MODEL QUESTIONS

MG64 PRINCIPLES OF MANAGEMENT

S6 ELECTRONICS AND COMMUNICATION ENGINEERING
ANNA UNIVERSITY, TIRUNELVELI

Submitted by

MONITA SUTHERSON
Department of Management Studies

PART A (2 MARKS)
UNIT I
OVERVIEW OF MANAGEMENT
1. Define organization.
William Scott has defined organization as follows:
Organizations are collectivities of people that have been established
for the pursuit of relatively specific objectives on a more or less on a
continuous basis.
2. What do you mean by sole proprietorship?
In sole proprietorship, the business is owned by one man. It is one
person in business on his own. The owner supplies all the capital needed to
run the organization and produces only with the help of his own land, capital
and labor. The owner enjoys the profits and suffers the losses in his business.
3. What is partnership?
According to the Indian Partnership Act, 1932,
Partnership is defined as the relationship between persons carrying
on a business to share profits of a business.
4. Who are general partners?
All partners who are in the partnership are known as general partners.
5. What do you mean by active partners?
Partners who take active part in management and help in the
formulation of policies are known as active partners. They are also known
as working or managing partners.
6. What do you understand by sleeping partners or silent partners?

Partners who just invest money and do not take part in the
management are known as sleeping or silent partners. Such people after
contributing their share of capital wake up only either to share the profits or
to liquidate the business.
7. Explain about nominal partners.
Partners who do not invest money and do not take part in the
management but they lend their reputed name for the companys reputation
are known as nominal partners.
8. Who are the secret partners?
These partners take part in the management secretly but nowhere their
names appear.
9. Write a short note on minor partners.
People who have not attained the age of 18 years and associate with
the business are known as minor partners. Such partners can be allowed
only with the consent of other members. Their liability is limited.
10. What are joint stock companies?
Joint Stock Company is the voluntary association of individuals to
start and run the businesses. The capital amount required to start the
business can be collected from a large number of people. Capital is divided
into large number of shares of measurable value.
11. State the two types of joint stock companies.
i.

Private Limited company

ii.

Public Limited company

12. Explain about liquidation in joint stock companies.

It becomes difficult to run the company if liability becomes much
more than assets, when creditors press for payments of loans, etc. At this
stage, the company has to be dissolved or wind up. This is known as
3

liquidation. Liquidation may be compulsory or voluntary or under the

supervision of court. If the resources so not permit the payment, then the
assets of the company have to be sold and the amount is paid to the creditors
in proportion. If some amount is left after the payments, then it is
distributed among the shareholders.
13. What do you mean by amalgamation in joint stock companies?
Amalgamation is the joining together of two businesses resulting in
more efficient operation because of economies of large scales,
administration and marketing economies. Both parties in a proposed
amalgamation can have some existing assets and liabilities which could be
set out in a balance sheet or statement of affairs at the date of amalgamation
along with certain adjustments.
14. Define cooperatives.
Cooperative society is defined as the voluntary association of
individuals with limited membership and collectively owned fund,
consisting of wage earners and small producers, united on a democratic basis
for the establishment of enterprises under joint management for the purpose
of improving their business economy.
15. Classify the different types of cooperative societies.
i.

Producers Cooperative society

ii.

Consumers Cooperative society

iii.

Housing Cooperative society

iv.

Farming Cooperative society

v.

Credit Cooperative society

16. List out the three categories of public sector organizations.

i.

Departmental organizations

ii.

Public corporations
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iii.

Government companies

17. Explain some of the important characteristics of government departmental

organizations.
i.

Such organization has direct control under the concerned ministry.

ii.

Departmental organizations have to follow the rules and regulations of

the government.

iii.

The money required for the departmental organizations would be

included in the budget.

iv.

Profit of this organization goes to public exchequer.

v.

Employees of this organization are government servants.

18. What is a public corporation?

A public corporation is fully owned by state government or central
government. It is established by a special act of parliament with internal
autonomy. Internal autonomy of the public corporation refers to the
freedom to appoint employees, freedom to fix salaries of employees and
freedom to make decisions.
19. What are the advantages of public corporations?
i.

Corporations are supposed to be better managed. These are expected

to provide better working conditions to the employees and cheaper
and better products to the customers.

ii.

As the corporations do not have profit motive, they are suitable for
managing public utilities at a reasonable cost.

iii.

Quick decisions can be possible.

iv.

Since the corporations are not subjected to accounting and audit

control, it can utilize fund s with greater freedom.

v.

More flexibility as compared to departmental organizations.

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vi.

As the management is in the hands of experienced and capable

directors and managers, these are managed more efficiently than
departmental organizations.

vii.

It provides economic foundations for increased opportunities for

employment.

20. What is a Government company?

A Government company, according to Indian Companies Act 1956, is
any company in which not less than 51% of the share capital is held by the
central Government or by any state Government or partly by Central and
State Governments.
21.What is Joint sector management or Joint Sector Unit?
The participation by the Government and Private Industry in sharing
the capital and general management of the firm is set up. In Joint sector, the
Government invests the capital and private party looks after the efficient
working of the management of the industry. Examples are Cochin
Refineries, Madras Refineries, Madras Fertilizers and Indian Oil.
22. State any one definition of management.
According to McFarland, management is defined for conceptual,
theoretical and analytical purposes as that process by which managers create,
direct, maintain and operate purposive organizations through systematic,
coordinated, cooperative human efforts.
23.What is scientific management?
Frederick Winslow Taylor has defined scientific management as follows:
Scientific management is concerned with knowing exactly what you
want men to do and then see in that they do it in the best and cheapest way.
24.What do you understand by management science theory?

Management science theory utilizes various quantitative techniques to

maximize resources. Quantitative Management, Operations Management,
Total Quality Management and Management Information System are
coming under Management Science Theory.
25. Explain chain of command.
Unbroken line of authority is known as chain of command. The line
of authority flows from top to bottom through the chain of command.
26.Who is referred to as the Father of Scientific Management? What is the goal
of Scientific Management?
Frederick Winslow Taylor is known as the Father of Scientific
Management. The main goal of Scientific Management is to replace rules
of thumb and trial and error methods by scientific methods, dividing the
workers scientifically, selecting people based on scientific principles,
performing all the works in accordance with principles of science.
27. What is the contribution of Taylor to the evolution of scientific
management?
Taylor noticed that managers were supposed to pick up their
managerial skills through trial and error. He was against the use of rules of
thumb. He believed that productivity could be increased by the application
of scientific methods and increased pay of workers.
28. Explain scalar chain.
Scalar chain refers to the chain of superiors ranging from the highest
to the lowest ranks. The line of authority must flow from the top of the
organization to the bottom. The line of authority should be very clear and
this must be clearly indicated in the organization chart.
29. What is esprit de corps?

This is the principle that union is strength. Harmony is the greatest

strength to an organization. Team work should be encouraged. The success
of a business activity depends on the unity of work.
30. List the functions of managers (or) management.
The functions of managers (or) management are
i.

Planning

ii.

Organizing

iii.

Staffing

iv.

Directing

v.

Controlling

31. Define Administration.

Spriegal states that:
Administration is that phase of a business enterprise that concerns
itself with the overall determination of institutional objectives and the
policies necessary to be followed in achieving those objectives.
Management, on the other hand, is an executive function which is primarily
concerned with carrying out broad policies laid down by the administration.
32. Distinguish between management and administration.
Administration

Management

1.

Administration lays down corporate Management executes the

objectives and policies.
objectives and policies set by the
administration.

2.

Administration resembles
legislative.

Management resembles executive.

3.

Administration is associated with

top level management.

Management is associated with

lower level activities.

4.

The term administration is used in

governmental, military and
educational organizations.

The term management is used in

profit making business
organizations.

5.

Administration is needed in long

term finance to make decisions on
how to collect capital needed to
start or expand business.

Management is needed in short

term finance decisions.

6.

Administration determines the size

of the organization structure.

Management makes use of

organizational resources to
achieve organizational objectives.

7.

Administration exercises control

over management.

Management is accountable to
administration.

33. List the three essential skills according to Katz that managers need to
perform the duties.
Katz (1974) talks of three types of skills that are recognized by all
managers. These are the technical, the human and the conceptual skills.
i.

Technical skill:

It is the ability to work with resources in a particular area of

expertise.
ii.

Human skill:

It is the ability to work effectively as a group member and to build

cooperative effort within the team he leads.
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iii.

Conceptual skill:

This skill means the ability to see the organization as a whole and
it includes recognizing how the various functions depend on one
another.
34. List the roles of managers according to Mintzberg.
Mintzberg identified ten roles and the roles are classified into three
categories:
I.

Interpersonal roles:

i. Figurehead role
ii. Leader role
iii. Liaison role
II.

Informational roles:

i. Monitor role
ii. Disseminator role
iii. Spokesperson role
III.

Decision role:

i. Entrepreneur role
ii. Disturbance handler role
iii. Resource allocator role
iv. Negotiator role
35.What are the schools of management thought?
i.

Scientific management

ii.

Administrative management
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iii.

Behavioral management

iv.

Management science

v.

Organizational environment

36. What is Hawthorne effect?

The improvement in productivity was due to social factors such as
morale, satisfactory inter relationships between members of a work group
and effective management- a kind of managing that would understand
human behavior, especially group behavior and serve it through such
interpersonal skills as motivating, counseling, leading and communicating.
This phenomenon is known as Hawthorne effect.
37. Define International management.
International management is an aspect of management that involves
collecting business and industrial operations in foreign countries and is
affected by cultural and national influences.
38. What is joint venture?
In joint ventures, a company in one country pools its resources with
another foreign company to produce and market products and jointly share
profits and losses.
39. Define foreign subsidiary.
Foreign subsidiaries are the wholly owned branches of a parent
company operating in foreign countries. In foreign subsidiaries, a firm
invests in production operations in a foreign country. The production and
marketing of products are done by through subsidiaries in a foreign country
that is wholly owned by the parent company. Many Japanese automobile
companies have subsidiaries in U. S.
40. Define licensing.

11

In licensing, a company authorizes companies in foreign countries to

produce and or market a given product within a specified territory in return
for a fee. It helps the home company since it does not have to set up a
complete production and distribution set up in the host country.
41.What do you mean by Multinational Corporations?
Multinational Corporations are large industrial organizations which
extend their industrial and marketing activities through a network of their
branches.
42. What are the types of Multinational Companies?
i.

Ethnocentric companies

ii.

Polycentric companies

iii.

Regiocentric companies

iv.

Geocentric companies

43.What is Ethno Centric Organization?

Ethnocentric organizations provide emphasis on their home countries.
The managers in ethnocentric companies practice ideas that are oriented
towards home country environment. This form of organization is not
suitable for all types of business environment.
44.What is Theory Z management?
Traditional Japanese management practices include collective
responsibility, informal control and consensus decision making.
Traditional American management practices include individual
responsibility, formal control, mechanisms and individual decision making.
Theory Z is the mixed management practices of Japanese and
American practices and it includes individual responsibility, informal control
mechanisms and consensus decision making.
12

45. What is managing concept in France?

I.

Le plan:
Governments planning at a national level is known as Le
plan. Government provides cooperation and assistance to
French industries. The involvement of government in
industries is more. Most of the companies in France are owned
by government or aided by Government. So, one in four
French employees are Government servants.

II.

Cadre:
French universities make managers with better analytical
ability, independence and proficiency in synthesizing facts.

46. State the factors influencing managing in Australia.

i.

Australian managers must give importance to social and

political values.

ii.

They are achievement oriented.

iii.

They are able to work in risk or uncertain environment.

47. Compare the management practices in Japan to those in the United States.
Japanese Management
Practices

US Management practices

1.

Japanese companies provide

more emphasis on lifetime
employment.

There is no life time

employment.

2.

Decision making in Japanese

companies is participative.

Individual decision making is

followed in US companies.

13

3.

Informal control mechanisms

are used in Japanese
companies.

Formal control methods are

used.

4.

Collective responsibility is the

main aspect of Japanese
companies.

American management
practices include individual
responsibility.

48.What is liberalization?
The term liberalization refers to open market conditions and they can
take various forms namely
i.

Reduction of tariff and nontariff barriers.

ii.

Deregulation of domestic regulatory measures.

iii.

Enhanced transparency of trade policies.

iv.

Simplification of customs procedures and practices.

49. Define globalization.

Globalization is defined as that integration of economy of one country
with worldwide economy with a view to eliminate supply bottlenecks,
improving investment climate and improving quality of products and
services provided to the ultimate consumers.
50. State the various methods of globalization.
i.

Exporting

ii.

Licensing and Franchising

iii.

Joint ventures

iv.

Fully owned manufacturing facilities

14

v.

Assembly operations

vi.

Mergers and acquisitions

vii.

Strategic alliance

viii. Contract manufacturing

ix.

Management contracting

x.

Counter trade

51. What is Management by Exception (MBE).

Management by Exception (MBE) states that only significant
deviations from established standards should be brought to the notice of the
management.
52. List out some economic factors which affect the global environment.
i.

Economic development

ii.

Infrastructure

iii.

Resource and product markets

iv.

Exchange rates

v.

Nature of economic system

53. State the merits of globalization.

i.

Allows for greater realization of potential.

ii.

Economies of scale of operations.

iii.

Technological and productivity improvements through cross

border specialization.

iv.

Utilization of global factors of production and technology.

v.

Allows for more productive applications of capital.

15

vi.

Worldwide increased standard of living.

vii.

Maximum rates of return on savings and investment.

54. What are the different approaches of unified Global management theory?
i.

The Empirical approach

ii.

The Systems approach

iii.

Situational or contingency approach

iv.

Merging motivation and leadership theories

v.

Organization development approach

55. State the 7Ps in the marketing strategy.

i.

Product

ii.

Place

iii.

Price

iv.

Promotion

v.

Physical evidence

vi.

People

vii.

Public Relations

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UNIT II
PLANNING
1. Define planning.
Planning is a process by which a manager looks to the future and
discovers alternative courses of action. In other words, planning is
anticipatory decision making. Planning is the process used by managers to
identify and select goals and courses of action of the organization.
2. What is the purpose of planning?
i.

To determine the direction of an organization.

ii.

To provide a basis for team work.

iii.

To minimize wastages in the future.

iv.

To facilitate decision-making.

v.

To improve morale of the employees.

3. State the objectives of planning.

i.

To determine the direction of an organization.

ii.

To provide a basis for team work.

iii.

To minimize wastages.

iv.

To facilitate control.

v.

To adapt to the changes in environment.

vi.

To provide coordination.

vii.

To reduce risk or uncertainty.

4. State the various steps involved in planning.

i.

Being aware of opportunities.

17

ii.

Establishing objectives.

iii.

Considering planning activities.

iv.

Identifying alternatives.

v.

Evaluating alternative courses of action.

vi.

Choosing a best alternative course of action.

vii.

Formulating derivative plans.

viii.

Numerising plans by budgeting.

5. Classify the various types of plans used in planning.

i.

Mission

ii.

Objectives or goals

iii.

Strategies

iv.

Policies

v.

Procedures

vi.

Rules

vii.

Programs

6. What do you mean by mission?

Mission is the organizations purpose or fundamental reason for
existence. Every organization must have a mission or purpose.
7. Why do you need a vision for an organization?
i.

A vision defines the basic purpose or objectives of an

organization.

ii.

It has the power to inspire people.

iii.

Successful vision guides for decision making.

18

8. What do you mean by procedures?

Procedures describe in detail, the steps to be taken in order to
accomplish a job. Procedures are chronological sequences of required
actions. They are called action guidelines.
9. Define the term Planning Premises.
Planning premises are defined as the anticipated environment in
which plans are expected to operate. Premises are the assumptions on which
plans are formulated.
10.What are objectives?
Objectives are the ends towards which the activities of an organization
are directed. Different organizations have different objectives. Objectives
are set by the owners or senior management.
11.What are the characteristics of objectives?
i.

Objectives of an organization are structured into a hierarchy.

ii.

Objectives are multiple in nature.

iii.

Objectives may be of long-term or short-term objectives.

iv.

Objectives should be specific and measurable.

v.

Objectives are interdependent.

vi.

Objectives must cover key result areas.

12. State the benefits of objectives.

i.

There is unity of planning.

ii.

Objectives facilitate coordination.

iii.

Objectives provide better control.

iv.

Objectives facilitate direction.

19

v.

Objectives are used to measure performance.

13. What are the two approaches for setting objectives?

i.

Top-down approach:
The top management determines objectives for subordinates.

ii.

Bottom-up approach:
Subordinates help managers in setting objectives.

14. What is the importance of setting organizational objectives in a modern

complex organization?
i. Objectives provide the basics for planning.
ii. Objectives facilitate coordination of work.
iii. Objectives motivate employees.
iv. Objectives provide the yardstick to measure the performance of the
employees and hence better control.
15. Define MBO (Management by Objectives).
MBO (Management by Objectives) is a method whereby clear
objectives for every department, project and person are jointly set by
superior and subordinates. MBO integrates the organizational objectives
and individual objectives.
16. What are the benefits of MBO (Management by Objectives)?
i.

Employees can be motivated because they participate in the goal

setting process.

ii.

Performance can be improved because MBO concentrates on

objectives.

iii.

Unnecessary efforts will be minimized because objectives are set

clearly.
20

iv.

MBO helps managers to exercise better control over employees.

17. What are the weaknesses of MBO?

i.

MBO involves too much paper work and holding of many meetings.

ii.

MBO is a time consuming process.

iii.

An environment of poor employer- employee relations reduces MBO

effectiveness.

iv.

Failure to teach the philosophy of MBO weakens the MBO program.

18.What are the features of MBO?

i.

Emphasis on results rather than activities.

ii.

Achievement of maximum performance.

iii.

Harmonization of individual employee goals with the organizational

goals.

iv.

Translation of overall objectives of an organization into objectives of

every department, every person and every project.

v.

Assessing performance of each employee or division and comparing

with planned performance.

vi.

Delegation of authority and power from the top level management to

the lower level management.

vii.

Involving people at all levels of the organization.

19. State the requirements of MBO.

i.

Approval and support of top management.

ii.

Teaching the philosophy and fundamentals of MBO to all

subordinates clearly.

iii.

Setting objectives for both individual and division jointly by the

superior and subordinates.
21

iv.

Implementing appraisal methods to evaluate the contribution of each

individual and every department.

v.

Implementing MBO at lower levels.

20. Define strategy.

Strategy is defined as the determination of long-term objectives of an
organization, making the best choices for the future and allocating the
resources necessary to accomplish the objectives.
21. What do you mean by strategic planning?
Strategic planning is defined as the determination of long-term
objectives of an organization, making the best choices for the future and
allocating the resources necessary to accomplish the objectives.
22. What is grand strategy?
Grand strategy is the action plan by which a firm intends to achieve its
long-term goals.
23. What is global strategy?
Global strategy is the action plan by which an organization intends to
achieve its long term goals in the international environment.
24. Mention the three levels of strategy.
i.

Corporate level strategy

ii.

Business level strategy

iii.

Functional level strategy

25. Distinguish between strategical and tactical planning.

Strategical planning
1.

Long range planning

Tactical planning
Short term planning
22

2.

Emphasis on analyzing the

future.

Emphasis on analyzing day-to-day

functions.

3.

Developed by top level

management.

Developed by low level

management.

26. Classify the different types of strategies.

I.

II.

Grand strategy:
i.

Stability strategy

ii.

Growth strategy

iii.

Retrenchment strategy

Global strategy:
i.

Globalization strategy

ii.

Multidomestic strategy

iii.

Transnational strategy

27. List the five categories of corporate level strategies.

i.

Forward vertical integration strategy

ii.

Backward vertical integration strategy

iii.

Horizontal integration strategy

iv.

Concentric diversification strategy

v.

Conglomerate diversification strategy

28. What are the four types of strategies in the TOWS matrix?
i.

WT strategy

ii.

WO strategy
23

iii.

ST strategy

iv.

SO strategy

29. What are the four alternative categories under BCG matrix?
i.

Star

ii.

Cash Cow

iii.

Question mark

iv.

Dog

30. Mention Porters five competitive forces in a companys environment.

i.

Threat of new entrants

ii.

Threat of substitute products

iii.

Bargaining power of buyers

iv.

Bargaining power of suppliers

v.

Rivalry among current competitors

31. List the various tools used for developing organizational strategies.
i.

SWOT analysis

ii.

BCG matrix

iii.

Porters five forces model

32. What do you mean by situation or SWOT analysis?

Situation analysis includes SWOT Strengths, Weaknesses,
Opportunities and Threats. The situation analysis is important for analyzing
the competitive situation of the organization. SWOT is a systematic
analysis that facilitates matching the external threats and opportunities with
the internal weaknesses and strengths of an organization.
33. Define policy.
24

Policy is a statement and predetermined guideline that provides

directions for decision making and taking action. Policies may be based
upon a thorough analysis of objectives and it should be consistent with the
companys mission and philosophy.
34. Distinguish between policies and strategies.
Policies

Strategies

1.

Policies are the guidelines to

decision making.

Strategy is the long term view and

to see the big picture.

2.

Policies are formulated by top

and middle level management.

Strategic planning is made by top

level management only.

3.

Policies are the means for

achieving organizational goals.

Strategy is concerned with

positioning the business in the
market and establishing a
reputation with customers,
employers and other stakeholders.

35. What are the guidelines to be followed for effective policy-making?

i.

Policies as far as possible should be in writing.

ii.

They should be clearly understood by those who are supposed

to implement them.

iii.

They should reflect the objectives of the organization.

iv.

Policies should be periodically reviewed.

36. Distinguish between policies and objectives.

25

Policies

Objectives

1.

Policies are formulated by the

top and middle management.

Objectives are set by the top

management only.

2.

Policies are standing plans.

Standing plan is developed for
an activity which is likely to be
repeated in future.

Objectives are single use plans.

Single use plans are developed for
an activity which is not likely to
be repeated in future.

3.

They are the guidelines that

provided direction for decision
making.

Objectives are aims or goals i.e.

they are the ends.

4.

They determine how the work is

to be done.

They determine what is to be

done.

5.

Policies are the means for

achieving organizational goals.

Objectives are the focal points for

the efforts of the organization.

6.

Organizational existence and

survival do not depend upon the
policies.

Organizational existence and

survival depends upon the
objectives.

37. What is decision making?

Decision making is defined as the selection of a course of action
among alternative courses of action. Decision making should be rational.
Decision making involves a choice among alternatives.
38. State any two decision making strategies.
i.

Decision tree method

26

ii.

Operations research

iii.

Break even analysis

iv.

Simulation or stochastic techniques

39. What do you term bounded rationality in decision making?

If people are having time and cognitive ability for making decisions, it
is said to be bounded rationality. The concept of bounded rationality
attempts to describe decision processed in terms of three mechanisms:
i.

Sequential attention to alternative solutions: People examine

possible solutions to a problem sequentially.

ii.

Use of heuristics: A heuristic is a rule which guides the search

for alternatives into areas that have a high probability for
yielding satisfactory solutions.

iii.

Satisfying: An alternative is satisfactory if there exists a set of

criteria that describes minimally satisfactory alternatives.

40. Mention the various types of decision making models.

i.

Econologic model or Economic Man model

ii.

Administration Man Model or Bounded Rationality Model

iii.

Implicit favorite Model or Gamesman Model

41. List the forecasting techniques used for decision making.

i.

Consumer survey method

ii.

Expert opinion (Delphi) method

iii.

Sales force opinion method

iv.

Test market method

v.

Controlled experience method

27

vi.

Trend projection method

vii.

Leading indicators method

viii.

Regression method

42. What do you mean by DSS?

Decision Support Systems are applied broadly to systems that aid
decision making by providing the answers to a series of what if questions.
Decision support systems include expert systems, natural language systems,
artificial intelligence systems and knowledge based systems.
43. List any four quantitative forecasting techniques.
i.

Trend projection method

ii.

Leading indicators method

iii.

Regression method

iv.

Simultaneous equation method

44. Define forecasting.

Forecasting is the statistical analysis of the past and current movement
on the given time series so as to obtain clues about the future pattern of
those movements. Forecasting means prediction of the future.
45.What do you mean by group decision making?
In large organizations facing complex problems, decisions are not
made by individuals, but decisions are made from a series of meetings in
which executives jointly approach problems. The meetings are called as
conference committees, boards or staff meetings.
46. State any two advantages and disadvantages of group decision making.
Advantages:
i.

Viewing of problems from several perspectives.

28

ii.

More alternative solution due to greater information and knowledge.

Disadvantages:
i. Considerable wastage of time.
ii. No one is responsible for decisions made.
47. Define simulation.
Simulation is the process of building, testing and operating models of
real-world phenomena through the use of mathematical relationships that
exist among critical factors.
48. Describe the various decision making techniques.
I.

Probabilistic or stochastic techniques:

i.

Expected value method

ii.

Decision tree method

iii.

Simulation techniques

II.

Deterministic techniques:

i.

Operations research

ii.

Break even analysis

iii.

Inventory control

29

UNIT III
ORGANISING
1. What do you mean by organizing?
Organizing is the process by which managers create the structure of
working relationships between organizational members that allows them to
work together and to achieve organizational goals.
Thus organizing is
i.

Identifying and classifying the required tasks.

ii.

Grouping people into departments.

iii.

Delegating authority and responsibility.

2. Define organizational structure.

Organizational structure refers to the formal, established pattern of
relationships among the various parts of a firm or any organisation. These
relationships are formal implies that they are deliberately specified and
adopted and do not evolve on their own.
3. List out the elements of organizational structure.
i.

Division of labor

ii.

Departmentation

iii.

Span of control

iv.

Delegation of authority

v.

Centralization and Decentralization

vi.

Formalization

4. What is division of labor?

30

The process of assigning various activities to different people who are

specialists in that area is known as division of work or division of labor.
Division of work improves efficiency.
5. Write a short note about formalization.
Formalization refers to the degree to which jobs within the
organization are standardized. It helps the job incumbent know what is to be
done, when it is to be done, and how he or she should do it. Formalization is
done through written policies, rules and regulations. It helps managers
manage by exceptions. Managers need to concentrate only on exceptional
cases, instead of paying attention to daily routine aspects of the workplace.
6. Explain departmentation.
Departmentation is a process which divides the entire organisation
into smaller, flexible and administrative units. Dividing the work and people
and grouping them on some logical basis is called departmentation.
Departmentation is a method of arranging activities to facilitate the
accomplishment organizational objectives.
7. Compare departmentation by function and product.
Functional departmentation

Product departmentation

1.

Activities are grouped according

to the common functions of
management.

Activities are grouped according

to the product or product lines.

2.

It is suitable for organizations

dealing with a single product.

It is suitable for large

organizations.

31

8. Differentiate between functional and product/market organisation structure.

Functional Structure

Product/Market structure

1.

The activities are grouped

according to functions of
management such as finance,
accounting, purchasing.

The activities are grouped

according to the variety of
products or product lines.

2.

This type of organisation

structure is most suitable at the
time of starting the organisation.

This type of structure is suitable

when the organisation grows and
becomes larger in size.

3.

Functional structure is suitable

for organisations having a single
product.

Product structure is suitable for

organisations having multiple
numbers of products.

9. What are the advantages of product structure?

i.

Product line managers get broader experience.

ii.

Decision making is faster.

iii.

It permits fast change in product line.

iv.

It permits growth and diversity of products and services.

10. What are the advantages of matrix types of organisation?

i.

It efficiently manages large and complex tasks.

ii.

It permits efficient utilization of resources.

iii.

It allows interaction among members of both product and functional

organization.

iv.

It improves the skills and broadens the knowledge of managers.

11. What are the disadvantages of matrix types of organisation?

32

i.

It requires high level of coordination.

ii.

It increases conflict between two managers.

iii.

It requires high levels of management skills.

iv.

It requires managers effective in human relations.

12.What is SBU?
A strategic business unit (SBU) is a division or subsidiary of a large
organization and it provides a distinct product or service and has its own
mission and goals.
13.Define span of control in an organization.
Span of control refers to the number of persons a manager can control
effectively to achieve the goals of the organisation. It is the function to
decide how many subordinates a manager can supervise.
14.What is the difference between flat structure and tall structure?
Flat Structure (Wide Span)

Tall Structure (Narrow Span)

1.

Wide span results in more

delegation of authority.

Narrow span provides tight control

and close supervision.

2.

Managers with special skills

must be essential.

Managers with average skills are

enough.

3.

Manager has a limited time to

take a decision.

Manager has more time to take a

decision.

Managers get overloaded.

Manager is free and he can think of

the future.

4.

33

15. Enumerate the factors affecting span of control.

i.

Nature of work

ii.

Competence and leadership ability of the manager

iii.

Capability of the subordinate

iv.

Planning and standardization of work

16. Define centralization and decentralization.

Louis A. Allen has defined both the terms as, Centralization is the
systematic and consistent reservation of authority at central points within an
organization. Decentralization applies to the systematic delegation of
authority in an organization-wide context.
17. State the various methods to be followed for making decentralization
effective.
i.

Centralized top policy

ii.

Appreciation of concept of decentralization

iii.

Development of managers

iv.

Competition among units

v.

Open communication

vi.

Effective co-operation

18. What are the advantages of decentralization?

i.

It reduces burden of the management so that it can focus more

attention on strategic management.

ii.

It encourages decision making and assumption of authority and

responsibility.

iii.

It facilitates the growth and diversification in the organization.

34

iv.

It enables the department staff members to complete work early.

19. State any four disadvantages of decentralization.

i.

It is difficult to have a uniform policy and procedure.

ii.

There is an increase in complexity of coordination of decentralized

organizational units.

iii.

If it is not followed properly, decentralization will create chaos in the

organization in the absence of proper control.

iv.

There is a possibility of duplication of work.

20. Compare delegation and decentralization.

Delegation

Decentralization

1.

It is the process of devolution of

authority.

It is the end result achieved by the

delegation.

2.

It implies the relationship

between a superior and a
subordinate.

It implies the relationship

between top management and
various departments or sections.

3.

The delegation control rests

entirely with the superior.

Here, the top management

exercises only overall control and
delegates the authority for control
to the departmental heads.

4.

It is a must for management.

It is optional.

21. What is meant by delegation of authority?

Delegation of authority is the process that allows the transfer of
authority from superior to subordinates. Delegation is the process through
35

which a manager assigns duties to employees and gives them authority to

carry out the tasks.
22. State the three important elements of delegation.
The three important elements of delegation are
i.

Responsibility

ii.

Authority

iii.

Accountability

23. What are the guidelines for effective delegation?

i.

Define assignments and delegate authority in light of results to be

achieved.

ii.

Select right person.

iii.

Establish adequate controls.

iv.

Provide proper incentives.

24. What do you mean by responsibility?

Responsibility is the duty or obligation of the subordinates to perform
the task as required by the manager. Each employer having responsibility
should have commensurate authority to complete the job.
25. Differentiate between authority and responsibility.
Authority is the right to influence others to act.
Responsibility is the obligation to perform a task, function or
assignment.
26. Distinguish between authority and power.

36

Authority

Power

1.

Authority is the right to give

orders.

Power is to extract obedience.

2.

Authority is the right to

command action by others.

Power is derived from authority.

27. Classify the two types of delegation.

I.

II.

Formal delegation
i.

Bottom-up delegation

ii.

Lateral delegation

Informal delegation

28. Differentiate formal and informal organisation.

Formal organisation

Informal organization

The relationship between

members in the organizational
structure is well defined.

There is no formal relationship

between members.

It has clear and definite

organizational structure.

It has not clear organizational

structure.

Individual goals are consistent

with the organizational goals.

Individual goals may not support

organizational goals.

29. Why is informal organisation needed?

37

The speed of communication flow through the informal channels is

faster than formal channels. Many tasks which cannot be accomplished by
formal organisation can be completed by informal organisation. Informal
organisation encourages cooperation between people. Informal organisation
provides job satisfaction, personal attachment and status to workers. Thus,
informal organization is needed for any organisation.
30. Name the different types of organization structure.
i.

Line organizational structure

ii.

Line and staff organizational structure

iii.

Functional organizational structure

iv.

Committee structure

31. Define line organization.

According to Lunday,
Line organization is characterized by direct lines of authority flowing
from top to bottom of the organizational hierarchy and the lines of
responsibility flowing in an opposite but equally direct manner.
32. Give two examples of line organization.
i.

Military

ii.

Small enterprises

33. What do you mean by line and staff organisation?

In line and staff organisation, the line authority remains the same as it
does in the line organisation i.e. the authority flows from top to bottom and
the line executives perform the major functions, staff support and advise the
line executives.
34. State the different types of staff in line and staff organisations.
i.

Personnel staff
38

ii.

Specialized staff

iii.

General staff

35. What are the merits of line and staff organization?

i.

There are good chances for growth of the business because the entire
task is divided systematically.

ii.

The discipline and control is better in such organisations.

iii.

As the resources are utilised fully, wastages are eliminated.

36. What is the necessity of staff authority in line organizations?

At some point of growth of the organisation there will be a need for
specialists to provide advice and support to the organisation. Hence, staff
authority is needed in line organizations.
37. What is line relationship in line and staff organizations?
In line and staff organisations, the line authority remains the same as
it does in the line organisations i.e. the authority flows from top to bottom
and the line executive perform the major functions, staff support and advise
the line executives.
38. What are the limitations of line and staff?
i.

Production cost in line and staff organisation is very high because of

the high salaries of staff executives.

ii.

Staff executives do not have any authority. So, they are unable to
implement a policy or plan.

iii.

Conflict will be more in such organisation because authority and

responsibility are not clearly defined.

iv.

Line and staff organisation is not suitable for small organizations.

39. What is meant by functional organisation structure?

39

Grouping activities according to the functions of management is

known as functional organisation structure. The basic organizational
functions are finance, accounting, purchasing, production and marketing. In
functional organisation, a staff executive is given authority over other people
according to his specialization. Each function should be controlled by one
specialist of the concerned field.
40. What is meant by functional authority?
In functional authority, each function is controlled by one specialist of
the concerned field. A staff executive is given authority over other people
according to his specialization. The specialist is an expert in a particular
field and workers will be controlled by him.
41. What are the characteristics of functional organisation?
i.

Each area is divided according to functions.

ii.

Each function is performed by specialists.

iii.

Functional organizations cover only specific task areas.

iv.

It covers only specific task areas

42. Enumerate the advantages of functional organisation.

i.

Specialization

ii.

Quick training of workers

iii.

Scope for research and growth of the industry

iv.

Expert guidance reduces the accidents and wastage of materials.

43. What is meant by committee organisation?

A committee is a tool for the development of ideas to solve problems
and recommendations of policy and procedure. It brings better plans and
policies for operations and results in better cooperation in their execution.
40

The final decision to put committee recommendations into action rests with
the line.
44. Define staffing.
Staffing function is defined as filling and keeping filled positions in
the organizational structure. This is done by identifying number of
employees required, analyzing the number of employees presently working,
recruiting, selecting, placing, promoting, appraising, planning the careers of,
compensating and training of both candidates and existing employees so that
they can accomplish their tasks effectively and efficiently.
45. List out the functions of staffing in HRD.
i.

Human resources are utilised optimally.

ii.

Skilled and talented people are procured by staffing.

iii.

Staffing helps individuals to achieve their personal goals.

iv.

Staffing improves employer-employee relationships.

46. What do you mean by career strategy?

The career plan which is designed to utilize strengths and overcome
weaknesses in order to take advantage of career opportunities is known as
career strategy.
47. Define recruitment.
According to Edwin B. Flippo,
Recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the organization.
48. What are the internal sources of recruitment?
The internal sources of recruitment are
i. Temporary workers
41

ii. Promotion
iii. Transfer
iv. Apprentice
v. Dependents
vi. Past employees
49. Define selection.
Selection is the process of choosing the most suitable worker for the
job. The aim of selection process is to determine whether a candidate meets
the qualification for a specific job and to choose the candidate who is most
likely to perform well in the job.
9. List out the various steps involved in selection process.
i.

Preliminary screening of applicants

ii.

Preliminary interview

iii.

Application blank

iv.

Checking references

v.

Employment tests

vi.

Psychological tests

vii.

Employment interview

viii.

Final approval/ selection

ix.

Placement

x.

Induction

50. State the various psychological tests used in selection process.

i.

Intelligence tests
42

ii.

Proficiency or aptitude tests

iii.

Personality tests

iv.

Vocational tests

v.

Achievement tests

51. What are the various types of interviews?

i.

Structured interview

ii.

Unstructured interview

iii.

Semi structured interview

iv.

Stress interview

v.

Group interview

vi.

Depth interview

52. What do you mean by interview?

The interview, one of the most helpful tools in the selection process
provides the opportunity for meeting the applicant and observing his verbal
ability, appearance, general personality and attitude as well as chances to get
together and to talk it over.
53. Define induction.
Induction is concerned with introducing or orienting a new employee
to his work-group, supervisor and the organisation. It is the beginning of the
fusion process which helps integration between the organisation goals and
the personal goals of the new employee. It generates a feeling of
belongingness to the organization.
54. State the purpose of induction.
i.

To build the new employees confidence in the organization.

ii.

To promote a feeling of belonging and loyalty to the organization.

43

iii.

To eliminate false impressions about the organizations from the new

employees mind.

iv.

To give the new entrant the information he needs such as location of

restrooms, cafeteria, work time, leave rules, etc.

v.

To foster a close relationship between the old and new workers and
supervisors.

55. Define career development.

Career development is the systematic process of growth and
development by which individuals develop their interests and abilities.
56. List out the various stages involved in career development.
i.

Exploratory stage

ii.

Establishment stage

iii.

Maintenance stage

iv.

Stage of decline

57. Define performance appraisal.

According to Spriegal,
Performance appraisal is the process of evaluating the employees
performance on the job in terms of the requirements of the job.
58. Give any two characteristics of performance appraisal.
i. Performance appraisal is a continuous process by which evaluations
are periodically made.
ii. It is a systematic evaluation of employees strengths and weaknesses
in terms of job requirements.
59. State any two objectives of performance appraisal.
44

i.

To assess the ability of the employee and to make use of his talent in
the present job.

ii.

To prove the justification of different rates of wages to different

workers according to their abilities.

60. State the various types of performance appraisal.

i.

Comprehensive review or approval

ii.

Progress or periodic reviews

iii.

Continuous monitoring

61. Write a short note on periodic appraisals.

Periodic appraisals are conducted at regular intervals. The periodic reviews
are conducted to identify problems and barriers in key result areas. These reviews
improve the communication between superior and subordinates.
62. Give the definition of training.
According to Edwin B. Flippo,
Training is an act of increasing the knowledge and skills of an employee for
doing a particular job. Training involves the development of skills that are
necessary to perform a specific job. Its purpose is to achieve a change in the
behavior of those trained and to enable them to do their jobs better.
63. What are the reasons for training needs?
i.

Technology changing at a fast pace

ii.

Quality conscious customers

iii.

Greater productivity

iv.

Stable workforce

v.

Increased safety

vi.

Better management
45

64. What are the various types of training?

i.

Induction or orientation training

ii.

Job training

iii.

Apprenticeship training

iv.

Internship training

v.

Refresher training or retraining

vi.

Training for promotion

65. What is meant by retraining? Why is it needed?

Retraining is the process of providing training to employees who have
long been in the service of an organisation and have underwent training earlier.
Retraining becomes necessary when the knowledge and skills of employees
become obsolete due to rapid change in technology.
66. State any two objectives of training.
i.

To prepare workers for higher jobs by developing advanced skills in

them.

ii.

To make the workers handle materials and machinery efficiently.

67. Define the term on-the-job training.

Under this method, the worker is given training at the workplace by his
immediate supervisor. It is suitable for imparting skills that can be learned in a
relatively short period of time. It is based on the principle of learning by doing in
an actual work environment.

46

UNIT IV
DIRECTING
1. What is meant by the term directing?
Directing may be defined as the process of instructing, guiding and
inspiring human factors in the organization to achieve organization
objectives. It is not only issuing orders and instruction by a superior to his
subordinates but also including the process of guiding and inspiring them to
work effectively.
2. State the important characteristics of directing.
i.

Directing is an important managerial function through which the

management initiates actions in the organization.

ii.

It is performed at all levels of management. Every manager in the

organization performs his duties both as superior and a subordinate.

iii.

It is a continuous process and it continues throughout the life of the

organization.

iv.

It has dual objectives. It aims at getting work done by the

subordinates and the other hand, to provide superiors opportunities for
the same more important work which their subordinates cannot do.

3. Mention any two scope of directing in the organization.

i.

Directing integrates the employees individual efforts to make it

effective to achieve organisation objectives, since each individuals
performance affects the performance of others in the organisation.

ii.

Without having proper motivation, leadership and communication,

individuals capability and potential may not be fully utilized.
Motivation, leadership and communication are the elements of
directing. Therefore, directing provides the way to utilize capability
of the individual and attempts to get maximum benefits out of them.
47

4. List down the human factors in managing.

i.

Multiplicity of roles

ii.

Individuality

iii.

Personal dignity

5. Define creativity.
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. Creativity exists throughout the population, largely
independent of age, sex and education.
6. Mention the steps involved in creative process.
i.

Saturation

ii.

Preparation

iii.

Frustration and incubation

iv.

Inspiration or illumination

v.

Verification

7. List out some of the characteristics of creative people.

i.

Self-confidence and independence

ii.

Curiosity

iii.

Approach to problems

iv.

Some personal attributes

8. Define innovation.
Innovation means the use of new ideas. These new ideas may be
developed through creativity. In an enterprise, innovation can mean
developing a new product or service, or a new way of doing things.
48

Innovation 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.
9. State the situations that prompt the adoption of innovation.
i.

The unexpected event, failure or success.

ii.

The fact that the difference between what is assumed and what really
is.

iii.

The process or task that needed improvement.

iv.

Change in the market or industry improvement.

v.

Change in the market or industry structure.

vi.

Change in human population.

vii.

Change in meaning or in the way things are perceived.

viii.

Innovation based on knowledge.

10.How are problems solved by creative tool?

Creativity tools are designed to help you devise, creative and
imaginative solutions to problems. It helps you to spot opportunities that
you might otherwise miss.
11.What is a SCAMPER tool?
SCAMPER is a checklist that helps us to think of changes. We can
make to an existing product to create a new one. These changes can be used
either as direct suggestions or as stating points for lateral thinking.
12. What does SCAMPER stand for?
i.

S- Substitute- components , materials, people

ii.

C- Combine mix, combine with other assemblies or services,

integrate
49

iii.

A- Adapt- alter, change function, use part of another element

iv.

M- Modify- increase or reduce in scale, change shape, modify

attributes (e.g. color)

v.

P- Put to another use

vi.

E- Eliminate- remove elements, simplify , reduce to core functionality

vii.

R- Reverse- turn inside out or upside down, also use of reversal

13. What is meant by reframing matrix?

Reframing matrix is a simple technique that helps to look at business
problems from a number of different viewpoints. It expands the range of
creative solutions that you can generate. The approach relies on the fact that
different people with different experience approach problems in different
ways.
14. State the function of mind mapping tool.
This tool is similar to concept fan except looking one step back from
main topic. A mind map consists of a central word or concept with 5 to 10
main ideas that relate to that word, similar to creating a spider-web.
15. Mention the use of DO IT process for creativity.
DO IT is a process for creativity. DO IT bundles aspects of creative
thinking together, introduce formal methods of problem definition and
evaluation. These help to get the best out of the creativity techniques. DO
IT is an acronym that stands for:
i.

D- Define problem

ii.

O- Open mind and apply creative techniques

iii.

I- identify best solution

iv.

T- Transform

16. What are the steps involved in simplex tool?

50

i.

Problem finding

ii.

Fact finding

iii.

Problem definition

iv.

Idea finding

v.

Selection and evaluation

vi.

Planning

vii.

Sell data

viii.

Action

17. Distinguish between creativity and innovation.

Creativity

Innovation

1.

Creativity is the ability to

visualize, generate and
implement new ideas.

The effort of an individual or an

organization to use new ideas to
develop new products or new uses
for existing products or services is
known as innovation.

2.

Creativity is essential to make

decisions or planning.

Innovation is essential to make

new products and to satisfy their
customers.

18.Define brainstorming.
Brainstorming is a technique of developing many creative solutions to
a problem. It works by focusing on a problem, and then coming up with
many radical solutions to it. The essence of brainstorming is a creative
conference, ideally of 8 to 12 people meeting for less than an hour to
develop a long list of 50 or more ideas. Suggestions are listed without
criticism on a blackboard or newsprint as they are offered; one visible idea
leads to others. At the end of this session, participants are asked how the
ideas could be combined or improved.
51

19. Differentiate innovation and invention.

Innovation means the use of creative ideas.
Invention means really finding new things which are not already
available.
20. How can harmonizing objectives be achieved?
i.

Mutual trust

ii.

Cooperation and understanding

iii.

Workers participation in management

iv.

Balancing the objectives of the organisation with those of individuals

21.Define multiplicity of roles.

Individuals are not only the productive factor in managements plans.
They are members of a social system of many organisations. This refers to
the multiplicity of roles played by individuals in organisations.
22. Define motivation.
In the opinion of Stephen P. Robbins,
Motivation is the willingness to exert high levels of effort toward
organizational goals conditioned by the effort ability to satisfy some
individual need
23.Distinguish between motivation and satisfaction.
Motivation
1.

Satisfaction

Motivation is the process of

inspiring and actuating the
workers to accomplish the
objectives of the organization.
52

Satisfaction is the end result of

motivation. It is the happiness that
comes after motivation.

2.

Motivation leads to higher levels Satisfaction makes changes in the

of productivity.
behavior of employees. After
attaining the goals, everyone gets
happiness.

24. Mention the importance of motivation.

i.

Proper utilization of human resources possible since it inspires

employees to make best possible use of different factors of
production.

ii.

Proper motivation improves the efficiency of operation.

iii.

Motivation creates a willingness on the part of workers to do the work

in a better way.

25. State the different types of motivation.

i.

Positive motivation

ii.

Negative motivation

iii.

Extrinsic motivation

iv.

Intrinsic motivation

26.What is power motive?

Intrinsic motivation is called as power motive. Intrinsic motivation is
available at the time of performance of work. These motivations provide a
satisfaction during the performance of the work itself. Some of the intrinsic
motivations are praise, recognition, responsibility, esteem, power, status,
participation, etc.
27.Define morale.
M.S. Viteles defines morale as an attitude of satisfaction, with a desire
to continue in and willingness to strive for the goals of a particular group or
organisation.
53

28. What are the factors determining the morale of a work group?
i.

A feeling of togetherness

ii.

Need for a clear goal or objective to be achieved

iii.

Expectation of success towards the attainment of the goal

iv.

Feeling of each member within the group that he has a meaningful

task to perform for achieving the goals

v.

Supportive and simulative leadership

29. Mention the various factors involved in using motivational techniques.

i.

Money

ii.

Participation

iii.

Quality of working life

30. State the different theories of motivation.

i. McGregors Theory X and Theory Y
ii. Theory Z
iii. Maslows hierarchy of needs theory
iv. Herzbergs motivation- hygiene theory
v. McClellands needs theory
vi. Expectancy theory
vii.

Equity theory

viii. Skinners behaviouralist- reinforcement theory

ix.

Alderfers ERG theory

x.

Carrot and Stick approach of motivation

54

31. Mention the two categories of motives.

The two categories of motives are:
i.

Primary needs: Physiological requirements such as food, sleep, water and

shelter

ii.

Secondary needs: Self esteem, status, affection, accomplishment and

affiliation with others

32. Distinguish motivators and hygiene factors.

Hygiene factors:
According to Herzberg, maintenance or hygiene factors are necessary to
maintain a reasonable level of satisfaction among employees. These factors do not
provide satisfaction to the employees but their absence will dissatisfy them.
Therefore, these factors are called dissatisfiers. Herzberg identified some
maintenance or hygiene factors as
i.

Company policy and administration

ii.

Technical supervision

iii.

Interpersonal relations with subordinates

iv.

Salary

v.

Job security

vi.

Personal life

vii.

Working conditions

viii.

Status

ix.

Interpersonal relations with superiors

x.

Interpersonal relations with peers

55

Motivators:
Motivational factors create satisfaction to the workers at the time of presence
but their absence does not cause dissatisfaction. Herzberg identified some
motivational factors as
i.

Achievement

ii.

Recognition

iii.

Advancement

iv.

Opportunity for growth

v.

Responsibility

vi.

Work itself

Since these factors increase level of satisfaction in the employees, these can be
used in motivating them for higher output.
33. Give the meaning of social needs.
Social needs are for love, friendship, exchange of feelings and grievances,
recognition, conversation, belongingness, companionship, etc. Social needs tend
to be stronger for some people than for others and stronger in certain situations.
34. State the Maslows hierarchy of needs.
Maslow viewed human needs in the form of hierarchy. The hierarchies of
needs are
i.

Physiological needs

ii.

Safety needs

iii.

Social needs

iv.

Esteem needs

v.

Self actualization needs

56

35. Describe the relationship of hygiene factors, motivation factors and job
enrichment.
The factors which give rise to satisfaction are called motivation factors.
They include recognition, achievement, personal growth and challenging work.
The factors which give rise to dissatisfaction are called hygiene factors.
They include salary, working conditions, and company policy and job security.
The motivation factors are related to job content. So job enrichment is used
to improve motivation factors. The hygiene factors are more related to
environment rather than job content.
36. List the three types of basic motivating needs proposed by McClelland.
i.

Need for power

ii.

Need for affiliation

iii.

Need for achievement

37. What are the two assumptions made on equity theory?

i.

Individuals make contributions for which they expect certain rewards.

Inputs include such things as the individuals past training and
experience, special knowledge, personal characteristics, etc.
Outcomes or rewards include pay, recognition, status, prestige, etc.

ii.

Individual compares his input-outcome ratio with the input-outcome

ratio of other members of his level or status in the organisation. If the
individual feels that his ratio is equal to that of others, there is equity.
Therefore, he feels happy and gets motivated. If the ratio is
significantly less than those of others, the individual feels underpaid
and frustrated. If the ratio is significantly more, the individual feels
overpaid and guilty. He is likely to reduce his input of effort to create
equity. Equity relationship can be expressed by

57

Outcomes by a person

= Outcomes by another person

Inputs by a person

Inputs by another person

38. State any two merits of equity theory.

i.

This theory makes managers realize that equity motive tends to be one of the
most important motives of the people in the organization.

ii.

Feelings or perceptions in equity are important factor in work setting.

Management should take necessary steps to develop the perceptual skill of
the people.

39. Define theory-X.

McGregors theory X is concerned with sets of assumptions about human
behavior. Theory- X assumptions are:
i.

Employees are inherently lazy and will avoid work if they can.

ii.

They lack ambition and dislike responsibility.

iii.

They must be controlled, directed and threatened with punishment to

achieve organizational objectives.

iv.

They are by nature resistant to change and they are not very bright.

40. What are the two important assumptions made on Y theory?

i.

Work is as natural as play or rest. The average human being has the
tendency to work.

ii.

External control and threat of punishment are not only means of

reaching the objectives of organisation. Man will have self-direction
and control. By this, organizational objectives can be achieved.

41. Compare Theory X and Theory Y.

58

Theory X

Theory Y

1.

Theory X is pessimistic and rigid.

Theory Y is optimistic, dynamic and

flexible.

2.

People will never like to do work

and they lack ambition and dislike
responsibility.

People like working. Work is as

natural as play or rest for them. They
accept responsibility under proper
conditions.

3.

They must be controlled, threatened,

directed with punishment to achieve
organizational objectives.

They do not have to be controlled or

directed so long as they are
committed to the organizational
objectives.

4.

They are by nature resistant to

change and not very bright.

People are able to exercise

imagination and creativity in the
solution of organizational problems.

42. Mention any two leadership qualities.

(Or)
What are the four basic ingredients of leadership skill?
i.

Physical traits: Activity, energy, appearance and height.

ii.

Intelligence and ability traits: Judgment, knowledge, intelligence and

ability.

iii.

Personality traits: Self-confidence, self-control, enthusiasm, selfmonitoring, creativity, innovative, genuineness and originality.

iv.

Work-related characteristics: Achievement drive, task orientation, drives

for responsibilities and initiative.
59

v.

Social characteristics: Supervisory ability, cooperativeness, tactics,

diplomacy, popularity, prestige.

43. What are the basic ingredients of leadership skill?

i.

The ability to use power.

ii.

The ability to understand people having different motivation at

different times and in different situations.

iii.

The ability to inspire the followers to do work more.

iv.

The ability to develop an organizational climate conducive to

responding and work.

44. Who is a leader?

Leader is one who guides or influences the behavior of others. People who
are guided or influenced are called the followers.
45. Explain leading.
Leading is the process of instructing, counseling, guiding and motivating the
human factor to achieve organizational goals effectively.
46. Define leadership.
Leadership is the process where a person exerts influence over others and
inspires, motivates and directs their activities to achieve goals. Leadership is the
dynamic process whereby one individual in a group is not only responsible for the
groups result but actively seeks the collaboration and commitment of all the group
members in achieving group goals.
47. Mention the various types of leadership styles on the basis of authority.
i.

Autocratic leadership

ii.

Democratic or participative leadership

iii.

Laissez-faire leadership
60

iv.

Benevolent autocratic leadership

v.

Supportive leadership

48. Differentiate between autocratic and democratic leadership.

Autocratic leadership

Democratic leadership

1.

Autocratic leader is called Theory

X leader.

Democratic leader is called Theory

Y leader.

2.

Decision making is centralized and

no quick decisions are possible.

Decentralized decision making and

slow process of decision making.

3.

Punishment and threats are used.

Rewards and involvement are used.

4.

It is more efficient under short run

and emergency conditions.

It is efficient in the long run.

49. Define autocratic leadership.

Autocratic leadership is authoritative, task oriented and restrictive.
Autocratic leader accomplishes tasks by threatening or punishing his subordinates.
He maintains a highly critical and negative relation with his subordinates.
50. Why is leadership essential in an industrial organization?
i.

To secure cooperation among employees.

ii.

Creating confidence in the minds of employees.

iii.

To provide a good working climate.

iv.

To motivate the followers to do work more.

51. List out the theories of leadership.

i.

Trait theory
61

ii.

Behavioral theories

iii.

Situational or contingency theory

52. What do you mean by legitimate power?

Legitimate power is the influence based on the managers authority resulting
by their management position in the organizations hierarchy. For example,
parents, teachers, police, etc. have legitimate power only when their authority is
accepted in the positions they held.
53. State the characteristics of a laissez- faire leader.
Laissez- faire leader gives complete freedom to the group and he does not
provide any leadership. He assumes the role of just another member of the group.
He does not establish any policy or procedure to do the job. Each member of the
group is left alone. Laissez- faire leadership can function effectively if the
employees are sincere and devoted to work.
54. Distinguish between a leader and a manager.
Leader

Manager

1.

Leader leads people.

Manager manages things.

2.

Leader can use his/her informal

influence.

Managers hold formal positions.

3.

Leaders create a vision and inspire Managers achieve results by directing

others to achieve this vision.
the activities of others.

4.

Leader possesses non-sanctioned

influencing ability.

Manager enjoys formal designated

authority.

5.

Leader inspires enthusiasm.

Manager engenders fear.

62

55. Mention the importance of leadership.

i.

Motivating employees

ii.

Leader develops team work

iii.

Better utilization of manpower

iv.

Creating confidence to followers

v.

Directing group activities

vi.

Building morale

vii.

Maintaining discipline

56. State something about weakness of trait theory.

i.

The trait theory did not classify the most important traits and least important
traits.

ii.

The trait theory does not mention the particular traits or characteristics that
separate leaders from non-leaders.

iii.

There is no direct relationship between personal traits and success of leader.

iv.

The same traits cannot be applied to every situation.

v.

Trait theory does not distinguish between traits which are required to acquire
leadership and traits which are needed to maintain leadership.

vi.

Trait theory does not analyze the behavioral patterns.

57. List out few leadership traits.

i.

Leadership based on use of authority

ii.

Managerial grid

iii.

Leadership as a continuum

iv.

Michigan studies
63

v.

Ohio state university studies

vi.

Harvard university studies

58. State Houses path- goal approach.

Leaders are effective because of the influence on followers motivation,
ability to perform and their satisfaction.
59. What are the advantages of democratic leadership?
i.

Better decisions can be made because ideas and suggestions of employees

are considered in decision making.

ii.

Creativity, knowledge and experience of subordinates can be used in

decision making.

iii.

People get job satisfaction and morale.

iv.

Two way communications improve the understanding between superior and

subordinates.

v.

Individual abilities can be developed through participation.

vi.

Subordinates feel more committed to organizational objectives. There is less

resistance to managerial actions.

60. State a few functions of leaders.

i.

Leader develops team work.

ii.

Leader is an appropriate counselor.

iii.

Leader is a representative of subordinates.

iv.

Leader uses power properly.

v.

Leader uses time well.

61. List out the different types of power.

i.

Legitimate power
64

ii.

Reward power

iii.

Coercive power

iv.

Referent power

v.

Expert power

62. What is noise in a communication system?

Anything which affects the communication process is known as noise.
It may be in the sender, the transmission or the receiver stage. If anyone is
affected, the proper communication will not reach the receiver. To ensure
effective communication, we have to provide noiseless environment. In
addition to this, the effectiveness of communication must be checked by the
sender by feedback. It is done for checking the information whether it is
correctly reached or not. Examples of noise are environment, faulty
encoding, interruptions in the channel, inattention, faulty decoding and
incorrect gestures or postures.
63. Define communication.
Communication is the process of transmitting ideas, facts, opinions
and feelings to others. Communication is a mutual interchange process that
occurs between two or more persons.
64. Define effective communication.
The communication after removing the barriers in communication
process and channels is known as effective communication. When the
message sent by the sender to the receiver is understood by the receiver in
the same sense, it is also called effective communication.
65. Bring out the benefits and drawbacks of electronic media in communication.
Benefits:
i.

Faster than conventional methods of communication.

ii.

Communication over long distances is possible.

65

iii.

Productivity will be more.

iv.

In telephonic conversation, manager can clarify doubts and he can come to a

conclusion.

v.

Quality of transmission is high.

Drawbacks:
i.

Initial equipment cost is very high.

ii.

Equipment fault directly affects communication.

iii.

Delay may occur due to heavy traffic in the network.

iv.

Quality of information is less compared to other electronic media.

66. Mention the different types or forms of communication.

I.

II.

Based on communication flow:

i.

Downward communication

ii.

Upward communication

iii.

Horizontal communication

iv.

Diagonal communication

Based on channel:
i. Formal communication
ii. Grapevine or Informal communication

III.

Based on expression:
i.

Written communication

ii.

Oral communication

iii.

Non verbal communication

66

67. List a few suggestions for managers to overcome barriers to communication.

i.

Regulate the flow of information

ii.

Encourage feedback

iii.

Simplify the language

iv.

Listen actively

v.

Constraints negative emotions

vi.

Use nonverbal cues

vii.

Use the grapevine

68. Mention the elements of communication process.

i.

Sender/source

ii.

Encoder

iii.

Transmission channel

iv.

Receiver

v.

Decoder

69. State the characteristics of oral communication.

i.

Oral communication involves conversation.

ii.

It can be made through telephones, intercoms or dictating machines.

iii.

Oral communication can be informal.

iv.

It can be planned or accidental.

70. Define non-verbal communication.

Non-verbal communication is neither in an oral format nor in a written
format and it does not involve words. Smile, gesture, body language, facial
67

expressions, physical appearance and a fist can be considered as a non-verbal

communication.
71. List out the important electronic media which is useful for communication.
i.

Telecommunication

ii.

Telephone answering machines (voice mail)

iii.

Facsimile (FAX) Machines

iv.

Teleconferencing

v.

Closed Circuit Television Systems

vi.

Internet

vii.

Electronic Mail systems

viii.

Electronic typewriters

ix.

Electronic Bulletin Boards

x.

Computers (Main frame, mini and personal)

xi.

Cellular telephones

72. List any four methods of non-verbal communication.

Facial expressions, eye contact, dress, posture, gestures, handshake,
proxemics, chronometry, etc. are some of the methods of non-verbal
communication.
73. State the need for communication.
i.

Basis for planning

ii.

Basis for decision making

iii.

To perform managerial functions effectively

iv.

To facilitate coordination among workers

68

v.

To develop understanding between superiors and subordinates

vi.

To motivate workers

74. Note down the various communicating networks.

i.

Simple chain network

ii.

Wheel or star network

iii.

Y network

iv.

Circular network

75. Differentiate single and multiple channel networks.

Single channel communication

Multiple channel communication

1.

The communication is allowed on

only one path called as line
authority. It is simply referred as
through proper channel.

The communication is allowed in

more than one path.

2.

Communication flow is slow.

Communication flow is faster.

3.

Easy to maintain, orderly in nature.

Potential problems may occur.

4.

Miscommunication is reduced.

Miscommunication is high.

76. State the advantages of oral communication.

i.

It enables the communicator to see the immediate response of the receiver.

ii.

This provides immediate feedback.

iii.

People can ask questions and clarify points.

69

iv.

A meeting with superior may give a feeling of importance to the

subordinates.

v.

It develops a friendly environment, cooperation and team spirit.

vi.

It is more suitable under emergency conditions.

77. What are the barriers involved in effective communication?

i.

Lack of planning

ii.

Semantic distortion

iii.

Selective perception or filtering

iv.

Fear and emotions

v.

Distrust and threat

vi.

Timing of communication

vii.

Overloading of communication

viii.

Loss by transmission and poor retention

ix.

Status symbols

x.

Poor listening and premature evaluation

xi.

Poorly expressed messages

xii.

Unclarified assumptions

xiii.

Faulty organisation

xiv.

Barriers in the international environment

78. State the important rules for effective communication.

i.

Clarify your ideas before communicating

ii.

Examine the true purpose of communication

70

iii.

Consider the physical and human setting in which communication will take
place

iv.

Consult with others, when appropriate, in planning communication

v.

Be mindful of the nonverbal messages you send

vi.

Take the opportunity to convey something to the receiver

vii.

Follow up the communication

viii.

Communicate for tomorrow as well as today

ix.

Be sure actions support communication

x.

Seek not only to be understood but to understand

79. Why is management by wandering around considered effective

communication?
A good management always wants to minimize the conflict with effective
communication. For example, negative communication, blaming communication,
superior communication, dishonest communication and selective communication
can be easily avoided by wandering around considered effective communication.
80. List out the different types of grapevine.
i.

Single chain grapevine

ii.

Gossip grapevine

iii.

Probability grapevine

iv.

Cluster grapevine

81. Define organizational culture.

Organizational culture can be defined as a pervasive underlying set of
beliefs, assumptions, values, shared feelings and perceptions which influence the
actions and decisions taken by the organizations. The same distinguishes one
organization from another.
71

82. Mention the different types of cultures.

i.

Dominant culture and subculture

ii.

Strong and weak cultures

83. What do you mean by dominant culture?

A dominant culture is marked by a ser of core values that are shared by a
majority of the organizational members. It gives a macro view of an organizations
personality. It guides the day-to-day behavior of employees.
84. Write a short note on strong culture.
A strong culture is characterized by the organizations core values being
intensely held and widely shared. The more intensely the core values are shared,
the stronger the culture is. The degree of sharedness depends on two factors:
orientation and rewards. In order for people to share the same cultural values,
orientation programs are organized to tell the new comers about the organizations
philosophy and method of operation. Reward may be in the form of promoting
employees who hold core values which help everyone understand core values.
85. State any two functions of culture.
i.

Culture provides shared patterns of cognitive perceptions or understanding

about the values or beliefs held by the organisation.

ii.

It provides a boundary that creates distinctions between one organisation and

another. It helps to identify members and non-members of an organisation.

86. What are the sources of culture?

i.

Stories

ii.

Rituals

iii.

Symbols

iv.

Languages

87. Define cultural diversity.

72

A variety or multiformity in race, ethnicity, language, tradition, culture,

morality and religion existing within a community, organization, or population is
known as cultural diversity. Diversity is the unification of cultures, providing
reasons why we are more alike than dissimilar. The coexistence of different
ethnic, gender, racial, and socioeconomic groups within one social unit is also
known as cultural diversity.

73

UNIT V
CONTROLLING
1. Define controlling.
Controlling is the process of checking, regulating, verifying or making
adjustments to keep things on track. Controlling is the process by which
managers take preventive or corrective action to ensure that the
organizations mission and objectives are accomplished effectively and
efficiently.
2. State any five types of critical control point standards.
i.

Physical standards

ii.

Cost standards

iii.

Capital standards

iv.

Revenue standards

v.

Program standards

vi.

Intangible standards

vii.

Goals as standards

viii.

Strategic point control

3. What are the three types of control?

i.

Feed forward control

ii.

Concurrent control

iii.

Feedback control

4. Write a short note on feed forward control.

Feed forward control identifies and prevents problems before they
occur. It is the control before an activity commences. It prevents
74

anticipated problems. Feed-forward control ensures that input quality is

high enough to prevent problems when the organisation performs its tasks.
5. State the principle of preventive control.
The principle of preventive control can be stated as follows:
The higher the quality of managers and their subordinates, the lesser will be
the need for direct controls.
6. What do you mean by concurrent control?
Concurrent control gives immediate feedback on how inputs are
converted into outputs. Concurrent control allows managers to correct
problems as they occur.
7. What is feedback control?
In feedback control, corrective action is taken after the damage
occurs. Feedback control is gathering information about a finished activity,
assessing that information and taking corrective actions to improve similar
process in the future. It is the process of adjusting future course of action on
the basis of information about past performance.
8. What are the disadvantages of control?
i. Control is expensive and time-consuming process.
ii. Human behavior and employee morale also cannot be measured.
9. Distinguish between feed forward control and feedback control.

Feed forward control

1.

Feed forward control occurs

before a problem arises.

75

Feedback control
Feedback control occurs after a
problem is over.

2.

Feed forward systems monitor

inputs into a process and input
quality is high enough to prevent
problems.

Feedback control system

measure outputs and take
corrective measures to improve
similar processes in the future.

3.

The example for feed forward

control is a cash budget made by
financial manager. Cash budget
is prepared for the next years
cash flow.

The example for feedback

control is inspection and testing
of products. After the test
results, corrective actions can be
taken.

4.

It avoids wastages and improves

product quality.

It results in more wastage.

10. What do you mean by critical control points?

Critical control points are the standards against which the actual
performance is to be measured. Effective control requires attention on
critical control points to evaluate the actual performance.
11. Define benchmarking.
Benchmarking is the process of identifying, learning and adopting
outstanding practices and processes from any organization anywhere in the
world to help an organization improve its performance.
12. List out the different methods of benchmarking.
i.

Internal benchmarking

ii.

Competitive benchmarking

iii.

Functional benchmarking

iv.

Generic benchmarking
76

13. Define budget.

Budget is a quantitative statement of the plan for a specified period of
time in the future, most typically a period of one year. Budget is a
consolidated statement prepared prior to a definite period of time for the
purpose of obtaining a given objective.
14. What is budgetary control?
Budgetary control is the establishment of budget relating the
responsibilities of executives to the continuous comparison of actual with
budgeted results either to secure by individual action of the objective of that
policy or to provide a basis for revision.
15. Write some objectives of budgetary control.
i.

It aims at the maximization of profits.

ii.

To plan and control the income and expenditure of the organization.

iii.

To provide an adequate working capital.

16. State any two benefits of budgetary control.

i.

Budgets help management to look at the success or failure of past

budgets, isolate errors and analyze their causes.

ii.

Budgets serve as a means of co-ordination. Budgets integrate the

various activities of the organization.

iii.

Budgets help to minimize waste and unproductive use of financial and

other resources. They help to keep expenses under control and to
increase profit.

iv.

Budgets motivate employees because employees will know their

responsibility and standards by which their performance can be
evaluated.

17. Write the limitations of budgeting.

77

i.

Over-budgeting results in rigidity and confusion.

ii.

Budgets are based on the forecasts or historical data. Inaccuracy in

the forecast will affect the budget.

iii.

A budget can not reveal various inefficiencies of a manager.

iv.

Establishing budgetary control in an organisation is very expensive

and it requires money, time and efforts.

18. State the two methods of budgeting.

i.

Zero-base budgeting

ii.

Performance budgeting

19. What do you understand by zero-base budgeting?

Zero-base budgeting requires the management to take a fresh look at
all programmes and activities each year rather than preparing budgets on the
basis of last years budget. The zero-base budgeting is constructed from a
zero base. In zero-base budgeting, last years budget allocations are not
considered as a basis for current years budget. In zero-base budgeting, a
comprehensive analysis is made every time when a new budget is prepared,
based on the changed importance of different variables in the situation. In
zero-base budgeting, the key element is future-objective orientation of past
objectives.
20. Define performance budgeting.
Performance budget is input or output budget or costs/results budget.
It is mainly used in government. Performance budgeting controls and
coordinates the use of resources for a specified period.
21. What are the classifications of budgets?
i.

Functional budgets

ii.

Transaction types
78

iii.

Activity types

iv.

Time interval basis

22. Mention the various types of functional budgets.

i.

Sales budget

ii.

Production budget

iii.

Material budget

iv.

Labor budget

v.

Manufacturing overheads budget

vi.

Administrative overhead budget

vii.

Distribution overhead budget

viii.

Cash budget

23. How do you classify budgets on the basis of time?

i.

Continuous budget

ii.

Periodic budget

24. State the types of transaction budgets.

i.

Operating budget

ii.

Capital budget

25. Give examples for activity level budgets.

i.

Flexible budget

ii.

Fixed budget

iii.

Master budget

26. What do you mean by master budget?

79

All the functional budgets are collected into one budget known as
master budget. Master budget is a statement of budgeted profit and loss
together with a projected balance sheet. The master budget incorporates all
the functional and operational budgets such as sales budget, production
budget, material budget and overheads budget, etc.
27. What do you understand by flexi-budgets?
Flexi-budget is otherwise known as variable budget. Flexible budget
reflects the changes in expenditure as a result of changes in volume of
production.
28. Write some advantages of flexible budgets.
i.

Flexible budget is a useful tool for controlling costs.

ii.

It is more realistic and practical.

iii.

It traces the impact of various levels of activity on profits.

29. What are the steps for the effective implementation of budgetary control?
i.

Support of top management

ii.

Flexibility

iii.

Budget education

iv.

Participation

30. What are the factors which will be considered for the production budget?
i.

Production stability

ii.

Plant capacity

iii.

Time

iv.

Sales requirements

31. What is direct labor budget?

80

Labor budget provides details about labor requirements in quantity

with estimated costs. Labor budget is the forecast of direct and indirect
labor requirements to meet the demands of the company.
32. What are the data required for preparation of sales budget?
i.

Past sales data

ii.

Plant capacity

iii.

Financial resources available

iv.

Raw material available

33. What is cash budget?

Cash budgets are prepared after the completion of all the functional
budgets. Cash budgets are the total sum of all the functional budgets in
monetary terms. This budget gives an estimate of the anticipated receipts
and payments of cash during the budget period.
34. What is fixed budget?
A fixed budget is a budget designed to remain unchanged. Fixed
budget does not change with changes in activities. Fixed budgets can be
prepared for a small period of time. Fixed budget is a budget designed to
remain unchanged irrespective of the level of activity actually attained.
35. What are the steps involved in Zero-based budgeting (ZBB) process?
i.

Decision package

ii.

Ranking

iii.

Allocation of resources

36. Explain the significance of ZBB.

i.

ZBB is also an educational process that can promote the development of

the management team.
81

ii.

Managers tend to evaluate in their operations, efficiency and cost

effectiveness not only during the budget cycle but also throughout the
operating cycle.

37. How do use personal observation of budgetary control?

Managers observed their subordinated characters, attitudes and skills.
Mistakes committed by the workers can be corrected by the manager
directly.
38. What is critical point control?
The points selected for critical process is called critical points. The
principle of critical point control is one of the most important control
principles states. The effective control requires an attention to those factors
critical to evaluate the performance against plans.
39. What is break-even analysis?
Break-even analysis is a method of determining the relationship
between total revenues and total costs at various levels of production so as to
establish a breakeven point.
40. State some of the advantages of break-even analysis.
i.

Break-even analysis provides the relationship between cost, output and

profit relationship.

ii.

It is helpful in forecasting profits.

iii.

It is helpful in selecting the best product mix.

41. What is the inter-relationship between planning and control?

The management process begins with planning and ends with control.
The planning determines standards for performance. A control helps in
achieving them.
42. What is Management by Exception (MBE)?
82

Management by Exception (MBE) states that only significant

deviations from established standards should be brought to the notice of the
management.
43. Write some advantages of management by exception?
i.

This is used to identify important problems.

ii.

It reduces the unnecessary burden of the top management.

iii.

It provides a better utilization of managerial talent and knowledge.

44. Who are the users of financial statements?

i.

Shareholders

ii.

Creditors

iii.

Employees

iv.

Trade unions

v.

Managers

vi.

Economists

vii.

Members of parliament

viii.

SEBI

ix.

Government departments

x.

Tax authorities

xi.

Financial institutions

xii.

Commercial banks

45.What are the limitations of financial statements?

i.

The data given in these statements are only approximate.

83

ii.

Current price changes are not considered for valuing the assets of the
business.

iii.

Non-monetary factors are ignored while preparing the financial

statements.

iv.

Information is incomplete.

v.

Qualitative information is ignored.

46.What do you mean by balance sheet?

A balance sheet is the statement which sets out the financial
conditions of a business company. Balance sheet contains profit and loss
amount which will give vital information about the financial position and
operation of the company. A balance sheet is also described as a statement
showing the sources and application of capital. It is a statement, not an
account.
47.Write the format of a balance sheet.
X Ltd. Balance sheet as on 31st Dec. 1998
Capital and
liabilities

Amount (Rs.)

Assets and
property

Amount (Rs.)

Capital

--------------

Fixed Assets

--------------

Reserves and
surplus

--------------

Investments

--------------

Long term
liabilities

--------------

Current Assets

--------------

Current

--------------

Miscellaneous

--------------

84

liabilities and
provisions

asset
--------------

--------------

--------------

--------------

48. Give the importance of a balance sheet.

i.

The balance sheet is considered to be a more important document than

the profit and loss account.

ii.

The balance sheet gives a clear picture of the financial position of the
business.

iii.

It reflects the result of all recorded accounting transactions since the

enterprises is promoted.

iv.

It is a cumulative record of the progress of the business.

49. Define asset.

Asset is the cost which represents the expected future economic
benefits to the business.
50. What are fixed assets?
Fixed assets are those assets used in the business permanently.
Examples of fixed assets are buildings, machinery.
51. What do you mean by current assets?
Current assets are assets which are reasonably expected to be realized
in cash. Examples of current assets are cash in bank, D.D.
52.Define liabilities.
Liabilities represent obligations which require a settlement in future.
85

53.What are fixed liabilities?

The liabilities that are payable only on the termination of business are
known as fixed liabilities. An example of fixed liabilities is paid up capital.
54. What do you understand from current liabilities?
The liabilities that are payable within a year or due date are known as
current liabilities. Examples of current liabilities are bills payable, short
term bank overdraft.
55. What do you mean by cash flow statement?
A cash flow statement shows the impact of transactions on cash
position of the firm and includes all transactions on cash position of the
company. The cash flow statement analyses the source and uses of cash in
the company.
56. Write a short note on income statement.
The income statement is also known as profit and loss account. It
performs a report recording, such as change in income, expenses, profits and
losses as a result of business operation during the year. It summarizes the
revenues and expenses of the period.
57. State some of the key words of cost control.
i.

Assets

ii.

Fixed assets

iii.

Current assets

iv.

Liabilities

v.

Fixed liabilities

vi.

Current liabilities

58.Give any two advantages of cash flow statement.

86

i.

Cash flow statement is useful in the evaluation of cash position of the

company.

ii.

It helps the management to plan the repayment of loan, and long term
planning.

59. Define production.

Production is defined as the step-by-step conversion of raw material into
finished products through chemical or mechanical processes to create the finished
product. For example, copper exists in nature as an ore. It is converted into copper
plates by chemical process.
60. List out the objectives of purchasing department.
i.

Better purchasers can save a firms financial resources.

ii.

By scientific purchasing, cost would be reduced and in turn it will also

reduce the inventory asset base.

iii.

The effectiveness of the purchasing function will have an impact in other

operating results.

iv.

Purchasing uses majority of a firms financial resources to procure materials

for manufacturing processes.

61. Mention the types of special purchase systems.

i.

Forward buying

ii.

Tender buying

iii.

Blanket order

iv.

Zero stock

v.

Rate contract

62. List out the various methods of purchasing.

i.

Purchasing according to the requirement

87

ii.

Price forecasting method

iii.

Purchasing for some definite future period

iv.

Market purchasing

v.

Speculative purchasing

vi.

Contract purchasing

vii.

Scheduled purchasing

viii.

Public buying

ix.

Tender purchasing

63. Define maintenance control.

Maintenance control is the process of keeping the machine and
equipment in good working condition, so that the efficiency of the machine
is retained and its life is increased. Plant maintenance control is a
combination of actions carried out by an organization to replace, repair
service the machineries, components or their groups in a manufacturing
plant, so that it will continue to operate satisfactorily.
64.State the basic functions of maintenance.
i.

Inspection

ii.

Repair

iii.

Overhaul

iv.

Lubrication

v.

Salvage

65. Mention the two types of maintenance practices.

i.

Breakdown maintenance

ii.

Preventive maintenance
88

66. What do you mean by breakdown maintenance?

In the case of breakdown maintenance, the equipment is generally
attended to only when it breaks down. Only when it becomes out of order, it
is repaired and set right. Next maintenance is down when it breaks down
again.
67.State any two disadvantages of breakdown maintenance.
i.

Planning of maintenance work is not possible.

ii.

Distribution of work load is difficult.

iii.

Result is imbalanced utilization of maintenance staff.

68.Define preventive maintenance.

Preventive maintenance is a systematic maintenance procedure where
in the condition of the plant is constantly watched through a systematic
inspection and preventive action is taken to reduce the incidence of
breakdown.
69.Compare preventive and breakdown maintenance.
Breakdown maintenance

Preventive maintenance

1.

Maintenance is done after

breakdown.

It is done to prevent breakdown.

2.

The time of breakdown is

unanticipated. So the
maintenance cannot be planned.

Maintenance work is planned and

scheduled in a well advanced
manner.

3.

Cost due to downtime is more.

No downtime.

89

4.

Production loss takes place.

No production loss.

5.

It affects the quality of the goods Preventive maintenance improves

produced by that equipment and the quality of the goods.
machineries.

6.

The breakdown maintenance

Preventive maintenance is planned
cannot be planned and scheduled and scheduled systematically and
as systematically and effectively effectively.
as preventive maintenance.

70.Write any four advantages of preventive maintenance.

i.

Reduced breakdown and down time.

ii.

Lesser overtime to maintenance people.

iii.

Greater safety to workers.

iv.

Low maintenance and repair cost.

71.Define quality control.

Quality control is the procedure that is followed to achieve and
maintain the required quality. Quality control aims at prevention of
producing defective products.
72.List out the dimensions of quality.
i.

Performance

ii.

Features

iii.

Conformance

iv.

Reliability
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v.

Durability

vi.

Service

vii.

Response

viii.

Reputations

73.What do you understand by statistical quality control (SQC)?

Statistical quality control (SQC) means controlling the quality
characteristics of a product or process using statistical method.
74.Mention the types of control charts used in statistical quality control.
i.

Control charts for variables

ii.

Control charts for attributes

75.Write a short note on control charts for attributes.

Control charts for attributes are used when the parameter under
control is the proportion or fraction of defectives. Control charts for the
number of defects per unit are used when a single defect may not be of great
significance but a large number of defects would add up to a defective
product.
76.List at least four advantages of statistical quality control.
i.

Improvement in product quality

ii.

Reduction of scrap and rework

iii.

Product quality is uniformly maintained

iv.

SQC satisfies production department and the customer

77. Define the term productivity.

Productivity is defined as the ratio of output produced to the input
resources utilised in production. Productivity is an attitude of mind;
91

certainty of being able to do better today than yesterday; continual effort to

apply new techniques and methods.
Productivity=Output produced
Input resources
78.Define operations management.
Operations management is defined as the decision making that
involves decision making, planning and management of many factors that
affect operations.
79. Write some of the requirements that must be fulfilled to ensure the JIT
method of work.
i.

The quality of the parts should be very high; a defective part can hold
up the assembly line.

ii.

There must be smooth relationship between suppliers.

iii.

Suppliers should be located near the company.

80. What are the uses of computers in handling the information?

i.

Computers are used in processing financial information such as

account statements, pay roll and capital budgeting.

ii.

Forecasting information can be handled by computers.

iii.

Design information can also be obtained with the help of computer.

81. What is MIS?

MIS is defined as an integrated, user-machine system to provide
information to support operations, management and decision-making
functions in an organization.
82.Define JIT.

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JIT is defined as the philosophy that focuses attention on eliminating

waste by purchasing or manufacturing just enough of the right items at the
right time.
83. What are Quality circles?
Quality circles are small groups of people doing similar work who
together with their superiors voluntarily meet for an hour a week to study
and solve work related problems which affects them.
84. What do you mean by CIM?
The integration of computer aided design, computer aided
manufacturing and computer aided process planning is known as Computer
Integrated Manufacturing (CIM).
85. What is internal audit?
Internal audit is defined as the systematic and independent
examination to check whether these planned arrangements are implemented
effectively to achieve required objectives. Internal audit is done by internal
auditors who are an employee of the organization. He examines the
objectives, policies, plans, procedures and performance of the management.
86.What are the traditional techniques of control?
i.

Personal observation

ii.

Break-even analysis

iii.

Statistical reports

iv.

Budgetary reports

87.Mention the modern techniques of control.

i.

Management audit

ii.

Return on Investment (ROI)

iii.

PERT and CPM

93

iv.

MIS

v.

Human Resource Accounting

88. What do you mean by PERT and CPM?

In both techniques, a project is decomposed into activities and then all
activities are integrated in a highly logical sequence to find the shortest time
required to complete the entire project.
89. Write some uses of PERT and CPM.
i.

It forces the right actions, right point and right time in the
organization.

ii.

It is used to work out the cost estimates of a project.

iii.

It is used to determine manpower, material and capital requirements.

90. State the differences between PERT and CPM.

Sl.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 a probabilistic model.

91. List out the three types of time for PERT technique.
i.

Optimistic time

ii.

Pessimistic time
94

iii.

Most likely time

92. What is optimistic time?

Optimistic time is the shortest time in which everything goes
exceptionally well.
93. What is Pessimistic time?
Pessimistic time is the time estimate, in which everything goes wrong.
94.What are the disadvantages of PERT and CPM?
i.

It forces planning; it will not make a control automatic.

ii.

It is expensive and time consuming process.

95. Define MIS.

MIS is more advanced technology for solving its basic requirements.
It is a system of obtaining, abstracting, storing and analyzing data to
productions information for the use in planning, controlling and decisionmaking by the managers at the time. They can most effectively be used.
96. What are the characteristics of MIS?
i.

MIS must be simple.

ii.

MIS helps in decision making process.

iii.

MIS should be clear.

iv.

MIS should help in resolving the complicated problems effectively.

97.What are MIS resources?

i.

Computer Hardware

ii.

Software

iii.

Data

iv.

People
95

98. What are the applications of MIS?

i.

To find out new applications

ii.

To provide sales forecasting

iii.

To allocate resources

iv.

To provide effective managerial activities

99.What is a decision support system?

A decision support system (DSS) is a specialized MIS designed to
support a managers skill at all stages of decision making, identifying the
problem, choosing the relevant data and evaluating the alternative courses of
action.
100. State some of the objectives of MIS.
i.

To provide the information up to date.

ii.

To take effective decision making.

iii.

To provide the right information available in the right form at the right
time.

101. How to use of MIS for Middle Management?

MIS gives information about marketing level, problems with customers, and
reduction in sales, and quality of product.
102. What are the factors affecting productivity?
i.

Technology

ii.

Human resources

iii.

Government Policy

iv.

Machinery and equipment

v.

Skill of the worker

96

103. Mention the factors to be considered for product design.

i.

Marketing

ii.

Government policy

iii.

Production

iv.

Technology

v.

Product quality

104. State the benefits of increasing productivity for workers.

i.

Job satisfaction and job security

ii.

Promotion

iii.

Higher salary

iv.

Better working conditions

105. Define OR.

Operations Research is a systematic analysis of a problem through scientific
methods, carried out by appropriate specialists, working together as a team,
finding an optimum and the most appropriate solution to meet the given
objective under a set of constraints. It involves the use of scientific models or
conceptual frameworks to represent real situations.
106. What are the steps involved in solving a problem through OR?
i.

Formulation of the problem

ii.

Construction of a mathematical model

iii.

Deriving the solution from the model

iv.

Test the model

v.

Install a feedback mechanism

vi.

Implementation of the final results

97

107. Mention some of the disadvantages of OR.

i.

It is not qualitative.

ii.

It does not consider the human factors.

iii.

It can be used only for specified problems.

108. Give some techniques used in OR.

i.

Linear programming

ii.

Assignment problem

iii.

Transportation model

iv.

Game theory

v.

PERT/CPM method

vi.

Decision tree approach

109. List out some of the applications of OR.

i.

National planning and budgeting

ii.

Defense service operations

iii.

R & D engineering

iv.

Agriculture and irrigation

v.

Business management and competition

vi.

Education and training

110. Give some of the applications of OR in defense.

i.

Development of new technology

ii.

Inventory control

iii.

Optimization of cost and time in defense projects

98

iv.

Effective battle strategies and tactics

111. What are the applications of OR in the area of business management?

i.

Selection of business and area of application

ii.

Decision making under competition

iii.

Optimum advertisement turtle

iv.

Market survey and analysis

v.

Market research techniques

vi.

Capital investment and returns

112. How is OR used in the field of education and training?

i.

Optimum mix of student/teachers ratio

ii.

Optimum number and location of examination centers

iii.

Demand and supply of textbooks and stationary

113. What are the important functions of operations research?

i.

Optimization of resources

ii.

Minimizing time

iii.

Maximizing profit

iv.

Selecting the best alternative

114. Mention the tools and techniques available for making operations more
productive.
i.

Linear programming

ii.

Assignment problem

iii.

Transportation model
99

iv.

Game theory

v.

PERT/CPM method

vi.

Decision tree approach

115. Define linear programming.

Linear programming is a versatile mathematical technique in
Operations Research and a plan of action to solve a given problem involving
linearly related variables in order to achieve the laid down objective in the
form of minimizing or maximizing the objective function under given
conditions. It involves the development of linear equations to obtain the best
solution for the allocation of the problem.
116. Give some uses of LPP.
i.

Optimum product mix to maximize the profit.

ii.

Optimum schedule of orders to maximize the total cost

iii.

Optimum staffing in hotels, police stations and hospitals to maximize

the efficiency.

iv.

Optimum facilities in telephone exchange to have minimum

breakdowns.

117. What is inventory control?

Inventory control refers to the control of raw materials and purchased
materials in store and regulation of investment in them. It is the function of
directing the movement of goods through the entire manufacturing cycle
from the requisitioning of raw materials to meet the objectives of maximum
customer service with minimum investment and efficient plant operation.
118. Write any four importance of inventory control.
i.

Efficient utilization of resources.

ii.

It provides and maintains the best consumer service.

100

119. Define Economic Order Quantity.

Economic Order Quantity (EOQ) is the size of the order that yields
optimum total incremental inventory cost during the given period of time
under the assumption that the demand rate is constant and known as
EOQ = 2C3R C1
Where

C3 = Order cost
C1 = Inventory carrying cost/unit /unit time

R= Demand for the product

120. Write some advantages of JIT.
i.

Inventory cost is reduced.

ii.

It leads to job satisfaction of employees.

iii.

It improves the efficiency of workers.

iv.

Quality product.

121. What are the disadvantages of JIT?

i.

Stoppage of any one machine will affect the work.

ii.

The suppliers do not deliver the materials before the work starts. It
affects the continuous work.

122. What is value engineering?

Value engineering or value analysis is a tool of management which
attempts the question of saving cost from the point of view of value or in
other words the main aim is to study the relationship between the design
function and cost of a part, keeping in view to reduce part and cost through
change in design, modification in specification of the material used by
changing the source of supply and so on.
123. List out the objectives of value engineering.
101

i.

Modify and improve product design

ii.

Reduce the product cost

iii.

Increase the profit

iv.

Simplify the product

124. Mention the uses of value engineering.

i.

It prevents over-design.

ii.

It increases the profits.

iii.

Job satisfaction to the employees.

125. What are the advantages of quality circles?

i.

Increases productivity

ii.

Reduction of costs

iii.

Reduction of wastes

iv.

Increases the self confidence and job satisfaction

126. What do you mean by CAD?

CAD (Computer Aided Design) is a method by which computers are
used for creation, modification, analysis and optimization of designs to
increase productivity.
127. State the steps in value engineering.
i.

Blast

ii.

Create

iii.

Refine

128. What do you mean by Gantt chart?

102

Gantt chart involves the representation of work progress over a period

of time in the form of bar chart.
129. Define financial controls.
Financial control helps an organization to control its financial
resources.
130. How is ROI calculated?
i.

Investment Turnover =

Sales
Capital employed or investment

ii.

Percentage profit on sales = Profit

x 100

Sales
iii.

Return on capital employed =

Profit

x 100

Capital employed
131. What are the advantages of ROI?
i. ROI measurement shows business efficiency.
ii. It is used in inter-departmental comparison.
Iii.ROI is used for top management for budget decisions.
132. What are the limitations of ROI?
i. Depreciation cannot be considered.
ii. It does not give a correct judgment of financial analysis.
133. What is direct control?
The process of identifying the cause of a negative deviation and
making efforts to rectify the deviations is known as direct control. The
negative deviation indicates that the performance is less than the standard.
134. State some of the factors which affect the direct control.
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i. Uncertainty
ii. Lack of knowledge
iii.Lack of communication
iv.Lack of coordination
135. What are the effective steps for direct control?
i. Performance can be measured.
ii. Effectively utilizes time.
iii. Errors can be discovered on time.
iv. Coordination
136. What is preventive control?
An efficient manager applies the skills in managerial philosophy to eliminate
an undesirable activity which are the reasons for poor management. It is known as
preventive control.

104

PART B (16 MARKS)

UNIT I
OVERVIEW OF MANAGEMENT
1. Describe the principles of organization briefly.

2.

i.

Principle of unity of objective

ii.

Principle of specialization or division of work

iii.

Principle of organizational efficiency

iv.

Principle of co-ordination

v.

Principle of span of control

vi.

Principle of authority and responsibility

vii.

Principle of unity of command

viii.

Principle of definition

ix.

Principle of correspondence

x.

Principle of balance

xi.

Principle of continuity

xii.

Principle of chain of command

xiii.

Principle of flexibility

xiv.

Principle of simplicity

Explain the different theories of organizations in detail.

I.
II.

Classical organization theory

Neo-classical organization theory
105

III.

Modern organization theory: systems approach

3. What are the various types of business organizations? Write short notes on
each.
I.

II.

Private Sector Organizations

i.

Sole proprietorship or Individual ownership

ii.

Partnership organizations

iii.

Joint stock companies

iv.

Cooperative societies

Public Sector Organizations

i.

Departmental organizations

ii.

Public corporations

iii.

Government companies

4. Discuss in detail about the debate as to whether management is a science or an

art.
i.

Introduction

ii.

Management as Science

iii.

Management as Art

iv.

Management: Both Science and Art

5. I. Describe briefly about the features of management. (8)

i.

Organized activities

ii.

Existence of objectives

iii.

Relationship among resources

iv.

Working with and through people

106

v.
II.

Decision Making

Explain the importance of management. (8)

i.

Effective utilization of resources

ii.

Development of resources

iii.

To incorporate innovations

iv.

Integrating various interest groups

v.

Stability in the society

6. Explain in detail about Taylors scientific management.

I.
II.

III.

Introduction
Elements and Tools of Scientific Management:
i.

Separation of Planning and Doing

ii.

Functional Foremanship

iii.

Job Analysis

iv.

Standardization

v.

Scientific Selection and Training of Workers

vi.

Financial incentives

vii.

Economy

viii.

Mental Revolution

Principles of Scientific Management:

i.

Replacing Rule of Thumb with Science

ii.

Harmony in Group Action

iii.

Cooperation
107

IV.
V.

iv.

Maximum Output

v.

Development of Workers

Followers of Scientific Management

Critical Analysis of Scientific Management

7. Describe in detail about Henry Fayols Administrative management.

I.

Introduction

II.

Managerial Qualities and Training

III.

General Principles of Management

i.

Division of Work

ii.

Authority and Responsibility

iii.

Discipline

iv.

Unity of Command

v.

Unity of Direction

vi.

Subordination of Individual Interest to General Interest

vii.

Remuneration of Personnel

viii.

Centralization

ix.

Scalar Chain

x.

Order

xi.

Equity

xii.

Stability of Tenure

xiii.

Initiative

xiv.

Esprit de Corps
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IV.

Elements of Management

V.

Relevance of Fayols Principles

8. I. Describe the various functions of management. (8)

i.Planning
ii.Organizing
iii.Staffing
iv.Directing
v.Controlling
II. Explain the three levels of management in organizations with diagram. (8)
i. First Line Managers
ii. Middle Level Managers
iii. Top Level Managers
9. Explain in detail about the various views on management and administration.
I.

II.
III.

Administration:
i.

Formulation of corporate policy

ii.

Coordination of finance, production and distribution

iii.

Settlement of the compass of an organization

iv.

The ultimate control of executive

Management:
Three different views of administration and management:
i.

Administration is broader than management

ii.

Administration is part of management

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iii.

Administration and management are identical

10.Explain the various roles of managers according to Mintzberg.

Mintzberg identified ten roles and the roles are classified into three
categories:
IV.

Interpersonal roles:
i.

Figurehead role

ii.

Leader role

iii. Liaison role

V.

Informational roles:
iv. Monitor role
v. Disseminator role
vi. Spokesperson role

VI.

Decision role:
v. Entrepreneur role
vi. Disturbance handler role
vii.

Resource allocator role

viii. Negotiator role

IV.
V.

Validity of Role Approach

Reconciling Management functions and roles

11. Write an essay on the evolution of management thought.

I.
II.

Management in the ancient times

Management in the medieval period
110

III.

Management during the industrial revolution

IV.

Schools of Management thought:

i.

Scientific management

ii. Administrative management

iii. Behavioral management
iv. Management science
v. Organizational environment
12. Explain in detail about an organizations environmental factors.
i.

Economic environment

ii.

Political- legal environment

iii.

Technological environment

iv.

Socio-cultural environment

v.

Competitive environment

13.Define international management. Describe the various modes of international

business.
I. Definition
II.Modes of international business:
i.

Exporting

ii.

Licensing

iii.

Franchising

iv.

Joint Ventures

v.

Foreign subsidiary
111

vi.

Management contracts

vii.

Local warehousing and selling

viii. Local assembly and packaging

14. Write a detailed essay on Multinational Corporations (MNCs). Also explain
about their merits and demerits.

I.
II.

III.

I.

Characteristics

II.

Types:
i.

Ethnocentric companies

ii.

Polycentric companies

iii.

Regiocentric companies

iv.

Geocentric companies

Strategies
Reasons for the growth of MNCs:
i.

Expansion of market territory

ii.

Marketing superiorities

iii.

Financial superiorities

iv.

Technological superiorities

v.

Product innovations

Advantages:
i.

Lower Labor Costs

ii.

Potential for high rate of return on investment

iii.

Expanded markets
112

IV.

iv.

Capital Resources

v.

Availability of natural resources

Harmful effects:
i.

Distortion of economic structure

ii.

Political interference

iii.

Technology transfer not conducive to development

iv.

Payment of dividends and royalty

15. Explain about international management in selected countries in detail.

I. Japanese management and Theory Z:
i.

Life time employment

ii.

Decision making

iii.

Theory Z

II.Germany
III.

France:
i. Le plan
ii. Cadre

IV.

Korean management

V. Management in other countries:

i.

Australia

ii.

India

iii.

Italian

iv.

Britain
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16.Give a detailed account of globalization along with its advantages and

disadvantages.
I.

Introduction

II.

Meaning

III. Advantages
IV. Disadvantages
V.

Factors behind globalization

a) Pull factors:
i.
ii.

Profit advantage
Growth prospect

b) Push factors:
i.

Domestic market constraints

ii.

Competition

iii.

Government policies and regulations

iv.

Spin-off benefits

v.

Strategic vision

17.Explain in detail about the various methods of globalization.

i.

Exporting

ii.

Licensing and Franchising

ii.

Joint ventures

iv.

Fully owned manufacturing facilities

v.

Assembly operations
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vi.

Mergers and acquisitions

vii. Strategic alliance

viii. Contract manufacturing
ix.

Management contracting

x.

Counter trade

18.Discuss the unified global theory of management in detail.

i.

The Empirical approach

ii.

The Systems approach

iii.

Situational or contingency approach

iv.

Merging motivation and leadership theories

v.

Organization development approach

vi.

Discuss the various strategies for international business in detail.

I. Basic Areas:
i.

Scope

ii.

Resource

iii.

Uniqueness

iv.

Synergy

II.Strategic mix:
i.

Corporate strategies:
a. Curtailment goal
b. Status-quo goal
c. Growth goal
115

d. Diversification goal
ii.

Business Strategies:
a. Defender Strategy
b. Reactor Strategy
c. Analyzer Strategy
d. Prospector Strategy

i.

Functional strategies:
a. Production Strategy
b. Marketing Strategy
c. Finance Strategy
d. Personnel Strategy
e. R & D Strategy

III.Strategy implementation:
a. Organizational structure
b. Control mechanism
c. Information system
d. Evaluation system

116

UNIT II
PLANNING
1. Describe in detail the nature of planning.
i.

Planning is pervasive in nature.

ii.

Planning is primary in nature.

iii.

Planning is continuous in nature.

iv.

Planning is flexible in nature.

v.

Planning is goal oriented.

vi.

Planning is an integrated process.

vii.

Planning is forward looking.

viii.

Planning is an intellectual process.

ix.

Planning involves choice.

x.

Planning includes efficiency and effectiveness dimensions.

2. Explain the purpose or importance of planning in detail.

i.

Planning determines the direction of an organization.

ii.

Planning provides a basis for teamwork.

iii.

Planning is economical as it minimizes cost.

iv.

Planning adapts to the changes in environment.

v.

Planning provides co-ordination.

vi.

Planning reduces risks or uncertainty.

vii.

Planning facilitates decision making.

viii.

Planning encourages innovation and creativity.

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ix.

Planning improves morale.

x.

Planning improves morale.

xi.

Planning facilitates control.

xii.

Planning facilitates participation.

3. Explain about the various steps involved in planning.

ix.

Being aware of opportunities.

x.

Establishing objectives.

xi.

Considering planning activities.

xii.

Identifying alternatives.

xiii.

Evaluating alternative courses of action.

xiv.

Choosing a best alternative course of action.

xv.

Formulating derivative plans.

xvi.

Numerising plans by budgeting.

4. Classify the various types of plans in detail.

i.

Mission

ii.

Objectives or goals

iii.

Strategies

iv.

Policies

v.

Procedures

vi.

Rules

vii.

Programs

viii.

Budgets
118

5. Explain the characteristics of objectives in detail.

i.

Hierarchy of objectives

ii.

Objectives are multiple in nature.

iii.

Long range-short range objectives

iv.

Objectives should be specific and measurable.

v.

Objectives are interdependent.

vi.

Objectives must cover key result areas.

vii.

Objectives should have defined time period.

viii.

Objectives should have priority.

ix.

Objectives should be challenging but realistic.

x.

Objectives should be linked to rewards.

6. Give a detailed account of the benefits of objectives.

i.

Unity of planning

ii.

Motivate subordinates

iii.

Objectives facilitate coordination.

iv.

Objectives provide better control.

v.

Objectives facilitate direction.

vi.

Basis for planning

vii.

Basis for measuring performance

viii.

Legitimacy

7. Describe the various steps involved in the process of MBO in detail.

i.

Set objectives.
119

ii.

Identify key result areas.

iii.

Participatory or joint objective setting.

iv.

Make action plan.

v.

Review progress and take corrective action.

vi.

Appraise performance.

8. Explain the benefits of MBO (Management by Objectives).

i.

Employees can be motivated because they participate in the goal

setting process.

ii.

Performance can be improved because MBO concentrates on

objectives.

iii.

Unnecessary efforts will be minimized because objectives are set

clearly.

iv.

MBO helps managers to exercise better control over employees.

9. What are the limitations of MBO?

i.

MBO involves too much paper work and holding of many meetings.

ii.

MBO is a time consuming process.

iii.

An environment of poor employer- employee relations reduces MBO

effectiveness.

iv.

Failure to teach the philosophy of MBO weakens the MBO program.

10. Compare strategic planning with tactical and operational planning.

11. Classify the different types of strategies and explain them in detail.
III.

Grand strategy:
i.

Stability strategy

ii.

Growth strategy
120

iii.
IV.

Retrenchment strategy

Global strategy:
i.

Globalization strategy

ii.

Multidomestic strategy

iii.

Transnational strategy

12. Mention the three levels of strategy and explain them in detail.
I.

II.
III.

Corporate level strategy:

i.

Forward vertical integration strategy

ii.

Backward vertical integration strategy

iii.

Horizontal integration strategy

iv.

Concentric diversification strategy

v.

Conglomerate diversification strategy

Business level strategy

Functional level strategy

13. Explain the various steps involved in the strategic planning process.
I.

Develop mission and objectives

II.

Diagnose internal and external environment

III.

Situation (SWOT) Analysis/ TOWS Matrix:

i.

WT strategy

ii.

WO strategy

iii.

ST strategy

iv.

SO strategy
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IV.
V.

Develop alternative strategies

Formulate strategies:
i.

Formulating corporate level strategy:

A. BCG matrix:
a. Star
b. Cash Cow
c. Question mark
d. Dog

ii.

Formulating business level strategy:

A. Porters five forces model:
a. Threat of new entrants
b. Threat of substitute products
c. Bargaining power of buyers
d. Bargaining power of suppliers
e. Rivalry among current competitors

iii.
VI.

Formulating functional level strategy

Implementing strategies

14. Classify the different types of policies and explain them in detail.
I.

On the basis of levels:

i.

Basic policy

ii.

General policy

iii.

Division policy
122

II.

III.

On the basis of functions:

i.

Production policy

ii.

Marketing policy

iii.

Personnel policy

iv.

Accounting policy

On the basis of sources:

i.

Originated policy

ii.

Appealed policy

iii.

External policy

15. Describe the four steps involved in the process of policy making.
i.

Policy formulation

ii.

Policy communication

iii.

Policy application

iv.

Policy review and appraisal

16. Describe the characteristics of a good policy in detail.

17. Classify the various types of decisions and explain them in detail.
i.

Programmable and non-programmable decisions

ii.

Once-for-all and routine decisions

iii.

Individual and group decisions

iv.

Personal and organizational decisions

v.

Initiative and approval decisions

vi.

Certain and ambiguity decisions

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vii.

Strategic and operating decisions

viii.

Adaptive and innovative decisions

18. Explain the various steps involved in decision-making process in detail.

i.

Recognize the need for a decision

ii.

Definition of the problem

iii.

Search and develop alternatives

iv.

Evaluate alternatives

v.

Selecting an alternative course of action among alternatives

a) Experience
b) Research and analysis
c) Experimentation

vi.

Implement chosen alternative

vii.

Learn from feedback

19. Describe the various decision making techniques.

III.

Probabilistic or stochastic techniques:

i.

Expected value method

ii.

Decision tree method

iii.

Simulation techniques

IV.

Deterministic techniques:

i.

Operations research

ii.

Break even analysis

iii.

Inventory control
124

20. Explain the different conditions involved in decision-making.

I.
II.

Conditions of perfect certainty:

Conditions of risk:
i.

Risk analysis:
a) A Priori probability
b) Empirical probability
c) Subjective probability

III.

Conditions of uncertainty:
i.

Maximax criterion

ii.

Maximin criterion

iii.

Minimax criterion

iv.

Insufficient reason criterion

125

UNIT III
ORGANISING
1. Explain the nature and purpose of organizing in detail.
Nature of organizing:
i.

Division of work or specialization

ii.

Orientation towards goals

iii.

Composition of individuals and groups

iv.

Differentiated functions

v.

Continuous process

Purpose of organizing:
i.

Facilitates management and administration

ii.

Helps to achieve organizational goals

iii.

Facilitates growth and diversification

iv.

Optimum use of technological development

v.

Optimum use of resources

vi.

To perform managerial functions

vii.

Human treatment of employees

viii.

Provides job satisfaction and morale

ix.

Stimulate creativity

x.

Facilitates coordination

2. Explain the purpose of an organizational structure.

i.

It facilitates management.
126

ii.

It encourages growth and diversification.

iii.

It facilitates the optimum use of technological improvement.

iv.

It encourages proper use of human resources.

v.

It stimulates creativity.

3. Write a short notes on

i.

Division of labor

ii.

Formalization

4. Explain in detail about the different types of departmentation.

i.

Departmentation by function

ii.

Departmentation by territory or geography

iii.

Departmentation by customer

iv.

Departmentation by product

v.

Departmentation by process

vi.

Departmentation by time

vii.

Departmentation by number

viii.

Matrix departmentation

ix.

Strategic business units (SBUs)

5. Classify the two types of organizations based on the span of control and
explain.
i.

Organizations with wide span

ii.

Organizations with narrow span

6. Explain the Graicunas theory of span of control in detail.

127

i.

Direct single relationship

ii.

Direct group relationship

iii.

Cross relationship

7. Explain the various factors affecting the span of control.

i.

Nature of work

ii.

Competence and leadership ability of the manager

iii.

Capability of subordinates

iv.

Planning and standardization of work

v.

Degree of independence in decision making

vi.

Use of objective standards for judging the efficiency of the

subordinates

vii.

Communication techniques

viii.

Level of personal contact needed

ix.

Stability of organisation environment

8. Explain the concept of decentralization along with its advantages and

disadvantages. How can decentralization be made effective?
I.
II.

Concept of decentralization
Advantages

III.

Disadvantages

IV.

Making decentralization effective:

i.

Centralized top policy

ii.

Appreciation of concept of decentralization

iii.

Development of managers
128

iv.

Competition among units

v.

Open communication

vi.

Effective co-operation

10.A) Classify the two types of delegation and explain them in detail.
III.

IV.

Formal delegation
i.

Bottom-up delegation

ii.

Lateral delegation

Informal delegation

B) Explain the various steps involved in the process of delegation.

i.

Allocation of duty

ii.

Delegation of authority

iii.

Assignment of responsibility

iv.

Creation of accountability

11. Explain the various barriers to effective delegation.

i.

Willingness to let authority go

ii.

Lack of confidence and trust in subordinates

iii.

Lack of receptiveness

iv.

Sense of insecurity

v.

Lack of controls

vi.

Fear on the part of employees

vii.

Lack of incentives

viii.

Lack of self-confidence
129

12.What are the guidelines for effective delegation? Explain the advantages of
delegation?
Guidelines for effective delegation:
i.

Define assignments and delegate authority in light of results to be

achieved

ii.

Select right person

iii.

Open communication

iv.

Establish adequate controls

v.

Proper incentives

Advantages of delegation:
i.

Quick decisions can be possible

ii.

Motivates subordinates

iii.

Better strategic planning

iv.

Promotes specialization

13. Explain the characteristics of formal and informal organization in detail

with their merits and demerits. Also distinguish between formal and
informal organization.
Formal organization:
i.

Characteristics

ii.

Benefits

iii.

Demerits

Informal organization:
i.

Characteristics

ii.

Benefits
130

iii.

Demerits
Formal organisation

Informal organization

The relationship between

members in the organizational
structure is well defined.

There is no formal relationship

between members.

It has clear and definite

organizational structure.

It has not clear organizational

structure.

Individual goals are consistent

with the organizational goals.

Individual goals may not support

organizational goals.

14. Explain the different types of organization structure.

i.

Line organizational structure

ii.

Line and staff organizational structure

iii.

Functional organizational structure

iv.

Committee structure

15. Give the important characteristics of staffing and explain them in detail.
i.

People- oriented

ii.

Comprehensive function

iii.

Based on fundamentals

iv.

Both line and staff function

v.

Continuous nature

vi.

Human objectives

vii.

Challenging task to the managers

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viii.

Implied authority

16. Describe the objectives of staffing in detail.

i.

Optimum utilization of human resources

ii.

Procure people

iii.

To develop employees

iv.

To arrange effective communication with employees

v.

To secure full cooperation

vi.

To improve morale and job satisfaction

vii.

To establish harmonious relations between labor and capital

viii.

To improve employer-employee relationship

17. Write a detailed account of the various steps in staffing.

i.

Planning and organizing

ii.

Estimating the number of people required

iii.

Analyzing the existing man power

iv.

Analyzing present and future needs for people

v.

Analyzing internal and external sources

vi.

Recruitment

vii.

Selection

viii.

Placement

ix.

Promotion

x.

Performance appraisal

xi.

Career strategy
132

xii.

Training and development

18. Explain the various factors affecting staffing in detail.

I.

II.

External factors:
i.

Educational factors

ii.

Political- legal factors

iii.

Global factors

iv.

Cultural factors

Internal factors:
i.

Unions

ii.

Organization culture and conflict

19. Explain elaborately about the sources of recruitment.

I. Internal Sources:
i.

Temporary workers

ii.

Promotion

iii.

Transfer

iv.

Apprentice

v.

Dependents

vi.

Past employees

II. External Sources:

i.

Job advertisements

ii.

Employment exchanges

iii.

Recruitment from educational institutions

133

iv.

Recruitment from private employment agencies

v.

Professional bodies/employee consultants

vi.

Recommendations of existing employees

vii.

Recruitment at the factory gate

viii.

Labor contractors

ix.

Casual callers

x.

Deputation

20. Explain the various steps involved in selection process.

i.

Preliminary screening of applicants

ii.

Preliminary interview

iii.

Application blank

iv.

Checking references

v.

Employment tests

vi.

Psychological tests

vii.

Employment interview

viii.

Final approval/ selection

ix.

Placement

x.

Induction

21. Explain the various steps involved in induction process.

i. Prearrival stage
ii. Encounter stage
iii. Metamorphosis stage
134

21. Briefly explain the career development model.

I. Career need assessment
II. Career opportunities
III.Need-Opportunity alignment:

IV.

i.

Individual techniques

ii.

Performance appraisal

iii.

Management by objectives

iv.

Career counseling

Monitoring career moves

22. Explain the various stages involved in career development.

i. Exploratory stage
ii. Establishment stage
iii. Maintenance stage
iv. Stage of decline
23. Describe the various methods of performance appraisal elaborately.
i. Critical incidence method
ii.Checklist method
iii.Graphic rating scale method
iv.Ranking method
v.Forced distribution method
vi.Assessment centre method
vii.Appraisal by results (MBO)
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viii.Fixed review method

ix.Paired comparison method
x.Confidential report method
24. Explain the reasons for training needs.
i.

Technology changing at a fast pace

ii.

Quality conscious customers

iii.

Greater productivity

iv.

Stable workforce

v.

Increased safety

vi.

Better management

25. Describe the various benefits of training in detail.

i.

Quick learning

ii.

Higher productivity

iii.

Standardization of procedures

iv.

Less supervision

v.

Economical operations

vi.

Higher morale

vii.

Preparation of future managers

viii.

Better management

Advantages of training to employees:

i. Confidence
ii.New skills
136

iii.Promotion
iv.Higher earnings
v.Adaptability
vi.Increased safety
26. What are the various types of training? Explain them in detail.
i.

Induction or orientation training

ii.

Job training

iii.

Apprenticeship training

iv.

Internship training

v.

Refresher training or retraining

vi.

Training for promotion

27. Explain the various methods of training in detail.

I.

II.

III.

On- the-job training:

i.

Coaching

ii.

Understudy

iii.

Position rotation

Off-the-job training:
i.

Special lecture cum discussion

ii.

Conference training

iii.

Case study

Vestibule training

137

UNIT IV
DIRECTING
1. Explain the steps involved in creative process in detail.
i.

Saturation

ii.

Preparation

iii.

Frustration and incubation

iv.

Inspiration or illumination

v.

Verification

2. Explain in detail about the human factors in managing.

i.

Multiplicity of roles

ii.

Individuality

iii.

Personal dignity

3. Describe elaborately about the various creativity tools used to solve

problems.
i.

Brainstorming

ii.

Vertical thinking and lateral thinking

iii.

Reversal Tool

iv.

SCAMPER Tool

v.

Reframing Matrix
a) The 4Ps approach
b) The Professions Approach
138

vi.

Concept Fan

vii.

Mind mapping

viii.

Provocation

ix.

DO IT
a) Define Problem
b) Open Mind and apply creative techniques
c) Identify the best solution
d) Transform

x.

Simplex Tool
a) Problem Finding
b) Fact Finding
c) Problem definition
d) Idea Finding
e) Selection and Evaluation
f) Planning
g) Sell Idea
h) Action

4. I. Explain the nature of motivation. (8 marks).

i. Motivation is internal to man
ii. A single motive can cause different behaviors
iii. Different motives may result in single behavior
iv. Motives come and go
139

v. Motives interact with the environment

II. Describe the basic elements involved in motivation process. (8 marks).
i. Motives
ii. Goals
iii. Behavior
5. Explain in detail about the various types of motivation.
i. Positive motivation
ii. Negative motivation
iii.Extrinsic motivation
iv.Intrinsic motivation
6. Discuss the different theories of motivation.
i.

McGregors Theory X and Theory Y

ii.

Theory Z

iii.

Maslows hierarchy of needs theory

iv.

Herzbergs motivation- hygiene theory

v.

McClellands needs theory

vi.

Expectancy theory

vii.

Equity theory

viii. Skinners behaviouralist- reinforcement theory

ix.

Alderfers ERG theory

x.

Carrot and Stick approach of motivation

7. Explain the importance of leadership. Also explain the functions of leaders.

140

Importance of leadership:
i. Securing cooperation
ii. Creating confidence in the minds of employees
iii. Providing good working climate
Functions of leaders:
i.

Leader develops team work.

ii. Leader is an appropriate counselor.

iii. Leader is a representative of subordinates.
iv. Leader uses power properly.
v. Leader uses time well.
8. Explain in detail about the different types of power.
i.

Legitimate power

ii.

Reward power

iii.

Coercive power

iv.

Referent power

v.

Expert power

9. Explain elaborately about the various styles of leadership.

I.

Leadership styles based on use of authority:

i.

Autocratic leadership

ii.

Democratic or participative leadership

iii.

Laissez-faire leadership

iv.

Benevolent autocratic leadership

141

v.

Supportive leadership

II.

Leadership styles based on managerial grid:

III.

i.

Impoverished style

ii.

Country club style

iii.

Produce or perish style

iv.

Middle-of-the-road style

v.

Team style

Leadership styles based on continuum

10.Write a detailed essay on the various theories of leadership.

i.

Trait theory

ii.

Behavioral theories

iii.

Situational or contingency theory

11. Explain the importance of communication. Also explain the

communication process in detail.
Importance of communication:
i.

Basis for planning

ii.

Basis for decision making

iii.

To perform managerial functions effectively

iv.

To facilitate coordination among workers

v.

To develop understanding between superiors and subordinates

vi.

To motivate workers

Communication process:
142

i.

Sender/source

ii.

Encoder

iii.

Transmission channel

iv.

Receiver

v.

Decoder

12. Write a detailed essay on the different forms or types of communication.

IV.

V.

Based on communication flow:

i.

Downward communication

ii.

Upward communication

iii.

Horizontal communication

iv.

Diagonal communication

Based on channel:
i. Formal communication
ii. Grapevine or Informal communication

VI.

Based on expression:
i.

Written communication

ii.

Oral communication

iii.

Non verbal communication

13. Describe the barriers involved in effective communication in detail. Explain a

few suggestions for managers to overcome barriers to communication.
Barriers involved in effective communication:
i.

Lack of planning
143

ii.

Semantic distortion

iii.

Selective perception or filtering

iv.

Fear and emotions

v.

Distrust and threat

vi.

Timing of communication

vii.

Overloading of communication

viii.

Loss by transmission and poor retention

ix.

Status symbols

x.

Poor listening and premature evaluation

xi.

Poorly expressed messages

xii.

Unclarified assumptions

xiii.

Faulty organisation

xiv.

Barriers in the international environment

Overcoming barriers to communication:

i.

Regulate the flow of information

ii.

Encourage feedback

iii.

Simplify the language

iv.

Listen actively

v.

Constraints negative emotions

vi.

Use nonverbal cues

vii.

Use the grapevine

14. Explain the important guidelines for effective communication.

144

i.

Clarify your ideas before communicating

ii.

Examine the true purpose of communication

iii.

Consider the physical and human setting in which communication will take
place

iv.

Consult with others, when appropriate, in planning communication

v.

Be mindful of the nonverbal messages you send

vi.

Take the opportunity to convey something to the receiver

vii.

Follow up the communication

viii.

Communicate for tomorrow as well as today

ix.

Be sure actions support communication

x.

Seek not only to be understood but to understand

15. Write a detailed essay on the important electronic media which are useful for
communication.
i.

Telecommunication

ii.

Telephone answering machines (voice mail)

iii.

Facsimile (FAX) Machines

iv.

Teleconferencing

v.

Closed Circuit Television Systems

vi.

Internet

vii.

Electronic Mail systems

viii.

Electronic typewriters

ix.

Electronic Bulletin Boards

x.

Computers (Main frame, mini and personal)

145

xi.

Cellular telephones

16. I. Describe the different types of cultures. (8 marks).

i.

Dominant culture and subculture

ii.

Strong and weak cultures

II. Explain the characteristics which describe organizational culture. (8 marks).

i.

Observed behavioral regularities

ii.

Norms

iii.

Dominant values

iv.

Philosophy

v.

Rules

vi.

Organizational climate

17. Write a detailed essay on creating, sustaining and changing a culture.

I.
II.

III.

Creating a culture
Sustaining a culture:
i.

Selection

ii.

Top management

iii.

Socialization

iv.

Prearrival

v.

Encounter

vi.

Metamorphosis

Changing a culture:
i.

A dramatic crisis
146

ii.

Change in leadership

18. How is culture learnt? Explain in detail about the sources of culture.
i.

Stories

ii.

Rituals

iii.

Symbols

iv.

Languages

19. Explain the benefits and disadvantages of cultural diversity.

Benefits of cultural diversity:
i. Promotes humanistic values
ii. Improves productivity and profitability
iii. Helps to create a pool of talent
iv. Exchange of innovative ideas
v. Other benefits of diversity
Disadvantages of Cultural Diversity in the Workplace:
i.
Feelings of Discrimination
ii.
Prolonged Decision Making
iii. Turnover
20. Explain some of the important steps for managing cultural diversity.
i. Learn the professional aspirations of all team members and support their
efforts to achieve them.
ii. Create opportunities for highly talented employees to be exposed to leaders
who may not otherwise interact with them.
iii. Create cross-functional teams.
iv. Volunteer for community projects that teach tolerance, both directly and
indirectly.
v. Delegate fairly
147

Vi.Communicate and support intolerance of inappropriate and disrespectful

behavior.
vii. Evaluate performance objectively.
viii. Consider individual needs when enforcing company policies and guidelines.
Actions that Make a Difference:
1. Make time to talk privately with each of your employees on a regular basis.
2. Ask your staff, individually, how they would prefer to be managed and how they
would prefer to be rewarded.
3. The more actions you take to demonstrate sincere interest in the individual, the
more likely your staff will want to "go the extra mile."

148

UNIT V
CONTROLLING
1. Explain the nature or characteristics of controlling.
i.

Planning and controlling are closely related

ii.

Controlling is forward looking

iii.

Controlling is goal oriented

iv.

Controlling should be simple

v.

Controlling should be flexible

vi.

Controlling should be economically realistic

vii.

Controlling enables to make quick actions

viii.

Controlling should be participative

ix.

Controlling system should be acceptable.

2. Give a detailed account on the importance of controlling.

i.

Controlling is the basis for future action

ii.

Controlling is helpful to achieve goals

iii.

Controlling copes up with uncertainty

iv.

Controlling facilitates decentralization

v.

Facilitates coordination

vi.

Improves morale and job satisfaction

vii.

Facilitates supervision

149

3. Give an elaborate account of the process of controlling.

I.

Establishing standards:
a) Quantitative standards:
i.

Productivity standards

ii.

Cost standards

iii.

Time standards

b) Qualitative standards
II.

Measure actual performance

III.

Compare actual performance against standards

IV.

Take corrective action

4. Explain in detail about the critical control point standards and benchmarking
techniques.
Critical control point standards:
i.

Physical standards

ii.

Cost standards

iii.

Capital standards

iv.

Revenue standards

v.

Program standards

vi.

Intangible standards

vii.

Goals as standards

viii.

Strategic point control

Benchmarking techniques:
150

i.

Internal benchmarking

ii.

Competitive benchmarking

iii.

Functional benchmarking

iv.

Generic benchmarking

5. Explain the requirements for effective control.

i.

Understandable measures

ii.

Acceptable by employees

iii.

Linkage to strategies

iv.

Balance of objective and subjective data

v.

Accuracy

vi.

Flexibility

vii.

Timeliness

viii.

Economical

ix.

Responsibility for failures

6. Write a detailed essay on the various types of budgets.

I.

Functional budgets:
i.

Sales budget

ii.

Production budget

iii.

Material budget

iv.

Labor budget

v.

Manufacturing overheads budget

vi.

Administrative overhead budget

151

II.

III.

IV.

vii.

Distribution overhead budget

viii.

Cash budget

Transaction types:
i.

Operating budget

ii.

Capital budget

Activity types:
i.

Flexible budget

ii.

Fixed budget

iii.

Master budget

Time interval basis:

i. Continuous budget
ii. Periodic budget

7. Write a detailed essay on various non-budgetary control techniques.

i.

Personal observation

ii.

Statistical data

iii.

Special reports and analysis

iv.

Break-even analysis
Costs:
a) Fixed costs
b) Variable costs
c) Total costs
Methods of break-even analysis:
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a) Chart method (or) graphical method

b) Algebraic method of Break-even analysis
v.

Operational audit

vi.

Financial statements

vii.

Ratio analysis
a) Profit measurement ratio
b) Liquidity ratio
c) Solvency ratio
d) Activity ratio

viii.

Logistic control system

8. Explain the important terms associated with cost control in detail.

i.

Financial statements

ii.

Importance of financial statements

iii.

Income statement

iv.

Balance sheet

v.

Key words of cost control

vi.

Cash flow statement

9. Explain the different types of special purchase systems in detail.

i.

Forward buying

ii.

Tender buying

iii.

Blanket order

iv.

Zero stock
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v.

Rate contract

10. Write a detailed essay on the various steps involved in the standard
purchasing procedure.
i.

Processing the requirements

ii.

Location and choice of suppliers

iii.

Placing of orders

iv.

Follow up and expediting

v.

Invoice check up and clearance

vi.

Maintenance of records

11.Give a detailed account on the various methods of purchasing.

i.

Purchasing according to the requirement

ii.

Price forecasting method

iii.

Purchasing for some definite future period

iv.

Market purchasing

v.

Speculative purchasing

vi.

Contract purchasing

vii.

Scheduled purchasing

viii.

Public buying

ix.

Tender purchasing

12. I. Explain the basic functions of maintenance. (8 marks).

i.

Inspection

ii.

Repair
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iii.

Overhaul

iv.

Lubrication

v.

Salvage

II. Describe the basic techniques of planned maintenance control in detail.

(8 marks).
i. Inventory facilities
ii. Marking the equipment
iii. The facility register
iv. Marking schedule
v. Job specification
vi. Maintenance program
vii. Job report
13. Write a detailed essay on the two types of maintenance control.
i.

Breakdown maintenance

ii.

Preventive maintenance

14. Write a detailed account on statistical quality control (SQC).

i. Definition
ii. Dimensions of quality
iii. Statistical quality control (SQC)
iv. Types of control charts used in statistical quality control:
a) Control charts for attributes
b) Control charts for variables
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v. Procedure for statistical quality control

vi. Advantages of statistical quality control:
a) Improvement in product quality
b) Reduction of scrap and rework
c) Product quality is uniformly maintained
d) Product design can be improved
e) SQC develops quality
f) SQC satisfies production department and the customer
15. Write a detailed essay on the various factors affecting productivity.
I.

External factors

II.

Internal factors:

i.

Factors related to product

ii.

Factors related to methods

iii.

Factors related to management

iv.

Factors related to workers

16. Explain in detail about the various elements of operations management system.
I. Inputs
II. Outputs
III.

External environment

IV.

Transformation process
i.

Planning

ii.

Systems design
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iii.

Operating the system

iv.

Controlling the operations

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