Answer 1, a) –

We all know that every individual is equipped with certain skills,

abilities and strengths. When those individuals are pooled together to
achieve an organizational goal, certain amount management /
supervision becomes essential to channelise the skills and efforts
towards a common goal for extracting the maximum output.
There are five basic functions of management are: planning,
organizing, staffing, leading, and controlling.

• Planning: This step involves mapping out exactly how to

achieve a particular goal. The necessary steps to achieve the
goal are developed into a plan. When the plan is in place, the
manager can follow it to accomplish the goal with an improved
performance.
• Organizing: After a plan is in place, a manager needs to
organize the team and materials according to the plan. Assigning
work and granting authority followed by accountability are
important elements of organizing.
• Staffing: After a manager finalizes / understands his project’s
needs, he may be required to beef up his staffing by recruiting,
selecting, training, and developing employees. A manager in a
large organization often needs to work with the company's
human resources department to accomplish this goal.
• Leading: A manager needs to do more than just plan, organize,
and staff her team to achieve a goal. He must also lead. Leading
involves motivating, communicating, guiding, and encouraging.
• Controlling: After the other elements are in place, a manager's
job is not finished. He needs to continuously check results
against goals and take any corrective actions necessary to make
sure that planned activities remain on track.

All managers at all levels of every organization perform these

functions, but the amount of time a manager spends on each one
depends on both the level of management and the specific
organization.

For all the important functions of management, Coordination is the

very essential functionality which synchronizes the individual efforts
together in order to attain a common goal. This is a pivot functionality
for all these roles which helps to achieve the accomplishment of group
goals. The need for coordination arises because of the following
reasons –

a) Division of labor
b) Interdependence of units
 c) Individual interests Vs organizational interests

Answer 1.(b) –

Fayol was one of the most influential contributors to modern concepts

of management, having proposed that there are five primary functions
of management: (1) planning, (2) organizing, (3) commanding, (4)
coordinating and (5) controlling.

He a French Engineer and a management theorist has been described

as the father of modern operational management theory. He observed
the organizational functioning from manager's point of view. He found
that all activities of the organization could be divided into six groups:

1 Technical (relating to production)

2 Commercial (buying, selling and exchange)
3 Financial (search of capital and its optimum use)
4 Security (protection of property and personnels)
5 Accounting (including statistics)
6 Managerial (planning, organization, command, co-ordination
and control).

Managerial functions at different organizational levels

Two people may serve as managers within the same company but
have very different titles and purposes. Large organizations, in
particular, may break down management into different levels because
so many more people need to be managed. Typical management
levels fall into the following categories:

Top level Managers : Managers at this level ensure that major

performance objectives are established and accomplished. Common
job titles for top managers include chief executive officer (CEO),
chief operating officer (COO), president, and vice president. These
senior managers are considered executives, responsible for the
performance of an organization as a whole or for one of its
significant parts.

Middle level Managers : Middle managers report to top managers

and are in charge of relatively large departments or divisions
consisting of several smaller units. Middle managers develop and
implement action plans consistent with company objectives
 Low level Managers / Supervisors: The initial management job
that most people attain is typically a first-line management
position, such as a team leader or supervisor — a person in charge
of smaller work units composed of hands-on workers. First-line
managers ensure that their work teams or units meet performance
objectives that are inline with the plans of middle and top
management.

Answer 2.(a) –

Modern Management Thought – In present days there are

numerous different views, thoughts, analysis, researches are being
done for defining “What Management Is” and various different opinions
are obtained about the same. The three main approaches to
management are following –

1. The systems approach - The systems approach to

management is based on general system theory – which says that
to understand fully the operation of an entity, the entity must be
viewed as a system. This requires understanding the
interdependence of its parts like subsystems (open and closed
systems etc.).

2. Contingency or Situational approach – The contingency

approach believes that it is impossible to select one way of
managing that works best in all situations. The manager has to
systematically try to identify which technique or approach will be
the best solution for a problem which exists in a particular
circumstance or context.

3. Operational approach – This approach draws together the

concepts, principles, techniques and knowledge & managerial
approaches from other fields and integrates these with science and
theory that is practical.

McKinsey’s 7S framework was created by the consulting company

McKinsey & Co. in the early 1980s. Since then it has been widely used
by practitioners and academics alike in analyzing hundreds of
organizations. The paper explains each of the seven components of the
model and the links between them. It also includes practical guidance
and advice for the students to analyze organizations using this model.
This framework is easily recognizable and easily remembered model in
business since all the seven variables begin with the letter "S":

The seven variables of the framework are following

• Structure
• Strategy
• Systems
• Skills
• Style
• Staff and
• Shared values.

Description of 7 Ss

Strategy: Strategy is the plan of action an organization prepares in

response to, or anticipation of, changes in its external environment to
achieve the company objective.

Structure: The employees in the company and business needs to be

organized in a specific form of shape that is referred to as
organizational structure. Organizations are structured in a variety of
ways, depending on their objectives and culture. eg. Formal structure
and Informal structure.

Systems: Every organization has some systems or internal processes

to support and implement the strategy, run day-to-day affairs and
achieve maximum effectiveness.

Style: All organizations have their own distinct culture and

management style. It includes the dominant values, beliefs and norms
which develop over time and become relatively enduring features of
the organizational life. It also implies the way managers interact with
the employees and the mutual relationships.

Staff: Organizations are made up of humans and it's the people who
make the real difference to the success of the organization’s
performance. The importance of human resources has thus got the
central position in the strategy of the organizations.
Shared Values: All members of the organization share some common
fundamental ideas or guiding concepts around which the business is
built. These values and common goals keep the employees working
towards a common destination as a coherent team and are important
to keep the team spirit alive.

Using the 7S Model to Analyze an Organization

A detailed case study or comprehensive material on the organization

under study is required to analyze it using the 7S model. This is
because the model covers almost all aspects of the business and all
major parts of the organization.

Answer 2.(b) –

Planning – Planning is one of the main important steps in management

which involves selection of missions & objectives and actions to achieve them
within a given timeline successfully. Decision making, budgeting, evaluating
alternatives, resource allocation are few very important steps of planning
process. The types of planning used for various industries are following –

Mission / Purpose - Any manager should have very clear and crisp idea of
the mission or the purpose of the basic function of the task before initiating
the planning process.

Objective / Goals – An objective is an important step in planning which

helps in setting the direction and decides the intermediate steps to be taken
for achieving the final goal and requires decision making and problem solving
skills during the execution of the plan.

Strategies - Strategies are the combination of art and science of

formulating, implementing and evaluating cross-functional decisions which
enables an organization to achieve its long-term objectives. It is the process
of specifying the organization's mission, objectives, policies & plans, often in
terms of projects & programs, which are designed to achieve these objectives
and then allocating resources to implement the policies & plans, projects &
programs.

Policies – Policies can be typically described as set of deliberate plans of

action to guide decisions and achieve rational outcome(s). Policies help in
deciding / settling the issues before they become problem, make it
unnecessary to analyze the same situation every time it comes up and unify
other plans, thus permitting managers to delegate authority and still
maintain control over what their subordinates do.
Procedures – Procedure can be defined as a particular course of action
intended to achieve a result. It lays out the detailed chronological sequences
of the required course of action and also specifies the exact manner in which
certain activities must be accomplished.

Rules – Rules can be defined as the simplest type of plan. These rules are
mostly established by employing trial and error methods done in past while
undertaking a task. Rules can also be defined as the small parts which in
when clubbed together forms procedures for some action or task.

Programs – Programs are the combination of goals, policies, procedures,

rules, staffing, task assignments, steps defining and other elements
necessary to carry out a given course of action and are supported by budgets
approved.

Budgets – Budget generally refers to a list of all planned expenses and

revenues. It is a plan for saving and spending in road to achieve an
objective / goal. Budget can also be defined as is an organizational plan
stated in monetary terms. The main purpose of budgeting is to:

• Provide a forecast of revenues and expenditures and

• Enable the actual financial operation of the business to be
measured against the forecast.

Answer 3.(a) –

Management by Objectives (MBO) is a process in which a manager

and an employee agree upon a set of specific performance goals, or
objectives, and jointly develop a plan in order to reach them. The
objectives must be clear and achievable, and the plan must include a
time frame and evaluation criteria.

MBO is primarily used as a tool for strategic planning, employee

motivation, and performance enhancement. It is intended to improve
communication between employees and management, increase
employee understanding of company goals, focus employee efforts
upon organizational objectives, and provide a concrete link between
pay and performance. An important factor in an MBO system is its
emphasis on the results achieved by employees rather than the
activities performed in their jobs.

Answer 3.(b)

According to me Decisions can be made only when there are

competitive alternatives available for a particular problem. We cannot
make any decision for a problem which has only one solution. So
detailed analysis of the related problem is essential for a decision
making process. Basic steps in the decision making process are
following

• Step 1: Define the problem

• Step 2: Identify available alternative solutions to the problem
• Step 3: Evaluate the identified alternatives
• Step 4: Make the decision
• Step 5: Implement the decision
• Step 6: Evaluate the decision

Step 1: Define the problem

The most significant step in any decision making process is describing

why a decision is called for and identifying the most desired
outcome(s) of the decision making process. Careful attention to
definition in terms of outcomes allows one to clearly state the problem.
This is a critical consideration because how one defines a problem
determines how one defines causes and where one searches for
solutions.

Step 2: Identify available alternative solutions to the problem

There can be a few obvious solutions for the problem available. But for
a decision maker it is important to think beyond the obvious solutions
and explore the alternative solutions as well taking all the limiting
factors into consideration.

Step 3: Evaluate the identified alternatives

While evaluating each alternative, the decision maker should be

looking at the likely pros and cons of each alternative. It is unusual to
find one alternative which has no negative angles and better than all
others. Differences in the "value" of respective alternatives are
typically small, relative and a function of the decision maker's personal
perceptions, biases and prior experiences.

The decision maker should base his decision more on facts rather than
assumptions. The decision maker needs to determine not just what
results each alternative could yield, but how probable it is that those
results will be realized. The more the evaluation is fact-based, the
more confident he/she can be that the expected outcome will occur.

Step 4: Propose or make the decision

When acting alone this is the natural next step after selecting the best
alternative. When the decision maker is working in a team
environment, this is where a proposal is made to the team, complete
with a clear definition of the problem, a clear list of the alternatives
that were considered and a clear rationale for the proposed solution.

Step 5: Implement the decision

While this might seem obvious, it is necessary to make the point that
deciding on the best alternative is not the same as doing something.
The action itself is the first real, tangible step in changing the situation.
It is not enough to think about it or talk about it or even decide to do it.
A decision only counts when it is implemented as it is thought.

Step 6: Evaluate the decision

Every decision is intended to fix a problem. The final test of any

decision is whether or not the problem was fixed. Has the problem
been solved? What were the changes – positive / negative?
Quantification of the changes etc. and analyzing these facts for future
decision reference.

Programmed decisions - Programmed decisions are made in routine,

repetitive, well-structured situations with predetermined decision rules.
These may be based on habit, or established policies, rules and
procedures and stem from prior experience or technical knowledge
about what works or does not work in a given situation. These
decisions are programmed to the extent that they are repetitive and
routine and that a definite approach has been worked out for handling
them. Because the problem is well-structured, the manager does not
have to go to the trouble and expense of working through an involved
decision making process.

Non-programmed decisions - Non-programmed decisions are made

in response to unusual opportunities and threats. These decisions are
unique decisions that require a 'custom made' solution. This is when a
manager is confronted with an ill-structured or novel problem and
there is no 'cut and dried solution'. The creation of a marketing
strategy for a new service represents an example of a non-
programmed decision. IBM Australia's introduction of a personal
computer in the 1980s was unlike any other decision the company had
previously made. Most non-programmed decisions are made by
upper level managers because they have to deal with
unstructured problems which are very critical.

Answer 4.(a) –
Major PRINCIPLES of ORGANIZING:

These principles act as scientific guidelines for organizing the project

considering the various general rules and norms. Organizers cannot
control all the variables affecting a particular project or strategy
undertaken. However, competencies as well as commitment and
personal and professional characteristics can greatly increase the
chances of success. Hopefully, the few principles laid out here, the
results of cumulative practice wisdom, will be useful as is or adapted to
your situation as needed.

The most essential guiding principles of Organizing are mentioned

below

1. Unity of objective – When the Objectives of the organization

are in sync with the personal goals of employees, best
possible results can be expected.
2. Organizational efficiency – One of the major goals of
management is to complete any project incurring minimum
costs and resources.
3. Span of management – This is directly linked with the
maximum number of subordinates a manager can handle
efficiently for their day to day activities while managing the
project / process.
4. Scalar Principle – For effective organizing, it is must to have
designated authorities and the decision maker for various
levels which helps in creating an efficient organization.
5. Delegation by results expected – Authority delegated to
every individual should be adequate to ensure their ability to
accomplish results expected.
6. Absoluteness of responsibility – The responsibility of
subordinates to their superiors for performance is absolute
and superiors cannot escape responsibility for the
organization activities of their subordinates.
7. Parity of authority and responsibility - The amount of
responsibility, authority and also accountability should be
delegated / assigned to the employees according to the
designation they are holding.
8. Unity of command – The reporting of a particular employee
should be specific so that the work related instruction and
also personal grievances can be addressed at correct time
without much problem.
 9. Authority level – The authority at various levels should be
delegated in such a way that for every small decisions the top
most authority should not be disturbed.
10. Functional definition – As much well defined are the
objective/ scope, roles & responsibilities, available resources,
path / results expected easier the controlling the functions
revolving around.
11. Balance – The application of principles must be balanced to
ensure the overall effectiveness of the structure in meeting
the organization’s objectives.
12. Flexibility – While organizing the structure there should be
enough room left for accommodating the unexpected events
and happenings.
13. Leadership Facilitation – The leaders and managers should
be given enough authority to design and maintain an
environment for the optimum performance of themselves and
the team.

Answer 4.(b) –

A matrix organization can be defined as a team approach, usually to

the development of a product or another specific project. The matrix
organization is an attempt to combine the advantages of the pure
functional structure and the product organizational structure. In a
matrix, a team is created from people from different parts of the
company, with different strengths and areas of expertise. Functional
departments are permanent fixtures of the organization and the
products departments and project teams are created as and when the
need arises. A typical matrix organization is a structure with multiple
reporting lines as shown in the following diagram.
In a matrix organization, each project manager reports directly to the
vice president and the general manager. Since each project represents
a potential profit centre, the power and authority used by the project
manager come directly from the general manager.

Information sharing is mandatory in such an organization, and several

people may be required for the same piece of work. However, in
general, the project manager has the total responsibility and
accountability for the success of the project. The functional
departments, on the other hand, have functional responsibility to
maintain technical excellence on the project. Each functional unit is
headed by a department manager whose prime responsibility is to
ensure that a unified technical base is maintained and that all available
information can be exchanged for each project.

But the matrix organizational structure itself can’t solve everything, it

just helps in understanding the scope of the project and defines the
objective of the project more clearly with and also suggest the way to
achieve the same by utilizing the best resources available in the
organization. All the value and success of the matrix lies in the way
people work together to resolve daily conflicts and trade-offs.

Advantages of a matrix organization:

• Better solutions to client' needs – Since the contribution from the

best available resources is obtained
• Better reconciliation of technology requirements
• Better for complex projects
 o Requiring a diverse mix of expertise
• Better integration across functional departments
• More effective departmental communication
• More efficient use of corporate resources

Disadvantages:

• dysfunctional conflicts
• infighting
• stressful
• slow

Answer 6.(a) –

Job Enrichment is the addition to a job of tasks that increase the

amount of employee control or responsibility. In job enrichment, the
attempt is to build in to jobs a higher sense of challenge and
achievement. The accumulation of achievement must lead to the
personal growth accompanied by a sense of responsibility for the
employee. It is a vertical expansion of the job.
We use job enrichment to make work more challenging and rewarding
for the employees to make it easier to retain them.

Job Enlargement is the horizontal expansion of a job. It involves the

addition of tasks at the same level of skill and responsibility. It is done
to keep workers from getting bored.
Small companies may not have as many opportunities for promotions,
so they try to motivate employees through job enlargement.

Answer 6.(b) –
Leadership is influencing people -- by providing purpose, direction, and
motivation -- while operating to accomplish the mission and
improving the organization and
Leadership style is the manner and approach of providing direction,
implementing plans, and motivating people. The three major styles of
leadership are

• Authoritarian or autocratic
• Participative or democratic
• Delegative or Free Reign

Authoritarian (autocratic)

This style is used when leaders tell their employees what they want
done and how they want it accompished, without getting the advice of
their followers. Some of the appropriate conditions to use it is when
you have all the information to solve the problem, you are short on
time, and your employees are well motivated.The authoritarian style
should normally only be used on rare occasions.

Participative (democratic)

This style involves the leader including one or more employees in the
decision making process (determining what to do and how to do it).
However, the leader maintains the final decision making authority.
Using this style is not a sign of weakness, rather it is a sign of strength
that employees will respect. Using this style is of mutual benefit -- it
allows them to become part of the team and allows you to make better
decisions.

Delegative (free reign)

In this style, the leader allows the employees to make the decisions.
However, the leader is still responsible for the decisions that are made.
This is used when employees are responsible and experienced enough
to analyze the situation and determine what needs to be done and how
to do it.

A good leader uses all three styles, depending on what forces are
involved between the followers, the leader, and the situation.

Answer 6.(c) –
Barriers to effective communication reduce the effectiveness of
management as it hinders the information exchange between the
employees. Good Managers should be aware of these hindrances and
work towards removing the following barriers of effective
communication.

Poor Listening Skills – According to me this is the main barrier for

good communication in all walks of life. We tend to misinterpret, skip
important pieces of information, misunderstand the scope and wrongly
convey the message due to the poor listening skill which creates lot of
problems for effective management.

Different status of the sender and the receiver – Tendency to

value the messages from different people with respect to their
hierarchy.

Use of jargon - employees who are "specialists" may fall for the trap
of using specialist language for a non-specialist audience which
becomes difficult to understand and communicate further.

Selective reporting / Filtering - Twisting and filtering facts and

information according to the personal suitability leads to problems in
future.

Conflicts with people in question - where the communicator and

recipient are in conflict; information tends to be ignored or distorted

A few other important barriers for communication are following

- Hiding many important relevant aspects from colleagues / sub-
ordinates -
- Skepticism in decision making and conveying -
- Perceptions, preconceived notions and assumptions -
- Language barrier -
- Time constraints -
- Gender bias and
- Poor timing of conveying the message - etc.
Answer 6.(f) –

Within any organization, there can be two types of structures - Formal

Structure and Informal Structure. Both structures effect the
organization and relationships between the staffs / employees. The
specific differences between the formal and informal structures are
mentioned below.

1. The formal Organization refers to the formal relationships of

authority and subordinates within a company. While the
 informal organization refers to the network of personal and
social relations that is developed spontaneously between people
associated with each other.
2. The primary focus of the formal organization is the position of
the employee/manager holds. While the primary focus of the
informal organization is the employee as an individual person.
3. Power is delegated from the top levels of the management down
to the organization. In an informal organization power is
derived from the membership of the informal groups within the
organization.
4. In formal Organization, each position has rules governing what
can be done or what cannot be done. There are rewards and
penalties for complying with these rules and performing duties
as well. While in an informal organization, the conduct of
individuals within organization is governed by norms that are
social rules of behavior.

Answer 6.(g) –

Bounded Rationality – It’s very difficult to attain complete rationality

in decision making because forecasting and planning have to deal with
lots of uncertainties and unexpected events in future. It’s very difficult
to analyze all the events and alternatives in advance very precisely
and plan accordingly. There is a great chance of missing the targets
and estimations due to many factors. So while planning for a project /
process a decision maker should settle his / her estimations within a
limit which would take help in minimizing the effect of unexpected
events for original targets or estimations. The planning process also
consist a function called Risk Management which helps in reducing the
effects of unforeseen events in future by assessing them and taking
precautions.