Modern Management

Q1.A
Ans: These factors make management functions important:
1. It helps in Achieving Group Goals It arranges the factors of
production, assembles and organizes the resources, integrates the
resources in effective manner to achieve goals. It directs group efforts
towards achievement of pre-determined goals. By defining objective of
organization clearly there would be no wastage of time, money and
effort. Management converts disorganized resources of men,
machines, money etc. into useful enterprise. These resources are
coordinated, directed and controlled in such a manner that enterprise
work towards attainment of goals.
2. Optimum Utilization of Resources Management utilizes all the
physical & human resources productively. This leads to efficacy in
management. Management provides maximum utilization of scarce
resources by selecting its best possible alternate use in industry from
out of various uses. It makes use of experts, professional and these
services leads to use of their skills, knowledge, and proper utilization
and avoids wastage. If employees and machines are producing its
maximum there is no under employment of any resources.
3. Reduces Costs It gets maximum results through minimum input by
proper planning and by using minimum input & getting maximum
output. Management uses physical, human and financial resources in
such a manner which results in best combination. This helps in cost
reduction.
4. Establishes Sound Organization No overlapping of efforts (smooth
and coordinated functions). To establish sound organizational structure
is one of the objective of management which is in tune with objective
of organization and for fulfillment of this, it establishes effective
authority & responsibility relationship i.e. who is accountable to whom,
who can give instructions to whom, who are superiors & who are
subordinates. Management fills up various positions with right persons,
having right skills, training and qualification. All jobs should be cleared
to everyone.
5. Establishes Equilibrium It enables the organization to survive in
changing environment. It keeps in touch with the changing
environment. With the change is external environment, the initial coordination of organization must be changed. So it adapts organization
to changing demand of market / changing needs of societies. It is
responsible for growth and survival of organization.

6. Essentials for Prosperity of Society Efficient management leads

to better economical production which helps in turn to increase the
welfare of people. Good management makes a difficult task easier by
avoiding wastage of scarce resource. It improves standard of living. It
increases the profit which is beneficial to business and society will get
maximum output at minimum cost by creating employment
opportunities which generate income in hands. Organization comes
with new products and researches beneficial for society.

Q1.B
Ans: In 1967 Stafford Beer characterized the field of management science as
"the business use of operations research". However, in modern times the
term management science may also be used to refer to the separate fields
of organizational studies or corporate strategy. Like operational research
itself, management science (MS), is an interdisciplinary branch of applied
mathematics devoted to optimal decision planning, with strong links
with economics, business, engineering, and other sciences. It uses
various scientific research-based principles, strategies, and analytical
methods including mathematical modeling, statistics and numerical
algorithms to improve an organization's ability to enact rational and
meaningful management decisions by arriving at optimal or near optimal
solutions to complex decision problems. In short, management sciences help
businesses to achieve their goals using the scientific methods of operational
research.
The management scientist's mandate is to use rational, systematic, sciencebased techniques to inform and improve decisions of all kinds. Of course, the
techniques of management science are not restricted to business
applications but may be applied to military, medical, public administration,
charitable groups, political groups or community groups.
Management science is concerned with developing and
applying models and concepts that may prove useful in helping to
illuminate management issues and solve managerial problems, as well as
designing and developing new and better models of organizational
excellence.

The application of these models within the corporate sector became known
as Management science.

Q2. A
Ans: The term social responsibility means different things to different people.
Generally, corporate social responsibility is the obligation to take action that
protects and improves the welfare of society as whole as well as
organizational interests. According to the concept of corporate social
responsibility, a manager must strive to achieve both organizational and
societal goals.
Current perspectives regarding the fundamentals of social responsibility of
businesses are listed and discussed through (1) the Davis model of corporate
social responsibility, (2) areas of corporate social responsibility, and (3)
varying opinions on social responsibility.
A model of corporate social responsibility that was developed by Keith Davis
provides five propositions that describe why and how businesses should
adhere to the obligation to take action that protects and improves the
welfare of society and the organization:

Proposition 1: Social responsibility arises from social power.

Proposition 2: Business shall operate as an open system, with open
receipt of inputs from society and open disclosure of its operation to
the public.

Proposition 3: The social costs and benefits of an activity, product, or

service shall be thoroughly calculated and considered in deciding
whether to proceed with it.

Proposition 4: Social costs related to each activity, product, or service

shall be passed on to the consumer.

Proposition 5: Business institutions, as citizens, have the responsibility

to become involved in certain social problems that are outside their
normal areas of operation.

Q2. B
Ans: It's important to keep up with changes in today's society. To do so,
diversity training has become vital. Businesses that train their managers to
embrace a diverse workforce can experience many benefits.
In basic terms, diversity means a difference or variety. When it comes to the
workplace, this term can have a polarizing effect. Some may interpret the
word to simply mean the hiring of more racial minorities, but this is far from
the truth. A diverse group has a multitude of individuals who vary in age,
race, creed, nationality, religion and even sexual orientation. You may be a
part of a team that has individuals of the same race, but looking further into
their backgrounds can display diverse origins or beliefs.
Diversity in the workplace has become an important initiative in many
companies. As these groups continue to grow and look outside their local
areas for new customers, they must bring in a wider talent pool to
understand those new communities. To stay competitive in today's market, a
company must work to include people who can reach out to untapped
marketplaces and are willing to learn about those populations. Having
managers at the forefront, embracing diversity can help improve the morale
of everyone on staff.
Incorporate a variety of activities into diversity training. Human resources
employees or outside vendors can conduct these sessions. Use team-building
activities to open the gathering. Give those involved opportunities to interact
with those of different backgrounds. Conduct conversations about situations
in the workplace that can display a lack of cultural understanding.
Q3.A
Ans: As the sphere of international business expands beyond traditional
Asian, Western and European markets, companies will increasingly come into
contact with cultures that are much different than the organization's culture
of origin. This can create conflict in business strategy; what seems to be an
excellent business decision in one culture can have disastrous effects on
business operations in another society. Recognizing the local culture in which
you will be operating is an important step when considering implementation

of the process of strategic choice when the decision will affect culturally
diverse stakeholders.
The local culture will affect the behavior of both consumers and employees
from that area. The values and norms of a society will dictate demand for
specific goods and services. Management styles should also vary based on
the local culture, as employees from a different culture will respond to
management that reflects values of authority in that culture. These
differences increase the need to establish interactivity among stakeholders
when making a strategic choice.
Q3.B
Ans: Sub optimization is a condition wherein sub objectives are conflicting
or not directly aimed at accomplishing the overall organizational objective.
Sub optimization is possible within the company whose hierarchy of
objectives is depicted in Figure 6.6 if the first sub-objective for the finance
and accounting department clashes with the second sub objective for the
supervisors. This conflict would occur if supervisors needed new equipment
to maintain production and the finance and accounting department couldn't
approve the loan without the company's borrowing surpassing 50 percent of
company assets. In such a situation, in which established sub objectives are
aimed in different directions, a manager would have to choose which sub
objective would better contribute to obtaining overall objectives and should
therefore take precedence.

Q4.A
Ans: The receptive orientation. These are people who expect to get what
they need. If they don't get it immediately, they wait for it. They believe that
all goods and satisfactions come from outside themselves. This type is most
common among peasant populations. It is also found in cultures that have
particularly abundant natural resources, so that one need not work hard for
one's sustenance (although nature may also suddenly withdraw its bounty!).
It is also found at the very bottom of any society: Slaves, serfs, welfare
families, migrant workers... all are at the mercy of others.
This orientation is associated with symbiotic families, especially where
children are "swallowed" by parents, and with the masochistic (passive) form
of authoritarianism. It is similar to Freud's oral passive, Adler's leaninggetting, and Horney's compliant personality. In its extreme form, it can be
characterized by adjectives such as submissive and wishful. In a more

moderate form, adjectives such as accepting and optimistic are more

descriptive.
If we are confronted with two or more choices that will not decrease
longevity or quality of life for anyone potentially affected by the decision, the
choice that offers the greatest increase in these parameters is the proper
one. As Ive already indicated, any choice that decreases longevity or quality
should be automatically discarded. If all choices result in a decrease, and the
decision is unavoidable, then some means must be found to offset the
decrease. Although it may be all but impossible to precisely determine the
impact of an action, we should use our existing knowledge and
understanding, aided by societys enforcement of accurate and full
disclosure of information, to compare the impacts of different actions.

Q4. B
Ans: Matrix organizational structures include not only general functional
units like production, sales, and finance, but also product or geographic
units. Company executives frequently oversee the product units directly. The
product units, in turn, collaborate with and coordinate the functional units.
By adopting the matrix arrangement, companies attempt to reap the
benefits of the functional and the product or geographic structures, while
bypassing the inefficient and redundant aspects of the product structure. A
company with a matrix organizational structure has functional units such as
development, production, and sales matched in a matrix by product or
geographic location.
Company executives and managers must strive to select the organizational
structure that best suits their fields of business, that offers the optimal
amount of control, specialization, and cooperation, and that facilitates key
business activities while also taking into consideration concerns for efficiency
and effectiveness.

Q5.A

Ans: A Gantt chart is a type of bar chart that illustrates a project schedule.
Gantt charts illustrate the start and finish dates of the terminal and summary
elements of a project. Terminal elements and summary elements comprise
the work breakdown structure of the project. Some Gantt charts also show
the dependency (i.e., precedence network) relationships between
activities. Although now regarded as a common charting technique, Gantt
charts were considered revolutionary when they were introduced. This chart
is used also in Information Technology to represent data that have been
collected.
Gantt charts have become a common technique for representing the phases
and activities of a project work breakdown structure (WBS), so they can be
understood by a wide audience all over the world.
A common error made by those who equate Gantt chart design with project
design is that they attempt to define the project work breakdown structure at
the same time that they define schedule activities. This practice makes it
very difficult to follow the 100% Rule. Instead the WBS should be fully
defined to follow the 100% Rule, and then the project schedule can be
designed.
Although a Gantt chart is useful and valuable for small projects that fit on a
single sheet or screen, they can become quite unwieldy for projects with
more than about 30 activities. Larger Gantt charts may not be suitable for
most computer displays. A related criticism is that Gantt charts communicate
relatively little information per unit area of display. That is, projects are often
considerably more complex than can be communicated effectively with a
Gantt chart.
Gantt charts only represent part of the triple constraints (cost, time and
scope) of projects, because they focus primarily on schedule management.
Moreover, Gantt charts do not represent the size of a project or the relative
size of work elements, therefore the magnitude of a behind-schedule
condition is easily miscommunicated. If two projects are the same number of
days behind schedule, the larger project has a larger impact on resource
utilization, yet the Gantt does not represent this difference.

Q5.B
Ans: Span of management is a very important concept of organizing function
of management. It refers to the number of subordinates that can be handled
effectively by a superior in an organization. It signifies how the relations are
planned between superior and subordinates in an organization.
Span of management is generally categorized under two heads- Narrow span
and Wide span. Narrow Span of management means a single manager or
supervisor oversees few subordinates. This gives rise to a tall organizational
structure. While, a wide span of management means a single manager or
supervisor oversees a large number of subordinates. This gives rise to a flat
organizational structure. There is an inverse relation between the span of
management and the number of hierarchical levels in an organization, i.e.,
narrow the span of management, greater the number of levels in an
organization.
Narrow span of management is more costly compared to wide span of
management as there are larger number of superiors/ managers and thus
there is greater communication issues too between various management
levels. The less geographically scattered the subordinates are, the better it is
to have a wide span of management as it would be feasible for managers to
be in touch with the subordinates and to explain them how to efficiently
perform the tasks. In case of narrow span of management, there are
comparatively more growth opportunities for a subordinate as the number of
levels are more.

Q6. A
Ans: Perhaps the most widely accepted organizational management theory is
the process approach. It also serves as a descriptive overview of the various
tasks and responsibilities management faces, and it draws on many of the
theories contained in the five schools of management as well as the systems
approach and contingency approach described above. For example, the
process approach derives from Fayol's ideas, particularly his five
management functions. And, like the systems approach and the later schools
of management thought, the process approach emphasizes the point that
management is an ongoing series of interrelated activities rather than a onetime act.
The process approach also recognizes other management theories that have
gained acceptance in the late 1900s. Of import is the generally accepted
management pyramid model, which is comprised of three hierarchies based
on experience and education. At the top of the pyramid is top management,
or the executive level that handles long-term strategy. At the center is
middle management, which translates top management objectives into more
specific goals for individual work units. Finally, line managers and supervisors
fill the bottom of the pyramid. They handle the day-to-day management of
employees and operations.
Adherents to the process approach have altered and elaborated on Fayol's
original functions, usually in an attempt to incorporate behaviorist
philosophies. Management theorists commonly recognize five management
functions: planning, organizing, staffing, leading, and controlling. The five
process management functions are linked together by communication and
decision-making activities common to all of them.

Q6. B
Ans: A central premise underlying affirmative action is that, absent
discrimination, over times an employers workforce, generally, will reflect the
gender, racial, and ethnic profile of the labor pools from which the employer
recruits and selects. An affirmative action program is a management tool
designed to ensure equal employment opportunity, and includes those
policies, practices, and procedures that the Laboratory implements to ensure
that all qualified applicants and employees are receiving an equal
opportunity for recruitment, selection, advancement, training, development,
and every other term, condition, and privilege of employment.

Q6.C
Ans: In today's world, we are more and more defined, not by who we are, but
by what work we do. Work plays a powerful and increasing role in people's
lives. As it makes more and more demands on our time and energy, our
chosen work or career path impacts every facet of our lives. A strong
relationship develops between our work and our mental and physical health.
Stress in any of these areas, especially work, will affect all other areas of our
lives and this is when career counseling can be helpful.
Stress is an interaction between individuals and any source of demand
(stressor) within their environment. A stressor is the object or event that the
individual perceives to be disruptive. Stress results from the perception that
the demands exceed one's capacity to cope. Different people react
differently to the same stressors because of their backgrounds, experiences
and values. Elevated stress levels in employees are associated with
increased turnover, absenteeism; sickness, reduced productivity, and low
morale.
The latest trend catching up in the corporate HR across the world is
'Employee Counseling at Workplace'. In the world of ever increasing

complexity and the stress in the lives, especially the workplaces of the
employees, employee counseling has emerged as the latest HR tool to
attract and retain its best employees
And also to increase the quality of the workforce. In today's fast-paced
corporate world, there is virtually no organization free of stress or stressfree employees. The employees can be stressed, depressed, suffering from
too much anxiety arising out of various workplace related issues like
managing deadlines, meeting targets, lack of time to fulfill personal and
family commitments, or bereaved and disturbed due to some personal
problem etc.
Organizations have realized the importance of having a stress-free yet
motivated and capable workforce. Therefore, many companies have
integrated the counseling services in their organizations and making it a part
of their culture. Organizations are offering the service of employee
counseling to its employees.