PRINCIPLES OF MANAGEMENT

2 MARKS
UNIT I HISTORICAL DEVELOPMENT

1. What is Management?

Management is the process of giving direction and controlling the various activities of the people to
achieve the objectives of an organization.

2. Define Management.

According to Koontz and Weilrich “Management is the process of designing and maintaining of an
environment in which individuals working together in groups efficiently accomplish selected aims”.

3. Write some characteristics of Management.

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

4. What are the roles of management in organization?

1. Management helps in determination of the objectives of an organization. 2. Economic and social

development takes place through management.

5. Write any 2 points in favor of management as a science.

1) Management principles should be verifiable. 2) Reliable basis through management.

6. Write any 2 points in favor of management as an art.

i. Management is creative. ii. Management includes the use of practical knowledge and personal skill.

7. Who is the father of scientific management?

Frederick Winslow Taylor.

8. What is Time Study?

The movement which takes the minimum time is the best one.

9. What is Motion Study?

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

10. Write Fayol’s 14 principles of management.

1. Division of work. 2. Authority and responsibility. 3. Discipline. 4. Unity of Command. 5. Unity of
direction.6. Individual interest to general interest. 7. Remuneration. 8. Centralization. 9. Scalar chain. 10.
Order. 11. Equity. 12. Stability. 13. Initiative. 14. Espirit de corps.

11. What is Authority?

It is the power given to a person to get work from the subordinates.

12. What is Responsibility?

It is the amount of work expected of from a man by his superior.

13. Comment: Management is both- A science and an art.

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

14. What is Centralization?

The organization is centralized when the power is concentrated with one person.

15. What is Decentralization? The power is fully distributed to the subordinates of the organization.

16. What is Esprit – de- crops?

This means union is strength. In organization employees should be harmony and unity.

17. What are Management Levels?

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

18. Write the functions of management.

1. Planning.2. Organizing.3. Staffing. 4. Coordinating. 5. Controlling.

19. What are the essential skills needed for the managers?

1. Technical skill. 2. Human skill. 3. Conceptual skill.

20. Define sole trading.

The sole proprietorship is that form of business organization which is owned and controlled by a single
individual.
 UNIT II PLANNING

1. Define planning.

Planning is the process of selecting the objectives and the determining the course of action required to
achieve these objectives.

2. What are the objectives of planning?

1. Planning is the primary function of an organization 2. It helps in achieving objectives

3. It is done to cope with uncertainty and change

4. It helps in facilitating control

5. It helps in coordination 6. It increases organizational effectiveness. 7. It guides in decision making.

3. List out the features of planning.

1. Planning –a primary function 2. Planning – a dynamic process

3. Planning – based on objectives and policies 4. Planning – a selective process 5. Pervasiveness of

planning.

4. What are the different types of planning?

1. Mission or purpose Programs 2. Objectives and Budgets. 3. Strategies Schedules. 4. Policies Methods. 5.
Procedures projects. 6. Rules.

5. Define Mission

Mission may be defined as “as a statement which defines the role that an organization plays in the
society”.

6. Define objectives.

The term objectives or goals are often used interchangeably. Objectives are the end results towards which
the activities of firm are aimed or directed.

7. What is meant by strategy?

Strategy of an organization is the programs of action and deployment of resources to attain its objectives.

8. What are the factors to be considered while formulating strategies?

1. Mission and objectives of an organization. 2. Values, aspirations and prejudices of top level
management3. Opportunities and threads of the external environment. 4. Strength and weakness of the
firm in various aspects such as funds, organization structure, human talent, technology, etc.
9. Define policies.

Policies are general statements or understandings which provide guidance in decision making to various
managers.

10. What is procedure?

Procedure is a chronological order of actions required to implement a policy and to achieve an objectives.

11. How rules can be defined?

Rules are plans in which they suggest the required course of action.

12. What is program?

Program is a broad term which includes goals, policies, procedure, rules, task assignment, steps to be
taken, resources to be employed to carry out a given course of action.

13. Define Budget.

A budget is a statement of expected results in numerical terms and therefore, it may be referred as a
numerical program.

14. Classify budgets.

i. Variable budgets or Flexible budgets. ii. Program budgets. iii. Zero-base budget. 15. Give the flow
diagram of planning steps. 1. Identification of opportunities. 2. Establishment of objectives. 3. Developing
planning premises. 4. Identification of alternatives. 5. Evaluation of alternatives. 6. Selecting an
alternative. 7. Formulating derivative plans. 8. Establishing sequence of activities.

16. What is objective?

Objectives are the aims, purposes or goals that an organization wants to achieve over varying periods of
time.

17. List down the guidelines for the objective setting.

1. Objective should cover the main features of the job 2. Objectives must be clearly specified in writing

3. The list of objectives should not be too long. Wherever it is possible, combine some objectives to make
the list reasonable. 4. Objectives should be verifiable.

18. Mention the different areas of an organization towards objective setting.

1. Market standing. 2. Innovation. 3. Productivity. 4. Resources- physical and financial. 5. Profitability. 6.

Manager performance and development. 7. Public responsibility. 8. Worker performance, attitude and
development.
19. What are the benefits of objective setting?

i. It sets specific targets for the employee to achieve which are liked to business/ development plan. ii. It
states how the performance of the employee is to be measured to assess progress. iii. It provides direction
of the employee. iv. It allows progress, targets, and successes to be monitored and measured by the
manager. v. It helps build working relationships between the employee and the manager and improves
overall communications.

20. What is MBO?

MBO is a process whereby the superior and the subordinate managers of an enterprise jointly identify its
common goals, define each individual’s major areas of responsibility in terms of results expected of him,
and use these measures as guides for operating the unit and the contribution of each of its members is
assessed.

UNIT III ORGANISING

1. Define organizing.

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

2. What do you understand by effective organizing?

Effective organizing focuses on finding mistakes in present organizing and avoiding such mistakes by
proper planning. Effective organizing avoids organizational inflexibility and makes the staff work effectively
by avoiding conflicts by clarification.

3. Mention any 4 characteristics of an organization.

1. Common objectives. 2. Specialization or division of labor. 3. Authority of structure. 4. Group of persons.

4. State the kinds of organizational charts.

1. Vertical chart 2. Horizontal or left to right chart 3. Circular or concentric chart.

5. What is Span of control?

Span of control means the number of people managed effectively by a single superior in an organization.
The term “span of control” is also known as “SPAN OF MANAGEMENT”, “SPAN OF AUTHORITY” and “SPAN
OF RESPONSIBILITY.”

6. Mention the 3 categories of span of management.

1. Direct single relationship 2. Direct group relationship 3. Cross relationship.

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

1 Capacity of superior 2 Capacity of subordinate 3 Nature of work 4 Type of technology 5 Delegation of

authority

8. What are the types of Departmentation?

1. Departmentation by numbers. 2. Departmentation by time. 3. Departmentation by Enterprise

function.4. Departmentation by Territory. 5. Departmentation by Customers. 6. Departmentation by
equipment or process. 7. Departmentation by product or service.

9. What is a matrix structure?

Matrix structure is a hybrid organizational form, containing characteristics of both project and functional
structures.

10. How can we define power?

“power is the probability that one actor within the relationship will be in a position to carry out his own
despite resistance”.

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. 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.

13. Define HRP.

“HRP is the process by which an organization ensures that it has the right number and kind of people at
the right place at the right time, capable of effectively and efficiently completions, those tasks that will
help the organization achieve its overall objectives”.

14. What are the steps involved in man power planning?

1. Forecasting man power needs 2. Forecasting man power inventory 3. Identifying man power gaps 4.
Man power program.

15. What is job analysis?

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

16. What is job design?

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

17. What is job rotation?

The job rotation refers in the movement of an employee from the job to another.

18. Define Recruitment.

Recruitment is defined as “the process of searching for prospective employees and stimulating to apply
for jobs in the organization”.

19. What is selection?

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

20. What are the steps involved in selection process?

1. Screening of applications. 2. Selection tests. 3. Preliminary interview. 4. Reference check. 5. Medical

examination. 6. Final interview. 7. Approved by appropriate authority. 8. Placement.

UNIT IV DIRECTING

1. What is meant by the term directing?

Directing may be defined as the process of instructing, guiding and inspiring human factors in the
organization to achieve organization objectives. It is not only issuing orders and instruction by a superior
to his subordinates but also including the process of guiding and inspiring them to work effectively.

2. List down the human factors in managing.

Multiplicity of roles Individuality Personal dignity

3. Define creativity.

Creativity is defined as the ability to produce new and useful ideas through the combination of know
principles and components in novel and non obvious ways. Creativity exists throughout the population,
largely independent of age, sex, and education.

4. What are the steps involved in creative process?

1. Saturation. 2. Preparation. 3. Frustration and incubation. 4. Inspiration or illumination. 5. Verification.

5. How are problems solved by creative tool?

Creativity tools are designed to help you devise, creative and imaginative solutions to problems. It helps
you spot opportunities that you might otherwise miss.
6. What does SCAMPER stand for?

S - Substitute C - Combine A - Adapt M - Modify P - Put to another use E - Eliminate R - Reverse

7. What are the steps involved in simplex tool?

1. Problem finding. 2. Fact finding. 3. Problem identification. 4. Idea finding. 5. Selection and evaluation. 6.
Planning.7. Sell data. 8. Action.

8. How can be harmonizing objectives achieved?

1. Mutual trust. 2. Cooperation and understanding. 3. Workers participation in management, and 4.

Balancing objectives of the organization with those of individuals.

9. Define “multiplicity of roles”.

Individuals are not only the productive factor in management’s plans. They are members of social system
of many organizations.

10. What is meant by brain storming?

Brain storming is an excellent way of developing many creative solutions to a problem. It works by
focusing on a problem, and then coming up with very many radical solutions to it. The essence of
brainstorming is a creative conference, ideally of 8 to 12 people meeting for less than an hour to develop a
long list of 50 or more ideas. Suggestions are listed without criticism on a black board or news print as they
are offered.

11. Define Motivation.

Motivation is a general term applying to the entire class of drives, desires, needs wishes and similar forces
that induce an individual or a group of people to work.

12. What are the steps involved in motivation process?

1. Analysis of situation. 2. Preparing, selecting and applying a set of appropriate motivating tools. 3. Follow
up.

13. What are the types of motivation?

1. Positive motivation. 2. Negative motivation. 3. Extrinsic motivation. 4. Intrinsic motivation.

14. List out the basic needs in a hierarchy.

1. Physiological needs. 2. Safety needs. 3. Social needs. 4. Esteem needs. 5. Self- actualization needs.

15. What is job enrichment?

Job enrichment is therefore based on the assumptions that in order to motivate personnel, the job itself
must provide opportunities for achievement, recognition, responsibility, advancement and growth.

16. Define leadership.

Leadership is the process of influencing the behavior of others towards the accomplishment of goals in a
given situation.

17. Mention the importance of leadership.

i. Motivating employees ii. Leader develops team work iii. Better utilization of manpower iv. Creating
confidence to followers v. Directing group activities vi. Building morale vii.Maintaining discipline.

18. List out few leadership traits.

• The Michigan studies • Theohio state university studies • The managerial grid.

19. Name the various leadership styles.

• Autocratic or Dictatorial leadership • Participative or Democratic leadership. • Laissez- faire or Free- rein
leadership.

20. What is communication?

Communication is the passing of information from one person to another person.

UNIT V CONTROLLING

1.Define Control.

According to Koontz “controlling to the measurement and correction of performance in order to make
sure that enterprise objectives and the plans devised to attain them are accomplished”.

2. What are the characteristics of control?

1. Control process is universal. 2. Control is a continuous process. 3. Control is action based. 4. Control is
forward looking.

3. Why need of control in the organization?

1. Control can minimize the mistakes. 2. To discover the deviations in the management. 3. To minimize
dishonest behavior of employees.

4. Give some critical point standards of control.

1. Cost standards. 2. Revenue standards. 3. Goals standards. 4. Program standards.

5. What are the types of control?

1. Feedback control. 2. Concurrent control. 3. Feed forward control.

6. What are the requirements for effective control?

i. The control should be economical ii. It must be simple iii. It should be flexible iv. It should be clear
objectives.

7. What is management by exception?

Actual performance compare with the standard performance deviations which cannot significant should
be avoided.

8. What are traditional techniques of control?

i. Personal observation. ii. Break –even analysis iii. Statistical reports. iv. Budgetary control.

9. What are modern techniques of control?

i. Management audit. ii. Return on investment. iii. PERT& CPM. iv. MIS.

10. Define budgetary control.

According to J. Batty “A system which uses budgets as a means of planning and controlling all aspects of
producing and or selling commodities and services”.

11. What are the different types of Budgets?

i. Sales budget. ii. Production budget. iii. Purchase budget. iv. Personnel budget. v. Cash budget. vi.
Research and Development budget. vii. Capital budget. viii. Master budget. ix. Profit budget. x. Cost
budget.

12. Define MIS.

“A system of obtaining abstracting , storing and analyzing data, to productions information for use in
planning, controlling and decision making by managers at the time they can most effectively use it”.

13. What are the MIS Resources?

1. Computer hardware. 2. Software. 3. Data. 4. People.

14. Define productivity.

Productivity is a measure of how much input is required to produce a given output i.e. the ratio
(output/input) is called productivity.

15. What are the factors consider for product design?

1. Marketing. 2. Government policy. 3. Production. 4. Technology. 5. Product quality.

16. Define OR.

OR is a systematic analysis of a problem through scientific methods, carried out by appropriate specialists,
working together as a team, finding an optimum and the most appropriate solution to meet the given
objective under a given set of constraints.

17. What is Inventory control?

The inventory control refers to the control of raw materials, and purchased materials in store and
regulation of investment in them.

18. What is Economic order Quantity?

Formula, EOQ = 2DS/ C Where, D- Demand per year C- Annual carrying cost of one unit. S- Ordering cost.

19. What is JIT?

Just In Time inventory system. In this method the suppliers delivers the materials to the production spot
just in time to be assembled. This method reduces cost of inventory.

20. What are the objectives of value engineering?

1. Modify and improve product design. 2. Reduce the product cost. 3. Increase the profit. 4. Simplify the
product.