11.MCQ‘s (Multiple Choice Questions) Click the next button on the bottom of your screen to attempt the Test containing quality MCQ’s on thistople -L_ The Pattern of the tests based on the Real Examination Pattern 2. Thlshelps you n assessing your understanding and is very useful in improving retention. 3. You willalsoget toknow the correct answersand related explanationatthe endofthetest. ‘So do not forget to attempt these MCO's, Happy Learning! tou/ebiaraded, wordpress.com Poge 120 hitov/vwwedutep.co.inbu a Edutap == Nature and = '™ Scope of == Management Importance: From ths topic 2 questions were asked in 2036 RBI Exam. One question wes asked from ‘Mo and other one from Ethle frameworks. The topic Nature and Scope of management is ery simple. IF you google on nature and scope of management you wil get many quick reference pages but the ‘questions which have been asked in the exam are from the sde topics. MBO and Ethic frameworks are ‘elated to ths topic but they are rot something which you wil get roread directly on google. rade wordoress.com Page lt itp/ivwwedutep coinContents Introduction Defintion of Management. Concepisof Management Features of Management. Importance of Management. [Adminstration and Management. Levels of Management Nature of Management ‘Scope of Management. 10. Management by Objectives 10.1, MBO Process 11, Ethiesand Managemen. 12, Schools of Management. 42. Sciantie School of Management 12.2 Classcal school of Management. 123 Behavioral Schoo! of Management. 13. MCOYs (Multiple Choice Questions). tou/ebiaraded, wordpress.com Page lz itp/ivwwedutep coinbu 1, Introduction Every human being has several needs and desires, But no indvival can sat al Nis wants “Therefore, people work together to meet their mutusl needs which they cannot fll inch. Moreover, man is @ socal being ashe likes to ive together with other people. ts by working and living together in organized groups and institutions that people stiy their economic and socal needs, Asa resutthere are several ypesof groups. ery schoo, government army business ‘em, a crieket team andthe ke Such formal greups can achieve their goa etfctivly nly when the efforts ofthe people working in these groups are propery coordinated and controlled. The task of ‘geting resus through athers by coordinating their eforssknown as management. st asthe mind coordinates and reguates all the activites of a person, management coordinates and regulates the acthitiesofvrious member of anargaristion 2. Definition of Management Its very alifcu ro give a precise definition ofthe term “management, Different scholars rom different | eau rte capt srvcre eT ren soars Managemen: Cpt butoatog jaenest | anager of waning apa idend potey decison La). eenon ttn sins ‘Bevibulon eased France is viewed as one of the most important factors in every enterprise. Fnancal management is concerned with the managerial actives pertaining to the procurement and tiation of funds or finance for business purgeses. The main functions of financial ‘management include Estimation of capital requirements; Ensuring a fale retun tolivesters Determining the suitable sources of funds; Laying down the optimum and suitable capital Preparation, analysis and interpretation of financial statements Laying down e proper dividend policy Negotiating for outside fnencng MPR Pee 4A, Personnel Management rade wordoress.com Page [13 itp //wwedutap.coinbu AY Personnel Management is that phase of management which deals with the effective control ‘and use of manpower. Efective management of human resources is one of the mast crucial {actors assecated withthe success ofan enterprise, Personnel management is concerned with ‘managerial and operative functions, Managerial functions of personnel management include: 2. Personnel planing: 'b. Organizing by setting up the structure of relationship among Jobs, personnel and physical factors to conribue towards organization goals Procurement of ight kind and numberof persons; “Training and development of employees, Determination of adequate and equitable compensation of employees; Integration of the interests ofthe personnel with that ofthe enterprise; and Providing good working conditions ard welfare services tothe employees. ‘Across these branches, there are functions which are performed Planning, Organizing, Staffing, Directing and Controling, We wil learn about these functions in later sectlons 10. Management by Objectives Objective mears the desired or needed resut to be achieved by specific ime. For example objective could be toincrease saleby 10% in next 1 year. “The concept of "Management by Objectives (MBO) was st given by Peter Drucker n 1954, Itcan be defined asa process whereby L 2 3 ‘The employes and he superiors come together to ety common goals ‘The employes set their goals tobe achieved ‘Tho standards to bo taken as the criteria for measurement of thelr performance and contribution “Tho essence of MBO Is participative goal setting. The principle Behind Management by Objectives (0480) isto make sure that everybody within the organization as a clear understanding of the ams, or rade wordoress.com Page im itp //wwedutap.coinobjectives, of that organization, as well as awareness of their own roles andresponsibilties in achieving ‘those aims The goals are agreed by employees and ae not merely imposed on them ‘An important part of the MBO is the meesurement and the comparison of the employee's actual performance withthe standards set. deal, when employees themselves have been involve withthe ‘goal setting andthe choosing the course of action tobe fllowed by them, they are mare likely tfufill ‘heir responsbities| Benefits of MBO. ‘arity of Goalsto Employees Employees fee motivated as they setup their goals themselves Employees feel more sense of responsibilty as they decide by themselves what they want to do Delegation of Authority: M&O ensures that employees in every department are all working ‘towards common goals. MBO allows delegation to be achieved in a coordinated way Drawbacks of MBO 11. MBO system sounds appealing In theory, in practice It can become bureaucratic and time ‘consuming, Managers and subordinates can spend hours in meetings trying to agree targets 2. Setting targets does not guarante that thoy are achioved n ome cases, compariesintroduce MBO but individual managers are unwilng to delegate fuly other subordinates 10.1. MBO Process 4 Set Company Goals: The Company goals are st by higher management. The goals set by the superiors are preliminary, based onan analysis and judgment asto what can ard what should be accomplished by the organization within a certain period toy/eiaradeb, wordpress.com Page [15 itp //wwedutap.coinbu 2. Define Employee Objectives: First the employees ere made aware of the goals end the strategy of the company. The manager can then proceed to work with employees in setting their objectives to align with company goals. The manager asks what goals the ‘employees believe they can accomplish in what tne period, and wth what resources. 3. Continuous Monitoring of Performance: The performance ard progress with respect: employee cbjectives is done an continuous bass. Ifthe employe is lagging behind then the employees given feedback onthe same 44. Performance Evalustion: Under this MBO process performance review is made by the participation ofthe concerned managers atthe end of certain period 5. Reward Employee: The employees are rewarded onthe bass ofthe performance. When you reward goal achievors you snd a clear message to everyone that goal attainment |s valued and that the MBO process is nat just an exercise but an essential aspect of performance appraia! 11. Ethics and Management In this era of globalization and multinational competion Ethical practices in business are assuming imoortance as elatonsios wit various suppliers and customers are shaped by ethical practicesand ‘mutual trust, so ethical deion taking assumes importance in today's corpeate wor Wie wil dscuss three models of Ethics in Management 1. Joseph son institute Ethical decision making model: This model is widely used in taking ethical decisions. k consists of 8 Steps: |. Alldecisions must take into account and reflec @ concern forthe interest and wellbeing of allzakeholders. |. Ethicl values and principles ways take precedence over non ethical ones. IL 's proper to volte an ethical principle cely when i's clearly necessary to advance ‘another true ethical principle, which according tothe decison makers conscience wil produce the greatest balance of good inthe long un 2, The Plus Decision ~Making Model: To make it oa fiers, let us adapt to mnemonic word "PLUS" 0 understand and apply these ethics % Policies It 'sconsstent with my organizations Policies, Procedures and Guidelines?) V. Le Legal (sit Acceptable under the applicable las and Regulations?) rade wordoress.com Page [16 itp //wwedutap.coinbu Vi. U-= Universal (Does it conform to the universal princines values my organizations has adopted?) VIL $=Self(Doesit satisfy my personal defrition of ight, Good and Far?) 3. Taylor Four Way test: Herbert J. Taylor was a business executive, civic leader and sponsor of (Cristian organizations who belonged to the United States of Ameria. His Ethical Model was ‘based on these d questions 1. tstethe truth? I Isiefartoalleoncerned? IL Wilt build goodwill and better friendships? IV. Wilt be benefiialto all concerned? In 1840s, when Talor wos an international rector of Rotary, he offered the Four Way Test to the organization, and It was adopted by Rotary fr Ks internal and prometional use. 12. Schools of Management 12.1 Scientific School of Management FW Tavior is considered to be the father of scientific management. Four basic part of 2 series of ideas developed by Taylor are as fellows 4. Replace working by “rule of thumb" or simple habit and common sense, and instead use the scientific method to study work and determine the most effclent way to perform specie tasks. 2 Rather than simply assign workers to just any job, match workers to ther Jobs based on Capability and motivation, and trainthem to work at maximum effclency. 3. Monitor worker performance, end provide instructions and supervision to ensure that theyre sing the most effitnt ways of workig. 4, Allocate the work between managers and workers so that the managers spond their time planning and traning, allowing the workers to perform thelr tasks efftonty. 12.2 Classical School of Management Clsscal management theory is based on the belief that workers only ave phsical and economic ‘needs. it does not take into account social needs or job satisfaction, but instead advocates 2 specialization of labor, centralized leadership and decision-making, and profit maximization, The rade wordoress.com Page l17 itp //wwedutap.coinleading proponents of classical organization theory were Henri Fayol (a French engineer) and Max ‘weber. The principles are ‘© Hierarchical structure — Under classical management theory, workplaces are vided under thre distinct layers of management. Atte very top are the owners, board of directors and executives ‘hac set the long-range objectives for a firm, Midele maragement takes onthe responsibilty of overseeing supervisors while setting goals atthe department level to it within the confines of the ‘managers’ budget. At the lowest level ofthe chaln are supervisors, who manage day-to-day activities, address employee problems and provide training ‘© Specialization ~The clesical management thecry Invalves an assembly line view ofthe workplace in which largetass are broken down into smaller ones that are e5sy to accomplish. Workers Understand thelr roles and typically specialize In a single area, This helps increase preduetWty and efclency while eliminating the need for employees to multesk ‘2 Incentives ~This theory believes that employees are motivated by financial rewards. t proposes ‘that empioyeas will work harder and be more productive If they are awardod incentives based on ‘their work Employers who can motivate thelr emplayees using this tactic may be able to achieve Increased production, efficiency and prof. Fayol also sytheszed 14 principles for organizational design and effective administration as under 4. Dlvision of work: Dision of work and speisliaation produces mare and better work withthe same efor. 2 Authority and responsibilty: Authority is the right to give orders and the power to exact ‘becience. Authority creates respersibity. 3. Discpline: Good cistipine requires managers to apply sanctions whenever violations become apparent 4. Unity ofcommand: An employee should receive orders fram only one superar. 5. Unity of direction: Organizational actives must have one central authority and one plan of 6. Subordination of individual interest to general Interest: The Interests of one employee or troup of employees are subordinate tothe interests and goals ofthe organization 7. Remuneration of personnel: Salaries to employees shouid be fair end provide satisfaction both tothe employee and employer 8. Centralzation: The objective of centralization isthe best utilization of personnel 9. Sealar chain: A chain of authority exists from the highest organizational authority to the lowes ranks 30. Order: The right materials and the right employees are necessary for e2ch organizational function and activity LL Equity: equity is 2 combination of kindness and justice. Both should be considered when ealing with employees. tou/ebiaraded, wordpress.com Page [18 itp //wwedutap.coinbu 12. Stability of tenure of personnel: To atttin the maximum productivity of personnel, a stable Work force is needed, 13. Inflate: Zea, eneray, and initiative are desired at alllevels ofthe organizational ladder. 14, Esprit de corps: Teamworkis fundamentally important toan organization. 12,3 Behavioral School of Management ‘The behavioral management theory is often caled the human relations movement because it addresses the human dimension of work Behavioral theorists belived that a better understanding of ‘human behavior at work, such as motivation, conflict, expectations ete, are important in management, The Eton Mayo and Roethlisberger Hawthorne experiment in Chicago from 1928 to 1932 concludes that human relations and the socal needs of workers are crucial aspects of business management, As per Elton Mayo the fllowing are important to understand 4. Work isa groupactivty, 2. Theneed for recognition, security and sense of belonging is more Important in determining workers morale and productivity than the physical conditions under which he works. 3. The worker is a person whose attitudes and effectiveness are conditioned by socal demands {rom both inseand outside the work plant. 4 Informal groups within the work plant exercise strong social controls over the work habits and attitudes ofthe individual worker. rade wordoress.com Page [19 itp //wwedutap.coinbu 13 MCQ's (Multiple Choice Questions) Click the next button on the bottom of your screen to attempt the Test containing quality MCQ’s con this topic. 1. The Pattern of the tests based on the Real Examination Pattern 2. Thishelps you in assessing your understanding and is very useful in improving retention. 3. You will alzo get to know the correct answers and related explanation at the end of the test, ‘So do not forget to attempt these MCQY's. Happy Learning! rade wordoress.com Page (20 itp //wwedutap.coina Edutap ‘Management Part 2 ~ Planning and Organizing Importance: There was 1 question oft markashed in 2016 Phase 2 Exam from Deckion Tree Model tou/ebiaraded, wordoress com Pogelt itp/ivwwedutep coin