MANAGEMENT THEORY & PRACTICE-BASIC QUESTIONS

Q1. Define management? Elaborate the management process? 1. The verb manage comes from the Italian maneggiare (to handle — especially a horse), which in turn derives from the Latin manus (hand). The French word mesnagement (later ménagement) influenced the development in meaning of the English word management in the 17th and 18th centuries.1 2. Management in all business and human organization activity is simply the act of getting people together to accomplish desired goals and objectives. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.Management can also refer to the person or people who perform the act(s) of management. 3. Some definitions of management are: a. Organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives. Management is often included as a factor of production along with machines, materials, and money. According to the management guru Peter Drucker (1909–2005), the basic task of a management is twofold: marketing and innovation. Practice of modern management owes its origin to the 16th century enquiry into low-efficiency and failures of certain enterprises, conducted by the English statesman Sir Thomas More (1478–1535). Directors and managers who have the power and responsibility to make decisions to manage an enterprise. As a discipline, management comprises the interlocking functions of formulating corporate policy and organizing, planning, controlling, and directing the firm's resources to achieve the policy's objectives. The size of management can range from one person in a small firm to hundreds or thousands of managers in multinational companies. In large firms the board of directors formulates the policy which is implemented by the chief executive officer. MANAGEMENT PROCESS

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Management Process basically consists of following a. Project Initiation b. Project Planning c. Project Execution

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Oxford English Dictionary

Prepare for the Project b. Project Management Institute. The logical dependencies between tasks are defined using an activity network diagram that enables identification of the critical path. Project planning is part of project management. Project Closeout and Evaluation 5. and complete schedule. . Project Control and Validation e. 3 Richard H. Development of the Project Charter is a pivotal starting point for the project. Confirm Approval to Proceed to Next Phase 6.3 Then the necessary resources can be estimated and costs for each activity can be allocated to each resource.2 d. realistic. Scheduling.). Perform Risk Identification d. Progress will be measured against the baseline throughout the life of the project. Project Execution is characterized by the actual work on the tasks planned and project Control involves the comparison of the actual performance with the planned performance and taking appropriate 2 Harold Kerzner (2003). establishing the project definition that will serve as the foundation for all future efforts. Sponsorship of the project must be confirmed or gained during Project Initiation. the plan becomes what is known as the baseline. Develop Initial Project Plan e. Project Execution follows the Project Planning Phase and ideally starts once the Project Plan has been approved and baselined. ed. is essential to the success of a project. The purpose of Project Initiation is to begin to define the over-all parameters of a project and establish the appropriate project management and quality environment required to complete the project. An accurate. helps to ensure a commitment to the project. Edward Yourdon (2000). Project Planning. Having a Project Sponsor. Define Cost/Scope/Schedule/Quality (CSSQ) c.). ISBN 1930699-89-1. The completion of this process is marked by the Project Kickoff Meeting. ISBN 0-8186-8000-8 4 Fleming. Project Execution. the project scope is defined and the appropriate methods for completing the project are determined. This high-level schedule will be refined over time. Following this step. Earned Value Project Management (Third Edition ed. ed. Once established and agreed. Wiley-IEEE Computer Society Press. This phase consists of the following processes a. Analyzing progress compared to the baseline is known as earned value management. Software Engineering Project Management (2nd Ed. Project Management: A Systems Approach to Planning. Project Initiation. the durations for the various tasks necessary to complete the work are listed and grouped into a work breakdown structure. Thayer. which relates to the use of schedules such as Gantt charts to plan and subsequently report progress within the project environment. in which the Project Manager presents the Project Charter. a high-level Project Schedule is developed as the roadmap to more detailed Project Planning and Project Execution and Control. rigorously maintained. At this stage. Quentin (2005). ISBN 0-471-22577-0.).2 Initially. Wiley. giving the total project cost. Float or slack time in the schedule can be calculated using project management software. the project plan may be optimized to achieve the appropriate balance between resource usage and project duration to comply with the project objectives. Also during Project Initiation. and will serve as the primary source of information regarding project status and progress. and securing approval early in the project management lifecycle. and Controlling (8th Ed.4 7.

service. Change Control Process. Risk Monitoring and Control. Performance Monitoring. This defines the procedures to handle the changes that are introduced during Project Execution and Control The basic processes of the Project Execution and Control can be: a. This often involves acceptance of fitness for purpose with end users and other product stakeholders. Information Distribution or Status Reporting. or system accomplishes its intended requirements. Contract Administration. Scope Control. Project Control and Validation. . Project Execution and Control Phase has a direct correlation to project progress and stakeholder's expectations. 9.3 corrective action to get the desired output.It is sometimes said that validation can be expressed by the query "Are you building the right thing?" and 11. cost and schedule. thus emphasizing the importance for the Project Execution and Control Phase. h. d. Project Team is responsible for the following activities: a. b. c. Review of Metrics and Status Reports. e. f. d. All Project Key stakeholders are responsible for taking necessary action of the variances thus determined so as to complete the project within time and budget Project Plan Execution. c. d. Schedule and Cost Control. The facilitating processes during Project Execution and Control can be: a. if unnoticed. c. schedule and risk and deviate the project from the Project Plan. Quality Assurance and Quality Control. Project Manager is responsible for performance measurement which includes finding variances between planned and actual work. b. Even the minor issues. Project manager is responsible for providing Project Status Report to all key stakeholders to provide visibility. Project Key stakeholders are responsible for the review of the metrices and variances. Project Administration. 10. Team Members execute the tasks as planned by the Project Manager. e. g. 8. can cause major impact on cost. Validation is Quality assurance process of establishing evidence that provides a high degree of assurance that a product. b. During this phase.

Directing is influencing people's behavior through motivation. and control of tasks and the flow of information within the organization. e. Explain how the concept of management can be viewed in the manufacturing and servicing organizations? Q3. Administrative activities include the archiving of the files and documenting lessons learned. 12. while "building it right" checks that the specifications be correctly implemented by the system. a tactic for accomplishing a specific goal. Project Closeout and Evaluation. communication. d. In some contexts.This phase consists of: a. . it is required to have written requirements for both as well as formal procedures or protocols for determining compliance. b. evaluating and compensating are the specific activities included in the function. 1.. coordination. In the family business. group dynamics.. Closing includes the formal acceptance of the project and the ending thereof. Q2. The purpose of directing is to channel the behavior of all personnel to accomplish the organization's mission and objectives while simultaneously helping them accomplish their own career objectives. leadership and discipline. b. its mission. Recruiting. Project close: Finalize all activities across all of the process groups to formally close the project or a project phase . Organizing is establishing the internal organizational structure of the organization. Planning is the ongoing process of developing the business' mission and objectives and determining how they will be accomplished. Staffing is filling and keeping filled with qualified people all positions in the business. and the narrowest. It is in this function that managers distribute authority to job holders. c.4 verification by "Are you building the thing right?" "Building the right thing" refers back to the user's needs. training. hiring. e.g. The focus is on division. Fol are the five management functions a.g. Discuss the five management functions while elaborating on the planning function and the pre requisite for effective planning. Contract closure: Complete and settle each contract (including the resolution of any open items) and close each contract applicable to the project or project phase. Planning includes both the broadest view of the organization. staffing includes all paid and unpaid positions held by family members including the owner/operators.

influencing the behavior of people in the organization. a. It is concerned with scope of the business and what distinguishes this business from similar businesses. They are expected to be general. physical and financial resources. Planning is the fundamental function of management from which the other four stem. planning basically encompasses some key Vision. It is the most emotional of the four levels in the hierarchy of purposes. innovation. They are expected to be SMART: Specific. and untimed. Development of tactics is a fifth level of planning. the most specific and narrow plans. observable. The need for planning is often apparent after the fact. Likewise. productivity. depends on the goals to be achieved. . However. Finally. profitability. The planning function provides the goals and standards that drive the controlling function. and taking corrective or preventive action as necessary. Objectives. An organization's reason for being. b. Controlling is a four-step process of establishing performance standards based on the firm's objectives. Tactics. the leading function. what. describe who. staffing. Top managers normally provide a vision for the business. Postponement of planning especially plagues labor oriented. Planning Terminology. Measurable. Goals are specific statements of anticipated results that further define the organization's objectives. leading and controlling functions stem from the planning function. The elements/terms as described below. comparing the two. Objectives refine the mission and address key issues within the organization such as market standing. challenging. d. where and how activities will take place to accomplish a goal. Mission. The manager is ready to organize and staff only after goals and plans to reach the goals are in place. the determination of whether or not goals are being accomplished and standards met is based on the planning function. in the controlling function. e. c. its characteristics vary by level of management. hands on managers. measuring and reporting actual performance. Nonspecific directional and motivational guidance for the entire organization.5 e. Goals. 3. Mission reflects the culture and values of top management. Attainable. and Timed. planning is easy to postpone in the short-run. However. The organizing. 2. Rewarding. Planning is important at all levels of management. management and worker performance and efficiency. when.

Delayed. they can't be undone. and it is described as intelligently processing information that will result in rational decision making. It allows one to acknowledge mistakes and fresh decisions can be taken depending upon the new circumstances. Such decisions are taken when there is no other option. d. Reversible. However. specially in the case of businesses. The effects of these decisions can be felt for a long time to come. Different Types of Decision Making. Reversible decisions are not final and binding. In fact. 2. Experimental.html visited on 12-08-09 . These decisions are permanent. however. rational choices that are consistent. One of the different types of decision making is the experimental type in which the final decision cannot be taken until the preliminary results appear 5 http://www. e. Such decisions are put on hold until the decision maker thinks that the right time has come. c.6 Q4. Decisions are made everyday. from all levels of an organization make decisions. Once taken. such decisions give one enough time to collect all information required and to organize all the factors in the correct way. These decisions enable one to make maximum of the opportunity available at hand. Individuals.buzzle. but a cognitive process or a thought-out process to achieve rational decisions. The following are the most common types of decision making styles that a manager in a business or even a common man might have to follow are 5 a. they can be changed entirely at any point of time. The wait might make one miss the right opportunity that can cause some loss. one should also take the long-term results into consideration. they all share common responsibility. b. only a good decision maker can take decisions that are instantaneous as well as correct.com/articles/types-of-decision-making. Irreversible. A manager undertakes the responsibility of making rational choices by being logical and consistent in a decisive manner. In order to be able to take the right decision within a short span of time. and weighing those outcomes against their respective costs Decision making process differ from one level of management to another. and "value-maximizing choice within specified constraints. estimating possible outcomes. Quick Decisions. Evaluate different types of decisions that managers take at different level in an organization? 1. but their decisions affect their job securities as well as the organization's interest. However. Decision making is more than randomly choosing an option. Not all decisions are multifaceted. According to Walls "the premise behind rationality in organizations is based on the notion that reasonable people will respond to their environment by assessing known facts. A successful decision making process involves rationally analyzing the problems to achieve the most efficient choice that will compliment the situation.

pp. This allows a manager to change and adjust his plans until the final commitment is made. the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. This approach is used when one is sure of the final destination but is not convinced of the course to be taken.6 2. positions. departments. Reading. Conditional decisions allow an individual to keep all his options open. Q5. If the result is positive it is followed further. Mass. This approach involves trying out a certain course of action. Advantages & Disadvantages. the greater his presumed expertise in adjudicating problems that may arise in the course of the work carried out at lower levels of the organization. g. conditional decisions allow a person to take up a different course of action. ISBN 0140805176 9780140805178. then a fresh course is adopted.7 and are positive. Conditional. entry and subsequent advancement is by merit or seniority.: Addison-Wesley. 884–89. Formal Organization. 1. The higher his position in the hierarchy. 6 Cecil A Gibb (1970). According to Weber's definition. OCLC 174777513 . Once the competitor makes a new move. sections. Divisions. What do you understand by the term formal organization? State its advantages and disadvantages. He sticks to one decision so long as the circumstances remain the same. if not. f. Leadership (Handbook of Social Psychology). It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of administrative subdivisions in the organization and endows them with the authority attached to their position. Each employee receives a salary and enjoys a degree of tenure that safeguards him from the arbitrary influence of superiors or of powerful clients. Such a trail and error method is continued until the decision maker finally arrives at a course of action that convinces him of success. and tasks make up this work structure. Trial and Error. jobs. An organization that is established as an instrument or means for achieving defined objectives has been referred to as a formal organization. Thus. Its design specifies how goals are subdivided and reflected in subdivisions of the organization.

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