Roll No.

Name of Student AR INSTITUTE OF MANAGEMENT & TECHNOLOGY, MEERUT BBA- I SEMESTER SAMPLE PAPER BBA N 106 FUNDAMENTALS OF MANAGEMENT

MM: 75 SECTION-A Attempt all questions(75-100 words) (35=15) 1. What are the different approaches of management? There are three approaches of management. These are: 1. Classical approach 2. Neo classical approach 3. Modern approach

TIME: 3 Hrs.

1 Classical Approach: Classical theories focused on "work and "organizations". They treated business enterprise as "technical and "commercial entities. 2 The neo-classical approaches: Human Relation movements stressed that business is a "social system" and as such much attention should be accorded to "humans" working in the enterprise. 3 Modern approaches: These approaches take a comprehensive view at management process. They include: 1. Quantitative approach- data based analysis and decision approach. 2. System approach- focuses on inter-related issues among various elements involved. 3. Contingency approach- a ad-hoc approaches.

2.

List down the steps involved in principles of effective delegation. 1. Determine what you will delegate. Effective delegation begins with defining your responsibilities. Write down all of your activities and responsibilities. Review your master list and categorize all of the items into two secondary lists: things you alone must do and things that others could do or help you complete. Anything that falls into the second list presents an opportunity for delegation. 2. Choose the right person to delegate the task to. Andrew Carnegie said, "The secret to success lies not in doing your own work, but in recognizing the right person to do it." The key to finding the right person to delegate an assignment to is matching skills and attitude to the task at hand. 3. Clarify the desired results. When the results are clear, it allows the employee to use his or her own creativity and resources to accomplish the task. An added benefit of effective delegation is the individual may find a better and more effective way to accomplish the task or achieve the desired results. 4. Clearly define the employee's responsibility and authority as it relates to the delegated task. Clearly communicate the expectation, responsibilities, and timeline. Be sure to ask the employee to share his or her understanding. 5. Establish a follow up meeting or touch points. The follow up meetings should be focused on two things-monitoring progress and determining the need for assistance. The number of follow

up meetings will vary based on the scope of the task or project and whether the employee is new or a long term member of the department. 3. Briefly classify the types of plans. Operational plans The specific results expected from departments, work groups, and individuals are the operational goals. These goals are precise and measurable. Process 150 sales applications each week or Publish 20 books this quarter are examples of operational goals. Tactical plans A tactical plan is concerned with what the lower level units within each division must do, how they must do it, and who is in charge at each level. Tactics are the means needed to activate a strategy and make it work. Strategic plans A strategic plan is an outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments. Strategic planning begins with an organization's mission. Contingency plans Intelligent and successful management depends upon a constant pursuit of adaptation, flexibility, and mastery of changing conditions. Strong management requires a keeping all options open approach at all times that's where contingency planning comes in. Differentiate between coordination and cooperation. Co-ordination Co-operation

4. Basis`

Meaning

It is an orderly arrangement of group efforts in pursuit of common goals.

It means mutual help willingly.

Scope

It is broader than co-operation which includes as well because it harmonizes the group efforts.

It is termed as a part of co-ordination.

Process

The function of co-ordination is performed by top management.

The functions of co-operation are prepared by persons at any level.

Requirements

Co-ordination is required by employees and departments at work irrespective of their work.

Co-operation is emotional in nature because it depends on the willingness of people working together.

Relationship

It establishes formal and informal relationships.

It establishes informal relationship.

Freedom

It is planned and entrusted by the central authority & it is essential.

It depends upon the sweet will of the individuals and therefore it is not necessary.

Support

It seeks wholehearted support from various people working at various levels.

Co-operation without co-ordination is fruitless & therefore it may lead to unbalanced developments.

5.

Name the theories of Motivation. There is various theory of motivation. These are:
Theories of Motivation

Maslows Need Theory Alderfers ERG Theory

Herzbergs Motivation Hygiene Theory/Two Factor Theory

McGregor Theory X and Theory Y

McClellands Need Theory of Motivation

Vrooms Valence and Instrumentality Theory

Porter-Lawler Model (Extension of VIE Theory)

Equity Theory of Work Motivation

Goal-Setting Theory Reinforcement Theory

6.

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7.

Write down the steps of planning process. The various stages in the process of planning are as follows: Goal setting: Plans are the means to achieve certain ends or objectives. Therefore, establishment of organizational or overall objectives is the first step in planning. Setting objectives is the most crucial part of planning. The organizational objectives should be set in key areas of operations. Developing the planning premises: Before plans are prepared, the assumptions and conditions underlying them must be clearly defined these assumptions are called planning premises and they can be identified through accurate forecasting of likely future events. Reviewing Limitations: In practice, several constraints or limitations affect the ability of an organization to achieve its objectives. These limitations restrict the smooth operation of plans and they must be anticipated and provided for. Deciding the planning period: Once the broad goals, planning premises and limitations are laid down, the next step is to decide the period of planning. The planning period should be long enough to permit the fulfillment of the commitments involved in a decision. Formulation of policies and strategies: After the goals are defined and planning premises are identified, management can formulate policies and strategies for the accomplishment of desired results. Preparing operating plans: After the formulation of overall operating plans, the derivative or supporting plans are prepared. Several medium range and short-range plans are required to implement policies and strategies. Integration of plans: Different plans must be properly balanced so that they support one another. Review and revision may be necessary before the plan is put into operation. Moreover, the various plans must be communicated and explained to those responsible for putting them into practice. What is meant by Leading? As one of the four functions of management, leading can be both extremely important and challenging. Along with planning, organizing and controlling, all managers will execute these four functions of management. From managing a local store to managing a large corporation, every manager will perform each of the functions at some point in their jobs. A manager should strive to become an inspiration to the rest of the employees. Employees will follow a manager because the manager is the boss. However, a manager that is an inspiration means that employees follow that person because they believe in what the manager is doing and they are trying to help the company achieve its goals. Finding ways to inspire employee means coaching them and motivating them to succeed as integral parts of the company.

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8.

What do you understand by Span of management? Span of management refers to the number of subordinates that a manger can efficiently manage. Number of subordinate directly reporting to a manager is known as span. Span of management is important for: Determining the complexity of an individual managers job and Determining shape and structure of the organization Fewer the number of subordinates reporting to a manger larger the number of managers required. Therefore span for control should be fixed.

9.

Discuss the concept of Organizational Structure? An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. Organizations are a variant of clustered entities. An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. What are the essential skills required for managers? There are three fundamental skills of a manager: TECHNICAL The manager should be proficient at specific tasks. This in turn helps to provide the credibility or knowledge to persuade people to do certain things. HUMAN The manager has to know how to work with people. CONCEPTUAL The manager can see the organization as a whole. In other words, there has to be some knowledge of the organization and what it does and how it interacts with other organizations.

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11.

What are the main barriers to effective planning? 1. Poor Communication: The planning process is complicated when communication within or between
groups is poor. Insufficient communication of tactics, plans and priorities leads to replication of effort and people working.

2. Resistance: The difficulties of the planning process are not always the result of accident or incompetence. Not infrequently, people who are going to be affected by change don't like the idea and resist it. 3. Insufficient Resources: If plans become excessively ambitious, they can sometimes by stymied be a simple lack of resources on the part of a company or organization. This is particularly true if the planning involves physical plant renovation or expansion. 4. Unknowable Future: No matter how thorough a planning process is, the future always holds surprises. Planners who forget this fact tend to create excessively detailed and specific plans, and then have these plans compromised by unexpected events or changing conditions. 5. Lack of Creative Thinking: The human mind tends to base its thoughts, activities and expectations on what has happened in the past. Often, this is a valuable trait, but in a planning process it can become a liability. 6. Inertia: Inertia is most frequently a problem for large and long-established organizations. Inertia can be created by a combination of archaic infrastructure, calcified modes of thinking, oversize bureaucracy and fear of change.

12.

Differentiate between Centralization & Decentralization. Centralization is said to be a process where the concentration of decision making is in a few hands. All the important decision and actions at the lower level, all subjects and actions at the lower level are subject to the approval of top management. According to Allen, Centralization is the systematic and consistent reservation of authority at central points in the organization. On the other hand, Decentralization is a systematic delegation of authority at all levels of management and in all of the organization. In a decentralization concern, authority in retained by the top management for taking major decisions and framing policies concerning the whole concern. Rest of the authority may be delegated to the middle level and lower level of management.

13.

Give the difference between Authority & Responsibility. Basis Authority Meaning It is the right of the manager to command his subordinates. It arises due to the position of superior. It flows from top to bottom.

Responsibility

It is the obligation of the subordinate to complete the assigned work. It arises due to superiorsubordinate relationship. It flows from bottom to top.

Origin Flow Period

It has longer period as compared to It gets completed with the responsibility. completion of the task so has the shorter period. Authority is power. Authority can be delegated to others. Responsibility is the duty. Responsibility cannot be delegated.

Nature Delegation

14.

List out the steps involved in formulation of policies. Process of Policy Formulation Policy formation is a creative and analytical phase of planning. It is based on the underlying objectives of the organization. Policy formulation process involves various steps or activities and their analysis in order arrive at a decision. The important steps involved in policy formulation may be briefly described as follows:

i. ii. iii. iv. v. vi. vii.

Understanding of Corporate Objectives Analysis of the Environment Internal Analysis Definition of Policy Area Choice or Selection of Policy Communication and Implementation of Policy Review and Modification of Policy

15.

List out the characteristics of control function. Controlling has the following important features, which clearly bring out its nature: Control is a Continuous Process: Purpose of Control is Positive: Controlling is a exercise at all levels in the Management Hierarchy: Control Guides Behavior of People and use of Resources and Facilities:. Control is mainly Forwarding Looking Control Measures and Evaluate Performances Control Facilities Coping with Environment Control Closely Related to Planning

i. ii. iii. iv. v. vi. vii. viii.

16.

Write down the main principles of organization. The organizing process can be done efficiently if the managers have certain guidelines so that they can take decisions and can act. To organize in an effective manner, the following principles of organization can be used by a manager.

i.

Principle of Specialization According to the principle, the whole work of a concern should be divided amongst the subordinates on the basis of qualifications, abilities and skills. It is through division of work specialization can be achieved which results in effective organization. Principle of Functional Definition According to this principle, all the functions in a concern should be completely and clearly defined to the managers and subordinates. This can be done by clearly defining the duties, responsibilities, authority and relationships of people towards each other.

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iii.

Principles of Span of Control/Supervision According to this principle, span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single manager. According to this principle, a manager should be able to handle what number of employees under him should be decided. This decision can be taken by choosing either from a wide or narrow span.

iv.

Principle of Scalar Chain Scalar chain is a chain of command or authority which flows from top to bottom. With a chain of authority available, wastages of resources are minimized, communication is affected, overlapping of work is avoided and easy organization takes place. A scalar chain of command facilitates work flow in an organization which helps in achievement of effective results.

v.

Principle of Unity of Command It implies one subordinate-one superior relationship. Every subordinate is answerable and accountable to one boss at one time. This helps in avoiding communication gaps and feedback and response is prompt.

17.

Write down the 7 Cs of communication. i. Clear When writing or speaking to someone, be clear about your goal or message. What is your purpose in communicating with this person? If you're not sure, then your audience won't be sure either. ii. Concise When you're concise in your communication, you stick to the point and keep it brief. Your audience doesn't want to read six sentences when you could communicate your message in three. iii. Concrete When your message is concrete, then your audience has a clear picture of what you're telling them. There are details (but not too many!) and vivid facts, and there's laser-like focus. Your message is solid. iv. Correct When your communication is correct, it fits your audience. And correct communication is also error-free communication. v. Coherent When your communication is coherent, it's logical. All points are connected and relevant to the main topic and the tone and flow of the text is consistent. vi. Complete In a complete message, the audience has everything they need to be informed and, if applicable, take action. vii. Courteous Courteous communication is friendly, open, and honest. There are no hidden insults or passiveaggressive tones. You keep your reader's viewpoint in mind, and you're empathetic to their needs.

18. Basis

Is Management & Administration different? Why? Management Administration

Meaning

Management is an art of getting things done through others by directing their efforts towards achievement of pre-determined goals.

It is concerned with formulation of broad objectives, plans & policies.

Nature

Management is an executing function.

Administration is a decision-making function.

Process

Management decides who should as it & how should he do it.

Administration decides what is to be done & when it is to be done.

Function

Management is a doing function because managers get work done under their supervision.

Administration is a thinking function because plans & policies are determined under it.

Skills

Technical and Human skills

Conceptual and Human skills

Level

Middle & lower level function

Top level function

According to Theo Haimann, Administration means overall determination of policies, setting of major objectives, the identification of general purposes and laying down of broad programmes and projects. It refers to the activities of higher level. It lays down basic principles of the enterprise. According to Newman, Administration means guidance, leadership & control of the efforts of the groups towards some common goals. Whereas, management involves conceiving, initiating and bringing together the various elements; coordinating, actuating, integrating the diverse organizational components while sustaining the viability of the organization towards some pre-determined goals. In other words, it is an art of getting things done through & with the people in formally organized groups. 19. 1. 2. 3. 4. 5. What are the elements involve in decision making? The Decision Makers Goals to be served Relevant Alternatives Ordering of Alternatives Choice of Alternatives

SECTION-B Attempt any two questions (150-200 words) (27.5=15) 1. What do you understand by Supervision? Explain the qualities of a good Supervisor. Supervision: Supervision means overseeing the subordinates at work. It involves a face-to-face contact between the supervisor and his subordinates. The aim of supervision is to ensure that subordinates work efficiently to accomplish the tasks assigned to them. Supervisor: A supervisor is the lowest, or most-junior, management position. It is usually a step above lead (Accounting Supervisor is senior to Lead Accounting Specialist), but below Manager. A supervisor is responsible for the day-to-day performance of a small group. It may be a team, or a shift. The supervisor has experience in what the group does, but is not necessarily better at it than everyone he/she supervises. The supervisor's job is to guide the group toward its goals, see that all members of the team are productive, and resolve problems as they arise. A supervisor generally does not have the power to hire or fire employees or to promote them. A supervisor usually recommends such action to the next level of management. The supervisor does,

however, often have the authority to change the work roles of the members of the team, for instance deciding which individual will work at which station. If vision implies seeing, the word supervision can be read as over-seeing, looking over someones shoulder to check on them; and also super in the sense of outstanding or special, helping someone to extend their professional skills and understanding. Both of these aspects will be relevant to varying degrees in supervision, depending on the context. It can be helpful to think about supervision both in terms of development (which is related to ongoing professional learning) and performance (which is related to clinical governance and standard setting). Managing a group of people who all have different personalities, abilities and who may or may not interact well with each other is not an easy task and, in my opinion, to be successful you require certain qualities and skills such as: i. Excellent communication skills: You need to relay instructions very clearly so every part is well understood in order to avoid mistakes. You also need to listen carefully to what your employees tell you. A very good way to make sure someone has understood your instructions is to ask them to repeat everything in their own words. To make sure you have received information correctly, you should say "so what you are saying is..." and repeat in your own words. This simple method avoids many misunderstandings. Fairness: Human beings react badly to what they perceive as unfair. So if you delegate work to others make sure you are scrupulous in allocating pleasant and unpleasant tasks evenly. Good organizational skills are essential: It is your job to coordinate the work and allocate resources. You should know where everything is and be prepared for the task. Knowledge: Part of the supervisor's job is to train others so it goes without saying that you should be at least one step ahead of them. Accountability: If a mistake is made by one of your team you should acknowledge responsibility every time unless they have deliberately disobeyed your instructions. Efficiency: For your department to work like clockwork you should always have the next task ready to be allocated to the right person so no-one spends any time doing nothing. Adaptability: Be ready to manage change efficiently as and when it happens even if you don't agree with it. Social skills: You should be courteous at all times. When you have to tell someone off, it should be done assertively but politely and never in front of other people. Everyone makes mistakes and nobody needs to be humiliated. Shouting at people is not a good idea as they will become resentful and unhappy. You will get more done with a smile than with rudeness. Don't be afraid to praise your team for a task well done. The carrot always works better than the stick. Diplomacy: As a supervisor you have loyalty to the company who pays your wages but also loyalty to your team who are responsible for your results. A difficult balance which requires a great deal of tact. Self-discipline: As a supervisor, you should inspire respect so discretion in your private life is not essential nor can you tell people off for lateness if you are always late yourself. Planning without control is meaningless and control without planning is a waste. Discuss. Also explain the main techniques of control. Planning and controlling are closely related to each other. After a plan becomes operational, control is necessary to measure progress, to uncover deviations from the targets and to take corrective steps. It is also not possible to think of an effective system of control without the existence of good plans.

ii. iii. iv. v. vi. vii. viii.

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Billy E. Geotz has explained the relationship between planning and controlling in the following words, "Managerial planning seeks consistent, integrated and articulated programmes, while management control seeks to compel events conform to plans". Control is always based on planning. It is also true that in a running enterprise planning depends upon controlling. Every manager uses certain standards for measuring and appraising performance which are laid down by planning. The control process, in turn, may reveal the deficiency of plans and may lead to the revision of planning. It may also lead to setting of new goals, improving staffing and making changes in the techniques of supervision, motivation and leadership. Planning without control is meaningless and control without planning is blind. Planning is an empty exercise without controlling. A good plan will not bring any concrete result if the management is lacking in controlling. Planning identifies the goals and determines the ways of achieving them. It is control which ensures attainment of goals by evaluating performance and taking corrective action. Control presupposes the existence of standards with which the actual performance is to be compared. If the standards of performance are not set in advance, the manager will have no idea of `what is control'. Thus, planning must be done before the actual operation and control should follow plans during and after the actual operation. The experience gained in controlling will help improve the process of planning. Controlling and coordination are twins of management. Control is an import-ant element in the process of management, whereas coordination is the essence of management itself. Control is a function of management like planning, organizing, staffing and directing. But coordination is an allinclusive function. Each of the managerial functions including controlling is an exercise in coordination. Thus, controlling is a facilitative function that promotes coordination in the organization. If controlling does not lead to effective coordination, its basic purpose will be lost. Controlling and coordination are closely related in many ways. Firstly, authority is the basis of both the processes. Secondly, both are performed by the managers at all levels. Thirdly, both are aimed at achieving organizational goals. Fourthly, both are necessary for achieving stability, continuity and growth of the organization and consistency, precision and discipline in the organization. Lastly, both control and coordination are rational concepts in the sense that they seek to relate organizational means with organizational ends or goals. They strive to maintain organizations as rational systems, relatively free from conflict, confusion and chaos. Controlling is an important function of management. Without control, a manager cannot complete his job. All other managerial functions are only preparatory steps for getting the work done, and controlling is concerned with making sure that there is proper execution of these functions. Control is necessary whenever a manager assigns duties and delegates authority to his subordinates. He must exercise control over the actions of his subordinates so that the authority delegated to them is used properly. The road signals at a road crossing appropriately illustrate the significance of control. Just as road signals are essential to ensure accident-free and smooth traffic, management controls are necessary in any organisation for its smooth functioning. By controlling, the manager ensures that resources are obtained and used economically and efficiently for the achievement of organisational objectives. A good control system provides timely information to the manager which is very much useful for taking various decisions. Control simplifies supervision by pointing out the significant deviations from the standards of performance. It keeps the subordinates under check and brings discipline among them.

3.

Differentiate between Authority and Responsibility. Responsibility and authority are two things which go hand in hand. People who are in an authoritarian position have more responsibilities which come with the power of authority. Authority comes with special skills, greater knowledge, and vast experience, or perhaps due to age and the type of education a person has achieved during his lifetime. For example, the parents have the authority to make decisions for their children till they are not grown up enough to make the decisions themselves. The senior-most people in an organization have the authority to make decisions for the gain of the whole organization. Responsibility, on the other hand, is another word for answerability. When one is responsible for some action or has to take the responsibility for the consequences of actions, taken either by themselves or by somebody else for whom they are responsible, this is answerability or responsibility. The consequences could be good or bad, but the accountability is taken by the person who is responsible. It has been seen that the people who are in authority are responsible for the combined actions or results of the whole organization. For example, if a company is doing well, the CEO is appreciated for his efforts as he is in the authority to take decisions as well as punish or reward anybody who is not working in the interests of the company. No matter who makes mistakes, a senior or a junior person in the company, the results that occur due to the actions are to be answered for by the senior-most people. Similarly, the parents have the authority to command obedience from their children. No matter how they instill obedience or discipline in their children, their actions whether good or bad are the responsibility of the parents. The parents are responsible and have to take the blame or the credit for the children. Responsibility definitely involves doing certain duties and in a reasonable fashion. Responsibility involves people being reasonable and having the duty to communicate to others what needs to be done. It also involves the awareness of certain relationships one has with others. Authority and responsibility might go hand in hand, but at times the people who are in power or authority choose to transfer the responsibility to others for a lot of things. People in authority have the power. Thus, they get away with shirking responsibility too. The person in authority might sometimes make blunders and not take responsibility for it. Thus, we can say that authority is basically power to make decisions, power to command others and rule others, but it does not necessarily mean that a person is a responsible person who is ready to be accountable for the people for whom he has authority over. Whereas a responsible person might not be the most authoritative person but be reasonable and skilled enough to be accountable.

4.

Explain with diagram of line and staff organization. Line and staff organization is a modification of line organization and it is more complex than line organization. According to this administrative organization, specialized and supportive activities are attached to the line of command by appointing staff supervisors and staff specialists who are attached to the line authority. The power of command always remains with the line executives and staff supervisors guide, advice and counsel the line executives. Personal Secretary to the Managing Director is a staff official.

 Features of Line and Staff Organization: 1. There are two types of staff : Staff Assistants- P.A. to Managing Director, Secretary to Marketing Manager. Staff Supervisor- Operation Control Manager, Quality Controller, PRO 2. Line and Staff Organization is a compromise of line organization. It is more complex than line concern. 3. Division of work and specialization takes place in line and staff organization. 4. The whole organization is divided into different functional areas to which staff specialists are attached. 5. Efficiency can be achieved through the features of specialization. 6. There are two lines of authority which flow at one time in a concern : Line Authority Staff Authority 7. Power of command remains with the line executive and staff serves only as counselors. Merits of Line and Staff Organization: 1. Relief to line of executives- In a line and staff organization, the advice and counseling which is provided to the line executives divides the work between the two. The line executive can concentrate on the execution of plans and they get relieved of dividing their attention to many areas. 2. Expert advice- The line and staff organization facilitates expert advice to the line executive at the time of need. The planning and investigation which is related to different matters can be done by the staff specialist and line officers can concentrate on execution of plans. 3. Benefit of Specialization- Line and staff through division of whole concern into two types of authority divides the enterprise into parts and functional areas. This way every officer or official can concentrate in its own area. 4. Better co-ordination- Line and staff organization through specialization is able to provide better decision making and concentration remains in few hands. This feature helps in bringing co- ordination in work as every official is concentrating in their own area. 5. Benefits of Research and Development- Through the advice of specialized staff, the line executives, and the line executives get time to execute plans by taking productive decisions which are helpful for a concern. This gives a wide scope to the line executive to bring innovations and go for research work in those areas. This is possible due to the presence of staff specialists. 6. Training- Due to the presence of staff specialists and their expert advice serves as ground for training to line officials. Line executives can give due concentration to their decision making. This in itself is a training ground for them. 7. Balanced decisions- The factor of specialization which is achieved by line staff helps in bringing coordination. This relationship automatically ends up the line official to take better and balanced decision.

8. Unity of action- Unity of action is a result of unified control. Control and its effectivity take place when co- ordination is present in the concern. In the line and staff authority all the officials have got independence to make decisions. This serves as effective control in the whole enterprise. Demerits of Line and Staff Organization: 1. Lack of understanding- In a line and staff organization, there are two authority flowing at one time. This results in the confusion between the two. As a result, the workers are not able to understand as to who is their commanding authority. Hence the problem of understanding can be a hurdle in effective running. 2. Lack of sound advice- The line official get used to the expertise advice of the staff. At times the staff specialists also provide wrong decisions which the line executives have to consider. This can affect the efficient running of the enterprise. 3. Line and staff conflicts- Line and staff are two authorities which are flowing at the same time. The factors of designations, status influence sentiments which are related to their relation, can pose a distress on the minds of the employees. This leads to minimizing of co- ordination which hampers a concerns working. 4. Costly- In line and staff concern, the concerns have to maintain the high remuneration of staff specialist. This proves to be costly for a concern with limited finance. 5. Assumption of authority- The power of concern is with the line official but the staff dislikes it as they are the one more in mental work. 6. Staff steals the show- In a line and staff concern, the higher returns are considered to be a product of staff advice and counseling. The line officials feel dissatisfied and a feeling of distress enters a concern. The satisfaction of line officials is very important for effective results.

5.

Management is a trinity of art, science & profession. In the light of this statement, explain the nature of management. Art: Art implies application of knowledge & skill to trying about desired results. An art may be defined as personalized application of general theoretical principles for achieving best possible results. Art has the following elements or characters1. Practical Knowledge: Every art requires practical knowledge therefore learning of theory is not sufficient. It is very important to know practical application of theoretical principles. E.g. to become a good painter, the person may not only be know different color and brushes but different designs, dimensions, situations etc to use them appropriately. 2. Personal Skill: Although theoretical base may be same for every artist, but each one has his own style and approach towards his job. That is why the level of success and quality of performance differs from one person to another. 3. Creativity: Management is also creative in nature like any other art. It combines human and nonhuman resources in useful way so as to achieve desired results. It tries to produce sweet music by combining chords in an efficient manner. 4. Perfection through practice: Practice makes a person perfect. Every artist becomes more and more proficient through constant practice. Similarly managers learn through an art of trial and error initially but application of management principles over the years makes them perfect in the job of managing.

5. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same manner, management is also directed towards accomplishment of predetermined goals. Managers use various resources like men, money, material, machinery & methods to promote growth of an organization. Thus, we can say that management is an art therefore it requires application of certain principles rather it is an art of highest order because it deals with molding the attitude and behavior of people at work towards desired goals. Management as a Science: Science is an organized body of knowledge based on proper findings and exact principles. It develops a relationship between cause and effect and its findings apply in all the situations. The basic difference between an art and science is that art implies knowing how the application whereas science is concerned with knowing why. Science is characterized by following main features: 1. Universally acceptance principles - Scientific principles represents basic truth about a particular field of enquiry. These principles may be applied in all situations, at all time & at all places. E.g. Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type of organization - business or non business. 2. Experimentation & Observation - Management principles are based on scientific enquiry & observation and not only on the opinion of Henry Fayol. They have been developed through experiments & practical experiences of large no. of managers. E.g. it is observed that fair remuneration to personal helps in creating a satisfied work force. 3. Cause & Effect Relationship - Principles of science lay down cause and effect relationship between various variables. E.g. when metals are heated, they are expanded. The cause is heating & result is expansion. The same is true for management; therefore it also establishes cause and effect relationship. E.g. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. If you know the cause i.e. lack of balance, the effect can be ascertained easily i.e. in effectiveness. Similarly if workers are given bonuses, fair wages they will work hard but when not treated in fair and just manner, reduces productivity of organization. 4. Test of Validity & Predictability - Validity of scientific principles can be tested at any time or any number of times i.e. they stand the test of time. Each time these tests will give same result. Moreover future events can be predicted with reasonable accuracy by using scientific principles.

E.g. H2 & O2 will always give H2O. Principles of management can also be tested for validity. E.g. principle of unity of command can be tested by comparing two persons - one having single boss and one having 2 bosses. The performance of 1st person will be better than 2nd. It cannot be denied that management has a systematic body of knowledge but it is not as exact as that of other physical sciences like biology, physics, and chemistry etc. The main reason for the inexactness of science of management is that it deals with human beings and it is very difficult to predict their behavior accurately.

Management as a Profession:Over a large few decades, factors such as growing size of business unit, separation of ownership from management, growing competition etc have led to an increased demand for professionally qualified managers. The task of manager has been quite specialized. As a result of these developments the management has reached a stage where everything is to be managed professionally. A profession may be defined as an occupation that requires specialized knowledge and intensive academic preparations to which entry is regulated by a representative body. The essentials requirements of a profession are: i. ii. iii. iv. v. 6. Specialized body of knowledge. Educational requirements and training. Representative or professional body. Code of conduct for self-regulation. Social status. What are the requirements of effective control? Focus on Objectives: The control system should always focus on objectives. It should aim to achieve the objectives of the organization. Suitability: The control system should be suitable to the needs of the organization. Promptness: The control system should be prompt. That is, it should find out the deviations quickly. This will help the management to correct the deviations quickly. Flexibility: The control system should be flexible. It should change according to the changes in plans, situations, environments, etc. A rigid control system will always fail. Hence flexibility is necessary for a control system. Forward Looking: The control system should be forward-looking. It should forecast the future deviations. That is, it should find out the deviations before it happens. It should also take steps to prevent these future deviations. Economical: The control system should be economical. This means the cost of the control system should not be more than its benefits. Simplicity: The control system should not be complicated. It should be easy to understand and simple to use. Those who are going to use the control system should understand it clearly and completely. Motivating: The control system should be motivating. That is, it should give more importance to preventing the mistakes and less importance to punishing the employees. So, it should encourage, not discourage the employees. Suggestive: The control system should be suggestive and it should give complete answers for the following questions :o What is the Problem? o Where is the Problem? o How to solve the Problem? Proper Standards: The control system should have proper standards. The standards should be very clear. They should be definite, verifiable, specific and measurable. They should not be too high or too low.

7.

Discuss the various functions of management. Functions of Management: The most widely accepted are functions of management given by KOONTZ and ODONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling. For theoretical purposes, it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the other & each affects the performance of others.

Planning Planning is the pre-determination of future course of action. It bridges the present with the future. It gives us an idea about where we are and where we want to go. Planning involves the formulation of what is to be done, how, when, where it is to be done. Who is to do it and how results are to be evaluated. The steps in planning are:Determination of objectives for the organization. Forecasting. Decision-making. Formulation of policies and procedures. Preparation of schedules programmes and budgets.

Organizing Organizing is the process of task allocation, delegation of authority and developing authority responsibility relationship. Organizing as a process involves: Identification of activities. Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility.

 Coordinating authority and responsibility relationships. Staffing Staffing is the function involves hiring right persons at the right time, training and development of employees, performance evaluation of employees, preparation of compensation package plan etc. Staffing involves: Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place). Recruitment, selection & placement. Training & development. Remuneration. Performance appraisal. Promotions & transfer. Directing Directing function involves providing effective leadership, integrating people and tasks, effective communication and providing climate for subordinates development. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements: Supervision Motivation Leadership Communication

Supervision- Implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. Motivation- It means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose. Leadership- It may be defined as a process by which manager guides and influence the work of subordinates in desired direction. Communications- It is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding. Controlling Controlling function involves checking the performance by comparing it with the desired results to see how much has been achieved.

 Therefore controlling has following steps: Establishment of standard performance. Measurement of actual performance. Comparison of actual performance with the standards and finding out deviation if any. Corrective action. 8. What are the various levels of management? Explain. The term Levels of Management refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa. The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position. The levels of management can be classified in three broad categories: Top level / Administrative level Middle level / Executory Low level / Supervisory / Operative / First-line managers

a. Top Level of Management It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions. The role of the top management can be summarized as follows Top management lays down the objectives and broad policies of the enterprise. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. It prepares strategic plans & policies for the enterprise. It appoints the executive for middle level i.e. departmental managers. It controls & coordinates the activities of all the departments. It is also responsible for maintaining a contact with the outside world. It provides guidance and direction. The top management is also responsible towards the shareholders for the performance of the enterprise. b. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as They execute the plans of the organization in accordance with the policies and directives of the top management. They make plans for the sub-units of the organization. They participate in employment & training of lower level management. They interpret and explain policies from top level management to lower level. They are responsible for coordinating the activities within the division or department. It also sends important reports and other important data to top level management. They evaluate performance of junior managers. They are also responsible for inspiring lower level managers towards better performance.
c. Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees. In other words, they are concerned with direction and controlling function of management. Their activities include 9. Assigning of jobs and tasks to various workers. They guide and instruct workers for day to day activities. They are responsible for the quality as well as quantity of production. They are also entrusted with the responsibility of maintaining good relation in the organization. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers. They help to solve the grievances of the workers. They supervise & guide the sub-ordinates. They are responsible for providing training to the workers. They arrange necessary materials, machines, tools etc for getting the things done. They prepare periodical reports about the performance of the workers. They ensure discipline in the enterprise. They motivate workers. They are the image builders of the enterprise because they are in direct contact with the workers.

Define Directing. What are its elements? DIRECTING is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Directing is said to be the heart of management process. Planning, organizing, staffing has got no importance if direction function does not take place.

Directing initiates action and it is from here actual work starts. Direction is said to be consisting of human factors. In simple words, it can be described as providing guidance to workers is doing work. In field of management, direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. According to Human, Directing consists of process or technique by which instruction can be issued and operations can be carried out as originally planned Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people towards accomplishment of organizational

goals. Direction has got following characteristics: Pervasive Function - Directing is required at all levels of organization. Every manager provides guidance and inspiration to his subordinates. Continuous Activity - Direction is a continuous activity as it continuous throughout the life of organization. Human Factor - Directing function is related to subordinates and therefore it is related to human factor. Since human factor is complex and behavior is unpredictable, direction function becomes important. Creative Activity - Direction function helps in converting plans into performance. Without this function, people become inactive and physical resources are meaningless. Executive Function - Direction function is carried out by all managers and executives at all levels throughout the working of an enterprise; a subordinate receives instructions from his superior only. Delegate Function - Direction is supposed to be a function dealing with human beings. Human behavior is unpredictable by nature and conditioning the peoples behavior towards the goals of the enterprise is what the executive does in this function. Therefore, it is termed as having delicacy in it to tackle human behavior.

Elements of Direction Supervision "Guiding and directing efforts of employees and other resources to accomplish stated work outputs" - Terry and Franklin. Supervision is an element of direction. "Day-to-day relationship between an executive and his immediate assistant and covers training, direction, motivation, coordination, maintenance of discipline, etc." - Newman and Warren. Supervision denotes the functions performed by the supervisors. Motivation "Motivation is the complex force starting and keeping a person at work in an organization. Motivation is something that moves the person to action, and continues him in the course of action already initiates." - Dubin. Motivation is the core of management. Technically, the term motivation can be traced to the Latin word movere, which means 'to move'. Motivating is a term which implies that one person induces another, to engage in action by ensuring that a channel to satisfy the motive becomes available to the individual. Motive is energizer of action, motivating is the channelization and activation of motives, motivation is the work behavior itself. Motivation depends on motives and motivating. It is a complex process. Leadership "Leadership is essentially a continuous process of influencing behaviour. A leader breathes life into the group and motivates it towards goals. The lukewarm desires for achievement are transformed into burning passion for accomplishment" - George R. Terry. Leadership is the process of influencing the behavior of others to work willingly and enthusiastically for achieving predetermined goals. It is an essential ingredient for successful organization. The successful

organization has one major attribute that sets it apart from unsuccessful organization that is dynamic and effective leadership. Communication "Communication is the transfer of information from one person to another person. It is a way of reaching others by transmitting ideas, facts, thoughts, feeling sand values." - Newstrom and Davis. Communication is regarded as basic to the functioning of the organization, in its absence; the organization would cease to exist. It is the process through which two or more persons come to exchange ideas and understanding among themselves. 10. Differentiate between the theory of Taylors scientific management & Fayols theory of organization. Scientific Management The concept of scientific management was developed by Frederick Taylor (1856-1915) in late 19th century. The core idea of scientific management was to increase the efficiency of workers through rationalization and standardization of work. The main concepts and techniques used to achieve increased efficiency were division of labor, time and motion studies, work measurements and piecerate wages. Administrative Management The concept of administrative management was introduced by Henry Fayol (1841-1925) and focused on the management process and principles of management. He created a functional approach to management and argued that management is a universal process that consists of planning, organizing, commanding, coordinating and controlling. Comparison between Taylor and Fayol

S. No. 1. 2.

Basis of comparison Perspective Focus

Taylor Shop floor level Improving productivity through work simplification & standardization Scientist Scientific observation and measurement Science of industrial management

Fayol Top management Improving overall administration through general principles Practitioner Universal truths developed from personal experience A systematic theory of management

3. 4.

Personality Results

5.

Major contribution

11.

Explain the Elton Mayo theory of management. Hawthorne Experiments:

George Elton Mayo (December 26, 1880 September 7, 1949) was an Australian psychologist, sociologist and organization theorist. Elton Mayos Study based on Employee Motivation and Work Productivity. E. Mayo conducted the Hawthorne experiments at Hawthorne plant of general electronic company (GEC) and manufacturing telephone system bell Chicago with 30,000 workers. In the plant, there prevailed a great deal of discontent and dissatisfaction among its employees. The experiment was conducted in many phases and the results of the study are known as Hawthorne experiments. The researchers George Elton Mayo and Fritz J. Roethlisberger of the Harvard Business School were invited to join in studies at the Hawthorne works in 1927, which is lasted up to 1932 with the objective of the experiment was to find out the behaviour and attitude of employees under better working conditions. Earlier from 1924 to 1927, the management requested National Academy of Sciences to investigate the reasons for dissatisfaction of employees and decrease in productivity. On this basis, Prof. Elton Mayo and his team conducted researches in four phases. Following experiments were conducted under Hawthorne experiments:
a) b) c) d) Illumination experiments (1924-27) Relay assembly room experiments (1927-1928) Mass interviewing programme (1928-1930) Bank wiring room study (1931-1932)

1. Illumination experiments: This experiment was conducted to establish relationship between output and illumination. When the intensity of light was increased, the output also increased. The output showed an upward trend even when the illumination was gradually brought down to the normal level. Therefore, it was concluded that there is no consistent relationship between output of workers and illumination in the factory. There must be some other factor which affected productivity. 2. Relay assembly room experiments: This experiment was done to knowing not only the impact of illumination on production but also the other factors like length of the working day, rest hours, and other physical conditions. In this experiment, a small homogeneous work-group of six girls was constituted. These girls were friendly to each other and were asked to work in a very informal atmosphere under the supervision of a researcher. Productivity and morale increased considerably during the period of the experiment. Productivity went on increasing and stabilized at a high level even when all the improvements were taken away and the pre-test conditions were reintroduced. The researchers concluded that socio-psychological factors such as feeling of being important, recognition, attention, participation, cohesive work-group, and non-directive supervision held the key for higher productivity. 3. Mass interviewing programme: After the second phase of experiment researchers begin to realize the importance of informal groups. They conducted about 20,000 interviews between 1928 & 1930 to determine the employees attitude towards company, supervision, insurance plans, promotion. Interviews asked questions considered important by managers and researchers. The researchers observed that the replies of the workmen were guarded. Therefore, this approach was replaced by an indirect technique, where the interviewer simply listened to what the workmen had to say. The findings confirmed the importance of social factors at work in the total work environment. 4. Bank wiring room study: The objective of fourth phase of research programme was to conduct an observational analysis of the informal work groups to find out the social aspect of work organization. There were 14 men employed on bank wiring including nine wiremen, three solder men and two inspectors. So, workers were asked to install, wires to switches and they have been given certain target in a day. They were failed to achieve that.

They all performed according to norms of the group not as an individual because they have set their own norms of behaviour including personal conduct.

There are some following reasons for low performance: i. ii. iii. iv. Fear of unemployment of less-productive workers. The group had its own unofficial standards of performance. Individual output remained fairly constant over a period of time. Protection of slower workers.

12.

Explain the advantages & disadvantages of Centralization & Decentralization. Centralization: Centralization is said to be a process where the concentration of decision making is in a few hands. All the important decision and actions at the lower level, all subjects and actions at the lower level are subject to the approval of top management. According to Allen, Centralization is the systematic and consistent reservation of authority at central points in the organization. The implication of centralization can be:1. Reservation of decision making power at top level. 2. Reservation of operating authority with the middle level managers. 3. Reservation of operation at lower level at the directions of the top level. Under centralization, the important and key decisions are taken by the top management and the other levels are into implementations as per the directions of top level. For example, in a business concern, the father & son being the owners decide about the important matters and all the rest of functions like product, finance, marketing, personnel, are carried out by the department heads and they have to act as per instruction and orders of the two people. Therefore in this case, decision making power remain in the hands of father & son. Advantages of Centralization:

1. Reduced cost The standardized procedure and method helps in considerably reduction of office cost. Office cost is reduced as it does not emphasize on more specialists, and more departmental machines and equipment. 2. Uniformity in action Uniformity in action is established throughout the organization because of central administrative control. The same executive supervises the work and same type of office equipments are used which ensure uniform performance of activities. 3. Personal leadership Centralization encourages and permits personal leadership. The introduction of personal leadership facilitates quick action, aggressive marketing and attainment of pin-pointed objective or purpose, 4. Flexibility Centralization permits flexibility and adaptability of the organization to the changed circumstances. Occasional pressure of extra clerical work is handled with the existing staff. 5. Improved quality of work Improved quality of work is possible because of standardized procedure, better supervision and use of improved- machinery.

6. Better co-ordination Centralization facilitates better coordination among various operations. Direct control and supervision are facilitated which results in less likelihood of conflict of authority and duplication of work. 7. Quick decision- For taking advantage of rare opportunities coming in the way, it is necessary that decision should be quickly taken lest the opportunity so available may be slipped away. Centralized office organization helps in such a quick decision. 8. No duplication of work- centralized personal leadership, uniformity of activities and specialization leave any scope for duplication of work in the office. Thus extra labor and extra cost involved in duplication is avoided and economy is ensured. Disadvantages of Centralization:
Opponents attribute the following disadvantages against centralization.

1. Delay in work Centralization creates loss of man-hours and delay in performance of work because of transmission of records from and to the central control room. Quick decision is not possible which also results delay in office work. 2. Remote control Better supervision is not possible as the executives are under heavy pressure of work. Slackness in work is developed in the absence of better control and supervision. 3. No loyalty In centralization there is no subordinate's initiative in work because they are required to do such works which they were asked for. Workers work like machine which results in no involvement in work and absence of zeal. All these factors stand as barrier in the development of loyalty to work. 4. No SecrecySecrecy is not possible in centralized set up organization because here orders and decisions flow from one place and are conveyed to all. 5. No special attention In centralization no special attention is given to special work as all works are done at one place. Decentralization: On the other hand, Decentralization is a systematic delegation of authority at all levels of management and in all of the organization. In a decentralization concern, authority in retained by the top management for taking major decisions and framing policies concerning the whole concern. Rest of the authority may be delegated to the middle level and lower level of management. The degree of centralization and decentralization will depend upon the amount of authority delegated to the lowest level. According to Allen, Decentralization refers to the systematic effort to delegate to the lowest level of authority except that which can be controlled and exercised at central points. Decentralization is not the same as delegation. In fact, decentralization is all extension of delegation. Decentralization pattern is wider is scope and the authorities are diffused to the lowest most level of management. Delegation of authority is a complete process and takes place from one person to another. While decentralization is complete only when fullest possible delegation has taken place. For example, the general manager of a company is responsible for receiving the leave application for the whole of the concern. The general manager delegates this work to the personnel manager who is now responsible for receiving the leave applicants. In this situation delegation of authority has taken place. On the other hand, on the request of the personnel manager, if the general manager delegates this power to all the

departmental heads at all level, in this situation decentralization has taken place. There is a saying that Everything that increasing the role of subordinates is decentralization and that decreases the role is centralization. Decentralization is wider in scope and the subordinates responsibility increase in this case. On the other hand, in delegation the managers remain answerable even for the acts of subordinates to their superiors. Implications of Decentralization 1. There are fewer burdens on the Chief Executive as in the case of centralization. 2. In decentralization, the subordinates get a chance to decide and act independently which develops skills and capabilities. This way the organization is able to process reserve of talents in it. 3. In decentralization, diversification and horizontal can be easily implanted. 4. In decentralization, concern diversification of activities can place effectively since there is more scope for creating new departments. Therefore, diversification growth is of a degree. 5. In decentralization structure, operations can be coordinated at divisional level which is not possible in the centralization set up. 6. In the case of decentralization structure, there is greater motivation and morale of the employees since they get more independence to act and decide. 7. In a decentralization structure, co-ordination to some extent is difficult to maintain as there are lot many department divisions and authority is delegated to maximum possible extent, i.e., to the bottom most level delegation reaches. Centralization and decentralization are the categories by which the pattern of authority relationships became clear. The degree of centralization and de-centralization can be affected by many factors like nature of operation, volume of profits, number of departments, size of a concern, etc. The larger the size of a concern, a decentralization set up is suitable in it. Advantages of decentralization: Decentralization encourage under consultation i.e. no department in the organization is neglected in the decision making process. It increases efficiency of the organization. Quick development is achieved in a decentralize system because there is opportunity for development in this system (every unit has the tendency to develop even faster than others. It speeds up operational decisions in the organization: For example, species working in the production sector of the organization goods can take major decisions about local matters without further reference. This is especially relevant for diverse product groups. It brings spirit of belonging: i.e. junior managers are happy because they can delegate authorities. It encourages initiative and motivation: Middle management can exercise power for greater authority in a decentralized situation. Also, it stimulates managers and supervisors to use their initiative. It copes better with change: Organization that are operating in a highly flexible market (rapid changing technology) can cope more easily if they decentralize decision to those in touch with the immediate problems of adaptation. Limitations of Decentralization: Decentralization may lead to the problem of co-ordination at the level of an enterprise as the decisionmaking authority is not concentrated. Decentralization may lead to inconsistencies (i.e. absence of uniformity) at the Organization level. For example, uniform policies or procedures may not be followed for the same type of work in different divisions. Decentralization is costly as it raises administrative expenses on account of requirement of trained personnel to accept authority at lower levels. Even the services of such highly paid manpower may not be utilized fully, particularly in small organizations.

Introduction of decentralization may be difficult or may not be practicable in small concerns where product lines are not broad enough for the creation of autonomous units for administrative purposes. Decentralization creates special problems particularly when the enterprise is facing number of uncertainties or emergency situations. The decision-making process gets delayed and even correct decisions as per the changing situations may not be possible. Differentiate between Direction & Supervision. Basis of Differences Meaning Direction Direction is a function of instructing, guiding and motivating the subordinates for the achievement of organizational goals. Direction includes communication, leadership, motivation and supervision. Direction is important at all levels of the organization, i.e., from top management to operative level. Direction does not need frequent face-to-face contact between the superior and the subordinate. Supervision Supervision is a function of controlling the subordinates to ensure that work is being done in accordance with the instructions issued. Supervision is only an element of direction function. Supervision is important at the operative level because the activities of workers must be guided and controlled continuously. Supervision involves frequent face-to-face contact between the superior and the subordinate.

13.

Elements

Importance in Hierarchy

Face to Face Contact

14.

Discuss the system & situational approach. System Approach

The systems approach to management implies that every manager should be much more precise about decision-making and information flow. For this to be effective, a company should have an overall system of corporate objectives. First a detailed systems study will be necessary to decide on the best objectives and then subsidiary systems must be set up to realize these objectives as efficiently as possible. This paper is directed at senior management and is a simple attempt to emphasize the urgent need to apply the systems approach, both in government and industry. Contingency Approach

The contingency approach is relatively new approach to management. It is an extension of the systems approach. The basic theme of the contingency approach is that organizations have to cope with different situations in different ways. There is no single best way of managing applicable to all situations. The contingency approach attempts to match specific concepts and techniques of managing to the specific situation at hand in order to attain organizational objectives most effectively. The main features of the contingency approach are as follows:

i.

ii.

iii. iv.

Management is entirely situational. The application and effectiveness of any technique is contingent on the situation. In other words, the conditions and complexity of the situation determine which measure or technique is applicable and effective. Management should, therefore, match or fit its approach to the requirements of the particular situation. To be effective management policies and practices must respond to environmental changes. The organizational structure, the leadership style, and the control system all should be designed to fit the particular situation. Since managements success depends on its ability to cope with its environment; it should sharpen its diagnostic skills so as to anticipate and comprehend the environmental changes. Managers should understand that there is no one best way to manage. They must not consider management principles and techniques universal. Explain the concept of motivation. Discuss its nature & significance. Motivation: The term motivation has been derived from the word motive. A motive is an inner state that activated, energizes or moves an individual and channelizes his behavior towards goals. Motivation is a psychological process. In brief we can say motivation is a relation between need, drive and goal. Nature of Motivation:

15.

Psychological concept Continuous process Complex and difficult function Circular process

Importance of Motivation: Higher efficiency Low absenteeism and turnover. Facilitates change Human relations

16.

Distinguish between Theory X & Theory Y. McGregor Theory X & Theory Y McGregor developed two theories of human behavior at work: Theory and X and Theory Y. He did not imply that workers would be one type or the other. Rather, he saw the two theories as two extremes - with a whole spectrum of possible behaviors in between. Theory X workers could be described as follows: - Individuals who dislike work and avoid it where possible - Individuals who lack ambition dislike responsibility and prefer to be led

- Individuals who desire security The management implications for Theory X workers were that, to achieve organizational objectives, a business would need to impose a management system of coercion, control and punishment. Theory X and Theory Y: Douglas McGregor proposed a Theory X and Theory Y model to explain basic human traits. Theory X assumptions are: The average human being has an inherent dislike of work and will avoid it if he can. Most people must be coerced, controlled, directed or threatened with punishment to get them to expend adequate effort towards the achievement of organizational objectives. The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all. On the other hand, Theory Y makes different assumptions about the nature of people: Expenditure of physical and mental effort in work is as natural as play or rest. The average human being does not inherently dislike work, which can be a source of satisfaction. External control and the threat of punishment are not the only means of bringing about effort. People can exercise self-direction to achieve objectives to which they are committed. Commitment to objectives is a result of the rewards associated with their achievement. The most significant of those rewards is satisfaction of the self -actualization needs. The average human being learns, under proper conditions, not only to accept, but to seek, responsibility. Avoidance of responsibility, emphasis on security and low ambition are the result of experience and are not inherent in mans nature. Capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population. Under conditions of modern industrial life, the intellectual potential of the average human being is only partially utilized.

17.

What was Max Webers contribution to management? Max Weber Theory: Bureaucratic Model: Bureaucracy is an administrative system designed to accomplish large scale administrative tasks by systematically coordinating the work of many individuals. Weber said that in any organization there are three types of power: traditional, charismatic and rational legal. He has emphasized that bureaucratic type of power is the ideal one. Max Weber (1864-1920), a German sociologist. Weber specified several characteristics and elements of his ideal organization structure. Weber identified three types of legitimate authority: 1. Rational-legal authority: Obedience is owned to a legally established position or rank within the hierarchy of a business, military unit, government, and so on. 2. Traditional authority: People obey a person because he belongs to certain class or occupies a position traditionally recognized as possessing authority, such as a royal family.

3. Charismatic authority: Obedience is based on the followers belief that a person has some special power or appeal. Webers theory of bureaucracy recognizes rational-legal authority as the most important type in organizations. Under traditional authority, leaders are not chosen for their competence, and charismatic authority is too emotional and irrational. Characteristics or Features of Bureaucracy
Weber has given a number of features or characteristics of bureaucratic organizations. These are:

1. Administrative Class: Bureaucratic organizations generally have administrative class responsible for maintaining coordinative activities of the members. Members are whole time employees their tenure in the organization is determined by the rules and regulations of the organization. They are selected for the purpose of employment based on their competence. 2. Hierarchy: Hierarchy is a system of ranking various positions in descending scale from top to bottom of the organization. This hierarchy serves as lines of communication and delegation of authority. It implies that communication coming down or going up must pass through each position. 3. Division of Work: Work of the organization is divided on the basis of specialization to take the advantage of division of labor. Thus, division of labor tries to ensure that each office has a clearlydefined area of working within the organization and each one knows the areas in which he operates and the areas in which he must not get involve from action so that he does not go beyond the boundary between his role and those of others. 4. Official Rules: A basic feature of bureaucratic organization is that administrative process is continuous and governed by official rules. Rules provide the benefits of stability, continuity, and predictability and each official knows precisely the outcome of his behavior in a particular matter. 5. Impersonal Relationships: A notable feature of bureaucracy is that relationships among individuals are governed through the system of official authority and rules. Official positions are free from personal involvement, emotions and sentiments. Thus, decisions are governed by rational factors rather than personal factors. 6. Official Record: Bureaucratic organization is characterized by maintenance of proper official records. The decisions and activities of the organization are formally recorded and preserved for future reference.

Benefits of Bureaucracy Bureaucracy is an administrative device that can help in achieving the following advantages: 1. Distribution of Authority: There is a proper delegation of authority in the organization. People are given tasks according to their competence. 2. Uniformity: Because of rules & regulations, all actions are taken carefully. There is consistency of actions.

3. Rationality: The behavior of the employees is rational. They take decisions as per laws, rules & regulations. 4. Predictability: The behavior of the employee is predictable to know how they will react under different situations as guidelines are already there in writing. 5. Efficiency: A division of work leading to specialization which results in efficiency. Disadvantages of Bureaucracy 1. Since there is impersonal nature of work the employees do not care about the organization. 2. Sometimes employees in a bureaucratic organization become so observed about following rules & regulations and they forget their original goal or target to achieve. 3. Due to excessive rules & regulations employees are treated like machines & not like individual. Behavioral scientist has criticized bureaucratic organization according to them it is an inhuman organization. 4. In bureaucratic structure there is a resistance to change & introduction of new techniques of operations as demanded by the fast changing environment. 18. What is meant by Communication? Discuss in brief its Scope and Objectives. Meaning & Definition: The word communication has been derived from the Latin Word, Communis or Communiacare which means to make common. Communication is the activity or process of expressing or transmitting ideas and thoughts from one person to another person for the purpose of creating understanding in the thinking of the person receiving the communication. It involves a systematic process of telling, listening and understanding. Communication is an art which people use for mutual understanding. Communication is an intercourse by words, letters, symbols or message: and is a way that one organization member shares meaning and understanding with another. Given by- Koontz and ODonnell Scope of Communication: Information sharing: The main purpose of communication is to transmit information from a source to target individuals or groups. Various types of information are transmitted in the organization rules and regulations, policies and changes and development in the organization etc. Feedback: There is a need to give feedback to the employees on their achievements, to the departments on their performance, and to the higher management on the fulfillment of goals. Control: The management information system is well known as a control mechanism. Information is transmitted to ensure that plans are being carried out according to the original design. Influence: The purpose of communication is to influence people. The manager communicates to create a good working environment, right attitudes, and friendly working relationship. Problem solving: In many cases communications aim at solving problems. Communication between the management and the unions on some issues is aimed at finding a solution. Alternate solutions are also put forward to solve the problems. Decision-making: For arriving at a decision several kinds of communication are needed, e.g.; exchange of information, views and available alternatives etc., thus communication helps a great deal in decision making.

1.

2. 3. 4. 5.

6.

7. Group building: Communication helps in building relationship. Communication provides the necessary lubricants for the proper functioning of a group. 8. Gate keeping: Communication helps to build linkages of the organization with the outside world. The organization can use its environment to increase its effectiveness. Objective of communication: 1. Conveying the right message: The main objective of communication is to convey the right message to the right person for whom it is meant. 2. Coordination of effort: Communication is an effective tool for coordinating the activities of different persons engaged in running a business. All the workers have to do all work in the same direction and help to each other. 3. Good industrial relations: Communication develops good industrial relations as it conveys the feelings, ideas, opinions and viewpoints of one party to the other party. The two parties like the management and the subordinates come closer through communication. 4. Development of managerial skills: Communication helps managers to understand human behavior at work. The managers learn many things by the communication of facts, ideas, opinions, information etc. and value to knowledge of managers about various happenings in the organization and behavior of people.

SECTION-C Attempt any three questions (300-350 words) (315=45) 1. Briefly discuss the Leadership Styles and Approaches. Leadership: Leadership is the process of influencing the behavior of others to work willingly and enthusiastically for achieving predetermined goals. It is the ability of a leader to induce subordinates to work with confidence and zeal. Leadership changes potential into reality. It is the final act that brings to success or the potential, i.e., in an organization and its people. Thus, leadership is the ability to influence a group toward the achievement of goals. According to Alan Keith, Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen. Leadership Styles: Authoritarian Leadership (Autocratic) Authoritarian leaders, also known as autocratic leaders, provide clear expectations for what needs to be done, when it should be done, and how it should be done. There is also a clear division between the leader and the followers. Authoritarian leaders make decisions independently with little or no input from the rest of the group. Participative Leadership (Democratic) Lewiss study found that participative leadership, also known as democratic leadership, is generally the most effective leadership style. Democratic leaders offer guidance to group members, but they also participate in the group and allow input from other group members. In Lewiss study, children in this group were less productive than the members of the authoritarian group, but their contributions were of a much higher quality.

Participative leaders encourage group members to participate, but retain the final say over the decisionmaking process. Group members feel engaged in the process and are more motivated and creative. Delegative (Laissez-Faire) Leadership Researchers found that children under delegative leadership, also known as laissez-fair leadership, were the least productive of all three groups. The children in this group also made more demands on the leader, showed little cooperation and were unable to work independently. Delegate leaders offer little or no guidance to group members and leave decision-making up to group members. While this style can be effective in situations where group members are highly qualified in an area of expertise, it often leads to poorly defined roles and a lack of motivation. Leadership Approaches: 1. The Trait Approach to Leadership: The Trait Approach arose from the Great Man theory as a way of identifying the key characteristics of successful leaders. It was believed that through this approach critical leadership traits could be isolated and that people with such traits could then be recruited, selected, and installed into leadership positions. This approach was common in the military and is still used as a set of criteria to select candidates for commissions. The problem with the trait approach lies in the fact that almost as many traits as studies undertaken were identified. After several years of such research, it became apparent that no consistent traits could be identified. Although some traits were found in a considerable number of studies, the results were generally inconclusive. Some leaders might have possessed certain traits but the absence of them did not necessarily mean that the person was not a leader. Although there was little consistency in the results of the various trait studies, however, some traits did appear more frequently than others, including: technical skill, friendliness, task motivation, application to task, group task supportiveness, social skill, emotional control, administrative skill, general charisma, and intelligence. Of these, the most widely explored has tended to be charisma. 2. The Behavioral School: The results of the trait studies were inconclusive. Traits, amongst other things, were hard to measure. How, for example, do we measure traits such as honesty, integrity, loyalty, or diligence? Another approach in the study of leadership had to be found. After the publication of the late Douglas McGregor's classic book The Human Side of Enterprise in 1960, attention shifted to behavioral theories. McGregor was a teacher, researcher, and consultant whose work was considered to be "on the cutting edge" of managing people. He influenced all the behavioral theories, which emphasize focusing on human relationships, along with output and performance. 3. McGregors Theory X & Theory Y Managers: Although not strictly speaking a theory of leadership, the leadership strategy of effectively-used participative management proposed in Douglas McGregor's book has had a tremendous impact on managers. The most publicized concept is McGregor's thesis that leadership strategies are influenced by a leader's assumptions about human nature. As a result of his experience as a consultant, McGregor summarized two contrasting sets of assumptions made by managers in industry.

Theory X managers believe that: The average human being has an inherent dislike of work and will avoid it if Possible. Because of this human characteristic, most people must be coerced, controlled, directed, or threatened with punishment to get them to put forth adequate effort to achieve organizational objectives. The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all else.

Theory Y managers believe that: The expenditure of physical and mental effort in work is as natural as play or rest, and the average human being, under proper conditions, learns not only to accept but to seek responsibility. People will exercise self-direction and selfcontrol to achieve objectives to which they are committed. The capacity to exercise a relatively high level of imagination, ingenuity, and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population, and the intellectual potentialities of the average human being are only partially utilized under the conditions of modern industrial life.

2.

What are the various Barriers of communication? Also explain the various ways of overcoming barriers. Introduction: Communication is a complex process wherein information is shared between individuals through a common system of symbols, signs, and behavior expressing feelings, ideas, views, opinions, etc. People communicate to satisfy needs. This poor (or ineffective or unsuccessful or failed) communication is caused by a large number of barriers. We will however be discussing them under three broad categories.

Types of Barriers: Barriers of communication can be classified as under:

Barriers in Communication

Semantic or Language Barriers

Organizational Barriers

Personal Barriers

Emotional or Perceptional Barriers Socio-Psychological Barriers

Physical Barriers

Cultural Barriers

Technological Barriers

1. Semantic Barriers: The obstructions that come in the process of encoding or decoding the message are known as semantic barriers. Some of them are as follows: a) Different Language: Employees in organization have no common language. This is obvious barrier where there is no common language to convey ideas, feelings and information. b) Words: Words and symbols used have several meanings depending upon the context in which they are used. Same word can have different meanings. Similar sounding words like access and excess, flour and flower, cite, site and sight can cause misunderstanding in speech. c) Pictures: Maps, graphs, charts, blueprints, and three dimensional models etc, pictures should be supported with proper words; otherwise the receiver may get confused and might not understand properly. d) Actions: Actions include gestures, movements and body language. Proper actions make communication effective. e) Poor Vocabulary: The communicator should use the clear and precise meaning of the used words and their appropriate replacement, if needed. 2. Emotional or Psychological Barriers: These arise from motives, attitudes, judgement, sentiments, emotions, and social values of participants. These create psychological distance that hinders the communication or partly filters it out, or causes misinterpretation, thereby making the communication inadequate. Following are some emotional barriers: a) Loss in Transmission and Retentions: Communication when passed through various levels in an organization, its accuracy gets decreased.

b) Distrust of Communicator: Mangers own subordinates sometimes distrust the communication, especially when he lacks self-confidence, or is less competent in his position. c) Failure to Communicate: Sometimes managers do not communicate the needed message to their subordinates either due to laziness, or they arbitrarily assume that everybody has got the information, or they may hide information deliberately to embarrass the subordinate. d) Undue Reliance on the Written Word (Order): In this case, employees hesitate in accepting the face to face verbal communication of their superiors because the oral orders of superiors are not consistent with the written policies of the organization. Only written communication is taken seriously making organizational verbal communication ineffective. 3. Physical Barriers: Some physical barriers are as follows: a) Noise: Any disturbance or interference that reduces the clarity and effectiveness of communication is called noise. b) Improper Time: It also hinders the process of communication. For example, a phone call at midnight, interrupting sleep, further irritates the receiver, if message is not urgent. c) Distance: Long distance between the senders and receivers can also obstruct effective communication. 4. Organizational Barriers: Major organizational barriers are as follows: a) Organizational policy: If the policy hindrance in the free flows of communication in different directions, communication would not be smooth and effective. b) Organizational Rules & Regulation: Organizational rules & regulations prescribing the different sub-matter along the formal communication may restrict the flow of messages and act as hindrance in the communication process. 5. Personal Barriers: As communication is basically an interpersonal process, many personal factors inherent in the sender and receiver influence the flow of communication: I. Barriers in Superiors: Superiors play an important role in communication. Because of their hierarchical position, superiors act as barriers in a number of ways as follows: a) Attitude of superiors: If the attitude is unfavorable, there is greater possibility of filtering or coloring of the information. b) Fear of challenge to authority: Superiors many times withhold the upward or downward flow of information for the fear of disclose of their own weaknesses, especially when superior lacks self-confidence. c) Underestimation of their subordinates: The superiors generally perceive that their subordinates are less competent and are not capable of advising their superiors. This stops the superiors to talk to their subordinates. d) Ignoring the juniors: Superiors ignore their juniors and do not pass the information, just as to maintain their importance. II. Barriers Regarding Subordinates: Factors like attitude, lack of time etc. adversely affect the subordinates participation in communication process. Two more factors, blocking upward communication are: a) Unwillingness to communicate: The subordinates generally are not willing to communicate upward any information which is likely to affect them adversely. b) Poor Listening: Most of the times managers just hear, but not attentively. c) Egotism: The self-centered persons think that their own ideas are more important and others are wrong. Such people are very bad listeners.

d) Emotions: Effective communication requires a clear heart and a silent mind. 6. Socio-psychological Barriers: Socio-psychological this comes out of attitudes, emotions, status, source of communication, inattentiveness, poor retention, unsolicited communication, etc. People attend to stimuli in the environment in very different ways. Communication fails if there are hasty judgments, refusal to listen to a problem, distraction, acceptance of words literally, fear of criticism, day dreaming, impatience, interruptions, preconceived notions, switching off, etc. 7. Cultural Barriers: Cultural differences often cause communication problems the same category of words, symbols, phrases, actions mean different things to people of different countries/cultural backgrounds. 8. Technological Barriers: Technology can either facilitate communication or act as a barrier; sometimes it can do both at the same time. These barriers are briefly described as follows: a) Use of technology which is not updated. b) Lack of technological knowledge. c) Technical noise. Overcoming Barriers: The following are the ways of overcoming communication barriers: 1. Maintaining similarity 2. Emphasize description 3. Empathy 4. Working hypothesis 5. Be patient 6. Establish rules 7. Ask questions 8. Respect 9. Be positive 10. Self reflect 3. What are the functions of management? State the principles of management as given by Henry Fayol. Management functions refer as above. Principles of Management:

While Taylor is considered the father of scientific management, Henry Fayol (1841-1925) is considered the father of administrative management theory. He focuses on the development of broad administrative principles applicable to general & higher managerial levels. He started his career as a junior engineer in a coal mining company in France in 1860 and turned to a leading industrial & successful General Manager in 1880. Fayol has evolved 14 basic principles of management, which are proving to be general guide to the management process & management practice. These are as under: 1. Division of work- It refers to the division of work among various individuals in the organization to bring about specialization in every activity. He further says that every work must be divided into small jobs and these jobs must be accomplished by the skilled and trained persons. It is called the canon of Right person in the right job. So that the various functions of management can be effectively carried out by a specialist person, who is mentally and physically able to perform.

2. Authority and responsibility- Authority is the right or power to give orders to the subordinates. Responsibility means the duty which the subordinate is expected to perform by virtue of his position in the organization. If managers have power to give order so they are also responsible for the work of their team. 3. Discipline- If an organization wants to be successful, discipline should be there in the organization. Discipline means to obey the orders of the superiors, having belief in the rules of the organization and norms of performance, respect for agreements, sincere efforts for completing the given job. To maintain discipline there should be good supervisors at all levels, clear and fair agreements between the employees and the employer, and judicious application of penalties.

4. Unity of Direction- Fayol expressed this principle to mean one head and one plan for a group of activities having the same objectives. He also says that, To run an organization successfully, the unity of direction is necessary while for the successful performance of the employees work. Unity of direction is provided for by sound organization of the body corporate. 5. Unity of Command- This principle states that there must be only one superior to a subordinate. That is, an employee or a worker must not have many bosses or superiors. If an employee or subordinate has to work under the influence of many bosses or superiors, then it creates a confusing situation, dilemma and disorder. This also affects overall efficiency, productivity and profit of the organization. In other words, the work of a worker or job of an employee must always be supervised by a single head. Example of Unity of Command Unity of command is explained with the help of following diagrammatic e.g.

In the above example, Correct Unity of Command flows from Manager to Assistant Manager, Assistant Manger to Supervisor, Supervisor to Executive, and finally from executive to workers. According to the Principle of Unity of Command, the organization shall follow a Correct Unity of Command. It must not communicate through Incorrect Unity Of Command as shown in the above diagrammatic example. 6. Subordination of Individual Interest to Organization Interest- The interest of any one employee or group of employees should not take precedence over the interests of the organization as a whole. For the achievement of organizational objectives, both the employees and management should subordinate their interests to the general interests of the concern. 7. Remuneration of Personnel- The employees must be remunerated fully for their services rendered to the organization. The remuneration and methods of payment should be fair and should offer the maximum satisfaction to employees and employer. And, it should be made without any delay. 8. Centralization and Decentralization- There should be one central point in the organization which exercises overall direction and control of all the parts. Centralization means that all most all of the power and decisive roles are to be taken by top management. On the other hand, decentralization refers to the dispersal of authority to the lower levels in the organization. According to Fayol there should be centralization in small units and proper decentralization in big organization. Further, Fayol does not favor centralization or decentralization of authorities but suggests that these should be proper and effective adjustment between centralization and decentralization in order to achieve maximum objectives of the business. The choice between centralization and decentralization be made after taking into consideration the nature of work and the efficiency, experience and decision-making capacity of the executives. 9. Scalar Chain- Scalar chain means the hierarchy of authority from the highest executive to the lowest one for the purpose of communication. the line of authority should run in order of rank from top management to level in the enterprise, there ever this provide to be very time consuming in cases where people reconciled- fined a satisfactory way of dealing with (opposite facts, ideas etc.) in different departments, but of the same level of hierarchy needed to communicate with each other. Fayol solved this problem by introducing Gang Plank, policy where such people could communicate with each other directly but with the permission of their superiors. In such situations the respect for the line of authority must be reconciled with the need for time saving swift action. For example,

Scalar chain

In the above figure, there are two ladders of authority one from A to F and the other from A to P. If E wants to communicate with O under the scalar chain, information will first flow upward from E to A through D, C and B and then downward from A to O through L, M and N. Thus, communication will normally be a time consuming process. In order to allow swift action, E and O should be allowed to exchange information directly by using gang plank. This will help management to follow the scalar chain and at the same time ensure swift action as and when necessary. 10. Order- Here, order means the orderly arrangement of both materials and men. It is necessary to run the production process systematically by which logical and planned system of both materials and men may be established. In this relation, Fayol has propounded two sub-principles: i. Everything must be in a defined place and a defined place for everything; and ii. Every person must be in right job and a right job for every person. In such system, the boss of materials and time may be checked. 11. Equity- Equity means equality of fair treatment. Equity results from a combination of kindness and justice. It requires fair judgement in dealing with human resources. Employees expect management to be equally behave with everybody. The superiors in the organization should be experienced and goodnatured so as to deal with the subordinates in a proper manner. 12. Stability of Tenure of Personnel- In order to motivate workers to do more and better work it is necessary that they should be assured security of job by the management. If they have fear of job insecurity, so their moral will be low, working efficiency will decline and they cannot give more and better work. Because of this organization has to suffer and this will affect the production. 13. Initiative- Fayol said that, the subordinates should be given an opportunity to take initiative & to come out with new plans and thinking the process for executing the plans. Employee gets satisfaction when they are allowed to take initiative. Workers at all levels must be encouraged to think about and execute the organized task in a better way. Workers must be encouraged to make new suggestions or make improvements in the original plans.

14. Esprit de corps- This means union is strength or team spirit. All the employees of the organization are put together as team in order to achieve the objective of the organization. If there is any misunderstanding or difference of opinions or distrust on other employees, the management should take corrective steps to remove them. The management should not follow the policy of divide and rule. 4. Discuss in detail the various features and elements of organizational structure. Organizational Structure: An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. Organizational structure affects organizational action in two big ways. First, it provides the foundation on which standard operating procedures and routines rest. Second, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organizations actions. Features of Organizational Structure: 1. Simplicity: An organizational structure should be basically simple. The concept of simplicity implies that various organizational relations should be kept minimum possible. 2. Flexibility: An organizational structure should be flexible enough so that changes can be incorporated whenever needs arise. 3. Clear Line of Authority: Whatever the form of structure is adopted, there should be clear lines of authority running from top to bottom or in horizontal directions. 4. Principles of Unity of Direction and Command: Principles of unity of direction and unity of command should be followed. 5. Proper Emphasis on Staff: Line functions should be separated from staff functions and adequate emphasis should be placed on important staff activities. 6. Proper Delegation of authority: The concept of ultimate responsibilities can work only when there is proper delegation of authority at various levels of the organization. Delegation of authority refers to authorizing a manager to make certain decision.

Elements of Organizational Structure: Organizational design is engaged when managers develop or change an organization's structure. Organizational Design is a process that involves decisions about the following six key elements: I. Work Specialization Describes the degree to which tasks in an organization are divided into separate jobs. The main idea of this organizational design is that an entire job is not done by one individual. It is broken down into steps, and a different person completes each step. Individual employees specialize in doing part of an activity rather than the entire activity.

II. Departmentalization It is the basis by which jobs are grouped together. For instance every organization has its own specific way of classifying and grouping work activities. There are five common forms of departmentalization: Functional Departmentalization. As shown in the Figure 2-1, it groups jobs by functions performed. It can be used in all kinds of organizations; it depends on the goals each of them wants to achieve. Functional Departmentalization example

Different aspects on this type of departmentalization:

Positive Aspects Negative Aspects

o o

Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations Coordination within functional area In-depth specialization

o o

Poor communication across functional areas Limited view of organizational goals

Product Departmentalization. It groups jobs by product line. Each manager is responsible of an area within the organization depending of his/her specialization Product Departmentalization example

Different aspects on this type of departmentalization:

Positive Aspects Negative Aspects

Allows specialization in

Duplication of functions

o o

particular products and services Managers can become experts in their industry Closer to customers

Limited view of organizational goals

Geographical Departmentalization. It groups jobs on the basis of territory or geography.

Geographical Departmentalization example

Different aspects on this type of departmentalization:

Positive Aspects Negative Aspects

o o

More effective and efficient handling of specific regional issues that arise Serve needs of unique geographic markets better

o o

Duplication of functions Can feel isolated from other organizational areas

Process Departmentalization. It groups on the basis of product or customer flow. Process Departmentalization example

Different aspects on this type of departmentalization:

Positive Aspects Negative Aspects

More efficient flow of work activities

Can only be used with certain types of products

 Customer Departmentalization. It groups jobs on the basis of common customers Customer Departmentalization example

Different aspects on this type of departmentalization:

Positive Aspects Negative Aspects

Customers' needs and problems can be met by specialists

o o

Duplication of functions Limited view of organizational goals

III. Chain of command It is defined as a continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom. There are three important concepts attached to this theory: Authority: Refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it. Responsibility: The obligation to perform any assigned duties. Unity of command: The management principle that each person should report to only one manager. IV. Span of Control It is important to a large degree because it determines the number of levels and managers an organization has. Also, determines the number of employees a manager can efficiently and effectively manage. V. Centralization and Decentralization
More Centralization More Decentralization

Environment is stable Lower-level managers are not as capable or experienced at making decisions as upper-level managers. Lower-level managers do not want to have say in decisions Decisions are significant. Organization is facing a crisis or the risk of company failure. Company is large. Effective implementation of company strategies depends on managers retaining say over what happens.

Environment is complex, uncertain. Lower-level managers are capable and experienced at making decisions. Lower-level managers want a voice in decisions. Decisions are relatively minor. Corporate culture is open to allowing managers to have a say in what happens. Company is geographically dispersed. Effective implementation of company strategies depends on managers having involvement and flexibility to make decisions

VI. Formalization It refers to the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.

5.

Write a short note on the following: a) Differentiate between Management and Administration b) Herzbergs Motivation Theory c) Management as an Art, Science and Profession

Management and Administration.. According to the viewpoint, administration is a top-level function while management is a middle level and lower level function. Administration is a determinative (thinking) function concerned with laying down basic objectives and broad policies of an organization. On the other hand, management is an executive (doing) function involving the direction of human effort towards the realization of such objectives.
According to Theo Haimann, Administration means overall determination of policies, setting of major objectives, the identification of general purposes & laying down of broad programmes & projects. It refers to the activities of higher level. It lays down basic principles of the enterprise. According to Newman, Administration means guidance, leadership & control of the efforts of the group towards some common goals.

Whereas, management involves conceiving, initiating and bringing together the various elements; coordinating, actuating, integrating the diverse organizational components while sustaining the viability of the organization towards some pre-determined goals. In other words, it is an art of getting things done through & with the people in formally organized groups. The difference between Management and Administration can be summarized under 2 categories: 1. Functions 2. Usage / Applicability

On the Basis of Functions: -

Basis
1. Nature

Administration
It is a determination or thinking function. It is concerned with the determination of major objectives and policies.

Management
It is an executive or doing function. It is concerned with the implementation of policies.

2. Scope

3. Level

It is mainly a top-level function. Administrative decisions are influenced mainly by public opinion and other outside forces. Administration decides what is to be done & when it is to be done.

It is largely a middle- and lower- level function. Managerial decisions are influenced mainly by objectives and policies of the organization. Management decides who should as it & how should he do it.

4. Influence

5. Process

6. Direction of human efforts

7. Main functions

It is not directly concerned It is actively concerned with direction of human with direction of human efforts. efforts in the execution of plans. Planning and control are Directing and organizing the main functions are the main functions involved in it. involved in it. Conceptual and human skills. Used largely in government and public sector. Minister, Commander, Commissioner, Registrar, Vice- Chancellor, Governor, etc. Technical and human skills. Used mainly in business organizations. Managing Director, General Manager, Sales Manager, Branch Manager, etc.

8. Skills Required 9. Usage

10. Illustration

The Figure above clearly shows the degree of administration and management performed by the different levels of management.

Herzbergs Two-Factor Theory of Motivation In 1959, Frederick Herzberg, a behavioral scientist proposed a two-factor theory or the motivator-hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of Satisfaction is No satisfaction and the opposite of Dissatisfaction is No Dissatisfaction.

FIGURE: Herzbergs view of satisfaction and dissatisfaction Herzberg classified these job factors into two categoriesa) Hygiene factors- Hygiene factors are those job factors which are essential for existence of motivation at workplace. These do not lead to positive satisfaction for long-term. But if these factors are absent / if these factors are non-existent at workplace, then they lead to dissatisfaction. In other words, hygiene factors are those factors which when adequate/reasonable in a job, pacify the employees and do not make them dissatisfied. These factors are extrinsic to work. Hygiene factors are also called as dissatisfies or maintenance factors as they are required to avoid dissatisfaction. These factors describe the job environment/scenario. The hygiene factors symbolized the physiological needs which the individuals wanted and expected to be fulfilled. Hygiene factors include: Pay - The pay or salary structure should be appropriate and reasonable. It must be equal and competitive to those in the same industry in the same domain. Company Policies and administrative policies - The company policies should not be too rigid. They should be fair and clear. It should include flexible working hours, dress code, breaks, vacation, etc. Fringe benefits - The employees should be offered health care plans (mediclaim), benefits for the family members, employee help programmes, etc. Physical Working conditions - The working conditions should be safe, clean and hygienic. The work equipments should be updated and well-maintained. Status - The employees status within the organization should be familiar and retained. Interpersonal relations - The relationship of the employees with his peers, superiors and subordinates should be appropriate and acceptable. There should be no conflict or humiliation element present. Job Security - The organization must provide job security to the employees. b) Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as motivators. The motivational factors yield positive satisfaction. These factors are inherent to work. These factors motivate the employees for a superior performance. These factors are called satisfiers. These are factors

involved in performing the job. Employees find these factors intrinsically rewarding. The motivators symbolized the psychological needs that were perceived as an additional benefit. Motivational factors include: Recognition - The employees should be praised and recognized for their accomplishments by the managers. Sense of achievement - The employees must have a sense of achievement. This depends on the job. There must be a fruit of some sort in the job. Growth and promotional opportunities - There must be growth and advancement opportunities in an organization to motivate the employees to perform well. Responsibility - The employees must hold themselves responsible for the work. The managers should give them ownership of the work. They should minimize control but retain accountability. Meaningfulness of the work - The work itself should be meaningful, interesting and challenging for the employee to perform and to get motivated. Limitations of Two-Factor Theory The two factor theory is not free from limitations: The two-factor theory overlooks situational variables. Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity. The theorys reliability is uncertain. Analysis has to be made by the raters. The raters may spoil the findings by analyzing same response in different manner. No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the fact that he may hate/object part of his job. The two factor theory is not free from bias as it is based on the natural reaction of employees when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame dissatisfaction on the external factors such as salary structure, company policies and peer relationship. Also, the employees will give credit to themselves for the satisfaction factor at work. The theory ignores blue-collar workers. Despite these limitations, Herzbergs Two-Factor theory is acceptable broadly.

Implications of Two-Factor Theory The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must make sure that the work is stimulating and rewarding so that the employees are motivated to work and perform harder and better. This theory emphasize upon job-enrichment so as to motivate the employees. The job must utilize the employees skills and competencies to the maximum. Focusing on the motivational factors can improve work-quality. Management as an Art and Science: Management is both an art and a science. The above mentioned points clearly reveal that management combines features of both science as well as art. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. It is called an art because managing requires certain skills which are personal possessions of managers. Science provides the knowledge & art deals with the application of knowledge and skills.

A manager to be successful in his profession must acquire the knowledge of science & the art of applying it. Therefore management is a judicious blend of science as well as an art because it proves the principles and the way these principles are applied is a matter of art. Science teaches to know and art teaches to do. E.g. a person cannot become a good singer unless he has knowledge about various ragas & he also applies his personal skill in the art of singing. Same way it is not sufficient for manager to first know the principles but he must also apply them in solving various managerial problems that is why, science and art are not mutually exclusive but they are complementary to each other (like tea and biscuit, bread and butter etc.). The old saying that Manager are Born has been rejected in favor of Managers are Made. It has been aptly remarked that management is the oldest of art and youngest of science. To conclude, we can say that science is the root and art is the fruit. Management as a Profession:Over a large few decades, factors such as growing size of business unit, separation of ownership from management, growing competition etc have led to an increased demand for professionally qualified managers. The task of manager has been quite specialized. As a result of these developments the management has reached a stage where everything is to be managed professionally. A profession may be defined as an occupation that requires specialized knowledge and intensive academic preparations to which entry is regulated by a representative body. The essentials requirements of a profession are: i. ii. iii. iv. v. Specialized body of knowledge. Educational requirements and training. Representative or professional body. Code of conduct for self-regulation. Social status.

6.

Discuss the various types and importance of Decision Making. Decision Making: Decision making is an essential leadership skill. If you can learn how to make timely, well-considered decisions, then you can lead your team to well-deserved success. If, however, you make poor decisions, your time as a leader will be brutally short. Decision making is the study of identifying and choosing alternatives based on the values and preferences of the decision maker. Decision making is the process of sufficiently reducing uncertainty and doubt about alternatives to allow a reasonable choice to be made from among them. Importance of Decision Making: 1. Better Utilization of Resources: Decision making helps to utilize the available resources for achieving the objectives of the organization. The available resources are the 6 Ms, i.e. Men, Money, Materials, Machines, Methods and Markets. The manager has to make correct decisions for all the 6 Ms. this will result in better utilization of these resources. 2. Facing Problems and Challenges: Decision making helps the organization to face and tackle new problems and challenges. Quick and correct decisions help to solve problems and to accept new challenges. 3. Business Growth: Quick and correct decision making results in better utilization of the resources. It helps the organization to face new problems and challenges. It also helps to achieve its objectives. All

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this results in quick business growth. However, wrong, slow or no decisions can result in losses and industrial sickness. Achieving Objectives: Rational decisions help the organization to achieve all its objectives quickly. This is because rational decisions are made after analyzing and evaluating all the alternatives. Increases Efficiency: Rational decisions help to increase efficiency. Efficiency is the relation between returns and cost. If the returns are high and the cost is low, then there is efficiency and vice versa. Rational decisions result in higher returns at low cost. Facilitate Innovation: Rational decisions facilitate innovation. This is because it helps to develop new ideas, new products, new process, etc. This results in innovation. Innovation gives a competitive advantage to the organization. Motivates Employees: Rational decision results in motivation for the employees. This is because the employees are motivated to implement rational decisions. When the rational decisions are implemented the organization makes high profits. Therefore, it can give financial and non-financial benefits to the employees.

TYPES OF DECISIONS: 1. Programmed Decisions: Programmed decisions are routine and repetitive, and the organization typically develops specific ways to handle them. A programmed decision might involve determining how products will be arranged on the shelves of a supermarket. For this kind of routine, repetitive problem, standard arrangement decisions are typically made according to established management guidelines. 2. Non Programmed Decisions: Non programmed decisions are typically one shot decisions that are usually less structured than programmed decision. 3. Irreversible: These decisions are permanent, once taken, they can't be undone. The effects of these decisions are far-reaching and are taken only when all other options have been exhausted. 4. Reversible: Reversible decisions are not final and binding, they can be retracted at any point, and another more fitting decision made. It allows one to acknowledge mistakes and undertake relevant damage control, depending on how the new circumstances play out. 5. Delayed: Such decisions are put on hold until the decision maker thinks that the right time has come. This delay might cause one to miss certain opportunities that may present themselves, especially in the case of businesses, and may lead to losses. However, such decisions are the norm for large bodies like the government, which decide policies that affect the lives of millions of people. The time taken to collect all information required and to organize plans of implementation is crucial to the ultimate wellbeing of the public. 6. Quick Decisions: These decisions enable one to make maximum use of the opportunity available at hand. However, only a very astute personality can take decisions that are both instantaneous and correct. In order to be able to take the right decision within a short span of time, one should also take the longterm results into consideration. 7. Experimental: One of the ways of decision-making is the experimental type, where the final decision cannot be taken until the preliminary results appear and are positive. This approach is used when one is sure of the final destination but is not convinced of the course to be taken. Experimental decisions are

common in fields such as medicine, where the product being tested goes through several phases, and decisions may change with every iteration. 8. Trial and Error: This approach involves trying out a certain course of action. If the result is positive it is followed further, if not, then a fresh course is adopted. Such a trial and error method is continued until the decision-maker finally arrives at a course of action that convinces him of success. This allows a manager to change and adjust his plans until the final commitment is made. 9. Conditional: Conditional decisions allow an individual to keep all his options open. He sticks to one decision as long as the circumstances remain the same. Once the competitor makes a new move, conditional decisions allow a person to take up a different course of action.

7.

Discuss the meaning & definition of management. What is the scope & importance of management?

Management
Management is a universal phenomenon. It is a very popular and widely used term. Management is a purposeful activity. Every organization requires the making of decisions, the coordinating of activities, the handling of people, and the evaluation of performance directed towards group activities. It is something that directs group efforts towards the attainment of certain pre-determined goals. Thus, Management is the brain of an enterprise. A manager keeps himself in touch with the current environment and supplies foresight to the enterprise. He helps in predicting what is going to happen in future which will influence the working of the enterprise. Management involves creating an internal environment: - It is the management which puts into use the various factors of production. Therefore, it is the responsibility of management to create such conditions which are conducive to maximum efforts so that people are able to perform their task efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and salaries, formulation of rules & regulations etc. Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals. Harold Koontz Management is the creation & maintenance of an internal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals. Koontz and O Donnell Scope of management: 1. Functional matter of the management: - The functional matter of the Mgt. includes the entire process of management. i.e. planning, organizing, staffing, directing, and controlling.

2. Departmental areas of management: Production Management: - It deals with plant site, plant layout, work measurement, production planning and control etc. Financial Management: - It includes financial planning, management. of earnings, capital, capitalization, capital structure, management accounting, etc Human Resource Management: - It basically deals with the manpower planning, job analysis, recruitment and selection, orientation, placement, training and development, compensation, promotion, transfer, social security and labor welfare, retirement, industrial relations, etc. Material Management: - It includes inventory control, materials control, purchasing, materials handling, transportation, shipment etc. Marketing Management: - It includes the marketing process, marketing planning, marketing mix, market segmentation, marketing research etc.

3. Management is an inter-disciplinary approach: - For the effective application of the management principles, theories and techniques, a study of commerce, economics, psychology, sociology, etc. is also required. 4. Universality of management principles: - The principles of management have universal application. It is because of the fact that of management, tourism management etc. All this widens the scope of management to a very extent. Objective of Management: The main objectives of management are: 1. Getting Maximum Results with Minimum Efforts The main objective of management is to secure maximum outputs with minimum efforts & resources. Management is basically concerned with thinking & utilizing human, material & financial resources in such a manner that would result in best combination. This combination results in reduction of various costs. 2. Increasing the Efficiency of factors of Production Through proper utilization of various factors of production, their efficiency can be increased to a great extent which can be obtained by reducing spoilage, wastages and breakage of all kinds, this in turn leads to saving of time, effort and money which is essential for the growth & prosperity of the enterprise. 3. Maximum Prosperity for Employer & Employees Management ensures smooth and coordinated functioning of the enterprise. This in turn helps in providing maximum benefits to the employee in the shape of good working condition, suitable wage system, incentive plans on the one hand and higher profits to the employer on the other hand. 4. Human betterment & Social Justice Management serves as a tool for the up liftmen as well as betterment of the society. Through increased productivity & employment, management ensures better standards of living for the society. It provides justice through its uniform policies.

Importance of Management: 1. It helps in Achieving Group Goal It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of organization clearly there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals. 2. Optimum Utilization of Resources Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its maximum there is no under employment of any resources. 3. Reduces Costs It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction. 4. Establishes Sound Organization No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Management fills up various positions with right persons, having right skills, training and qualification. All jobs should be cleared to everyone. 5. Establishes Equilibrium It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization. 6. Essentials for Prosperity of Society Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society.

8.

Explain the decision making process in detail. Introduction: Decision making is a daily activity for any human being. There is no exception about that. When it comes to business organizations, decision making is a habit and a process as well. Effective and successful decisions make profit to the company and unsuccessful ones make losses. Therefore, corporate decision making process is the most critical process in any organization. In the decision making process, we choose one course of action from a few possible alternatives. In the process of decision making, we may use many tools, techniques, and perceptions. In addition, we may make our own private decision or may prefer a collective decision. Usually, decision-

making is hard. Majority of corporate decisions involve some level of dissatisfaction or conflict with another party. Lets have a look at the decision making process in detail. Steps of Decision Making Process: Following are the important steps of the decision making process. Each step maybe supported by different tools and techniques.

1. Identification of the purpose of the decision: In this step, the problem is thoroughly analysed. There are a couple of questions one should ask when it comes to identifying the purpose of the decision. What exactly is the problem? Why the problem should be solved? Who are the affected parties of the problem? Does the problem have a deadline or a specific time-line? 2. Information gathering:

A problem of an organization will have many stakeholders. In addition, there can be dozens of factors involved and affected by the problem. In the process of solving the problem, you will have to gather as much as information related to the factors and stakeholders involved in the problem. For the process of information gathering, tools such as 'Check Sheets' can be effectively used. 3. Principles for judging the alternatives: In this step, the baseline criteria for judging the alternatives should be setup. When it comes to defining the criteria, organizational goals as well as the corporate culture should be taken it to consideration. As an example, profit is one of the main concerns in every decision making process. Companies usually do not make decisions that reduce profits, unless it is an exceptional case. Likewise, baseline principles should be identified related to the problem in hand. 4. Brainstorm and analyze the different choices: For this step, brainstorming to list down all the ideas is the best option. Before the idea generation step, it is vital to understand the causes of the problem and prioritization of causes. For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-Effect diagram helps you to identify all possible causes of the problem and Pareto chart helps you to prioritize and identify the causes with highest affect. Then, you can move on generating all possible solutions (alternatives) for the problem in hand. 5. Evaluation of alternatives: Use your judgment principles and decision-making criteria to evaluate each alternative. In this step, experience, and effectiveness of the judgment principles come into play. You need to compare each alternative for their positives and negatives. 6. Select the best alternative: Once you go through from Step 1 to Step 5, this step is easy. In addition, the selection of the best alternative is an informed decision since you have already followed a methodology to derive and select the best alternative. 7. Execute the decision: Convert your decision into a plan or a sequence of activities. Execute your plan by yourself or with the help of subordinates. 8. Evaluate the results: Evaluate the outcome of your decision. See whether there is anything you should learn and then correct in future decision making. This is one of the best practices that will improve your decision-making skills. Conclusion: When it comes to making decisions, one should always weigh the positive and negative business consequences and should favour the positive outcomes. This avoids the possible losses to the organization and keeps the company running with a sustained growth. Sometimes, avoiding decision-making seems easier; specially, when you get into a lot of confrontation after making the tough decision. But, making the decisions and accepting its consequences is the only way to stay in control of your corporate life and time.

9.

Explain Taylors scientific theory in detail. Scientific Management: The concept of scientific management was introduced by Frederick Winslow Taylor in USA in the beginning of 20th century. Scientific management was concerned essentially with improving the operational efficiency at the shop-floor level. Since Taylor has put the emphasis on solving managerial problems in a scientific way, often, he is called as father of scientific management and his contributions as the principles of scientific management. Taylor joined Midvale steel Company in U.S.A. as a worker and later on became supervisor. During this period, he continued his studies and eventually completed his M.E. (Master of Engineering). Subsequently, he joined Bethlehem Steel Company. At both these places, he carried experiments about how to increase the efficiency of people. Even after his retirement, he continued to develop scientific management. On the basis of his experiments, he published many papers and books and all his contributions were compiled in his book Scientific Management. Taylors contributions can be described in two parts: elements and tools of scientific management and principles of scientific management. Definitions of Scientific ManagementIts cord is the operational study of work, the analysis of work into its simplest element and the systematic improvement of the workers performance of each element. Peter Drucker Scientific management viewed as a process or a method is concerned primarily with the discovery of casual relationship between the efforts expended for a given objective and the results of these efforts with special emphasis upon the discovery of the best method in the light of the available manpower, materials and technology. Elements and Tools of scientific Management: The elements or mechanisms of scientific management as suggested by F.W. Taylor are discussed below:

1. Scientific Task Setting- Taylor felt that the workers restricted their output because of the major reason that there was no standard about a proper days work. Therefore, it is essential to set the standard task which an average worker should do during working hours. Taylor termed it a fair days work. The standard task is to be set by the management scientifically so that it represents the amount of work which a worker, working under standardized conditions in an atmosphere of mutual trust and cooperation, will be able to do during a day. It will prevent them from doing work much below their capacity. 2. Work Study- It implies an organized, objective, systematic, analytical and critical assessment of the efficiency of various operations in an organization. Work study includes the following techniques: a) Method study: This study is conducted to know the best method of doing a particular job. It helps in reducing wastage of distance travelled by materials, and brings improvements in handling, transporting, inspection and storage of raw materials and goods.

b) Motion study: It is the study of the movement of an operator or a machine. Its purpose is to eliminate useless motions and find out the best method of doing a particular job. By motion study, an attempt is made to know whether some elements of a job can be eliminated, combined or their sequence changed to achieve the necessary flow of work. c) Time study or work measurement: Time study is an art of observing and recording the time required for doing an industrial operation. Through time study the precise time required for each element of a mans work is determined. It helps in fixing the standard time required to do a particular job. d) Fatigue study: Fatigue, physical or mental, has an adverse effect on workers health and his efficiency. Fatigue study helps in reducing fatigue among the workers. Fatigue is generally caused by long working hours without rest pause, repetitive operations, excessive specialization and poor working conditions. The purpose of fatigue study is to maintain the operational efficiency of the workers. Difference between Motion and Time Study: Motion study differs from time study in respect of the following: I. Motion study means to watching and recording the movements of operators. Whereas, Time study involves careful measurement of the time required to do the different parts of a given job. Motion study helps to minimize the movements of operators, whereas time study helps to increase the productivity of labour. The purpose of motion study is to determine the best way of doing a jo. But the aim of time study is to determine fair days work. Financial Incentives- Financial incentives can motivate workers to put in their maximum efforts. If provisions exist to earn higher wages by putting in extra effort, workers will be motivated to earn more. Taylor himself applied the concept of differential piece rate system which was highly motivating. According to this scheme, a worker who completes the normal work gets wages at higher rate per piece and one who does not complete gets at lower rate. Taylor has suggested that wages should be based on individual performance and not on the position which he occupies. Further, the wage rate should be fixed on accurate knowledge and not on estimates. Standardization of Tools and Equipments- Taylor, also, strongly advocated the standardization of tools, equipment, cost system and several other items. Efforts should be made to provide standardized working environment and methods of production to be used and to set standards of performance of workers at all levels. Standardized helps to reduce spoilage and wastage of materials, improve quality of work, reduce cost of production and reduce fatigue among the workers. Scientific Selection and Training- The management should design a scientific selection procedure so that right candidate can be selected for the right job. This way, the first step in scientific selection is determining the jobs for which workers are required. Further, the most appropriate qualification, training, experience and the level of efficiency for the requisite post are defined. Thus, the employees are selected according to pre-defined standards. Scientific Task Planning- Taylor emphasized the need for planning work. He advocated that planning function should be separated from the executive function. Workers should not be supposed to choose their own methods and decide what they have to do. The planning department should prepare detailed instructions for the workers as to type, quality and quantity of the products to be produced and determine the time required for completion of various operations. Specialization or Functional Foremanship- Taylor has suggested that specialization must be introduced in a factory and, to introduce specialization, he advocated functional foremanship. According to him, planning must be separated from executing. He suggested four foremen in the planning department, namely, route clerk, and instruction card clerk, time and cost clerk and ship disciplinarian. The four foremen recommended for getting the required performance from the workers include gang boss, speed boss, maintenance boss and inspector.

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Aims & Objectives of Scientific Management: The main objective of the scientific management is to solve the managerial problems with the help of scientific tools. The main objectives are as such: i. To increase the working capacity and performance of the workers; ii. To bring maximum mutual development by using the optimum resources; iii. To generate mental revolution; iv. To decrease the cost; and v. To implement scientific outlook in the areas of management.

10.

What is Time and Motion study in detail. A time and motion study is a business efficiency technique combining the Time Study work of Frederick Winslow Taylor with the Motion Study work of Frank and Lillian Gilbreth (the same couple as is best known through the biographical 1950 film and book Cheaper by the Dozen). It is a major part of scientific management (Taylorism). After its first introduction, time study developed in the direction of establishing standard times, while motion study evolved into a technique for improving work methods. The two techniques became integrated and refined into a widely accepted method applicable to the improvement and upgrading of work systems. This integrated approach to work system improvement is known as methods engineering and it is applied today to industrial as well as service organizations, including banks, schools and hospitals. Time and motion study have to be used together in order to achieve rational and reasonable results. It is particularly important that effort to be applied in motion study to ensure equitable results when time study is used. In fact, much of the difficulty with time study is a result of applying it without a thorough study of the motion pattern of the job. Motion study can be considered the foundation for time study. The time study measures the time required to perform a given task in accordance with a specified method and is valid only so long as the method is continued. Once a new work method is developed, the time study must be changed to agree with the new method. Time Study: Time study is a work measurement technique for recording the times and rates of working for the elements of a specified job carried out under specified conditions and for analyzing data so as to determine the time necessary for carrying out the job at a defined level of performance. Essentials of Time Study

An accurate specification of where the job begins and where it ends, and the method by which it is carried out, including details of material, equipment. A system of recording the observed times taken by workers to do the job while under observation. Procedure of Time Study

Identifying the job to be timed and operations to be timed.

Obtaining an improved procedure from method study department. Select worker for study Collecting the equipment and arrange machinery required to conduct time study and ensure accuracy in recording time Explaining to the worker the improved working procedure and use of tools and fixtures Breaking the job into operations and operations into elements and writing them in a proper format Conducting the observations and recording them on the time study form Rating the performance of the worker

Applications of Time Study

For determining schedules and planning of work For calculation of Standard costs and as an aid in preparing budgets For determining machine effectiveness, the number of machines which one person can operate and also for construction activities.