Q:no:1: Discuss importance of planning in organizations.

Briefly describe
types of plans.

Answer:

Planning:

Every organization whether government, a private business or a startup needs

planning in order to achieve desired outcomes. Planning refers to formulating
organizational objectives and establishing strategies to achieve those goals in a
specific time period.

Importance of planning:

Planning is essential at all levels of organization because planning provides

foundation to execute organizations goals and objectives effectively. Managers
cannot achieve any objective without planning because it is a primary function of
organizational management. Planning gives direction to managers in order to
achieve organization goals and objectives. Planning is necessary because it:

1. Increases Productivity
2. Minimizes Risks
3. Promotes Coordination
4. Provides Right Direction
5. Helps in monitoring

Increases Productivity:

Planning ensures the optimal use of all the resources. It decreases the wastage of
important assets thus it makes the goal or objective cost effective which in return
improves the overall effectiveness.

Minimizes risks:

Risks and businesses are interrelated. It is very difficult to avoid these risks but
planning enables managers to forecast business related risks and to eliminate them
by taking effective measures.

Promotes Coordination:

Planning provides proper coordination among all the departments of organizations

and from top to bottom management. Proper planning involves engaging every
department and employee in achieving organizational goal.
 Provides Right Direction:

Direction refers to providing accurate and authentic information, precise guidelines

and valuable guidance to employees. Planning thus provide proper direction to
achieve organization goals and objectives.

Helps in monitoring:

Monitoring is very essential to implement plans effectively. Controlling and

monitoring helps managers to evaluate and compare subordinate’s performance
with the plans if they observe any deviation they align it with the help of planning.

Types of Plans:

There are four types of plans:

1. Strategic Plans
2. Tactical Plans
3. Operational plans
4. Contingency plans

Strategic Plans:

Strategic plans are long term plans generally in which company forecasts where it
wants to be in next three, four, five years. Strategic plans are formulated by the top
management such as CEOs or Presidents they plan and execute these plans. Strategic
plans provide guidelines and framework for lower level planning.

Tactical Plans:

Tactical plans are usually for shorter span of time and they have small scope as
compare to strategic plans. Tactical plans are normally concerned with lower level
management and what should each department do in order to achieve long term goals.
Tactics basically supports strategic plans.

Operational Plans:

Operational plans are usually formulated to support tactical plans. These are formed by
the managers and team leads. Operational plan can be for one time or it may be ongoing
plan. Operational plans are for managers to accomplish their job duties and
responsibilities.
 Contingency plans:

Successful management always have contingency plans because they are flexible and
open to change. Contingency plans are used when the existing plans seems impossible
to continue due to changing circumstances.

Q:no:2: What criticism has been levelled against scientific approach to

management? How the scientific approach to management is compared with
behavioral approach?

Answer:

Scientific Management:

Scientific Management is an approach which involves using the scientific method to

describe the “One best way’ to do the job. Scientific management theory was given by
the FREDERIK W. TAYLOR. He is also known as the father of scientific management.
Theory of FREDERIK W. TAYLOR gained immense popularity in the world of
management. His ideas spread in the to other countries and inspired others to
understand and work on his ideas. His most known followers were FRANK and LILLAIN
GILBRETH.Despite this that his theory gained much popularity and managers still uses
the work of his followers in the modern world it got plethora of criticism too. There are
many limitations to the theory.

Criticism of Scientific management:

Taylor scientific method received criticism at the time of its birth and afterwards. By
the 1930s,40s it had extensively dropped out of support. The succeeding segment
critically evaluates Taylor’s scientific management and discusses the drawbacks it has:

1. Labor exploitation
2. Lack of Unity of command
3. Mechanical Approach
4. Distinct planning from doing
5. Individualistic Approach
6. False assumptions
7. Limited Application

Labor Exploitation:

Taylor scientific management gave more importance to productivity and profits rather
than workers. Labor was treated as machines which resulted in labor anger because it put
them under immense pressure.
Lack of Unity of command:

Taylors scientific approach lacked unity of command which gave birth to confusion and
chaos in the organization. The workers were required to report to all bosses which
overrule the unity of command in which you only have to report to only one boss.

Mechanical Approach:

Taylor scientific management lacked human element. Workers were treated as robots the
only concern was the efficiency and outcome, Workers were forced to do work faster at any
cost.

Distinct Planning from Doing:

Taylor theory suggested to separate planning from doing which in reality is indispensable
desired outcomes can only be achieved if the planner is continuously involved in
implementing.

Individualistic Approach:

The success of an organization depends on team work not on individual performance. But
Taylor theory suggested the opposite it had emphasis on Individual performance.

False Assumptions:

Taylor theory assumed that workers can only be motivated through financial incentives
where as in reality workers need consideration, respect and social needs.

Limited Application:

Taylor scientific approach was quantitative in nature. The performance of the workers was
measured by quantitative approaches hence it has narrow application it can only be used in
factories it cannot be applied in service sector.

Scientific Approach Vs Behavioral approach:

Scientific Approach is related to working methods whereas behavioral approach refers to

the human behaviors. Below is the comparison of both:

Scientific Management Behavioral approach

1. Scientific management emphasis on 1. Behavioral approach emphasis on
scientific methods of doing work. It factors which affect human behavior
is more concerned about work at work place.
efficiency.
 2. Its only focus is on ow to achieve
results effectively and efficiently.
3. In scientific approach there is no
connection between job
responsibilities and worker skills
and abilities.
4. Relationship between managers and
workers are bitter and lack
communication.
2. It focuses on human skills rather
than technical skills.
3. Behavioral approach believes in
engaging employees in decision
making process at all levels
4. In behavioral approach social needs
and human relation are primary
factors.

Q:no:3: Briefly comment upon contemporary theories of motivation.

Contemporary Theories of Motivation:

Answer:

In the beginning all motivational theories were based on assumption, they were not
supported by strong evidence and studies. One fine example is Maslow Hierarchy of Needs
Hence alternative theories of motivation have been developed overtime. There are six
motivation theories which are listed below:

1. Self Determination Theory

2. Goal Setting Theory
3. Self-Efficacy Theory
4. Reinforcement Theory
5. Equity Theory
6. Expectancy Theory

Self Determination Theory:

Self determination Theory refers to the human psychology, motivation and personality. It
states that people inherit growth tendencies. It argues that human motivation comes from
with in there is no external influence and interference.

Goal Setting Theory:

Goal Setting Theory states that challenging goals motivates employee to achieve them
which improves workplace environment it is also necessary that goals are achievable and
realistic and aligned to organization success.

Self-Efficacy Theory:
Self-Efficacy theory states that it is about individual confidence and belief that how well he
can perform about a task. It is an individual confidence to control motivation, behavior and
environment.

Reinforcement Theory:

Reinforcement theory aims at achieving desired motivation by reinforcement it can be both

reward or punishment. The desired results are obtained through positive or negative
reinforcement.

Equity Theory:

Equity Theory is based on the idea of the development of audiences that individuals are
encouraging justice, and if they identify non-equality in the data or output data of their and
their referral groups, they want to adjust their invoice to achieve their equality.

Expectancy Theory:

This theory emphasizes the need for organizations to correlate rewards directly to
performance and to ensure that the benefits offered are those rewarded and desired by the
recipients

Q;no:4: Briefly describe how marketing strategy is formulated?

Marketing Strategy:

Marketing startegy forecast the future needs of marketing department and develop
strategies in order to meet organizational goals and objectives. Marketing strategy process
involves seven steps which are:

1. Understand Customer
2. Analyze Market
3. Analyze Competition
4. Research distribution
5. Define Marketing Mix
6. Financial Analysis
7. Review and Revise

Understand Customer:

Company should have a clear picture and understanding of its target customer through
intensive marketing research and analysis. It is very important to understand customer
sentiments and need while developing a marketing startegy.

Analyze Market:
Before formulating and implementing any market strategy managers should first analyze
all market trends and growths related to their business.

Analyze Competition:

Analyze all the competitors present in the market search for all the choices your target
customer has and evaluate strength and weaknesses of each competitor.

Research Distribution:

Research Distribution refers to finding the best possible way to distribute your products to
your target customers it will impact sales strategy.

Define Marketing Mix:

Use of marketing mix to have a clear picture of your product, price, placement and
promotion and align it with your marketing strategies.

Financial Analysis:

While developing a marketing strategy it is very essential to keep in mind financial budget
allocated and their respective returns, costs, customer acquisition.

Review and Revise:

It is advised to closely monitor the effectiveness of your marketing strategy and revise if
needed.

Q:NO:5: Discuss product attributes. Product can be differentiated on the basis of

product attributes. Explain.

Answer:

Product Attributes:

Product attributes refers to those characteristics which defines a particular product

features to affect consumer buying decision. Product attributes can be tangible or
intangible in nature. They are added to a product to shape customer buying behaviour on
the basis of these attributes.

1. Tangible Attributes.
2. Intangible Attributes.

Tangible Attributes:

Tangible attributes are those characteristics of a product which can be seen, touched or felt
such as size, colour, weight, volume.

Intangible Attributes:
Intangible attributes can include such product characteristics such as price, quality,
reliability, beauty etc.

Attributes that can Differentiate the Products:

The most common attributes that differentiate products are as follows:

1. Product Features
2. After sales services
3. Technological Innovation
4. Reputation
5. Manufacturing Consistency
6. Status Symbol

Products Features:

The physical properties and capabilities of a product can be an important form of

differentiation. For example, Sony Bravo has developed a television that can display six
channels on the same HDTV (plasma) with a 52-inch screen. Nokia's high-end GSM
handsets can perform multitasking operations such as sending and receiving faxes, emails,
pictures, data files, capturing videos, taking snapshots and transmitting them worldwide,
and music.

After Sales Services:

Comfort and service quality can be crucial factors in selecting alternative products. Dell
computers attract customers who value an efficient global network of service centres and
troubleshooting experts working in 24-hour mode.

Technological Innovation:

Technology provides the foundation for competitive advantage across a broad range of
businesses. Blackberry GSM handsets with Bluetooth technology have captured the image
of mobile phones as the best device to meet all customer needs, from entertainment (music,
movies, photos, videos), web browsing, data creation and transmission, etc.

Reputation:

An excellent reputation can be an important source of revenue. In the PC market, PCs

assembled in 2000 dominated the sale due to the price advantage. Brand PCs, however,
merged and formed the customer overall. Meanwhile, their share has risen from 6 to 45
percent due to the trust they have placed in people with their reputation and brand names
for timely support, warranty, and post-sale assurance.

Manufacturing consistency:
This is particularly important in the manufacture of components that must intermesh to
produce finished products. This need led to a stronger emphasis on Statistical Process
Control (SPC) and a wide range of quality controls.

Status symbol:

If the company succeeds in creating a unique and desirable feature for its goods or services,
it builds brand loyalty among customers, reduces the number of alternative products that
customers consider, and reduces the price sensitivity of the buyer. These results lead to
higher profit margins and allow the acceptance of lower market shares, since mass
marketing is usually incompatible with the exclusive image of premium-priced products.

Q:no:6: What is integrated marketing communication? Comment on its major

components.

Answer:

Integrated Marketing Communication:

Integrated marketing communication is about taking every activity together related to

marketing. It involves coordinating every marketing strategy and activity related to firm’s
customer. Integrated marketing communication is quite essential for todays manager in
order to survive in the competitive environment. Its main function is to merge every aspect
of marketing into one message. Listed below are some components of integrated marketing
communication:

1. The Foundation
2. The Corporate Culture
3. Brand Focus
4. Consumer Experience
5. Communication Tool

The Foundation:
In this stage managers perform an extensive analysis of target market and customer.
Marketers should know the brand, vision as well as its customer and offerings. They also
need to know competitor’s strategy and the needs and expectations of customers.
The corporate Culture:
Marketers should keep the corporate culture and vision of the company in mind and align
its product and services according to them. The features should relate to organization
mission and vision.

Brand Focus:
Brand focus is to market in a decent way not to bombarded the customer with too many tag
lines and advertisements which will eventually confuse them. Try not to give everything
because it will waste your resources and and your messages will be vague and not effective.
Consumer Experience:
Marketers should keep in mind consumer experience which is how customer feels and
perceive the product or service. Products and services should meet the expectations of the
customer for an effective implementation of marketing strategy.
Communication Tool:
Communication tools include various advertising modes for a particular brand, e.g. As
advertising, direct sales, advertising on social media such as Facebook, Twitter, Orkut, etc.
Q:no:7: What does a company need to do to achieve strategic fit between the supply
chain and competitive strategies?
What is strategic fit:
Strategic fit refers to the degree to which a company utilizes its resources and capabilities
in order to exploit opportunities in the external environment. It is possible through a good
strategic plan which means to have actual and enough resources to support and execute
the plans.
Achieving Strategic Fit:
The strategic match between competitive strategy and supply chain strategy relates to the
correspondence between customer needs to be met by the competitive strategy and supply
chain capabilities to be built with the supply chain strategy. It is said that there is no one
function which can ensure success of the chain but one function can possible fail the whole
chain.
Achieving strategic fit the greater the implicit demand uncertainty, the more responsive a
supply chain needs to be. More responsive supply chains are more expensive supply chains.
In direct comparison with less responsive but more efficient supply chains, their costs can
be excessively high.
Extending the Supply Chain Optimization and Strategic Adaptation Framework Company
Internal Optimization: The closest framework in which strategic customization and
optimization can be attempted is operation within a functional area within a company.
Internal Scope: When the competitive strategy and supply chain strategy are in place.
Coordinated with all operational functions of the company and in a holistic approach,
which includes inventory of raw materials, production processes, inventory and inventory,
as well as transportation, the scope is limited to Group-internal functional level extended.
Enterprise Scope: At this level Scope Level: The activities of the entire enterprise are
considered and modelled as a single system, and optimization is performed and business
profit maximized. Enterprise Interop rational Scope: The Maximum Supply Chain Surplus:
At this level of optimization and customization, the entire supply is captured Chain is
modelled and optimized as a system Customization and fit are designed to maximize supply
chain surplus. Flexible intercompany functionality: Flexibility refers to the dynamic
situation. Physically, supply chain participants are changing, products are changing,
technologies are changing, facilities are constantly changing. Mathematically, there are
changes in the number of variables and variable values. A supply chain that is able to make
optimizations and adjustments dynamically is a flexible supply chain with a comprehensive
range of functions.
Q:no:8: There are several basic techniques managers use for appraising the
performance of employees. Discuss these techniques.

Answer:

What is Performance Appraisal:

Performance appraisals are performance measuring tools by which organizations evaluates

and measures the effectiveness and efficiency of their employee in order to meet their
goals. Performance appraisals are required in because every employee has different
behaviour towards handling the work. Performance appraisals improves employee
engagement, work performance, communication and determining employee capabilities.
Different Techniques of Performance Appraisal:
There are three main approaches in appraisal methods:
1. Absolute Standard
2. Relative Standards
3. Management by Objectives (MBO)
Absolute Standards:
In absolute standards an employee performance is measured against established standards
and evaluation is independent of any other employee. There are further six methods of
performance appraisal:
 Critical Incident Appraisal
 Checklist Appraisal
 Graphic Rating Scale Appraisal
 Forced choice Appraisal
 Behaviourally Anchored Rating Scales (BARS)
 360 Degree
Critical Incident Appraisal: In this method performance is measured by specific events or
incidents in which the employee has done really good and needs improvement.
Checklist Appraisal: In this method appraisers have a questionnaire and he evaluate the
performance of employee on those questions by ticking Yes or NO.
Graphic Rating Scale Appraisal: In this method of performance appraisal, appraiser rates
employee on a number of job-related factors in a continuum.
Forced Choice Appraisal: Appraiser ponder set of statements that appear to be equally
favourable, then choose the statement that best describe the employee.
Behaviourally Anchored Rating Scales (BARS): In this method appraiser rates employee
on factors that are defined by behavioural descriptions illustrating various dimensions
along each rating scale.
360 Degree:360-degree appraisal method involve feedback from employee peers’
managers subordinates.
Relative Standards:
In this method appraiser uses methods which have pre-determined distribution. Following
are the methods used in relative standards:
 Group Order Ranking
 Individual Ranking
 Paired Comparison
Group Order Ranking: Employees are placed in a classification reflecting their relative
performance such as ‘Top one Fifth’.
Individual Ranking: Employees are ranked from highest to lowest.
Paired Comparison: In this method evaluation is done pairwise each employee and job is
compared to other.

Management by Objectives:
Management by Objectives (MBO) is a performance management approach that seeks to
balance the goals of employees with the goals of an organization. The Essence of Peter
Drucker's Basic Principle: Management by Objectives is to set common goals and give
feedback on the results.
Q:no:9: Discuss the nature and scope of finance and financial management and also
its role in financial efficiency.
Financial Management:
Financial management concerns the acquisition, financing, and management of assets with
some overall goal in mind. It has three major areas:
 Investment Decision
  Financing Decision
 Asset Management Decision
Finance is the backbone of any business because for every business money is required to
fulfil the expenditures. However, they are limited hence they should be spent wisely and
efficiently in order to achieve the set goals and objectives. Further we will discuss the
nature and scope of finances and financial management. Financial management is an
organic function of every company. Every organization needs finance to procure physical
resources, carry out production and other business operations, pay compensation to
suppliers, and so on.
Scope of Financial Management:
Some of the major scope of financial management are as follows:
1. Investment Decision
2. Financing Decision
3. Dividend Decision
4. Working Capital Decision
Investment Decision:
The investment decision involves risk assessment, measuring the cost of capital and
estimating the expected benefits of a project. Investment planning and liquidity are the two
main components of the investment decision. The capital budget deals with the allocation
of capital and the funds tied up in fixed assets, which would lead to future revenues.
Financing Decision:
While the investment decision involves a decision about the composition or mix of assets,
the financing decision affects the financing mix or the financial structure of the business.
Fundraising requires decisions on funding methods and sources, the relative proportion
and choice between alternative sources, the timing of the initial public offering of
securities, etc. In order to meet its investment needs, an entity may raise funds from
various sources.
Dividend Decision:
In order to achieve the goal of wealth maximization, an appropriate dividend policy must
be developed. One aspect of dividend policy is deciding whether all profits should be
distributed in the form of dividends or whether some of the profits should be distributed to
maintain equilibrium. In determining the optimal pay-out ratio (share of profit available for
distribution to the shareholders).
Working Capital Decision:
The resource decision is related to the investment in current assets and current liabilities.
Current assets include cash, receivables, inventories, short-term securities, etc. Current
liabilities consist of creditors, trade payables, outstanding expenses, overdrafts, etc. Short-
term assets are assets that can be converted into cash within a year. Likewise, short-term
liabilities are those liabilities whose maturity is probable within one financial year.
Q:no:10: What is difference between leader and manager and identify important
approaches to effective leadership?
Difference between Leader and Manager:
The main difference between a leader and manager is that people follow leaders because
they get inspired from them where as managers have people who work for them. It is very
important for a business owner to possess both leadership and managerial qualities for a
successful business.

Leader Manager

 Focus on People  Focus on things

 Do the things right  Do right things

 Influence  Organize

 Motivate  Direct

 Build  Control

 Shape Entities  Follow rules

Important Approaches to Effective Leadership:

There are three main approaches to effective leadership:

1. Trait Approach
2. Functional Approach
3. Behavioral Approach

Trait Approach: The trait approach argues that leaders are born not made. They are born
with certain leadership qualities which are God gifted these cannot be learned.

Functional Approach: Functional Approach states that leadership can be learned and
developed. It examines how the leader behavior influences his followers.
Behavioral Approach: It focuses on the behavior of people in leadership positions, the
importance of leadership and how it affects group performance.