REGULATION:2017 ACADEMIC YEAR: 2020-2021

SUBJECT:PRINCIPLES OF MANAGEMENT SUBCODE:MG8591

MG8591PRINCIPLES OF MANAGEMENTL T P C 30 0 3

OBJECTIVES:
To impart knowledge on the
 Evolution of Management, to study the functions and principles of management and to learn
the application of the principles in an organization.
UNIT I INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS9
Definition of Management – Science or Art – Manager Vs Entrepreneur - types of managers -
managerial roles and skills – Evolution of Management – Scientific, human relations , system and
contingency approaches – Types of Business organization - Sole proprietorship, partnership,
company-public and private sector enterprises - Organization culture and Environment – Current
trends and issues in Management.
UNIT II PLANNING 9
Nature and purpose of planning – planning process – types of planning – objectives – setting
objectives – policies – Planning premises – Strategic Management – Planning Tools and Techniques
– Decision making steps and process.
UNIT III ORGANISING 9
Nature and purpose – Formal and informal organization – organization chart – organization structure
– types – Line and staff authority – departmentalization – delegation of authority – centralization
and decentralization – Job Design - Human Resource Management – HR Planning, Recruitment,
selection, Training and Development, Performance Management, Career planning and management.
UNIT IV DIRECTING 9
Foundations of individual and group behaviour – motivation – motivation theories – motivational
techniques – job satisfaction – job enrichment – leadership – types and theories of leadership –
communication – process of communication – barrier in communication – effective communication
– communication and IT.
UNIT V CONTROLLING 9
System and process of controlling – budgetary and non-budgetary control techniques – use of
computers and IT in Management control – Productivity problems and management – control and
performance – direct and preventive control – reporting.
TOTAL: 45 PERIODS
OUTCOMES:
 Ability to have clear understanding of managerial functions like planning, organizing,
staffing, leading & controlling and have same basic knowledge on international aspect of
management
TEXT BOOKS:
1. Stephen P. Robbins & Mary Coulter, “Management”, Prentice Hall (India) Pvt. Ltd., 10th
Edition, 2009.
2. JAF Stoner, Freeman R.E and Daniel R Gilbert “Management”, Pearson Education, 6th
Edition, 2004.

REFERENCES
1. Stephen A. Robbins & David A. Decenzo& Mary Coulter, “Fundamentals of Management”
Pearson Education, 7th Edition, 2011.

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2. RobertKreitner&MamataMohapatra, “Management”, Biztantra, 2008.

3. Harold Koontz & Heinz Weihrich “Essentials of Management” Tata McGraw Hill,1998.
4. Tripathy PC & Reddy PN, “Principles of Management”, Tata Mcgraw Hill, 1999.

Subject Code: MG8591 Year/Semester: IV/07

Subject Name: Principles of Management

UNIT I - INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS

Definition of Management – Science or Art – Manager Vs Entrepreneur - types of managers

- managerial roles and skills – Evolution of Management – Scientific, human relations ,
system and contingency approaches – Types of Business organization - Sole proprietorship,
partnership, company-public and private sector enterprises - Organization culture and
Environment – Current trends and issues in Management.
PART * A
Q.
Questions
No
1 Define Management? [May 2011,Dec 2012, Dec 2014, May 2016, May 2017, Dec 2017,
Dec 2018, May 2019] BTL1
According to KOONTZ & WEIHRICH, “Management is the process of designing and
maintaining of an environment in which individuals working together in groups efficiently
accomplish selected aims”.
“Management is the art of getting things through and with people in formally organized
groups”.
Ex: Human Resource Management, Financial Management.
2 Is Management - an art or science?
What is the relation between art and science of management?[May 2012]BTL4
Managing as practice is an art; the organized knowledge underlying the practice is a science.
Managing has the following features that make it an art.
• Creative • Individual approach • Application and dedication • Initiative and • Intelligence.
The following features make it a science.
• Systematic decision making • Universal management process • Situational output and
• Universally accepted management.
Thus management can be called both as an art and science.

3 What are the essential skills of Managers? [Dec 2018]BTL2

The major skills required or expected out of managers are:-
• Technical skills – Pertaining to knowledge and proficiency in activities involving methods
and procedures;
• Human skills – Ability to work effectively with other persons and to build up cooperative
group relations to accomplish organizational objectives;
• Conceptual skills – Ability to recognize significant elements in a situation; and to
understand the relationship among those elements; and

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• Design skills – Ability to solve problems in ways that will benefit the enterprise
4 Define Scientific Management.[May 2008, May 2011, May 2015]BTL1
Scientific management involves specific method of determination of facts through
observation. The concept of scientific management was introduced by Frederick Winslow
Taylor in the USA in the beginning of 20th century. It was further carried on by Frank and
Lillian Gilbreth, Henry Gantt, etc. It was concerned essentially with improving the
operational efficiency at the shop floor level.
“Scientific Management is concerned with knowing exactly what you want men to do and
then see in that they do it best and cheapest way”.
5 List the principles of Scientific Management. BTL2
Scientific management was introduced by F.W Taylor who is known as the Father of
Scientific Management. He adopted scientific methods to increase the productivity and
greater efficiency in production.
The principles of Scientific Management are:-
 Separation of planning and working
 Functional foremanship
 Job analysers
 Time study
 Motion study
 Fatigue study
 Standardization
 Scientific selection of training
 Financial incentives and
 Economy and mental revolution.
6 List the contributions of Fayol towards Management.BTL2
Henry Fayol is a French industrialist whose contributions are termed as operational
management or administrative management. He followed ‘The Classical Approach’ to the
evolution of management thought. His contributions are given as follows:-
• Grouping of activities of an industrial organization into six groups, namely
Technical, commercial, financial, security, accounting and managerial;
• Identified six types of qualities of a manager are- Physical, mental, moral, educational,
technical and experience;
• Fourteen principles of Management namely- Division of Work, Authority and
responsibility and so on; and
• Five elements/functions of management- Planning, organizing, commanding, coordinating
and controlling.
7 What are the functions of management[May 2007, May 2009, May 2011, Dec 2012,
May 2016]BTL2
• Planning • Organizing • Staffing • Leading or Direction or Coordination • Controlling
8 List out the Management level and functions.[Dec 2011]BTL2
• Top-level management
• Middle level management
• Lower level management
Top level management functions 1. To formulate goals and policies 2. To formulate
budgets 3. To appoint top executives

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Middle level management functions. 1. To train motives &develop supervisory level 2. To

monitor and control the operations performance
Low level management 1. To train &develop workers 2. To assign job 3. To give orders
and instructions 4. To report the information about the workers
9 What are the roles played by a Manager?[May 2011,May 2014, May 2015, Dec 2016,
May 2018, Dec 2018]BTL2
Interpersonal roles
1. Figurehead role 2. The leader role 3. The liaison role
Informational roles
4. The recipient role 5. The disseminator role 6. The spokesperson role
Decision roles
7. The entrepreneurial role 8. The disturbance-handler role 9. The resource allocator role 10.
The negotiator role
10 Define ‘Sole proprietorship’.BTL1
A Business unit that is owned and controlled by a single individual is known as sole trading
or sole proprietorship concern. He uses his own savings for running the business. The sole
trader makes all purchases and sells on his own and maintains all the accounts. He alone
enjoys all the profits and bears all the losses.
Ex: A Fancy store.
11 What do you mean by a ‘Partnership firm’? BTL1
A partnership is an association of two or more persons to carry on business and to share its
profit and losses. The relation of a partnership arises from contract. The maximum number
of partners is limited to 10 in the case of banking business and 20 in the case of other
business.
Ex: Chand & Co.
12 What do you understand by the term ‘Joint Stock Company’? BTL2
“By a Company we mean an association of many persons who contribute money or money’s
worth to a common stock and employs it in some trade or business and also shares the profit
and loss as the case may be arising there from”.
There are two types of Joint stock companies:-
* Private Limited company – Ex: M/s Key Media Pvt. Ltd.
* Public Limited company – Ex: M/s Pearl credits Ltd.
13 Who is (i) an active partner (ii) a sleeping partner? BTL4
Active partner: Any partner who is authorized by others to manage the business is known as
active partner.
Sleeping partner: Any partner who does not express his intention to participate in the
business can be called as a sleeping partner. He will be just an investor who has a right to
share profits.
14 What is a Co-operative Enterprise? BTL1
A Co-operative enterprise is a voluntary association of persons for mutual benefit and its
aims are accomplished through self-help and collective effort. It may be described as a
protective device used by the relatively less strong sections of society to safeguard their
economic interests in the face of exploitation by producers and sellers working solely for
maximizing profits.
Ex: AAVIN Milk Federation Cooperative Society.

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15 What is a Private limited company? BTL1

A Private limited company is a company which has a minimum paid up capital as may be
prescribed. It can be incorporated with just two persons. It can have a maximum of 50
members. It cannot go in for a public issue. It restricts the transfer of its shares. It is
particularly suitable for industrial ventures which can get many concessions in respect of
income tax.
Ex: M/s Key Media Pvt. Ltd.
16 What is a Public limited company? BTL1
A Public limited company should have a minimum of 7 members and the maximum limit is
unlimited. It can issue shares to the Public. The financial statement should be sent to all the
members and to the Registrar of Companies. The shares of a public limited company can be
transferred by the members to the others without any restriction by the company. Such
transfers are made through organized markets called ‘stock markets’ or ‘stock exchanges’.
Ex: M/s Pearl credits Ltd.
17 What is a Public sector Enterprise? BTL1
Public enterprise or State enterprise is an undertaking owned and controlled by the local or
state or central government. They are financed and managed by the government. They are
started with a service motive.
Ex: NLC Ltd.
18 What is a Public Corporation? BTL2
A Public corporation is an autonomous body corporate created by a special statute of a state
or central government. A public corporation is a separate legal entity created for a specific
purpose.
Ex: LIC.
19 Distinguish between Administration and Management [May 2008,Dec 2009,May
2014,Dec 2014]BTL2
Administration Management
Higher level of functions Lower level of functions
Refers to the owners of the Refers to the employees
organisation
Concerned with decision making Concerned with execution of
decision
Acts through the management Acts through the organisation
20 Name the different forms of organisation?[Dec 2009]BTL4
 Sole proprietorship
 Partnership
 Joint stock company
 Co-operative enterprises
 Public enterprise
21 What is the meaning for entrepreneur? [May 2019]BTL2
Entrepreneur is a person who starts the business and utilizes the resources of men, money,
materials and machines.
22 Define administration [Dec 2007, May 2013]BTL1
Administration is concerned with decision making and policy formulation while the
management is concerned with the execution of what has been laid down by the

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administrators.
23 What are the functions performed by a low level manager? [Dec 2013]BTL2
 To assign jobs to workers
 To give orders and instructions
 To report feedback information about workers
 To train and develop the efficiency of the workers
24 Who is known as the father of modern operation management theory? [May2012]BTL1
Henri Fayol
25 What is meant by Esprit De corps? [May 2009]BTL2
Union is strength. In organisation, employees should be harmony and unity. It improves the
employee morale.
26 What is time study? [May 2010]BTL2
It is the studies of the movements which take a minimum time are the best one.
27 Define partnership? [Dec 2017]BTL1
Partnership is the relation between persons competent to make contracts who have agreed to
carry on a lawful business in common with a view to private gain
28 Define Organisation culture? [May 2017]BTL2
It is a system of informal rules that spells out how people have to behave in most of the time
29 Distinguish between public and private limited companies? [May 2018]BTL4
Public limited company Private limited company
Company which is owned and traded Company which is owned and traded
publicly privately
After receiving certificate of incorporation After receiving certificate of incorporation
and certificate of commencement of
business
30 Give the current trends in management [Dec 2016]BTL5
 Workforce diversity
 Internal environment
 Technological advances
 Management of human relations
31 How does effectiveness differ from efficiency? [May 2009]BTL4
Efficiency means doing things right. It defines the ability to minimize the use of resources in
achieving organisational objectives.
Effectiveness means “Doing the right thing”. The ability is to determine the appropriate
objectives.
32 Define Globalization? [Dec 2006, May 2012, May 2013]BTL1
It is the process of transformation of local or regional phenomena in to global ones. It can be
described as a process by which the people of the world are unified into a single society and
function together.
33 What is multinational corporation (MNC)? [May 2010]BTL1
An enterprise which own or control the production or service facilities outside the country in
which they are based is called Multinational Corporation.
PART * B
1 Trace the evolution of management with reference to the contributions made by

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management thinkers. [Dec 2016]

Write an essay about the contributions made by F.W.Taylor, Henri Fayol, L.Gantt,
Frank and Lillian Gilberth, George Elton Mayo and others to the field of management.
[May 2004, May 2005, May 2008, May 2009, May 2011, May 2012, May 2018] (13M)
Describe about the evolution of management thought. [May 2012, May 2011, Dec 2016,
May 2016, Dec 2018]BTL4
Answer: Page 1.23 -Dr. G.K. Vijayaraghavan
Management is defined for conceptual, theoretical and analytical purposes as that process by
which managers direct, maintain and operate purposive organizations through systematic,
coordinated, cooperative human efforts. Management is a process involving planning,
organizing, staffing, directing and controlling human efforts to achieve stated objective in an
organization. (1M)

(2M)

Fredrick w Taylor (1986-1915) rested his philosophy on four basic principles. (3M)
1. The development of a true science of management so that the best method for performing
each task could be determined.
2. The Scientific selection of workers so that the each worker would be given responsibility
for the task for which he or she was best suited.
3. The scientific education and development of workers.
4. Intimate friendly cooperation between management and labor.
The scientific management schools
1. Scientific management theory arose in part from the need to increase productivity.
2. In the United States especially, skilled labor was in short supply at the beginning of the
twentieth century.
3. The only way to expand the productivity was to raise the efficiency of
workers.Therefore ,Fredrick W.Taylor, Henry Gantt, and Frank and Lillian Gilberth devised
the body of principles known as Scientific management theory
Taylor contended that the success of these principles required” a complete mental
revolution” on the part of management and labor.

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THE GILBRETHS (2M)

Frank B. and Lillian M.Gilbreth (1968-1924) and (1878-1972) made their contribution
To the scientific management movement as a husband and wife team. Lillian and Franck
collaborated on fatigue and motion studies and focus on ways on promoting the individual
workers welfare to them the ultimate aim of scientific management was to help workers
reach their full potential as human beings.
In their conception motion and fatigue were intertwined every motion that was eliminated
reduced fatigue.
Using motion picture cameras they tried to find out the most economical motions for each
task in order to upgrade performance and reduce fatigue.
CLASSICAL ORGANIZATION THEORY SCHOOL Scientific management was
concerned with increasing the productivity of the shop and the individual worker. Classical
organization theory grew out of the need to find guidelines for managing such complex
organization as factories.
HENRI FAYOL (3M)
Henri Fayol (1841-1925) is generally hailed as the founder of the classical management
school –not because he was the first to investigate managerial behaviour but because he was
the first to systematize it.
Fayol believed that sound manage
1. DIVISION OF LABOR
The most people specialize the more efficiency they can perform their work. This principle is
epitomized by the modern assembly line.
2. AUTHORITY
Managers must give orders so that they can get things done while this format give them a
right to command managers will not always compel obedience unless they have
Personal authority (such as relevant) expert as well
3. DISIPLINE MEMBERS IN AN ORGANIZATION
needs to respect the rules and agreement that govern the organization. To Fayol, discipline
leadership at all levels of the organization fair agreements and judiciously enforced penalties
for infractions.

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4. UNITY OF COMMANDS
Each employee must receive instruction from one person, Fayol believe that if employee
reported. More than one manager conflict in instruction and confusion in of authority would
result.
5. UNITY OF DIRECTION
Those operations with in the same organization that have the same objective should be
directed by only one manager using one plan. For example the personnel department in the
company should not have a two directors each with a different hiring policy.
6. SUBORDINATE OF INDIVIDUAL INTEREST TO COMMON GOOD
In any undertaking the interest of employees should not take the precedence over the interest
of organization as a whole

7. REMUNERATION: Compensation of work done should be common to both

employees and employers.
8. CENTRALIZATION: Decreasing the role of subordinates in decision making is
centralization, increasing their role is decentralization. Fayol believed that the managers
should retain the final responsibility. But should at the same time give their subordinate
enough authority to do the jobs properly. The problem is finding the proper degree of
centralization in each case.
9. THE HIERARCHY The line of authority in an organization should represent in the
neat box and the line of chart runs in order of rank from top management and lowest levels
of enterprise.
10. ORDER: Materials and the order should be in the right place at the right time. In
particular should be in job or position they are most suited to.
11. EQUITY: Managers should be fair and friendly to their subordinate.
12. STABILTY OF STAFF: A high employee turnover rate undermines the efficient
functioning of an organization.
13. INITIATIVE: Subordinate should be given the freedom to conceive and carry out
their plans even though some mistake may result.
14. ESPRIT DE CROPS: Promoting team spirit will give the organization a sense of
unity. To Fayol even the small factor help to develop the spirit. He suggested for example
the use of verbal communication instead of formal, written communication whenever
possible.
Elton Mayo (1M)
His contributions came as a part of the Hawthorne studies which is a series of experiments
that rigorously applied classical management theory only to reveal its shortcomings.
Henry Gantt (1M)
A bar graph measures the planned and completed work along each stage of production.
2 Explain the different roles and functions of a manager [May 2012, May 2017]
(8M)BTL2
Answer: Page 1.15 Dr. G.K. Vijayaraghavan
Different roles of a Manager (4M)
Interpersonal roles
1. Figurehead role 2. The leader role 3. The liaison role
Informational roles
4. The recipient role 5. The disseminator role 6. The spokesperson role

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Decision roles
7. The entrepreneurial role 8. The disturbance-handler role 9. The resource allocator role 10.
The negotiator role
functions of a manager (4M)
 To formulate the goals and policies of the company
 To formulate the budgets
 To appoint the top executives
 To decide the distribution of profits etc..,
3 Explain the fourteen principles of management as advocated by Henry Fayol. [Dec
2006, May 2007, May 2013, Dec 2014, May 2016, Dec 2017, Dec 2018] (8M)BTL4
Answer: Page 1.24-Dr. G.K. Vijayaraghavan
HENRI FAYOL (3M)
Henri Fayol (1841-1925) is generally hailed as the founder of the classical management
school –not because he was the first to investigate managerial behaviour but because he was
the first to systematize it.
Fayol believed that sound manage (5M)
1. DIVISION OF LABOR
The most people specialize the more efficiency they can perform their work. This principle is
epitomized by the modern assembly line.
2. AUTHORITY
Managers must give orders so that they can get things done while this format give them a
right to command managers will not always compel obedience unless they have
Personal authority (such as relevant) expert as well
3. DISIPLINE MEMBERS IN AN ORGANIZATION
needs to respect the rules and agreement that govern the organization. To Fayol, discipline
leadership at all levels of the organization fair agreements and judiciously enforced penalties
for infractions.
4. UNITY OF COMMANDS
Each employee must receive instruction from one person, Fayol believe that if employee
reported. More than one manager conflict in instruction and confusion in of authority would
result.
5. UNITY OF DIRECTION
Those operations with in the same organization that have the same objective should be
directed by only one manager using one plan. For example the personnel department in the
company should not have a two directors each with a different hiring policy.
6. SUBORDINATE OF INDIVIDUAL INTEREST TO COMMON GOOD
In any undertaking the interest of employees should not take the precedence over the interest
of organization as a whole
7. REMUNERATION: Compensation of work done should be common to both
employees and employers.
8. CENTRALIZATION: Decreasing the role of subordinates in decision making is
centralization, increasing their role is decentralization. Fayol believed that the managers
should retain the final responsibility. But should at the same time give their subordinate
enough authority to do the jobs properly. The problem is finding the proper degree of
centralization in each case.

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9. THE HIERARCHY The line of authority in an organization should represent in the

neat box and the line of chart runs in order of rank from top management and lowest levels
of enterprise.
10. ORDER: Materials and the order should be in the right place at the right time. In
particular should be in job or position they are most suited to.
11. EQUITY: Managers should be fair and friendly to their subordinate.
12. STABILTY OF STAFF: A high employee turnover rate undermines the efficient
functioning of an organization.
13. INITIATIVE: Subordinate should be given the freedom to conceive and carry out
their plans even though some mistake may result.
14. ESPRIT DE CROPS: Promoting team spirit will give the organization a sense of
unity. To Fayol even the small factor help to develop the spirit. He suggested for example
the use of verbal communication instead of formal, written communication whenever
possible.
4 Explicate the different types of business organisation [May 2005, Dec 2016, May 2017,
May 2019] (13M)BTL2
Answer: Page 1.46-Dr. G.K. Vijayaraghavan
Business organisation (2M)
According to Urwick and Hunt, “A business is an enterprise which distributes or provides an
article or services where other members of the community need and they are able and willing
to pay for it”.
Types of business organization(1M)
 Sole proprietorship
 Partnership
 Joint stock company
 Co-operative enterprises
 Public enterprise
Sole proprietorship(2M)
A Business unit that is owned and controlled by a single individual is known as sole trading
or sole proprietorship concern. He uses his own savings for running the business. The sole
trader makes all purchases and sells on his own and maintains all the accounts. He alone
enjoys all the profits and bears all the losses.
Ex: A Fancy store.
Partnership(2M)
A partnership is an association of two or more persons to carry on business and to share its
profit and losses. The relation of a partnership arises from contract. The maximum number
of partners is limited to 10 in the case of banking business and 20 in the case of other
business.
Ex: Chand & Co.
Joint stock company(2M)
“By a Company we mean an association of many persons who contribute money or money’s
worth to a common stock and employs it in some trade or business and also shares the profit
and loss as the case may be arising there from”.
There are two types of Joint stock companies:-
* Private Limited company – Ex: M/s Key Media Pvt. Ltd.

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* Public Limited company – Ex: M/s Pearl credits Ltd.

Co-operative enterprises(1M)
A Co-operative enterprise is a voluntary association of persons for mutual benefit and its
aims are accomplished through self-help and collective effort. It may be described as a
protective device used by the relatively less strong sections of society to safeguard their
economic interests in the face of exploitation by producers and sellers working solely for
maximizing profits.
Ex: AAVIN Milk Federation Cooperative Society.
Public sector enterprise(1M)
Public enterprise or State enterprise is an undertaking owned and controlled by the local or
state or central government. They are financed and managed by the government. They are
started with a service motive.
Ex: NLC Ltd.
Private limited company(1M)
A Private limited company is a company which has a minimum paid up capital as may be
prescribed. It can be incorporated with just two persons. It can have a maximum of 50
members. It cannot go in for a public issue. It restricts the transfer of its shares. It is
particularly suitable for industrial ventures which can get many concessions in respect of
income tax.
Ex: M/s Key Media Pvt. Ltd.
Public limited company(1M)
A Public limited company should have a minimum of 7 members and the maximum limit is
unlimited. It can issue shares to the Public. The financial statement should be sent to all the
members and to the Registrar of Companies. The shares of a public limited company can be
transferred by the members to the others without any restriction by the company. Such
transfers are made through organized markets called ‘stock markets’ or ‘stock exchanges’.
Ex: M/s Pearl credits Ltd.
5 Enumerate the trends and challenges of management in globalised era [Dec 2012, May
2013, May 2014, Dec 2017]BTL2
(or) Explain about the major tendencies favouring the development of a unified global
theory of management. [May 2007, May 2010, May 2011] BTL2
Answer: Page 1.81-Dr. G.K. Vijayaraghavan (13M)
Changes in socio economic and political conditions are bound to bring the changes in the
environment within the organizations
i. Workforce diversity
ii. Changing demographics of workforce
iii. Changing employee expectations
iv. Internal environment
v. Building organizational capabilities
vi. Job design and organizational structure
vii. Changing psycho social system
viii. technological advances
ix. Management of human relations
x. Changes in legal environment
xi. Change in industrial relations
xii. Expanding Globalization

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6 Enlighten the relevance of environmental factors that affects global business [Dec 2012,
May 2018] (16M)BTL4
Answer: Page 1.75-Dr. G.K. Vijayaraghavan
The factors which may affect the way of business is operated is called environmental factors.

The organizational environment is the set of forces surrounding an organization that have the
potential to affect the way it operates and its access to scarce resources. The organization
needs to properly understand the environment for effective management.
Scholars have divided these environmental factors into two main parts as,
a) Internal Environment,
b) External Environment.
Internal Environment
The internal environment consists of the organization's owners, board of directors,
regulators, physical work environment and culture. In the internal environment include
strength and weakness of an organization.
Elements of internal environment are:
1. Trade union
2. Management
3. Current employee
4. Shareholders.
External Environment:
As per the Daft theory (1997) , An organization's environment is defined as all the elements
existing outside the boundary of the organization that have the potential to affect all or part
of the organization Examples include government regulatory agencies, competitors,
customers, suppliers, and pressure from the public. Daft (1997) identified 10 environmental
sectors that may have an impact on particular organizations: 1)industry, 2) raw materials, 3)
human resources, 4) financial resources, 5) markets, 6) technology, 7) general economy, 8)

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government/legal, 9) sociocultural, 10) international. Each of these sectors may be divided

into two basic components.
They are: 1) Task (Specific) Environment: 2) General Environment.

Task Environment: Task environment is composed of the specific dimensions of the

organization's surrounding that are very likely to influence of the organization. It also
consists of five dimensions: Competitors, Customers, and Employees, Strategic, Planners
and suppliers.

General Environment: General environment is composed of the nonspecific elements of

the organization's surrounding the might affect its activities. It consists of five dimensions:

(a) Economic Factor Economic factors refer to the character and direction of the economic
system within which the firm operates. Economic factors include
 The balance of payments,
 The state of the business cycle,
 The distribution of income within the population, and
 Governmental monetary and fiscal policies.
The impact of economic factors may also differ between industries. BALANCE OF
PAYMENTS. The balance of payments of a country refers to the net difference in value of
goods bought and sold by citizens of the country. To decrease the value of goods imported
into a country, it is common practice to construct barriers to entry for particular classes of
products. Such practices reduce competition for firms whose products are protected by the
trade barriers.
Example: Mexico has limited the number of automobiles that can be imported. The purpose
of this practice is to stimulate the domestic automobile market and to allow it to become
large enough to create economies of scale and to create jobs for Mexican workers. A side
effect of the import restriction, however, has been an increase in the price and a decrease in
the quality of automobiles available to the public.
Another potential consequence of import restrictions is the possibility of reciprocal import
restrictions. Partially in retaliation to import restriction on Japanese televisions and
automobiles by the United States, the Japanese have limited imports of agricultural goods
from the United States. Lowering trade restrictions as a means of stimulating the economy of
a country may meet with mixed results. The North American Free Trade Agreement
(NAFTA) has opened the borders between the United States, Canada, and Mexico for the
movement of many manufacturers. Government officials in the United States argue the
results have been positive, but many local communities that have lost manufacturing plants
question the wisdom of the agreement. BUSINESS CYCLE The business cycle is another
economic factor that may influence the operation of a firm. Purchases of many durable goods
(appliances, furniture, and automobiles) can be postponed during periods of recession and
depression, as can purchases of new equipment and plant expansions. Economic downturns
result in lower profits, reductions in hiring, increased borrowing, and decreased productivity
for firms adversely affected by the recession. Positive consequences of recessions may
include reductions in waste, more realistic perceptions of working conditions, exit of
marginally efficient firms, and a more efficient system.

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INCOME DISTRIBUTION
The distribution of income may differ between economic systems. Two countries with the
same mean (per capita) income levels may have dramatically different distributions of
income. The majority of persons in the country are considered middle income, with only a
relatively small number of persons having exceptionally high or low incomes.
Many developing countries have citizens who are either extremely wealthy or extremely
poor. Only a few persons would qualify as middle class. Therefore, although both countries
had the same mean income, opportunities to market products to the middle class would be
greater in the United States.
TRANSFER PAYMENTS.
Transfer payments (e.g., welfare, social security) within the country change the distribution
of income. Transfer payments provide money to individuals in the lower income brackets
and enable them to purchase goods and services they otherwise could not afford. Such a
redistribution of income may not be the practice in other economic systems. Thus, large
numbers of people in need of basic goods and services do not assure that those people will be
able to purchase such goods and services.
MONETARY AND FISCAL POLICIES.
Monetary and fiscal policies utilized by the federal government also influence business
operations. Monetary policies are controlled by the Federal Reserve System and affect the
size of the money supply and interest rates. Fiscal policies represent purchases made by the
federal government.
Example : Allocation of funds to defense means expenditures for weapons and hardware. If
appropriations had gone to the Health and Human Services and Education Departments
instead, much of the money would have constituted transfer payments. The primary
beneficiaries of such a fiscal policy would be firms in the basic food and shelter businesses.
No matter how government expenditures are reallocated, the result is lost sales and cut
budgets for some companies and additional opportunities for others.
(b) Technological Factor Technology is another aspect of the environment a firm should
consider in developing strategic plans. Changing technology may affect the demand for a
firm's products and services, its production processes, and raw materials. Technological
changes may create new opportunities for the firm, or threaten the survival of a product,
firm, or industry. Technological innovation continues to move at an increasingly rapid rate.
DEMAND Technology can change the lifestyle and buying patterns of consumers. Recent
developments in the field of microcomputers have dramatically expanded the potential
customer base and created innumerable opportunities for businesses to engage in business
via Internet. Whereas computers were traditionally used only by large organizations to
handle data processing needs, personal computers are commonly used by smaller firms and
individuals for uses not even imagined fifteen years ago. Similarly, new developments in
technology led to a reduction in prices for computers and expanded the potential market.
Lower prices allow computers to be marketed to the general public rather than to business,
scientific, and professional users—the initial market.
Technology may also cause certain products to be removed from the market. Asbestos-
related illnesses have severely limited asbestos as a resource used in heat-sensitive products
such as hair dryers. Further, a number of chemicals that have been commonly used by
farmers to control insects or plants are prohibited from use or require licensure as a
consequence of those chemicals appearing in the food chain.

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PRODUCTION PROCESSES Technology also changes production processes. The

introduction of products based on new technology often requires new production techniques.
New production technology may alter production processes. Robotics represents one of the
most visible challenges to existing production methods. Robots may be used in positions
considered hazardous for people or that require repetitive, detailed activities. The
consequences for other jobs currently occupied by people are not clear. When production
was first automated, although some workers were displaced, new jobs were created to
produce and maintain the automated equipment. The impact of robotics on jobs is in large
part a function of the uses made of the technology and the willingness of workers to learn to
use new technology. In some industries, use of robots during the early 2000s increased
production and efficiency but resulted in significant numbers of job losses. However,
technological innovation can also result in increased job growth.
Example: Ford Motor Company's $375-million technology update to its Norfolk assembly
plant to build its 2004 F-150 resulted in the ability to build more models on its assembly line
and consequently created about 270 new jobs, an 11 percent increase.
EVALUATING TECHNOLOGICAL CHANGES There is little doubt that technology
represents both potential threats and potential opportunities for established products.
Products with relatively complex or new technology are often introduced while the
technology is being refined, making it hard for firms to assess their market potential.
Example: When ballpoint pens were first introduced, they leaked, skipped, and left large
blotches of ink on the writing surface. Fountain pen manufacturers believed that the new
technology was not a threat to existing products and did not attempt to produce ball-point
pens until substantial market share had been lost
Another technology, the electric razor, has yet to totally replace the blade for shaving
purposes. Perhaps the difference is that the manufacturers of blades have innovated by
adding new features to retain customers. Manufacturers of fountain pens did not attempt to
innovate until the ballpoint pen was well established. It is quite difficult to predict the impact
of a new technology on an existing product. Still, the need to monitor the environment for
new technological developments is obvious. Attention must also be given to developments in
industries that are not direct competitors, since new technology developed in one industry
may impact companies and organizations in others.
(c) Sociocultural The sociocultural dimensions of the environment consist of customs,
lifestyles, and values that characterize the society in which the firm operates. Socio-cultural
components of the environment influence the ability of the firm to obtain resources, make its
goods and services, and function within the society. Sociocultural factors include anything
within the context of society that has the potential to affect an organization. Population
demographics, rising educational levels, norms and values, and attitudes toward social
responsibility are examples of sociocultural variables. POPULATION CHANGES Changes
in population demographics have many potential consequences for organizations. As the
total population changes, the demand for products and services also changes. For instance,
the decline in the birthrate and improvement in health care have contributed to an increase in
the average age of the population in the country. Many firms that traditionally marketed their
products toward youth are developing product lines that appeal to an older market.
Example: Clothing from Levi Strauss & Co. was traditionally popular among young adults.
While its popularity in this market has waned, the firm has been able to develop a strong
following in the adult market with its Dockers label.

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Other firms are developing strategies that will allow them to capitalize on the aging
population. Firms in the health-care industry and firms providing funeral services are
expected to do well give the increasing age of the country population.
RISING EDUCATIONAL LEVELS. Rising educational levels also have an impact on
organizations. Higher educational levels allow people to earn higher incomes than would
have been possible otherwise. The increase in income has created opportunities to purchase
additional goods and services, and to raise the overall standard of living of a large segment
of the population. The educational level has also led to increased expectations of workers,
and has increased job mobility. Workers are less accepting of undesirable working
conditions than were workers a generation ago. Better working conditions, stable
employment, and opportunities for training and development are a few of the demands
businesses confront more frequently as the result of a more educated workforce.
NORMS AND VALUES Norms (standard accepted forms of behaviour) and values
(attitudes toward right and wrong) are differ across time and between geographical areas.
Lifestyles differ as well among different ethnic groups. As an example, the application in the
United States of Japanese-influenced approaches to management has caused firms to re-
evaluate the concept of quality. Customers have also come to expect increasing quality in
products. Many firms have found it necessary to re-examine production and marketing
strategies to respond to changes in consumer expectations.
SOCIAL RESPONSIBILITY Social responsibility is the expectation that a business or
individual will strive to improve the welfare of society. From a business perspective, this
translates into the public expecting businesses to take active steps to make society better by
virtue of the business being in existence. Like norms and values, what is considered socially
responsible behaviour changes over time. In the 1970s agreeing action was a high priority.
During the early part of the twenty-first century prominent social issues were environmental
quality (most prominently, recycling and waste reduction) and human rights, in addition to
general social welfare. More than just philanthropy, social responsibility looks for active
participation on the part of corporations to serve their communities.
(d) Political-Legal Factor The political-legal dimension of the general environment also
affects business activity. The philosophy of the political parties in power influences business
practices. The legal environment serves to define what organizations can and cannot do at a
particular point in time.
ATTITUDES TOWARD BUSINESS A pro-business attitude on the part of government
enables firms to enter into arrangements that would not be allowed under a more anti-
business philosophy. The numerous joint ventures between U.S. and Japanese automobile
manufacturers could have been termed anticompetitive by a less pro-business administration.
The release of many acres of government land for business use (logging, mining) angered
many environmentalists who had been able to restrict business use of the land under previous
administrations. Changes in sentiments toward smoking and its related health risks have
altered the public's attitude toward the tobacco industry. These changes have been reflected
in many organizations by limiting smoking to designated areas or completely prohibiting it at
work. The transformation in attitude has also caused firms within the tobacco industry to
modify marketing strategies, encouraging many to seek expansion opportunities abroad.
LEGISLATION The legal environment facing organizations is becoming more complex and
affecting businesses more directly. It has become increasingly difficult for businesses to take
action without encountering a law, regulation, or legal problem. A very brief listing of

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significant laws that affect business would include legislation in the areas of consumerism,
employee relations, the environment, and competitive practices. Many of the laws also have
an associated regulatory agency.
LEVELS OF GOVERNMENT INFLUENCE We generally speak about "the government" as
referring to the federal government. It is the federal government that passes and enforces
legislation concerning the entire country. Actions by the federal government affect a large
number of firms and are consistent across state boundaries. Environmental analysis,
however, should not overlook actions by both state and local governments. Regulations
concerning many business practices differ between states. Tax rates vary widely. Laws
regarding unionization (e.g., right-to-work states) and treatment of homosexual workers
differ between states. Local governments have the potential to affect business practices
significantly. Some local governments may be willing to provide incentives to attract
business to the area. Some may build industrial parks, service roads, and provide low-interest
bonds to encourage a desirable business to move into the community. Regulatory measures
such as building codes and zoning requirements differ significantly between communities.
Infrastructure such as electric and sewer services, educational facilities, and sewage
treatment capabilities may not be able to accommodate the increased demand associated with
certain industries, making that locale unsuitable for establishing some businesses.
(e) International Factor A final component of the general environment is actions of other
countries or groups of countries that affect the organization. Governments may act to reserve
a portion of their industries for domestic firms, or may subsidize particular types of
businesses to make them more competitive in the international market. Some countries may
have a culture or undergo a change in leadership that limits the ability of firms to participate
in the country's economy.
ECONOMIC ASSOCIATIONS One of the most recent joint efforts by governments to
influence business practices was NAFTA. The agreement between the United States,
Canada, and Mexico was intended to facilitate free trade between the three countries. The
result has been a decrease in trade barriers between them, making it easier to transport
resources and outputs across national boundaries. The move has been beneficial to many
businesses, and probably to the economies of all three countries. In most economic
associations, preference is also given to products from member countries at the expense of
products from non-members. Probably the best-known joint effort by multiple countries to
influence business practices is the Organization of Petroleum Exporting Countries (OPEC).
The formation of OPEC, an oil cartel including most major suppliers of oil and gas, led to a
drastic increase in fuel prices. Rising fuel prices had a significant effect on the demand for
automobiles worldwide. The increases in oil prices also contributed to inflation all over the
world. OPEC's early success encouraged countries producing other basic products (coffee
beans, sugar, bananas) to attempt to control the prices of their products.
INTERGOVERNMENTAL RELATIONS Changing relationships between the United States
and other countries may alter the ability of firms to enter foreign markets. The United States'
establishment of trade relations with China in the 1970s created opportunities for many firms
to begin marketing their products in China. The rise of Ayatollah Ruhollah Khomeini to
power in Iran altered the lives of many Iranian citizens. Wine, vodka, music, and other forms
of entertainment were prohibited. Black markets provided certain restricted items. Other
products, such as wine, began to be produced at home.
7 Describe the distinction between administration and management [May 2010, May

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2011, May 2012] (4M)BTL4

Answer: Page 1.10-Dr. G.K. Vijayaraghavan
Administration Management
Higher level of functions Lower level of fuctions
Refers to the owners of the Refers to the employees
organisation
Concerned with decision making Concerned with execution of
decision
Acts through the management Acts through the organisation
8 Is management is science or art? Discuss. [Dec 2006, May 2007, May 2016, Dec 2018]
(8M)BTL2
Answer: Page 1.8-Dr. G.K. Vijayaraghavan
Managing: Science or Art?
The best response to the question of whether management is an art or a science is that it is
both. Managing, like all other practices (e.g., music composition, medicine, or even tennis) is
an art. To manage effectively, peoples must have not only the necessary abilities to lead but
also a set of critical skills acquired through time, experience, and practice. If we define art as
a personal aptitude or skill, then management has certain artistic components. On the other
hand, the organized knowledge underlying the practice may be referred to as a science. To
perform at high levels in a variety of situations, managers must be able to draw on the
sciences - particularly economics, sociology, mathematics, political science, psychology, and
political science - for assistance and guidance. The tasks of modern managers require the use
of techniques, practices, and skills. In this context science and art not mutually exclusive but
complementary.
Management as an Art (4M)
Art involves the systematic application of theoretical knowledge and personal skills to
achieve desired results. The function of art is to effect change and to bring about desired
results through deliberate efforts. Art represents 'how' of human behaviour because it is the
know-how to accomplish concrete practical results. Art is a personalized process as every
artist has his own style. Art is essentially creative and the success of an artist is measured by
the results he achieves. A carpenter making furniture out of wood and a goldsmith shaping
gold into ornaments are examples of art. Art prescribes how to do things and it can be
improved through continuous practice. Art is result-oriented involving practical way of
doing specific things. It consists of bringing about desired results through the use of skills.
Art involves practical application of theoretical knowledge.
Management is essentially an art because of the following reasons:
(a) The process of management involves the use of knowledge and skills. Every manager has
to apply certain knowhow and skills while dealing with people.
(b) Management seeks to achieve concrete practical results, e.g., profits, service, etc.
According to Prof. John F. Mee, "management is the art of securing maximum results with a
minimum of effort so as to secure maximum prosperity and happiness for both employer and
employee and give the public best possible service."
(c) Like any other art, management is creative. It brings out new situations and makes
resources productive. In fact, management is one" of the most creative arts because it
requires moulding and welding the attitudes and behaviour of people at work for the

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accomplishment of specific goals in a changing environment. It is the art of securing desired

response from people. Management makes things happen.
(d) Like any other art, management is a personalized process. Every manager has his own
approach and technique depending upon his perception and the environmental conditions.
(e) As an art, management requires judgment and skills. The art of management can be
refined with continuous practice of management theories and principles. The art of
management is as old as human civilization. The importance of management art has
increased with rapid growth in the number size and complexity of organizations.
Management as a Science: (4M)
Science is an organized or systematized body of knowledge pertaining to a particular field of
enquiry. Science is systematized in the sense that it establishes cause and effect relationship
between different variables. Such systematized body of knowledge contains concepts,
principles and theories which help to explain past events and to predict the outcome of
specific actions. These principles are capable of universal application, i.e., they can be
applied under different situations. They represent fundamental truths derived through
empirical results. These principles or basic truths are developed through scientific methods
of continuous observation, experiment and testing. When generalizations or hypotheses are
empirically verified for accuracy through continuous observation and experimentation they
become principles. Science explains 'why' of human behaviour. Management is a science
because it contains all the characteristics of science. Firstly, there is a systematized body of
knowledge in management. Principles are now available in every function of management
and these principles help to improve managerial effectiveness. For instance, there are a
number of principles which serve as guidelines for delegating authority and thereby
designing an effective organization structure. Similarly, there are several techniques (ways of
doing things) in the field of management. Budgeting, cost accounting, ratio analysis, rate of
return on investment, critical path method (CPM), programed evaluation and review
technique (PERT) are some of these techniques which facilitate better management.
Secondly, principles of management have been developed through continuous observations
and empirical verification. Thirdly, management principles are capable of universal
application.
Thus management can be called both as an art and science.
9 Mention the scientific principles of management and also specify the features of
scientific management. [Dec 2007, May 2010]BTL4
Answer: Page 1.23-Dr. G.K. Vijayaraghavan
PRINCIPLES OF MANAGEMENT (8M)
The management activities are known as principles of management which are as follows:
 Forecasting and Planning,
 Organizing
 Commanding,
 Co-ordaining and
 Controlling
Forecasting and Planning
Planning means looking ahead or to foresee. To foresee means, “Both to assess the future
and make provision for it. To plan means to foresee and provide means for future.
The process of planning includes:

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1. The identification of organizational goals. The aim of any insurance company is to insure
life or property of the human being. The goal is to insure maximum number of person or the
property so that the risk can be spread on number of persons.
2. The line of action to be followed. Once aim is set to insurer human being or property then
the next step is how to insure human beings or property. The action will be to create a
Marketing Department for a company.
3. The various stages through which the action would pass: To sell the insurance product
only marketing department at one place i.e head office cannot achieve the results therefore
various offices at different location to be set up to sell the insurance products.
4. The method to be used to achieve the desired goals: The next issue comes how to sell the
insurance products. Whether it should be through Agents or Corporate Agent or Broker.
Accordingly the action of the insurance company will start to recruit the manpower.
Organizing
To organize means building up the dual structure, material and human of the organization.
To organize means to provide the organization with everything useful to its functioning raw
material, tools, capital and personnel.
Example: An insurance company may not require the raw material but it requires other
material i.e. tool (computers), capital and personnel. A sound organization should have the
following to achieve the good relationship between material and human.
A single competent and energetic guiding authority: There should be a single person to be
overall in-charge of the organization who will report to the Board of directors. Like Chief
Executing Officer (CEO) or Managing Director is appointed in all organization whether it is
insurance or other type of organization. Irrespective of the size of the organization.
Efficient selection of personnel: Any organization is run by the human beings therefore it is
always endeavour of the CEO /Managing Director to recruit the manpower weather technical
or finance or marketing the person should be intelligent and efficient. It saves the cost
because the efficient people understand the working of the organization and take the
decisions quickly. In an insurance industry the trained manpower is required because the
insurance policies ate technical in nature and requires lot of skill to make the understand to
the customer Clear definition of duties at all levels: The duties of each employee should be
defined to get the better results from the employees. If duties are not defined then the
employees will be confused what to do or not to do. In an insurance company the target
should be given to the marketing personnel to insure so many lives or property and being a
marketing function, it should not be assigned to Finance Department. Moreover there will be
many employees in the department the target should be given to the Head of the Department
and then he will assign the targets to his juniors at different locations.
Initiative and responsibility: The management should ensure that employees take initiative
to complete the job assigned to them. The employees should be held responsible for not
doing the things. In an insurance company the marketing team should be very strong to sell
the insurance products. The team should take initiative to meet the number of persons to get
the insurance business. The team should not wait for the instruction of their superiors to meet
the customers.
Minimum paper work: In the computer era the paper work can be reduced and the
employees of the organization should maximum use the computers to save paper work. In
insurance the marketing team should send the daily performance report through email which
will reduce the paper work.

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Reward & efficiency: The good performers should be awarded cash or noncash award
which boost the moral and efficiency of the employees.
Unit of command: Every employee should report to one superior not to more than otherwise
the performance and controlling of the employees will be very difficult.
Clear and precise decision making: Any decision taken by any employee should not be
ambiguous i.e double meaning because it creates confusion. Proper control of Disincentives
for faults and error: For any fault of any employee or non-performer should be penalized
otherwise it will affect the working of the performers. Supremacy of general interest in
relation to individual etc.: Any individual interest should not be clash with the organization
interest. The organization interest should be protected.
Commanding
It means setting the business going to get the desired optimum results from the subordinates.
The managers must possess the requisites personal qualities and knowledge to command
effectively.
The managers must
 Have a thorough knowledge of his personnel
 Have capacity to spot the right and competent workers so as to eliminate the
incompetent
 Set a good example i.e leadership
 Conduct periodic assessment or audit of performance
 Be well versed in agreement binding the business and its employees
 Have lively and constant touch with subordinates
 Aim at making unity, energy imitative and loyalty prevail among personnel
Coordinating
It means the process developed by a manger to secure an orderly pattern of group effort
among his personnel through unity of action to pursue the common goals. The coordination
should be within the resources available in the organization.
Controlling
The controlling means to ensure that everything is done in accordance with the established
rules and instruction given to the workmen. The purpose of control is to point out
weaknesses and errors in order to rectify them and prevent their recurrence.
The effective control must be Prompt, Followed with sanctions and include measure to
prevent recurrence of variances a or error
10 Discuss the various functions of management [Dec 2007, May 2009, May 2011, May
2012] (8M)BTL4
Answer: Page 1.6-Dr. G.K. Vijayaraghavan
Functions of management
Planning : Determination of short term and long term objectives Development of
strategies to achieve the objectives
Organizing : Identification of activities to achieve the objectives Matching job and
employees Establishing coordinating relationships
Leading :Staffing Manpower requirement Selection, training and development of
employees. Directing Communication Motivation leadership
Controlling : Establishing standard of performance Measuring current performance
Comparing Corrective action to rectify the deviation

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PART * C
1 “present global environment leads to the success of business”-comment [May 2011]
Answer: Page 1.81-Dr. G.K. Vijayaraghavan (12M)BTL4
Changes in socio economic and political conditions are bound to bring the changes in the
environment within the organizations
i. Workforce diversity
ii. Changing demographics of workforce
iii. Changing employee expectations
iv. Internal environment
v. Building organizational capabilities
vi. Job design and organizational structure
vii. Changing psycho social system
viii. technological advances
ix. Management of human relations
x. Changes in legal environment
xi. Change in industrial relations
xii. Expanding Globalization

UNIT II - PLANNING

Nature and purpose of planning – planning process – types of planning – objectives – setting
objectives – policies – Planning premises – Strategic Management – Planning Tools and
Techniques – Decision making steps and process.
PART * A
Q.
Questions
No
1 Define planning? [Dec 2008,Dec 2009, May 2018, May 2019]BTL1
Planning is a process of selecting the objectives & determining the course of action required
to achieve these objectives. Planning involves selecting missions and the objectives and the
actions to achieve them. It ends with decision making, which is choosing the best alternative
from the avail-able future courses of action. EG: The goal set for limited period like five
year plans
2 What are the objectives of planning?[May 2013, Dec 2013,May 2015] BTL2

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 It helps in achieving the objectives

 It is done to cope with uncertainly and range
 It helps in facilitating control and coordination
 It increase organizational effectiveness
3 What is meant by strategy? [May 2009, Dec 2012, Dec 2017, May 2019] BTL1
A strategy may be defined as special type of plan prepared for meeting the challenges posted
by the activities of competitors and other environment forces.
4 Define policies? [May 2014,Dec 2014, Dec 2016]BTL1
Policies are general statement or understanding which provides guidance in decisions
making to various managers.
5 Define MBO? [May 2011, May 2012, Dec 2016]BTL1
KOONTZ &WEIHRICH: Management by objectives (MBO) is defined as a comprehensive
managerial system that integrates many key managerial activities in a systematic manner and
that is consciously directed towards the effective and efficient achievement of organizational
and individual objective.
“MBO is a process whereby the superiors and the subordinate managers of an enterprise
jointly identify its common goals, define each individual major areas of responsibility in
terms of results expected of him, and use these measures as guides for operating the unit and
assessing the contribution of each of its members.” - GEORGE ODIORNE
6 Distinguish between strategic planning and tactical planning? [May 2014]BTL4
strategic planning tactical planning
Long range plan Medium range plan
Covers a time period up to 10 years Covers a time period of 1 to 2 years
Not detailed one Somewhat detailed
7 Mention the characteristics of programmed and non programmed decisions? [Dec
2016] BTL5
Programmed decisions are also called as routine decisions. These types of decisions are
taken frequently and they are repetitive in nature. Such decisions are generally taken by the
middle or lower level managers and have a short term impact.
Non programmed structures are also called strategic decisions. This decision is taken by the
top management people whenever the need arises. This decision deal with unique problems.
Such problems cannot be tackled in a predetermined manner.
8 Classify the various types of plans? [Dec 2012]BTL2

9 List the steps in decision making process [Dec 2013, May 2017] BTL5
 Recognize the need for a decision

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 Definition of the problem

 Search and develop the alternatives
 Evaluate the alternatives
 Selecting an alternative course of an action
10 Name any four quantitative forecasting techniques? [May 2013]BTL4
 Regression models
 Econometric models
 Economic indicators
 Substitution effect
11 Specify the strategic management processBTL2

12 Explain in brief about the two approaches in which the hierarchy of objectives can be
explained? BTL2
There are two approaches in which the hierarchy can be explained.
1. top-down approach 2. bottom-up approach
In the top-down approach, the total organization is directed through corporate objective
provided by the top-level management.
In the bottom up approach, the top level management needs to have information from lower
level in the form of objectives.
13 Define planning premises? [May 2018] BTL1
Planning premises are defined as the anticipated environment in which plans are expected to
operate. They include assumptions or forecasts of the future & known conditions that will
effects the operation of plans.
14 State the purpose of planning? [May 2012, May 2017]BTL4
 It helps in achieving objectives
 It helps in facilitating control
 It helps in coordination
 It increases organizational effectiveness
15 List the planning tools available in business management [May 2017]BTL5
1. Environmental assessment technique
 Environmental scanning

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 Forecasting methods
 Benchmarking
 Scheduling
 Breakeven analysis
 Linear programming
2. Contemporary planning tools
 Project management
 Contingency planning
16 Distinguish between policy and rules [Dec 2017]BTL4
Policies are general statement or understanding which provides guidance in decisions
making to various managers.
Rules are chronological orders of actions required to implement a policy and to achieve an
objectives.
17 Define corporate planning? [Dec 2014]BTL1
It is a process used by business to map out a course of action that will result in revenue
growth and increased profits.
18 What are the steps involved in strategic planning? [Dec 2018] BTL4
1. Mission and objectives. 2. Environmental analysis 3. Corporate analysis 4. Identification
of alternatives. 5. Strategic decision making 6. Implementations review & control.
19 Name the classification of planning premises? BTL2
1. Internal and external
2. Tangible and intangible premises.
3. Controllable and uncontrollable premises
20 Define Decision Making [May 2004, May 2006, Dec 2014] BTL1
Decision Making is defined as selection of a course of action from among alternatives. It is a
core of planning. A plan cannot be said to exist unless a decision – a commitment of
resources, direction or reputation has been made. Until that point, there is only planning
studies and analysis.
21 What are the three approaches in selecting an alternative? BTL3
1. Experience
2. Experimentation
3. Research and Analysis
Experience: Relying on post experience, the choice among alternatives is selected to avoid
mistakes.
Experimentation: A firm may test a new product in a certain market before expanding its
sale nationwide.
Research and Analysis: The trend in research and analysis is simulation i.e. to develop
mathematical tools.
22 What is tows metrics? BTL1
The tows metrics is a conceptual frame work for a systematic analysis, which facilitates
matching the external threats and opportunities with the internal weakness & strength of the
organization. In the tows metrics ‘T’ stands for threat’s’ stands for opportunities ‘W’ for
weakness and ‘S’ for Strength
23 Define Forecasting?BTL1
Forecasting is the process of predicting future conditions that will influence and guide the

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activities, behaviour and performance of the organization. EG: forecasting the output by
sales department.
24 List out the features of MBO? BTL3
 MBO is concerned with goal setting and planning for individual managers and their
units.
 The essence of MBO is a process of joint goal setting between a supervisor and a
subordinate.
 Managers work with their subordinates to establish the performance goals that are
consistent with their higher organizational objectives.
 MBO focuses attention on appropriate goals and plans.
25 List out the essentials required for policy formation? BTL5
 A policy should be definite, positive and clear. It should be understood by everyone
in the organization.
 A policy should be translatable into the practices.
 A policy should be flexible and at the same time have a high degree of permanency.
 A policy should be formulated to cover all reasonable anticipatable conditions.
 A policy should be founded upon facts and sound judgment.
 A policy should conform to economic principles, statutes and regulations.
26 How will you evaluate the importance of a decision? BTL4
(or) What do you understand by decision making? [Dec 2018] BTL2
 Decision making implies that there are various alternatives and the most desirable
alternative is chosen to solve the problem or to arrive at expected results.
 The decision-maker has freedom to choose an alternative.
 Decision-making may not be completely rational but may be judgemental and
emotional.
 Decision-making is goal-oriented.
 Decision-making is a mental or intellectual process because the final decision is
made by the decision-maker.
 A decision may be expressed in words or may be implied from behaviour.
 Choosing from among the alternative courses of operation implies uncertainty about
the final result of each possible course of operation.
PART * B
1 What is planning? Explain the steps involved in planning? [Dec 2004, May 2005, Dec
2006, May 2009, Dec 2009, May 2010, May 2011, May 2012, May 2013, Dec 2013, May
2014, Dec 2014, May 2017, May 2019] BTL4 (or)
What are the objectives of planning? Illustrate how you will set objectives for a
manufacturing organization. [Dec 2018] BTL4
Answer: Page 2.1-2.6-Dr. G.K. Vijayaraghavan
Definition According to Koontz O'Donnel - "Planning is an intellectual process, the
conscious determination of courses of action, the basing of decisions on purpose, acts and
considered estimates".
Nature of Planning
 Planning is goal-oriented: Every plan must contribute in some positive way towards
the accomplishment of group objectives. Planning has no meaning without being

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related to goals.
 Primacy of Planning: Planning is the first of the managerial functions. It precedes all
other management functions.
 Pervasiveness of Planning: Planning is found at all levels of management. Top
management looks after strategic planning.
 Middle management is in charge of administrative planning. Lower management has
to concentrate on operational planning.
ordering to the quality of the mind of the manager.
Purpose of Planning

 To manage by objectives: All the activities of an organization are designed to achieve

certain specified objectives. However, planning makes the objectives more concrete
by focusingattention on them.
 To offset uncertainty and change: Future is always full of uncertainties and
changes.Planning foresees the future and makes the necessary provisions for it.
 To secure economy in operation: Planning involves, the selection of most profitable
courseof action that would lead to the best result at the minimum costs.
 To help in co-ordination: Co-ordination is, indeed, the essence of management, the
planning is the base of it. Without planning it is not possible to coordinate the
different activitiesof an organization.
 To make control effective: The controlling function of management relates to the
comparison of the planned performance with the actual performance. In the absence
of plans, a management will have no standards for controlling other's performance.
 To increase organizational effectiveness: Mere efficiency in the organization is not
important; it should also lead to productivity and effectiveness. Planning enables the
manager to measure the organizational effectiveness in the context of the stated
objectives and take further actions in this direction.
Features of Planning
 It is primary function of management.
 It is an intellectual process
 Focuses on determining the objectives
 Involves choice and decision making
 It is a continuous process
 It is a pervasive function
Planning Process
The various steps involved in planning are given below
Perception of Opportunities Although preceding actual planning and therefore not strictly a
part of the planning process, awareness of an opportunity is the real starting point for
planning. It includes a preliminary look at possible future opportunities and the ability to see
them clearly and completely.
Establishing Objectives
The first step in planning itself is to establish objectives for the entire enterprise and then for
each subordinate unit. Objectives specifying the results expected indicate the end points of
what is to be done, where the primary emphasis is to be placed, and what is to be
accomplished by the network of strategies, policies, procedures, rules, budgets and

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programs. Enterprise objectives should give direction to the nature of all major plans which,
by reflecting these objectives, define the objectives of major departments. Major department
objectives, in turn, control the objectives of subordinate departments, and so on down the
line.
Considering the Planning Premises
Another logical step in planning is to establish, obtain agreement to utilize and disseminate
critical planning premises. These are forecast data of a factual nature, applicable basic
policies, and existing company plans. Premises, then, are planning assumptions – in other
words, the expected environment of plans in operation. This step leads to one of the major
principles of planning. The more individuals charged with planning understand and agree to
utilize consistent planning premises, the more coordinated enterprise planning will be.
Planning premises include far more than the usual basic forecasts of population, prices,
costs, production, markets, and similar matters. Because the future environment of plans is
so complex, it would not be profitable or realistic to make assumptions about every detail of
the future environment of a plan.
Identification of alternatives
Once the organizational objectives have been clearly stated and the planning premises have
been developed, the manager should list as many available alternatives as possible for
reaching those objectives. The focus of this step is to search for and examine alternative
courses of action, especially those not immediately apparent. There is seldom a plan for
which reasonable alternatives do not exist, and quite often an alternative that is not obvious
proves to be the best. The more common problem is not finding alternatives, but reducing the
number of alternatives so that the most promising may be analyzed. Even with mathematical
techniques and the computer, there is a limit to the number of alternatives that may be
examined. It is therefore usually necessary for the planner to reduce by preliminary
examination the number of alternatives to those promising the most fruitful possibilities or
by mathematically eliminating, through the process of approximation, the least promising
ones.
Evaluation of alternatives
Having sought out alternative courses and examined their strong and weak points, the
following step is to evaluate them by weighing the various factors in the light of premises
and goals. One course may appear to be the most profitable but require a large cash outlay
and a slow payback; another may be less profitable but involve less risk; still another may
better suit the company in long–range objectives. If the only objective were to examine
profits in a certain business immediately, if the future were not uncertain, if cash position
and capital availability were not worrisome, and if most factors could be reduced to definite
data, this evaluation should be relatively easy. But typical planning is replete with
uncertainties, problems of capital shortages, and intangible factors, and so evaluation is
usually very difficult, even with relatively simple problems. A company may wish to enter a
new product line primarily for purposes of prestige; the forecast of expected results may
show a clear financial loss, but the question is still open as to whether the loss is worth the
gain.
Choice of alternative plans
An evaluation of alternatives must include an evaluation of the premises on which the
alternatives are based. A manager usually finds that some premises are unreasonable and can
therefore be excluded from further consideration. This elimination process helps the manager

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determine which alternative would best accomplish organizational objectives.

Formulating of Supporting Plans
After decisions are made and plans are set, the final step to give them meaning is to
numberize them by converting them to budgets. The overall budgets of an enterprise
represent the sum total of income and expenses with resultant profit or surplus and budgets
of major balance– sheet items such as cash and capital expenditures. Each department or
program of a business or other enterprise can have its own budgets, usually of expenses and
capital expenditures, which tie into the overall budget. If this process is done well, budgets
become a means of adding together the various plans and also important standards against
which planning progress can be measured.
2 Classify the types of goals organizations might have and the plans they use for
accomplishment? [May 2008, Nov 2008, Dec 2017, May 2018]
(or)
Discuss in detail about the classification of planning practices? [Dec 2016, Dec 2017]
BTL 2
Answer: Page 2.10-Dr. G.K. Vijayaraghavan
Types of Plans / Components of Planning
In the process of planning, several plans are prepared which are known as components of
planning. Plans can be broadly classified as
Strategic plans
A strategic plan is an outline of steps designed with the goals of the entire organization as
awhole in mind, rather than with the goals of specific divisions or departments.
Tactical plans
A tactical plan is concerned with what the lower level units within each division must do,
how they must do it, and who is in charge at each level. Tactics are the means needed to
activate a strategy and make it work. Tactical plans are concerned with shorter time frames
and narrower scopes than are strategic plans. These plans usually span one year or less
because they are considered short-term goals. Long-term goals, on the other hand, can take
several years or more to accomplish. Normally, it is the middle manager's responsibility to
take the broad strategic plan and identify specific tactical actions.
Operational plans
The specific results expected from departments, work groups, and individuals are the
operational goals. These goals are precise and measurable. “Process 150 sales applications
each week” or “Publish 20 books this quarter” are examples of operational goals. An
operational plan is one that a manager uses to accomplish his or her job responsibilities.
Supervisors, team leaders, and facilitators develop operational plans to support tactical plans
(see the next section). Operational plans can be a single-use plan or a standing plan.
Contingency plans
Intelligent and successful management depends upon a constant pursuit of adaptation,
flexibility, and mastery of changing conditions. Strong management requires a “keeping all
options open” approach at all times — that's where contingency planning comes in.
Contingency planning involves identifying alternative courses of action that can be
implemented if and when the original plan proves inadequate because of changing
circumstances. Keep in mind that events beyond a manager's control may cause even the
most carefully prepared alternative future scenarios to go awry. Unexpected problems
andevents frequently occur. When they do, managers may need to change their plans.

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Anticipating change during the planning process is best in case things don't go as expected.
Management can then develop alternatives to the existing plan and ready them for use when
and if circumstances make these alternatives appropriate.
3 Define MBO. Describe the benefits and weakness of MBO and ways to overcome them.
[Dec 2004, May 2005, May 2009, May 2011, May 2018, Dec 2017] BTL 5
Answer: Page 2.29-Dr. G.K. Vijayaraghavan
KOONTZ &WEIHRICH: Management by objectives (MBO) is defined as a comprehensive
managerial system that integrates many key managerial activities in a systematic manner and
that is consciously directed towards the effective and efficient achievement of organizational
and individual objective.
“MBO is a process whereby the superiors and the subordinate managers of an enterprise
jointly identify its common goals, define each individual major areas of responsibility in
terms of results expected of him, and use these measures as guides for operating the unit and
assessing the contribution of each of its members.” - GEORGE ODIORNE
features of MBO
 MBO is concerned with goal setting and planning for individual managers and their
units.
 The essence of MBO is a process of joint goal setting between a supervisor and a
subordinate.
 Managers work with their subordinates to establish the performance goals that are
consistent with their higher organizational objectives.
 MBO focuses attention on appropriate goals and plans.
Benefits of MBO
 improvement of managing
 clarification of organization
 team work
 personnel satisfaction
 development of effective control
 fast decision making
weakness of MBO
 Failure to teach the philosophy of MBO
 Difficulty of setting goals
 Failure to give guidelines to goal setters
 Emphasis on short time goals
 Time consuming
 Paper work
4 Explain the various types of decision? [May 2004, May 2010, May 2012, May 2017,
May 2019] (or) Is decision making a rational process [Dec 2017] BTL 5
Answer: Page 2.79-Dr. G.K. Vijayaraghavan
Decision Making
It is defined as selection of a course of action from among alternatives. It is a core of
planning. A plan cannot be said to exist unless a decision – a commitment of resources,
direction or reputation has been made. Until that point, there is only planning studies and

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analysis.
importance of a decision
 Decision making implies that there are various alternatives and the most desirable
alternative is chosen to solve the problem or to arrive at expected results.
 The decision-maker has freedom to choose an alternative.
 Decision-making may not be completely rational but may be judgemental and
emotional.
 Decision-making is goal-oriented.
 Decision-making is a mental or intellectual process because the final decision is
made by the decision-maker.
 A decision may be expressed in words or may be implied from behaviour.
Choosing from among the alternative courses of operation implies uncertainty about the final
result of each possible course of operation.
Types of Decisions
Programmed decisions:
Programmed decisions are routine and repetitive and are made within the framework of
organizational policies and rules. These policies and rules are established well in advance to
solve recurring problems in the organization. Programmed decisions have short-run impact.
They are, generally, taken at the lower level of management.
Non-Programmed Decisions:
Non-programmed decisions are decisions taken to meet non-repetitive problems. Non-
programmed decisions are relevant for solving unique/ unusual problems in which various
alternatives cannot be decided in advance. A common feature of non-programmed decisions
is that they are novel and non-recurring and therefore, readymade solutions are not available.
Since these decisions are of high importance and have long-term consequences, they are
made by top level management.
Strategic and Tactical Decisions:
Organizational decisions may also be classified as strategic or tactical.
5 Explain the process of decision making with the help of an example? [May 2004, Dec
2005, May 2008, Dec 2008, May 2010, May 2011, May 2012, May 2013, May 2016, Dec
2016, May 2017, Dec 2018, May 2019]BTL5
Answer: Page 2.69-Dr. G.K. Vijayaraghavan
Specific Objective:
The need for decision making arises in order to achieve certain specific objectives. The
starting point in any analysis of decision making involves the determination of whether a
decision needs to be made.
Problem Identification:
A problem is a felt need, a question which needs a solution. In the words of Joseph L Massie
"A good decision is dependent upon the recognition of the right problem". The objective of
problem identification is that if the problem is precisely and specifically identifies, it will
provide a clue in finding a possible solution. A problem can be identified clearly, if
managers go through diagnosis and analysis of the problem. Diagnosis: Diagnosis is the
process of identifying a problem from its signs and symptoms.
Search for Alternatives:
A problem can be solved in several ways; however, all the ways cannot be equally satisfying.

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Therefore, the decision maker must try to find out the various alternatives available in order
to get the most satisfactory result of a decision. A decision maker
Evaluation of Alternatives:
After the various alternatives are identified, the next step is to evaluate them and select the
one that will meet the choice criteria. /the decision maker must check proposed alternatives
against limits, and if an alternative does not meet them, he can discard it. Having narrowed
down the alternatives which require serious consideration, the decision maker will go for
evaluating how each alternative may contribute towards the objective supposed to be
achieved by implementing the decision.
Choice of Alternative:
The evaluation of various alternatives presents a clear picture as to how each one of them
contribute to the objectives under question. A comparison is made among the likely
outcomes of various alternatives and the best one is chosen.
Action:
Once the alternative is selected, it is put into action. The actual process of decision making
ends with the choice of an alternative through which the objectives can be achieved.
Results:
When the decision is put into action, it brings certain results. These results must correspond
with objectives, the starting point of decision process, if good decision has been made and
implemented properly. Thus, results provide indication whether decision making andits
implementation is proper.

PART * C
1 Discuss how decision making under different conditions are made. [Dec 2004, May
2005, May 2014]BTL6
Answer: Page 2.81-Dr. G.K. Vijayaraghavan
 Decision under certainity
 Decision under uncertainity

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 Decision under risk

i. a priori probability
ii. empirical probability
subjective probability

UNIT III - ORGANISING

Nature and purpose – Formal and informal organization – organization chart – organization
structure – types – Line and staff authority – departmentalization – delegation of authority –
centralization and decentralization – Job Design - Human Resource Management – HR
Planning, Recruitment, selection, Training and Development, Performance Management ,
Career planning and management.
PART * A
Q.
Questions
No
1 Define Organization. BTL1
An identified group of people contributing their efforts towards the attainment of goals is
called an organization. Organization is the process of establishing relationships among the
members of the enterprise.
2 What is the purpose of Organization? BTL3
 Facilitates Administration
 Increases the efficiency management
 Stimulates creativity and innovation
 Facilitates growth and diversification and
 Facilitates co-ordination and communication.
3 What is organizing? [May 2011, May 2013]BTL2
Organizing refers to the formal grouping of people and activities facilitate achievement of
the firm’s objectives. Organizing may be defined as the process of i) Identifying and
classifying the required activities i.e. Job Design ii) Grouping the work to be performed i.e.,
Departmentation iii) Defining and delegating responsibility and authority i.e. Delegation of
authority iv) Span of Control
4 What is Job design? (or) Experiment the term design? [May 2018, May 2019] BTL5
Job design is usually broad enough to accommodate people’s needs and desires. It may be
especially appropriate to design jobs for exceptional persons in order to utilize their
potential. People spend a great deal of time on the job and it is therefore important to design
jobs so that individuals feel good about their work.
Two important goals of job design are,
 To meet the organizational requirements such as higher productivity, operational
efficiency, quality of products/service etc.
 To satisfy the needs of the individual employees like interests, challenge,

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achievement etc.
5 What is Organisation Structure? BTL2
In organisation structure simply by means the systematic arrangement of people working for
the organisation. The organisation is concerned with establishment of positions and
relationship between positions. The organisation structure has two dimensions. 1.
Horizontal 2. Vertical
6 What is an Organizational chart? [Dec 2017] BTL4
According to George Terry, “Organizational chart is a diagrammatical form, which shows
the important aspects of an organization including the major functions and their respective
relationships, the channels of supervision, and the relative authority of each employee who is
in charge of each respective function”. It is a representation of the framework or structure of
an organization. It may be a vertical or top-down chart, horizontal or left to right chart and
circle or concentric chart
7 Mention the uses of Organisation Chart BTL5
1. The organisation chart pinpoints the weakness of an organisation. This will helps to
overcome the short coming of organisation.
2. It tells quickly who is responsible for particular function.
3. It is useful in showing nature of an organisation and changes if any in the existing staff
and new comers.
8 Distinguish between authority and power BTL4
Power is the ability of individuals or groups to induce r influence the beliefs or actions of
other persons or groups.Authority in organisation is the right in a position to exercise
discretion in making decisions and affecting others.
9 What are the different bases of power? BTL2
1. Legitimate Power
2. Referent Power
3. Reward Power
4. Coercive Power
10 Define Functional Authority BTL1
It is the right which is delegated to an individual or a department to control specified
processes practices, policies or other matters relating to activities, undertaken by persons in
other departments.
11 Define formal organization? [May 2019] BTL1
The structure of jobs and positions with clearly defined functions and relationship as
prescribed by the top management and bound by rules, systems and procedures.
12 Define informal organization? BTL1
A network of interpersonal relationships that arise when people associate with each other.
13 Define departmentation? [Dec 2016] BTL1
The organizational process of determining how activities are to be grouped is called
departmentation. Departmentation is a means of dividing the large and complex organization
into smaller, flexible administrative units.
14 Define empowerment? BTL2
Empowerment means that employees, managers or teams at all levels in the organization are
given the power to make decision without asking their superiors for permission.
15 What is meant by delegation of authority? [May 2011, May 2012, May 2017]BTL2

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It is a process which enables a person to assign works to others and delegate them with
adequate authority to do it.
16 Define staffing [Dec 2014]BTL2
It 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 organisation.
17 What are the limitations of matrix organization structure [Dec 2013]BTL4
 Since use of this matrix means the use of multiple commands, managers often end up
with conflicts
 The organizational relationship becomes very complex and there is a great confusion
among personnel
18 What are the objectives of performance appraisal [May 2012]BTL5
 To find out individual potential identification
 To improve the management development
 To improve the employees performance
19 Differentiate decentralization and centralization? [May 2013/Dec 2013] BTL4
Decentralization is the tendency to disperse decision making authority in an organized
structure. It is a fundamental aspect of delegation.
Centralization is the process of transferring and assigning decision making authority to
higher levels of an organization hierarchy.
20 List down the different types of training? [May 2014]BTL2
i. Job rotation
ii. Apprenticeship and coaching
iii. Committee assignments
iv. Experience
v. Temporary promotions
21 What is meant by performance appraisal [Dec 2016]BTL1
It is the process of obtaining, analysing and recording information about the relative worth of
an employee. The focus of the performance appraisal is measuring and improving the actual
performance of the employee and also the future potential of the employee.
22 What is decentralization? [Dec 2012, May 2016]BTL1
Decentralization is the tendency to disperse decision making authority in an organized
structure. It is a fundamental aspect of delegation.
23 What is span of control? [May 2004, May 2007, May 2009, May 2011, May 2013] BTL2
It means the number of people managed effectively by a single superior in an organization.
The term Span of management is also known as span of supervision, span of authority and
span of responsibility.
24 Define authority and list out the sources of authority? [Dec 2014] BTL4
Authority is the right to give orders and the power to exact obedience.
Various sources are
i. Formal authority theory
ii. Acceptance authority theory
iii. Competence theory
25 Distinguish between authority and power [May 2018] BTL4
Authority Power
Authorities comes from the duties and Power is the possession of authority, control

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responsibilities delegated to a position or influence by which a person influences

holder in a bureaucratic structure the actions of others either by direct
authority or by some other more intangible
means
The authority of knowledge is often A prime source of power is the possession
independent of levels or positions of knowledge.
26 List the different types of departmentationBTL1
S.No Types of Departmentation
1 Departmentation by matrix
2 Departmentation by time.
3 Departmentation by Enterprise function
4 Departmentation by Territory or Geography
5 Departmentation by Customers
6 Departmentation by equipment or process
7 Departmentation by product or service.
27 Define centralization? [Dec 2018] BTL1
Centralization is the process of transferring and assigning decision making authority to
higher levels of an organization hierarchy.
28 What is human resource planning? [Dec 2018] BTL2
It 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 completion,
those tasks that will help the organization achieve its overall objectives.
29 Define career management? [Dec 2017] BTL1
It is a process for enabling employees to better understand and develop their career skills and
interests most effectively both within the company and after they leave the firm.
30 Why performance management is important? BTL4 [May 2017]
 To facilitate the organisation
 To simulate creativity and initiative
 To facilitate growth and diversification
PART * B
1 Explain the nature and purpose of organization. (13M) [Dec2006, Dec 2018]BTL2
Answer Page: 3.2 Dr. G.K. Vijayaraghavan
EXPLANATION:(13 M)
 DivisionofWork
 Coordination
 PluralityofPersons
 CommonObjectives
 Well-definedAuthorityandResponsibility
 OrganizationisaStructureofRelationship
 OrganizationisaMachineofManagement
 OrganizationisaUniversalProcess
2 Explain the concept of organisation process. (13M) [Dec 2007, May 2018] BTL2

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Answer Page. No.3.4 Dr. G.K. Vijayaraghavan

Explanation – (13 M)
 DeterminationofObjectives
 EnumerationofObjectives
 ClassificationofActivities
 AssignmentofDuties
 DelegationofAuthority
3 Bring out the Characteristicscentralization/Decentralization. Also highlight the merits
and demerits of centralization/Decentralization with examples. (13M) [May2008] BTL2
Answer Page. No.3.79 Dr. G.K. Vijayaraghavan
Characteristics (5 M)
 ·Philosophy / emphasis on: top-down control, leadership, vision, strategy.
 Decision-making: strong, authoritarian, visionary, charismatic.
 Organizational change: shaped by top, vision of leader.
 Execution: decisive, fast, coordinated.
 Able to respond quickly to major issues and changes. ·
 Uniformity Low risk of dissent, conflicts between parts of organization.
AdvantagesofCentralization: (2 M)
 Provide Power and prestige for manager
 Promote uniformity of policies, practices and decisions ·
 Minimal extensive controlling procedures and practices ·
 Minimize duplication of function
DisadvantagesofCentralization:(2 M)
 Neglected functions for mid-level less motivated beside personnel.
 Nursing supervisor functions as a link officer between nursing director
AdvantagesofDecentralization:(2 M)
 Raise morale and promote interpersonal relationships and Relieve from the daily
administration
 Bring decision-making close to action ·
 Promote employee’s enthusiasm and coordination ·
DisadvantagesofDecentralization:( 2 M)
 Top-level administration may feel it would decrease their status
 Managers may not permit full and maximum utilization of highly qualified
4 Discuss in detail about the Factors Affecting Span of control. BTL2(13M)
[May 2007, May 2013]
Answer Page. No.3.65: Dr. G.K. Vijayaraghavan
EXPLANATION:(13 M)
 Capacity ofSuperior
 Capacity ofSubordinates
 Nature ofWork
 DegreeofCentralization orDecentralization
 DegreeofPlanning

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 CommunicationTechniques.
 Use ofStaffAssistance
 Supervision ofothers
5 Describe the HR Planning process and objectives. [May 2007, Dec 2018] BTL2(13M)
Answer Page. No.2.7 & 2.17 Dr. G.K. Vijayaraghavan
Objectives: (4 M)
 Every organization has goals.
 To make a profit for the company's owners.
 Lowest cost for the greatest profit margin.
Process: (9 M)
The Best of Brian Tracy
 Assessing Human Resources
 Demand Forecasting
 Supply Forecasting
 Matching Demand And Supply
 Action Plan
6 Explain the methods of performance appraisal.BTL2 (13M) [May 2012]
Answer Page. No.3.145 Dr. G.K. Vijayaraghavan
Traditional methods: (7 M)
Modern Methods: (6 M)
TRADITIONAL METHODS
 Ranking method
The 'worth' of a job is usually based on judgements of skill, effort
 Paired comparison
Pairs to judge which of each entity is preferred
 Grading
Arrange in or allocate to grades; classify or sort based on output, result.
 Force distribution method
Evaluation method of forced distribution to check capacity of manpower
 Checklist method
A type of job aid used to reduce failure by compensating for potential limits of
human memory
 Critical incident method
Used for collecting direct observations of human behaviour, have critical significance
 Graphic scale method
To find Traits or behaviours that important for effective performance by graphs
 Essay method
A statement about employee being appraised
 Field review method
Appraisal is conducted by rater who does not belong to employees' department
 Confidential report

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 General assessment of work performed by a Government servant to reporting

authority
MODERN METHOD
 Management by Objectives
Model that aims to improve the performance of an organization by clearly defining
objectives 
 Behaviourally anchored rating scale
 Aims to combine the benefits of narratives, critical incidents, and quantified ratings
 Assessment canters
A process where candidates are assessed to determine their suitability 
 360 degree appraisal method
Employees receive confidential, anonymous feedback from the people who work
around them
 Cost accounting method
An activity or accomplishing a purpose are collected, classified, and recorded.
7 Distinguish between formal and informal organization. [Dec2012] BTL4(13M)
Answer Pg. No.3.11 Dr. G.K. Vijayaraghavan
Formal organization Informal orgaanization
Established with the explicit aim of achieving Spring on its own.
well defined goals
Bound together by authority relationships Characterized by a generalised
among members. sort of power relationships
Recognises certain tasks and activities Does not have any well-defined
tasks
The roles and relationships of people are The relationship among people
impersonally defined are interpersonal
Characterized by efficiency, discipline, Characterized by relative
consistency and control freedom, spontaneity, homeliness
and warmth.
8 Explain the significanceoforganization structure and the principles of organisation
structure. (13M) [May 2013,Dec 2013] BTL2
Answer Page. No.3.18 &3 Dr. G.K. Vijayaraghavan
Significance: (6 M)
 Improveteamworkandproductivity
 Organization structure, location ofdecision-making
 Creativethinkingandinitiative
 Growthofenterprisebyincreasingitscapacity
 Pattern ofcommunication andcoordination.
 Awareness to identify the roles.
Principles :(7 M)
 LineandStaffRelationships
 Departmentalization

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 SpanofControl
 De-centralizationandCentralization
9 Explain the types of organizational structures (13M) [Dec 2013, Dec 2017] BTL2
Answer Page : 3.18 Dr. G.K. Vijayaraghavan
EXPLANATION:(13 M)
 Line organizational structure.
 Staff or functional authority organizational structure.
 Line and staff organizational structure.
 Committee organizational structure.
 Divisional organizational structure.
 Project organizational structure.
 Matrix organizational structure
 Hybrid organizational structure.
10 Explain the different types of Departmentation. (13M) BTL2
Answer Page : 3.47 Dr. G.K. Vijayaraghavan
EXPLANATION:(13 M)
 Departmentation by function
Based on functions like, Production, Finance, Marketing etc
 Departmentation by Product
Based on Product like, Television, Radio, Laptop, camera etc.
 Departmentation by service
Based on service like, Loan, savings, Mutual funds, Money exchange in a bank
 Departmentation by Customer
Based on customers like, Regular customer, Occasional customer, Festival customer
etc
 Departmentation by process
Based on process like, cleaning, colouring, printing, cutting, packaging etc
 Departmentation by place
Based on place like, South zone, North zone, East zone, West zone
 Departmentation by Time
Based on tine like, Moring shift, evening shift, night shift.
11 Elaborate the merits and demerits of line and staff organisation (13M) BTL4 [May
2019]
PART * C
1 Enumerate in detail about the selection process which is widely followed in selecting IT
professionals. Also highlight the different types of interviews that can be used in the
selection process. (15M) [May2008, May 2018] BTL2(or)Illustrate the steps involved in
the recruitment process [May 2019]
Answer Page : 3.117& 3.120 Dr. G.K. Vijayaraghavan
Selection process:( 10 M)

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Interviews:( 5 M)

Selection Process
 Preliminary Interview
Sort of a filtering process used by recruiters to help them sort out best candidate
 Receiving Applications
It is used to process receipts for materials.
 Screening of Applications
Selecting candidates for interview who meet all minimum requirements
 Employment test
The practice of administering written, oral, or other tests
 Employment Interview
A conversation between a job applicant and a representative of an employer
 Checking References
When an employer contacts a job applicant's previous employers
 Physical examination
A medical examination to determine a person's bodily fitness.
 Final selection
Final hiring decision should completed
2 Define matrix organization. Why matrix organization is used? Discuss the problems
with matrix management and guidelines for making matrix management effective.
(15M) BTL2 [May 2009]
Answer Page : 3.60 Dr. G.K. Vijayaraghavan
Define:(2 M)
Themixedformsoforganizationarereferredtoasmatrixorgrid
organization’sAccordingtothesituations,thepatternsofOrganizingvariesfromcasetocase.
Theformofstructuremustreflectthetasks,goalsandtechnologyiftheoriginationsthetypeof

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peopleemployedandtheenvironmentalconditionsthatitfaces.Itisnotunusualtoseefirms
thatutilizethefunctionandprojectorganizationcombination.
Problems: (4 M)
 Feeling of ambiguity caused by employees moving from one project to another as
required by their line manager,
 Conflict of loyalty between line managers and project managers over the allocation
of resources — for instance, where groups neglect their usual duties and
responsibilities,
 The outcome of dual reporting is the loss of unity of command, which can lead to
problems of coordination and prioritisation,
 Project managers may experience problems of authority over their team members,
especially if they are from another department or team,
 Project management may fail to gain the support of other functional managers,
 If teams have a lot of independence they can be difficult to monitor, which is why the
agreements between project and line management are essential, and
 Costs can be increased if more project managers are created through the use of
project teams.
Diagram:(2 M)

Guidelines for Making Matrix Management Effective: (3 M)

 Define the objectives clearly
 Clarify the role, authority and responsibility of managers and team members
 Ensure that influence is based on knowledge and information, rather than on rank
 Balance the functional and project managers
 Select manager having thorough experience and capable of leadership
 Install appropriate cost, time and quality control system
 Rewards project managers and term members fairly
Uses: (2 M)
 Improves Workplace Communication

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 Boosts Team Concept

 Empowers Employees by Providing Greater Authority
3. Briefly discuss the types of training in a successful organisation. (15M) [ May2011, Dec
2017]BTL2
Answer Pg. No.3.131 Dr. G.K. Vijayaraghavan
On The Training: (6 M)
Off The Training: (9 M)

On the job Training

 Job Rotation
The practice of moving employees between different tasks to promote experience and
variety.
 Coaching
Client in achieving a specific personal or professional goal by providing training and
guidance
 Job Instruction
A step-by-step, relatively simple technique used to train employees on the job
 Committee assignment
A person or group of persons elected or appointed to perform some service or
function
 Internship training
Trainee works in an organization, sometimes without pay, in order to gain work
experience

Off the job training

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 Case study method

Analyzed with a view toward formulating general principles.
 Critical Incident method
Actions of an employee is recorded and examined during the critical situation.
 Role play
act out or perform the part of a person or character in training or psychotherapy
 In basket method
A test used by companies and governments in hiring and promoting employees
 Business Games
 Simulation gamesthat are used as an educational tool for teaching
 Grid Training
The comprehensive organization development programme developed by Blake and
Mouton
 Lectures
An educational talk to an audience, especially one of students in a university.
 Simulation
The production of a computer model of something, especially for the purpose of
study.
 Management education
A collective group of professionals that includes principals, teachers and
other education
 Conferences
A formal meeting of people with a shared interest on the specified area or domain.
4. Explain the methods of Recruitment in detail. (15M) (May/June 2009) BTL2
Answer Page : 3.111 Dr. G.K. Vijayaraghavan
INTERNAL SOURCES: (6 M)
EXTERNAL SOURCES: (9 M)

Internal Source
 Promotion
An activity, supports or encourages a cause, venture, or aim
 Departmental exam

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Basic test to know the interest, competency level

 Transfer
Move from one place to another
 Retirement
The action or fact of leaving one's job and ceasing to work
 Internal advertisement
Company will use internal sources of recruitment to fill a vacancy 
 Employee recommendation
organizations to identify potential candidates from their existing employees' social
networks
External Source
 Management consultant
Professional advice about how to run a company or organization more effectively.
 Employment agency
A business that finds employers or employees for those seeking them
 Campus recruitment
Employers undertake an organised program of attracting and hiring students
 Newspaper advertisement
Ads are generally used by businesses and corporations towards promotion 
 Internet advertisement
A form of marketing and advertising which uses the internet to deliver promotional
marketing
 Walk in interview
A prospective employee reaches the respective office or place without any prior
appointment

UNIT IV - DIRECTING

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Foundations of individual and group behaviour – motivation – motivation theories –

motivational techniques – job satisfaction – job enrichment – leadership – types and theories
of leadership – communication – process of communication – barrier in communication –
effective communication – communication and IT.
PART * A
Q.
Questions
No
1 Define Directing. BTL1
Directing may be defined as the process of instructing, guiding and inspiring human factors
in the organization to achieve organization objectives.
2 State two important characteristics of Directing.BTL4
Any two characteristics of Directing are:
 Directing is an important managerial function through which the management
initiates actions in the organisation.
 It is a continuous process and it continues throughout the life of the Organization.
3 Mention the importance of Leadership BTL2
 Motivating Employees
 Leader develops team work
 Better utilization of manpower
 Creating confidence to followers
 Directing group activities
 Building morale
 Maintaining discipline
4 Name the various leadership styles. [Dec 2018] BTL3
 Autocratic or Dictatorial leadership
 Participative or Democratic leadership
 Laissez – faire or Free – rein leadership
5 What are the advantages of democratic leadership? BTL2
 The subordinates are motivated by participation in decision – making process. This
will also increase job satisfaction
 Absence of leader does not affect output
 Labor absenteeism and turn – over will be minimum
 The quality of decision is improved
 The leader multiplies his abilities through the contribution of his followers.
6 What is laissez-faires BTL1
Complete freedom is given to the subordinates so that they plan, motivate, control and
otherwise be responsible for their own actions.
7 List out the human factors in managing.BTL4
The Human factors in managing include:
 Multiplicity of roles
 Individuality and
 Personal dignity.
8 Define creativity? BTL1
Creativity is defined as the ability to produce new and useful ideas through the combination

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of known principles and components in novel and non-obvious ways. Creativity exists
throughout the population largely independent of age, sex and education.
9 What are the steps involved in creative process? BTL4
Creativity is defined as the ability to produce new and useful ideas through the combination
of known principles and components in novel and non-obvious ways.
The steps involved in creative process are:
 Saturation
 Preparation
 Frustration and incubation
 Inspiration or illumination
 Verification
10 How are problems solved by creative tool? BTL3
Creativity tools are designed to help you devise creative and imaginative solutions to
problems. Creativity tools are designed to help you devise creative and imaginative solutions
to problems.
11 What is a SCAMPER tool? BTL2
SCAMPER is a checklist that helps us to think of changes where S - Substitute C -
Combine A - Adapt M - Modify P - Put to another use E - Eliminate and R - Reverse.
12 What is a meant by reframing matrix?BTL1
Reframing matrix is a simple technique that helps to look at business problems from a
number of different viewpoints. The approach relies on the fact that different people with
different experience approach problems in different experience approach in different ways.
13 What are the steps involved in simplex tool?BTL4
Simplex tool is an industrial-strength creativity tool.
The steps involved in simplex tool are:-
 Problem finding
 Fact finding
 Problem definition
 Idea finding
 Selection and evaluation
 Planning
 Sell data and
 Action.
14 Differentiate Innovation and Invention. BTL4
Innovation means the use of creative ideas. It is not only relevant to high-tech enterprises but
also crucial for old-line, traditional companies, which may not service without the infusion
of innovation. Ex: A new product or a service.
Invention means really finding new things that are not already available. It is mostly
applicable in the field of science. Ex: Invention of radio.
15 How can be harmonizing objectives achieved? BTL3
Harmonizing objectives can be achieved through:
 Mutual trust
 Cooperation and understanding and
 Workers participation in management.

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16 Define Multiplicity of Roles. BTL1

Individuals are not only the productive factor in management Plans. They are members of
social system of many organizations.
17 Mention the various factors involved in using motivational techniques?BTL4
 Money
 Reward : intrinsic and extrinsic
 Participation
 Quality of working life
18 What is job enrichment? [May 2015, May 2017, Dec 2017]BTL1
Building into jobs a higher sense of challenge and achievement. (or) Job enrichment is
therefore based on the assumption that in order to motivate personnel, the job itself must
provide opportunities for the achievement, recognition, responsibility, advancement and
growth.
19 What are the limitations of job enrichment? BTL2
1. Job enrichment is based on the assumption that workers want more responsibility. But, in
practice, most of the workers may prefer less responsible jobs with good social interaction.
Such workers may show feelings of inadequacy and fear of failure to job enrichment.
2. Some jobs cannot be enriched beyond a certain point.
20 Give the required guidelines to make effective job enrichment. BTL3
1. Use job enrichment selectively after taking into account situational variables such as job
characteristics, personal characteristics of employees, Organisational level etc.
2. Provide a supportive climate for innovation and change.
21 Define Leadership [May 2019] BTL1
Leadership is the process of influencing the behaviour of others towards the accomplishment
of goals in a given situation. Leadership is the ability to influence others and enthusiastically
making them to achieve the desired results.
22 What is Communication? [Dec 2009]BTL1
Communication is passing of information from one person to another person with
understandable manner.
23 Mention the various elements in the process of communication [Dec 2014]BTL3
 Sender
 Communication Channels
 Symbols
 Receiver
 Noise and feedback in communication
24 List the different types of communication flow BTL4
i. Downward Communication
ii. Upward communication
25 Explain the creative process? BTL1
Creativity: Creativity is the ability to create large number of ideas quickly. Creative process
has interacting and over lapping phase.
It has four phases:
i. Unconscious Scanning
ii. Intuition
iii. Insight

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iv. Logical Formulation

Unconscious Scanning: A condition beyond consciousness. Intuition: It connects
unconscious with conscious Insight: It is the result of hard work Logical Formulation:
referred to as verification
26 What is brainstorming? [May 2013, May 2018]BTL2
This kind of training is given to increase people’s creativity and decisional ability. These
types of training individual participants are encouraged to give their own ideas to resolve the
existing problem
27 Comparetheory Xandtheory Y.BTL2
S.No Theory X Theory Y
1 The average human dislikes work Work is as natural as play or rest.
People are unambitious and prefer Ambitious and capable of directing
2 to be directed by other. their own.
They accept responsibility under
3 They avoid responsibility. proper conditions.
External control, threatening and
4 close supervision are required. Self directed and self are controlled.
28 What arethe fourbasic ingredients ofleadershipskill? OR Mention any two
leadership qualities.BTL1
 Physical qualities:Sound health, vitality, appearance, physical and nervous
energy, forcefulness, physique,enthusiasm.
 Intellectual qualities: High intelligence, sound judgment abilityto
teach,scientific approach, decisiveness, self understanding.
 Morale qualities:Integrity,moralcourage, fair play,willpower, senseof purpose,
objectivity.
 Social qualities: Abilityto inspire, tact, percussiveness,self-confidence,empathy,
initiative, knowledgeof human naturehuman relations attitude.
29 Differentiatesingle andmultiple channel networks.BTL4
S.No. Single channel communication Multiple channel communication
1 The communication is allowed on The communication is allowed in
only one path called as line authority. more than one path.
2 It is simply referred as through proper It is simply referred as through
channel. various channel.
3 Communication flow is slow Communication flow is faster,
4 Easy to maintain orderly in nature. Potential problems may occur.
5 Miscommunication reduced. Miscommunication is increased.
30 Definethe term“GrapeVine”.BTL2
Theinformation actuallytransmitted through the informal channels maybeinaccurate,
distorted, a half-truth, arumour,agossip, aprivate interpretation and sometimes truth.It is
called asgrapevine.
31 Define motivation [Dec 2012, May 2011, May 2014, May 2019] BTL1

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Sott defines, “Motivation means a process of stimulating people in action to accomplish

desired goals”
32 What are the elements in the Maslows hierarchy of needs? [Dec 2016] BTL4
i. Basic needs
ii. Safety needs
iii. Social needs
iv. Esteem needs
v. Self-actualisation needs
33 What do you mean by the term noise in communication? [May 2016] BTL3
Communication is affected by noise at any stage. It may be the sender, the transmission or
the receiver stage. If anyone is affected, the proper communication will not reach the
receiver. To ensure the effective communication, we have to provide noiseless environment.
34 Who is a leader? [Dec 2012] BTL1
Leader is one who influences people so that they will strive willingly and enthusiastically
towards achievement of the goal
35 What are the different types of management strategies involved in leadership? [May
2013] BTL4
 Autocratic leader
 Democratic
 Free-rein leader
 Paternalistic leadership
36 How does a leader differ from manager? [May 2015] BTL3
Leader is one who influences people so that they will strive willingly and enthusiastically
towards achievement of the goal
Manager influences by exercising planning, staffing, directing and controlling.
37 What is effective communication? [May 2007, Dec 2016] BTL1
If the message sent by the sender to the receiver is understood by the receiver in the same
series, it is called effective communication.
38 What is job satisfaction? [Dec 2017]BTL2
A pleasurable or positive emotional state resulting from the appraisal of one’s job or job
experiences.
39 Define personality? [May 2016, May 2017] BTL4
It is the combination of qualities form an individual’s distinctive character
40 What is meant by downward communication? [Dec 2018] BTL2
The information is sent from the higher level to the lower level.
41 What are the advantages of democratic leadership styles? [May 2018] BTL4
 Absence of leader does not affect the output
 The quality of decision is improved
PART * B
1 Explain the type of leadership with examples and write down the advantages and

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Disadvantages. (13M) [Dec 2006, Dec 2018] BTL3

Answer: Page :4.70 - Dr. G.K. Vijayaraghavan
LEADERSHIP STYLES
The leadership style we will discuss here are:
Autocratic style
 Characterized by individual control over all decisions and little input from group
members.
Disadvantages
More group hostility
More dependence on leader
More apathy in group
Slower execution of decisions
Advantages
More group productivity while leader watches
Group makes quicker decisions
Often does the task themselves as it is quicker
Pushes the group.
Democratic Style
 Members of the group take a more participative role in the decision-making process.
Disadvantages
Slower decision making
Less initial production
Leader can be unsure and makes everything a matter for group discussion.
Advantages
More individual responsibility
More friendliness
Better implementation
More personal growth
More motivation
Greater ultimate production
Laissez Faire Style
Leaders are hands-off and allow group members to make the decisions.
Disadvantages:
Less group satisfaction
Less group productivity
Poorer quality of work
Less personal growth
Jobs fall back on someone else or are not completed
Who takes credit or blame?
Advantages:

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No work for the leader

Frustration may force others into leadership roles
Allows the visionary worker the opportunity to do what they want, free from interference
Empowers the group
2 Explain dimension, advantages and disadvantages of job enrichment to maintain
competitiveness. (13M) [Dec 2006]BTL2
Answer: Page: 4.60 - Dr. G.K. Vijayaraghavan
INTRODUCTION: (2 M)
 Addition to a job of tasks that increase the amount of employee control or
responsibility.
 Job enrichment has its roots in Frederick Herzberg's two-factor theory, according to
which two separate dimensions contribute to an employee's behaviour at work.
DIMENSION: (4 M)
The first dimension:
 Hygiene factors, involves presence or absence of job dissatisfaction, such as wages,
working environment
The second dimension :
 Factors that satisfy higher-level needs.
Advantages of job enrichment : (4 M)
 Interesting and challenging job :-
When a certain amount of power is given to employees.
It makes the job more challenging for them.
 Improves decision making :-
Improve decision making ability of employee by asking him to decide.
Disadvantages of job enrichment : (3 M)
Workers have complete knowledge to take decisions and they have the right attitude.
Negative implications ie. Along with usual work decision making work is also given to
employees and not many may be comfortable with this.
3 Explain Maslow’s theory of motivation and compare and contrast XY theory. (13M)
[Dec 2007, May 2009, May 2017, Dec 2017, May 2018, Dec 2018, May 2019] BTL2
Answer: Page: 4.28 & 4.24 - Dr. G.K. Vijayaraghavan
EXPLANATION: (4 M)
 Physical: The basic need of human being such as water, air, food, dress.
 Security: The need of safety , shelter, stability
 Social : The need of being loved, belonging , Inclusion
 Ego: The need of self-esteem, Power, Prestige
 Self-actualisation: The need of development, Creativity.
DIAGRAM: (2 M)

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DIAGRAM: (2 M)

EXP
LANATION: (5 M)
 Theory X
 Managers tend to take a pessimistic view of their people
 Assume that they are naturally unmotivated, dislike work.
 Team members need to be prompted, rewarded, punished constantly to make sure
that they complete their tasks.
 Theory Y
 Managers have an optimistic, positive opinion of their people
 Use a decentralized, participative management style.
 This encourages a more collaborative , trust-based  relationship
4 Define communication. Explain the process of communication. [May2008, May 2012,
Dec 2013] (13M) BTL2
Answer: Page: 4.92 - Dr. G.K. Vijayaraghavan

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Define: (2 M)
AccordingtoKoontzandO'Donnell,"Communication,isanintercoursebywords,letters
symbolsormessages,andisawaythattheorganizationmemberssharesmeaningand
understandingwithanother".
DIAGRAM: (2 M)

EXPLANATION : (9 M)
 Sender : The person who send the message
 Encoding: The process of converting common language to machine language.
 Transmission: The process of selecting channel or method of communication
 Decoding: The process of converting machine language to common language
 Receiver: The person who receive the message
 Feedback: It is a source of acknowledging the message from receiver to sender
5 Briefly describe the individual and group behaviour (13M)BTL2
Answer: Page: 4.4 & 4.9 - Dr. G.K. Vijayaraghavan
Foundation of individual and group behaviour: (13 M)
 Individual level of analysis
Helps to identify the individual attitude and behavior
 Group level of analysis
Helps to identify the team attitude and behavior
 Organizational level of analysis
Helps to identify the entire organizational attitude and behavior
6 Explain the various types of organizational communication. (13M) [May 2007] BTL2
Answer: Page: 4.100 - Dr. G.K. Vijayaraghavan
Formal Communication: (6 M)
 DownwardCommunication
communication from top management to lower level management
 UpwardCommunication
communication from lower level management to top management
 HorizontalCommunication
communication between same set of people
InformalCommunicationorGrapevine: (7 M)
 Oral Communication
Communication by language through mouth
 Written Communication

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Communication by documents and proofs through hand writing

 Body language
Communication by signal and symbols through body actions
7 Briefly summarise Barriers in effective communication. (13M) [May 2007, May 2017,
Dec 2017, May 2018, May 2019] BTL2
Answer: Page: 4.103 & 4.105 - Dr. G.K. Vijayaraghavan
EXPLANATION: (13 M)
 Filtering
 SelectivePerception
 Emotions
 Language
 Stereotyping - Repeating the same concept
 StatusDifference
 UseofConflictingSignals
 ReluctancetoCommunicate
 Projection
 The"HaloEffect"- influencing the first impression
8 Explain the leadership theories in detail. (13M) [May2011] BTL2
Answer: Page: 4.75 - Dr. G.K. Vijayaraghavan
EXPLANATION: (13 M)
 GreatManTheory
The impact of great men, or heroes;
highly influential individuals who, due to either their personal charisma, intelligence,
wisdom, or political skill used their power.
 TraitTheory
Study of human personality.
 Trait theorists are primarily interested in measurement of traits,
 BehaviouralTheory
Theory of learning.
The idea that all behaviours are acquired through conditioning.
 ParticipativeLeadership
A managerial style that invites input from employees on all company decisions.
 SituationalLeadership
Manager of an organization must adjust his style to fit the development
 ContingencyTheory
There is no best way to organize a corporation, to lead a company
 TransactionalLeadership
Style of leadership that focuses on supervision, organization, and performance
 TransformationalLeadership
A leader works with teams to identify needed change, creating a vision to guide the change
through inspiration.

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9 Name the various motivation theories. Explain any three out of these theories.
(13M)BTL2 [May2011, May 2012]
Answer: Page: 4.23 - Dr. G.K. Vijayaraghavan
EXPLANATION: (13 M)
 McGregor’sTheoryXandTheoryY
Theory X is a conventional approach to motivation, based on negative assumptions.
Theory Y is diametrically opposite to theory X
 AbrahamMaslow’s“NeedHierarchyTheory
Subsequently extended the idea to include his observations of humans' innate curiosity.
 FrederickHerzberg’smotivation-hygienetheory
Factors in the workplace that cause job satisfaction, while a separate set of factors cause
dissatisfaction
 VictorVroom’sExpectancytheory
Individual will Behave or act in a certain way because they are motivated to select a specific
behaviour 
 Clayton Alderfer’s ERG theory
The existence group is concerned with providing the basic material existence requirements
of humans.
 McClelland’sTheoryofNeeds
It attempts to explain how the needs for achievement, power, and affiliation
 StaceyAdams’EquityTheory
It focuses on determining whether the distribution of resources is fair to both relational
partners.
 Skinner’sReinforcementTheory
It states that individual’s behaviour is a function of its consequences.
10 Discuss the GuidelinesforeffectiveCommunication. [May 2013] BTL2(13M)
Answer: Page: 4.105 - Dr. G.K. Vijayaraghavan
EXPLANATION: (13 M)
 Sendersofmessagemustclarifyintheirmindswhattheywanttocommunicate.
 Encodinganddecodingbedonewithsymbolsthatarefamiliartothesenderandreceiver
ofmessage.
 Fortheplanningofthecommunication,otherpeopleshouldbeconsultedandencourag
ed to participate.
 Itisimportanttoconsiderneedsofreceiversofinformation.
 Incommunication,toneofvoice,thechoiceoflanguage
 Communicationiscompleteonlywhenmessageisunderstoodbyreceiver. .
 Thefunctionofcommunicationismorethantransmittingtheinformation
 Effectivecommunicatingresponsibilitynotonlyofsenderbutalsoofreceiverofinformatio
n.
PART * C
1 How to overcome the barriers in Communication –Discuss. (15M) [Dec2007] BTL2

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Answer: Page: 4.103 - Dr.G.K. Vijayaraghavan

EXPLANATION: (15 M)
 Have Clarity In Your Thoughts
 Understand the needs of your audience
 Seek the Advice of others before Communicating
 Take adequate care of your Tone, Language
 Have a Feedback from the receiver
 Retain Consistency about the Message
 Keep a Routine check on the communication system
 Make use of the body language
 Avoid overloading too much of information
 Reduce the level of noise as far as possible
 Communication chain should be short
2 Explain in detail about the Blake and Mouton’s managerial grid. (15M)[May 2008,
May 2009] BTL2 Answer: Refer Notes.
Definition: (2 M)
Robert Blake and Jane Mouton have developed the Managerial Grid, also called as a
leadership grid. According to them, the leadership styles can be identified on the basis of
manager’s concern for people and production.
Here, concern for people means the degree to which an individual is committed towards the
goal achievement, maintaining self-esteem to workers and satisfying interpersonal
relationships. Whereas, the concern for production means an attitude of superiors towards
the quality of procedures and policies, creativeness of research, effectiveness of staff, work
efficiency and volume of output
EXPLANATION: (10 M)
The managerial grid identifies five leadership styles based on two behavioural
dimensions as shown in the figure below:
 1.1 - “Impoverished” - minimum management/leadership and minimum
requirements for the task
 1.9 - “Country club” - high concern on people and interpersonal relationships,
minimum focus on the task
 5.5 - “Middle-of-the-road” - medium level of focus on relationships and focus on
the task satisfactorily
 9.1 - “Produce or Perish” - the minimum respect for people, high requirements for
the task
 9.9 - “Team” - the highest concern on people and relationships and also highest
concern on the task
DIAGRAM: (3 M)

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3. Explain the use of computers and IT in management control system (15M) [May
2009]BTL2
Answer: Page: 5.46 - Dr. G.K. Vijayaraghavan
Diagram: (4 M)

EXPLANATION: (11 M)
 Uses of the computer in Education field

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 Use of computer in the business.

 Uses of the computer in hospitals
 Uses of the computer in the banking sector
 Uses of the computer in government offices
 Uses of the computer in the home
 Uses of the computer in marketing
 Computer used by various people around the world for different reasons and
purposes
 Uses of computer in new habits—Impact of computer in our life
 Uses of computer to change life: -Computer changed our lives in this way

UNIT V - CONTROLLING

System and process of controlling – budgetary and non-budgetary control techniques – use
of computers and IT in Management control – Productivity problems and management –
control and performance – direct and preventive control – reporting.
PART * A
Q.
Questions
No
1 What is Feed Forward Control? BTL1
Feed Forward Control involves evaluation of input and corrective measures before a
particular sequence of operation is completed. It is based on timely and accurate information
about changes in the environment.
2 What is Concurrent Control? BTL1
Concurrent Control is also known as "real-time" or steering" control. It provides for taking
corrective actions or making adjustments while the programmes is still in operation and
before any major damage occurs.
3 List out the important features of controlling? BTL4
 Function of Management.
 Continuous function
 Future -oriented and
 Action-oriented.
4 What is Flexible Budget? BTL1[May 2012]
Flexible Budget is one which is designed to change in accordance with the level of activity
actually attained. It is suitable when the estimation of demand is uncertain and the enterprise

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works under conditions of lack of material and labor power.

5 What are the benefits of control? BTL2
 Control eliminates actions which deviate or which is not in conformity with the
cherished goals of the firm.
 It offers enough information for future planning and Organising.
6 List out the characteristics of Control function? BTL4 [May 2018]
 Functional Management
 Continuous function
 Future-oriented
 Action-oriented
 Measuring the performance and
 Planning the control
7 What are the basic steps involved in the process of controlling? BTL2 [Dec 2018]
 establishment of standards
 measurement of performance
 comparing performance with the slandered
 taking corrective action
8 What is performance Appraisal? BTL1 [May 2018]
Performance appraisal is the system of measuring Employee performance and giving
feedback to the employee regarding his performance.
9 Define control. BTL2[May 2019]
According to Koontz“Controlling to the measurement and correction ofperformancein order
to make surethat enterpriseobjectives and the plans devised to attain them
areaccomplished”.
10 What arethe characteristics ofcontrol?BTL2 [May 2018]
1. Control process is universal
2. Control is a continuous process.
3. Control is action based.
4. Control is forward looking.
11 Write the typesofcontrol.BTL2 [May 2010, May 2013]
1. Feedback control
2.Concurrentcontrol
3. Feed forwardcontrol
12 List onthe differences betweenFeedback control and feedforwardtechnique.BTL1
  Feedback Feed forward
1 It measure only output of the It measures input of the
process. process.
2 It is submissive approach. It is aggressive approach.
3 Less benefit. More benefit.

13 What arethe requirements for effectivecontrol?BTL2

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1. The control should beeconomical,

2.It must besimple,
3.It should be flexible,
4.It should be clear objectives.
14 Define: MIS. BTL2
“A system of obtaining abstracting, storing and analyzing datato productions information
forusein Planning, controlling and decision making bymanagers at thetime
theycanmosteffectivelyuseit”.
a)To find out the new opportunities.
b) To provide sales forecasting.
c) To allocateresources.
d) To provide effectivemanagerial activities.
15 Differentiate PERT nad CPM BTL2
S.No. CPM PERT
1 It is activity oriented PERT is event oriented
2 CPM is planning device PERT is control device
3 It estimates only one time It estimates three times
4 It is a deterministic model It is probabilistic model
16 What are global theories of management?BTL2
• Situational and contingency approach
• Motivation and leadership theory
• Organizational behaviour
17 What are MIS Resources?BTL2
• To provide the information up to date
• To take effective decision making
• To provide the right information available in the right form at the right time
18 What is Operation Research?BTL2
Operation Research is an applied decision theory, which uses scientific, mathematical
and logical means to take decisions.
19 Why controlling is important? [May 2017] BTL2
 helps to increase the coordination of the subordinates in the organisation
 ensures the organizational efficiency and effectiveness
20 Define budgetary control? [May 2007, May 2011, Dec 2012, Dec 2014, Dec 2017] BTL1
It is the process of determining various budgets for the business unit for future. It serves as a
method of control. It is a system of controlling costs through preparation of budgets.
21 What are the uses of computers in handling information? [May 2016, Dec 2016] BTL4
1. sales forecast and control
2. payroll
3. business management
4. accounting
22 Define productivity. List the types of productivity? BTL4 [Dec 2005, May 2009, May

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2014, Dec 2017]

It is a measure of how much input is required to produce a given output.
Types
1. labor productivity
2. capital productivity
3. material productivity.
23 What is preventive control? BTL1 [May 2005, May 2012, May 2016, May 2017]
An efficient manager applies the skills in managerial philosophy to eliminate an undesirable
activity which are the reasons for poor management.
24 Name atleast four budgetary control techniques? [May 2019]BTL1
1. zero base budgeting
2. variance analysis
3. adjustment of funds
4. human resource accounting
PART * B
1 Explain the characteristics and importance of controlling. (13M) [Dec2006] BTL2
Answer: Page: 5.2 & 5.4 - Dr. G.K. Vijayaraghavan
EXPLANATION: (13 M)
 Control is an essential function of management ·
 Control is an ongoing process
 Control is forward – working because pas cannot be controlled
 Control involves measurement
 The essence of control is action ·
 Control is an integrated system
2 Explain the steps in controlling process. (13M) [Dec2007, May 2013, May 2017, May
2018, Dec 2017, May 2019] BTL2
Answer: Page: 5.9 - Dr. G.K. Vijayaraghavan
Diagram – (3M)

Explanation – (10 M)
1.Fixing the standards
The first and primary focus should be fixing the standard of controlling process.
2.Measuring the actual performance

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Actual performance will be monitored and evaluated in the right way.

3.Comparision
Compare the actual plan with scheduled controlling process.
4.Corrective Action
Corrective measures will be taken for evaluate the process.
5.Follow up
Follow up the process for continuous course of action.
3 What is budgetary control? Explain the advantages and Limitations. (13M) [Dec2007,
Dec 2018] BTL2
Answer: Page: 5.20 - Dr. G.K. Vijayaraghavan
DEFINITION: (2 M)
BudgetaryControlisdefinedas"theestablishmentofbudgets,relatingthe
Responsibilitiesofexecutivestotherequirementsofapolicy,andthecontinuouscomparisono
f actualwithbudgeted resultseithertosecurebyindividualactiontheobjectiveofthatpolicy
orto provide abasefor its revision.

ADVANTAGES: (6 M)
1. Maximisation of Profits
2.Proper Co-ordination
3.Provides Specific Aims
4.Tool for measuring performance
5.Economy
6.Corrective action
7.Creates budget consciousness
8.Reduced Cost
9.Determine Weakness
10.Introduction of Incentive Schemes
LIMITATION: (5 M)

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1.Uncertain Future
2.Revision Required
3.Discourage Efficient persons
4.Problem of Co-Ordination
5.Conflict among different departments
6.Depends upon support of top management
4 Bring out the different characteristics of control system. Also bring out the factors
influencing control system (13M) [May 2007, Dec2012, May 2019] BTL4
Answer: Page: 5.2 - Dr. G.K. Vijayaraghavan
Characteristics: (7 M)
Management control systems designed in an organisation should fulfil the following
characteristics:
(i) Management control systems should be closely aligned to an organisation’s
strategies and goals.
(ii) Management control systems should be designed to fit the organisation’s structure
and the decision-making responsibility of individual managers.
(iii) Effective management control systems should motivate managers and employees
to exert efforts toward attaining organisation goals through a variety of rewards tied to
the achievement of those goals.
Factors influencing: ( 6 M)
Factors influencing the design of Management Control Systems are as follows:
(i) Size and Spread of the Enterprise:
(ii) Organisational Structure, Delegation and Decentralisation:
(iii) Nature of Operations and Divisibility:
(iv) Types of Responsibility Centres:
(v) People and their Perceptions:
5 Explain the advantages of Purchase control [May 2009, Dec 2018] (BTL2)(13M)
Answer: Refer Book Principles Of Management By Dr. G.K. Vijayaraghavan Pg.
No.5.69
Explanation – 13 M
Key Points:
a)Continuousavailabilityofmaterials
b)Purchasingofrightquantity
c)Purchasingofrightquality
d)Economyinpurchasing
e)Worksasinformationcentre
f)Developmentofbusinessrelationship
g)Findingofalternativesourceofsupply:
h)Fixingresponsibilities:
6 What do you mean by productivity? Describe the problems involved in measuring the

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productivity of knowledge workers. (13M) BTL2 [May2011]

Answer: Page: 5.61 - Dr. G.K. Vijayaraghavan
Meaning: (2 M)
Productivity
referstotheratiobetweentheoutputfromproductionprocessestoitsinput.
Productivitymaybeconceivedofasameasureofthetechnicalorengineeringefficiencyof
production. Assuchquantitative measuresofinput, and sometimes output, are
emphasized.
Explanation : ( 11 M)

1.Difficulty in measuring Output

2.Difficulty in measuring Input
3.Factorial Productivity
4.Changing Conditions
5.Service sector
6.Different periods
7.Difficulty in measuring man-hours
8.Technology Changes
7 Explain the steps involved in the quality control process with advantages and
disadvantages. [Dec2013] (13M) BTL2
Answer: Page: 5.75 - Dr. G.K. Vijayaraghavan
Explanation – 9 Mark
Steps: (7 M)
 Determinewhatparameteristobecontrolled.
 Establishitscriticalityandwhetheryouneedtocontrolbefore,duringorafterresultsare
produced.
 Establishaspecificationfortheparametertobecontrolledwhichprovideslimitsof
acceptability and units of measure.
 Produceplansforcontrol whichspecifythemeansbywhichthecharacteristicswillbe
achieved and variation detected andremoved.

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 Organize resourcesto implementtheplansforquality control.

 Installasensoratanappropriatepointintheprocesstosensevariancefrom
specification.
 Collectandtransmitdatatoa placeforanalysis.
 Verify theresults and diagnosethecauseofvariance.
 Proposeremediesand decide on theaction needed to restorethestatusquo.
 Taketheagreedaction and check that the variance has beencorrected.
Advantages : (3 M)
 Betterproducts, servicesultimatelyestablishingagoodreputationfora
company
 Higher revenuefromhaving moresatisfiedcustomers.
Disadvantages: (3 M)
 Needmoremanpower/operationstomaintainqualitycontrol
 Adding moretime tothe initial process.
8 Explain the budgetary control techniques. (13M) [May2011] BTL2
Answer: Page: 5.18 - Dr. G.K. Vijayaraghavan
EXPLANATION: (13 M)
 RevenueandExpenseBudgets
The amount of money allocated to the maintenance and growth of a business
 Time,Space,Material,andProductBudgets
The production budget calculates the number of units of products that must be
manufactured
 CapitalExpenditureBudgets
A formal plan that states the amounts and timing of fixed asset purchases by an
organization
 CashBudgets
A budget or plan of expected cash receipts and disbursements during the period
 VariableBudget
The budget amount will change based on the changes of output.
 ZeroBasedBudget
A method of budgeting in which all expenses must be justified for each new period.

9 Explain the Non-budgetary control techniques [Dec2012] (13M) BTL2

Answer: Page: 5.34 - Dr. G.K. Vijayaraghavan
EXPLANATION: (13 M)
 Statisticaldata
Statistics is especially useful in drawing general conclusions about a set of data from
a sample of it.
 Break-evenpointanalysis
It lets us determine what you need to sell, monthly or annually, to cover your costs of
doing business
 Operationalaudit

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Operational Audit is a systematic review of effectiveness, efficiency and economy of

operation.
 Personalobservation
A subset category, in which the researcher is the primary instrument for monitoring
and data collection
 PERT
The program evaluation and review technique is a statistical tool used in project
management
 GANTTCHART
A type of bar chart that illustrates a project schedule, named after its inventor
10 Explain the Essentials of a Good Reporting System. [May 2013] (13M) BTL2
Answer: Page: 5.89 - Dr. G.K. Vijayaraghavan
EXPLANATION: ( 13 M)
1. Proper Form
2. Proper Time
3. Proper Flow of Information
4. Flexibility
5. Facilitation of Evaluation
6. Economy
PART * C
1 What is productivity? Explain the methods of improving productivity [Dec2006] (15M)
BTL2
Answer: Page: 5.60 - Dr. G.K. Vijayaraghavan
Meaning: (2 M)
Productivity
referstotheratiobetweentheoutputfromproductionprocessestoitsinput.
Productivitymaybeconceivedofasameasureofthetechnicalorengineeringefficiencyof
production. Assuchquantitative measuresofinput, and sometimes output, are
emphasized.
METHODS: (13 M)
 Training programme for labour
 Incentives in contract for good performance
 Enough tools in working place and proper planning
 Optimising site facilities
 Availability of resource
 Competition between crews, areas and shifts
 Good supervision and optimum manpower
 Short interval scheduling
 Innovative materials and equipment
 Time lapse film analysis for critical activities
 Cost reporting and work sampling of critical activities

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2 Explain the different types of reporting. [May 2007] (15M) BTL2

Answer: Page: 5.91 - Dr. G.K. Vijayaraghavan
EXPLANATION: (15 M)
 External Reports
The issuance of financial statements to parties outside of the reporting entity. 
 Internal Reports
A vital component of a well-run business, but in most organizations, it's fraught with
challenges including versioning overlap and manual processes
 Intra Report
A report between the sub departments for sharing their views and information
 Control Reports
Every business should have internal control procedures such as management control
reports 
 Investigating Reports
A form of journalism in which reporters deeply investigate a single topic of interest,
such as serious crimes, political corruption, or corporate wrongdoing.
 Routine Reports
A Routine Report is prepared and presented as a routine work and at a regular
period of time
 Special Reports
The results and data where drawn based on special demand and requirement s
Operating reports:
It’s the process reporting the operative profit and status
Financial Reports
It gives the overall financial information and data for managerial decision.
3. Explain the use of computers and IT in management control system (15M) [May 2009,
May 2017, Dec 2017, Dec 2018]BTL2
Answer: Page: 5.46 - Dr. G.K. Vijayaraghavan
EXPLANATION: (11M)
 Use of computer in the business
 Uses of the computer in hospitals
 Uses of the computer in the banking sector
 Uses of the computer in government offices
 Uses of the computer in the home
 Uses of the computer in marketing
 Computer used by various people around the world for different reasons and
purposes
 Uses of computer in new habits—Impact of computer in our life
Uses of computer to change life: -Computer changed our lives in this way.
DIAGRAM: (4 M)

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