Seat No:______________ Enrollment No:______________

PARUL UNIVERSITY
FACULTY OF MANAGEMENT
MBA Supplementary Examination Summer 2015-16
Semester: I Date: 03-05-2016
Subject Code: 06200102 Time: 2:00 PM to 5:00PM
Subject Name: Principles of Management Total Marks: 60

Instructions:
1. Attempt all questions from each section.
2. Figures to the right indicate full marks.
3. Make suitable assumptions wherever necessary.
4. Write separate sections on separate answer sheets.

SECTION-A
Q.1 (a) MCQs (3)
1. Which of the following is not an external threat to a company’s well being?
[A] Reduction in sales due to substitute products
[B] Likely entry of new competitors
[C] Underutilized plant capacity
[D] Costly regulatory requirements

2. The specific roles of figurehead, leader and liason fall in the category of _________
role.
[A] Informational
[B] Decisional
[C] Organisational
[D] Interpersonal

3. Who among the following was known as “Father of Scientific Management”?

[A] Henry Mintzberg
[B] Henri Fayol
[C] Frederick Taylor
[D] Frank Gilbreth

Q.1 (b) Explain the following terms: (3)

1. Ethics
2. Programmed decisions
3. Strategic Plans

Q.2 Prakash Gupta was irritated and confused after the meeting with Dinesh Sharma. (8)
Prakash was the Chief Manager of Delhi city Super Departmental Stores (SDS), and
Dinesh was the Regional Stores Manager, in-charge of stores of Noida, Faridabad and
Ghaziabad. Three weeks earlier, Prakash had received a letter from Dinesh explaining
that top management had decided on an MBO programme to help SDS improve its
operational efficiency and profitability. The letter mentioned about linking stores
managers’ salary hikes, promotions, etc to performance. The accompanying
instructions required managers to list the objectives they achieved, which were
appropriate for their store and then to await the regional manager’s review visit.
Prakash has done just what he was asked to do. In a meeting with his departmental
managers, Prakash had chosen objectives that they all agreed were appropriate. All of
 the objectives represented performance levels that were improvements over the past
year and were reasonably attainable, such as :
 Increasing sales by 10 percent
 Reducing inventory losses by 2 percent
 Improving customer service (ie.20 percent fewer complaints)
Dinesh came late for the MBO review visit and stressed that there was little time. He
quickly scanned the written statement of objectives which Prakash gave him, then
explained that profit improvement was really what the home office was interested in .
Senior management in Chennai, running the SDS in over 18 major cities in India,
decided that a 10 percent increase in profit would be a reasonable objective for
Prakash’s store. This single objective , Dinesh explained, would facilitate the
monitoring of performance by the head office and would also reduce the amount of
information the store would have to submit. The visit was cut short because Dinesh
had to attend a meeting on advertising budget back at the head office.
Questions:
1. What do you understand by MBO Programme ?
2. Evaluate Prakash’s approach to objective setting. Relate your answer to
SMART Goals.

Q.3 (a) Effective management requires use of different levels of skills at different levels of (4)
management. Draw a chart showing Management skills at each level.

Q.3 (b) List and explain tools of Ethics. (3)

OR
Q.3 (a) Henry Fayol’s Administrative theory states that “Managers can be Made and are not (4)
Born” – Discuss this statement in the light of any 4 Fayol’s Principles of Management.

Q.3 (b) “While certain aspects of management make it a science, certain others which involve (3)
application of skill make it an art” Comment.

Q.4 PQR Ltd is a multinational company head-quartered in New Delhi. With its growing (9)
business, currently, it is facing administrative work delays. So, it is planning to provide
one Laptop to each of their administrative staff to improve the situation. You, being a
Purchase manager at PQR Ltd are asked to carry out the steps for the purchase of
laptops for the organization. Illustrate the process of decision making for purchase of
laptops.
SECTION B
Q.1 (a) MCQs (3)
1. The analysis and measurement of actual operations against the established standards
developed during the planning process is called __________
[A] Controlling
[B] Monitoring
[C] Leading
[D] Organizing

2. An informal organization lays emphasis on _______________.

[A] Authority
[B] People and relationships
[C] Responsibility
[D] Accountability
 3. Which of the following is a written statement describing the objectives of a job, the
work to be performed, the skills needed, the responsibilities involved , the relationship
of the job to other jobs and the working conditions
[A] Job description
[B] Job specification
[C] Job analysis
[D] Job evaluation

Q.1 (b) Explain the following terms: (3)

1. Management Information System
2. Recruitment
3. Profit centre

Q.2 Mr. Kishore is the Head of One Advertising Co. Ltd. His company is growing rapidly. (8)
During the last year, he has bagged good number of advertising projects. Mr. Kishore
is glad to be recognized as one of the premier advertising company. But now that the
tasks and assignments have increased, the company is facing the shortage of human
resources to fulfill the project requirements. He has developed a pool of candidates by
employing various sources of recruitment.
You, as an HR Consultant, are required to guide Mr. Kishore on Selection process.

Q.3 (a) Briefly explain control and process of controlling? (4)

Q.3 (b) Compare and contrast the information needs of operational, middle level and upper (3)
level managers.
OR
Q.3 (a) Differentiate between Centralization v/s Decentralization (4)
Q.3 (b) Explain Budget as a Control technique. (3)

Q.4 Bharat Petroleum Products Co. Ltd (BPPCL) is a successful refining company. Its (9)
main products are fuel, petrochemicals and lubricants. The Rs 15000 crore company
has a workforce of about 24,500 .

The company currently has a functional structure with the following heads reporting
directly to the Managing Director – Director of Operations, Director of Personnel,
Director of Marketing and Director of Finance. In view of growing competition in the
marketplace, the company is thinking of changing its organization structure to a hybrid
structure. The MD is thinking of incorporating R & D Department to the portfolio of
existing structures.

Questions:
1. Draw an organization chart showing BPPCL’s current functional organization
structure.
2. Draw a proposed chart from changing BPPCL’s current structure to a hybrid
structure.
3. State the advantages and disadvantages of the new hybrid/ matrix
organizational structure.

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