Principles Of Management B.com., BBA.

, UCZ2B

PRINCIPLES OF MANAGEMENT (IMPORTANCE)

SECTION-A (2 MARKS)
1. What is management?
❖ Management is goal oriented and it is an art of getting
things done with and through others.
❖ The practice of management helps to achieve the
organizational mission and determines the future of the
business enterprises.
2. Define management.
❖ “Management is a multi-purpose organ that manages a
business, and manages manager and manages workers and
work”. - Peter F. Drucker
❖ "To manage is to forecast, to plan, to organise, to
command, to co-ordinate and to control."- Henry Fayol
3. What do you mean by Administration?
❖ Administration is the top level function.
❖ It is refers to the determination of major aims and policies,
whereas management refers to carrying out of operations
designed to accomplish the aims and policies.
❖ The former is largely determinative, while the latter is
essentially executive. Administrators are the owners of the
concern. Administrators do not take part in the daily activities
of the concern.
4. Expand the terms MBO and MBE.
❖ Management By Objectives (MBO)
Management by Objectives (MBO) is a popular technique
that organizations use to integrate objectives into the
activities that managers engage in. Peter Drucker is
generally credited with popularizing MBO as an integrated
approach to planning.
❖ Management By Exception (MBE)
It is a management technique by which manager
concentrate only on exceptional deviations instead of trying
to correct each and every deviation. The advantage of the

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Principles Of Management B.com., BBA., UCZ2B

technique management by exception is that it allows the

manager to concentrate on problems that need his
attention and to avoid dealing with those that can b well
handled by the subordinated them
5. Mention any two duties of top level management.
Top management is responsible for
❖ establishing policies,
❖ guidelines and
❖ strategic objectives,
❖ as well as for providing leadership and direction for quality
management within the organization.
6. State any two functions of top level management.
❖ To lay down organisational goals, policies and strategy
formulation.
❖ Organising, controlling and monitoring the activities.
❖ Resource allocation.
❖ Approval of budget.
7. What is planning?
❖ Planning is the primary function of management. Nothing
can be performed without planning.
❖ Planning refers to deciding in advance. Planning should
take place before doing.
8. Define planning.
❖ According to Henry Fayol “Planning is deciding the best
alternative among others to perform different managerial
operations in order to achieve the predetermined goal”.
❖ According to Koontz O’ Donnell “Planning is deciding in
advance what to do, how to do it, when to do it, and who is
to do it. It bridges the gap from where we are to where we
want to go”.
9. What are the types of plans?
❖ Long -Term Plan : It is usually for 5 to 15 years. Also called
strategic planning. Introducing new product, entering a new
market are examples.

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Principles Of Management B.com., BBA., UCZ2B

❖ Medium -Term Plan : It is usually for 1 to 5 years. Also called

tactical planning. Additions to existing plant, increasing the
production level are examples.
❖ Short Term -Term Plan : For a period less than one year.
Also called operational planning. Purchases of raw
materials, employee training are examples.
10. What is the need for planning?
❖ Planning enables a manager to look forward and take
appropriate steps to deal with future uncertainties and
changes.
❖ Mis-happenings and uncertain events cannot be eliminated
completely but their effect on the organisation can be
minimised if we plan how to overcome such situations.
11. What is the purpose of planning?
❖ Planning gives more power over the future. Planning is
deciding in advance what to do, how to do it, when to do it,
and who should do it.
❖ This bridges the gap from where the organization is to where
it wants to be. The planning function involves establishing
goals and arranging them in logical order.
12. What are the type of policies?
❖ Distributive.
❖ Regulatory.
❖ Constituent.
❖ Redistributive.
13. Write the meaning of procedure.
❖ Procedures can be described as the details of action or the
guidelines that are given in order to achieve the objectives of
the organization.
❖ The procedures provide details regarding the ways in which
the things have to be done by the organization.
14. What are the benefits of procedures?
❖ Know what you have to do.
❖ Access information to quickly solve problems and reduce
downtime.
❖ Easily onboard new employees.

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Principles Of Management B.com., BBA., UCZ2B

❖ Reduce risk & improve security.

15. Compare policies with procedures.
❖ Policies set some parameters for decision-making but leave
room for flexibility. They show the “why” behind an action.
❖ Procedures, on the other hand, explain the “how.” They
provide step-by-step instructions for specific routine tasks.
16. What are the factors involved in decision making?
❖ Personal factors,
❖ Organizational factors,
❖ Social factors,
❖ Environmental factors,
❖ Behavioral factors, and.
❖ Factors related to decision-making skills.
17. State the meaning of organizational decisions.
❖ Organizational decision making is the process by which one
or more organizational units make a decision on behalf of
the organization.
❖ The decision making unit can be as small as an individual,
e.g., a manager, or as large as the entire organizational
membership.
18. Define the term organization.
❖ Organization refers to a collection of people, who are
involved in pursuing defined objectives.
❖ It can be understood as a social system which comprises all
formal human relationships.
❖ The organization encompasses division of work among
employees and alignment of tasks towards the ultimate goal
of the company.
19. State any two merits of organization.
❖ Helps in Optimum Utilisation of Technological Innovations
❖ Helps in Administration
❖ Promotes Growth and Diversification
❖ Easy Co-ordination
20. What is line organization?

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Principles Of Management B.com., BBA., UCZ2B

❖ Line organization is the simplest framework for the whole

administrative organization. Line organization approaches
the vertical flow of the relationship.
❖ In line organization, authority flows from the top to the
bottom. It is also known as the chain of command or scalar
principle.
21. Define Departmentation.
❖ In the words of Allen, “Departmentation is a means of
dividing a large and monolithic functional organization into
smaller, flexible administrative units”
❖ Departmentation is the process of grouping various activities
into separate units of departments.
❖ A department is a distinct section of the business
establishment concerned with a particular group of business
activities of like nature.
22. What is functional departmentation?
❖ Functional departmentalization is an organizational structure
where business leaders divide teams according to the
professionals' areas of specialization.
❖ For example, a manufacturing company may create a
production department, sales and marketing department, an
accounting department, and a human resources department.
23. Give any two merits of formal organization.
❖ Systematic Working
❖ Achievement of Organisational Objectives
❖ No Overlapping of Work
❖ Co-ordination
24. What is authority?
❖ Authority is the official right of a person to do and make
things happen in an organization. The person vested with
authority is known as the ‘Superior’.
❖ Authority is the right orders, take decisions and allocate
resources. Authority comes to the supervisor by virtue of his
official position.
25. Define delegation.

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Principles Of Management B.com., BBA., UCZ2B

❖ Haimann defines "Delegation of authority merely means the

granting of authority to subordinates to operate within
prescribed limits.
❖ F.G. More says "Delegation means assigning work to
others and giving them authority to do it".
❖ The delegation of authority only the process of transfer of
authority by a superior to his subordinate to enable the
latter to perform the task assigned.
26. What are the elements of delegation of authority?
❖ Assignment of Duties;
❖ Delegation of Authority; and
❖ Creation of Accountability.
27. What is centralization?
❖ Centralization refers to the process in which activities
involving planning and decision-making within an
organization are concentrated to a specific leader or
location.
❖ The owner delegates the work among the staff according to
their skills and positions.
❖ Example: A person running a departmental store appoints a
manager, a cleaning staff, a salesperson and a helper.
28. Specify the meaning of responsibility.
❖ Responsibility is the task that is entrusted by managers to
subordinates. It is a moral commitment to complete the work
assigned.
❖ In other words, it is also defined as “Responsibility is the
obligation of an individual to carry out assigned activities to
the best of his/her activities”.
29. What is co-ordination?
❖ Coordination is “the process of linking the activities of
various departments of the organization,”
❖ It is “the process of integrating the objectives and activities of
the separate units (departments or functional area) of an
organization in order to achieve organizational goals
efficiently”.
30. What is meant by internal co-ordination?

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Principles Of Management B.com., BBA., UCZ2B

❖ Internal coordination is all about establishing a relationship

between all the managers, executives, departments,
divisions, branches, and employees or workers.
❖ These relationships are established with a view to coordinate
the activities of the organization.
❖ Internal coordination has two groups:
o Vertical coordination
o Horizontal coordination
31. What is vertical co-ordination?
❖ In vertical coordination, a superior authority coordinates his
work with that of his subordinates and vice versa.
❖ For example, a sales manager will coordinate his tasks with
his sales supervisors.
❖ On the other hand, all sales supervisors ensure that they
work in sync with the sales manager.
32. Define controlling.
❖ Dale Henning - “Control is the process of bringing about
conformity of performance with planned action.”
❖ Henry Fayol, “control consists in verifying whether
everything occurs in conformity with the plan adopted, the
instructions issued and the principles established”.
33. State the types of control.
TYPES OF CONTROL
❖ Preliminary [Input]
❖ Concurrent [process]
❖ Post action [feedback – output]
34. State any two characteristics of control. (Any2)
❖ Control is a continuous process
❖ Control is a management process
❖ Control is a pervasive function
❖ Control is a dynamic process
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***Good Luck***

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