PRINCIPLESOFMANAGEMENT

TWO MARKS QUESTION AND

ANSWERS

UNITIHISTORICALDEVELOPMENT
1.WhatisManagement?
Managementistheprocessofgivingdirectionandcontrollingthevarious
activitiesofthepeopletoachievetheobjectivesofanorganisation.
2.DefineManagement.
Accordingtoknootz&Weihrichmanagementistheprocessofdesigningand
maintainingofanenvironmentinwhichindividualsworkingtogetheringroupsefficiently
accomplishedselectedaims.
3. WritesomecharacteristicsofManagement.
1) Managementisacontinuousprocess.
2) Managersusetheresourcesoftheorganisationbothphysicalaswellashuman
toachievethegoals
3) Managementaimsactachievingtheorganisationgoalsbyensuringeffectiveuse
ofresources.
4. Whataretherolesofmanagementinorganisation?
1) Managementshelpindeterminationoftheobjectivesofanorganisation.
2) Economicsandsocialdevelopmenttakesplacethroughmanagement
5. Writeanytwopointsfavourformanagementasascience.
1) Managementprinciplesshouldbeverifiable
2) Reliablebasisforpredictingfuture.
6. Writeanytwopointsfavourformanagementasanart.
1) Managementiscreative.
2) Managementincludestheuseofpracticalknowledgeandpersonalskill.
7. WhatisTimestudy?
Themovementswhichtakesminimumtimeisthebestone.
8.Whatismotionstudy?
Taylorsuggestedthateliminatingwastefulmovementsandperformingonlynecessary
movements.
9. Writefayolsfourteenprinciplesofmanagement.
1) Divisionofwork.
2) AuthorityandResponsibility.
3) Discipline
4) Unityofcommand
5) Unityofdirection

6) Individualinteresttogeneralinterest.
7) Remuneration.

8) Centralisation
9) Scalarchain
10) Order
11) Equality.
12) Stability
13) Initiative
14) Espritdecorps
10.Whatisauthority?
Itisthepowergiventoapersontogetworkfromhissubordinates.
11.Whatisresponsibility?
Itistheamountofworkexpectedofformamanbyhissuperior.
12.Comment:ManagementisbothAscienceandanart.
Managementisasciencebecauseitcontainsgeneralprinciples.Itisalsoanart
becauseitrequirescertainpersonalskillstoachievedesiredresult.
13.Whatiscentralization?
Theorganisationiscentralizedwhenthepowerisconcentratedwithoneperson.
14.Whatisdecentralization?
Ifthepowerisfullydistributedtothesubordinatesoftheorganisation.
15.Whatisscalarchain?
Theinstructionandordersshouldbesentfromthetopmanagementtothelower
management.
16. Whataremanagementlevels?
1) Toplevelmanagement.
2) Middlelevelmanagement
3) Lowerlevelmanagement
17. Writesomeimportantfunctionsoftopmanagement.
1) Toformulategoalsandpoliciesofthecompany.
2) Toformulatebudgets
3) Toappointtopexecutives
18. Writeanytwofunctionsofmiddlelevelmanagement.
1) Totrain,motivateanddevelopsupervisorylevel.
2) Tomonitorandcontroltheoperationsperformance.
19. Whatareessentialskillsneedsforthemanager?

1) Technicalskill.
2) Humanskill
3) Conceptualskill

20. Writethefunctionofmanagement.
1) Planning
2) Organising
3) Staffing
4) Coordinating
5) Controlling
21. Whatissocialresponsibility?
Societyisthepartofthemanagementtoinitiateactionseithertoprotectsocial
interestofthesociety.
22. Listoutthegroupsresponsibilitiesofmanagement.
1) Shareholders
2) Employees
3) Customers
4) Creditors
5) Suppliers
23. Whatisethics?
Allindividualsinbusinessornonbusinessactivitiesareconcernedwithsome
standardizedformofbehaviourareknownasethics.
24. Whatisethicsinmanagement?
1) Businessethicsdealswithmoralityofthebusinessenvironment.
2) Businessethicsrelatetothebehaviourofabusinessmaninasituation.

UNITIIPLANNING
1.Whatisplanning?
Planningistheprocessofselectingtheobjectivesanddeterminingthecourseof
actionrequiredachievingtheseobjectives.
2. Statetheimportantobservationssuggestedaboutplanning.
Planning is outlining a future course of action in order to achieve on
objective.Planningislookingahead.
Planningisgettingreadytodosomethingtomorrow.
Planisatraplaiddowntocapturethefuture.
3. Listoutthefeaturesofplanning.
Planningaprimaryfunction
Planningadynamicprocess
Planning based on objectives and
policiesPlanningaselectiveprocess
Planninganintellectualprocess
Planningisbasedonfacts
4. Classifyvariousplans.
PLANS
STANDINGPLANS
Missionandpurpose

SINGLEUSEPLANS
Programmes

objectives

Budgets

strategies

Schedules

policies

Methods

procedures

Projects

Rules

5.Definemission
Missionmaybedefinedasastatementwhichdefinestherolethatan
organisationplaysinthesociety.
6. Statetheimportantquestionstoanswerbyagoodmission.
1. Whatisourbusiness?
2. Whatshoulditbe?
7. Defineobjectives.
Thetermsobjectivesorgoalsareoftenusedinterchangeably.
Objectivesaretheendresultstowardswhichtheactivitiesoffirmareaimed
ordirected.
8.Whatismeantbystrategies?
Strategyofanorganisationistheprogrammesofactionanddeploymentof
resourcestoattainitsobjectives.
9.Definepolicies.
Policiesaregeneralstatementorunderstandings,whichprovideguidance
indecisionmakingtovariousmanagers.
10.Whatisprocedure?
Aprocedureisachronologicalorderofactionsrequiredtoimplementapolicy
andtoachieveanobjectives.
11. Nameanytwoimportantproceduresinorganisation.
Proceduresforplacingordersformaterialandequipment.
Proceduresforsanctioningdifferenttypesofemployeesleave.
12. Definebudgets.
Abudgetisastatementofexpectedresultsinnumericaltermsandthereforeitmaybe
referredasanumericalprogramme.

13.Givetheflowdiagramofplanningsteps.
IDENTIFICATIONOFOPPORTUNITIES
ESTABLISHMENTOFOBJECTIVES
DEVELOPINGPLANNINGPREMISES
IDENTIFICATIONOFALTERNATIVES

EVALUATIONOFALTERNATIVES

SELECTINGANALTERNATIVES

FORMULATINGDERIVATIVEPLANS

ESTABLISHINGSEQUENCEOF
ACTIVITIES

14. Whataretheadvantagesandlimitationsofplanning?
Advantages
Helpinachievingobjectives;
Betterutilisationofresources;
Economyinoperation;
Improvescompetitivestrength
Limitations.

Lackofaccurateinformation
Timeandcost
Inflexiblity
Delayduringemetgencyperiod

15.Whatisobjective?
Objectivesaretheaims,purposesorgoalsthatanorganizationwantstoachieveover
varyingperiodsoftime.
16. Statethetwoapproachesofobjectives.
i. Topdownapproach.
ii. Bottomupapproach.
17. WhatisMBO?
MBOisaprocesswhereby,thesuperiorandthesubordinatemanagersofanenterprise
jointlyidentifyitscommongoals,defineeachindividualsmajorareasofresponsibilityin
termsofresultsexpectedofhim,andusethesemeasuresasguidesforoperatingtheunitand
assessingthecontributionofitsmembers.
18. MentionthefeaturesofMBO.
i. MBOfocusesattentiononwhatmustbeaccomplishedandnothowto
accomplishtheobjectives.itisagoalorientedratherthanwork
orientedapproach.
ii. MBOtriestocombinethelongrangegoalsoforganisationwithshortrangeof
organisation.
iii. Ahighdegreeofmotivationandsatisfactionisavailabletoemployees
throughMBO.
19. Whatarethemajorkindsofstrategiesandpolicies?
i. Growth.
ii. Finance
iii. Organisation
iv. Personal
v. Productsorservices
vi. Market
20. Classifypolicies.
i. Formulatedpolicies
ii. Apprealedpolicy
iii. Imposedpolicy
iv. Writtenpolicies
v. Impliedpolicies
21. Whatisplanningpremises?
Theassumptionsaboutfuturederivedfromforecastingandusedinplanning
areknownasplanningpremises.

22. Statetheclassificationofplanningpremises.
i. InternalandExternal.
ii. Tangibleandintangible
iii. Controllableanduncontrollable

23. Definedecisionmakingprocess.
Decisionmakingisdefinedastheprocessofchoosingacourseofactionfromamong
alternativestoachieveadesiredgoal.Itisoneofthefunctionsofmanagementandalsoacore
processofplanning.
24. Whatarethetechniquesusefulwhileevaluatingalternatives?
i. QuantitativeandQualitativeanalysis
ii. Marginalanalysis
iii. Costeffectivenessanalysis
25. Classifydecisions.
i. Programmedandnonprogrammeddecisions
ii. Organizationalandpersonaldecisions

UNITIIIORGANISING
1.Defineorganizing.
Organisingistheprocessofidentifyingandgroupingofactivitiesrequiredto
attaintheobjectives,delegatingauthority,creatingresponsibilityandestablishing
relationshipsforthepeopletoworkeffectively.
2. Mentionanyfourcharacteristicsofanorganization.
Commonobjectives
Specialisation or Division of
labourAuthorityofstructure
Groupofpersons
3. Statetheadvantagesoforganization.
Facilitateadministration
Increasestheefficiencyofmanagement
Facilitatesgrowthanddiversification
Ensuresoptimumuseofmanandmaterialresources
4. Listoutthestepsinvolvedinorganizationprocess.
Determinationofactivities
Groupingofactivities
Assignment of Duties
Delegationofauthority
5. Mentionthethreecategoriesofspanofmanagement.
Direct single relationship
Direct group relationships
Crossrelation
6. Whatarethetypesofdepartmentation?
Departmentationbynumbers
Departmentationbytime
DepartmentationbyEnterprisefunction
DepartmentationbyTerritoryorGeography
Departmentationbycustomers
DepartmentationbyEquipmentorprocess
DepartmentationbyProductorservice

7.Giveanotedepartmentationbycustomers.
Thistypeofdepartmentationispreferredwhentheneedsofcustomersare
differentinnature.Somebigorganisationisprovidingspecialservicestodifferent
ofcustomer.
8.Defineauthority.
Authorityistherighttogiveordersandthepowertoexactobedience.
9. Listoutthesourcesofauthority.
Formalauthoritytheory
Acceptanceauthoritytheory
Competencetheory
10. Whatislineauthority?
Lineauthorityisthedirectauthoritywhichasuperiorexercisesovera
numberofsubordinatestocarryoutordersandinstructions.Inorganisation
process,authorityisdelegatedtotheindividualstoperformtheactivities.
11.Whatisstaffauthority?
Therelationshipbetweenastaffmanagerandthelinemanagerwith
whomheworksdependsinpartonthestaffduties.
12. Listthestepsinvolvedinprocessofdelegation.
Determinationofresultexpected
Assignmentofduties
Delegationofauthority
Creationofobligationoraccountability
13. Whatarethestepstobefollowedinmakingstaffworkseffective?
Understandingauthorityrelationship
Makinglinelistentostaff
Keepingstaffinformed
Requiringcompletedstaffwork
Makingstaffworkawayoforganisationallife
14. Statethekindsoforganizationalcharts.
Verticalchart
Horizontalchartorlefttorightchart
Circularchartorconcentricchart
15. Definestaffing.
Staffingisthepartofthemanagementprocesswhichisconcernedwiththe
procurement utilization, maintenance and development of a large satisfied work
forceontheorganisation.

16. Writeanytworolesofstaffing.
Effective utilization of skills and potential of the work
forceDevelopmentandmaintenanceofqualityofworklife

17. Whatisjobanalysis?
Jobanalysisisadetailedstudyofajobtoidentifytheskills,experience
andaptituderequiredforthejob.
18.Whatisjobdesign?
Thejobdesignisusuallybroadenoughtoaccommodatepeoples
needanddesires.
19.Whatisjobrotation?
Jobrotationrefersinthemovementofanemployeefromthejobtoanother
.
20.Definerecruitment.
B.Flippodefinedrecruitmentastheprocessofsearchingfor
prospectiveemployeesandsimulatingtoapplyforjobsintheorganisation.
21.Whatisselection?
Selectionistheprocessoffindingoutthemostsuitablecandidatetothejob
outofthecandidatesattracted.
22. Writedownthetestsusedinselectionprocess.
Aptitudetest
Intelligencetest
Psychomotor test
Personalitytest
23. Whatisorientation?
Orientationreferstotheactivitiesinvolvedinintroducingthenewemployees
totheorganisationanditspolicies,procedures,rules,andregulations.
24.Whatisperformanceappraisal?
Performanceappraisalevaluatestheperformanceofworkeralsohispotential
fordevelopment.
25. Whatarerolesofmanager?
Interpersonalrole
Informationrole
Decisionalrole

UNITIVDIRECTING
1.Definemultiplicityofroles.
Individualsnotonlytheproductivefactorinmanagementsplans.They
aremembersofsocialsystemofmanyorganizations.
2. Mentiontheimportanceofmotivation.
Properutilizationofhumanresourcespossiblesinceitinspiresemployeesto
makebestpossibleuseofdifferentfactorsofproduction.
Propermotivationimprovestheefficiencyofoperation.
Motivationcreates awillingnessonthepartofworkerstodotheworkina
betterway.
3. Namethestepsinvolvedinmotivationprocess.
Analysisofsituation
Preparing, selecting and applying a set of appropriate motivating
tools.Followup.
4. Whatarethetypesofmotivation?
Positive motivation
Negative motivation
Extrinsic motivation
Intrinsicmotivation
5. Listoutthebasicneedsinahierarchy.
Physiologicalneeds
Safetyneeds
Socialneeds
Esteemneeds
Selfactualisationneeds
6. Whatisjobenrichment?
Jobenrichmentisthereforebasedontheassumptionthatinordertomotivate
personnel,thejobitselfmustprovideopportunitiesforachievement,recognition,
responsibility,advancementandgrowth.
7.Whoisleader?
Leaderisonewhomakeshissubordinatestodowillinglywhathewants.
8.Defineleadership.

Leadershipistheprocessofinfluencingthebehaviourofotherstowards
theaccomplishmentofgoalsinagivensituation.

9.Whatiscommunication?
Communicationispassingofinformationfromonepersontoanotherperson.
10. Statetheneedforcommunication.
To establish and spread goals of an enterprise
widely.Todevelopplansforfurtherachievement.
Toorganize humanandotherresourcesinthemosteffective andefficient
way.Toselect,developandapprisemembersoftheorganisation.
11. Listthedifferenttypesofcommunicationflow.
Downwardcommunication
Upwardcommunication
Horizontalorlateralcommunication
12. Notedownthevariouscommunicatingnetworks.
Simplechain
Wheel
Circular
Freeflow
InvertedV
13. Statetheadvantagesofdemocraticleadership.
Thesubordinatesaremotivatedbyparticipationindecisionmakingprocess.
Thiswillincreasejobsatisfaction.
Absenceofleaderdoesnotaffectoutput.
Labourabsenteeismandturnoverwillbeminimum.
Thequalityofdecisionisimproved.
14. Whatarethebarriersinvolvedineffectivecommunication?
Physicalbarriers
Sociopsychological or personal
barriers.Organisationalbarriers.
Semanticbarriers.
Mechanicalbarriers.
15. Listouttheeffectivemediaincommunication.
Alargebanksupplieshardwareandsoftwaretoitscustomers.
Severalbanksnowmakebankbyphoneservicesavailableeven
toindividuals.
Emailservicemakingeasydeliveryofdocuments.
16. WhataretheimportantassumptionsmadeinXtheory?
Theaveragehumandislikestowork.Hewillavoidworkifitispossible.

Thereforepeoplemustbecontrolled,directedandthreatenedwithpunishment

tomakethemwork.
17. Mentionthevariousfactorsinvolvedinusingmotivationaltechniques.
Money
Participation
Qualityofworkinglife
18. Mentiontheimportantofleadership.
Motivatingemployees
Leaderdevelopsteamwork
Buildingmorale
Maintainingdiscipline
19. Namethevariousleadershipstyles.
Autocraticordictatorialleadership.
Participativeordemocraticleadership.
Laissezfaireorfreereinleadership.
20. WhatisLaissezfaire?
Completefreedomisgiventothesubordinatessothattheyplan,motivate,
control,andotherwiseberesponsiblefortheirownactions.

UNITVCONTROLLING
1.Definecontrol.
AccordingtoKoontzControllingtothemeasurementandcorrectionof
performanceinordertomakesurethatenterpriseobjectivesandtheplansdevisedtoattain
themareaccomplished.
2. Whatarethecharacteristicsofcontrol?
Controlprocessisuniversal
Controliscontinuousprocess
Controlisactionbased
Controlisforwardlooking.
3. Whatarethedisadvantagesofcontrol?
Controlisexpensiveandtimeconsumingprocess.
Humanbehaviourandemployeemoralealsocannotbemeasured.
4. Givesomecriticalpointstandardsofcontrol?
Coststandards
Revenue standards
Goalsstandards
Programstandards.
5. Whatarethetypesofcontrol?
Feedbackcontrol
Concurrentcontrol
Feedforwardcontrol
6. Whatisfeedbackcontrol?
Feedbackcontrolistheprocessofadjustingfutureactiononbasisofinformation
aboutpastperformance.
7. Whataretherequirementsforeffectivecontrol?
The control should be
economicalItmustbesimple
Itshouldbeflexible
Itshouldbeclearobjectives
8. Whatarethemoderntechniquesofcontrol?
Managementaudit
Returnoninvestment
PERTandCPM

9.Definebudgetarycontrol?
AccordingtoJ.Battyasystemwhichusesbudgetsasameansofplanning
andcontrollingallaspectsofproducingandorsellingcommoditiesandservices.
10.Definebudget?
AccordingtoJ.FredMestonabudgetistheexpressionofafirmsplan
isfinancialformforaperiodoftimeintothefuture.
11. WhatarethelimitationsofBudgeting?
Inaccuracy
Expenditure
Distortionofgoals
12. WhatisZeroBaseBudgets?
InitiallythebudgetisdesignedfromaZerobasethemainelementisZBBis
futureobjectiveorientation.
13. WhatarethestepsinvolvesinZBB?
Decisionpackage
Ranking
Allocationofresources
14. WhatisInternalAudit?
Internalauditisdonebyaninternalauditorwhoisanemployeeoftheorganisation.
Heexaminestheobjectives,policies,plans,proceduresandperformanceofthemanagement.
15.DefineMIS
Asystemofobtainingabstracting,storingandanalysingdatatoproductionsinformation
foruseinplanning,controllinganddecisionmakingbymanagersatthetimetheycanmost
effectivelyuseit
16. WhatareMISResources?
Toprovidetheinformationuptodate
Totakeeffectivedecisionmaking
Toprovidetherightinformationavailableintherightformattherighttime
17. DefineProductivity
Productivityisameasureofhowmuchinputisrequiredtoproduceagivenoutputthe
ratioiscalledproductivity.
18. Whatarethefactorsaffectingproductivity?
Technology
Humanresources
Governmentpolicy

Machineryandequipment
Skilloftheworker

19.WhatisOR?
ORisanapplieddecisiontheory,whichusesscientific,mathematicalandlogical
meanstotakedecisions.
20.DefineMultinationalCorporations.
Anenterprisewhichownorcontrolproductionorservicefacilitiesoutsidethe
countryinwhichtheyarebased.
21. WritesomeadvantagesofMNC.
MNCcanpromotequalityproductatlowercost.
MNC leads to increase in production aggregate employment, exports
andimportsoftherequiredinputs.
MNCispayingtaxestheiroperationsincreasegovernmentrevenues.
22. Whatareglobaltheoryofmanagement?
Situationalandcontingencyapproach.
Motivationandleadershiptheory.
Organisationalbehaviour.
23. WritesomecharacteristicsofJapanesemanagement.
Japanese management prefer to human resources than it
financialresources.
Japanesemanagementfavoursjobsecurity.
Japanesearemorefavourtocooperationandteamwork.
Japanesemanagementencouragethelowerlevelemployeesparticipation.
24. WritesomelimitationsofJapanesemanagement.
Decisionmakingprocessistimeconsumingprocess.
Promotionpolicyisnotencourageoutstandingyoungeremployee.
25. WritesomecharacteristicsofGermanmanagement.
German managementisautocratic.
Laboursuggestionsalsoaccepted.
Managerialdecisionsaretakenbytheexecutivecommitteeconsultation
withlabourdirection.