Business Management, July 2022-Private

(2019 Admission Only)

Answer Key

PART A

1.What is Administration?

Administration is a decision-making function. It is a Top-level function.

It is applicable to non-business concerns i.e., clubs, schools, hospitals etc.

2.Who is a Liaison.

Liaison is co-operation and the exchange of information between different

organizations or between different sections of an organization.

A person who establishes and maintains communication for mutual

understanding and cooperation.

3.What are Originated Policies?

For effectively guide the actions of the subordinates, the top management
of the business formulates policies for the important functional areas. Such
policies are called originated policies.

4. What do you mean by External Coordination?

External coordination is all about establishing coordinated relationships

between the organization and outside people or the community. A better
understanding of the external environment helps you to make better plans to
exploit upcoming opportunities and you can earlier make prepared your
employees to perform better.

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5. What is meant by Training?

Training is the act of increasing the knowledge and skill of an employee

for doing a particular job. Training constitutes a basic concept in human resource
development. It is concerned with developing a particular skill to a desired
standard by instruction and practice.

6. Page No.116-117.

7. Page-120-121.

8. Page No.134.

9. Page No. 164.

10.What are Quality Control Circles?

A quality circle or quality control circle is a group of workers who do the

same or similar work, who meet regularly to identify, analyze and solve work-
related problems. It consists of minimum three and maximum twelve members in
number.

11.What is the use of Re-engineering?

• Reduce costs and cycle times.

• Improve quality.
• Increased Efficiency.
• Increased productivity.

12. Write short notes on Champions.

Page No. 194.

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 PART B

13. Page No.31.

14.Page No.50.

15. Page No. 62 – 66. (Steps in MBO Important)

16.Draw the organisational chart based on the method of departmentation

you choose?

Organizational Chart

An organizational chart shows the internal structure of an organization or

company. A company's organizational chart typically illustrates relations
between people within an organization. Such relations might include managers to
sub-workers, directors to managing directors, chief executive officer to various
departments, and so forth.

Departmentation

➢ Departmentation is the process of grouping various activities into

separate units of departments.
➢ Departmentation is the process which is used to group activities into units
for purpose of administration at all levels.
➢ By this process, the personnel and functions of an enterprise are
departmentalized by division into separate units.

Organizational Chart for Sales Department- Sales Team

The sales department directly brings revenue to an organization so it is quite

significant in nearly every industry.

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17. Do you agree with the view that there is no one best way of
departmentation applicable to all organisation? Critique.

➢ Departmentation is the process which is used to group activities into units

for purpose of administration at all levels.
➢ By this process, the personnel and functions of an enterprise are
departmentalized by division into separate units.

Bases of Departmentation

They are as follows:

1. Functional basis.
2. Territorial basis.
3. Process basis.
4. Product basis.

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 5. Customer basis.
6. Time basis.
7. Number basis.

1. Departmentation by Function

The most commonly accepted practice is the grouping of the activities in

accordance with the functions of an enterprise. The basic enterprise functions
generally consist of production, marketing, finance, etc. This method is more
logical and hence present in almost all enterprises at some level.

2.Departmentation by Territories

When the organization is large and geographically dispersed, departmentation on

territorial basis is the best. This is also considered suitable where the branches
produce the same goods or perform similar services at various locations.

3. Departmentation by Process

Activities can also be grouped according to the process involved or the equipment
used, this form of departmentation is often employed in manufacturing
enterprises. It is also called equipment departmentation. Large retail or marketing
enterprises may also have process departments for receiving goods in stores,
transportation, wrapping and delivery. Departmentation by process is usually
decided on the basis of costs that is mainly on economic considerations.

4. Departmentation by Product

This type of departmentation is desirable for large undertakings which deal with
a variety of products or product lines. To departmentalise on product basis means
to establish each product or group of closely related products in a product line as
a relatively autonomous integrated unit within the overall framework of the

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company. Under this method, an executive will be in charge of and responsible
for all the activities relating to a particular product from production to
distribution.

5. Departmentation by Customer

Departmentation can also be made on the basis of customers served that is

customer departmentation. In this case, the firm shows its paramount interest in
the welfare of the customer and attention given to them. Under this method, the
customers are divided into separate categories, such as distributors, retailers and
consumers, and the task of satisfying the needs of different categories of
customers assigned to specific departments.

6. Departmentation by Time

It is a common practice to departmentalize activities on time basis. Enterprise

engaged in continuous process can follow this pattern. We are familiar with the
second shift, third shift, or night shifts, etc. Under this method, the activities
performed in each shift are similar and almost identical. But they are
departmentalized on time basis. This kind of departmentation is generally found
in public utilities and manufacturing establishments.

7. Departmentation by Number

In case of departmentation by number, activities are grouped on the basis of their

performance by certain number of persons. For instance, in the army, soldiers are
grouped into squaders, battalions, companies, brigades and regiments based on
the number prescribed for each unit. However, this type of departmentation is not
found in business concerns.

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Conclusion

Yes, I Agree,

➢ There is no one best way of department forming applicable to all

organizations and all situations.
➢ Each method has its own advantages & disadvantages. Selection of a
specific departmentation pattern should be done so that organizational &
individual objectives can be achieved effectively & efficiently.
Accomplishing this goal often requires mixing the forms of
departmentation.
➢ Departmentation is not an end in itself but is simply a method of arranging
activities to facilitate the accomplishment of objectives.
➢ Managers must determine what is best method by looking at the situation
they face — the jobs to be done and the way they should be done, the people
involved and their personalities, the technology employed in the
department, the users being served, and other internal and external
environmental factors in the situation.
➢ Each pattern of departmentation has its own merits and demerits. Besides,
each one is suitable under specified circumstances and become
unsuitable for other occasions. Hence, there is no one best way of
departmentation applicable to all organizations.

18. What are the advantages and limitations of trait theory?

➢ The great man theory is expanded upon by the trait theory of leadership,
which is predicated on the idea that effective leaders have particular
personality qualities and features of behaviour.
➢ The theory is based on the idea that certain natural abilities can help
someone become a leader more easily.

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 ➢ It also promotes the idea that certain people are more naturally gifted as
leaders than others.
➢ Trait theory of leadership is a concept based on the practice of discovering
specific personality traits and characteristics proven to lead to successful
leadership in a wide variety of contexts.

The Advantages of the Trait Theory of Leadership

1. Trait Theory helped to move the focus from the Great Man Theory of
Leadership, opening up new possibilities in the leadership studies field.
2. It brought significant advances in studying human personalities and
characteristics.
3. The theory brings well-needed complexity to leadership, rather than
reducing it two just a few behavioral leadership styles as in the Lewin
leadership studies.
4. It guides leaders on which types of characteristics to improve further.

The Disadvantages of the Trait Theory of Leadership

Here are some of the weaknesses, disadvantages, and limitations of the trait
theory of leadership:

1. The trait theory of leadership fails to cover all situations and circumstances.
2. Various authors suggest different lists of traits, making the theory less
specific.
3. Trait theory does not consider other leadership factors.
4. Trait theory doesn't provide any comparative results.
5. No surveys show how different degrees of the same trait affect the leader's
behavior and performance.
6. In the end, there are no definite tests for the measurement of these traits.

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19.Briefly explain the nature and characteristics of motivation?

Page No.152-153

20. Page No.167-171.

21.Identify the major obstacles to TQM implementation.

➢ Total quality management (TQM) is the continual process of detecting and

reducing or eliminating errors in manufacturing, improving the customer
experience, and ensuring that employees are up to speed with training.
➢ Total quality management aims to hold all parties involved in the
production process accountable for the overall quality of the final product
or service.
➢ Total quality management is a structured approach to overall
organizational management.
➢ The focus is to improve the quality of an organization's outputs, including
goods and services, through the continual improvement of internal
practices.

Major Obstacles to TQM Implementation

1. Lack of management commitment

In order for any organizational effort to succeed, there must be a

substantial management commitment of management time and
organizational resources. The purpose must be clearly and continuously
communicated to all personnel management must consistently apply the
principle of TQM.

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 2. Inability to change organizational culture

Changing an organization's culture is difficult and will require as much

as five years. Individuals resist change--they become habituated to doing a
particular process and it becomes the preferred way. It is difficult for
individuals to change their way of doing things; It is much more difficult for
an organization to make cultural change. Organization that spend more
planning for the cultural aspects of implementing a TQM program will
improve their chance of success.

3. Improper planning

All constituents of the organization must be involved in the

development of the implementation plan and any modifications that occur as
the plan evolves. The Two-way communication of ideas is the matter of great
importance and should be taken by all personnel during the development of
the plan and its implementation. Customer satisfaction should be the goal
rather than financial or sales goals.

4. Lack of continuous training and education

Training and education are an ongoing process for everyone in the

organization. Needs must be determined and a plan developed to achieve those
needs. Training and education are most effective, when senior management
conducts the training on the principles of TQM. External trainer can be hired for
communicating the TQM effort to all personnel on a continual basis. Lack of
training in group discussion and communication techniques, quality improvement
skills, problem identification, and the problem-solving method was the second
most important obstacle.

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5. Incompatible organizational structure and isolated individuals and
departments.

Difference between departments and individuals can create

implementation problems. The use of multifunctional teams will help to break
down long-standing barriers. Restructuring to make the organization more
response to customer needs may be needed. Individuals who do not embrace the
new philosophy can be required to leave the organization.

6. Ineffective measurement techniques and lack of access to data and results

Key characteristics of the organization should be measured for effective

decision making. To improve a process are you need to measure the effect of
improvement ideas. Access to data and quick retrieval is necessary for effective
processes. Find the root cause, correct the problem and eliminate the root cause
to prevent recurrence of the problem.

7. Paying inadequate attention to internal and external customers

Organizations need to understand the changing needs and expectations of

their customers. Effective feedback mechanism that provides data for decision
making are necessary for this understanding. Give the right people (who are
directly working on the product) direct access to the customers. When an
organization fails to empower individuals and teams, it can't hold them
responsible for producing results.

8. Inadequate use of empowerment and team work

Teams need to have the proper training and at least in the beginning by a
facilitator. Individuals should be empowered to make decisions that affect the
efficiency of their process or the satisfaction of their customer.

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9. Failure to continuously improve

It is tempting to sit back and rest on your laurels. However, a lack of

continuous improvement of the process, product and service will even leave the
leader of the pack in the dust.
10.Lack of employee commitment.

As employees are directly related with the production process, a lack of

commitment on their part can render the whole process of quality management
useless.

PART C

22.Page No.35 to 39.

23.Planning is looking ahead and control is looking back” Comment.

(Planning -Meaning, Nature of planning, Importance of planning, Purpose of

planning. Page No.45 to 50.)

(Control- Meaning, Purpose, Features of control, Importance of control.

Page No.-160 to 163.)

Conclusion

➢ Planning is looking ahead and controlling is looking back. This statement

is partially true.
➢ Planning is a psychological process of 'thinking and deciding in advance'
about 'what is to be done' and 'how it is to be done'. It is a mental activity
that includes deciding the goals and also the actions through which they
are to be accomplished. Thus, it is said that planning is looking ahead as it
involves predicting the future.

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 ➢ Controlling on the other hand, involves an assessment of the past
performance and evaluating them against the set standards. In this sense,
controlling is said to be a backward-looking function.
➢ However, both these statements are only partially true. Though planning is
a futuristic concept but it is based on past actions and experiences. Planning
for future cannot take place without peeping into the past. Similarly,
though controlling involves assessment of past performance, it also aims
at improving the future performance by taking the required corrective
actions. Hence, we can say that planning and controlling are backward
looking as well as forward looking functions.

24. Page No. 82 to 85.

25. Page No. 138 to 142.

(Write characteristics of Leadership as Nature of Leadership)

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