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PRINCIPLES OF MANAGEMENT
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Student Name:
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Reg no:
Class:
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By :
T.HABEEBUR RAHMAN
MBA.,M.PHIL.,P.hD
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ASST.PROF OF BUSINESS ADMINISTRATION
ISLAMIAH COLLEGE (AUTONOMOUS)
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VANIYAMBADI

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 2

PRINCIPLES OF MANAGEMENT
UNIT 01:
Introduction-management-importance-definition-nature and scope of management-
management process-role and function of manager-levels of management-differences between
management and administration-management as an art and science-management as
profession-management approaches.
UNIT 02:
Planning-nature-importance-types of plans-steps in planning-objectives-policies-
procedures and methods-nature and types of policies-decision making-types of decision
making-types of decision-problems involved in decisions making.
UNIT 03:
Organisation-types of organisation structure-span of control-departmentation-informal
organisation. Authority-delegation-differences between authority and power-decentralization-
Importance of organising.
UNIT 04:

Controlling: Definition- Characteristics- Elements-Importance- Process- Classifications-

Open and Closed- Loop control- Human and machine control-Organisational and operational
control- problems- Information flow- Setting standards.

UNIT 05:
Co-ordination: meaning- Features- Importance- Advantages and Disadvantages-
Principles- Techniques- Functions- Types: Internal-External.
 3

UNIT 01:INTRODUCTION
1.what do you mean by management?
Ans: management is basically concerned with the performance of planning ,organising
,directing ,controlling which are the functions of management.
Management is also referred as the act of getting things done through others.

2.Define management?
Ans: According to marry parker , management is an art of getting things done through others.
[or]
According to Henry Fayol, management refers to plan, to organise, to direct and to
control.
3.what are the nature (or) importance (or) characteristics of management?
Ans: The following are the importance of management

a) It is universal activity
b) It is goal oriented
c) It is a process
d) Management is both science and art
e) It is a social process
f) It is a continue process

a) It is universal activity:

Management is an element in every sphere activity. It has relevance not only in business but
also in house hold work in army government activities etc. the work can be done in more
systematic manner with the application of the techniques of management.
b) It is goal oriented:

The management focus on the attainment of specific objectives. For example a business may
aim for particular sales this can be achieved in an effective manner by adopting the techniques
of management.
c) It is a process:
Management is essentially a process consist of various functions such as planning, organising,
directing, controlling. Planning is the starting of management and controlling is the last stage of
management. Each of these functions will have to be done in the sequential order.
 4

d) Management is both science and art:

Management is a social science because it requires practical research on organisational
problems. Such as employee problems, employer problemetc.
Management is an art because it requires theory knowledge for implementing the functions of
management thus management is both a science and art.
e) It is asocial process:

Management is asocial process. It deals with the behaviour of an individual and groups. In a
work place individual work as a team behaviour of an individual may be different while it a part
of a group. The behaviour of an individual is influencedby two which he belongs.
f) It is a continue process:

Management is the continue process. A stage will not be reached where one can say that
management is irrelevant management will exist as along as three are human activities.

4.What are the functions of management?

Ans: The following are the functions of management ;
a) Planning
b) Organising
c) Directing
d) Controlling
e) Staffing
f) Co-ordinating
g) Communicating

a) Planning:

Planning is the basic managerial function. Planning helps in determining the course of an action
to be followed for achieving organisational goals.

It is a decision in advance what to do, how to do, whom to do and who will do a particular task.
b) Organising:
Organising is the process of establishing authority and responsibility and relationship among
the members of the organisation. It is the function of creating a structure of duties and
responsibilities.
 5

c) Directing:
Directing denotes motivating, leading, guiding and communicating with the subordinates to
achieve a common goal. Directing is concerned with carrying out the designed plans.
d) Controlling:
Controlling may be defined as determining what is being accomplished which is evaluating the
performance if necessary.
Control the task and focus on subordinate work in an organisation towards the achievement of
organisational goals.
e) Staffing:
Staffing refers to placement of right person to the right job. staffing function comprises the
activities of selection and placement of employee in an organisation.
f) Co-ordinating:
Co-ordinating function denoteshe better relationship between one department to another and
one employee to another in an organisation. Coordination leads to achievement of
organisational goals accurately.
g) Communicating:
Effective communication will lead to transfer of information from one place to another
accurately. Proper communication channel lead to achievement of organisational goals easily.

5.Is management a science (or) an art?

Ans:
a) Management is an art:
Management is an art because it requires knowledge and skills to find a solution the problems.
The following are the features of management as an art
a) Personal skill
b) Practical knowledge
c) Result orientation
d) Creativity

b) Management as a science:
Management is a science because it requires more research activities such as market, product,
corporate etc.
The following are the features of management as a science.
a) Systematic body of knowledge
b) Scientific method
c) Cause and effect
 6

6.explain management as a profession?

Ans: The term profession refers to an occupation requiring some significant body of knowledge
that is informally acquired and applied in nature.
Generally management refers to managing the people and profession refers to managing
people professionally.
The following are the attributes of professions

a) Body of knowledge
b) Facilities for formal training
c) Self disciplined

7.what are the levels of management?

(Or)

What are the levels of business management?

The following are the levels of management:
a) Top level management (board of directors, managing directors, manager)
b) Middle level management (production dept, sales dept, marketing dept)
c) Low level management (supervisor, worker)

a) Top level management:

Top level management is the highest level of management in an organisation. It consist of
board of directors, managing directors and general manager etc. top level management will
have decision making authority in an organisation.
b) Middle level management:

The management which is in between the top level management and low level is called middle
level management. It consist of production management, sale, marketing, HR management etc.

c) Low level management:

The term low level management refers to junior level of management in an organisation. It
consist of supervisor and workers etc. the low level management has to follow the decision of
top level and middle level management.
 7

8.what are the functional areas of management?

Ans: the following are the functional areas of management:
a) Production management
b) Marketing management
c) HR management
d) Finance management

a) Production management:
Production management implies planning, organising, directing and controlling the production
function so as to produce the right quality of goods at right time and right cost.
It consist of the following
a) Production designing
b) Purchase of materials
c) Storage of materials
d) R & D ( research and development )

b) Marketing management:

Marketing management refers to the identification of customers needs and suppling the goods
and services which can satisfy their needs.
c) HR management:
HR management is also called as personal management. It involves the planning, organising,
directing, controlling the recruitment development and compensation etc of resources in an
organisation. It consist of the following areas
a) Manpower planning
b) Recruitment and selection
c) Training and development

d) Finance management:

Finance management is concerned with managerial decision of acquisition and financing af long
term enterprises.

It involves planning, organising, directing and controlling the money.

 8

9. what are the objectives of management?

Ans: the following are the objectives of management
a) Proper utilization of resources
b) Improving performance
c) Planning for future
d) Utilizing best talents

a) Proper utilization of resources:

The main objective of management is to use various resources of enterprises in the most
economic way. The proper use of men materials. Machines and money will help a business to
earn profit.
b) Improving performance:

Management should aim in improving the performance of each and every factor of production.
Proper management will lead to effective production, marketing and advertising of product
c) Planning for future:
Another important objective of management is to prepare for future plans. Every organisation
should do advance planning for meeting future circumstances.
d) Utilising best talents:

Every organisation should utilize best talents in an appropriate manner. Different employee will
have different talent and utilising the best talents is management.

2 marks:
1.what do you mean by administration?
Ans:
a) Administration is a thinking process.
b) It consist of top level management.
c) The main function of administration is planning, organising and staffing.
 9

2. Differences between administration and management?

Points of differences Administration Management

1) Nature It is a thinking function.
2) scope It is concerned with the
determination of objectives
and policies.
3) level It is top level function.
4) main functions Planning, organising, staffing.
It consist of owner of an
5) status
enterprise.
Concept and human skill.
6) skills
It is doing function.
It is concerned with
implementation of policies.
It is largely a middle and low
level function.
Directing, motivating,
controlling.
It consist of managers.
Technical skill.

3. what are the principles of management?

(or)

What are the 14 principles of management?

Ans:
The following are the 14 principles of management:
1) division of work
2) authority and power
3) discipline
4) unity of command
5) unity of direction
6) subordination of individual interest into group
7) remuneration of personnel
8) centralization and decentralization
9) scalar chain
10) order
11) Equity
12) Stability of tenure personnel
13) Initiative
14) Unity is strength
 10

1) Division of labour:
Division of labour refers to dividing of work among the subordinates. division of labour is
applied to both technical and managerial work. The total work should be divided such condition
are called departmentation.
2) Authority and power:
Authority is the power (or) official right of a manager. It comes to him by his virtue of his official
position.
Responsibility is the duty or obligation on the part of a subordinate to account for the work
done by him.
3) Discipline:

Discipline means following the rules and regulations accurately. It is essential for the smooth
running of business can run properly.
4) Unity of command:
Unity of command refers to one person should receive order from only one supervisor or
superior.
5) Unity of direction:
The principle of unity of direction implies that there should be one head one plan for a group of
activities having the same objectives.
6) Subordination of individual:
An individual has its own interest. At that same time the organisation has its own interest. Here
the interest of an organisation called as group interest. Every employee has to follow the rules
and regulations of organisation.
7) Remuneration of personnel:

The renumeration of personnel should be fair. The subordinate must be satisfied by the
remuneration.

8) Centralization and decentralization:

Centralization refers to that organisational structure where decision making is in the hands of
top level management. Centralization of authority is essential for small scale industry.
Decentralization refers to transfer of powers by top level management to middle level
management or low level. It is the delegation of authority at all the levels of management.
 11

9) Scalar chain:
The principles denotes a series of superior and subordinates relationship in the organisational
hire from top level management to low level management.
10) Order:
This principle is concerned with arrangement of things and placement of people. Every
manager should direct his subordinate based on order received by him.

11) Equity:
Equity refers to combination of fairness and kindness to justice. All the employees of
organisation. Are treated equally by the managers.
12) Stability of tenure personnel:
It is important that employees must stay in organisation for a longer period of time as possible.
Employers should not shift one organisation to another.
13) Initial:
This principle state that employee should given ample space to demonstrate his creative urge.
They should be given a space to express their talents.
14) Unity is strength:

Unity is strength or team work sprit. All the employees are put together as a team in order to
achieve the objectives of the organisation. Management should not adopt the policy of divide
and rule.

4) who is a manager?
Ans: A person who performs planning, organising, directing and controlling for the
accomplishment of organisational goals.
5) what are the role of manager?
Ans:
a) Interpersonal role
b) Informational role
c) Decisional role
 12

Interpersonal role:
a) Figurehead:
In this role, every manager has to perform duties based on situation. Such as receiving the
guest from outside attending the weeding of subordinate and subordinate and social function
etc.
b) Leader:
Manager has to act as a leader when he has to sort out the activities of subordinates.
c) Liaison:
Manager has to contact outside agencies for collecting business related information.
Informational role:
a) Monitor:
A manager has to accurately monitor the organisational informational, duties of subordinate,
sending and receiving information etc in the organisation.
b) Disseminator:
In this role the manager supply information directly to his subordinate.
c) Spokesman:
In this role, the manager informs and satisfies various group and people who influence his
organisation.
For example: manager advices shareholders about financial performance.
Decisional role:
a) Entrepreneur:
In this role, the manager regularly looks out for new idea to improve his unit by adopting
various techniques in organisation.
b) Resource allocator:
A manager also acts as a resource allocator. He to monitor the allocation of women resources,
physical resources and monitory resources.
c) Negotiator:
Under this role, a manager acts as a negotiator when discuss an bargain with other groups to
gain advantages for his own unit.
 13

UNIT 02: PLANNING

1) What is planning?
Ans: Planning is the primary function of management. Planning is the process of thinking about
the activities required to achieve the desired goals.
2) Define planning?
Ans: according to Henry Fayol planning is deciding best alternative to others to perform various
managerial options in order to achieve the organisational goals.
3) What are the nature (or)characteristics (or) importance of planning?
Ans: the following are the characteristics or importance or nature of planning:
a) Planning is the primary function of management
b) It is goal oriented
c) It is all pervasive
d) It is an intellectual activity
e) It is a continue process

a) Planning is the primary process:

Planning is the starting point of function of management. It is only planning which gives
meaning to all other managerial function such as organising, directing and controlling. Without
planning the other function cannot be performed.
b) It is goal oriented:
The goal of every business is to make profits. Planning helps to attain the goal in the most
effective and efficient manner.
c) It is all pervasive:
By this we mean that planning is done by every level of management namely top level, middle
and low level. Top level management prepare long term planning an middle level perform
departmental planning and low level prepare plans to carry out their daily routine.
d) It is future oriented:
Planning is required to attain the future goals of an organisation. However past happening
provide the basis for plan.
e) It is intellectual activity:
Planning is the mental activity. It involves application of mind and intelligence to attain the
organisational goals.
f) It is a continue process
Planning is required as long as we live in this world. As the business is concerned planning is
needed as long as there are business activity. Once a plan period ends the next plan period
starts so planning is continue process.
 14

4. what are the process or steps involved or stages of planning?

Ans: the following are the process or steps involved or stages of planning :

a) Identify business activity

b) Establishment of objectives
c) Determinate of planning process
d) Identifying alternatives
e) Evaluating alternatives
f) Selection of best alternatives
g) Implementation
h) Evaluation and review

a) Identifying business activity:

It is necessary to make analysis of both the internal and external environment to know the
trends in near future from the available information. A manger has to identify business
opportunities. The identification of business opportunities is fundamental process of planning.
b) Establishment of objectives:

The second step in planning process to establish the organisation objectives based on
opportunities identified. The over all objective of an enterprise of the enterprise must be
started along with the specific objective of individual departments in organisation. The
objectives must be started in an measurable terms.
c) Determination of planning premises:

Planning premises are the assumption made about the future happenings. As planning is for
future and future is uncertain, certain assumptions about the future become necessary. The
factor which affects the planning must be determined accurately.

d) Identifying alternatives:
There are always alternatives ways of carrying out any task just as there are different routes to
reach a destination point. To ascertain the objectives of business, different alternatives may be
available.
For example: to increase the profit of the business the following are the approaches.
a) Large scale production
b) Maximising states
c) Increasing the market structure
 15

e) Evaluating the alternatives:

Once alternatives are identified the next process of planning is to evaluate the alternatives. By
evaluation we can identify the advantages and disadvantages of alternatives. Each alternatives
should be examined carefully to decide on its sustainability.
f) Selecting best alternatives:
Once the alternatives are selected promptly the next process is to select the best alternative. It
is the very critical process of planning because under this stage the final alternative is selected.
g) Implementation:

After selecting alternative the implementation of alternative is the important process of

planning stages under this stage, the alternative is done practically.

h) Evaluation:
Once the implementation is of the plans starts, it becomes necessary to evaluate and review
the performance regularly to identify the selected alternative is accurately or not.

5. what are the methods of planning?

Ans: the following are the methods of planning:
a) Repeated used plans b) single used plans

 Objectives a) programmes
 Policies b) budgets
 Procedures
 Strategies

a) Repeated use plans:

It refers to those plans that are used again and again. The following are the methods of
repeated used plans.
 Objectives:
Objective is the destination point or the end point. It gives focus to the work done at different
level. It also called as aims, goals, targets, missions etc.
 Policies:
A policy serves as a valuable guide to those individual to make certain important decisions in
course of accomplishment of the business objectives. Policies provide ready answers to
questioning pertaining to certain issues. Thus prescribed the limits within which the
organisational decision have to be made.
 16

 Procedure:
A procedure will laydown the manner in which certain work has to be performed. It prescribed
the steps to solve a problem or to complete any task in the organisation. For example: there are
different procedures for the selection of enterprise. Employees purchase of raw materials etc.
 Strategies:
Strategic is a military word. It refers some plans of action to counter the opponents attracts.
Generally strategy refers to the long term planning to beat the competitors in the business
markets.
b) Single used plans:
Single used plans are meant for a specific purpose only. As soon as the purpose has been served
the plans that becomes useless.

 Programmes:
A programme is nothing but a business agenda. It specifies the date and time by which the
activities of the enterprise will be carried out. For example: to produce five thousand mobile
phones by 31st march 2020 may be the programme of mobile phones production company.

 Budgets:
A budget is a financial plan of a business. It is also expressed in numerical terms. A budget is a
statements of projected activities of a business in future.

6. what are the kinds or types of policies?

Ans:
a) External policies
b) Internal policies
c) Appealed policies
d) Explicit policies
e) Implicit policies

a) External policies:
Policies frame to give effect to the decisions of the government.Judiciary,trade associations and
other external forces are called external policies.for example under the incometax act ,certain
amount is detected from employees salaries.

b) Internal policies:
Policies formulated to give effect to certain decisions taken by the owners of a business are
called as internal policies. For example: certain private having the policies of contract basis job.
 17

c) Appealed policies:
Such policies formulated to give effect to the suggestion of the employees of the organisation.
For example: employees make an appeal to the top management to give employee to an
eligible member of an employee ‘s family after the letter of retirement.
d) Explicit policies:
These policies of an organisation that are stated out word are called as explicit policies. Most of
the policies of an organisation are explicating in nature. For example: the sales policy and credit
policy etc.
e) Implicit policy:
This policy are not stated out word. For example: every organisation follows different policies
for selecting candidates.

7.what are the advantages and disadvantages of policies?

Ans: advantages of policies:
 Policies guide managers in taking decisions.
 They save time by providing a ready solution to the organisation problems.
 The ensure consistency in decision making.
 Policies enable the managers to take bold decisions.
 Policies also prevent the manager from misusing their authority by its rules and
regulations.

Disadvantages of policies:
 Policy cannot provide solution to all organisational problems.
 Policies only provide guide lines for the decision and do not provide an instant solution
for the organisational problem.
 It is necessary to review any policy to become outdated.
 Policies are not a substitute for human judgement.
 Policies do not allow the managers to think originally. Creative thinking is not entertain
in rules and regulations.
PART-2
DECISION MAKING

1. What do you mean by decision making?

Ans: decision making is the process of selecting one alternative from among the number of
alternatives available. They need decision making will arise only when there are options.
 18

2. Define decision making?

Ans: according to George terry decision making is the selection of an alternative from two or
more alternatives to determine an option or a course of an action.
(or)
According to Haynes decision making is the process of selecting the best alternative among
other alternatives to achieve the organisational goals.
3.what are the process or steps involved in decision making?
Ans: the following are the process of decision making:
a) Identifying the problem
b) Problem analysis
c) Identifying alternatives solutions
d) Evaluating the alternatives solutions
e) Selecting the best alternative
f) Implementation the decision
g) Review

a) Identifying the problem:

The 1st step in the process of decision making is to identify and understood the actual problem.
If actual problem is identified it will be easy to solve the problem. So identifying the problem is
very important process of decision making.
b) Problem analysis:
Once the actual problem is identified the next step is to analysis the problem. The next step
requires data which may be collected from primary and secondary data.
c) Identifying alternatives solutions:
After the problem is identified. The next step is to develop alternative solution any
organisational problems has many solutions. Therefore it is necessary that the decision maker
identifies the alternative solution.
d) Evaluating the alternative solution:
After the alternative solution is identified the next step is to evaluate the alternative solutions.
Evaluation of alternatives is done by focusing on advantages and disadvantages and
disadvantages of each solution.
e) Selecting the best alternative:
After evaluating the alternatives the next step is to select the best solution. It is very important
process of decision making because under this stage a solution is selected for implementation.
f) Implementing the decision:
After the best solution is finalised the next step is to important the selected solution. Under this
process a solution is implemented practically. It is done by communicating the same to all
concerns.
g) Review:
Periodic review of the decision is necessary during the period of its implementation. This is
done by comparing the actual results with the expected results.
 19

4.what are the types or kinds of decision making?

Ans: the following are the types or kinds of decision making:
a) Organisational decisions
b) Personal decisions
c) Strategic decisions
d) Routine decisions
e) Structured decisions
f) Unstructured decisions
g) Individual decisions
h) Group decisions

a) Organisational decisions:
These decisions are made by mangers in his official right. For example: if any employee
misbehave in organisation a manager may suspend him.
b) Personal decisions:
The decision are made by the managers in his personal capacity is called personal decision. For
example: a manager may give credit to the employee on his own decision.
c) Strategic decisions:
It is along term decision making process. A manager may focus on SWOT (strength, weakness,
opportunities, threads). Of the organisation before taking any decisions.
d) Routine decision:
It is daily decision making process. It does not give major problem to the company. For
example: purchase of raw materials, stationery purchase etc.
e) Structured decisions:
These decisions are to come out of the past experience, tradition etc. for example: if an
employee is regularly late for work, a manager knows how to deal with him.
f) Unstructured decisions:
These decisions are concerned with unexpected situations. For example: if al the employees
working in particular departments avails leave on a particular day then the manager may face
temporary problem.
g) Individual decisions:
These decisions made by individual over an organisation issue. The individual by virtue of his
position or knowledge may be enjoying such as decision making authority.
h) Group decisions:
These decisions are made by a group of persons. In an organisation, there is a committee to
solve the workers and managers problems.
 20

5.what are the problems involved in decision making?

Ans: The following are the problems involved in decision making:
 Lack of knowledge of alternatives
 Unable to decide
 Quick decision
 Unavailability of necessary information
 Lack of implementation

a) Lack of knowledge of alternatives:

The decision maker has to focus on available to select best alternatives if he does not have the
knowledge of available alternatives then it is a big problem to the organisation.
b) Unable to decide:
It means unable to decide it may not be possible for some managers to arrive at a decision
easily. So the managers may postpone their decision making
c) Quick decision:
The decision maker cannot always take his own time for making decision. Certain problems may
so urgent that a quick decision may be necessary but only some managers are capable of
making quick decisions.
d) Unavailability of necessary information:

The information needed for the purpose of decision may not be early available. In such a
situation, the correct decision cannot be made. These may also be delay in arriving at a
decision.
e) Lack of implementation:
Implementation of the decision and periodical review can produce the expected results.
 21

UNIT 03: ORGANISATION

1.what do you mean by organisation?
Ans: A person or a group of persons joins together for achieving the same or common goal is
called organisation.
2.define organisation?

Ans: according to wheeler organisation is the structural frame work of duties and responsibility
requires for personal in performing various function within the company.

(or)
According to Haney organisation is a harmonious adjustment of specialised parts for some
common purpose or purposes.
3.what are the importance or features or characteristics of organisation?
Ans: the following are the feature or characteristics of organisation.
 Vital for implementation plan
 Specialisation
 Optimum use of resources
 Team work
 Communication
 Co ordination
 Continuity

a) Vital for implementation:

Organisation follow planning. Implementation of the business plans cannot be possible without
the aid of organisation. It is only through organisation the resources are required to accomplish
the organisational goals are acquired.
b) Specialisation:

The entire work of manufacturing concern is divided into production finance, HR management
according to its importance. The separate departments will take care of relevant job.
c) Optimum use of resources:
Organisation gives at most importance to the optimum utilisation of the enterprise resources
namely men, machines, materials and money.
 22

d) Teamwork:
The work that is done in an organisation is teamwork. The work of each individual is
determined by the work done by others. Therefore it is necessary for them to work as a team
with proper understanding.
e) Communication:
Communicating is very important tool of every organisation. It is not possible for the employee
to perform work without getting orders, institutions and advice from orders.
f) Co Ordinator:

In an organisation the co Ordinator between employees is very important task. Every

department is inter related to each other. So the proper coordination will lead to proper
functioning of each and every departments.

g) Continuity:
Men may come and go, machine may be replaced may be purchased but the organisation will
continue its process without any disruption. Organisation ensures that its functions cannot stop
due to any reason.

4.what do you mean by organisation structure?

Ans: an organisational structure explains the positions and official relationship between the
various individual working in an organisation. It helps to understand organisation better.
5.what is organisational chart and explain the merits and demerits of organisational chart?
Ans: the following are the format of organisational chart:
Board of directors
Managing directors
Manager

Production dept, sales dept, HR dept, marketing dept

Supervisor, worker.
 23

Merits of organisational chart:

 It shows the official right of each individual in an organisation.
 It helps to identify who is supervisor and who is subordinate.
 It gives identify to the personnel in an organisation.
 It helps the outsiders to understood the different designation in organisation.
Demerits of organisational chart:
 It shows only the formal relationship and it does not show an informal relationship.
 It may demotivate certain employees about their positions in an organisation.
 The organisational chart is not updated regularly. so some employees will not be
motivated.

6.what do you mean by formal organisation?

Ans: formal organisation is created for the accomplishment of the organisation objectives. It
provides official relationship between employer and employees of the organisation.
7.what do you mean by informal organisation?
Ans: informal organisation refers to the social relationship between the individual in an
organisation. It leads to better co ordination between the employees and employer of the
organisation.
8.what are the differences between formal and informal organisation?
Ans:

Formal organisation Informal organisation

 It is consciously and deliberately
created.
 Authority and responsibility are vital
for its functions.
 Rules and regulations are important.
 It can be shown on the organisational
chart.
 Authority flows downwards and
responsibility floes upwards.
 Designations and official positions are
very important.
 It is permanent.
 It arises simultaneously.
 It is only personal factor such as
friendship, trust, etc that are
improved.
 Personal relationship between
individual is more important.
 It cannot be shown in organisational
chart.
 There is no flow of authority and
responsibility.
 Designations and official positions are
important.
 It is temporary.
 24

9.what are the different types of organisation or what are the types of organisational chart
(or) structure?
Ans: organisation is classified into the following types:
a) Line organisation
b) Line and staff organisation
c) Functional organisation
d) Project organisation
e) Committee organisation
f) Matrix organisation

a) Line organisation:

The line organisation is also called as military organisation. It is the oldest form of organisation.
Under this the supervisor at the top level makes decision and commits this decision and assigns
certain work to his subordinate.
 General manager (top level)
 Production manager (middle level)
 Supervisor and worker (low level)

b) Line and staff organisation:

Under this type of organisation structure consist of complete information about a department.
 General manager (purchase, production, marketing)
 Supervisor and worker.

c) Functional organisation:
The term functional organisation consist of all the functional departments of the organisation.
The functional departments are production, sales, finance etc.
 Board of directors, general manager, manager (top level)
 Production, sales, HR, market (middle level)

d) Project organisation:
The organisation divides its work based on the project and every project will have a project
manager and supervisor and worker.
 Board of directors, general managers, manager.
 Project manager A , project manager B .
 Supervisor and worker.
 25

e) Committee organisation:
A committee is a group of persons interested with certain task. The committee are expected to
discuss the problem under consideration in detail and find out a solution to the problem.
 Board of directors, general manager, manager (top level).
 Production manager, sales manager, finance manager.
 Supervisor and worker.

f) Matrix organisation:
Matrix organisation is considered as the suitable where a large number of small project will be
done through manager.
 Board of directors, general managers, managers
 Project manager A, project manager B.
 Production, sales, market etc.

10.what are the advantages and disadvantages of line and staff organisation?
Ans: Advantages of line and staff organisation:
a) Specialisation
b) Flexibility
c) Sound decision
d) Opportunities for advancement

a) Specialisation:
The staff officer concentrate mainly on the planning function and line officer concentrates on
doing function. By this method specialisation is attained.
b) Flexibility:
Staff can be added to all the line and new activities may be introduced without disturbing the
line procedure. Hence there is greater flexibility in the organisation.
c) Sound decisions:

In this type, the decisions are made by experts and hence there is a possibility of making sound
managerial decisions.

d) Opportunities for advancement:

In this type a greater variety of responsible jobs are available and it provides more
opportunities for advancement of capable workers.
 26

Disadvantages of line and staff organisation:

a) Confusion
b) Expensive
c) Conflict between line and staff

a) Confusion:
If the partner of authority relationship between line and staff executives is not clearly indicated,
there may be confusion among them.
b) Expensive:
This type requires the appointment of a large number of experts which leads to heavy
expenditure. Hence it cannot afford by small and medium scale companies.
c) Conflict between line and staff:
If there is lack of understanding between line and staff executives then their will be conflicts
between them.

AUTHORITY AND POWER

1.what do you mean by authority?
Ans: authority is the official right of a person to do many things happen in an organisation. The
person vested with authority is known as supervisor. The person to whom authority is exercised
is known as subordinate.
2.what do you mean by power?
Ans: the team power may appear to be similar to authority power is the capacity of a person to
act accordingly. A person gets power by virtue of his intelligence, knowledge and skills.
3.what do you mean by responsibility?
Ans: responsibility is the duty of a subordinate to whom work has been assigned by a supervisor
to perform the task.
4.what do you mean by delegation of authority?

Ans: delegation of authority is the process of transfer by a supervisor to his subordinate to

perform the task.
 27

5.what are the advantages or importance or features of delegation?

Ans: the following are the advantages or importance or features of delegation?
a) Vital for every organisation
b) Relief to managers
c) Specialisation
d) Prompt decisions
e) Jobs satisfaction

a) Vital for every organisation:

Delegation of authority is the vital for every organisation. No individual can perform all the
work in the organisation. So the work should be divided.
b) Relief to managers:
Under delegation of authority the manager divide the entire work of his department among his
subordinate so he get certain relief from work.
c) Specialisation:
The work should be divided based on different departments. They are many functional
departments in an organisation such as production, sales, finance. So the work should be
divided based on specialisation.
d) Prompt decisions:
Delegation of authority to subordinate enables to make decisions within the scope of their
authority.

e) Jobs satisfaction:
Delegation of authority may lead to job satisfaction because there will be division of work
among employees of the organisation.

6.what are the types of delegation?

Ans; the following are the types of delegation:

 General
 Specific
 Written
 Unwritten
 Formal
 Informal
 28

a) General:
In the case of general delegation authority, the subordinate has to perform any function that
may be necessary for the accomplishment of the organisation.
b) Specific:
In this case, the subordinate has the authority to perform only a specific jobs.

c) Written:
Delegation made by written orders and instruction is called written delegation.
d) Unwritten:
In this case, the orders and instructions may not be written.
e) Formal:

In the case of formal, authority is delegated as laid down in the organisational structure.
f) Informal:
In the case of informal, a subordinate perform the job which is not officially bound to it.

7. what are the differences between authority and power?

Ans:

Authority
 it is the official right of an individual.
 It can be transferred by the process of
delegation.
 Authority flows down words.
 Authority relationship can be shown
in organisational charts.
 The authority of an individual
described clearly.
power
 It is the capacity of an individual.
 Power being the personal capacity of
individual, it cannot be transferred.
 Power may flow in all directions.
 Power cannot be shown in the
organisational chart.
 power of an individual cannot be
described.

8.what are the factors determining the degree of decentralisation?

Ans:
a) Attitude of top management
b) Size of organisation
c) Nature of functions
d) Availability of capable managers
e) Extent of diversification
 29

a) Attitude of top management:

If the top management does not want to delegate the authority to be middle and low level
management then the implementation of decentralisation concept is not possible.
b) Size of organisation:
The concept of decentralisation is carried out depends upon the size of the organisation.

c) Nature of functions:
In a manufacturing company production and marketing are the basic functions may be
decentralised for better results.
d) Availability of capable managers:
The decision on decentralisation is very much influenced by the availability of efficient
managers. If the managers are effective then the organisation function may flow smoothly.
e) Extent of diversification:
If the company is producing and marketing different types of produce than decentralisation will
be more benefited.
9.what is decentralisation?

Ans: decentralisation refers to dissemination of powers by the top management to the middle
management or to the low management. It is also called as levels of a management.

PART 02
RECRUITMENT,SELECTION AND TRAINING
1.what do you mean by recruitment?
Ans: recruitment is the process of searching for capable applicants and encouraging them to
apply foe jobs in an organisation.
2.define recruitment?
Ans: according to Flippo recruitment is the process of searching the candidates for employment
and encouraging them to apply jobs in organisation.
 30

3.what are the process or sources of recruitment?

Ans: the following are the process or sources of recruitment:
a) Internal
 Transfer
 Promotion
b) External
 Newspaper advertise
 Government exchange
 Private agencies
 Campus interview
 Jobs fairs
 Internet
Internal:
a) Transfer:
The term transfer refers shifting of an employee from one location to another with same salary,
position, and responsibility.
b) Promotion:
The term promotion refers to shifting of an employee from low position to high position with
high salary position and responsibility.
External:
a) Newspaper advertisement:
Newspaper advertisement is the oldest form of recruitment process. Under this method
recruitment information will be given in newspaper and the candidates can apply for a job on
newspaper advertisement details.
b) Government employment exchange:
Under this method thee government will recruit those candidates who are registered their
qualification information in government exchange office.
c) Private employment agencies:
Under this method the private consultancies will provide recruitment information to the
candidates for apply the job. They will charge commission amount from the organisation.
d) Campus interview:
Under this method companies will visit colleges for recruiting the final year students for the job.
e) jobs fair:
under this method many companies will recruit the candidates in one place or area or building.
The candidates will have more opportunities for getting the job.
f) Internet:
Internet recruitment is the modern sources of recruitment. Under this method the candidates
will get recruitment information through online or internet facilities.
 31

SELECTION
1.what do you mean by selection?

Ans: selection is the process of selecting the suitable candidate out of all applicants. It is also
the process of selecting the right candidate for the right job.
2.define selection?

Ans: selection is the process of picking the most suitable candidate from the applicants.
Received and rejecting the others.
(or)
According to Dale Yoder. Selection is the process in which candidates for the employment are
divided into two classes, those who are to be offered employment and those who are not.
3.what are the stages or process or techniques or steps involved in selection process?
Ans: the following are the steps involved in selection process
a) Receiving application form
b) Scrutiny
c) Preliminary interview
d) Test
e) Interview
f) Medical test
g) References
h) Appointment
i) Probation
j) Confirmation of services

a) Receiving application form:

The first step of selection process is receiving the application form from a candidate.
b) Scrutiny:

After receiving application form the organisation has to verify the candidates background
information.

c) Preliminary interview:
Under this method the candidate basic knowledge and experience and his educational
qualification will be interviewed. If they find suitable for the job then he will be asked foe next
process.
 32

d) Test:
A test is a sample measurements of a candidate ability and interest for the job. Under this
process the organisation will test candidates basic knowledge about the educational field.
e) Interview:
The term interview may be defined as a face to face confession between two or more persons
for the character and personality of a candidate.

f) Medical test:
Under this process candidates help will be check up. If the candidate is fit he will be consider for
the next process.
g) References:
Under this process candidates details will be referred from his past employer or from the HOD
of his college. If the candidate is good in character then he will be considered to the
appointment.
h) Appointment:
Once the candidate clears all the above test then he will be selected for the organisation. He
will get appointment letter which consist of job position job work and salary etc.
i) Probation:
Probation refers to the temporary working period for the employee. If the employee performed
well then he will get confirmation letter from the organisation t continue his series. The
probation period will be 6months to 2years.
j) Confirmation of services:

Once the candidate clear the probation period then he will get confirmation of service letter
from the organisation.

TRAINING
1.what do you mean by training?
Ans: training is the process of importing skills or job knowledge to a person. It takes an
individual from were he is to where he should be.
(or)
Training is the systematic process of employee skills and knowledge to improve this job
performance.
 33

2.define training?
Ans: according to Edwin. B. flippo. Training is the act of increasing the skill and knowledge of an
employee in an organisation.
3.what are the techniques or types or kinds or methods of training?
Ans:

a) On the job training

 Induction training
 Apprenticeship training
 Job rotation
 Refresher training
 Coaching

b) Off the job training:

 Seminars and conferences

 In-basket method
 Role playing
 Simulator training
 Case study
On the job training:
The training programme which is given to the employer within the organisation is called on the
job training.
a) Induction training:
Induction training is also called as orientation training. It Is required for all new employee. A
person who has just been inducted into an organisation must be informed of his duties,
responsibility, ethics and other management activities.
b) Apprenticeship training:
Under apprenticeship training, the candidate is appointed as an assistant for a senior worker
who is responsible for observing his performance and making report to the management.
Under this method the junior worker directly learns the work from the senior worker.
c) Job rotation:
Under this method of training a candidate is given training on all aspects of job under job
rotation training candidate will become master in all aspects of work.
For example: in a bank a candidate will get training in all aspects of work.
 34

d) Refresher training:
Under this method of training a candidate will update of refresher his knowledge and skills
towards the job. It gives to the experienced employee of the organisation.
e) Coaching:
Under this method a senior manager is designated as the coach of a candidate. The coach
observes the action of trainers and provide advice, guidance, and suggestions.

Off the job training:

The training program which is given to the employees outside the organisation is called as off
the job training.
a) Seminars and conferences:
If large number of candidate are to be trained at a time other methods of training may not b
suitable and for this purpose seminar and conferences are arranged seminar and conferences
and meeting where some experts deliver lectures on the topic related with training. If the
candidates have any doubts they can clear from them.
b) In-basket method:
In-basket method is meant for white colour jobs. Where the job is related with paper work and
it is not related with production work under this method all the candidate records and
documents of organisation are given to all candidate for learning and training. By reading all the
documents they understood how the organisation functions.
c) Role playing:
Role plying is meant by those candidates who are appointed for executive jobs where they have
to take independent decision. In this training method the training are given role to play and a
problem is placed before them and they asked to solve it, which can express their strength.
d) Simulator training:
When costly machines are used to the training purpose. The trainee may mishandle the
machine and which may lead to loss to the organisation so to avoid such loss, the organisation
make use of duplicate machines to machine to given training to candidate.
e) Case study:
Under this method, a case or business problems is placed before the training they asked to
solve the problem. Under case study method, the analysing anddecision making skills of a
candidate can be judged.
 35

UNIT 04: CONTROLLING

1.what is controlling?
Ans: controlling is the act of guiding or motivating and leading the team or subordinate or
employee of the organisation.
2.Define controlling?

Ans: According to Breach controlling is the continue process of measuring the actual results of
an organisation in the relation to the results which were planned.
3.what are the nature or importance or characteristics of controlling or control function?
Ans:
a) It is backward looking
b) It gives meaning to planning
c) It involves appraisal or evaluation
d) It is a pervasive function
e) It is a continue process

a) It is backward looking:

Controlling involves comparing the actual performance with the targets. So it is a background
looking process.

b) It gives meaning to planning:

Planning will lose its significant in the absent of control. It is only control that indicates the
extent to which the plan has been successfully implemented.
c) It involves appraisal or evaluation:
The nature of control function is to make an appraisal or evaluation of the actual performance.
d) It is a pervasive function:
Controlling is the pervasive function it is performed at all the levels of management namely top
level, middle level, low level.

e) It is a continue process:
Controlling is the continue process. Every manager in an organisation has to control his
subordinate properly.
 36

4.what are the process 0R stages of control function?

(or)
Explain control process or stages of control function?

Ans:
a) Establishment of standards
b) Measurement of actual performance and making comparison
c) Finding out deviations
d) Taking corrective actions

a) Establishment of standards:
The first step in the process of control is to establish standards for every business operation.
Standards are the criteria against which the actual results can be measured. Standards may be
fixed for individual, groups, departments and for the organisation.
To be effective the standards should be:
 Objective
 Pre-determined
 Attainable
 Measurable
 Definite

b) Measurement of actual performance and making comparison:

Under this process the organisation measures its performance and it win make comparison.
Every manager has to measure the quality of work performed by the employee of the
organisation. After the performance has been measured, it must be compared with the
predetermined standards.

c) Finding out deviations:

Under this process, the organisation has to find out the deviation controlling. If the organisation
achieved its goal then the management can be satisfied. So every organisation has to focus on
its objective.
d) Taking corrective actions:
A good controlling system should try to remove the defects causing deviation from the target.
Based on the nature of the defects, corrective action has to be taken.
 37

5.what are the TYPES OF CONTROLLING (0R) TYPES OF CONTROL TECHNIQUES IN

MANAGEMENT

Types of Control Techniques in Management

 Budgetary Control

 Standard Costing

 Financial Ratio Analysis

 Internal Audit

 Break-Even Analysis

 Statistical Control

 Budgetary Control
Budgeting simply means showcasing plans and expected results using numerical information.
As a corollary to this, budgetary control means controlling regular operations of an organization for
executing budgets.
A budget basically helps in understanding and expressing expected results of projects and tasks
in numerical form. For example, the amounts of sales, production output, machine hours, etc. can be
seen in budgets.
 Standard Costing
Standard costing is similar to budgeting in the way that it relies on numerical figures. The
difference between the two, however, is that standard costing relies on standard and
regular/recurring costs.
Under this technique, managers record their costs and expenses for every activity and compare
them with standard costs. This controlling technique basically helps in realizing which activity is
profitable and which one is not.
 Financial Ratio Analysis
Every business organization has to depict its financial performances using reports like balance
sheets and profit & loss statements. Financial ratio analysis basically compares these financial
reports to show the financial performance of a business in numerical terms.
Comparative studies of financial statements showcase standards like changes in assets,
liabilities, capital, profits, etc. Financial ratio analysis also helps in understanding the liquidity and
solvency status of a business.
 Internal Audit
Another popular traditional type of control technique is internal auditing. This process requires
internal auditors to appraise themselves of the operations of an organization.
 38

Generally, the scope of an internal audit is narrow and it relates to financial and accounting
activities. In modern times, however, managers use it to regulate several other tasks.
 Break-Even Analysis
Break-even analysis shows the point at which a business neither earns profits nor incurs losses.
This can be in the form of sale output, production volume, the price of products, etc.
Managers often use break-even analysis to determine the minimum level of results they must
achieve for an activity. Any number that goes below the break-even point triggers corrective
measures for control.
Statistical Control
The use of statistical tools is a great way to understand an organization’s tasks effectively
and efficiently. They help in showing averages, percentages, and ratios using
comprehensible graphs and charts.
Managers often use pie charts and graphs to depict their sales, production, profits,
productivity, etc. Such tools have always been popular traditional control techniques.
 39

UNIT 05: CO-ORDINATION

1.define coordination?
Ans: according to Aeily, coordination is the orderly arrangement of group effort to provide to
unity of action in pursuit for common purpose.
(or)

Co ordination is the process of linking the various activities of an enterprise. Every department
in an organisation functions independently but activities of one department influence those of
other departments.

2.what are the nature and characteristics of coordination?

Ans: the following are the nature and characteristics of coordination:
a) Coordination helps to attain common goal
b) It provides a sense of goal
c) It promotes efficiency
d) It promotes good human relations

a) Coordination helps to attain common goal:

Maintaining good relationship between among the employee may also leads to attain the
organisational goals easily. Every employee must work towards the attainment of
organisational goals.
b) It provides a sense of goal:

In an organisation where every individual or department performs different activities, it is only

coordination that provides a sense of directions to one and all.
c) It promotes efficiency:
Better coordination among the employees may also leads to completion of work in more
effective manner.
e) It promotes good human relations:
Effective coordination will lead to maintaining better relationship among the employees of
organisation. It ultimately leads to maintain good human relations between them.
 40

3.what are the techniques of coordination?

Ans: the following are the techniques of coordination:
a) Balancing
b) Timing
c) Integrating

a) Balancing:
Balancing means ensuring sufficiency of aspect to support the others. For example: the
business can balance its activities by various techniques.
b) Timing:
Timing refers to the task of making the time schedules of different activities so that they
support and reinforce one another.
c) Integrating:
Integrating refers to the task of unifying diverse interest in order to achieve the common goal.
Every individual has self interest in his mind while working.

4.what are the principles of coordination?

Ans:
a) principle of direct personal contact
b) principle of early beginning
c) principle of reciprocity
d) principle of continue

a) principle of direct personal contact:

this principle says that direct personal contact with the persons concerned is essential for
achieving effective coordination. Face to face coordination is the best way to resolve any issue.
b) principle of early beginning:
In the planning stage itself suitable provision for coordination may be done. Setting o targets
and preparation of plans must be done in consultation with the subordinate.
c) principle of reciprocity:
according to this principle when a person knows that he can influence and can be influenced by
others he would avoid unilateral (or) one sided action. This should make coordination easy.
d) Principles of continue:
This principle says that coordination is a continue activity. The organisation needs to maintain
better coordination regularly.

5.what are the differences between coordination and cooperation?
Ans:
Coordination
 Coordination is a broader concept
then cooperation.
 Coordination requires something
more than the desire and
willingness of the individual to
cooperate.
41
Cooperation
 Cooperation just refers the
attitudes of individual.
 Cooperation among individual is
necessary to some better human
relations in the work place.