Transcript 7. How does principle of “unity of command” differ from
MINIMUM LEARNING PROGRAMME
CHAPTERWISE BUSINESS STUDIES-XII PART-A Part A: Principles and Functions of Management
1. Nature and Significance of Management 2. Principles of Management 3. Business Environment 4. Planning 5. Organising 6. Staffing 7. Directing 8. Controlling
CHAPTER 1-NATURE AND SIGNIFICANCE OF MANAGEMENT
M.C.Q
1. The functions of management include : (a)Planning (b) organizing (c) directing and controlling (d) all of the above Ans. (d)
2. Management is called a process because : (a)It is applicable to the manufacturing process (b) it is relevant for social organization (c) it involves a series of functions (d) none of the above Ans. (c) 3. At which level of management ,the managers are responsible for the welfare and survival of the organization ?
Ans. Top management
4. Why is management considered an important element of organized activity ?
Ans. (a) Accomplishment of goals (b) Effective utilization of resources (c) Sound organization 5."Management is an art.” Do you agree ? Give any three reasons in support of your answer ?
Ans. (a) existence of theoretical knowledge (b) Personalized application (c) Based on practice and creativity
6.Enumerate any three functions of top level / middle level /Lower level management ?
Top level coordinate the activities of different deptt. formulate overall organizational goals.
Responsible for welfare and survival of org.
middle level – Carry out plans formulated by top managers Interpret the policies Cooperate with other departments Lower level Pass instructions to workers Maintain discipline Ensure good working conditions
7 . Name the different posts at different levels of management ?
Top level management board of directors, chief executive officers, Chairmen director Middle level management General manager Dept manager, deputy departmental manager operations/ functional managers Lower level or operational management Supervisors foremen workers Non managerial members Non managerial level
8. “ Coordination is the essence of management” How ?
Ans. The managers at all levels are concerned with achieving coordination while performing the functions of planning, organizing, staffing, directing and controlling. It is require at each level of management individually and also by all of them collectively as a group.
9. “ Success of organizations largely depends upon its management”. Explain any five reasons to justify the above statement
or
“Anything – Management = Zero”. How ?
Ans. Any five importance of management : (i) Managements helps in achieving group goals (ii) Management increase efficiency (iii) Management helps in the development of society (iv) Management helps in achieving personal objective (v) Management creates a dynamic organization
10. Management of any organization strives to attained different objectives. Explain them ?
Ans.
(a) organizational objectives :- the objectives for the whole organization like (i) Survival (ii) growth (iii) Profit (b) Social objective :- consideration of the interest of the society during managerial activities like (i) Employment opportunities (ii) improving living standard (iii) Save environment (i) (ii) (c) Personal objectives :- objectives with reference to the employees in the organization Fair remuneration good making condition
CHAPTER 2 PRINCIPLES OF MANAGEMENT
MCQ
1. Principles of management : (a)Universal (b) absolute laws (c) rigid (d) behavioral Ans. (a)
2. The principle of “ Division of work” is best described by :-
(a) Work should be divided into small elements (b) workers should be divided into groups (c) resources should be divided among jobs (d) profits should be divided among the manager and workers equally Ans. (a)
3. Under functional foremanship, machines , materials, tools, etc are arranged by :-
(a) Speed boss (b) Gang boss (c) instruction card clerk (d) route clerk Ans. (b)
4. Why is it said that management principles are universally applicable ?
Ans. As they can be applied to all types of organizational activities – business, social, religious, etc.
5. Which principle of management is violated if an employee is asked to receive orders from two supervisors ? Explain the principle with a suitable example ?
Ans. Principle of unity of command
6. Hina and Harish are typists in a company having same educational qualification. Hina is getting rs.8000 per month and Harish rs.4000 per month as salary for the same working hours. Which principle of management is violating in this case ? Name and explain the principle ?
7. How does principle of “unity of command” differ from “unity of direction”?
UNITY OF COMMAND UNITY OF DIRECTION
(i) it implies that a subordinate should receive orders and instructions from one boss only.
(i) It means “one unit and one plan” for the group of activities having the same objective. The activities of a group should be directed towards its common goals.
(ii) This principle is related to the functioning of personnel.
(iii) Unity of command avoids conflicts in the undertaking or enterprise. (ii) This principle is related to the functioning of a department or the organization as a whole.
(iii) Unity of direction avoids duplication of efforts and wastage of resources.
8. Why does the principle of unity of command not hold good in case of functional foremanship/ organization ?
Ans.
According to the principle of unity of command, an employee should receive orders and instructions from one and only one boss or superior. On the other hands, the principle of functional foremanship insists on orders an instructions from eight specialists. Thus, if an organization as appointed eight functional specialist, then it would not be possible to allow only one superior to give orders to the workers in the workshop. Hence, the principle of unity of command does not hold good in the case of functional foremanship.
9. The managing director of aman computer Ltd. Gave the responsibility of increasing the sale of computer by 50% during the next quarter to the marketing management. But the marketing manager was given no authority to incur additional sales expenses or appoint some new salespersons. So he failed to achieve the target can he be held responsible for this failure. What principle of management should have been followed in this case ?
Ans.
No, the marketing manager can not be held accountable as he had no authority to increase sales expenses or hire new staff to push up the sales. In the above case, the fayol’s principle of authority and responsibility should have been followed to hold the marketing manager accountable for the desired sales targets. This principle requires a balance between authority and responsibility which was missing in this case.
10. Identify the techniques of scientific management, which are described by the statements given below:-
1. When many specialist supervise each workers.
functional foremanship 2. When uniformity is introduced in material, machines, tools, methods of work and working condition after due research.
Standardization of work 3. To determine standard time taken to perform a well defined job.
Time study 4. Giving variable wages to workers based on their performance Differential piece wage system 5. Change in the attitude of workers and management towards one another from
11.In the following cases which principle of management as given by Henri Fayol is being violated ?
(a) When no division of the company has a separate plan of action (b) When a subordinate receives order from two superior. (c) When a subordinate habitually contacts higher authorities in the company by passing his/her immediate superior.
d) When the tools and /or raw materials are not found at the right place in the company .
(e) When the employee is given responsibility to achieve target production of 500 units with no authority to access over raw material.
(f) When the manager grants one month medical leave to a supervisor with pay and only one week medical leave to accountant
(
Ans
. (a) unity of direction (b) Unity of command (c) Scalar chain (d) Order (e) Authority and responsibility (f) equity
BUSINESS ENVIRONMENT CHAPTER 3
MCQ
1. Business environment does not have the following characteristics : (a)Uncertainty (b)Dynamic (c) Relativity (d)Stability Ans. (d)
2.The importance of understanding business environment is signified by :
(a) Identification of opportunity (b) Coping with rapid changes (c) Improvement in performance (d) All of the above Ans. (d)
3. Which of the following is an example of social environmental ?
(a) Composition of families (b) Consumer protection act (c) Constitution of the country (d) RBI policies Ans. (a)
4. “the understanding of business environment enables the firm to identify opportunities”. What is meant by opportunities here.
Ans. Opportunities refer to the positive external environment changes that will help a firm to improve its performance.
5. Explain by giving any five reasons why understanding of business environment is important for managers.
Ans. (a) identification of opportunities to get first mover advantage ( b) Identification of threats and warnings (c) Tapping useful resources (d) Coping with rapid changes
6. Identify the different dimension of business environment in the following case :-
1.Shift in demand from fountain pens to ball point pen.
Technological environment 2.A rise in the disposable income Economic environment 3. Advertisement of alcoholic beverages is prohibited Legal environment 4. Demand for diet soft drinks, mineral water etc.
Social environment 5. Subsidy provided by govt. on cotton textile units. Political environment
CHAPTER 4 PLANNING
MCQ
1.Which of the following is not a characteristic of planning ?
(a)Planning is goal oriented.
(b)Planning is a pervasive function of management.
(c) Planning is a mental process.
(d)Planning involves taking actions to attain organizational goals.
Ans. (d)
2. Planning is a managerial function which :
(a) Provides direction or a sense of purpose for the organization.
(b) Eliminates unproductive efforts.
(c) Involves organization of activities.
(d) Provide the basis of control.
Ans. (c)
3. The process of planning does not involves:
(a) Determination of objectives.
(b) Control of activities.
(c) Identification of alternative courses of action.
(d) Selection of the best possible course of action.
Ans. (b)
4.What are the steps taken by management in the planning process?
Ans. Planning process: (i)setting objectives (ii)developing premises (iii)identifying alternative courses of action (iv)evaluating alternatives courses (v)selecting an alternative (vi)implementing the plan (vii)follow up action
5.Why does planning sometimes fail in spite of the best efforts of management?
Ans. Limitations of planning: (i)Planning creates rigidity (ii)Planning does not work in a dynamic environment (iii)Planning reduces creativity (iv)Planning involves huge costs (v)Planning is a time –consuming process (vi)Planning does not guarantee success.
6. Explain different types of plans?
Standing plan: (i)Objective:-It refers to that end point for the attainment of which all the activities are undertaken.
(ii)Strategy:-It refers to a plan which takes into account the environmental opportunities and threats and the organizational strengths and weakness and provides an optimal match between the organization and the environment.
(iii)policy:-It refers to that general statement which is decided for the guidance of the employees while taking decision.
(iv)Procedure:-It refers to that plan which determines the sequence of any work performance.
(v)Method:-It refers to that plan which determines how different activities of the procedure will be completed.
(vi)Rule:-It tells us what is to be done and what is not to be done in a particular situation.
(B)Single-use plans: (i) Programme:-It refers to a plan that covers a relatively large organizational activities and specifies main steps , their order and timing and the department responsible for each step.
(ii)Budget:-It refers to the quantitative expression of the plan of action.
ORGANISING CHAPTER -5
1.Which of the following is not a step of the ‘organising’ process?
(a)Division of activities (b)Creation of jobs and departments (c)Assignment of duties (d)Providing leadership Ans.(d)
2.The activities are grouped on the basis of product lines in case of : (a)Decentralized organization (b)Divisional organization (c) Functional organization (d)Centralized organization Ans.(b) 3.Grouping of activities on the basis of functions is done under: (a)Decentralized organization (b)Divisional organization (c)Functional organization (d)Any other form of organization Ans.(c)
4.Which of the following is not an element of delegation of authority?
(a)Authority (b)Responsibility (c)Accountability (d)Centralization Ans.(d) 5.Why do we need organization?
Ans. (i) Specialization (ii)Role clarity (iii)Clarity of authority and responsibility relationships (iv)Optimum utilisation of resources (v)Effective management
6. Briefly explain process of organising ?
Ans. (1) identification and division of work (2) Creation of department (3) Assignment of duties (4) Establishing authority – responsibility relationships 7. Difference between formal organisation and informal organisation ?
FORMAL ORGANISATION
1. Formal relation are well planned and are created deliberately.
2.Authority flows from top to bottom i.e., vertically downward.
3.Formal organisation follows the official chain of command which can not be changed.
4.It follows a rigid structure.
5.Formal organisation usually stable.
INFORMAL ORGANISATION
1. Informal relations are unplanned and they originate automatically.
2. Authority flows vertically as well as horizontally.
3. Informal organisation does not have a chain of command. 4. It is highly flexible.
5. Informal organisation does not last so long.
9. What is delegation of authority ? What are the various elements?
Ans. Delegation of authority means devolution of authority on subordinates to make them perform the assigned duties or tasks.
ELEMENTS OF DELEGATION There are three elements of delegation of authority (1) Responsibility (2) Authority (3) Accountability
(1) Responsibility :- tasks or duty assigned (2) Authority :- right or power (3) Accountability :- accountability is the obligation to carry out responsibility and exercise authority in terms of predetermined standards.
STAFFING CHAPTER 6
1. Define staffing ?
Ans. Staffing is the process of employing and developing required people to fill various job. Position in the organisation .
2. What is meant by recruitment ? Ans. It is the process of searching the prospective employees and stimulating them to apply for jobs in the organisation. It is the positive process as its finds various sources of supply.
3. Why is selection called a negative process? Ans. Selection as a negative process since the no of persons rejected usually more than the no of persons selected.
4. Name different sources of recruitment ? Ans. SOURCES OF RECRUITMENT : (a) Internal :- promotion and transfer of existing employees.
Recalling of laid off employees.
(b) External :- direct recruitment at factory gate.
Casual callers.
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3. Why is selection called a negative process? Ans. Selection as a negative process since the no of persons rejected usually more than the no of persons selected.
4. Name different sources of recruitment ? Ans. SOURCES OF RECRUITMENT : (a) Internal :- promotion and transfer of existing employees.
Recalling of laid off employees.
(b) External :- direct recruitment at factory gate.
Casual callers.
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5. Explain the steps in the process of selection
of employees ?
STEPS IN SELECTION PROCEDURE (a) Receiving application and preliminary screening (b) Selection tests (c) Employment interview (d) Reference checking (e) Selection decision (f) Physical examination (g) Job offer or appointment letter (h) Contract of employment
6. Explain the following types of training? Ans. (a) apprenticeship training :- under apprenticeship training, the trainee is placed under the supervision of an experienced person who imparts him the necessary skills and observes his performance. The trainees receive stipend while learning and also acquire valuable skills which will be useful in their career.
(b) Job rotation :- the trainee is systematically transferred from one job to another so that he may get the experience of difference jobs. Job rotation is used by many organisations to develop all-round workers.
(c) Vestibule training :- vestibule training is adapted to the same work environment as prevails at the actual work place in the factory. When it is not possible to provide training to the employees at the work- place.
CH-7 DIRECTING
MCQ 1.
Need hierchy theory of motivation was given by a. W.G. Scott b. A.H. Maslow c. P.F. Drucker d. F.Herzberg
ans- b 2. the communication network in which all subordinates under a superior communicate through him is known as a. single chain network b. wheel network c. free flow network d. gossip chain ans-b
Q1- Mention any one benefit of Motivation.
Ans- It leads to stability in the employees.
Q2 – What is meant by ‘Informal communication’?
Ans- Not following official chain of communication.
Q3 Which needs are referred to as ‘Belongingness needs’?
Ans- Social & Affiliation needs.
Q4- What is meant by vertical communication?
Ans- Flow of communication from superior to subordinate & subordinate to superior .
Q5- Explain functions of a supervisor.(4/5 marks) Ans- Link between workers & management.
Ensures performance of work.
Builds efficient team of workers.
Builds up high morale.
Maintains harmony among workers.
Q6 Explain Maslow’s need hierarchy theory.
Ans- Basic physiological needs Security needs Affiliation needs Esteem needs Self actualization needs Q7- Define the term Financial incentive & Non financial incentive. Explain various financial & non financial incentives used to improve performance.
Ans-Financial incentives Pay & Allowances Productivity linked wage incentive.
Bonus Profit sharing Stock option Non- Financial incentives Status Organizational climate Job security Employee recognition programme.
Q8- Explain any four semantic barriers to effective communication.
Ans- Badly expressed message Faulty translations.
Unclarified assumptions.
Technical jargon.
Q9 -Explain the measures to improve communication effectiveness.
Ans- Clarify the ideas before communication.
Be aware of language, tone & content of message.
Be a good listener.
Ensure proper feedback.
Q11- Explain various styles of leadership.
Ans- autocratic leadership Democratic leadership Laisezz-e-faire
Q11- Differentiate between Formal & Informal communication .
Formal Communication
• Based on formal organizational relationship • The channels of communication are pre planned • It is rigid
Informal communication
• Not based on formal organization relationship. • The channels of communication are not pre planned. • It is flexible.
CH-8 CONTROLLING
MCQ 1. The control function is a. backward looking b. forward looking c. forward as well as backward looking d. none of the above ans- c 2. Controlling is a. last function of management b. first function of management c. third function of management d. Principle of management ans- a
Q1- Define controlling function of management. Ans- controlling function of management ensures that activities conform to the standard.
Q2- Give the meaning of Deviation.
Ans- Difference between actual performance & standard performance. Q3- Explain how Management by exception helps in Controlling process? Ans According to the principle of ‘control by Exception” if you try to control everything, you may end up controlling nothing.
Minor deviations from standards are insignificant so they should be ignored.
Therefore only significant deviations, which go beyond the permissible limits, should be reported to the management so that
Q4 “Controlling is blind without Planning’ Comment. Ans-Under the system of control actual performance is compared with budgeted standards to judge the effectiveness of performance. These standards are provided by planning. In the absence of standards there will be no justification left for control. Therefore it is correct to say that controlling is blind without planning
Q5.
“Planning is looking ahead and controlling is looking back”. Comment. Ans- It is often said that — planning is looking ahead while controlling is looking back” However, this statement is only partially correct — Planning is deciding in the present what to do in the future, thus it is looking ahead and it is forward looking function.
Controlling is like a past-mortem of the post activities to find out the deviations from the planned standard. Thus is a backward looking function. However future planning is guided by the
Q6- Explain the process of controlling.
• • • • •
Ans- Process of management control involves the following steps.
Setting performance Standard.
Measurement of Actual performance. Comparing Actual performance with standards. Analyzing the deviations . Taking corrective Actions.
Q7- Planning & controlling are inseparable twins. Explain.
Ans- Controlling is blind without planning.
Planning is meaningless without controlling.
Planning & controlling are both backward looking