SRI VIDYA COLLEGE OF ENGINEERING & TECHNOLOGY

DEPARTMENT OF ELECTRONICS & COMMUNICATION ENGINEERING

MG6851 - PRINCIPLES OF MANAGEMENT
UNIT - III : ORGANISING
PART – A (2 Marks)
1. Define – Organizing
Organizing is the process of identifying and grouping of activities required to attain the objectives, delegating
authority, creating responsibility and establishing relationships for the people to work effectively.

2. Mention any four characteristics of an organization.

 Common objectives 
 Specialization or Division of labour 
 Authority of structure 
 Group of persons 

3. State the advantages of organization.
 Facilitate administration 
 Increases the efficiency of management 
 Facilitates growth and diversification 
 Ensures optimum use of man and material resources 

4. List out the steps involved in organization process.

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 Determination of activities 
 Grouping of activities  O
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S.
 Assignment of Duties 
U

 Delegation of authority 
C


FO

5. Mention the three categories of span of management.

 Direct single relationship 
TS

 Direct group relationships 

EN

 Cross relation 

D

6. What are the types of departmentation?

U

 Departmentation by numbers   Departmentation by customers 

ST

 Departmentation by time   Departmentation by Equipment or process 

 Departmentation by Enterprise function   Departmentation by Product or service 
Departmentation by Territory or Geography

7. Give a note departmentation by customers.

This type of departmentation is preferred when the needs of customers are different in nature. Some big
organization is providing special services to different of customer.

8. Define – Authority
Authority is the right to give orders and the power to exact obedience.

9. List out the sources of authority.

 Formal authority theory 
 Acceptance authority theory 
 Competence theory 

10. What is line authority?
Line authority is the direct authority which a superior exercises over a number of subordinates to carry out orders
and instructions. In organization process, authority is delegated to the individuals to perform the activities.

11. What is staff authority?

The relationship between a staff manager and the line manager with whom he works depends in part on the
staff duties.
12. List the steps involved in process of delegation.
 Determination of result expected 
 Assignment of duties 
 Delegation of authority 
 Creation of obligation or accountability 

13. What are the steps to be followed in making staff works effective?
 Understanding authority relationship 
 Making line listen to staff 
 Keeping staff informed 
 Requiring completed staff work 
 Making staff work a way of organizational life 

14. State the kinds of organizational charts.
 Vertical chart 
 Horizontal chart or left to right chart 
 Circular chart or concentric chart 

15. Define – Staffing

Staffing is the part of the management process which is concerned with the procurement utilization,
maintenance and development of a large satisfied work force on the organization.

M
16. Write any two roles of staffing.

O
 Effective utilization of skills and potential of the work force 
C
 Development and maintenance of quality of work life 
S.

U

17. What is job analysis?

C

Job analysis is a detailed study of a job to identify the skills, experience and aptitude required for the job.
FO

18. What is job design?

TS

The job design is usually broad enough to accommodate people’s need and desires.
EN

19. What is job rotation?

D

Job rotation refers in the movement of an employee from the job to another .
U
ST

20. Define – Recruitment.

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

21. What is selection?

Selection is the process of finding out the most suitable candidate to the job out of the candidates attracted.

22. Write down the tests used in selection process.

1. Aptitude test 2. Intelligence test 
3. Psychomotor test 4. Personality test 

4. What is orientation?
Orientation refers to the activities involved in introducing the new employees to the organization and its
policies, procedures, rules, and regulations.

5. What is performance appraisal?

Performance appraisal evaluates the performance of worker also his potential for development.

6. What are roles of manager?

 Inter-personal role 
 Information role 
 Decisional role 
 UNIT - III : ORGANISING
PART – B (16Marks)RTHIPLM

1) Explain the nature and purpose of organization. (8)

Definition of Organization
Koontz and O'Donnell define organizing as "the grOllIJ1ng of activities
necessary to attain objectives, the assignment of each grouping to a manner with authority
necessary to supervise it, and the provision for co-ordination horizontally in the enterprise
structure".
Nature of organization:
Common objectives
Specialization or division of labour
Authority of structure
Group of persons
Co-ordination
CommunicationW.VIDYARTHIPLUS.COM
Environment
Rules and regulations,

M
Purpose of organization:

O
Facilitate administration

C
Increases the efficiency of management
Facilitates growth and diversification S.
U
Ensures optimum use of man and material resources.
C

Facilitates co-ordination and communication

FO

Permits optimum use of technological innovations

Simulates creativity and initiative
TS

Facilitates development of managerial ability.

EN

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D

2. Explain the qualitative forecasting. (8)

U

Forecasting
ST

Process of predicting future conditions that will influence and guide the
activities, behavior and performance of the Organization.

Def- "Fore casting is the formal process of predicting future events that will
significantly affect the functioning of the enterprises.
Forecasting Techniques

Qualitative (use of Statistical tools) and Quantitative (employ human

judgments to predict future).
Qualitative forecasting methods:
1. Jury of executive opinion,
2. Del phi method,
3. Consumer market survey,
4. Sales force opinion composite,.VIDYARTHIPLS.COM
5. Scenario building,
6. Judgment decomposition.
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3. Explain the importance of performance appraisal on Human Resource Management. (8)

Before on appraisal system the objectives should be communicated to all employees.
The objectives may be promotion, pay increase, training and development.
The raters should be carefully selected and trained. They must be familiar with the job
and the person to be rated.
Cordial relationship is essential between superiors and subordinates. The rating should
be discussed with the person concerned. This will help him to know his strengths and
weaknesses and what steps he should take to improve performance.
Employees often feel feedback becomes threatening. The manager should realize that
performance appraisal is not just a fault-finding system but it is meant for improving
performance.

M
Follow up is important for effective appraisal.

O
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S.
4. Discuss the merits and demerits of a line and staff organization. (8)
U
C

Line Authority Staff Authority

FO

Right to decide and command Right to provide advice

TS

Contributes directly to the accomplishment of Assist line in the effective Accomplishment

Organizational objectives of Organization objectives
EN

Relatively unlimited and general Relatively restricted to a particular function

D

Flow downward from a superior to subordinate May flow in any direction depending upon
U

Creates superior and subordinate relation Exercise the need of Extension of line and support line
ST

control Investigates and reports

Makes operating decision Provides idea for decision
Bears final responsibility results Does not bear final responsibility
Doing function Thinking function
Provides channel communication No channel of communication is created

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5. List the functions of staffing in HRM. (8)
Discuss in detail the steps involved in a selection of human resources. (8)
Functions of staffing:
“Staffing is a function of all managers or it is to be performed by specialized
department known as personnel department.
“Personnel department which is being changed to human resources department.
“Staffing can be equated with HR management as both have the same objectives.

The steps involved in a selection of human resources:

1. Recruitment:
 Recruitment is defined as" a process to discover the source of man power to meet
the requirements of the staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient work force".
Source of Recruitment:
The sources of recruitment may be classified in to
(1) Internal sourcesDYARTHIPLUS.COM
(2) External sources.
Internal sources:
Present permanent employees.
Present temporary/casual employees.
Retired employees.
Depends of deceased, disabled, retired and present employees.

Merits of internal sources:

Internal recruitment can be used as a technique of motivation.
Trade unions can be satisfied.
Employees become loyal to the enterprise.
External sources:
It includes Educational and Training Institutes.

M
Private Employment Agencies

O
Public Employment Exchange

C
Casual applications.
Merits of External sources: S.
U
The suitable candidates with knowledge, talent, skill etc. are generally available.
C

Latest knowledge, skills and creative talent can be brought into the organization on.
FO

2. Selection:
The selection procedure is the system of functions and devices adopted in a given
TS

company to ascertain whether the candidate's specifications are matched with the job
EN

specifications and requirements.

Selection process:
D

Screening of applications,
U

Selection tests,
ST

Preliminary interview,
Reference check,
Medical Examination,
Final interview,
Approved by appropriate authority,
Placement.
Interview:
Interview is the most widely used technique of employee selection.
Employment interviews can be divided into three categories.
Types of interview:
Preliminary interview,
Core interview,
Decision making interview.
Preliminary interview:
Informal interview,
Unstructured interview
 Core interview:
Background informal interview,
Formal and structured interview
Stress interview,
Group interview,IDYARTHIPLUS.COM
Panel interview,
Depth interview.
Decision making interview:
In this interview interviewer examines the interest of the candidate in the job, carrier
planning, promotional opportunities, work adjustment etc. the personnel manager
interviews the candidates acceptance regarding salary, allowances, benefits, promotions
etc.
Tests:
1. Aptitude test,
2. Intelligence test,
3. Psychomotor test
4. Personality test.
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M
O
6. Bring out the factors affecting centralization! Decentralization.Also highlight the merits

C
and demerits of centralization and decentralization with examples. (16)
S.
Centralization and decentralization refer to the location of decision - making
U
authority in an organization.
C

Centralization means that the authority for most decisions is concentrated at the top
FO

managerial hierarchy whereas 'decentralization' requires such authority to be dispersed by

extension and delegation through all levels of management.
TS

Advantages of Decentralization:
EN

It reduces burden of the management so that it can focus more attention and
strategic management.
D

It encourages decision making and assumption of authority and responsibility.

U

It facilitates growth and diversification in the organization.

ST

It enables the department staff members to complete work early.

It facilitates setting up of profit centers.
Disadvantages of Decentralization:
It is difficult to have a uniform policy and procedure.
There is an increase in complexity of coordination of decentralized
organizational units.
If it is not followed properly, decentralization will create chaos in the
organization in the absence of proper control.
There is a possibility of duplication of workWW.VIDYARTHIPLUS.COM
It may be limited to external factors like trade labour unions, government control,
tax policies, market uncertainties etc.

Making decentralization effective:

Central top policy,
Appreciation of concept of decentralization,
Development of managers,
Competition among units,
Open communication,
Effective co-operation.
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