The document discusses the importance of managerial skills at various levels within an organization, emphasizing the significance of technical, conceptual, and interpersonal skills. It outlines the Management by Objectives (MBO) process and prerequisites for its successful implementation, including goal definition and management support. Furthermore, it explores the sources of conflict within organizations and their impacts, highlighting both the potential benefits and detrimental effects of conflict on individuals and teams.

1. Demo Assignment Jan June 2017
MS-01
Course Code MS - 01
Course Title Management Functions and Behaviour
Assignment Code MS-01/TMA/SEM -I/2017
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1. Why are managers required to have / acquire different skills sets at various levels of their career?
Explain the concept and its significance with suitable examples from the organisation you have served in,
or you are familiar with.
One of the most influential business potential energy in you as an entrepreneur is your own skills. Simply, managerial skills are
the knowledge and ability of the individuals in --------------------------------------------------------------- or tasks. This knowledge and
ability can be learned and practiced. However, they also can be acquired through practical implementation of required activities
and tasks. Therefore, each skill can be developed through learning and practical experience of the individuals.
A manager is responsible for --------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------------------
-------------------------------managers having subordinates below to report to them. Therefore, we talk of levels of managers in an
organisation.
The First Level Managers: These managers are in direct contact with the employees, who usually produce the goods or service
outputs of an organisation. They are -----------------------------------------------------------------------------------------------------------------
--------------------------- service outputs. Hence, your may belong to the first level managers. In some government offices, the
superintendent of the office supervising the -----------------------------------------------------------------------------------------------------, it
is the foreman, who is in direct contact with the rank-and-file workers, producing goods or services.
The Middle Level Managers: These managers are those with a number of responsibilities and linking or connecting activities.
They direct the activities of the first level managers. For example, a --------------------------------------------------------------------------
--------------------------------------- to the district educational officer and block development officer respectively.
The Top Level Managers: The top -----------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------ of the political, social and competitive environments on the
organisation. A President or a Chief Executive or a District Magistrate are examples of top managerial level.
THE MANAGERIAL SKILLS AT VARIOUS LEVELS
The successful business manger needs skills and talent. ------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------- in developing and identifying the truly effective
managers. If this is the type of job that you are after, you should know that the following traits are necessary:
Robert Katz identifies three types of skills that are essential for a successful management process:
 Technical,
 Conceptual and
 Human or interpersonal management skills.
TECHNICAL SKILLS
As the name of these skills tells us, they give the -------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------- and services, market the products and services…
For example, let’s take an individual who works in the -----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------------------- manager.
This is the best solution because he has great technical skills related to the sales department.
On the other hand, the person who becomes sales manager will start to build his next type of required skills. It is because if his
task until now was only to work with the customers as sales representative, now he will need to work with employees in the sales
department as addition to the work with customers.

3. Technical skills are most important ------------------------------------------------------------------------------------------------------------------
----------------------------------------- a hierarchy from the bottom to higher levels, the technical skills lose their importance.
CONCEPTUAL SKILLS
Conceptual skills present knowledge or -----------------------------------------------------------------------------------------------------------
------------------------------------. In such a way they can predict the future of the business or department as a whole.
Why managers need these skills?
As a first, a company contain more -----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------. The conceptual skills will help managers to look
outside their department’s goals. So, they will make decisions that will satisfy overall business goals.
Conceptual skills are vital for top managers, less important for mid-level managers, and not required for first-level managers. As
we go from a bottom of the managerial hierarchy to the top, the importance of these skills will rise.
HUMAN OR --------------------------------------------------- SKILLS
Human or interpersonal managerial skills ----------------------------------------------------------------------------------------------------------
---------------------------------------------------------- people, there will not be a need for existence of management and managers.
These skills will enable managers to become ------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------. Simply, they are the most important skills for managers.
Interpersonal management skills are important for all hierarchical levels in the company.
ARE ----------------------------------------------- SKILLS
These are the basic skills required for a successful management as a process. Some authors also mention other skills related to
management skills. But, when I think about, they are simply part of these three types of primary skills.
Let’s take an example with ---------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------------------
------------------------------ will need are skills explained as technical, conceptual, and interpersonal managerial skills.
At the end, I want to note something about managerial skills and business potential energy. Better management skills in your
company will produce larger business potential energy. So, these 3 types of skills are in the category of business elements that can
increase your business potential energy.
You are a top level manager and ---------------------------------------------------------------------------------------------------------------------
------------------------------------- experience. You have worked in the organisation for, a sufficiently long period of time.
If you are a foreman, your chief function -----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------broad scale action. You start considering the
environmental forces, the resource flows, and the functional managerial skills such as planning, organising, leading, controlling
and decision-making.
If you happen to be capable and alert, --------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------dependence adds to the productivity of the
workers, provided. the superior is consistent and predictable in his behaviour.

4. For example, you may have. observed -------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------ sublimates the subordinates' interest to his
interest, sets his goals realistically and shows his subordinates how to. reach this goal.
Managers at all levels require some ----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------deals make it essential that he possesses the
human skill. You may like to appreciate the skill mix by management level.
Example 1
CASE STUDY
DEVELOPING LEADERSHIP AND MANAGERIAL SKILLS
The Challenge
A Vice President in Marketing had been a successful contributor at a Fortune 50 health care provider for five years. Human
Resources and her manager identified her as high-potential with future leadership capability who needed help with her executive
presence and some managerial competencies. ------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------, influence with impact, and present
herself as an executive. In addition, she struggled with hiring the right people for her team.
The Solution
The company hired Vision Quest Consulting to ----------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------Vice President developed an action-
planning coaching grid to guide the coaching and address each goal specifically. Over the course of 18 months, the Vice President
worked with her coach twice a month and used the grid to populate her action steps and accomplishments.
Results
The Vice President’s manager ------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------- sense of intensity and skill around managing her team and critical relationships.
The Vice President herself reported that she -------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------ profile, top-level project in the company and feels excited about the new challenge.
Through her newly developed influencing ---------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------- in senior-level discussions. The results from a company-wide
engagement survey show an increase in her scores, and she has recently made her first successful team hire.
Example 2-
Case Study – Performance management skills
Situation

5. A large and fast growing electricity distributor -------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------for improvement. A new performance management system had also been introduced
the previous year. Although the new system implementation had been supported with information sessions there had been poor
take up of the system.
Challenges
The project presented a range of challenges including:
 Large numbers of --------------------------------------------- in HR systems and skills
 Conflict -------------------------------------------------------------
 Low commitment --------------------------------------------------------------- system
Solution
A training program for 400 managers -----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------confidence about giving feedback, particularly if it were of a negative nature. To this end a
highly interactive workshop was designed to engage participants.
Outcome
Both the training programs and the introduction of the 360-degree feedback system were evaluated very highly by all participants.
HR personnel believed that was a growing commitment to the performance management system rather than just compliance.
2. State and explain the steps involved in MBO process. Also explain the pre-requisite for successful
implementation of MBO quoting examples from the organisation you have worked in or you are aware of.
MBO or management by objectives is defined as ----------------------------------------------------------------------- key managerial
activities in a systematic process and -------------------------------------------------------------------------------- effective and efficient -
----------------------------------------------------------- objectives.
The practical importance of ---------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------- by objectives works in practice.
The six -------------------------------------------------------------------------- below graphically;
1. Define Organizational Goals
Goals are critical issues to organizational effectiveness, and they serve a number of purposes. Organizations can also have
several different kinds of goals-------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------. The goals set by the superiors are preliminary, based on an
analysis and judgment as to what can and what should be accomplished by the organization within a certain period.
2. Define Employees Objectives
After making sure that ---------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------ in setting their objectives.

6. The manager asks what --------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------- seem feasible for the company or department.
Also, Read Four Common Ingredients that makes up an MBO Program.
3. Continuous --------------------------------------- and Progress
MBO process is not only --------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- and progress of employees.
For monitoring ----------------------------------------------------------------------------- are required;
1. Identifying ------------------------------------------------------------------------ objectives,
2. Using ---------------------------------------------------,
3. Applying --------------------------------------------------------------- and plans,
4. Preparing ------------------------------------------------------------ and plans,
5. Installing ----------------------------------------------------, and
6. Designing sound --------------------------------------------------------------------------------------------- at the appropriate level.
4. Performance --------------------------------------------
Under this MBO ---------------------------------------------------------------------------------------------- concerned managers.
5. -------------------------- Feedback
The filial ingredients in an ---------------------------------------------------------------- to monitor and correct their own actions.
This continuous feedback is supplemented by periodic formal appraisal meetings which superiors and subordinates can review
progress toward goals, which lead to further feedback.
6. Performance ----------------------------------
-------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------. It is done at the last stage of MBO process.
Following are the prerequisites for installing MBO programme:
1. Defining Purpose:
The first thing for implementing MBO -------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------efficiency. In the absence of a definite purpose
MBO will not be a useful exercise.
2. Support from ------------------------------------:
In order to succeed MBO programme --------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------standards then the causes of deviations are ascertained
and corrective actions are taken. Top management will have to show a constant interest in MBO programme otherwise it is likely
to fail.
3. Training for MBO Programme:
The success of any programme depends upon the ---------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------. There is a need for structural change,
behaviour change and attitude change for making the programme effective and successful.
4. Participation:
In order to secure commitment of ------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------

7. ----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------vary according to the area of activity and the level of
hierarchy. The type and extent of participation will vary from organisation to organisation.
5. Feedback:
In MBO system every individual decides and -------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------his good and bad points and making suggestions
for future improvements.
Example-
Glaxo India Ltd. Is a large pharmaceutical ----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------the corporate, divisional, and departmental levels.
Initially there were 48 work groups which were later reduced to 37. The objective setting process consisted of the following steps:
(1). the ----------------------------------------------------------- expected results.
(2). the divisions -------------------------------------------------------------------------- resources;
(3). Corporate -------------------------------------------------------------------- established;
(4). Divisional --------------------------------------------------------------------- finalized;
(5). Company’s ---------------------------------------------------------;
(6). ---------------------------------------------------------------------------------------; and
(7). Result ---------------------------------------------------------------- are renewed.
The corporate and divisional objectives in Glaxo are ---------------------------------------------------------------------------------------------
---------------------------------------------------- systems at different levels and on team building and participate action planning.
Some of the prerequisites for installing of MBO programme in Glaxo:
1. Purpose ----------------------------------------------- defined.
2. Top management ------------------------------------------------------------------------ is essential.
3. Systematic ---------------------------------------------------------------------------------------------------- philosophy underlying MBO.
4. Success with ------------------------------------------------------------------------------------------------------ in this type of system.
5. --------------------------------------------------------------------------------------------- improvement in situations.
6. It must be -------------------------------------------------------------------------- organization.
The company changed its structure from functional to ----------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------. There was resistance among senior
managers to the change in management styles. However, the managing director’s personal commitment was of a very high quality
and, of the contributions was made which indicated improvements in the following areas:
1. The quality of ----------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------- discussion from which corporate and divisional plans are evolved;
2. The logic, -------------------------------------------------------------------------------------- these plans; and
3. The ------------------------------------------------------------------------------------ stretch.
The business results of the company also improved after the implementation of MBO. This was attributed to MBO and
reorganization of structure. This, in turn, also reinforced the positive attitude towards MBO.

8. 3. Briefly explain the sources of conflict and the impact it has on individuals, groups, and organisations.
Cite examples from your organisational experience or the experience you are aware of.
Solution: Conflict is a condition in ------------------------------------------------------------------------------------------------------------------
----------------------------------------------------- an individual is expected to do more than he or she feels capable of doing.
In any organization, there are many causes of conflicts; however conflicts within an individual usually arise when a person is
uncertain about what task is expected to do, if not clearly defined by the supervisor or the person in charge.
Furthermore, if the tasks of -------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------. Conflicts would arise
between individuals and groups if the goals are not specified for individuals within a group.
Additionally, the following are other sources of conflicts within an organization namely: sharing of resources especially
manpower, money materials, equipment and space required ----------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------personalities, which are
psychological, might affect the employees not to get along with each other and this difficulty might lead to conflicts, which result
from formal interactions with other employees.
Conflict in a workplace setting can be a normal part of doing business. In some cases, conflict that is managed properly can be
beneficial, as when it fosters an environment of healthy competition. However, conflict may also have a detrimental effect. As a
manager or business owner, you need to be aware of potential sources of conflict within your work environment.
Change
Implementation of new --------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------- can become overly stressed, which increases the likelihood of conflict in the workplace.
Interpersonal -------------------------------------------
When different personalities --------------------------------------------------------------------------------------------------------------------------
------------------- Office gossip and rumours can also serve as a catalyst for deterioration of co-worker relationships.
----------------------------- vs. Employee
Just as co-worker personalities -----------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------- the working relationship more difficult.
External -----------------------------
When the economy slides into ------------------------------------------------------------------------------------------------------------------------
-------------------------------- lead to conflict between employees and even between upper levels of management.
Poor ---------------------------------------
Companies or supervisors that don't communicate effectively can create conflict. For example, a supervisor who gives unclear
instructions to employees can cause confusion as to who is supposed to do what, which can lead to conflict.
----------------------------- Performance
When a worker in a department is not ------------------------------------------------------------------------------ even escalating into a
confrontational situation. A supervisor who fails to acknowledge or address the situation can add fuel to the fire.
Harassment
Harassment in the workplace can take many forms, such as sexual or racial harassment or even the hazing of a new employee.
Companies that don't have strong harassment policies in place are in effect encouraging the behavior, which can result in conflict.
Limited Resources
Companies that are -------------------------------------------------------------------------------------------------------------------------------------
-------------------------------- are competing against each other for resources, which can create friction in the workplace.

9. Organizational conflict arises when the goals, ------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------stages of a Conflict covering the birth, rise and
ending of it. The conflict process can be seen as comprising five stages. These stages are described below;
Stage 1: Potential ------------------------------------------- The first step in the conflict process is the presence on conditions that
create opportunities ------------------------------------------------------------------------ organizational conflict to rise.
Stage 2: Cognition -------------------------------- Conflict must be perceived by the parties to it whether or not conflict exists is a
perception issue. If no one is aware of a ------------------------------------------------------------------------------------------------------------
----------------------------------- conflict is perceives does not mean that is personalized.
For e.g. ” A may be aware that B and A are in ----------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------------------------
---- process where the parties decide what the conflict is about and emotions plays a major role in shaping perception.
Stage 3: Intentions- Intentions are decisions ------------------------------------------ and emotions and their overt behavior.
Using two dimensions cooperativeness (the degree -----------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------- five conflict handling intentions can be identified.
Stage 4: Behavior- This is a stage ------------------------------------------------------------------------------- -----------------------------------
---------------------------------------------behaviors are usually overt attempt to implement each party’s intentions.
Stage 5: Outcomes- The action ----------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------, or dysfunctional in that it hinders group performance.
Conflict is constructive when it improves the ------------------------------------------------------------------------------------------------------
---------------- can be aired and tensions released and fosters an environment of self-evaluation and change.
Conflict is dysfunctional when uncontrolled -------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------- consequences are a retarding of communication, reductions in
group cohesiveness and subordination of group goals to the primacy of infighting between members.
Impact of conflict on organizational functioning
Conflict situations should be either ------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------- or he manages and regulates the conflict situation.
Positive effects of conflicts
Some of the positive effects of conflict situations are:
- Diffusion of more serious conflicts. Games can be ---------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------

10. -------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------are usually
minor and not acute as the closeness of member’s moderate’s belligerent and assertive behavior into minor
disagreements, which minimizes the likelihood of major fights.
- Stimulation ------------------------------- or resolutions. When two parties who respect each other face a conflict situation,
the conflict resolution process may help ----------------------------------------------------------- acceptable solutions.
- Increase -------------------------------- performance. When two or more parties are in conflict, the performance and
cohesion of each party is likely to ---------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------, leading to increased group effort and cohesion.
- Assessment of power or ability. In a ---------------------------------------------------------- can be identified and measured.
Negative ------------------------- conflicts
Destructive effects of conflicts include:
- impediments ---------------------- working,
- diminishing ---------------------------------------,
- obstructions ---------------------------------------------- process, and
- Formation ------------------------------------------------------------ organization.
The overall result of such negative effects is to reduce employees' commitment to organizational goals and organizational
efficiency.
It was revealed that the main sources of ------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------ the incidence of disruptive conflicts while conflict
management strategies have positive impacts on workers’ productivity.
From the discussions on different views on conflict, what inference do you draw? Inference could be that conflict can have both
positive and negative impact on individuals, groups and organizations. For example, as a result of intergroup conflict, certain
changes occur ----------------------------------------------------------------------------------------------------- have negative effects. Let us
explore this issue with Edgar Schein (1980) who has compiled a list of changes on the basis of research findings.
As a result of intergroup conflict some changes that may occur within the groups involved are:
1. Group cohesiveness -------------------------------------------------------------------------------------- show greater loyalty.
2. The group -------------------oriented. ---------------------------------------------------------------------- with the external threat.
3. -------------------------- more directive. ---------------------------------------------------------------------------- authoritarian.
4. Organizational structures becomes more rigid. -------------------------------------------------------------------------------------
------------------------------------------------------------------------------------ members become more clearly defined.
5. Group unity is stressed. The ------------------------------------------------------------------------------- from its members.
Prolonged group conflicts cause the following changes in relationship between groups:
1. Groups become antagonistic toward each other. -----------------------------------------------------------------------------------
--------------------------------------------------------------------------------------- goal-oriented behaviour.
2. Perceptions are distorted. Each group develops positive perceptions about its own group and negative perceptions
toward the other.
3. ---------------------------------eases to exist. When in -------------------------------------------------------------------- of the other.
If they are forced to interact, they tend to show hostility and aggression towards each other.
4. Groups -------------------------- standard. Each group --------------------------------------------------------------------------------
----------------------------------------------------------------------- blind to the same acts performed by their own group.
Example-1 : Conflict in Banking sector.
In order for bank -----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------

11. ----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------understanding and correct interpretation of all information and instructions.
In order to minimize the failure to recognise --------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------in the bank, since employees may have different
knowledge, training, and past experiences.
Example 2- The organization I am referring here is IBM.
About IBM- IBM is an -------------------------------------------------- and services company.
Impact of Conflict on IBM performance
The head of this organization was John Akers. During ----------------------------------------------------------------------------
---------------------------------------------------------------------------------------overshadowed what should have been their
directive: THE CUSTOMER.
IBM also faced serious problems in developing ---------------------------------------------------------------------. This internal debate
became so political that projects never seemed to be complete
These internal conflict --------------------------------------------------------------------------------------- dissatisfaction, and respect of
individual, eventually blinded them to change in the industry.
All the above reasons accounted ---------------------------------------------------------- advantage in market.
Management in IBM resolves ------------------------------------------------------------------------------------------------------------------------
--------------------------------------- performance. The outcome of resolving conflicts in organization shown as:
4. What is control? What are the pre-requisite and characteristics of effective control system? Explain
with the help of examples you have had in an organizational set up. Briefly describe the organisation you
are referring to.
Control, or controlling, is one of the --------------------------------------------------------------------------------------------
----------------------------------------------------------------------so that deviation from standards are minimized and stated
goals of the organization are achieved in a desired manner.
According to modern concepts, control is a --------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------, measuring actual performance and taking corrective action.

12. Management control can be defined as a -----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------corporate resources are being used in the most effective
and efficient way possible in achieving corporate objectives.
Controlling has got two basic purposes
1. It --------------------------------ordination
2. It -------------------------------- planning
Features ------------------------------------------ Function
Following --------------------------------------------------------- of management-
1. Controlling ----------------- A function which ----------------------------------------------------------------- with plans.
2. Controlling -------------- function- which means it is ----------------------------------------------------- of concerns.
3. Controlling is forward looking- because -----------------------------------------------------------------------------------------------
--------------------------------. Controlling always look to future so that follow-up can be made whenever required.
4. Controlling is a dynamic process- since ---------------------------------------------------- to be made wherever possible.
5. Controlling is related with planning- Planning ---------------------------------------------------------------------------------------
-------------------------------, planning is useless. Planning presupposes ontrolling and controlling succeeds planning.
12 important pre-requisite of an effective control system in management are:
(1) -------------------------------------:
A system of control can work more effectively when it is based on the main objectives or goals of the organisation. It should be
related to the persons. It becomes ----------------------------------------------------------------------------------------- not be too high or too
low. These should be told to the workers in time so that the standards can be judged with the actual performance.
(2) ------------------------------------:
A business organisation should adopt such a system of control which suits its requirement.-There is no hard and fast rule and
readymade system of control which give -------------------------------------------------------------------- and in all circumstances.
Suitability of a system of --------------------------------------------------------------------------------------------------- it favourable, it is
necessary to know the nature of the business, needs of the workers a circumstances prevailing inside the organisation.
(3) Forward -----------------------------:
The system of control should be forward -----------------------------------------------------------------------------------------------------------
---------------------- corrective action before the task is completed. This will avoid or minimise the deviation in future.
(4) Feedback:
The success of a business -----------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------- post information collected through investigation.
The control system should be such that it is based on past information and. which would also adjust if necessary to future actions.
(5) Quick action:
Management gets the information -------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- to avoid future wastage. Actually speaking, the success of
control depends entirely on quick action and its implementation.
(6) Directness:
In order to make the system of control more -------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------- supervisors is less in the organisation then workers would work
effectively and objectives may be achieved in time because they will not take much time in getting the correct information.
(7) Flexibility:
The system of control should be such ---------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------ be adjusted to suit the changed circumstances.

13. (8) Economy:
The system of control must be -----------------------------------------------------------------------------------------------------------------------
--------------------------. A system of control to be adopted by the organisation should be cheaper in terms of expenses.
(9) Regular ---------------------------:
The system of control should be ---------------------------------------------------------------------------------------------------------------------
------------------------------------ be revised regularly and kept to meet the objectives of the organisation.
(10) ----------------------------- Participation:
All members in the organisation should ------------------------------------------------------------------------------------------------------------
----------------------------------------------------- discussions and exchange views while selecting the system of control.
(11) Suggestive:
The control system should also be suggestive. -----------------------------------------------------------------------------------------------------
------------------------------- also tell the accurate and correct alternative.
(12) Competent --------------------------- staff:
Controlling A system of ------------------------------------------------------------------ people to work in the organisation.
9 Characteristics of an --------------------------- Systems –
Controls at every --------------------------------------------------------------------------- controls at each of these three stages.
Effective control systems tend to have certain common characteristics. The importance of these characteristics varies with the
situation, but in general effective control systems have following characteristics.
1. -------------------------------:
Effective controls generate accurate data and information. Accurate information is essential for effective managerial decisions.
Inaccurate controls would divert ---------------------------------------------------------------------------------------------------------------------
------------------------- priority and would fail to alert managers to serious problems that do require attention.
2. -------------------------:
There are many problems that require immediate attention. If information about such problems does not reach management in a
timely manner, then such ------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------- they need it so that a meaningful response can follow.
3. ------------------------:
The business and economic environment -----------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------- the need for flexibility in planning as well as in control.
Strategic planning must allow for --------------------------------------------------------------------------------------------------------------------
---------------------------- necessary. An effective control system is one that can be updated quickly as the need arises.
4. Acceptability:
Controls should be such that all people -------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------and appropriate and will not have any negative effects on
their efforts to achieve their personal as well as organizational goals.
5. Integration:
When the controls are --------------------------------------------------------------------------------------- policies and hence are easier to
enforce. These controls become an integrated part of the organizational environment and thus become effective.
6. Economic -------------------------:
The cost of a control system must be balanced against its benefits. The system must be economically feasible and reasonable to
operate. For example, a high -------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------- the benefits received must outweigh the cost of implementing a control system.

14. 7. Strategic --------------------:
Effective controls should be placed and emphasized at such critical and strategic control points where failures cannot be tolerated
and where time and money costs of failures are greatest.
The objective is to apply controls to the ------------------------------------------------------------------------------------------------------------
--------------------------- will do the greatest harm. These control areas include production, sales, finance and customer service.
8. Corrective ----------------------:
An effective control system not only checks for and identifies deviation but also is programmed to suggest solutions to correct
such a deviation. For example, a computer keeping ----------------------------------------------------------------------” guidelines. For
example, if inventory of a particular ------------------------------------------------- will signal for replenishment for such items.
9. Emphasis ----------------------:
A good system of control should work on the exception principle, so that only important deviations are brought to the attention of
management, In other words, -------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------. This would eliminate unnecessary and
uneconomic supervision, marginally beneficial reporting and a waste of managerial time.
Example-
The company I am referring here is Tata Motors Ltd. Tata Motors Limited, a USD 42 billion organisation, is a leading global
automobile manufacturer of cars, utility vehicles, buses, trucks and defence vehicles.
Tata Motors has auto -------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------with Hitachi (Tata Hitachi Construction Machinery), and a joint venture with Fiat
Chrysler which manufactures automotive components and Fiat Chrysler and Tata branded vehicles.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an adequate system of -------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------with global best practices.
Some --------------------------------------------------------- systems are:
 The Audit Committee of the Board of -------------------------------------------------------------------------------------
------------------------------------------------- for changes in accounting policies and practices, if any;
 Documentation of major business processes ------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
--- towards Sarbanes-Oxley Act, as required by the listing requirements at New York Stock Exchange;
 An ongoing programme, for the --------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------ reporting, ethical
conduct, regulatory compliance, conflicts of interest's review and reporting of concerns
 State-of-the-art Enterprise Resource ---------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------- a comprehensive
information security policy and undertakes continuous upgrades to its IT systems;
 Detailed business plans for each segment, --------------------------------------------------------------------------------
------------------------------------------ established practices for all operating and service functions;
 A well-established, independent, multi-disciplinary Internal Audit team operates in line with governance best
practices. It reviews and reports to management and the Audit Committee about compliance with internal

15. controls and the efficiency and ---------------------------------------------------------------------------------------------
------------------------------------------------------------------------- approved by the Audit Committee; and Anti-
fraud programmes including whistle blower mechanisms are operative across the Company.
The Board takes responsibility for the overall --------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------risks are presented to the senior
management. The Audit Committee reviews business risk areas covering operational, financial, strategic and
regulatory risks.
During Fiscal 2016, the Company ---------------------------------------------------------------------------------------------------
--------------------------------- Internal Control over Financial Reporting as at March 31, 2016 is effective.
Example- (Planning & Operations control at Air France}
‘In many ways a major airline can be viewed as one large planning problem which is usually approached as many independent,
smaller (but still difficult) planning problems. -----------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------, equipment purchases. Each planning problem has
its own considerations, its own complexities, its own set of time horizons, its own objectives, but all are interrelated.’
Air France has eighty flight planners working ------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------of data necessary to plan the flights, but in the end
many decisions still rely on human judgement. Even the most sophisticated expert systems only serve as support for the flight
planners. Planning Air France’s schedule is a massive job. Just some of the considerations which need to be taken into account
include the following.
● -------------------------- – for each --------------------------------------------------------------------- the airline provide?
● ------------------------ assignment – which ----------------------------------------------------------------------- leg of a flight?
● Banks – at any airline hub where passengers ----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------, pause to let passengers change
planes, and all depart close together. So, how many banks should there be and when should they occur?
● -------------------- times – a block time is the elapsed time between a ------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------ a plane will be to keep to schedule even if it
suffers minor delays. However, longer block times also mean fewer flights can be scheduled.
● ------------------------------------ – any schedule must allow time ----------------------------------------------------------- base.
● Crew ---------------- – pilot and cabin crew ------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------- and to keep within maximum ‘on duty’ times for all staff.
● ------------------------- plotting – if many planes are on -----------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------- them simultaneously.
● Recovery – many things can cause -------------------------------------------------------------------- in to allow for recovery.
For flights within and between Air France’s 12 geographic zones, the planners construct a flight plan that will form the basis of
the actual flight only a few hours later. All planning documents need to be ready for the flight crew who arrive two hours before
the scheduled departure time. Being responsible for passenger safety and comfort, the captain always has the fi nal say and, when
satisfied, co-signs the flight plan together with the planning officer.

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