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QUESTION BANK PRINCIPLES OF MANAGEMENT

UNIT I HISTORICAL DEVELOPMENT
PART A
1. What is management?
Management is the process of giving direction and controlling the various
activities of the people to achieve the objectives of an organisation.
2. Define administration.
The process or activity of running a business, organization, etc.
The people responsible for this, regarded collectively.
3. Distinguish between management & administration.
Sl.no Administration Management
1. It is higher level functions It is lower level functions
2. It refers to the owners of the
organization
It refers to the employees.
3. Administration is concerned
with decision making
Management is concerned with execution
of decision
4. It acts through the management It acts through the organization

4. What is scalar chain?
The instruction and orders should be sent from the top management to the lower
management.
5. What are the roles of management in organisation?
1) Managements help in determination of the objectives of an organisation.
2) Economics and social development takes place through management
6. What is scientific management?
Scientific management is a theory of management that analyses and synthesizes workflow. Its
main objective is to improve economic efficiency, especially in labour productivity. It was
actually one of the earliest attempts of applying science to the engineering of process and
management.
7. What is gang plank?
'gangplank' mechanism (horizontal communication system) to bridge the communication gap
between individuals and departments (see the line joining F and P in Figure).
The gangplank mechanism would thus simplify the process of communication in
organizations.
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8. Write fayols fourteen principles of management.
1) Division of work.
2) Authority and Responsibility.
3) Discipline
4) Unity of command
5) Unity of direction
6) Individual interest to general interest.
7) Remuneration.
8) Centralisation
9) Scalar chain
1 0)Order
1 1) Equality.
1 2) Stability
1 3) Initiative
1 4) Esprit de corps
9. What are the three levels of management?
1) Top-level management.
2) Middle level management
3) Lower level management
10. What is Multinational Corporation?
An enterprise which own or control production or service facilities outside the
country in which they are based.
11. What are the advantages of MNC?
MNC can promote quality product at lower cost.
MNC is paying taxes their operations increase government revenues.
MNC leads to increase in production aggregate employment, exports and
imports of the required inputs.

12. What are the disadvantages of MNC?
MNC discourage competition among their subsiaries.
MNC involvement results in the lack of development of local R&D.


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UNIT II PLANNING
1. Define planning.
Planning is the process of selecting the objectives and determining the course of
action required achieving these objectives.
2. What is a policy?
Policies are general statement or understandings, which provide guidance in
decision making to various managers.
3. Draw the flow of planning steps.

4. Define an objective.
The terms objectives or goals are often used interchangeably.
Objectives are the end results towards which the activities of firm are aimed or
directed.
5. What are the advantages of objectives?
Unified planning.
Defining an organisation.
Direction.
Individual motivation.
Basis for decrntralization.
Basis for control.
Co-ordination.
6. State any four limitations of planning.
Lack of accurate information.
Time and cost.
Inflexibility.
Delay during emergency period.
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7. List the advantages of planning.
It helps in achieving objectives.
Better utilisation of resources.
Economy in operation.
It reduces uncertainity and risk.
It improves competitive strength.
Effective control.
8. What are the factors to be considered while formulating strategies?
Mission and objectives of an organization.
Values, aspirations and prejudices of top level management.
Opportunities and threads of the external environment.
Strength and weakness of the firm in various aspects such as funds,
organization structure, human talent, technology etc.
9. What is forecasting?
Forecasting is the process of estimating the future, based on the analysis of their past
and present behaviour. A forecast tries to define wheat one believers will happn in the
future. Its aim is to provide information for planning and decision making.
10. What is meant by strategy?
Strategy of an organisation is the programmes of action and deployment of
resources to attain its objectives.
11. What is MBO?
MBO is a process whereby, the superior and the subordinate managers of an
enterprise jointly identify its common goals, define each individuals major areas of
responsibility in terms of results expected of him, and use these measures as guides
for operating the unit and assessing the contribution of its members.







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UNIT III ORGANISING
PART A
1. Define organisation.
Organizing is the process of identifying and grouping of activities required to
Attain the objectives, delegating authority, creating responsibility and establishing
Relationships for the people to work effectively.
2. What is division of labour?
It is concerned with dividing the total work into a number of processes, each of which
will be performed by different individuals. The benefit of division of labour is that it
promotes specialisation.
3. Write a note on informal organisation.
Any information that un officially reaches an employee is known as informal
communication.
4. What is meant by organisation structure?
The organisation process involves the following steps,
Determination of activities.
Grouping of activities.
Assignment of duties.
Delegation of authority.
Establishment of structural relationship.
Co-ordination of activities.
5. What is hierarchy?
The organisational hierarchy can also be used to solve the problems pertaining to
coordination.
For example: if there is a conflict between the foreman and the workers, the
production manager may intervene and set thing right.
6. What is matrix organisation?
Matrix organisation is a hybrid organisational form, containing characteristics of both
project and functional structures.
7. What is meant by recruitment?
B.Flippo defined recruitment as The process of searching for prospective employees
and stimulating to apply for jobs in the organisation.

8. What is span of control?
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Span of control tells the ratio between superiors and subordinates. Usually organizations
are having two different types of spans. They are
1. Wide Span
2. Narrow span
9. What is staff authority?
The relationship between a staff manager and the line manager with
whom he works depends in part on the staff duties.
10. What are the limitations of line and staff authority?
Staff authority
Danger of undermining line authority
Lack of staff responsibility
Line authority
It neglects specialists.
It overloads a few key executives
11. Define delegation.
Delegation means assignment work to others and giving them authority to do it
F.G.More.
UNIT IV DIRECTING
PART A
1. What do mean by the term directing?
Directing may be defined as the process of instructing, guiding and inspiring human
factors in the organisation to achieve organization objectives. It is not only issuing
orders and instruction by a superior to his subordinates but also including the process
of guiding and inspiring them to work effectively.

2. Define creativity.
Creativity is defined as the ability to produce new and useful ideas through the
combination of known principles and components in novel and non obvious ways.
Creativity exists throughout the population, largely independent of age, sex, and
education

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3. Mention the techniques of directing.
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Directing is an important managerial function through which the management initiates
actions in the organization.
It is a continuous process and it continues throughout the life of the Organization.
4. What are the advantages of democratic leadership?
_ The subordinates are motivated by participation in decision-making process.
This will increase job satisfaction.
_ Absence of leader does not affect output.
_ Labour absenteeism and turn-over will be minimum.
_ The quality of decision is improved.
5. Define communication.
Communication is passing of information from one person to another person.
6. What is grapevine?
Informal communication is also known as grapevine as it spreads in the manner
the grap plant does.
7. State the need for communication.
_ To establish and spread goals of an enterprise widely.
_ To develop plans for further achievement.
_ To organize human and other resources in the most effective and efficient way.
_ To select, develop and apprise members of the organization
8. Note down the various communication elements.
_ Simple chain
_ Wheel
_ Circular
_ Free flow
_ Inverted V
9. Define motivation.
Scott defines Motivation means a process of stimulating people in action to
accomplish desired goals
10. Write a note on esteem needs.
These arise in view of a persons desire to have his ego satisfied. The satisfaction of
these needs gives a person the feeling that he is above others. It gives a person self-
respect, self-confidence, independence, status, recognition and reputation.





UNIT V CONTROLLING
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PART A
1. What is controlling?
Controlling to the measurement and correction of performance in order to make sure
those enterprise objectives and the plans devised to attain them are accomplished.
2. Write down the steps in controlling.
_ Control process is universal
_ Control is continuous process
_ Control is action based
_ Control is forward looking.
3. What is critical point control?
The points selected for control process is called critical points. The principle of
critical point control is one of the most important control principles states. Effective
control requires attention to those factors critical to evaluating performance against
plans.
4. What is feed forward control?
It is preventive in nature. This control involves evaluation of inputs and taking
corrective action before a particular operation is completed.
5. Compare feedback control and feed forward technique.
Sl.no Feed back Feed forward
1. It measure only output of the
process.
It measures input of the process.
2. It is submissive approach. It is aggressive approach.
3. Less benefit. More benefit.

6. What is budgetary control?
According to J.Batty a system which uses budgets as a means of planning and
Controlling all aspects of producing and or selling commodities and services.
7. Give the meaning of the term zero base budgeting.
Initially the budget is designed from a zero-base. The main element is ZBB is future
objective orientation.
8. Mention few benefits of control system.
It ensures attainment of enterprise objective.
It highlights the quality of plans.
It promotes efficiency.
It facilitates co-ordination.
9. What are the applications of MIS?
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To find out new opportunities.
To provide sales forecasting.
To allocated resources.
To provide effective managerial activities.

10. What is decision support system?
A DSS is a specialized MIS designed to support a managers skill at all stages of
decision making, identifying the problem, choosing the relevant data, and evaluating
the alternative courses of action.