b.com _hons._ fom solved paper

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Section AAns. 1 :- Art and Science both.

Ans. 2 :- A.M.A (American Management Association)Ans. 3 :- 14

Ans.4 :- F.W Taylor

Ans. 5 :- 6



Section B

Que.1 What is Management?

Author Definition:

Management is the accomplishment of results through and with people in formal

organised groups

- Harold Koontz

Management is a multi purpose organ that manages business, managers, workers and

work

- Peter Drucker

To manage is to forecast and to plan, to organise, command, coordinate and control

- Philip Kotler

Art of getting things done through people.

- Mary Parker Follet

Consisting of Planning, Organising, Actuating and controlling, performed to determineand accomplish the objectives by use of people and resources.

-George R. Terry

Explanation of Author definition (in your own words)

Importance Of Mangement

• Effective utilisation of resources• Development of resources

• Incorporates innovation

• Motivates employees•

Expansion of business• Reduces turnover/absenteeism

• Integrating various interest groups

• Brings stability in the society

It helps in Achieving Group Goals – It arranges the factors of production, assembles andorganizes the resources, integrates the resources in effective manner to achieve goals. It

directs group efforts towards achievement of pre-determined goals. By defining objective



of organization clearly there would be no wastage of time, money and effort. Managementconverts disorganized resources of men, machines, money etc. into useful enterprise. These

resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals.

Optimum Utilization of Resources – Management utilizes all the physical & human

resources productively. This leads to efficacy in management. Management providesmaximum utilization of scarce resources by selecting its best possible alternate use inindustry from out of various uses. It makes use of experts, professional and these services

leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its maximum there is no under employment of any

resources.Reduces Costs – It gets maximum results through minimum input by proper planning and

by using minimum input & getting maximum output. Management uses physical, humanand financial resources in such a manner which results in best combination. This helps in

cost reduction.Establishes Sound Organization – No overlapping of efforts (smooth and coordinated

functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it

establishes effective authority & responsibility relationship i.e. who is accountable towhom, who can give instructions to whom, who are superiors & who are subordinates.

Management fills up various positions with right persons, having right skills, training andqualification. All jobs should be cleared to everyone.

Establishes Equilibrium – It enables the organization to survive in changing environment.It keeps in touch with the changing environment. With the change is external environment,

the initial co-ordination of organization must be changed. So it adapts organization tochanging demand of market / changing needs of societies. It is responsible for growth and

survival of organization.Essentials for Prosperity of Society – Efficient management leads to better economical

production which helps in turn to increase the welfare of people. Good management makesa difficult task easier by avoiding wastage of scarce resource. It improves standard of

living. It increases the profit which is beneficial to business and society will get maximumoutput at minimum cost by creating employment opportunities which generate income in

hands. Organization comes with new products and researches beneficial for society.

Explanation of Functions of Management (Planning, Organizing, Directing,

Control, and Staffing)

Que.1 Management is Both art and Science . Explain.Ans.

One of the enduring questions in the field of management is whether it is an art or a

science. Definition of an art as "skill in conducting any human activity" and science as

"any skill or technique that reflects a precise application of facts or a principle." Reflected

in the differences in these definitions is the use of precision in science, in that there is a



particular, prescribed way in which a manager should act. Thus, management as a science

would indicate that in practice, managers use a specific body of information and facts to

guide their behaviors, but that management as an art requires no specific body of

knowledge, only skill. Conversely, those who believe management is an art are likely to

believe that there is no specific way to teach or understand management, and that it is a

skill borne of personality and ability. Those who believe in management as an art are likely

to believe that certain people are more predisposed to be effective managers than are

others, and that some people cannot be taught to be effective managers. That is, even with

an understanding of management research and an education in management, some people

will not be capable of being effective practicing managers.

Similarly A field of science is characterized by:

- Use of objective data collected through observation and experimentation.

- Systematic analysis and synthesis of such data to develop theories and models to

understand reality and predict impact of various actions taken to influence the reality.

- Decisions and actions based on objective data and insights gained from scientific theories

and models.

- Effectiveness of decisions and actions dependent on soundness of theories used and their

appropriate application.

- Scientific knowledge being objective can be easily documented for passing on to others

In contrast, an art is characterized by:

- Lack of explicit and commonly accepted models and theories to guide decisions and

actions.

- Effectiveness of decisions and actions dependent heavily on individual ability and skill. -

-- Decisions may be taken based on personal beliefs, feelings and preferences.

- Effectiveness of decisions and actions dependent heavily on individual ability and skill.

- Many areas of knowledge pertaining to an art cannot be documented for training others.

Comparing the nature of management against above characteristics of science and art, it

becomes clear that management combines characteristics of both art and science.

Though in earlier times, management effectiveness depended heavily on personal insights

and skills of managers, a body of management concepts, models and theories, based on



detailed systematic observation and measurement of real life and experimental data to

guide managers, has developed gradually starting from dawn of 20th century. Scientific

rigor of data analysis and synthesis has been applied to develop many useful management

theories and model. These models range from simple economic order quantity formula,

through statistical quality control techniques, to the highly sophisticated non linear

programming models.

Thus we can see that a practitioner of professional management today relies heavily on

objective data and sound management theories to qualify as a science.

However there are many areas of management that cannot be handled using scientific

method alone. A manager needs to work with many complex problems involving people in

various roles of employee, customer, competitor, business partner, shareholder, and other

stake holders. Behavior of all these groups is still not understood completely by behavior

sciences, and managers are forced to rely on their subjective judgments and skills in many

activities involving them. Also all the data that a manager may like to have may not be

available. Further, managers must rely on personal skills and understanding in dealing with

people. For example, winning over the co-operation of ones juniors, subordinates and peers

will usually require, among other things, skills such as persuasion, negotiation, and

empathy. Such skills are still more of an art rather than a science.

Thus in conclusion we can say that management is an art as well as a science. A person

aspiring to be an effective manager must strive to learn the theoretical aspects of

management. He or she must also develop the many skills of management which are not

completely covered by the scientific approach and continues to remain in the realm of art.



Que.2 Explain the Planning Concept.

"Planning and forecasting arc inextricably, intertwined."

Planning involves defining the organization’s goals, establishing an overall strategy for

achieving these goals, and developing a comprehensive set of plans to integrate and

coordinate organizational work. Planning is in fact the advance decision making bymanagers. Keeping in mind that decision making and decision taking, may it be for presentor for future is always required and is very much a managerial job. Let us first study the

nature process of decision making and its various models and types.Decision making is part of all four managerial functions. In performing these functions,

managers are often called decision makers.

THE DECISION-MAKING PROCESS:

A decision is a choice made from two or more alternatives. The decision-making process isdefined as a set of different steps that begins with identifying a problem and decision

criteria and allocating weights to those criteria; moves to developing, analyzing, andselecting an alternative that can resolve the problem; implements the alternative; and

concludes with evaluating the decision’s effectiveness.Models of decision making can be either descriptive or normative.

1. Descriptive decision-making models attempt to prescribe how managersactually do make decisions.

2. Normative decision-making models attempt to prescribe how managers shouldprocess.

Planning is the process of determining the organization’s goals and objectives and selectinga course of action to accomplish them within the environment inside and outside the

organization.OR

Planning involves selecting missions and objectives and the actions to achieve them.

Reasons for Planning • Helps enterprise succeed

• Provides direction and sense of purpose• Helps manager cope with change

• Contributes to the performance of other managerial functions

• Precedes any other managerial function• Optimum utilizing the resources.

Planning is a process for accomplishing purpose. It is blue print of business growth and a

road map of development. It helps in deciding objectives both in quantitative and

qualitative terms. It is setting of goals on the basis of objectives and keeping in view the

resources.

Essentials of planning 1. Clearly define the target / goal in writing.2. Identify all the main issues which need to be addressed.

3. Review past performance.4. Decide budgetary requirement.

5. Focus on matters of strategic importance.6. What are requirements and how will they be met?

7. What will be the likely length of the plan and its structure?



8. Identify shortcomings in the concept and gaps.9. Strategies for implementation.

10.Review periodically.

Importance of the Planning Process

1.

Makes the objectives clear and specific.2. Uncertainty and change.3. Plans facilitate decision-making.

4. Provides basis of control5. Leads to economy and efficiency

6. Facilitates integration7. Encourages innovation and creativity.

8. Facilitates control9. Improves motivation

10. Improves competitive strength11. Innovation and creativity

12.

Better coordination



Que.2 What is Strategic Planning?

Ans.

Simply put, strategic planning determines where an organization is going over the next yearor more and how it's going to get there. Typically, the process is organization-wide, or

focused on a major function such as a division, department or other major function. (The

descriptions on this page assume that strategic planning is focused on the organization.)

Strategic planning is intended to accomplish three important tasks:

1. To clarify the outcomes that an organization wishes to achieve;

2. To select the broad strategies that will enable the organization to achieve thoseoutcomes;

3. To identify ways to measure progress

In addition, many organizations use the process to affirm their links to important

stakeholders by involving them in the creation of the plan.A strategic plan should not be

confused with a business plan. The former is likely to be a (very) short document whereas abusiness plan is usually a much more substantial and detailed document. A strategic plancan provide the foundation and frame work for a business plan. A strategic plan is not the

same thing as an operational plan. The former should be visionary, conceptual anddirectional in contrast to an operational plan which is likely to be shorter term, tactical,

focused, implementable and measurable. As an example, compare the process of planning avacation (where, when, duration, budget, who goes, how travel are all strategic issues) with

the final preparations (tasks, deadlines, funding, weather, packing, transport and so on areall operational matters).A satisfactory strategic plan must be realistic and attainable so as to

allow managers and entrepreneurs to think strategically and act operationally. A criticalreview of past performance by the owners and management of a business and the

reparation of a plan beyond normal budgetary horizons require a certain attitude of mindand predisposition. Some essential points which should to be observed during the review

and planning process include the following:

1. Relate to the medium term i.e. 2/4 years2. Be undertaken by owners/directors

3. Focus on matters of strategic importance4. Be separated from day-to-day work

5. Be realistic, detached and critical6. Distinguish between cause and effect

7. Be reviewed periodically8. Be written down.



Que. 3 what do you mean by Organization?

Ans.

Organizing: Process of determining the activities to be performed, arranging these

activities to administrative units, as well as assigning managerial authority andresponsibilities to people employed in the organization. Organizations are experimentingwith different approaches to organizational structure and design. Organizational structure

can play an important role in an organization’s success.The process of ORGANIZING—the second management functions—is how an

organization’s structure is created.The nature of organization structure Managers are seeking structural designs that will

best support and allow employees to effectively and efficiently do their work. Organizing isthe process of creating an organization’s structure. Organization structure is the formal

pattern of interactions and coordination designed by management to link the tasks of individuals and groups in achieving organizational goals. An organizational structure is

the formal framework by which job tasks are divided, grouped, and coordinated.1. This formal pattern designed by management is to be distinguished from the

informal pattern of interactions that simply emerges within an organization.2. Organization structure consists primarily of four elements:

a. Job designb. Departmentalization

c. Vertical coordinationd. Horizontal coordination

3. Organization design is the process of developing an organization structure.Organizational design is the process of developing or changing an organization’s structure.

It involves decisions about six key elements: work specialization, departmentalization,chain of command, span of control, centralization/decentralization, and formalization. We

need to take a closer look at each of these structural elements.The organization chart is a line diagram that depicts the broad outlines of an organization’s

structure. While varying in detail from one organization to another, typically organizationcharts show the major positions or departments in the organization, the way positions are

grouped together, reporting relationships for lower to higher levels, official channels forcommunications, and possibly the titles associated with major positions in the organization.

1. The organization chart provides a visual map of the chain of command, theunbroken line of authority that ultimately links each individual with the top

organizational position thorough a managerial position at each successive layer inbetween.2. Nearly all organizations having just a few members have an organization chart.

Responsibility is the obligation or expectation to perform and carry out duties and achievegoals related to a position.

Authority is the right inherent in a managerial position to tell people what to do and to

expect them to do it, right to make decisions and carry out actions to achieve organizationalgoals. While part of a manager’s work may be delegated, the manager remains accountable

for results.



a. Accountability is the requirement of being able to answer for significantdeviations from duties or expected results.

b. The fact that managers remain accountable for delegated work may causethem to resist delegation.

Delegation is assignment of part of manager’s work to others along with responsibility andauthority.1. In addition to issues of accountability, managers may resist delegation for a

number of reasons.a. Managers may fear if subordinates fail. b. Managers may think they lack time to train

subordinates.c. Managers may want to hold on to their power.

d. Managers may enjoy doing the tasks subordinates could do.e. Managers may feel threatened by subordinates.

f. Managers may not know how to delegate.2. Subordinates may resist delegation because of fear of failure or of risk taking.

3. Failure to delegate may have serious negative consequences for a manger’s career.

Importance of Organizing • Focus on, and facilitate the attaining of, objectives.

• Arrangement of positions and jobs within thehierarchy.

• Define responsibilities and line of authority ofall levels.

• Creating relationships that will minimize friction.

Basic elements of formal organizations

• Centralization and decentralization.

• Delegation of authority.

• Span of control (supervision).

• Division of service.

• Departmentation.



Que. 3 What is Informal Organization?

Ans.

The informal organization is the interlocking social structure that governs how people work together in practice. It is the aggregate of behaviors, interactions, norms, personal and

professional connections through which work gets done and relationships are built amongpeople who share a common organizational affiliation or cluster of affiliations. It consists

of a dynamic set of personal relationships, social networks, communities of commoninterest, and emotional sources of motivation. The informal organization evolves

organically and spontaneously in response to changes in the work environment. Tendedeffectively, the informal organization complements the more explicit structures, plans, and

processes of the formal organization: it can accelerate and enhance responses tounanticipated events, foster innovation, enable people to solve problems that require

collaboration across boundaries, and create footpaths showing where the formal

organization may someday need to pave a way.

Key characteristics of the informal organization:

1. Evolving constantly

2. Dynamic and responsive

3. Requires insider knowledge to be seen4. Treats people as individuals

5. Cohered by trust and reciprocity6. Difficult to pin down

7. Essential for situations that change quickly or are not yet fully understood.

Functions of informal organizations:-

1. Perpetuate the cultural and social values

2. Provide social status and satisfaction.

3. Promote communication among members4. Provide social control

Disadvantages of informal groups:- Informal organizations also possess the following

potential disadvantages and problems that require astute and careful management attention.

1. Resistance to change.

2. Role conflict.3. Rumor

4. Conformity



Benefits of the informal organization:-Informal organizations create unique challenges and

potential problems for management, they also provide a number of benefits for the formal

organization.

1.

Blend with formal system2. Lighten management workload3. Fill gaps in management abilities

4. Encourage improved management practice5. Understanding and Dealing with the Environmental Crisis



Que. 4 Explain in brief the Importance of Direction.

Ans.

Directing is:-

• Building an effective work climate

• Creating opportunity for motivation, supervising, scheduling, and disciplining.

• Directing is said to be the heart of management process.

• Planning, organizing, staffing have got no importance if direction function does nottake place.

• Directing initiates action.

• Providing guidance to workers

He that cannot obey cannot command.

~Benjamin Franklin

“Directing consists of process or technique by which instruction can be issued andoperations can be carried out as originally planned”

Therefore, Directing is the function of guiding, inspiring, overseeing and instructing

people towards accomplishment of organizational goals.

Principles 1. Communication.

2. Objective.3. Motivation.

4. Follow up.

5.

Leadership.6. Contribution.7. Relation.

8. Command.

IMPORTANCE 1. It Initiates Action.2. Means of Motivation.

3. It Provides Stability.4. Coping up with the changes.

5. Efficient Utilization of Resources.6. Facilitates Change. (Explanation required)



Que. 4 Explain the nature of Directing.

Ans.

Directing is • Building an effective work climate


• Directing is said to be the heart of management process.

• Planning, organizing, staffing have got no importance if direction function does nottake place.




~Benjamin Franklin




CHARACTERISTICS: 1. Pervasive Function - Directing is required at all levels of organization. Every

manager provides guidance and inspiration to his subordinates.

2.

Continuous Activity - Direction is a continuous activity as it continuousthroughout the life of organization.3. Human Factor - Directing function is related to subordinates and therefore it is

related to human factor. Since human factor is complex and behavior isunpredictable, direction function becomes important.

4. Creative Activity - Direction function helps in converting plans into performance.Without this function, people become inactive and physical resources are

meaningless.5. Executive Function - Direction function is carried out by all managers and

executives at all levels throughout the working of an enterprise, a subordinatereceives instructions from his superior only.

6. Delegate Function - Direction is supposed to be a function dealing with humanbeings. Human behavior is unpredictable by nature and conditioning the people’s

behavior towards the goals of the enterprise is what the executive does in thisfunction. Therefore, it is termed as having delicacy in it to tackle human behavior.



Que. 5 What is Managerial Control Process?

Ans.

“Control is a process that measures current performance and guides it towards some

predetermined goals.” ~Massie“It is taking steps to bring actual results and desired results closer together.” ~Philip Kotler

“It is Monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations.” ~ Robbins and Coulter

Regardless of the thoroughness of the planning done, a program or decision still may bepoorly or improperly implemented without a satisfactory control system in place.

Controlling is that process of regulating organizational activities so that actual performanceconforms to expected organizational goals and standards. While interrelated with all of the

other management functions, a special relationship exists between the planning function of management and controlling. Planning, essentially, is the deciding of goals and objectives

and the means of reaching them. Controlling lets manager tell if the organization is on track for goal achievement, and if not, why not. A well-developed plan should provide

benchmarks that can be used in the control process. Controls serve other important rolesincluding helping managers cope with uncertainty, detecting

irregularities, identifying opportunities, handling complex situations, and decentralizingauthority. Like planning, controlling responsibilities differ by managerial level with control

responsibilities paralleling planning responsibilities at the strategic, tactical, andoperational level. There are several major steps usually identified in the basic control

process. These are, in order, determining the areas to be controlled, establishing theappropriate standards, measuring performance, comparing the performance against

standards, recognizing performance if standards are met or exceeded or take correctiveactions as necessary if not, and adjusting either/or standards and measures as necessary. Of

course it would be impossible to control all activity in an organization. Consequently, it isimportant for the manager to decide which activities should have the control process

applied. Argues that managers need to consider controls mainly in areas in which theydepend on others for resources necessary to reach organizational goals. Four conditions

help delineate when controls should be used. These are having a high dependence on theresource, having a high expectation that the resource flows would be unacceptable without

proper controls, that the instituting of a control process would be feasible, and that the totalcontrol process costs would be within the acceptable range. Timing is one of the bases for

differentiating control systems. Some major control types are based ontiming. These include feed forward controls, concurrent controls, and feedback controls.These are terms which are unfamiliar to many students and special note needs to be made

in reviewing this material. To be effective, control systems should be future-oriented,multidimensional, cost-effective, accurate, realistic, timely monitor able, acceptable to

organization members, and flexible.

Control as a management process

A. Controlling, one of the four major functions of POLCA management, is the process of regulating organizational activities so that actual performance conforms to expected

organizational standards and goals.



1. Controlling is largely geared to ensuring that the behavior of individualsin the organization contributes to reaching organizational goals.

2. Controls encourage wanted behaviors and discourage unwantedbehaviors.

B. A control system is a set of mechanisms that are designed to increase the probability

of meeting organizational standards and goals.C. Controls can play five important roles in organizations.1. Control systems enable managers to cope with uncertainty by monitoring

the specific activities and reacting quickly to significant changes in theenvironment.

2. Controls help managers detect undesirable irregularities, such as productdefects, cost overruns, or rising personnel turnover.

3. Controls alert managers to possible opportunities by highlightingsituations in which things are going better than expected.

4. Controls enable managers to handle complex situations by enhancingcoordination within large organizations.

5. Controls can decentralize authority by enabling managers to encouragedecision making at lower levels in the organization while still remaining in

control.D. Control responsibilities differ according to managerial level.

1. Strategic control involves monitoring critical environmental factors thatcould affect the viability of strategic plans, assessing the effects of

organizational strategic actions, and ensuring that strategic plans areimplemented as intended.

a. Strategic control is typically the domain of top-level managerswho must insure core competencies are developed and maintained.

b. Long time frames are involved, although shorter time frames maybe appropriate in turbulent environments.

2. Tactical control focuses on assessing the implementation of tactical plansat departmental levels, monitoring associated periodic results, and taking

corrective action as necessary.a. Tactical control is primarily under the direction of middle

managers, but top-level managers may at times get involved.b. Time frames are periodic, involving weekly or monthly reporting

cycles.c. Tactical control involves department-level objectives programs,

and budgets.3. Operational control involves overseeing the implementation of operating

plans,monitoring day-to-day results, and taking corrective action whenrequired.

a. Operational control is the responsibility of lower-level managers.b. Control is a day-to-day process.

c. The concern is with schedules, budgets, rules, and specific outputsof individuals.



Que. 4 Mention the Limitation of Control.

Ans.

Limitations of Control process are as under:-

1.

Difficulty in setting standards.2. Difficulty in qualification.3. Influence of external factors.

4. Expenses.5. Opposition from subordinates.

6. Difficulty in pinpointing responsibility.7. Time consuming.

8. Limits of corrective actions. (Explanation of these points in four lines each)



Section C

Que. 1 Define Management and describe the essential Characteristics.

Ans.

Author Definition:

“Management is the accomplishment of results through and with people in formal

organised groups.” - Harold Koontz

“Management is a multi purpose organ that manages business, managers, workers and

work.” - Peter Drucker

“To manage is to forecast and to plan, to organise, command, coordinate and control.”

- Philip Kotler

“Art of getting things done through people.” - Mary Parker Follet

“Consisting of Planning, Organising, Actuating and controlling, performed to

determine and accomplish the objectives by use of people and resources.”

-George R. Terry

Explanation of Author definition (in your own words)

• Management is nothing but getting work done, by organized use of resources,

to achieve desired goals

• It is a process involving planning, organising, staffing, directing and

controlling human efforts to achieve stated objectives in an organisation

Features of Management.

• Organised activities

•

Existence of objectives• Relationship among resources

• Working with and through people

• Decision making

Importance Of Mangement

• Effective utilisation of resources

• Development of resources

•

Incorporates innovation• Motivates employees

• Expansion of business

• Reduces turnover/absenteeism

• Integrating various interest groups

• Brings stability in the society



It helps in Achieving Group Goals – It arranges the factors of production, assembles andorganizes the resources, integrates the resources in effective manner to achieve goals. It

directs group efforts towards achievement of pre-determined goals. By defining objectiveof organization clearly there would be no wastage of time, money and effort. Management

converts disorganized resources of men, machines, money etc. into useful enterprise. These

resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals.Optimum Utilization of Resources – Management utilizes all the physical & human

resources productively. This leads to efficacy in management. Management providesmaximum utilization of scarce resources by selecting its best possible alternate use in

industry from out of various uses. It makes use of experts, professional and these servicesleads to use of their skills, knowledge, and proper utilization and avoids wastage. If

employees and machines are producing its maximum there is no under employment of anyresources.

Reduces Costs – It gets maximum results through minimum input by proper planning andby using minimum input & getting maximum output. Management uses physical, human

and financial resources in such a manner which results in best combination. This helps incost reduction.

Establishes Sound Organization – No overlapping of efforts (smooth and coordinatedfunctions). To establish sound organizational structure is one of the objective of

management which is in tune with objective of organization and for fulfillment of this, itestablishes effective authority & responsibility relationship i.e. who is accountable to

whom, who can give instructions to whom, who are superiors & who are subordinates.Management fills up various positions with right persons, having right skills, training and

qualification. All jobs should be cleared to everyone.Establishes Equilibrium – It enables the organization to survive in changing environment.

It keeps in touch with the changing environment. With the change is external environment,the initial co-ordination of organization must be changed. So it adapts organization to

changing demand of market / changing needs of societies. It is responsible for growth andsurvival of organization.

Essentials for Prosperity of Society – Efficient management leads to better economicalproduction which helps in turn to increase the welfare of people. Good management makes

a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial to business and society will get maximum

output at minimum cost by creating employment opportunities which generate income inhands. Organization comes with new products and researches beneficial for society.

Describing management is no simple task, and most of the times you’ll find statementslike: “Management is what managers do”.

While that’s true, it doesn’t tell us much unfortunately. So in order to understand the

concept of management, you have to understand what managers do.

Nature or Characteristics of management:



1. Goal oriented.2. Universal.

3. Integrated process4. Social process

5. Activity based

6. Group activity7. Art as well as science8. Multi disciplinary

9. Intangible10.Optimum co-ordination between human and material resources.

11.The combination of multiple functions12.Management is a distinct entity.

13.Management is a profession14.Management based on authorities

15.It is needed at all level16.It is a social responsibilities

17.Purposeful18.It is an executive function

19.It is a coordinating force20.Dynamic in nature

21.Management principles are relative not absolute ---- it means that managementresults are according to the situation.

22.Management is creative and innovative formulate creativity; creativity is theprocess of developing new ideas.



Que.1 Describe in brief the development of Management Thoughts.

Ans.

Earlier definition by Mary Parker Follet – Management scholar as:

“The art of getting things done through people”

Stoner“The process of planning, organizing, leading and controlling the efforts of an organizationmember and of using all other organizational resources to achieve stated organizational

goal”.

Holt

“The process of planning, organizing, leading and controlling resources in an organization.

Management is the art of getting things done through people. In a broader sense, it is the

process of Planning, Organizing, Staffing, Directing, Coordinating, Reporting & Budgeting

and the efforts of organisation members and of using all other organizational resources toachieve stated organizational goals.

The definition of management can be broadly classified into four groups:

1. Process School: The process School defines management in terms of functions

undertaken by the manager in an integrated way to achieve organizational purposes.

According to Henri Foyol: - To manage is to forecast and plan, to organize, tocommand, to coordinate and to control .

All other definitions of management related to this school are either marginal additions,deletions, or elaborations of the functions listed out in the above definition.

2. Human Relations School: This school emphasizes the human aspect of organisation

and conceives it as a social system. It is a social system because managerial actions areprincipally concerned with relations between people. In fact, management is concerned

with development of people and not the direction of things.

The essence of this school is well reflected in the definition of Lawrence Appley to whom

management is the accomplishment of results through the efforts of other people.

3. Decision School: The Decision School defines management as rule-making and rule-

enforcing body. In fact the life of a manager is a perpetual choice making activity andwhatever a manager does, he does through his decisions. Moreover, decision making power

provides a dynamic force for managers to transform the resource of business organisationinto a productive and cooperative concern.

4. System and Contingency School: According to this school, organisations like anyliving organism must adapt themselves to their environments for survival and growth.

Thus, management involves designing organisations adaptable to changing markets,technology and other critical environmental factors. The systems theory of organisations



are organic and open systems consisting of interacting and interdependent parts and havinga variety of goals. Managers are supposed to maintain balance among the conflicting

objectives, goals and activities of members of the organisation. He must achieve resultsefficiently and effectively. According Contingency School there is no best way to design

organisations and manage them. Managers should design organisations, define goals and

formulate policies and strategies in accordance with the prevailing environmentalconditions.

Different schools of thought defined management differently due to three reasons:

1. Difference in perspectives of management and organisation theories,

2. Shifts in emphasis in the study of the organisation from economic and technical aspects

to conceptual and human aspects, and

3. Focus on internal and external environments of the organisation.

Scientific Management • Frederick Winslow Taylor

- Father of Scientific Management.

- 1856 - 1915.

• 1874 he becomes an apprentice patternmaker and machinist at Enterprise

Hydraulics Works.• 1878 he takes up an unskilled job at Midvale Steel Works where he did his first

experiments.• In 1881 he gains a master degree in mechanical engineering. In 1890 he is

appointed to general manager of Manufacturing Investment Company (MIC).

Why Scientific Management • It is important to understand that the circumstances during the life of Taylor were

quite different from those today.• There had been a series of depressions.

• Production methods at the time were very inefficient.

• Also there was a need to employ many immigrants into the US, to raise the livingstandards and to meet rising demands for goods of every sort.

• All of this influences Taylor when he publishes The Principles of Scientific

Management in 1911.

Usage of Scientific Management • As a contrast to modern business or management methods.•

Basis or inspiration for many later management philosophies, includingManagement by Objectives, Operations Research, CSFs and KPIs and Balanced

Scorecard, Just-in-time and Lean Manufacturing, Total Quality Management, SixSigma and Business Process Reengineering.

Steps in Scientific Management 1. Replace rule of thumb work methods with methods based on a scientific study of

the tasks.



2. Select, train, teach and develop the most suitable person for each job, againscientifically, rather than passively leaving them to train themselves.

3. Achieving cooperation rather than individualism.4. Divide work between managers and workers. The managers apply scientific

management principles to planning and supervising the work, and the workers carry

out the tasks.Taylor’s 4 Principles of Management

Strengths of Scientific Management • One of the first formal divisions between workers and managers.

• Contribution to efficient production methods, leading to a major global increase of living standards.

• Focus on the individual task and worker level. Compare: Business Process

Reengineering (process level).• Direct reward mechanisms for workers rather than pointless end-of-year profit

sharing schemes.• Systematic. Early proponent of quality standards.

•

Emphasis on measuring. Measurement enables improvement.Limitations of Scientific Management • Taylorism can easily be abused to exploit human beings. Conflicts with labor

unions.• Not useful to deal with groups or teams.

• Leaves no room for individual preferences or initiative.

• Overemphasis on measuring. No attention for soft factors.

• Mechanistic. Treating people as machines.• Loss of skill level and autonomy at worker level. Not very useful in current

knowledge worker environments.

Administrative Management: Fayol •

Henri Fayol (1841–1925)– First recognized that successful managers had to understand the basic

managerial functions.

– Developed a set of 14 general principles of management.

– Fayol’s managerial functions of planning, leading, organizing andcontrolling are routinely used in modern organizations.

Fayol’s General Principles of Management 1. Division of work

2. Authority and responsibility

3. Discipline

4. Unity of command

5. Unity of direction

6. Subordination of individual interest to the common good

7. Remuneration of personnel

8. Centralization

9. Scalar chain

10. Order

11. Equity

12. Stability



13. Initiative

14. Esprit de corps

{Explanation of each 14 principles in your own word}

Bureaucratic Management •

Focuses on the overall organizational system.• Bureaucratic management is based upon:

– Firm rules

– Policies and procedures– A fixed hierarchy

– A clear division of labor

Bureaucratic Management: Weber • Max Weber (1864–1920)

– A German sociologist and historian who envisioned a system of

management that would be based upon impersonal and rational behavior—the approach to management now referred to as “bureaucracy.”

•

Division of labor• Hierarchy of authority

• Rules and procedures

• Impersonality

• Employee selection and promotion

Weber’s Three Types of Authority

Type DescriptionTraditional Subordinate obedience based upon custom or tradition (e.g., kings, queens,

chiefs).Charismatic Subordinate obedience based upon special personal qualities associated

with certain social reformers, political leaders, religious leaders, or

organizational leaders (e.g., Martin Luther King, Gandhi).Rational–legal Subordinate obedience based upon the position held by superiors within theorganization (e.g., police officers, executives, supervisors).



Que.2 What is Planning? Explain steps involved in Planning.

Ans.

Planning involves defining the organization’s goals, establishing an overall strategy forachieving these goals, and developing a comprehensive set of plans to integrate and

coordinate organizational work. Planning is in fact the advance decision making by

managers. Keeping in mind that decision making and decision taking, may it be for presentor for future is always required and is very much a managerial job. Let us first study thenature process of decision making and its various models and types.

Decision making is part of all four managerial functions. In performing these functions,managers are often called decision makers.

THE DECISION-MAKING PROCESS:A decision is a choice made from two or more alternatives. The decision-making process is

defined as a set of different steps that begins with identifying a problem and decisioncriteria and allocating weights to those criteria; moves to developing, analyzing, and

selecting an alternative that can resolve the problem; implements the alternative; andconcludes with evaluating the decision’s effectiveness.

Models of decision making can be either descriptive or normative.1. Descriptive decision-making models attempt to prescribe how managers

actually do make decisions.2. Normative decision-making models attempt to prescribe how managers should

process.Planning is the process of determining the organization’s goals and objectives and selecting

a course of action to accomplish them within the environment inside and outside theorganization.

ORPlanning involves selecting missions and objectives and the actions to achieve them.

Reasons for Planning • Helps enterprise succeed

• Provides direction and sense of purpose

• Helps manager cope with change

• Contributes to the performance of other managerial functions

• Precedes any other managerial function

• Optimum utilizing the resources.

Planning is a process for accomplishing purpose. It is blue print of business growth and aroad map of development. It helps in deciding objectives both in quantitative and

qualitative terms. It is setting of goals on the basis of objectives and keeping in view theresources.

Essentials of planning 1. Clearly define the target / goal in writing.

2. Identify all the main issues which need to be addressed.3. Review past performance.

4. Decide budgetary requirement.5. Focus on matters of strategic importance.

6. What are requirements and how will they be met?7. What will be the likely length of the plan and its structure?

8. Identify shortcomings in the concept and gaps.



9. Strategies for implementation.10.Review periodically.

Importance of the Planning Process 13. Makes the objectives clear and specific.

14. Uncertainty and change.

15. Plans facilitate decision-making.16. Provides basis of control

17. Leads to economy and efficiency

18. Facilitates integration

19. Encourages innovation and creativity.

20. Facilitates control

21. Improves motivation

22. Improves competitive strength

23. Innovation and creativity

24. Better coordination

Levels and of planning (students need to elaborate it)

ON THE BASIS OF SCOPE THERE ARE TWO LEVELS:1. CORPORATE PLANNING COVERING THE ENTIRE ORGANIZATION

2. SUB-CORPORATE OR FUNCTIONAL PLANNING

ON THE BASIS OF SIGNIFICANCE WE MAY DIVIDE PLANNING INTO:1. STRATEGIC PLANNING

2. TACTICAL OR OPERATIONAL PLANNING.

ON THE BASIS OF TIME WE CAN DIVIDE PLANNING INTO:1. LONG TERM PLANNING COVERING PERIODS OF MORE THAN ONE

YEAR.2. SHORT TERM PLANNING COVERING A PERIOD OF ONE YEAR OR LESS.

TYPES OF PLANS: PLANS ARE CATEGORIZED INTO TWO GROUPS:

1. SINGLE USE PLANS2. STANDING PLANS

3. TACTICAL PLANS4. STRATEGIC PLANS

5. CONTIGENCY PLANS

Organizational Mission • The Mission states the organization’s values, aspirations, and reason for existence.

• The Mission Statement is the basis for all following goals and plans.

• Without a clear mission, goals and plans may be developed haphazardly causing the

organization to fail.Goals: specify future ends. Desired future state.

• Single-use plans are developed to achieve objectives that are not likely to be

repeated in the future. Single-use plans include programs, budgets and projects.



• Standing plans are used to provide guidance for tasks performed repeatedly within

the organization. The primary standing plans are organizational policies, rules, andprocedures

• Standing Plans• POLICIES

•

PROCEDURES• REGULATIONS

• PROGRAMS• PROJECTS

Other Types Of Plans • Long term & Short term

• Formal & Informal Plans

• Proactive & Reactive Plans

• Strategic & Operational Plans• Planning may be seen as the identification and formulation of the objectives of a

business (Goal Setting)

•

Determining Planning Premises• Analyzing the data (Identifying Alternatives)

• Evaluation & Selection

• Implementation & Review

www.altius.ac.inManagement By: SHADAB AHMED

The Planning Process

GOAL SETTINGIdentification and formulation of

objectives

DEVELOPING PLANSChoices between alternative plans

IMPLEMENTATIONExecution of the plan

ReactivePlanning

Revisionof goalsandplans

Explanation of the process.



Que.2 Describe types of Planning.

Ans.

The various types of plansON THE BASIS OF SCOPE THERE ARE TWO LEVELS:

3. CORPORATE PLANNING COVERING THE ENTIRE ORGANIZATION

4.

SUB-CORPORATE OR FUNCTIONAL PLANNING

ON THE BASIS OF SIGNIFICANCE WE MAY DIVIDE PLANNING INTO:

3. STRATEGIC PLANNING

4. TACTICAL OR OPERATIONAL PLANNING.

ON THE BASIS OF TIME WE CAN DIVIDE PLANNING INTO:

3. LONG TERM PLANNING COVERING PERIODS OF MORE THAN ONEYEAR.

4. SHORT TERM PLANNING COVERING A PERIOD OF ONE YEAR OR LESS.

TYPES OF PLANS:

PLANS ARE CATEGORIZED INTO TWO GROUPS:6. SINGLE USE PLANS

7. STANDING PLANS8. TACTICAL PLANS

9. STRATEGIC PLANS10. CONTIGENCY PLANS

Organizational Mission • The Mission states the organization’s values, aspirations, and reason for existence.

• The Mission Statement is the basis for all following goals and plans.

• Without a clear mission, goals and plans may be developed haphazardly causing the

organization to fail.Goals: specify future ends. Desired future state.

• Single-use plans are developed to achieve objectives that are not likely to berepeated in the future. Single-use plans include programs, budgets and projects.

• Standing plans are used to provide guidance for tasks performed repeatedly within

the organization. The primary standing plans are organizational policies, rules, andprocedures

• Standing Plans

• POLICIES• PROCEDURES

• REGULATIONS

• PROGRAMS

• PROJECTS



Other Types Of Plans

• Long term & Short term

• Formal & Informal Plans• Proactive & Reactive Plans

•

Strategic & Operational Plans• Planning may be seen as the identification and formulation of the objectives of a

business (Goal Setting)• Determining Planning Premises

• Analyzing the data (Identifying Alternatives)• Evaluation & Selection

• Implementation & Review



Que.3 Explain the Importance and Nature of Organization.Ans.

Organizing: Process of determining the activities to be performed, arranging theseactivities to administrative units, as well as assigning managerial authority and

responsibilities to people employed in the organization. Organizations are experimenting

with different approaches to organizational structure and design. Organizational structurecan play an important role in an organization’s success.The process of ORGANIZING—the second management functions—is how an

organization’s structure is created.The nature of organization structure Managers are seeking structural designs that will

best support and allow employees to effectively and efficiently do their work. Organizing isthe process of creating an organization’s structure. Organization structure is the formal

pattern of interactions and coordination designed by management to link the tasks of individuals and groups in achieving organizational goals. An organizational structure is

the formal framework by which job tasks are divided, grouped, and coordinated.1. This formal pattern designed by management is to be distinguished from the

informal pattern of interactions that simply emerges within an organization.2. Organization structure consists primarily of four elements:

a. Job designb. Departmentalization

c. Vertical coordinationd. Horizontal coordination

3. Organization design is the process of developing an organization structure.Organizational design is the process of developing or changing an organization’s structure.

It involves decisions about six key elements: work specialization, departmentalization,chain of command, span of control,centralization/decentralization, and formalization. We

need to take a closer look at each of these structural elements.The organization chart is a line diagram that depicts the broad outlines of an organization’s

structure. While varying in detail from one organization to another, typically organizationcharts show the major positions or departments in the organization, the way positions are

grouped together, reporting relationships for lower to higher levels, official channels forcommunications, and possibly the titles associated with major positions in the organization.

1. The organization chart provides a visual map of the chain of command, theunbroken line of authority that ultimately links each individual with the top

organizational position thorough a managerial position at each successive layer inbetween.

2. Nearly all organizations having just a few members have an organization chart.Responsibility is the obligation or expectation to perform and carry out duties and achieve

goals related to a position.

Authority is the right inherent in a managerial position to tell people what to do and toexpect them to do it, right to make decisions and carry out actions to achieve organizational

goals. While part of a manager’s work may be delegated, the manager remains accountablefor results.

a. Accountability is the requirement of being able to answer for significantdeviations from duties or expected results.



b. The fact that managers remain accountable for delegated work may causethem to resist delegation.

Delegation is assignment of part of manager’s work to others along with responsibility and

authority.

1. In addition to issues of accountability, managers may resist delegation for anumber of reasons.a. Managers may fear if subordinates fail. b. Managers may think they lack time to train

subordinates.c. Managers may want to hold on to their power.

d. Managers may enjoy doing the tasks subordinates could do.e. Managers may feel threatened by subordinates.

f. Managers may not know how to delegate.2. Subordinates may resist delegation because of fear of failure or of risk taking.

3. Failure to delegate may have serious negative consequences for a manger’s career.

Importance of Organizing • Focus on, and facilitate the attaining of, objectives.

• Arrangement of positions and jobs within thehierarchy.

• Define responsibilities and line of authority ofall levels.

• Creating relationships that will minimize friction.



Que.3 Explain the steps involve in the Process of Organization.Ans.

Organizing: Process of determining the activities to be performed, arranging theseactivities to administrative units, as well as assigning managerial authority and

responsibilities to people employed in the organization. Organizations are experimenting

with different approaches to organizational structure and design. Organizational structurecan play an important role in an organization’s success.The process of ORGANIZING—the second management functions—is how an

organization’s structure is created.Organization design is the process of developing an organization structure. Organizational

design is the process of developing or changing an organization’s structure. It involvesdecisions about six key elements: work specialization, departmentalization, chain of

command, span of control, centralization/decentralization, and formalization. We need totake a closer look at each of these structural elements.

The organization chart is a line diagram that depicts the broad outlines of an organization’sstructure. While varying in detail from one organization to another, typically organization

charts show the major positions or departments in the organization, the way positions aregrouped together, reporting relationships for lower to higher levels, official channels for

communications, and possibly the titles associated with major positions in the organization.1. The organization chart provides a visual map of the chain of command, the

unbroken line of authority that ultimately links each individual with the toporganizational position thorough a managerial position at each successive layer in

between.2. Nearly all organizations having just a few members have an organization chart.

Responsibility is the obligation or expectation to perform and carry out duties and achievegoals related to a position.

Authority is the right inherent in a managerial position to tell people what to do and to

expect them to do it, right to make decisions and carry out actions to achieve organizationalgoals. While part of a manager’s work may be delegated, the manager remains accountable

for results.a. Accountability is the requirement of being able to answer for significant

deviations from duties or expected results.b. The fact that managers remain accountable for delegated work may cause

them to resist delegation.

Delegation is assignment of part of manager’s work to others along with responsibility andauthority.

1. In addition to issues of accountability, managers may resist delegation for anumber of reasons.

a. Managers may fear if subordinates fail. b. Managers may think they lack time to trainsubordinates.

c. Managers may want to hold on to their power.d. Managers may enjoy doing the tasks subordinates could do.

e. Managers may feel threatened by subordinates.f. Managers may not know how to delegate.



Que. 4 Briefly discuss the different techniques of Directing?Ans.



•

Directing is said to be the heart of management process.• Planning, organizing, staffing have got no importance if direction function does not

take place.


• Providing guidance to workers“He that cannot obey cannot command.” ~Benjamin Franklin

“Directing consists of process or technique by which instruction can be issued and

operations can be carried out as originally planned”



TECHNIQUES OF DIRECTING 1. Delegation2. Supervision

3. Orders and instructions4. Motivation

5. Leadership6. Communication

1. Delegation:- It is assignment of part of manager’s work to others along withresponsibility and authority.

1. In addition to issues of accountability, managers may resist delegation for anumber of reasons.

a. Managers may fear if subordinates fail. b. Managers may think they lack time to trainsubordinates.

c. Managers may want to hold on to their power.d. Managers may enjoy doing the tasks subordinates could do.

e. Managers may feel threatened by subordinates.f. Managers may not know how to delegate.

2. Subordinates may resist delegation because of fear of failure or of risk taking.3. Failure to delegate may have serious negative consequences for a manger’s career.

2. SUPERVISION:- Supervision is Overseeing, Invigilation, Superintend,

Purpose of Supervision:

- Enhance professional functioning

- Foster professional development

- Developing profession's values and ethics

- Impart necessary skill

RESPONSIBILITIES OF A SUPERVISOR



1. To schedule work so as to ensure an even and steady flow.2. To assign work to different individuals

3. To provide proper working conditions4. To issue orders and instructions

5. To prescribe work methods and procedures

6. To guide, train and inspire workers in the efficient performance of work.

QUALITIES OF A GOOD SUPERVISOR

1. Knowledge of Work 2. Knowledge of the Organization

3. Communication Skill4. Human Relation of Skill

5. Decisiveness

FUNDAMENTALS OF EFFECTIVE SUPERVISION 1. Planning the work

2. Time management and delegation3. Organising the resources

4. Staffing the Units5. Trianing and development of Employees

6. Disciplining the Workers7. Appraising the performance of Employees

8. Controlling the results9. Labour relations and Grievance procedures

3. Orders and instructions:- Many people believe that to be a good manager you have to

give orders to the people below them, they are wrong. They should not have to give orders.When we give an order, we do not allow the other person any latitude to think about what

to do or how to do it. All they (the subordinates) can do to satisfy our order is exactly whatyou ordered. There are two reasons why this is bad.

A. It does not allow the person to figure out the best way to do the task.B. It does not let them learn.

Sometimes it is appropriate to give orders. In the military, there are times when a leader has

to give orders. When you tell a squad to "charge that hill" you don't want them to think about it. You just want it done. However, even in the military, leaders don't give orders

unless they have to. Instead of giving orders and telling someone what to do, goodmanagers give instructions. Instead of telling them what to do, you tell them what you want

done.Give instructions instead: - When we tell an employee what we want to be done, instead

of giving an order, we give them the freedom to come up with their best way of getting thattask done. It may not always be the best way, and we may have to do some monitoring and

guiding, but there is also the chance that the subordinates will come up with somethingbetter than what we planned.When an employee is given an instruction instead of an order,

they have to think. They can't just do what they were told and say they were followingorders. They have to think of ways to get the job done. They have to decide which the best



way is. They have to invest a little of themselves in the solution. Also, when a managergive an employee an instruction, instead of an order, and let them decide for themselves the

best way to accomplish the task, he is more likely to get their buy-in and support. If theyhave made the decision about the best way to accomplish the task they are more likely to

believe it is correct and valuable. They will defend it against others who question it.

4. Motivation:- It comprises of motivational programmes, i.e., incentive plans to be framed

for further participation and employment of employees in a concern. Therefore, all types of

incentive plans becomes an integral part of staffing function.

5. Leadership:- The recognition of the important role that leadership plays inorganizational performance is widely acknowledged by managers everywhere. Leadership

is what makes things happen in organizations. There are distinctions between managers andleaders. Managers are appointed and have legitimate power within the organization.

Leaders are those persons who are able to influence others and who possess managerialauthority. Leadership, then, is the ability to influence a group toward the achievement of

goals. How leaders influence others. Leadership, the foundation of the managementfunction of leading, is the process of influencing others toward the achievement of

organizational goals. Power is the capacity to affect the behavior of others.

6. Communication:- (short note explaining importance of communication)



Que. 4 Explain the meaning of directing and describe its function.



•

Directing is said to be the heart of management process.• Planning, organizing, staffing have got no importance if direction function does not

take place.




~Benjamin Franklin


Therefore, Directing is the function of guiding, inspiring, overseeing and instructingpeople towards accomplishment of organizational goals.

CHARACTERISTICS:1. Pervasive Function - Directing is required at all levels of organization. Every

manager provides guidance and inspiration to his subordinates.2. Continuous Activity - Direction is a continuous activity as it continuous

throughout the life of organization.3. Human Factor - Directing function is related to subordinates and therefore it is

related to human factor. Since human factor is complex and behavior isunpredictable, direction function becomes important.

4. Creative Activity - Direction function helps in converting plans into performance.Without this function, people become inactive and physical resources are

meaningless.5. Executive Function - Direction function is carried out by all managers and

executives at all levels throughout the working of an enterprise, a subordinatereceives instructions from his superior only.

6. Delegate Function - Direction is supposed to be a function dealing with humanbeings. Human behavior is unpredictable by nature and conditioning the people’s

behavior towards the goals of the enterprise is what the executive does in thisfunction. Therefore, it is termed as having delicacy in it to tackle human behavior.

IMPORTANCE 1. It Initiates Action.2. Means of Motivation.

3. It Provides Stability.4. Coping up with the changes.

5. Efficient Utilization of Resources.6. Facilitates Change.



Principles 1. Communication.

2. Objective.3. Motivation.

4. Follow up.

5.

Leadership.6. Contribution.7. Relation.

8. Command.

Directing or Direction function is said to be the heart of management of process and

therefore, is the central point around which accomplishment of goals take place. A fewphilosophers call Direction as “Life spark of an enterprise”. It is also called as on actuating

function of management because it is through direction that the operation of an enterpriseactually starts. Being the central character of enterprise, it provides many benefits to a

concern which are as follows:-

1. It Initiates Actions - Directions is the function which is the starting point of thework performance of subordinates. It is from this function the action takes place,

subordinates understand their jobs and do according to the instructions laid.Whatever are plans laid, can be implemented only once the actual work starts. It is

there that direction becomes beneficial.2. It Ingrates Efforts - Through direction, the superiors are able to guide, inspire and

instruct the subordinates to work. For this, efforts of every individual towardsaccomplishment of goals are required. It is through direction the efforts of every

department can be related and integrated with others. This can be done throughpersuasive leadership and effective communication. Integration of efforts bring

effectiveness and stability in a concern.3. Means of Motivation - Direction function helps in achievement of goals. A manager

makes use of the element of motivation here to improve the performances of subordinates. This can be done by providing incentives or compensation, whether

monetary or non - monetary, which serves as a “Morale booster” to the subordinatesMotivation is also helpful for the subordinates to give the best of their abilities

which ultimately helps in growth.

It Provides Stability - Stability and balance in concern becomes very important for longterm sun survival in the market. This can be brought upon by the managers with the help of four tools or elements of direction function - judicious blend of persuasive leadership,

effective communication, strict supervision and efficient motivation. Stability is veryimportant since that is an index of growth of an enterprise. Therefore a manager can use of

all the four traits in him so that performance standards can be maintained.Coping up with the changes - It is a human behaviour that human beings show resistance to

change. Adaptability with changing environment helps in sustaining planned growth andbecoming a market leader. It is directing function which is of use to meet with changes in

environment, both internal as external. Effective communication helps in coping up with



the changes. It is the role of manager here to communicate the nature and contents of changes very clearly to the subordinates. This helps in clarifications, easy adaptions and

smooth running of an enterprise. For example, if a concern shifts from handlooms topowerlooms, an important change in technique of production takes place. The resulting

factors are less of manpower and more of machinery. This can be resisted by the

subordinates. The manager here can explain that the change was in the benefit of thesubordinates. Through more mechanization, production increases and thereby the profits.Indirectly, the subordinates are benefited out of that in form of higher remuneration.

Efficient Utilization of Resources - Direction finance helps in clarifying the role of everysubordinate towards his work. The resources can be utilized properly only when less of

wastages, duplication of efforts, overlapping of performances, etc. doesn’t take place.Through direction, the role of subordinates become clear as manager makes use of his

supervisory, the guidance, the instructions and motivation skill to inspire the subordinates.This helps in maximum possible utilization of resources of men, machine, materials and

money which helps in reducing costs and increasing profits.

From the above discussion, one can justify that direction, surely, is the heart of management process. Heart plays an important role in a human body as it serves the

function pumping blood to all parts of body which makes the parts function. In the similarmanner, direction helps the subordinates to perform in best of their abilities and that too in

a healthy environment. The manager makes use of the four elements of direction here sothat work can be accomplished in a proper and right manner. According to Earnest Dale,

“Directing is what has to be done and in what manner through dictating the procedures andpolicies for accomplishing performance standards”. Therefore, it is rightly said that

direction is essence of management process.



Que. 5 Explain the techniques of Control.Ans.

Controlling consists of verifying whether everything occurs in confirmities with the plansadopted, instructions issued and principles established. Controlling ensures that there is

effective and efficient utilization of organizational resources so as to achieve the planned

goals. Controlling measures the deviation of actual performance from the standardperformance, discovers the causes of such deviations and helps in taking corrective actionsAccording to Brech, “Controlling is a systematic exercise which is called as a process of

checking actual performance against the standards or plans with a view to ensure adequateprogress and also recording such experience as is gained as a contribution to possible future

needs.”According to Donnell, “Just as a navigator continually takes reading to ensure whether he

is relative to a planned action, so should a business manager continually take reading toassure himself that his enterprise is on right course.

Controlling has got two basic purposesIt facilitates co-ordination.

It helps in planning.Techniques of Control:-

Traditional.Personal observation.

Setting Examples.Plans and Policies.

Charts and Manuals.Disciplinary system.

Written Instructions.Statistical data.

Specific report and record.Financial Statements.

Operational Audits.Break even analysis.

Budget.Modern.

ROI.Management Audit.

MIS.Zero-base budgeting

OrTo ensure complete and consistent information, organizations often use standardized

documents such as financial, status, and project reports. Each area within an organization,however, uses its own specific control techniques, described in the following sections.

Financial controlsAfter the organization has strategies in place to reach its goals, funds are set aside for the

necessary resources and labor. As money is spent, statements are updated to reflect howmuch was spent, how it was spent, and what it obtained. Managers use these financial

statements, such as an income statement or balance sheet, to monitor the progress of programs and plans. Financial statements provide management with information to



monitor financial resources and activities. The income statement shows the results of theorganization's operations over a period of time, such as revenues, expenses, and profit or

loss. The balance sheet shows what the organization is worth (assets) at a single point intime, and the extent to which those assets were financed through debt (liabilities) or

owner's investment (equity).

Financial audits, or formal investigations, are regularly conducted to ensure that financialmanagement practices follow generally accepted procedures, policies, laws, and ethicalguidelines. Audits may be conducted internally or externally. Financial ratio

analysis examines the relationship between specific figures on the financial statements andhelps explain the significance of those figures:

Liquidity ratios measure an organization's ability to generate cash.Profitability ratios measure an organization's ability to generate profits.

Debt ratios measure an organization's ability to pay its debts.Activity ratios measure an organization's efficiency in operations and use of assets.

In addition, financial responsibility centers require managers to account for a unit'sprogress toward financial goals within the scope of their influences. A manager's goals and

responsibilities may focus on unit profits, costs, revenues, or investments.Budget controls

A budget depicts how much an organization expects to spend (expenses) and earn(revenues) over a time period. Amounts are categorized according to the type of business

activity or account, such as telephone costs or sales of catalogs. Budgets not only helpmanagers plan their finances, but also help them keep track of their overall spending.

A budget, in reality, is both a planning tool and a control mechanism. Budget developmentprocesses vary among organizations according to who does the budgeting and how the

financial resources are allocated. Some budget development methods are as follows:Top-down budgeting. Managers prepare the budget and send it to subordinates.

Bottom-up budgeting. Figures come from the lower levels and are adjusted andcoordinated as they move up the hierarchy.

Zero-based budgeting. Managers develop each new budget by justifying the projectedallocation against its contribution to departmental or organizational goals.

Flexible budgeting. Any budget exercise can incorporate flexible budgets, which set “meetor beat” standards that can be compared to expenditures.

Marketing controlsMarketing controls help monitor progress toward goals for customer satisfaction with

products and services, prices, and delivery. The following are examples of controls used toevaluate an organization's marketing functions:

Market research gathers data to assess customer needs—information critical to anorganization's success. Ongoing market research reflects how well an organization is

meeting customers' expectations and helps anticipate customer needs. It also helps identifycompetitors.

Test marketing is small-scale product marketing to assess customer acceptance. Usingsurveys and focus groups, test marketing goes beyond identifying general requirements and

looks at what (or who) actually influences buying decisions.Marketing statistics measure performance by compiling data and analyzing results. In

most cases, competency with a computer spreadsheet program is all a manager needs.Managers look at marketing ratios, which measure profitability, activity, and market



shares, as well as sales quotas, which measure progress toward sales goals and assist withinventory controls.

Unfortunately, scheduling a regular evaluation of an organization's marketing program iseasier to recommend than to execute. Usually, only a crisis, such as increased competition

or a sales drop, forces a company to take a closer look at its marketing program. However,

more regular evaluations help minimize the number of marketing problems.Human resource controlsHuman resource controls help managers regulate the quality of newly hired personnel, as

well as monitor current employees' developments and daily performances.On a daily basis, managers can go a long way in helping to control workers' behaviors in

organizations. They can help direct workers' performances toward goals by making surethat goals are clearly set and understood. Managers can also institute policies and

procedures to help guide workers' actions. Finally, they can consider past experiences whendeveloping future strategies, objectives, policies, and procedures.

Common control types include performance appraisals, disciplinary programs,observations, and training and development assessments. Because the quality of a firm's

personnel, to a large degree, determines the firm's overall effectiveness, controlling thisarea is very crucial.

Computers and information controlsAlmost all organizations have confidential and sensitive information that they don't want to

become general knowledge. Controlling access to computer databases is the key to thisarea.

Increasingly, computers are being used to collect and store information for controlpurposes. Many organizations privately monitor each employee's computer usage to

measure employee performance, among other things. Some people question theappropriateness of computer monitoring. Managers must carefully weigh the benefits

against the costs—both human and financial—before investing in and implementingcomputerized control techniques.

Although computers and information systems provide enormous benefits, such as improvedproductivity and information management, organizations should remember the following

limitations of the use of information technology:Performance limitations. Although management information systems have the potential

to increase overall performance, replacing long-time organizational employees withinformation systems technology may result in the loss of expert knowledge that these

individuals hold. Additionally, computerized information systems are expensive anddifficult to develop. After the system has been purchased, coordinating it—possibly with

existing equipment—may be more difficult than expected. Consequently, a company maycut corners or install the system carelessly to the detriment of the system's performance and

utility. And like other sophisticated electronic equipment, information systems do not work all the time, resulting in costly downtime.

Behavioral limitations. Information technology allows managers to access moreinformation than ever before. But too much information can overwhelm employees, cause

stress, and even slow decision making. Thus, managing the quality and amount of information available to avoid information overload is important.

Health risks. Potentially serious health-related issues associated with the use of computersand other information technology have been raised in recent years. An example is carpal



tunnel syndrome, a painful disorder in the hands and wrists caused by repetitivemovements (such as those made on a keyboard).

Regardless of the control processes used, an effective system determines whetheremployees and various parts of an organization are on target in achieving organizational

objectives.



Que. 5 Describe the essential elements of establishing an adequate and effective

control system.

Ans.According to Henri Fayol,

Control of an undertaking consists of seeing that everything is being carried out in

accordance with the plan which has been adopted, the orders which have been given, and the principles which have been laid down. Its object is to point out mistakes in order that

they may be rectified and prevented from recurring.

According to EFL Breach,Control is checking current performance against pre-determined standards contained in

the plans, with a view to ensure adequate progress and satisfactory performance. According to Harold Koontz,

Controlling is the measurement and correction of performance in order to make sure that

enterprise objectives and the plans devised to attain them are accomplished.

According to Stafford Beer,Management is the profession of control.

In 1916, Henri Fayol formulated one of the first definitions of control as it pertains to

management:

Control consists of verifying whether everything occurs in conformity with the plan

adopted, the instructions issued, and principles established. It] object to point out

weaknesses and errors in order to rectify [them] and prevent recurrence. Robert J. Mockler presented a more comprehensive definition of managerial control:

Management control can be defined as a systematic effort by business management to

compare performance to predetermined standards, plans, or objectives in order to

determine whether performance is in line with these standards and presumably in order to

take any remedial action required to see that human and other corporate resources are

being used in the most effective and efficient way possible in achieving corporate

objectives.

Also control can be defined as "that function of the system that adjusts operations as

needed to achieve the plan, or to maintain variations from system objectives within

allowable limits". The control subsystem functions in close harmony with the operatingsystem. The degree to which they interact depends on the nature of the operating system

and its objectives. Stability concerns a system's ability to maintain a pattern of outputwithout wide fluctuations. Rapidity of response pertains to the speed with which a system

can correct variations and return to expected output. A political election can illustrate theconcept of control and the importance of feedback. Each party organizes a campaign to getits candidate selected and outlines a plan to inform the public about both the candidate's

credentials and the party's platform. As the election nears, opinion polls furnish feedback about the effectiveness of the campaign and about each candidate's chances to win.

Depending on the nature of this feedback, certain adjustments in strategy and/or tactics canbe made in an attempt to achieve the desired result.From these definitions it can be stated

that there is close link between planning and controlling. Planning is a process by which anorganisation's objectives and the methods to achieve the objectives are established, and

controlling is a process which measures and directs the actual performance against the



planned objectives of the organisation. Thus, planning and control are often referred toas siamese twinsof management. controlling is the managerial function of management and

correction of performance in order to make sure that enterpriseobjectives and the plansdevised to attain them being accomplished.

The essential elements of any control process are • Establishment of Standards• Measurement

• Comparing performance with the standards• Taking corrective actions

1. Establish standards to measure performance. Within an organization's overallstrategic plan, managers define goals for organizational departments in specific,operational terms that include standards of performance to compare with

organizational activities.

2. Measure actual performance. Most organizations prepare formal reports of performance measurements that managers review regularly. These measurements

should be related to the standards set in the first step of the control process. Forexample, if sales growth is a target, the organization should have a means of

gathering and reporting sales data.

3. Compare performance with the standards. This step compares actual activities toperformance standards. When managers read computer reports or walk through

their plants, they identify whether actual performance meets, exceeds, or falls shortof standards. Typically, performance reports simplify such comparison by placing

the performance standards for the reporting period alongside the actual performancefor the same period and by computing the variance—that is, the difference between

each actual amount and the associated standard.

4. Take corrective actions. When performance deviates from standards, managersmust determine what changes, if any, are necessary and how to apply them. In the

productivity and quality-centered environment, workers and managers are oftenempowered to evaluate their own work. After the evaluator determines the cause or

causes of deviation, he or she can take the fourth step—corrective action. The mosteffective course may be prescribed by policies or may be best left up to employees'

judgment and initiative.

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