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EXERCISE CHAPTER 1
QUESTION
a) State FOUR (4) principles of management based on Henri Fayol.
i.
ii.
iii.
iv.
v.

Division of Labor
Authority
Discipline
Unity of Command
Centralization

b) Differentiate between policies,goal and objective in management.

i.

Policies
Policies are general statements which guide or channel thinking in decision making of
subordinates. Policies delimit an area within which a decision is to be made and assure
that the decision will be consistent with and contribute to objectives. Policies are based
on analysis and once pronounced avoid repeated analysis.

ii.

Goal

iii.

Goal represent the rate at which objectives of an organization are achieved. Goal quantity
the objective with a time frame. For example, if a country has the objective of switching
to unconventional sources of energy, the goals could specified as so many gigawatts of
energy by end of year 2012.

Objectives
Objectives are the ends toward which the activity of an organization is aimed.

c) Explain briefly about types of organization structure below:

i.

Line, military or scale organization

Is a simple and oldest type of organization followed in an organization. Under line
organization,each department is generally a complete self-contained unit.

ii.

Functional organization
The division of labour in an organization is grouped by the main activities or functions
that need to be performed within the organization-sales, marketing, human resources, and
so on.
Each functional group within the organization is vertically integrated from the bottom to
the top of the organization.
For example, a Vice President of Marketing would lead all the marketing people, grouped
into the marketing department.
Project organization
Project is separated from the rest of the parent system.
Becomes self contained unit.
The professionals are deputed for the project.

iii.

d) Give TWO (2) advantages of each types of organization structure (b) i, ii, iii.
i.

Advantages of line, military, or scalar organization

Simplicity
Division of authority and responsibility

ii.

Advantages of functional organization

Benefit of specialization
Reducing the work load

iii.

Advantages of project organization

PM has full line authority over the project
High level of commitment

e) Explain THREE (3) basic principles of scientific management that has been introduced by Federick W.
Taylor.

Each task must be scientifically designed so that it can replace the old, rule of thumb methods.
Workers must be scientifically selected and trained so that they can be more productive.
Division of labor and cooperation between management and workers.

f) Give your opinion regarding the process of management as below:

i.

Planning

Planning is usually interpreted as a process to develop a strategy to achieve

desired objectives, to solve problems, and to facilitate action.
Planning is the to success, stability and prosperity in business. It acts as a fool for
solving the problems of a business unit.

ii.

Organizing
Organizing as a function of management involves synchronization and
combination of human, financial and physical resources in order to get results.
Organizing is often carried out by a manager.
It provides suitable administrative structure and facilitates execution of proposed
plan.

iii.

Controlling
Controlling is one of the managerial functions like planning, organizing, staffing
and directing. It is an important function because it helps to check the errors and
to take the corrective action so that deviation from standards are minimized and
stated goals of the organization are achieved in a desired manner.
It is necessary in the case of individuals and departments so as to avoid wrong
actions and activities.