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Dear Bcom (Regular) Students & CA Students,

These notes are a summarized version of questions prepared from


the past papers. These notes are mainly for revision purposes.
Guess paper is also provided.
Do not wholly and solely depend on them.
It has a coverage from 2010 to 2014 (Regular).
Good luck for your exams.

Regards,
Sanam Alam

PREPRAPED BY: SANAM ALAM 1


Guess Paper
1) Define management. State briefly the universal functions of a manager.

2) Define planning. Discuss briefly the various steps involved in planning. Importance of Planning.
Barriers in Planning.

3) Define staffing. Describe briefly the various steps involved in staffing.

4) Define groups. How they grow? And how they flow? Types of Groups.

5) Explain policies, rules and procedures in detail.

6) Define decision making. State the guidelines of decision making. What is rational decision making?
Limitations of Rational Decision Making.

7) What is MBO? What are its characteristics and its objectives?

8) Define motivation and list various theories of motivation.

9) What is communication? What are the steps involved in communication? barriers to comm.

10) Explain briefly the phases of control. State the characteristics of a good control system.

11) Define Leadership. Types of Leadership. Qualities of a leader. Leadership styles. Difference
between Leader and a Manager.

12) Notes

a) Orientation & Training and Performance Appraisal.

b) William. G. Scot’s 4 pillars of organization

c) Budget & its types

d) Mc Gregor’s X & Y theory

e) Span of management

f) Hawthorn effect, Elton Mayo’s human relations theory

g) Management audit

h) Henry Fayol’s 14 principles of management

i) Role of Frederick. W. Taylor in management

j) Nominal group technique & Delphi technique

k) Abraham Maslow’s theory of humanistic approach about human need

l) 5 c’s of communication.

m) Line, Staff and Functional Organization.

n) Monetary and Non Monetary Incentives which can be used to motivate employees.

o) Staffing and its Process p) Coordination

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Q1. FW Taylor – Management thoughts
(2010, 2013)
 There should be a science for every element of work
 There should be technical training for workers
 Worker should be scientifically selected
 Give incentives along with wages to satisfy the worker
 Cooperation between workers and management
 There should be division and departments to enable specialization

Q2. Qualities of a Manager – Henri Fayol


(2010, 2012, 2014)
These are the five functions of management
1. Planning
2. Organizing
3. Commanding
4. Coordinating
5. Controlling

Managerial Qualities:
 Healthy mind
 Educated
 Sound health and physique
 Well experienced
 Good morales
 Self-Motivation
 Integrity
 Optimism
 Confidence
 Flexibility

Q3. Steps involved In problem solving


(2010, 2012, 2013)
 Definition of the problem
 Determine the Root Cause(s) of the Problem
 Develop Alternative Solutions
 Select a Solution
 Implement the Solution
 Evaluate the Outcome

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Q4. Guidelines for making effective decisions
(2010, 2012)
 Collect and understand the facts
 Consult your feelings
 Use wise timings
 Do not infer too much
 Get the right means of communication
 Keep the decision flexible
 Follow through
 Have courage

Q5. Planning (2010, 2011, 2012, 2013, 2014)

Planning:

A basic management function involving formulation of one or


more detailed plans to achieve optimum balance of needs or demands with the available resources.
The planning process
(1) identifies the goals or objectives to be achieved,
(2) Formulates strategies to achieve them,
(3) Arranges or creates the means required, and
(4) Implements, directs, and monitors all steps in their proper sequence.

Various steps of planning process:

 Develop objectives
 Develop tasks to meet those objectives
 Determine resources needed to implement tasks
 Create a timeline
 Determine tracking and assessment method
 Finalize plan
 Distribute to all involved in the process

Importance

(1) Planning Provides Direction


(2) Planning Reduces Risks of Uncertainty
(3) Planning Reduces Overlapping and Wasteful Activities
(4) Planning Promotes Innovative Ideas
(5) Planning Facilitates Decision Making
(6) Planning Establishes Standards for Controlling

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Limitations/barriers:
 Fear
 Short-sightedness
 Negativity
 Communication Barriers
 Poor Leadership
 Lack of Creativity
 Failure to integrate plans
 Unsystematic planning
 All managers not involved
 Over ambitious planning
 Planning not matched with practice
 Inadequate information

Q6. Policies. Guidelines for policy making


(2010)
Policy:
A policy is a deliberate system of principles to guide decisions and achieve rational outcomes. A
policy is a statement of intent, and is implemented as a procedure or protocol.

Guidelines for policy making:


 Policies must enhance profitability through customer satisfaction
 They must reflect organization’s objectives, goals, mission and vision
 Flexible and dynamic
 Not vague
 Shouldn’t leave any grey area

Q7. Basic elements/principles of organizing (William G scotts)


(2010, 2012, 2014)
 Division of labour (specialization)
 Scalar chain or functional process (effective chain of command)
 Span of control (number of persons a manager could directly manage)
 Structure (grouping of employees and departments helps in doing effective and efficient
supervision and outcome)

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Q8. Span of management and factors that have influence over it
(2010, 2013, 2014)
Span of management:
Also known as span of control or span of supervision. The number of subordinates which can be
handled by a manager.

Factors determining the span of management:


 Subordinate training
 Delegation of authority
 Planning
 Rate of change
 Use of objective standards
 Communicating techniques
 Personal contract
 Facility of staff assistance
Required factors:
 Training possessed by subordinates (they will need less help of the manager)
 Business dynamics and complexity (more complex, more need of manager is needed)
 Effectiveness of communication
 Effective Time utilization

Q9. Upward and downward communication


(2010)
Downward Communication

1. Implementation of goals, strategies, and objectives.


2. Job instructions and rationale.
3. Procedures and practices.
4. Performance feedback.
5. Socialization.

Upward Communication
1. Problems and exceptions.
2. Suggestions for improvement.
3. Performance reports.
4. Grievances and disputes.
5. Financial and accounting information.

Q10. Steps to control organizational activities


(2010, 2014)
 Establishing Standards
 Assessing performance
 Correcting deviations from standards or plans

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Q11. Characteristics of a good control system
(2010, 2013)
1. Accuracy
2. Timeliness
3. Flexibility
4. Acceptability
5. Economic feasibility
6. Strategic placement

Q12. Groups.
(2010, 2011, 2012)
“A group of two or more people created to achieve a common goal”
Types:
 Command group
 Interest group
 Task group
 Friendship group
Ranks:
 Leader
 Status seeker leader
 Followers

How do groups grow


 Mutual acceptance
 Decision making participation

Reasons for formation:


 Physical causes
 Economic reasons
 Security needs
 Social needs
 Esteem needs
 Self-actualization needs

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Q13. Various theories of motivation
(2010, 2014)

Motivation:
Motivation actually describes the level of desire employees feel to perform, regardless of the level of
happiness. Employees who are adequately motivated to perform will be more productive, more
engaged and feel more invested in their work. When employees feel these things, it helps them, and
thereby their managers, be more successful.

Theories:
 X & Y theory
 Theory Z
 Classical theory
 Two factor theory
 The need theory
 Human relation theory
 Process theory

Q14. Characteristics of Maslow’s self-actualized person


(2010)
 Accept the way things are easily
 Social
 Efficient judges of situation
 Creative
 Self-reliant and confident
 Willing to learn from others

Q15. Name theories of leadership & briefly explain


(2010, 2011, 2012, 2013)
 Trait theory
The traits approach gives rise to questions: whether leaders are born or made; and
whether leadership is an art or science. However, these are not mutually exclusive
alternatives. Leadership may be something of an art; it still requires the application of
special skills and techniques. Even if there are certain inborn qualities that make one a good
leader, these natural talents need encouragement and development. A person is not born
with self-confidence. Self-confidence is developed, honesty and integrity are a matter of
personal choice, motivation to lead comes from within the individual, and the knowledge of
business can be acquired. While cognitive ability has its origin partly in genes, it still needs to
be developed. None of these ingredients are acquired overnight

 Situational theory
o S1: Telling -
o S2: Selling -
o S3: Participating -
o S4: Delegating.

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 Follower theory
This theory is developed by F.H.Sanford. According to his theory, the subordinates or
members of the group accepts a person a leader who is always determined to meet their
expectations, hopes and aspirations, demands etc and fulfill their personal grievances.

Q16. Orientation and training


(2010, 2012, 2013)

Orientation:
It is mostly used to signify a peep and deep understanding of the company and making a sort of
overall understanding of company’s business and its trends and tendencies, past, present and future
perspectives.

Training:
It means imparting and educating managerial members for better skills and efficient working.
Methods of training:
 Lecture
 Cases
 Role playing
 Self-development

Q17. Short notes


1. Hawthrone effects (2010)
The Hawthorne effect (also referred to as the observer effect) is a type of reactivity in which
individuals modify or improve an aspect of their behaviour in response to their awareness of
being observed.[1][2] The original research at the Hawthorne Works in Cicero Illinois on
lighting changes and work structure changes such as working hours and break times were
originally interpreted by Elton Mayo and others to mean that paying attention to overall
worker needs would improve productivity. Later interpretations such as that done by
Landsberger suggested that the novelty of being research subjects and the increased
attention from such could lead to temporary increases in workers' productivity. This
interpretation was dubbed “the Hawthorne effect.”

PREPRAPED BY: SANAM ALAM 9


2. Henri Fayol & Principles of management (2010, 2011, 2012, 2013)

He contributed a lot of written work on management and literature. His theory on


principles of management has still importance today. He worked on the principles of
division of labour and divided an industry into 6 functional group of activities (Technical
or production, commercial, financial, business security, accounting, managerial).
According to him, managerial activities centres around 5 things (planning, organizing,
commanding, co-ordinating, controlling functions)
a. Division of
b. Authority
c. Discipline
d. Unity of Command
e. Unity of Direction.
f. Subordination of Individual Interests to the General Interest
g. Remuneration.
h. Centralization Scalar Chain
i. Order
j. Equity
k. Stability of Tenure of Personnel
l. Initiative
m. Esprit de Corps

3. Barriers to communication (2010, 2014)


use of jargon
barriers and taboos.
of attention, interest, distractions, or irrelevance to the receiver.
in perception and viewpoint.
disabilities such as hearing problems or speech difficulties.
barriers to non-verbal communication.
differences and the difficulty in understanding unfamiliar accents.
and prejudices which may lead to false assumptions or stereotyping.
differences.

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4. MBO (2010, 2011, 2012, 2013)

The principle of MBO is for employees to have a clear understanding of their roles and the
responsibilities expected of them, so they can understand how their activities relate to the
achievement of the organization's goals. MBO also places importance on fulfilling the personal goals
of each employee.

Proponents argue that benefits of MBO include:


1. Motivation
2. Better communication and coordination Clarity of goals
3. Subordinates tend to have a higher commitment to objectives they set for themselves than
those imposed on them by another person.
4. Managers can ensure that objectives of the subordinates are linked to the organization's
objectives.
5. Common goal for whole organization means it is a unifying, directive principle of
management.

Process:

1. Define organizational goals

2. Define employees objectives

3. Continuous monitoring performance and progress

4. Performance evaluation

5. Providing feedback

6. Performance appraisal

5. Types of budgets (2010, 2011, 2013)


 Revenue and expenses budget
 Time, space, material, product budgets
 Capital expenditure budgets
 Cash budgets
 Balance sheet budgets

6. Delegation of authority (2011, 2013)


A person who delegates the authority should have the following attitude:
 Willingness to forgive the subordinate’s mistakes
 Establishing and using controls
 Receptiveness
 Willingness to trust
 Willingness to let go

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7. Performance appraisal (2011, 2014)
A performance appraisal is a systematic and periodic process that assesses an individual
employee's job performance and productivity in relation to certain pre-established criteria
and organizational objectives.
The process by which a manager or consultant
(1) examines and evaluates an employee's work behavior by comparing it with preset
standards, (2) documents the results of the comparison, and
(3) uses the results to provide feedback to the employee to show where improvements are
needed and why.
Performance appraisals are employed to determine who needs what training, and who will
be promoted, demoted, retained, or fired.

8. Phases of control (2012)


 Pre control phase (activities done to control the problem from occurring. Take
timely action)
 Concurrent control phase (it takes place while activity continues. It’s a maintaining
phase)
 Post control phase (it is the poorest approach and is costly as it requires to fix the
problem after it has occurred)
 Correction phase (after the problem has occurred and damage has been done, this is
the phase where it is fixed and healed)

9. Co ordination (2012, 2013)


 Co ordination through planning
 Co ordination through organizing
 Co ordination through staffing
 Co ordination through directing
 Co ordination through controlling

10. Break even analysis (2012)


Break-even analysis is a business tool widely used across all industries to evaluate business
performance in terms of costs, since this is a supply-side analysis. Break-even analysis is an
important aspect of a good business plan, since it helps the business determine the cost
structures, and the number of units that need to be sold in order to cover the cost or make a
profit. Break-even analysis is usually done as part of a business plan to see the how practical
the business idea is, and whether or not it is worth pursuing. Even after a business has been
set-up, break-even analysis can be immensely helpful in the pricing and promotion process,
along with cost control.

Simply put, break-even point can be determined by calculating the point at which revenue
received equals the total costs associated with the production of the goods or services.

Break-even Point = Fixed Costs/ (Unit Selling Price – Variable Costs)

PREPRAPED BY: SANAM ALAM 12


11. Types of plans commonly used in management (2014)
 Mission or purpose
 Strategy
 policies

12. merits and demerits of decentralization (2014)


Advantages of Decentralisation:
1. Reduces the burden on top executives:
2. Facilitates diversification:
3. To provide product and market emphasis:
4. Executive Development:
5. It promotes motivation:
6. Better control and supervision:
7. Quick Decision-Making:

Disadvantages of Decentralisation:

1. Uniform policies not Followed:


2. Problem of Co-Ordination:
3. More Financial Burden:

4. Require Qualified Personnel:

5. Conflict:

Q18. Importance of management and statements related to management


(2011)
 It provides guidance in solving problems of an organization
 It provides effectiveness to human efforts and makes them fruitful
 It facilitates the achievement of desired objectives with least possible cost
 It provides framework for planning and organizing human skill and knowledge
 It encourages joint and co ordinated efforts
 It helps in making improvements in working process in its ever changing processes
 It arranges rational use of resources (men, money, material)

PREPRAPED BY: SANAM ALAM 13


Q19. Difference between Nominal Group Techniques & Delphi Techniques
(2011)
The NGT offers a more immediate result which can then be refined through additional meetings as
necessary. The Delphi, adaptive to networked data calls, is conducive to gathering a wider and more
reflective response however the technique is more time and labor intensive. Though the intent and
goals are similar, each approach has its supporters and critics.
NGT DT
Session time limit Process stopped based upon predefined criteria
Each member writes their ideas in free form Each member completes a questionnaire and
comments
No discussion, questions, or clarification Participants are physically separated
allowed
Participants do not initially consult or discuss Participants remain anonymous
their ideas with others
Each member reads aloud their idea Facilitator provides an anonymous summary of
the each members’ contribution
Each member in turn states one idea Participants remain anonymous
Wording may be changed only when the idea’s Participants may change their earlier answers
originator agrees
One round in one session Two or more rounds over longer duration
Similar to up or down vote, therefore may be May be better for more significant issues
better for more narrow problems because of more time to research and respond

Q20. Decision making process


(2011, 2014)
Step 1: Identify the decision to be made.
Step 2: Gather relevant information
Step 3: Identify alternatives
Step 4: Weigh evidence
Step 5: Choose among alternatives.
Step 6: Take action.
Step 7: Review decision and consequences

Q21. Explain the terms

1. Rules (2011)
Authoritative statement of what to do or not to do in a specific situation, issued by an
appropriate person or body. It clarifies, demarcates, or interprets a law or policy.
Statement that establishes a principle or standard, and serves as a norm for guiding or
mandating action or conduct. Rules may be divided into four general categories:
(1) Folklore: Unpublished rules that are conveyed by behaviour and are implicitly
understood.
(2) Guidelines: Commonly published and recommended practices that allow
some discretion with their interpretation and use.
(3) Mandates: Published commands that may not be ignored in any circumstance and
whose violation is punished.
(4) Policies: Published rules that imply a predicted behaviour and whose violation may
be permitted or tolerated under certain circumstances.

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2. Procedures (2011)
A fixed, step-by-step sequence of activities or course of action (with definite start and
end points) that must be followed in the same order to correctly perform a task. Repetitive
procedures are called routines.
An established, habitual, logical, or prescribed practice or systematic process of achieving
certain ends with accuracy and efficiency, usually in an ordered sequence of fixed steps.

3. Policy (2011)
a set of ideas or a plan of what to do in particular situations that has been agreed to
officially by a group of people, a business organization, a government, or a political party.
Published rules that imply a predicted behaviour and whose violation may be permitted or
tolerated under certain circumstances.

Q22. Formal & informal organizations


(2011)

Features of Formal organisation:

(1) The formal organisational structure is created intentionally by the process of organising.
(2) The purpose of formal organisation structure is achievement of organisational goal.
(3) In formal organisational structure each individual is assigned a specific job.
(4) In formal organisation every individual is assigned a fixed authority or decision-making power.
(5) Formal organisational structure results in creation of superior-subordinate relations.
(6) Formal organisational structure creates a scalar chain of communication in the organisation.

Features of informal organisation:

(1) Informal organisational structure gets created automatically without any intended efforts of
managers.
(2) Informal organisational structure is formed by the employees to get psychological satisfaction.
(3) Informal organisational structure does not follow any fixed path of flow of authority or
communication.
(4) Source of information cannot be known under informal structure as any person can
communicate with anyone in the organisation.
(5) The existence of informal organisational structure depends on the formal organisation structure.

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Q23. Compare Maslow and Herzberg theories of motivation
(2011)

1. Meaning ↓

Maslow's theory is based on the concept of human needs and their satisfaction.
Hertzberg's theory is based on the use of motivators which include achievement, recognition and
opportunity for growth.

2. Basis of Theory ↓

Maslow's theory is based on the hierarchy of human needs. He identified five sets of human needs
(on priority basis) and their satisfaction in motivating employees.
Hertzberg refers to hygiene factors and motivating factors in his theory. Hygiene factors are
dissatisfiers while motivating factors motivate subordinates. Hierarchical arrangement of needs is
not given.

3. Nature of Theory ↓

Maslow's theory is rather simple and descriptive. The theory is based long experience about human
needs.
Hertzberg's theory is more prescriptive. It suggests the motivating factors which can be used
effectively. This theory is based on actual information collected by Hertzberg by interviewing 200
engineers and accountants.

4. Applicability of Theory ↓

Maslow's theory is most popular and widely cited theory of motivation and has wide applicability. It
is mostly applicable to poor and developing countries where money is still a big motivating factor.
Herzberg's theory is an extension of Maslow's theory of motivation. Its applicability is narrow. It is
applicable to rich and developed countries where money is less important motivating factor.

5. Descriptive or Prescriptive ↓

Maslow's theory or model is descriptive in nature.


Herzberg's theory or model is prescriptive in nature.

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6. Motivators ↓

According to Maslow's model, any need can act as motivator provided it is not satisfied or relatively
less satisfied.
In the dual factor model of Hertzberg, hygiene factors (lower level needs) do not act as motivators.
Only the higher order needs (achievement, recognition, challenging work) act as motivators.

Q24. Importance of human assets by Rensis Likert


(2011, 2013)

He suggested that human assets are so important that they should be added to balance sheet in two
ways:
1. Cost approach (whatever company spends to keep that human asset to work for them)
2. Value of working staff (money spent on its staff multiplied with the period in form of years
during which the staff remains In working position for this company)

Q25. Staffing activities


(2011, 2012, 2013)

Staffing:
The term ‘Staffing’ relates to the recruitment, selection, development, training and compensation of
the managerial personnel. Staffing function is concerned with the placement, growth and
development of all of those members of the organization whose function it is to get things done
through one effort of other individuals.

Staffing activities:
 Determination of needs
 Selection and recruiting
 Orientation and training
 Performance appraisal
 Compensation
 Promotion
 Termination

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Q26. Philosophy of communication
(2011, 2013)

 The developmental communicator (it encourages to contribute ideas and suggestions for
joint understanding of problems or a task. This communicator believes that two heads are
better than one)
 Controlling communicator (he is dictatorial. He believes no other decision is better than his
own. This philosophy is most productive)
 Relinquishing communicator (he looks forward to the other party to communicate. They are
humble in nature. They make few contribution of ideas and try to shift burden to others)
 Withdrawn communicator (they are uncommunicative and introverted. He is a negative
thinker)

Q27. Good communication


(2011)
 Purposeful
 Continuous
 Specific
 Concrete
 Invites participation
 Produces feed back or inquiry
 Has fresh examples
 Promotes understanding and goodwill

Q28. Unity of command


(2012)

1. Better relationship among superior and subordinates.


2. Clear and well-organized Authority, Responsibility and Accountability.
3. Reduces and/or avoids duplication of work.
4. Prompt or quick decision making.
5. Good, effective and efficient discipline.
6. Better co-ordination and team work.
7. Boosts morale and positive attitude of workers.
8. Leads to higher productivity of goods and services.

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Q29. Theory x & Y (mcgregor)
(2012, 2014)

Theory X
This assumes that employees are naturally unmotivated and dislike working, and this encourages an
authoritarian style of management. According to this view, management must actively intervene to
get things done. This style of management assumes that workers:
 Dislike working.
 Avoid responsibility and need to be directed.
 Have to be controlled, forced, and threatened to deliver what's needed.
 Need to be supervised at every step, with controls put in place.
 Need to be enticed to produce results; otherwise they have no ambition or incentive to work.

Theory Y
This expounds a participative style of management that is de-centralized. It assumes that employees
are happy to work, are self-motivated and creative, and enjoy working with greater responsibility. It
assumes that workers:
 Take responsibility and are motivated to fulfill the goals they are given.
 Seek and accept responsibility and do not need much direction.
 Consider work as a natural part of life and solve work problems imaginatively.

Q30. Hierarchy of needs/ needs theory (maslow)


(2012, 2013)

 The physiological needs


 Security needs
 Acceptance needs
 Esteem needs
 Need for self-actualization

PREPRAPED BY: SANAM ALAM 19


Q31. Types of authority
(2012, 2013, 2014)

1. Line authority
The officially sanctioned ability to issue orders to subordinate employees within
an organization. For example, production and sales managers that have been empowered
with line authority typically also have the responsibility of achieving
their company's business goals with the greatest possible efficiency.

Features of line organisation:

(1) There are many levels of management depending upon the scale of business and
decision-making ability of managers. Each level of management has equal rights.

(2) There is vertical flow of authority and responsibility. The lower positions derive authority
from the positions above them.

(3) There is unity of command. Every person is accountable to only one person (his
immediate boss) and none else. A person receives orders only from his immediate boss.

(4) There is scalar chain in line organisation. The flow of orders, communication of
suggestions and complaints etc. are made as it is in the case of a ladder. One cannot defy the
claim.

(5) There is limit on subordinates under one manager. A manager has control only over the
subordinates of his department.

2. Staff authority
Power to give advice, support, and service to line departments. Staff managers do not
command others. Examples of staff authority are found in personnel, purchasing,
engineering, and finance. The management accounting function is usually “staff” with
responsibility for providing line managers and also other staff people with a specialized
service. The service includes budgeting, controlling, pricing, and special decisions.

1. There are two types of staff :


a. Staff Assistants- P.A. to Managing Director, Secretary to Marketing Manager.
b. Staff Supervisor- Operation Control Manager, Quality Controller, PRO
2. Line and Staff Organization is a compromise of line organization. It is more complex than line
concern.
3. Division of work and specialization takes place in line and staff organization.
4. The whole organization is divided into different functional areas to which staff specialists are
attached.
5. Efficiency can be achieved through the features of specialization.
6. There are two lines of authority which flow at one time in a concern :
a. Line Authority
b. Staff Authority
7. Power of command remains with the line executive and staff serves only as counselors.

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3. Functional authority
The ability for subordinate staff to veto suggested management decisions or to propose
action based on their superior expertise in a particular area. Many accounting professionals
working for the finance department of a business will be granted the functional authority to
veto management decisions and initiate action according to their best judgment.

The characteristics or features of functional authority are:-


1. Functional authority is given to a manager to perform a specific function.
2. The manager may be a line manager or a staff manager. But mostly functional authority is
given to a staff manager.
3. It is not limited to a particular department. It may even cover the full organisation.
4. It is an additional authority. It is given to a manager in addition to his normal (line or staff)
authority.
5. It is removed when the work is completed.

Q32. Medias to carry the message


(2012)
 Thinking
 Action
 Observation
 Speaking
 Listening
 Writing
 Reading

Q33. Organizing
(2013)

Organizing is a systematic process of structuring, integrating, co-ordinating task goals, and activities
to resources in order to attain objectives.
The organizing function is carried out once a plan, or an outline for how to achieve some
organizational goal, is in place. Many believe organizing is the most critical of managerial functions
because of its ability to help or hinder an organizational plan and thus profoundly affect
organizational success.

PREPRAPED BY: SANAM ALAM 21


Q34. Two factor theory of Herzberg
(2013)

Factors for Satisfaction Factors for Dissatisfaction

Company policies
Achievement Supervision
Recognition Relationship with supervisor and peers
The work itself Work conditions
Responsibility Salary
Advancement Status
Growth Security

The conclusion he drew is that job satisfaction and job dissatisfaction are not opposites.
 The opposite of Satisfaction is No Satisfaction.
 The opposite of Dissatisfaction is No Dissatisfaction.

Q35. Limitations of rational decision making


(2014)
 Sometimes the information is insufficient.
 Time limitations (usually rational decision making needs a long time of observation,
collection and analysis)
 Finance & resource limitations
 Incorrect data
 Incorrect interpretation

Q36. Monetary and non-monetary incentives


(2014)

Monetary
 Allowances
 Overtime payment
 Bonus
 Child education
 Holiday
 Petrol
 Pension
 Gratuity

PREPRAPED BY: SANAM ALAM 22


Role in motivating employees:

1. To increase productivity,
2. To drive or arouse a stimulus work,
3. To enhance commitment in work performance,
4. To psychologically satisfy a person which leads to job satisfaction,
5. To shape the behavior or outlook of subordinate towards work,
6. To inculcate zeal and enthusiasm towards work,
7. To get the maximum of their capabilities so that they are exploited and utilized maximally.

Non monetary:
 Promotion
 Provision
 Leaves
 Better working hours
 Good working environment
 Providing secretary, peon, driver
 Allowing participation in decision making
 Job security
 Recognition

Q37. Difference between manager and leader


(2014)
Managers have employees. Leaders win followers.
Managers react to change. Leaders create change.
Managers have good ideas. Leaders implement them.
Managers communicate. Leaders persuade.
Managers direct groups. Leaders create teams.
Managers try to be heroes. Leaders make heroes of everyone around them.
Managers take credit. Leaders take responsibility.
Managers are focused. Leaders create shared focus.
Managers exercise power over people. Leaders develop power with people.

Q38. Types of leadership styles


(2014)

 Autocratic
 Democratic
 Laissez-faire

PREPRAPED BY: SANAM ALAM 23


Q39. Relationship between planning and controlling
(2014)
1. Interdependence between Planning and Controlling
(i) Planning is Meaningless without Controlling:
(ii) Controlling is blind without Planning:
2. Difference between Planning and Controlling
(i) Planning is Looking Ahead whereas Controlling is Looking Back:
(ii) Planning is the First Function and Controlling is the Last Function of Managerial Process

PREPRAPED BY: SANAM ALAM 24

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