Principles of Management
2 Mark Questions
1. Definition 0f management?
Management is the art and science of getting work done through people. It is the
process of giving direction and controlling of various activities of people to achieve the
objectives of organization.
KOONTZ & WEIHRICH
“Management is the process of designing and maintaining of an environment in
which individuals working together in groups effectively accomplish selected aims”.
F.W.TAYLOR
“Management is the art of knowing what do you want to do and then seeing that is
done in the best cheapest way”.
2. Skills needed for managers:
Technical skill
1. It refers to the ability to the tools, equipment procedure and techniques.
2. Effective supervision and co-ordination of the work a group members or
subordinates.
Human skill
1. It refers to the ability of the manager to work effectively as a group members and
to build co-operative effort in team leaders.
2. Needed to understand people.
Conceptual skill
1. It is also called as design and problem
2. To see the organization and the various component of it as whole
3. To understand how its various parts and functions mesh together
3. Different approaches of management
1. System approach
2. Contingency approach
System approach
Introduction
Like a human organism an organization in a system. In an organization also people
task and management are independent.
System concepts
System theory was first applied in field of science and engineering.
Contingency approach
The Contingency approach is called as situational approach. It is developed by
managers, consultant and researchers who tried to apply for real life situation. Some
management concepts are different and are very effectively in one situation. The same
concept is failed in another situation. Results or solutions differ because situations differ.
In this approach the managers identify which is suitable technique for a particular
solution. Particular environment of the organization at a specific time.
4. Comparison between art and science.
Science:
It is a systematic body of knowledge with array of principles.
Art:
1. It is the application of skill in finding desired results.
2. Management is both science and art:
3. It contains general principle
4. It also an art because it require certain personal skills to achieve desired result.
5. Functions of management
1. Planning
2. Organizing
3. Staffing
4. Co – ordinating
5. Controlling
6. Management level and functions.
1. Top-level management
2. Middle level management
3. Lower level management
Top level management functions
1. To formulate goals and policies
2. To formulate budgets
3. To appoint top executives
Middle level management functions.
1. To train motives &develop supervisory level
2. To monitor and control the operations performance
Low level management
1. To train &develop workers
2. To assign job
3. To give orders and instructions
4. To report the information about the workers
7. What to you mean by social responsibility& social responsiveness.
Corporate social responsibility is seriously considering the impact of the company’s
action on society.
Social responsiveness means “the ability of a corporation to relate its operations &
policies to the social environment in ways that are mutually beneficial to the company and
to society.
8. What is institutionalizing ethics& how it can be accomplished?
Institutionalizing ethics means applying & integrating ethical concepts in to daily
actions. This can be accomplished in three ways.
1. By establishing appropriate company policy or a code of ethics
2. By using a formally appointed ethics committee
3. By teaching ethics in management development programs
9. What is ethics? What are the types of ethics explain?
Ethics is defined as the discipline dealing with what is good & bad and with moral
duty & obligation.
The three types of ethics are.
Personal ethics:
The rules by which an individual lives his or her personal life.
Accounting ethics:
The code that guides the professional conduct of accountants.
Business ethics:
Concerned with truth& justice & has a variety of aspects such as expectations of
society. Fair competition, advertising, public relations, social responsibility, consumer
autonomy & co-operate behavior.
10. What are the arguments against the social involvement of business?
1. Social involvement may reduce economic efficiency.
2. Social involvement would create excessive costs for business, which cannot
commit its resources for social action.
3. Social involvement can weaken the international balance of payment.
4. it may leads to the hike in prices of the commodities
5. Incomplete support for involvement in social action &&disagreement among groups
will cause friction.
6. There is a link of accountability of business to society.
11. What is tows metrics?
The tows metrics is a conceptual frame work for a systematic analysis, which
facilitates matching the external threats and opportunities with the internal weakness &
strength of the organization. In the tows metrics ‘T’ stands for threat’s’ stands for
opportunities ‘W’ for weakness and ‘S’ for strength.
12. Defining planning premises?
Planning premises are defined as the anticipated environment in which plans are
expected to operate. They include assumptions or forecasts of the future & known
conditions that will effects the operation of plans.
13. List out the social responsibilities of managers?
 Responsibilities towards share holders.
 Responsibilities towards employees
 “
“
creditors
 “
“
government
 “
“
suppliers.
 “
“ competitors
 “
“ general public
14. What is social audit?
Social audit involves a commitment to systematic assessment of the company’s
main activities that have a social impact reporting to the society on relevant issues. Every
voluntary social program ends with a social audit social encompasses every possible
area, such as pollution control, training & development promotion of minorities & so on.
15. Define code of ethics?
A code is a statement of policies, principles or rules that guide behaviors codes of
ethics should guide the behavior of persons in all organizations & in every day of life.
16. List out the functions of ethics committee
1. Holding regular meeting to discuss ethical issues.
2. Dealing with ‘gray areas’
3. Communicating the code to all members of organization.
4. Checking for possible violations of the code
5. Enforcing the code.
17 what is planning?
Planning is a process of selecting the objectives & determining the course of action
required to achieve these objectives.
18. Important observations subjected about planning?
1. Planning is obtaining a future course of action in order to achieve an objective.
2. Planning is looking ahead.
3. Planning is getting ready to do something tomorrow.
4. Plan is a trap laid down to capture the future.
19. Define mission?
Mission may be defines as a statement which defines the role that an organization
plays in the society.
20. Define policies?
Policies are general statement or understanding which provides guidance in
decisions making to various managers.
21. Explain in brief about the two approaches in which the hierarchy of objectives
can be explained?
There are two approaches in which the hierarchy can be explained.
1. top-down approach
2. bottom-up approach
in the top-down approach, the total organization is directed through corporate
objective provided by the top-level management. In the bottom up approach, the top level
management needs to have information from lower level in the form of objectives.
22. Advantages of objectives:
1. Unified planning
2. Defining an organization
3. Direction
4. Individual motivation
5. Basis for decentralization
6. Basis for control
7. Co-ordination
23. Steps involved in MBO process:
1. setting preliminary objectives
2. fixing key result areas
3. setting subordinates objectives
4. matching resources with objectives
5. recycling objectives
6. Periodic resources with objectives.
7. Appraisal
24. features of MBO:
1. MBO tries to combine the long range goals of organization with short range of
organization.
2. MBO involves participation of subordinate managers in the goal setting process.
3. MBO increase the organization capability of achieving goals.
4. MBO’S emphasis is not only on goals but also on effective performance.
25. Definitions of MBO:
According to GEORGE ODIORNE,”MBO is a process where by the superior
and the subordinates managers of an enterprise jointly identify its common goals, define
each individuals major areas of responsibility in terms of results expected of him, and use
these measures as guides for operating the unit and assessing the contribution of each of
its members”.
KOONTZ &WEIHRICH have defines MBO as follows:
“MBO is comprehensive managerial system that integrates many key managerial
activities in a systematic manner & that is consciously directed towards the effective and
efficient achievement of organizational and individual objectives.
26. Define strategy?
A strategy may be defined as special type of plan prepared for meeting the
challenges posted by the activities o competitors and other environment forces.
27. Steps involved in strategic planning:
1. Mission and objectives.
2. Environmental analysis
3. Corporate analysis
4. Identification of alternatives.
5. Strategic decision making
6. Implementations review & control.
28. State the characteristic of a sound policy?
1. Relationship to organizational objectives.
2. Clarity of policy
3. A policy is a guide to thinking in decision making
4. Policies should be written
5. Communication of policies
6. Balance of policies.
7. Planned formulation.
29. List out the steps involved in formulation of policies:
1. Defining the policy area
2. Defining of policy alternatives.
3. Evaluation of policy alternatives.
4. Choice of policy
5. Communication of policy
6. Implementation of policy
7. Review of policy
30. Name the classification of planning premises?
1. Internal and external
2. Tangible and intangible premises.
3. Controllable and uncontrollable premises
31. State the importance of HRM?
1. To achieve competitive advantage over other organisation.
2. To improve the efficiency of the organisation.
3. For the fuller utilization of available resources.
4. Cost effective administration.
32. State the importance of staffing:1. It helps to make use of the Organisational resources.
2. It provides effective and efficient personals to the organisation.
3. Helps to discover talented and competent persons.
4. Helps to ensure uninterrupted flow of business.
33. Advantages of Organisational Chart:1. It shows the overview of staffing in organisation.
2. The manager ready for promotion can be identified.
3. Helps to predict future internal supply of managers.
4. Helps in transfer of manager internally to strengthen weak areas.
34. List some factors affecting span of control
1. Subordinates training requirement.
2. Clarity of delegation of authority.
3. Clarity of plans.
4. Use of objectives and standards.
35. Cross Relationship
It arises because of mutual interaction of subordinates working under common
superior normally they are assuming this to be 6.
36. Classification of power
1. The legitimate power
2. Expert power
3. Reference power
4. Reward power
37. Define Decision Making
Decision Making is defined as selection of a course of action from among
alternatives. It is a core of planning. A plan cannot be said to exist unless a decision – a
commitment of resources, direction or reputation has been made. Until that point, there is
only planning studies and analysis.
38. What are the three approaches in selecting an alternative?
1. Experience
2. Experimentation
3. Research and Analysis
39. Define Decision trees?
The best way to analyze a decision is by means of decision trees. In a decision
tree, the various chance events, decision points and probabilities involved in various
courses that might be undertaken are represented in the form of a ‘tree’. The decision
tree approach makes it possible to see the major alternatives and facts that subsequent
decision may depend upon.
40. Need of Departmentisation:Specialisation of works and the limitation of number of subordinates that can be
directly controlled by superior. If there is no departmentisation there is a serious limitation
of size of the organisation.
41. What is Departmentisation?
Departmentisation is a process of grouping the activity based on its similarities.
42. What are the types of Departmentisation
1. By simple numbers.
2. Departmentisation by time.
3. Departmentisation based on enterprise.
4. Classification based on territory or geographical area.
5. Departmentisation by products.
6. Customer Departmentisation.
7. Market oriented Departmentisation.
8. Process or Equipment.
43. What are the three basic approaches to select among alternatives?
1. Experience
2. Experimentation
3. Research and Analysis
Experience:
Relying on post experience, the choice among alternatives is selected to avoid
mistakes.
Experimentation:
A firm may test a new product in a certain market before expanding its sale
nationwide.
Research and Analysis:
The trend in research and analysis is simulation i.e. to develop mathematical tools.
44. What is cost Effectiveness Analysis?
Cost effectiveness Analysis is a technique for choosing the best plan when the
objectives are less specific than sales costs or profits. It means finding the least costly
way of reaching an objective or getting the greatest value for giving experiences. It is also
called as Cost Benefit Analysis.
45. What is the principle of limiting factor?
Principle of limiting factor is given as “By recognizing and overcoming those factors
that stand critically in the way of a goal, the best alternative course of action can be
selected”.
46. Define Organising?
Organising is an activity involves in analyzing the nature of job to be performed
grouping them, dividing into departments, divisions selections and that can be assigned to
various individuals and delicate authority to carry out the task.
47. Define Decentralisation?
The tendency to discuss the decision making in an organisation structure. The
fundamental aspect of Decentralisation is delectation of authority.
48. Advantages of Decentralisation?
1. It is a big relief to top managers.
2. It encourages the decision making.
3. It promotes the development of general manager.
4. Facilitates product diversification.
49. Define Scalar Principle:The clear the line of authority from the ultimate management position in an
enterprise to every subordinate position the clear will be the responsibility for decision
making and the more will be effective will be the organisation communication.
50. Define Policy
Policy of Decentralisation affects all area of management and it can be looked
upon an essential element of managerial system. Managers could not use the discursion
to handle the ever changing situation they face.
51. What is Organisation Structure?
In organisation structure simply by means the systematic arrangement of people
working for the organisation. The organisation is concerned with establishment of
positions and relationship between positions. The organisation structure has two
dimensions.
1. Horizontal
2. Vertical
52. What do you mean by Organisation Culture?
It is the general pattern of behavior norms shared beliefs and values there are
unique for organisation. It is fairly stable and does not change fast. It often sets the tone
for the company and establishes implied rules for the way people should behave.
Organisation culture even influences how individuals behave at work and hence will affect
both individual and Organisational performances.
53. Benefits of Decentralization:1. Gives managers more freedom and independence in decision making.
2. It encourages decision making and assumption of authority and responsibility.
3. Aids in adoption to fast changing environment.
4. Promotes development of general managers.
5. Facilitates product Diversification.
6. Promotes establishment and use of broad controls which may increase motivation.
54. Uses of Organisation Chart
1. The organisation chart pinpoints the weakness of an organisation. This will helps to
overcome the short coming of organisation.
2. It tells quickly who is responsible for particular function.
3. It is useful in showing nature of an organisation and changes if any in the existing
staff and new comers.
55. What are the types of Departmentation?
1. Departmentation by simple numbers.
2. Departmentation by Time.
3. Departmentation by Enterprise function.
4. Departmentation by Territory or Geography.
5. Customer Departmentation.
6. Process or Equipment Departmentation.
7. Departmentation by product.
56. Distinguish between authority and power
Power is the ability of individuals or groups to induce r influence the belifs or
actions of other persons or groups.
Authority in organisation is the right in a position to exercise discretion in making
decisions and affecting others.
57. What are the different bases of power?
1. Legitimate Power
2. Referent Power
3. Reward Power
4. Coercive Power
58. Scalar Principle
The clear the line of authority from the ultimate management position in an
enterprise to every subordinate position, the clearer will be responsibility for decision
making and the more effective will be the organisation communication.
59. Functional Authority
It is the right which is delegated to an individual or a department to control
specified processes practices, policies or other matters relating to activities, undertaken
by persons in other departments.
60. Limitations of staff:1. Danger of undertaking line authority
2. Lack of staff responsibility
3. Thinking in a vacuum
4. Managerial problems
61. State any two merits of equity theory:
1. This theory makes managers realize that equity motive tends to be one of the most
important motives of the people in the organisation.
2. Feelings or perceptions in equity are important factor in work setting. Management
should take necessary steps to develop the perceptual skill of the people.
62. Mention the various factors involved in using motivational techniques:
1. Money
2. Participation
3. Quality of working life
63. What is job enrichment?
Job enrichment is therefore based on the assumption that in order to motivate
personnel, the job itself must provide opportunities for the achievement, recognition,
responsibility, advancement and growth.
64. What are the limitations of job enrichment?
1. Job enrichment is based on the assumption that workers want more responsibility.
But, in practice, most of the workers may prefer less responsible jobs with good
social interaction. Such workers may show feelings of inadequacy and fear of
failure to job enrichment.
2. Some jobs cannot be enriched beyond a certain point.
65. Give the required guidelines to make effective job enrichment.
1. Use job enrichment selectively after taking into account situational variables such
as job characteristics, personal characteristics of employees, Organisational level
etc.
2. Provide a supportive climate for innovation and change.
66. Who is a leader?
Leader is one who makes his subordinates to do willingly what he wants.
67. Define Leadership
Leadership is the process of influencing the behaviour of others towards the
accomplishment of goals in a given situation.
68. Mention the importance of Leadership
1. Motivating Employees
2. Leader develops team work
3. Better utilization of manpower
4. Creating confidence to followers
5. Directing group activities
6. Building morale
7. Maintaining discipline
69. State something about weakness of trait theory
1. There is no universal list of traits of successful leaders. It is therefore; very difficult
to indicate what mix of traits is necessary to make an affective leader. Individuals
who never achieve leadership also possess some of the traits as successful
leader.
2. Researchers simply provide the list of qualities. They fail to give the scale to
measure the qualities. It is not clear how high a score a person must achieve an a
given trait to make it effective.
70. State House’s path – goal approach
Leaders are effective because of the influence on followers motivation, ability to
perform and their satisfaction.
71. Name the various leadership styles.
1. Autocratic or Dictatorial leadership
2. Participative or Democratic leadership
3. Laissez – faire or Free – rein leadership
72. What are the advantages of democratic leadership?
1. The subordinates are motivated by participation in decision – making process. This
will also increase job satisfaction
2. Absence of leader does not affect output
3. Labour absenteeism and turn – over will be minimum
4. The quality of decision is improved
5. The leader multiplies his abilities through the contribution of his followers
73. What is Laissez – faire?
Complete freedom is given to the subordinates so that they plan, motivate, control
and otherwise be responsible for their own actions.
74. What is Communication?
Communication is passing of information from one person to another person.
75. Mention the various elements in the process of communication
1. Sender
2. Communication Channels
3. Symbols
4. Receiver
5. Noise and feedback in communication
76. List the different types of communication flow
1. Downward Communication
2. Upward communication
3. Horizontal or Lateral Communication
77. Note down the various communication networks
1. Simple Chain
2. Wheel
3. Circular
4. Free flow
5. Inverted V
78. Differentiate Single and Multiple channel networks
S.
Single Channel Communication
Multiple Channel Communication
No.
1.
The Communication is allowed on only The communication is allowed in more
one path is called as line authority. It is than one path.
simply referred as through proper
channel.
2.
Communication flow is slow
Communication flow is faster
3.
Easy to maintain orderly in nature
Potential problems may occur
4.
Miscommunication is reduced
Miscommunication in increased
79. Creativity refers to what?
Ability and power to develop new ideas.
80. What are the types of motivation?
1. Positive Motivation
2. Negative Motivation
3. Extrinsic Motivation
4. Intrinsic Motivation
81. Define Budgeting control?
A Budgeting control is defined as "a financial or quantitative statement, prepared
and approved prior to a defined period of time, of time policy to be pursued during the
period for the purpose of attaining a given object.
82. What is meant by Management Audit?
Management Audit is a systematic evaluation of the functioning, performance and
effectiveness of management of an organization. It is a thorough-going, critical and
constructive review of the quality of management.
83. What is PERT and CPM?
PERT is an event-oriented network because emphasis is given on important
stages of completion task rather than the activities required to be performed to reach to a
particular event or task. PERT is normally applied to projects of non-repetitive nature.
CPM can be applied in an environment of certainty. It is deterministic. And is
suitable for establishing a trade-off for optimum balancing between schedule time and
cost of the project.
84. What do you mean by the word Productivity?
Productivity is the ratio of output to some or all there sources used to produce the
output.
85. What do you mean by Quality Circle?
Quality Circles consists of a small homogeneous group of people doing similar
work, who voluntarily meet together regularly about an hour per week in paid time under
the leadership of their own supervisor to identify, analyze and solve a problem.
86. What do you mean by Control?
Control is intended to ensure and make possible performance of planned activities
and to achieve the predetermined goals and results.
87) Define Budgetary Control?
According to ICMA, England "Budgetary Control is the establishment of budgets
relating to the responsibilities of executives to the requirements of a policy and the
continuous comparison of actual with the budget to provide a basis for its revision.
88. List out the various kinds of budget?
1) Functional Budget
2) Master Budget
3) Fixed Budget
4) Flexible Budget
5) Zero-base Budget
89. What do you mean by Master Budget?
A Master Budget is the summary budget incorporating all functional budgets. It is
prepared with a view to coordinate the activities of various functional departmental.
90. What do you mean by Zero-base budgeting?
Zero-base budgeting is the latest technique aimed at cost reduction and optimum
realization of resources.
91. What is Feed Forward Control?
Feed Forward Control involves evaluation of input and corrective measures before
a particular sequence of operation is completed. It is based on timely and accurate
information about changes in the environment.
92. What is Concurrent Control?
Concurrent Control is also known as "real-time" or steering" control. It provides for
taking corrective actions or making adjustments while the programmes is still in operation
and before any major damage occurs.
93. List out the important features of controlling?
a) Function of Management.
b) Continuous function
c) Future -oriented and
d) Action-oriented.
94. What is Flexible Budget?
Flexible Budget is one which is designed to change in accordance with the level of
activity actually attained. It is suitable when the estimation of demand is uncertain and the
enterprise works under conditions of lack of material and labor power.
95. What are the benefits of control?
1. Control eliminates actions which deviate or which is not in conformity with the
cherished goals of the firm.
2. It offers enough information for future planning and Organising.
96. List out the characteristics of Control function?
1) Functional Management
2) Continuous function
3) Future-oriented
4) Action-oriented
5) Measuring the performance and
6) Planning the control
97. What if Production?
Production is defined as the step by step conversion of one form of material into
another form through manual, mechanical or chemical process to create or enhance the
utility of the product to the user.
98. What is production management?
Production management is the process of planning, Organising directing and
controlling production activities of an organisation for the actual transformation of
elements of input into marketable finished goods services.
98. What are the basic steps involved in the process of controlling?
1 establishment of standards
2 measurement of performance
3 comparing performance with the slandered
4 taking corrective action
99. What are the different technologies based productivity improvement
techniques?
a) CAD
b) CAM
c) CIM
d) Robotics
e) Laser technology
f) Energy technology.
100) what is value engineering?
value analysis is also called value engineering is basically a cost reductions
technique which is the organisation and systematic study of every element of cost in a
part, material or service to make certain fulfills its functions at the lowest cost.