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Principles and Practices of Management

IIBM Institute of Business Management

Examination Paper

MM.100
Principles and Practices of Management

Subject Code-B101
Section A: Objective Type & Short Questions (30 marks)

This section consists of multiples choice and short notes type questions

Part one carries 1 mark each & part two carries 5 marks each.
Attempt all questions

Part One

Multiple Choices:

1. A plan is a trap laid to capture the ________
a. Future A
b. Past

c. Policy

d. Procedure

2. Which of the following is the function for employing suitable person for the enterprise?

a. Organizing

b. Staffing A

c. Directing

d. Controlling

3. ___________ means “ group of activities & employees into departments”:

a. Orientation

b. Standardization

c. Process

d. Departmentation A

4. This theory states that authority is the power that is accepted by others:

a. Acceptance theory A

b. Competence theory

c. Formal authority theory

d. Informal authority theory

5. Which of the following means dispersal of decision-making power to the lower levels of the organization?
a. Decentralization A

b. Centralization

c. Dispersion
d. Delegation

6. This chart is the basic document of the organizational structure:

a. Functional chart

b. Posts chart

IIBM Institute of Business Management
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Principles and Practices of Management

c. Master chart
c. Departmental chart A

7. Communication which flow from the superiors to subordinates with the help of scalar chain is known as:
a. Informal communication
d. Downward communication A

b. Upward communication
c. Oral communication

8. Needs for belongingness, friendship, love, affection, attention & social acceptance are comes under___________

a. Physiological needs
b. Safety needs

c. Ego needs
e. Social needs A

9. A management function which ensures “jobs to be filled with the right people, with the right knowledge, skill & attitude” is comes under__________

f. Staffing defined A

a. Job analysis

b. Manpower planning

c. Recruitment

10. It is a process that enables a person to sort out issues and reach to a decisions affecting their life:

a. Selection

b. Raining

c. Reward
g. Counseling A

Part Two:-

1. What do you understand by Maslow‟s Theory of Motivation?

Abraham Maslow (1908 - 1970) was a psychology professor who founded the Humanistic Psychology discipline. In 1943 he published a paper called "A Theory of Human Motivation" in which he first presented his hierarchy of needs theory.
Maslow grouped human needs into five categories...
Physiological Needs are the basic elements the human body needs to survive. These are food, water, and sleep.
Safety Needs are the items a person needs to feel safe from physical or economic harm.
Social Needs include the desire to give and receive affection and to be part of a group.
Esteem Needs have to do with the recognition received from others as well as with self-esteem.
Self-Actualization Needs are the desires an individual has for self-fulfillment and developing to their full potential.
According to Maslow's theory, the needs form a hierarchy. If the lower level needs haven't been met, a person will try to satisfy those needs before trying to satisfy higher level needs. Once the lower level needs have been satisfied, a person will then focus their behavior on the needs of the next level.
This can be visualized using the Maslow Pyramid diagram. The lower foundation levels of the pyramid need to be satisfied before a person will consider higher level needs important enough to do something about.
Maslow Theory of Motivation Pyramid
Employee Motivation Techniques Using the Maslow Pyramid
Now that you are aware of the theory, the way to apply it is to try to have the members of your team working at the highest level. Knowing your team members as individuals and working to understand their specific needs will help you identify what actions are needed on your part to keep them motivated.
When building your team, try to make sure that lower level needs are met. When you encounter a motivational issue, try to find out if there are lower level needs that are not being met, and take steps to meet them if possible.
Here are some employee motivation techniques for you to try that use Maslow's Hierarchy of Needs as a framework...
Physiological Needs
Provide input for employee salaries and bonuses.
Safety Needs
Ensure the correct tools for the job are available.
Create an environment where individuals are comfortable challenging requests that are dangerous.
Social Needs
Schedule weekly project team meetings.
Get the team together to celebrate project milestones.
Esteem Needs
Recognize team members for excellent contributions to the project.
Ensure each team member understands how important they are to the project.
Self-Actualization Needs
Take into account each team members professional goals when assigning tasks.
Empower team members so that they can develop and grow.
A person's behaviour can focus on more than one need. For example, one of your team members may be actively seeking promotion because it will lead to a higher salary (physiological need). But the promotion can also satisfy esteem and self-actualization needs. Even though the needs are described as hierarchical, application of the theory isn't as rigid.
The Maslow Theory of Motivation is a great tool for Project Managers to understand and use. It can help you keep your team motivated as well as correct motivational issues.

2. Define Management By Objective.

Management by objectives (MBO), also known as management by results (MBR), is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them.
The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.
According to George S. Odiorne, the system of management by objectives can be described as a process whereby the superior and subordinate jointly identify its common goals, define each individual's major areas of responsibility in terms of the results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.
Features and advantages
Behind the principle of MBO is for employees to have a clear understanding of the roles and responsibilities expected of them. Then they can understand how their activities relate to the achievement of the organization's goal. Also places importance on fulfilling the personal goals of each employee.
Some of the important features and advantages of MBO are:
1. Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment. This increases employee job satisfaction and commitment.
2. Better communication and coordination – Frequent reviews and interactions between superiors and subordinates help to maintain harmonious relationships within the organization and also to solve problems.
3. Clarity of goals
4. Subordinates tend to have a higher commitment to objectives they set for themselves than those imposed on them by another person.
5. Managers can ensure that objectives of the subordinates are linked to the organization's objectives.
6. Common goal for whole organization means it is a directive principle of management.

3. Differentiate between co- ordination and co-operation.

both the terms coordination and cooperation are the management words which are used frequently and both are equally important for an organizations to meet their goals and bringing them into future success. Both the terms coordination and cooperation has a quite different meanings and should get confused so far.
Coordination is nothing but involving. It is the unification, integration, synchronization which includes the efforts of group members so as to provide unity of action in the pursuit of common goals in an organization. Management mainly seeks to achieve co-ordination through its basic functions of planning, organizing, staffing, directing and controlling. Cooperation denotes collective efforts of persons working in an enterprise voluntarily for the achievement of a particular purpose. It is the eagerness of individuals to help each other.
The major differences between them are:
Coordination establishes formal and informal relationships and is an act of coordinating in organizations where individuals working in a team sharing the common resources to reach their goals. Cooperation is an informal arrangement in which the individual agencies or stakeholders maintain their separate mandates and responsibilities, but do some work together in order to meet a common goal.
Cooperation provides the foundation for coordination by enlisting voluntary efforts which facilitate coordination, but by itself it cannot guarantee coordination. Coordination does not arise automatically from the voluntary efforts of the manager. For instance, a group of six people who attempt to move a heavy object should be willing and eager to cooperate with one another. They should be fully aware of their purpose and should try their level best to move the object, but they cannot be successful in their attempt unless one of them coordinates their efforts. Cooperation is a necessary, but not a sufficient condition of coordination.
Both the terms differs in scope, as coordination is broader in scope than co-operation. It includes both co-operation and deliberate efforts to maintain unity of action and purpose.
Cooperation is the essence of management and it is vital for the success of all managerial functions. Cooperation does not enjoy the status of essence of management. Cooperation is no doubt essential for successful coordination but it is more of personal attitude rather than organizational. This is referred as difference in status term.
And one more difference here is, in the organization, the nature of work is such that it needs to be divided and then integrated. Coordination of all interdependent activities is highly necessary, but co-operation does not arise out of any limitations of organization structure. The individuals may learn to co-operate with each other even though their activities may not be related.
So finally both terms conclude that Coordination is the basis of all managerial functions while cooperation is an attitude of an individual or group. Need for coordination arises due to limitations of formal organization structure but cooperation is necessary even in case of non-interdependent activities.

4. Write a short note on „Acceptance theory‟.

END OF SECTION A

IIBM Institute of Business Management
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Principles and Practices of Management

Section B: Caselets (40 marks)

This section consists of Caselets.

Answer all the questions.
Each Caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 150-200 words).

Caselet 1

Mr. Vincent, the Manager of a large supermarket, was taking a management course in the evening programme at the local college. The Professor had given an interesting but disturbing lecture the previous night on the various approaches to management. Vincent had always thought that management involved just planning, organizing and controlling. Now this Professor was saying that management could also be thought of as quantitative models, systems theory and analysis, and even something called contingency relationships. Vincent had always considered himself a good manager, and his record with the supermarket chain had proved it. He thought of himself, “I have never used operations research models, thought of my store as an open system, or developed or utilized any contingency relationship. By doing a little planning ahead, organizing the store, and making some things got done, I have been a successful manager. That other stuff just does not make sense. All the professor was trying to do was complicate things. I guess I will have to know it for the test, but I am sticking with my old plan, organize and control approach to managing my store.”

Questions:

1. Critically analyze Mr. Vincent‟s reasoning.
2. Answer:
Mr. Vincent the Manager of a large supermarket has been a successful Professional. Vincent has efficiently involved in planning, organizing and controlling. Planning is a prerequisite of doing anything. It leads 15 more effective faster achievements in any organizations and enhances the ability of the organization to adapt to future eventualities. Vincent has adopted this important principle of determining the objectives of forecasting his business of supermarket and budgeting. Vincent has also involved in organizing which involves identification & grouping the activate to be performed and deciding then among the staff and creating authority and responsibility among then Vineet has Implemented organizing which contribute to the efficiency of his supermarket. He has organized units in such a way and delegations it to individuals so that each individual is directly responsible and answerable for therein respective unit ultimately Mr. Vincent can have a collective control & knowledge of business in each of his units. Hence organizing contributes to the efficiency of the organization. Thirdly Mr. Vincent has been implementing controlling which is a success factor where has been initializing the actual performance versus impacted performance which is nothing but the measurement & appraisal of activities performed by his (sales) subordinates to meet the plans of his supermarket. Receivers are conducted to have a check on the sales happening as unpaired to actual impacted as per the budget plans which gives a clear understanding of how the organization is progressing towards profit 2 turnovers and eventually programs plan for the individual appraisal programs. Hence Mr. Vincent is correct in his thought that planning organizing & controlling.

3. If you were the professor and you knew what was going through Vincent‟s mind, what would you say to Vincent?

Answer:
Mr. Vincent, the Manager of a large supermarket, was taking a management course in the evening programme at the local college. The Professor had given an interesting but disturbing lecture the previous night on the various approaches to management. Vincent had always thought that management involved just planning, organizing and controlling. Now this Professor was saying that management could also be thought of as quantitative models, systems theory and analysis, and even something called contingency relationships. Vincent had always considered himself a good manager, and his record with the supermarket chain had proved it. He thought of himself, “I have never used operations research models, thought of my store as an open system, or developed or utilized any contingency relationship. By doing a little planning ahead, organizing the store, and making some things got done, I have been a successful manager. That other stuff just does not make sense. All the professor was trying to do was complicate things. Guess I will have to know it for the test, but I am sticking with my old plan, organize and control approach to managing my store.

Caselet 2

The Regional Administration Office of a company was hastily set up. Victor D‟Cuhna a young executive was directly recruited to take charge of Data Processing Cell of this office. The data processing was to help the administrative office in planning and monitoring. The officer cadre of the administrative office was a mix of directly recruited officers and promote officers (promotion from within the organization).

Females dominated the junior clerical cadre. This cadre was not formally trained. The administrative office had decided to give these fresh recruits on-the-job training because when results were not upto the expectations blame was brought on the Data Processing Cell. Victor D‟Cuhna realized that the administrative office was heading for trouble. He knew that his task would not be easy and that he had been selected because of his experience, background and abilities. He also realized that certain functional aspects of the administrative office were not clearly understood by various functionaries, and systems and procedures were blindly and randomly followed. Feedback was random, scanty and controversial, and Data Processing Cell had to verify every item of feedback. Delays were inevitable.

D‟Cuhna sought the permission of senior management to conduct a seminar on communication and feedback of which he was an expert. The permission was grudgingly given by the senior management.

Everyone appreciated the seminar. Following the first seminar, D‟Cuhna conducted a one week training course for the clerical cadre, especially for the junior, freshly recruited clerks. Amongst other

IIBM Institute of Business Management
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Principles and Practices of Management

topics, D‟Cuhna laid emphasis onfiling system, information tracking, communication, and feedback. This helped reorient attitudes to some extent. But the female clerks preferred to ignore the theme and widely circulated the belief that D‟Cuhna was an upstart and a show off. Within a short time, considerable friction had been generated in the administrative office While directly recruited officers supported D‟Cuhna‟s initiative and the specialist officers admired him, senior management became cautious and uncomfortable. The junior promotee officers were prejudiced against him. The grand finale followed swiftly. D‟Cuhna happened to get annoyed with a female clerk. During the absence of her officer, who was on sick leave and had not been substituted by another officer, she began submitting nil returns. D‟Cuhna took pains to explain to her that for certain topics a nil feedback was not tenable. The current status had to be reported— the stage at which the matter was pending, what had been done, and what would be done about it? The lady reported that it was none of his business to tell her this. He should talk to her officer when the officer reports back from leave. D‟Cuhna said he would, but in the meanwhile she should present the correct picture. When D‟Cuhna called for the files, she refused to part with them. D‟Cuhna fired her and reported the situation to the Chief Regional Manager. The other ladies were up in the arms against D‟Cuhna. The lady also complained to higher management that D‟Cuhna had made passes at her. Other ladies supported her complaint. She also complained that D‟Cuhna had no business to scold her. D‟Cuhna countered that had there been a male clerk in her place he would have scolded him too. When females enjoyed equal rights with males,

D‟Cuhna felt he must remain impartial. Nevertheless, D‟Cuhna was transferred to another place. The transfer to another place, rather than to another department in same place, was particularly humiliating to him. A shocked and disillusioned D‟Cuhna quit the enterprise

Questions:

1. Diagnose the problem and enumerate the reasons for the failure of D‟Cuhna?
Answer:
D’Cuhna was doomed to fail from the beginning considering that he had inherited an office which was hastily set up without adequate thought and proper planning. The junior clerical cadre was manned by female employees who were not adequately trained to handle the job requirements. There was too much focus on rules and procedures and lack of proper communication between the clerical cadre and staff employees. Lack of experience among various employees also left the administrative office struggling with routine jobs which took exceptionally long time to accomplish. Though D’Cuhna tried to remedy the situation by giving classes in communication to the clerical cadre and train them to handle their responsibilities in a better manner, it was too little, too late.

2. What could D‟Cuhna have done to avoid the situation in which he found himself?

Answer:
At the inception of the administrative office itself, D’Cuhna could have taken a series of steps to ensure that the office lived up to the expectations of the senior management. This involved carrying out adequate training to the clerical cadre, including detailed communication sessions to ensure that they shared the same vision and deliverables of the administrative office as the officer cadre. D’Cuhna could also have asked for more representative junior clerical cadre employees comprising of both male and female population. This would have ensured better accountability matrix and adequate bonding between the clerical and senior staff. Lastly, D’Cuhna should have adequately represented the initial teething problems in establishing a proper functional office to the senior management and ensured their unstinted support to the various change initiatives crucial for ensuring a proper operational environment.

END OF SECTION B

Section C: Applied Theory (30 marks)

This section consists of Applied Theory Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should form the part of your answer (Word limit 200-250 words).

2. What are the common drawbacks in classical and Neo classical theories of management?
Answer:
1)Both theories were based on certain assumptions and in both cases assumptions were found unrealistic and not applicable to the organizations at a later date
2)Both theories had limited applicability and were not universal in their approach. With the changing times several other sectors had cropped up and dynamics and working conditions were changing, whereas both the theories were based primarily on manufacturing sector.
3)Though both the theories were based on human aspect and laid emphasis on it they failed to take into account all the aspects of the human behavior
4)Both the theories took a rigid and static view of the organization, whereas an organization is not static but dynamic
Many management Gurus believe that neo classical theory is just a slight extension of the classical theory with slight modifications and its bankrupt, because it suggests nothing new.
Classical theories of management relate to the earliest theories of management that really led to recognition of management as and independent discipline of work and study. These included the ideas of pioneers like Fredrick W. Taylor, Frank Gilbreth. Max Weber and Henry Fayol. These theories came into being beginning from late nineteenth century and were considered the core of management theory till about 1930's.
Neo-classical theories of management developed during 1920's and later. These can be broadly divides in two groups - theories related to human aspects of management, and quantitative management techniques.
Each of the theories under classical and neo-classical groups have their own values and limitations. But when we come to the common drawbacks of these theories, i can think of only one. All these theories concentrated on some limited aspect of management, and treated is as if it is the sole or most important aspect of management. Also, as would be natural to any developing discipline of management. Thus while people like Taylor concentrated too much on physical aspects of work, people connected with Hawthorne Studies, erroneously believed that they have discovered truths about shop-floor practices of workmen till then totally unknown to others, and concluded that the key to management lies only in promoting appropriate group behavior.

3. What is Training? Explain the different methods of training.

Answer:
Training is essentially the instructing of others in information new to them and its application. It may, and often does, involve the teaching of new skills, methods and procedures.
Very few people are born trainers, and most of those who wish to be trainers require training. Even those few who are born trainers benefit from training, and their effectiveness is enhanced as a result.
The most important element in a training situation is the trainer. The trainer who is enthusiastic, energetic and genuinely interested in both the subject and getting his or her message across will evoke the greatest response from the trainees. The trainer who lacks interest in training, who has little or no enthusiasm for the subject of the training and who merely goes through the motions of training is a failure. Such a trainer wastes not only his or her own time but also that of the trainees. The inept trainer is quickly identified by the trainees, who react with inattention, lassitude, undisciplined behavior and absence from training sessions.
Successful training - that which produces the desired result - lies almost entirely in the hands of the trainer. In the trainer's hands lies the heavy responsibility for ensuring that the trainees achieve the maximum possible from the training.
A measure of the success of training is the relationship that develops between trainer and trainees. In a sound, productive training situation there is mutual respect and trust between them, with the trainer taking care to ensure that even the weakest trainee performs to the highest possible level, and the trainees feeling a desire within them to achieve. In this situation the trainer is the motivator and the trainees are the motivated.
It is intended that the modules that follow will be of assistance to those wishing to train and those already training.
The modules have been arranged as follows: •Module 1: Principles of effective communication - "Getting the message across" •Module 2: Effective oral communication •Module 3: Why train? The trainer's role and responsibility •Module 4: Methods of training - The right method •Module 5: The art of questioning •Module 6: Types of training aids - How to make and use them •Module 7: Planning and delivering a presentation •Module 8: Evaluating training •Module 9: Testing trainee trainers - Individual presentations •Module 10: Organizing and managing a training course
The above arrangement is systematic. Modules 1 and 2 deal with training theory. Module 3 is transitional in that it links the theory with the applied training methods covered by Modules 4 to 7. Modules 8 and 9 cover the important aspect of measuring and assessing the effectiveness of the training and the trainer. Module 10 is related to the management of training or, in other words, creating a favorable environment in which to train.
It is important that all members of a training team be familiar with the principles espoused in the training modules. This ensures that every presentation in a training course embodies the principles and in itself is a demonstration of the application of those principles: the trainees are not only told how to train, but see how it should be done.
It is stressed that the modules are not intended to constitute a textbook on training. Essentially, their contents are intended as memory joggers for those trained to train others. For this reason, and depending on the nature of the subject, some material is presented in point form while other material is covered by full text.
METHODS OF TRAINING
Training is a planned, continuous effort by management to improve employee competence levels and organizational performance.
Training is a learning process whereby a person acquires capabilities to aid in the achievement of organizational goals.
Training is designed to provide employees with knowledge and skills needed for their present jobs. Training prepared employees to keep pace with the organizational as the company changes and grows.
Training is important that a company provides both training and development so that it may run smoothly both now and in future time of transition.
IMPORTANCE OF TRAINING
1.Productivity – Training helps in increasing the productivity of the employees that helps the organization further to achieve its long-term goal.
2.Team spirit – Training helps in inculcating the sense of team work, team spirit, andinter-team collaborations. It helps in inculcating the zeal to learn within the employees.
3.Organization Culture – Training helps to develop and improve the organizational health culture and effectiveness. It helps in creating the learning culture within the organization.
4.Organization Climate – Training helps building the positive perception and feeling about the organization. The employees get these feelings from leaders, subordinates, and peers.
5.Quality – Training helps in improving upon the quality of work and work-life.
6.Healthy work environment – Training helps in creating the healthy working environment. It helps to build good employee, relationship so that individual goals aligns with organizational goal.
7.Health and Safety – Training helps in improving the health and safety of the organization thus preventing obsolescence.
8.Morale – Training helps in improving the morale of the work force.
9.Image – Training helps in creating a better corporate image.
10.Profitability – Training leads to improved profitability and more positive attitudes towards profit orientation.

END OF SECTION C

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