Professional Documents
Culture Documents
Business Organization & Management
Business Organization & Management
ASSIGNMENT
Assignment A
Assignment B
Assignment C
DETAILS
Five Subjective Questions
Three Subjective Questions + Case Study
45 Objective Questions
MARKS
10
10
10
b)
Total weightage given to these assignments is 30%. OR 30 Marks
c)
All assignments are to be completed as typed in word/PDF.
d)
All questions are required to be attempted.
e)
All the three assignments are to be completed by due dates (specified from
time to time) and need to be submitted for evaluation by Amity University.
f)
The evaluated assignment marks will be made available within six weeks.
Thereafter, these will be destroyed at the end of each semester.
g)
The students have to attached a scan signature in the form.
Date : 20/11/2010
Signature
Assignment B
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Assignment C
ASSIGNMENT A
Q1.What is Management? Discuss its essential features.
Answer:
The term Management conveys different meanings depending upon the context in
which it is used.
According to Harold Koontz, Management is the art of getting things done
through and with people in formally organized groups.
Management may also be defined as the Effective Utilization of Human and
Material Resources to achieve the Enterprise Objectives
Management is a social process entailing responsibility for the effective and economical
planning and regulation of a given purpose or task. It is a very popular term. All
organizations - business, political, cultural or social are involved in management because it
is the management which helps and directs the various efforts towards a definite purpose.
It is an art of creating an environment in which people can perform and individuals can
co-operate towards attainment of group goals.
The following are the important features or characteristics of management:
1. Management is getting things done: A manager does not do any operating
work himself but gets it done through others. He must motivate the subordinates
for the accomplishment of the task assigned to them.
2. Management is an activity: Management is a process of organized activities. It is
concerned with the efficient use of resources like men, money and materials in the
organization.
3. Management is a group activity: Management cannot exist independent of the
group or organization it manages. It is a cardinal part of any group activity and
inspires workers to put forth their best efforts.
4. Management is a universal activity: Management is a universal phenomenon.
However, management principles are not universally applicable but are modified to
suit the given situation and the type of organization.
5. Management is purposeful: Management is a goal-oriented activity. It is
concerned with the accomplishment of goal through its various functions.
6. Management is an integrating process: Management integrates men, machines
and materials for performing various operations and accomplishing the stated
goals.
7. Management is intangible: Management is abstract and cannot be seen with the
eyes. It is evidenced by the quality of the organization and the results.
8. Management is a profession: Management is a profession because some of its
established principles are being applied in practice.
9. Management is interdisciplinary: This implies that, even though management
has been developed as a separate discipline, it draws knowledge, concepts and
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discipline from other social sciences, and put it into practice for managing the
organizations.
10. Management is a science and an art: Management has developed certain
principles and laws which have wide applications. So it is treated as a science. It is
also an art, because it is concerned with the application of knowledge for the
solution of organizational problems.
11. Management is dynamic: Management is dynamic because it adapts itself to the
social changes and introduces innovation in methodology.
12. Management involves decision-making: Management process involves
decision-making at various levels for getting things done. It involves selecting the
most appropriate alternative.
13. Management applies economic principles: Management is the art of applying
the economic principles that underline the control of men and materials in the
organization.
14. Management is concerned with direction and control: Management is
concerned with the direction and control of the various activities. It deals
particularly with the active direction of the human effort.
Q2.What is planning? Explain briefly the different types of Plans giving suitable
examples.
Answer:
According to Theo Haimann, Planning is the function that determines in advance
what should be done. It consists of selecting the enterprise objectives, policies,
programmes, procedures and other means of achieving these objectives.
According to Koontz and ODonnell, Planning is deciding in advance what to do,
how to do it, when to do it and who is to do it.
Therefore planning may be viewed as the process of deciding the objectives to be
achieved and selecting the ways and means of achieving the pre decided
objectives. It is the foundation area of management.
Planning requires administration to assess; where the company is presently set, and where
it would be in the upcoming. From there an appropriate course of action is determined
and implemented to attain the companys goals and objectives. It refers to forecasting
future circumstances and requirements.
There are many types of plans that organizations can use to accomplish its targets. The
following table explains those various plans.
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Nature of Plan
Objective
Policy
Strategy
Procedure
Rule
Programme
Definition
Goal or target to be
achieved
General statement
or understanding to
guide thinking
Action plan to face
environmental
uncertainties
Manner in which
activities are to be
performed
State what should
and should not be
done in a situation
Combination plan
for goal achievement
Example
Increase sales by 10%
Boundary
within
which decisions are
to be made
Relates
the
organization to its
environment
Sequence of steps
Employees are to be
promoted on the basis
of seniority
Combative advertising
to face price cuts by
competitors
Purchase procedure
Schedule
Time-table
activities
Budget
Statement
of
expected results and
resources to be used
Cluster
of
interrelated
activities-a separate
unit
Project
Nature
Basis of all plans
Quantitative
and
time bound plan of
action
Scheme
for
deployment
of
resources
Installation
computer
of
Complete installation
of computer within 3
months w.e.f March
2009
Produce
10,000
tonnes of sugar next
year
Construction of a
flyover
2. Tactical plans: A tactical plan is concerned with what the lower level units within
each division must do, how they must do it, and who is in charge at each level.
Tactics are the means needed to activate a strategy and make it work.
3. Strategic plans: A strategic plan is an outline of steps designed with the goals of
the entire organization as a whole in mind, rather than with the goals of specific
divisions or departments. Strategic planning begins with an organization's mission.
Strategic plans look ahead over the next two, three, five, or even more years to move
the organization from where it currently is to where it wants to be.
4. Contingency plans: Intelligent and successful management depends upon a
constant pursuit of adaptation, flexibility, and mastery of changing conditions.
Strong management requires a keeping all options open approach at all times.
That is where contingency planning comes in.
Contingency planning involves identifying alternative courses of action that can be
implemented if and when the original plan proves inadequate because of changing
circumstances. Unexpected problems and events frequently occur. When they do,
managers may need to change their plans. Anticipating change during the planning
process is best in case things don't go as expected.
Q3.Explane in brief the essential features of a joint stock company
Answer:
A joint stock company is a type of business entity: it is a type of corporation or
partnership between two. Certificates of ownership (or stocks) are issued by the company
in return for each contribution, and the shareholders are free to transfer their ownership
interest at any time by selling their stockholding to others. Following are the essential
features of such companies:
Legal
formation: No single individual or a group of individuals can start a joint
stock company. It comes into existence when it registered after completion of all legal
formalities required.
Artificial person: A joint stock company starts, grows, enters into market, and then
loses its position and disappears, just like a person, so its called an artificial person as its
birth, existence and death are regulated by law.
Separate legal entity: A joint stock company has its own separate existence
independent of its investors. This means that a joint stock company can own property,
enter into contracts and conduct any lawful business in its own name.
Common seal: A joint stock company has a common seal, which is used while
dealing with others or entering into contracts with outsiders. It can be used by any officer
in the organization working on behalf of the company. Any document, with the
company's seal, and signed by any official of the company, becomes binding on the
company.
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Perpetual existence: A joint stock company continues to exist as long as it fulfils the
requirements of law. It is not affected by the death, lunacy, insolvency or retirement of
any of its investors.
Limited liability: In a joint stock company, the liability of a member is limited to
the amount he has invested.
Democratic
management: Joint stock companies have democratic
management and control. Normally, the investors elect representatives from among
themselves known as Directors to manage the affairs of the company.
Its structure is based on its varied product lines which include womens footwear,
childrens footwear and mens footwear. Another example is banks, most of them have
separate departments for commercial loans, installment loans, savings accounts, and
checking accounts.
Q5. (a)Distinguish between delegation and decentralization
Answer:
A manager alone cannot perform all the tasks assigned to him. In order to meet the
targets, the manager should delegate authority. Delegation of Authority means division of
authority and powers downwards to the subordinate. It is about entrusting someone else
to do parts of your job. Delegation of authority can be defined as subdivision and suballocation of powers to the subordinates in order to achieve effective results.
Decentralization is a systematic delegation of authority at all levels of management and in
all of the organization. In a decentralization concern, authority is retained by the top
management for taking major decisions and framing policies concerning the whole
concern. Rest of the authority may be delegated to the middle level and lower level of
management.
The degree of decentralization will depend upon the amount of authority delegated to the
lowest level.
The table below shows the difference between delegation and decentralizing:
Basis
Responsibility
Freedom of
Work
Nature
Grant of
Authority
Degree
Process
Delegation
Responsibility remains of the
managers and cannot be
delegated
Freedom is not given to the
subordinates as they have to
work as per the instructions
of their superiors.
It is a routine function
Decentralization
Responsibility is also delegated to
subordinates.
Freedom to work can be maintained
by subordinates as they are free to
take decision and to implement it.
It is an important decision of an
enterprise.
The authority is granted by
It is a systematic act which takes place
one individual to another.
at all levels and at all functions in a
concern.
Degree of delegation varies
Decentralization is total by nature. It
from concern to concern and spreads throughout the organization
department to department.
i.e. at all levels and all functions
Delegation is a process which It is an outcome which explains
explains superior
relationship between top management
subordinates relationship
and all other departments.
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Essentiality
Withdrawal
Freedom of
Action
Decentralization is a decisions
function by nature.
It is considered as a general policy of
top management and is applicable to
all departments.
Considerable freedom
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ASSIGNMENT B
Q1. Compare Maslows Need Hierarchy theory with that of Herzbergs Two factor
theory.
Answer:
Motivation is the process of generating enthusiasm among subordinates to dedicate their
integrated efforts towards achieving the objectives of the business.
Effective direction requires proper motivation of workers. It modifies the behaviour of
the subordinates and inspires them to contribute the best of their worth in their work.
Without motivation, the employees become ordinary workers, and perform average work.
From the very beginning, when human organizations were established, people had tried
to find out the answer of what motivates people in the organization most.
For that reasons, Psychologists claimed that needs have a certain priority. As the more
basic needs are satisfied, an individual seeks to satisfy the higher needs. If his basic needs
are not met, efforts to satisfy the higher needs should be postponed. A.H. Maslow, a
famous social scientist, has given a framework that helps to explain the strength of certain
needs. According to him, there seems to be a hierarchy into which human needs are
arranged. The following table shows Maslow's hierarchy of needs:
Level
Type of Need
1
Physiological
2
Safety
3
Love and Belongingness
4
5
Esteem
Self-actualization
Examples
Thirst, sex, hunger
Security, stability, protection
To escape loneliness, love and be loved, and gain a
sense of belonging
Self-respect, the respect others
To fulfill one's potentialities
Another scientist who tried to find an answer for above mentioned question is Frederick
Herzberg. After an intensive analysis of the experiences and, feelings of 200 engineers in
nine different companies, from this research, Herzberg suggested a two-step approach to
understanding employee motivation and satisfaction:
1. Hygiene Factors: Hygiene factors are based on the need to for a business to
avoid unpleasantness at work. If these factors are considered inadequate by
employees, then they can cause dissatisfaction with work. Hygiene factors include:
company policy and administration, technical supervision, interpersonal
relationship with supervisors, interpersonal relationship with peers, interpersonal
relationship with subordinates, salary, job security, personal life, working
conditions and status.
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Use a hierarchical scale. Where one stage must first be fully or largely completed
before advancing to the next stage.
Are based on the argument that "we behave as we do because we are attempting to
fulfill internal needs."
Specify the criteria as to what motivates people. However, this is controversial
because people from different cultures have different values and norms, therefore
have different criteria to those things which are more important.
Herzberg's hygiene idea corresponds with Manslow's Physiological, Safety and
Belongingness needs i.e. they both have the same critieria (basic pay, work
conditions etc...)
Also, Herzberg's motivators idea corresponds with Manslow's Esteem and SelfActualisation needs i.e. they both have the same criteria (recognition, growth,
achievement etc...).
Both theories are influenced by environmental conditions, employee attitudes and
as a result, their motivation. These influence an employees performance.
Maslow says that each stage of the 5 must be fully or largely completed before
advancing to the next stage..however, Herzberg suggested that there were only 2
stages (hygiene and motivators) instead of 5.
Maslow said that fulfilling each stage is a motivator, however Herzberg said that
fulfilling the hygiene stage only results in an employee being in neutral state and
that satisfaction and motivation only comes from the 2nd stage (motivator).
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Essentially, Theory X assumes that people work only for money and security.
Theory Y makes the following general assumptions:
Work can be as natural as play and rest.
People will be self-directed to meet their work objectives if they are committed to
them.
People will be committed to their objectives if rewards are in place that addresses
higher needs such as self-fulfillment.
Under these conditions, people will seek responsibility.
Most people can handle responsibility because creativity and ingenuity are
common in the population.
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McGregors theory X relates to the classical approach to management theory, which says
that the average human being has an inherent dislike of work and will avoid it if he can.
People need, and indeed prefer to be directed and controlled and managers should use
strict codes of conduct and punishments to keep employee behaviour in line.
Theory Y relates to the human relations approach to management theory, the idea that
managements task is to create an environment where employees can be innovative and
productive because they are at the very least satisfied in their work.
Subscribers to the Theory X approach believe in the command and control principle, the
idea that a top-down approach to management is the organizational structure for a
company. On the other hand we have the Theory Y approach which believes the job of
management is to facilitate and empower - workers should be given the best possible
environment to work in, and the best way to get them to do a good job is to give them a
good job to do.
Q3.Why is managing diversity significant. Explain.
Answer:
Fred Luthans has defined diversity as the presence of members of different ages, genders,
ethnic groups, and/or educational backgrounds in an organization.
In Workforce America! Managing Employee Diversity as a Vital Resource, diversity is
defined as otherness or those human qualities that are different from our own and
outside the groups to which we belong, yet present in other individuals and groups..
The Chancellor's Committee on Diversity defines Diversity as: "The variety of
experiences and perspective which arise from differences in race, culture, religion, mental
or physical abilities, heritage, age, gender, sexual orientation, gender identity and other
characteristics."
Dimensions of diversity include, but are not limited to: age, ethnicity, ancestry, gender,
physical abilities/qualities, race, sexual orientation, educational background, geographic
location, income, marital status, military experience, religious beliefs, parental status, and
work experience.
It's important to understand how these dimensions affect performance, motivation,
success, and interactions with others. Better management of diversity reduces costs,
improves staffing, improves marketing, promotes creativity, facilitates problem solving
and increases flexibility. Management of diversity requires managing cultural diversity,
individual diversity and workforce diversity. Since the composition of the workforce has
been changing over the past few years, managing diversity has become a challenge to
organizations.
The reasons for diversity are as follows:
1. Changing demographical structure of the workforce: The modern workforce
includes women, minorities, older employees and highly educated people. The
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increase in skills and education levels combined with the legal provision of equal
opportunity for all have led to an increase of diversity in workforce.
2. Government legislation: Legislation has made it binding on organizations to
provide equal opportunity for all employees, and this brought diversity in modern
organizations.
3. Enhances competitiveness of firms: the firms that adopt an affirmative
approach to recruiting people from diverse backgrounds have a talented and
capable workforce, and gain a reputation as fair employers are more likely to
attract employees.
4. Increasing globalization of firms: Managers and technical personnel who go to
a foreign country to put an organizational system in place will have to change their
leadership styles, communication patterns and other practices to suit the culture of
the foreign country. Those organizations which value diversity are in a better
position to work with people from different cultures, customs, and social norms
when they go global.
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CASE STUDY
I expect every manager in my department to act completely rational in every decision he
makes, declared Ishwar Dayal, Director Marketing in Overseas Plastics Ltd. Everyone
of us, irrespective of his position in the organisation has to be a professional rationalist
and I expect him not only to know what he is doing and why he is doing it, but also to be
right in his decisions. I know someone has said that a good manager needs to be right
only in more than half of his decisions. But that is not good enough for me. However,
one may be excused for an occasional mistake especially on matters beyond ones control
but no one can be pardoned for acting irrationally.
I endorse your views, Sir, said Indu Alluwalia, his Advertising Manager, and I always
try to be rational and logical in my decisions but would you mind helping me to be sure of
this by explaining what rational decisions are?
Read and analyse the above case and answer the following questions:
(A)
Explain, how Mr. Ishwar Dayal might describe what is involved in making
rational decisions.
Answer:
Rational decisions are those decisions taken by a person after a cognitive process and
steps, where each step follows in a logical order from the one before. It is based on
thinking through and weighing up the alternatives to come up with the best potential
result.
A rational decision making presupposes that there is one best outcome. Because of this it
is sometimes called an optimizing decision making. The search for perfection is frequently
a factor in actually delaying making a decision.
Steps in a rational decision making model
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ASSIGNMENT C
Multiple choice questions
Q-1- Which of the following is a middle level function?
a)
b)
c)
d)
Administration.
Management. (
)
Organization.
Staffing.
Q-3- The analysis and measurement of actual operations against the established standards
developed during the planning process is called__________.
a)
b)
c)
d)
Controlling. (
)
Monitoring.
Leading.
Organizing.
Q-4- Which of the following theories ignored the concepts of leadership, motivation,
power, and informal relations?
a)
b)
c)
d)
Pre-Classical.
Classical. (
)
Behavioral.
Modern.
Q-5- __________ Managers deals with the actual operation of an organizations units.
a)
b)
c)
d)
First-level.
Top-level.
Middle-level. (
)
Link-level.
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a)
b)
c)
d)
Conceptual.
Design.
Human. (
)
Technical.
Q-7- Under which system does a workers wage increases in proportion to the output
produced?
a)
b)
c)
d)
Time-and-motion study.
Piece-rate incentive system. (
)
Micromotion study.
Gantt chart.
Decentralization.
Stabilization.
Centralization.
Organization.
Q-9- The two major managerial practices that are emerged from Taylors approach to
management are the piece-rate incentive system and __________________
a)
b)
c)
d)
Q-10- Weber coined the term ________ to identify large organizations tat operated on a
rational basis .
a)
b)
c)
d)
Autocracy
Dictatorship
Bureaucracy (
)
Diplomacy
Functions (
)
Products
Territory
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Staffing
Recruitment
Selection (
)
Function
Geographical (
)
Matrix
Subsidiary
Programs.
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b)
c)
d)
Policies. (
)
Budgets
Projects.
Q-18- Which one of the following is the first step in the planning process?
a)
b)
c)
d)
Establishing objectives. (
)
Analyzing opportunities.
Determining planning premises.
Identifying alternatives.
Q-20- When developing a contingency plan, manager should not try to_____________.
a)
b)
c)
d)
Rigidity.
Flexibility. (
)
Inelasticity.
Invariability.
Q-22- The management function, that involves setting goals and deciding how best to
achieve them is known as___________.
a)
b)
c)
d)
Planning. (
)
Organizing
Leading.
Controlling.
Q-23- Generally strategic plan` is an important aspect of the jobs of ________ managers.
a)
Operation-level.
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b)
c)
d)
Middle- Level.
Top-level. (
)
At all levels
Ideas
Human mind (
)
Time horizon
Process
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Top
Middle
Lower (
)
Directors.
Formal organization. (
)
Informal organization.
Line organization.
Staff organization.
Centralized .
Decentralised.
Equally distributed.
None of the above.
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First
Last (
)
Both (a) and (b)
Neither (a) nor (b).
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