1: What do you mean by MBO?

MBO is a management model that aims to improve performance of an organization by clearly defining
objectives that are agreed to by both management and employees. According to the theory, having a
say in goal setting and action plans should ensure better participation and commitment among
employees, as well as alignment of objectives across the organization.

2: Name any two techniques of Decision making?

Decision Matrix: A decision matrix is used to evaluate all the options of a decision. When using the
matrix, create a table with all the options in the first column and all the factors that affect the decision in
the first row.
T-Chart: This chart is used when weighing the plusses and minuses of the options. It ensures that all the
positives and negatives are taken into consideration when deciding.
3: What do you mean by communication?
Two-way process of reaching mutual understanding, in which participants not only exchange (encode-
decode) information, news, ideas and feelings but also create and share meaning. In general,
communication is a means of connecting people or places. In business, it is a key function of
management--an organization cannot operate without communication between levels, departments,
and employees. 
4: Define the term coordination?
The synchronization and integration of activities, responsibilities, and command and control structures
to ensure that the resources of an organization are used most efficiently in pursuit of the specified
objectives. Along with organizing, monitoring, and controlling, coordinating is one of the key functions of
management.
5: What do you mean by formal organization?
Answer: Formal organization is a fixed set of rules of intra-organization procedures and structures. They
have a definite place in the organization due to a well-defined hierarchical structure which is inherent in
any formal organization.
6: What do you mean by directing?
DIRECTING is said to be a process in which the managers instruct, guide, and oversee the performance
of the workers to achieve predetermined goals. Directing is said to be the heart of management process.
Planning, organizing, staffing has got no importance if direction function does not take place.
7: Explain the term "delegation of authority."
The Delegation of Authority is an organizational process wherein, the manager divides his work among
the subordinates and give them the responsibility to accomplish the respective tasks. Along with the
responsibility, he also shares the authority, i.e., the power to take decisions with the subordinates, such
that responsibilities can be completed efficiently.
8: What do you mean by controlling?
Controlling can be defined as that function of management which helps to seek planned results from the
subordinates, managers and at all levels of an organization. The controlling function helps in measuring
the progress towards the organizational goals & brings any deviations & indicates corrective action.
9: Define the term "RIICO."
Rajasthan State Industrial Development and Investment Corporation, popularly known as RIICO, is a
premier agency of Government of Rajasthan that has played an important role in the industrial
development of Rajasthan. In 1980 RSIMDC split into RIICO & RSMDC.
10: What do you mean by grape wine channel of communication?
Grapevine is a form of informal communication, operates both in internal and external informal
channels which can contribute to and benefit the organization.
Therefore, it is found in all organizations. It does not follow any prescribed or predetermined rule and
spreads any information quickly. Through the grapevine, information flows in different directions linking
almost every one of an organization.
Q. 2. Discuss the process of planning?
Answer: Management planning is the process of assessing an organization's goals and creating a
realistic, detailed plan of action for meeting those goals. Much like writing a business plan, a
management plan takes into consideration short- and long-term corporate strategies. The basic steps in
the management planning process involve creating a road map that outlines each task the company
must accomplish to meet its overall objectives.
Establish Goals
The first step of the management planning process is to identify specific company goals. This portion of
the planning process should include a detailed overview of each goal, including the reason for its
selection and the anticipated outcomes of goal-related projects. Where possible, objectives should be
described in quantitative or qualitative terms. An example of a goal is to raise profits by 25 percent over
a 12-month period.
Identify Resources
Each goal should have financial and human resources projections associated with its completion. For
example, a management plan may identify how many salespeople it will require and how much it will
cost to meet the goal of increasing sales by 25 percent.
Establish Goal-Related Tasks
Each goal should have tasks or projects associated with its achievement. For example, if a goal is to raise
profits by 25 percent, a manager will need to outline the tasks required to meet that objective. Examples
of tasks might include increasing the sales staff or developing advanced sales training techniques.
Prioritize Goals and Tasks
Prioritizing goals and tasks is about ordering objectives in terms of their importance. The tasks deemed
most important will theoretically be approached and completed first. The prioritizing process may also
reflect steps necessary in completing a task or achieving a goal. For example, if a goal is to increase sales
by 25 percent and an associated task is to increase sales staff, the company will need to complete the
steps toward achieving that objective in chronological order.
Create Assignments and Timelines
As the company prioritizes projects, it must establish timelines for completing associated tasks and
assign individuals to complete them. This portion of the management planning process should consider
the abilities of staff members and the time necessary to realistically complete assignments. For example,
the sales manager in this scenario may be given monthly earning quotas to stay on track for the goal of
increasing sales by 25 percent.
Establish Evaluation Methods
A management planning process should include a strategy for evaluating the progress toward goal
completion throughout an established time. One way to do this is through requesting a monthly
progress report from department heads.
Identify Alternative Courses of Action
Even the best-laid plans can sometimes be thrown off track by unanticipated events. A management
plan should include a contingency plan if certain aspects of the master plan prove to be unattainable.
Alternative courses of action can be incorporated into each segment of the planning process, or for the
plan in its entirety.

what do you mean by organizational structure? explain the matrix

organizational structure.
An organizational structure is a system that outlines how certain activities are directed to achieve the
goals of an organization. These activities can include rules, roles, and responsibilities. The organizational
structure also determines how information flows between levels within the company. For example, in a
centralized structure, decisions flow from the top down, while in a decentralized structure, decision-
making power is distributed among various levels of the organization.

Having an organizational structure in place allows companies to remain efficient and focused.

Businesses of all shapes and sizes use organizational structures heavily. They define a
specific hierarchy within an organization. A successful organizational structure defines each employee's
job and how it fits within the overall system. Put simply, the organizational structure lays out who does
what so the company can meet its objectives.

This structuring provides a company with a visual representation of how it is shaped and how it can best
move forward in achieving its goals. Organizational structures are normally illustrated in some sort of
chart or diagram like a pyramid, where the most powerful members of the organization sit at the top,
while those with the least amount of power are at the bottom.

A matrix organizational structure is a company structure in which the reporting relationships are set up
as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have dual
reporting relationships - generally to both a functional manager and a product manager.

Example

In the 1970s, Philips, a Dutch multinational electronics company, set up matrix management with its
managers reporting to both a geographical manager and a product division manager. Many other large
corporations, including Caterpillar Tractor, Hughes Aircraft, and Texas Instruments, also set up reporting
along both functional and project lines around that time.

In a matrix organization, instead of choosing between lining up staff along functional, geographic or
product lines, management has both. Staffers report to a functional manager who can help with skills
and help prioritize and review work, and to a product line manager who sets direction on product
offerings by the company. This structure has some advantages:

 Resources can be used efficiently since experts and equipment can be shared across projects.
 Products and projects are formally coordinated across functional departments.
 Information flows both across and up through the organization.
 Employees are in contact with many people, which helps with sharing of information and can
speed the decision process.
 Staffers must work autonomously and do some self-management between their competing
bosses; this can enhance motivation and decision making in employees who enjoy it.

Q discuss the various remedies for effective communication.

To remove hindrances in the way of communication the following steps are worth consideration:
1) Clarify Ideas before Communication:

The person sending the communication should be very clear in his mind about what he wants to say. He

should know the objective of his message and, therefore, he should arrange his thoughts in a proper

order.

(2) Communicate According to the Need of the Receiver:

The sender of the communication should prepare the structure of the message not according to his own

level or ability, but he should keep in mind the level, understanding or the environment of the receiver.

(3) Consult Others before Communication:

At the time of planning the communication, suggestions should be invited from all the persons

concerned. Its main advantage will be that all those people who are consulted at the time of preparing

the communication plan will contribute to the success of the communication system.

(4) Be Aware of Language, Tone and Content of Message:

The sender should take care of the fact that the message should be framed in clear and beautiful

language. The tone of the message should not injure the feelings of the receiver. As far as possible the

contents of the message should be brief and excessive use of technical words should be avoided.

(5) Convey Things of Help and Value to the Listener:

The subject matter of the message should be helpful to the receiver. The need and interest of the

receiver should specially be kept in mind. Communication is more effective in such a situation.

(6) Ensure Proper Feedback:

The purpose of feedback is to find out whether the receiver has properly understood the meaning of the

information received. In the face-to- face communication, the reaction on the face of the receiver can be

understood. But in case of written communication or some other sort of communications some proper

method of feedback should be adopted by the sender.

(7) Consistency of Message:

The information sent to the receiver should not be self- contradictory. It should be in accordance with

the objectives, policies, programmers, and techniques of the organization. When a new message must

be sent in place of the old one, it should always make a mention of the change otherwise it can create

some doubts.

(8) Follow up Communication:

To make communication effective the management should regularly try to know the weaknesses of the

communication system. In this context effort can be made to know whether to lay more stress upon the

formal or the informal communication would be appropriate. Similarly, suggestions can be invited in

respect of the medium of communication (oral, written, and gestural) to know as to which medium

would be more effective and appropriate.

(9) Be a Good Listener: It is the essence of communication that both the sender and the receiver should

be good listeners. Both should listen to each other’s point of view with attention, patience, and positive

attitude. A sender can receive much relevant information by being a good listener.

Explain Fayol’s principles of management?

Answer: Management Principles developed by Henri Fayol: 
1. DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort
and attention are focused on special portions of the task. Fayol presented work specialization as
the best way to use the human resources of the organization.                                                              
2. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was
defined by Fayol as the right to give orders and the power to exact obedience. Responsibility
involves being accountable and is therefore naturally associated with authority. Whoever
assumes authority also assumes responsibility.                                                              
3. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should
be applied judiciously to encourage this common effort.                                                                        
4. UNITY OF COMMAND: Workers should receive orders from only one manager.                                
5. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in
a common direction.                                                                                                        
6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one
person should not take priority over the interests of the organization.                                                
7. REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general
business conditions, and success of the business, should be considered in determining a
worker’s rate of pay.                                                                                                  
8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate
role. Decentralization is increasing the importance. The degree to which centralization or
decentralization should be adopted depends on the specific organization in which the manager
is working.                                                                                                                  
9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager,
from the first line supervisor to the president, possess certain amounts of authority. The
President possesses the most authority; the first line supervisor the least. Lower-level managers
should always keep upper-level managers informed of their work activities. The existence of a
scalar chain and adherence to it are necessary if the organization is to be successful.                      
10. ORDER: For the sake of efficiency and coordination, all materials and people related to a specific
kind of work should be treated as equally as possible.                                                                          
11. EQUITY: All employees should be treated as equally as possible.                                                          
12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high
priority of management. Recruitment and Selection Costs, as well as increased product-reject
rates are usually associated with hiring new workers.                                                                              
13. INITIATIVE: Management should take steps to encourage worker initiative, which is defined as
new or additional work activity undertaken through self-direction.                                                    
14. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among
employees.
Types of Traditional Control Techniques
The ten types of traditional techniques of controlling are discussed below:
1. Direct Supervision and Observation
"Direct Supervision and Observation' is the oldest technique of controlling. The supervisor
himself observes the employees and their work. This brings him in direct contact with the
workers. So, many problems are solved during supervision.
2. Financial Statements
 All business organizations prepare Profit and Loss Account. It gives a summary of the income
and expenses for a specified period. They also prepare Balance Sheet, which shows the financial
position of the organization at the end of the specified period.

Budgetary Control

A budget is a planning and controlling device. Budgetary control is a technique of managerial control
through budgets. It is the essence of financial control. Budgetary control is done for all aspects of a
business such as income, expenditure, production, capital, and revenue. Budgetary control is done
by the budget committee.

4. Break Even Analysis

Break Even Analysis or Break-Even Point is the point of no profit. no loss for e.g. When an
organization sells 50K cars it will break even. It means that any sale below this point will cause
losses and any sale above this point will earn profits. The Break-even analysis acts as a control
device. It helps to find out the company's performance.
5. Return on Investment (ROI)
Investment consists of fixed assets and working capital used in business. Profit on the
investment is a reward for risk taking. If the ROI is high, then the financial performance of a
business is good and vice-veratrin is a tool to improve financial performance. It helps the
business to compare its present performance with that of previous years' performance.
6. Management by Objectives (MBO)

MBO facilitates planning and control It must fulfill following requirements.

1: Objectives for individuals are jointly fixed by the superior and the subordinate.

2 Periodic evaluation and regular feedback to evaluate individual performance.

3: Achievement of objectives brings rewards lo individuals.

7. Management Audit

Management Audit is an evaluation of the management. It critically examines the full management
process, i.e., planning, organizing, directing, and controlling. It finds out the efficiency of the
management. To check the efficiency of the management, the company's plans, objectives, policies,
procedures, personnel relations, and systems of control are examined very carefully. Management
auditing is conducted by a team of experts.

15. 8. Management Information System (MIS)

16. To control the organization properly the management needs accurate information. They need
information about the internal working of the organization and about the external environment
Information is collected continuously to identify problems and find out solutions. MIS collects
data processes it and provides it to the managers.
17. 9. PERT and CPM Techniques
18. Programmed Evaluation and Review Technique (PERT) and Critical Path Method (CPM)
techniques were developed in USA in the late 50's. Any programmed consists of various
activities and sub-activities. Successful completion of any activity depends upon doing the work
in each sequence and in each time’s / PERT can be used to minimize the total time or the total
cost required to perform the total operations.