Professional Documents
Culture Documents
Pom QB
Pom QB
C309.2 To get an idea about the planning, MBO, Decision Making and Policies making.
Gain the knowledge about organization structure, Formal and Informal groups, Line and
C309.3 staff authority, Span of control, Centralization and decentralization, Staffing, Recruitment,
Career Development, Training and personal Appraisal
To understand about the Creativity an Innovation, Motivation and satisfaction, Leadership
C309.4
theories, communication, Elements and types of Culture.
Gain knowledge about the controlling process, types of control (Budgetary and non-
C309.5
budgetary control, Cost control, purchase control, Maintenance control, quality control)
3. State the Functions/role of Manager. Or List out the roles played by manager in an
organization. (Nov 2016, Nov 2017)
Productivity =
7. What is Effectiveness &Efficiency?
Effectiveness is the achievement of objectives and Efficiency is the achievement of the ends with the least amount
of resources. Effectiveness is doing right things & efficiency is doing things rightly.
8. What are management levels?
1) Top level management. 2) Middle level management. 3) Lower level management.
9. Write some important functions of top level management.
Formulate goals (long term and short term) and policies (quality policy and management policy) of the
organization; formulate budgets (financial and operational) and appoint top functional administrative executives.
10. What is social responsibility?
Social responsibility is the part of the management to initiate actions to protect the interest of the society.
Managing here implies monitoring of natural resources (preservation, adopting biodegradation technologies,
green concepts and recycling initiatives) and initiative towards green manufacturing.
11. Write Fayol's fourteen principles of management.
1) Division of work. 2) Authority and Responsibility. 3) Discipline. 4) Unity of command. 5) Unity of direction.
6) Subordination of Individual interest to general interest. 7) Remuneration. 8) Centralization 9) Scalar chain.
10) Order. 11) Equity. 12) Stability of Tenure. 13) Initiative. 14) Esprit de Corps.
12. What is scalar chain?
The instructions and orders should be sent from the top management to the lower management. The chain of
command is well defined for achieving operational excellence on par with quality performance. The directions for
the financial year is communicated effectively using the chain of command such that the entire organization
travels with the same or common vision and mission towards achieving excellence
13. Explain: Management is both —a science and an art.
Management is a science because it contains general principles. It is also an art because it requires certain
personal skills to achieve desired results.
14. What is Esprit-de-corps?
It means ‘Unity is strength’. In an organization, amongst the employees there should be harmony and unity. The
morale of the team will enhance team work and result in productivity improvement of the organization.
15. List out the claimants of the business enterprise.
1) Shareholders. 2) Employees. 3) Customers. 4) Creditors. 5) Suppliers. 6) Government
16. What are the major contributions of Taylor?
The major contributions of F.W.Taylor are as follows; He developed the principle of division of labor/work. He
developed method study; He advocated time study; He developed certain principles to breakup each job into small
independent elements; He developed the concept of fair day’s work; He proposed the concept of functional
organization
17. What is time study?
Time study refers to the measuring of (under controlled conditions) the time for completing a particular task
(process time) using specific Methods and Materials. This will be useful in arriving at a scientific standard for
each work task in the marketing process. The same will be used for arriving at the selling price of the product,
labor utilization, company improvement activities and setting benchmarks in functional streams of the
organization.
18. What is motion study?
Taylor suggested that eliminating wasteful movements and performing only necessary movements.
19. Define partnership.(Nov 2017)
Under the Indian Partnership Act of 1932, Partnership is defined as –“the agreed relation between persons who
have agreed to share the profits of a business carried on by all or by any one of them acting for all”.
20. What do you mean by ‘unity of command’?
Unity of command’ is an important principle proposed by Henry Fayol. This implies that an employee should
receive orders from one superior only. This is referred to as Chain of Command and always the direction or flow
of orders defines effective communication practices in an organization.
21. What is centralization?
The organization is centralized when the power is concentrated in the hands of few people. This will affect the
transparency and lacuna in decision making that will hamper the growth and development of an organization and
the pace with which the company compete with its competitors.
22. What is decentralization? (May 2016)
The organization is decentralized when the power is fully distributed to the subordinates of the organization. This
will increase the transparency and effective communication and eliminates chaos and confusion with data
disparity.
23. Write any two functions of middle level management.
To train, motivate and develop supervisory level; To monitor and control the operations performance.
24. What is ethics?
All individuals in business or non-business activities are concerned with some standardized form of behavior are
known as ethics.
25. What is an organization culture? (April 2017)
Organizational culture is a system of shared assumptions, values, and beliefs, which governs how people behave
in organizations. These shared values have a strong influence on the people in the organization and dictate how
they dress, act, and perform their jobs.
26. Give the current trends in management. (Nov 2016)
The current trends in management are globalization, technology, sustainability and corporate social responsibility,
integrating psychology theory and research into management practice, Business Ecosystems, Cross functional
teams, leveraging Social media
27. Distinguish between public and private limited companies. (April 2018)
The difference between public and private company can be drawn clearly on the following grounds:
1.The public company refers to a company that is listed on a recognised stock exchange and traded
publicly. A Private Ltd. the company is one that is not listed on a stock exchange and is held privately by
the members.
2.There must be at least seven members to start a public company. As against this, the private company
can be started with minimum two members.
3.The is no ceiling on the maximum number of members in a public company. Conversely, a private
company can have a maximum of 200 members, subject to certain conditions.
4.A public company should have at least three directors whereas the Private Ltd. company can have a
minimum of 2 directors.
5.It is compulsory to call a statutory general meeting of members, in the case of a public company,
whereas there is no such compulsion in the case of a private company.
6.In a Public Ltd. Company, there must be at least five members, personally present at the Annual
General Meeting (AGM) for constituting the requisite quorum. On the other hand, in the case of a
Private Ltd. Company, that number is 2.
7.The issue of prospectus/statement instead of the prospectus is mandatory in case of a public company,
but this is not the case with the private company.
8.To start a business, the public company needs a certificate of commencement of business after it is
incorporated. In contrast, a private company can start its business just after receiving a certificate of
incorporation.
9.The transferability of shares of a Pvt. Ltd. company is completely restricted. On the contrary, the
shareholders of a public company can freely transfer their shares.
10. A public company can invite the general public for subscribing shares of the company. As
opposed, a private company has no right to invite public for subscription.
PART B - C462.1
1. Explain the Functions of Management. (April 2017)
2. What are the managerial skills required at different levels of management.
3. Explain the importance of management. How Differentiate management with administration
4. Explain the Weber’s ideal bureaucracy.
5. Environmental factors affecting management policy making. Or Enlighten the relevance of environmental
factors that affects global business. (April 2018)
6. Discuss whether Management is a Science or Art. (May 2016)
7. Explain the Henry Fayol’s principles of management. Or Elucidate in detail the various principles of
management as advocated By Henry Fayol. (May 2016, Nov 2017)
8. Explain the contributions of FW Taylor. (April 2018)
9. Explain the role of managers in detail.
10. Discuss the management functions as related to trends and challenges in management of global scenario.
11. Explain the evolution of management in detail. (May 2016, Nov 2016)
12. Explain different types of business organization. (April 2017, Nov 2016)
13. Explain the current trends and issues in Management. (Nov 2017)
UNIT – II: PLANNING
PART A - C462.2
1. Definition of planning. (May 2016)
The determination of what is to be done, how and where it is t be done, who is to do it and how results are to be
evaluated. In manufacturing industries the project kick start will be done with a prepared TIME PLAN that
captures all the functional activities against time/target (Quality, Manufacturing, R&D, Purchase, Marketing)
pertaining to various departments, consolidated and submitted to the stakeholders for carrying out the activities
listed in the PLAN.
2. What are the types of planning?
Short range; long range; repeated; single use and functional planning
3. What are the Qualities of good plan?
Simple, logical, flexible, practical and stable. It must be complete and integrated.
4. What are Rules?
Statement of expected results expressed in quantitative terms. Rules are framed based on the management
objectives; project target and customer requirements. Actual vs. achieved matrix is plotted to analyze the project
shortcomings and will necessitate remedial measures/actions to avoid time delay.
5. Define Procedure.
It is a series of related task that up the chronological sequence and the established way of performing the work to
be accomplished. Procedure takes care of project shortcomings and accommodates flexibility in executing the
project time plan.
6. Define Budget.
Budget is termed as a financial plan for the current financial year, say 2014-2015, prepared by an organization
based on business forecast, customer demand, market fluctuations, administrative, overhead expenses and internal
objectives. This will give directions to the management to raise capital investment through various means to feed
the project thus aligning with the objectives and vision of the company. .
7. Define Objectives.
Objectives are set of goals that aligns with the MBO (management by objective) communicated across the
organization to guide the efforts of the company and each of its components, that will streamline the organization
giving definitive and clear cut directions with which the organization move forward
8. What is MBO? (Nov 2016)
MBO - Management by Objective. It is a process whereby the superior (management / board of directors) and
subordinate of an organization jointly identify common goal, define each individual’s major areas of
responsibility in terms of results expected of him and use this measures as guides for operating the unit/
organization and assessing the contribution of each if its members.
9. What is TOWS matrix?
It is a conceptual frame work for systematic analysis, which facilitates matching the external threats and
opportunities (SWOT-Strength; Weaknesses; Opportunity and Threats) with the internal weakness and strength of
the organization. This will facilitate check and balances that an organization or the project team needs to initiate
for hurdle free execution of the project/goals.
10. Define Strategy Planning.
Determination of basic long term objectives and of courses of action and allocation of resources to achieve these
objectives lay down by the Management. Strategy will be time based and measured for pros and cons to eliminate
hurdles or constraints that hamper the transformation process which will make the strategy into a workable
solution.
11. What are Policies? (Nov 2016)
Verbal, written, or implied overall guide setting up boundaries that supply the general limits and direction in
which managerial action will take place. The company policy is framed thinking upon the vision statement and
guided by definitive directions towards achieving the prime objectives like inclusive growth, financial stability
and market capitalization.
12. State different strategies of Porter’s generic strategy.
Overall cost leadership strategy, differentiation strategy and focused strategy
13. What are classifications of budget?
Functional classification- Sales, production, cash, capital and master budget; Time classification- Short term,
current and long term budget; Activity level- Fixed and flexible budget
14. Benefits of planning.
Emphasis on objectives, minimizes uncertainty, facilitates control, improves coordination, secure economy and
ensure healthy environment, encourage innovation and improve competitive strength.
15. Define Planning Premises. (April 2018)
Anticipated environment in which plans are expected to operate. They include assumptions or forecasts of the
future and known conditions that will affect the operation of plans. The environment here implies conducive
which will promote businesses and arena for new innovations that will bring brand equity and presence in the
domestic and international market
16. Define MIS.
MIS is more advance technology for solving its basic requirements. MIS used for decision making in the various
functional areas of business.MIS provides day to day operational data and schedules planned and achieved to the
management for taking rationalized decisions. Arbitrary decisions can be avoided and thus mitigate the risk of
wrong/implicit decision making.
17. Explain the terms decision-making. (May 2016)
It is a process of selection from a set of alternative courses of action which is thought to fulfill the objectives of
the decision problem more satisfactory than others. The risk involved in decision making or decisions made needs
mitigation plans to augur future delays and losses that may happen if the decision proves wrong. A risk mitigation
plan
18. What are zero base budgets?
Initially the budget is designed from a zero base. The main element is ZBB is future objective orientation.
This ZBB would provide elementary capital/investment projection that the management or board require to
arrange (through own, funded agencies, financial institutions, PSU and Banks) for supporting the business.
19. What is DSS?
DSS –use computers to facilitate the decision making process of semi structured tasks. This will be liked with
MIS and thus warrants for actions to be taken irrespective of priorities and will limit misunderstandings among
employees in carrying out the work based on priorities.
20. What are the purposes of planning? (April 2017)
To determine the direction (guidelines) of an organization; to minimize wastages; to reduce the risk or uncertainty,
to facilitate control over operations and finance of a company, manpower utilization and societal considerations.
21. List the planning tools in business management. (April 2017)
SWOT Analysis. The SWOT analysis is a strategic management tool used to identify your business's place
in the market. ...
Gap Analysis. A gap analysis monitors your progress toward strategic goals. ...
PEST Analysis. ...
Five Forces Analysis.
22. What is intuitive decision making? (April 2018)
Intuition is receiving input and ideas without knowing exactly how and where you got them from. You simply
know it is not from yourself. Like creativity, intuitive inspiration often happens when someone virtually
«fuses» in an activity, when one is highly focused on the respective activity in a state of joy and fulfilment.
Intuition can be trained and in its highest level leads into a conscious contact with non-incarnated beings, a
process usually called channelling.
Most of us are used to making intuitive decisions in our daily life: As soon as subjective judgement is
involved, rational reasoning is very difficult to apply. Typical examples where intuition can play an important
role in making decisions are: Choosing your life partner, selecting the right car to buy, evaluation of a job,
decision about an education, selecting a meal when eating out, selecting the next book to read, decide how to
dress for today, and so on.
Intuitive decision making is far more than using common sense because it involves additional sensors to
perceive and get aware of the information from outside. Sometimes it is referred to as gut feeling, sixth sense,
inner sense, instinct, inner voice, spiritual guide, etc. Many pages on this site are devoted to encourage and
help people to use these sensors for decision processes . It is related to developing a higher consciousness in
order to train these sensors and to make the process of receiving information intuitively a more conscious one.
People who can't accept the existence of such sensors may instead call it tapping into collective intelligence
"collective unconscious".
23. Distinguish between policy and rules. (Nov 2017)
Rules are clear instructions that must be followed by the entities. And in case if rules are not followed then
entity will have to face some legal action in the form of penalties, suspension etc. So basically rules are given
the ability to have the protection of their own.
Policies relates to how the rules are going to be implemented. Entities design their policies on the basis of
rules applied by regulatory authorities AND their business objectives. Policies basically give a direction to the
entity that is in line with both applicable laws and aims that business wants to achieve.
24. What do you understand by Strategic Management? (Nov 2017)
Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary
for an organization to meet its goals and objectives. Fast-paced innovation, emerging technologies and
customer expectations force organizations to think and make decisions strategically to remain successful. The
strategic management process helps company leaders assess their company's present situation, chalk out
strategies, deploy them and analyze the effectiveness of the implemented strategies. The strategic management
process involves analyzing cross-functional business decisions prior to implementing them. Strategic
management typically involves:
Analyzing internal and external strengths and weaknesses.
Formulating action plans.
Executing action plans.
Evaluating to what degree action plans have been successful and making changes when desired results are
not being produced.
PART B - C462.2
1. Explain the Steps in Planning. (April 2017)
2. Explain in detail about the classification of planning practices.(Nov 2016)
3. Explain the TOW’s matrix with example.
4. Explain the various techniques of decision making. (May 2016, Nov 2016, April 2017)
5. Explain the steps involved in strategy formulation and implementation process.
6. Write a note on BCG Portfolio matrix.
7. What are the types of decisions?
8. Explain in detail the various types of planning. (Nov 2017)
9. List out the features of planning. (May 2016)
10. What is the importance of planning?
11. What are the steps involved in MBO process. Or Define MBO. Explain the process of MBO (April 2018,
Nov 2017)
12. Classify the types of goals organizations might have and the plans they use of accomplishment. (April 2018)
13. Is decision making rational process? Discuss. (Nov 2017)
UNIT III: ORGANIZING
PART A - C462.3
1. State the advantages of departmentation by function.
It is most logical, scientific, time proven and natural method of departmentation - It provides specialization of
work which makes maximum utilization of manpower and other resources - It ensures proper performance control -
It facilitates delegation of authority and therefore, reduces the burden of top executives.
2. Define Organizing. (May 2016)
Organizing is the process of identifying and activities required to attain the objectives, delegating, creating
responsibility and establishing relationships with people to work effectively.
3. Mention any four characteristics of an organization.
Common objectives; Specialization or Division of Labour; Authority of structure; Group of persons
4. List out the steps involved in organization process.
Determination of activities; Grouping of activities; Assignment of Duties; Delegation of authority
5. Mention the various principles involved in organization.
Principle of unity of objective, Principle of division of work or specialization,
Principle of efficiency & Principle of span of control.
6. Mention the three categories of relationships in span of management.
Direct single relationship; direct group relationships; Cross relationship
7. State the important factors in determining an effective span of management.
Capacity of superior, Capacity of subordinates, Nature of work, Type of technology, Delegation of authority and
Organizational Structure.
8. What are the types of departmentation?
Departmentation by function, departmentation by territory or geography, departmentation by customers,
departmentation by equipment or process and departmentation by product or service.
9. State the disadvantages of departmentation by function.
There is a tendency for overspecialization - The department managers are experts in handling the problems in their
department alone. They may not be able to understand the problem of other departments.
Functional departmentation discourages communication across functions so that the workers develop a narrow
technical point of horizontal conflicts- It increases the workload and responsibility of the departmental heads- It
does not offer any scope for training for the overall development of manager
10. Give a note on departmentation by customers.
This type of departmentation is preferred when the needs of customers are different in nature. Big organizations
provide special services to different types of customer. Categorization of customer needs based on domestic and
international market / demand and service requirements aided with knowledge based awareness to the user
community will be the fundamental basis for departmentation by customers.
11. What is departmentation by product?
Departmentation by Product or Service: In this case, the units are formed according to the product. It is more useful
in multi-line corporations where expansion and diversification, manufacturing and mark characteristics of the
product are of primary concern.
12. Define authority.
"Authority is the right to give orders and the power to exact obedience". It is termed as destined responsibility by
the management or board of directors to the top level executives.
13. List out the sources of authority.
Formal authority theory; Acceptance Authority Theory and Competence theory
14. What is line authority?
Line authority is the direct authority which a superior exercises over a number of subordinates to carry out orders
and instructions. In an organizing process, authority is delegated to the individuals to perform the activities.
15. Define recruitment.
B.Flippo defined recruitment as “the process of searching for prospective employees and simulating for jobs in the
organization”.
16. What is staff authority?
A staff person assists the line people in attaining their objectives. Staff authority is purely advisory. Types of staff
authority are a) Advisory staff authority, b) Compulsory staff authority and c) Concurrent staff authority.
17. What is departmentation by process?
Departmentation by Process or Equipment: Under this type of departmentation, activities are grouped on the basis
of production processes or equipment involved. In process centric manufacturing industries like Petrochemical,
FMCG, Power generation, Chemical and Fertilizers production plants the production process will be unique and
continuous.
18. What is Performance Appraisal? What are the different methods/techniques of Performance
appraisal?(Nov 2016, April 2017)
Performance Appraisal is evaluating the actual performance of the employee for determining the compensation and
identifying the potential of the employees. Methods/Techniques of Performance Appraisal:(i) Trait-based appraisal;
Graphic scale method, ranking method, grading system, forced distribution method, check list method, Critical
incident method, group appraisal (ii)Appraisal by results: MBO, Behaviorally Anchored Rating(BARS),
Assessment Centre, 360 degree performance appraisal.
19. State the types of organizational charts.
Vertical or Top-to-Bottom chart; Horizontal or Left-to-right chart; Circular or concentric chart. The organization
structure reveals the chain of command added with the authorization or power destined to individual member base
on the job profile and company directions.
20. Define “Departmentation”. (Nov 2016)
Departmentation is the foundation of organization structure. It means division of work into smaller units and their re
– grouping into bigger units (Departments) on the basis of similarity of features. Each department is headed by a
person known as departmental manager. Division of work into depts. Leads to specialization as people of one
department perform activities related to that department only.
21. What is delegation of authority?(April 2017)
The Delegation of Authority is an organizational process wherein, the manager divides his work among the
subordinates and give them the responsibility to accomplish the respective tasks.
22. What are various stages of staffing process?
External environment
Enterprise
plans
Organisation
plans External
sources
Recruitment Appraisal
Analysis of Selection Career
present and Placement Strategy
Number and kinds
future needs Promotion
of managers
for managers Separation Training
required
&Develop
Internal
ment
sources
Manager
inventory
Career management is conscious planning of one’s activities and engagements in the jobs one undertakes in the
course of his life for better fulfilment, growth and financial stability. It is a sequential process that starts from an
understanding of oneself and encompasses occupational awareness.
25. What is Job Design? (April 2018)
Job design (also referred to as work design or task design) is a core function of human resource management and it is
related to the specification of contents, methods and relationship of jobs in order to satisfy technological and
organizational requirements as well as the social and personal requirements of the job holder or the employee. Its
principles are geared towards how the nature of a person's job affects their attitudes and behavior at work,
particularly relating to characteristics such as skill variety and autonomy. The aim of a job design is to improve job
satisfaction, to improve through-put, to improve quality and to reduce employee problems (e.g., grievances,
absenteeism).
26. Distinguish between authority and power? (April 2018)
The difference between power and authority can be drawn clearly on the following grounds:
1. Power is defined as the ability or potential of an individual to influence others and control their actions.
Authority is the legal and formal right to give orders and commands, and take decisions.
2. Power is a personal trait, i.e. an acquired ability, whereas authority is a formal right, that vest in the hands of
high officials or management personnel.
3. The major source of power is knowledge and expertise. On the other hand, position and office determine the
authority of a person.
4. Power flows in any direction, i.e. it can be upward, downward, crosswise or diagonal, lateral. As opposed to
authority, that flows only in one direction, i.e. downward (from superior to subordinate).
5. The power lies in person, in essence, a person acquires it, but authority lies in the designation, i.e. whoever
get the designation, get the authority attached to it.
6. Authority is legitimate whereas the power is not.
PART B - C462.3
1.Elucidate any four types of organization. (Nov 2017)
2.Discuss art of delegation of authority.
Formal organization is relatively slow to respond . Informal organization is dynamic and very
and adapt to changing situations and realities. vigilant. It is sensitive to its surroundings.
a) Determination of Objectives:
It is the first step in building up an organization. Organization is always related to certain objectives.
Therefore, it is essential for the management to identify the objectives before starting any activity.
Organization structure is built on the basis of the objectives of the enterprise. That means, the structure of
the organization can be determined by the management only after knowing the objectives to be
accomplished through the organization. This step helps the management not only in framing the
organization structure but also in achieving the enterprise objectives with minimum cost and efforts.
Determination of objectives will consist in deciding as to why the proposed organization is to be set up
and, therefore, what will be the nature of the work to be accomplished through the organization.
b) Enumeration of Objectives:
If the members of the group are to pool their efforts effectively, there must be proper division of the major
activities. The first step in organizing group effort is the division of the total job into essential activities.
Each job should be properly classified and grouped. This will enable the people to know what is expected
of them as members of the group and will help in avoiding duplication of efforts. For example, the work
of an industrial concern may be divided into the following major functions – production, financing,
personnel, sales, purchase, etc.
c) Classification of Activities:
The next step will be to classify activities according to similarities and common purposes and functions
and taking the human and material resources into account. Then, closely related and similar activities are
grouped into divisions and departments and the departmental activities are further divided into sections.
d) Assignment of Duties:
Here, specific job assignments are made to different subordinates for ensuring a certainty of work
performance. Each individual should be given a specific job to do according to his ability and made
responsible for that. He should also be given the adequate authority to do the job assigned to him. In the
words of Kimball and Kimball - "Organization embraces the duties of designating the departments and the
personnel that are to carry on the work, defining their functions and specifying the relations that are to
exist between department and individuals."
e) Delegation of Authority:
Since so many individuals work in the same organization, it is the responsibility of management to lay
down structure of relationship in the organization. Authority without responsibility is a dangerous thing
and similarly responsibility without authority is an empty vessel. Everybody should clearly know to
whom he is accountable; corresponding to the responsibility authority is delegated to the subordinates for
enabling them to show work performance. This will help in the smooth working of the enterprise by
facilitating delegation of responsibility and authority.
ORGANIZATION STRUCTURE
An organization structure is a framework that allots a particular space for a particular department or an
individual and shows its relationship to the other. An organization structure shows the authority and
responsibility relationships between the various positions in the organization by showing who reports to
whom. It is an established pattern of relationship among the components of the organization.
March and Simon have stated that-"Organization structure consists simply of those aspects of pattern of
behavior in the organization that are relatively stable and change only slowly." The structure of an
organization is generally shown on an organization chart. It shows the authority and responsibility
relationships between various positions in the organization while designing the organization structure, due
attention should be given to the principles of sound organization.
16. Jacob, one of your assistants in a fire insurance company, is responsible for a group of clerical workers
who review changed policies, endorsements, and riders, calculate commissions, and maintain records. He is
very meticulous, and everything coming out of his group is perfect. He does not delegate authority and
responsibility but rechecks in detail all the work turned out by his faction. He keeps turning back to them
careless and inaccurate work until it is perfect. As a result he is busy from early morning until late at night
doing detail work and neglecting his role as supervisor. His workers have figured him out and taking it
easy. They do slap-dash work and correct it as often as he returns it. You are afraid about Jacob’s
workaholic behavior and heading for a nervous breakdown. You have told him in general terms to delegate
authority and responsibility and to discipline his group.
He says that you just can’t find people any more who have pride in their work or concern for the company
and that if he fires any of his people or they quit the replacements would most likely be more terrible.
1) Why people do not delegate authority and responsibility?
2) What are Jacob’s responsibilities as a supervisor?
3) Which can he delegate and how?
4) What are the leadership characteristics that Jacob lacks?
5) How can you go about developing them in him?
To answer the above questions follow the steps below:
First, study the case carefully, identifying the management principles involved, where possible.
Gain as sound an understanding as possible, within the time available, through private as study.
Apply the systematic analysis methodology.
Discuss your analysis and conclusions.
UNIT – IV: DIRECTING
PART A - C462.4
1. Define Leading.
It is a process of influencing people so that they will contribute to organisation and group goals. Leading by
example and directing the subordinates to be focused and aligned with the organisational goals and objectives.
2. Define Motivation.
It is a process of stimulating people to achieve/ accomplish desired goals. Motivation is defined as “those forces
operating within the individual employee or subordinate which impel him to act or not or to act in certain ways.
Motivation is mainly psychological. It acts as a driving force for successful implementation of the management
objectives eradicating psychological barriers.
3. What is the role of a Democratic leader?
He consults with subordinates on proposed actions and decisions and encourages participation from them. A
democratic leader listen to his subordinate view points and give opportunity for inclusive growth and will lead the
team from behind being a motivator and lead by example.
4. Define Job Enrichment. (April 2017, Nov 2017)
It attempts to make a job more varied by removing the dullness associated with performing /repetitive and
monotonous operations. A conducive work environment with aids for motivation, relaxation, taken care-off
attitude from management will make the employees feel good while during or executing work
5. What is QWL?
Main objective of QWL will be increasing productivity and reducing inflation and as a way of obtaining industrial
democracy and minimizing labor disputes.
6. Define Leadership as an Art.
Art or process of influencing people so that they will strive willingly and enthusiastically towards achievement of
the goal.
7. What are the Styles of Leadership?(May 2016)
Autocratic leadership; Democratic leadership and Free-reign leadership.
8. 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.
9. What are the various types of communication?
Formal, informal, vertical, horizontal, grapevine, written and oral communication.
10. What is Country club management?
In a country club management, the mangers have little or no concern for production, but are concerned for people
or the employees.
11. What are the types of needs?
Primary Needs: Physiological requirements such as food, sleep, water and shelter.
Secondary needs: Self-esteem status, affection, accomplishment and affiliation with others.
12. Explain - Maslow’s Needs. / Elements of Maslow’s hierarchy of needs. (Nov 2016)
Physiological needs, Safety needs, Social needs, Self- Esteem needs and Self- actualization needs.
13. Define Incentives.
An incentive is something which stimulates a person towards some determination. Incentives are a way of
motivation and termed as monetary benefits appraised for best or better performing employees by the
organisation.
14. What is Innovation?
Innovation is termed as generation of NEW ideas for existing products/problems and simpler and modified ways
of doing for an existing method. Innovation is a strategy, that every organization adopts for automation and
control over its process/system. Innovation is a key to successful branding of the company in international market
and be competitive. Innovation helps in up gradation and integration of technologies example: Mobile phones –
Smart phone, where integration of functions is available in a single system.
15. What are Job content factors?
Achievement, advancement, responsibility, Respect, growth and development.
16. Define Expectancy theory.
Force=Valance * Expectancy
17. What is an Equity theory.
Outcomes by a person Outcomes by another person
------------------------------------ = -----------------------------------
Inputs by a person Inputs by another person
18. Define Creativity.
Ability and power to develop new ideas. This is a virtual idealization of a system or concept and later develops
into a workable product.
19. Define Brainstorming. (April 2018)
Brainstorming is a problem solving technique. Improve problem solving by finding new ideas and unusual
solution. A team destined will sit and discuss about a problem and find out different solutions for solving it. A best
optimum solution to a problem can be found when different counterparts sit together and brainstorm on that
problem so that remote issues will be addressed and not missed out.
20. What is the importance of leadership?
Securing co-operation, creating confidence in the minds of employees, providing good working climate.
21. What is effective communication? (Nov 2016)
Effective communication is defined as verbal speech or other methods of relaying information that get a point
across. An example of effective communication is when you talk in clear and simple terms.
22. What is personality? (April 2017)
Personality is usually defined as the set of habitual behaviors, cognitions and emotional patterns that evolve from
biological and environmental factors.
23. What are the advantages of democratic leadership styles? (April 2018)
Solution for Complex Problems
Democratic leaders are typically excellent at solving complex issues. They have the ability to work
collaboratively, using a consensus of opinions to get things done the right way. The democratic leader often
thinks innovatively and encourages others to do the same, so that solutions to complex and strategic problems
can be found.
Good Business Fit
Solutions that are democratically derived generally last for the longest period of time. The democratic process
ensures that the solution is reviewed on a continuous basis. Additionally, engaging team members will enable
leaders to maintain effective processes that fit the business well. Democratic leaders ensure that team
members work well with other individuals, so that they are suitable to function in large corporate
environments in which co-operation and communication are crucial.
Strong Teams are Built by Democratic Leaders
Team members under democratic leadership tend to be supportive and strong. Honesty flourishes and more
collective working is done because the opinions of everyone are taken into consideration. Democratic leaders
are usually popular within the organization.
Foster Creative Environments
Democratic leaders effectively foster creative environments since they encourage the input and innovation of
team members. Creative designers succeed under democratic leadership because of the support and nurture
that is embodied in this leadership approach.
24. What is job satisfaction? (Nov 2017)
Job satisfaction is in regard to one's feelings or state-of-mind regarding the nature of their work. Job satisfaction
can be influenced by a variety of factors, eg, the quality of one's relationship with their supervisor, the quality of
the physical environment in which they work, degree of fulfillment in their work, etc.
PART B - C462.4
1. Write short notes on the managerial grid.
2. What are the steps in communication process?
The first of these is feed forward or steering control. In this type of control, the emphasis is in a future time
frame. With accurate forecasting of what will happen, we can take action before a total operation is complete
to ensure its success. Thus, for example, adjustments were made during the mission to the moon to help land
the astronauts on the moon. Sometimes these controls, which modern developments such as real-
time computers have made possible, are called process controls. The second kind of control has been called
the timed control. With this kind of control, work is stopped at various predetermined times or when certain
events take place and cannot continue without a screening decision to go ahead. Examples of such
controls include spending limits on projects and quality controls at various points in the operation process.
The final type of control is post action control with this type of control, when the operation is completed the
results are reviewed. Although nothing can be done about the cycle that was completed the review serves as a
guide to ways for preventing future mishaps.In practice, every board planning objective, every goal of the
many planning programs, every policy, every activity of these programs and every procedure becomes
standard against which actual or expected performance might be measured. Following are the main critical
standards generally used in practice:
1. Physical standards: These deals with non-monetary measurements and are common at the operating level
which materials are used, labor employed, services rendered and goods produced. They may reflect
qualitative performance, such as man hours per unit of output, funds or fuel per horsepower produced, ton-
miles of freight traffic carried, unit of production per machine hour quantity such as the hardness of bearings,
closeness, rate of climb of an airplane, durability of barbaric or fastness of a color. As Goetz has said these
standards are the ‘building blocks of planning’. Since whether management must choose between alternate
policies, organizational configuration procedure or resources, it must always analyze the rival program in
terms of physical elements determine the financial implications of these elements, integrates or synthesize the
elements into programs and select the best program it can devise. As physical standards, are the building
blocks of planning, they are also fundamental standards for control. [Critical Standards]
2. Cost standards: These deal with the monetary measurement and like physical standards, are common at the
operating level they attach monetary values to the costs of the operation. Illustrative of cost standards are such
widely used measures as direct and indirect cost per unit produced, labour cost per unit produced, labour cost
per unit or per hour, material cost per unit, machine hour costs, costs per plane reservation selling costs per
dollar or unit of sales and costs per foot of well drilled. [ Critical Standards ]
3. Capital standards: These are a variety of cost standards, arising from the application of monetary
measurements to physical items. But they have to do with the capital invested in the firm rather than with the
income statement, perhaps the most widely used standard for new investment. The typical balance sheet will
disclose other capital standards, such as ratios of current assets of a current liability, debt to net worth, fixed
investment to total investment, cash and receivables to payables, notes or bonds to stock and the size and
turnover of inventories. [Critical Standards ]
4. Revenue standards: These arise from attaching monetary values to sales. They may vary from such
standards as revenue per bus passenger mile and dollars per ton of steel shapes sold to cover sale per
customer, rules per capital in a given market area. [ Critical Standards ]
5. Programme standards: A manager may be assigned to install a variable budget programme, a programme
for formally following the development of new products, or a programme for improving the quality of a sales
force, while, some subjective judgement may have to be applied in appraising programme performance,
timing and other factors can be used as objective standards. [ Critical Standards ]
6. Intangible standards: More difficult to set are standards not expressed in either physical or monetary
measurement. What standard can a manager use for determining the competence of the divisional purchasing
agent or Personnel Director, what can be used for determining whether the public relations program is
successful? Are foremen loyal to the company’s objectives? Is the office boy alert? Such questions show how
difficult it is to establish standards for a goal that cannot be given clear quantitative or qualitative
measurement. [Critical standards ]. Many intangible standards exist in business because research into what
constitutes desired performance has not been done above the level of the shop, the district sales office, the
shopping room, or the accounting department. Perhaps a more important reason is that human relationships,
count in performance, as they do above the basic operating levels, it is very hard to measure what is good.
‘Effective’ or ‘Efficient’ Tests, surveys and sampling techniques developed by psychologists and sociometrists
have made it possible to probe human attitudes and drives, but many managerial controls over interpersonal
relationships must continue to be based upon intangible standards considered judgment, trial and error, and
even on occasion sheer hunch.
7. Goals for standards: However, with the present tendency for better-managed enterprise to establish an
entire network of verifiable qualitative or quantitative goals at every level of management, the use of
intangible standards, while still important, is diminishing in complex programme operations as well as in the
performance of managers themselves, modern managers are finding that through research and thinking it is
possible to define goals it is likely to take the form of standards. For example, if the program of district sales
office is spelled out to include such elements as training salesmen in accordance with a plan with specific
characteristics, the very fact of the plan and its characteristics, furnish standards which tend to become
objective and, therefore, ‘Tangible’.
2. Discuss the various budgetary and non - budgetary control techniques? (Nov 2016)
5. What are the steps involved in planning and control. (April 2017)
Production planning is “the administrative process that takes place within a manufacturing business and
that involves making sure that sufficient raw materials, staff and other necessary items are procured and
ready to create finished products according to the schedule specified”, as defined by the Business
Dictionary.
A production plan serves as a guide for your company’s production activities. It establishes and
sequences activities which must be carried out to achieve a production target, so that all staff involved
are aware of who needs to do what, when, where and how.
A production plan will help you meet product demand while minimizing production time and cost by
improving process flow, reducing the waiting time between operations, and optimizing use of plant,
equipment and inventory. In order to do this, you must align your production plan to your business
strategy and business plan, and support production planning by coordinating with other departments,
such as procurement, finance and marketing.
STEP 1. Forecast the demand of your product
Estimate your demand, so that you know how many products you need to produce during a specific time
period. You may have already some confirmed orders for the next couple of month, but on top of that,
you need to predict how many more may come.
Different methods exist to forecast your product demand. A traditional technique to estimate product
demand is based on historical information (e.g. orders placed by your customers in the past). While this
is a very common method, you need to consider external and internal events in your business
environment that could alter past patterns. For example, new market trends, a slowdown in the economy,
or a new marketing campaign that could increase or decrease your product demand compared to what
happened in the past.
STEP 2. Determine potential options for production
Determine the different production options available to meet the forecasted demand of your product. For
example, if you want to produce 100 shirts, you need to use a certain number of machines, human
resources, materials, and time. Different combinations of these inputs can lead to different production
times and costs.
a. Start by mapping all the steps of your production process. When doing so, take into account if
tasks are sequenced or dependent on other tasks, or if they happen simultaneously or independently.
Below is an example of how a simple process-mapping flowchart could look. Each box represents a task
of your production process. The map of the production process will be different and unique to each
company. Think about how to improve process flow by eliminating bottlenecks.
b. Determine the resources needed to complete each task involved in your production process.
Look at how different combination of resources lead to different production times and costs:
Human Resources. Determine the number of staff that will be involved in each phase of the
production process, their availability, and the cost. Make sure their time is well utilized.
Machinery and Equipment. Identify the machines needed and their availability, including any
maintenance or replacement that may be needed.
Materials. Make a list of all the materials needed for production and how you obtain them.
Assess the reliability of your suppliers, including delivery time. Having materials available when needed
is crucial for the production process.
Inventory. It is important that you consider how to optimize your inventory. Keeping a large
inventory is expensive, but keeping a low inventory is risky if demand fluctuates on a regular basis.
Having a good inventory control system in place can help your firm accommodate variations in demand
and mitigate possible problems or delays that may occur during the production process. For more
information about how to manage your inventory, check out the video.
STEP 3. Choose the option for production that uses the combination of resources more effectively
Compare the cost and time of each potential production option and choose the option that uses the most
efficient combination of resources and that allows you to meet product demand. The chosen option
should maximize the operational capacity of your firm.
Always make sure you can cover the costs involved in the production process (purchase of materials,
office rent, payment of staff salary, leasing, etc.)
You need to share your production plan with all the departments and staff that contribute or interact with
the production process, including human resources, procurement, finances, marketing, etc. If everybody
knows what to do, and what materials and equipment should be used for each task of the production
process, operations will be smoother.
STEP 4. Monitor and control
You want to ensure that your plan is working in the way it is intended. Monitoring and controlling is
about comparing what is happening with what should be happening. Having a control system in place
helps you detect problems as soon as they occur, allowing you more time to correct before it is too late.
STEP 5. Adjust
Be prepared to adjust the plan if needed. The production plan needs to be flexible to accommodate
changes in customers’ demand (e.g. an important order that gets cancelled). Also, you need to take into
account possible risks that may arise during the production process (e.g. a machine breaks, a worker gets
sick or a supplier does not deliver on time) and have a risk mitigation plan.
6. What are the steps involved in standard purchasing procedure.
Purchase control is an element of material control. Material procurement is known as the purchase
function. The functional responsibility of purchasing is that of the purchase manager or the purchaser.
Purchasing is an important function of materials management because in purchase of materials, a
substantial portion of the company's finance is committed which affects cash flow position of the
company. Success of a business is to a large extent influenced by the efficiency of its purchase
organization. The advantages derived from a good and adequate system of the purchase control are as
follows:
a) Continuous availability of materials: It ensures the continuous flow of materials. so production
work may not be held up for want of materials. A manufacturer can complete schedule of production in
time.
b) Purchasing of right quantity: Purchase of right quantity of materials avoids locking up of working
capital. It minimizes risk of surplus and obsolete stores. It means there should not be possibility of
overstocking and understocking.
c) Purchasing of right quality: Purchase of materials of proper quality and specification avoids waste
of materials and loss in production. Effective purchase control prevents wastes and losses of materials
right from the purchase till their consumptions. It enables the management to reduce cost of production.
d) Economy in purchasing: The purchasing of materials is a highly specialized function. By
purchasing materials at reasonable prices, the efficient purchaser is able to make a valuable contribution
to the success of a business.
e) Works as information centre: It serves as a function centre on the materials knowledge relating to
prices, sources of supply, specifications, mode of delivery, etc. By providing continuous information to
the management it is possible to prepare planning for production.
f) Development of business relationship: Purchasing of materials from the best market and from
reliable suppliers develops business relationships. The result is that there may be smooth supply of
materials in time and so it avoid disputes and financial losses.
g) Finding of alternative source of supply: If a particular supplier fails to supply the materials in time,
it is possible to develop alternate sources of supply. the effect of this is that the production work is not
disturbed.
h) Fixing responsibilities: Effective purchase control fix the responsibilities of operating units and
individuals connected with the purchase, storage and handling of materials.
In short, the basic objective of the effective purchase control is to ensure continuity of supply of requisite
quantity of material, to avoid held up of production and loss in production and at the same time reduces
the ultimate cost of the finished products.
7. Explain the various methods of purchasing.
Some of the methods of purchasing are discussed as follows:
1. Purchasing by Requirement:
This method refers to those goods which are purchased only when needed and in required quantity. The
goods which are not regularly required are purchased in this way. On the other hand it refers to the
purchase of emergency goods. These goods are not kept in store. Purchasing department must be in
knowledge of the suppliers of such goods so that these are purchased without loss of time.
2. Market Purchasing:
Market purchasing refers to buying goods for taking advantages of favourable market situations.
Purchases are not made to meet immediate needs but are acquired as per the future requirements. This
method will be useful if future needs are estimated accurately and purchases are made whenever
favourable market situations arise. The market situation is constantly studied for forecasting price trends.
ADVERTISEMENTS:
The advantages of this method are: lower purchase prices, more margin on finished products due to
lower material cost and saving in purchase expenses. This method suffers from some limitations: losses
in case of wrong judgment, fear of obsolescence, higher storing expenses due to more purchases.
3. Speculative Purchasing:
Speculative purchasing refers to purchases at lower prices with a view to sell them at higher prices in
future. The attention in this method is to earn profits out of price rises later on. The purchases are not
made as per the production needs of the plant rather these are far in excess of such requirements. A cloth
mill may purchase cotton in the market when prices are low with the attention of earning profits out of its
sales when prices go up.
Speculative purchasing should not be confused with market purchasing. The former is done to earn
profits out of future price rises where as the latter is concerned with purchasing for own needs when
favourable market situations exist. Though speculative purchasing may result in profits but there are
chances of prices going down in future, fear of obsolescence and incurring higher storage costs.
4. Purchasing for Specific Future Period:
This method is used for the purchase of those goods which are regularly required. These goods areneeded
in small quantity and chances of price fluctuations are negligible. The needs for specific period are
assessed and purchases made accordingly. The requirements for such purchases may be assessed on the
basis of past experience, period for which supplies are needed, carrying cost of inventory etc.
5. Contract Purchasing:
ADVERTISEMENTS:
In the words of Spriegel it is “the purchasing under contract, usually formal, of needed materials,
delivery of which is frequently spread over a period of time.” Under this method a specific quantity of
materials is contracted to be purchased and delivery is taken in future. Even though the goods are
procured in future but the price and other terms and conditions are fixed at the time of contract. This
method may be useful when price rises in future may be expected and material requirements for future
may be accurately estimated.
6. Scheduled Purchasing:
Under this method the suppliers are supplied a probable time schedule for material requirements so that
they are in a position to arrange these in time. An accurate production schedule is prepared for estimating
future material needs. The suppliers are informed of probable needs and orders are sent accordingly. The
schedule provided by the purchaser to the vendor is not a contract. This is only a gentleman’s agreement
for terms and conditions of purchases. The main objectives of this method are: minimum inventory,
prompt service. low prices, quality goods etc.
7. Group Purchasing of Small Items:
Sometimes a number of small items are required to be purchased. The prices of these items are so small
that costs of placing orders may be more than prices. In such situations the buyer places order with a
vendor for all these items. The purchase price is agreed to be by adding some percentage of profit in the
dealer’s cost. This method will be used only when dealer’s records are open to inspection for determining
his cost. This type of purchasing reduces the cost of the buyer by eliminating much clerical work.
8. Co-operative Purchasing:
Small industrial units may join to pool their requirements and then place bulk orders with dealers. This
will help them in availing rebates on large quantity purchases, cash discounts and savings in
transportation costs. After receiving the materials these are divided among the member units. Co-
operative purchasing helps small units in availing the benefits of bulk purchasing.
8. What are the steps in quality control?
Quality control refers to the technical process that gathers, examines, analyze & report the
progress of the project & conformance with the performance requirements
The steps involved in quality control process are
1) Determine what parameter is to be controlled.
2) Establish its criticality and whether you need to control before, during or after results are
produced.
3) Establish a specification for the parameter to be controlled which provides limits of
acceptability and units of measure.
4) Produce plans for control which specify the means by which the characteristics will be
achieved and variation detected and removed.
5) Organize resources to implement the plans for quality control.
6) Install a sensor at an appropriate point in the process to sense variance from specification.
7) Collect and transmit data to a place for analysis.
8) Verify the results and diagnose the cause of variance.
9) Propose remedies and decide on the action needed to restore the status quo.
10) Take the agreed action and check that the variance has been corrected.
Advantages and disadvantages
Advantages include better products and services ultimately establishing a good reputation for
a company and higher revenue from having more satisfied customers.
Disadvantages include needing more man power/operations to maintain quality control and
adding more time to the initial process.
9. Explain the following:
(i) Purchase control
Purchase control is an element of material control. Material procurement is known as the purchase
function. The functional responsibility of purchasing is that of the purchase manager or the purchaser.
Purchasing is an important function of materials management because in purchase of materials, a
substantial portion of the company's finance is committed which affects cash flow position of the
company. Success of a business is to a large extent influenced by the efficiency of its purchase
organization. The advantages derived from a good and adequate system of the purchase control are as
follows:
i) Continuous availability of materials: It ensures the continuous flow of materials. so production
work may not be held up for want of materials. A manufacturer can complete schedule of production in
time.
j) Purchasing of right quantity: Purchase of right quantity of materials avoids locking up of working
capital. It minimizes risk of surplus and obsolete stores. It means there should not be possibility of
overstocking and understocking.
k) Purchasing of right quality: Purchase of materials of proper quality and specification avoids waste
of materials and loss in production. Effective purchase control prevents wastes and losses of materials
right from the purchase till their consumptions. It enables the management to reduce cost of production.
l) Economy in purchasing: The purchasing of materials is a highly specialized function. By
purchasing materials at reasonable prices, the efficient purchaser is able to make a valuable contribution
to the success of a business.
m) Works as information centre: It serves as a function centre on the materials knowledge relating to
prices, sources of supply, specifications, mode of delivery, etc. By providing continuous information to
the management it is possible to prepare planning for production.
n) Development of business relationship: Purchasing of materials from the best market and from
reliable suppliers develops business relationships. The result is that there may be smooth supply of
materials in time and so it avoid disputes and financial losses.
o) Finding of alternative source of supply: If a particular supplier fails to supply the materials in time,
it is possible to develop alternate sources of supply. the effect of this is that the production work is not
disturbed.
p) Fixing responsibilities: Effective purchase control fix the responsibilities of operating units and
individuals connected with the purchase, storage and handling of materials.
In short, the basic objective of the effective purchase control is to ensure continuity of supply of
requisite quantity of material, to avoid held up of production and loss in production and at the same
time reduces the ultimate cost of the finished products
(ii) Maintenance Control
Maintenance department has to excercise effective cost control, to carry out the maintenance functions
in a pre-specified budget, which is possible only through the following measures:
First line supervisors must be apprised of the cost information of the various materials so that the
objective of the management can be met without extra expenditure on maintenance functions
A monthly review of the budget provisions and expenditures actually incurred in respect of each
center/shop will provide guidlines to the departmental head to exercise better cost control.
The total expenditure to be incurred can be uniformly spread over the year for better budgetary control.
however, the same may not be true in all cases particularly where overhauling of equipment has to be
carried out due to unforseen breakdowns. some budgetary provisions must be set aside, to meet out
unforeseen exigencies.
The controllable elements of cost such as manpower cost and material cost can be discussed with the
concerned personnel, which may help in reducing the total cost of maintenance. Emphasis should be
given to reduce the overhead expenditures, as other expenditures cannot be compromised.
It is observed through studies that the manpower cost is normally fixed, but the same way increase due
to overtime cost. however, the material cost, which is the prime factor in maintenance cost, can be
reduced by timely inspections designed, to detect failures. If the
inspection is carried out as per schedule, the total failure of parts may be avoided, which otherwise
would increase the maintenance cost. the proper handling of the equipment by the operators also
reduces the frequency of repair and material requirements. Operators, who check their equipment
regularly and use it within the operating limits, can help avoid many unwanted repairs. In the same way
a good record of equipment failures/ maintenance would indicate the nature of failures, which can then
be corrected even permanently.
(iii) Quality Control.
Quality control refers to the technical process that gathers, examines, analyze & report the
progress of the project & conformance with the performance requirements
The steps involved in quality control process are
1) Determine what parameter is to be controlled.
2) Establish its criticality and whether you need to control before, during or after results are
produced.
3) Establish a specification for the parameter to be controlled which provides limits of acceptability
and units of measure.
4) Produce plans for control which specify the means by which the characteristics will be achieved
and variation detected and removed.
5) Organize resources to implement the plans for quality control.
6) Install a sensor at an appropriate point in the process to sense variance from specification.
7) Collect and transmit data to a place for analysis.
8) Verify the results and diagnose the cause of variance.
9) Propose remedies and decide on the action needed to restore the status quo.
10) Take the agreed action and check that the variance has been corrected.
Advantages and disadvantages
Advantages include better products and services ultimately establishing a good reputation for a
company and higher revenue from having more satisfied customers.
Disadvantages include needing more man power/operations to maintain quality control and
adding more time to the initial process.
10. What is productivity? Explain the methods of improving productivity in IT industry.(May 2016)
Productivity refers to the ratio between the output from production processes to its input.
Productivity may be conceived of as a measure of the technical or engineering efficiency of production.
As such quantitative measures of input, and sometimes output, are emphasized.
Typical Productivity Calculations
Measures of size and resources may be combined in many different ways. The three common
approaches to defining productivity based on the model of Figure 2 are referred to as physical,
functional, and economic productivity. Regardless of the approach selected, adjustments may be needed
for the factors of diseconomy of scale, reuse, requirements churn, and quality at delivery.
a) Physical Productivity
This is a ratio of the amount of product to the resources consumed (usually effort). Product may be
measured in lines of code, classes, screens, or any other unit of product. Typically, effort is measured in
terms of staff hours, days, or months. The physical size also may be used to estimate software
performance factors (e.g., memory utilization as a function of lines of code).
b) Functional Productivity
This is a ratio of the amount of the functionality delivered to the resources consumed (usually
effort). Functionality may be measured in terms of use cases, requirements, features, or function points
(as appropriate to the nature of the software and the development method). Typically, effort is measured
in terms of staff hours, days, or months. Traditional measures of Function Points work best with
information processing systems. The effort involved in embedded and scientific software is likely to be
underestimated with these measures, although several variations of Function Points have been
developed that attempt to deal with this issue.
c) Economic Productivity
This is a ratio of the value of the product produced to the cost of the resources used to produce
it. Economic productivity helps to evaluate the economic efficiency of an organization. Economic
productivity usually is not used to predict project cost because the outcome can be affected by many
factors outside the control of the project, such as sales volume, inflation, interest rates, and substitutions
in resources or materials, as well as all the other factors that affect physical and functional measures of
productivity. However, understanding economic productivity is essential to making good decisions
about outsourcing and subcontracting. The basic calculation of economic productivity is as follows:
Economic Productivity = Value/Cost
PROBLEMS IN MEASUREMENT OF PRODUCTIVITY OF KNOWLEDGE WORKERS
Productivity implies measurement, which in turn, is an essential step in the control process.
Although there is a general agreement about the need for improving productivity, there is a little
consensus about the fundamental causes of the problem and what to do about them. The blame has been
assigned to various factors. Some people place it on the greater proportion of less skilled workers with
respect to the total labor force, but others disagree. There are those who see cutback in research and the
emphasis on immediate results as the main culprit. Another reason given for the productivity dilemma
is the growing affluence of people, which makes them less ambitious. Still others cite the breakdown in
family structure, the workers’ attitudes, and government policies and regulations. Another problem is
that the measurement of skills work is relatively easy, but it becomes more difficult for knowledge
work. The difference between the two kinds is the relative use of knowledge and skills.
11. List out the need and characteristics of MIS. (May 2016)
System approach:MIS follows the system approach, which implies a step by step approach to the study
of system and its performance in the light of the objective for which it has been constituted. It means
taking an inclusive view at sub-systems to operate within an organization.
Management-oriented:
The management-oriented characteristic of MIS implies that top-down approach needs to be followed for
designing MIS. A top-down method says the initiation of system development determines management
requirements as well as business goals. MIS implies the management dynamically to the system
development towards the completion of management decision.
As per requirements:The design and development of MIS should be as per the information required by
the managers. The required design and development information is at different levels, viz., strategic
planning, management control and operational control. It means MIS should cater to the specific needs of
managers in the hierarchy of an organization.
Future-oriented:
The design and development of MIS should also be future purpose so that the system is not restricted to
provide only the past information.
Integrated:
A complete MIS is a combination of its multiple sub-components to provide the relevant information to
take out a useful decision. An integrated system, which blends information from several operational
areas, is a necessary characteristic of MIS.
Common data flows:This concept supports numerous basic views of system analysis such as avoiding
duplication, combining similar functions and simplifying operations. The expansion of common data
flow is a cost-effectively and logical concept.
Long-term planning:MIS should always develop as a long term planning because it involves logical
planning to get success of an organization. While developing MIS, the analyst should keep future
oriented analysis and needs of the company in mind.
Relevant connection of sub-system planning:The MIS development should be decomposing into its
related sub-systems. These sub-systems must be meaningful with proper planning.
Central database:it contains data in tabular form. The data base is responsible to operations like
insertion, deletion, updation of records. This database covers information related to inventory, personnel,
vendors, customers, etc. the data stored in the database.
12. Write short notes on : (May 2016)
(i) Control of productivity and management,
Mangers have various means of controlling productivity and monitoring the individuals under their
direction. Some controls are sophisticated and involve process improvement techniques, while others are
standard activities seen in all types of organizations. Management must promote productivity in order for
businesses to remain competitive in the marketplace, which is accomplished through a systematic
approach to quality and employee performance.
Quality Management Systems
One method for enhancing productivity involves implementing a quality management system. This allows
management to monitor and control the quality of the products and services produced by a company. A
process excellence leadership team is a common component of a quality management system, which
involves senior leaders meeting together on a regular basis to discuss organizational efficiency. A well-
constructed and properly functioning system keeps waste and defects at a low level and enhances
productivity.
Balanced Scorecards
A balanced scorecard measures the operational and strategic performance of an organization through
financial and non-financial metrics. If productivity is slipping, business leaders can evaluate the different
categories on a balanced scorecard to find the reasons why operations are suffering and make adjustments
accordingly. Financial, internal business process, customer service and training categories are among the
issues tracked on a typical balanced scorecard. This tool allows management to monitor productivity
using analytical measures.
Employee Interviews
Selecting the right people to bring into an organization directly impacts productivity. Effective selection
processes typically consist of multiple rounds of interviews with different managers. Although the exact
process differs based on the size of the organization, selection should be structured in a manner that
screens out incompatible candidates. Managers must take interviews seriously and prepare in advance.
Asking the right questions also is critical. If leaders decide to hire their friends or acquaintances instead of
the most qualified candidates, operations suffer as a result.
Employee Reviews
Standardized employee reviews allow managers to rate their teams and provide feedback on an individual
basis. If certain employees are struggling to meet their numbers or job requirements, it is up to leaders to
coach them and give them direction. Not all organizations use employee reviews, citing a minimal return
on investment. However, managers who do perform reviews have the opportunity to impact employee
behavior and ultimately influence productivity. Managers need to hone their communication skills in order
for performance reviews to have meaning.
ii) Direct and preventive control.
13. Explain the uses of computers and IT in management control? (April 2017, Nov 2016, Nov 2017)
In virtually every business, a computer is an essential tool for running the day-to-day operations,
enhancing productivity and communicating with customers, suppliers and the public. Managers use
computers for a variety of reasons, including keeping their teams on track, budgeting and planning
projects, monitoring inventory and preparing documents, proposals and presentations. Managers need
to understand not only the basic functions of the corporate software tools used in the office but also
the Internet and other external computing tools that can improve the way they manage their
departments.
Business Planning
Business planning can take up a lot of a manager's time, but computer programs make it easier. From
using email programs like Outlook or Google Mail to set appointments, tasks and deadlines to using
financial tools to develop budgets and project proposals, using computers to plan the day-to-day
activities of a business is essential. Managers also use the Internet to research their industries, the
competition and to look for ideas to help them create plans to engage customers, win more business
and succeed in the competitive world of business.
Record Keeping
Managers keep track of a lot of information that is vital to the company's success. From customer
records to financial records to employee records, the data a company has to store are seemingly
endless. Using computers to store and manage documents, files and records reduces the amount of
physical storage a company needs and also allows managers to have easy access to their files using
simple document search methods. Additionally, by keeping records, managers can easily share
information about an employee's history and job performance with other managers in the company.
14. Explain the Various control techniques? (Nov 2017)
Direct Supervision and Observation
'Direct Supervision and Observation' is the oldest technique of controlling. The supervisor himself
observes the employees and their work. This brings him in direct contact with the workers. So, many
problems are solved during supervision. The supervisor gets first hand information, and he has better
understanding with the workers. This technique is most suitable for a small-sized business.
Financial Statements
All business organisations prepare Profit and Loss Account. It gives a summary of the income and
expenses for a specified period. They also prepare Balance Sheet, which shows the financial position of
the organisation at the end of the specified period. Financial statements are used to control the
organisation. The figures of the current year can be compared with the previous year's figures. They can
also be compared with the figures of other similar organisations.
Ratio analysis can be used to find out and analyse the financial statements. Ratio analysis helps to
understand the profitability, liquidity and solvency position of the business.
3. Budgetary Control
A budget is a planning and controlling device. Budgetary control is a technique of managerial control
through budgets. It is the essence of financial control. Budgetary control is done for all aspects of a
business such as income, expenditure, production, capital and revenue. Budgetary control is done by the
budget committee.
4. Break Even Analysis
Break Even Analysis or Break Even Point is the point of no profit, no loss. For e.g. When an
organisation sells 50K cars it will break even. It means that, any sale below this point will cause losses
and any sale above this point will earn profits. The Break-even analysis acts as a control device. It helps
to find out the company's performance. So the company can take collective action to improve its
performance in the future. Break-even analysis is a simple control tool.
5. Return on Investment (ROI)
Investment consists of fixed assets and working capital used in business. Profit on the investment is a
reward for risk taking. If the ROI is high then the financial performance of a business is good and vice-
versa.
ROI is a tool to improve financial performance. It helps the business to compare its present
performance with that of previous years' performance. It helps to conduct inter-firm comparisons. It also
shows the areas where corrective actions are needed.
6. Management by Objectives (MBO)
MBO facilitates planning and control. It must fulfill following requirements :-
1. Objectives for individuals are jointly fixed by the superior and the subordinate.
2. Periodic evaluation and regular feedback to evaluate individual performance.
3. Achievement of objectives brings rewards to individuals.
7. Management Audit
Management Audit is an evaluation of the management as a whole. It critically examines the full
management process, i.e. planning, organising, directing, and controlling. It finds out the efficiency of
the management. To check the efficiency of the management, the company's plans, objectives, policies,
procedures, personnel relations and systems of control are examined very carefully. Management
auditing is conducted by a team of experts. They collect data from past records, members of
management, clients and employees. The data is analysed and conclusions are drawn about managerial
performance and efficiency.
8. Management Information System (MIS)
In order to control the organisation properly the management needs accurate information. They need
information about the internal working of the organisation and also about the external environment.
Information is collected continuously to identify problems and find out solutions. MIS collects data,
processes it and provides it to the managers. MIS may be manual or computerised. With MIS, managers
can delegate authority to subordinates without losing control.
9. PERT and CPM Techniques
Programme Evaluation and Review Technique (PERT) and Critical Path Method (CPM) techniques
were developed in USA in the late 50's. Any programme consists of various activities and sub-activities.
Successful completion of any activity depends upon doing the work in a given sequence and in a given
time
Importance is given to identifying the critical activities. Critical activities are those which have to be
completed on time otherwise the full project will be delayed.
So, in these techniques, the job is divided into various activities / sub-activities. From these activities,
the critical activities are identified. More importance is given to completion of these critical activities.
So, by controlling the time of the critical activities, the total time and cost of the job are minimised.
10. Self-Control
Self-Control means self-directed control. A person is given freedom to set his own targets, evaluate his
own performance and take corrective measures as and when required. Self-control is especially required
for top level managers because they do not like external control.
The subordinates must be encouraged to use self-control because it is not good for the superior to
control each and everything. However, self-control does not mean no control by the superiors. The
superiors must control the important activities of the subordinates.
15. Illustrate and explain the three steps in the control process. (April 2018)\
There are three basic steps in a control process:
Establishing standards.
Measuring and comparing actual results against standards.
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 them selves will be able to check their performance.
b. Standards should be accurate, precise, acceptable and workable.
c. Standards are used as the criteria or bench marks 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 hemay 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.
16. Discuss the various types of tools used to monitor and measure organizational performance. (April
2018)
Accurate measurement of organizational performance allows managers to correct deficiencies, leading to
cost-savings and higher customer satisfaction. But without the right tools, it's hard to adjust operations and
lead personnel in the right direction. Several specific quality tools measure organizational performance
and provide meaningful feedback to leadership.
Control Charts
Control charts are graphs that track the performance of a process over a period of time. Elements of
control charts include a central line for the average process performance, an upper control limit and a
lower control limit with data points plotted in time order. By comparing current and historical data,
managers are able to determine if a process is in control or whether variation in process outputs is normal.
Control charts give management a scientific way of measuring performance.
Pareto Diagrams
Pareto Diagrams are bar charts that plot the frequency of defects or costs, with the largest bars placed to
the left. In this way, managers can see the areas of greatest concern quickly, assessing the areas of
operations that need adjustment based on the most important defects or costs. Once these issues are
corrected, smaller defects often are eliminated. Managers save time and resources by focusing on the
problem areas that have the largest impact on operations.
Cause-and-Effect Diagrams
Cause-and-effect diagrams, also known as fishbone diagrams, identify the possible causes for defects
within a process or system. A problem statement is examined by discussing the potential for defects in
methods, machines, people, materials, measurement and environment. Employees more easily can
visualize processes and systems that are mapped out in this fashion. These diagrams and discussions are
effective ways to identify deficiencies and talk about solutions.
Process Mapping
Process mapping graphically depicts the different steps and decision points within a process. This tool can
be used by managers or employees to assess and standardize work tasks. It also allows subject matter
experts to communicate with managers about specific processes. Process maps are sometimes easier to
interpret than lengthy written procedures and can serve as benchmarks to measure performance against.
This quality tool and others make it easier to gauge operations in an objective manner.
17. Case study: Modern manufacturing company has been using a budgetary control system for the last 3 years.
When asked to explain the system, Mr.John, Managing Director of the company, observed: “We’re pretty flexible
in our budgetary system. Every manager is given a total amount that he or she can spent for the next year. We
don’t care how it is used as long as the total is not exceeded and organizational objectives are achieved.”
i) Discuss the merits and demerits of the company’s approach to budgeting.
ii) Do you agree or disagree with this approach? Explain your view. (Nov 2017)