Question Bank With Answer

Subject Name:MG6851/Principles Of Management

Year/Sem: III/VI Revised Syllabus (R2013)

Two Marks With Answer

UNIT-I

OVERVIEW OF MANAGEMENT

1.Define management.

According to Knootz and Weihrich “Management is the process of designing and maintaining of an organization in which individuals working together in groups efficientlyaccomplish selected aims”.

2.Define Administration.

According to E.F.L breech “Administration is that part of management which is concerned with the installation and carrying out of the procedures by which the programme islaid down and the progress of activities is resulted and checked against plans. This Breech concern administration as apart of management”.

3.Distinguish between Management and Administration.

SI.NO Administration Management1. It is higher level function. It is lower level function. 2. It refers to the owners of the

organization.It refers to the employees.

3. Administration is concerned with decision marking.

Management is concerned with execution of decision.

4. It acts through the management. It acts through the organization.

5. Administration lays down broad policies and principles for guidance.

Management executes these policies in to practice.

4.What is system approach to management?

The system approach views the organization as a unified, purposeful system composed of interrelated parts. This way the manager can look at the organization as a whole or a part of the larger outside environment. Activity of any part affects all other parts of the organization. A system can be biological, physical or social.

5.What is scientific Management?

Fredrick Winslow Taylor is called “Father of scientific management”. Taylor attempted a more scientific approach to management as well as the problems and the approach was based upon four basic principles.

Observation and measurement should be used in the organizations. The employees should be scientifically selected and trained. Due to scientific selection and training, an employee has the opportunity of earning a

high rate of pay. A mental revolution in the form of constant cooperation between the employer and

employees should be given the benefits of scientific management.

6. What is Time study?

The movements which take a minimum time are the best one.

7. Define “Joint sector unit”.

Joint Stock Company/Unit is association of many persons who contribute money worth to common stock and explain source trade and also share the profit and losses.

8. List the functions of management.

1. Planning.2. Organizing.3. Staffing.4. Coordinating.5. Controlling.

9. List the characteristics of Modern Management Thought.

Management is a continuous process. Managers use the resources of the organization both physical as well as human to

achieve the goals. Management aim acts in achieving the organisation goals by ensuring the

effective use of resources.

10. How does effectiveness differ from efficiency?

Efficiency:

Efficiency means doing things right. It defines the ability to minimize the use of resources in achieving organizational objectives.

Effectiveness:

Effectiveness means “doing the right thing”. The ability is to determine appropriate objectives.

11. What is a social responsibility?

Society is the part of management to interact actions with or to protect social interest a society.

12. What is Globalization?

All these policies measured clearly reflect the changing attitude of Government towards business and the commitment of Government to Integrate Indian Economy with the world’s economy is called Globalization.

13. What is Multinational Corporation (MNC)?

“An enterprise which own or control production or service facilities outside the country in which they are based”.

14. Mention the role of managers.

1. Figurehead role 2. Leader 3. Liaison4. Monitor5. Disseminator6. Spokes person7. Entrepreneur8. Disturbance handler9. Resource allocator10. Negotiator

15. Name the different levels of management.

The three levels of management commonly found in any organisation are top, middle and lower management.

16. Who is known as father of modern operation management theory?

Henry Fayol is called “Father of modern operation theory”.

16 marks

1. Explain the evolution of management thought by different express in management? (May/June 2014)2. Discuss the management functions as related to trends and challenges in management of global scenario. (May/June 2014)3. Explain the principles of administrative theory of management with an suitable illustration (Nov/Dec 2013)4. Explain the salient features of neo classical theory of management with the human relations approach and behavioral science approach. (Nov/Dec 2013)5. Describe about the evaluation of management thought (April/May 2011)6. Explain about the major tendencies favoring the development of a unified global theory of management (April/May 2011)7. Discuss henry fayol’s principles of management (May/June 2013)8. Discuss the trends and challenges of management in global scenario (May/June 2013)9. a) Discuss the scope and nature of management (8) (Nov/Dec 2012) b) What are the environmental factors that affect business (8) (Nov/Dec 2012)10) Enumerate the trends and challenges of management in the globalized era. (Nov/Dec 2012)

UNIT- II

PLANNING

1.Define planning.

Planning is the process of selecting the objectives and determining the course of action required to achieve these objectives.

2. What are the objectives of planning?

Planning is a primary function of an organization.

It helps in achieving objectives.

It is done to cope with uncertainty and change.

It helps in facilitating control.

It helps in coordination.

Planning increases organizational effectiveness.

Planning guides in decision-making.

3. Define “Mission”.

Mission may be defined as “a statement which defines the role that an organization plays in the society”.

4. Define an objective.

The terms “Objectives” or “goals” are often used interchangeably. Objectives are the aims, purposes or goals that an organization wants to achieve over varying periods of time.

5. Brief on Operational Planning.

Planning is executed effectively called Operational Planning.

6. What are the advantages of planning?

It helps in achieving objectives Better utilization of resources Economy in operation It reduces uncertainity and risk It improves competitive strength

7. What are the different types of planning? Or Classify various plans.

Plans

Standing plans Single use plan

Mission or Purpose Programmes

Objectives Budgets

Strategies Schedules

Policies Methods

Procedures Projects

Rules

8. List the different types of planning.

Four major types of plans can help managers achieve their organization’s gaols:

Operational plan Tactical plan Strategic plan Contingency plan

9. What is the importance of setting organizational objectives in a modern complex organization?

Objectives features in all branches of management. They are one of the most basic and fundamentally important tools of management. For setting the initial objectives, all organizations have a formal, explicitly recoganised, legally specified organization. In general, the overall objective of the organization is set by the top management .However, in some organizations, the objectives are set by the vote of shareholders; in others, by a vote of members, by a small number of trustees or by a few individuals who will win and run the organization. In large organizations, objectives are sets by the board of directors, governing board, executive committee.

10. Define MBO in planning.

MBO is a process whereby superior and subordinate managers of an enterprise jointly identify its common goals, define each individual’s major areas of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and the contribution of each of its members is assessed .

11. Define MBO

Koontz and Weihrich have defined MBO as follows:

“MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient of organizational and individual objectives”.

12. Mention any two features of decision making.

a. Decision-making is as election process. The best alternative is selected among many available alternatives.

b. Decision-making is a goal-oriented process. Decisions are made to achieve some goal or objective.

c. Decision-making is the end process. It is preceded by a detailed discussion and selection of alternatives.

d. Decision-making is a human and rational process involving the application of intellectual abilities It involves deep thinking and forecasting things.

13. List the forecasting technique used for decision-making.

The forecasting may be divided into two board categories:

1. Qualitative methodJury of executive opinionDelphi methodConsumer market surveySales force opinion compositeScenario building Judgment decomposition

2. Quantity method2.1 Time series method/analysis

(a) Simple moving average(b) Weighted moving average(c) Exponential smoothing

2.2 Econometric forecasting(a)Correlation analysis(b)Regression analysis

2.3 Technological forecasting

14. List any four quantitative forecasting techniques.

(i) Jury of executive opinion.

(ii) Delphi method.

(iii) Simple moving average.

(iv) Weighted moving average.

15. Explain the Delphi Technique.

The Delphi method makes use of a panel of experts, selected based on the areas of expertise required. The Delphi method is an exercise in group communication among a panel of geographically dispersed experts. The technique allows experts to deal systematically with a complex problem or task. It comprises a series of questionnaries sent either by mail or via computerized systems, to a pre-selected group of experts. These questionnaries are designed to

explicit and develop individual responses to the problems posed and to enable the experts to refine their views as the group’s work progresses in accordance with the assigned task.

16. Define strategy.

According to Alfred D. Chandler, “Strategy is the determination of basic long-term objectives and adoption of course of action and allocation of resources to achieve these goals”.

17. What do you mean by a strategy?

A strategy may also be defined as a special type of plan prepared for meeting the challenge posted by the activities of competitors and other environmental forces.

18. Define the term strategy planning.

A strategy 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.

19. Give the three generic strategies by porter.

o Strategy is a contingent plan as it is., designed to meet the demands of a particular situation.

o Strategy relates an organization to its environment, particularly the external environment. Strategic decision, such as objective setting, actions and resources required to achieve objectives are primarily concerned with external forces.

o Strategy is the right combination of both internal and external factors. By considering external factors, it should also consider internal factors, such as strength and weakness to take various course of action.

o Strategy is a contingent plan, as it is designed to meet the demands of a particular situation.

o Strategy may involve contradictory action. For example, a manager may take an action today and may revise his action tomorrow due to change in the situation.

20. Define Planning premises.

Planning premises are the assumptions that should be made about the various elements of the environment. It provides the basic framework in which plans operate. These premises may be internal or external. Internal premises include organizational policies, resources of various type, sales forecasts and the ability of the organization to withstand the environment pressure. External premises include the total factors in task environment, such as political, social, technological, competitors, plans and actions, and government policies etc.

21. What is expected value of Perfect Information?

Expected value of perfect information is calculated by subtracting the expected value with existing information from expected value with perfect information.

22. Explain the term decision and decision-making.

A decision may be a direction to other to do or not to do. Decision-making is defined as the process of choosing a course of action from among alternatives to achieve a desired goal. It is one of the functions of management and also a core process of planning. The management executive takes a number of decisions every day. Thus, a decision may be rational or irrational. There re number of alternatives available to the management. The best one is selected among the available alternatives.

23. How would you evaluate the importance of a decision?

o Decision-making is a selection process. The best alternative is selected among many available alternatives.

o Decision-making is a goal-oriented process. Decisions are made to achieve some goal or objective.

o Decision-making is the end process. It is preceded by a detailed discussion and selection of alternatives.

o Decision-making is a human and rational process involving the application of intellectualabilities.It involving deep thinking and foreseeing things.

o Decision-making is a dynamic process. An individual takes a number of decisions each day.

24. Mention the three approaches generally adopted by managers in selecting an alternative. Or what are the techniques useful while evaluating alternatives?

a. Quantitative and qualitative analysisb. Marginal analysisc. Cost effectiveness analysis

25. Mention the characteristics of ‘Programmed’ and ‘Non-programmed’ decisions.

Programmed decisions are otherwise called routine decisions or structured decisions. The reason is that these types of decisions are taken frequently and they are repetitive in nature. Such decisions are generally taken by the middle or lower level managers, and have a short tem impact. This decision is taken within the preview of the policy of the organization.

Non-programmed structures are otherwise called strategic decisions or basic decisions or policy decisions or unstructured decisions. This decision is taken by the top management people whenever the need arises. These decisions deal with unique or unusual or non-routine problems. Such problems cannot be tackled in a predetermined manner. There are no established methods

or readymade answers for such problems. A careful analysis is made by the management before taking a decision.

16 MARKS

1. Explain the importance of planning and the steps involved in planning process (May/June 2014)2. Explain the decision making process alsp discuss how decision making under different conditions are made (May/June 2014)3. Explain the steps in the planning process (Nov/Dec 2013)4. Mention any four advantages and disadvantages along with planning process (April/May 2011)5. Definestrategic planning and what are the steps involved in strategic planning (May/June 2013)6. Define decision making process and explain the process followed while taking the decision in normal situation (May/June 2013)7. Write short notes on the following (Nov/Dec 2012) i) Management by objective (8) ii) Types of strategies (8)

UNIT –III

ORGANIZING

1. What do you understand by effective organizing?

Effective organizing focuses on finding mistakes in present organizing and avoiding such mistakes by a proper planning. Effective organizing avoids organizational inflexibility and makes the staff work effectively by avoiding conflicts by clarification.

2. Enumerate the advantages of functional organization grouping.

o Since a foreman is responsible for one function, he can perform his duties in a better manner.

o This organization structure makes use of specialists to give expert advice to workers.

o It relives line executives of routine, specialized decisions which are sometimes boresome.

o Expert guideline reduces the number of accidents and wastages materials, man and machine hours.

o It relives the pressure needed to search a large number of all-round executives.

3.What are the limitations of Matrix Organization Structure?

1) Since use of the matrix means the use of multiple commands, managers often end up with conflicts.

2) The organizational relationship becomes very complex and there is a great confusion among personnel.

3) A matrix organization is created by deputing the staff temporarily from different functional departments. The project managers do not have any line authority over such persons. It may result in lack of commitment to project objectives. It is also very difficult to coordinate such peoples.

4) Matrix structure may be expensive. The dual chain of command may cause management costs to double.

4. Define the pillers of classical theories?

The chain of superiors ranging from top management to bottom management is called scalar chain.

5. Why informal organization is needed.

i) Since informal organization gives satisfaction to the workers, it motivates workers and also maintains the stability of the work.

ii) It fills up the gaps and deficiency of the formal organization.

iii) It fills up the gaps among the abilities of the managers.

iv) The presence of informal organization encourages the executives to plan the work correctly and act accordingly.

v) It is one of the useful channels of communication.

6. Site an example for formal and informal organization.

Formal organization: Government officers, Multinational companies, such as Nokia, Siemens, Hewlett-Packard, Cannon, Xerox.

Informal organization: Service sectors, workshops and other small orgamizations.

7. what is span of control?

Span of control means the number of people managed effectively by a single superior in an organization. The term “Span of control” is also known as “Span of management”, “Span of authority” and “Span of responsibility”. But span of management is a better term because control and supervision are elements of management.

8. what are the limitations of Line and Staff authority?

1. Lack of staff responsibility

2. Danger of undermining line authority

3. Dilution of authority

4. Lack of proper use of staff

5. Resistance to new ideas

9. Distinguish between formal and informal organization.

Sl. No Point of View Formal organization Informal organization

1. Origin It is created deliberately and consciously by the frames of the

organization.

It is created spontaneously and naturally.

2. Purpose It is created for achieving legitimate objectives of the organization.

It is created by the members of the organization for social

and psychological satisfaction.

3. Nature Planned and official Unplanned and unofficial.

4. Size It may quite large. It may be small in size.

10. What are the advantages of decentralization?

1. It reduce burden of the management so that it can focus more.

2. Attention on strategic management.

3. It encourages the decision making and assumption of authority and responsibility.

4. It facilities the growth the diversification in the organization.

5. It enabled the department staff members to complete work early.

11. What is decentralization?

If the power is fully distributed to the subordinates of the organization, it is called decentralization.

12. What is meant by Delegation of Authority?

Delegation of authority is a process which enables a person to assign works to others and delegate them with adequate authority to do it.

13. What do you understand by ‘over delegation’ and ‘under delegation’?

Over delegation:Some managers burden their subordinates due to their insecure ability to perform a task and poor time management for the task.

Under delegation: It occurs frequently with false assumptions by managers due to lack of ability on their part to complete the job correctly and due to lack of trust in subordinates.

14. What is the purpose of HRM?

1. Recruitment.

2. Selection.

3. Training.

4. Appraisal process.

15. Define organizing.

Organizing is the process of identifying and grouping of activities required to attain the objectives, delegating authority, creating the responsibility and establishing relationships for the people to work effectively.

16. Mention any two merits of performance appraisal.

a) Increased motivation and job satisfaction

b) Clear understanding of what is expected and what needs to be done to meet expectations.

c) Opportunity to discuss aspirations and any guidance support or training needed to fulfill these aspirations.

d) Improved working relationships with the superior

e) Opportunity to overcome the weakness by way of counseling and guidance from the superior

f) Increased sense of personal value as he too is involved in the appraisal process

17. What is division of labour?

The total work of an organization is divided into functions and sub-functions to get the benefits of specialization.

18. Define the term functional authority.

According to Koontz and O’Donnell, “Functional authority is the right which an individual or department has delegated to it over specialized processes, practices, policies or other matters relating to activities undertaken by personnel in departments other than its own”.

19. What is meant by delegation?

Delegation of authority is a process which enables a person to assign works to others and delegate them with adequate authorities to do it. Simply, the delegation mens assigning work to others and giving them authority to do it

20. What is functional departmentation?

Under functional departmentation, the activities are grouped on the basis of functions which are to be performed. Each department head is responsible for the respective departments. For example, all problems in the marking of the product or service are the responsibility of marketing manager, who has under him, specialists in this area. Since the people have similar backgrounds and similar interests, it gives rise to specialization which makes man power utilization more efficient.

16 MARKS

1. Elucidate the steps in selection process (Nov/Dec 2012)2. Explain any four methods of performance appraisal (Nov/Dec 2012)3. What is meant by depart mentation? Explain the needs and importance of departmentations(May/June 2013)4. Define span of management. Explain the factors which influence the effective span of management.(May/June 2013)5. Explain the difference between line and staff organization with anexamples. Discuss it’s merits and demerits(May/June 2014)6. Explain the process involved in selecting and recruiting a graduate trainee in organization(May/June 2014)7. Explain the factors which influence the span of control(Nov/Dec 2013)8. Explain line and functional organizational structures with their advantages and limitations(Nov/Dec 2013)9. Mention the factors which are responsible for the emergence of informal organization(April/May 2011)10. What are the steps involved in the process of delegation(April/May 2011)

UNIT –IV

DIRECTING

1. Distinguish between creativity and innovation.

The term creativity refers to the ability and power to develop ideas on the other hand, innovation means the use of these ideas.

2. What is meant Brain Storming?

Brainstorming is an excellent way of developing many creative solutions to a problem. It works by focusing on a problem, and then coming up with very many radical solutions to it.The essence of brainstorming is a creative conference, ideally of 8 to 12 people meeting for less than an hour to develop a long list of 50 or more ideas. Suggestions are listed without criticism on a blackboard or newsprint as they are offered; one visible idea leads to others. At the end of this session, participants are asked how the ideas could be combined or improved.

3. List out few leadership traits.

o The Michigan Studieso The Ohio state university studieso The managerial grid

4. What are the four basic ingredients of leadership skill? Or Mention any two leadership qualities.

1) Physical qualities: Sound health, vitality, appearance, physical and nervous energy, forcefulness, physique, enthusiasm.

2) Intellectual qualities: High intelligence, sound judgment ability to teach, scientific approach, decisiveness, self understanding.

3) Morale qualities: Integrity, moral courage, fair play, will power, sense of purpose, objectivity.

4) Social qualities: Ability to inspire, tact, percussiveness, self-confidence, empathy, initiative, knowledge of human nature human relations attitude.

5. List out four types of Leadership Styles.

i) Autocratic or Dictatorial leadership

ii) Participative or Democratic leadership

iii) Laissez-faire or Free-rein leadership

6. Define motivation.

According to Koontz and O’Donnell, “Motivation is a general term applying to the entire class of drives, desires, needs wishes and similar forces that induce an individual or a group of people to work”.

Scott defines, “Motivation means a process of stimulating people in action to accomplish desired goals”.

7. What is power motive?

Intrinsic Motivation is called as power motive. Intrinsic motivation is available at the time of performance of work. These motivations provide a satisfaction during the performance of the work itself. Some of the intrinsic motivations are praise, recognition, responsibility, esteem, power, status, participation.

8. What are the different motivational theories?

McGregor’s Theory X and Y

9. Distinguish motivators and hygiene factors.

Hygiene factors:

According to Herzberg, maintenance or Hygiene factors are necessary to maintain a reasonable level of satisfaction among employees. These factors do not provide satisfaction to the employees but their absence will dissatisfy them. Therefore, these factors are called dissatisfiers. Herzberg identified some maintenance or Hygiene factors as (i) Company policy and administration, (ii) Technical supervision, (iii) Interpersonal relations with subordinates, (iv) Salary, (v) Job security (vi) Personal life, (vii) Working conditions, (viii) status, (ix) Inter personal relations with superiors, and (x) Interpersonal relations with peers.

Motivations:

Motivation factors create satisfaction to the workers at the time of presence but their absence does not cause dissatisfaction. Herzberg identified some motivational factors as (i) Achievement, (ii) Recognition, (iii) Advertisement, (iv) Opportunity for growth, (v) Responsibility, (vi) Work itself. Since these factors increase level of satisfaction in the employees, these can be used in motivating them for higher output.

10. Give the meaning of social needs.

Social needs are for love, friendship, exchange of feelings and grievances, recognition, conversation, belongingness, companionship etc. Social needs tend to be stronger for some people than for others and stronger in certain situations.

11. List the Hierarchy of needs.

o Physiological needso Safety needso Social needs

12. Define effective communication.

If the message sent by the sender to the receiver in understood by the receiver in the same sense it is called effective communication.

13. Name the various types of communication.

o Downward communicationo Upward communicationo Horizontal or Lateral communication

14. Define Noise in communication.

Generally, communication is affected by noise at any stage. It may be in the sender, the communication or the receiver stage. If anyone is affected, the proper communication will not reach the receiver. To ensure effective communication, we have to provide noiseless environment.

In addition to this, the effectiveness of communication must be checked by the sender by feedback. It is done for checking the information whether it is correctly reached or not.

15. Why is management by wandering around considered effective communication?

A good management always wants to minimize the conflict with effective communication. For example, negative communication, blaming communication, superior communication, dishonest communication and selective communication can be easily avoided by wandering around considered effective communication.

16 MARKS

1. Explainany two theories of motivation in detail (Nov/Dec 2012)2. What are the essential qualities of a good leader (Nov/Dec 2012)3. Definecommunication. What are the barriers to effective communication (Nov/Dec 2012)4. Discuss the Maslow’s need hierarchy theory, compare and discuss the maslows and herberg’s theory of motivation (May/June 2013)5. What is organizational culture? Explain the types of organizational cultures (May/June 2013)

6. Explain the different motivation theories and also discuss how it is useful in leadership of an organization. (May/June 2014)7. What are the barriers of effective communication? Explain the different types of communications. (May/June 2014)8. What are the basic leadership styles? Explain them critically (April/May 2011)9. Discuss on the components of organization culture (April/May 2011)10. Explain the process of communication and explain the barriers of effective communication (Nov/Dec 2013)11. Explain porter and lawler theory of motivation and adam’s equity theory of motivation. (Nov/Dec 2013)

UNIT- V

CONTROLLING

1. What is critical point control?

The points selected for control process is called critical points. The principal of critical point control is one of the more important control principles states. The effective control requires an attention to those factors critical to evaluate the performance against plans.

2. what is control?

Control is a process that guides activity towards some predetermined goals.

3. List of four types of control.

o Feedback controlo Concurrent controlo Feed forward controloo Continuous control

4. Define: Budget.

According to J. Fred Meston “A budget is the expression of a firm’s plan in financial form for a period of time into the future”.

5. What is budgetary control?

According to J. Batty , “A system which uses budgets as a means of panning and controlling all aspects of producing and / or selling commodities and services”.

6. What are the limitations of budgeting?

a. Inaccuracy b. Expenditurec. Distortion of goals

7. What are the various types of functional budgets?

a. Sales Budgetb. Production Budgetc. Cash Budgetd. Capital Budget e. Master Budget

8. What do you understand by ‘flexi-budgets’?

A flexible budgets is a budget designed to change in the level of activity

9. What is zero base budgeting?

Initially, the budget is designed from Zero-base. The main element is ZBB is future objective orientation.

10. Mention the tools and techniques available for making operations more productive.

o Linear programmingo Assignment problemo Transportation modelo Game theoryo PERT/CPM methodo Decision tree approach

11. What is JIT?

In Just in Time Inventory system, the suppliers deliver the materials to the production spot just in time to be assembled. This method reduces the cost of inventory

12. What is value engineering?

It is a special type of cost reduction and product improved technique.

13. What are the uses of computers in handling the information?

Computers are used for the following purpose in handling the information

a) Sales Forecast and Control

b) The balance sheet was considered to be a more importance document than profit and loss account.

14. What is preventive control?

An effective manager applies the skills in managerial philosophy to eliminate an undesirable activity which are the reasons for poor management.

15. Define MIS.

“A system of obtaining abstracting, storing and analyzing data to productions information for the use in planning, controlling and decision making by managers at the time. They can most effectively be used it”.

16MARKS

1. Explain the concept and process of controlling (Nov/Dec 2012)2. Write a note on the different type of control (Nov/Dec 2012)3. Discuss the various types of budgets in detail (Nov/Dec 2012)4. Explain the steps involved in the process of control(May/June 2013)5. Explain the steps involved in the implementation of budgetary control (May/June 2013)6. What is budgetary control? Explain in detail the different techniques to control budget (May/June 2014)7. Explain the following (May/June 2014) i) Purchase control ii) Maintenance control iii) Quality control8. Explain any four budgetary control techniques with suitable examples (April/May 2011)9. Explain the steps involved in the quality control process with advantages and disadvantages (April/May 2011)