1
JAMNALAL BAJAJ INSTITUTE
OF MANAGEMENT STUDIES
PRINCIPLE OF MANAGEMENT
ASSIGNMENT
PROFESSOR - MANDKE
PREPARED BY S. G. N...
2
Q 1 Explain Principle of Management
Ans
The Principles of Management are the essential, underlying factors that form the...
3
All those working in the same line of activity must understand and pursue the same
objectives. All related activities sh...
4
Social order ensures the fluid operation of a company through authoritative procedure.
Material order ensures safety and...
5
Q 2 Explain management and its functions
Ans
Management is creative problem solving. This creative problem solving is ac...
6
Q 3. Explain controlling
Ans:
Controlling involves ensuring that performance does not deviate from standards. Controllin...
7
Q.4 Explain Lillian gilberth
Ans:
Lillian Gilbreth was the mother of modern management. Together with her husband Frank,...
8
standardization, incentive wage-plans, and job simplification. Finally, she was among the
first to recognize the effects...
9
management with management performing the science and instruction and the workers
performing the labor, each group doing...
10
mirrors the interchangeable parts ideas pioneered by Eli Whitney earlier in the century.
Furthermore, the concepts of t...
11
disciplinarian. Mayo made frequent changes in their working conditions, always discussing
and explaining the changes in...
12
In addition to formal organizational structures, an organization may also have a hidden side
that doesn't show up on it...
13
The informal organization of a firm may be more important than a manager realizes.
Although managers may think that the...
14
(v) Important channel of communication: News travels quickly via informal groups.
They are the clandestine transmitters...
15
this organization management method, when he said: "It's just another tool. It is not the great
cure for management ine...
16
Q. 10 Write short note of McKinseys7S
Ans.
M a c’ s 7 S – McKensey’s Model
This is one of the recently developed models...
17
Q 11. Write short notes on Line and Staff .
Ans.
Line and Staff Organisation
One of the ways to classify the diverse fu...
18
Advantages of Line And Staff Type of Organisation.
1. Planned Specialisation. Allows hiring of super specialist to tack...
19
In the above process, the error could occur at any point resulting in unplanned effects and
results.
ABC of Communicati...
20
2. Noise
3. Distance
4. Physical
5. Hierarchical
3. Semantic Barriers.
(a) Multiple Meaning Words
(b) Language
4. Cultu...
21
Under the assumptions of theory X :
• Employees inherently do not like work and whenever possible, will attempt to avoi...
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One of the most widely mentioned theories of motivation is the hierarchy of needs theory put
forth by psychologist Abra...
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As each of these needs are substantially satisfied, the next need becomes dominant. From the
standpoint of motivation, ...
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Future Oriented. Necessary forecasts are made about future and accordingly plans are based
on them.
Continuous Activity...
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Evaluating alternative courses. Weighing the various alternatives in the light of presmises
and goals.Select the course...
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Advantages
1. Planning Minimises Risks. This is because future risks are forecasted and
necessary protective devices ar...
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Organizing can be viewed as the activities to collect and configure resources in order to
implement plans in a highly e...
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• Forward Looking. Control should be forward looking though many of the controls
are instantaneous they should focus at...
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• Reflecting Organisation Pattern. The control should reflect organisation pattern by
focussing attention on positions ...
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a. Clear
b. Simple and rational
c. Relevant
d. Reliable, self announcing and understandable.
3. Comparing actual and st...
31
4. Correction of Deviations. This is the last step in control process which r3equires that
action should be taken to ma...
32
2. Maintenance of cohesiveness
3. Maintenance of feelings of integrity and self respect.
(IV) Theory of Authority
1. Au...
33
Q. 22 Explain Functional departmentation
Ans.
The characteristics of the functional pattern are described below.
Charac...
34
Characteristic Description
Cross-functional Core processes cross-functional boundaries so that a
complete product or se...
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Hierarchy Levels of authority may be established. For example:
• employee
• work leader
• shift supervisor
• department...
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operating units according to the subject matter or skills involved.
This pattern has characteristics similar to the fun...
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Illustration The diagram below illustrates the knowledge pattern.
Post Legal Office
Contracts Labor Ethics/Integrity FO...
38
Authority individual to another. levels and at all functions in a concern.
Grant of
Responsibility
Responsibility canno...
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Qualities of a Good Leader
1. Good personality
2. Intelligent
3. Initiative
4. Innovative
5. Self confidence
6. Good Co...
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2. Bureaucratic Style. In this style of leadership decisions are taken as per laid
down set of rules without any deviat...
41
involvement at the micro level in the personal affairs of the subordinates, this style is
suitable for only small organ...
42
Communication may be one of the essential life skills, since it's clearly related to success
with family, friends and s...
43
depending upon the authority relationships, functional relationships and cooperative
relationships which exist in an en...
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  1. 1. 1 JAMNALAL BAJAJ INSTITUTE OF MANAGEMENT STUDIES PRINCIPLE OF MANAGEMENT ASSIGNMENT PROFESSOR - MANDKE PREPARED BY S. G. Nadar MMM – I ROLL NO - 59
  2. 2. 2 Q 1 Explain Principle of Management Ans The Principles of Management are the essential, underlying factors that form the foundations of successful management. According to Henri Fayol (1841-1925) in his book General and Industrial Management (1916), there are fourteen 'principles of management'. Management principles are statements of fundamental truth. These principles serve as guidelines for decisions and actions of managers. They are derived through observation and analysis of events which managers have to face in practice. 1. Division of Work - The specialization of the workforce, creating specific personal and professional development within the labour force and therefore increasing productivity; leads to specialization which increases the efficiency of labour. By separating a small part of work, the workers speed and accuracy in its performance increases. This principle is applicable to both technical as well as managerial work. 2. Authority and Responsibility- The issue of commands followed by responsibility for their consequences. Authority means the right of a superior to give order to his subordinates; responsibility means obligation for performance. This principle suggests that there must be parity between authority and responsibility.. They are co-existent and go together, and are two sides of the same coin. 3. Discipline- Discipline refers to obedience, proper conduct in relation to others, respect of authority, etc. It is essential for the smooth functioning of all organizations. 4. Unity of Command - This principle states that every subordinate should receive orders and be accountable to one and only one superior. If an employee receives orders from more than one superior, it is likely to create confusion and conflict. Unity of Command also makes it easier to fix responsibility for mistakes. 5. Unity of Direction -
  3. 3. 3 All those working in the same line of activity must understand and pursue the same objectives. All related activities should be put under one group, there should be one plan of action for them, and they should be under the control of one manager. It seeks to ensure unity of action, focusing of efforts and coordination of strength. 6. Subordination of Individual Interest The management must put aside personal considerations and put company objectives first. Therefore the interests of goals of the organization must prevail over the personal interests of individuals. 7. Remuneration - Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity. The quantum and methods of remuneration payable should be fair, reasonable and rewarding of effort. 8. The Degree of Centralization - The amount of power wielded with the central management depends on company size. Centralization implies the concentration of decision making authority at the top management. Sharing of authority with lower levels is called decentralization. The organization should strive to achieve a proper balance. 9. Scalar Chain - Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank. The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels. It is considered a chain of command. It involves a concept called a "gang plank" using which a subordinate may contact a superior or his superior in case of an emergency,defying the hierarchy of control.However the immediate superiors must be informed about the matter 10. Order -
  4. 4. 4 Social order ensures the fluid operation of a company through authoritative procedure. Material order ensures safety and efficiency in the workplace. 11. Equity - Employees must be treated kindly, and justice must be enacted to ensure a just workplace. Managers should be fair and impartial when dealing with employees. 12. Stability of Tenure of Personnel - The period of service should not be too short and employees should not be moved from positions frequently. An employee cannot render useful service if he is removed before he becomes accustomed to the work assigned to him. 13. Initiative - Using the initiative of employees can add strength and new ideas to an organization. Initiative on the part of employees is a source of strength for the organization because it provides new and better ideas. Employees are likely to take greater interest in the functioning of the organization. 14. Esprit de Corps - This refers to the need of managers to ensure and develop morale in the workplace; individually and communally. Team spirit helps develop an atmosphere of mutual trust and understanding. These can be used to initiate and aid the processes of change, organization, decision making, skill management and the overall view of the management function. Fayol also divided the management function into five key roles: • To organise • To plan and forecast (Prevoyance) • To command • To control • To coordinate
  5. 5. 5 Q 2 Explain management and its functions Ans Management is creative problem solving. This creative problem solving is accomplished through four functions of management: planning, organizing, leading and controlling. The intended result is the use of an organization's resources in a way that accomplishes its mission and objectives Planning is the ongoing process of developing the business' mission and objectives and determining how they will be accomplished. Planning includes both the broadest view of the organization, e.g., its mission, and the narrowest, e.g., a tactic for accomplishing a specific goal. Organizing is establishing the internal organizational structure of the organization. The focus is on division, coordination, and control of tasks and the flow of information within the organization. It is in this function that managers distribute authority to job holders. Staffing is filling and keeping filled with qualified people all positions in the business. Recruiting, hiring, training, evaluating and compensating are the specific activities included in the function. In the family business, staffing includes all paid and unpaid positions held by family members including the owner/operators. Directing is influencing people's behavior through motivation, communication, group dynamics, leadership and discipline. The purpose of directing is to channel the behavior of all personnel to accomplish the organization's mission and objectives while simultaneously helping them accomplish their own career objectives. Controlling is a four-step process of establishing performance standards based on the firm's objectives, measuring and reporting actual performance, comparing the two, and taking corrective or preventive action as necessary. Each of these functions involves creative problem solving. Creative problem solving is broader than problem finding, choice making or decision making. It extends from analysis of the environment within which the business is functioning to evaluation of the outcomes from the alternative implemented.
  6. 6. 6 Q 3. Explain controlling Ans: Controlling involves ensuring that performance does not deviate from standards. Controlling consists of three steps, which include establishing performance standards, comparing actual performance against standards, and taking corrective action when necessary. Performance standards are often stated in monetary terms such as revenue, costs, or profits, but may also be stated in other terms, such as units produced, number of defective products, or levels of customer service. The measurement of performance can be done in several ways, depending on the performance standards, including financial statements, sales reports, production results, customer satisfaction, and formal performance appraisals. Managers at all levels engage in the managerial function of controlling to some degree. The managerial function of controlling should not be confused with control in the behavioral or manipulative sense. This function does not imply that managers should attempt to control or manipulate the personalities, values, attitudes, or emotions of their subordinates. Instead, this function of management concerns the manager's role in taking necessary actions to ensure that the work-related activities of subordinates are consistent with and contributing toward the accomplishment of organizational and departmental objectives. Effective controlling requires the existence of plans, since planning provides the necessary performance standards or objectives. Controlling also requires a clear understanding of where responsibility for deviations from standards lies. Two traditional control techniques are the budget and the performance audit. Although controlling is often thought of in terms of financial criteria, managers must also control production/operations processes, procedures for delivery of services, compliance with company policies, and many other activities within the organization. The management functions of planning, organizing, leading, and controlling are widely considered to be the best means of describing the manager's job as well as the best way to classify accumulated knowledge about the study of management. Although there have been tremendous changes in the environment faced by managers and the tools used by managers to perform their roles, managers still perform these essential functions.
  7. 7. 7 Q.4 Explain Lillian gilberth Ans: Lillian Gilbreth was the mother of modern management. Together with her husband Frank, she pioneered industrial management techniques still in use today. She was one of the first "superwomen" to combine a career with her home life. She was a prolific author, the recipient of many honorary degrees, and the mother of 12. She is perhaps best remembered for motherhood. Her children wrote the popular books Cheaper by the Dozen and Belles on Their Toes about their experiences growing up with such a large and famous family. But Lillian Moller Gilbreth was not only a mother; she was an engineer and an industrial psychologist. Lillian excelled in high school and decided that she wanted to study literature and music. Her father did not believe in higher education for women. He felt they needed only enough knowledge to manage a home gracefully. But Lillian persuaded him to let her attend the University of California at Berkeley while living at home and maintaining her family duties. When she obtained her B.A. in literature in 1900, she was the first woman to speak at a University of California commencement. She went to Columbia, but illness forced a return to California after her first year. Undaunted, she went back to Berkeley and received a master's degree in literature in 1902. She celebrated by planning a vacation. She spent some time in Boston before embarking, and there she met her future husband. Frank Gilbreth, who never went to college, was interested in efficiency in the workplace. His enthusiasm for the subject was contagious. He proposed to Lillian Moller three weeks after her return from Europe, and together they began their study of scientific management principles. Frank started a consulting business and Lillian worked at his side. They began their family and in 1910 moved to Rhode Island, where Gilbreth took her doctorate in psychology at Brown University in 1915--with four young children in tow at the ceremony. But where Frank was concerned with the technical aspects of worker efficiency, Lillian was concerned with the human aspects of time management. Her ideas were not widely adopted during her lifetime, but they indicated the direction that modern management would take. She recognized that workers are motivated by indirect incentives (among which she included money) and direct incentives, such as job satisfaction. Her work with Frank helped create job
  8. 8. 8 standardization, incentive wage-plans, and job simplification. Finally, she was among the first to recognize the effects of fatigue and stress on time management. Lillian Gilbreth continued her work alone after Frank's death in 1924. In 1926, she became the first woman member of the American Society of Mechanical Engineers. She went to Purdue in 1935 as a professor of management and the first female professor in the engineering school. In her consulting business, she worked with GE and other firms to improve the design of kitchens and household appliances. She even created new techniques to help disabled women accomplish common household tasks. She did not retire from professional work until she was in her 80s. She traveled widely, speaking and writing about management issues. In 1966, she won the Hoover Medal of the American Society of Civil Engineers. She died at the age of 92, the recipient of more than a dozen honorary degrees. Her ability to combine a career and family led to her being called, by the California Monthly in 1944, "a genius in the art of living." Q 5. What are the contribution of Frederick Taylor Ans:- Frederick Taylor - Scientific Management Description Frederick Taylor, with his theories of Scientific Management, started the era of modern management. In the late nineteenth and early twentieth centuries, Frederick Taylor was decrying the " awkward, inefficient, or ill-directed movements of men" as a national loss. He advocated a change from the old system of personal management to a new system of scientific management. Under personal management, a captain of industry was expected to be personally brilliant. Taylor claimed that a group of ordinary men, following a scientific method would out perform the older "personally brilliant" captains of industry. Taylor consistently sought to overthrow management "by rule of thumb" and replace it with actual timed observations leading to "the one best" practice. Following this philosophy he also advocated the systematic training of workers in "the one best practice" rather than allowing them personal discretion in their tasks. He believed that " a spirit of hearty cooperation" would develop between workers and management and that cooperation would ensure that the workers would follow the "one best practice." Under these philosophies Taylor further believed that the workload would be evenly shared between the workers and
  9. 9. 9 management with management performing the science and instruction and the workers performing the labor, each group doing "the work for which it was best suited." Taylor's strongest positive legacy was the concept of breaking a complex task down in to a number of small subtasks, and optimizing the performance of the subtasks. This positive legacy leads to the stop-watch measured time trials which in turn lead to Taylor's strongest negative legacy. Many critics, both historical and contemporary have pointed out that Taylor's theories tend to "dehumanize" the workers. To modern readers, he stands convicted by his own words: " … in almost all of the mechanic arts, the science which underlies each act of each workman is so great and amounts to so much that the workman who is best suited to actually doing the work is incapable of fully understanding this science, without the guidance and help of those who are working with him or over him, either through lack of education or through insufficient mental capacity." And: "to work according to scientific laws, the management must takeover and perform much of the work which is now left to the men; almost every act of the workman should be preceded by one or more preparatory acts of the management which enable him to do his work better and quicker than he otherwise could." The Principles of Scientific Management Environment Taylor's work was strongly influenced by his social/historical period. His lifetime (1856- 1915) was during the Industrial Revolution. The overall industrial environment of this period is well documented by the Dicken's classic Hard Times or Sinclar's The Jungle. Autocratic management was the norm. The manufacturing community had the idea of interchangeable parts for almost a century. The sciences of physics and chemistry were bringing forth new miracles on a monthly basis. One can see Taylor turning to "science" as a solution to the inefficiencies and injustices of the period. His idea of breaking a complex task into a sequence of simple subtasks closely
  10. 10. 10 mirrors the interchangeable parts ideas pioneered by Eli Whitney earlier in the century. Furthermore, the concepts of training the workers and developing "a hearty cooperation" represented a significant improvement over the feudal human relations of the time. Successes Scientific management met with significant success. Taylor's personal work included papers on the science of cutting metal, coal shovel design, worker incentive schemes and a piece rate system for shop management. Scientific management's organizational influences can be seen in the development of the fields of industrial engineering, personnel, and quality control. From an economic standpoint, Taylorism was an extreme success. Application of his methods yielded significant improvements in productivity. Improvements such as Taylor's shovel work at Bethlehem Steel Works (reducing the workers needed to shovel from 500 to 140) were typical. Q 6. Contribution of George Elton Mayo's Hawthorne Experiments Ans:- Henri Fayol - Administration The Studies The Hawthorne Studies (or experiments) were conducted from 1927 to 1932 at the Western Electric Hawthorne Works in Chicago, where Harvard Business School professor Elton Mayo examined productivity and work conditions. Studies grew out of preliminary experiments at the plant from 1924 to 1927 on the effect of light on productivity. Those experiments showed no clear connection between productivity and the amount of illumination but researchers began to wonder what kind of changes would influence output. Variables Affecting Productivity Specifically, Mayo wanted to find out what effect fatigue and monotony had on job productivity and how to control them through such variables as rest breaks, work hours, temperature and humidity. In the process, he stumbled upon a principle of human motivation that would help to revolutionize the theory and practice of management. Mayo took six women from the assembly line, segregated them from the rest of the factory and put them under the eye of a supervisor who was more a friendly observer than
  11. 11. 11 disciplinarian. Mayo made frequent changes in their working conditions, always discussing and explaining the changes in advance. He changed the hours in the working week, the hours in the workday the number of rest breaks. the time of the lunch hour. Occasionally, he would return the women to their original, harder working conditions. Relay assembly The investigators selected two girls for their second series of experiments and asked them to choose another four girls, thus making a small group of six. The group was employed in assembling telephone relays - a relay being a small but intricate mechanism composed of about forty separate parts which had to be assembled by the girls seated at a lone bench and dropped into a chute when completed. The relays were mechanically counted as they slipped down the chute. It was intended that the basic rate of production should be noted at the start, and that subsequently changes would be introduced, the effectiveness of which would be measured by increased or decreased production of the relays. Feedback mechanism Through out the series of experiments, an observer sat with the girls in the workshop noting all that went on, keeping the girls informed about the experiment, asking for advice or information, and listening to their complaints. The experiment began by introducing various changes, each of which was continued for a test period of four to twelve weeks. The results of these changes are as follows: Conditions and results The experimental group had considerable freedom of movement. They were not pushed around or bossed by anyone. Under these conditions they developed an increased sense of responsibility and instead of discipline from higher authority being imposed, it came from within the group itself. Q 7. Explain informal organaziation Ans:- The Informal Organization
  12. 12. 12 In addition to formal organizational structures, an organization may also have a hidden side that doesn't show up on its organizational chart. This hidden informal organization is defined by the patterns, behaviors, and interactions that stem from personal rather than official relationships. In the informal organization, the emphasis is on people and their relationships; in the formal organization, the emphasis is on official organizational positions. The leverage, or clout, in the informal organization is informal power that's attached to a specific individual. On the other hand, in the formal organization, formal authority comes directly from the position. An individual retains formal authority only so long as he or she occupies the position. Informal power is personal; authority is organizational. Firmly embedded within every informal organization are informal groups and the notorious grapevine; the following list offers descriptions of each: Informal groups. Workers may create an informal group to go bowling, form a union, discuss work challenges, or have lunch together every day. The group may last for several years or only a few hours. Sometimes employees join these informal groups simply because of its goals. Other times, they simply want to be with others who are similar to them. Still others may join informal groups simply because they want to be accepted by their coworkers. The grapevine. The grapevine is the informal communications network within an organization. It is completely separate from — and sometimes much faster than — the organization's formal channels of communication. Formal communication usually follows a path that parallels the organizational chain of command. By contrast, information can be transmitted through the grapevine in any direction — up, down, diagonally, or horizontally across the organizational structure. Subordinates may pass information to their bosses, an executive may relay something to a maintenance worker, or employees in different departments may share tidbits. Grapevine information may be concerned with topics ranging from the latest management decisions to the results of today's World Series game to pure gossip. The information may be important or of little interest. By the same token, the information on the grapevine may be highly accurate or totally distorted.
  13. 13. 13 The informal organization of a firm may be more important than a manager realizes. Although managers may think that the informal organization is nothing more than rumors that are spread among the employees, it is actually a very important tool in maintaining company-wide information flow. Results of studies show that the office grapevine is 75 percent to 90 percent accurate and provides managers and staff with better information than formal communications. Rather than ignore or try to suppress the grapevine, managers should make an attempt to tune in to it. In fact, they should identify the people in the organization who are key to the information flow and feed them information that they can spread to others. Managers should make as big an effort to know who their internal disseminators of information are as they do to find the proper person to send a press release. Managers can make good use of the power of the informal organization and the grapevine Q 8. Explain informal organaziation Ans:- Formal organization A formal organization refers to the structure of well defined jobs, each bearing a definite measure of authority, responsibility and accountability. Thus, a formal organization is created through the co-ordination of efforts of various individuals. Every member is responsible for the performance of a specified task assigned to him on the basis of authority responsibility relationship in an organization. 1. To employees (i) Sense of belonging: In a formal organization, there is lack of sense of belongingness and personal satisfaction. (ii) Value for emotional problems: In the daily work routine there are many opportunities for tension and frustration. (iii) Aid on the job: In case of accidents or illness, members of an informal group help one another. (iv) Innovation and originality: By enabling members to modify the job situation more to their liking, the informal organization creates the necessary environment for individual innovation and originality. The individual can experiment with his ideas.
  14. 14. 14 (v) Important channel of communication: News travels quickly via informal groups. They are the clandestine transmitters and receivers of information before it is officially released. (vi) Social control: Informal groups provide all its members a set of norms or guides to correct behavior. Members are expected to conform to those norms. (vii) Check on authority: Informal group forces the manager to plan and act more carefully than he would otherwise. Informal organization is a check and balance on unlimited use of authority by a manager. 2. To management (i) Less supervision: Informal group is self-policing. This relieves the management of much of the burden of supervision. (ii) An aid to management: The information gives the manager much feedback about employees and their work experiences thereby increasing his understanding of what he needs to do. Disadvantages of an Informal organization (i) Resistance to change: An informal organization is bound by customs, conventions and culture. (ii) Role conflict and sub-optimization: In an informal organization, everyone works towards the same objectives. Members put their own group objectives ahead of organization’s objectives. Hence, the organization suffers. (iii) Rumour: An informal organization sometimes functions as a carrier of rumor. (iv) Group think philosophy: Workers become loyal to their groups. Q 9. What do you understand by M.B.O. Explain? Ans Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives. Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his book 'The Practice of Management'. In the 90s, Peter Drucker himself decreased the significance of
  15. 15. 15 this organization management method, when he said: "It's just another tool. It is not the great cure for management inefficiency... Management by Objectives works if you know the objectives, 90% of the time you don't." Core Concepts According to Drucker managers should "avoid the activity trap", getting so involved in their day to day activities that they forget their main purpose or objective. Instead of just a few top managers, all managers should: participate in the strategic planning process, in order to improve the implementability of the plan, and implement a range of performance systems, designed to help the organization stay on the right track. Managerial Focus MBO managers focus on the result, not the activity. They delegate tasks by "negotiating a contract of goals" with their subordinates without dictating a detailed roadmap for implementation. Management by Objectives (MBO) is about setting yourself objectives and then breaking these down into more specific goals or key results. Main Principle The principle behind Management by Objectives (MBO) is to make sure that everybody within the organization has a clear understanding of the aims, or objectives, of that organization, as well as awareness of their own roles and responsibilities in achieving those aims. The complete MBO system is to get managers and empowered employees acting to implement and achieve their plans, which automatically achieve those of the organization. Where to Use MBO The MBO style is appropriate for knowledge-based enterprises when your staff is competent. It is appropriate in situations where you wish to build employees' management and self- leadership skills and tap their creativity, tacit knowledge and initiative.
  16. 16. 16 Q. 10 Write short note of McKinseys7S Ans. M a c’ s 7 S – McKensey’s Model This is one of the recently developed models of management. The model was developed by the widely respected consulting firm of McKinsey and Company. It is based on two best selling books, namely, The Art of Japanese Management and In Search of Excellence. The model was tested extensively by McKinsey’s consultants in their studies of many companies. This frame work has also been used by respected business schools such as Harvard and Stanford. Thus Theory and Practice support each other. However, if effort to get all the attributes starting with ‘S’, (to serve as memory hook) meaning of some of the terms had to be stretched. Like while ‘skills’ is used for personal skills, here it stands for capabilities of the organisation as a whole. By Super-ordinate Goals, the theorists have emphasised that goal statements are very important in determining the destiny of the enterprise. They also point out that values must be shared by organisation members. Therefore special attention is to be given to personal and organisational values. Strategy Structure System Staff Style Skill Super-ordinate Goals of org
  17. 17. 17 Q 11. Write short notes on Line and Staff . Ans. Line and Staff Organisation One of the ways to classify the diverse functions of an organisation is to divide them into line and staff functions. The words line and staff are basically euphemisms for main and support functions. The line functions are defined as those that contribute directly to accomplishment of the objectives of the enterprise where as staff functions are those which help the line persons to execute their tasks more efficiently and effectively. Accordingly, production and sales (and some times finance also) are termed as line and planning, purchasing, accounting, personnel, plant maintenance and quality control are regarded as staff functions. Unfortunately, this division has been a constant source of debate and friction amongst the managers and the academicians. The separating line between two functions is very thin and many functions fall in the grey area. Often one function regarded as line by one authority is termed as staff by another. Take for instance, Tool Room in-charge in a production shop. While the Headquarter authorities classify the job as line function, the machine operator in the same shop is not willing to accept it as such.. The purpose of the staff personnel is to investigate, research, assist and give advice to the line people. The line and staff personnel are quite often at loggerheads. Both have grouse against each other. However, such grouse are minimised by cross training/rotation of staff and line appointments whereby every person gets to work in both kinds of jobs and thus understands the functions and nuances of the other better. This method has been successfully adopted by the Defence Forces. Despite being enveloped by the constant debate, and being source of friction in the organisation, this method has its own undeniable advantages: - Characteristics 1. Line executives command, they are doers 2. The staff specialists advice, they are thinkers 3. The staff plays a major part in planning the activity 4. The Line manager have clear and absolute authority for execution of decisions
  18. 18. 18 Advantages of Line And Staff Type of Organisation. 1. Planned Specialisation. Allows hiring of super specialist to tackle problem. 2. Affords opportunity to investigate the problem thoroughly. Man involved in the day to day production process will rarely have time to invest in research. 3. Bifurcation of conceptual and executive functions 4. Training ground 5. Sound decisions 6. Less burden on Line executive 7. Suitable for large organisations Q 12. What are the Barriers to Organizational Communication ? Ans. Communication can be defined as, “transfer of thoughts and information from one person to another person. Communication can be oral (Direct or telephonic or messanger), written (letters, emails, sms) or even in sign language. Effective communication is vital for success in any field. Improper and ineffective communication can be the difference between success and failure. Communication is a difficult art and requires careful handling to avoid disastrous results. Communication could be a one way or two way process. But for the communication to be effective and reliable, it should be two way as far as possible. Communication can be in three directions: 1. Upward – From subordinates/workers to senior officers/management. 2. Downward – From Superiors/management to subordinates and workers. 3. Lateral – Between colleagues, peers, interdepartmental meetings, etc. COMMUNICATION PROCESS SENDER RECEIVER FEED BACK Thoughts Encode Transmission Receive Decode Under- stand
  19. 19. 19 In the above process, the error could occur at any point resulting in unplanned effects and results. ABC of Communication. In the most simplistic form, an effective communication has to have three independent attributes A, B & C, ie A – Accurate B – Brief C – Clear Further elaborated, 7 cardinals of effective communication are as follows: - 1. Candid 2. Clear 3. Complete 4. Concise 5. Concrete – No vagueness, Definite 6. Correct 7. Courteous Communication is rarely with 100% accuracy. There will always be distortions in communication due to either failure to code the message or decode and understand the message correctly. The reasons for above failure are many. These reasons are termed as Barriers in communication. They could be grouped as follows: - 1. Personal Barriers. 1. Human emotions 2. Love 3. Fear 4. Anger 5. Distrust 6. Difference in Values between two people 7. Poor Listening – Hearing is with ears while listening is with mind (attentiveness is the keyword in listening) 8. Perceptions – Opinionated, etc 9. Inappropriate gestures and postures 10. Deficiency of knowledge of receiver (in technical matters) 2. Physical Barriers. 1. Interference
  20. 20. 20 2. Noise 3. Distance 4. Physical 5. Hierarchical 3. Semantic Barriers. (a) Multiple Meaning Words (b) Language 4. Cultural Barriers. People from different cultures will decode the same thing differently. Improving Communication.Communication can be greatly improved if some simple steps are observed diligently. 1. The sender should format and code his message keeping the attributes/environment of receiver in mind. Like critical messages should be avoided when the person is in high emotional state. Similarly, if a person is working in high noise area, it is better to send a small note rather than shout out the instructions. 2. Keep the message short and sweet. Long messages are often not read fully or read at high speed with little understanding. 3. Any message should have as few intermediaries as possible since there is loss of accuracy at each transmission and reception. 4. Only simple and familiar words and phrases should be used. 5. Avoid jargon, slang and colloquiums. Q 13. Explain Theory X and Theory Y Ans. McGregor, in his book “The Human side of Enterprise” states that people inside the organization can be managed in two ways. The first is basically negative, which falls under the category X and the other is basically positive, which falls under the category Y. After viewing the way in which the manager dealt with employees, McGregor concluded that a manager’s view of the nature of human beings is based on a certain grouping of assumptions and that he or she tends to mold his or her behavior towards subordinates according to these assumptions.
  21. 21. 21 Under the assumptions of theory X : • Employees inherently do not like work and whenever possible, will attempt to avoid it. • Because employees dislike work, they have to be forced, coerced or threatened with punishment to achieve goals. • Employees avoid responsibilities and do not work fill formal directions are issued. • Most workers place a greater importance on security over all other factors and display little ambition. In contrast under the assumptions of theory Y : • Physical and mental effort at work is as natural as rest or play. • People do exercise self-control and self-direction and if they are committed to those goals. • Average human beings are willing to take responsibility and exercise imagination, ingenuity and creativity in solving the problems of the organization. • That the way the things are organized, the average human being’s brainpower is only partly used. On analysis of the assumptions it can be detected that theory X assumes that lower-order needs dominate individuals and theory Y assumes that higher-order needs dominate individuals. An organization that is run on Theory X lines tends to be authoritarian in nature, the word “authoritarian” suggests such ideas as the “power to enforce obedience” and the “right to command.” In contrast Theory Y organizations can be described as “participative”, where the aims of the organization and of the individuals in it are integrated; individuals can achieve their own goals best by directing their efforts towards the success of the organization. However, this theory has been criticized widely for generalization of work and human behavior. Q 14. Explain Abraham Maslow Theory. Ans Abraham Maslow’s “Need Hierarchy Theory” :
  22. 22. 22 One of the most widely mentioned theories of motivation is the hierarchy of needs theory put forth by psychologist Abraham Maslow. Maslow saw human needs in the form of a hierarchy, ascending from the lowest to the highest, and he concluded that when one set of needs is satisfied, this kind of need ceases to be a motivator. As per his theory this needs are : (i) Physiological needs : These are important needs for sustaining the human life. Food, water, warmth, shelter, sleep, medicine and education are the basic physiological needs which fall in the primary list of need satisfaction. Maslow was of an opinion that until these needs were satisfied to a degree to maintain life, no other motivating factors can work. (ii) Security or Safety needs : These are the needs to be free of physical danger and of the fear of losing a job, property, food or shelter. It also includes protection against any emotional harm. (iii) Social needs : Since people are social beings, they need to belong and be accepted by others. People try to satisfy their need for affection, acceptance and friendship. (iv) Esteem needs : According to Maslow, once people begin to satisfy their need to belong, they tend to want to be held in esteem both by themselves and by others. This kind of need produces such satisfaction as power, prestige status and self-confidence. It includes both internal esteem factors like self-respect, autonomy and achievements and external esteem factors such as states, recognition and attention. (v) Need for self-actualization : Maslow regards this as the highest need in his hierarchy. It is the drive to become what one is capable of becoming, it includes growth, achieving one’s potential and self-fulfillment. It is to maximize one’s potential and to accomplish something.
  23. 23. 23 As each of these needs are substantially satisfied, the next need becomes dominant. From the standpoint of motivation, the theory would say that although no need is ever fully gratified, a substantially satisfied need no longer motivates. So if you want to motivate someone, you need to understand what level of the hierarchy that person is on and focus on satisfying those needs or needs above that level. Maslow’s need theory has received wide recognition, particularly among practicing managers. This can be attributed to the theory’s intuitive logic and ease of understanding. However, research does not validate these theory. Maslow provided no empirical evidence and other several studies that sought to validate the theory found no support for it. Q. 15 What is planning? What are the various types of plans prepared by an organisation? Answer: Plainly speaking, Planning is deciding in advance what to do, how to do, when to do, where to do, and who is to do it. Planning involves selection selecting missions and objectives and the actions to achieve them. It requires decision making, that is, choosing from among alternative future courses of action. Planning bridges the gap between where we are and where we want to go. Nature and Characteristics of Planning Planning is goal oriented. Plans are developed and executed to achieve goals.
  24. 24. 24 Future Oriented. Necessary forecasts are made about future and accordingly plans are based on them. Continuous Activity. Effective planning requires constant and continuous checking of events. Primacy of Planning. Planning is the primary and basic function of Management. Planning is an Intellectual Process.A great deal of imagination and intelligence is needed to prepare a sound plan. Pervasiveness of Planning. It exists at every level of management, however high or low. Planning Provides a Sense of Direction. Planning bridges gap between where we are and where we want to go. Integrated Process. Every plan needs to be integrated with other plans to achieve organisational goals. Flexibility. Plans should be flexible as plans are based on parameters which may be highly dynamic. Generates Efficiency. Planning generates efficiency due to optimum utilisation of resources. Steps in Planning. Being Aware of Opportunities. Awareness of opportunities in light of competition, our strengths and weakness is the real starting point for planning. Setting objectives or Goals. Objectives are set for the entire enterprise in all the key areas of operations, productions, marketing and finance. Considering planning premises. Assumptions or forecasts of future and known conditions that will affect operation of plans. Determining alternatives courses. Examine alternative courses of action.
  25. 25. 25 Evaluating alternative courses. Weighing the various alternatives in the light of presmises and goals.Select the course of action from alternatives. Formulate Derivative Plans. Derivative plans are required to support the basic plan., programmes. Budgets, schedules, etc are some of the examples Establishing Sequence of Activity. Sequence of activity is determined in such a manner as to put plan to action. Budgets can be prepared to give more meaning to plans for implementation. Types of Plans. Plans can be classified as: - 1. Purpose or Mission 2. Objective or goal 3. Strategies 4. Policies 5. Procedures 6. Rules 7. Programs 8. Budgets They can also be classified as per duration: - Short Term Plans - Plans for period of 01 day to one year – Operational Plans. Medium Term Plans – Plans for 1 – 2 years – Tactical Plans Long Term Plans – Plans from 2 – 5 years perspective – Strategic Plans Hierarchy of Plans Purpose Or Mission Objective or Goal Strategy Policies – Major/minor Procedures Rules Programme- Major/Minor/supporting Budget – Numerised Program
  26. 26. 26 Advantages 1. Planning Minimises Risks. This is because future risks are forecasted and necessary protective devices are positioned. 2. Planning Facilitates Coordination. The concerned departments work in close coordination in implementation of plans. 3. Facilitates Organising. Planning facilitates better organisation of resources. 4. Planning helps in offsetting uncertainty and change. Planning helps in devising suitable action against changes in technology, market forces, etc. 5. Planning also helps in exercising control if there are any deviations from planned targets. 6. Planning increases organisation’s effectiveness. 7. Planning helps in ensuring relatedness amongst decisions. 8. Planning helps company to remain more competitive in its industry. 9. Planning reduces immediacy. It reduces incidences of emergency situations. 10. It reduces mistakes and oversights. 11. Planning helps in identifying the bottlenecks/problem areas in time. 12. Planning increases effectiveness. Disadvantages. 1. Planning is a time consuming process. 2. It takes lot of paper work. 3. It is an expensive process with investments on data collection, hiring of experts, etc 4. It can generate frustration in the employees and planners if the targets are not achieved. It can also cause loss of initiative amongst them. 5. Faulty Planning can cause false sense of security and even complacency. 6. Over planning may delay actions. 7. Danger of human error or error in data collection is always present. Q 16 What is organizing? Ans
  27. 27. 27 Organizing can be viewed as the activities to collect and configure resources in order to implement plans in a highly effective and efficient fashion. Organizing is a broad set of activities, and often considered one of the major functions of management. Therefore, there are a wide variety of topics in organizing. The following are some of the major types of organizing required in a business organization Q 17. What are benefits of organizing Ans • The organizing process is important as a way to help the organization attain its mission. It has four primary functions: • It clarifies the work environment. Everyone understands what to do. The tasks and responsibilities of all individuals, departments, and major organizational divisions are clear. The types and limits of authority are determined. • It creates a coordinated environment. Confusion is minimized and obstacles to performance are removed because it defines the interrelationships of the various work units and establishes guidelines for interaction among personnel. • It achieves the principle of unit of direction. The principle of unity of direction calls for the establishment of one authority figure for each designated task of the organization; this person has the authority to coordinate all plans concerning that task. • It establishes the chain of command. The chain of command is the unbroken line of reporting relationships from the bottom to the top of the organization. It defines the formal decision-making and decision making communication. Who’s in charge here? Will thus not occur. • By applying these functions, management will achieve a functioning work environment. Q 18 What are the essentials of good control system. Ans • Essentials of Good Control System. All control systems and techniques should reflect the job they have to perform. There may be several techniques which may have general application. However, it should not be assumed that these mechanism should be applied in all situations. Manager have to choose appropriate tool for particular situation which will help him in controlling the actions as per plan.
  28. 28. 28 • Forward Looking. Control should be forward looking though many of the controls are instantaneous they should focus attention on how future actions can conform with plans. In short control mechanism should be such that they aid in planning process. • Promptness in Reporting Deviations. An ideal control system should report deviations promptly and inform manager concern to take timely action. This is done through designing appropriate information system. • Pointing Out Exceptions at Critical Points. Control System should be able to point out exceptions at critical points and should suggest whether action has to be taken for deviation or not. Some deviations will have great impact in organisation, while others others may have little impact. The control system should provide info for critical control point and control on exception. The critical control point stresses that effective control requires attention to those factors critical to apprising the performance against an individual plan. The control of the exception requires that a manager takes action when there is an exceptional deviation. The more the manager’s concentration on control by exception more efficient will be result on the control. • Objective. Control should be objective, definite and determinable in clear and positive way. The standard of measurement should be quantitative as far as possible. If they are not quantifiable they should be determinable and verifiable. If the performance standard is not measurable and determinable, many subjective elements enter the process and affect the control mechanism on the wrong footing. • Flexible. Control mechanism should be flexible so that it remains working even if there are changes in plan, unforeseen circumstances or outright failure. A good control system should report such changes and failures and must have an element of flexibility to maintain management of operations in spite of such failure/changes. • Economical. Control system should be economical and should be worth the cost. Economy is relative since the benefit will vary as per the importance of activity, the size of the operations, etc. • Simple. The control system should be simple and understandable so that all managers can use it effectively. The control techniques involving mathematical formula are detested by many managers who find it difficult to understand and implement in organisation. • Monitoring. Control system should monitor the planning system effectively. • Motivating. Control system should motivate both the controller and the controlled.
  29. 29. 29 • Reflecting Organisation Pattern. The control should reflect organisation pattern by focussing attention on positions in the organisation structure where deviations are corrected. Organisation structure can act as a vehicle not only for coordinating the activities in the organisation but also as a tool to maintain effective control. Q 19 What are steps in control Ans 1. Establishment of the control standard. Every function in the organisation begins with plans which are goals, objectives and targets to be achieved. In light of this, standards are established which are the criteria against which performance will be measured. For setting standards it is important to precisely and concisely identify the results, which are desired. Precision in the standards is important. In some areas standards may be more precise while in some other areas decision on precise standards may be difficult. Standards can be precisely defined or quantified in terms of volume of products, costs, revenue investments etc. The can also be expressed in qualitative terms if there is difficulty in quantifying the same. After setting the standards it is important to decide the level of achievement or performance which is to be regarded as good or satisfactory. There are important characteristics of a particular work which can be called as good performance. Important characteristics should be considered while determining level of performance, output, resources, expenditure, etc. The desirable level of performance should be reasonable and flexible. 2. Measurement of Performance. The second major step is measurement of performance. This step involves measuring performance in respect of work in terms of control standards. The measurement of performance against standards should be on future basis so that deviations can be detected in advance of the actual occurrence and avoided by appropriate means. Appraisal of actual or expected performance becomes an easy task if standards are properly determined and method of measuring performance can be expressed in physical and monitory terms such as production units, sales volume, profits, etc as these are easily and precisely measurable. The performance which is qualitative and intangible cannot be measured precisely. For this purpose some other techniques have to be used. It is not necessary that all measurements are rigidly quantitative. Accordingly to Peter Drucker, it is very much desirable to have a clear and common measurement in all key areas of business. In his opinion, ofr measuring tangible and intangibles performance, measurement must be
  30. 30. 30 a. Clear b. Simple and rational c. Relevant d. Reliable, self announcing and understandable. 3. Comparing actual and standard performance. The third major step of control process is comparing actual and standard performance. It involves two steps. a. Finding out extent of deviation. b. Identifying the causes of such deviation. c. When adequate standards are developed and actual performance is measured precisely and accurately, any variations will be clearly revealed. Management may have information regarding what performance data charts graphs and written reports besides observing to keep itself informed about the performance in different segments of ergonomics. Such performance is compared with the standards one to find out whether various segments and individuals are progressing in the right direction.When the standards are achieved no further managerial action is required and control process is complete. However, standards may not achieved in all cases and the extent of deviations may vary from case to case. Hence management has to naturally determine whether strict compliance with standards is required or whether variations are permissible and to what limit. When the deviation between the standards and actual performance is beyond the prescribed limit an analysis is made of the causes of such deviation. For control and planning purposes ascertain the causes of such deviation is important along with computations of variations because such analysis helps to take proper control action. The analysis will pin point the person responsible and he can take necessary corrective action. Measurement of performance analysis of standard deviation and their causes may be of no use unless they are communicated to person concerned so that corrective action can be take. This can take form of reports.
  31. 31. 31 4. Correction of Deviations. This is the last step in control process which r3equires that action should be taken to maintain the desired degree of control in the system or operation. An organisation is not a self regulating is not self regulating system like a thermometer which operates in a state of equilibrium put there by virtue of engineering design. In business organisation the type of automatic control can not be established because of so many factors involved in the total environment. In fact correction of standard deviation in management control process which may involve effect of various management functions. Q 20 Explain contribution of Chester Barnard. Ans He propounded 5 Theories – I. Organisations are in nature of co-operative systems. II. Formal Organisations. III. Informal Organisations. IV. Theory of Authority. V. Function of the Executive. (I) Organisations are in nature of co-operative systems. 3 Goals: - 1. Survival of the organisation. 2. Adjustment to External Environment 3. Analyse function of Executives at all levels. (a) Each individual is discrete individual (b) Individual interact with others in social relationship but that is voluntary involvement. Negative side is motives. Positive side is efficiency and effectiveness. Effectiveness- If organisational goal is achieved, it is Effectiveness. Efficiency – Efficiency is achievement of individual goals. (III) Informal Organisations 1. Communication
  32. 32. 32 2. Maintenance of cohesiveness 3. Maintenance of feelings of integrity and self respect. (IV) Theory of Authority 1. Authority should be accepted by people down the line. There are two aspect to the authority – (i) Subjective/Personal – Respecting the Chair (ii) Objective – Assess the person objectively and accept the authority. If the two aspects gel, it is good for the organisation. (V) Function of the Executive 1. Provide a system of communication. 2. Promote the securing of personal efforts. 3. To formulate and define purpose. Q 21 Explain Departmentation Ans Four Patterns The four types of activity patterns of departmentation are listed below. Category Organizing Pattern Examples Activity Functional In a personnel office: • Classification • Staffing • Employee Development Process In a social services office: • Claims process • Customer complaint process • Internal administration process Time (Shift) At a maintenance facility: • Day shift • Swing shift • Tuesday-Saturday shift Knowledge/discipline In a training organization, work assignments according to subject matter: • Acquisition/Contracting • Management • Statistics/Quantitative Methods
  33. 33. 33 Q. 22 Explain Functional departmentation Ans. The characteristics of the functional pattern are described below. Characteristic Description Division of labor Separate functions are assigned to separate organizational elements, such as: • finance • personnel • supply, or • manufacturing. Hierarchy Levels of structure are subdivided. For example: • directorate • division • branch • section, and • unit. Unity of command Clear command, control, and reporting relationships, which follow the hierarchy and division of labor. Specialization Each functional element specializes and achieves excellence in its own work. Career ladders Hierarchy provides potential progression from worker to supervisor to manager to executive. Communication Vertical communication is emphasized and lateral communication is discouraged. Official communication processes are formal. Assignment of responsibility Responsibility is fragmented by function, necessitating extensive coordination (processing delays) before actions or decisions are completed. ____________________________________________________________ Illustration The diagram below illustrates the functional pattern. Civilian Personnel Office Training Classification Employee Relations Staffing Personnel Officer Q 23 Explain process departmentation Ans. Characteristics The characteristics of the process pattern are described below.
  34. 34. 34 Characteristic Description Cross-functional Core processes cross-functional boundaries so that a complete product or service can be delivered. Hierarchy Process patterns emphasize lateral or horizontal communication and work flow. They reduce vertical hierarchy. Specialization Process patterns can utilize both specialized and multi-functional employees, depending upon how process steps are grouped into jobs (see job design principles in Chapter 6). Boundaries Process patterns have clear boundaries at the beginning and end of each process. Sub-processes are nested within major processes. Disadvantages The process pattern is so different from the functional pattern that it requires major investment of time, money, and manpower resources to restructure and transform the organization. Advantages The process pattern enables dramatic increases in cycle time, product quality, customer service, and cost efficiency. This is because the process pattern eliminates unnecessary steps and encourages horizontal communication. It is most effective when performance measures are clear. Illustration The diagram below illustrates the process pattern. Personnel Office Hiring Process Management Services Process Training Process Employee Services Process Personnel Officer Q 24 Explain time departmentation Ans Characteristics of a time or shift pattern are listed in the table below. Characteristic Description Division of labor Work shifts can be used in combination with other patterns of departmentation, such as the functional, knowledge, product, process, or customer patterns. Note: The division of labor and other characteristics will depend upon which secondary pattern of organizing is used.
  35. 35. 35 Hierarchy Levels of authority may be established. For example: • employee • work leader • shift supervisor • department supervisor Unity of command Clear command, control, and reporting relationships, which follow the hierarchy and division of labor. Specialization Each employee may specialize and achieve excellence in its own work for the assigned shift. Career ladders Hierarchy provides potential progression from employee to leader or supervisor. Communication Vertical communication is emphasized and lateral communication may be discouraged. Official communication processes are formal. Assignment of responsibility Responsibility is fragmented by shift, necessitating coordination (possible delays) if the product or service being delivered involves more than one shift. Disadvantag The time or shift pattern has the disadvantage of weak lateral communication across shifts. For example, if a customer has a requirement that extends from one shift into the next, how is inter-shift coordination accomplished? Other disadvantages depend upon the secondary patterns of organizing which may be used (e.g., functional, knowledge, customer, product). However, premium pay is usually required for night or weekend shifts, thereby increasing personnel costs. Advantages The time or shift pattern has the advantage of utilizing facilities more efficiently—two or more shifts can perform work with the same building, tools, or equipment. This can create certain economies of scale. The time or shift pattern is most effective when products or services must be developed or delivered immediately and direct customer communication is necessary. Illustration The diagram below illustrates the time/shift pattern. Shipping Division Mon-Fri Day Shift Mon-Fri Swing Shift Tues-Sat Day Shift Tues-Sat Swing Shift Division Chief Q 25 Explain knowledge departmentation Ans The knowledge pattern groups work assignments to employees or
  36. 36. 36 operating units according to the subject matter or skills involved. This pattern has characteristics similar to the functional pattern, as shown in the table below. Characteristic Description Division of labor Separate functions are assigned to separate employees or organizational elements, such as: • contract law • labor law • torts in a legal firm. Hierarchy Levels of structure are subdivided. For example: • college • department • course in a university. Unity of command Clear command, control, and reporting relationships, which follow the hierarchy and division of labor. Specialization Each functional element specializes and achieves excellence in its own work. Career ladders Hierarchy provides potential progression from professional to department chair/supervisor and possibly managing partner or executive. Communication Vertical communication is emphasized and lateral communication is discouraged. Official communication processes are formal. Assignment of responsibility Responsibility is fragmented by subject matter, necessitating extensive coordination (processing delays) before actions or decisions are completed. Disadvantag The knowledge pattern has the disadvantage of weak lateral communication among departments or professional employees. For example, if a customer has a multi-disciplinary requirement, which department or employee should respond? How can multiple disciplines coordinate for effective delivery of a product or service? A second disadvantage is potentially long cycle time because of the need for lateral communication mentioned above. Advantages The knowledge pattern has the advantage of helping the broader organization develop new products, services, skills, or other discoveries. It aids in the development of enhanced core competencies. The knowledge pattern is most effective when the products or services required by customers are not multidisciplinary—when a single subject matter expert can offer the appropriate solution.
  37. 37. 37 Illustration The diagram below illustrates the knowledge pattern. Post Legal Office Contracts Labor Ethics/Integrity FOIA Legal Officer Q 26 Explain Delegation and Decentralization Ans Basis Delegation Decentralization Meaning Managers delegate some of their function and authority to their subordinates. Right to take decisions is shared by top management and other level of management. Scope Scope of delegation is limited as superior delegates the powers to the subordinates on individual bases. Scope is wide as the decision making is shared by the subordinates also. Responsibility Responsibility remains of the managers and cannot be delegated Responsibility is also delegated to subordinates. Freedom of Work Freedom is not given to the subordinates as they have to work as per the instructions of their superiors. Freedom to work can be maintained by subordinates as they are free to take decision and to implement it. Nature It is a routine function It is an important decision of an enterprise. Need on purpose Delegation is important in all concerns whether big or small. No enterprises can work without delegation. Decentralization becomes more important in large concerns and it depends upon the decision made by the enterprise, it is not compulsory. Grant of The authority is granted by one It is a systematic act which takes place at all
  38. 38. 38 Authority individual to another. levels and at all functions in a concern. Grant of Responsibility Responsibility cannot be delegated Authority with responsibility is delegated to subordinates. Degree Degree of delegation varies from concern to concern and department to department. Decentralization is total by nature. It spreads throughout the organization i.e. at all levels and all functions Process Delegation is a process which explains superior subordinates relationship It is an outcome which explains relationship between top management and all other departments. Essentiality Delegation is essential of all kinds of concerns Decentralization is a decisions function by nature. Significance Delegation is essential for creating the organization Decentralization is an optional policy at the discretion of top management. Withdrawal Delegated authority can be taken back. It is considered as a general policy of top management and is applicable to all departments. Freedom of Action Very little freedom to the subordinates Considerable freedom Q 27 What is leadership and give good qualities of leadership Ans Definitions 1. Leadership is the ability of a person to influence a group of people to work with zeal and confidence towards the achievement of goals. 2. Leadership is the quality of behaviour of individual where by they guide people or their activities in an organised effort. 3. An act or process of influencing people to strive willingly and enthusiastically towards achievement of common goals.
  39. 39. 39 Qualities of a Good Leader 1. Good personality 2. Intelligent 3. Initiative 4. Innovative 5. Self confidence 6. Good Communication Skills 7. Coach and guide 8. Proper judgement 9. Knowledge of Human Skills 10. Administrative Skills 11. Discipline 12. Patience 13. Visionary 14. Willingness to lead from front 15. Strategist 16. Decision Making ability 17. Integrity 18. Conviction Q 28 Explain styles of leadership Ans Styles of Leadership Every manager develops a style in managing the activity. Such styles vary from leader to leader, situation to situation and organisation to organisation. Following are the popular styles of management: - 1. Authoritarian/Autocratic Style. This style demands absolute obedience and subservience from the subordinates. Important characteristics of this style of leadership are: - (a) Superior makes all the decisions. (b) Superior does not consult subordinates (c) Superior is responsible for the decisions taken Utility and Application. This style is useful only in short run and is counterproductive in the long run. However, it is the most suitable style for crisis and disaster management/emergency situations.
  40. 40. 40 2. Bureaucratic Style. In this style of leadership decisions are taken as per laid down set of rules without any deviation. (a) Decisions are taken within the set of laid down rules in the letter (followed as written) (b) Subordinates are not consulted (c) Avoids responsibility (d) All situations are dealt in a mechanical manner with little or no regard to emergency/priority/spirit or even the organisational goals. (i) Delay in work and unnecessary increase in paper work. Utility and Application. The decision making is very methodical and little bias. Has high accountability and therefore good for larger organisations. However, it delays decision making and looses sight of organisational goals in favour of application of the written rules. 3. Laissez Fair. Subordinates have full freedom of action and decision-making. (a) Superior allows his subordinates full freedom to act and decide with little or minimal interference. (b) Superior acts more as a guide in arriving at decisions. (c) Superior and subordinates share the responsibility/ Utility and Application. This particular style of leadership is ideal for intellectual/creativity intensive organisations like Advertising/Media/research/ software development etc. However, it is often disastrous for production and marketing organisations. 4. Paternalistic Style. In this style, as the name suggests, the leader acts as the father figure for the subordinates. (a) Creates family atmosphere. (b) Leader is treated as father figure by subordinates. Utility and Application. This style has very high success rate. However, owing to its highly time and effort intensive demands on the leader due to his personal
  41. 41. 41 involvement at the micro level in the personal affairs of the subordinates, this style is suitable for only small organisations. 5. Democratic Style. This style has two sub branches: - (a) Consultative Style. (i) Superior consults every subordinates before taking any decision. (ii) Superiors are open-minded and encourage constructive suggestions from subordinates. (iii) Superior takes the decision after consultations none of which are binding on him. (b) Participative Style. (i) Superior consults his subordinates and allows them to take part in the decision making process. It is mostly by majority decision. (ii) Both leader and the group shares the responsibility. (iii) Groups decision is generally final and overrides the personal preferences/choices of the leader. 2. Missionary Style. (a) Social Club (b) Believe in good fellowship/friendship. (c) Believe in warm and pleasant social atmosphere. 3. Neurocratic Style. (Hitler) (a) Highly task oriented style (b) Highly sensitive leadership 4. Situational Style. Style varies depending upon situation. This is the most suitable style for the military leaders, who may have to don different styles for peace time, war time, training and emergencies. Q29 .Explain the Importance of communication for manager Ans
  42. 42. 42 Communication may be one of the essential life skills, since it's clearly related to success with family, friends and success in the workplace. If you look at successful people, you'll almost always find they have the ability to communicate with others, either one-to-one or in groups, far more effectively than less successful people. What would an organization be like without communication? An educated guess would be that it would be a very lonely place. Not only could teams not coordinate their efforts and individuals seek feedback from and communicate their successes to their managers, but also customers would have a pretty tough time placing orders, products would have a pretty tough time being produced, and services would have a pretty tough time being delivered. If you couldn’t communicate with coworkers, team members, customers, suppliers, and others with whom you routinely do business, you really wouldn’t have an organization at all. In short, organizations are built on a foundation of communication; communication is the physical and mental network that ties everyone— both within and without the organization— together. It’s the oil that keeps the organization running smoothly. One of the important ingredients for effective and efficient controlling or directing is communication. But, while communication is simple when an organization has only one or two people in it, the complexity of communication grows in direct proportion to the size of the organization. In larger organizations, communication occurs less in face-to-face encounters than in increasingly impersonal was such as voice mail and e-mail messages. And, as organizations grow and its members are dispersed across town— or around the globe—communication becomes that much more difficult as distance and other obstacles impede clear and effective communication. Communication in management is always a pressing problem. Is it any surprise that communication in many organizations is a problem? The truth is that, although communication is critically important to the success of organizations—perhaps more so than ever before—it is often, at best, dysfunctional, and, at worst, terribly broken. As organized enterprises grow and move at a constantly increasing pace, it becomes more and more difficult simply to keep everybody in management informed of current developments. It is a matter of some importance to understand that every person in organized enterprise shares the responsibility for good communication. It is not only a top manager who may initiate while all others receive, nor is it only the subordinate who originates while superiors listen. It is a fact that everyone is both the originator and receiver of information,
  43. 43. 43 depending upon the authority relationships, functional relationships and cooperative relationships which exist in an enterprise. Q.30 Ilustrate Span of Control. Ans. Span of Control • Number of employees that a manager can efficiently and effectively manage • Determines the number of levels and managers in an organization • The wider the span, the more efficient the organization • Appropriate span influenced by: • The skills and abilities of employees • The complexity of tasks performed • Availability of standardized procedures • Sophistication of organization’s information system

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