actual variation are often a subject of disagreement between the patrolman and the suspected

violator. The complexity of our society is reflected in many of our laws and regulations, whichestablish the general standards for economic, political, and social operations. A citizen may not

know or understand the law and consequently would not know whether or not he was guilty of a

violation.

Most organized systems are some combination of man and machine; some elements of control

may be performed by machine whereas others are accomplished by man. In addition, somestandards may be precisely structured whereas others may be little more than general guidelines

with wide variations expected in output. Man must act as the controller when measurement is

subjective and judgment is required. Machines such as computers are incapable of makingexceptions from the specified control criteria regardless of how much a particular case might

warrant special consideration. A pilot acts in conjunction with computers and automatic pilots tofly large jets. In the event of unexpected weather changes, or possible collision with anotherplane, he must intercede and assume direct control.

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