Samreen Sultana BCD 101
Assignments
Program:B.COM (Semester-1)
Subject Name - Business Organization and Management Permanent Enrollment Number (PEN) – A1923514039(el)
Roll Number (SEN) – A1923514039(el)
Student Name – Samreen Sultana
Assignment A
Q1- What is Management? Discuss its essential features
Ans--The term ‘management’ conveys different meanings depending upon the context in which it is used.
The following are the important features or characteristics of management:
1. Management is getting things done.
A manager does not do any operating work himself but gets it done through others. He must motivate the subordinates for the accomplishment of the task assigned to them.
2. Management is an activity.
Management is a process of organized activity. It is concerned with the efficient use of resources like men, money and materials in the organization.
3. Management is a group activity.
Management cannot exist independent of the group or organization it manages. It is a cardinal part of any group activity and inspires workers to put forth their best efforts.
4. Management is a universal activity.
Management is a universal phenomenon. However, management principles are not universally applicable but are modified to suit the given situation and the type of organization.
5. Management is purposeful.
Management is a goal-oriented activity. It is concerned with the accomplishment of goal through its various functions like planning, organizing, staffing, directing, and controlling.
6. Management is a process of accomplishment of certain goals.
Management is a process which involves planning, organizing, directing and controlling the efforts of human resources in the use of material resources. These are the basic functions which every manager performs for the accomplishment of certain goals.
7. Management is an integrating process.
Management integrates men, machines and materials for performing various operations and accomplishing the stated goals. Thus, management acts as a catalytic agent in getting maximum productivity from all the resources.
8. Management is intangible.
Management is abstract and cannot be seen with the eyes. It is evidenced by the quality of the organization and the results. Thus, feeling of management is result-oriented.
9. Management is a profession.
Management is a profession because some of its established principles are being applied in practice. 10. Management is interdisciplinary.
This implies that, even though management has been developed as a separate discipline, it draws knowledge and concepts from other social sciences like psychology, sociology, anthropology, economics, and so on. Management integrates the ideas and concepts taken from these disciplines and presents newer concepts. These new concepts can be put into practice for managing the organizations.
11. Management is a science and an art.
Management has developed certain principles and laws which have wide applications. So it is treated as a science. It is also an art, because it is concerned with the application of knowledge for the solution of organizational problems.
12. Management is dynamic.
Management is dynamic because it adapts itself to the social changes and introduces innovation in methodology.
13. Management involves decision-making.
Management process involves decision-making at various levels for getting things done by others. It involves selecting the most appropriate alternative out of the several.
14. Management applies economic principles.
Management is the art of applying the economic principles that underline the control of men and materials in the organization.
15. Management is concerned with direction and control.
Management is concerned with the direction and control of the various activities. It deals particularly with the active direction of the human effort.
Q2.What is planning? Explain briefly the different types of Plans giving suitable examples.
Ans -- “Planning is the function that determines in advance what should be done. It consists of
Selecting the enterprise objectives, policies, programmes, procedures and other means of achieving these objectives
Types of Plans
Nature of plan
Definition
Nature
Example
Objective
Goal or target to be achieved
Basis of all plans
Increase sales by 10%
Policy
General statement or understanding to guide thinking
Boundary within which decisions are to be made
Employees are to be promoted on the basis of seniority
Strategy
Action plan to face environmental uncertainties
Relates the organization to its environment
Combative advertising to face price cuts by competitors
Procedure
Manner in which activities are to be performed
Sequence of steps
Purchase procedure
Rule
State what should and should not be done in a situation
Rigid plan, no space for discretion
No smoking in the factory
Programme
Combination plan for goal achievement
State activities and resources to be undertaken
Installation of a computer
Schedule
Time-table for activities
Specifies priority of work and time for each activity
Complete installation of computer within 3 months w.e.f march 2009
Budget
Statement of expected results and resources to be used
Quantitative and time bound plan of action
Produce 10000 tonnes of sugar next year
Project
Cluster of interrelated activities a separate unit
Scheme for deployment of resources
Construction of flyover
Q3.Explin in brief the essential features of a joint stock company?
Ans --
FEATURES OF JOINT STOCK COMPANY:---
• Legal formation:
No single individual or a group of individuals can start a business and call it a joint stock company. A joint stock company can come into existence only when it has been registered after completion of all the legal formalities required by the Indian Companies Act, 1956.
• Artificial person:
Just like an individual takes birth, grows, enters into relationships and dies, a joint stock company takes birth, grows, enters into relationships and dies. However, it is called an artificial person as it’s birth, existence and death are regulated by law.
• Separate legal entity:
Being an artificial person, a joint stock company has its own separate existence independent of it’s investors. This means that a joint stock company can own property, enter into contracts and conduct any lawful business in it’s “own” name. It can sue and can be sued by others in the court of law. The shareholders are “not” the owners of the property owned by the company. Also, the shareholders cannot be held responsible for any of the acts of the company.
• Common seal:
A joint stock company has a “seal”, which is used while dealing with others or entering into contracts with outsiders. It is called a common seal as it can be used by any officer at any level of the organization working on behalf of the company. Any document, on which the company's seal is put and is duly signed by any official of the company, becomes binding on the company.
For example, a purchase manager may enter into a contract for buying raw materials from a supplier. Once the contract paper is sealed and signed by the purchase manager, it becomes valid.
The purchase manager may leave the company or may be removed from his job or may have taken a wrong decision, yet, the contract is valid till a new contract is made or the existing contract expires.
• Perpetual existence:
A joint stock company continues to exist as long as it fulfils the requirements of law. It is not affected by the death, lunacy, insolvency or retirement of any of it’s investors. For example, in case of a private limited company having four members, if all of them die in an accident, the company will “not” be closed. It will continue to exist. The shares of the company will be transferred to the legal heirs of the members.
• Limited liability:
In a joint stock company, the liability of a member is limited to the amount he has invested.
While repaying debts, for example, if a person has invested only Rs.10,000 then only this amount that he has invested can be used for the payment of debts. That is, even if there is liquidation of the company, the personal property of the investor can not be used to pay the debts and he will lose his investment worth Rs.10,000.
• Democratic management:
Joint stock companies have democratic management and control. Since in joint stock companies there are thousands and thousands of investors, all of them cannot participate in the affairs of management of the company. Normally, the investors elect representatives from among themselves known as ‘Directors’ to manage the affairs of the company.
Q4.What is an organization? Distinguish between functional and product departmentation.
Ans --
Organizing is the process of integrating the physical, financial & human resources & establishing the productive relationship between them to establish pre- determined goals. It is concerned with the building up a stable framework or structure of various inter-related parts of the enterprise; each part having its own function & being centrally regulated.
Functional Departmentation
The most widely used form of departmentation is to group activities by function—the jobs to be done. Consistent with the idea of specialization and division of work, activities that are alike or similar are placed together in one department and under a single chain of command. For example, word processing, data-entry, and duplicating services may be grouped together into a clerical department or information processing center; sales and promotional activities into a marketing department; manufacturing assembly work into a production department; inspection and monitoring activities into a quality control department; and so on. As an enterprise undertakes additional activities, these new activities—for the most part—are simply added to the already existing departments.
Functional departmentation is a method that has been and still is successful in most organizations. It makes sense since it is a natural and logical way of arranging activities.
Grouping departments along functional lines takes advantage of occupational specialization by placing together jobs and tasks that are performed by people with the same kinds of training, experience, equipment, and facilities. Each supervisor is responsible primarily for an area of operation upon which his or her energy and expertise can be concentrated. Functional departmentation also facilitates coordination since a supervisor is in charge of one major area of activity. It is easier to achieve coordination this way than to have the same functions performed in different departments under different supervisors.
Product or Service Departmentation
Many companies utilize product or service departmentation. To departmentalize on a product basis means to establish each major product (or group of closely related products) in a product line as a relatively independent unit within the overall framework of the enterprise. For example, a food products company may choose to divide its operations into a frozen food department, a dairy products department, a produce department, and the like. Product departmentation can also be a useful guide for grouping activities in service businesses. For example, most banks have separate departments for commercial loans, installment loans, savings accounts, and checking accounts. Many home maintenance firms have separate departments for carpentry, heating, and air conditioning services.
Q5. (a) Distinguish between delegation and decentralization
(b) Explain in brief the significance of staffing.
Ans – (a) Delegation and Decentralization
Sr. No. DELEGATION
DECENTRALIZATION
1.
It is the process of devolution of authority. It is the end result which is achieved when delegation is systematically repeated up to the lowest level.
2.
It denotes relationship between a superior and a subordinate.
It denotes relationship between the top management and various departments or divisions. 3.
It is essential for management process.
It is optional as top management may or may not disperse authority.
4.
It can take place from one individual to another and be a complete process.
Decentralization is completed only when the fullest possible delegation is made at all levels of organization.
5.
It is a technique of management
It is a philosophy of management.
6.
The delegator exercises control over the subordinates.
The control may be delegated to departmental heads.
7.
Delegation of authority can take place without decentralization.
There cannot be decentralization without delegation. (b) Significance of staffing
Filling organisational positions: A basic problem faced by organizations throughout the world is the acute competition for good quality human resources. With increasing competition for human resources, the cost of acquiring them has increased manifold. Hence, there is a need for systematic staffing so that the organization can fill its various positions with good quality of personnel. Developing competencies: It is not sufficient that various organisational positions are filled but there should be development of competencies among personnel because of changing nature of job profile.
Retaining personnel: Apart from acquiring and developing personnel, retaining them in the organization is equally important. In order to retain their employees, organizations are adopting many methods having long term implications besides persuading the employees to remain with them. Enhances productivity: Staffing facilitates discovery of competent and qualified people to take up various positions in the organizations. Hence, it enhances productivity by placing the right people on the right jobs.
Development of workforce: Staffing is concerned with the placement, growth and development of all those members of the organization whose function is to get the things done through the efforts of other individuals. It helps development of people through the programmes of training.
ASSIGNMENT B
Q1.Compare Maslow’s Need Hierarchy theory with that of Herzberg’s Two factor theory.
Ans -- Maslow’s Need Hierarchy
1. Physiological Needs:
The physiological needs are at the top of the hierarchy because they tend to have the highest strength until they are reasonably satisfied. Until these needs are satisfied to the degree needed for the efficient operation of the body, the majority of a person’s activities will probably be at this level, and the other levels will provide him with little motivation. A famous saying ‘man can live on bread alone if there is no bread’ suggests that human beings first try to acquire necessities for their survival.
2. Safety Needs:
Once the physiological needs are satisfied to a reasonable level-it is not necessary that they are fully satisfied and degree of reasonableness is subjective – other levels of needs become important. In this hierarchy comes the need for safety, which is need for being free of physical danger or self-preservation. In the industrial society, safety needs may take considerable importance in the context of the dependent relationship of employees to employers.
As pointed out by McGregor, the safety needs may serve as motivators in such circumstances as arbitrary management actions, behaviour which arouses uncertainty with respect to continued unemployment and unpredictable administration of policy. Peter F. Drucker has suggested that one’s attitude towards security is an important consideration in choosing a job. Organization can influence these security needs either positively through pension plan, insurance plan, etc. – or negatively by arousing fears of being fired or laid off, or demoted.
3. Social Needs:
After the first two needs are satisfied, social needs become important in the need hierarchy.
Since man is a social being, he has a need to belong and to be accepted by various groups. When social needs become dominant, a person will strive for meaningful relations with others. If the opportunity for association with other people is reduced, men often take vigorous action against the obstacles to social intercourse. In the organization, workers form informal group environment.Such environment develops where the work is routine, tedious or over-simplified. This situation is made worse when workers are closely supervised and controlled, but have no clear channel of communication with management. In this type of environment, workers depend on informal groups for support of unfulfilled social needs such as affiliation.
4. Esteem Needs:
The esteem needs are concerned with self respect, self-confidence, a feeling of personal worth, feeling of being unique and recognition. Satisfaction of these needs produces feelings of selfconfidence, prestige, power and control. The satisfaction of esteem needs is not always obtained through mature or adaptive behaviour. It is sometimes generated by disruptive and irresponsible actions. Some of the social problems have their roots in the frustration of the esteem needs.
5. Self-actualization Needs:
Self-actualization is the need to maximize one’s potential, whatever it may be. This is related with the development of intrinsic capabilities which lead people to seek situations that can utilize their potential. This includes competence which implies control over environmental factors, both physical and social, and achievement. A man with high intensity of achievement needs will be restless unless he can find fulfilment in doing what he is fit to do. As Maslow has put it, “this need might be phrased as the desire to become more and more what one is, to become everything that one is capable of becoming.” Maslow suggests that the various levels are interdependent and overlapping, each higher-level need emerging before the lower-level need has been completely satisfied. Since one need does not disappear when another emerges, all needs tend to be partially satisfied in each area. When the peak of a need is passed, that need ceases to be the primary motivator. The next level need then begins to dominate. Even though a need is satisfied, it still influences behaviour because of interdependent and overlapping characteristics of needs.
Herzberg’s Two factor theory.
On analyzing the information from the interview, Herzberg concluded that there were two categories of needs essentially independent of each other affecting behaviour in different ways.
His findings are that there are some job conditions which operate primarily to dissatisfy employees when the conditions are absent, however, their presence does not motivate them in a strong way. Another set of job conditions operates primarily to build strong motivation and high job satisfaction, but their absence rarely proves strongly dissatisfying. The first set of job conditions has been referred to as maintenance or hygiene factors and second set of job conditions as motivational factors.
Hygiene Factors
According to Herzberg, there are ten maintenance or hygiene factors. These are company policy and administration, technical supervision, interpersonal relationship with supervisors, interpersonal relationship with peers, interpersonal relationship with subordinates, salary, job security, personal life, working conditions and status. These are not intrinsic parts of a job, but they are related to conditions under which a job is performed. They produce no growth in a worker’s output; they only prevent losses in worker’s performance due to work restrictions.
These maintenance factors are necessary to maintain at a reasonable level of satisfaction in employees. Any increase beyond this level will not provide any satisfaction to the employees; however, any cut below this level will dissatisfy them. As such, these are also called as dissatisfiers. Since any increase in these factors will not affect employee’s level of satisfaction, these are of no use for motivating them.
Motivational factors
These factors are capable of having a positive effect on job satisfaction often resulting in an increase in one’s total output. Herzberg includes six factors that motivate employees. These are: achievements, recognition, advancement, work itself, possibility of growth, and responsibility.
Most of these factors are related with job contents. An increase in these factors will satisfy the employees; however, any decrease will not affect their level of satisfaction. Since, these increase level of satisfaction in the employees; these can be used in motivating them for higher output.
Herzberg maintains that potency of various factors is not entirely a function of the factors themselves. It is also influenced by the personality characteristics of the individuals. From this point of view, individuals may be classified into two groups – motivation seekers and maintenance seekers. The motivation seekers generally are individuals who are primarily motivated by the ‘satisfiers’ such as advancement, achievement and other factors associated with work itself. On the other hand, the maintenance seekers tend to be more concerned with factors surrounding the job such as supervision, working conditions, pay, etc.
Q2.Critically examine Mc.Gregor’s Theory X and Theory y.
ANS –
In his 1960 book, The Human Side of Enterprise, Douglas McGregor proposed two theories by which to view employee motivation. He avoided descriptive labels and simply called the theories
Theory X and Theory Y. Both of these theories begin with the premise that management's role is to assemble the factors of production, including people, for the economic benefit of the firm.
Beyond this point, the two theories of management diverge.
Theory X
-Theory X assumes that the average person:
-Dislikes work and attempts to avoid it.
-Has no ambition, wants no responsibility, and would rather follow than lead.
-Is self-centered and therefore does not care about organizational goals.
-Resists change.
-Is gullible and not particularly intelligent.
Essentially, Theory X assumes that people work only for money and security.
Theory X - The Hard Approach and Soft Approach
Under Theory X, management approaches can range from a hard approach to a soft approach.
The hard approach relies on coercion, implicit threats, close supervision, and tight controls, essentially an environment of command and control. The soft approach is to be permissive and seek harmony with the hope that in return employees will cooperate when asked to do so.
However, neither of these extremes is optimal. The hard approach results in hostility, purposely low-output, and hard-line union demands. The soft approach results in ever-increasing requests for more rewards in exchange for ever-decreasing work output.
The optimal management approach under Theory X probably would be somewhere between these extremes. However, McGregor asserts that neither approach is appropriate because the assumptions of Theory X are not correct.
The Problem with Theory X
Drawing on Maslow's hierarchy, McGregor argues that a satisfied need no longer motivates.
Under Theory X the firm relies on money and benefits to satisfy employees' lower needs, and once those needs are satisfied the source of motivation is lost. Theory X management styles in fact hinder the satisfaction of higher-level needs. Consequently, the only way that employees can attempt to satisfy their higher level needs in their work is by seeking more compensation, so it is quite predictable that they will focus on monetary rewards. While money may not be the most effective way to self-fulfillment, in a Theory X environment it may be the only way. Under
Theory X, people use work to satisfy their lower needs, and seek to satisfy their higher needs in their leisure time. But it is in satisfying their higher needs that employees can be most productive. McGregor makes the point that a command and control environment is not effective because it relies on lower needs as levers of motivation, but in modern society those needs already are satisfied and thus no longer are motivators. In this situation, one would expect employees to dislike their work, avoid responsibility, have no interest in organizational goals, resist change, etc., thus making Theory X a self-fulfilling prophecy. From this reasoning, McGregor proposed an alternative: Theory Y.
Theory Y
The higher-level needs of esteem and self-actualization are continuing needs in that they are never completely satisfied. As such, it is these higher-level needs through which employees can best be motivated.
-Theory Y makes the following general assumptions:
-Work can be as natural as play and rest.
-People will be self-directed to meet their work objectives if they are committed to them.
-People will be committed to their objectives if rewards are in place that addresses higher needs such as self-fulfillment.
-Under these conditions, people will seek responsibility.
-Most people can handle responsibility because creativity and ingenuity are common in the population. Under these assumptions, there is an opportunity to align personal goals with organizational goals by using the employee's own quest for fulfillment as the motivator. McGregor stressed that
Theory Y management does not imply a soft approach.
McGregor recognized that some people may not have reached the level of maturity assumed by
Theory Y and therefore, may need tighter controls that can be relaxed as the employee develops.
Theory Y Management Implications
If Theory Y holds, the firm can do many things to harness the motivational energy of its employees: Decentralization and Delegation - If firms decentralize control and reduce the number of levels of management; each manager will have more subordinates and consequently will be forced to delegate some responsibility and decision making to them.
Job Enlargement - Broadening the scope of an employee's job adds variety and opportunities to satisfy ego needs.
Participative Management - Consulting employees in the decision making process taps their creative capacity and provides them with some control over their work environment.
Performance Appraisals - Having the employee set objectives and participate in the process of evaluating how well they were met. If properly implemented, such an environment would result in a high level of motivation as employees work to satisfy their higher level personal needs through their jobs.
Q3.Why is managing diversity significant. Explain.
Ans –
Strong and visible support from top management.
Continuous effort to assess the diversity management programme.
Flexibility programmes for the recruitment, training, retention and upward mobility of a diverse workforce.
Programmes to accommodate family needs, such as day-care and care for elderly.
Alternative work schedules, including part time work, jobs sharing, compressed work weeks, flexi-time, etc.
Telecommuting opportunities for non-conventional workers and foreign workers who do not wish to immigrate.
Diversity and language training.
Mentoring or the use of high level managers to guide high-potential women, minorities, and other diverse employees.
Support groups that can help build minority networks for the support and guidance of applicable employees.
Career development and promotions to maximize the upward mobility of diverse employees to overcome the glass ceilings that tend to hold them back.
Case Study
“I expect every manager in my department to act completely rational in every decision he makes” , declared Ishwar Dayal, Director Marketing in Overseas Plastics Ltd.. “ Everyone of us , irrespective of his position in the organization has to be a professional rationalist and I expect him not only to know what he is doing and why he is doing it , but also to be right in his decisions. I know someone has said that a good manager needs to be right only in more than half of his decisions. But that is not good enough for me. However , one may be excused for an occasional mistake especially on matters beyond one’s control but no one can be pardoned for acting irrationally”
“I endorse your views , Sir” , said Indu Alluwalia , his Advertising Manager , “ and I always try to be rational and logical in my decisions but would you mind helping me to be sure of this by explaining what rational decisions are”?
Read and analyse the above case and answer the following questions :
(A) Explain,how Mr. Ishwar Dayal might describe what is involved in making rational decisions.
(B) If Ms.Indu Alluwalia then declares that there is no way that she can be completely rational ,what would you suggest as a reply?
Ans a
Rational decision making is a systematic process consisting of the following steps:
Identify the problem:
The decision making process begins with the recognition of a problem that requires a decision.
The problem may arise due to gap between present and future state of affairs. The threats and opportunities created by the environmental changes may also create decision problems. A problem well defined is half solved. In order to recognize the problem quickly, a manager must continuously monitor the decision-making environment. Imagination; experience and judgment are required for detection of problems that require managerial decisions.
Diagnose the Problem:
Diagnosing the real problem implies analyzing it in terms of its elements, its magnitude, its urgency its causes, and its relation with other problems. In order to diagnose the problem correctly, a manager must obtain all pertinent facts and analyze them carefully. The most important part of diagnosing the problem is finding out the real causes or sources of the problem.
Symptoms must not be mistaken for real problems. For example, management may see a problem of manufacturing costs and may start a cost reduction drive when the real problem is poor engineering design.
Discover Alternatives:
The next step is to search for the various possible alternatives. An executive should not jump on the first feasible alternative to solve the problem quickly. Time and cost constraints should be kept in mind. Management must ensure that the best alternatives are considered before a course of action is selected. Relevant information must be collected and analyzed for this purpose.
Evaluate Alternatives:
Once the alternatives are discovered, the next stage is to evaluate or screen each feasible alternative. Evaluation is the process of measuring the positive and negative consequences o f each alternative. Management must balance the costs against possible benefits .Management must set some criteria against which the alternatives can be evaluated.
Peter Drucker has suggested the following criteria to weigh the alternative courses of action:
Risk: Degree of risk involved in each alternative.
Economy of effort: Cost, time and effort involved in each alternative.
Timing: Whether the problem is urgent
Limitation of resources: Physical, financial and human resources available with the organization. Select the best Alternative:
After evaluation, the optimum alternative is selected. Optimum alternative is the alternative that will maximize the results under given conditions. Choice of the best alternative is the most critical point in decision making. The ability to select the best course of action from several possible alternatives separates the successful managers from the unsuccessful ones. Past experience, experimentation research and analysis are useful in selecting the best alternative.
Implementation and follow-up:
Once a decision is made it needs to be implemented. Implementation involves several steps.
First, the decision should be communicated to those responsible for its implementation.
Secondly, acceptance of the decision should be obtained. Thirdly, procedures and time sequence should be established for implementation. Necessary resources should be allocated and responsibility for specific tasks should be assigned to individuals.
The implementation of the decision should be constantly monitored. The effects of the decision should be judged through periodic progress reports. In case the feedback indicates that the decision is not yielding the desired results, necessary change should be made in the decision or in its implementation.
Ans b
Ms. Indu alluwaliya must try to be completely rational
Assignment C
Multiple choice questions
Q-1- Which of the following is a middle level function?
a) Reviewing daily and weekly production or sales report.
b) Selecting board members.
c) Supervising day-to-day operations.
d) Evaluating the all-round performance of various department.
Ans. (a)
Q-2- The process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish specific aims is termed as .
a) Administration.
b) Management.
c) Organization.
d) Staffing.
Ans. (b)
Q-3- The analysis and measurement of actual operations against the established standards developed during the planning process is called .
a) Controlling.
b) Monitoring.
c) Leading.
d) Organizing
Ans.(a)
Q-4- Which of the following theories ignored the concepts of leadership, motivation, power, and informal relations?
a) Pre-Classical.
b) Classical.
c) Behavioral.
d) Modern.
Ans.(b)
Q-5- Managers deals with the actual operation of an organization’s units.
a) First-level.
b) Top-level.
c) Middle-level.
d) Link-level.
Ans.(c)
Q-6- Which of the following skills is important at all levels of an organization?
a) Conceptual.
b) Design.
c) Human.
d) Technical.
Ans.(c)
Q-7- Under which system does a worker’s wage increases in proportion to the output produced?
a) Time-and-motion study.
b) Piece-rate incentive system.
c) Micromotion study.
d) Gantt chart.
Ans.(b)
Q-8- Decreasing the role of subordinates in decision-making is known as_ .
a) Decentralization.
b) Stabilization.
c) Centralization.
d) Organization.
Ans.(a)
Q-9- The two major managerial practices that are emerged from Taylor’s approach to management are the piecerate incentive system and
a) Time and motion study
b) Work study
c) Fatigue study
d) Organization study
Ans.(c)
Q-10- Weber coined the term to identify large organizations tat operated on a rational basis .
a) Autocracy
b) Dictatorship
c) Bureaucracy
d) Diplomacy
Ans.(c)
Q-11- A company has the following managers-Manager(Production),Manager(Finance), Manager(Marketing).This is an example for departmentation by:
a) Functions
b) Products
c) Territory
Ans.(a)
Q-12 -………………..consists of a set of activities aimed at attracting and selecting individuals for positions in a way that will facilitate the achievement of organizational goals
a) Recruitment
b) Selection
c) Staffing
Ans.(c)
Q-13 - ……………. is the process of identifying and attempting to attract candidates who are capable of
Effectively filling job vacancies.
a) Recruitment
b) Staffing
c) Selection
Ans.(a)
Q-14 - ………...involves choosing the candidates who best meet the qualifications and have the greatest aptitude for the job.
a) Staffing
b) Recruitment
c) Selection
Ans.(c)
Q-15- A virtual organizational structure can be defined as:
a) a virtual structure of company functions which come together to serve a specific purpose and then disappear. b) a temporary network of company functions which come together to serve a specific purpose and then disappear. c) a non-permanent form of organization which encourages the growth of regional groupings, thus allowing a degree of autonomy. d) an organizational form based on a functional corporate structure with a mainly ' domestic' focus and a small international division.
Ans. (a)
Q-16- There are many types of organizational forms. Which of the following is not a type of organization form?
a) Function
b) Geographical
c) Matrix
d) Subsidiary
Ans. (b)
Q-17- Which one of the following is not a type of single-out plan?
a) Programs.
b) Policies.
c) Budgets
d) Projects.
Ans.(b)
Q-18- Which one of the following is the first step in the planning process?
a) Establishing objectives.
b) Analyzing opportunities.
c) Determining planning premises.
d) Identifying alternatives.
Ans.(b)
Q-19- Which of the following is not the limitations of planning?
a) Time consuming process.
b) Expensive.
c) Flexible.
d) Lack of accurate information.
Ans.(c)
Q-20- When developing a contingency plan, manager should not try to .
a) Increase interruption to the operations of the business.
b) Speed up the restoration of services.
c) Reduce financial losses.
d) Resume critical operation within a specified time after a disaster.
Ans.(a)
Q-21- Te open systems approach to planning is effective as it leads to in planning.
a) Rigidity.
b) Flexibility.
c) Inelasticity.
d) Invariability.
Ans.(b)
Q-22- The management function tat involves setting goals and deciding how best to achieve tem is known as .
a) Planning.
b) Organizing
c) Leading.
d) Controlling.
Ans.(a)
Q-23- Generally `strategic plan` is an important aspect of the jobs of managers.
a) Operation-level.
b) Middle- Level.
c) Top-level.
d) At all levels
Ans.(c)
Q-24-There is no universal definition of Knowledge Management. Nonetheless, Knowledge Management can be described as the involvement of:
a) Ideas
b) Human mind
c) Time horizon
d) Proces
Ans. (b)
Q-25-Adopting Knowledge Management can lead to sustainable competitive advantage. Which of the following statement is not true:
a) We view Knowledge Management strategy as an exclusive part of the organization.
b) Our top priority is to treat people like assets rather than costs.
c) We believe that Knowledge Management is contributing to stronger relationships among partners/suppliers/customers and the organization.
d) It creates strategic advantage by enabling an innovative strategy that would not otherwise be possible.
Ans. (d)
Q-26-The concept of "ba" refers to what?
a) The creation of knowledge
b) Transformation of information
c) Conversion of data
d) Management of key human resources
Ans. (a)
Q-27-The main barrier to implementing Knowledge Management within an organization is:
a) The willingness to initiate change.
b) Weak leadership and commitment.
c) IT infrastructure.
d) The lack of clear process and procedures.
Ans. (d)
Q-28- The importance of assessing Knowledge Management as part of the overall organizational performance measurement process is attributed to:
a) the significance of intellectual capital/asset.
b) individual accountability.
c) changes in business strategy.
d) contemporary accounting reporting standards.
Ans. (c)
Q-29- The 'people portfolio' of an organization can describe its people (i.e. knowledge owners) based on their level of expertise and potential for growth in the organization-specific Knowledge Management skill/expert areas. Four types or states of 'knowledge owners' can be identified, what are these?
a) 'key players', 'rising stars', 'core competent' and 'redundancy'
b) 'key players'. 'rising stars', 'core competent' and 'deadwood'
c) 'core assets', 'rising stars', 'core competent' and 'deadwood'
d) 'core assets', 'rising stars', 'core competent' and 'redundancy'
Ans. (a)
Q-30-Which of the following is not a strategic advantage of successful Knowledge Management?
a) Making possible execution of an important but common strategy throughout an industry
b) Adding knowledge to the products and services they offer for sale
c) Increasing the investment in information technology therefore expanding its capacity to process data
d) Using knowledge and Knowledge Management to perform nonstrategic processes exceptionally well
Ans. (d)
Q-31-Which of the following is not the means by which an organization can use to measure or value knowledge assets?
a) Further external and internal investment
b) Innovation and continuous learning
c) Improvement of current practices aiming for best practice
d) Factors that influence competitors' global strategies
Ans.(c)
Q-32- The necessity of developing KMIS derives from:
a) the need of exploring data and information.
b) the influx of knowledge IT vendors and products.
c) the need to improve the quality and efficiency of the organization.
d) the shortfall of computerized databases.
Ans. (a)
Q-33- In general, there are two distinctive approaches which can be adopted to implement a knowledge management system. The first is the creation of a separate and distinctive knowledge management unit within the organization. What is the second?
a) Building a knowledge management strategy as an integral part of the business strategy
b) Developing an inter-organizational partnership with all suppliers
c) Formulating a knowledge management plan that involves a major organizational restructuring
d) Developing an integrative IT strategy to improve communications between key knowledge workers
Ans. (b)
Q-34- More direction is required at level.
a) Top
b) Middle
c) Lower
d) Directors.
Ans.(c)
Q-35- is the result of the business policies.
a) Formal organization.
b) Informal organization.
c) Line organization.
d) Staff organization.
Ans.(a)
Q-36- In case of line organization authorities are_ .
a) Centralized.
b) Decentralized.
c) Equally distributed.
d) None of the above.
Ans.(a)
Q-37- Supervisors are link between
a) Directors and managers.
b) Workers and middle level managers.
c) Directors and workers.
d) Workers and workers.
Ans.(b)
Q-38- The supervisor has to under his control.
a) Plan the work.
b) Organize the work.
c) Control the work.
d) All the above.
Ans.(d)
Q-39- Controlling is the function of the management.
a) First
b) Last
c) Both (a) and (b)
d) Neither (a) nor (b).
Ans.(b)
Q-40 In business enterprises controlling is required
a) While establishing business.
b) In the beginning of the year.
c) At the end of the yea
d) continuously.
Ans.(d)
Program:B.COM (Semester-1)
Subject Name - Business Organization and Management Permanent Enrollment Number (PEN) – A1923514039(el)
Roll Number (SEN) – A1923514039(el)
Student Name – Samreen Sultana
Assignment A
Q1- What is Management? Discuss its essential features
Ans--The term ‘management’ conveys different meanings depending upon the context in which it is used.
The following are the important features or characteristics of management:
1. Management is getting things done.
A manager does not do any operating work himself but gets it done through others. He must motivate the subordinates for the accomplishment of the task assigned to them.
2. Management is an activity.
Management is a process of organized activity. It is concerned with the efficient use of resources like men, money and materials in the organization.
3. Management is a group activity.
Management cannot exist independent of the group or organization it manages. It is a cardinal part of any group activity and inspires workers to put forth their best efforts.
4. Management is a universal activity.
Management is a universal phenomenon. However, management principles are not universally applicable but are modified to suit the given situation and the type of organization.
5. Management is purposeful.
Management is a goal-oriented activity. It is concerned with the accomplishment of goal through its various functions like planning, organizing, staffing, directing, and controlling.
6. Management is a process of accomplishment of certain goals.
Management is a process which involves planning, organizing, directing and controlling the efforts of human resources in the use of material resources. These are the basic functions which every manager performs for the accomplishment of certain goals.
7. Management is an integrating process.
Management integrates men, machines and materials for performing various operations and accomplishing the stated goals. Thus, management acts as a catalytic agent in getting maximum productivity from all the resources.
8. Management is intangible.
Management is abstract and cannot be seen with the eyes. It is evidenced by the quality of the organization and the results. Thus, feeling of management is result-oriented.
9. Management is a profession.
Management is a profession because some of its established principles are being applied in practice. 10. Management is interdisciplinary.
This implies that, even though management has been developed as a separate discipline, it draws knowledge and concepts from other social sciences like psychology, sociology, anthropology, economics, and so on. Management integrates the ideas and concepts taken from these disciplines and presents newer concepts. These new concepts can be put into practice for managing the organizations.
11. Management is a science and an art.
Management has developed certain principles and laws which have wide applications. So it is treated as a science. It is also an art, because it is concerned with the application of knowledge for the solution of organizational problems.
12. Management is dynamic.
Management is dynamic because it adapts itself to the social changes and introduces innovation in methodology.
13. Management involves decision-making.
Management process involves decision-making at various levels for getting things done by others. It involves selecting the most appropriate alternative out of the several.
14. Management applies economic principles.
Management is the art of applying the economic principles that underline the control of men and materials in the organization.
15. Management is concerned with direction and control.
Management is concerned with the direction and control of the various activities. It deals particularly with the active direction of the human effort.
Q2.What is planning? Explain briefly the different types of Plans giving suitable examples.
Ans -- “Planning is the function that determines in advance what should be done. It consists of
Selecting the enterprise objectives, policies, programmes, procedures and other means of achieving these objectives
Types of Plans
Nature of plan
Definition
Nature
Example
Objective
Goal or target to be achieved
Basis of all plans
Increase sales by 10%
Policy
General statement or understanding to guide thinking
Boundary within which decisions are to be made
Employees are to be promoted on the basis of seniority
Strategy
Action plan to face environmental uncertainties
Relates the organization to its environment
Combative advertising to face price cuts by competitors
Procedure
Manner in which activities are to be performed
Sequence of steps
Purchase procedure
Rule
State what should and should not be done in a situation
Rigid plan, no space for discretion
No smoking in the factory
Programme
Combination plan for goal achievement
State activities and resources to be undertaken
Installation of a computer
Schedule
Time-table for activities
Specifies priority of work and time for each activity
Complete installation of computer within 3 months w.e.f march 2009
Budget
Statement of expected results and resources to be used
Quantitative and time bound plan of action
Produce 10000 tonnes of sugar next year
Project
Cluster of interrelated activities a separate unit
Scheme for deployment of resources
Construction of flyover
Q3.Explin in brief the essential features of a joint stock company?
Ans --
FEATURES OF JOINT STOCK COMPANY:---
• Legal formation:
No single individual or a group of individuals can start a business and call it a joint stock company. A joint stock company can come into existence only when it has been registered after completion of all the legal formalities required by the Indian Companies Act, 1956.
• Artificial person:
Just like an individual takes birth, grows, enters into relationships and dies, a joint stock company takes birth, grows, enters into relationships and dies. However, it is called an artificial person as it’s birth, existence and death are regulated by law.
• Separate legal entity:
Being an artificial person, a joint stock company has its own separate existence independent of it’s investors. This means that a joint stock company can own property, enter into contracts and conduct any lawful business in it’s “own” name. It can sue and can be sued by others in the court of law. The shareholders are “not” the owners of the property owned by the company. Also, the shareholders cannot be held responsible for any of the acts of the company.
• Common seal:
A joint stock company has a “seal”, which is used while dealing with others or entering into contracts with outsiders. It is called a common seal as it can be used by any officer at any level of the organization working on behalf of the company. Any document, on which the company's seal is put and is duly signed by any official of the company, becomes binding on the company.
For example, a purchase manager may enter into a contract for buying raw materials from a supplier. Once the contract paper is sealed and signed by the purchase manager, it becomes valid.
The purchase manager may leave the company or may be removed from his job or may have taken a wrong decision, yet, the contract is valid till a new contract is made or the existing contract expires.
• Perpetual existence:
A joint stock company continues to exist as long as it fulfils the requirements of law. It is not affected by the death, lunacy, insolvency or retirement of any of it’s investors. For example, in case of a private limited company having four members, if all of them die in an accident, the company will “not” be closed. It will continue to exist. The shares of the company will be transferred to the legal heirs of the members.
• Limited liability:
In a joint stock company, the liability of a member is limited to the amount he has invested.
While repaying debts, for example, if a person has invested only Rs.10,000 then only this amount that he has invested can be used for the payment of debts. That is, even if there is liquidation of the company, the personal property of the investor can not be used to pay the debts and he will lose his investment worth Rs.10,000.
• Democratic management:
Joint stock companies have democratic management and control. Since in joint stock companies there are thousands and thousands of investors, all of them cannot participate in the affairs of management of the company. Normally, the investors elect representatives from among themselves known as ‘Directors’ to manage the affairs of the company.
Q4.What is an organization? Distinguish between functional and product departmentation.
Ans --
Organizing is the process of integrating the physical, financial & human resources & establishing the productive relationship between them to establish pre- determined goals. It is concerned with the building up a stable framework or structure of various inter-related parts of the enterprise; each part having its own function & being centrally regulated.
Functional Departmentation
The most widely used form of departmentation is to group activities by function—the jobs to be done. Consistent with the idea of specialization and division of work, activities that are alike or similar are placed together in one department and under a single chain of command. For example, word processing, data-entry, and duplicating services may be grouped together into a clerical department or information processing center; sales and promotional activities into a marketing department; manufacturing assembly work into a production department; inspection and monitoring activities into a quality control department; and so on. As an enterprise undertakes additional activities, these new activities—for the most part—are simply added to the already existing departments.
Functional departmentation is a method that has been and still is successful in most organizations. It makes sense since it is a natural and logical way of arranging activities.
Grouping departments along functional lines takes advantage of occupational specialization by placing together jobs and tasks that are performed by people with the same kinds of training, experience, equipment, and facilities. Each supervisor is responsible primarily for an area of operation upon which his or her energy and expertise can be concentrated. Functional departmentation also facilitates coordination since a supervisor is in charge of one major area of activity. It is easier to achieve coordination this way than to have the same functions performed in different departments under different supervisors.
Product or Service Departmentation
Many companies utilize product or service departmentation. To departmentalize on a product basis means to establish each major product (or group of closely related products) in a product line as a relatively independent unit within the overall framework of the enterprise. For example, a food products company may choose to divide its operations into a frozen food department, a dairy products department, a produce department, and the like. Product departmentation can also be a useful guide for grouping activities in service businesses. For example, most banks have separate departments for commercial loans, installment loans, savings accounts, and checking accounts. Many home maintenance firms have separate departments for carpentry, heating, and air conditioning services.
Q5. (a) Distinguish between delegation and decentralization
(b) Explain in brief the significance of staffing.
Ans – (a) Delegation and Decentralization
Sr. No. DELEGATION
DECENTRALIZATION
1.
It is the process of devolution of authority. It is the end result which is achieved when delegation is systematically repeated up to the lowest level.
2.
It denotes relationship between a superior and a subordinate.
It denotes relationship between the top management and various departments or divisions. 3.
It is essential for management process.
It is optional as top management may or may not disperse authority.
4.
It can take place from one individual to another and be a complete process.
Decentralization is completed only when the fullest possible delegation is made at all levels of organization.
5.
It is a technique of management
It is a philosophy of management.
6.
The delegator exercises control over the subordinates.
The control may be delegated to departmental heads.
7.
Delegation of authority can take place without decentralization.
There cannot be decentralization without delegation. (b) Significance of staffing
Filling organisational positions: A basic problem faced by organizations throughout the world is the acute competition for good quality human resources. With increasing competition for human resources, the cost of acquiring them has increased manifold. Hence, there is a need for systematic staffing so that the organization can fill its various positions with good quality of personnel. Developing competencies: It is not sufficient that various organisational positions are filled but there should be development of competencies among personnel because of changing nature of job profile.
Retaining personnel: Apart from acquiring and developing personnel, retaining them in the organization is equally important. In order to retain their employees, organizations are adopting many methods having long term implications besides persuading the employees to remain with them. Enhances productivity: Staffing facilitates discovery of competent and qualified people to take up various positions in the organizations. Hence, it enhances productivity by placing the right people on the right jobs.
Development of workforce: Staffing is concerned with the placement, growth and development of all those members of the organization whose function is to get the things done through the efforts of other individuals. It helps development of people through the programmes of training.
ASSIGNMENT B
Q1.Compare Maslow’s Need Hierarchy theory with that of Herzberg’s Two factor theory.
Ans -- Maslow’s Need Hierarchy
1. Physiological Needs:
The physiological needs are at the top of the hierarchy because they tend to have the highest strength until they are reasonably satisfied. Until these needs are satisfied to the degree needed for the efficient operation of the body, the majority of a person’s activities will probably be at this level, and the other levels will provide him with little motivation. A famous saying ‘man can live on bread alone if there is no bread’ suggests that human beings first try to acquire necessities for their survival.
2. Safety Needs:
Once the physiological needs are satisfied to a reasonable level-it is not necessary that they are fully satisfied and degree of reasonableness is subjective – other levels of needs become important. In this hierarchy comes the need for safety, which is need for being free of physical danger or self-preservation. In the industrial society, safety needs may take considerable importance in the context of the dependent relationship of employees to employers.
As pointed out by McGregor, the safety needs may serve as motivators in such circumstances as arbitrary management actions, behaviour which arouses uncertainty with respect to continued unemployment and unpredictable administration of policy. Peter F. Drucker has suggested that one’s attitude towards security is an important consideration in choosing a job. Organization can influence these security needs either positively through pension plan, insurance plan, etc. – or negatively by arousing fears of being fired or laid off, or demoted.
3. Social Needs:
After the first two needs are satisfied, social needs become important in the need hierarchy.
Since man is a social being, he has a need to belong and to be accepted by various groups. When social needs become dominant, a person will strive for meaningful relations with others. If the opportunity for association with other people is reduced, men often take vigorous action against the obstacles to social intercourse. In the organization, workers form informal group environment.Such environment develops where the work is routine, tedious or over-simplified. This situation is made worse when workers are closely supervised and controlled, but have no clear channel of communication with management. In this type of environment, workers depend on informal groups for support of unfulfilled social needs such as affiliation.
4. Esteem Needs:
The esteem needs are concerned with self respect, self-confidence, a feeling of personal worth, feeling of being unique and recognition. Satisfaction of these needs produces feelings of selfconfidence, prestige, power and control. The satisfaction of esteem needs is not always obtained through mature or adaptive behaviour. It is sometimes generated by disruptive and irresponsible actions. Some of the social problems have their roots in the frustration of the esteem needs.
5. Self-actualization Needs:
Self-actualization is the need to maximize one’s potential, whatever it may be. This is related with the development of intrinsic capabilities which lead people to seek situations that can utilize their potential. This includes competence which implies control over environmental factors, both physical and social, and achievement. A man with high intensity of achievement needs will be restless unless he can find fulfilment in doing what he is fit to do. As Maslow has put it, “this need might be phrased as the desire to become more and more what one is, to become everything that one is capable of becoming.” Maslow suggests that the various levels are interdependent and overlapping, each higher-level need emerging before the lower-level need has been completely satisfied. Since one need does not disappear when another emerges, all needs tend to be partially satisfied in each area. When the peak of a need is passed, that need ceases to be the primary motivator. The next level need then begins to dominate. Even though a need is satisfied, it still influences behaviour because of interdependent and overlapping characteristics of needs.
Herzberg’s Two factor theory.
On analyzing the information from the interview, Herzberg concluded that there were two categories of needs essentially independent of each other affecting behaviour in different ways.
His findings are that there are some job conditions which operate primarily to dissatisfy employees when the conditions are absent, however, their presence does not motivate them in a strong way. Another set of job conditions operates primarily to build strong motivation and high job satisfaction, but their absence rarely proves strongly dissatisfying. The first set of job conditions has been referred to as maintenance or hygiene factors and second set of job conditions as motivational factors.
Hygiene Factors
According to Herzberg, there are ten maintenance or hygiene factors. These are company policy and administration, technical supervision, interpersonal relationship with supervisors, interpersonal relationship with peers, interpersonal relationship with subordinates, salary, job security, personal life, working conditions and status. These are not intrinsic parts of a job, but they are related to conditions under which a job is performed. They produce no growth in a worker’s output; they only prevent losses in worker’s performance due to work restrictions.
These maintenance factors are necessary to maintain at a reasonable level of satisfaction in employees. Any increase beyond this level will not provide any satisfaction to the employees; however, any cut below this level will dissatisfy them. As such, these are also called as dissatisfiers. Since any increase in these factors will not affect employee’s level of satisfaction, these are of no use for motivating them.
Motivational factors
These factors are capable of having a positive effect on job satisfaction often resulting in an increase in one’s total output. Herzberg includes six factors that motivate employees. These are: achievements, recognition, advancement, work itself, possibility of growth, and responsibility.
Most of these factors are related with job contents. An increase in these factors will satisfy the employees; however, any decrease will not affect their level of satisfaction. Since, these increase level of satisfaction in the employees; these can be used in motivating them for higher output.
Herzberg maintains that potency of various factors is not entirely a function of the factors themselves. It is also influenced by the personality characteristics of the individuals. From this point of view, individuals may be classified into two groups – motivation seekers and maintenance seekers. The motivation seekers generally are individuals who are primarily motivated by the ‘satisfiers’ such as advancement, achievement and other factors associated with work itself. On the other hand, the maintenance seekers tend to be more concerned with factors surrounding the job such as supervision, working conditions, pay, etc.
Q2.Critically examine Mc.Gregor’s Theory X and Theory y.
ANS –
In his 1960 book, The Human Side of Enterprise, Douglas McGregor proposed two theories by which to view employee motivation. He avoided descriptive labels and simply called the theories
Theory X and Theory Y. Both of these theories begin with the premise that management's role is to assemble the factors of production, including people, for the economic benefit of the firm.
Beyond this point, the two theories of management diverge.
Theory X
-Theory X assumes that the average person:
-Dislikes work and attempts to avoid it.
-Has no ambition, wants no responsibility, and would rather follow than lead.
-Is self-centered and therefore does not care about organizational goals.
-Resists change.
-Is gullible and not particularly intelligent.
Essentially, Theory X assumes that people work only for money and security.
Theory X - The Hard Approach and Soft Approach
Under Theory X, management approaches can range from a hard approach to a soft approach.
The hard approach relies on coercion, implicit threats, close supervision, and tight controls, essentially an environment of command and control. The soft approach is to be permissive and seek harmony with the hope that in return employees will cooperate when asked to do so.
However, neither of these extremes is optimal. The hard approach results in hostility, purposely low-output, and hard-line union demands. The soft approach results in ever-increasing requests for more rewards in exchange for ever-decreasing work output.
The optimal management approach under Theory X probably would be somewhere between these extremes. However, McGregor asserts that neither approach is appropriate because the assumptions of Theory X are not correct.
The Problem with Theory X
Drawing on Maslow's hierarchy, McGregor argues that a satisfied need no longer motivates.
Under Theory X the firm relies on money and benefits to satisfy employees' lower needs, and once those needs are satisfied the source of motivation is lost. Theory X management styles in fact hinder the satisfaction of higher-level needs. Consequently, the only way that employees can attempt to satisfy their higher level needs in their work is by seeking more compensation, so it is quite predictable that they will focus on monetary rewards. While money may not be the most effective way to self-fulfillment, in a Theory X environment it may be the only way. Under
Theory X, people use work to satisfy their lower needs, and seek to satisfy their higher needs in their leisure time. But it is in satisfying their higher needs that employees can be most productive. McGregor makes the point that a command and control environment is not effective because it relies on lower needs as levers of motivation, but in modern society those needs already are satisfied and thus no longer are motivators. In this situation, one would expect employees to dislike their work, avoid responsibility, have no interest in organizational goals, resist change, etc., thus making Theory X a self-fulfilling prophecy. From this reasoning, McGregor proposed an alternative: Theory Y.
Theory Y
The higher-level needs of esteem and self-actualization are continuing needs in that they are never completely satisfied. As such, it is these higher-level needs through which employees can best be motivated.
-Theory Y makes the following general assumptions:
-Work can be as natural as play and rest.
-People will be self-directed to meet their work objectives if they are committed to them.
-People will be committed to their objectives if rewards are in place that addresses higher needs such as self-fulfillment.
-Under these conditions, people will seek responsibility.
-Most people can handle responsibility because creativity and ingenuity are common in the population. Under these assumptions, there is an opportunity to align personal goals with organizational goals by using the employee's own quest for fulfillment as the motivator. McGregor stressed that
Theory Y management does not imply a soft approach.
McGregor recognized that some people may not have reached the level of maturity assumed by
Theory Y and therefore, may need tighter controls that can be relaxed as the employee develops.
Theory Y Management Implications
If Theory Y holds, the firm can do many things to harness the motivational energy of its employees: Decentralization and Delegation - If firms decentralize control and reduce the number of levels of management; each manager will have more subordinates and consequently will be forced to delegate some responsibility and decision making to them.
Job Enlargement - Broadening the scope of an employee's job adds variety and opportunities to satisfy ego needs.
Participative Management - Consulting employees in the decision making process taps their creative capacity and provides them with some control over their work environment.
Performance Appraisals - Having the employee set objectives and participate in the process of evaluating how well they were met. If properly implemented, such an environment would result in a high level of motivation as employees work to satisfy their higher level personal needs through their jobs.
Q3.Why is managing diversity significant. Explain.
Ans –
Strong and visible support from top management.
Continuous effort to assess the diversity management programme.
Flexibility programmes for the recruitment, training, retention and upward mobility of a diverse workforce.
Programmes to accommodate family needs, such as day-care and care for elderly.
Alternative work schedules, including part time work, jobs sharing, compressed work weeks, flexi-time, etc.
Telecommuting opportunities for non-conventional workers and foreign workers who do not wish to immigrate.
Diversity and language training.
Mentoring or the use of high level managers to guide high-potential women, minorities, and other diverse employees.
Support groups that can help build minority networks for the support and guidance of applicable employees.
Career development and promotions to maximize the upward mobility of diverse employees to overcome the glass ceilings that tend to hold them back.
Case Study
“I expect every manager in my department to act completely rational in every decision he makes” , declared Ishwar Dayal, Director Marketing in Overseas Plastics Ltd.. “ Everyone of us , irrespective of his position in the organization has to be a professional rationalist and I expect him not only to know what he is doing and why he is doing it , but also to be right in his decisions. I know someone has said that a good manager needs to be right only in more than half of his decisions. But that is not good enough for me. However , one may be excused for an occasional mistake especially on matters beyond one’s control but no one can be pardoned for acting irrationally”
“I endorse your views , Sir” , said Indu Alluwalia , his Advertising Manager , “ and I always try to be rational and logical in my decisions but would you mind helping me to be sure of this by explaining what rational decisions are”?
Read and analyse the above case and answer the following questions :
(A) Explain,how Mr. Ishwar Dayal might describe what is involved in making rational decisions.
(B) If Ms.Indu Alluwalia then declares that there is no way that she can be completely rational ,what would you suggest as a reply?
Ans a
Rational decision making is a systematic process consisting of the following steps:
Identify the problem:
The decision making process begins with the recognition of a problem that requires a decision.
The problem may arise due to gap between present and future state of affairs. The threats and opportunities created by the environmental changes may also create decision problems. A problem well defined is half solved. In order to recognize the problem quickly, a manager must continuously monitor the decision-making environment. Imagination; experience and judgment are required for detection of problems that require managerial decisions.
Diagnose the Problem:
Diagnosing the real problem implies analyzing it in terms of its elements, its magnitude, its urgency its causes, and its relation with other problems. In order to diagnose the problem correctly, a manager must obtain all pertinent facts and analyze them carefully. The most important part of diagnosing the problem is finding out the real causes or sources of the problem.
Symptoms must not be mistaken for real problems. For example, management may see a problem of manufacturing costs and may start a cost reduction drive when the real problem is poor engineering design.
Discover Alternatives:
The next step is to search for the various possible alternatives. An executive should not jump on the first feasible alternative to solve the problem quickly. Time and cost constraints should be kept in mind. Management must ensure that the best alternatives are considered before a course of action is selected. Relevant information must be collected and analyzed for this purpose.
Evaluate Alternatives:
Once the alternatives are discovered, the next stage is to evaluate or screen each feasible alternative. Evaluation is the process of measuring the positive and negative consequences o f each alternative. Management must balance the costs against possible benefits .Management must set some criteria against which the alternatives can be evaluated.
Peter Drucker has suggested the following criteria to weigh the alternative courses of action:
Risk: Degree of risk involved in each alternative.
Economy of effort: Cost, time and effort involved in each alternative.
Timing: Whether the problem is urgent
Limitation of resources: Physical, financial and human resources available with the organization. Select the best Alternative:
After evaluation, the optimum alternative is selected. Optimum alternative is the alternative that will maximize the results under given conditions. Choice of the best alternative is the most critical point in decision making. The ability to select the best course of action from several possible alternatives separates the successful managers from the unsuccessful ones. Past experience, experimentation research and analysis are useful in selecting the best alternative.
Implementation and follow-up:
Once a decision is made it needs to be implemented. Implementation involves several steps.
First, the decision should be communicated to those responsible for its implementation.
Secondly, acceptance of the decision should be obtained. Thirdly, procedures and time sequence should be established for implementation. Necessary resources should be allocated and responsibility for specific tasks should be assigned to individuals.
The implementation of the decision should be constantly monitored. The effects of the decision should be judged through periodic progress reports. In case the feedback indicates that the decision is not yielding the desired results, necessary change should be made in the decision or in its implementation.
Ans b
Ms. Indu alluwaliya must try to be completely rational
Assignment C
Multiple choice questions
Q-1- Which of the following is a middle level function?
a) Reviewing daily and weekly production or sales report.
b) Selecting board members.
c) Supervising day-to-day operations.
d) Evaluating the all-round performance of various department.
Ans. (a)
Q-2- The process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish specific aims is termed as .
a) Administration.
b) Management.
c) Organization.
d) Staffing.
Ans. (b)
Q-3- The analysis and measurement of actual operations against the established standards developed during the planning process is called .
a) Controlling.
b) Monitoring.
c) Leading.
d) Organizing
Ans.(a)
Q-4- Which of the following theories ignored the concepts of leadership, motivation, power, and informal relations?
a) Pre-Classical.
b) Classical.
c) Behavioral.
d) Modern.
Ans.(b)
Q-5- Managers deals with the actual operation of an organization’s units.
a) First-level.
b) Top-level.
c) Middle-level.
d) Link-level.
Ans.(c)
Q-6- Which of the following skills is important at all levels of an organization?
a) Conceptual.
b) Design.
c) Human.
d) Technical.
Ans.(c)
Q-7- Under which system does a worker’s wage increases in proportion to the output produced?
a) Time-and-motion study.
b) Piece-rate incentive system.
c) Micromotion study.
d) Gantt chart.
Ans.(b)
Q-8- Decreasing the role of subordinates in decision-making is known as_ .
a) Decentralization.
b) Stabilization.
c) Centralization.
d) Organization.
Ans.(a)
Q-9- The two major managerial practices that are emerged from Taylor’s approach to management are the piecerate incentive system and
a) Time and motion study
b) Work study
c) Fatigue study
d) Organization study
Ans.(c)
Q-10- Weber coined the term to identify large organizations tat operated on a rational basis .
a) Autocracy
b) Dictatorship
c) Bureaucracy
d) Diplomacy
Ans.(c)
Q-11- A company has the following managers-Manager(Production),Manager(Finance), Manager(Marketing).This is an example for departmentation by:
a) Functions
b) Products
c) Territory
Ans.(a)
Q-12 -………………..consists of a set of activities aimed at attracting and selecting individuals for positions in a way that will facilitate the achievement of organizational goals
a) Recruitment
b) Selection
c) Staffing
Ans.(c)
Q-13 - ……………. is the process of identifying and attempting to attract candidates who are capable of
Effectively filling job vacancies.
a) Recruitment
b) Staffing
c) Selection
Ans.(a)
Q-14 - ………...involves choosing the candidates who best meet the qualifications and have the greatest aptitude for the job.
a) Staffing
b) Recruitment
c) Selection
Ans.(c)
Q-15- A virtual organizational structure can be defined as:
a) a virtual structure of company functions which come together to serve a specific purpose and then disappear. b) a temporary network of company functions which come together to serve a specific purpose and then disappear. c) a non-permanent form of organization which encourages the growth of regional groupings, thus allowing a degree of autonomy. d) an organizational form based on a functional corporate structure with a mainly ' domestic' focus and a small international division.
Ans. (a)
Q-16- There are many types of organizational forms. Which of the following is not a type of organization form?
a) Function
b) Geographical
c) Matrix
d) Subsidiary
Ans. (b)
Q-17- Which one of the following is not a type of single-out plan?
a) Programs.
b) Policies.
c) Budgets
d) Projects.
Ans.(b)
Q-18- Which one of the following is the first step in the planning process?
a) Establishing objectives.
b) Analyzing opportunities.
c) Determining planning premises.
d) Identifying alternatives.
Ans.(b)
Q-19- Which of the following is not the limitations of planning?
a) Time consuming process.
b) Expensive.
c) Flexible.
d) Lack of accurate information.
Ans.(c)
Q-20- When developing a contingency plan, manager should not try to .
a) Increase interruption to the operations of the business.
b) Speed up the restoration of services.
c) Reduce financial losses.
d) Resume critical operation within a specified time after a disaster.
Ans.(a)
Q-21- Te open systems approach to planning is effective as it leads to in planning.
a) Rigidity.
b) Flexibility.
c) Inelasticity.
d) Invariability.
Ans.(b)
Q-22- The management function tat involves setting goals and deciding how best to achieve tem is known as .
a) Planning.
b) Organizing
c) Leading.
d) Controlling.
Ans.(a)
Q-23- Generally `strategic plan` is an important aspect of the jobs of managers.
a) Operation-level.
b) Middle- Level.
c) Top-level.
d) At all levels
Ans.(c)
Q-24-There is no universal definition of Knowledge Management. Nonetheless, Knowledge Management can be described as the involvement of:
a) Ideas
b) Human mind
c) Time horizon
d) Proces
Ans. (b)
Q-25-Adopting Knowledge Management can lead to sustainable competitive advantage. Which of the following statement is not true:
a) We view Knowledge Management strategy as an exclusive part of the organization.
b) Our top priority is to treat people like assets rather than costs.
c) We believe that Knowledge Management is contributing to stronger relationships among partners/suppliers/customers and the organization.
d) It creates strategic advantage by enabling an innovative strategy that would not otherwise be possible.
Ans. (d)
Q-26-The concept of "ba" refers to what?
a) The creation of knowledge
b) Transformation of information
c) Conversion of data
d) Management of key human resources
Ans. (a)
Q-27-The main barrier to implementing Knowledge Management within an organization is:
a) The willingness to initiate change.
b) Weak leadership and commitment.
c) IT infrastructure.
d) The lack of clear process and procedures.
Ans. (d)
Q-28- The importance of assessing Knowledge Management as part of the overall organizational performance measurement process is attributed to:
a) the significance of intellectual capital/asset.
b) individual accountability.
c) changes in business strategy.
d) contemporary accounting reporting standards.
Ans. (c)
Q-29- The 'people portfolio' of an organization can describe its people (i.e. knowledge owners) based on their level of expertise and potential for growth in the organization-specific Knowledge Management skill/expert areas. Four types or states of 'knowledge owners' can be identified, what are these?
a) 'key players', 'rising stars', 'core competent' and 'redundancy'
b) 'key players'. 'rising stars', 'core competent' and 'deadwood'
c) 'core assets', 'rising stars', 'core competent' and 'deadwood'
d) 'core assets', 'rising stars', 'core competent' and 'redundancy'
Ans. (a)
Q-30-Which of the following is not a strategic advantage of successful Knowledge Management?
a) Making possible execution of an important but common strategy throughout an industry
b) Adding knowledge to the products and services they offer for sale
c) Increasing the investment in information technology therefore expanding its capacity to process data
d) Using knowledge and Knowledge Management to perform nonstrategic processes exceptionally well
Ans. (d)
Q-31-Which of the following is not the means by which an organization can use to measure or value knowledge assets?
a) Further external and internal investment
b) Innovation and continuous learning
c) Improvement of current practices aiming for best practice
d) Factors that influence competitors' global strategies
Ans.(c)
Q-32- The necessity of developing KMIS derives from:
a) the need of exploring data and information.
b) the influx of knowledge IT vendors and products.
c) the need to improve the quality and efficiency of the organization.
d) the shortfall of computerized databases.
Ans. (a)
Q-33- In general, there are two distinctive approaches which can be adopted to implement a knowledge management system. The first is the creation of a separate and distinctive knowledge management unit within the organization. What is the second?
a) Building a knowledge management strategy as an integral part of the business strategy
b) Developing an inter-organizational partnership with all suppliers
c) Formulating a knowledge management plan that involves a major organizational restructuring
d) Developing an integrative IT strategy to improve communications between key knowledge workers
Ans. (b)
Q-34- More direction is required at level.
a) Top
b) Middle
c) Lower
d) Directors.
Ans.(c)
Q-35- is the result of the business policies.
a) Formal organization.
b) Informal organization.
c) Line organization.
d) Staff organization.
Ans.(a)
Q-36- In case of line organization authorities are_ .
a) Centralized.
b) Decentralized.
c) Equally distributed.
d) None of the above.
Ans.(a)
Q-37- Supervisors are link between
a) Directors and managers.
b) Workers and middle level managers.
c) Directors and workers.
d) Workers and workers.
Ans.(b)
Q-38- The supervisor has to under his control.
a) Plan the work.
b) Organize the work.
c) Control the work.
d) All the above.
Ans.(d)
Q-39- Controlling is the function of the management.
a) First
b) Last
c) Both (a) and (b)
d) Neither (a) nor (b).
Ans.(b)
Q-40 In business enterprises controlling is required
a) While establishing business.
b) In the beginning of the year.
c) At the end of the yea
d) continuously.
Ans.(d)
You May Also Find These Documents Helpful
-
Ryan (2008) stated management is a set of activities (planning, and decision making, organizing, leading and controlling) directed at an organization’s resources, with the aim of achieving organizational goals efficiently and effectively.…
- 1489 Words
- 6 Pages
Better Essays -
Management is a form of work that involves deciding the best way to use an organizations resources to produce goods or provide services.…
- 691 Words
- 3 Pages
Satisfactory Essays -
In all types of businesses (big or small), managers play a key role in the efficiency, profitability, and functionality of how the business meets its goals and successes. The purpose of managers are to oversee and coordinate the work of others. As managers, it is important that ensure that the business’ greatest resource, which are its employees, are used effectively.…
- 1106 Words
- 5 Pages
Good Essays -
Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources.…
- 1935 Words
- 8 Pages
Better Essays -
It is important to also understand that managers transfers skills, knowledge and experience and is being looked upon to create value, hence the manager must figure out ways to work out this from the available resources of the organization that includes the regular…
- 604 Words
- 3 Pages
Good Essays -
Managers have formal authority and status as per the level of hierarchy and have to perform many different roles.…
- 2549 Words
- 11 Pages
Better Essays -
When most think of management, images of someone controlling or wielding power may come to mind. I feel that not only is this description very limited to what it means to manage but that some may share this view due to bad experience or misinformation. I feel that management should be imagined or even defined in a broader sense. I define management as the process of monitoring, guiding or directing a group of people or things, and as the process of making decisions and then implementing them so as to change, improve or maintain balance.…
- 673 Words
- 2 Pages
Satisfactory Essays -
When we try to describe management, our first notion is generally of a manager who obtains a role and who has charge over its people. However, in the case of cognoscente employees, who oversee each other, management is seen as in action, one that can appoint everyone. Hence, when we describe management as a personification, we modify it to something that alludes to managers only. Such a description is not only a restricting one, it is one that does not rationalize for the way work and obligation has changed.…
- 1489 Words
- 6 Pages
Powerful Essays -
Management is a concept that dates back to early civilizations. Those which paved the way for the concept we know today, entailing many figure heads boasting several principals and ideologies. The concept, that being the process of dealing with or controlling things and people has been and will continue to be a necessary component of organizations. Contemporary management in organizational context is constantly changing and can be looked at under a broad scope; by singling out some theories and foundations to these processes we can grasp ideas as to how these changes come about and how they can be changed in a beneficial way.…
- 1548 Words
- 6 Pages
Better Essays -
A manager’s activities and attributes are captured within these elements which have been constructed as models in management textbooks, passed down from historical studies and publications to assist the student to appreciate the role of the manager. However, the things that a manager does are so diverse and…
- 1189 Words
- 5 Pages
Good Essays -
A central part of the study of organisation and management is the development of manage-…
- 19484 Words
- 78 Pages
Powerful Essays -
The word MANAGEMENT originated form the Latin word “Mangier” which means “to train up the horses”. But by the passage of time, it relates human being in lieu of horses. So the meaning of the word ‘MANAGEMENT’ is “to handle” the overall activities of the organization.…
- 2010 Words
- 9 Pages
Powerful Essays -
of the business. In this world, all things need a proper management for its success.…
- 11221 Words
- 45 Pages
Good Essays -
Management depends on the perspective of the person attempting a definition. An economist might classify management as a resource. In a sociologist’s view, it might be class, an elitist task.9…
- 412 Words
- 2 Pages
Satisfactory Essays