NEHRU COLLEGE OF MANAGEMENT

PREVIOUS YEAR QUESTION PAPER AND ANSWERS

MANAGEMENT PRINCIPLES AND PRACTCES

MBA DEGREE EXAMINATIONS APRIL 2013
PART A 6 Marks questions
1. Define management and discuss its characteristics.
Ans:
Management is Getting work done through others. Coordinating work activities so that they are
completed efficiently and effectively with and through other people. Efficiency: getting the most
output from the least input. Effectiveness: completing activities so that the organizations goals are
attained.
Characteristics
1. Multidisciplinary
2. Dynamic nature of principles
3. Relative, not absolute principles
4. Management as Profession
5. Universality of Management
6. Group Effort
7. Management is Activity based
8. Management is purposeful
9. Management is a Process
10. Management is both a science and an art
11. Management is intangible
12. Management Accomplishes Results through Others

2. Comment on the true nature of management is science or art?
Ans:
Management as Art
Uses the practical knowledge acquired in tackling problems.
Combines human & nonhuman resources in a creative way to achieve results.
A personalized activity
Constant practice leads to good management

Management as Science
Distinct discipline
Offers principles & guidelines
Social science
An inexact science
Scientific & systematic
3. Describe and evaluate Henry Fayols contribution to the management theory.
Ans:
Henry Fayol(1841-1925) developed the Administrative theory.
Focuses on principles that can be used by managers to coordinate the internal activities of
organizations.
Explains the process of managing an organization from the top managerial perspective.
Five functions to be performed by managers: planning, organizing, Commanding, Coordination,
Controlling.
Managers should apply 14 principles at the operational level:
Division of work
Authority and Responsibility
Discipline
Unity of Command
Unity of direction
Subordination of individual interest to the common good
Remuneration of Personnel
Order
Centralization
Scalar Chain
Equity
Stability of tenure
Initiative
Espirit de Corps
Limitations:
Lack of empirical evidence
Neglect of human factors
False assumptions
Pro-management bias
Historical significance

4. What is current state of affairs as regards management theory and practices?
Ans:

5. Effective management is Management by Objective Explain.
Ans:
MBO is a system in which specific performance objectives are jointly determined by subordinates and
their superiors, progress toward objectives is periodically reviewed, and rewards are allocated on the basis
of this progress.

Management By Objectives term was first popularized by Peter Drucker in 1954 in his book 'The Practice
of Management'.
MBO involves subordinate managers participation in planning and controlling activities. It is a fact that
more of their involvement will result in more commitment, which will lead to more and better results.
One of the concepts of MBO was that instead of just few top managers, all managers of the firm should
participate in the strategic planning process, in order to improve the implement ability of the plan.

MBO is often achieved using set targets.

MBO introduced the SMART method for checking the validity of the objectives which should be
SMART
Specific
Measurable,
Agreed
Realistic, and
Time-Specific or Time related
PROCESS OF MBO
Collectively Formulating Goals
Collectively Formulating Action Plan
Evaluating The Alternatives
Selecting Of The Best Plan
Implementation Of The Plan
Collectively Monitoring Performance


MBO Principles/Elements

Cascading of organizational goals and objectives

Specific objectives for each member

Participative decision making

Explicit time period

Performance evaluation and feedback
ADVANTAGES OF MBO
Better utilization of resources
Aid in Planning
Development of personnel/satisfaction
Better Team Work
Concentration on Key Result Areas
Objective Evaluation
MBO is Result Oriented
Sound Organizational Structure

6. Planning is essentials of management Elucidate.
Ans:
Planning means looking ahead. It is deciding in advance what is to be done. Planning includes orecasting.
According to Henry Fayol - "purveyance, which is an essential element of planning, covers not merely
looking into the future but making provisions for it. A plan is then a projected course of action". All
planning involves anticipation of the future course of events and therefore bears an element of uncertainty
in respect of its success. Planning is concerned with the determination of the objectives to be achieved
and course of action to be followed to achieve them. Before any operative action takes place it is
necessary to decide what, where, when and who shall do the things. Decision making is also an important
element of planning. Planning determines both long-term and short-term objectives and also of the
individual departments as well as the entire organisation. According to Fayol - "The plan of action is, at
one and the same time, the result envisaged, the line of action to be followed, the stages to go through,
and the methods to use. It is a kind of future picture wherein proximate events are outlined with some
distinctness...." Planning is a mental process requiring the use of intellectual faculties' imagination,
foresight, sound judgment etc.

Planning is deciding in advance what is to be done. It involves the selection of objectives, Functions of
Management policies, procedures and programmes from among alternatives. A plan is a predetermined
course of action to achieve a specified goal. It is a statement of objectives to be achieved by certain means
in the future. In short, it is a blueprint for action.

According to Louis A Allen - "Management planning involves the development of forecasts, objectives,
policies, programmes, procedures, schedules and budgets". According to Theo Haimann - "Planning is
deciding in advance what is to be done. When a manager plans, he projects a course of action, for the
future, attempting to achieve a consistent, co-ordinated structure of operations aimed at the desired
results".
According to Koontz O'Donnel - "Planning is an intellectual process, the conscious determination of
courses of action, the basing of decisions on purpose, acts and considered estimates".

Nature of Planning
1. Planning is goal-oriented: Every plan must contribute in some positive way towards the
accomplishment of group objectives. Planning has no meaning without being related to goals.
2. Primacy of Planning: Planning is the first of the managerial functions. It precedes all other management
functions.
3. Pervasiveness of Planning: Planning is found at all levels of management. Top management looks after
strategic planning. Middle management is in charge of administrative planning. Lower management has
to concentrate on operational planning.
4. Efficiency, Economy and Accuracy: Efficiency of plan is measured by its contribution to the objectives
as economically as possible. Planning also focuses on accurate forecasts.
5. Co-ordination: Planning co-ordinates the what, who, how, where and why of planning. Without co-
ordination of all activities, we cannot have united efforts.
6. Limiting Factors: A planner must recognise the limiting factors (money, manpower etc) and formulate
plans in the light of these critical factors.
7. Flexibility: The process of planning should be adaptable to changing environmental conditions.
8. Planning is an intellectual process: The quality of planning will vary according to the quality of the
mind of the manager.
Importance of Planning
As a managerial function planning is important due to the following reasons:-
1. To manage by objectives: All the activities of an organisation are designed to achieve certain specified
objectives. However, planning makes the objectives more concrete by focusing attention on them.

2. To offset uncertainty and change: Future is always full of uncertainties and changes. Planning foresees
the future and makes the necessary provisions for it.
3. To secure economy in operation: Planning involves, the selection of most profitable course of action
that would lead to the best result at the minimum costs.
4. To help in co-ordination: Co-ordination is, indeed, the essence of management, the planning is the base
of it. Without planning it is not possible to co-ordinate the different activities of an organisation.

5. To make control effective: The controlling function of management relates to the comparison of the
planned performance with the actual performance. In the absence of plans, a management will have no
standards for controlling other's performance.

7. What are the components of formal organization?
Ans:
The term 'Organisation' connotes different things to different people. Many writers have attempted to state
the nature, characteristics and principles of organisation in their own way. It can be used as a group of
persons working together or as a structure of relationships or as a process of management. Now, let us
analyse some of the important definition of organising or organisation, and understand the meaning of
organisation.
According to Sheldon, "Organisation is the process of so combining the work which individuals or groups
have to perform with facilities necessary for its execution, that the duties so performed provide the best
channels for efficient, systematic, positive and coordinated application of available effort."

In the words of Chester I Bernard, "Organisation is a system of co-operative activities of two or more
persons."

PRINCIPLES OF ORGANISATION
1. Consideration of unity of objectives: The objective of the undertaking influences the organisation
structure. There must be unity of objective so that all efforts can be concentrated on the set goals.
2. Specialisation: Effective organisation must include specialisation. Precise division of work facilitates
specialisation.
3. Co-ordination: Organisation involves division of work among people whose efforts must be co-
ordinated to achieve common goals. Co-ordination is the orderly arrangement of group effort to provide
unity of action in the pursuit of common purpose.
4. Clear unbroken line of Authority: It points out the scalar principle or the chain of Organizing
command. The line of authority flows from the highest executive to the lowest managerial level and the
chain of command should not be broken.
5. Responsibility: Authority should be equal to responsibility i.e., each manager should have enough
authority to accomplish the task
6. Efficiency: The organisation structure should enable the enterprise to attain objectives with the lowest
possible cost.
7. Delegation: Decisions should be made at the lowest competent level. Authority and responsibility
should be delegated as far down in the organisation as possible.
8. Unity of Command: Each person should be accountable to a single superior. If an individual has to
report to only one supervisor there is a sense of personal responsibility to one person for results.
9. Span of Management: No superior at a higher level should have more than six immediate subordinates.
The average human brain can effectively direct three to six brains (i.e., subordinates).
10. Communication: A good communication sub-system is essential for smooth flow of information and
understanding and for effective business performance.
11. Flexibility: The organisation is expected to provide built in devices to facilitate growth and expansion
without dislocation. It should not be rigid or inelastic.

Organizational Structure
Work Specialization
The degree to which tasks in the organization are divided into separate jobs with each
step completed by a different person.
Overspecialization can result in human diseconomies from boredom, fatigue, stress, poor
quality, increased absenteeism, and higher turnover.
1. Chain of Command
o The continuous line of authority that extends from upper levels of an organization to the
lowest levels of the organization and clarifies who reports to whom.
2. Authority
o The rights inherent in a managerial position to tell people what to do and to expect them
to do it.
3. Responsibility
o The obligation or expectation to perform.
4. Unity of Command
o The concept that a person should have one boss and should report only to that person.
5. Span of Control
o The number of employees who can be effectively and efficiently supervised by a
manager.
o Width of span is affected by:
Skills and abilities of the manager
Employee characteristics
Characteristics of the work being done
Similarity of tasks
Complexity of tasks
Physical proximity of subordinates
Standardization of tasks
6. Centralization
o The degree to which decision-making is concentrated at a single point in the
organizations.
Organizations in which top managers make all the decisions and lower-level
employees simply carry out those orders.
7. Decentralization
o Organizations in which decision-making is pushed down to the managers who are closest
to the action.
8. Employee Empowerment
o Increasing the decision-making authority (power) of employees.
9. Formalization
o The degree to which jobs within the organization are standardized and the extent to which
employee behavior is guided by rules and procedures.
Highly formalized jobs offer little discretion over what is to be done.
Low formalization means fewer constraints on how employees do their work.

8. Explain the term Departmentation.
Ans:
Departmentation means the process by which similar activities of business are grouped into units for the
purpose of facilitating smooth administration at all levels.

It is a process of dividing the large functional organization into small & flexible administrative units.
Importance
It increases the operating efficiency of the employees.
It makes the executive alert & responsible in his duties.
It increases the prestige & skill of the departmental heads.
It helps in better co-ordination among the managerial personnel

10. Departmentalization by Type
o Functional
Grouping jobs by functions performed

o Product
Grouping jobs by product line

o Geographical
Grouping jobs on the basis of territory or geography

o Process
Grouping jobs on the basis of product or customer flow

o Customer
Grouping jobs by type of customer and needs
hor



9. How authority is different from responsibility?
Ans:


10. What are the basic elements of control system?
Ans:
Control is the process through which managers assure that actual activities conform to planned activities.
According to Breach - "Control is checking current performance against predetermined standards
contained in the plans, with a view to ensuring adequate progress and satisfactory performance."

There are three basic steps in a control process:
l Establishing standards.
l Measuring and comparing actual results against standards.
l Taking corrective action.
Establishing Standards
The first step in the control process is to establish standards against which results can be measured. The
standards the managers desire to obtain in each key area should be defined as far as possible in
quantitative terms. Standards expressed in general terms should be avoided. Standards need to be flexible
in order to adapt to changing conditions. The standard should emphasis the achievement of results more
than the conformity to rules and methods. If they do not do so, then people will start giving more
importance to rules and methods than to the final results.

While setting the standards, the following points have to be borne in mind:
(a) The standards must be clear and intelligible. If the standards are clear and are understood by the
persons concerned, they themselves will be able to check their performance.
(b) Standards should be accurate, precise, acceptable and workable.
(c) Standards are used as the criteria or benchmarks by which performance is measured in the control
process. It should not be either too high or too low. They should be realistic and attainable.
(d) Standards should be flexible i.e., capable of being changed when the circumstances require so.

Measuring and comparing actual Results against Standards
The second step in the control process is to measure the performance and compare it with the
predetermined standards. Measurement of performance can be done by personal observation, by reports,
charts and statements. If the control system is well organised, quick comparison of these with the standard
figure is quite possible. This will reveal variations. After the measurement of the actual performance, the
actual performance should be compared with the standards fixed quickly. A quick comparison of actual
performance with the standard performance is possible, if the control system is well organised. While
comparing the actual performance with the standards fixed, the manager has to find out not only the
extent of variations but also the causes of variations. This is necessary, because some of the variations
may be unimportant, while others may be important and need immediate corrective action by the
manager.
Taking Corrective Action
After comparing the actual performance with the prescribed standards and finding the deviations, the next
step that should be taken by the manager is to correct these deviations. Corrective action should be taken
without wasting of time so that the normal position can be restored quickly. The manager should also
determine the correct cause for deviation. Taking corrective action can be achieved in the following way:

(a) The manager should try to influence environmental conditions and external situations in such a way as
to facilitate the achievement of goals.
(b) He should review with his subordinates the instructions given earlier so that he may be able to give
clear, complete and reasonable instructions in future.
(c) There are many external forces which cannot be adjusted by the manager. They have to be accepted as
the facts of the situation, and the executives should revise their plans in the light of these changing forces.

PART B
11. Management is the development of people not the direction of the thing. Elucidate.
Ans:
12. Describe some of the forecasting techniques with which you are familiar.

13. Explain how organization structure leads to human relations problems.

14. Magic power of liquid cash is still important motivator Comment.

15. Discuss the benefits and limitations of the management control techniques.









MBA DEGREE EXAMINATION APRIL 2011
PART A
1. Explain the scientific principles of management
2. Describe the various types of organization.
3. Define control and explain the process of control
4. Describe qualities of good supervisor.
5. What do you mean by span of control?
6. Describe the process of communication.
7. Explain the important role of staffing.
8. Differentiate formal and informal groups.
9. Organization on a social system- comment.
10. Differentiate between leadership and management.

PART B
11. Write a critical note on the contribution of Henry Fayol.
12. Distinguish between theory X and Theory Y.
13. Explain the different types of communication network with examples.
14. Analyze the factors determining degree of decentralization.
15. Explain the concept of social responsibility of business with example.



MBA DEGREE EXAMINATION NOVEMBER 2011
PART A
1. Explain the contribution to management thought by Elton Mayo
2. What is social audit? State its merits?
3. What do you understand about planning premises? Discuss.
4. Decision making is the primary task of the manager comment.
5. Explain the process of delegation.
6. Explain the types of committees. Explain their pros and cons.
7. Draw a chart of matrix organization.
8. Define co ordination. Briefly explain the approaches to achieve effective coordination.
9. What are the problems of control in an organization? Suggest steps should be taken to make
control effective.
10. What do you mean by global control? Explain with suitable example.

PART B
11. Describe the contribution of F W Taylor and Peter Drucker to the development of management
thought.
12. Identify the various steps involved in planning. How can planning be made effective?
13. Explain line and staff authority. What are the causes for conflict between line and staff? How will
you overcome?
14. Is there any ideal leadership style? Which of the various leadership theories and approaches is the
most applicable in the real world?
15. just as planning, controlling should also be dominantly forward looking function. To what
extent is it possible?









MBA DEGREE EXAMINATION NOVEMBER 2012
PART A
1. Elaborate the principles of coordination.
2. What is morale? Explain the factors that contribute to the employee morale.
3. Management of change is a complex process. Comment.
4. Bring out the significance of Top and Middle level managers relationship.
5. What is Departmentation? Explain the various factors influencing Departmentation process.
6. What are the leadership qualities that you would look for a manager? Explain.
7. Define organization and bring out its different elements.
8. Discuss the barriers involved in effective communication.
9. Bring out the necessity for global planning.
10. Describe the various methods of planning.

PART B
11. Elaborate the process of control. Write a note on global controlling and global challenges.
12. Have Explain Taylors principles of scientific management. Do they have relevancy and
application today?
13. Discuss the various steps involved in decision making process.
14. Discuss the communication process in detail with a sketch.
15. Explain the role of IT in management with respect to control techniques.


MBA DEGREE EXAMINATION NOVEMBER 2010
PART A
1. What do you meant by divergence between principles and practice of management?
2. How the society is linked with society? Explain.
3. Distinguish between objective and policies.
4. Explain the steps involved in policy formulation and administration.
5. Is it possible to have uniform organizational structure for all organisation? Explain.
6. Distinguish between delegation of authority and decentralization.
7. Explain the process of human motivation.
8. Distinguish between goal directed activity and goal activity.
9. What is budgetary control?
10. Explain the process of controlling.
PART B
11. What are the contributions of F W Taylor towards management?
12. Explain the importance of planning. What are the types of plans? Explain them in detail.
13. Explain the contributing variables of organizational culture climate.
14. Explain the following:
a. Reddins three dimensional model of leadership.
b. Paul Hersely and Ken Blands situational leadership.
15. Explain the challenges of global business and its impact in India












MBA DEGREE EXAMINATION APRIL 2010
PART A
1. Examine the distinction between administration and management.
2. What do you understand by social responsibility in business?
3. What are planning premises? What are their major types?
4. Discuss the policies in management.
5. Compare and contrast centralization and decentralization.
6. Outline the steps in staffing process.
7. Explain Maslows theory of motivation.
8. Discuss the types of communication.
9. Distinguish productivity from
a. Production
b. Efficiency and
c. Quality
10. What is IT and its uses and its limitations.
PART B
11. Management is a half hearted profession Do you agree? Analyze the positive and negative
aspects of the management profession.
12. Forecasting is the heart of planning process comment. Describe briefly the various techniques
of forecasting.
13. Departmentation by simple numbers is gradually disappearing now a days why?
14. Explain the theory X and theory Y and state its assumptions.
15. Suggest measures to improve productivity of a manufacturing organization.

MBA DEGREE EXAMINATION NOVEMBER 2009
PART A
1. Explain the contributions of Elton Mayo.
2. Business ethics is the basic functions of management. Discuss.
3. Examine the obstacles of effective planning.
4. What is decision making? Explain its need and importance.
5. Define Departmentation. What are the different types of Departmentation?
6. Discuss the advantages and disadvantages of committees.
7. Motivation is the core of management. Explain.
8. Explain the process of communication.
9. Define coordination. Briefly discuss the approaches to achieve effective coordination.
10. Distinguish between controlling and --------------- with their similarities and dissimilarities.
PART B
11. Enumerate the contributions of Peter Drucker to management.
12. Discuss the need and importance of planning what are the various types of plans? Explain.
13. What do you understand by the term delegation of authority? Examine the factors determine the
extent of delegation.
14. There is no one best way of leadership style suitable to all organizations. Do you accept or not?
Justify your stand.
15. Identify the essentials of effective control system. Enumerate the various techniques used in an
organisation.









MBA DEGREE EXAMINATION APRIL 2008
PART A
1. What are the different managerial functions performed at different at different organizational
level?
2. What are the different managerial roles identified by Mintzberg? Explain.
3. Explain how the logical steps in planning are essentially a rational approach to setting objectives
and selecting the means of reaching them.
4. Decision making is the primary task of management. Think of any two problems and commend
programmed or non programmed.
5. Explain the importance of obtaining balance between centralization and decentralization of
authority.
6. Explain the patterns of Departmentation.
7. What are the ingredients of leadership? Explain.
8. What are the advantages and disadvantages of committees especially in decision making?
9. Examine the requirements of an effective control system.
10. Give examples of how IT has enhanced the control process.
PART B
11. Identify the various approaches to management analysis. Discuss their contributions and their
limitations.
12. How can you distinguish strategies and policies? How can strategies be implemented?
13. Construct a diagram depicting the formal organization of an enterprise which you are familiar
with. How does this organization chart help or hinder the establishment of an environment foe
performance?
14. Distinguish between a committee, a team and a group. What are the reasons for using a
committee? Why are committees criticized so often?
15. What is feed forward control? Why is it important to managers? Why is real time information not
good enough for effective control?

MBA DEGREE EXAMINATION APRIL 2009
PART A
1. What you understand by scientific management?
2. What are the contributions of Chester Bernard?
3. List the advantages of planning.
4. What is global planning? Give an example.
5. Specify the reason for line and staff conflict.
6. What are the benefits of sound organisation structure?
7. What are the principles of coordination?
8. Explain informal organisation. Give an example of each step.
9. Identify the five basic steps in the control process and provide an example of each step.
10. Give examples of how information technology has enhanced the control process.
PART B
11. Describe the salient features of Taylors Scheme of Scientific management and discuss their
validity today.
12. What are the different types of plans? Explain the various steps in the process of planning.
13. What is Departmentation? How departments are organized?
14. What are the various styles of leadership? Which style would ideally suit to Indian condition?
15. What is feed forward control? Why is it important to managers? Why is real time information not
good enough for effective control?





MBA DEGREE EXAMINATION NOVEMBER 2007
PART A
1. What are social responsibilities of modern industry?
2. Describe the factors responsible for slow development of management thought.
3. Discuss the role of planning in management.
4. What types of factors involved in the decision making process?
5. Explain the concept of organisation. Narrate the steps in organizing.
6. Describe the factors which make coordination necessaty.
7. Write an essay on the importance of communication.
8. Discuss the concept and process of control.
9. Delegation of authority is the key to organisation- explain.
10. Budgetary control is tool of planning coordination and control. Explain.
PART B
11. What is meant by global and comparative management? Discuss briefly the basis of global
management.
12. Why is it necessary to weigh the alternative course of action?
13. Describe the principles and steps that constitute the organizing process.
14. Enumerate the importance of communication in management. Describe the basis of
organizational structure.
15. Bring out the importance of control as a function of management. Write a brief note on various
types of controls exercised at different levels of management.

MBA DEGREE EXAMINATION NOVEMBER 2008
PART A
1. Discuss Taylors contribution to scientific management.
2. Specify the thrust area of management to act globally and withstand the competition.
3. Discuss the various types of policies.
4. Explain planning, policies, and strategies with example.
5. What do you mean by span of control and discuss the factors deciding the size?
6. What are the merits and demerits of committee form of organisation?
7. What is group decision making? Specify the practical problems in group decision making. How
did you make group decision making effective?
8. Discuss the components of communication.
9. How do you adopt IT for making control techniques more effective?
10. Emphasize the importance of preventive control. Explain the technique used as preventive control
measure.
PART B
11. Discuss the social responsibilities of organisation and their need for being ethical.
12. Proper planning is half of the work done. Discuss.
13. Explain the organisational culture and how does organisation structure plays a role in developing
good organisational culture.
14. Vrooms model assumes that managers need to be flexible in styles. Discuss the feasibility of this
model among Indian Managers.
15. Explain some of the financial controlling techniques used and their merits and demerits.