Principles and Practices of Management

Subject Code- B-101

ANSWER SHEET

Section A:PART ONE 1. 2. 3. 4. 5. A plan is a trap laid to capture the Future. Staffing is the function of employing suitable person for the enterprise. Departmentation means group of activities & employees into departments. Acceptance theory states that authority is the power that is accepted by others. Decentralization means dispersal of decision-making power to the lower levels of the organization. 6. Master chart is the basic document of the organizational structure. 7. Communication which flow from the superiors to the subordinates with the help of scalar chain is known as Downward communication. 8. Needs for belongingness, friendship, love, affection, attention & social acceptance are Social needs. 9. A management function which ensures jobs to be filled with the right people, with the right knowledge, skill & attitude is Staffing defined. 10. Counselling is a process that enables a person to sort out issues and reach to a decisions affecting their life. PART TWO 1. The distinction between management & administration are that:Administration is the function in industry concerned with the determination of the corporate policy, the co-ordination of finance, production and distribution whereas Management is the function concerned with the execution of policy within the limits setup by administration. Thus, administration is formulation of policies and is a determinative function while management is execution of policies and is an executive function. Administration involves the overall setting of major objectives determination of policies, identifying of general purposes laying down broad programmes etc. while management is the active direction of human efforts with a view to getting this done. 2. The common drawbacks of the classical and the neo classical theories of management are listed below:i) both the theories had certain unrealistic assumptions and hence were not applicable to the organisation at a later date.. ii) both the theories had limited application, the formats and structures of organisations are not universal in both the theories. There is no particular structure which may serve the purpose of all the organisations. They also overlooks some of the environmental constraints which managers cannot ignore and this lapse makes the practicability of the theory limited. iii) Lack of Unified Approach: The theories lacks the unified approach of an organisation.

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Principles and Practices of Management

Subject Code- B-101
3. Line Organisation is the oldest form of an organisation. This is known by different means, i.e., military, vertical, scalar and departmental. All other types of organisation structure have mostly been modifications of the line organisation. The concept of the line organisation holds that in any organisation derived from a scalar process, there must be a single head who commands it. Although an executive can delegate authority, he has ultimate responsibility for results. According to some writer Line structure consists of the direct vertical relationship which connect the positions and tasks of each level with those above and below it, and some others say organisationally, the line is the chain of command that extends from the board of directors through the various delegations and redelegations of authority and responsibility to the point where the primary activities of the enterprise are performed. 4. Acceptance theory is a theory which states that authority is the power that is accepted by others. Formal authority is reduced to nominal authority if it is not accepted by the subordinates. The subordinates accept the authority if the advantages to be derived by its acceptance exceed the disadvantages resulting from its refusal. The subordinates give obedience to the mangers because they visualise the following advanrtages; i) ii) iii) iv) v) vi) vii) Receipt of financial incentives. Contribution in attaining the objectives of the enterprise. Fulfilment of responsibilities. Appreciation from colleagues. Setting of an example for others. Responsibility to leadership of superior. Moral obligation because of regard for old age, experience, competence, etc.

According to acceptance theory, authority flows from bottom to top. A manager has authority if he gets obedience from the subordinates. Subordinates obey the managers because of the fear of losing financial rewards. This theory emphasises sanctions that a manager can use and overlooks the influence of social institutions like trade unions.

Section B:CASELET-1
1. Mr. Vincent was a good and successful manager but he followed the traditional type of management skills, and that is why he was not unsuccessful. But when he was taught of many other ways of managements he started to think that he should only know it for the test because he was confident thinking that what ever he knows is enough as he was successful, but he was wrong because with other skills applications he could have not only been successful but could also grow his organisation and take it to the top of his competitors. He could make an increase in the profit of his organisation and save the Page 2 of 6

Principles and Practices of Management

Subject Code- B-101
wastes as much as possible. Being an manager he should have always been innovative in his ideas of management but he was going the other way, even though his professor was teaching him new thought he was busy thinking that he will stick to his old way of planning, organising and controlling approach to manage his store. [167words] 2. If I was the professor and knew what was going through Vincents mind then I would have explained him the concept again but this time the other way giving him his own example and then make him feel the lacking part of his successful management career making him feel that his thought were also correct put old enough and needed to be updated according to the needs of the environment today. I would have told him that with modernization he should become innovative too and that not only planning, organising and controlling are steps of successful management but it could also be thought of as quantitative models, system theory and analysis, and even something called contingency relationship, so that he could implement many other theories and methods in his process of managing his job, so that he should not only be successful but Also that his organisation should grow and give good competition to the other organisations around him and so that he could make good and proper use of his available resources. [173words]

CASELET-2

1. DCuhna was a good professional executive but being good and equal sometimes might go against ones self only. The problem with DCuhna was that he was going to quickly in his work and not giving others time to catch up, everyone knew that he was selected because of his experience, background and abilities but he should also understand that he was the part of an organisation which was new and not even fully trained for the work so how could they work at his speed and expectations, the problem with DCuhna was that he being an old executive should know that in an organisation there human beings and that they are emotional in nature so he should not treat everyone i.e. male and female staffs in the same manner, he had no right to scold someone on account of others pending work, because it was his duty to see that if someone is on sick leave he should replace that position temporarily, but DCuhna did not do so and went on to scold the female staff. When he was cross answered by the female staff for the first time then only he should have understood her emotional nature and talked to the higher authority for suggestions. [200words] 2. If at the very beginning only DCuhna had looked into the matter as why the female clerk was submitting nil returns and after knowing it if he would have filled the vacant officers place with a temporary staff then the matter would not have been raised higher, later when the lady clerk was cross answering him then instead of firing her and scolding her if DCuhna had gone and spoken to the higher authorities regarding the matter then planned and taken any step to solve the problem and then taken any strict action then also DCuhna could have found himself out of this trouble. Even after all this had happened if Page 3 of 6

Principles and Practices of Management

Subject Code- B-101
DCuhna had apologised to the lady staff and then explained her politely then also some chances were there for him to get out of this trouble which he had created for himself, as ladies are very emotional in nature and like politeness. But after all what had been done and finally the only option for him to get out of all this was to quit as he did. [179words]

Section C:1. Training is the act of increasing the knowledge and skills of an employee for doing a particular job, traditionally training had focused on technical and mechanical skills. Training has to focus also on interpersonal and social skills, on listening, on control over body language, on communication and presentation skills, etc. The different method of training are as follows:i) Case Method: this method can be said to be midway between learn by doing and learn by listening. It is far removed from the realm of action. In this method the trainees get a descriptive record in the form of a case. The participants, have chance to see themselves as one or another person in the case. As a result of this, the trainees may get a chance to experience and visualise the situation. This method gives an opportunity to the trainees to analyses the situation to examine what happened and alternate and alternatives it could have been handled. ii)Incident Process: Unlike the case method the incident is also a brief statement of an event or a situation. Additional data is event or a situation. Additional data is made available in response to specific questions from the participants. The trainees will have to look for facts by way of background, and details to obtain a clear and complete picture before analysing for decision-making. iii) Lecture Method: This is a very popular method. The lecture is actively involved while the participants are largely passive. This method can be employed where information is not to be imparted to the participants. However, being a purely one way communication system is likely to be less conductive to learning. Business games: in business games, the participants may form into groups of three or four representing either different departments within an organisation, or groups of managers from different organisation. The objective of each of the small groups would be to either maximise profits or minimise loss. In business games, each groups would be given data about plant capacities, material costs, availability of materials, cost of carrying inventories, etc. and based on the fact provided to the participants they have to make decisions simulating situations which arise in business organisation form time to time. The trainer also provides Page 4 of 6

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Principles and Practices of Management

Subject Code- B-101
them with simulated data, regarding results arising out of decision made by them which in turn lead to fresh decisions. In this way, a few rounds of decision making are experienced by the participants and sometimes the game may go on for number of hours or even a couple of days. At the end of the game, each group of participants is in a position to evaluate the performance of the group. It develops their decision making abilities, teamwork and awareness on the effects of interaction between different groups. v) Role Playing: in this method different participants are given details and fact of an character about its past and are told to act like it, a person playing a particular role is required to step into the shoes of the character concerned, who is given details regarding his personality, past experience, relationship with other people, etc. he is even required to act out the role based on this data. Trainee get to learn different pattern of behaviour etc.

2. The decision-making process of an organisation are listed below: Setting objectives: Rational decision-making involves a concrete goal of objectives. So the first step in decision-making is to know ones objectives. An objective is an expected outcome of future actions. So before deciding upon the future course of efforts , it is necessary to know beforehand what we are trying to achieve. Exact knowledge of goals and objectives bring purpose in planning and harmony in efforts. Perception of the problem: Perception involves defining and recognising the problem in a clear-cut manner. A clear understanding of the real problem is the most important task in the process of decision-making as the right answer can be found only for a right question. Analysing the problem: After defining the problem, the next step in decisionmaking is analysing it. The problem should be thoroughly analysed to find out adequate background information and data relating to the situation. The problem should be divided into many sub-problems and each element of the problem must be investigated thoroughly and systematically. There can be a number of factors involved with any problem, some of which are pertinent and others are remote. These pertinent factors should be discussed in depth. It will save time as well as money and efforts. Developing alternative solutions: After analysing a problem, with the help of relevant information, the decision-maker should formulate several alternative solutions for the problem. The development of alternative solutions for the problem is imperative. It is a right decision to be made. The development of alternatives involves an activity of choosing.

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Principles and Practices of Management

Subject Code- B-101
Screening the alternatives: After developing various alternatives, the next step should be to judge and evaluate them through some decision criteria. As a result of these criteria one would like to see the ideal outcome of any action taken. Selecting the best solution: After evaluation of various alternatives, the next step is the selection of the best solution. It requires an ability to draw distinction between seen and unseen forces, between tangible and intangible forces between facts and guesses. In attempting to select from alternatives, several basic approaches of decision-making are open to the manager. Among these are experimentation technique research and analysis techniques. But in Making a final decision, the manager will invariably be guided by his past experience. Implementing the decision: After taking the final decision the next problem is to put decision into effect. This step involves gaining acceptance of the decision by those directly influenced by it and developing control to see whether the decision is being carried out properly. The means of communication is decisions, the motivation of employees and co-ordination of their efforts are other phases of implementation of decisions. Feedback and Control: The last step in the process of a right decision is to follow up the decision. In spite of their best efforts and analysis, managers cannot make infallible decisions. So, the management should receive continuous informations and evaluate them regarding the effect of his implemented decision. If he considers it necessary, he may modify his decision, plan, goal or strategy and may take appropriate sanction to make the decision a success.

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