Department of Mechanical

MG8591 Principles of Management 2020 - 2021

MG8591 PRINCIPLES OF MANAGEMENT L T PC
3 0 0 3
OBJECTIVE:
 To enable the students to study the evolution of Management, to study the functions and
principles of management and to learn the application of the principles in an organization .

UNIT I INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS 9

Definition of Management – Science or Art – Manager Vs Entrepreneur - types of managers -
managerial roles and skills – Evolution of Management – Scientific, human relations, system and
contingency approaches – Types of Business organization - Sole proprietorship, partnership,
company-public and private sector enterprises - Organization culture and Environment – Current
trends and issues in Management.

UNIT II PLANNING 9
Nature and purpose of planning – planning process – types of planning – objectives – setting
objectives – policies – Planning premises – Strategic Management – Planning Tools and
Techniques – Decision making steps and process.

UNIT III ORGANISING 9

Nature and purpose – Formal and informal organization – organization chart – organization
structure – types – Line and staff authority – departmentalization – delegation of authority –
centralization and decentralization – Job Design - Human Resource Management – HR Planning,
Recruitment, selection, Training and Development, Performance Management, Career planning
and management

UNIT IV DIRECTING 9
Foundations of individual and group behaviour – motivation – motivation theories – motivational
techniques – job satisfaction – job enrichment – leadership – types and theories of leadership –
communication – process of communication – barrier in communication – effective communication
–communication and IT.

UNIT V CONTROLLING 9
System and process of controlling – budgetary and non-budgetary control techniques – use of
computers and IT in Management control – Productivity problems and management – control and
performance – direct and preventive control – reporting.
TOTAL: 45 PERIODS

OUTCOME:
 Upon completion of the course, students will be able to have clear understanding
 Managerial functions like planning, organizing, staffing, leading & controlling and have same
basic knowledge on international aspect of management

TEXTBOOKS:
1. Stephen P. Robbins & Mary Coulter, ―Management‖, Prentice Hall (India) Pvt. Ltd., 10th Edition,
2009.
2. JAF Stoner, Freeman R.E and Daniel R Gilbert ―Management‖, Pearson Education, 6th
Edition, 2004.

REFERENCES:
1. Stephen A. Robbins & David A. Decenzo & Mary Coulter, ―Fundamentals of Management‖
Pearson Education, 7th Edition, 2011.
2. Robert Kreitner & Mamata Mohapatra, ― Management‖, Biztantra, 2008.
3. Harold Koontz & Heinz Weihrich ―Essentials of management‖ Tata McGraw Hill,1998.
4. Tripathy PC & Reddy PN, ―Principles of Management‖, Tata McGraw Hill, 1999

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 Department of Mechanical
MG8591 Principles of Management 2020 - 2021
COURSE OUTCOMES
On completion of this course, the student will be able;
To understand about management , Roles of managers, environmental Factors for an
C410.1 organization , Strategies for international business

C410.2 To get an idea about the planning, MBO, Decision Making and Policies making.

Gain the knowledge about organization structure, Formal and Informal groups, Line and
C410.3 staff authority, Span of control, Centralization and decentralization, Staffing, Recruitment,
Career Development, Training and personal Appraisal
To understand about the Creativity and Innovation, Motivation and satisfaction, Leadership
C410.4
theories, communication, Elements and types of Culture.
Gain knowledge about the controlling process, types of control (Budgetary and non-
C410.5
budgetary control, Cost control, purchase control, Maintenance control, quality control)

MAPPING BETWEEN CO AND PO, PSO WITH CORRELATION LEVEL 1/2/3

PO PO PO P PO PO PO PO PO PO PO PO PS PS PS
1 2 3 O4 5 6 7 8 9 10 11 12 O1 O2 O3
C410.1 - - - - - 2 3 2 - 1 2 2 - 1 -
C410.2 - - - - - 2 2 2 - 2 3 2 - 1 2
C410.3 - - - - - 3 2 2 - 1 2 2 - 1 -
C410.4 - - - - - 3 2 2 - 2 1 2 - - 2
C410.5 - - - - - 3 2 2 - 2 3 2 - 1 -

RELATION BETWEEN COURSE CONTENT WITH COs

UNIT I: INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS
Knowledge Course
S.No Course Content
level Outcomes
Definition of management & natural management
1. R
techniques, current issues & Trends in Management
2. An,Ap Science or Art, management Vs. Administration

3. R,An,Ap Manager Vs. Entrepreneur, Functions of management

Types of Manager, top level Management, lower level
4. R,U management techniques
Managerial rules and skills, Importance of partnership C410.1
5. R,U,Ap
and features of partnership
Evolution of management- Scientific, Human relation,
6. U,An
system and antigency approaches
Types of business organization-Sole trading, Sole
7. R,U
proprietorship, partnership
8. R Public and private sector entrepreneur
9. R,U Organization culture and environment

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 Department of Mechanical
MG8591 Principles of Management 2020 - 2021
UNIT II: PLANNING
S.No Knowledge Course
level Course Content Outcomes
1. R,U Nature and purpose of planning

2. U,An Planning process and objectives of planning

3. R,U Types of planning-Tactical planning

4. R,U Objectives, goals, strategic Planning

Strategies and policies, Rules, procedures, programs, smart
5. R,U,Ap
objectives
6. R,U,Ap Planning premises ,policy formulation process C410.2

7. U,Ap Strategic Management effective implementation

8. R Ap Planning tools and techniques, Forecasting

9. R,Ap Decision making steps & process, EVS scanning

10. Ap,C Creativity& innovation, Qualitative method

Creative manager, Evaluation of alternatives, Quantitative
11. U,An
method, Decision Tree analysis

UNIT III: ORGANISING

S.No Knowledge Course
Course Content
level Outcomes
1. U,An, Nature and purpose of organization, processing analysis
2. U, An Formal and informal organization and differences
3. R,U Organization chart, Types, Advantages and disadvantages
4. R,U Organization structure and types
5. U Line and staff authority, functional authority
6. U,An Departmentalization ,Needs and Types
C410.3
7. U,An Delegation of authority, features and importance
8. U Centralization and decentralization
9. U,Ap,An, Job design, Staffing and human resource delegation
10. U Human resource management, HR planning
Recruitment, selection, training and development,
11. U,Ap
performance management and career planning

UNIT IV: DIRECTING

S.No Knowledge Course
level Course Content Outcomes
Foundation of individual and group behavior-Nature
1. U,An
and its importance
Motivation and motivation theories, Trait approach and
2. U,An behavioral theory
C313.4
3. U,An,Ap Motivational techniques, factors and measurement

4. U,An,Ap Job satisfaction, effects and measures

5. U,An Job enrichment and procedures

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 Department of Mechanical
MG8591 Principles of Management 2020 - 2021
6. R,U Leadership-Types and theories of leadership
U Communication and barriers of effective
7.
communication

UNIT V: CONTROLLING
S.No Knowledge Course
Course Content
level Outcomes
1. U,An System and process of controlling
2. U,Ap Budgetary and non-budgetary control techniques
3. U,An,Ap Use of computers and IT in management control
4. An Productivity problem and factors affecting management C410.5
5. U Quality control, Cast control and performance
6. An,Ap Direct and preventive control objectives
7. R,U Reporting essentials and classification
Ap – Apply; An – Analyze; U – Understand, E- Evaluate ,C-Create

UNIT – I: INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS

PART A - C410.1

1. Define Management. ( May 2016, April 2017, Nov 2017,Nov 2018,April 2019)
Management is the process of designing and maintaining an environment in which individuals, working
together in groups, accomplish their aims effectively and efficiently. According to Koontz and Weilhrich
"Management is process of designing and maintaining of an environment in which individuals working
together in groups, efficiently and efficiently attain the organizational goals."

2. Write the function of management. (May 2016)

Planning; Organizing; Staffing; Coordinating and Controlling.

3. State the Functions/role of Manager. Or List out the roles played by manager in an
organization. (Nov 2016, Nov 2017)
P – Planning; O – Organizing; S – Staffing; D – Directing; CO – Coordinating; R – Reporting; B – Budgeting

4. What are the roles and skills of a manager?(Nov 2018)

Roles and skills of a manager -Interpersonal, informational and decisional role.
Managers require three kinds of skills- Technical Skill – Knowledge of and proficiency in working with tools
and technology-Human Skill – Ability to work with people-Conceptual Skill – Ability to recognize important
element in a situation and understand its relationship.

5. Write some characteristics of Management.

1) Management is a continuous process. 2) Managers use the resources of the organization both physical as
well as human to achieve the goals. 3) Management aims at achieving the organization goals by ensuring
effective use of resources.

6. Define Productivity.
It implies effectiveness and efficiency in individual and organisational performance (within a time period,
considering required quality in both operational and financial health of an organisation)
Productivity =

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 MG8591 Principles of Management Department of Mechanical 2020 - 2021

7. What is Effectiveness &Efficiency?

Effectiveness is the achievement of objectives and Efficiency is the achievement of the ends with the least
amount of resources. Effectiveness is doing right things & efficiency is doing things rightly.

8. What are management levels?

1) Top level management. 2) Middle level management. 3) Lower level management.

9. Write some important functions of top level management.

Formulate goals (long term and short term) and policies (quality policy and management policy) of the
organization; formulate budgets (financial and operational) and appoint top functional administrative
executives.

10. What is social responsibility?

Social responsibility is the part of the management to initiate actions to protect the interest of the society.
Managing here implies monitoring of natural resources (preservation, adopting biodegradation technologies,
green concepts and recycling initiatives) and initiative towards green manufacturing.

11. Write Fayol's fourteen principles of management.

1) Division of work. 2) Authority and Responsibility. 3) Discipline. 4) Unity of command. 5) Unity of
direction. 6) Subordination of Individual interest to general interest. 7) Remuneration. 8) Centralization 9)
Scalar chain. 10) Order. 11) Equity. 12) Stability of Tenure. 13) Initiative. 14) Esprit de Corps.

12. What is scalar chain?

The instructions and orders should be sent from the top management to the lower management. The chain of
command is well defined for achieving operational excellence on par with quality performance. The
directions for the financial year is communicated effectively using the chain of command such that the entire
organization travels with the same or common vision and mission towards achieving excellence.

13. What is time study?

Time study refers to the measuring of (under controlled conditions) the time for completing a particular task
(process time) using specific Methods and Materials. This will be useful in arriving at a scientific standard for
each work task in the marketing process. The same will be used for arriving at the selling price of the product,
labor utilization, company improvement activities and setting benchmarks in functional streams of the
organization.

14. Explain: Management is both —a science and an art.

Management is a science because it contains general principles. It is also an art because it requires certain
personal skills to achieve desired results.

15. What is Esprit-de-corps?

It means „Unity is strength‟. In an organization, amongst the employees there should be harmony and unity.
The morale of the team will enhance team work and result in productivity improvement of the organization.

16. List out the claimants of the business enterprise.

1) Shareholders. 2) Employees. 3) Customers. 4) Creditors. 5) Suppliers. 6) Government

17. What are the major contributions of Taylor?

The major contributions of F.W.Taylor are as follows; He developed the principle of division of labor/work.
He developed method study; He advocated time study; He developed certain principles to breakup each job
into small independent elements; He developed the concept of fair day‟s work; He proposed the concept of
functional organization.

18. What is motion study?

Taylor suggested that eliminating wasteful movements and performing only necessary movements.

19. Define partnership.(Nov 2017)

Under the Indian Partnership Act of 1932, Partnership is defined as –“the agreed relation between persons
who have agreed to share the profits of a business carried on by all or by any one of them acting for all”.

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20. What do you mean by ‗unity of command‘?
Unity of command‟ is an important principle proposed by Henry Fayol. This implies that an employee should
receive orders from one superior only. This is referred to as Chain of Command and always the direction or
flow of orders defines effective communication practices in an organization.

21. Write any two functions of middle level management.

To train, motivate and develop supervisory level; To monitor and control the operations performance.

22. What is ethics?

All individuals in business or non-business activities are concerned with some standardized form of behavior
are known as ethics.

23. What is an organization culture? (April 2017)

Organizational culture is a system of shared assumptions, values, and beliefs, which governs how people
behave in organizations. These shared values have a strong influence on the people in the organization and
dictate how they dress, act, and perform their jobs.

24. Give the current trends in management. (Nov 2016)

The current trends in management are globalization, technology, sustainability and corporate social
responsibility, integrating psychology theory and research into management practice, Business Ecosystems,
Cross functional teams, leveraging Social media.

25. Distinguish between public and private limited companies. (April 2018)
The difference between public and private company can be drawn clearly on the following grounds:
1. The public company refers to a company that is listed on a recognised stock exchange and traded publicly.
A Private Ltd. the company is one that is not listed on a stock exchange and is held privately by the members.
2. There must be at least seven members to start a public company. As against this, the private company can
be started with minimum two members.
3. The is no ceiling on the maximum number of members in a public company. Conversely, a private company
can have a maximum of 200 members, subject to certain conditions.
4. A public company should have at least three directors whereas the Private Ltd. company can have a
minimum of 2 directors.

26. Write the meaning of entrepreneur.(April 2019)

A person who sets up a business or businesses, taking on financial risks in the hope of profit.

PART B - C410.1
1. Explain the Functions of Management. (April 2017)
2. What are the managerial skills required at different levels of management.
3. Environmental factors affecting management policy making. Or Enlighten the relevance of environmental
factors that affects global business. (April 2018)
4. Discuss whether Management is a Science or Art. (May 2016, Nov 2018,April 2019)
5. Explain the Henry Fayol‟s principles of management. Or Elucidate in detail the various principles of
management as advocated By Henry Fayol. (May 2016, Nov 2017, Nov 2018)
6. Explain the contributions of FW Taylor. (April 2018)
7. Explain the role of managers in detail.
8. Discuss the management functions as related to trends and challenges in management of global scenario.
9. Explain the evolution of management in detail. (May 2016, Nov 2016, Nov 2018)
10. Explain different types of business organization. Or How do you classify business organizations.Explain.
(April 2017, Nov 2016, April 2019)
11. Explain the current trends and issues in Management. (Nov 2017)
12. Davinder is a class 12th commerce student in a reputed school in Punjab. Satinder is his elder brother who
is doing his masters in hospital administration. During vacation when satinder comes home, davinder shows
him the business studies project that he is preparing on the topic of Principles of Management. Satinder tells
him that these principles are a part of MBA course curriculum at the beginners level as they form the core of
management in practice. But he finds these principles are different from pure science. .
In the context of the above case: (April 2018)

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(i) Outline the concepts of Principles of Management.

(ii) Why does satinder finds the Principles of Management different from those of pure science ?
(iii) Why do the principles of management form the core of management in practice ? Explain by giving any
two points highlighting the importance of principles of management.

UNIT – II: PLANNING

PART A - C410.2

1. Definition of planning. (May 2016,April 2019)

The determination of what is to be done, how and where it is t be done, who is to do it and how results are to
be evaluated. In manufacturing industries the project kick start will be done with a prepared TIME PLAN that
captures all the functional activities against time/target (Quality, Manufacturing, R&D, Purchase, Marketing)
pertaining to various departments, consolidated and submitted to the stakeholders for carrying out the
activities listed in the PLAN.

2. What are the types of planning?

Short range; long range; repeated; single use and functional planning

3. What are the Qualities of good plan?

Simple, logical, flexible, practical and stable. It must be complete and integrated.

4. What are Rules?

Statement of expected results expressed in quantitative terms. Rules are framed based on the management
objectives; project target and customer requirements. Actual vs. achieved matrix is plotted to analyze the
project shortcomings and will necessitate remedial measures/actions to avoid time delay.

5. Define Procedure.
It is a series of related task that up the chronological sequence and the established way of performing the work
to be accomplished. Procedure takes care of project shortcomings and accommodates flexibility in executing
the project time plan.

6. Define Budget.
Budget is termed as a financial plan for the current financial year, say 2014-2015, prepared by an organization
based on business forecast, customer demand, market fluctuations, administrative, overhead expenses and
internal objectives. This will give directions to the management to raise capital investment through various
means to feed the project thus aligning with the objectives and vision of the company.

7. Define Objectives.
Objectives are set of goals that aligns with the MBO (management by objective) communicated across the
organization to guide the efforts of the company and each of its components, that will streamline the
organization giving definitive and clear cut directions with which the organization move forward.

8. What is MBO? (Nov 2016)

MBO - Management by Objective. It is a process whereby the superior (management / board of directors) and
subordinate of an organization jointly identify common goal, define each individual‟s major areas of
responsibility in terms of results expected of him and use this measures as guides for operating the unit/
organization and assessing the contribution of each if its members.

9. What is TOWS matrix?

It is a conceptual frame work for systematic analysis, which facilitates matching the external threats and
opportunities (SWOT-Strength; Weaknesses; Opportunity and Threats) with the internal weakness and
strength of the organization. This will facilitate check and balances that an organization or the project team
needs to initiate for hurdle free execution of the project/goals.

10. State different strategies of Porter‘s generic strategy.

Overall cost leadership strategy, differentiation strategy and focused strategy.

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11. Define Strategy Planning.

Determination of basic long term objectives and of courses of action and allocation of resources to achieve
these objectives lay down by the Management. Strategy will be time based and measured for pros and cons to
eliminate hurdles or constraints that hamper the transformation process which will make the strategy into a
workable solution.

12. What are Policies? (Nov 2016)

Verbal, written, or implied overall guide setting up boundaries that supply the general limits and direction in
which managerial action will take place. The company policy is framed thinking upon the vision statement
and guided by definitive directions towards achieving the prime objectives like inclusive growth, financial
stability and market capitalization.

13. Define MIS.

MIS is more advance technology for solving its basic requirements. MIS used for decision making in the
various functional areas of business.MIS provides day to day operational data and schedules planned and
achieved to the management for taking rationalized decisions. Arbitrary decisions can be avoided and thus
mitigate the risk of wrong/implicit decision making.

14. What are classifications of budget?

Functional classification- Sales, production, cash, capital and master budget; Time classification- Short term,
current and long term budget; Activity level- Fixed and flexible budget.

15. List the benefits of planning.

Emphasis on objectives, minimizes uncertainty, facilitates control, improves coordination, secure economy
and ensure healthy environment, encourage innovation and improve competitive strength.

16. Define Planning Premises. (April 2018)

Anticipated environment in which plans are expected to operate. They include assumptions or forecasts of the
future and known conditions that will affect the operation of plans. The environment here implies conducive
which will promote businesses and arena for new innovations that will bring brand equity and presence in the
domestic and international market.

17. Explain the terms decision-making. (May 2016)

It is a process of selection from a set of alternative courses of action which is thought to fulfill the objectives
of the decision problem more satisfactory than others. The risk involved in decision making or decisions
made needs mitigation plans to augur future delays and losses that may happen if the decision proves wrong.
A risk mitigation plan

18. What are zero base budgets?

Initially the budget is designed from a zero base. The main element is ZBB is future objective orientation.
This ZBB would provide elementary capital/investment projection that the management or board require to
arrange (through own, funded agencies, financial institutions, PSU and Banks) for supporting the business.

19. What is DSS?

DSS –use computers to facilitate the decision making process of semi structured tasks. This will be liked with
MIS and thus warrants for actions to be taken irrespective of priorities and will limit misunderstandings
among employees in carrying out the work based on priorities.

20. What are the purposes of planning? (April 2017)

To determine the direction (guidelines) of an organization; to minimize wastages; to reduce the risk or
uncertainty, to facilitate control over operations and finance of a company, manpower utilization and societal
considerations.

21. List the planning tools in business management. (April 2017)

 SWOT Analysis. The SWOT analysis is a strategic management tool used to identify your business's place
in the market.
 Gap Analysis. A gap analysis monitors your progress toward strategic goals.
 PEST Analysis.
 Five Forces Analysis.

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22. What is intuitive decision making? (April 2018)

Intuition is receiving input and ideas without knowing exactly how and where you got them from. You simply
know it is not from yourself. Like creativity, intuitive inspiration often happens when someone virtually fuses
in an activity, when one is highly focused on the respective activity in a state of joy and fulfilment. Intuition
can be trained and in its highest level leads into a conscious contact with non-incarnated beings, a process
usually called channeling.
Intuitive decision making is far more than using common sense because it involves additional sensors to
perceive and get aware of the information from outside. Sometimes it is referred to as gut feeling, sixth sense,
inner sense, instinct, inner voice, spiritual guide, etc.

23. Distinguish between policy and rules. (Nov 2017)

Rules are clear instructions that must be followed by the entities. And in case if rules are not followed then
entity will have to face some legal action in the form of penalties, suspension etc. So basically rules are given
the ability to have the protection of their own.
Policies relates to how the rules are going to be implemented. Entities design their policies on the basis of
rules applied by regulatory authorities AND their business objectives. Policies basically give a direction to the
entity that is in line with both applicable laws and aims that business wants to achieve.

24. What do you understand by Strategic Management? (Nov 2017,April 2019)

Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary
for an organization to meet its goals and objectives. Fast-paced innovation, emerging technologies and
customer expectations force organizations to think and make decisions strategically to remain successful. The
strategic management process helps company leaders assess their company's present situation, chalk out
strategies, deploy them and analyze the effectiveness of the implemented strategies. The strategic
management process involves analyzing cross-functional business decisions prior to implementing them.
Strategic management typically involves:
 Analyzing internal and external strengths and weaknesses.
 Formulating action plans.
 Executing action plans.
 Evaluating to what degree action plans have been successful and making changes when desired results are
not being produced.

25. State various steps in planning.( Nov 2018)

The various steps involved in planning are : 1.Perception of Opportunities 2.Establishing Objectives
3.Considering the Planning Premises 4.Identification of alternatives 5.Evaluation of alternatives 6.Choice of
alternative plans 7.Formulating of Supporting Plans 8.Establishing sequence of activities.

26. What do you understand by decision making?( Nov 2018)

The word decision has been derived from the Latin word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives between those that are desirable and those that are not desirable.In
the words of George R. Terry, "Decision-making is the selection based on some criteria from two or more
possible alternatives".

PART B - C410.2

1. Analyze the importance of planning and explain the steps involved in it. (April 2017, April 2019)
2. Explain in detail about the classification of planning practices.(Nov 2016)
3. Explain the TOW‟s matrix with example.
4. Explain the various techniques of decision making. (May 2016, Nov 2016, April 2017)
5. Explain the steps involved in strategy formulation and implementation process.
6. Write a note on BCG Portfolio matrix.
7. What are the types of decisions and explain the process of decision making? (April 2019)
8. Explain in detail the various types of planning. (Nov 2017)
9. List out the features of planning. (May 2016)
10. What are the steps involved in MBO process. Or Define MBO. Explain the process of MBO (April 2018,
Nov 2017)
11. Classify the types of goals organizations might have and the plans they use of accomplishment. (April
2018)

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12. Is decision making rational process? Discuss. (Nov 2017)

13. What are the objectives of planning? Illustrate how you will set objectives for a manufacturing
organization. (Nov 2018)
14. With suitable example illustrate the steps involved in the process of decision making. (Nov 2018)

UNIT III: ORGANIZING

PART A - C410.3

1. State the advantages of departmentation by function.

It is most logical, scientific, time proven and natural method of departmentation - It provides specialization of
work which makes maximum utilization of manpower and other resources - It ensures proper performance
control - It facilitates delegation of authority and therefore, reduces the burden of top executives.

2. Define Organizing. (May 2016)

Organizing is the process of identifying and activities required to attain the objectives, delegating, creating
responsibility and establishing relationships with people to work effectively.

3. Mention any four characteristics of an organization.

Common objectives; Specialization or Division of Labour; Authority of structure; Group of persons
4. List out the steps involved in organization process.
Determination of activities; Grouping of activities; Assignment of Duties; Delegation of authority

5. Mention the various principles involved in organization.

Principle of unity of objective, Principle of division of work or specialization,Principle of efficiency & Principle
of span of control.

6. Mention the three categories of relationships in span of management.

Direct single relationship; direct group relationships; Cross relationship

7. State the important factors in determining an effective span of management.

Capacity of superior, Capacity of subordinates, Nature of work, Type of technology, Delegation of authority
and Organizational Structure.

8. What are the types of departmentation?

Departmentation by function, departmentation by territory or geography, departmentation by customers,
departmentation by equipment or process and departmentation by product or service.

9. State the disadvantages of departmentation by function.

There is a tendency for overspecialization - The department managers are experts in handling the problems in
their department alone. They may not be able to understand the problem of other departments.
Functional departmentation discourages communication across functions so that the workers develop a narrow
technical point of horizontal conflicts- It increases the workload and responsibility of the departmental heads- It
does not offer any scope for training for the overall development of manager

10. Give a note on departmentation by customers.

This type of departmentation is preferred when the needs of customers are different in nature. Big organizations
provide special services to different types of customer. Categorization of customer needs based on domestic and
international market / demand and service requirements aided with knowledge based awareness to the user
community will be the fundamental basis for departmentation by customers.

11. What is departmentation by product?

Departmentation by Product or Service: In this case, the units are formed according to the product. It is more
useful in multi-line corporations where expansion and diversification, manufacturing and mark
characteristics of the product are of primary concern.

12. Define authority.

"Authority is the right to give orders and the power to exact obedience". It is termed as destined responsibility
by the management or board of directors to the top level executives.

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13. List out the sources of authority.

Formal authority theory; Acceptance Authority Theory and Competence theory

14. What is line authority?

Line authority is the direct authority which a superior exercises over a number of subordinates to carry out
orders and instructions. In an organizing process, authority is delegated to the individuals to perform the
activities.

15. Define recruitment.

B.Flippo defined recruitment as “the process of searching for prospective employees and simulating for jobs in
the organization”.

16. What is staff authority?

A staff person assists the line people in attaining their objectives. Staff authority is purely advisory. Types of
staff authority are a) Advisory staff authority, b) Compulsory staff authority and c) Concurrent staff authority.

17. What is departmentation by process?

Departmentation by Process or Equipment: Under this type of departmentation, activities are grouped on the
basis of production processes or equipment involved. In process centric manufacturing industries like
Petrochemical, FMCG, Power generation, Chemical and Fertilizers production plants the production process
will be unique and continuous.

18. What is Performance Appraisal? What are the different methods/techniques of Performance
appraisal?(Nov 2016, April 2017)
Performance Appraisal is evaluating the actual performance of the employee for determining the compensation
and identifying the potential of the employees. Methods/Techniques of Performance Appraisal:(i) Trait-based
appraisal; Graphic scale method, ranking method, grading system, forced distribution method, check list
method, Critical incident method, group appraisal (ii)Appraisal by results: MBO, Behaviorally Anchored
Rating(BARS), Assessment Centre, 360 degree performance appraisal.

19. State the types of organizational charts.

Vertical or Top-to-Bottom chart; Horizontal or Left-to-right chart; Circular or concentric chart. The
organization structure reveals the chain of command added with the authorization or power destined to
individual member base on the job profile and company directions.

20. Define ―Departmentation‖. (Nov 2016)

Departmentation is the foundation of organization structure. It means division of work into smaller units and
their re – grouping into bigger units (Departments) on the basis of similarity of features. Each department is
headed by a person known as departmental manager. Division of work into depts. Leads to specialization as
people of one department perform activities related to that department only.

21. What is delegation of authority?(April 2017)

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.

22. What do you understand by organization chart? (Nov 2017)

An organizational chart is a diagram that shows the structure of an organization and the relationships and
relative ranks of its parts and positions/jobs. The term is also used for similar diagrams, for example ones
showing the different elements of a field of knowledge or a group of languages.

23. Define Career Management. (Nov 2017)

Career management is conscious planning of one‟s activities and engagements in the jobs one undertakes in the
course of his life for better fulfilment, growth and financial stability. It is a sequential process that starts from an
understanding of oneself and encompasses occupational awareness.

24. Define formal organization. (April 2019)

Formal Organization is an organization in which job of each member is clearly defined, whose authority, responsibility and
accountability are fixed.

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24. What are various stages of staffing process?

External environment

Enterprise
plans

Organisation
plans External
sources
Recruitment Appraisal
Analysis of Selection Career
present and Placement Strategy
Number and kinds
future needs Promotion
of managers for managers
required Separation Training
&Develop
Internal
ment
sources

Manager
inventory

25. What is Job Design? (April 2018)

Job design (also referred to as work design or task design) is a core function of human resource management and
it is related to the specification of contents, methods and relationship of jobs in order to satisfy technological
and organizational requirements as well as the social and personal requirements of the job holder or the
employee. Its principles are geared towards how the nature of a person's job affects their attitudes and behavior
at work, particularly relating to characteristics such as skill variety and autonomy. The aim of a job design is to
improve job satisfaction, to improve through-put, to improve quality and to reduce employee problems (e.g.,
grievances, absenteeism).

26. Distinguish between authority and power? (April 2018)

The difference between power and authority can be drawn clearly on the following grounds:
1. Power is defined as the ability or potential of an individual to influence others and control their actions.
Authority is the legal and formal right to give orders and commands, and take decisions.
2. Power is a personal trait, i.e. an acquired ability, whereas authority is a formal right, that vest in the hands
of high officials or management personnel.
3. The major source of power is knowledge and expertise. On the other hand, position and office determine the
authority of a person.
4. Power flows in any direction, i.e. it can be upward, downward, crosswise or diagonal, lateral. As opposed to
authority, that flows only in one direction, i.e. downward (from superior to subordinate).
5. The power lies in person, in essence, a person acquires it, but authority lies in the designation, i.e. whoever
get the designation, get the authority attached to it.
6. Authority is legitimate whereas the power is not.

27. What is centralization? (Nov 2018)

The organization is centralized when the power is concentrated in the hands of few people. This will affect the
transparency and lacuna in decision making that will hamper the growth and development of an organization
and the pace with which the company compete with its competitors.

28. What is decentralization? (May 2016)

The organization is decentralized when the power is fully distributed to the subordinates of the organization.
This will increase the transparency and effective communication and eliminates chaos and confusion with data
disparity.

29. Experiment the term ‗design‘. (April 2019)

A design is a plan or specification for the construction of a system or for the implementation of an activity or
process, or the result of that plan or specification in the form of a prototype, product or process.

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30. What is human resource planning.( Nov 2018)

Manpower Planning which is also called as Human Resource Planning consists of putting right number of
people, right kind of people at the right place, right time, doing the right things for which they are suited for the
achievement of goals of the organization. The primary function of man power planning is to analyze and
evaluate the human resources available in the organization, and to determine how to obtain the kinds of
personnel needed to staff positions ranging from assembly line workers to chief executives.

PART B - C410.3

1. Elucidate any four types of organization. (Nov 2017)

2. Discuss art of delegation of authority.
3. List the steps involved in recruitment process. (April 2019)
4. Distinguish between training and development and explain the training methods in detail. (Nov 2017)
5. What are the types of organizational structure? Explain line and staff organization. List down its merits and
demerits. (May 2016, April 2017)
6. What are the types of departmentation? (Nov 2016)
7. (i) Discuss the types of centralization.
(ii) Explain about the organizational culture. (Nov 2016)
8. Explain human resource management activities in business organization?(April 2017, Nov 2018)
9. Describe six key elements in organizational design. (April 2018)
10. Discuss the tasks associated with identifying and selecting competent employees. (April 2018)
11. In detail explain the nature and purpose of organisation. (Nov 2018)
12. Elaborate the merits and demerits of line organization and staff organization. (April 2019)
13. Assume you are posted as HR manager in an organization. How will you conduct the recruitment drive for
your company. Explain. (April 2019)
14. XYZ industries is a manufacturing company with line and staff organization. Pandian a young staff officer
developed a plan of increasing the life of certain equipments in the plant. He took the plan directly to the
foremen of the department but was rebuffed by the supervisor who privately acknowledged the merit of the
plan but resented the staff officer trying to show off his talents. The staff officers Association condemned the
behavior of Pandian that he should have allowed the plan to appear as a contribution of the staff group rather
than his own.
(a) Analyze the situation in terms of the possible causes of the reaction of the supervisor and staff officers
group.
(b) Suggest a measure to diffuse the situation. (Nov 2018)

UNIT – IV: DIRECTING

PART A - C410.4

1. Define Leading.
It is a process of influencing people so that they will contribute to organisation and group goals. Leading by
example and directing the subordinates to be focused and aligned with the organisational goals and objectives.

2. Define Motivation. (April 2019)

It is a process of stimulating people to achieve/ accomplish desired goals. Motivation is defined as “those
forces operating within the individual employee or subordinate which impel him to act or not or to act in
certain ways. Motivation is mainly psychological. It acts as a driving force for successful implementation of
the management objectives eradicating psychological barriers.

3. What is the role of a Democratic leader?

He consults with subordinates on proposed actions and decisions and encourages participation from them. A
democratic leader listen to his subordinate view points and give opportunity for inclusive growth and will lead
the team from behind being a motivator and lead by example.

4. What are the Styles of Leadership?(May 2016,Nov 2018)

Autocratic leadership; Democratic leadership and Free-reign leadership.
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5. Define Job Enrichment. (April 2017, Nov 2017)

It attempts to make a job more varied by removing the dullness associated with performing /repetitive and
monotonous operations. A conducive work environment with aids for motivation, relaxation, taken care-off
attitude from management will make the employees feel good while during or executing work.

6. What is QWL?
QWL is quality of work life. It is the degree to which members of a work organization are able to satisfy
important personal needs through their experience in the organization. It denotes all the organizational inputs
which aim at the employee‟s satisfaction and enhancing organizational effectiveness.

7. Define Leadership as an Art.

Leadership is an Art or process of influencing people so that they will strive willingly and enthusiastically
towards achievement of the goal.

8. Define Communication.
Communication is the process of transmitting ideas, facts, opinions and feelings to others. Communication is
a mutual interchange process that occurs between two or more persons.

9. What are the various types of communication?

Formal, informal, vertical, horizontal, grapevine, written and oral communication.

10. What is Country club management?

In a country club management, the mangers have little or no concern for production, but are concerned for
people or the employees.

11. What are the types of needs?

Primary Needs: Physiological requirements such as food, sleep, water and shelter.
Secondary needs: Self-esteem status, affection, accomplishment and affiliation with others.

12. Explain - Maslow‘s Needs. / Elements of Maslow‘s hierarchy of needs. (Nov 2016)
Physiological needs, Safety needs, Social needs, Self- Esteem needs and Self- actualization needs.

13. Define Incentives.

An incentive is something which stimulates a person towards some determination. Incentives are a way of
motivation and termed as monetary benefits appraised for best or better performing employees by the
organization.

14. What is Innovation?

Innovation is termed as generation of NEW ideas for existing products/problems and simpler and modified
ways of doing for an existing method. Innovation is a strategy, that every organization adopts for automation
and control over its process/system. Innovation is a key to successful branding of the company in
international market and be competitive. Innovation helps in up gradation and integration of technologies
example: Mobile phones –Smart phone, where integration of functions is available in a single system.

15. What are Job content factors?

Achievement, advancement, responsibility, respect, growth and development.

16. Define Expectancy theory.

Force=Valance * Expectancy

17. What is an Equity theory.

Outcomes by a person Outcomes by another person
------------------------------------ = -----------------------------------
Inputs by a person Inputs by another person

18. Define Creativity.

Creativity is the ability and power to develop new ideas. This is a virtual idealization of a system or concept
and later develops into a workable product.

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19. What is the importance of leadership?
Securing co-operation, creating confidence in the minds of employees, providing good working climate.

20. Define Brainstorming. (April 2018)

Brainstorming is a problem solving technique. Improve problem solving by finding new ideas and unusual
solution. A team destined will sit and discuss about a problem and find out different solutions for solving it. A
best optimum solution to a problem can be found when different counterparts sit together and brainstorm on
that problem so that remote issues will be addressed and not missed out.

21. What is effective communication? (Nov 2016)

Effective communication is defined as verbal speech or other methods of relaying information that get a point
across. An example of effective communication is when you talk in clear and simple terms.

22. What is personality? (April 2017)

Personality is usually defined as the set of habitual behaviors, cognitions and emotional patterns that evolve
from biological and environmental factors.

23. What are the advantages of democratic leadership styles? (April 2018)
Solution for Complex Problems
Democratic leaders are typically excellent at solving complex issues. They have the ability to work
collaboratively, using a consensus of opinions to get things done the right way. The democratic leader often
thinks innovatively and encourages others to do the same, so that solutions to complex and strategic problems
can be found.
Good Business Fit
Solutions that are democratically derived generally last for the longest period of time. The democratic process
ensures that the solution is reviewed on a continuous basis. Additionally, engaging team members will enable
leaders to maintain effective processes that fit the business well. Democratic leaders ensure that team
members work well with other individuals, so that they are suitable to function in large corporate
environments in which co-operation and communication are crucial.
Strong Teams are Built by Democratic Leaders
Team members under democratic leadership tend to be supportive and strong. Honesty flourishes and more
collective working is done because the opinions of everyone are taken into consideration. Democratic leaders
are usually popular within the organization.
Foster Creative Environments
Democratic leaders effectively foster creative environments since they encourage the input and innovation of
team members. Creative designers succeed under democratic leadership because of the support and nurture
that is embodied in this leadership approach.

24. What is job satisfaction? (Nov 2017)

Job satisfaction is in regard to one's feelings or state-of-mind regarding the nature of their work. Job
satisfaction can be influenced by a variety of factors, eg, the quality of one's relationship with their supervisor,
the quality of the physical environment in which they work, degree of fulfillment in their work, etc.

25. What is meant by downward communication? (Nov 2018)

Downward communication involves a message travelling to one or more receivers at the lower level in the
hierarchy. The message frequently involves directions or performance feedback. The downward flow of
communication generally corresponds to the formal organizational communications system, which is usually
synonymous with the chain of command or line of authority.

26. What is the meaning of leadership?( April 2019)

Leadership can be described as the ability of an individual to influence, motivate, and enable others to
contribute toward the effectiveness and success of an organization or group of which they are members. A
person who can bring about change, therefore, is one who has this ability to be a leader

PART B - C410.4

1. Write short notes on the managerial grid.

2. Explain the motivation theories.(May 2016, April 2017, Nov 2017, Nov 2018)
3. Explain the various types of leadership with its different styles.(Nov 2016,Nov 2018)

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4. What are the various barriers to communication? How will you overcome them? ( April 2017, Nov 2017)
5. Explain trait approaches to leadership.
6. List out the various communication networks in an organization.
7. What are the computer – based communications in the modern business era?(May 2016)
8. Difference between motivation and satisfaction. (Nov 2016)
9. Compare and contrast early theories of motivation. (April 2018)
10. Identify barriers to effective interpersonal communication and how to overcome them. (April 2018)
11. Summarize the method of motivating employees in an organization. (April 2019)
12. Explain the characteristics of good communication and also state its barriers. (April 2019)

UNIT – V: CONTROLLING
PART A - C410.5

1. What is control?
Control is the measurement and correction of performance in order to make sure the enterprise objectives and
the plans devised to attain them are accomplished. In a manufacturing company we have different control like
budgetary control, purchase control, quality control, vendor quality control and customer quality control etc.

2. State the difference between feedback and feed forward control technique.
Feedback Feed forward
It measures only the output of the process It measures the input of the process
It is submissive approach It is aggressive approach
Less benefit More benefit

3. What is concurrent control?

Concurrent control implies parallel monitoring and control over the process. This ensures speedy and precise
monitoring that eliminates rejections happening between stages and delay in detecting failures in a system or
a process. Concurrent control framework ensures overall health monitoring of the system that takes care the
undue occurrences that hamper the growth and development of the system.

4. Define Budget.
A Budget is the financial plan for the current fiscal year duly considering all aspects of business that will
foster growth and development of the firm. It estimates the spending plan and investment / capital required for
the current financial year and projection for the next to aid planning for capital investment by the
management.

5. Define budgetary control. (Nov 2017)

Budgetary control refers to how well managers utilize budgets to monitor and control costs and operations in
a given accounting period. In other words, budgetary control is a process for managers to set financial and
performance goals with budgets, compare the actual results, and adjust performance, as it is needed.

6. Write the objectives of budgetary control.

It aims at maximization of profits; to plan and control the income and expenditure of the organization and to
provide adequate working capital.

7. What are classifications of budget?

Functional classification- Sales, production, cash, capital and master budget; Time classification- Short,
current and long term budget; Activity level- Fixed and flexible budget.

8. Define productivity. (Nov 2017)

Productivity is a measure of how much input is required to produce a given output. The output derived from
the inputs processed through series of operations. Productivity is an average measure of the efficiency of
production. It can be expressed as the ratio of output to inputs used in the production process, i.e. output per
unit of input.

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9. What are the difference between PERT and CPM?

S. No. CPM PERT
1. It is activity oriented PERT is event oriented
2. CPM is planning device It is control device
3. It estimates only one time It estimates three times
4. It is a deterministic model It is probabilistic model

10. Define OR.

OR-Operational Research coupled with Optimization techniques is a systematic analysis of a problem through
scientific methods, carried out by appropriate specialists, working together as a team, finding an optimum and
the most appropriate solution to meet the given objective under a given set of constraints. OR can be
employed in hospitality, manufacturing and service sectors.

11. Define Linear Programming.

It is a mathematical technique in operation research and a plan of action solve a given problem involving
linearly related variables in order to achieve the laid down objectives in the form of minimizing or
maximizing the objective function under given set of constraints.

12. What is Inventory Control?

Inventory control refers to the control of raw materials and purchased material in store and regulation of
investment in them. Inventory Control is the supervision of supply, storage and accessibility of items in order
to ensure an adequate supply without excessive oversupply. It can also be referred as internal control - an
accounting procedure or system designed to promote efficiency or assure the implementation of a policy or
safeguard assets or avoid fraud and error etc.

13. What is JIT?

Just in time inventory system, in this method the supplier delivers the materials to the production shop just in
time required to be assembled. This method reduces the cost of inventory. JIT is also referred to as
KANBAN/CARD system that maintains 3 cards, one with end user, one with stores and one with
supplier/vendor.

14. What are objectives of value engineering?

VAVE-Value added value engineering is a special type of cost reduction technique. The steps involved are
listed -Modify and improve product design; reduce the product cost; Increase the profit and simplify the
product functionality

15. What is MNC?

Multinational corporation is an enterprise which own or control production or service facilities outside the
country in which they are based. They have international reputation and recognition for their technology and
brands.

16. Write some advantages of MNC‘s.

It can promote quality product at low price; MNC leads to increase in production, aggregate employment,
balance in exports and imports of the required inputs (motivate SME‟s and domestic manufacturers) and it
increases the government revenues and contribute to the state economy like GDP.

17. What is work simplification?

It is the process of obtaining the participation of workers in simplifying their work through time study, motion
study, work flow analysis and layout of work situation.

18. Define quality circles.

Quality circles are groups of people, from the same organisational area, who meet regularly to solve problems
they experience at work. Members are trained in solving problems, in applying statistical quality control and
working in groups.

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19. Define Purchase control.

Purchase by definition of function is the procurement of materials (domestic and import) to cater the needs of
counter departments in an organisation adhering to the MRP –materials requirement plan from MPS-Master
production schedule. Purchase department sit with Marketing and Vendor quality in negotiating on price and
quality with the vendors/suppliers.

20. Define Expense control.

Expense statement is the spending on materials, labor, maintenance, electric power, water and miscellaneous
like CSR initiatives, Labor welfare and medical insurance.

21.What is preventive control in management?(April 2017)

Preventative controls are designed to keep errors or irregularities from occurring in the first place. They are
built into internal control systems and require a major effort in the initial design and implementation stages.

22. What are the uses of computers in management control? (Nov 2016)
The use of computers for management controls poses an entirely new set of requirements on the system
designers. The computer, through the use of simulation models, provides the capability of pretesting system
designs and the basis for eventual real-time control.

23.Why controlling is important? (April 2017)

Control eliminates the risk of non-conformity of actual performance with the main goals of the organization.

24. Discuss the productivity problems in a management. (Nov 2016)

Productivity implies measurement, which in turn is an essential step in the control process. The various
factors include less-skilled workers with respect to the total labor force, immediate results, growing affluence
of the people which makes them less ambitious, breakdown in family structure, workers‟ attitude, government
policies and regulations.

26. What is the characteristics of control function?(April 2018)

 Control is embedded in each level of organizational hierarchy,
 Control is forward looking and closely linked with planning,
 Control is a tool for achieving organizational activities,
 Control is an end process and compares actual performance with planned performance,
 Control point out the error in the execution process,
 Control achieves the standard,
 Control helps management monitor performance

27. What is performance appraisal? (April 2018)

A performance appraisal, also referred to as a performance review, performance evaluation, (career)
development discussion, or employee appraisal is a method by which the job performance of an employee is
documented and evaluated. Performance appraisals are a part of career development and consist of regular
reviews of employee performance within organizations.

28. What are various steps involved in the controlling process? (Nov 2018)
The basic control process involves
a).Establishment of Standards
b).Measurement of Performance
c).Comparing Measured Performance to Stated Standards:
d).Taking Corrective Actions

29. Name any two HR related controlling techniques (Nov 2018)

1.PERT: The Program (or Project) Evaluation and Review Technique, commonly abbreviated PERT, is a is a
method to analyze the involved tasks in completing a given project, especially the time needed to complete
each task, and identifying the minimum time needed to complete the total project.
2.GANTT CHART: A Gantt chart is a type of bar chart that illustrates a project schedule. Gantt charts
illustrate the start and finish dates of the terminal elements and summary elements of a project. Terminal
elements and summary elements comprise the work breakdown structure of the project.

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30. Name atleast 4 budgetary control techniques. (Aril 2019)

i) Revenue and Expense Budgets
ii) Time, Space, Material, and Product Budgets
iii) Capital Expenditure Budgets
iv) Cash Budgets
v) Variable Budget:
vi) Zero Based Budget

31. Interpret the meaning of controlling. (Aril 2019)

Controlling is the managerial functions of planning, staffing, organizing, implementing and directing. It helps
to check the errors and take the corrective action, so it is known as an important function of management.

PART B - C410.5
1. List out the critical types of critical point standards.
2. Discuss the various budgetary and non - budgetary control techniques? (Nov 2016)
3. What are the steps involved in planning and control. (April 2017)
4. What is productivity? Explain the methods of improving productivity in IT industry.(May 2016)
5. List out the need and characteristics of MIS. (May 2016)
6. Write short notes on : (May 2016)
(i) Control of productivity and management, ii) Direct and preventive control.
7. Explain the uses of computers and IT in management control? (April 2017, Nov 2017)
8. Explain the Various control techniques? (Nov 2017, April 2019)
9. Illustrate and explain the three steps in the control process. (April 2018)
10. Discuss the various types of tools used to monitor and measure organizational performance. (April 2018)
11. Case study: Modern manufacturing company has been using a budgetary control system for the last 3
years. When asked to explain the system, Mr. John, Managing Director of the company, observed: “We‟re
pretty flexible in our budgetary system. Every manager is given a total amount that he or she can spent for the
next year. We don‟t care how it is used as long as the total is not exceeded and organizational objectives are
achieved.”
i) Discuss the merits and demerits of the company‟s approach to budgeting.
ii) Do you agree or disagree with this approach? Explain your view. (Nov 2017)
12. Evaluate the process of controlling. (April 2019)
13. Impact of IT in management concepts – Discuss. (Nov 2018)
14. Write short notes on
(i) Control of productivity problems and management
(ii) Direct and preventive control. (Nov 2018)

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