1. Which of the following is NOT a function of management?
(a) Management is all pervasive (b) Management is multidimensional (c) Identification of threats and warnings <— Correct Answer (d) Location of business
2. What is the classical view of management’s social responsibility?
a) To create a specific environment in the workplace (b) To maximize profits <— Correct Answer (c) To protect and improve society’s welfare (d) All of the above
3. Which one of the following is NOT a limitation of planning?
(a) Dynamic environment (b) Costly process (c) Rigidity (d) Top management approach <— Correct Answer
4. What is the full form of MBO?
(a) Management by opportunity (b) Method by opportunity (c) Management by objectives <— Correct Answer (d) Method by objective
5. Organisation structure establishes relationships between:
(a) Organisation and environment (b) People, work and resources <— Correct Answer (c) Organisation and Society (d) Suppliers and customers
6. What is NOT a purpose of an organisational structure?
(a) To coordinate people and resources (b) To organise lines of communication (c) To formalise authority (d) To limit worker’s rights <— Correct Answer
7. Which among the following is a characteristic of motivation?
a) Internal feeling <— Correct Answer (b) Simple process (c) One-time process (d) Not a goal-oriented process
8. What is Grapevine?
(a) Formal Communication (b) Barrier Communication (c) Lateral Communication (d) Informal Communication <— Correct Answer
9. In which among the following is the Six Sigma process NOT applicable?
(a) Health (b) Business administration (c) Selecting the best employee of the year <— Correct Answer (d) Supply chain
10. The aim of the Just-In-Time manufacturing principle is to eliminate:
(a) Time wastage (b) Labor wastage (c) Cost of excessive inventory (d) All of the above <— Correct Answer
11. (a) Explain External Environmental Factors of an Organization.
The external environment of an organization encompasses factors outside its control that can impact its performance and strategy. These factors can be broadly categorized as:
Microenvironment (Operating Environment): These factors have a direct impact on the organization’s day-to-day operations.
Customers: Their needs, preferences, and purchasing power influence demand.
Competitors: Their actions, strategies, and market share affect the organization’s competitive position.
Suppliers: The availability and cost of inputs (materials, labor, finance) impact production and profitability.
Intermediaries: These include distributors, retailers, and agents who help the organization reach its customers.
Public: Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives (e.g., local community, media, activist groups).
Macroenvironment (General Environment): These factors affect the entire industry and all organizations within it.
Political Factors: Government policies, regulations, political stability, and trade policies can significantly impact businesses.
Economic Factors: Economic growth, inflation, interest rates, unemployment, and currency exchange rates affect consumer spending and business investment.
Social Factors: Cultural values, demographics, lifestyle trends, and social attitudes influence consumer behavior and workforce characteristics.
Technological Factors:Technological advancements, automation, research and development, and innovation create opportunities and threats for businesses.
Legal Factors: Laws related to labor, environment, consumer protection, and competition impact how organizations operate.
Environmental Factors: Ecological and environmental aspects like climate change, resource scarcity, and sustainability concerns are increasingly important.
11. (b) Define Ethics. Explain the Sources of Ethics.
Definition: Ethics refers to moral principles and values that govern a person’s behavior or the conducting of an activity. In a business context, it involves making decisions and actions that are morally right, just, and fair, even if it impacts profitability.
Sources of Ethics:
Family: The values and moral principles instilled during childhood form the foundation of an individual’s ethical framework.
Culture: Societal norms, traditions, and beliefs about what is considered right or wrong influence ethical standards.
Religion: Religious teachings and beliefs provide a strong moral compass for many individuals.
Peers: The behavior and ethical standards of friends, colleagues, and reference groups can influence an individual’s ethical choices.
Education: Educational institutions play a role in shaping ethical reasoning and moral development.
Personal Experiences: Life experiences and the consequences of past actions can impact an individual’s ethical perspective.
Laws and Regulations: Legal frameworks set minimum ethical standards for businesses and individuals.
Professional Codes of Conduct: Many professions have their own ethical guidelines and codes of conduct.
12. (a) How can you distinguish between Strategies and Policies?
Feature Strategy Policy
Definition:A comprehensive plan of action designed to achieve long-term goals. A set of guidelines, rules, and procedures designed to implement strategies.
Scope Broad and overarching, focusing on the “what” and “why” of organizational direction. Narrower and more specific, focusing on the “how” of implementation.
Time Horizon Long-term, typically spanning several years. Relatively shorter-term, guiding day-to-day actions.
Focus Setting the direction and making major decisions. Providing a framework for decision-making and action within that direction.
Flexibility More flexible and adaptable to changing circumstances. Less flexible, providing consistency and stability.
Examples Entering a new market, developing a new product, merging with another company. Pricing policy, hiring policy, customer service policy.
12. (b) “Decision Making is the primary task of the manager”. Comment.
This statement highlights the crucial role of decision-making in management. Managers at all levels are constantly faced with making choices that impact the organization’s performance. Here’s why decision-making is considered primary:
Pervasive Function: Decision-making is inherent in all other managerial functions like planning, organizing, leading, and controlling.
Problem Solving: Managers make decisions to solve problems, address challenges, and capitalize on opportunities.
Resource Allocation: Decisions involve allocating scarce resources like funds, personnel, and time effectively.
Setting Direction: Strategic decisions determine the long-term direction and goals of the organization.
Driving Performance: Effective decision-making leads to improved efficiency, productivity, and profitability.
Adaptation and Innovation: Managers make decisions to adapt to changing environments and foster innovation.
While decision-making is undeniably a primary task, it’s important to acknowledge that managers also engage in other essential activities like communication, motivation, team building, and conflict resolution. However, decision-making forms the core of their responsibility to guide the organization towards its objectives.
13. (a) Discuss the process of organizing. Explain the logic involved in it.
Organizing is the management function that involves arranging and structuring work to accomplish the organization’s goals. The process typically involves:
Identifying and Grouping Activities: Dividing the overall work into smaller, manageable tasks and grouping similar tasks into departments or units.
Assigning Duties and Responsibilities: Clearly defining the tasks and responsibilities of each individual or team.
Establishing Authority and Hierarchy: Creating a chain of command that clarifies who reports to whom and who has the authority to make decisions.
Coordinating Activities: Developing mechanisms to ensure that different departments and individuals work together effectively towards common goals.
Allocating Resources: Providing the necessary resources (financial, human, material) to each department or individual to carry out their tasks.
Logic Involved:
The logic behind organizing is to create a structure that facilitates efficiency, coordination, and control. It aims to:
Specialize: Allow individuals to focus on specific tasks, leading to increased expertise and productivity.
Departmentalize: Group related activities to improve coordination and efficiency within departments.
Establish Accountability: Clearly define responsibilities to ensure that individuals are held accountable for their performance.
Streamline Communication: Create clear channels of communication to facilitate information flow and collaboration.
Maximize Resource Utilization: Allocate resources effectively to avoid duplication and waste.
13. (b) How can you avoid mistakes in organizing by planning?
Effective planning can significantly minimize mistakes in organizing. Here’s how:
Clear Objectives: Well-defined organizational objectives provide a clear direction for organizing activities and structuring the organization.
Forecasting Future Needs: Anticipating future resource requirements and organizational changes through planning allows for proactive adjustments in the structure.
Developing Alternative Structures: Considering different organizational structures during the planning process helps in choosing the most suitable one.
Defining Roles and Responsibilities: Clearly outlining roles and responsibilities in the planning stage reduces ambiguity and overlaps in the organizational structure.
Establishing Communication Channels: Planning for communication channels ensures effective information flow within the organization.
Contingency Planning: Preparing for unexpected events and changes through contingency planning allows for quick adjustments in the organizational structure.
Regular Review and Evaluation: Periodically reviewing and evaluating the organizational structure ensures that it remains aligned with the organization’s goals and changing environment.
14. (a) Explain the merits and demerits of different means of motivation.
Motivation is the driving force that compels individuals to act and achieve goals. Different means of motivation include:
Financial Incentives:
Merits: Can be a powerful motivator, especially for short-term performance improvements.
Demerits: Can be costly, may lead to a focus on quantity over quality, and may not be effective in the long run.
Non-Financial Incentives:
Merits: Can address intrinsic needs like recognition, achievement, and personal growth, leading to higher job satisfaction and long-term motivation.
Demerits: May not be equally effective for all individuals, and may be difficult to implement and measure.
Examples of Non-Financial Incentives:
Recognition and Appreciation: Publicly acknowledging and appreciating employees’ contributions.
Increased Responsibility and Autonomy: Empowering employees to make decisions and take ownership of their work.
Positive Work Environment: Creating a supportive and inclusive work culture.
Work-Life Balance: Offering flexible work arrangements and promoting employee well-being.
14. (b) What is the role of coordination in management?
Coordination is the process of integrating and harmonizing the activities of different individuals and departments to achieve organizational goals effectively. Its role in management is crucial for the following reasons:
Unity of Effort: Coordination ensures that all individuals and departments work together towards common objectives, avoiding duplication and conflicts.
Effective Communication: It facilitates clear communication and information sharing among different parts of the organization.
Resource Optimization: Coordination helps in allocating and utilizing resources efficiently, avoiding waste and overlaps.
Improved Efficiency and Productivity: When activities are coordinated, tasks are completed smoothly and efficiently, leading to higher productivity.
15. (a) Define controlling as a managerial function. Explain the basic control process.
Definition: Controlling is the management function concerned with monitoring organizational performance, comparing it against predetermined standards or objectives, and taking corrective action when necessary to ensure that goals are being met. It ensures that activities are going as planned.
Basic Control Process:
Establishing Standards: The first step is to set clear performance standards or benchmarks. These standards should be specific, measurable, achievable, relevant, and time-bound (SMART). They can be quantitative (e.g., sales targets, production volume) or qualitative (e.g., customer satisfaction, employee morale).
Measuring Actual Performance: This involves gathering data and information about the actual performance of individuals, departments, or the organization as a whole. Various methods can be used, such as reports, observations, inspections, and surveys.
Comparing Actual Performance with Standards: The measured performance is compared against the established standards to identify any deviations or variances. This step helps determine whether performance is above, below, or in line with expectations.
Taking Corrective Action: If deviations are significant, corrective action is taken to address the root causes and bring performance back in line with standards. This may involve revising plans, reallocating resources, improving processes, or providing additional training.
Feedback and Review: The control process is not complete without feedback and review. The information gathered during the process is used to evaluate the effectiveness of the control system and make necessary adjustments for the future.
15. (b) Explain how direct control is different from preventive control.
Feature Direct Control Preventive Control
Focus Correcting deviations after they have occurred. Preventing deviations before they occur.
Timing Reactive; takes action after the problem is identified. Proactive; aims to avoid problems in the first place.
Approach Relies on monitoring performance and taking corrective action. Focuses on designing systems and processes to minimize the likelihood of errors.
Cost May be more costly in the short term due to addressing immediate problems. Can be more cost-effective in the long run by preventing costly errors.
Examples Investigating a drop in sales and implementing a new marketing campaign. Implementing quality control measures during production to prevent defects.
16. (a) What are the outcomes of the Hawthorne Studies?
The Hawthorne Studies, conducted at the Hawthorne Works of the Western Electric Company in the 1920s and 1930s, had a profound impact on management thinking. Some key outcomes include:
The Hawthorne Effect: The finding that individuals modify their behavior when they know they are being observed. This highlighted the importance of social and psychological factors in the workplace.
Importance of Human Relations: The studies emphasized the significance of social interaction, communication, and teamwork in influencing employee morale and productivity.
Informal Groups: The research revealed the existence and influence of informal groups within organizations, which can impact productivity and behavior.
Employee Motivation: The studies showed that factors beyond just pay and working conditions, such as recognition, belonging, and a sense of purpose, can motivate employees.
Shift from Scientific Management: The Hawthorne Studies marked a shift away from the purely task-oriented focus of scientific management towards a greater emphasis on human factors in the workplace.
16. (b) Discuss the various functions of management.
The primary functions of management are often categorized as:
Planning: Defining organizational goals, developing strategies, and determining the activities and resources needed to achieve those goals.
Organizing: Arranging and structuring work, assigning tasks, establishing authority relationships, and coordinating activities to achieve organizational objectives.
Leading (Directing): Influencing and motivating individuals and teams to achieve organizational goals. This involves communication, leadership style, and building a positive work environment.
Controlling: Monitoring performance, comparing it against standards, and taking corrective action to ensure that goals are being met.
Staffing: (Sometimes listed separately or included within organizing) This function involves acquiring, developing, and retaining qualified personnel to fill various roles within the organization.
17. (a) Explain the steps in the planning process.
The typical steps in the planning process include:
Defining Objectives: Setting clear and specific goals that the organization wants to achieve.
Developing Premises: Making assumptions about the future environment in which the plan will operate.
Identifying Alternatives: Generating different courses of action to achieve the objectives.
Evaluating Alternatives: Assessing the pros and cons of each alternative and selecting the best option.
Developing Plans: Formulating detailed action plans, including timelines, resource allocation, and responsibilities.
Implementing Plans: Putting the plans into action and communicating them effectively to those involved.
Monitoring and Controlling: Tracking progress, comparing it against planned performance, and taking corrective action as needed.
17. (b) What do you understand by objective? How important are they in managing an organization? Illustrate.
Definition: An objective is a desired outcome or a specific result that an organization aims to achieve. Objectives provide direction and purpose, guiding the actions of individuals and teams.
Importance in Managing an Organization:
Direction and Focus: Objectives provide a clear direction for everyone in the organization, aligning their efforts towards common goals.
Basis for Decision-Making: Objectives serve as a framework for making decisions about resource allocation, strategies, and actions.
Performance Measurement: Objectives provide measurable benchmarks against which actual performance can be evaluated.
Motivation and Commitment: Clear objectives can motivate employees by providing a sense of purpose and achievement.
Coordination: Objectives help coordinate the efforts of different departments and individuals, ensuring that everyone is working towards the same goals.
Illustration:
Example Objective: Increase market share for product X by 15% in the next year.
Importance Illustrated: This objective provides a clear target for the marketing and sales teams. It helps in making decisions about advertising campaigns, pricing strategies, and sales efforts. It also allows management to track progress and measure the success of the initiatives.
18. (a) Explain how formal organization is different from informal organization? Illustrate.
Feature Formal Organization Informal Organization
Structure Officially established structure with clearly defined roles, responsibilities, and hierarchy. Emerges naturally based on social interaction and relationships among individuals.
Communication Follows formal channels of communication. Flows freely through various networks and channels. Authority Based on position and hierarchy within the organization. Based on influence, respect, or expertise.
Rules and Regulations Guided by formal rules, policies, and procedures. Governed by informal norms, values, and social expectations.
Examples Departments, teams, project groups. Friendship groups, interest groups, cliques.
Illustration:
Formal Organization: The marketing department of a company, with a defined structure, roles (marketing manager, marketing specialist, etc.), and reporting relationships.
Informal Organization: A group of employees from different departments who regularly meet for lunch and share personal interests or discuss work-related issues outside the formal channels.
18. (b) What do you understand by authority and power? How are they different from each other?
Authority: The legitimate right granted to a position to give orders, make decisions, and allocate resources. It is formally conferred by the organization.
Power: The capacity to influence others, regardless of position. It can stem from various sources, such as expertise, knowledge, charisma, or social influence.
Differences:
Feature Authority Power
Legitimacy Legitimate right conferred by the organization. Can be legitimate or based on other factors like expertise or charisma.
Position Attached to a specific position within the hierarchy. Can be exercised by anyone, regardless of their position.
Acceptance Subordinates are expected to comply due to the position of authority. Compliance is based on influence and the ability to persuade or influence.
Formal vs. Informal Part of the formal organizational structure. Can be formal or informal.
In essence, authority is the right to influence, while power is the capacity to influence. A manager may have authority due to their position, but their actual power depends on how effectively they can influence others.
19. (a) Explain different styles of leadership based on authority.
Leadership styles based on authority can be broadly categorized as:
Autocratic Leadership:
Description: The leader makes decisions unilaterally, with little or no input from subordinates. They exercise strong control and expect obedience.
Characteristics: Centralized authority, top-down communication, close supervision, and emphasis on task completion.
Advantages: Fast decision-making, clear direction in crisis situations, and efficient when dealing with simple tasks.
Disadvantages: Can stifle creativity, lower morale, create dependency, and lead to resentment.
Democratic (Participative) Leadership:
Description: The leader involves subordinates in the decision-making process, seeking their input and considering their suggestions. They encourage participation and collaboration.
Characteristics: Decentralized authority, two-way communication, delegation of tasks, and focus on teamwork.
Advantages: Improved morale, increased creativity, better decision-making through diverse input, and greater acceptance of decisions.
Disadvantages: Slower decision-making, potential for conflict, and may not be suitable for all situations (e.g., emergencies).
Laissez-Faire (Delegative) Leadership:
Description:<./strong> The leader provides minimal guidance or direction, giving subordinates a great deal of autonomy and freedom to make decisions and complete tasks as they see fit.
Characteristics: Very little supervision, decentralized decision-making, open communication, and reliance on self-control.
Advantages: Can empower highly skilled and motivated employees, foster innovation, and create a sense of ownership.
Disadvantages: Can lead to lack of direction, confusion, low productivity if employees are not self-motivated, and difficulty in maintaining control.
19. (b) Discuss the role of electronic media in communication.
Electronic media has revolutionized communication in organizations and in society as a whole. Its role can be described as:
Speed and Efficiency: Electronic media enables rapid transmission of information across geographical boundaries, improving efficiency and responsiveness.
Accessibility and Reach: It allows for communication with a large audience, both internally and externally, through various channels like email, websites, social media, and video conferencing.
Enhanced Collaboration: Tools like shared workspaces, online project management systems, and instant messaging facilitate teamwork and collaboration among geographically dispersed teams.
Improved Communication Flow: Electronic media enables easy sharing of information, updates, and feedback, improving communication flow within the organization.
Cost-Effectiveness: In many cases, electronic communication is more cost-effective than traditional methods like postal mail or face-to-face meetings.
Increased Transparency: Electronic platforms can be used to share information openly, increasing transparency and accountability.
Flexibility:<./strong> Electronic media allows for communication anytime, anywhere, providing greater flexibility for both senders and receivers.
Record Keeping: Electronic communication leaves digital trails, making it easier to store and retrieve information.
However, it’s important to acknowledge the potential drawbacks of electronic media, such as information overload, security concerns, privacy issues, and the potential for miscommunication due to lack of non-verbal cues.
20. (a) What are the features of PERT? Why is it popular?
PERT (Program Evaluation and Review Technique) is a project management tool used to schedule, organize, and coordinate tasks within a project.
Key Features:
Graphical Representation: PERT uses networks diagrams (nodes and arrows) to visualize the sequence and dependencies of project activities.
Activity Time Estimates: PERT uses probabilistic time estimates (optimistic, most likely, pessimistic) to account for uncertainty in activity durations.
Critical Path: PERT identifies the critical path, which is the longest sequence of activities that determines the shortest possible project duration. Any delay in critical path activities directly impacts the project completion time.
Slack/Float: PERT calculates the amount of slack or float time available for non-critical activities, indicating how much they can be delayed without affecting the project schedule.
Forward and Backward Pass: PERT uses forward and backward pass calculations to determine the earliest and latest start and finish times for each activity.
Popularity:
PERT is popular due to:
Effective Project Planning: It provides a structured framework for planning, scheduling, and monitoring complex projects.
Time Management: PERT helps in identifying the critical path and managing project timelines effectively.
Resource Allocation: It assists in allocating resources efficiently by identifying critical activities and potential bottlenecks.
Risk Management: PERT allows for incorporating uncertainty in activity durations and assessing the impact of potential delays.
Communication and Coordination: The visual representation of project activities facilitates communication and coordination among project stakeholders.
20. (b) Explain in detail about TQM and Six Sigma.
Total Quality Management (TQM):
TQM is a management philosophy focused on continuous improvement in all aspects of an organization, with a strong emphasis on customer satisfaction. It involves engaging all employees in improving processes, products, and services.
Key Principles of TQM:
Customer Focus:Understanding and meeting customer needs and expectations.
Continuous Improvement: Constantly seeking ways to improve processes and quality.
Employee Empowerment: Involving employees in decision-making and problem-solving.
Process Management: Focusing on improving the processes that deliver products and services.
Supplier Involvement: Building strong relationships with suppliers to ensure quality inputs.
Leadership Commitment: Leaders must champion the quality cause and provide resources and support.
Six Sigma:
Six Sigma is a data-driven methodology focused on minimizing defects and variability in processes to improve quality and efficiency. It aims to reduce defects to 3.4 per million opportunities.
Key Concepts of Six Sigma:
DMAIC Cycle: A structured problem-solving approach consisting of Define, Measure, Analyze, Improve, and Control.
Statistical Tools: Utilizes various statistical tools and techniques to analyze data and identify root causes of defects.
Process Variation: Focuses on reducing variation in processes to improve consistency and predictability.
Customer Focus: Defines quality from the customer’s perspective and aims to meet their requirements.
Relationship between TQM and Six Sigma:
Six Sigma can be considered a specific implementation of TQM principles. While TQM provides the overall philosophy and framework for quality management, Six Sigma offers a specific methodology and set of tools for achieving measurable quality improvements. Six Sigma initiatives often fall under the umbrella of a broader TQM program.