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Principles of Management

1. Definition 0f management?
Management is the art and science of getting work done through people. It is the
process of giving direction and controlling of various activities of people
to achieve the objectives of organization.
Management is the art of knowing what do you want to do and then seeing that is d
one in the best cheapest way.
2. Skills needed for managers:
Technical skill
1. It refers to the ability to the tools, equipment procedure and technique
2. Effective supervision and co-ordination of the work a group members or s
Human skill
1. It refers to the ability of the manager to work effectively as a group m
embers and to build co-operative effort in team leaders.
2. Needed to understand people.
Conceptual skill
1. It is also called as design and problem
2. To see the organization and the various component of it as whole
3. To understand how its various parts and functions mesh together
3. Different approaches of management
1. System approach
2. Contingency approach
System approach
Like a human organism an organization in a system. In an organization also peopl
e task and management are independent.
System concepts
System theory was first applied in field of science and engineering.
Contingency approach
The Contingency approach is called as situational approach. It is develo
ped by managers, consultant and researchers who tried to apply for real life sit
uation. Some management concepts are different and are very effectively in one s
ituation. The same concept is failed in another situation. Results or solutions
differ because situations differ.
In this approach the managers identify which is suitable technique for a particu
lar solution. Particular environment of the organization at a specific time.
4. Comparison between art and science.
It is a systematic body of knowledge with array of principles.
1. It is the application of skill in finding desired results.
2. Management is both science and art:
3. It contains general principle
4. It also an art because it require certain personal skills to achieve des
ired result.
5. Functions of management
1. Planning
2. Organizing
3. Staffing
4. Co ordinating
5. Controlling
6. Management level and functions.
1. Top-level management
2. Middle level management
3. Lower level management
Top level management functions
1. To formulate goals and policies
2. To formulate budgets
3. To appoint top executives
Middle level management functions.
1. To train motives &develop supervisory level
2. To monitor and control the operations performance
Low level management
1. To train &develop workers
2. To assign job
3. To give orders and instructions
4. To report the information about the workers
7. What to you mean by social responsibility& social responsiveness?
Corporate social responsibility is seriously considering the impact of t
he companys action on society.
Social responsiveness means the ability of a corporation to relate its op
erations & policies to the social environment in ways that are mutually benefici
al to the company and to society.
8. What is institutionalizing ethics& how it can be accomplished?
Institutionalizing ethics means applying & integrating ethical concepts
in to daily actions. This can be accomplished in three ways.
1. By establishing appropriate company policy or a code of ethics
2. By using a formally appointed ethics committee
3. By teaching ethics in management development programs
9. What is ethics? What are the types of ethics explain?
Ethics is defined as the discipline dealing with what is good & bad and
with moral duty & obligation.
The three types of ethics are.
Personal ethics:
The rules by which an individual lives his or her personal life.
Accounting ethics:
The code that guides the professional conduct of accountants.
Business ethics:
Concerned with truth& justice & has a variety of aspects such as expectations of
society. Fair competition, advertising, public relations, social responsibility
, consumer autonomy & co-operate behavior.
10. What are the arguments against the social involvement of business?
1. Social involvement may reduce economic efficiency.
2. Social involvement would create excessive costs for business, which cann
ot commit its resources for social action.
3. Social involvement can weaken the international balance of payment.
4. it may leads to the hike in prices of the commodities
5. Incomplete support for involvement in social action &&disagreement among
groups will cause friction.
6. There is a link of accountability of business to society.
11. What is tows metrics?
The tows metrics is a conceptual frame work for a systematic analysis,
which facilitates matching the external threats and opportunities with the inter
nal weakness & strength of the organization. In the tows metrics T stands for thre
ats stands O for opportunities W for weakness and S for strength.
12. Defining planning premises?
Planning premises are defined as the anticipated environment in which pl
ans are expected to operate. They include assumptions or forecasts of the future
& known conditions that will effects the operation of plans.
13. List out the social responsibilities of managers?
? Responsibilities towards share holders.
? Responsibilities towards employees
? creditors
? government
? suppliers.
? competitors
? general public
14. What is social audit?
Social audit involves a commitment to systematic assessment of the companys main
activities that have a social impact reporting to the society on relevant issues
. Every voluntary social program ends with a social audit social encompasses eve
ry possible area, such as pollution control, training & development promotion of
minorities & so on.
15. Define code of ethics?
A code is a statement of policies, principles or rules that guide behaviors code
s of ethics should guide the behavior of persons in all organizations & in every
day of life.
16. List out the functions of ethics committee
1. Holding regular meeting to discuss ethical issues.
2. Dealing with gray areas
3. Communicating the code to all members of organization.
4. Checking for possible violations of the code
5. Enforcing the code.
17 what is planning?
Planning is a process of selecting the objectives & determining the cour
se of action required to achieve these objectives.
18. Important observations subjected about planning?
1. Planning is obtaining a future course of action in order to achieve an o
2. Planning is looking ahead.
3. Planning is getting ready to do something tomorrow.
4. Plan is a trap laid down to capture the future.
19. Define mission?
Mission may be defines as a statement which defines the role that an org
anization plays in the society.
20. Define policies?
Policies are general statement or understanding which provides guidance
in decisions making to various managers.
21. Explain in brief about the two approaches in which the hierarchy of objectiv
es can be explained?
There are two approaches in which the hierarchy can be explained.
1. top-down approach
2. bottom-up approach
in the top-down approach, the total organization is directed through cor
porate objective provided by the top-level management. In the bottom up approach
, the top level management needs to have information from lower level in the for
m of objectives.
22. Advantages of objectives:
1. Unified planning
2. Defining an organization
3. Direction
4. Individual motivation
5. Basis for decentralization
6. Basis for control
7. Co-ordination
23. Steps involved in MBO process:
1. setting preliminary objectives
2. fixing key result areas
3. setting subordinates objectives
4. matching resources with objectives
5. recycling objectives
6. Periodic resources with objectives.
7. Appraisal
24. features of MBO:
1. MBO tries to combine the long range goals of organization with short ran
ge of organization.
2. MBO involves participation of subordinate managers in the goal setting p
3. MBO increase the organization capability of achieving goals.
4. MBOS emphasis is not only on goals but also on effective performance.
25. Definitions of MBO:
According to GEORGE ODIORNE,MBO is a process where by the superio
r and the subordinates managers of an enterprise jointly identify its common goa
ls, define each individuals major areas of responsibility in terms of results ex
pected of him, and use these measures as guides for operating the unit and asses
sing the contribution of each of its members.
KOONTZ &WEIHRICH have defines MBO as follows:
MBO is comprehensive managerial system that integrates many key manageria
l activities in a systematic manner & that is consciously directed towards the e
ffective and efficient achievement of organizational and individual objectives.
26. Define strategy?
A strategy may be defined as special type of plan prepared for meeting t
he challenges posted by the activities o competitors and other environment force
27. Steps involved in strategic planning:
1. Mission and objectives.
2. Environmental analysis
3. Corporate analysis
4. Identification of alternatives.
5. Strategic decision making
6. Implementations review & control.
28. State the characteristic of a sound policy?
1. Relationship to organizational objectives.
2. Clarity of policy
3. A policy is a guide to thinking in decision making
4. Policies should be written
5. Communication of policies
6. Balance of policies.
7. Planned formulation.
29. List out the steps involved in formulation of policies:
1. Defining the policy area
2. Defining of policy alternatives.
3. Evaluation of policy alternatives.
4. Choice of policy
5. Communication of policy
6. Implementation of policy
7. Review of policy
30. Name the classification of planning premises?
1. Internal and external
2. Tangible and intangible premises.
3. Controllable and uncontrollable premises
31. State the importance of HRM?
1. To achieve competitive advantage over other organisation.
2. To improve the efficiency of the organisation.
3. For the fuller utilization of available resources.
4. Cost effective administration.
32. State the importance of staffing:-
1. It helps to make use of the Organisational resources.
2. It provides effective and efficient personals to the organisation.
3. Helps to discover talented and competent persons.
4. Helps to ensure uninterrupted flow of business.
33. Advantages of Organisational Chart:-
1. It shows the overview of staffing in organisation.
2. The manager ready for promotion can be identified.
3. Helps to predict future internal supply of managers.
4. Helps in transfer of manager internally to strengthen weak areas.
34. List some factors affecting span of control
1. Subordinates training requirement.
2. Clarity of delegation of authority.
3. Clarity of plans.
4. Use of objectives and standards.
35. Cross Relationship
It arises because of mutual interaction of subordinates working under co
mmon superior normally they are assuming this to be 6.
36. Classification of power
1. The legitimate power
2. Expert power
3. Reference power
4. Reward power
37. Define Decision Making
Decision Making is defined as selection of a course of action from among
alternatives. It is a core of planning. A plan cannot be said to exist unless a
decision a commitment of resources, direction or reputation has been made. Unti
l that point, there is only planning studies and analysis.
38. What are the three approaches in selecting an alternative?
1. Experience
2. Experimentation
3. Research and Analysis
39. Define Decision trees?
The best way to analyze a decision is by means of decision trees. In a d
ecision tree, the various chance events, decision points and probabilities invol
ved in various courses that might be undertaken are represented in the form of a
tree. The decision tree approach makes it possible to see the major alternatives
and facts that subsequent decision may depend upon.
40. Need of Departmentisation:-
Specialisation of works and the limitation of number of subordinates tha
t can be directly controlled by superior. If there is no departmentisation there
is a serious limitation of size of the organisation.
41. What is Departmentisation?
Departmentisation is a process of grouping the activity based on its sim
42. What are the types of Departmentisation?
1. By simple numbers.
2. Departmentisation by time.
3. Departmentisation based on enterprise.
4. Classification based on territory or geographical area.
5. Departmentisation by products.
6. Customer Departmentisation.
7. Market oriented Departmentisation.
8. Process or Equipment.
43. What are the three basic approaches to select among alternatives?
1. Experience
2. Experimentation
3. Research and Analysis
Relying on post experience, the choice among alternatives is selected to
avoid mistakes.
A firm may test a new product in a certain market before expanding its s
ale nationwide.
Research and Analysis:
The trend in research and analysis is simulation i.e. to develop mathema
tical tools.
44. What is cost Effectiveness Analysis?
Cost effectiveness Analysis is a technique for choosing the best plan wh
en the objectives are less specific than sales costs or profits. It means findin
g the least costly way of reaching an objective or getting the greatest value fo
r giving experiences. It is also called as Cost Benefit Analysis.
45. What is the principle of limiting factor?
Principle of limiting factor is given as By recognizing and overcoming th
ose factors that stand critically in the way of a goal, the best alternative cou
rse of action can be selected.
46. Define Organising?
Organising is an activity involves in analyzing the nature of job to be
performed grouping them, dividing into departments, divisions selections and tha
t can be assigned to various individuals and delicate authority to carry out the
47. Define Decentralisation?
The tendency to discuss the decision making in an organisation structure
. The fundamental aspect of Decentralisation is delectation of authority.
48. Advantages of Decentralisation?
1. It is a big relief to top managers.
2. It encourages the decision making.
3. It promotes the development of general manager.
4. Facilitates product diversification.
49. Define Scalar Principle:-
The clear the line of authority from the ultimate management position in
an enterprise to every subordinate position the clear will be the responsibilit
y for decision making and the more will be effective will be the organisation co
50. Define Policy
Policy of Decentralisation affects all area of management and it can be
looked upon an essential element of managerial system. Managers could not use th
e discursion to handle the ever changing situation they face.
51. What is Organisation Structure?
In organisation structure simply by means the systematic arrangement of
people working for the organisation. The organisation is concerned with establis
hment of positions and relationship between positions. The organisation structur
e has two dimensions.
1. Horizontal
2. Vertical
52. What do you mean by Organisation Culture?
It is the general pattern of behavior norms shared beliefs and values th
ere are unique for organisation. It is fairly stable and does not change fast. I
t often sets the tone for the company and establishes implied rules for the way
people should behave. Organisation culture even influences how individuals behav
e at work and hence will affect both individual and Organisational performances.
53. Benefits of Decentralization:-
1. Gives managers more freedom and independence in decision making.
2. It encourages decision making and assumption of authority and responsibi
3. Aids in adoption to fast changing environment.
4. Promotes development of general managers.
5. Facilitates product Diversification.
6. Promotes establishment and use of broad controls which may increase moti
54. Uses of Organisation Chart
1. The organisation chart pinpoints the weakness of an organisation. This w
ill helps to overcome the short coming of organisation.
2. It tells quickly who is responsible for particular function.
3. It is useful in showing nature of an organisation and changes if any in
the existing staff and new comers.
55. What are the types of Departmentation?
1. Departmentation by simple numbers.
2. Departmentation by Time.
3. Departmentation by Enterprise function.
4. Departmentation by Territory or Geography.
5. Customer Departmentation.
6. Process or Equipment Departmentation.
7. Departmentation by product.
56. Distinguish between authority and power
Power is the ability of individuals or groups to induce r influence the
belifs or actions of other persons or groups.
Authority in organisation is the right in a position to exercise discret
ion in making decisions and affecting others.
57. What are the different bases of power?
1. Legitimate Power
2. Referent Power
3. Reward Power
4. Coercive Power
58. Scalar Principle
The clear the line of authority from the ultimate management position in
an enterprise to every subordinate position, the clearer will be responsibility
for decision making and the more effective will be the organisation communicati
59. Functional Authority
It is the right which is delegated to an individual or a department to c
ontrol specified processes practices, policies or other matters relating to acti
vities, undertaken by persons in other departments.
60. Limitations of staff:-
1. Danger of undertaking line authority
2. Lack of staff responsibility
3. Thinking in a vacuum
4. Managerial problems
61. State any two merits of equity theory:
1. This theory makes managers realize that equity motive tends to be one of
the most important motives of the people in the organisation.
2. Feelings or perceptions in equity are important factor in work setting.
Management should take necessary steps to develop the perceptual skill of the pe
62. Mention the various factors involved in using motivational techniques:
1. Money
2. Participation
3. Quality of working life
63. What is job enrichment?
Job enrichment is therefore based on the assumption that in order to mot
ivate personnel, the job itself must provide opportunities for the achievement,
recognition, responsibility, advancement and growth.
64. What are the limitations of job enrichment?
1. Job enrichment is based on the assumption that workers want more respons
ibility. But, in practice, most of the workers may prefer less responsible jobs
with good social interaction. Such workers may show feelings of inadequacy and f
ear of failure to job enrichment.
2. Some jobs cannot be enriched beyond a certain point.
65. Give the required guidelines to make effective job enrichment.
1. Use job enrichment selectively after taking into account situational var
iables such as job characteristics, personal characteristics of employees, Organ
isational level etc.
2. Provide a supportive climate for innovation and change.
66. Who is a leader?
Leader is one who makes his subordinates to do willingly what he wants.
67. Define Leadership
Leadership is the process of influencing the behaviour of others towards
the accomplishment of goals in a given situation.
68. Mention the importance of Leadership
1. Motivating Employees
2. Leader develops team work
3. Better utilization of manpower
4. Creating confidence to followers
5. Directing group activities
6. Building morale
7. Maintaining discipline
69. State something about weakness of trait theory
1. There is no universal list of traits of successful leaders. It is theref
ore; very difficult to indicate what mix of traits is necessary to make an affec
tive leader. Individuals who never achieve leadership also possess some of the t
raits as successful leader.
2. Researchers simply provide the list of qualities. They fail to give the
scale to measure the qualities. It is not clear how high a score a person must a
chieve an a given trait to make it effective.
70. State Houses path goal approach
Leaders are effective because of the influence on followers motivation,
ability to perform and their satisfaction.
71. Name the various leadership styles.
1. Autocratic or Dictatorial leadership
2. Participative or Democratic leadership
3. Laissez faire or Free rein leadership
72. What are the advantages of democratic leadership?
1. The subordinates are motivated by participation in decision making proce
ss. This will also increase job satisfaction
2. Absence of leader does not affect output
3. Labour absenteeism and turn over will be minimum
4. The quality of decision is improved
5. The leader multiplies his abilities through the contribution of his foll
73. What is Laissez faire?
Complete freedom is given to the subordinates so that they plan, motivat
e, control and otherwise be responsible for their own actions.
74. What is Communication?
Communication is passing of information from one person to another perso
75. Mention the various elements in the process of communication
1. Sender
2. Communication Channels
3. Symbols
4. Receiver
5. Noise and feedback in communication
76. List the different types of communication flow
1. Downward Communication
2. Upward communication
3. Horizontal or Lateral Communication
77. Note down the various communication networks
1. Simple Chain
2. Wheel
3. Circular
4. Free flow
5. Inverted V
78. Differentiate Single and Multiple channel networks
S. No. Single Channel Communication Multiple Channel Communication
1. The Communication is allowed on only one path is called as line authorit
y. It is simply referred as through proper channel. The communication is all
owed in more than one path.
2. Communication flow is slow Communication flow is faster
3. Easy to maintain orderly in nature Potential problems may occur
4. Miscommunication is reduced Miscommunication in increased
79. Creativity refers to what?
Ability and power to develop new ideas.
80. What are the types of motivation?
1. Positive Motivation
2. Negative Motivation
3. Extrinsic Motivation
4. Intrinsic Motivation
81. Define Budgeting control?
A Budgeting control is defined as "a financial or quantitative statement, prepar
ed and approved prior to a defined period of time, of time policy to be pursued
during the period for the purpose of attaining a given object.
82. What is meant by Management Audit?
Management Audit is a systematic evaluation of the functioning, performance and
effectiveness of management of an organization. It is a thorough-going, critical
and constructive review of the quality of management.
83. What is PERT and CPM?
PERT is an event-oriented network because emphasis is given on important stages
of completion task rather than the activities required to be performed to reach
to a particular event or task. PERT is normally applied to projects of non-repet
itive nature.
CPM can be applied in an environment of certainty. It is deterministic.
And is suitable for establishing a trade-off for optimum balancing between sche
dule time and cost of the project.
84. What do you mean by the word Productivity?
Productivity is the ratio of output to some or all there sources used to produce
the output.
85. What do you mean by Quality Circle?
Quality Circles consists of a small homogeneous group of people doing
similar work, who voluntarily meet together regularly about an hour per week in
paid time under the leadership of their own supervisor to identify, analyze and
solve a problem.
86. What do you mean by Control?
Control is intended to ensure and make possible performance of planned activitie
s and to achieve the predetermined goals and results.
87) Define Budgetary Control?
According to ICMA, England "Budgetary Control is the establishment of budgets re
lating to the responsibilities of executives to the requirements of a policy and
the continuous comparison of actual with the budget to provide a basis for its
88. List out the various kinds of budget?
1) Functional Budget
2) Master Budget
3) Fixed Budget
4) Flexible Budget
5) Zero-base Budget
89. What do you mean by Master Budget?
A Master Budget is the summary budget incorporating all functional budgets. It i
s prepared with a view to coordinate the activities of various functional depart
90. What do you mean by Zero-base budgeting?
Zero-base budgeting is the latest technique aimed at cost reduction
and optimum realization of resources.
91. What is Feed Forward Control?
Feed Forward Control involves evaluation of input and corrective measures before
a particular sequence of operation is completed. It is based on timely and accu
rate information about changes in the environment.
92. What is Concurrent Control?
Concurrent Control is also known as "real-time" or steering" control. It provide
s for taking corrective actions or making adjustments while the programmes is st
ill in operation and before any major damage occurs.
93. List out the important features of controlling?
a) Function of Management.
b) Continuous function
c) Future -oriented and
d) Action-oriented.
94. What is Flexible Budget?
Flexible Budget is one which is designed to change in accordance with the level
of activity actually attained. It is suitable when the estimation of demand is u
ncertain and the enterprise works under conditions of lack of material and labor
95. What are the benefits of control?
1. Control eliminates actions which deviate or which is not in conformity w
ith the cherished goals of the firm.
2. It offers enough information for future planning and Organising.
96. List out the characteristics of Control function?
1) Functional Management
2) Continuous function
3) Future-oriented
4) Action-oriented
5) Measuring the performance and
6) Planning the control
97. What if Production?
Production is defined as the step by step conversion of one form of material int
o another form through manual, mechanical or chemical process to create or enhan
ce the utility of the product to the user.
98. What is production management?
Production management is the process of planning, Organizing directing a
nd controlling production activities of an organisation for the actual transform
ation of elements of input into marketable finished goods services.
98. What are the basic steps involved in the process of controlling?
1 establishment of standards
2 measurement of performance
3 comparing performance with the slandered
4 taking corrective action
99. What are the different technologies based productivity improvement technique
a) CAD
b) CAM
c) CIM
d) Robotics
e) Laser technology
f) Energy technology.
100) what is value engineering?
value analysis is also called value engineering is basically a cost redu
ctions technique which is the organisation and systematic study of every element
of cost in a part, material or service to make certain fulfills its functions a
t the lowest cost.