Note:- An organization must balance between effectiveness and efficiency.

Basis Effectiveness Efficiency

Meaning It refers to completion It refers to completion of
of task on time task on minimum cost
Orientation Time oriented Cost oriented
Objective Achieve end result Reducing the cost
Main Doing the right task Doing the task in right way
consideration
Difference between Unity of Command and Unity of Direction
Basis Unity of Command Unity of Direction
Meaning One subordinate should Each group of activities
receive orders from and having same objective
should be responsible to must have one head and
only one superior. one plan.
Aim It prevents dual It prevents overlapping of
subordination. activities.
Implications It affects an individual It affects the entire
employee. organization.
 Comparison Between Taylor and Fayol

Comparison Between Taylor and Fayol Contribution

Basis Taylor Fayol

Concern Taylor’s techniques and principles
are concerned with worker’s
efficiency.
Level Taylor started his studies and
approach from lowest level in the
organization.
Emphasis Taylor laid great emphasis on
standardization of work.
Focus Taylor’s main focus on eliminating
wasteful movements and saving
energy of workers. it forces on
increase in productivity.
Fayol’s principles are concerned
with management efficiency
Fayol started his studies and
approach from the highest level in
the organization
Fayol laid great emphasis on
function of managers
Fayol’s focus was on development
of principles for better
management. It focuses on
improving overall achieve station.
 Comparison Between Taylor and Fayol
Basis Taylor Fayol
Major Taylor’s main contribution was Fayol’s main contribution was
contribution development of scientific development of fourteen principles
techniques and scientific of general management.
principles
Personality Taylor developed a personality of Fayol developed the personality of
scientist and became famous as a researcher and practitioner. He
father of scientific management . became famous as father of general
management.
Unity of Did not follow this principles as Strictly followed this principle. Only
command Taylor insisted on minimum 8 one boss for one employees
bosses
Expression Taylor’s techniques are Fayol’s techniques are expressed as
expressed as scientific general theory of administration
management
Applicability Applicable to specialized Applicable universally
situation
 Difference between Policies and Rules
Policies Rules
Policies are organization’s own way of Rules are norms regarding actions and non-
handling a problem. actions of employees.
Policy is a general statement. Rules is a specific statement.
Policy is a guide for decision making and Rule is a guide to behaviour of employees.
thinking
Policy describes what is to be done Rules describe what is to be done and what
under different situations. is not to be done by the employees
Polices are less rigid Rules are very rigid.
Example: Policy of giving admission to Example: No smoking in office premises
students securing more than 60%
marks.
 Difference between functional structure and Divisional structure
Basis Functional Structure Divisional Structure
Formation This is formed on the basis of This is formed on the basis of
function product
Accountability Difficult to make accountable as Easy to fix the accountability as
and departments are interdependent departments work independently
Responsibility
Cost It is economical It is expensive
Development Less chances as manager More chances as manager perform
of manager becomes specialised in one multifunction.
function only
Specialisation This type of structure bring It bring product specialisation
functional specialisation
Co-ordination Compared to divisional less when Better coordination because all the
company is producing more activities related to one product are
product in one department only
Autonomy of Less autonomy of action More autonomy
operation
Suitable It is suitable for all type of It is suitable for multi product or
organization diversified firm
 Difference between Formal Organisation and Informal Organisation
Basis Formal Organisation Informal Organisation
Meaning Structure of authority relationships Network of social relationship arising
created by the management. out of interaction among employees.
Origin Arises as a result of company rules Arises as a result of social interaction
and polices
Authority Arises by virtue of position in Arises out of personal qualities
management
Behaviour It is directed by rules There is no set behaviour
Flow of Communication takes place Flow of communication is not through
communicat through the scalar chain a planned route. It take place in any
ion direction
nature Rigid Flexible
Leadership Managers are leaders Leaders may or may not be manager.
They are chosen by the group
 Difference between Authority, Responsibility and Accountability
Basis Authority Responsibility Accountability
Meaning Right to command Obligation to perform Answerability for outcome
an assigned task of the assigned task
Delegation Can be delegated Cannot be entirely Cannot be delegated at all
delegated
Origin Arises from formal Arises from delegated Arises from responsibility
position authority
Flow q Flows downward from Flow upward from Flows upward from
superior to subordinates to subordinates to superior
subordinate superior
 Difference between Delegation and Decentralisation

Basis Delegation Decentralisation

Scope/parties Delegation is limited in scope
involved
Significance Delegation is important function
status but it is the routine function of
the mangers almost everyday
managers share their authority
and responsibility with the
subordinates.
Decentralisation is large or wide in
scope
Decentralisation is more significant
because it is a one time decision and
it is a policy matter. The top level
executives decide whether to follow
the decentralised or centralised
policy. And once the decision is
taken it is very difficult to change the
decision.
Freedom of In the process of delegation the
action managers pass the authority and
the responsibilities to the
subordinates and after that also
there is constant and continuous
supervision by the manages to
keep a check how subordinates
are performing their activities.
Scope It is narrow in scope
Responsibility It is the responsibility of every
manager
Nature/Essential Delegation is compulsory act
purpose To reduce the burden of
manager
Grant of Authority is granted by
authority immediate superior
In decentralisation there is more
freedom of action because once the
authority is distributed
systematically there will be periodic
appraisal and not the continuous
supervision
It is wide in scope
It is the responsibility of top level
manager
Decentralisation is an optional
policy
To increase the role of subordinate
and giving them more autonomy
Authority is granted by top level
 Difference between Training and Development
Training Development
It is a process of increasing knowledge It is a process of learning and growth
and skills
It is to enable the employee to do the job It is to enable the overall growth of the
better employee
It is a job oriented process It is a career oriented process
 Difference between formal and informal communication
Basis of Formal communication
Meaning Communication between two or
more who are officially attached
Nature It is rigid in nature and cannot be
modified
Form These may be oral or written but
generally prefer written
Sclar chain Here scalar chain follow
Need It server need of organisation
Purpose To achieve organisational objectives
Fixation It is easy to fix the responsibilities in
responsibiliti formal communication because
es source of information is known
Informal communication
Communication between two or more
who are not officially attached
It is flexible, dynamic and varies from
individual to individual
Informal communication and generally
oral
It does not follow scalar chain
It serve need of individual working in
organisations
For getting relief and psychological
satisfaction
It is not possible to fix the responsibility
because sources of information no is
known
 Difference between primary market and secondary market
BASIS PRIMARY MARKET SECONDARY MARKET
Types of New securities are sold Second hand or existing
security securities are sold
issued by Securities are issued by Securities are transfer from one
companies investor to other
Location There is no fixed geographical There is a fixed geographical
location area and working hour
Entry All companies can enter and Only listed company securities
raise capital are bought and sold
Price Price of securities are fixed by Price of securities depend upon
the management of company demand and supply factors
 Difference between capital market and money market
BASIS CAPITAL MARKET
Participants The participants in capital market
are financial institutions, banks
,companies foreign investors and
retail investors from public.
Durations Capital market deals in medium and
long term securities.
Instruments Equity shares ,preference shares ,
bonds, etc.
Liquidity These are less liquid
Risk Associated more risk
Return More return
requirement It is for fixed capital requirement
MONEY MARKET
The participants of money market are
financial institutions, bank, public and
private company only
Money market deals with short term
securities having maximum period of 1
year
treasury bills, commercial bills,
commercial paper etc.
These are high liquid
Less risk
Less return
It is for working capital market
requirements
 Difference between Advertising and Personal selling
Basis Advertising Personal selling
Form It is an impersonal form of It is an personal form of
communication communication
Flexibility Less flexible as standardized Flexible message can be changed
messages are used according to the type of
customers
Reach It reaches masses Only limited number of
customers can be contacted
Cost Cost per person is less as at it Cost per person is high as at a
cover large number of people time limited members can be
contacted
Coverage Covers market in short time Takes long time to cover market
Use of Makes use of mass media such Do not make use of mass media
mass as T.V., Radio, Newspaper.
media
feedback No direct feedback can be Direct feedback can be collected
obtained by salesman
Useful for More useful for standardised More useful for industrial and
and customer products customised products
 Three tier seek redressal agencies under consumer protection act, 2019
Basis District commission State commission National commission
Composition It consists of a It consists of a It consists of a
president and two president and not less president and at least
other members; one of than four other four other members
the member has to be members; one of the and one of the
a woman member has to be a member has to be a
woman woman
Who can be a A working or retired A working or retired A working or retired
president judge of district court judge of high court judge of supreme court
Appointment The president is The president is The president is
of president appointed by the state appointed by the state appointed by the
govt on the govt after consultation central govt after
recommendation of with the chief justice consultation with the
the selection of the high court chief justice of India
committee
Jurisdiction Entertain complaints Entertain complaints Entrain complaint where the
where the value of when the value of value of good or service
goods or services goods or services exceeds ₹10 crore
does not exceed ₹1 exceeds ₹1 crore and
crore upto ₹10 crore
Appeal Any person who is Any person who is Any person who is
against aggrieved by the aggrieved by the aggrieved by the order of
orders order of district order of state the national commission
forum can appeal commission can can appeal against such
against such order appeal against such order to supreme court
to state commission order to national within 30 days only cases
within 45 days commission within where value of goods or
30 days services exceeds ₹10 crore
can file appeal in supreme
court.
EXTRA PORTION OF CONTROLLING (WILL COVER IN LIVE REVISION MORNING)

Causes of deviation Corrective action to be taken

Defective material Change the quality specification for the material
used
Defective machinery Repair the existing machine or replace the
machine if cannot be repaired
Obsolete machinery Undertake technological upgradation of
machinery
Defective process Modify the existing process
Defective physical conditions of work Improve the physical conditions of work
ALL THE BEST