ENGINEERING ECONOMICS & MANAGEMENT (2130004)

1. Define Management. Explain the difference between management and administration.

2. Explain the various levels of manager and what according to you are the skills required by

the managers at various levels.

3. Write a note on: Maslow’s theory of hierarchy of needs.

4. Explain the functions of management.

5. Explain the various types of organization structures.

6. Explain in detail the four Ps of Marketing Mix.

7. Define Demand Forecasting. Discuss the methods of demand forecasting.

8. Discuss the scope of Financial Management.

9.Write a note on Sources of finance.

10. State the objectives of production management and explain the factors affecting the plant

layout.

1.Define Management. Explain the difference between management and administration.

Organization has basic four resources : Man, Material, Money and Machine. Management

combines and co-ordinates these resources to achieve organization goals.

“Management is a process of planning, organizing, staffing, directing and controlling to achieve

organization goal.”

“Its an art of getting work done from others.”

Difference between Management and Administration

Sr.No.

Point of Difference

Administration Management

1 Meaning It is concerned with formulation of broad objectives, plans and policies

Management is an art of getting things done through others by directing their efforts towards achievement of predetermined goals

2 Nature Administration is a decision making function

Management is an executing function

3 Process Administration decides what is to be done and when it is to be done

Management decides who should should do it and how it should be done

4 Function Administration is a thinking function

Management is a doing function

5 Skills Conceptual and Human skills Technical and Human skills

6 Level Top level management Middle and Lower level function

7 Applicability It is applicable to non-business It is applicable to business concerns

concerns i.e. Clubs, schools, hospitals etc.

i.e. Profit-making organization

8 Influences Decisions are influenced by public opinion, govt. Policies, religious organization, customs etc.,

The management decisions are influenced by values, opinions, beliefs and decisions of the managers

9 Status Administration constitutes of owners of the enterprise

Management constitutes of the employees of the organization

2. Explain the various levels of manager and what according to you are the skills

required by the managers at various levels.

The various people working in the organization can be classified into different categories. The

managers are basically divided into the various levels as below:

1. Top level/Administrative level

2. Middle level/Executor

3. Low level/Supervisory/operative/first-line managers

Top level Managers

• It consists of the people having the highest authority in the organization i.e. CEO, MD,

Board of Directors.

• The top management are the supremo and have the highest authority in the organization

• They set the goals and policies of the organization

• They devote more time to planning and coordinating activities

Role of top management:

• Lays down objectives and broad policies of the origination

• Issues necessary instruction for preparation of department budgets, procedures and

schedules

• Prepares plan and policies

• Control and co-ordinates the activities of organization

• Appoints and guides middle level management

• Responsible to shareholder for performance of company

Middle level Managers

• It constitutes of department managers i.e. Production manager, HR manager, Marketing

Manager etc.

• Middle level is the link between top and lower level management

• They put the plan prepared by top management into action

• They are responsible to top management for function of their department

Role of Middle Level Management:

• They make plans for their own departments to achievement to the goals assigned to them

• They interpret the plan and policies set by higher level management

• They appoint, train and guide lower level management

• They communicate the goals set by higher management to lower level

• They communicate the suggestions and problems of lower level to higher level

management

• They evaluate the performance of junior managers

• They inspire the lower level management

Lower Level Management

• Lower level management is even called supervisory/operative level of management

• It comprises of supervisors, foreman, section officers, superintendents etc.

• They are responsible for execution and operations of the activities to achieve the goal

Role of Lower Level Management

• They assign jobs and tasks to workers

• They guide and instruct workers for day to day activities

• They are responsible for quality as well as quantity of production

• They communicate the problems, suggestions of workers to higher level

• They communicate the goal and objectives set by higher management to workers

• They solve the problems of workers

• They arrange necessary material, machine, tools etc for getting the thing done.

• They prepare periodical reports about performance of workers

• They motivate workers

MANAGERIAL SKILLS

There are various skills required by managers at various level to perform their roles.

There are basically three different types of managerial skills

1. Conceptual skills

2. Human Skills

3. Technical Skills

Conceptual skills

• Conceptual skills are skills to view the organization as a whole along with its parts

• It includes the analytical skills to analyze the various aspects and situations in the

organization

• It includes the skill to visualize and make required analysis to take decisions in the

organization.

• Top level management requires majority of conceptual skill as it needs to analyze,

visualize and take necessary decision based on the situations.

• Top level has to set goals, policies, and objectives of the organization for which it needs

conceptual skills.

Human skills

• Managers at all level have to work with people, human skills are the skills to deal with

people effectively

• It involves the ability to work with people and get the work done from people

• Human skills helps the manager to motivate the employees

• Human skill involve the ability to work with other people as individual and in group also

• Human skills are required at all the levels as the managers at all levels have to deal with

people

• Human skills help the managers to understand the subordinates better

Technical skills

• It is the skills to perform the activities assigned efficiently and effectively

• Technical skills is the skill to perform a specific task

• It involves methods, process and procedures

• Technical skills are highly required at lower level/operating people to perform the job

assigned to them or get the job done in the required manner

3. Write a note on: Maslow’s theory of hierarchy of needs.

4. Explain the functions of management.

5. Explain the various types of organization structures.

- line organization structure (with Diagram)

- Staff organization structure (with diagram)

- Line and Staff organization structure (with diagram0

- Hybrid organization structure (with diagram)

- Matrix organization structure (With diagram)

6. Explain in detail the four Ps of Marketing Mix.

Marketing Mix are the factors that influence the consumer's buying decision. These are the tools

used by a marketer to market his product.

7. Define Demand Forecasting. Discuss the methods of demand forecasting.

What people say : 1) Buyer's intention survey 2) Sales force opinion 3.) Expert opinion survey

What people do: 1) Market study method

What people have done: 1) Past sales Analysis 2) Statistical analysis method.

8. Discuss the scope of Financial Management.

Traditional Approach

a) Arrangement of funds from financial institutionsb)Arrangement of funds through financial instruments like shares, bonds.c)Looking after the legal and accounting relationship between a corporation and its sources of funds.

Criticism of Traditional Approach

Time Value of Money Ignored

No Emphasis on allocation of Funds

Modern Approach

1. Financing Decisions

These include the following

• Forecasting and Financial Planning

• Working Capital Management

• Capital Structure Decisions

• Raising of Funds through Debt and Issue of Shares and Debentures, etc.

2. Investment Decisions

These include the following :

• Cost of Capital

• Capital Budgeting

• Project Management

• Security Analysis and Portfolio Management

3. Dividend Decisions

These include the following :

• Computation of Distributable Profit

• Management of Retained Earnings

• Dividend Policies and Practice

• Dividend and Valuation of Securities.

4. Other Areas of Financial Management

These are:

• Accounting

• Auditing

• Tax Planning

• International Financial Management

9. Write a note on Sources of finance.

10. State the objectives of production management and explain the factors affecting the plant

layout.

Objectives of production management

• Planning and developing the specifications for a range of products or product portfolio

that meets long term strategic plan

• Ensure that product meet or exceed customer needs

• Commercial success

• Meet time and budget objectives

• Maximize revenue and profit

Factors affecting plant layout

1. management policy

2. manufacturing process

3. Nature of product

4. Volume of production

5. Type of equipments

6. Type of building

7. Availability of total floor area

8. Arrangement of material handling equipments

9. Service facilities

10. Possibility of future expansion