Principles & Practices of Management
SECTION A
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Q.1 ) ”Management is a combination of Arts, Science & Profession”
Explain fully?
Ans. 1) It is very difficult to understand “What is Management”. Many tried and
given different definitions of management. But if you want to understand,
understand its features. By which we know that, management is universal,
continuous, dynamic, creative etc. and can wonder, if there is proper
management.
To understand its scope and nature, we have to understand its features, which
can easily clarify the term management. These features are Arts, Science &
Profession, which combing makes MANAGEMENT.
Management as an ART:
Art requires skills whereas in management requires conceptual, technical, human
relations and decision making skills.
Art requires knowledge whereas in management requires learning and acquiring
knowledge such as Marketing, Finance, Technical and production etc.
Art is creative whereas in management as a discipline is the function of creativity.
In this creativity is facing the challenges of competition. Consider if we want to
introduce our new product in market, then we must make our self-ready for
competition, i.e. Competition in sale, production, advertising and price. So that to
survive in the market.
Art is personalized whereas in management different people do a particular task
in a different way. Every individual has its own management style. We can
categories them as Democratic, Autocratic, Paternalistic, Beurocratic etc.
Art is a performance whereas in management performance is seen by profit,
growth and development. These are the indicators, which decide the
management as good or bad.
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Management as Science:
Science is a body of organized knowledge whereas in management as Social
Science consists of history of management thought. Science is developed over a
period of time whereas management is also developed over a period of time. As
consider that in many companies, In 1950’s the productivity is 50% but in 90’s it
exceeds to 80% and in 2000 it exceeds to 95%. It is just due to management. In
which changes come in various disciplines like human relations, services,
finance, technical etc. during the whole interval.
Science establishes cause and effect relationship whereas in management if we
put more worker on work, than there will be more productivity. Here the cause is
workers and the effect is in the productivity.
Science has predictive power; in management also we can do predictions. Like if
the stock exchange rises then the rate of particular share may or may not rise.
Rules/Regulations are verified from time to time whereas in management new
rules are established and old rules are changed, so that to have full use of
resources in a management.
Management as a Profession:
Before relating management and profession, we must know what is
profession. As in profession we require definite period of learning, it needs
certificate of practice, centralized rule making authority and social
commitment/obligation/accountability.
These are in case of academic one that sometimes won’t applicable in case of
management like anyone can become manager without any specific qualification
or period of learning. It doesn’t need any certificate of practice. These are not in
forcible under any law. If we come to practical approach of profession, which is
very close to practice of management.
By these we can know the roles of profession manager as:





Knowledge base decision instead of any intuition or predictions.
Based on experience and expertise in require field.
Help in meeting competitiveness challenges.
Apply theories of management in solving organizational problems.
Separation of ownership from management.
At last by discussing the Arts, Science and Profession role in management.
It is combination of all the three and it should be a way of life.
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Q3.) What are the different types of motivators?
Explain Maslow’s theory of hierarchy of needs.
Why study of motivators is important to a manager?
Ans. 3) To understand the meaning of motivation, we first need to understand
motive. Motive can be defined as something as a need or desire that impels or
incites a person to a certain course of action or behavior. Motivation thus can be
can be considered, as the amount of effort an individual is willing to put into their
work. A lack of motivation in any member of a team can have a negative effect,
reducing the group’s effectiveness and possibly leading to the de-motivation of
other’s. Different people are motivated in different ways; the problem facing
someone in the role of leader is to create an environment in which each
individual fulfils their potentials.
Concept of motivation can be observed by following need-satisfaction chain:
Needs give rise to >
Satisfaction/Dissatisfaction.
Wants
>
Tensions
>
Drives
or
Action
>
There are different types of motivator’s:
Financial: In these type, the individual is motivated by money i.e. if he will work
or put more effort he will more perk, salary etc.
Non-Financial: In these types, the individual is encouraged, given freedom,
given recognition. By which it put more effort.
Positive: In these individual is rewarded, and incentives of individual are cared.
Negative: In this individual is compelled or forced, i.e. if you won’t put much
effort, you are only going to loss and feared to do work.
Internal: In these, the individual inner drive, urge makes the person to put full
effort.
Ethical: The individual honesty, hard work and integrity makes the individual to
put effort.
Unethical: In these dishonesty makes the individual to work, like corruption as a
source of motivation.
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Maslow’s hierarchy of needs:
Abrahm Maslow developed a theory of personality that influenced a number of
different fields, including education. This wide is due in part to the high level of
practically of Maslow’s theory. This theory accurately describes many realities of
personal experiences. Maslow has set up a hierarchy of five levels of basic
needs. Beyond these needs, higher levels of needs exist. These include needs
for under standing, esthetic appreciation and purely spiritual needs. In the level of
five basic need, the person does not feel the second need until the demands of
the first have been satisfied, nor third until the second has been satisfied, and so
on. Maslow’s basic needs are as follows:
The hierarchy theory is often represented as pyramid, with the larger, lower
levels representing the lower needs, and the upper point representing the need
for self-actualization.
Physiological needs: These are biological needs. They consists for oxygen,
food, water, shelter. They are the strongest needs because if a person deprived
of all needs.
Safety needs: When all physiological needs are satisfied and are no longer
controlling thoughts and behaviors, the needs of security can became active.
Social or need of love, Affection and Belongings: People seek to over come
feelings of loneliness and alienation. This involves both giving and receiving love,
affection and the sense of belonging.
Needs for esteem: Humans have a need for a stable, firmly based, high level of
self-respect from others. When both self-esteem and for the esteem a person
gets from others is get frustrated, the person feels inferior, weak, helpless and
worthless.
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Needs for self-actualization: Self-actualization as a person’s needed to be and
do that which person was “born to do”.
There are many hierarchies by the society, by which people would not move well
in direction of self-actualization. The study of motivators is very important to a
manager because he is responsible for completion of needs of individuals
working under him, so that each individual needs to think that they are working
with the best people to feel proud to be part of the team.
Manager knows that how to make, people will work harder and achieve
more. By knowing their needs and up to which level it to be filled and what
type of motivation (finance, freedom, positive etc) required at particular
time.
Q.4) Define the delegation of authority.
What are the problems in delegation?
Explain the principles of effective delegation.
Ans. 4) Dictionary meaning of Delegate is to give, offer, and allot a part of
authority to subordinate. Authority is right to act or decide. Even though you have
delegated a task to some one else, you are still responsible for making sure the
task is done on time and correctly.
The positive effects of delegation could be like:




Higher efficiency.
Increased motivation.
Develops the skills of your team.
Better distribution of work through the group.
The amount of authority you delegate is up to you, although it should be enough
to complete the task, otherwise the delegation would be of no use.
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There are various degrees of delegation like:

Low degree of delegation: In these superior states particular task to
subordinates and tell them to report back after investigation on it.

Moderate: In these subordinates has to report back with an action plan.

High degree: in these subordinate reports back after taking action with
results and reasons.
Functional Authority is the right, which is delegated to an individual or a
department to control a specified process, practices, policies or other matters
relating to activities undertaken by persons in other departments.
Functioning of a functional authority:





Clarifying the assignment:
o What to be delegated.
o Whom to be delegated.
Specify the subordinate’s range of decision.
Allow the subordinates to participate.
Inform others that a delegation has occurred.
Establish feedback control.
There are many barriers in delegation:
1. Like some manager believe that if they want to do think right, do their
selves.
2. Lack of confidence, trust on subordinates.
3. Low self-confidence and more over confidence amongst the manager’s
might became a barrier.
4. Fear among manager, that they will loose status.
5. Instructions from above authority not to delegate further.
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Principles of effective delegation:
1. Identify a suitable subordinate.
2. Explain the delegation (degree).
3. Keep lines of communication open, so that subordinate has full feedback
also.
4. Explain or train the task properly.
5. Must have monitoring process and control.
6. Don’t disappear after delegation.
7. Praise/Acknowledge a job well done.
8. In case of emergency, subordinate has to report you as for authentication,
discretionary matter.
9. Encourage and boost morale of subordinates.
10. Task after delegation so that to make it more effective.
11. Plan: goal, meeting, tasks.
12. Direct: your team keeps them on track.
13. Encourage: boost morale.
14. There are certain tasks you shouldn’t delegate. For example,
a) Hiring
b) Firing c) Pay issues d) Policy
By which these may effect you, if these will be a its wrong use.
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Q.5) What is controlling? What are the principles of effective control? What
steps an organization should take before things go out of control?
Ans. 5) Controlling is defined as in terms of management is to measure the
actual performance of employees, with the standard performance and to lead,
motivate and direct employees to reach the standards. To reach the pre
determined goals; there should be an effective controlling.
To have an effective controlling, organization must have these principles of
controlling:
1. It is the end function of the management process as it judges the
performance of different goals of the management.
2. It is continuous process as it monitors the employees continuously and
assures that not to deviate from the right track.
3. It is flexible and it is to be adjusted according to needs and situations.
4. It is present at all levels of organization, but it’s nature and degree
changes according to the level.
5. Changes can be anticipated from the information collected.
6. Control is related to future as it lives in present. It is present over which
control is to be exercised which will guard our future from loss, wastage
etc.
The organization must take following steps before things go out of control:
1. first of all standards are set, which are attainable, flexible, precise and
concerned with results.
2. Measure the actual performance precisely and accurately which will tell us
how much deviation is there as per standards.
3. Compare the actual performance with the standards. If the actual
performance doesn’t vary too much wit standards, then there is no need
for controlling.
4. Corrective action should take place. If there is deviation as control process
would be in complete if corrective action is not taken.
Control is very important aspect in management and can’t be ignored at
any level of organization. It helps management to achieve goals at correct
interval of time and without any wastage and losses of resources. Control
maintains the equilibrium between ends and means, output and efforts.
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Q.7) Define decision-making?
Prepare list of factors that effect decision-making process?
Ans. 7) Decision-making is a process of choosing from a choice of available
alternatives it is an integral part of planning.
Process of Decision Making involves following steps:
1. Identify the problem, understand the problem by identifying it, some
feeling of action to take against it.
2. Collect information from where ever you can get, about the problem.
3. Develop alternatives from Information.
4. Compare different alternatives and evaluate them and give them
ratings.
5. Choose the best alternative.
6. Take action or implement on alternative and communicate the decision.
7. See & how is your decision work. (Follow up and review)
There are many factor which can effect decision making are listed below:
 Information, which we should be authentic, reliable, adequate and must
be available at time. So enough time must be there to analyze the problem.
 Time factor: decision must be taken at right time, not before and not after.
It may lead to severe causes like Dish washers in India are introduced ahead
of time.
 External environment factor: In these decision-making is affected by
external factors like Political, Economic, Social, Cultural, technical, Ethical,
logical Etc.
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 Internal factors: Rules, Regulation, and Procedures within the
organization or administrative restriction like you are bound in your rules while
decision-making.
 Participation, Acceptance and Implementation: If any decision is to be
taken then how it can be implemented and how much it will be accepted can
also influence in decision making.
 Lack of power: if you know that at certain time decision should be taken
and action has to be taken. But lack of power restricts you.
 Visibility: Problems, which are visible, catch a decision maker’s decision.
As these are the first to act upon. Like officers on a visit, make others
agitating. Then this agitation becomes the main problem, as it is visible.
 Way of thinking: decision maker should have a correct or proper way of
thinking, good attitude and style, personality etc. Which can help the decision
making effectively.
 Experience can also help in decision-making, as the decision maker with
good experience knows more about the pass and fail of the decision.
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Principles & Practices of Management
SECTION B
Q.9) Write a detailed note on retailing sector in India-growth prospects and
various challenges?
Ans. 9) There was no organized sector in India, until liberalization in retailing
sector. It was completely dominated by unorganized sector, but is now coming
alive and boom is just around the corner. Retailing is the second largest
employer after agriculture and that $150 billion worth of goals retailed every year.
These are certain factor’s which will help the further development of
retailing sector are:
 Rising income and rise in literacy rate by which the person understands
the things better.
 Liberalization makes the global companies to try their coin in India.
 Reduction in custom duties helps the manufacture’s to spread their
product globally.
 Awareness created by satellite TV about the global people products.
 Shifting consumer preferences to foreign brands like McDonald, Sony etc.
as consumer knows its better in technology and in quality.
 An Indian customer is one of the most diverse and demanding. He would
like value for his money. Retailers just can’t put their std formats of products
onto the Indian customer. There chances that they won’t accept it, so they
must bring according to Indian needs.
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Retailing sector is facing many challenges as:
 In India, price is the important factor in customer’s decision making. But
there is a segment of customer who look beyond price as if he gets good
quality at high price, after sales, reliability, and warranty. He will go for it.
 There should be training at all levels like sales, technical, development. It
should be continuous, so as to give best to customers.
 We all know that, retailing sector mainly comes in the same platform of
customer at showrooms. Here the customer expectations are to be fulfilled.
So proper management required at this level.
 There should be proper advertisement, so that customer knows what
company is giving to him.
 With technologies changing everyday, the company should upgrade itself
according to budget and customer needs.
 Give value to the customers as this entails anticipating customer
expectations and fulfilling them effectively.
 Give shoppers the complete one stop shopping experience, by making the
market concentrated with the top retailers. Like Big Shoppers in Jaipur.
Hence we can definitely say that the retail revolution is on its way as
people are having varieties and awareness.
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Q.10) ”Management consultants are creation of liberalization in India” offer
your views on this statement and comment on the role of consultants and
their limitations?
ANS. 10) The liberalization process that began more then ten years
ago created a new business class that has had a significant impact
on Indian business. This brings the consultancy market a new
scope. As you all know, the economic reforms were initiated in 1991
in India in a demonstrative way after the assassination of Rajiv
Gandhi. A period of 12 years have elapsed since then and today the
same social forces that had opted for the liberalization and
privatization policies in 1991 are speaking of a "second wave of
reforms".
Never before and in high density companies decide to surrender
themselves in the hands of management consultants. At the time of
liberalization, the companies start looking at e ach other steps and
many companies start merging and created a state of flux and are
reflected to other companies to merge and to start accepting
management consultants. Hence we can say, ”Management
consultants are creation of liberalization in India”.
There are many resources in company, which are being unutilized or
wrongly utilized like:
Some knowledge resources are under -utilized or wasted completely.
Some knowledge resources are over -stretched.
These could lead to many dire consequences like the organization is
exposed to many kinds of risk and the growth and development of
the organization could get restricted.
Role of a consultant:
A consultant can give advice how to use the resources and where
are the risk in organization, and how provoke fr om these. Indian
companies were having lack of knowledge about globalization, so
they need help. An Indian company doesn’t know how to compete
according to new emerging companies strategies. Liberalization
brings the new concepts (Like ISO 9000,BVQI, TQM.e tc) of quality
control, which Indian companies are unaware. So Indian companies
need Management consultants to rule in Indian markets.
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Here comes the role of Management consultants, what they can actually do for
Indian companies and why they only need.
The following points can describe the answer for this:
 They are experienced and have done these things previously.
 The can use the resources (finance, raw material, knowledge, technical,
humans etc) in correct way and at correct place.
 They have the knowledge of performance level according to the other
companies in their field.
 These can fill gap in your organization, which can’t be filled within the
organization.
However there are certain limitations to consultant’s introduction, like:
 There are certain task, in which company already good in, there may be
chances that the consultant will make changes and can hamper the
performance.
 Managerial consultants wont have to act like a team leader, by interfering
in previous team. By which team might loose confidence.
 Consultants can give advice, which can be helpful for short term. But can
effect in long term.
 Employees might get the feeling of retrenchment.
 Never give up control and look up consultants as GOD. Some times they
can just take use of the profit.
 Consultant business is to find trouble, wont hire a consultant if company is
working at good standards.
Hence consultant can be helpful only when you are sure that he can
increase the efficiency of the organization, increase in profitability or as the
case may be.
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Q.11) “Event management is the biggest challenges for professional
manager” discuss fully?
Ans. 11) In ancient times people take parts in mass activities by these their will
be a encouragement in brotherhood, for recreation, or just for skittles. But in
modern times a new sector is emerged to maintain the feeling of brotherhood
recreation, which is known as “Event management”.
Any mass gathering under the sun can be considered as an event, and an
company works on an event from its very (base) conceptualization and works on
it until it executes and come to an end. To make an event memorable, one has to
work on the details. But today’s life is too fast, so one can’t pay attention to
minute details. To pay attention on minute details, professionally event
management comes in picture.
The leading companies in Event management are wiz craft, DNA networks, Cine
yug, pinnacle, Midas etc. which are expert in their fields like some in advertising,
sports, corporate events etc. It also requires planning, organization, evaluation
and at last execution. People from different backgrounds can work in an event
management company. Events only reflect the companies’ infrastructure,
performance. It also helps in rating of companies. Event management has
become a very big challenge for professional manager as they are at the back to
organize these events.
The problems and challenges faced by the professional manager in event
management are:
 To do an event, in a limited budget.
 To take permissions from various government services, so that there is no
disturbances at the time of execution of event. (Police, electricity board, jal
board etc)
 Team should have all the professional needs (technical, financial,
development etc).
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 To pay taxes to the government, without the sold out of tickets. The
government should not levy tax on the exact number of tickets sold.
 The rates of levy taxes are different from place to place.
 They have to give best of the best, so that they will keep on getting
contracts from clients.
 There should be proper planning, organizing and execution, without any
conflicts between team.
 To be ahead in competition, professional manager faces many other
challenges according to their fields.
A professional manager is, who makes an event memorable and make’s the
standard wrt other events. By utilizing proper knowledge, skills from
professional and most important time.
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Q.13) What are the problems faced by the Indian Business
families after 1991? (Beginning of Liberalization in India).
What is their strategic response for the same?
Ans. 13) The economic reforms were initiated in 1 991 in India in a
demonstrative way after the assassination of Rajiv Gandhi. A period
of 10 years elapsed since then & today the same social sources that
had opted for the liberalization and privatization policies in 1991 are
speaking of a “second w ave of reforms”.
The liberalization process that began more then ten years ago
created a new business class that has had a significant impact on
Indian business families.
The post 1991 companies were concentrated in select industries,
such as computer, softwa re and hardware, electricity generation,
telecommunication, financial services and food products etc.
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The common pre 1991 companies are. Reliance, Godrej, Kirloskar, Birla, Bajaj
that are run by Indian business families.
Due to liberalization these companies face the following common
problems:
 Competition with new coming industries. (i.e. Liberalization,
Privatization, Globalization(LPG)opened the market for foreign
MNC’s ,so new strategies required to compete with them)
 Continuous falling of share values.
 Fickle customer as the cost of products is high and quality of
product is also not consistent.
 Labor productivity is also not good
themselves with the coming technology.
as
not
updated
 Splits in a famil y results in a division of the com pany.
 The rules have changed after the liberalization and
successor needs to have the right qualification, otherwise
corporate needs outsource person to look after.
 Lack of professional management as owners are running the
companies up till now. Now the clashes between Professionals
and owners starts, as their view, styles and approaches towards
running the company is different.
The strategies adopted by the Indian business families for survival
and grow th:
 Raising their capital to a comfort zone, so t hat the fear of take
of cant possible.
 Consolidation of business by selling their non viable
(profitless) and non -core business and concentrating on core
business.
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 Business families realize that business should run by
professionals and expert’s .the concept of capital stake and
managerial stake should be clearly defined.
 Manager realized the importance of R & D by which they
improve the quality, reduce costs and survive in the liberalized
world.
 They updated themselves with the latest technolog y, so to
compete with the upcoming companies.
 Adopt themselves with the new realities new product launch,
customer relation ship, and reliability after sales service, so that
customers wont go to other companies.
 The successors of the companies get train ed abroad and
educated. So that they can return and take over. Up till then
company run-ed by professional manager.
The post 1991 companies unable to grow to a significant size in spite of
several tax breaks they received and at last some business families like
Reliance, Godrej, Kirloskar, Birla, Bajaj etc emerged victorious and are here
to stay.
Q.14) Define emotional intelligence?
Explain its importance for a manager?
Ans. 14) Emotional intelligence can be defined as the ability to sense,
understand and effectively apply the power and acumen of emotions as a source
of human energy, information, trust, creativity and influence.
Alfred bennit, the father of intelligence quotient (IQ), created a benott scale to
measure the IQ. But it actually not enough for success, emotional intelligence
plays a great role, as it is the out come of the combination inborn temperaments,
childhood experiences, and latter learning. IQ and technical skills are viewed at
entry levels for executive positions, but then also they can’t come up with a great
leader without EQ. Emotional intelligence as the sine Qua non of leader ship.
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It can help managers, to become a great leader, by these managers will get :
Self-aware ness, which will enable the manager to make decision with
confidence.
They are not distressed and changed their moods according to the situation and
act rationally (Emotional Management).
As they are self motivated they perform threshold of their capabilities.
Empathy involves reading unst ated emotional avis; as can
understand the feeling of other without being told and interact
accordingly with them.
Empathy, as a component of leadership is particularly important
for at least three reasons:
 The increasing use of teams.
 The rapid pace of globalization.
 The grow ing need to retain talent.
Social effectiveness: by these you settle the disputes easily and come out from
negotiation with a win-1win situation.
If there is low EQ then there can be losses of work as there will be high missed
dead lines, costly mistakes increased employee turn over and decreases
productivity.
EQ commonly increases with age. If manager is having high EQ.He will be more
attuned to the feelings those whom he works.Differentiate between positive and
negative emotions, so to react accordingly.Rate work situations that have the
potential to explore if you let your EQ guard down.
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The benefits of high EQ in managers are :
 Be more attuned to the feelings of those you work with.
 Rate work situations tha t have the potential to explore if the
manager lets his EQ guard down.
 Differentiate between positive and negative emotions.
 Control over emotions helps smoother conflict situations.
After knowing the importance of EQ, the organizations started doing
research and offered training programs for developing EQ for profitability
and productivity. So IQ is not enough for manager as it can only give a
opportunity of hiring and there may be a chances of firing (loosing) the job
just for not to have the EQ.
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