1. Discuss the main types of organizations.
1. Line Organization:
Line organization is the simplest and the oldest type of organization. It is also known as scalar
organization or military type of organization. In the words it is characterized by direct lines of
authority flowing from the top to the bottom of the organizational hierarchy and lines of
responsibility flowing in an opposite but equally direct manner.
An important characteristic of such type of organization is superior-subordinate relationship.
Superior delegates authority to another subordinate and so on, forming a line from the very top to
the bottom of the organization structure. The line of authority so established is referred as “line
authority.” Under this type of organization authority flows downwards, responsibility moves
upwards in a straight line. Scalar principle and unity of command are strictly followed in line
organization.
2. Line and Staff Organization:
The line and staff organization combines the line organization with staff departments that
support and advise line department. In each department, there is one expert and some line
personnel’s / line officials. Line official will do all managerial work and expert will give advice
to line official or line personnel. Line and staff organization is that in which the line heads are
assisted by specialist staff. The line maintains discipline and stability, staff provides experts
information and helps to improve overall efficiency. Thus the staffs are thinkers while the lines
are doers.
Advantages
1. Planned Specialization: The line and staff is a duplex organization, dividing the whole work
into creative plan and action plan. The creative plan is concerned with original thinking and the
action plan takes care of the execution of work.
2. Availability of specialized knowledge: The staff with expert knowledge provides
opportunities to the line officers for adopting rational multidimensional views towards a
problem. Therefore it helps to take sound decisions.
3. Adaptability to progressive business. This type of organization contains good features of
both line as well as functional organization. Specialized staff can devoted their time for planning,
method study research, collection of data etc.
3. Matrix organization
A matrix organization is a work structure where team members report to multiple leaders. In a
matrix organization, team members (whether remote or in-house) report to a project manager as
well as their department head. This management structure can help your company create new
products and services without realigning teams
Types of matrix management
Weak matrix
In a weak matrix, the project manager has the least amount of decision-making power compared
to the other matrix management types. When the project manager has limited authority over the
project, the matrix becomes weak because the project budget and timeline is in the hands of the
department head. Creating a communication plan can keep communication from getting lost in a
weak matrix.
Balanced matrix
In a balanced matrix, the department head and the project manager have equal authority and team
members report to both of them. This keeps communication open between everyone in
leadership roles and allows the project to move forward smoothly.
Strong matrix
In a strong matrix, the project manager has most of the decision-making power over the project,
while the department head has more limited authority. This creates a strong organizational
structure because the project manager has full ownership over the project. The department head
can oversee the project but doesn’t make key decisions.
2. Discuss the difference and similarity between planning and
controlling functions of management.
Difference
It is correct that planning and controlling are incomplete and ineffective without each other and
hence, dependent on each other. But it does not mean that both are not independent. The
following points are helpful to clarify their independent character
A, Planning is Looking Ahead whereas Controlling is Looking Back:
Plans are always formulated for future and determine the future course of action for the
achievement of objectives laid down. On the other hand, controlling evaluates the work done in
the past but under it corrective action is taken in respect of future. Hence, there should not be any
hesitation in saying that planning looks backward while controlling looks ahead,
B, Planning is the First Function and Controlling is the Last Function of Managerial
Process:
The managerial process moves in a definite sequence like planning, organizing, staffing,
directing and controlling. This sequence shows that planning is the first step in the managerial
process and controlling happens to be the last step.
Similarity
1. Planning and Controlling are Interrelated:
Planning is the first function of management. The other functions like organizing, staffing,
directing etc. are organized for implementing plans. Control records the actual performance and
compares it with standards set. In case the performance is less than that of standards set then
deviations are ascertained. Proper corrective measures are taken to improve the performance in
future. Planning is the first function and control is the last one. Both are dependent upon each
other.
2. Planning and Control are Forward Looking:
Planning and control are concerned with the future activities of the business. Planning is always
for future and control is also forward looking. No one can control the past; it is the future which
can be controlled. Planning and controlling are concerned with the achievement of business
goals. Their combined efforts are to reach maximum output with minimum of cost. Both
systematic planning and organized controls are essential to achieve the organizational goals.
3. Explain the difference among the terms productivity, efficiency
and effectiveness
Productivity
Productivity is generally regarded as a measure of outputs divided by inputs. All of the activities
that you get done in a day may be considered your output and the time you put into them are
your inputs.
Efficiency
Efficiency is a measure of how well you do those things. If you are able to get more outputs from
the same inputs, you are said to have increased efficiency. For example, an employee can
improve efficiency by developing a daily work schedule, avoiding personal phone calls and
preventing distractions.
Effectiveness
Effectiveness is a measure of doing the “right things.” Highly effective individuals and
companies act in ways that move their highest priorities forward on a regular basis. For example,
in educational institutions, effectiveness is measured by teaching students what they need to
know.

Productivity = Output / Input

Efficiency = Doing things right

Effectiveness = Doing the right things
4. What is the advantage of mixed layout over product layout
Mixed layout
A combination is possible where an item is being made in different types and sizes in such case
machinery is arranged in a process layout but the process grouping is arranged in a sequenced to
manufacture various type and size of products. Combination layout is also useful when a number
of items are produced in a same sequence but none of the items are produced in bulk and thus, no
item justifies for an individual and independent product line.
Product layout
These types of layout materials are work out into finished stock through series of integrated
operation that is arranged in the line. This layout is preferred for continuous production and for
steady demand of product with limited product variation.
Disadvantage
 Lack of flexibility
 Difficult in supervision and further expansion and large capital investment
5. Briefly explain the principles of plant layout
While designing the layout of a plant, the following principles should be kept in mind:
(1) Principle of minimum movement. As far as possible materials and labor should be moved
over minimum distances.
(2) Principle of flow. The work areas should be arranged according to the sequence of
operations so that there is a continuous flow of materials without backtracking or congestion.
The layout should allow for easy movement of materials without interruptions or delays. As far
as possible movement of materials should be continuous.
(3) Principle of space. All available cubic space should be effectively used both horizontally
and vertically.
(4) Principle of safety. Due consideration should be given to the safety and convenience of
workers. There should be built-in provision for the safety and comfort of employees.
(5) Principle of flexibility. Layout should be so designed that production facilities can easily be
rearranged when it becomes necessary in future on account of expansion or technological
changes.
(6) Principle of interdependence. Interdependent operations and processes should be located in
close proximity to each other. For example, materials should be stored near the area of
requirement, transport, etc. This will minimize product travel.
(7) Principle of overall integration. All the plant facilities and services should be fully
integrated into a single operating unit so as to maximize efficiency and minimize costs of
production.
(8) Principle of minimum investment. The layout should yield savings in fixed capital
investment through optimum utilization of available facilities.
6. Describe
the
difference
between
Qualitative
and
quantitative methods of forecasting
Quantitative method of forecasting: uses numerical facts and historical data to predict
upcoming events. The two main types of quantitative forecasting used by business analysts are
the explanatory method that attempts to correlate two or more variables and the time series
method that uses past trends to make forecasts.
Qualitative method of forecasting: is often employed where the key trends or developments are
hard to capture or where such data is not available. In such a case business analysts used
subjective information such as intuition or informed opinion for forecasting the future results.
This type of forecast is essential for new products where no historical information is available
and primarily used for medium & long term planning. Qualitative techniques include the use of
information gathered from Expert opinion, Market research, Focus groups, Historical analogy,
Delphi method and Panel consensus.
.
7. List the possible decision areas that the output of
forecasting is used in an industrial organization.
Good forecasts are of critical importance in all aspects of a business: The forecast is the only
estimate of demand until actual demand becomes known. Forecasts of demand therefore drive
decisions in many areas. We can classify the impact of product demand forecast on three
activities:
(1) supply-chain management,
(2) Human resources, and
(3) Capacity
8. Explain the strategic importance of forecasting.
Forecasting is the practice of foretelling future events. It may entail compiling historical data like
past sales and creating a mathematical model to help predict the future.
Forecasting is valuable to businesses because it gives the ability to make informed business
decisions and develop data-driven strategies. Financial and operational decisions are made
based on current market conditions and predictions on how the future looks. Here are some
reasons why forecasting is crucial for your business.
1. Take advantage of real-time data
Modern businesses obtain real-time consumer data from a wide array of sources. With sales
forecasting models, you easily estimate future demand for a specific product or service
leveraging real-time consumer data. Some of the sources of consumer data include sales reps,
online surveys, and market tests.
2. Promotes collaboration and coordination
Forecasting isn’t one person’s responsibility. Instead, it requires collaboration and coordination
of all team leaders. Getting all concerned parties to participate in the process of predicting future
events automatically encourages collaboration and coordination. It also guarantees adaptability
to fast-changing conditions.
3. Plan formulation
Forecasting is an important part of planning because planning premises consists of some
predictions. In fact, forecasting is the basis on which planning happens. Planning under all
conditions and in all instances involves a considerable degree of projecting the future in the view
of current circumstances and environment. So there is a close relationship between forecasting
and planning. Adequate planning, be it short term or long-term, departmental or overall, relies on
forecasting to a greater extent.
Forecasting helps you plan the next steps for your business. It helps you gain a clear
understanding of what measures you need to put in place to grow. It allows you to come up with
smart short-term and long-term goals. It also enables you to make intelligent investment
decisions and promotes a team spirit and coordination in the workplace when heads of
departments participate in the process of forecasting.