PRINCIPLES & PRACTICE OF MGT.
Section – A
[QUESTIONS 1 TO 25]
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2 Marks Questions
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What is Unity of Command?
Unity of command means that a person should get order and instruction from only
one supervisor. The person should report to a single Superior only otherwise he
would be confused due to conflict in instructions and also it would be difficult to pin
point responsibility to him.
What is Span of Management?
Span means space between tow pillars. Span of mgt. refers to the number of
subordinates who are managed directly and effectively by a superior. It affects
efficient utilization of managers and the effective performance of their subordinates.
Too wide span may mean that managers re overstraining themselves and their
subordinates are over controlled and vice-versa for narrow span.
What is SWOT Analysis?
SWOT is the acronym for S  Strength W Weakness, O opportunity T
Threats. It their external and internal environments. SWOT Analysis is a technique,
which helps to know the standing of an organization that what is the strength of
organization. How organization can overcome its weakness. And what are the
opportunities available to organization. What are the weak areas and threats to the
organization?
What do you mean by planning premises?
Planning premises are the conditions under which planning activities will be under
taken planning premises are. The planning assumption
the expected environment
and the internal condition, which helps internal conditions, which helps to design the
planning programme.
What is Unity of Direction?
According to this principle, each group of activities with same objective must have
one head and one plan. All the personnel in organization should think in the same
direction, have similar objectives unity of direction beings coordination among various
activities undertaken by organization.
What is Scalar Chain?
There should be a scalar chain of authority and of communication ranging from the
highest to the largest level. Communication going up or coming down must flow
through each position in the line of authority. Fayol has suggested that if F wants to
communicate with G of F goes to D then B than A then to C to E and comes to G is
lengthy process. So concept of Gang plank was introduced in which F will
communicate with G directly (Shown in () horizontal line.
What is Gantt chart?
Henry Gantt was given the concept of Gantt chart; he said total goals of the
organization should be taken as series of inter related plans All the activities of
organization are interrelated to each other like task A is purchasing land, Task B is
making building Task C is taking electricity and telephone connection. Henry L.Gantt
is probably best-remembered fort his development of task and bonus system and his
perfection of the Gantt chart. Taylor’s differential piece rate system was an incentive
plan whereby the worker was paid on the basis of his daily output. Gantt’s task and
bonus system was so structured that the worker received day’s wage even if he did
not complete the task. But if he completed the task in less than the prescribed time,
he received a bonus.
What is the difference between open system and closed system?
Closed system is that system, which has no interaction with environment that is no
outside environment, has links with them. Open system is the system that interacts
with their environment. They take inputs and give output to the environment, and
constantly interact with environment.
PRINCIPLES & PRACTICE OF MGT.
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What are the Principles of Scientific Management?
Taylor has given basic principles of scientific Management.
1) Replacing rule of thumb with science. (No force full action)
2) Harmony in Group action.
3) Co-operation.
4) Maximum output.
5) Development of workers.
What is a social system approach or what is contribution or Chester Barnard?
Organization is a social system, a system of cultural relationships.
Contributions of Chester Barnard. –
1. Organization is system in which people communicate with each other, willing to
contribute to the group action; they attempt to accomplish a common purpose.
2. Organization can be formal and informal (Social)
3. Co-operation among group members is necessary.
4. Harmony should be there between goals of organization and various groups.
What are the different types of plans?
Plan is a commitment of resources to a particular course of action. This action will be
done to achieve specific objectives.
Types of plans:
1.
Mission or purpose
2.
Objectives
3.
Strategies
4.
Policies
5.
Procedures and rules
6.
Programme & Projects
7.
Budget
8.
Quotas.
What is the types and dimensions of planning?
The types and dimensions of planning are.
Dimension/Area
Types of Planning
1.
Coverage of Activities
Cooperate & Functional Planning
2.
Importance of Contents
Strategic or operational planning
3.
Time period-involved
Long term & short term planning
4.
Approach adopted
Preacher and reactive planning
5.
Degree of formalization
Formal & Informal planning
What are features of planning?
Planning is a process that determines future course of action. Planning is selection of
facts, making and using assumption regarding the future. Planning moves the
organization from its current position to desired position features of planning. Its
features are.
1) It is process.
2) It involves looking into future.
3) It is flexible.
4) It is pervasive (Present everywhere)
5) It is undertaken at all the levels is the organization.
What is the process of planning?
Planning process involves following steps.
1)
2)
3)
4)
5)
6)
7)
To establish objectives.
Establish planning premises.
Identification of alternatives.
Evaluation of alternative.
Choice of Best alternative.
Formulation of supporting plans.
Establish the sequence of activities.
PRINCIPLES & PRACTICE OF MGT.
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Distinguish between strategic planning and operational planning?
Difference between strategic planning and operational planning is as follow
Strategic planning
Operational planning
It is the process of deciding on
It is the process of deciding
Objectives of organization i.e.
most effective use of resources
Planning for any change in the
already allocate. It is short term
Objectives planning on the
planning and it aims at most
resources used to attain these
effective use of resources
objective.
Already allocated and to ensure
their effective implementation.
Distinguish between long term and short term planning.
Difference between long term and short term planning is as follow.
Long Term Planning
1) It is of strategic nature and involves more
than one period extending to twenty years
also.
2) The long term plans usually encompass
all functional areas.
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Short Term Planning
I1) t is of operational or tactical nature and
usually covers one year.
2) These are aimed at sustaining
organisation in its production and
distribution of current products or services
to the existing markets.
Write various characteristics of objectives.
Characteristics of objectives are.
1.
Hierarchical pattern
2.
Objectives are inter-related.
3.
Objectives are multiple in nature.
4.
Objectives may be realistic and operational.
5. Objectives may be long-term or short term.
Is management a science?
It is an inexact science or social science. Management Uses both scientific
knowledge to develop its
principles, and skills and creativity of Art. Therefore
Management is both science and Art.
What do you understand Business ethics?
Business ethics relate to the behavior of businessman in a business situation.
Business ethics are moral principles or set of values about what conduct ought to
be. Business ethical behavior is conduct which is fair and justifiable, and with in the
boundaries of rules and regulations.
What is Management by objectives (MBO)?
Peter Drucker originated MBO in 1954. MBO is comprehensive, managerial systems
that integrate many key managerial activities in a systematic manner MBO is directed
towards the effective and efficient achievement of against and objectives. MBO
involves participation of employee in objective setting. It analysis the key result areas
(Profitability, market share etc) and then matches the performance with the
objectives. After viewing performance a periodic review of performance (i.e.
feedback) is given back.
Write various methods of forecasting.
The various methods of forecasting are;
1. Survey Method.
2. Opinion poll method
3. Historical Analogy method
4. Business Barometric method
5. Time series analysis
6. Extrapolation
7. Regression Analysis
8. Econometric Models
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What is system boundary?
System Boundary. A System is set of interrelated components founded together to
achieve some objectives. A system can be identified because it has a boundary. In
case of physical system the boundary is visible .In case of social system the
boundary is not visible. Boundary maintains the relationship between system & its
environment.
What is Delphi Technique?
The R and Corporation originally developed the problem-solving method for
technological forecasting. It is now used as multipurpose planning tool. The Delphi
technique is a group process that anonymously generates ideas or judgments from
physically dispersed experts.
A manager begins the Delphi process by identifying the issue(s) he or she wants to
investigate. For example, a manager might want to inquire about customer demand,
customer’s future preferences, or the impact of locating a plant in a certain region of
the country. Next participants are identified and a questionnaire is developed. The
questionnaire is sent to participants and returned to the manager. The manager then
summarizes the responses and sends feedback to the participants. At this stage,
participants are asked to (1) review the feedback, (2) prioritize the issues being
considered, and (3) return the survey within a specified time period. This cycle is
repeats until the manager obtains the necessary information.
The Delphi technique is useful when face -to –face discussions are impractical, when
disagreements and conflicts are likely to impair communication, when certain
individuals might severely dominate group discussion, and when groupthink is a
probable outcome of the group process.
State the difference between strategies and policies.
The difference between strategies and policies is as follow.
Policies
Strategies
A policy is a guide to thinking and A strategy provides the direction in which
action of those
who make the physical, technological and human
decisions.
resources of the organization shall be
deployed.
A policy is making to guide taking A strategy is made by top management
actions under situations, which whenever there is a need to give sharp
arise repeatedly.
focus to an objectives
It is a type of standing plan to be It is a single use plan. After is
used time and again.
implementation. It is not used again.
The situations to be faced by A strategy is drawn up to deal with
policy are comparatively known.
unknown environment in the future.
It need not originate because of It is made to fight competition in the
competition in the market.
market. The existing moves and expected
moves of the competitors are always
considered.
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What are the essential features of a manager?
The essential features of a manager are as follow.
1. Decisive (Decision making capacity)
2. Aggressive
5. Productive
5. Well-informed (knowledgeable)
7. Energetic
8. Creative
9. Intelligent
11. Clear thinker
12. Cheerful
13. Neat
15. Formal
16. Courteous
17. Modest
19. Ethical
20. Supportive
3. Self starting
6.Deter mined
10. Responsible
14. Kindly
18. Reserved
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Section – A
[QUESTIONS 1 TO 21]
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5 Marks Questions
[PAGE 5 TO 20]
Explain the various types of planning premises.
Planning premises is the anticipated environment in which plans are expected to
operate planning premises are all those assumptions circumstances and condition
which are present at time of making plan.
Types of planning Premises
1)
External Premises. They exist in the organization external environment. E.g.
Economics, Environment, Social, cultural, political, Market environment.
2)
Internal Premises. This is all the strength and weakness, its structure, its
product etc.
3)
Tangible Premises. They are those premises, which can be measured
quantitatively like sales forecast, labor hour, machine hour, unit of product
etc.
4)
Intangible premises. They are those premise which are the quantitative in
nature e.g. image of company.
5)
Controllable Premises. They are those premises which can be controlled by
organization, e.g. organization's policy, its structure its system, procedure etc.
6)
Uncontrollable Premises. They are the external Premises and outside the
control of organization e.g. Rate of
economic growth, market share of a
companies product, labor of taxation.
Discuss the process of MBO? Is MBO successful in India?
Management by objective (MBO) is comprehensive managerial system that
integrates many key managerial activities in a systematic manner in such a way so
that the objective of organization is achieved.
MBO is setting up of objective of organization, making plans by the managers taking
help and particulars of subordinates.
Process of MBO
1)
Set up the organizational objectives
2)
To decide the key result areas.
3)
To set the subordinate objective
4)
To Match recourses with the objective
5)
To appraise the performance
6)
To provide the feedback.
MBO in Indian Organization
In India there is very limited scope MBO very few organization have applied MBO. At
Initial Stage. MNC's have applied the concept of MBO. IN 1969 MBO made a
systematic entries through management Institution in Hyderabad, Administrative staff
college of India. They organized seminar a MBO in which head of many companies
participated like Galaxo, Wipro, Hindustan Level Limited, Tata, Ranbaxy, Procter and
Gamble.
Explain the McKinsey’s 7-S approach.
1.
2.
3.
Strategy. The direction in which an organization wants to move in the long
run so as to commit organizational resources to a specific plan made
towards accomplishment of predetermined goals.
Structure. The basic organization of the company i.e. its various
interrelationships – the departments, the hierarchy and associated
authority – responsibility relationships
System. The formal and informal procedures that govern the operation of
the organization. The theorists suggest that the 3Ss – strategy, structure,
and systems can be thought to be the ‘hard Ss’ of the entire approach
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5.
6.
7.
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because of their inherent nature. The following 4Ss are tangible and
flexible and to were taken to be ‘Soft Ss’ of the approach.
Skills. The unique diversifiable competency of the organization personnel.
Staff. The human resource of the organization – studying the
demographic ands social characteristics like average age of the manager.
Style. The rhythm of work and the overall culture that flows within an
organization.
Shared values. The collective values for which the organization stands for
as each individual merges his personal values and interest with these
shred values.
Structure
Strategy
Systems
Shared
values
Skills
Style
Staff
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Explain hygiene maintenance theory of motivation.
Hygiene Model. - Motivation refers to the way in which Urges, drives, aspirations,
strivings or needs, direct, control or explain the behaviour of human beings.
According to Herzberg there are few factors, which motivates a person to work. He
divided these factors into two forms – motivational factor and Hygiene factors (or
Maintenance factor).
Maintenance Factor - provide no motivation to the employee, but absence of these
factors serves as dissatisfier.
Motivational Factors - are those factors which provides motivation to the
employees, their absence will not cause dissatisfaction, but there presence will
certainly motivates employees.
Example of maintenance of Hygienic factors Motivational factors.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Maintenance or
Hygienic factors
Company policy and
Administration.
Technical supervision
Inter personal relations
With bags.
Inter personal relations
With peers.
Salary
Job security
Personal life
Working conditions
Status
Motivational Factors
1)
Achievement
2)
3)
Recognition
Advancement
4)
Work itself
5)
6)
Possibility of growth
Responsibility
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Why a manager should do socially responsible acts and take ethical decision?
Should profit be the main guiding principle in decision making.
I) Social responsibility refers to businessman's decisions and action taken keeping in
minds the social values and ethic customs
i) Business should act responsibly as
ii) Business is a part of society
iii) To avoid the government regulations and legal compilations.
iv) To keep the long sum interest of the business
v) To maintain the traditional values
vi) In order to keep the peace in the society.
vii) In order to do welfare of employees
II) Should profit be the only motive of business?
No, It should not be only profit, as guiding principle in decision on making because
the other objective like societal objective, are equal given importance.
Business has long life, so profit making can be good only in the short run. For
maintaining the long life. the other objectives should not be ignored.
What is the difference between formal organization and informal organisation?
Formal Organisation
Informal Organisation
1) It is structured organization,
1) It is natural outcome at
Deliberating designed to achieve
the work place. It is not
Same particular objective.
Designed or planned.
2) It is designed by the top
2) It is created by the
Management
members itself on basis
Of their personal likings or disliking.
3) It is based or division of labor.
3) Membership is voluntary
4) Authority and responsibility
4) Behavior of members is
Assigned to each job.
Coordinated by the group Norms.
5) Formal organizations are large
5) The informed organization
In size.
Are small in size.
Define motivation and the Maslow’s need theory of Motivation.
Motivation means are inner state that energies, activates or mores the individual.
Motivation is an inner drive, which makes a person behave and act in a particular
manner. Mc Celland defined motivation as "Motivation refers to the way in which
urges, drives, desires, aspiration , aspirations, need, direct control or explained the
behavior of human behavior
Characteristics of Motivations
1.
Motivation is an internal feeling. Needs are feeling in the mind of a
person
that he lacks certain things. Such feelings affect the behavior of the person.
Motivation is a psychological phenomenon, which generates with in individual.
2.
Motivation is the product of anticipated value from an action and the perceived
probability that this value will be achieved by the action. The anticipated values
is called valence and it is defined as the strength of a person's performance for
one outcome in relation to others. The perceived probability is called
'expectancy' and it is defined as the strength of belief that a particular act will be
followed by a particular outcome. Thus motivational relationship can be
expressed in the following formula
Motivation= Valence X Expectancy
3)
Person in totality, not in part, is motivated. Each individual in the organization is
a self contained and inseparable unit and his needs are interrelated. These
affect the behavior in different way. Moreover feeling of needs is a continue
process as such these continuing in human behavior.
Maslow’s Need theory of motivation.This theory is based on the fact that
human beings have five stage needs which makes an individual to work or behave or
react in a particular manner. A.H. Maslow developed a conceptual framework for
understanding the human motivation. Process of motivation begins with an
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assumption that behaviour is directed towards the achievement of satisfaction of
needs.
Self
Actualization
Self esteem
Social Needs
Safety needs
Physiological needs
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Ans.
Maslow stated there are five type of needs present in human being.
1) Basic physiological needs. - This need is related to food clothing, shelter, air,
water, other necessity of life.
2) Safety and security needs. - Like need of job security, personal security, security
of income, provision of old age.
3) Social needs. - Need for affiliations, love, exchange of feelings, sociability, feeling
of grievances and sharing them with others.
4) Esteem and statues Needs. - Need for self-confidence, Ego, independence,
achievement, status competence, knowledge and success.
5) Self-actualization needs. - To achieve final goal, find position in life, Selfdevelopment, to realize one potentiality to have feeling of accomplishment or
fulfillment.
What is the contribution of Fayol in general principles of Management?
Fayol has given fourteen principles of management, which will make the
improvement in the working of the organization.
1. Division of work. - i.e. divide the work among workers. Division of work will bring
specialization among workers.
2. Authority and responsibility. - The authority and responsibility are related with
each other, they are two sides of one coin. Proper authority should be given in
order to get the work done responsibility.
3. Discipline. - All persons working in one organization should be displeased.
Discipline is obedience, application, energy, behavior and mark of respect shown
by employees discipline is self imposed displeased (Discipline by) or command
discipline (i.e. discipline imposed by some authority)
4. Unity of command.- Means a person should have only one boss. A person should
get order and instructions from one superior only.
5. Unity of direction.- According to this principle each group of activities with the
same objective must have one head and one plan.
6. Subordination of individual to general interest.- Common interest of organization
is more important then the interests of the individual.
7. Remuneration of Personnel.- Remuneration of employees should be fair and
provide maximum satisfaction to the employees and employers.
8. Centralization.- Every activity which reduces the subordinates role and authority
is centralization. Decentralisation is to increase the authority and power of
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subordinates. Centralisation and decentralization should be in the equal
proportion.
9. Scalar chain.There should be chain of authority and of communication
ranging from highest level. Communication should flow in a hierarchy in the
organization.
10. Order.This is a principle related to the arrangement of things and people in
proper order. There should be a place for everything and everything should be in
its proper place.
11. Equity.- Means a combination of justice and kindness. Equity in treatment and
behaviour is liked by every one and brings locality in organization (Equity means
equal treatment)
12. Stability of Tenure.No employer should by rewarded within a short time.
Thee should be a reasonable security of job.
13. Initiative.- Manager should encourage employees to take initiative (Start) or
participate in the activities of organization.
14. Esprit de corps. - This is the principle of union is strength i.e. manager should
encourage the concept of unity among its employees. As unity is diversity.
What are the functions of management?
Management performs six functions. These are.
1) Planning. - It is the process of thinking about future. It is to determine the future
course of action. This involves why, what when how, and where to do action.
2) Organizing. - Organizing is the process of dividing work into convenient tasks or
duties and grouping of such activities. Making organization structure, defining
position, giving them authority and responsibility.
3) Staffing. - Staffing involves mapping the various positions created by the
organizing process. It includes preparing inventory of personnel (man-power)
(How many number of person are required in the organization)
4) Directing. - Means to guide to show them direction. Telling the subordinates that
what manager expects from them.
5) Co-ordination. - It is synchronization of all the activities. Coordination is a group
process by which harmony in organization is brought up.
6) Controlling. - Means to keep a check. Controlling means to compare the actual
performance with the standards set; see where the difference lies between actual
and standard performance and them taking a corrective action for it.
Do you think management helps in achieving the goals of an organization?
Give several line examples to support your answer?
Management is the art of securing maximum prosperity within a minimum of effort.
Where there theme is an organizational group of people working towards common
goals, some type of management becomes essential. It has been rightly said that
'anything minus management amounts to nothing. In the words of Koontz O' Donnel,
"There is no more important are if human activity than management since its task is
that of getting things done through others." In the case of business enterprise,
management is all more important because" no business runs on itself, even on
momentum, energy business kneels repeated stimulus which can only be provided
by management. Accordingly to Peter Ducker,' Management to a dynamic life giving
elements in an organization. In its absence the occurrence of production remain
resources and new become production. The fallowing points further highlight the
importance of management.
Achievement of group Objective
It is the management, which makes the people realize the objective of group, and
directs their efforts towards the achievements of these objectives of the organization.
Optimum Utilization of resource
No business activity can be undertaken without the five factors of production i.e. the
land, Labor, capital, enterprise and the management. The four factors may prone
ineffective in the absence of fifth- the management. It is the management, which
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makes optimum utilization of research possible. In the words of Urwick and French "
No Ideology, no ism, no political theory can win greater output with less efforts, only
sound management”.
Minimization of cost (to combat rising competition)
In the present days of increasing competition only those organization can service
which produce quality goods at the lowest of cost through better planning, sound
organization & effective control, management enables a concern to reduce cost and
enables an enterprise to face cut-through competition.
Increased Profits
Profit can be increased in any organization either by increasing the sales or reducing
cost. Management by reducing cost increases the profit & provides opportunities for
future growth & development.
Smooth running of business
Management ensures efficient and smooth running of business through better
planning, sound organization, effective control and the various tool of management.
Provide Innovation
Management provides new Ideals, imagination and illusion to the organization.
Change of growth
An enterprise operates in a changing environment. Management moulds not only the
enterprise but also altars the environment itself to ensure the success of the
business. In order to meet the challenge of automation and the complexities of
advanced technology also there is a need for the development of management.
Social Benefits
Management is beneficial not only to the business enterprise but to the society as a
whole. It raises the standard of living of the people by providing good quality products
and services at the lowest possible cost. It also makes the optimum use of scarce
resources & promotes peace & prosperity in the society.
Special importance of Management in India's Developing Economy
Management has to play a more vital role in the developing countries, like India
where productivity is low and the relevance limited. It has been rightly said, " There
are no under-developed counties. There are only under managed one’s."
Line Example
Microsoft. In the recent past worlds leading Giant software co Microsoft was taken to
court on some capital issues. If the co. lose the case they might have to pay half to
their capital to the court, but they adopted such strategy that they won the case &
then management help the company to survive in the changing world.
Explain motivation and its characteristics.
In an organization management has to coordinate various factors of production in
such a way that each factor contributes to its maximum efficiency to achieve
organizational goals. So far as non-human factors ie. Materials, machines etc. are
concerned their efficiency depends largely upon the type of technology followed by
the performance levels of human factors, who handle and control non-human factors.
Thus to make total factors efficient and effective, one has to improve the
performance level of human beings in the organization. Their performance is
determined by two factors i.e. level of ability to do certain work and second is level of
motivation.
Further, these two factors are to be multiplied rather than added. This can be
expressed as Performance = Ability X Motivation
Thus performance level will be high if both of these are high if a worker is very
capable of doing certain things but he is otherwise not willing to do the work his
performance level would not be high while ability to do is governed by education and
training, willingness to do can be effected by the factors governing human behavior in
the organization.
Motivation has come from motive wheels are expression of human needs by a
human being. In fact the activities of human beings are the cause and behind every
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action, there is particular motive or need. The need can be defined as feeling of
lackness for something and human beings this activities together lackness removed
satisfaction. Here, we can differentiate between needs and wants, needs are more
compression and include desire physiological or psychotically, wants are expressed
in narrow sense and include only those deserves for which a person has money and
also the decision to spend money for satisfaction. These are many psychological
needs etc to get status in the organisation which do not come under the categories of
wants. Thus human behavior activates is caused by motives or needs. And
motivation is the process of inducing person to experience needs for certain desired
behavior so that organizational efficiency is achieved. Various persons have defined
motivation in their own words. However the basic contents are the same e.g. Scott
has defined motivation as follows. “Motivation means are process of stimulating
people to action to accomplish desired goals " As against this, Mc Forland has
defined as
"Motivation refers to the way in which urges, drives, desires,
aspiration, aspirations, need, direct control or explained the behavior of human
behavior
Characteristics of Motivations
1.
Motivation is an internal feeling. Needs are feeling in the mind of a
person
that he lacks certain things. Such feelings affect the behavior of the person.
Motivation is a psychological phenomenon, which generates with in individual.
2.
Motivation is the product of anticipated value from an action and the perceived
probability that these values will be achieved by the action. The anticipated
values is called valence and it is defined as the strength of a person's
performance for one outcome in relation to others. The perceived probability is
called 'expectancy' and it is defined as the strength of belief that a particular act
will be followed by a particular outcome. Thus motivational relationship can be
expressed in the following formula
Motivation= Valence X Expectancy
3)
Person in totality, not in part, is motivated. Each individual in the organization is
a self contained and inseparable unit and his needs are interrelated. These
affect the behavior in different way. Moreover feeling of needs is a continue
process as such these continuing in human behavior.
How for motivation help in increasing efficiency of organization? Differentiate
elf-motivation and management induced motivation.
Motivation helps increasing organisational efficiency in following ways
(Importance of Motivation)
Motivation is one of the most important factors determining organizational efficiency.
All organizational facilities will go waste in the lack of motivated people to utilize
these facilities effectively. Every superior in the organization must motivate his
subordinate for right types of behavior.
1. High performance level. Motivated employees put higher performance as
compared to other employees. In a study by William James, It was found that
motivated employees worked at close to 80-90% of their ability. The high
performance is almost for an organisation being successful and this performance
comes by motivation.
2. Low employee turnover and absenteeism. Motivated employees stay in the
organisation and their absenteeism is quite low. High turnover and absenteeism
create many problems in the organization. Recruiting training and developing
large no. of new personnel into a working terms take years. In an competitive
economy, this is also an impossible task.
3. Acceptance of Organizational Changes. Organizations are created in the
society. Because of changes in society -changes in technology, value system etc.
Organisation has to incorporate those changes to cope up with requirement of
the time when these changes are.
Thus the motivation is an eminent factor in management process.
PRINCIPLES & PRACTICE OF MGT.
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Difference between Self Motivation and management induced Motivation is as
follow.
Self-Motivation. It can be defined as the ability to persist in the face setbacks and
failures. Self-motivation is affected by the needs, motives, past experience, current
psychological needs and his attitude. Self-motivation is a general term i.e. It totally
depends on the ambition of the person. If he need something he will motivate himself
to that thing without any others interference self motivate also depends upon the past
experience i.e. he has failed in past he will be motivated to be successful and he will
want hard in that direction. In nutshell we can conclude that self-motivation is an
internal feeling unaffected by the desires of others.
Management Induced motivation
Management induced motivation is the process that account for an individual’s
intensity, direction and persistence of effort towards attaining a goal. In general
motivation is concerned with effect toward any goal but in this motivation. It is
organizational goal in order to reflect single work behavior. Motivation is an effective
instrument in the hand of managers for inspiring the work force & creating a
confidence in it. By motivating the workforce management creates " will to work "
which is necessary to achievement of organization goals. In net shell we can say that
motivation is the tool of management.
Q13. Explain briefly various types of plan.
Ans. The plans may be classified as follows .
Plans
Standing / Repeated use plan
Single use plan
-Objectives
- Programme
-Policies
-Budget
- Procedures
-Rules
-Strategies
Standing Plans
1. Objectives. Objective are the ends for the achievement of which managerial
activates are directed –effective management is possible only through the setting up
of objectives and all managerial efforts should be directed to achieve these objective
constitute the purposes, the attainment of which is necessary for the business. An
organisation can grow in an orderly way if well-defined goals have been set.
Objective is a pre-request for planning. No planning is possible without setting up of
objectives. Objectives are not only helpful in planning but also in other managerial
functions like organisation, directing and controlling. Clear out objectives help in
proper decision-making and in achieving better results. Profit earning was considered
to be the only objectives of the business in the recent past. But it is no longer true.
No doubt, profit is the main objective of a business concern but it is not only
objective. The awareness of social responsibility has exploded the myth of profit
objective.
Characteristics of objectives
1. Hierarchical pattern
2. Objectives are inter-related.
3. Objectives are multiple in natures.
4. Objective may be realistic and operational
5. Objectives may be long-term or short term.
2. Policies
Policies are the general statements, which are formulated by an organization for the
guidance of its personnel. The objectives are first formulated and then policies are
planed to achieve them. Policies are made of thought and the principle underlying the
PRINCIPLES & PRACTICE OF MGT.
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activities of an organization. Policies do not require action, but are intended to guide
managers in their decision commitments when they do make decisions. Policies.
Provides a framework within which person has freedom to act.
The objectives are the goals and the policies are the way to achieve them. The
objectives are the end points of planning and policies prescribe the broad ways for
achieving them. Policy goals guidelines and leaves scope for interpersonal for the
person implementing them. A rigid policy becomes a rule.
According to George R Terry
"Policy is a verbal, written or implied overall guide setting up boundaries that supply
the general limit and direction in wherein managerial action will take place."
3. Procedures
Procedures are details of actions or the guidelines for achievement of business
objective. Procedures give details of how things are to be done. No room is left for
judgment. These should help in implementation of policies. Procedures also
determine the policy of responsibility. Procedures should be distinguished from
policies. A procedure is a guide to action where as a policy is a guide to thinking
policies and guideline for taking decisions and procedures consist of various methods
to accomplish each phase of work. Policies offer scope for interpret in order to see
that they fit in a particular situation where as procedures are tailor -made and do not
offer any scope for interpretations for the person implementing them. This means that
a policy has the flexibility for interpretations. A rigid policy becomes a rule.
According to Koontz and O’Donnell
"Procedure is a series of relative tasks that make up the chronological sequence and
the established way of performing the work to be accomplished”.
4. Rules
A rule is a plan that lays down required courses of action with regard to a situation. A
rule is in the nature of decision made by management regarding what is to be done
and what is not to be done in a particular situation. A rule is definite and original and
always no deviation to the subordinate. Like procedures, rules do not follow a
chronological sequence of steps to be taken to achieve a given objective. A rule may
or may not be a part of the procedure. A rule such as No Smoking in the factory will
not form a part of procedure. On the other a rule to make payment with in 21days
will be part of a procedure.
5. Strategies
A strategy is a technique of own maneuver the opponent. A planner should see the
plans and policies of his competitions and then modify or readjust his plan. So that he
may provide the superiority of his product or service.It is difficult to distinguish b/w
policies and strategic, sometimes both are used interchangeably. A strategy is a
policy in the respect that it is a broad guide to thinking but a strategy is a particular
kind of policy.
SINGLE USE PLANS
Programme.
A programme is a sequence of activities designed to implement policies and
accomplish objectives. It is devised to meet a particular situation. Programme may be
taken as combination of policies, procedures, rules, budgets, tasks assignment etc.
developed for the specific purpose of carrying out a particular course of action.
Programme is prepared for accomplishing different tasks. The same programme may
not be used for achieving other goals. It is a single use plan lay down for new and
non-repetition activates.
Budgets
A budget is the monetary expression of business plan and policies to be used in the
future period of time. The term budgeting is used for preparing budgets and other
procedures for planning, co-ordination and control of business.
PRINCIPLES & PRACTICE OF MGT.
Q14.
Ans.
Q15.
Ans.
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According to George R. Terry
"A budget is an estimate of future needs answered according to an orderly bases
covering some or all of the activates of an enterprise”.
Explain the steps in the process of planning.
The vario9us steps involved in the process of planning are.
Steps in planning
Planning process involves the setting up business objectives and allocation of
resources for achieving them. Planning determines the future course of action for
utilizing various resources in a best possible way. It is combination of information
handling and decision making system based on information inputs, outputs &
feedback loop. Following steps are taken in planning process.
Recognizing Need for action. The first step in planning process is awareness of
business opportunity and the needs for taking action. Present and future opportunity
must be found so that planning may be undertaken for them. The trend of economic
situation should also be visualized.
Gathering Necessary Information. Before actual planning is initiated relevant facts
and figures are collected. All information relating to operations of the business should
be collected in detail.
Laying Dawn Objectives. Objective are the goals which the management tries to
achieve. The objectives are the end products and all energies are divided to achieve
these goals. Goals area thread which bind the whole company. Planning stands with
the determinative of objectives. The tie b/w planning and objective helps employees
to understand thin duties. Objectives are the guides of employees.
Determining planning Premises. Planning is always for uncertain future. Through
nothing may be certain in the coming period but still certain assumption will have to
be made for formulating plAns. Forecast is essential for planning even if all may not
prove correct. Forecast will generally be made the following.
a)
The expectation of demand for the products.
b)
The likely volume of production
c)
The anticipation of cost
Examining alternative course of action
The next step in planning will be choosing the best course of action.
Evaluation of action pattern
After choosing a course of action, the next step will be to make an evaluation of
those courses of action. It involves the study of performance of various actions
Implementation of plan
The last step in planning process is the implementation. The implementation will
require establishment of policies, procedures, standards and budgets.
Define Management, what is nature of Management.
“Management is art of getting things done through others”. Management can be
defined alternatively in three different ways.
1. Management as discipline
2. Management as a group of people
3. Management as a process
1. Management as a discipline. - Refers to a field of study having well defined
concepts and principle. So it is both science and art.
2. Managements as group of People. - Refers to all these personnel who perform
managerial functions in organizations. E.g. Manager and subordinated.
3. Management as a Process. - Refers to systematic met hoed of handling activities.
In Nutshell “Management is Process which involves planning, organizing,
staffing, directing and controlling human efforts to achieve stated objectives in
organization.
Nature of Management. 1. It is multidisciplinary in nature. (Takes help from different disciplines line
economics, Psychology, operation research Sociology).
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2. It has principle of dynamic nature. (I.e. principle changes with the change in the
situation and environment)
3. Management is science and Art both.
4. Management is a profession.
5. Management is a process of organized activities.
6. Management sets the relationship among the resources.
7. Managements principles are relative (i.e., change with the change in
organization) not absolute (rigid) in nature
8. Management principles are univocally applicable with little modification.
Contribution of Henry Fayol to development of Management thought.
Henry Fayol was French industrialist; He has given contributions in the field of
management.
Fayol has divided the activities of an Industrial Organization into six groups. These
are.
1.
Technical (relating to production)
2.
Commercial (Buying, selling and exchange)
3.
Financial (search for money and its use capital)
4.
Security (Protection of properties and person
5.
Accounting (Book keeping)
6.
Managerial (planning, organizing, directing Co ordination)
7.
Staffing & controlling
Besides this he had given principles of Management
Q17.
Ans.
1.
Division of work
2.
Authority and responsibility
3.
Discipline
4.
Unity of command
5.
Unity of direction
6.
Subordination of Individual to general interest
7.
Remuneration of personnel
8.
Centralization
9.
Scalar Chain
10.
Order
11.
Gravity
12.
Stability of Tenure
13.
Initiative
14.
Esprit de corps (Unity is Strength).
Explain the term planning and its various features.
Planning is thinking in advance about future”. Planning is a process which involve
determination of future course of action
Planning tells what is to be done
How it is to be done.
Who will do it
When it is to done
Why it is to be done
Steps of Planning
1. Setting up of objectives
2. Establish the planning premises (planning assumptions, the expected
environment and internal conditions).
3. To identify the different alternatives
4. Evaluate the alternatives
5. Choice of alternative
6. Formulation of supporting plans
7. Establish the sequence of activities
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Features of a good Plan
1. It should be linked to long term objective
2. It should provide diction for action
3. It should be consistent
4. It should be feasible
5. It should be clear
6. It should be in writing
7. It should be flexible
8. It should be tutor made to organization
9. It should be communicated to all.
Define policy, its characteristics. On which basis policies can be classified.
Meaning. “Policy is a verbal, written or implied overall guide setting up boundaries
that supply the general limits and direction in which managerial action will take
place.”
Policies are specific guidelines and constraints for managerial thinking on decisionmaking and action. They provide the framework within which the decision makers are
expected to operate while making organizational decisions. As such, they are the
basis of executive operations. They are the planned expression of the companies
official attitudes towards the range of behavior within which it will [permit or desire its
employees to act. But they provide scope for interpretation. They are guides to
thinking and lead to consistent decisions at some future point of time. The purpose of
policy formulation is as under.
1.
To ensure that there will be no deviation from planned course of action.
2.
To ensue consistency of action
3.
To provide a guide for thinking in future planning
4.
To leave scope for interpretation.
Policies may be of different types.
1.
Originated Policy. the top managers formulate these policies. Such
policies tell subordinates how to act in a given situation. These policies
have the support of organization authorities and subordinates can be
asked to follow them strictly. Thus, they are basic policies.
Policies
On the basis
of sources



Originated Policies
Appealed policies
External Policies
On the basis
of functions




Production Policy
Financial Policy
Credit Policy
Personnel Policy
On the basis
of level



Basic policies
General Policies
Departmental Policies
2. Appeal policy. When a subordinate is doubtful whether he has sufficient authority
to handle a situation, he may seek their verdict of a superior. Superior’s verdict
generates what is known as appealed policy, which becomes wide to subordinate
action in future.
3. External Policies. Such policies that are imposed upon business some external
agencies like trade unions, government or industry associations, etc. are called
external policies.
4. Functional policies. Functional policies refer to there policies, which are prepared
for various functional areas of management. Production Policy, product policy,
financial plan, personnel policy, industrial relations policy are some examples of
such policies.
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5. Policies according to organizational levels. On this basis policies may be divided
into three parts.
1.
Basic policies to be used by the top managers.
2.
A general policy to be used by the top manages.
3.
Departmental policies to be used foremen and group-leaders etc.
What is BCG model? Or what is Portfolio matrix?
The BCG matrix compares various businesses in an organization’s portfolio on the
basis of relative market share and market growth rate. Relative market share
determined by the ratio of a business’s market share (in terms of unit volume)
compared to the market share of its largest rival. Market growth rate is the growth in
the market during the previous year relative to growth in the economy as a whole.
The combinations of high and low market share and high and low business growth
rate provide four categories for a corporate portfolio. (Hedley, Naylor).
High
Stars
Question
Marks
Cash
Cows
Dogs
Market
Growth
Rate
Low
High
Low
Relative Market
Share




Stars. SBUs that are stars have a high share of a high-growth market and typically
require large amounts of cash to support their rapid and significant growth. They
have additional growth potential and so, profits should be ploughed back into this
business for future growth and profits.
Cash cows. SBUs that are cash cows (provide lot of cash of the firm) have a high
market share of a slowly growing market. As a result, they tend to generate more
cash that is necessary to maintain their market position. Cash cows are often former
stars ad can be valuable in a portfolio because they can be ‘milked’ to provide cash
for other riskier and struggling business.
Question marks (problem child or wild cat). SBUs that are ‘question marks’ have a
small share of a high growth market. The question mark business is risky, since there
is already a market leader in that business. As such, it requires lot of funds to invest
in plant, equipment and personnel, in order to keep pace with the fast-growing
market. The term question mark is well conceived, because ate every stage the
organization has to think hard about whether to keep investing funds in the business
(to turn it into a star) or to get out.
Dogs. SBUs that are ‘dogs’ have a relatively small share of a low –growth market.
They may barely support themselves, or they may even drain cash resources that
other SBUs have generated. Usually, dogs are harvested, divested or liquidated (if
turnaround is not possible).
After the SBUs of an organization have been plotted on the growth-share matrix, the
next step is to evaluate whether the portfolio is healthy and well balanced. A
balanced portfolio; obviously has a number of stars and cash cows and not too many
questions marks or dogs. Depending on the position of each SBU, four basic
strategies can be formulated while building a balanced portfolio.
PRINCIPLES & PRACTICE OF MGT.
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


Q20.
Ans.
18/52
Heavily invest in stars. High market share and high industry growth mean higher
probability of future success.
Maintain cash cows because they provide resources of future growth-investment in
wild cats and stars.
Use selective resource allocation for wildcats to convert them into stars.
Liquidate or divest dogs that are not worth, investing in to improve their position.
What are the techniques used in forecasting?
Techniques of Forecasting
The various techniques of forecasting may be classified into two major categories.
1. Quantitative and
2. Qualitative.
Quantitative techniques apply various statistical tools to data for predicting future
events. They include Time Series Analysis, Regression Analysis, Econometric
Models and Extrapolation. Qualitative techniques employ mainly human judgment to
predict future such as Historical perspective (business barometers), Panel
Consensus, Delphi Method and Relevance Tree Method. These methods are used
where data is not readily available. For instance, quantitative methods cannot be
used to forecast technological environment.
A brief discussion of various quantitative and qualitative methods of forecasting is
given below.
1.Time Series Analysis. Time series analysis assists to identify and explain.
i. Any regular or systematic variation in the serious of data which is due to some
seasons; and
1. Cyclical trends that repeat every two or three years or more.
With the help of time series analysis, a trend line can be fitted (by using the method
of least squares) which is the best indicator of the trend. Time series analysis
provides an initial approximation forecast that task into account the empirical
regularities, which may be expected to persist. After the seasonal effects have been
identified and measured, the original data may be adjusted for these influences,
yielding a new historical time series consisting of the trend and seasonally adjusted
data. The new time series may be used in the analysis and interpretation of cyclical
and residual influences. This method has certain limitations also. Since the future
does not always reflect the past, the time series analysis may give misleading results
in some cases. Moreover, this method can be used only when data of several years
are available.
2. Regression Analysis. Regression analysis is the means by which we can select
from among the many possible relationships between different variables, which are
relevant to forecasting. If two variables are functionally related, then the knowledge of
one will make possible an estimated of the other. For instance, if it is known that
advertising expenditure and sales are correlated, then we can find out the probable
increase or decrease in sales with the given increase or decrease in the advertising
expenditure. Regression analysis also helps in forecasting where there is one
dependent variable and several independent variables. The help of computer
programme may be sought to solve the regression equations that are very complex
and time consuming.
3. Econometric Models. Econometrics refers to the application of mathematical
economic theory and statistical procedures to economic data in order to verity
economic theory and statistical procedures to economic data in order to verify
economic theorems and to establish quantitative results. Econometric models take
the form of a set of simultaneous equations. The number of equations may be very
large in some cases. So the help of electronic data processing equipment may be
sought to solve these equations. It is also significant to point out that the
development of an econometric model requires sufficient data so that he correct
PRINCIPLES & PRACTICE OF MGT.
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relationships can be established. The econometric models reveal, in quantitative
terms, the way in which various aspects of a problem are interrelated.
4. Extrapolation. This technique is used frequently for sales forecasting and other
estimates when other forecasting methods may not be justified. It is the simplest
method of forecasting. In many forecasting situations, it can be expected more
reasonably that the variable will follow its already established path. Extrapolation
assumes the relative consistency in pattern of past movements in some time series.
IF this assumption is taken, the problems to determine accurately appropriate trend
curve and the values of its parameters. Numerous trend curves are suitable for
business forecasting. The include arithmetic term, semi-log trend, modified
exponential trend, logistic curve, etc. Selection of an appropriate curve depends on
empirical and theoretical considerations relevant to the forecasting problem.
5. Historical perspective (Business Barometers). Historical perspective
technique uses business barometers to make business forecasts. The term
‘barometer’ is used to indicate the economic situations. The assumption behind the
use of business barometers, i.e. various indices, is that past patterns tend to repeat
them in the future and that the future can be predicted with the help of certain
happening of the present. The various barometers, which can be used in forecasting,
include gross national product, wholesale prices, consumer’s prices, industrial
production, volume of money supply, stock exchange quotations, etc. Some of these
index numbers may also be combined into a general index of business activity. The
general index refers to general conditions of commerce and industry. However, this
composite index may show quite contrary tendencies from those of some of its
components. So proper care must be taken while using the index numbers for
business forecasting. If the business barometer being used is reliable, it will reduce
the chances of wrong forecasting.
6. Panel Consensus Method. Under this method, data is presented openly to a
group of experts. The list of experts related to particular problem area is prepared
with great care and the experts are brought together to have a face-to-face
discussion and arrive at a consensus forecast. Such a forecast is expected to prove
better as compared to a forecast made by one expert. Several experts can determine
a better forecast than one working along.
7. Delphi Method. This method enjoys respectability due to its scientific minds of
the people who possess the necessary expertise in the pertinent or related areas.
Under this method, a panel of experts related to a particular problem area is
prepared. Instead of bringing these experts together to have a face-to-face
discussions, they are kept apart and their identity is kept secret from one another.
This is done to prevent experts from being influenced by others and to eliminate the
possibility of the emergence of a bandwagon mentality. The opinions of the experts
are solicited by electing their response to a carefully prepared questionnaire. The
answers collected are studied carefully to separate the answers to questions on
which a general consensus has emerged. The expert who have differed with majority
opinion are fed back the results of the first round of survey and are requested to
communicate the reasons for their divergence. Similarly, in the case of such
questions on which wide diffidence of opinion has surfaced, the same processes are
employed to narrow down the differences. The process of successive feedbacks and
seeking of opinions continues until the experts re-evaluated their estimates and a
better convergence of opinion emerges or at least the scatter of opinions gets
narrowed. The final results are taken as the forecasts. It should be noted the Delphi
method would not give only one answer in all the cases.
8. Relevance Tree Method. In its normative application, the purpose of the
relevance tree method is to help the business in determining objectives and
predicating ways to attain them. According to this method, the feasibilities of the
future objective is judged first of all, and they by working backwards, attempt is make
to find the technological
PRINCIPLES & PRACTICE OF MGT.
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Ans.
20/52
9. innovations needed to achi8ved the objective. In its exploratory application, the
relevance tree method is similar to the decision tree method of decision-making. It is
used to develop alternatives and to determine the most desirable course of action.
Explain the theory x theory y of motivation.
McGregor has given the theory of motivation called theory X Theory Y. These are
based on two distinct viewpoints of human beings. Theory X deals with one extreme,
based on one set of assumptions and Theory Y, deals with other extreme based on
other set of assumptions These theories are not based on any research, but
according to McGregor, these are intuitive deductions.
Theory X
Theory X emphasis on management by direction and control. It states that people are
lazy, avoids responsibility, dislike work and will avoid work and shirk responsibility.
They should be forced to perform work. Management must punish them if they avoid
work, and give reward if anyone performs work upto standards. Assumptions of
Theory X are.
1. The average human beings inherently dislike work and will try to avoid it, wherever
possible.
2. Employees must be controlled, coerced, threatened with punishment to achieve
goals, to which they are indifferent.
3. Employees have little ambitions so try to avoid responsibility and seek formal
directions.
4. Most workers place security above all other factors associated with worker.
Theory Y
Theory Y emphasis on cooperation between management and employees. It States
that people take work as play, they like work, people are optimistic, self-directed.
Therefore people if are satisfied, then they will perform better. They can be motivated
by delegation of authority, job enlargement, and workers participation. Assumptions
of Theory Y are.
1. Human beings do not inherently dislike work. He can view work as natural and
enjoyable.
2. Employees are committed to objectives and exercise self-control and self-direction
for their attainment.
3. They can learn and can even seek responsibility, if provided with proper working
conditions.
4. Commitment to objectives is a function of rewards associated with achievement.
5. All people are capable of making creative and innovative decisions.
PRINCIPLES & PRACTICE OF MGT.
Section – B
[QUESTIONS 1 TO 20]
Q1.
Ans.
Q2.
Ans.
Q3.
Ans.
Q4.
Ans.
Q5.
Ans.
Q6.
Ans.
Q7.
Ans.
Q8.
Ans.
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2 Marks Questions
[PAGE 21 TO 23]
What is the Programmed Decision?
They are the routine decisions or structured decisions or familiar decisions, which
are taken in day-to-day working of an
organization. Programmed decisions are
repetitive in nature and are easy to made. They are related to choose problem, which
comes in routine, and are repetitive in nature.
What is delegation of authority?
To delegate means to grant or confer. Delegation of authority means conferring
authority from one manager or organisational unit to another in order to accomplish
particular assignments. It is one of the important factors of organising. Delegation of
authority may be scientific or general.
What is Feed Forward Control?
It includes the evaluation of inputs and taking corrective action before a particular
sequence of operation is completed thus averages the limitation of time lag in taking
corrective action.
What is a decision tree?
Decision tree involves a series of steps. Second step will be taken depending upon
the outcome of the first step. Third step will be taken on the outcome of the second
step. Decision tree solves the problem of uncertainty in Business.
To make a decision tree, it requires definition of alternatives, estimation of probability
for each event, calculation of expected result from an action.
What is Brain Storming?
Brainstorming is a technique to stimulate idea generation in a group. One problem is
being given to the whole group. Group has member’s upto 8-10 person. They discuss
that problem and generate the ideas related to that problem. Then afterwards idea
evaluation’s done.
What is the role of creativity in decision-making?
Creativity is an innovation, creating something new creation of a new idea, a new
method, creation of a new process. Creative thinking is a process of bringing a
problem before one’s mind clearly by imagination. Then converting that imagination
into an idea, a concept, and then bringing that idea or concept into action creativity in
decision-making is necessary because it helps in solving problems. It is required to
develop alternative to a problem, then choosing the best possible alternative.
Define the term MIS.
Management Information system (MIS)
Management Information system (MIS) is an approach of providing timely adequate
and accurate information to the right person in the organization, which helps in taking
right decision. So MIS is a planned and organized approach to the transferring of
intelligence within an organization for better management.
MIS is of two types
(i)
Management operating system meant for meeting the information needs of
lower level and middle level management.
(ii)
Management reporting system that supplies information to top-level
management for decision-making.
Define the process of delegation of authority.
The process of delegation of authority can be completed only by the following step.
a.
Determination of Result Expected
b.
Assignment of duties
c.
Authorization for action
d.
Creation of obligation
PRINCIPLES & PRACTICE OF MGT.
Q9.
Ans.
Q10.
Ans.
Q11.
Ans.
1.
2.
3.
4.
Q12.
Ans.
Q13.
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Q14.
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What is Benefits of Decentralization?
Decentralisation is delegation of authority by the top management (i.e. owner) to the
Middle and lower Management (i.e. subordinates).
Benefits of decentralisation are. 1. It reduces the burden of top management.
2. It Motivates the managers
3. It facilitates the Horizontal growth of organization
4. It helps to know the probability to each & every individual unit.
What are non-programmed decisions?
Non-programmed decisions are related to uncommon, unusual and unique problems.
Some situations in business are uncertain, unpredictable, and the results of this
situation are also not known in advance. For these situations the non-programmed
decisions are taken, ie. the decisions that are taken spontaneously (on the spot
without prior planning).
What are Decision Trees?
Decision trees are one of the operations research tools that can be used to assist
management in making decisions under uncertainty. We will consider the situations
that involve.
A decision maker who has finite number of courses of action available.
A finite number of possible outcomes or states of nature for each action
A loss that is incurred for each ‘action-state of nature’ combination.
The decision maker would naturally like to choose an action that would minimize
loss, regardless of the actual state of nature. However, this rarely ever realized.
What are the steps in the decision-making process?
A Decision is a judgment, a final resolution of some problem. A manager does
decision-making and it shaves the response of the organization to some problem or
situation steps of Decision-making are. 1. To specify the objectives or goals
2. To identify the difficulty or problem
3. To search for different alternatives
4. To Evaluate different alternative
5. To choose the best alternate
6. To take the action
7. To evaluate the result.
Discuss the concept of organisation.
The term organisation is used in many ways and in each way; the users use it in a
specific reference. The classicists have used the term organisation in the form of
organising, which is part of management process. Presently the term organisation is
used in following ways.
a. as entity
b. as group of people,
c. as structure, and
d. as process.
According to Prof. Haimann, “Organisation is a process of defining and grouping the
activities of the enterprise and establishing the authority relationship among them.
What are the demerits of Line Staff organisation?
Line and staff organisation suffers from the following drawbacks.
(i) There is generally a conflict between the line and staff executives. Line managers
feel hat staff specialists do not give always-right type of advice and staff officials
generally complain that their advice is not properly attended to.
(ii) The allocation of duties between the line and staff executives is generally not very
clear.
(iii) Since staff men are not accountable for results they may not be performing their
duties well.
(iv) There is wide difference between the orientation of the line and staff men.
PRINCIPLES & PRACTICE OF MGT.
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What are rules of brainstorming?
Following are the four rules of brainstorming.
1. Freewheeling is encouraged. Group members are advised to offer any and all
ideas they have.
2. Criticism is discouraged. Don’t discourage during the initial stage of idea
generation.
3. Quantity of ideas is encouraged. Managers should try to generate and write down
as many ideas as possible.
4. Combination and improvement of ideas is pursued. Group members are advised
to “piggyback” onto the ideas of others.
Distinguish between authority and responsibility.
Responsibility is the obligation of a subordinate to perform a duty, which has been
assigned to him. Thus obligation is the essence of responsibility. Authority is
generally a result of the contractual arrangement under which the subordinate has
agreed to perform certain services in return for a monetary reward. In this sense,
authority is flows from the superior to the subordinate manager to certain duties are
assigned and responsibility is the obligation of the subordinate to accomplish these
duties. Responsibility can be discharged by a single action or it may be a continuous
obligation.
Why subordinates are reluctant to accept authority?
The subordinates are reluctant to accept authority because of the following reasons.
1.
Lack of self-confidence.
2.
Desire to play safe by depending upon the boss for decisions.
3.
Fear of committing mistake and being criticized by the boss.
4.
Lack of incentives.
5.
Overburdened with work.
What is span of management?
The concept of span of management refers to the number of subordinates that a
supervisor can supervise effectively. This idea is central to formal organisation theory
because traditional principles greatly emphasize coordination exercised through the
superior at the top. It states that no single executive should have more people
looking to him for guidance and leadership that can reasonably be expected to serve.
What are the advantages of line organisation?
The merits of line organisation are as follows.
1.
It is easy to establish.
2.
The employees can easily understand it.
3.
It facilitates the unity of command.
4.
There is clear-cut identification of authority and responsibility relationship.
5.
It ensures excellent discipline in the enterprise.
6.
It facilitates prompt decision making because there is definite authority at
every level.
What is creativity?
Creativity is development of something new, that has been never existed before. It
can be as simple as developing a new flavor of ice-cream store, or as developing a
pocket size microcomputer. Creativity involves making remote associations between
unconnected events, ideas, information stored in memory, or physical objects. There
are five stages of creative process. These are.
1.
Preparation.
2.
Cooperation
3.
Institution
4.
Illumination
5.
Verification
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Section – B
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5 Marks Questions
[PAGE 24 TO 38]
Explain the Theory Z.
The Type Z model, as argued by William Ouchi in 1981, is an attempt to integrate
common business practices in the United States and Japan into a single middleground framework. Ouchi suggest that there are many traditional U.S. firms (which
he calls Type A companies) and a similar set of traditional Japanese companies
(Type J). He argues that these firms are difference along seven important
dimensions. (1) length of employment, (2) mode of decision making, (3) location of
responsibility, (4) Speed of evaluation and promotion, (5) mechanisms of control, (6)
specialization of career path, and (7) nature of concern for the employee. For
example, some Japanese firms are characterized by lifetime employment
opportunities and collective decision making, whereas their American counterparts
offer short-term employment and rely on individual decision making.
Theory Z is not a contingency theory of management. Ouchi suggested that this style
of management is universally better than he traditional American approach and
prescribes Theory Z as appropr4iate for almost any management situation. In fact, in
many ways, Theory Z reflects a return to the outdated “one best way” thinking of
behavioral management theory. In the tradition of behavioral management, Theory Z
identifies employs as a key component of organizational productivity and
effectiveness. It prescribes how employees “should be’ managed so that
organizational efficiently and effectiveness implement and a concern for employees’
total life.
Theory Z is not a complete theory. It does not, for example, fully explain process
thorough, which the prescribed management practices are expected to create an
effective organization. Nevertheless, Ouchi’s work has again heightened U.S.
managers’ awareness of the variety of management’s techniques that can be
effective under particular circumstances.
Explain the terms authority, responsibility and delegation of authority. What
are the features of delegation of authority?
Before defining the 'delegation of authority', it is necessary to know the meaning of
word 'authority ' and responsibility.
Authority. -According to Simon
"Authority may be defined as the power to make decisions, which guide, the action of
another. It is a relationship b/w two individual one supervisor, another subordinate,
the superior frames and transmits decision that will be accepted by the subordinate.
The subordinate executes such decision and his conduct is determined by them"
Responsibility
Responsibility is the obligation to do something. It is the duty that one has to perform
in organizational tasks, functions, or assignments. Authority and responsibility go
side by side. When authority is delegated then some responsibility go side by side
when authority is delegated then some responsibility go side by side when authority
is delegated then some responsibility for getting the assigned task is also fixed.
According to knots and O' Donnel
"Responsibility is defined as the obligation of a subordinate to whom a duty has been
designed to perform the duty".
Delegation of authority
Delegation of authority is one of the important factors in the process of organization.
The real meaning of delegation of authority means getting things done through others
by giving them responsibility. Authority alone means some power but delegation
means to give this power some other person who is capable to do the right task.
Delegation of authority flow the top level to the bottom level always because top level
have the powers which is to be delegated to the lower level. By this type of authority
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assigned among the all levels of an organizational then the goal can be achieved
easily and any person feel free mind make more effort to achieve the common
objective and he delegates the authority to their subordinate for getting a particular
work done. In real since everyone wants some power, which is used while doing a
particular work.
There is a limit up to which a person can supervisor the subordinate when the
number of subordinate increase beyond it then he will have to delegate his power to
others who perform supervision for him. A manager is not judge by the work. He
actually performs on his own but the works he gets done through other. He assigns
duties and authority to his subordinate & issues the achievements of desired
organization goals.
Features of Delegation of Authority
1.
Delegation authorities a manager to act in a certain manner.
2.
Delegation has dual characteristics
3.
Authority once delegated can be enhanced reduced or withdrawn depending
on the situation and requirement.
4.
Delegation of authority is always to the position created through the process of
organizing.
5.
A manager delegates authority out of the authority vesting in him.
6.
Delegation of authority may be specific or general.
Explain the process of delegation of authority.
The process of delegation of authority is.
1. Determination of Result Expected
Authority should be delegated to a position according to the result expected from
position since authority is intended to furnish manager with a tool for so
managing as to gain contribution to the organizational objective. It is essential
that authority delegation to accomplish result expected. It implies that result
expected from each position have been identified properly. Therefore, the first
requirement is the determination of contribution.
2. Assignment of duties.
The second step is the assignment of duties to the subordinate. Duties can be
described in the ways. First these can be described in terms of an activity or set
of activities e.g. for selling activity to salesman according to this view delegation
involves assignment of their activities by a manager to subordinate. Second
duties can be described in terms of results that are expected from the
performance of activities e.g. how much sale is to be achieved by salesman.
Assignment of duties in terms of results expected works better. A man’s duties
will be clear to him only when he know what activities he must fulfill.
3. Authorization for action
The third step is authorization for action. This case involves the granting of
permission to take action like making use of resources and the other actions
necessary to get the assigned work done. This problem is essentially one of
determining the scope of authority to be delegated to each particular subordinate.
In the delegation process the manager confirms upon a subordinate the right to
act in a specified ways or to decide within the limited boundaries. The process of
delegation states out the boundaries of permissible action. Separating them from
actions, which are not permissible. A ground rule in this context is that the
scope of authority allocated to individual by the superior is inseparably linked with
activities allocated to them.
4. Creation of obligation
The fourth and the last one step is creation of obligation. The last aspect of
delegation is to create obligation on the part of subordinate for the satisfactory
performance of his assignment. A subordinate for the total activities assigned to
him and not only for the activities actually being performed by him .The sense of
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obligation required varies from the maintenance of responsibility by the superior
that the work performed must meet his expectations.
Explain the difference between decentralization and centralization.
The difference between decentralisation and centralistion is as follow.
Centralization
In an organization if the decision-making powers vest with one person at the top, it
will be called centralization. Centralization is a common occurrence in small
enterprises. The success of a small enterprise depends upon dynamic manager who
single headily commands the running of the concern. He takes all the decision
himself and entrusts only implementation to subordinates, there is a direct link
between the proprietor and his employees. He personally supervises all managerial
function of production, marketing financing etc. In fact he and organization are one
and same thing. He is consulted for every type of guidance and his counseling is
final.
Centralization is suited to small-scale enterprises. This is possible because the
operations are limited and proprietor is able to denote personal attention to every
activity of business. This type of management is useful where emergency decision is
to be taken. With the expansion of business, the control becomes difficult and the
need for decentralization.
Decentralization
Decentralization implies the dispersal of decision-making power at lower levels of
management. When the power to take decision and formulate policies, does not lies
with the person at the top but is passed on to different person at various levels, It will
be a case of decentralization. The decisions taken at lower levels should not only be
more in number but they should be less important also.
Decentralization is suited to. Large-scale enterprise. This is because in a big
concern there are large no. of decisions to be taken & It will not be possible for the
top management to take all the decisions. So the decision-making power is to gain to
the lower levels & help in taking decision in an large organization.
Explain methods (Types) of departmentation.
The methods of departmentisation are.
1)
Function wise departmentation
Production department
Marketing department
Finance department
HR department
2)
Product wise departmentation
Product 1 department (E.g. Bus)
Product 2 department (E.g. Van)
Product 3 department (E.g. Truck)
3)
Process wise departmentation
Spinning department
Dying department
Weaving department
Finishing department
4)
Time wise departmentation
Shift one department (9 - 2 pm)
Shift two department (2pm – 7 pm)
Shift three department (7 pm – 12.00)
5)
Customer wise departmentation
Wholesale department
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Detail department
Hire purchase department
Export department
(a) What are the advantages of delegation? (b) What are the reasons for lesser
delegation of authority by the delegator?(c) What are the ways to make the
process of delegation effective?
Delegation is to import or to give away delegation of authority that means to share
the authority. Manager gives away his author8uy and responsibility to the other
peers, subordinates, to get his work done from others.
(a) Advantages of delegation
1.
Managers responsibility and authority is distributed and its reduces his burden
of work
2.
As result of delegation the subordinate receives authority from his superior
and feels proud.
3.
Authority once delegated can be enhanced reduced or taken back from
subordinate depending upon the situation.
4.
It writes an obligation on the part of subordinate and makes him feel
responsible.
5.
Delegation facilitates the results expected from the position.
(b) The delegator (Manager) will delegate less authority due to the
following reasons.
1.
He lusts authority and doesn’t want to delegate it.
2.
He wants to maintain tight control
3.
He fears the growth of subordinate by delegating authority
4.
He does not want to reveal his short earning as manager by delegating.
5.
Negative attitude of subordinate also sometimes makes the manager feels
uncomfortable for delegation.
6.
Autocratic superior will not like to share (delegate) his authority, as it will end
his dictatorship.
7.
It is an the part of organization (Top level to make the environment and
surroundings (suitable) congenial to delegation.
(c) Delegation process can be made more effective by following ways.
1.
Make the delegator (Manager) feel secure
2.
Create the awareness for need of delegation
3.
Determine clearly what is task to be delegated and do the delegation with
proper planning
4.
Establish a conducive organizational climate
5.
Choose the subordinate wisely i.e. who is capable handle the authority in a
will mill manner.
Which factors highlight the Line and staff conflict? What are the ways to
resolve them?
Line and staff is relationship based as the assumption that line managers and staff
groups have conflicting objectives and different views to look over a situation.
The three important factors, which highlight this conflict, are. 1.
View point of line manager
2.
View point of staff Managers
3.
Nature of line staff relationship
Viewpoint of line managers
1.
According to line manager’s staff people lack responsibility but enjoy their
authority.
2.
Line Manager take staff people as threat to eliminate their authority and
position.
3.
Line Managers feel that staff people interface in their work.
Viewpoint of staff people
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1. Staff people feel that manager do not make their proper use, they ignore them.
2. Staff people feel that managers don’t take their ideas.
3. Staff people feel that they are not given proper authority.
Nature of staff-line relationship
1. Different back grounds of both
2. Different interest of line & staff
3. Lack of proper understanding.
Ways to restore the conflict
1. Co-operation between line and staff should be maintained
2. To understand the authority relationship
3. To make proper use of staff
4. To take suggestions from staff and give them proper authority.
Q8.
Ans.
What is rational decision-making process?
Steps in Rational Decision Making
A rational decision must be distinguished from an intuitive decision, which is bases
on hunch and past experience of the manager and so often lacks objectivity. A
rational decision is backed by a scientific process involving analysis of the problem,
collection of relevant data, review of key factors, evaluation of alternatives and choice
of best alternative. Such a decision could be justified on a logical basis and does not
suffer from the personal bias of the decision maker.
Rational decisions making involves the following stages.
1.
Diagnosing and defining the problem.
2.
Analyzing the problem
3.
Collection of data
4.
Developing alternatives
5.
Review of key factors
6.
Selecting the best alternative
7.
Putting the decision into practice.
8.
Follow up.
Diagnosing and Defining the Problem. .It is true to a large extent that a problem
well defined is half solved. A lot of bad decisions are made because the person
making the decision does not have a good grasp of the problem.
Analyzing the Problem. After clearly recognizing the problem, the next phase of
decision-making is the analysis of problem, which involves classifying the problem
and gathering information. Classification is necessary in order to know who should
take the decision and who should be consulted in taking it.
Collection of Data. A lot of information is required to classify any problem. So long
as the required information is not available, any classification would be misleading.
This will also have an adverse impact on the quality of he decision.
Developing Alternatives. After defining and analyzing the problem, the next step in
the decision making process is their development of alternative courses of action.
Without resorting to the process of developing alternatives, a manager is likely to be
guided by his limited imagination
Review of Key Factors. While developing alternatives the principle of limiting factor
has to be taken care of. A limiting factor is one, which stands in the way of
accomplishing the desired goal. It is key factor in decision making. If such factors are
properly identified, a manager can confine his search of alternatives to those, which
will overcome the limiting factors. In choosing from among alternatives, the more an
individual can recognize those factors which are limiting or critical to the attainment of
though desired goal, the more clearly and accurately he or she can select the most
favorable alternatives.
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Selecting the Best Alternative. In order to make the final choice of the best
alternative, one will have to evaluate all the possible alternatives. There are ways to
evaluate alternatives. The most common methods is through intuition.
The second way to choose the best alternative is to weigh the consequences of one
against those of the others.
Putting the Decision into Practice. The choice of an alternative will not server any
purpose it not put into practice. The manager is not only concerned with taking a
decision, but also with its implementation. He should try to ensure that systematic
steps are taken to implement the decision.
What are the steps in the decision-making process?
A Decision is a judgment, a final resolution of some problem. A manager does
decision-making and it shaves the response of the organization to some problem or
situation steps of Decision-making are. 1.
To specify the objectives or goals
2.
To identify the difficulty or problem
3.
To search for different alternatives
4.
To Evaluate different alternative
5.
To choose the best alternate
6.
To take the action
7.
To evaluate the result.
It is better to check the results after putting the decision into practice. The reasons for
following up of decisions are as follows.
1.
If the decision is a good one, one will know what to do if faced with the similar
problem again.
2.
If the decision is a bad one, one will know what not to do the next time.
3.
If the decision is a bad and one follows up soon enough, corrective action
may still be possible.
Elaborate the concept of span of management / supervision. Why is this
concept important?
Concept of span of management meaning of span:The term span literally means the space b/w two supports of a structure, e.g. the
space between two pillars of a bridge. The space between two pillars of bridge
should neither be too large nor too small. If it is too large, the bridge may collapse.
and if it is so small, it will enhance its cost.
Span of management- when applied to mgt. “span” refers to the number of
subordinates a manager can manage effectively and efficiently. Obviously, if the
number of subordinate placed under one manager is too large, it will become difficult
to effectively control them & the desired results cannot be achieved. On the other
hand, if number is too small, the time, energy and abilities of manager would not be
fully utilized. Span of mgt., supervision therefore refers to the optimum number of
subordinates that managers can manage effectively. The number of subordinates
who report to a supervision or superior has two important implications. –
(i) It is influential in determining the complexity of individual’s manager’s job.
(ii) Span of mgt. determines the shape or configuration of org., the fewer the no. of
people reporting to the superior, the larger the number of managers required.
Every person has limited capacity to effectively supervise and control other people,
manager cannot control beyond this limit. So, the number of subordinates reporting
to a superior should be fined which in any case can’t go beyond a certain limit.
Definition. In the words of Spiegel “Span of mgt. means number of sub-ordinates
reporting directly to an authority. The principle of span of mgt. implies that no single
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executive should have more people looking to him for guidance and leadership than
he can reasonably be expected to serve.”
Correctness of Title.
The span of mgt. is also known as span directions. However, the term span of
management appears to be more suitable as compared to its alternatives because a
superior is responsible which involve not total managerial activities.
Q11. What are the early ideas on span of management? How span of management
can be determined?
Ans. Early ideas on span of mgt.
Span of management is a traditional and older concept.
(1) An individual person was considered the head & he performed all the control
activities.
(2) He had responsibility to guide the subordinate& to lead them & subordinate were
responsibility to report to him.
(3) Earlier ideas on span of mgt. were not in any sense in favor of subordinates.
Subordinates were not given any authority they had only responsibility
(4) The executives control the activities in command sense.
(5) Wide span of management.
Determination of span of management.
No, doubt, mgt. thinkers agree that the span of management principle holds true but
they don’t agree on the number of subordinates that can be put under one superior.
(1)
Q12.
Ans.
The classical writers have suggested that number of subordinates should be
between 3 to 8 as ideal depending on the level of mgt. with lower the level of
management higher the number of subordinates.
(2)
Sir Ian Hamilton was in favor of narrow span consisting of no more than 6
subordinates working under managers to get work accomplished.
(3)
Graicunas has suggested the fixation number of subordinates based on
mathematical calculations. He has identified mathematical formula. He has
identified three types of relationships.
(a)
Direct single relationships. arises from the direct individual contacts of the
superior with his subordinates.
(b)
Direct group relationship. - arise between the superior and his subordinate in
all possible combination. Thus, superior may consult with his over or more
subordinates providing assistance.
(c)
Cross relationships. arise because of mutual interaction of subordinates
working under Common superior e.g. AB, BC, AC so on the
relationship is quite different b/w A&B than B&A from mgt. point of new. With
number of subordinates being n, the number of various relationships will be
as follows.
Direct Single relationship = n
Group relationship =n (2^n-1)
Cross relationships = n (n-1)
Total relationships = n (2^n + n-1)
2
This formula suggests that while the n number of o. of subordinates increase
in arithmetical progression & number of relationships in geometrical
profession.
Which factors influence the span of management?
Factors influencing span of management. Following factors influence the span of management.
(1) Capacity & ability of superior: The characteristics & abilities such as leadership administration capabilities,
ability to communicate to judge, to listen, to guide and inspire, physical vigor etc.
differ from person to person. Managers handing more capacity in respect of
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these factors can manage more no of subordinates in similar situation. More
over, the attitudes & personality of the manager also determine his span of
management.
(2) Capacity of Subordinates:
Capacity of Subordinates also affects the degree of span of management.
Efficient & trained subordinates may discharge their functions more efficiently
without much help of superior. They may just need broad guidelines & rest of
things can be performed by them .In such case they require lesser time from their
superior who will be in position to manage larger number of subordinates wider
span.
(3) Nature of work:
Nature of work affects degree of span of mgt different types of work require
different patterns of mgt & hence time from superior. If subordinates are
performing similar function they require less attention of their superior & span can
be wider. Rate of change in work also affects span of mgt with work with lower
degree of change facilitating higher span & work with higher degree of change of
change restricting span of mgt. this is so work with frequent changes requires
detailed instructions from the superior every time when there is change in work.
(4) Degree of decentralization:
Degree of decentralization or internalization affects span of mgt. by affecting the
degree of involvement of the superior in decision-making process. Thus higher
the degree of decentralization higher is the degree of span because they will
devote less time to manage subordinates on their own. In case of centralization
subordinates would require centralization consultation clarification & instruction
from their superior. This will require more time on part of superior & his span will
be narrow.
(5) Degree of planning:
Higher is the degree of plans i.e. clean &easily understandable the task of
supervision becomes easier &span of mgt. can be wider. On the other hand,
ineffective plans impose limits on the span of mgt.
(6) Communication Techniques:
The patters or media of communication affects the time requirement in managing
subordinates & consequently span of management. If communication is face to
face it requires more time on the part of both superior &subordinate. (Narrow
span). Communication with staff assistant &through the use of modern
communication tools like electronic devices will save lot of time &span can be
increased.
(7) Use of Staff assistance:
Staff assistance assist in reducing the work load of managers &enables them to
manage more number of subordinates. These staff personnel on behalf of
managers can discharge many of the man finical functions. This proc time f
managers &the degree of span be increased.
(8) Supervision from other:
It is very common that a subordinate receivers supervisions from surreal other
personnel beside his direct superior. In such a case the workload of direct
superior is reduced &he can supervise more no pf subordinate.
What factor would you consider while establishing an organization?
Organization is the structural framework of duties and responsibilities required of
personal in performing various functions with a view to achieve business goals
through organization management this to combine various business activities to
accomplish predetermined goals so far the success of any organization. There must
be a good & well organizational structure, which is the established pattern of
relationship among components or parts of the origination. It provides the relationship
among various positions and activities in business since persons hold various
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positions so structure relationship among them. A good organization structure should
meet various needs and requirements of the enterprise, which are as follows.
Clear line of authority
There should be a clear line of authority form top to bottom. The delegation of
authority should be step by step and according to the nature of work assigned every
body in the organization should be clear about his work and the authority delegated
to him. In the absence of this clarity there will be confusion, friction and conflict.
Adequate delegation of Authority
Delegation of authority must be commensurate with the responsibility assigned. If the
authority is not sufficient for getting the assigned task then the work will not be
competed. Sometimes managers assign work to subordinate without giving the
proper authority. It shows lack of decision making on their part. An Inadequate
authority will create problems for the subordinate because they may not be able to
accomplish the task.
Less Managerial levels
As far as possible minimum levels of management many be created. More the
number of these levels, more the delays in the communications. It will take more to
making the decisions for the top to bottom. Similarly, Information from lower levels
will take much line in reaching the top .The number of managerial levels depends
upon the nature and scale of operations. No specific members of levels may be
specific for each and every concern but effort should be made to keep them at the
minimum.
Span of control
Span of control refers to the no. of people a manager can directly supervise .A
person supervise only that number of subordinate to whom he can directly keep
under contact. The number of people to be supervised may not be universally fixed
because it will be influenced by the nature of work. Efforts should be made to keep a
well managed group under a supervisor otherwise there will be inefficiency and low
performance.
Simple and Flexible
Organizational structure should be very simple. There should not be unnecessary
level of management. A good structure should avoid ambiguity and confusion .The
system should also be flexible to adjust according to the changing needs. There may
be diversification, which is required reclassification of duties, and responsibilities .The
originating structure should be able to incorporate new changes without attiring the
basic elements.
Formal and informal organization
Formal organization is the organization where there is consciously coordinated
relation & has its basis of delegation of authority & normally for official work. Under
informal organization has personal relationship & don't have any structure.
Define the term delegation of authority. What are the elements of delegation of
authority?
CONCEPT OF DELEGATION. Delegation of authority is one of important factor of organizing process. When an
enterprise is small then decision-making power is centralized in few hands. As
enterprise grows there is need to delegate authority to more and more people to
cope with work. Delegation is necessary for an enterprise to exit.
Delegation is a distractive process of getting thing done others by giving them
responsibility. Every superior delegates the authority to his or her subordinates for
getting work done. The process goes to the level where actual work is executed. The
person who is given responsibility for a particular work is given requisite authority for
getting it done. Superiors cannot delegate authority, they do not have.
DEFINITION. - “The entrustment of a part of the work, or responsibility and authority
to another, and the creation of accountability for performance.” “Delegation refers to
a manager’s ability to share his burden with other. It consists of grating authority or
PRINCIPLES & PRACTICE OF MGT.
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the right to decision making in certain defined areas and charging subordinates with
responsibility for carrying through & assigned task”
Douglas C Baril
Elements of delegation
Delegation involves following three elements.
(1) Assignment of responsibility:
The first step in delegation is the assignment of work or duty to the subordinate. The
result expected from each position is identified properly. Then accordingly task is
assigned to the subordinate by supervisors. Duty is in terms of function or task to be
performed constitute the basis delegation process.
(2) Grant of Authority:
The grant of authority is the second element of delegation. The delegation grants
authority to the subordinate assigned task is accomplished. The delegation of
authority without responsibility creates problem and responsibility without authority is
meaningless. Authority is derived from responsibility. Superior transfer action rights
like spending, directions etc. to his subordinate. The purpose of this transfer is to
enable the subordinate to complete the assigned work properly there should be a
balance between authority and responsibility.
(3) Creation of accountability:
Accountability is the obligation of a subordinate to perform the duties assigned to
him. The delegation creates an obligation on the subordinate to accomplish. The task
assigned to him by superior. When work is assigned and authority is delegated, then
accountability is the by-product of this process. Authority flows upward and. there
should be balance between authority and responsibility. Single accountability
improves work and discipline.
Explain the brain storming technique of group decision-making.
Brainstorming
AF Osborn, an advertising executive, to increase creativity, developed brainstorming.
Brainstorming is used to help to help groups generate multiple ideas and alternatives
for solving problems. This techniques is effective because it helps to reduce interface
caused by critical and judgment reactions to one’s ideas from other group members.
In brainstorming a group is convened and the problem at hand is reviewed. Individual
members are then asked to silently generate ideas/alternatives for solving the
problem. Next, these ideas/alternatives are solicited and written on a board or a flip
chart. A second session is used to critique and evaluate the alternatives. Managers
are advised to follow for rules when brainstorming.
1.
Freewheeling is encouraged. Group members are advised to offer any and all
ideas they have. the wilder, the better.
2.
Criticism is discourages. Don’t criticize during the initial stage of idea
generation. Phrases such as “we’ve never done it that way”, “it won’t work”, “it
is too expensive”, and “the boss will never agree” should not be used.
3.
Quantity of ideas is encouraged. Mangers should try to generate and write
down as many ideas as possible.
4.
Combination and improvement of ideas is pursued. Group members are
advised to piggyback” on to ideas of others.
Brainstorming is an effective technique for generating new ideas/alternatives.
It is not appropriate for evaluating alternatives or selecting solutions.
What are the various ways of departmentation? Explain.
(Last Year Q.P-5 Marks)
Departmentation means “group of activities and employees into departments” .in
words of Allen it is a means of dividing the large and monolithic functional
organization into smaller, flexible administrative unites.
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Basis of Departmentation.
1. On the basis of Functions.- The functional structure is the most common.
Departmentation is done on the basis of functions such as sales, production,
personnel, planning, transport, etc.
2. On the basis of product- product wise Departmentation is restored to where
specialization is required in respect of specific product of the company. For eg,
company may deal in eight or nine product lines e.g. chemical, foodstuffs, cosmetics,
drugs etc. under a separate division.
3. On the basis of territorial or geographical region – Such Departmentation is
especially attractive to large –scale enterprise or others having activities physically or
geographically spread out. it is proper when its purpose is to encourage local
participation in decision making and to take advantage of certain economies of
localized operation.
4. On the basis of customers- Departmentation by customers plays a grater
emphasis on the customer and distinguishes one from other. E.g. industrial buyer,
whole sellers, government, public undertakings.
5. On the basis of process or equipment. - This structure is used where the
machines need special skills for operating them or have technical facilities, which
make concentrated location desirable. This type of structure is mainly motivated by
cost and economic considerations.
Define the concept of authority and explain the difference between
decentralisation and delegation of authority.
Authority is the right to give orders and exact obedience. Authority gives right of
decision making because a manager can give order only when he decides what is to
be done or not to be done by his subordinates. The basic objective behind the use of
power is to influence the behaviour of subordinates in terms of doing right things at
right time so that organisational objectives are achieved. the use of authority may
control the negative aspects of behaviour. Authority in itself is an objective thing but
its exercise is always objective. The use of power is always determined by the
personality factors of its processor and the person or group of persons in whose
context it is used. There are two viewpoints about the sources of formal authority.
1. According to the classical view, the formal authority originates at the top and then
flows downward to subordinates.
2. According to modern view authority is legitimized by subordinates. Distinction
between delegation and decentralisation.
The term delegation and decentralisation appear to mean the same thing, but in
reality there is considerable difference between the two. The main differences are
as follow.
3. Delegation is the process, while decentralisation is the end result of delegation
and dispersal of authority. Delegation mainly refers to granting of authority and
the creation of responsibility as between one individual and another;
decentralisation is the situation that exists as a result of systematic delegation of
authority throughout the organisation.
4. In delegation superior continue to be responsible for work delegated to the
subordinates. While in decentralisation superior is relieved from his responsibility
for the work decentralized the subordinate becomes liable for that.
5. Delegation is essential and vital to the management process. Only through
delegation subordinate can be involved in the organisation and management can
get things done. Decentralisation is optional, in the sense that it may or may not
be practiced as systematic policy.
Explain the various conditions of decision-making.
Decision making involves selection of alternatives out of several available. The
alternatives are put into action, which will take place in future period. Decisions are
taken for future period & the future conditions for a decision vary along a continuous
of ranging to conditions of complete uncertainty
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Conditions
Perfect certainty
Prior probability
conditions of risk
empirical
complete uncertainty
subjective
Thus there are three main conditions of decision-making depending on availability of info
either about the outcomes or the relative chances for any single outcomes.
1. Decision Making Under Certainty.When a manager knows exactly which state of nature will occur, circumstances of
certainty exist. This means tat the manager will be able to make perfectly accurate
decisions time after time. Decision under certainty is repetitive, routine and have definite
procedure for handling them are called programmed decisions. This can be expressed
as a set of steps to follows a flow- chart a decision table, or a formula.
Conditions of certainty exist when decision involves action in immediate future and the
manager has made such a decision number of times with the same results. In certainty,
deterministic model is used the one in which all factors are assumed to be exact with
chance of playing no role.
2. Risk.
Most of the organisational decisions are made under the conditions of risk, that is, some
info is available, but this not sufficient to answer overall questions about the outcomes of
the decisions. In such situations, manager has to develop estimates of likelihood of the
various states of events occurring. These estimates may be based on experience,
incomplete but reliable info., or intelligence. In such situations where the estimates are
made, there is a risk involved and requires the use of risk analysis. Risk analysis is to
calculate the risk involved in a decision & what can be the best or adverse
consequences of the decisions. There are 3 methods of estimating probability under
conditions of risk.
(i)
Priori probability. is obtained through inference of assumed conditions e.g. Toss
of a coin (nature of coin) 50% risk
(ii)
Empirical Probability. is based on recording actual experience over a period of
time & computing the %age of times each event has occurred. eg. insurance co.
generally compute prob. Of accidents & deaths on their basis. Risk 50%
(iii)
Subjective Probability. - When the manager does not have sufficient data to
calculate either priori or empirical probability he may estimate probability on his
own judgment. This is subjective probability. The manager does not have any
information to calculate probability. This probability is less enact risk>50%
3) Condition of Uncertainty.If a decision involves condition about which the manager has the relation chance of
agricultural single out come. Since the manager does not decision have any info on
which he can develop any analysis the best he can do is to be aware that he has no
chance of predicting the event.
Decision under taken the conditions of uncertainty are called non-programmed decision.
Non programmed decision have no pre established decision procedure either because
the decision is too infrequent to justify the organisational cost of preparing a decision
procedure or the decision process is not understood well enough or too changeable to
allow a stable pre established decision may or may not be half or less programmed.
These decisions are taken by top-level mgt e.g. opening of new branch, introducing new
&production, R&D.
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Q19. Explain the various decision criteria’s.
Ans. The Decision criteria’s are of following types.
(i)
Maximum Criterion. is applied by optimistic decision makers. Under this philosophy
the manager will select that alternative under which it is possible to receive., the most
favorable payoff
Limitations
(i) It ignores possible losses & chances o f making or not making profit.
(ii) Maximum Criterion. Is adopted by the most pessimistic decision maker. The manager
believes that worst possible may occur. This pessimism results in the selection of those
alternatives, which maximizes the least favorable payoff.
(iii)
Minimum Criterion. - leads to minimization of regret. The managerial regret is
defined as the pay off of each alternative under every date of nature of competitive action
subtracted from the most favorable payoff that is possible with the occurrence of the
particular event.
Low
middle high
Centralized
0
0
15
Decent.
20
0
0
Since the manager does not know the probability of happening a particular event, he will
choose an alternative, which minimizes his regret.
(iv)
Insufficient Reason Criterion. In this criterion, since the prob. cannot be assigned
on any basis equal prob. Assigned to each event. The basic is that the probability. Of
occurring an event is unknown every event should be treated as equal. In simple words
average is calculated of all the events of an alternatives.
Centralized distribution. - Rs.21.67 crores ( 30+ 15+20) crores
3
Decentralized dist. . Rs. 20 crore (10+15+35) crore
3
Q20. Explain the decision tree.
Ans. Decision tree
Some decision involved a series of steps the second step depending on the first and
so on often uncertainty surrounds each step. So that the decision maker face
uncertainty pilled on uncertainty. Decision tree are a model for solving such
problems.
“ Decision tree is a graphical method to identified various alternative actions’ prob.
And resulting expecting payoff graphical from visually helps decisions makers view
his alternatives and outcomes. Not complex representation and easily
understandable.”
Constructions.
The construction of a decision tree requires definition of alternatives, estimation of
prob. For various events and calculation of expected payoff resulting from an action
(i) The first basic step in construction of decision tree is definition of various
alternatives available at the first stage e.g. launch of new product – machinery for
permanent an temporary tooling
(ii) The second step in decision tree requires the estimation of prob. Of various
events.
Estimation will be based on mangers own experience, consolation with others
and information available in this respects e.g. events high success, moderate,
fails diff. probs.
(iii) The third step calculation of pay off from each alternative in various events.
Payoff = probability. of event x expected payoff
Investment
permanent tooling = 2 crore
Temporary
1 crore
(iv) Payoff without considering prob.
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alternatives
P
T
Succeed
1 cr.
.60 cr.
Moderate
.5 cr.
. 30cr.
Fail
20 cr.
.1 cr.
Expected payoff of p = 1.00x .5 x.8 = 40 lakhs
When decisions are based on decision tree, it becomes more complicated as
chance
events increase. Computer is needed to process the info.
Uses.
(i) Make decision in compliant situations
(ii) It makes possible for decision makers to see at least the major alternatives
open to them
(iii) By incorporating prob. Of various events in the decision tree.
(iv) Replacement of broad areas of judgment with focus on critical obeys
Limitation.(i)
Complexity
(ii) Inconsistency in assigning prob. To various events.
(iii) Time consuming
(iv) Not applicable/ good for small decisions
Q21. What are group-aided decisions? Explain its advantages and problems.
Ans. Group Aided decisions
The early work culture was focused largely on spotting individual decision-making.
But later org. becomes very complex so decisions of one individual were not effecting
to organize the work more information and ideas were needed for exact decisions.
Group added decisions are taken by a group of persons. The decisions of board,
directors are come under this category. These are generally important decision and
related to policy matter; single person can under take small decisions that are
performed.
Information system (PC) are also used in decision making and group taking decision
with the help of information system is called group decisions spot system
Advantages.
(i) More ideas alternatives to solve a problem
(ii) Advantage of specialization
(iii) Pooling of knowledge and experience
(iv) Facility for co-ordination
(v) Fear of too much authority in a single person.
(vi) Consolidate splinted authority
(vii) Moderation through participation
(viii)
A tool of management development
Problems.
(i)
High cost
(ii) Slow decision
(iii) Indecision
(iv) Pressure on minority
Q22. What are the advantages of decentralisation?
Ans. The advantages of decentralisation are as follows.
(i)
Decentralisation of reduce problems of communication and red tape.- as an
org. grow larger , it take longer for top manager to get the information
necessary to make decision.
(ii) Decentralisation permit quicker and better decision making.- the manager
who are close to the work and are , therefore most knowledgeable about the
specific details and circumstances of problems that arise in dept. have the
authority to take action.
(iii) Decentralisation recognized and actually on the importance of the human
element under decentralisation, managers are unable to exercise autonomy.-
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this gives them power prestige and status. They feel more motivated and
satisfied in their jobs.
(iv) Decentralisation leads to competitive climate with in the org.- Each division is
made into a distinct profits center and this encourages the head to exercise
greater initiative and ingenuity and since he is being compared with his peers
on various measure
(v) Decentralization ensures the development of more capable managersbecause managers in a decentralized structure often have to adapt and deal
with difficult situation. they are assumed to be excellent trained for promotion
into position of greater authority and resp.
(vi) Decentralization facilities diversification of product, activity and markets- this
has been sampling demonstrated by Alfred d.chandler in his study of such
large American industrial enterprises. As Ponds, General Motors Standard
Oil and Sears Roebuck. Chandler found that these companies in their initial
stages had a centralized
structure that was best suited for the limited
products. They offer but as companions expended their operations diversified
production their centralized structure started proving inefficient and
impractical. Some centralized controls was maintained but in general these
com. Had to shift to a decentralized structure with several near autonomous
division in order to remain successful
Which factors determine the degree of decentralisation?
In recent years decentralization have become the gold calf of mgt. philosophy both
those who write about and those who practice mgt. extol the virtues of
decentralization. How ever is not an un mixed blessing under total decentralization
with no co-ordination from the top division or unit .may try to optimize its performance
at the cost of others units and this may lead to disintegration of the enterprise.
(i) size of the organization. -- the size of the org. in term of rupee volume of sales
no. of plants, no. of employees, is the strongest single factor determining. the extent
of decentralization it appears that the speed and adequacy of decision making and
efficient are enhanced through decent. Operations in case of very large
(i) History and age of org. .- if the org. has grown primarily from within then it might
have built up a very centralized structure. On the other hand if it has grown by
acquisition and mergers it is likely to be decentralized. Similarly a relatively high
degree of centralization may be needed at the start when new values and view points
are being established at the top leadership can not depends on the sweet will of its
members for adherence to those value and view points.
(ii) Philosophy of top mgt. .- some managers pride themselves in making all
decisions
Themselves. Others take equal pride confidently delegated authority to their
subordinate.
(iii) Abilities of lower – level managers.-- talented executives are often unwilling to
accept centralization fro m their superiors. They want to run their dept. or
divisions independently so that may give expression to their abilities and may be
rewarded for what they are able to accomplish in their own units.
(v) Strategy and the org. environment.- the strategy of an org. influences the types
of its markets , its technological environment and its composition with other org.
these factors it turns influencing the degree of decentralization of org.
(vi) Nature of management functions.- some management functions are more
amiable to decentralization then others. In a large multi plant company such
functions as purchasing traffic, cost accounting. Quality control, plant
engineering and personal tends to be decentralized; yet financial planning and
resource allocation may be reserved for the very highest level of decisionmaking and control. Marketing may or may not be decentralized depending up
on the nature of the markets and the varieties of products.
PRINCIPLES & PRACTICE OF MGT.
Section – C
[QUESTIONS 1 TO 20]
Q1.
Ans.
Q 2.
Ans.
Q3.
Ans.
Q4.
Ans.
Q5.
Ans.
Q6.
Ans.
Q7.
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2 Marks Questions
[PAGE 39 TO 42]
What is Coordination?
It is a group effort, which brings unity and harmony in the working place. Co–
ordination is the orderly arrangement of efforts of the subordinates to do all the work
is proper orderly and timely manner
Define the term control.
Control is the process of checking whether the plans are being adhered to or not,
keeping a record of progress and then taking corrective measurers if there is any
deviation. Control is one of the managerial functions. These functions start with
planning and end at controlling.
According to Henry Fayol
" In an undertaking, control consists in verifying whether everything occurs in
conformity with plan adopted the instruction issued and principles established.”
What is a budget?
A budget is the monetary or /and quantitative expenses of business plan and policies
to be pursued in the future period of time. In term budgeting is used for preparing
budget and other procedures for planning co-ordination and control of business
enterprise. So a budget is a pre-determined statement of management policy during
a given period, which provides a standard for comparison with result actually
achieved. There are many types of budget such as sales budget, expenditure budget
etc.
What is concurrent control?
Con-current means side-by-side control. Concurrent control is exercised during the
operation of a programme. This is the control, which is done during the execution of a
programme. Concurrent provides measures for taking corrective action or making
adjustments when the programme is running.
What is Management Audit?
Management audit is an investigation by an independent organization to find out
whether the management is carried out most effectively or not. In case there are
drawbacks at any level then recommendation should be given to improve managerial
efficiency. In the words of Leslie R. Moword “Management Audit is an investigation of
a business from the highest level downward in order to ascertain whether sound
management prevails throughout, thus facilitating the most effective relationship with
the outside world & the most efficient organization & smooth running internally”.
Distinguish between Coordination and Cooperation.
The concept of coordination is much broader than that of coordination. Coordination
is an orderly arrangement of group efforts to provide unity of action in the pursuit of
common objectives. It means bringing together the efforts of different components of
the organization in order to give them a unity of process. But cooperation denotes the
collective efforts by the pe3ople working the organization voluntarily to accomplish a
particular purpose. Coordination is a deliberate effort by the management for the
achievement of certain goals. It is true that existence of cooperation among the
members of a group facilitates coordination. But coordination does not originate from
the voluntary efforts of the group members. It has to be achieved by the conscious
efforts of the management.
Who was Herbert A. Simon?
Herbert Simon, an American political and social scientist, got the Nobel Prize in
Economics in 1978.Simon examined the accepted principles of administration and
found these contradictory as well as ambiguous. Simon criticized the principles of
management propagated by earlier writers like Lyndall Urwick and Gulick. He decried
these principles are myths’ ‘slogans’ and ‘homely proverbs.’ He pointed out inherent
PRINCIPLES & PRACTICE OF MGT.
Q8.
Ans.
Q9.
Ans.
Q10.
Ans.
Q11.
Ans.
Q12.
Ans.
Q13.
Ans.
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contradiction in them. This led him to evolve a new approach to administrative
organization. This approach is known as decision theory approach. He felt that
organization is decision-making centers. For the effectiveness of the organization all
the decisions should be rationalized
What is human response control?
It means the response of members of the organization in control. Sometimes this
response is negative positive or indifferent.
1)
Employees react willingly to control if they think that control is required.
2)
If employees feels that control is to be in accordance with their needs, but
manager is only shaving his power then they react negatively to control.
What are the different techniques of co-ordination?
Co-ordination is a set of human and structure mechanism designed to join parks of
the enterprise together to help achieve the specified objectives. It is group effort,
which brings unity among the members and individuals in organization.
Techniques of coordination
1)
Co-ordination by chain of command
2)
Co-ordination by leadership
3)
Co-ordination by committee
4)
Staff meeting
5)
Special coordinator
6)
Self co-operation.
What are the essentials of effective coordination in the organization?
Co-coordination is the orderly synchronization of efforts of the subordinates to do
their work in proper orderly and timely manner coordination is a group effort, which is
continuous in metric. It helps to bring the unity of efforts in the organization. Ways to
ensure the effective coordination are.
1.
Well defined structure of authority and responsibility
2.
Well defined work procedures
3.
Effective communication on system
4.
Process of check and inspection
5.
Effective organization structure
6.
Proper organisational climate.
How planning is related to control?
Planning and control are often used together in the designation of the department,
which carries production planning, scheduling and routing. Planning is the basis of
control in the sense that it provides the entire spectrum on which control function is
based. Planning offers and affects control. Not only that planning is also affected by
control in the sense that many of the information provided by control is used for
planning and replanning.
Identify main features of Japanese management.
The main features of Japanese management are.
1.
They plan for long term.
2.
Decisions flow upward and back.
3.
Emphasis on informal structure.
4.
Rewards are based on group performance.
5.
Extensive use of quality control circles.
6.
Communication style is face-to-face and bottom-up.
What are types of coordination?
Coordination may be classified into two broad categories.
1. Internal coordination. Internal coordination can be vertical and horizontal or
substantive and procedural.
2. External coordination. External coordination is needed in organization’s external
relationships with various parties. It is required because an organisation works as
input-output mediator and success of input output operation depends upon the
degree to which the organisation coordinates with various external factors.
PRINCIPLES & PRACTICE OF MGT.
Q14.
Ans.
Q15.
Ans.
Q16.
Ans.
Q17.
Ans.
Q18.
Ans.
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What is need of control?
A control system is needed for three purposes.
1. To measure progress
2. To uncover deviation
3. To indicate corrective action.
Explain the relationship between control and coordination.
Control and coordination are twins of management. Control is an important element
in the process of management, whereas coordination is the essence of management
itself.
Control is a function of management like all other functions of management. But
coordination is an all-inclusive function.
Control and coordination are closely related in many ways.
- Authority is the basis of both the processes
- Both. Are performed by the managers at all the levels.
- Both are aimed at achieving organizational goals.
- Both are necessary for achieving stability, continuity and growth of organisation
consistency, precision and discipline in the organization.
What is Management Information system (MIS)? (Q.P 2005 3-MARK)
Management Information system (MIS) is an approach of providing timely adequate
and accurate information to the right person in the organization, which helps in taking
right decision. So MIS is a planned and organized approach to the transferring of
intelligence within an organization for better magt.
MIS is of two types
(I) Management operating system meant for meeting the information needs of lower
level and middle level management.
(II) Management reporting system which supplies information to top-level
management for decision making.
An MIS should be so designed which helps management in exercising effective
control over all aspects of the organization.
Explain traditional modern and commonly used management control.
Traditional methods
-Budgetary control
-Statistical data reports
-Marginal costing
-Break- even analyses
-Standard costing
Modern methods
-Management audit
-PERT
-CPM
-MIS
Commonly used methods
-Written reports
-Budgets
-Key ratios
-Accounting techniques
-Internal audit
What are the benefits of management by exception?
The use of management by exception is prevalent because of the following factors.
1.
Saves executives’ time because they apply themselves on fewer problems,
which are important.
2.
It concentrates executives’ efforts on major problems.
3.
It facilitates delegation of authority and increases span of management.
4.
Provides better opportunities for self-motivated employees.
5.
Makes better use of knowledge of trends, history and available business data.
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6.
Q19.
Ans.
Q20.
Ans.
It identifies crises and critical problems and thus avoids uninformed, impulsive
pushing of the panic button.
7.
It provides qualitative and quantitative yardsticks for judging situations and
people.
8.
It enhances degree of communication between different segments of an
organisation.
What is responsibility accounting?
Responsibility accounting can be defined as
“A system of accounting under which each departmental head is made responsible
for the performance of his department.”
Each department is made a semi-autonomous profit center, i.e. a center responsible
for generation of profits.
What is internal and external audit?
Internal and external audit. are modern control techniques. Internal auditor conducts
internal audit. He makes independent appraisal of financial and other operations.
External audit is the independent appraisal of organization’s financial accounts and
statements. Its purpose is to ensure that the inte4rest of shareholders and other
outside parties connected with the company are safe guarded against the
malpractices of the management.
Section – C
[QUESTIONS 1 TO 13]
Q1.
5 Marks Questions
[PAGE 42 TO 52]
Compare the Japanese and American management culture.
Or
State the difference between Japanese Management and culture of American
companies.
Ans. Difference between American and Japanese management culture is as follow.
American practices
Japanese practices
Planning:
1) Primarily short-term orientation.
Primarily long-term orientation.
2) Individual decision-making.
Collective decision-making.
3) Decisions flow from top to bottom.
Decisions flow upward and back.
4) Fast decision-making but slow
slow decision-making strategies
implementation.
5) Operational decisions as tactical.
Operational decisions as strategic.
Organising:
1) Individual responsibility.
Collective responsibility.
2) Emphasis on formal structure.
Emphasis on informal structure.
3) Common organization culture
Common organization culture
lacking.
And philosophy.
4) Organisational change by external
Organisational change by conschange agents.
External and internal change Agents.
Staffing:
1) Short-term employment.
Life-long employment.
2) Rapid upward movement.
Slow upward movement.
3. Segmented concern for employees.
Holistic concern for employees.
4. Professionalism.
Loyalty to the organization.
5. Specialized career.
General career.
6. Rewards based on individual perReward based on group performformance.
rmance.
PRINCIPLES & PRACTICE OF MGT.
7. Substantial differences in pay
increase.
Directing:
1. Directive Style.
2. Individual motivation
3. Separation of working and private
Life.
4. Leader as decision maker.
5. Top-down communication.
6. Emphasis on written communication.
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Small differences in pay
increase.
Paternalistic style.
Group motivation.
Confluence of working and
Private life.
Leader as group facilitator.
Bottom-up communication.
Emphasis on face to face
communication.
Controlling:
1. Control by superior.
Control by peers.
2. Control of individual performance.
Control of group performance.
3. Limited use of quality control
Extensive use of quality
circle.
Control circle.
Q2.
What are the techniques or methods to ensure effective co-ordination?
Ans. Co-ordination is integration of human efforts for achieving the goals for the basic
objectives of all functions in organization. Techniques to ensure effective coordination (Methods) are.
1) Coordination by chain of command
Coordination by chain of command means by authority the coordination is
maintained. It is the simplest as well as simplest method for achieving coordination. It
ensures that various levels do not act out of accord with each other or with policies
and objectives of the organisation. A manager can achieve the vertical coordination
by using his authority.
2) Coordination by leadership
Leadership is the process of inducing subordinates to cooperate willingly. A leader
formally or informally ensures coordination. Thus, inducing people to work in
harmony by exercising leadership can overcome many conflicting situations.
3) Coordination by committees
Committee is group of persons entrusted with discharge of some functions
collectively as a group. The role of committee is significant in achieving horizontal
coordination. Problems are solved through group decisions, which increases the
understanding. Improved understanding of organisation-wide matters leads to better
coordination.
4) Coordination by staff meeting
Periodic staff meetings can be highly effective in promoting coordination through
better communication.
5) Self-coordination
The basic principle of self-coordination is modification of functioning of a department
in such a way that each department coordinates with other departments. It can be
achieved when every department coordinates itself to facilitate the other
departments.
6) Special coordinators
Special coordinators are appointed to keep a check on the work of the staff.
Sometimes even a special coordination cell is also created for this. The basic
responsibility of cell is to collect the relevant information and to send this to various
heads of sections or department so that interdepartmental work and relationship can
e coordinated.
Q3.
What are the different types of control on the basis of stage at which control is
exercised?
Or
State the difference between feed forward control, concurrent control and
feedback control.
PRINCIPLES & PRACTICE OF MGT.
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Ans.
In an organisation following types of controls can be exercised.
Feed forward control.-It is the control, which involves the evaluation of inputs and
taking corrective action before a particular sequence of operation is completed. Thus
it removes the limitation of time lag in operations. This control helps in know whether
the actual inputs are according to planned inputs or hot, if not take corrective action
immediately.
Con-current control. It is exercised during the execution of operations of a
programme. It provides the measure for taking corrective action or making
adjustment while the programme is still is operation and before any further damage is
done. Here the focus is on process itself. Data provided by this control system is
used to adjust the process.
Feedback control. - It is based on the measurement of the results of an action. If
any deviation is formal is the actual performance and the standards previously set,
then corrective action is undertaken. The control aims at future action of similar
nature so that there is conformity between standards and actuals. To make feedback
control effective it essential to take corrective action as soon as possible.
Diagram
Flow of Information
Corrective actions
Stages of control
Q4.
What do mean by control? What are various techniques of control? Explain
traditional control techniques.
Ans. Control is the process of checking whether the plans are being adhered to or not,
keeping a record of progress and then taking corrective measurers if there is any
deviation. Control is one of the managerial function. These functions start with
planning and end at controlling.
According to Henory Fayol
" In an undertaking, control consists in verifying whether everything occurs in
conformity with plan adopted the instruction issued and principles established.”
Every management wants to ensure that the scarce resources at its disposal are
effectively and productively utilized. To achieve this objective, it has to devise a
monitoring system, which will keep the management informed about the
implementation of its plans and policies. In case the plans are not properly
implemented then variations in performance must come to the notice
of
management so that timely corrective measures are taken up. A control system
should be devised to evaluate the performance of various segments of enterprise.
Every organization has its own methods to exercise control and some of these
devices are as follows. Control Techniques
Traditional Control Techniques
Modern Control Techniques
- Budgeting and budgetary control
-Return on investment control
- Lost control
- Programme Evaluation and review
techniques
-Inventory control
Management informal system (MIS)
-Break Even Analysis
- Profit and loss control
Management Audit
Statistical Data Analysis
Traditional Control Techniques.
1) BUDGETING
A budget is the monetary or /and quantitative expenses of business plan and
policies to be pursued in the future period of time. In term budgeting is used for
preparing budget and other procedures for planning co-ordination and control of
business enterprise. So a budget is a pre-determined statement of management
PRINCIPLES & PRACTICE OF MGT.
2)
3)
4)
5)
6)
7)
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policy during a given period, which provides a standard for comparison with result
actually achieved. There are many types of budget such as sales budget,
expenditure budget etc.
Cost Control
Cost Control is a control of all the cost of an enterprise in order to achieve cost
effectiveness in business operations. Cost can be classified as fixed cost, variable
cost, semi variable cost etc. The fixed costs are incurred over a period of time and
one not directly related to productions. These cost remain the same even if there is
increase or decrease in production. Semi variable cost is fixed as well as variable in
nature. Same cost may incur continuously, others now & then and still others only
deemed to be incurred. (Depreciation)
The cost standards are fixed for each product or activity and actual cost
records are also sent to the in charge of the product or activity. In case of any
deviation in cost, immediate remedial measures are taken up. The regular cost
control system will help in keeping cost under check.
Production Planning And control
Production planning and control is an important task of production manager. It has to
see that production process is properly decided in advance and is carried out as
planed. Production planning is the function of looking ahead, anticipating difficulties
to be faced and the likely remedial steps to remove them. There are some
techniques which are helpful in production planning and control, such as routing,
scheduling, dispatching or implementation follow up and expediting, inspecting.
Inventory Control
Inventory control or materials management control controlling the kind, amount,
location and timing of various commodities used in and produced by the industrial
enterprise. It ensures maximum return on working capital. Inventory control is
necessary for the smooth and uninterrupted functioning of production department. Its
main purpose is to maintain an adequate supply of correct material at the lowest
total cost.
Break Even Analysis
The break-even analysis is basically concerned with the cost- volume profit
relationship. It magnify a set of relationship of fixed cost variable, cost price level of
output and sales maximum to the profitability is made mathematically by applying
the formula to trace the break even point, contribution, margin of safety and profit
volume Ratio.
Mathematically relationships can be expressed as follows
Break even point =
Fixed cost
Contribution per unit
Contribution = Sales per unit -variable cost per unit
Margin of safety
= Total sales proceeds - sales at B.E.
= Total contribution -fixed cost
Profit and loss control
Profit and loss control is a simple and commonly used overall control device to
find out the immediate revenue or cost factors responsible for either the success or
failure of an enterprise. As a control device, it is regarded as very effective in certain
respects because it enables the management to influence in advance revenues,
expenses and consequently even profits.
Statistical Data Analysis
Statistical data analysis is an important control technique. This analysis is possible
by means of comparison of ratios, percentages, averages, trends etc. of different
periods with a view to pinpoint deviation and causes. This method of control is very
useful in case of inventory control, production control etc. The minimum and
maximum control limits are fixed and deviation within this limits are allowed but if
variation go beyond prescribed parameters then immediate steps are taken to
correct them.
PRINCIPLES & PRACTICE OF MGT.
Q5.
Ans.
Q6.
Ans.
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What are the modern control techniques?
The modern control techniques are.
1) Return on investment control (ROI)
Profits are the measure of overall efficiency of a business. Profit earned in
relation to the capital employed in a business is an important control device, If the
rate of return on investment (Share holder fund) is quite satisfactory. It will be
taken as a yard stick of good performance. The return on investment can be
compared over a period of time as well as with that of other similar concerns. The
return on investment is computed by dividing the operating net profit by the
capital employed in the concern.
Return on Investment
Net profit before interest & tax /Capital employed . ROI is used to measure the
overall efficiency of a concern one used, higher the return better are the results.
2) Programme Evaluation and Review Techniques(PERT)
Programme evaluation and review techniques (PERT) was first developed as a
management tool for coordination and early completion of polaris Ballistic Missile
project in USA resulting in a reduction of 30% time in project execution. A
contemporary of PERT is CPM (critical path Method) and was developed in
connection with maintenance & construction work.
PERT is useful at several stages of project management starting from early
planning stages with various alternative programme are being considered to the
scheduling phase. When time & resources schedules are laid to final stage in
operation when used as control device.
3) Management Information system (MIS)
Management Information system (MIS) is an approach of providing timely
adequate and accurate information to the right person in the organization that
helps in taking right decision. So MIS is a planned and organized approach to the
transferring of intelligence within an organization for better magt.
MIS is of two types
(ii)
Management operating system meant for meeting the information needs
of lower level and middle level management.
(iii)
Management reporting system, which supplies information to top-level
management for decision making.
An MIS should be so designed which helps management in exercising effective
control over all aspects of the organization.
ii) Management Audit
Management audit is an investigation by an independent organization to find
out whether the management is carried out most effectively or not. In case
there are drawbacks at any level then recommendation should be given to
improve managerial efficiency. In the words of leslie R. Moword “Management
Audit is an investigation of a business from the highest level downward in
order to ascertain whether sound management prevails throughout, thus
facilitating the most effective relationship with the outside world & the most
efficient organization & smooth running internally”
Discuss the factors, which make the coordination difficult.
Need of coordination is obvious in all kinds of organizations, but it is not easily
achieved. The task of coordination is becoming increasingly complex and difficult.
The factors, which contribute to difficulty in coordination, are as follow.
1. Growth in size. With growth in size of an enterprise, there is a consequent
growth in the number of employees thus enlarging the area and leads to be
coordinated. A more complex organisation structure involving more subordinates
brings about added problems of communication. All this makes coordination,
difficult.
2. Growing specialization. Modern business has become increasingly complex
due to the facts that various functions are to be performed by specialists.
PRINCIPLES & PRACTICE OF MGT.
Q7.
Ans.
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Specialization, in turn, brings about the need for more coordination because of
diversity of tasks to be undertaken and of process to carry out them.
3. Human Nature. The nature of human beings presents the problem of
coordination. Executives and their departments are preoccupied with work and,
therefore, are reluctant to become in the activities of other units or departments.
4. Difference in coordination towards different goals. Members of different
departments develop their own views about how best to advance the interests of
the organisation.
5. Differences in time orientation. Some members of the organisation are more
concerned with problems that have to be solved immediately or within short
period of time. Other may be preoccupied with problems that may take years to
solve.
6. Differences in interpersonal orientation. In some organisational activities, such
as production, there may be relatively more ways of communication and decisionmaking. In other activities such as R & D, the style of communication and
decision-making may be informal.
7. Differences in formality of structure. Each unit in the organisation may have
different methods and standards for evaluating progress towards objectives and
for rewarding employees.
What are the reasons for human resistance to control? What are the measures
to overcome resistance to control?
Controls imply and involve continuous check on the performance of individuals.
Controls are best aimed at results and not at people as such. People dislike and
resist controls because of following reasons.
1. The controls may be perceived as curbs to freedom of individuals and as
instruments of oppression.
2. The controls may suppress the creative and innovative urges and abilities of the
individuals.
3. The standards of performance may be imposed from the top and the
subordinates have no say in their determination. The standards of performance
may be rigid and unrealistic.
4. The performance appraisal may concentrate on fault finding rather than guiding
the people for better action.
5. There may be no place for self-control even for intelligent and responsible
people. Controls may be based on the assumption that people are basically lazy
and shirk work and they need to be supervised closely and strictly.
6. The controls may be administered in a in a discriminatory, arbitratory and
whimsical manner.
Measures to overcome Resistance to control
The organizations should take up the following measures to overcome people’s
control.
1. The controls should be realistic and flexible. They should make allowance for
general human behaviour.
2. The controls should give adequate emphasis to self- direction and self-control of
people. They should allow people to make use of their creativity.
3. The people whose behaviour and performance are to be controlled must have a
say in determination of standards and administration of controls.
4. The management should have faith in the ability and capacity of the subordinates
and should follow selective control only. ’Control by exception’ should be the rule
where subordinates are responsible and can be depended upon.
5. The reward system in the organization should be integrated with various kinds of
control. The subordinates should be offered rewards for acceptable performance
and behaviour so that they may get positive reinforcement.
6. There should be consistent operation of various kinds of controls. They should
not give undue power to the superiors to discriminate between the individuals.
PRINCIPLES & PRACTICE OF MGT.
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7. There should be two-way communication in the organization. The employees
should be free to send their reactions and suggestions to the top management.
The manager at various levels should be persuasive, they should tell their
subordinates that contr4ols are directed to achieve the goals of the organization
and not to curb the freedom of the individuals.
Q8.
What is the relationship between planning and control? Explain.
Or
Q.
“Planning forms the basis for control.” In the light of this statement discuss
the process of controlling.
Or
Q.
Explain the concept of control. What is the relationship between planning and
control?
Ans. CONCEPT OF CONTROL:Control is the last function of management functions. The objective of every
organization is to use scarves resources in a best possible way. Plans are franked to
achieve better results. Control is the process of checking whether the plans are being
adhered to or not, keeping a record of progress and then taking corrective measures
if there is any deviation. Control is one of managerial function because it is function
of every manager from president to supervisor. Some managers, particularly at lower
levels forget that the primary responsibility for the exercise of controls rest in every
manager charged with the execution of plans. Occasionally because of authority of
upper level managers and their result out responsibility top and upper level control is
so emphasized that people assume that little controlling is needed at lower levels.
Although scope of control varies among managers those at all levels have
responsibility for the execution of plans and control is therefore an essential
managerial function at every level.
Control is a continuous activity. Control is regularly exercised. It is not an activity in
isolation. The manager will have to see that his subordinates perform according to
plans at all the times. Once the control is withdrawn it will adversely affect the work.
So control will have to be exercised continuously. It helps in finding out the reasons
for low performance and then suggesting the ways of improving it. It also given
information to the top executives to asserts their performance and then takes
corrective measures if necessary. So it has to point out weaknesses and errors in
order to rectify them and prevent recurrence. It operates on every thing; thing, people,
action etc.
DEFINITIONS.“Management control is the process by which manager assures that resources are
obtained and used effectively and efficiently in the accomplishment of an
organization’s objectives.”
“I an undertaking, control consist in verifying whether everything occurs in conform
unity with the plans adopted, the instructions issued1 and principal established.”
“Controlling is determining what is being accomplished what is being accomplished
that is evaluating the performance and if necessary, applying corrected measures so
that the performance taken place according to plans.”
PLANNING CONTROL RELATIONSHIP:Planning and control are closely related Planning is first managerial function and
counting is the last function. The other functions like organizing staffing directing act
as the connecting link between planning and controlling. Planning will be successful
only if a program is properly controlled.
“Planning involves settings up of goals and of objectives while controlling seeks to
ensure performance in accordance with plans.”
In fact some writers think that these functions cannot be separated. It is wise to
separate them conceptually still planning and controlling can be treated or viewed as
the blades of a pair of scissors the scissors cannot work unless there are two blades
PRINCIPLES & PRACTICE OF MGT.
Q9.
Ans.
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without objectives and plans control is not possible because performance has to be
compared against some established criteria.
Planning is the first perquisite for making control effective. Planning involves the
setting of objective and then deciding about the appropriate course of action. First of
all organizational goals are set and then departmental or sectional adjectives are set.
The objectives are the targets for the achievement of which all energies are pooled.
The objectives must be specific so that their achievement may be determined the pre
determined course of action should be used to reach various objectives.
Control is concerned with finding out whether the objectives have been achieved or
not. If the results are not according the standards set then deviations are
ascertained. Controlling relates to the finding out of deviations and taking corrective
measures. If the performance is low then immediate steps should be taken to set the
things right.
Control can be exercised only when set and plans are will be effective only when
they are properly implemented control cannot be exercised without planning.
Planning must precede control .It is essential to plan first and then exercise control
for its implementation.
Explain the process of control.
PROCESS OF CONTROL:Control is a continuous process. It is not applied when everything else is done. There
may be some in built contain in the exercise of managerial techniques. In spite of this
there may be difference in standards to be achieved and actual performance. This
may be due to some human limitations. Some control methods may have to be
applied to improve performance .The basic control process wherever it is found and
what ever is being controlled involves steps.1) Setting objectives
2) Establishing standards
3) Measuring Performance
4) Complaining actual and standard performance
5) Correcting deviations.
1) Setting Objectives. - Plans are the yardsticks against which managers devise
controls the first step in the control process logically would be to establish plans.
However since plans vary in detail and complexity and since manager cannot
usually watch everything so for different plans different guidelines are settled and
special standards are established.
2) Establishing Standards. - Standards are by definition simply criteria of
performance. Every enterprise plans its activates in advance. On the basis of
plans the objectives and goals of every branch, department etc are fixed. These
goals are converted into quantity, value, man, hour etc. These are to be achieved
in future. There may also be qualitative goals. The achievement of various targets
is made the responsibility of specific persons. The achievement of various targets
is made their responsibility of specific persons. The levels of achievement are
decided in advance standards are the selected points in an entire planning
program at which measures of performance are made so that manager receive
signals about how thing are going and thus do not have to watch every step in
the execution of plans. There are many kinds of standards among the best are
verifiable goals or objectives as suggested by in the discussions of managing by
objectives.
Guidelines for setting objectives.(a) The control points should be timely.
(b) Economical
(c) Control points, especially for executives at higher levels should provide
comprehensive courage.
(d) Control points should be such as would promote balanced performance.
PRINCIPLES & PRACTICE OF MGT.
Q10.
Ans.
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(3) Measuring performance. Next step in controlling process is measuring performance against standards
should ideally be done on a forward- looking basis so that deviations may be
detected in advance of their occurrence and avoided by appropriate actions. This
will enable mangers to determine whether the work is being done according to
plans or not .The measurement of quantitative objectives is easy since figures of
work already did have been be available. The quantitative performance such as
human relations, employee, morale, etc can only be measured via psychological
tests and surveys.
Measurement of performance is an important part of control process. If
measurement is such that deviation is detected at the earliest then it will enable
appropriate action well in time. If that is not possible then deviations should be
detected as early as possible
(4) Comparing actual and standard performance .If standards are appropriately drawn and if means are available for determining
exactly what subordinates are doing, appraisal of actual or expected performance
is fairly easy. While comparing actual performance with standard performance
some permissible limits are also fined. When the deviations are with in the
prescribed limits then there is no cause for worry. But when the deviations are
more than the allowable limits then it calls for urgent action. This is also known as
management by exception. The purpose of this comparison is
(1) To find out deviations, if any
(2) To determine the reasons for such deviations
When the actual performance is not up to the level then causes for it
should be pin- pointed. Necessary steps are taken so that performance is not
adversely affected once again.
(5) Correcting deviations.The last but most important step in controlling process is to take corrective
actions . No control system process can automatically rectify the mistakes in a
system. It is the action which is required to set the things right .
Correction of deviations is the point at which control can be seen as a part of the
whole system of management and can be related to the other managerial
functions. Mangers can correct deviations by redrawing their plans or by
modifying their goals in case goals are not achievable even with more efforts or
thy may exercise their organizing function through reassignment or clarification of
duties .The may also correct by additional staffing, by batter selection and training
of subordinates or by ultimate re staffing measure firing and via effective
leadership.
The corrective actions generally involve top management. It is said by some
persons that taking corrective actions is not a part of control but are separate
managerial function. It shows overlapping of managerial functions and control
function.
These are the various steps involved in the process of control. Establishing
standards and taking corrective actions are the complain decisions and whole
process depends on these to points. Results are directly proportional with these
points.
“Some authors consider coordination as essence of management” Do you
agree.
Coordination- the essence of management.
Some authors consider coordination to be separate function of the managers. It
seems more accurate, however to regard it as the essence of management for
achieving harmony among individuals efforts toward the accomplishment of group
goals. Each of the managerial functions is an exercise contributing to consideration.
PRINCIPLES & PRACTICE OF MGT.
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Definition
Dalton McFarland defines coordination as “the process whereby an executive develops an
orderly pattern of group efforts among his subordinate and secures unity of action in the
pursuit of common purpose.”
The reasons for treating coordination as the essence of mgt. may be as follows.
(i) The concept of essence relates to intrinsic nature of an object. Coordination, being
synchronization of efforts of human beings in an organization, is intrinsic to mgt. as mgt.
Also tries to synchronize group efforts for achieving org. objectives.
(ii) A mgt. function is different from its essence. A function is a complete of duties closely
related in harmonious character and in operational similarly, which for the purpose of
execution has to perform some important and some less significant functions. On the
other hand, coordination, involves the integration of human efforts for achieving the
goals.
(iii) When various managerial functions are performed properly and adequate consideration
is given to their interdependence, the result is integrated, well balanced composite efforts
by the group.
Coordination is recognized as managerial functions by the classical authors and not by
authors of modern era. All mgt. functions try to achieve integration of efforts and
coordination becomes essence of management.
Q11. How coordination is different from cooperation?
Ans. Coordination and cooperation.
Coordination and cooperation both work for the achievement of organizational goals.
But it must be noted that coordination and cooperation don’t mean the same thing.
The difference lies in their fundamental meanings. Main points of difference between
them are:
Coordination
Cooperation
1. The basic objective of cooperation is to
1. The basic objective of coordination is
protect the interest of members of a
the synchronization of efforts of individuals
cooperative group especially from the
in a work group.
threats presented by the conflicting groups.
2. Coordination is much wider term than 2. Cooperation is narrow term than
cooperation.
coordination.
3. Coordination is conscious managerial 3. Cooperation is attitude of a group of
effort.
people.
4. Cooperation is essential for coordination 4. Cooperation may exist without
to exist.
coordination.
5. Coordination is synchronization of 5. Cooperation is motto for collective
efforts done.
action.
6.
Coordination
is
achieved
via 6. Cooperation indicates the willingness of
performance of special efforts.
individual to help each other.
7. Cooperation is the essence of
7. Coordination is responsibility of
management i.e. required to perform
managers, so it is a managerial function.
managerial functions.
8. Coordination is formal.
8. Cooperation is informal.
Q12.
Ans.
What are the essentials of effective control systems?
The essentials of an effective control system are as follows.
1. Suitable. The control system should be appropriate to the nature and needs of the
activities.
2. Subordinates to inform their superiors expeditiously about the threatened
deviations and failures. The feedback system should be as short and quick as
possible.
PRINCIPLES & PRACTICE OF MGT.
Q13.
Ans.
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3. Objective and comprehensible. The control system should be both objective and
understandable. Expected resets should be clear and definite. Employees are
not made to go up and down the hierarchy to get the information.
4. Flexible. The control system should be flexible so that it can be adjusted to suit
the needs of any change in the environment.
5. Economical. The benefit derived from the control system should be more than
cost of implementing it.
6. Prescriptive and operational. A control system in order to be effective, and
adequate must not only detect the deviations from standards but also provide for
the solution to the problems that cause deviation.
7. Acceptable to organisational members. The control system should be acceptable
to the organisation members.
8. Reveal exceptions at Strategic points. The control system should be such as to
reveal exceptions at strategic points. Small exceptions in certain areas have
greater significance than larger deviations in other areas.
9. Motivate people to high performance. A control system is most effective when it
motivate people for high performance. Most people respond to a challenge, so
the challenge should not be too difficult or too easy.
10. Control over one phase should not lead to less attention to other aspects.
What is the need or importance of coordination?
The need for coordination arise because of the following factors.
1. Division of labour. When managers divide work into specialized functions or
departments, they at the same time create need for coordination of these activities.
Generally greater the division of labour, the greater the need for coordination.
Coordination ensures the proper synchronization between the activities of different
units, avoids interruptions due to such as delay in supply of materials, tools or
duplication of work.
2. Interdependence of units. The need for coordination also arises because of the
interdependence of various units. The greater the interdependence of units, the
greater the need for coordination. The units can be linked in any of the following
ways.
a) Pooled interdependence
b) Sequential interdependence
c) Reciprocal interdependence
3. Individual interests versus Organisational interests.
The need for coordination is also felt to integrate various activities and objectives of
the separate units of the organisation in order to efficiently achieve the organisational
goals. Coordination reconciles the differences in approach, efforts or interests of
various departments by avoiding inconsistencies in their priorities, objectives and
policies. It harmonises the corporate and individual goals by making individuals see
how their jobs contribute to the dominant goals of the enterprise.
4. Functional differentiation. Functions of the organisation are frequently divided
into departments, divisions, sections and the like. Coordination is therefore
necessary to link the functions together and assures their coordination to the total
result.
5. Specialisation. There is high degree of specialization in modern organisations.
Specializations arise from the complexities of modern technologies as well as from
the diversities of the task and persons needed to perform them. It is reflected in the
use of specialists of various types. If specialists are allowed to work without
coordination, the results can be costly. Therefore some mechanism is required to
coordinate the efforts of various specialists in the organisation.