ANSWER KEY

1. Write short notes on joint sector undertaking.

Firms owned jointly by private parties and the Government constitute the Joint sector.

• Joint sector is a form of partnership between the private sector and the government
where management will generally be in the hands of private sector and overall
supervision will lie with the Board of Directors giving adequate representation to
Government representative.

• According to the guidelines of the Central Government, the capital is to be shared as

to state government 26%,Private Enterprise 25% and Investing Public 49%. No single
– private party shall be allowed to hold more than 25% of the paid –up capital without
the permission of the Central government.

• Joint Sector Undertakings ensure the use of development technology and resources of
government and private sector.

Gujarat State Fertilizers Company, Indian Telephone Industries Ltd., Hindustan Machines
Tools, Cochin Refineries, Indian Rare Earths Ltd., Praga Tools Corporation, Maruti Udyog are
examples for joint services sector.

2. Write short notes on partner in profits.

A person may become a partner for sharing the profits . He contributes capital and is also
liable to third parties like other partners. He is not allowed to take part in the management
of the business. Such partners are associated for their money and goodwill.

3. Write short notes on company limited by shares.

• In this type of company the liability of members is limited to the value of the shares
held them.

• In case a member has paid the full value of the shares, he owes no further liability to
the company.

• In case of partly paid shares the liability of members is limited to the unpaid amount on
the shares held by them.

• In India, most of the companies belong to this category.

 4. Define management and state any two characteristics of management.
(1 definition and 2 characteristics, whichever you feel is easy).

Peter F. Drucker defines, Management is an organ, organs can be described and defined only
through their functions.

Henry Fayol defines, To manage is to forecast and plan, to organize, to compound, to co-
ordinate and to control.

F.W. Taylor defines, Management is the art of knowing what you want to do and then seeing
that it is done in the best and cheapest way.

The American Management Association, The art of getting things done through other
people.

1. Art as well as science : Management is both an art and a science. It is an art in the sense
of possessing of managing skill by a person. In another sense, management is the science
because of developing certain principles or laws are applicable in a place where a group of
activities are co-ordinated.

2. Management is an activity : Management is the process of activity relating the effective

utilization of available resources for production. The term resources includes men, money,
materials and machine in the organization.

3.Management is a continuous process – The process of management mainly consists of

planning, organizing, directing and controlling the resources.

• The resources (men and money ) of an organization should be used to the best advantage
of the organization and the objectives to be achieved.

• Any one management function alone cannot produce results in the absence of other
basic functions of Management. So management is a continuous process.

4. Management achieving pre-determined objectives- The objectives of an organization are

clearly laid down. Every managerial activity results in the achievement of objectives fixed well
in advance.

5.Organised activities – Management is a group of organized activities. All the organizations

have their own objectives. These objectives will be achieved only by a group of persons. These
persons activities should be organized in a systematic way to achieve the objectives. The
objectives cannot be achieved without any organized activities.

6. Management is a factor of production – The factors of production includes land , labour ,

capital and organization. These factors could not realise the organizations goals. The
organizational goals are achieved only when these are effectively co-ordinated . The co-
ordination job is done by the management.

7.Management as a system of activity

• A system may be defined as a set of component parts working as a whole. Individuals

are part of the working system.

• An individual has some goals as a member of the organization.

• There may be a conflict between his own goals and the managements expectations from
that individual. Such conflict is resolved by the management by ensuring balance between
individual goals and organizational expectations.

• Authority is vested with many persons to take decisions and influence the behaviour
of the subordinates.

8.Management is a discipline- The boundaries of management are not exact as those of any
other physical sciences. It may be increased by the continuous discovery of many more aspects
of business enterprise. So, the management status as a discipline is also increased in the same
manner.

9.Management aims at maximizing profit – The available resources are properly utilized to
get desired results. The results should be the maximizing profit or increasing profit by the
economic function of a manager.

10.Universal Application – The principles and practices of management are applicable to every
type of industry.

5. What is standing or multiuse plan?

• These are the recurring plans and they are used repeatedly in situations of a similar
nature.

• A standing plan is a standing guide to recurring problems and it is used again and again.

• Objectives, policies , procedures, and rules are important standing plans.

 6. What is single use or ad hoc plan?

• A single –use plan is used once and then it is discarded.

• It is designed to meet the demands of a specific situation and is scrapped when the
situation is over.

• Programme , budget , schedule project, etc are examples of single –use plans.

7. State any two natures of planning.

The nature if planning can be visualized from the following features of planning.
1.Planning is Goal –oriented
• Planning is not an end in itself. Rather , it is a means towards the accomplishment of
objectives.
• Planning has no meaning unless it contributes in some positive way to the
achievement of desired goals.
• All plans emanate for efficient planning. Thus ,planning is goal-oriented.
2.Planning is a Primary Function
• Planning is the basis of the management process. All other functions of management
are designed to attain the goals set under planning.
• Planning provides the basis for efficient organizing, staffing, directing and
controlling.
• It precedes the execution of all other functions. Without planning there is nothing to
organize , no one to actuate and no need to control.
3.Planning is All-pervasive
• Planning is the function of each and every manager irrespective of the level and area
of his / her occupation. It is the job of all managers in all types of organizations.
• Planning is an essential ingredient in management at all executive levels. However,
the scope , extent and the nature of planning tend to decrease as we descend towards
the lower levels of management.
• Managers at the top level prepare long term plans for the company as a whole ,
middle-level managers formulate departmental and functional plans for medium-term.
• At the lowest level managers prepare operating and short – term plans.
4. Planning is an Intellectual process
 • Planning is a mental process involving imagination, foresight and sound judgment.
• It is not guesswork or wishful thinking.
• It requires a mental disposition of thinking before doing and acting in the light of
facts, rather than guesses.
5.Plannig is a Continuous Process
• Planning is an on going and dynamic exercise. As the assumptions and events on
which plans are based on change , old plans have to be revised or new ones have to be
prepared.
• As a manager carries out his functions, he continues to plan, revising his old plans and
choosing alternative plans as the need arises.
6.Planning is Forward-looking
• All planning is done with an eye on future.
• Planning involves looking ahead and preparing for the future. Therefore , forecasting
is the essence of planning.
• Forecasting involves assessing the uncertain future and making provision for it.
• A plan is really a synthesis of various forecasts. No plan can be prepared without
knowledge of future events.
• Planning is an attempt to see through the uncertain future.

7.Planning Involves choice

• Planning is basically a problem of decision making or choosing among alternative
course of action.
• Planning presupposes the existence of alternatives. There is no need for planning if
there is only one way of doing something .
• Plans are decisions made after evaluation of alternative courses of action.
8.Planning is an Integrating Process
• Planning does not just happen, it has to be initiated.
• Planning is a structured process and different plans constitute a hierarchy.
• Different plans are interdependent and interrelated.
• Every lower level plan serves as a means towards the end of higher plans. This is
known as the ends means chain.
• Planning is a item bound concept and every plan has a definite time horizon.
9.Planning is Directed Towards Efficiency
Planning has no relevance if it does not facilitate the achievement of objectives economically
and efficiently.
8. What is management by Objectives?
Management by objectives (MBO) is a management model that aims to improve performance
of an organization by clearly defining objectives that are agreed to by both management and
employees. According to the theory, having a say in goal setting and action plans should
ensure better participation and commitment among employees, as well as alignment of
objectives across the organization. The term was first outlined by management guru Peter
Drucker in 1954 in his book "The Practice of Management."

A key tenet of management by objectives is the establishment of a management information

system to measure actual performance and achievements against the defined objectives.
Practitioners claim that the major benefits of MBO are that it improves employee motivation
and commitment, and ensures better communication between management and employees.
However, an oft-cited weakness is that MBO unduly emphasizes the setting of goals to attain
objectives, rather than working on a systematic plan to do so.
Basic Principles
Peter Drucker set forth several principles. Objectives are determined with the employees and
are challenging but achievable. There is daily feedback, and the focus is on rewards rather
than punishment. Personal growth and development are emphasized, rather than negativity
for failing to reach the objectives.
Peter Drucker believed MBO was not a cure-all, but a tool to be utilized. It gives
organizations a process, with many practitioners claiming the success of MBO is dependent
on the support from top management, clearly outlined objectives, and trained managers who
can implement it.

Putting it Into Practice

MBO calls for five steps that organizations should use to put the management technique into
practice. The first step is to either determine or revise organizational objectives for the entire
company. This broad overview should be derived from the firm's mission and vision. The
next step is translating the organizational objectives to employees. Drucker used the acronym
SMART (Specific, Measurable, Acceptable, Realistic, Time-bound) to express the concept.
In step 2, a key component of the objectives was that they are measurable in order for
employees and managers to determine how well these were met. Lastly, progress is evaluated
and rewarded. This step includes honest feedback on what went well and what did not.
Step three is stimulating the participation of employees in setting objectives. After the
organization's objected are shared with employees, from the top to the bottom, employees
should be encouraged to help set their own objectives to achieve these goals. This gives
employees greater motivation since they have greater empowerment. The next to last step is
to monitor the progress.
9. Forecasting ,Coordination (unit – 4, file name: forecasting)
10. Controlling (unit – 4, file name: unit IV controlling)
11. Staffing (unit – 4, file name: unit IV staffing)
12. Direction ( unit – 4, file name: unit IV directing)
13. Selection ( unit – 5, file name: Recruitment, selection, induction…….)
14. Span of Control
• Span of control means the number of people reporting directly to a position.
• The principle of span of control implies that no single executive should have more
people looking to him for guidance and leadership than he can reasonably be expected to
supervise.
• It is said that control is efficient when number of subordinates reporting directly to a
manager is small.
• If the number of subordinates reporting directly too one superior is large. Supervision
and control become loose.
• But when the number is very small control may become too tight and full use of the
superiors ability may not be made.
15. Delegation of Authority (unit – 4, file name: unit IV Delegation of authority)
16. Span of Management
• Span of Management or span of control refers to the number of subordinated which a
manager can supervise and control effectively. It is also known as Span of supervision.
• There is a limit to the number of persons which a person can supervise and control
effectively.
• The problem of span arises because an executive has limited time, limited attention
and limited mental and physical energy.
17. Short notes on Centralisation (unit – 4, file name: unit IV Delegation of
authority)
 18. Decentralisation (unit – 4, file name: unit IV Delegation of authority)
19. Business Process Reengineering
• BPR means a dramatic change which refers to the overall management of
organizational structure, management systems, employee responsibilities, incentive systems,
skill development and use of information technology.
• BPR potentially create substantial improvements in quality, customer service and
other business objectives.
• BPR can actually produce revolutionary improvements in business operations. Re-
engineering can help an aggressive company to stay on top or transform an organization on
the verge of bankruptcy into an effective competitor.
20. Learning organization
Contribution of Peter Senge – Learning Organization

In 1990, Peter Senge published "The Fifth Discipline" (later followed by "The Fifth
Discipline Fieldbook: Strategies and Tools for Building a Learning Organization" in 1994).
His books pulled together his extensive research into what different organisations do to build
learning capacity – and why some organisations use learning better than others.

Senge codified these practices into what he called 'The 5

Learning Disciplines' as well as coming up with the
concept-label of 'learning organisations'.

"A learning organisation discovers how to tap people's

commitment and capacity to learn at all levels…where people
continually expand their capacity to create the results they truly
desire, where new and expansive patterns of thinking are
nurtured, where collective aspiration is set free and where people
are continually learning how to learn together.” Peter Senge

More than merely a business best-seller, The Fifth Discipline propelled Senge into the front
row of management thinkers, created a language about change all kinds of companies could
embrace, and offered a vision of workplaces that were humane and built around a culture of
learning.

Like any ideal, the perfect ‘learning organisation’ is not an attainable goal, but rather a
desirable and useful set of guiding ideas and principles for people and organisations to aspire
towards. There’s more to being a learning organisation than just amassing knowledge. Every
organisation creates and uses knowledge. The challenge is that few seem to actually learn
how to manage it, apply it, grow through it and use it effectively.

There’s no one correct formula -- different organisations try different processes, strategies
and systems to share learning, acquire knowledge and turn it into the capacity to learn for
change, re-learn and continually improve. There are, however, some key elements that all
learning organisations have in common. Senge sorted many of these into 5 key learning areas
or themes, he called 'The Five Disciplines'.

The 5 Leadership Learning Disciplines in brief are:

Shared Vision: The key vision question is ‘What do we want to create together?’. Taking
time early in the change process to have the conversations needed to shape a truly shared
vision is crucial to build common understandings and commitments, unleash people’s
aspirations and hopes and unearth reservations and resistances. Leaders learn to use tools
such as ‘Positive Visioning’, 'Concept-shifting’ and ‘Values Alignment’ to create a shared
vision, forge common meaning/focus and mutually agree what the learning targets,
improvement strategies and challenge-goals should be to get there.

Mental Models: One key to change success is in surfacing deep-seated mental models -
beliefs, values, mind-sets and assumptions that determine the way people think and act.
Getting in touch with the thinking going on about change in your workplace, challenging or
clarifying assumptions and encouraging people to reframe is essential. Leaders learn to use
tools like the 'Ladder of Inference' and 'Reflective Inquiry' to practise making their mental
models clearer for each other and challenging each others' assumptions in order to build
shared understanding.

Personal Mastery is centrally to do with ‘self-awareness’ – how much we know about

ourselves and the impact our behaviour has on others. Personal mastery is the human face of
change – to manage change relationships sensitively, to be willing to have our own beliefs
and values challenged and to ensure our change interactions and behaviours are authentic,
congruent and principled. Leaders learn to use tools like 'Perceptual
Positions' and 'Reframing' to enhance the quality of interaction and relationship in and
outside their teams.

Team Learning happens when teams start ‘thinking together’ – sharing their experience,
insights, knowledge and skills with each other about how to do things better. Teams develop
reflection, inquiry and discussion skills to conduct more skillful change conversations with
each other which form the basis for creating a shared vision of change and deciding on
common commitments to action. It’s also about teams developing the discipline to use the
action learning cycle rigorously in change-work. Leaders learn to use tools like the 'Action-
Learning Cycle' and 'Dialogue' to develop critical reflection skills and conduct more robust,
skillful discussions with their teams and each other.

Systems Thinking is a framework for seeing inter-relationships that underlie complex

situations and interactions rather than simplistic (and mostly inaccurate) linear cause-effect
chains. It enables teams to unravel the often hidden subtleties, influences, leverage points and
intended/unintended consequences of change plans and programs and leads to deeper, more
complete awareness of the interconnections behind changing any system. Leaders learn to
use 'Systems Thinking Maps' and 'Archetypes' to map and analyse situations, events,
problems and possible causes/courses of action to find better (and often not obvious) change
options/solutions.

Working with the 5 Disciplines

Sometimes it’s difficult to work out where to start work on the 5 Disciplines. Some say they
just want to ‘do Systems Thinking’ or ‘work on a Shared Vision’ and leave Personal Mastery
or Team Learning out of the picture. Trouble is – they can’t, because as you may have
realised, all the Disciplines are inter-linked.

Do I need to build a Shared Vision first with my team? But hold on – I can’t really do that
until we start having better conversations (Team Learning). Can I start by using Systems
Thinking to map out with my team a few problems that keep repeating themselves at work?
But wait – they’ll need to understand assumptions and Mental Models if that’s going to be
worthwhile…
 Because of their inter-connected nature, it doesn’t matter where you start. The Disciplines are
like 5 fingers of the same hand. This doesn’t mean trying to work with all 5 Disciplines at the
same time. There’s nothing wrong with concentrating on one (and we say no more than 2 at
a time) of the Disciplines first and working your way onto the others serial fashion.

21. Explain the challenges for Indian Business in new millennium

1.Impact of Globalization

Impact of Globalization leads to strategic challenges of mixed cultures and languages of in

the business environment. Globalization will bring cross –border work culture.

2. Managing Across Borders

The ability of an organization to survive and succeed in the transnational workforce and
borderless business environment. Challenges in, managing enterprise in worldwide production
environments.

3.Revolution of Information Technology

Revolution of Information Technology supported by a new world infrastructure of data

communications and tele-communications i.e, use of internet ,wireless e-commerce as part of
management tools and easing of technology transfer. Security issues with wide usage of
internet platform in business transactions.

4.The Knowledge Worker

Increasing demand for knowledge worker in the knowledge driven organizations. The new
industries differ from the traditional modern industry in that they will employ predominantly
knowledge workers than manual workers.

5.Corporate Strategy

Organizations must have a structure that help to unleash the power of their professionals and
to capture the opportunities of recent economy.

6.Ethical Issues

Understanding the new ethical issues emerged from changes in the social and political
landscape and from the development of new technologies.
7. Social Responsibility

It is obligations the organization has to the society in which operates.

8.Ecological Issues

Oil exploitation and land rights, food security, mining , climate vulnerability and eco –
tourism will also be a challenges for business in new millennium.

9.Changes in work place Environment

Changes from fixed contracts to more negotiated relationships.

Large rise in part time and temporary workers.

Employees will demand greater flexibility and work life balance.

Office structures will be moving towards club environments, space for meeting, brainstorming
etc.

Leisure facilities like shops , eateries, dry –cleaning ,creche facilities ( day care ) must be given
for employees.

10.Enterprise Mobility

Enterprise mobility will be a one of the challenges in managing business in new millennium.
Enterprise mobility is commonly defined as the process of extending business applications/
solutions through the use of wireless technology which can be Wireless LAN (WLAN),
Cellular Mobile or other technologies such as wireless broadband.

11.Maintain and contribute to a sustainable socio-economic environment

Recycling of waste and pollution control will be a necessity to preserve the socio-economic
environment.

12. Improved Organization Management

The leader of the organization has to eliminate internal competition, alignment of

measurement and reward systems, training and empowering employees to act on the scene and
communicate critical problems without delay and to get rapid organizational response.

13.Stressful Environment
 Working on parallel projects, tight schedules and deadlines, high workload, demanding
customers and client, increasing global competition, high degree of flexibility and availability-
those are important key factors that characterize and coin the dynamic work environment of
business in the new millennium.

14. Competitive Work Environment

International competition , globalization and modern technology have promoted

organizations to consider downsizing, restructuring and outsourcing as business strategies and
hence making the work environment more competitive than ever before working under these
conditions will lead to high pressure that is burden on professional within an organization.

22. Explain Recent trends in Business world

Recent Trends in Business World

Now a days various trends and perspective are available and which enhance the
organizational growth. The trends and perspective are as follows.
1. Core Competence
2. Total Quality Management
3. The Zero Defects Issue
4. Bench Marking
5. Enterprise Resource Planning (ERP)
6. Strategic Alliances
7. Business Process Re-engineering (BPR)
8. New Modes of Information Technology
9. Core Competence
• Core competence for an organization are aspects in which the organization is perfect.
• Core competencies can be in various fields like technical – know –how, a reliable
process and close relationship with customers and suppliers. It may also include
promoting product development or culture.
• In the long run, if an organization is to be competitive in the global market, then it
will have to bring high quality and low cost of products to market faster than its
competitors.
 • Organizations acquire high degree of competitive advantage only by building core
competencies.
• Core competency which is a combination of technology, process and experience. For ,
example : Honda has a core competence in engines, which gives it a competitive
advantage in diverse products like car , motor cycle and generator. The invention of
Honda are the product of core competency of this organization which are developed
out of organization command over several technologies.
• To build core competencies it is not necessary for organizations to invest heavily in
research. Organization should commit to look for relevant technologies in its field,
develop human expertise to understand technologies and work on them like building
blocks.
• This helps an organization to have basis strength to sell out any product based on
demands of changing time and patterns.
• Organizations that always make it a policy to manufacture the crucial components of
their products instead of outsourcing them result into building core competence in
their business.
2. Total Quality Management
• Improvement in quality of products and services is known as total Quality
Management.
• Organization have realized that improvements in products, services, business
processes and people are unavailable and improving quality is the single greatest
factor in achieving market success.
• Instead of trying to increase the sales to gain profit which increases operating cost ,
quality improvement becomes a shortcut to improved profits.
• Improvement in quality enhances the sales indirectly by generating customer demand.
• Total Quality Management thereby result in Zero Defects in quality of products ,
services and business processes.
3.Bench Marking
• Bench marking process involves looking both inside and outside the organization for
ways of improving the organizational performance.
4.The Zero Defect Issue
• Zero defect is doing what we agreed to do as per the customer needs. This implies
training a positive attitude and a plan. Zero Defect is a reality and a goal too.
 • Doing right the first time should become a standard performance. The preventive
action guards against errors and prevents from passing them to the customers. For
this people employed has to be his own inspector. The employee one who know
more about the operational side should be encouraged to come out with suggestion
to avoid errors.
• In addition, improving procedures and documents would help in application of Zero
defects.
• Perfectionism is oriented towards meeting the customer needs.
5. Enterprise Resource Planning ( ERP)
• ERP is essential for survival of any organization to keep its operational efficiency at
the peak.
• With the advent of information technology, there have been efforts to utilize it for
improving all kinds of industrial and commercial activities.
• But the latest trend is the total integration of information technology with operational
domains.
• (ERP) helps to achieve such integration with remarkable results in terms of
productivity.
• ERP is sometimes defined as an integrated suite of application software modules,
which provide adequate information for enhancing the productivity and
competitiveness .This is achieved by optimizing the use of 4Ms resources: Men ,
Material and Money.
6. Strategic Alliances
• An organization should try to exploit opportunities and overcome threats that are
present in its environment.
• Strategic alliances with the environment involve exploiting opportunities and
overcoming the threats.
• In this process, organizational strengths are multiplied and weakness are reduced.
• Strategic alliance with the environment needs to be carefully planned and tact fully
executed.
• The term strategy refers to the art of commanding and managing resources to attain a
decisive advantage through exploitation of opportunities and overcoming threats of
the environment.
7. Business Process Re-engineering ( BPR)
 • BPR means a dramatic change which refers to the overall management of
organizational structure, management systems, employee responsibilities, incentive
systems, skill development and use of information technology.
• BPR potentially create substantial improvements in quality, customer service and
other business objectives.
• BPR can actually produce revolutionary improvements in business operations. Re-
engineering can help an aggressive company to stay on top or transform an
organization on the verge of bankruptcy into an effective competitor.
8.New Modes of Information Technology
• The revolutionary changes in the information technology is sweeping across the
global business.
• New information technology modes include electronic mail , corporate and public
database, application systems , fax , video and computer conferencing.
• Technology experts are anticipating that the internet and the world wide web would
become the centre of commercial universe.

23. Describe the basic functions Management

Functions of Management
1. Planning- Planning is the most basic or primary function of management.
• It precedes other functions because a manager plans before he acts.
• Planning involves determining the objectives and selecting a course of action to
achieve them.
• It implies looking ahead and deciding in advance what is to be done, when and where
it is to be done, how it is to be done.
• Planning is a mental process requiring the use of intellectual faculties, foresight,
imagination and sound judgment.
• It consists of forecasting, decision-making and problem solving.
• A plan is a predetermined future course of action. It is todays design for tomorrow
and an outline of steps to be taken in future.
The process of planning consists of
• determining of objectives
• forecasting and choice of a course of action
 • formulation of policies , programmes ,budgets, schedules etc to achieve the
objectives.
• laying down of procedures and standards of performance.
Planning may be long term or short term. Planning is a pervasive function and managers at
all levels have to prepare plans.
Planning enables us to do things in an orderly and efficient manner.
It is helpful in more effective achievement of goals. Planning enables an organization to face
uncertainty and change.
2. Organizing – Once plans are formulated, the next step is that of organizing.
• Organizing is the process of establishing harmonious authority-responsibility
relationship among the members of the enterprise.
• It is the function of creating a structure of duties and responsibilities.
• The network of authority- responsibility relationships is known as organization
structure.
• Such structure serves as the frame work within which people can work together
effectively for the accomplishment of common objectives.
Organizing is an important element of management because it is through organizing that a
manager brings together the material and human resources required for achievement of
desired goals.
According to Fayol , to organize a business is to provide it with everything useful to its
functioning- raw materials ,tools , capital and personnel.
A sound organization helps to avoid duplication of work and overlapping of effort. However
an organization structure is not an end in itself. It should therefore be designed to fit into
the needs and objectives of the particular enterprise. It should ensure material and human
order.
The process of organizing consists of the following steps:
• determining and defining the activities required for the achievement of planned goals.
• grouping the activities into logical and convenient units.
• assigning the duties and activities to specific positions and people.
• delegating authority to these positions and people.
• defining and fixing responsibility for performance and
• establishing horizontal and vertical authority relationships throughout the
organization.
3. Staffing – Staffing is the process of filling all positions in the organization with
adequate and qualified personnel.
• According to Koontz and O Donnell, The managerial function of staffing involves
manning the organizational structure through proper and effective selection,
appraisal and development of personnel to fit the roles designed into the structure.
• Staffing consists of manpower planning, recruitment , selection, training,
compensation, integration and maintenance of employees.
• Staffing function has become important with growing size of organization ,
technological advancement and recognition of the human factor in industry.
4.Directing
• Directing is the managerial function of guiding, supervising, motivating and
leading people towards the attainment of planned targets of performance.
• In the process of directing his subordinates, a manager takes active steps to ensure
that the employees accomplish their tasks according to the established plans.
• Directing is the executive function of management because it is concerned with the
execution of plans and policies.
• Directing initiates organized action and sets the whole organizational machinery into
action. It is therefore the life spark of an organization.
Directing function of management embraces the following activities:
• issuing orders and instructions
• supervising (overseeing) people at work
• motivation i.e creating the willingness to work for certain objectives
• communication i.e establishing understanding with employees regarding plans and
their implementation and
• leadership or influencing the behaviour of employees.
5. Controlling
Controlling is the process of ensuring that the organization is moving in the desired
direction and that progress is being made towards the achievement of goals.
The process of controlling involves the following steps:
• establishing standards for measuring work performance
• measurement of actual performance and comparing it with the standard
• finding variances between the two and the reasons there of and
• taking corrective action for correcting deviations so as to ensure attainment of
objectives.
Managerial and Operative Functions
Operative functions include production, marketing , purchasing ,financing , personnel etc.
operative functions are also known as the functional areas of business.
Managerial functions are essential in all organizations irrespective of their nature and size.
Managerial function include planning , organizing, staffing , directing, controlling.

24. Explain/Discuss the various stages involved in planning process

The various stages in the process of planning are as follows:
1.Establishing Objectives
• Plans are the means to achieve certain ends or objectives. Therefore, establishment of
organizational objectives is the first step in planning.
• The process of planning begin with the enunciation of goals and objectives in clear
cut and unambiguous terms.
• The objectives are set in the light of the opportunities perceived by managers.
• Establishment of goals is also influenced by the values and beliefs of executives.
2.Developing the Planning Premises
• Before plans are prepared, the assumptions and conditions underlying them must be
clearly defined. These assumptions are called Planning premises and they can be
identified through accurate forecasting of likely future events.
• Assessment of environment helps to reveal opportunities and constraints. Analysis of
internal and external forces is essential for sound planning. Planning premises are the
critical factors which lay down the boundary for planning.

Planning premises can be of three types:

1.Controllable Premises
Controllable premises are under the control of management, e.g., policies , objectives and
resources of the enterprise.
2. Semi-controllable premises
Semi-controllable premises are partially under the management control. e.g., union
management relations which are partially influenced by industry practices and government
policy.
3. Non-controllable premises
It refers to external forces like Government policy , political situation , etc which are beyond
the control of an individual enterprise.
3.Developing and Evaluating Alternatives
• After establishing the objectives and the planning premises, the alternative plans are
developed. Then the various alternatives are compared and evaluated in terms of their
merits and demerits.
• The objectives and environment of the organization should be kept in view while
appraising alternatives towards the achievement of objectives.
• Cost risk and resources associated with different alternatives should also be
considered.
• Imagination and foresight are required to generate and evaluate policy alternatives.
4.Choice of Course of Action
After evaluating the various alternatives, the most appropriate course of action is chosen as
the plan. This is the point of decision-making.
5.Preparing Operating Plans
• After the formulation of policies and strategies the derivative or supporting plans are
prepared. Several medium –range and short-range plans are required to implement
policies and strategies.
• These plans consist of procedures , programmes , schedules , budgets and rules. Such
plans are required for the implementation of basic plans.
• Operational plans reflect commitment as to methods, time ,money etc. These plans
are helpful in the implementation of long-range plans.
• Along with the supporting plans, the sequence of activities is determined to ensure
continuity in operations.
6. Integration of Plans
• Different plans must be properly balanced so that they support one another.
• Review and revision may be necessary before the plan is put into operation.
• Moreover the various plans must be communicated and explained to those responsible
for putting them into practice.
• Established plans should be reviewed periodically so as to modify and change them
whenever necessary.

25. Explain the essential features of sound system of control. (couldn’t find the exact
answer)
26. Explain the process of Motivation (unit – 5, file name: motivation)
27. Explain the principles of Management given by Henry Fayol
The list of fourteen principles of management given by Henry Fayol is widely
accepted. These principles are given below:
1. Division of Work
• Division of work or specialization of labour belongs to the natural order. It helps a
person to acquire an ability and accuracy with which he can do more and better work
with the same effort.
• Therefore the work of every person in the organization should be limited as far as
possible to the performance of a single leading function.
• The principle of division of work can be applied at all levels in the organization.
Discuss briefly the various approaches to the study of management
2. Authority and Responsibility
• According to Fayol, responsibility is a natural consequence of and a corollary to
authority. Therefore there should be a partly between the two.
• Authority is not to be conceived of apart from responsibility and wherever authority
is exercised responsibility arises
3. Discipline
• Discipline is defined as respect for agreements which are directed at achieving
obedience, application, energy and outward marks of respect.
• It must prevail throughout an organization as it is essential for smooth running of the
enterprise.
• It depends upon good supervision , clear and fair agreements and judicious
application of penalties.
4. Unity of command
• Every subordinate should receive orders and be accountable to only one superior.
• Fayol states that as soon as two superiors wield their authority over the same person
or department, uneasiness makes itself felt.
• Dual or multiple command is a perpetual source of conflict. It undermines authority
puts discipline in jeopardy, disturbs order and threatens stability of organization.
• Unity of command avoids conflicting orders and ensues order and stability in the
organization. It is also helpful in fixing responsibility.
5.Unity of Direction
• According to this principle, each group of activities having same objective must have
one head and one plan.
• The principle of unity of direction seeks to ensure unity of action. Unity of direction
should not be confused with the unity of command.
• Unity of command pertains to the functioning of the body corporate, the departments
or divisions comprising the organization.
• Unity of command cannot exist without unity of direction but does not flow from it.
6. Subordinate of Individual to general Interest
• Efforts should be made to reconcile individual interests with common interests.
• When there is conflict between the two, the interests of the organization should
prevail over individual interests. This requires continuous and exemplary supervision
and fair agreements.
7.Remuneration of personnel
The amount of remuneration and the methods of payment should be just and fair
and should provide maximum possible satisfaction to both employees and employers.
8.Centralisation
• According to Fayol, the question of centralisation and decentralisation is a matter of
finding the optimum degree for the particular concern.
• The degree of concentration of authority should be based upon optimum utilisation of
all faculties of the personnel.
• It should be determined on the basis of individual circumstances in each case.
9.Scalar Chain
• Scalar chain refers to the chain of superiors ranging from the ultimate authority to the
lowest level in the organization. There should be a clear line of authority ranging from
top to bottom of the organization.
• All upward and downward communication should flow through each position of
authority along the scalar chain.
• The chain of command should be short circuited only in special circumstances when
it is essential to make the communication fast and effective.
10. Order
• This principle is concerned with the arrangement of things and the placement of
people. In material order, there should be a place for everything and everything
should be in its proper place.
• Similarly in social order, there should be an appointed place for everyone and
everyone should be in his or her appointed place.
• This kind of order requires precise knowledge of human requirements and resources
of the concern so that a proper balance may be created between them.
11. Equity
• Equity implies that employees should be treated with justice and kindness.
• Managers should be fair and impartial in their dealings with subordinates.
• They should adopt a sympathetic and unbiased attitude towards workers which are
essential for the successful functioning of every enterprise.
12.Stability of Tenure of Personnel
• Employees cannot work efficiently unless job security is assured to them.
• Time is required for an employee to get used to new work and succeed in doing it
well.
• An employee cannot render worthwhile service if he is removed from the job before
he gets accustomed to it.
13. Initiative
• Employees at all levels should be given the opportunity to take initiative and
exercise judgement in the formulation and execution of plans.
• Initiative refers to the freedom to think for oneself and use discretion in doing work. It
develops the interest of employees in their jobs and provides job satisfaction to them.
14.Esprit de Corps
• This refers to harmony and mutual understanding among the members of an
organisation. Union is strength and unity in the staff is the foundation of success in
any organization.
• Management should not follow the policy of divide and rule. Rather it should strive
to maintain team spirit and cooperation among employees so that they can work
together as a team for the accomplishment of common objectives.
• Unity among the personnel can be developed through proper communication and co-
ordination.

28. Discuss briefly the various approaches to the study of management

(Unit – 3, file name: management thought)
Unit - V
27. What do you mean by HRM

28. Write short notes on Human Resource Development

29. Explain the characteristics of Human Resource planning

30. Write any two features of Human Resource Management

31. Write short notes on

Job Analysis
Job Specification
Job Description
Recruitment
Selection
Placement and Induction
Motivation
Training
360 Degree Feedback
Performance Appraisal
Compensation Management
Competency Mapping
32. Explain the process of Motivation
33. Explain the various methods of providing training to employees
34. Explain the Emerging Human Resource Techniques
35. Explain the various sources of recruitment.
36.Explain the Functions of Human resource Management
37. Explain the various sources of Recruitment
38.Explain the components of Compensation Management.