Dibrugarh University B. Com 3rd Sem Solved Question Papers
3 SEM TDC MP&A (CBSC) C 307
2020 (Held
in April – May, 2021)
(Management Principles and Application MPA Solved Papers)
Full Marks: 80
Pass Marks: 32
Time:
3 hours
The figures in the margin indicate full marks for the questions
1. (a) State whether the following statements are True or False: 1×4=4
(i) Decentralization means delegation of
authority to lower level managers.
Ans: True
(ii) Flat organizational structure promotes
innovative abilities of the lower level management.
Ans: False, middle level management
(iii) Physiological needs included the basic
needs for human to survive.
Ans: True
(iv) Path-goal theory was developed by James
MacGregor Burns.
Ans: False, Robert J. House
(b) Fill in the
blanks with appropriate words: 1×4=4
(i) The span of management is also called as
the Span of control
(ii) Delegation of authority may be specific
or general.
(iii) Staffing promotes optimum utilization of
human resources.
(iv) Emotional stability is a quality of a Leadership.
2. Write
short notes on any three of the
following: 4×3=12
a) Scientific management.
Ans: Scientific Management may be defined as the
scientific study and analysis of work, scientific selection and training of
employees, standardization and scientific rate setting. It is an art of knowing
exactly what a manager wants his workers to do and seeing it that they do it in
the best and cheapest way.
According to F.W.Taylor who is
regarded as the father of scientific management, “Scientific Management is the
art of knowing exactly what you want your men to do and seeing that they do it
in the cheapest way”.
Scientific management has the
following main objectives:
a)
With the use of standardized tools,
methods, equipments, and development of workers increasing the rate of
production.
b)
Reducing the cost of production by
using the different cost control techniques.
c)
Improvement in the quality of product
through quality control and inspections.
d)
To place the right person at the right
place.
e)
Providing the wages to the workers
according to their efficiency.
Characteristics of Scientific
Management
a)
Predetermined
objectives: The objective of every job is predetermined and in order to achieve
that objective physical and human resources are applied.
b)
Predetermined
plans: In order to achieve the predetermined goal of every job, effective plans
for the most appropriate use of the available resources are prepared. Planning
in this case is goal oriented.
c)
Scientific
analysis of plans: The utility, effectiveness and suitability of plans is
tested and ascertained before it is put in practical operation.
b) Management Information System (MIS).
Ans: Management Information System (MIS): In order to control the organisation properly
the management needs accurate information. They need information about the
internal working of the organisation and also about the external environment.
Information is collected continuously to identify problems and find out
solutions. MIS collects
data, processes it and provides it to the managers. MIS may be manual or
computerised. With MIS, managers can delegate authority to
subordinates without losing control.
Advantages of MIS are:
a) It provides accurate information to
all the managers working at different levels.
b) It helps in planning, controlling
and decision-making.
c) It provides cost effective
management information.
d) It improves quality of information
with which a manager works.
e) It reduces information overload
i.e., only relevant information is provided to them.
c) Decentralization.
Ans: Decentralisation: It refers
to the situation in which a significant number of job activity and a maximum
amount of authority are delegated to subordinates. It signifies the necessity
of dividing the managerial task to the lowest level of managers, with an intention
to grant all the authority to make the particular division or department autonomous. Each department has the full authority
to decide on all matters concerning the department except those matters which
need to be left to the top management to decide.
Centralization and decentralization
should not be confused with location of work. An organisation having branches
in different places may be centralized. Similarly, an enterprise may be
decentralized even though all its offices are located in one building. Here we
will discuss the definitions of decentralization.
According to Koontz and Weihrich,”
Decentralization is the tendency to disperse decision-making authority in an
organized structure”.
According to Newman, Summer & Warren “Decentralization
is simply a matter of dividing up the managerial work and assigning specific duties to the various executive skills.”
ADVANTAGES
OF CENTRALIZATION
a) Specialization
management: The higher the specialization of jobs, the greater the need for
centralization. Tall hierarchical organizations with functional departments are
best managed through centralization.
b) Complexity
management: Specialization of jobs creates complexity. Narrow spans of
management also create complexity. Centralization provides advantage to manage
complexity. Uniform policies and practices are fostered. Specialists can be
used.
DISADVANTAGES
OF CENTRALIZATION
a) Poor
environmental adaptation: Organizational environment tends to be dynamic,
complex and uncertain. Centralization cannot quickly adapt to the changing
environment.
b) Poor
diversification management: Modern organizations tend to be highly diversified.
They are also geographically dispersed. Centralization is not suitable to
manage diversified and dispersed organizations.
d) Mechanical barriers of communication.
Ans: Mechanical Barriers: Mechanical barriers include
inadequate arrangement for transmission of news, facts and figures. Example
poor office layout and defective procedure and the use of wrong media led to
poor communication.
I. Information overload: Excess of
communication is called information overload. Brevity is the soul of
communication. The receiver cannot comprehend and absorb beyond his mental
capacity. His mind will remain closed for the excess part of the communication.
Therefore one should be brief and to the point.
II. Loss of transmission: When
messages are transmitted from person to person they are filtered. In other
words they are diluted and distorted on the way. In oral communication about
30% of the information is lost in each transmission.
Steps to
overcome the barriers of communication
in an organization
In order to remove barriers to communication
an open door communication policy should be prepared and followed by managers
at all levels. The superiors in the organization must
create an atmosphere of
confidence and trust in the organization so that the credibility gap may be
narrowed down. Major efforts in this direction are:
1. Two-way
communication: The
organization’s communication policy should provide for a two-way traffic in
communication upwards and downwards. It brings two minds closer and improves
understanding between the two parties the sender and the receiver. There should
be no communication gap.
2. Strengthening
Communication Network: The
communication network should be strengthened to make communication effective.
For this purpose, the procedure of communication should be simplified, layers
in downward communication should be reduced to the minimum possible.
Decentralization and delegation of authority should be encouraged to make
information communication more efficient.
3. (a) What do you mean by management?
Discuss about the evolution of management thoughts. 2+10=12
Ans: Management - Introduction
Management is the coordination of all
resources through the process of planning, organising, directing, staffing and
controlling in order to attain stated objectives effectively and
efficiently. Effectively means doing the
right task, completing activities and achieving goals and efficiently means to
attain objectives with least amount of resources at a minimum cost. This process starts at the top and
continues in more or less degree at every level of the organisation.
According to Harold Koontz,
“Management is an art of getting things done through others and with formally
organised groups."
According to F.W. Taylor, “Management
is an art of knowing what do you want to do and then seeing that is is done in
the best and cheapest way.”
According to Henry Fayol, “To manage
is to forecast, to plan, to organize, to command to co-ordinate and control.
George R. Terry, “Management is a
distinct process consisting of planning, organising, actuating and controlling
performance to determine and accomplish the objectives by the use of people and
resources,”
Thus management may be defined as a
process including various activities like planning, organising, directing,
controlling co-ordination etc. in order to make optimum use of men machinery,
materials and money by way of preparing plans, policies and purposes, for
achieving organisational goals under healthy internal environment.
Evolution
of management thoughts
The practice of management is as old
as human civilization. The ancient civilizations of Egypt (the great pyramids),
Greece (leadership and war tactics of Alexander the great) and Rome displayed
the marvelous results of good management practices. The origin of management as
a discipline was developed in the late 19th century. Over time, management
thinkers have sought ways to organize and classify the voluminous information
about management that has been collected and disseminated. These attempts at
classification have resulted in the identification of management approaches.
The approaches of management are theoretical frameworks for the study of
management. Each of the approaches of management are based on somewhat
different assumptions about human beings and the organisations for which they
work. The different approaches of management are:
a)
Early management approaches represented by scientific management (Classical
approach or Theories)
b)
Modern management approaches represented by behavioral science movement,
quantitative approach, systems approach and Contingency approach (Neo-classical
approach or theories)
a)
THE CLASSICAL APPROACH: The classical approach is the oldest
formal approach of management thought. Its roots pre-date the twentieth
century. The classical approach of thought generally concerns ways to manage
work and organisations more efficiently. Three areas of study that can be
grouped under the classical approach are scientific management, administrative
management, and bureaucratic management.
(i) Scientific Management: Frederick
Winslow Taylor is known as the father of scientific management. Scientific
management (also called Taylorism or the Taylor system) is a theory of
management that analyzes and synthesizes workflows, with the objective of
improving labor productivity. In other words, Traditional rules of thumb are
replaced by precise procedures developed after careful study of an individual
at work.
(ii) Administrative Management:
Administrative management focuses on the management process and principles of
management. In contrast to scientific management, which deals largely with jobs
and work at the individual level of analysis, administrative management
provides a more general theory of management. Henri Fayol is the major
contributor to this approach of management thought.
(iii) Bureaucratic Management:
Bureaucratic management focuses on the ideal form of organisation. Max Weber
was the major contributor to bureaucratic management. Based on observation,
Weber concluded that many early organisations were inefficiently managed, with
decisions based on personal relationships and loyalty. He proposed that a form
of organisation, called a bureaucracy, characterized by division of labor,
hierarchy, formalized rules, impersonality, and the selection and promotion of
employees based on ability, would lead to more efficient management. Weber also
contended that managers' authority in an organisation should be based not on
tradition or charisma but on the position held by managers in the
organisational hierarchy.
b)
Neo-classical approach: It can be studied under the following
headings:
a) THE BEHAVIORAL Or SITUATIONAL
APPROACH: The behavioral approach of management thought developed, in part,
because of perceived weaknesses in the assumptions of the classical approach.
The classical approach emphasized efficiency, process, and principles. Some
felt that this emphasis disregarded important aspects of organisational life,
particularly as it related to human behavior. Thus, the behavioral approach
focused on trying to understand the factors that affect human behavior at work.
(i) Human Relations: The Hawthorne
Experiments began in 1924 and continued through the early 1930s. A variety of
researchers participated in the studies, including Elton Mayo. One of the major
conclusions of the Hawthorne studies was that workers' attitudes are associated
with productivity. Another was that the workplace is a social system and
informal group influence could exert a powerful effect on individual behavior.
A third was that the style of supervision is an important factor in increasing
workers' job satisfaction.
(ii) Behavioral Science: Behavioral
science and the study of organisational behavior emerged in the 1950s and
1960s. The behavioral science approach was a natural progression of the human
relations movement. It focused on applying conceptual and analytical tools to
the problem of understanding and predicting behavior in the workplace. The
behavioral science approach has contributed to the study of management through
its focus on personality, attitudes, values, motivation, group behavior,
leadership, communication, and conflict, among other issues.
b) THE QUANTITATIVE APPROACH: The
quantitative approach focuses on improving decision making via the application
of quantitative techniques. Its roots can be traced back to scientific
management.
(i) Management Science: Management
science (also called operations research) uses mathematical and statistical
approaches to solve management problems. It developed during World War II as
strategists tried to apply scientific knowledge and methods to the complex
problems of war. Industry began to apply management science after the war. The
advent of the computer made many management science tools and concepts more
practical for industry
(ii) Production And Operations Management:
This approach focuses on the operation and control of the production process
that transforms resources into finished goods and services. It has its roots in
scientific management but became an identifiable area of management study after
World War II. It uses many of the tools of management science. Operations
management emphasizes productivity and quality of both manufacturing and
service organisations. W. Edwards Deming exerted a tremendous influence in
shaping modern ideas about improving productivity and quality. Major areas of
study within operations management include capacity planning, facilities
location, facilities layout, materials requirement planning, scheduling,
purchasing and inventory control, quality control, computer integrated
manufacturing, just-in-time inventory systems, and flexible manufacturing
systems.
c) SYSTEMS APPROACH: The systems
approach focuses on understanding the organisation as an open system that
transforms inputs into outputs. The systems approach began to have a strong
impact on management thought in the 1960s as a way of thinking about managing
techniques that would allow managers to relate different specialties and parts
of the company to one another, as well as to external environmental factors.
The systems approach focuses on the organisation as a whole, its interaction
with the environment, and its need to achieve equilibrium.
d) CONTINGENCY APPROACH: The
contingency approach focuses on applying management principles and processes as
dictated by the unique characteristics of each situation. It emphasizes that
there is no one best way to manage and that it depends on various situational
factors, such as the external environment, technology, organisational
characteristics, characteristics of the manager, and characteristics of the
subordinates. Contingency theorists often implicitly or explicitly criticize
the classical approach for its emphasis on the universality of management
principles; however, most classical writers recognized the need to consider
aspects of the situation when applying management principles.
Or
(b) Define Scientific Management. Discuss about the Taylor’s Scientific
Management. 2+10=12
Ans: Scientific Management may be defined
as the scientific study and analysis of work, scientific selection and training
of employees, standardization and scientific rate setting. It is an art of
knowing exactly what a manager wants his workers to do and seeing it that they
do it in the best and cheapest way.
According to F.W. Taylor who is
regarded as the father of scientific management, “Scientific Management is the
art of knowing exactly what you want your men to do and seeing that they do it
in the cheapest way”.
CONTRIBUTION OF F.W. TAYLOR
F.W. Taylor is one of the founders
(the other two are Max Weber and Henry Fayol) of classical thought/classical
theory of management. He suggested scientific approach to management also called
scientific management theory. Frederick Winslow Taylor well-known as the
founder of scientific management was the first to recognize and emphasis
the need for adopting a scientific approach to the task of managing an enterprise.
He tried to diagnose the causes of low efficiency in industry and came to the
conclusion that much of waste and inefficiency is due to the lack of order
and system in the methods of management. He found that the management
was usually ignorant of the amount of work that could be done by a
worker in a day as also the best method of doing the job. As a result,
it remained largely at the mercy of the workers who deliberately shirked work.
He therefore, suggested that those responsible for management should
adopt a scientific approach in their work, and make use of
"scientific method" for achieving higher efficiency. The scientific
method consists essentially of:
a) Observation
b) Measurement
c) Experimentation
and
d) Inference.
He advocated a thorough planning of
the job by the management and emphasized the necessity of perfect understanding
and co-operation between the management and the workers both for the
enlargement of profits and the use of scientific investigation and knowledge in
industrial work. He summed up his approach in these words:
a) Science,
not rule of thumb
b) Harmony,
not discord
c) Co-operation,
not individualism
d) Maximum
output, in place of restricted output
e) The
development of each man to his greatest efficiency and prosperity.
Concept of Scientific Management
Scientific
Management may be defined as the scientific study and analysis of work,
scientific selection and training of employees, standardization and scientific
rate setting. It is an art of knowing exactly what a manager wants his workers
to do and seeing it that they do it in the best and cheapest way.
According to F.W. Taylor who is
regarded as the father of scientific management, “Scientific Management is the
art of knowing exactly what you want your men to do and seeing that they do it
in the cheapest way”.
Scientific management has the
following main objectives:
f)
With the use of standardized tools,
methods, equipments, and development of workers increasing the rate of
production.
g)
Reducing the cost of production by
using the different cost control techniques.
h)
Improvement in the quality of product
through quality control and inspections.
i)
To place the right person at the right
place.
j)
Providing the wages to the workers
according to their efficiency.
Characteristics of Scientific
Management
d)
Predetermined
objectives: The objective of every job is predetermined and in order to achieve
that objective physical and human resources are applied.
e)
Predetermined
plans: In order to achieve the predetermined goal of every job, effective plans
for the most appropriate use of the available resources are prepared. Planning
in this case is goal oriented.
f)
Scientific
analysis of plans: The utility, effectiveness and suitability of plans is
tested and ascertained before it is put in practical operation.
g)
Set
of rules: In order to implement the plans a set of rules are made.
h)
Work
studies: Standardization of time, motion, fatigue and work is done after
careful time, motion, work & fatigue studies, so that maximum output could
be achieved at minimum sacrifice.
Advantages and criticism of scientific
management to the workers
Advantages
to the workers: Improved working conditions, Higher standard of living, Free
training, Interesting job, Incentive wage system
Criticism
of scientific management: Rigid Control, Monotonous work, Lack of
initiative, Exploitation, Lack of employment opportunities, Weak Unions.
Elements of Scientific Management: The
techniques which Taylor regarded as its essential elements or features may be
classified as under:
1. Scientific Task and Rate-Setting
(work study): Work study may be defined as the systematic, objective and
critical examination of all the factors governing the operational efficiency of
any specified activity in order to effect improvement. Work study includes.
(a) Methods Study: The
management should try to ensure that the plant is laid out in the best manner
and is equipped with the best tools and machinery. The possibilities of
eliminating or combining certain operations may be studied.
(b) Motion Study: It is a study
of the movement, of an operator (or even of a machine) in performing an
operation with the purpose of eliminating useless motions.
(c) Time Study (work measurement): The
basic purpose of time study is to determine the proper time for performing the
operation. Such study may be conducted after the motion study. Both time study
and motion study help in determining the best method of doing a job and the
standard time allowed for it.
(d) Fatigue Study: If, a
standard task is set without providing for measures to eliminate fatigue, it
may either be beyond the workers or the workers may over strain themselves to
attain it. It is necessary, therefore, to regulate the working hours and
provide for rest pauses at scientifically determined intervals.
(e) Rate-setting: Taylor
recommended the differential piece wage system, under which workers performing
the standard task within prescribed time are paid a much higher rate per unit
than inefficient workers who are not able to come up to the standard set.
2. Planning the Task: Having
set the task which an average worker must strive to perform to get wages at the
higher piece-rate, necessary steps have to be taken to plan the production
thoroughly so that there are no bottlenecks and the work goes on
systematically.
3. Selection and Training: Scientific
Management requires a radical change in the methods and procedures of selecting
workers. It is therefore necessary to entrust the task of selection to a
central personnel department. The procedure of selection will also have to be
systematised. Proper attention has also to be devoted to the training of the
workers in the correct methods of work.
4. Standardization: Standardization
may be introduced in respect of the following.
(a) Tools and equipment: By
standardization is meant the process of bringing about uniformity. The management
must select and store standard tools and implements which will be nearly the
best or the best of their kind.
(b) Speed: There is usually an
optimum speed for every machine. If it is exceeded, it is likely to result in
damage to machinery.
(c) Conditions of Work: To
attain standard performance, the maintenance of standard conditions of
ventilation, heating, cooling, humidity, floor space, safety etc., is very
essential.
(d) Materials: The efficiency
of a worker depends on the quality of materials and the method of handling
materials.
5. Specialization: Scientific
management will not be complete without the introduction of specialization.
Under this plan, the two functions of 'planning' and 'doing' are separated in
the organisation of the plant. The `functional foremen' are specialists who
join their heads to give thought to the planning of the performance of
operations in the workshop. Taylor suggested eight functional foremen under his
scheme of functional foremanship.
(a) The Route Clerk: To lay down
the sequence of operations and instruct the workers concerned about it.
(b) The Instruction Card Clerk: To
prepare detailed instructions regarding different aspects of work.
(c) The Time and Cost Clerk: To
send all information relating to their pay to the workers and to secure proper
returns of work from them.
(d) The Shop Disciplinarian: To
deal with cases of breach of discipline and absenteeism.
(e) The Gang Boss: To assemble
and set up tools and machines and to teach the workers to make all their personal
motions in the quickest and best way.
(f) The Speed Boss: To ensure
that machines are run at their best speeds and proper tools are used by the
workers.
(g) The Repair Boss: To ensure
that each worker keeps his machine in good order and maintains cleanliness
around him and his machines.
(h) The Inspector: To show to
the worker how to do the work.
6. Mental Revolution: At
present, industry is divided into two groups – management and labour. The major
problem between these two groups is the division of surplus. The management
wants the maximum possible share of the surplus as profit; the workers want, as
large share in the form of wages. Taylor has in mind the enormous gain that
arises from higher productivity. Such gains can be shared both by the management
and workers in the form of increased profits and increased wages.
4. (a) “Planning is an intellectual
process, the conscious determination of course of action, the basis of
decisions on purpose, facts and considered estimates.” Discuss. 12
Ans: Planning: Planning
is the primary function of management.
Planning concentrates on setting and achieving objectives through
optimum use of available resources.
Planning is necessary for any organisation for its survival growth and
prosperity under competitive and dynamic environment. Planning is a continuous process to keep
organisation as a successful going concern.
In
the words of: Koontz and O’Donnel – “Planning is deciding in
advance, what to do, how to do it, when to do it, and who is to do it. It bridges the gap from where we are to where
we want to go.”
Allen – “Management planning involves
the development of forecasts, objectives, policies programmes, procedures,
schedules and budgets.”
Haynes and Massie - Planning is a
decision making process of a special kind.
It is an intellectual process in which creative thinking and imagination
is essential.”
Alfred and Beatty - “Planning is the
thinking process, the organized foresight, the vision based on fact and
experience that is required for intelligent action.
Planning Process
Planning process involves the setting
up of business objectives and allocation of resources for achieving them.
Planning determines the future course of action for utilizing various resources
in a best possible way. It is a combination of information handling and
decision making systems based on information inputs, outputs and a feedback
loop.
Steps in the process of Planning.
a)
Setting
organisational objectives: The first and foremost step in the
planning process is setting organisational objectives or goals, which specify
what the organisation wants to achieve. For example, an increase in sales by 20% could be
the objective of the organisation. Objectives may also be set for each
individual department. They give direction to all departments.
b)
Developing
planning premises: Planning is concerned with the future, which
is uncertain. Therefore, the manager is required to make certain assumptions
about the future. These assumptions are called premises.
Assumptions are made in the form of forecasts about the demand for a particular
product, government policy, interest rates, tax rates, etc. Therefore, accurate
forecasts become essential for successful plans.
c)
Identifying
alternative courses of action: Once objectives are set and
assumptions are made, then the next step is to identify all possible
alternative courses of action. For example, in order to achieve the
organisational objectives of increasing profit, the alternatives may be
a.
increase the sales of an existing
product, or
b.
produces and sells a completely new
product.
d)
Evaluating
alternative courses: The positive and negative aspects of
each proposal need to be evaluated in the light of the objective to be
achieved, its feasibility and consequences. For example,
the risk-return trade-off is very common. The riskier the investment, the
higher is the possibility of returns. To evaluate such proposals, detailed
calculations of earnings, earnings per share, interest, taxes, dividends are
made.
e)
Selecting
the best possible alternative: This is the real point of decision
making. The best/ideal plan has to be adopted, which must be the most feasible,
profitable and with least negative consequences. The manager must apply
permutations and combinations and select the best possible course of action.
Sometimes, a combination of plans. may be selected instead of one best plan.
f)
Implementing
the plan: Once the plans are developed, they are put
into action. For this, the managers communicate the plans to all employees very
clearly and allocate them resources (money, machinery, etc.
g) Follow-up action:
The managers monitor the plan carefully to ensure that the premises are holding
true in the present condition or not. If not, adjustments are made in the plan.
Or
(b) What do you mean by decision making? Discuss about the various
steps of decision making process.
2+10=12
Ans: Decision Making - Introduction
Decision-making
is an essential aspect of modern management. It is a primary function of
management. A manager's major job is sound/rational decision-making. He takes
hundreds of decisions consciously and subconsciously. Decision-making is the
key part of manager's activities. Decisions are important as they determine
both managerial and organisational actions. A decision may be defined as "a
course of action which is consciously chosen from among a set of alternatives
to achieve a desired result." It represents a well-balanced judgment and a
commitment to action.
It is
rightly said that the first important function of management is to take decisions
on problems and situations. Decision-making pervades all managerial actions. It
is a continuous process. Decision-making is an indispensable component of the
management process itself.
According
to Trewatha & Newport, "Decision-making involves the selection of a
course of action from among two or more possible alternatives in order to
arrive at a solution for a given problem".
Steps Involved in Decision Making
Process
Decision-making
involves a number of steps which need to be taken in a logical manner. This is
treated as a rational or scientific 'decision-making process' which is lengthy
and time consuming. Such lengthy process needs to be followed in order to take
rational/scientific/result oriented decisions. Drucker recommended the
scientific method of decision-making which, according to him, involves the
following six steps:
1.
Identifying the Problem:
Identification of the real problem before a business enterprise is the first
step in the process of decision-making. It is rightly said that a problem
well-defined is a problem half-solved. Information relevant to the problem
should be gathered so that critical analysis of the problem is possible. This
is how the problem can be diagnosed. Clear distinction should be made between
the problem and the symptoms which may cloud the real issue.
2.
Analyzing the Problem: After defining
the problem, the next step in the decision-making process is to analyze the
problem in depth. This is necessary to classify the problem in order to know
who must take the decision and who must be informed about the decision taken.
Here, the following four factors should be kept in mind:
1.
Futurity of the decision,
2.
The scope of its impact,
3.
Number of qualitative considerations
involved, and
4.
Uniqueness of the decision.
3.
Collecting Relevant Data: After
defining the problem and analyzing its nature, the next step is to obtain the
relevant information/ data about it. There is information flood in the business
world due to new developments in the field of information technology. All available
information should be utilised fully for analysis of the problem.
4.
Developing Alternative Solutions:
After the problem has been defined, diagnosed on the basis of relevant
information, the manager has to determine available alternative courses of
action that could be used to solve the problem at hand. Only realistic
alternatives should be considered. It is equally important to take into account
time and cost constraints and psychological barriers that will restrict that
number of alternatives.
5.
Selecting the Best Solution: After
preparing alternative solutions, the next step in the decision-making process
is to select an alternative that seems to be most rational for solving the
problem. The alternative thus selected must be communicated to those who are likely
to be affected by it. Acceptance of the decision by group members is always
desirable and useful for its effective implementation.
6.
Converting Decision into Action: After
the selection of the best decision, the next step is to convert the selected decision
into an effective action. Without such action, the decision will remain merely
a declaration of good intentions. Here, the manager has to convert 'his
decision into 'their decision' through his leadership.
7.
Ensuring Feedback: Feedback is the
last step in the decision-making process. It is like checking the effectiveness
of follow-up measures. Feedback is possible in the form of organised
information, reports and personal observations. Feedback is necessary to decide
whether the decision already taken should be continued or be modified in the
light of changed conditions.
Every
step in the decision-making process is important and needs proper consideration
by managers. This facilitates accurate decision-making.
5. (a) What is delegation of authority?
How delegation of authority is responsible for organizing the activity of
working in organization? 2+10=12
Ans: Answer available in our mobile
application – Members only
Or
(b) What
do you mean by network organization structure? Discuss its benefits and
limitations. 2+10=12
Ans: Answer available in our mobile
application – Members only
6. (a) What is motivation? Explain the
five levels of Maslow’s hierarchy of needs. 2+10=12
Ans: Meaning of Motivation
The word motivation is derived from
‘motive', which means an active form of a desire, craving or need that must be
satisfied. Motivation is the key to organisational effectiveness. The manager
in general has to get the work done through others. These 'others' are human
resources who need to be motivated to attain organisational objectives.
According to George R. Terry,
"Motivation is the desire within an individual that stimulates him or her
to action."
According to
Berelson and Steiner “A motive is an inner state that energizes
activates, or moves and directs or channels behavior goals".
Maslow's
Hierarchy of Needs
Maslow Abraham proposed his theory in
the 1940s. This theory, popularly known as the Hierarchy of Needs assumes that
people are motivated to satisfy five levels of needs: physiological, security,
belongingness, esteem and self-actualization needs.
Maslow suggested that the five levels
of needs are arranged in accordance with their importance, starting from the
bottom of the hierarchy. An individual is motivated first and foremost to
satisfy physiological needs. When these needs are satisfied, he is motivated
and 'moves up' the hierarchy to satisfy security needs. This 'moving up process
continues until the individual reaches the self-actualization level.
a)
Physiological needs: Physiological
needs represent the basic issues of survival such as food, sex, water and air.
In organisational settings, most physiological needs are satisfied by adequate
wages and by the work environment itself, which provides employees with rest
rooms, adequate lighting, comfortable temperatures and ventilation.
b)
Security or safety needs: Security or
safety needs refer to the requirements for a secure physical and emotional
environment. Examples include the desire for adequate housing and clothing, the
need to be free from worry about money and job security and the desire for safe
working conditions. Security needs are satisfied for people in the work place
by job continuity, a grievance resolving system and an adequate insurance and
retirement benefit package.
c)
Social needs: Belonging or social
needs are related to the, social aspect of human life. They include the need
for love and affection and the need to be accepted by one's peers. For most
people these needs are satisfied by a combination of family and community
relationships and friendships on the job. Managers can help ensure the
'satisfaction of these important needs by allowing social interaction and by
making employees feel like part of a team or work group.
d)
Esteem needs: Esteem needs actually
comprise of two different sets of needs:
i.
The need for a positive self-image and
self-respect.
ii.
The need for recognition and respect
from others.
Organisations
can help address esteem needs by providing a variety of external symbols of
accomplishment such as job titles and spacious offices. At a more fundamental
level, organisations can also help satisfy esteem needs by providing employees
with challenging job assignments that can induce a sense of accomplishment.
e)
Self-actualization needs: At the top
of the hierarchy are those needs, which Maslow defines the self-actualization
needs. These needs involve realizing one's potential for continued: growth and
individual development. Since these needs are highly individualized and
personal, self-actualization needs are perhaps the most difficult for managers
to address. Therefore, an employee should try to meet these needs on his own
end.
However,
an organisation can help his employee by creating a climate for fulfillment of
self-actualization needs. For instance, an organisation can help in fulfillment
of these needs by encouraging employee’s participation in decision-making
process and by providing them with an opportunity to learn new things about
their jobs and organisation. This process of contributing to actual
organisational performance helps employees experience personal growth and development
associated with self-actualizing.
Critical
Analysis of Maslow’s Theory
A number of research studies have been
undertaken to see the validity of hierarchy of needs. Lawler and Suttle
collected data on 187 Managers in two different organisations for a period of
six months to one year. No evidence was found to support Maslow's theory. They
found there were two levels of needs-biological and other needs- and that other
needs would emerge only when biological needs were reasonably satisfied. A
survey conducted in India of 200 factory worker revealed that they give top
priority to job security, earnings and personal benefits-all lower other needs.
It is generally seen that needs do not
follow Maslow's hierarchy. The hierarchy is determined by individuals differently.
They proceed to follow their own pattern of needs satisfaction. Some people may
try for self-actuating needs rather than lower needs. For some persons esteem
needs are more important than social needs.
There is no cause effect relation
between and need and behavior. A particular need may cause behavior in
different ways in different person. Similarly, one particular behavior may
result due to different needs. It is said that higher needs motivate a person
when lower needs are reasonably satisfied. The word 'reasonably satisfied' is a
subjective matter. The level of satisfaction may be different for persons.
Or
(b) Define about ‘leader and leadership’. Discuss about the Blake and
Mouton’s managerial grid theory with diagram. 4+8=12
Ans: Answer available in our mobile
application – Members only
7. (a) What is controlling in
management? Discuss about the process of controlling. 4+8=12
Ans: Controlling in Management
Control is one of the managerial
functions. These functions start with planning and end at controlling. The
other functions like organising, staffing, directing act as the connecting like
between planning and controlling. Planning will be successful only if the
progress planning and controlled, Planning involves setting up of goals and objectives
while controlling seeks to ensure.
In the words of Koontz and O'Donnel,
“The measurement and correction of the performance of activities of
subordinates in order to make sure that enterprise objectives and plan devised
to attain them are being accomplished." The accomplishment of
organisational goals is the main aim of every management. The performance of
subordinates should be constantly watched to ensure proper implementation of
plans. Co-ordination is the channel through which goals can be achieved and
necessary.
According to Henry Fayol, “In an
undertaking, control consists in verifying whether everything occurs in
conformity with the plan adopted, the instructions issued and principles
established. It has to point out weakness and errors in order to rectify them
and prevent recurrence”.
Thus, controlling implies determining
and stating specifically what is to be accomplished, then checking performance
against such standards prescribed with a view to supplying the corrective
action required to achieve the planned objectives. The end objective of
controlling is, therefore, to ensure that the people’s effort
in the organisation is
continuously directed towards
the attainment of the predetermined objectives.
Steps in Controlling Process
In order to perform his control
functions, a manager follows three basic steps. First of all, he establishes
the standards of performance to ensure that performance is in accordance with
me plan. After this, the manager will appraise the performance and compare it
with predetermined standards. This step will lead the manager to know whether
the performance has come up to the expected standard or if there is any
deviation. If the standards are not being met, the manager will take corrective
actions, which is the final step in controlling.
1) Establishing
standards: A standard acts as a reference line or basic of comparison of actual
performance. Standards should be set precisely and preferably in quantitative
terms. It should be noted that setting standards is also closely linked with
and is an integral part of the planning process. Different standards of
performance are set up for various operations at the planning stage, which
serve as the basis of any control system. Establishment of standards in terms
of quantity, quality or time is necessary for effective control. Standards
should be accurate, precise, acceptable and workable. Standards should be
flexible, i.e., capable of being changed when the circumstances require so.
2) Measurement
of performance: This step involves measuring of actual performance of various
individuals, groups or units and then comparing it with the standards, which
have already been set up at the planning stage. The quantitative measurement
should be done in cases where standards have been set in quantitative terms. In
other cases, performance should be measured in terms of quantitative factors as
in case of performance of industrial relations manager. Comparison of
performance with standards is comparatively easier when the standards are
expressed in quantitative terms.
3) Comparison:
This is the core of the control process. This phase of control process involves
checking to determine whether the actual performance meets the predetermined or
planned performance. Manager must constantly seek to answer, “How well are we
doing?” When a production supervisor checks the actual output or performance of
his department with the production schedule, he is performing comparison aspect
of control. When-an executive calculates the performance of his subordinates
once in six months or annuity, he is
performing comparison aspect of control. Checking return on in investment is a
comparison phase of control.
4) Taking
corrective action: The final step in the control process is taking corrective
actions so that deviations may not occur again and the objectives of the
organisation are achieved. This will involve taking certain decision by the
management like re-planning or redrawing of goals or standards, assignment of
clarification of duties. It may also necessitate reforming the process of
selection and the training of workers. Thus, control function may require
change in all other managerial functions. If the standards are found to be
defective, they will be modified in the light of the observations.
Or
(b) “Control is the process of bringing about conformity of
performance with planned action.” Discuss.
12
Ans: Control is
one of the managerial functions. These functions start with planning and end at
controlling. The other functions like organising, staffing, directing act as
the connecting like between planning and controlling. Planning will be
successful only if the progress planning and controlled, Planning involves
setting up of goals and objectives while controlling seeks to ensure.
In the words of Koontz and O'Donnel,
“The measurement and correction of the performance of activities of
subordinates in order to make sure that enterprise objectives and plan devised
to attain them are being accomplished." The accomplishment of
organisational goals is the main aim of every management. The performance of
subordinates should be constantly watched to ensure proper implementation of
plans. Co-ordination is the channel through which goals can be achieved and
necessary.
According to Henry Fayol, “In an
undertaking, control consists in verifying whether everything occurs in
conformity with the plan adopted, the instructions issued and principles
established. It has to point out weakness and errors in order to rectify them
and prevent recurrence”.
Thus, controlling implies determining
and stating specifically what is to be accomplished, then checking performance
against such standards prescribed with a view to supplying the corrective
action required to achieve the planned objectives. The end objective of controlling
is, therefore, to ensure that the people’s
effort in the
organisation is continuously directed
towards the attainment of the
predetermined objectives.
Steps
in Controlling Process
In order to perform his control
functions, a manager follows three basic steps. First of all, he establishes
the standards of performance to ensure that performance is in accordance with
me plan. After this, the manager will appraise the performance and compare it
with predetermined standards. This step will lead the manager to know whether
the performance has come up to the expected standard or if there is any
deviation. If the standards are not being met, the manager will take corrective
actions, which is the final step in controlling.
5) Establishing
standards: A standard acts as a reference line or basic of comparison of actual
performance. Standards should be set precisely and preferably in quantitative
terms. It should be noted that setting standards is also closely linked with
and is an integral part of the planning process. Different standards of
performance are set up for various operations at the planning stage, which
serve as the basis of any control system. Establishment of standards in terms
of quantity, quality or time is necessary for effective control. Standards
should be accurate, precise, acceptable and workable. Standards should be
flexible, i.e., capable of being changed when the circumstances require so.
6) Measurement
of performance: This step involves measuring of actual performance of various individuals,
groups or units and then comparing it with the standards, which have already
been set up at the planning stage. The quantitative measurement should be done
in cases where standards have been set in quantitative terms. In other cases,
performance should be measured in terms of quantitative factors as in case of
performance of industrial relations manager. Comparison of performance with
standards is comparatively easier when the standards are expressed in
quantitative terms.
7) Comparison:
This is the core of the control process. This phase of control process involves
checking to determine whether the actual performance meets the predetermined or
planned performance. Manager must constantly seek to answer, “How well are we
doing?” When a production supervisor checks the actual output or performance of
his department with the production schedule, he is performing comparison aspect
of control. When-an executive calculates the performance of his subordinates
once in six months or annuity, he is
performing comparison aspect of control. Checking return on in investment is a
comparison phase of control.
8) Taking
corrective action: The final step in the control process is taking corrective
actions so that deviations may not occur again and the objectives of the
organisation are achieved. This will involve taking certain decision by the
management like re-planning or redrawing of goals or standards, assignment of
clarification of duties. It may also necessitate reforming the process of
selection and the training of workers. Thus, control function may require
change in all other managerial functions. If the standards are found to be
defective, they will be modified in the light of the observations.
***
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