Bilet 1 1) Evolution of Management Thought

Bilet 1
1) Evolution of management thought

In the traditional world of work, management’s job was to control and limit
people, enforce rules and regulations, seek stability and efficiency, design a top-
down hierarchy, and achieve bottom-line results. To spur innovation and achieve
high performance, however, managers need different skills, particularly in today’s
tough economy, which has caused suffering for many employees. Managers have
to find ways to engage workers’ hearts and minds, as well as take advantage of
their labor. The new workplace asks that managers focus on building trust,
inspiring commitment, leading change, harnessing people’s creativity and
enthusiasm, finding shared visions and values, and sharing information and
power. Teamwork, collaboration, participation, and learning are guiding principles
that help managers and employees maneuver the difficult terrain of today’s
turbulent business environment.
Rather than controlling their employees, managers focus on training them to
adapt to new technologies and extraordinary environmental shifts, and thus
achieve high performance and total corporate effectiveness.
Organization is a group of people intentionally organized to accomplish an overall,

common goal or a set of goals. It is management that regulates man's productive
activities through coordinated use of material resources. Without the leadership
provided by management, the resources of production remain resources and
never become production. Management is the specific organ of all kinds of
organizations since they all need to utilize their limited resources most efficiently
and effectively for the achievement of their goals
All organizations exist for certain purposes or goals, and managers are responsible
for combining and using organizational resources to ensure that their
organizations achieve their purposes. Management moves an organization
toward its purposes or goals by assigning activities organization members
perform. Management strives to encourage individual activity that will lead to
reaching organizational goals and to discourage individual activity that will hinder
the accomplishment of those goals. Because the process of management
emphasizes the achievement of goals, managers must keep organizational goals
in mind at all times.
Management is the process of reaching organizational goals by working with and
through people and other organizational resources.
2) Definition and importance of Communication
To lead others, you must demonstrate effective communication skills. Otherwise,
a manager will lack the credibility to implement his employer's objectives, and
struggle to rally worker teams behind them. Managers who communicate well are
also more likely to become good problem solvers, which is an essential skill to
function well in an international workplace where diversity is increasingly the
norm. Employees who show an aptitude for verbal and written communication
are more likely to advance up the corporate ladder, as well. Effective
communication between managers and employees is requisite for a well-
functioning workplace.
The importance of communication in an organization can be summarized as
follows:
1) Communication promotes motivation by informing and clarifying the
employees about the task to be done, the manner they are performing the task,
and how to improve their performance if it is not up to the mark.
2) Communication is a source of information to the organizational members
for decision-making process as it helps identifying and assessing alternative
course of actions.
3) Communication also plays a crucial role in altering individual’s attitudes,
i.e., a well-informed individual will have better attitude than a less-informed
individual. Organizational magazines, journals, meetings and various other forms
of oral and written communication help in molding employee’s attitudes.
4) Communication also helps in socializing. In today’s life the only presence of
another individual fosters communication. It is also said that one cannot survive
without communication.
5) As discussed earlier, communication also assists in controlling process. It
helps controlling organizational member’s behavior in various ways. There are
various levels of hierarchy and certain principles and guidelines that employees
must follow in an organization. They must comply with organizational policies,
perform their job role efficiently and communicate any work problem and
grievance to their superiors. Thus, communication helps in controlling function of
management.
3) Describe the main management skills
A manager with the necessary management skills will probably perform well and
be relatively successful. There are three types of skills are important for successful
management performance: technical, human, and conceptual skills.
Technical skills involve the ability to apply specialized knowledge and expertise to
work related techniques and procedures. Examples of these skills are engineering,
computer programming, and accounting. Technical skills are mostly related to
working with “things”—processes or physical objects.
Human skills build cooperation within the team being led. They involve working
with attitudes and communication, individual and group interests—in short,
working with people.
Conceptual skills involve the ability to see the organization as a whole. A
manager with conceptual skills is able to understand how various functions of the
organization complement one another, how the organization relates to its
environment, and how changes in one part of the organization affect the rest of
the organization. As one moves from lower-level management to upper-level
management, conceptual skills become more important and technical skills less
important.
4)Give a description of the organization and the role of managers in the
organization.
Organization is a group of people intentionally organized to accomplish an overall,
common goal or a set of goals. It is management that regulates man's productive
activities through coordinated use of material resources. Without the leadership
provided by management, the resources of production remain resources and
never become production. Management is the specific organ of all kinds of
organizations since they all need to utilize their limited resources most efficiently
and effectively for the achievement of their goals
5) Fayol's 14 Principles of Management
Principles of management are crucial in administering an organization. One of the
earliest scientists of management Henri Fayol has laid down 14 principles of
management. These 14 principles incorporate within them the rules and
guidelines with which a management should ideally function. 14 principles:
Division of Work, Authority and Responsibility, Discipline, Unity of Command,
Unity of Direction, Subordination of Individual Interest, Remuneration, The
Degree of Centralization, Scalar Chain, Order, equity, Stability of Tenure of
Personnel etc.
1. Division of Work
In practice, employees are specialized in different areas and they have different
skills. Different levels of expertise can be distinguished within the knowledge
areas (from generalist to specialist). Personal and professional developments
support this. According to Henri Fayol specialization promotes efficiency of the
workforce and increases productivity. In addition, the specialization of the
workforce increases their accuracy and speed.
2. Authority and Responsibility
In order to get things done in an organization, management has the authority to
give orders to the employees. Of course with this authority comes responsibility.
According to Henri Fayol, the accompanying power or authority gives the
management the right to give orders to the subordinates. The responsibility can
be traced back from performance and it is therefore necessary to make
agreements about this. In other words, authority and responsibility go together
and they are two sides of the same coin.
3. Discipline
This third principle of the 14 principles of management is about obedience. It is
often a part of the core values of a mission and vision in the form of good conduct
and respectful interactions. This management principle is essential and is seen as
the oil to make the engine of an organization run smoothly.
4. Unity of Command
The management principle ‘Unity of command’ means that an individual
employee should receive orders from one manager and that the employee is
answerable to that manager. If tasks and related responsibilities are given to the
employee by more than one manager, this may lead to confusion which may lead
to possible conflicts for employees. By using this principle, the responsibility for
mistakes can be established more easily.
5. Unity of Direction
This management principle of the 14 principles of management is all about focus
and unity. All employees deliver the same activities that can be linked to the same
objectives. All activities must be carried out by one group that forms a team.
These activities must be described in a plan of action. The manager is ultimately
responsible for this plan and he monitors the progress of the defined and planned
activities. Focus areas are the efforts made by the employees and coordination.
6. Subordination of Individual Interest
There are always all kinds of interests in an organization. In order to have an
organization function well, Henri Fayol indicated that personal interests are
subordinate to the interests of the organization (ethics). The primary focus is on
the organizational objectives and not on those of the individual. This applies to all
levels of the entire organization, including the managers.
7. Remuneration
Motivation and productivity are close to one another as far as the smooth running
of an organization is concerned. This management principle of the 14 principles of
management argues that the remuneration should be sufficient to keep
employees motivated and productive. There are two types of remuneration
namely nonmonetary (a compliment, more responsibilities, credits) and monetary
(compensation, bonus or other financial compensation). Ultimately, it is about
rewarding the efforts that have been made.
8. The Degree of Centralization
Management and authority for decision-making process must be properly
balanced in an organization. This depends on the volume and size of an
organization including its hierarchy.
Centralization implies the concentration of decision making authority at the top
management (executive board). Sharing of authorities for the decision-making
process with lower levels (middle and lower management), is referred to as
decentralization by Henri Fayol. Henri Fayol indicated that an organization should
strive for a good balance in this.
9. Scalar Chain
Hierarchy presents itself in any given organization. This varies from senior
management (executive board) to the lowest levels in the organization. Henri
Fayol’s “hierarchy” management principle states that there should be a clear line
in the area of authority (from top to bottom and all managers at all levels). This
can be seen as a type of management structure. Each employee can contact a
manager or a superior in an emergency situation without challenging the
hierarchy. Especially, when it concerns reports about calamities to the immediate
managers/superiors.
10. Order
According to this principle of the 14 principles of management, employees in an
organization must have the right resources at their disposal so that they can
function properly in an organization. In addition to social order (responsibility of
the managers) the work environment must be safe, clean and tidy.
11. Equity
The management principle of equity often occurs in the core values of an
organization. According to Henri Fayol, employees must be treated kindly and
equally. Employees must be in the right place in the organization to do things
right. Managers should supervise and monitor this process and they should treat
employees fairly and impartially.
12. Stability of Tenure of Personnel
This management principle of the 14 principles of management represents
deployment and managing of personnel and this should be in balance with the
service that is provided from the organization. Management strives to minimize
employee turnover and to have the right staff in the right place. Focus areas such
as frequent change of position and sufficient development must be managed well.
13. Initiative
Henri Fayol argued that with this management principle employees should be
allowed to express new ideas. This encourages interest and involvement and
creates added value for the company. Employee initiatives are a source of
strength for the organization according to Henri Fayol. This encourages the
employees to be involved and interested.
14. Esprit de Corps
The management principle ‘esprit de corps’ of the 14 principles of management
stands for striving for the involvement and unity of the employees. Managers are
responsible for the development of morale in the workplace; individually and in
the area of communication. Esprit de corps contributes to the development of the
culture and creates an atmosphere of mutual trust and understanding.
Bilet 2
1)Monetary and non-monetary motivation
Incentive is an act or promise for greater action. It is also called as a stimulus to
greater action. Therefore, management has to offer the following two categories
of incentives to motivate employees:
Monetary incentives- Those incentives which satisfy the subordinates by
providing them rewards in terms of rupees. Money has been recognized as a chief
source of satisfying the needs of people. Money is also helpful to satisfy the social
needs by possessing various material items. Therefore, money not only satisfies
psychological needs but also the security and social needs. Therefore, in many
factories, various wage plans and bonus schemes are introduced to motivate and
stimulate the people to work.
Non-monetary incentives- Besides the monetary incentives, there are certain
nonfinancial incentives which can satisfy the ego and self- actualization needs of
employees. The incentives which cannot be measured in terms of money are
under the category of “Non- monetary incentives”. Whenever a manager has to
satisfy the psychological needs of the subordinates, he makes use of non-financial
incentives. Non- financial incentives can be of the following types:-
• Security of service- Job security is an incentive which provides great
motivation to employees. If his job is secured, he will put maximum efforts to
achieve the objectives of the enterprise. This also helps since he is very far off
from mental tension and he can give his best to the enterprise.
• Praise or recognition- The praise or recognition is another nonfinancial
incentive which satisfies the ego needs of the employees. Sometimes praise
becomes more effective than any other incentive. The employees will respond
more to praise and try to give the best of their abilities to a concern.
• Suggestion scheme- The organization should look forward to taking
suggestions and inviting suggestion schemes from the subordinates. This
inculcates a spirit of participation in the employees. This can be done by
publishing various articles written by employees to improve the work
environment which can be published in various magazines of the company. This
also is helpful to motivate the employees to feel important and they can also be
in search for innovative methods which can be applied for better work methods.
This ultimately helps in growing a concern and adapting new methods of
operations.
• Job enrichment- Job enrichment is another nonmonetary incentive in
which the job of a worker can be enriched. This can be done by increasing his
responsibilities, giving him an important designation, increasing the content and
nature of the work. This way efficient worker can get challenging jobs in which
they can prove their worth. This also helps in the greatest motivation of the
efficient employees.
• Promotion opportunities- Promotion is an effective tool to increase the
spirit to work in a concern. If the employees are provided opportunities for the
advancement and growth, they feel satisfied and contented and they become
more committed to the organization.
2)Goals and objectives of management
Goals and objectives are a critical component of management, both in terms of
planning and in terms of the larger planning-organizing-leading-controlling (P-O-L-
C) framework. You can see their role summarized in the P-O-L-C figure.
Unfortunately, because their role and importance seem obvious, they also tend to
be neglected in managerial practice or poorly aligned with the organization’s
strategy. You can imagine why this might be problematic, particularly since one of
a manager’s functions is to evaluate employee performance—it would be nice if
employees could be evaluated based on how their achievement of individual
goals and objectives contributes to those critical to the organization’s survival and
success.
3) Definitions and Importance of Leadership

Leadership is a process by which an executive can direct, guide and influence the
behavior and work of others towards accomplishment of specific goals in a given
situation. Leadership is the ability of a manager to induce the subordinates to
work with confidence and zeal. Leadership is the potential to influence behavior
of others. It is also defined as the capacity to influence a group towards the
realization of a goal. Leaders are required to develop future visions, and to
motivate the organizational members to want to achieve the visions. According to
Keith Davis, “Leadership is the ability to persuade others to seek defined
objectives enthusiastically. It is the human factor which binds a group together
and motivates it towards goals.”
Characteristics of Leadership
• It is an inter-personal process in which a manager is into influencing and
guiding workers towards attainment of goals.
• It denotes a few qualities to be present in a person which includes
intelligence, maturity and personality.
• It is a group process. It involves two or more people interacting with each
other.
• A leader is involved in shaping and moulding the behavior of the group
towards accomplishment of organizational goals.
• Leadership is situation bound. There is no best style of leadership. It all
depends upon tackling with the situations.
An effective leader is a person who does the following:
• Creates an inspiring vision of the future.
• Motivates and inspires people to engage with that vision.
• Manages delivery of the vision.
• Coaches and builds a team, so that it is more effective at achieving the
vision.
Leadership brings together the skills needed to do these things.
4)Definition and importance of social responsibility in management system
A responsibility - it is the employee's obligation to perform all the work and solve
specific tasks inherent in a particular position held and to be responsible for the
results of his activities. . The responsibility of the manager it is his obligation to
answer for the tasks and results of the work of all employees subordinate to
him.The term social responsibility means different things to different people.
Generally, corporate social responsibility is the obligation to take action that
protects and improves the welfare of society as a whole as well as organizational
interests. According to the concept of corporate social responsibility, a manager
must strive to achieve both organizational and societal goals. . The following
categories are generally considered when measuring social responsiveness:
contributions, fund-raising, volunteerism, recycling, diversity policies, direct
corporate investment, quality of work life, attention to consumers and pollution
control.
5) Describe the main functions of management
We can say that management is the process of planning, organizing, leading and
controlling the efforts of organization members and of using all other
organizational resources to achieve stated organizational goals.
Planning involves choosing tasks that must be performed to attain organizational
goals, outlining how the tasks must be performed, and indicating when they
should be performed. Planning activity focuses on attaining goals. Through their
plans, managers outline exactly what organizations must do to be successful.
Organizing can be thought of as assigning the tasks developed under the planning
function to various individuals or groups within the organization. Organizing,
then, creates a mechanism to put plans into action. People within the o
Influencing is another of the basic functions within the management process. This
function—also commonly referred to as motivating, leading, directing, or
actuating—is concerned primarily with people within organizations. rganization
are given work assignments that contribute to the company’s goals
Controlling is the management function through which managers:
1.Gather information that measures recent performance within the organization.
2.Compare present performance to pre-established performance standards.
3.From this comparison, determine whether the organization should be modified
to meet pre-established standards.
Controlling is an ongoing process. History shows that managers commonly make
mistakes when planning, organizing, influencing, and controlling.
Bilet 3
1)The concept of control
Controlling is the fourth function in the management process. Controlling means
monitoring employees’ activities, determining whether the organization is on
target toward its goals, and making corrections as necessary. Managers must
ensure that the organization is moving toward its goals. Trends toward
empowerment and trust of employees have led many companies to place less
emphasis on top down control and more emphasis on training employees to
monitor and correct themselves. Controlling is the management function through
which managers:
1. Gather information that measures recent performance within the
organization.
2.Compare present performance to pre-established performance standards.
3.From this comparison, determine whether the organization should be modified
to meet pre-established standards.
2) Barriers to Effective Communication
To lead others, you must demonstrate effective communication skills. .
Otherwise, a manager will lack the credibility to implement his employer's
objectives, and struggle to rally worker teams behind them. Managers who
communicate well are also more likely to become good problem solvers. Effective
communications skills are a must for breaking down barriers, which promotes the
collaborative atmosphere that an organization needs to thrive.
3) McGregor’s motivation theory X and Y
In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two
aspects of human behavior at work, or in other words, two different views of
individuals (employees): one of which is negative, called as Theory X and the
other is positive, so called as Theory Y. According to McGregor, the perception of
managers on the nature of individuals is based on various assumptions.
Assumptions of Theory X
An average employee intrinsically does not like work and tries to escape it
whenever possible. Since the employee does not want to work, he must be
persuaded, compelled, or warned with punishment so as to achieve
organizational goals. Many employees rank job security on top, and they have
little or no aspiration/ ambition.
•Employees generally dislike responsibilities.
•Employees resist change.
•An average employee needs formal direction.
Assumptions of Theory Y
Employees can perceive their job as relaxing and normal. They exercise their
physical and mental efforts in an inherent manner in their jobs. Employees may
not require only threat, external control and coercion to work, but they can use
selfdirection and self-control if they are dedicated and sincere to achieve the
organizational objectives.
Implications of Theory X and Theory Y
Quite a few organizations use Theory X today. Theory X encourages use of tight
control and supervision. It implies that employees are reluctant to organizational
changes. Thus, it does not encourage innovation.
Many organizations are using Theory Y techniques. Theory Y implies that the
managers should create and encourage a work environment which provides
opportunities to employees to take initiative and self-direction.
4) What is the main responsibilities of managers?
Manager Job Responsibilities:
Accomplishes department objectives by managing staff; planning and evaluating
department activities.
Maintains staff by recruiting, selecting, orienting, and training employees.
Ensures a safe, secure, and legal work environment.
Develops personal growth opportunities.
5) Types of organizational structure
There are many types of organizational structures. There’s the more traditional
functional structure, the divisional structure, the matrix structure and the
flatarchy structure.
Functional structure
This kind of organizational structure classifies people according to the function
they perform in professional life. The functional structure is based on an
organization being divided up into smaller groups with specific tasks or roles. For
example, a company could have a group working in information technology,
another in marketing, finance, engineering, manufacturing, etc.
Divisional structure
Definitions of this structure
 The organization is structured according to departments according to one
of three criteria: on output (product specialization), on consumer orientation, on
served regions.
 They group employees based on products, markets and geographic
location.
 Each divisions has its own functional units like research, manufacturing,
marketing, sales, finance, etc.
Product oriented structure - this structure is based on the organization of
employees and work around different products. If the company produces three
different products, then it will have three different units for these products. This
type of structure is best suited for retail stores with a variety of products.
Bilet 4
1)Describe the effective communication skills
norm. Effective communication between managers and employees is requisite for
a well-functioning workplace. The best managers understand the need for
building alliances and communicating throughout all levels of the organization.
Effective communications skills are a must for breaking down barriers, which
promotes the collaborative atmosphere that an organization needs to thrive.
2) Methods of Motivating People
A compelling vision provides the foundation for leadership. But it's leaders' ability
to motivate and inspire people that helps them deliver that vision. For example,
when you start a new project, you will probably have lots of enthusiasm for it, so
it's often easy to win support for it at the beginning. However, it can be difficult to
find ways to keep your vision inspiring after the initial enthusiasm fades,
especially if the team or organization needs to make significant changes in the
way that it does things. One of the key ways they do this is through Expectancy
Theory . Effective leaders link together two different expectations:
• The expectation that hard work leads to good results.
• The expectation that good results lead to attractive rewards or incentives.
This motivates people to work hard to achieve success, because they expect to
enjoy rewards – both intrinsic and extrinsic – as a result.
3) Definition and importance of conflict management
Whenever two individuals opine in different ways, a conflict arises. In a layman’s
language conflict is nothing but a fight either between two individuals or among
group members. Conflict arises whenever individuals have different values,
opinions, needs, interests and are unable to find a middle way. A conflict has five
phases.
Prelude to conflict - It involves all the factors which possibly arise a conflict
among individuals. Lack of coordination, differences in interests, dissimilarity in
cultural, religion, educational background all are instrumental in arising a conflict.
Triggering Event - No conflict can arise on its own. There has to be an event which
triggers the conflict. Jenny and Ali never got along very well with each other. They
were from different cultural backgrounds, a very strong factor for possibility of a
conflict. Ali was in the mid of a presentation when Jenny stood up and criticized
him for the lack of relevant content in his presentation, thus triggering the conflict
between them.
Initiation Phase - Initiation phase is actually the phase when the conflict has
already begun. Heated arguments, abuses, verbal disagreements are all warning
alarms which indicate that the fight is already on.
Differentiation Phase - It is the phase when the individuals voice out their
differences against each other. The reasons for the conflict are raised in the
differentiation phase.
Resolution Phase - A Conflict leads to nowhere. Individuals must try to
compromise to some extent and resolve the conflict soon. The resolution phase
explores the various options to resolve the conflict. Conflicts can be of many types
like verbal conflict, religious conflict, emotional conflict, social conflict, personal
conflict, organizational conflict, community conflict and so on.
4) Description of Marketing Concepts.
Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.
5) Which of the manager skills do you think most important for effective
managing organization?
There are three types of skills are important for successful management
performance: technical, human, and conceptual skills.
Technical skills involve the ability to apply specialized knowledge and expertise to
work related techniques and procedures. Examples of these skills are engineering,
computer programming, and accounting. Technical skills are mostly related to
working with “things”—processes or physical objects.
Human skills build cooperation within the team being led. They involve working
with attitudes and communication, individual and group interests—in short,
working with people.
Conceptual skills involve the ability to see the organization as a whole. A
manager with conceptual skills is able to understand how various functions of the
organization complement one another, how the organization relates to its
environment, and how changes in one part of the organization affect the rest of
the organization. As one moves from lower-level management to upper-level
management, conceptual skills become more important and technical skills less
important.
Bilet 5
1)Description of discipline, responsibility, authority principles of management
Responsibility
Responsibility indicates the duty assigned to a position. The person holding the
position has to perform the duty assigned. It is his responsibility. The term
responsibility is often referred to as an obligation to perform a particular task
assigned to a subordinate. In an organization, responsibility is the duty as per the
guidelines issued.
Authority
Authority is the right or power assigned to an executive or a manager in order to
achieve certain organizational objectives. A manager will not be able to function
efficiently without proper authority. Authority is the genesis of organizational
framework. It is an essential accompaniment of the job of management. Without
authority, a manager ceases to be a manager, because he cannot get his policies
carried out through others.
Accountability
Every employee/manager is accountable for the job assigned to him. He is
supposed to complete the job as per the expectations and inform his superior
accordingly. Accountability is the liability created for the use of authority. It is the
answerability for performance of the assigned duties. According, to McFarland,
"accountability is the obligation of an individual to report formally to his superior
about the work he has done to discharge the responsibility."
2) Expectancy theory of motivation (Vrooms theory)
Vroom's expectancy theory assumes that behavior results from conscious choices
among alternatives whose purpose it is to maximize pleasure and to minimize
pain. Vroom realized that an employee's performance is based on individual
factors such as personality, skills, knowledge, experience and abilities. He stated
that effort, performance and motivation are linked in a person's motivation. He
uses the variables Expectancy, Instrumentality and Valence to account for this.
Expectancy is the belief that increased effort will lead to increased performance
i.e. if I work harder then this will be better. This is affected by such things as:
•Having the right resources available (e.g. raw materials, time)
•Having the right skills to do the job
•Having the necessary support to get the job done (e.g. supervisor support, or
correct information on the job)
3) External environment and its influence on activity of organization
Organizations have an external and internal environment;
• External Environment
• Internal Environment.
External Environment of Organization

In a simple way factor outside or organization are the elements of the external
environment. The organization has no control over how the external environment
elements will shape up.
The external environment can be subdivided into 2 layers: the general
environment and the task environment.
• General Environment
• Task Environment
General Environment of Organization
The general environment consists of factors that may have an immediate direct
effect on operations but nevertheless influences the activities of the firm. The
dimensions of the general environment are broad and non-specific whereas the
dimensions of the task environment are composed of the specific organization.
Let’s see the elements or dimensions of the general environment: Economic
Dimension, Technological Dimension, Socio-cultural dimension etc.
Task Environment of Organization
The task environment consists of factors that directly affect and are affected by
the organization’s operations. These factors include suppliers, customers,
competitors, regulators and so on. A manager can identify environmental factors
of specific interest rather than having to deal with a more abstract dimension of
the general environment.
The different elements of the task environment may be discussed as under:
Competitors, Customers, Suppliers, Regulators
4) Describe the benefits and difference of divisional structure
The organization is structured according to departments according to one of
three criteria: on output (product specialization), on consumer orientation, on
served regions.
They group employees based on products, markets and geographic location.
 Each divisions has its own functional units like research, manufacturing,
marketing, sales, finance, etc.
5) Leadership styles
there are three basic leadership styles: -
1. Autocratic or Dictatorial Leadership: In this leadership style the leader
assumes full responsibility for all actions. Mainly he relies on implicit obedience
from the group in following his orders. He determines plans and policies and
makes the decision-making a one man show. He maintains very critical and
negative relations with his subordinates. He freely uses threats of punishment
and penalty for any lack of obedience. This kind of leadership has normally very
short life.
2. Democratic Leadership: In this case, the leader draws ideas and
suggestions from his group by discussion, consultation and participation. He
secures consensus or unanimity in decision-making. Subordinates are duly
encouraged to make any suggestion as a matter of their contribution in decision-
making and to enhance their creativity.
This kind of leadership style is liked in most civilized organization and has very
long life.
3. Laissez-faire Free Rein Leadership: Quite contrary to autocratic leadership
style, in this leadership style the leader depends entirely on his subordinates to
establish their own goals and to make their own decisions. He let them plan,
organize and proceed. He takes minimum initiative in administration or
information. He is there to guide the subordinates if they are in a problem. This
kind of leadership is desirable in mainly professional organization and where the
employees are self-motivated. Leader works here just as a member of the team.
Bilet 6
1)Effective Communication
norm. Employees who show an aptitude for verbal and written communication
communication between managers and employees is requisite for a well-
functioning workplace. Effective Communication is significant for managers in the
organizations so as to perform the basic functions of management, i.e., Planning,
Organizing, Leading and Controlling. Communication helps managers to perform
their jobs and responsibilities. Communication serves as a foundation for
planning. All the essential information must be communicated to the managers
who in-turn must communicate the plans so as to implement them. Organizing
also requires effective communication with others about their job task. Similarly
leaders as managers must communicate effectively with their subordinates so as
to achieve the team goals
2) ERG theory of motivation and McClelland’s theory of Needs
ERG Theory
To bring Maslow’s need hierarchy theory of motivation in synchronization with
empirical research, Clayton Alderfer redefined it in his own terms. His rework is
called as ERG theory of motivation.
David McClelland and his associates proposed McClelland’s theory of Needs /
Achievement Motivation Theory. This theory states that human behavior is
affected by three needs - Need for Power, Achievement and Affiliation. Need for
achievement is the urge to excel, to accomplish in relation to a set of standards,
to struggle to achieve success. Need for power is the desire to influence other
individual’s behavior as per your wish. In other words, it is the desire to have
control over others and to be influential. Need for affiliation is a need for open
and sociable interpersonal relationships. In other words, it is a desire for
relationship based on co-operation and mutual understanding.
The individuals with high achievement needs are highly motivated by competing
and challenging work. They look for promotional opportunities in job. They have a
strong urge for feedback on their achievement. Such individuals try to get
satisfaction in performing things better. High achievement is directly related to
high performance. Individuals who are better and above average performers are
highly motivated.
3) How do you consider, which of leadership skills are the most essential
(describe 4 leadership skill and the reason of why do you think that they are
important)
Master Your Time: Effective leaders will always be in a position to manage their
time well. They would know how to prioritize list of activities / pending tasks.
Most important - they would know the different between ’urgent’ and
’important’. Remember, not everything that is urgent is important. Also, not
everything that is important is urgent.
Ask Questions: Leaders will ask questions that help them assess employees’
contribution to the organization and also help employees understand how better
they can contribute towards organizational goals. A Leader must ask his / her
employees - the task they perform, do they feel their task is linked to the big
picture, and is there anything that comes in the way of their performance.
Create Talent Pool: Smart leaders will always be ready for any shortage in staff.
They will have their talent pool ready in case of any crisis situation. They will
ensure that every employee has a trained / trainable back-up.
Be Courageous: As per Peter Drucker, “whenever you see a successful business,
someone once made a courageous decision”. An effective leader will always be
ready to take difficult / courageous decisions when required.
4) Maslow’s hierarchy of needs
Maslow’s hierarchy of needs into three simpler and broader classes of needs:
• Existence needs- These include need for basic material necessities. In short,
it includes an individual’s physiological and physical safety needs.
• Relatedness needs- These include the aspiration individuals have for
maintaining significant interpersonal relationships (be it with family, peers or
superiors), getting public fame and recognition. Maslow’s social needs and
external component of esteem needs fall under this class of need.
• Growth needs- These include need for self-development and personal
growth and advancement. Maslow’s self-actualization needs and intrinsic
component of esteem needs fall under this category of need.
5) Expand the concept of conflict and give its modern interpretation.
Whenever two individuals opine in different ways, a conflict arises. In a layman’s
language conflict is nothing but a fight either between two individuals or among
group members. Conflict arises whenever individuals have different values,
opinions, needs, interests and are unable to find a middle way. Conflict is defined
as a clash between individuals arising out of a difference in thought process,
attitudes, understanding, interests, requirements and even sometimes
perceptions. A conflict results in heated arguments, physical abuses and definitely
loss of peace and harmony.
Bilet 7
1)Written and oral communication
Oral communication implies communication through mouth. It includes
individuals conversing with each other, be it direct conversation or telephonic
conversation. Speeches, presentations, discussions are all forms of oral
communication. Oral communication is generally recommended when the
communication matter is of temporary kind or where a direct interaction is
required. Face to face communication (meetings, lectures, conferences,
interviews, etc.) is significant so as to build a rapport and trust.
Written communication has great significance in today’s business world. It is an
innovative activity of the mind. Effective written communication is essential for
preparing worthy promotional materials for business development. Speech came
before writing. But writing is more unique and formal than speech. Effective
writing involves careful choice of words, their organization in correct order in
sentences formation as well as cohesive composition of sentences. Also, writing is
more valid and reliable than speech. But while speech is spontaneous, writing
causes delay and takes time as feedback is not immediate.
2) Effective leadership Skills
Master Your Time: Effective leaders will always be in a position to manage their
time well. They would know how to prioritize list of activities / pending tasks.
’important’. Remember, not everything that is urgent is important. Also, not
everything that is important is urgent.
Ask Questions: Leaders will ask questions that help them assess employees’
contribution to the organization and also help employees understand how better
they can contribute towards organizational goals. A Leader must ask his / her
employees - the task they perform, do they feel their task is linked to the big
picture, and is there anything that comes in the way of their performance.
Provide Work-Life Balance: In today’s world where working hours are on a rise,
an effective leader must ensure that his / her workers are able to maintain a
balance between their personal and professional lives. Effective leaders should
always lead by example by leaving on time, avoiding meetings during Fridays or
end of the business days, not calling employees on their day off. Remember, an
effective leader will have effective followers only if they are not burnt out or feel
they are over worked.
Manage Employee’s Professional growth: An effective leader will always chart
out a personal development plan [PDP] along with his / her employee. He would
identify the training the employee will need to go through keeping in mind his
personal development plan. The employees will feel encouraged and valued.
Create Talent Pool: Smart leaders will always be ready for any shortage in staff.
They will have their talent pool ready in case of any crisis situation. They will
ensure that every employee has a trained / trainable back-up.
Be Courageous: As per Peter Drucker, “whenever you see a successful business,
someone once made a courageous decision”. An effective leader will always be
ready to take difficult / courageous decisions when required.
Be Competent: The art of “tooting your own horn without blowing it” is a
delicate balance of demonstrating your “expertise” and “taking credit” in a way
that people notice their success. And one of the safest ways to do it is to
celebrate and bring attention to team achievements. Praise people for good work,
and when you do so, be specific on what exactly you liked. Shaking hands is a
gesture that will show them that you are actually happy about their contribution
and their success. And thus, you will prove out your competence as a leader.
Be Visionary: What’s lying ahead in future is a topic of fascination and has mystic
charm. This is a trait of absolute confidence and should be handled with care. It is
important to make goals specific, with possible outcomes and benefits, without
making promises that you may not be able to keep. A successful leader knows his
goals and checks if performance and goals are in symmetry.
3) Describe the different types of human resources motivation
Different types of motivation fall into two main categories.
1. Intrinsic Motivation
Intrinsic motivation is a type of motivation in which an individual is being
motivated by internal desires. For example, let’s say an individual named Bob has
set himself a goal to begin losing weight and becoming healthier. Let’s also
imagine that Bob’s reason to pursue this path of fitness and wellness is to
improve his health overall and feel more happier with his appearance. Since Bob’s
desire to change comes from within, his motivation is intrinsic.
2. Extrinsic Motivation
Extrinsic motivation, on the other hand, is a type of motivation in which an
individual is being motivated by external desires. Rather than being motivated by
the need to look better and feel healthier, let’s say that Bob was feeling pressure
from his wife to slim down and improve his physique so that she would be more
attracted to him. Since this pressure comes from the outside, this is an example of
extrinsic motivation.
Here are minor forms of motivation that are capable of making a big impact in
your life!
3. Reward-Based Motivation or Incentive Motivation
Incentive motivation or reward-based motivation is a type of motivation that is
utilized when you or others know that they will be a reward once a certain goal is
achieved. Because there will be something to look forward to at the end of a task,
people will often become more determined to see the task through so that they
can receive whatever it is that has been promised.
The better the reward, the stronger the motivation will be!
4. Fear-Based Motivation
The word “fear” carries a heavy negative meaning but when it comes to
motivation, this is not necessarily the case. Anyone who is big on goal-setting and
achievement knows that accountability plays a huge role in following through on
goals. When you become accountable either to someone you care about or to the
general public, you create a motivation for yourself that is rooted in the fear of
failure. This fear helps you to carry out your vision so that you do not fail in front
of those who are aware of your goal. Fear-based motivation is extremely powerful
as long as the fears is strong enough to prevent you from quitting.
5. Achievement-Based Motivation
Titles, positions, and roles throughout jobs and other areas of our lives are very
important to us. Those who are constantly driven to acquire these positions and
earn titles for themselves are typically dealing with achievement-based
motivation. Whereas those who use incentive motivation to focus on the rewards
that come after a goal is met, those who use achievement-based motivation focus
on reaching a goal for the sake of achievement. Those who need a boost in their
professional life will find achievement-based motivation extremely helpful.
6. Power-Based Motivation
Those who find happiness in becoming more powerful or creating massive change
will definitely be fueled by power-based motivation. Power-based motivation is a
type of motivation that energizes others to seek more control, typically through
the use of positions in employment or organizations. Although it may seem to be
a bad thing, power-based motivation is great for those who wish to change the
world around them based on their personal vision. If you’re looking to make
changes, power-based motivation may just be the way to go!
7. Affiliation Motivation
People often say that it’s not what we do but who we know that dictates our
success. For people driven by affiliation motivation, this is most certainly true.
Those who use affiliation motivation as a driving force to meet their goals thrive
when they connect with others in higher power positions than them. They also
thrive when those people compliment the work that they do as well as their
achievements. Affiliation motivation is a great force to help you achieve your
social goals and move up in the world.
8. Competence Motivation
Have you always wanted to be better at anything you do? Is one of your goals to
learn how to do your job better or improve at your hobby? If so, you may be in
need of some competence motivation. Competence motivation is a type of
motivation that helps others to push forward and become more competent in a
certain area. This type of motivation is especially helpful when it comes to
learning new skills and figuring out ways around obstacles that one is faced with
in different areas of life.
9. Attitude Motivation
A problem with our attitude, perspectives, and beliefs is an issue that many of us
face. It can become a problem on the way that we move throughout to the point
that we begin to lose our happiness and miss out on our dreams. For those of you
who are losing out on life because of your attitude, attitude motivation will help
you to recover and move forward properly.
4) Levels of management
Top managers are at the top of the hierarchy and are responsible for the entire
organization. They have such titles as president, chairperson, executive director,
chief executive officer (CEO), and executive vice president. Top managers are
responsible for setting organizational goals, defining strategies for achieving
them, monitoring and interpreting the external environment, and making
decisions that affect the entire organization. They look to the long-term future
and concern themselves with general environmental trends and the
organization’s overall success. Top managers are also responsible for
communicating a shared vision for the organization, shaping corporate culture,
and nurturing an entrepreneurial spirit that can help the company innovate and
keep pace with rapid change.
Middle managers work at middle levels of the organization and are responsible
for business units and major departments. Examples of middle managers are
department head, division head, manager of quality control, and director of the
research lab. Middle managers typically have two or more management levels
beneath them. They are responsible for implementing the overall strategies and
policies defined by top managers. Middle managers generally are concerned with
the near future rather than with long-range planning. The middle manager’s job
has changed dramatically over the past two decades. Many organizations
improved efficiency by laying off middle managers and slashing middle
management levels.
Traditional pyramidal organization charts were flattened to allow information to
flow quickly from top to bottom and decisions to be made with greater speed.
Exhibit 1.3 illustrates the shrinking middle management. Yet even as middle
management levels have been reduced, the middle manager’s job has taken on a
new vitality. Rather than managing the flow of information up and down the
hierarchy, middle managers create horizontal networks that can help the
organization act quickly. Research shows that middle managers play a crucial role
in driving innovation and enabling organizations to respond to rapid shifts in the
environment.31As Ralph Stayer, CEO of Johnsonville Sausage said, “Leaders can
design wonderful strategies, but the success of the organization resides in the
execution of those strategies. The people in the middle are the ones who make it
work.
Lower managers is also known as supervisory / operative level of management. It
consists of supervisors, foreman, section officers, superintendent etc. According
to
R.C. Davis, “Supervisory management refers to those executives whose work has
to be largely with personal oversight and direction of operative employees”. In
other words, they are concerned with direction and controlling function of
management. Their activities include -
• Assigning of jobs and tasks to various workers.
• They guide and instruct workers for day to day activities.
• They are responsible for the quality as well as quantity of production.
• They are also entrusted with the responsibility of maintaining good relation
in the organization.
• They communicate workers problems, suggestions, and recommendatory
appeals etc. to the higher level and higher level goals and objectives to the
workers.
• They help to solve the grievances of the workers.
• They supervise & guide the sub-ordinates.
• They are responsible for providing training to the workers.
• They arrange necessary materials, machines, tools etc. for getting the
things done.
• They prepare periodical reports about the performance of the workers.
• They ensure discipline in the enterprise.
• They motivate workers.
• They are the image builders of the enterprise because they are in direct
contact with the workers.
5) Give the definition of leadership and highlight a set of features that reflect
the modern portrait of a leader.
1. Creating an Inspiring Vision of the Future
In business, a vision is a realistic, convincing and attractive depiction of where you
want to be in the future. Vision provides direction, sets priorities, and provides a
marker, so that you can tell that you've achieved what you wanted to achieve.
2. Motivating and Inspiring People
to motivate and inspire people that helps them deliver that vision.
Coaching and Building a Team to Achieve the Vision
Bilet 8
1)Importance of Leadership
In business, a vision is a realistic, convincing and attractive depiction of where you
want to be in the future. Vision provides direction, sets priorities, and provides a
marker, so that you can tell that you've achieved what you wanted to achieve.
to motivate and inspire people that helps them deliver that vision.
2) Monetary and non-monetary motivation
Incentive is an act or promise for greater action. It is also called as a stimulus to
greater action. Therefore, management has to offer the following two categories
of incentives to motivate employees:
Monetary incentives- Those incentives which satisfy the subordinates by
providing them rewards in terms of rupees. Money has been recognized as a chief
source of satisfying the needs of people. Money is also helpful to satisfy the social
needs by possessing various material items. Therefore, money not only satisfies
psychological needs but also the security and social needs. Therefore, in many
factories, various wage plans and bonus schemes are introduced to motivate and
stimulate the people to work.
Non-monetary incentives- Besides the monetary incentives, there are certain
nonfinancial incentives which can satisfy the ego and self- actualization needs of
employees. The incentives which cannot be measured in terms of money are
under the category of “Non- monetary incentives”. Whenever a manager has to
satisfy the psychological needs of the subordinates, he makes use of non-financial
incentives. Non- financial incentives can be of the following types:-
• Security of service- Job security is an incentive which provides great
motivation to employees. If his job is secured, he will put maximum efforts to
achieve the objectives of the enterprise. This also helps since he is very far off
from mental tension and he can give his best to the enterprise.
• Praise or recognition- The praise or recognition is another nonfinancial
incentive which satisfies the ego needs of the employees. Sometimes praise
becomes more effective than any other incentive. The employees will respond
more to praise and try to give the best of their abilities to a concern.
• Suggestion scheme- The organization should look forward to taking
suggestions and inviting suggestion schemes from the subordinates. This
inculcates a spirit of participation in the employees. This can be done by
publishing various articles written by employees to improve the work
environment which can be published in various magazines of the company. This
also is helpful to motivate the employees to feel important and they can also be
in search for innovative methods which can be applied for better work methods.
This ultimately helps in growing a concern and adapting new methods of
operations.
• Job enrichment- Job enrichment is another nonmonetary incentive in
which the job of a worker can be enriched. This can be done by increasing his
responsibilities, giving him an important designation, increasing the content and
nature of the work. This way efficient worker can get challenging jobs in which
they can prove their worth. This also helps in the greatest motivation of the
efficient employees.
• Promotion opportunities- Promotion is an effective tool to increase the
spirit to work in a concern. If the employees are provided opportunities for the
advancement and growth, they feel satisfied and contented and they become
more committed to the organization.
3) Internal environment and its influence on activity of organization
Forces or conditions or surroundings within the boundary of the organization are
the elements of the internal environment of the organization. The internal
environment consists mainly of the organization’s owners, the board of directors,
employees and culture.
Owners
Owners are people who invested in the company and have property rights and
claims on the organization. Owners can be an individual or group of person who
started the company; or who bought a share of the company in the share market.
They have the right to change the company’s policy at any time.
Board of Directors
The board of directors is the governing body of the company who are elected by
stockholders, and they are given the responsibility for overseeing a firm’s top
managers such as the general manager.
Employees
Employees or the workforce, the most important element of an organization’s
internal environment, who performs the tasks of the administration. Individual
employees and also the labor unions they join are important parts of the internal
environment. If managed properly they can positively change the organization’s
policy. But ill-management of the workforce could lead to a catastrophic situation
for the company.
Culture
Organizational culture is the collective behavior of members of an organization
and the values, visions, beliefs, habits that they attach to their actions. An
organization’s culture plays a major role in shaping its success because culture is
an important determinant of how well their organization will perform. As the
foundation of the organization’s internal environment, it plays a major role in
shaping managerial behavior.
4) What are the SMART goals?
5) Definition and importance of the PESTLE analysis
What is PESTLE Analysis? PESTLE analysis, which is sometimes referred to as PEST
analysis, is a concept in marketing principles. Moreover, this concept is used as a
tool by companies to track the environment they’re operating in or are planning
to launch a new project/product/service, etc.
PESTLE is a mnemonic which in its expanded form denotes P for Political, E for
Economic, S for Social, T for Technological, L for Legal, and E for Environmental. It
gives a bird’s eye view of the whole environment from many different angles that
one wants to check and keep a track of while contemplating a certain idea/plan.
Bilet 9
1)What are the stages of the control process
Measurement of performance- The second major step in controlling is to measure
the performance. Finding out deviations becomes easy through measuring the
actual performance. Performance levels are sometimes easy to measure and
sometimes difficult. Measurement of tangible standards is easy as it can be
expressed in units, cost, money terms, etc. Quantitative measurement becomes
difficult when performance of manager has to be measured. Performance of a
manager cannot be measured in quantities. It can be measured only by-
• Attitude of the workers,
• Their morale to work,
• The development in the attitudes regarding the physical environment, and
• Their communication with the superiors.
It is also sometimes done through various reports like weekly, monthly, quarterly,
yearly reports.
Comparison of actual and standard performance - Comparison of actual

performance with the planned targets is very important. Deviation can be defined
as the gap between actual performance and the planned targets. The manager
has to find out two things here- extent of deviation and cause of deviation. Extent
of deviation means that the manager has to find out whether the deviation is
positive or negative or whether the actual performance is in conformity with the
planned performance. The managers have to exercise control by exception. He
has to find out those deviations which are critical and important for business.
Minor deviations have to be ignored. Major deviations like replacement of
machinery, appointment of workers, quality of raw material, rate of profits, etc.
should be looked upon consciously. Therefore it is said, “ If a manager controls
everything, he ends up controlling nothing.” For example, if stationery charges
increase by a minor 5 to 10%, it can be called as a minor deviation. On the other
hand, if monthly production decreases continuously, it is called as major
deviation.
Once the deviation is identified, a manager has to think about various cause
which has led to deviation. The causes can be-
1. Erroneous planning,
2. Co-ordination loosens,
3. Implementation of plans is defective, and
4. Supervision and communication is ineffective, etc.
Taking remedial actions- once the causes and extent of deviations are known, the
manager has to detect those errors and take remedial measures for it. There are
two alternatives here-
a) Taking corrective measures for deviations which have occurred; and
b) After taking the corrective measures, if the actual performance is not in
conformity with plans, the manager can revise the targets. It is here the
controlling process comes to an end. Follow up is an important step because it is
only through taking corrective measures, a manager can exercise controlling.
3. It is also valuable to understand that, within the strategic and operational

levels of control, there are several types of control. The first two types can be
mapped across two dimensions: level of proactivity and outcome versus
behavioral. The following table summarizes these along with examples of what
such controls might look like.
Proactivity
Proactivity can be defined as the monitoring of problems in a way that provides
their timely prevention, rather than after the fact reaction. In management, this is
known as feedforward control; it addresses what can we do ahead of time to help
our plan succeed. The essence of feedforward control is to see the problems
coming in time to do something about them. For instance, feedforward controls
include preventive maintenance on machinery and equipment and due diligence
on investments.
Concurrent Controls
The process of monitoring and adjusting ongoing activities and processes is
known as concurrent control. Such controls are not necessarily proactive, but
they can prevent problems from becoming worse. For this reason, we often
describe concurrent control as real-time control because it deals with the present.
An example of concurrent control might be adjusting the water temperature of
the water while taking a shower.
Feedback Controls
Finally, feedback controls involve gathering information about a completed
activity, evaluating that information, and taking steps to improve the similar
activities in the future. This is the least proactive of controls and is generally a
basis for reactions. Feedback controls permit managers to use information on
past performance to bring future performance in line with planned objectives.
Outcome and Behavioral Controls
Controls also differ depending on what is monitored, outcomes or behaviors.
Outcome controls are generally preferable when just one or two performance
measures (say, return on investment or return on assets) are good gauges of a
business’s health. Outcome controls are effective when there’s little external
interference between managerial decision making on the one hand and business
performance on the other. It also helps if little or no coordination with other
business units exists.
2) Definition of Motivation
 Motivation- A leader proves to be playing an incentive role in the concern’s
working. He motivates the employees with economic and non-economic rewards
and thereby gets the work from the subordinates. Motivation is very important,
since highly motivated people show excellent performance with less direction
from superiors.
3) Oral, written and non-verbal communication
Oral communication implies communication through mouth. It includes
individuals conversing with each other, be it direct conversation or telephonic
conversation. Speeches, presentations, discussions are all forms of oral
communication. Oral communication is generally recommended when the
communication matter is of temporary kind or where a direct interaction is
required. Face to face communication (meetings, lectures, conferences,
interviews, etc.) is significant so as to build a rapport and trust.
Written communication has great significance in today’s business world. It is an
innovative activity of the mind. Effective written communication is essential for
preparing worthy promotional materials for business development. Speech came
before writing. But writing is more unique and formal than speech. Effective
writing involves careful choice of words, their organization in correct order in
sentences formation as well as cohesive composition of sentences. Also, writing is
more valid and reliable than speech. But while speech is spontaneous, writing
causes delay and takes time as feedback is not immediate.
Non-verbal communication is communication that does not involve words, such
as body language, tone of voice, and gestures.
4) Description of division of work, unity of command principles of management
1. Division of Work
In practice, employees are specialized in different areas and they have different
skills. Different levels of expertise can be distinguished within the knowledge
areas (from generalist to specialist). Personal and professional developments
support this. According to Henri Fayol specialization promotes efficiency of the
workforce and increases productivity. In addition, the specialization of the
workforce increases their accuracy and speed.
Unity of Command
The management principle ‘Unity of command’ means that an individual
employee should receive orders from one manager and that the employee is
answerable to that manager. If tasks and related responsibilities are given to the
employee by more than one manager, this may lead to confusion which may lead
to possible conflicts for employees. By using this principle, the responsibility for
mistakes can be established more easily.
The basic principles of management control can be grouped into 10 elements
reflecting their purpose and nature, structure and process. These principles of
management control are given below:
Principle of Assurance of Objective. The basic purpose of management control is
the attainment of objectives does this by detecting failures, in plans. Potential or
actual, deviations from plans should be detected enough to permit effective
corrective action.
Principle of Efficiency of Controls. A management control system should detect
and highlight the causes of deviations from plans with minimum possible costs
and unwanted consequences. The principle of efficiency is particularly important
in control because techniques tend to become costly and burdensome. A
manager may become so engrossed in control that he spends more than it is to
detect a deviation. Controls which seriously interfere with authority of
subordinates or morale of those who execute plans, is inefficient.
Principle of Control Responsibility. The primary responsibility for the exercise of
control lies with the manager charged with the execution of plans. His responsibly
cannot be waived or rescinded without changing the organization structure. This
simple principle clarifies the often misunderstood role of controllers and control
units. These, agencies act in a service or staff provide control information. But
they cannot exercise control unless given the managerial authority and
responsibility for the things controlled.
Principle of Forward Looking. Control, like planning should be forward looking.
The principle is often disregarded largely because control has been depend up
accounting and statistical data instead of upon forecasts and projections. Even
though forecast are not accurate, they are better than historical records. Ideally, a
control system should provide instantaneous feedback so that, deviations from
desired performance is corrected as soon as they occur. If this is not possible
control should be based on forecasts, so as to foresee deviations in time. For
example, cash forecasts help in maintaining the solvency of business by
anticipating cash shortages and preventing them.
Principle of Direct Control. Most, controls used today are based on the fact that
human being make mistakes. They are often used as indirect controls aimed at
catching errors, often after the fact. Where ever is possible, direct controls aimed
at preventing errors should be used. Improving the quality of managers can
minimize the need for indirect controls. High quality managers make very few
mistakes and carry out all their functions to the best advantage.
Principle of Reflection of Plans. Controlling is the task of making sure that plans
are carried out effectively. Therefore, control techniques must reflect the specific
nature and structure of plans. For example, cost control, must be based on
planned costs of a definite and specific type.
Principle of Organizational Suitability. A management control system fit the
manage authority area and it should reflect the organization structure. When the
management control system is tailored to the structure of the organization, it pin
points the responsibility for action and facilitates correction of deviation from the
plans. Similarly, the information to appraise performance against plans must be
suitable to the position of the manager who is to, use it. In other words, all figures
and reports used for purposes of control must be in terms of the organization.
Principe of Individuality of Controls. Controls become effective when they are
consistent with the position, operational responsibility, competence, and needs of
the individual concerned. The scope and detail information required vary with the
level and function of management. Similarly, different managers prefer different
forms and units of reporting information. Therefore, controls should meet the
individual requirements of each manager.
Principle of Critical Point Controls. While exercising control, a manager should
focus attention on the factors, which are critical to appraising performance. It
would he unnecessary and wasteful for a manager to check each and every detail
of performance. Therefore, he should concentrate his attention on critical points
of performance.
Principle of Action. Control is a waste of time unless the corrective action is
taken. Corrective action may involve redrawing plans, reorganization,
replacement or training of a subordinate, motivation of staff, etc. Control is
justified only when indicated or experienced deviations from plans are corrected
through appropriate, planning, organizing, staffing and directing.
5) The main purposes of the communication process
The importance of communication in an organization can be summarized as
follows:
1) Communication promotes motivation by informing and clarifying the
employees about the task to be done, the manner they are performing the task,
and how to improve their performance if it is not up to the mark.
2) Communication is a source of information to the organizational members
for decision-making process as it helps identifying and assessing alternative
course of actions.
3) Communication also plays a crucial role in altering individual’s attitudes,
i.e., a well-informed individual will have better attitude than a less-informed
individual. Organizational magazines, journals, meetings and various other forms
of oral and written communication help in molding employee’s attitudes.
4) Communication also helps in socializing. In today’s life the only presence of
another individual fosters communication. It is also said that one cannot survive
without communication.
5) As discussed earlier, communication also assists in controlling process. It
helps controlling organizational member’s behavior in various ways. There are
various levels of hierarchy and certain principles and guidelines that employees
must follow in an organization. They must comply with organizational policies,
perform their job role efficiently and communicate any work problem and
grievance to their superiors. Thus, communication helps in controlling function of
management.
Bilet 10
1)Extrinsic and intrinsic rewards
1. Intrinsic Motivation
Intrinsic motivation is a type of motivation in which an individual is being
motivated by internal desires. For example, let’s say an individual named Bob has
set himself a goal to begin losing weight and becoming healthier. Let’s also
imagine that Bob’s reason to pursue this path of fitness and wellness is to
improve his health overall and feel more happier with his appearance. Since Bob’s
desire to change comes from within, his motivation is intrinsic.
2. Extrinsic Motivation
Extrinsic motivation, on the other hand, is a type of motivation in which an
individual is being motivated by external desires. Rather than being motivated by
the need to look better and feel healthier, let’s say that Bob was feeling pressure
from his wife to slim down and improve his physique so that she would be more
attracted to him. Since this pressure comes from the outside, this is an example of
extrinsic motivation.
2) Importance and Benefits of Employee Motivation
3) Organization as a Process
Organization is a group of people intentionally organized to accomplish an
overall, common goal or a set of goals. It is management that regulates man's
productive activities through coordinated use of material resources. Without the
leadership provided by management, the resources of production remain
resources and never become production. Management is the specific organ of all
kinds of organizations since they all need to utilize their limited resources most
efficiently and effectively for the achievement of their goals
4. Management styles
1)The authoritarian management style involves managing through clear direction
and control. It is also sometimes referred to as the autocratic or directive
management style. Authoritarian managers typically assert strong authority, have
total decision-making power, and expect unquestioned obedience.)
2) Visionary management styles
The visionary management style is also sometimes called inspirational,
charismatic, strategic, transformational, or authoritative. Visionary managers
focus on conveying the overall vision of the company, department, or project to
the
3)Transactional management styles
Transactional management style focuses on using positive rewards such as
incentives, bonuses, and stock options to motivate employees to improve their
performance. For instance, transactional managers may rely on piece-work pay to
incentivize their employees to produce more. Similarly, they may structure
quarterly or annual bonuses around employee performance in team.
4) Servant Leadership management styles
The phrase “servant leadership” was originally coined back in 1970 by Robert K.
Greenleaf in an essay titled “The Servant as Leader.” This management style is
also sometimes called coaching, training, or mentoring.
5) Pacesetting management styles
Pacesetting management style embodies leading from the front of the pack. As a
manager, you provide instructions and set a work pace, and then expect your
employees to follow in your footsteps.
Typically, pacesetting involves setting high or hard to reach standards in an effort
to drive your team to achieve new bests and hit bigger goals
6)Democratic management styles
A democratic management style is also sometimes referred to as consultative,
consensus, participative, collaborative, or affiliative style. This style is based on
the philosophy that two heads are better than one and that everyone deserves to
have a say, no matter what their position or title.
Managers who adopt a democratic style encourage idea sharing and regular
employee participation. The focus is on encouraging your team to share their
thoughts, ideas, suggestions, and potential solutions in order to help each other,
and the company grows.
7)Laissez-Faire management styles
The laissez-faire management style emphasizes employee freedom. Laissez-faire
originates from French and directly translates to “let do” in English. In other
words, laissez-faire managers let their employees do what they will, with little to
no interference.
Within the laissez-faire management style, there is no oversight provided during
the creation or production process. Laissez-faire managers promote self-directed
teams, and typically only get involved if something goes wrong or the team
requests it.
5) Essence of ethic in management system
To be truly effective, organizations should interact with their external
environment. The external environment can be divided into the general or mega
environment and the specific task environment. Social responsibility refers to the
obligation of a business firm to enhance the condition of society along with its
own interests. Business firms are accountable to six major stakeholder groups:
shareholders, employees, customers, creditors and suppliers, society and the
government.
Ethics
•An area of study that deals with ideas about what is good and bad behavior and
with moral duty and obligation
•The rules and principles that defines right and wrong conduct
•Management ethics is the ethical treatment of employees, stockholders, owners
and public by a company
Bilet 11
1)The definition and importance of the planning process
Strategic planning process
Organizations generally look three to five years ahead when engaged in strategic
planning. The strategic planning process results in a strategic plan, a document
that articulates both the decisions made about the organization's goals and the
ways in which the organization will achieve those goals. The strategic plan is
intended to guide the organization's leaders in their decision-making moving
forward.
Benefits of strategic planning
Strategic planning has many benefits. It forces organizations to be aware of future
opportunities and challenges. It also forces organizations to understand what
resources will be needed to seize upon or overcome those opportunities and
challenges. Additionally, strategic planning gives individuals a sense of direction
and marshals them around a common mission. It creates standards and
accountability. Strategic planning also helps organizations limit or avoid time
spent on crisis management, where they're reacting to unexpected changes that
they failed to anticipate and/or prepare for.
Simply put, strategic planning determines where an organization is going over the
next year or more, how it's going to get there and how it'll know if it got there or
not. The focus of a strategic plan is usually on the entire organization, while the
focus of a business plan is usually on a particular product, service or program.
There are a variety of perspectives, models and approaches used in strategic
planning. The way that a strategic plan is developed depends on the nature of the
organization's leadership, culture of the organization, complexity of the
organization's environment, size of the organization, expertise of planners, etc.
For example, there are a variety of strategic planning models, including goals-
based, issues-based, organic, scenario (some would assert that scenario planning
is more of a technique than model), etc.
1) Goals-based planning is probably the most common and starts with focus
on the organization's mission (and vision and/or values), goals to work toward the
mission, strategies to achieve the goals, and action planning (who will do what
and by when).
2) Issues-based strategic planning often starts by examining issues facing the
organization, strategies to address those issues and action plans.
3) Organic strategic planning might start by articulating the organization's
vision and values, and then action plans to achieve the vision while adhering to
those values. Some planners prefer a particular approach to planning, eg,
appreciative inquiry.
2) Types of conflicts in the workplace
Conflict arises whenever individuals have different values, opinions, needs,
interests and are unable to find a middle way.
1. Interdependence Conflicts
These types of conflict happen when a person relies on someone else's co-
operation, output, or input for them to get their job done. For example, a sales-
person is always late inputting the monthly sales figures. This causes the
accountant to be late with her reports.
Interdependence conflicts can often be overcome by ensuring that:
people have a good handle on delegation skills (yes you can delegate across and
up, not just down
that people are well trained in how to have challenging conversations
that consequences (natural and imposed) are used. For example the salesperson
who is late with his or her input could have a bonus reduction (imposed).
2. Differences in Styles
Conflict often happens because people have differing preferences on how to get
things done. For example, one person may want to get the work done quickly
(task oriented) and get on to the next thing as fast as possible. While another
person is more concerned about making sure that everyone has a say in how the
work gets done (people oriented).
You can hose down a lot of potential conflicts when you are trained in how to
understand, and successfully navigate your way through style differences, (and
make no mistake, style differences generally lead to personality conflicts).
3. Differences in Background/Gender
Conflicts can arise between people because of differences in age, educational
backgrounds, personal experiences, ethnic heritage, gender, and political
preferences. Here's an interview I did with Barbara Annis, on gender diversity and
inclusiveness. There are some great tips in the interview to help you make the
most of gender differences.
4. Differences in Leadership Style
Leaders have different ways of leading their teams. Team members who have to
deal with various leaders throughout a day, can become confused and irritated by
these different ways of being led. For example, one leader may be more open and
inclusive, while another may be more directive.
To avoid this type of disruption make sure that your leadership team puts
together a robust set of principles and values. Then, most importantly, they use
them to provide consistency in how they make decisions, and involve people in
the business.
5. Personality Clashes
Personality clashes are often the biggest cause of conflict in the workplace.These
types of conflict in the workplace are often ignited by emotions and perceptions
about somebody else's motives and character. For example, a team leader jumps
on someone for being late, because she views the team member as being lazy and
disrespectful. The team member sees the team leader as out to 'get' him because
he isn't one of the 'favored children'.
3) What is the strategic management?
Strategy is an action that managers take to attain one or more of the
organization’s goals. Strategy can also be defined as “A general direction set for
the company and its various components to achieve a desired state in the future.
Strategy results from the detailed strategic planning process”.
A strategy is all about integrating organizational activities and utilizing and

allocating the scarce resources within the organizational environment so as to
meet the present objectives. While planning a strategy it is essential to consider
that decisions are not taken in a vaccum and that any act taken by a firm is likely
to be met by a reaction from those affected, competitors, customers, employees or
suppliers.
Strategic Management is all about identification and description of the strategies

that managers can carry so as to achieve better performance and a competitive
advantage for their organization. An organization is said to have competitive
advantage if its profitability is higher than the average profitability for all
companies in its industry.
Strategic management can also be defined as a bundle of decisions and acts which
a manager undertakes and which decides the result of the firm’s performance.
The manager must have a thorough knowledge and analysis of the general and
competitive organizational environment so as to take right decisions. They should
conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats),
i.e., they should make best possible utilization of strengths, minimize the
organizational weaknesses, make use of arising opportunities from the business
environment and shouldn’t ignore the threats.
Strategic management is nothing but planning for both predictable as well as

unfeasible contingencies. It is applicable to both small as well as large
organizations as even the smallest organization face competition and, by
formulating and implementing appropriate strategies, they can attain sustainable
competitive advantage.
It is a way in which strategists set the objectives and proceed about attaining
them. It deals with making and implementing decisions about future direction of
an organization. It helps us to identify the direction in which an organization is
moving.
Strategic management is a continuous process that evaluates and controls the

business and the industries in which an organization is involved; evaluates its
competitors and sets goals and strategies to meet all existing and potential
competitors; and then reevaluates strategies on a regular basis to determine how it
has been implemented and whether it was successful or does it needs
replacement.
Strategic Management gives a broader perspective to the employees of an

organization and they can better understand how their job fits into the entire
organizational plan and how it is co-related to other organizational members
4) Definition and steps of decision-making process
Decision-making is a truly fascinating science, incorporating organizational
behavior, psychology, sociology, neurology, strategy, management, philosophy,
and logic. The ability to make effective decisions that are rational, informed, and
collaborative can greatly reduce opportunity costs while building a strong
organizational focus. As a prospective manager, effective decision-making is a
central skill necessary for success. This requires the capacity to weigh various
paths and determine the optimal trajectory of action.
5) What is formal and informal communication? Give examples of each type of

communication and characterize their impact on the employee motivation.
BASIS FOR FORMAL INFORMAL

COMPARISON ORGANIZATION ORGANIZATION
Meaning An organization type in An organization formed within
which the job of each the formal organization as a
member is clearly defined, network of interpersonal
whose authority, relationship, when people
responsibility and interact with each other, is
accountability are fixed is known as informal
formal organization. communication.
Creation Deliberately by top Spontaneously by members.

management.
Purpose To fulfill, the ultimate To satisfy their social and

objective of the organization. psychological needs.
Nature Stable, it continues for a long Not stable

time.
Communication Official communication Grapevine
Control Rules and Regulations Norms, values and beliefs

mechanism
Focus on Work performance Interpersonal relationship
Authority Members are bound All members are equal.

by hierarchical
structure.
Size Large Small
Bilet 12
1)What types of tasks and roles are central to the work of managers at different
levels?
Top managers are at the top of the hierarchy and are responsible for the entire
organization. They have such titles as president, chairperson, executive director,
chief executive officer (CEO), and executive vice president. Top managers are
responsible for setting organizational goals, defining strategies for achieving
them, monitoring and interpreting the external environment, and making
decisions that affect the entire organization. They look to the long-term future
and concern themselves with general environmental trends and the
organization’s overall success. Top managers are also responsible for
communicating a shared vision for the organization, shaping corporate culture,
and nurturing an entrepreneurial spirit that can help the company innovate and
keep pace with rapid change.
Middle managers work at middle levels of the organization and are responsible
for business units and major departments. Examples of middle managers are
department head, division head, manager of quality control, and director of the
research lab. Middle managers typically have two or more management levels
beneath them. They are responsible for implementing the overall strategies and
policies defined by top managers. Middle managers generally are concerned with
the near future rather than with long-range planning. The middle manager’s job
has changed dramatically over the past two decades. Many organizations
improved efficiency by laying off middle managers and slashing middle
management levels.
Traditional pyramidal organization charts were flattened to allow information to
flow quickly from top to bottom and decisions to be made with greater speed.
Exhibit 1.3 illustrates the shrinking middle management. Yet even as middle
management levels have been reduced, the middle manager’s job has taken on a
new vitality. Rather than managing the flow of information up and down the
hierarchy, middle managers create horizontal networks that can help the
organization act quickly. Research shows that middle managers play a crucial role
in driving innovation and enabling organizations to respond to rapid shifts in the
environment.31As Ralph Stayer, CEO of Johnsonville Sausage said, “Leaders can
design wonderful strategies, but the success of the organization resides in the
execution of those strategies. The people in the middle are the ones who make it
work.
Lower managers is also known as supervisory / operative level of management. It
consists of supervisors, foreman, section officers, superintendent etc. According
to
R.C. Davis, “Supervisory management refers to those executives whose work has
to be largely with personal oversight and direction of operative employees”. In
other words, they are concerned with direction and controlling function of
management. Their activities include -
• They are responsible for the quality as well as quantity of production.
• They are also entrusted with the responsibility of maintaining good relation
in the organization.
• They communicate workers problems, suggestions, and recommendatory
appeals etc. to the higher level and higher level goals and objectives to the
workers.
• They arrange necessary materials, machines, tools etc. for getting the
things done.
• They prepare periodical reports about the performance of the workers.
• They are the image builders of the enterprise because they are in direct
contact with the workers.
2)What types of control are carried out in the organization
Feed forward controls are future-directed — they attempt to detect and
anticipate problems or deviations from the standards in advance of their
occurrence (at various points throughout the processes). They are in-process
controls and are much more active, aggressive in nature, allowing corrective
action to be taken in advance of the problem.Feed forward controls thus
anticipate problems and permit action to be taken before a problem actually
arises.
Concurrent control, also called steering control because it allows people to act on
a process or activity while it is proceeding, not after it is proceeding, nor after it is
completed. Corrections and adjustments can be made as and when the need a
rises. Such controls focus on establishing conditions that will make it difficult or
impossible for deviations from norms to occur.
Feedback control is future-oriented. It is historical in nature and is also known as
post-action control. The implication is that the measured activity has already
occurred, and it is impossible to go back and correct performance to bring it up to
standard. Rather, corrections must occur after the act.
3)What are the main elements of the communication process? Give examples of
each of the elements.
The main components of communication process are as follows:
1) Context - Communication is affected by the context in which it

takes place. This context may be physical, social, chronological or cultural.
Every communication proceeds with context. The sender chooses the
message to communicate within a context.
2) Sender / Encoder - Sender / Encoder is a person who sends the
message. A sender makes use of symbols (words or graphic or visual aids)
to convey the message and produce the required response. For instance - a
training manager conducting training for new batch of employees. Sender
may be an individual or a group or an organization. The views,
background, approach, skills, competencies, and knowledge of the sender
have a great impact on the message. The verbal and non-verbal symbols
chosen are essential in ascertaining interpretation of the message by the
recipient in the same terms as intended by the sender.
3) Message - Message is a key idea that the sender wants to
communicate. It is a sign that elicits the response of recipient.
Communication process begins with deciding about the message to be
conveyed. It must be ensured that the main objective of the message is
clear.
4) Medium - Medium is a means used to exchange / transmit the
message. The sender must choose an appropriate medium for transmitting
the message else the message might not be conveyed to the desired
recipients. The choice of appropriate medium of communication is
essential for making the message effective and correctly interpreted by the
recipient. This choice of communication medium varies depending upon
the features of communication. For instance - Written medium is chosen
when a message has to be conveyed to a small group of people, while an
oral medium is chosen when spontaneous feedback is required from the
recipient as misunderstandings are cleared then and there.
5) Recipient / Decoder - Recipient / Decoder is a person for whom the
message is intended / aimed / targeted. The degree to which the decoder
understands the message is dependent upon various factors such as
knowledge of recipient, their responsiveness to the message, and the
reliance of encoder on decoder.
6) Feedback - Feedback is the main component of communication
process as it permits the sender to analyze the efficacy of the message. It
helps the sender in confirming the correct interpretation of message by the
decoder. Feedback may be verbal (through words) or non-verbal (in form
of smiles, sighs, etc.). It may take written form also in form of memos,
reports, etc.
4)Give a description of socio-psychological method of management
The purpose of socio-psychological management methods is the cognition and

use of the laws of people's mental activity for the optimization of psychological
phenomena and processes in the interests of society and the individual. This is the
unity, close connection and interdependence of social and psychological
management methods. However, there is a difference between them: with the
help of social methods, relations in groups and between groups are managed; with
the help of psychological - management of the behavior of the individual and
interpersonal relations in the group.
The purpose of sociological methods is to manage the formation and
development of the collective, to create a positive social and psychological
climate in the team, to achieve optimal unity, to achieve a common goal by
ensuring the unity of interests, developing initiatives, etc. Sociological methods
are based on the needs, interests, motives, goals and t.
5)The main steps of controlling process
Controlling is the fourth function in the management process. Controlling means

monitoring employees’ activities, determining whether the organization is on
target toward its goals, and making corrections as necessary. Managers must
ensure that the organization is moving toward its goals.
performance without maintaining daily authoritarian control over employees.
1. Gather information that measures recent performance within the

organization.
2. Compare present performance to pre-established performance standards.
3. From this comparison, determine whether the organization should be

modified to meet pre-established standards.
Controlling is an ongoing process. Managers continually gather information,

make their comparisons, and then try to find new ways of improving production
through organizational modification. History shows that managers commonly
make mistakes when planning, organizing, influencing, and controlling.
Bilet 13
1)Give a description of economic method of management
Economic management methods - a set of methods and methods of

management, based on the use of economic laws, interests and a system of
interrelated economic indicators, norms and standards. Economic methods
correspond to the socio-economic nature of the enterprise and are a means of
developing production and exchange on a market basis. The priority of economic
methods in market conditions is explained by the fact that management relations
are primarily determined by economic relations and, ultimately, reduce to the
management of interests through interests and through interests. A distinctive
feature of the current stage in the development of economic management
methods is their focus on encouraging the activity of an enterprise, depending on
its effectiveness, saving resource
Economic methods of management Table 1

Group of methods Components of a group of methods
Methods governed by state and regional Tax system of the country; tax system of
bodies (refer to the economic factors of the region; the country's credit and
the external environment of the
management system, the parameters of financial mechanism; credit and
which are not determined by the financial mechanism of the region
enterprise)
Methods regulated by the enterprise Economic standards of the enterprise;

the system of material incentives for
workers; system of responsibility for
quality and efficiency of work;
application of scientific approaches to
management
These standards should be developed on the basis of the results of marketing

research, analysis and forecasting of the most important indicators of quality and
resource intensity of the enterprise's products and competitors, the organizational
and technical level of production. Economic standards are included in the
business plan and fall into the functional subsystem of the management system.
2) Definition and importance of the SWOT analysis
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By

definition, Strengths (S) and Weaknesses (W) are considered to be internal
factors over which you have some measure of control. Also, by definition,
Opportunities (O) and Threats (T) are considered to be external factors over
which you have essentially no control.
SWOT Analysis is the most renowned tool for audit and analysis of the overall
strategic position of the business and its environment. Its key purpose is to
identify the strategies that will create a firm specific business model that will best
align an organization’s resources and capabilities to the requirements of the
environment in which the firm operates.
3) Types of decisions in business
Every organization needs to make decisions at one point or other as part of

managerial process. Decisions are made in the best interest of the organization.
Decisions are taken to support organizational growth. Discussions and
consultations are two main tools that support and eventually bring out decisions.
Three approaches to decision making are avoiding, problem solving and problem
seeking. Every decision-making process reaches a conclusion, which can be a
choice to act or not to act, a decision on what course of action to take and how, or
even an opinion or recommendation. Sometimes decision making leads to
redefining the issue or challenge. Accordingly, three decision-making processes
are known as avoiding, problem solving, and problem seeking.
Avoiding
One decision-making option is to make no choice at all. There are several reasons
why the decision maker might do this:
• There is insufficient information to make a reasoned choice between
alternatives.
• The potential negative consequences of selecting any alternative

outweigh the benefits of selecting one.
• No pressing need for a choice exists and the status quo can continue
without harm.
• The person considering the alternatives does not have the authority
to make a decision.
Problem Solving
Most decisions consist of problem-solving activities that end when a satisfactory

solution is reached. In psychology, problem solving refers to the desire to reach a
definite goal from a present condition. Problem solving requires problem
definition, information analysis and evaluation, and alternative selection.
Problem Seeking
On occasion, the process of problem solving brings the focus or scope of the
problem itself into question. It may be found to be poorly defined, of too large or
small a scope, or missing a key dimension. Decision makers must then step back
and reconsider the information and analysis they have brought to bear so far. We
can regard this activity as problem seeking because decision makers must return
to the starting point and respecify the issue or problem they want to address.
4)Organization of responsibility as a factor in the effectiveness of

management
A responsibility - it is the employee's obligation to perform all the work and

solve specific tasks inherent in a particular position held and to be responsible for
the results of his activities. . The responsibility of the manager it is his obligation
to answer for the tasks and results of the work of all employees subordinate to
him.The term social responsibility means different things to different people.
Generally, corporate social responsibility is the obligation to take action that
protects and improves the welfare of society as a whole as well as organizational
interests. According to the concept of corporate social responsibility, a manager
must strive to achieve both organizational and societal goals. . The following
categories are generally considered when measuring social responsiveness:
contributions, fund-raising, volunteerism, recycling, diversity policies, direct
corporate investment, quality of work life, attention to consumers and pollution
control.
5) Types of the controlling
Traditional Types of Control Techniques in Management
 Budgetary Control
 Standard Costing
 Financial Ratio Analysis
 Internal Audit
 Break-Even Analysis
 Statistical Control
Budgetary Control
Budgeting simply means showcasing plans and expected results using

numerical information. As a corollary to this, budgetary control means
controlling regular operations of an organization for executing budgets.
A budget basically helps in understanding and expressing expected

results of projects and tasks in numerical form. For example, the
amounts of sales, production output, machine hours, etc. can be seen in
budgets
Standard Costing
Standard costing is similar to budgeting in the way that it relies on

numerical figures. The difference between the two, however, is that
standard costing relies on standard and regular/recurring costs.
Under this technique, managers record their costs and expenses for
every activity and compare them with standard costs. This controlling
technique basically helps in realizing which activity is profitable and
which one is not.
Financial Ratio Analysis
Every business organization has to depict its financial performances

using reports like balance sheets and profit & loss statements. Financial
ratio analysis basically compares these financial reports to show the
financial performance of a business in numerical terms.
Comparative studies of financial statements showcase standards like

changes in assets, liabilities, capital, profits, etc. Financial ratio analysis
also helps in understanding the liquidity and solvency status of a
business.
Internal Audit
Another popular traditional type of control technique is internal

auditing. This process requires internal auditors to appraise themselves
of the operations of an organization.
Generally, the scope of an internal audit is narrow and it relates to

financial and accounting activities. In modern times, however,
managers use it to regulate several other tasks.
Break-Even Analysis
Break-even analysis shows the point at which a business neither earns
profits nor incurs losses. This can be in the form of sale output,
production volume, the price of products, etc.
Managers often use break-even analysis to determine the minimum

level of results they must achieve for an activity. Any number that goes
below the break-even point triggers corrective measures for control.
Statistical Control
The use of statistical tools is a great way to understand an

organization’s tasks effectively and efficiently. They help in showing
averages, percentages, and ratios using comprehensible graphs and
charts.
Bilet 14
1) Benefits and limitations of planning
Planning involves choosing tasks that must be performed to attain

organizational goals, outlining how the tasks must be performed, and
indicating when they should be performed. Planning activity focuses on
attaining goals. Through their plans, managers outline exactly what
organizations must do to be successful. Planning is essential to getting
the “right” things done. Planning is concerned with organizational
success in the near future (short term) as well as in the more distant
future. Planning means identifying goals for future organizational
performance and deciding on the tasks and use of resources needed to
attain them. In other words, managerial planning defines where the
organization wants to be in the future and how to get there.
2) Factors, affecting to the decision-making process
3) Give a description of administrative method of management

2. Administrative method of management. This method is based
on the fact that all activities of the organization are conducted on the
strict subordination of employees and on their unconditional fulfillment
of instructions. This method is used if the weight of traditions is large,
according to which only an unambiguous decision can be made. As a
result of applying the administrative method, the achieved result is
achieved, but the possibility of its development is not provided. Another
distinguishing feature of this method is the promotion of efficiency, not
initiative. The effectiveness of this method is significantly limited, since
it does not take into account and does not use all the capabilities of the
organization. Administrative and legal methods of management - the
totality of legal (administrative and administrative) means of
influencing people's relations in the production process. Administrative
methods - a method of implementing managerial influences on
personnel. They are based on power, discipline and penalties.
Feature of administrative methods:
- direct nature of the impact - any regulatory or administrative act is

subject to mandatory execution;
- compliance of administrative methods with the norms of

government bodies.
Administrative and legal methods are based on the following systems:
• System of legislative acts of the country and region - state

laws, decrees, resolutions, state standards, regulations,
instructions, methodologies and other documents approved by
state bodies for compulsory application on the territory of the
country.
• The system of normative-directive and methodological

documents of the enterprise and the higher organization, which are
mandatory for application.
These include: standards, procedures, regulations, instructions and
similar documents for long-term use, as well as orders, orders,
instructions approved by the management of the enterprise and
operating only at the enterprise.
The role of administrative methods of management is a powerful lever

for achieving the set goals in cases where it is necessary to subordinate
the collective and direct it to specific management tasks.
4) What are the basic elements of planning?

organizations must do to be successful. Planning is essential to getting
the “right” things done. Planning is concerned with organizational
success in the near future (short term) as well as in the more distant
future.
Objectives. Objectives are statements of future conditions, that a

manager hopes to achieve. All sets of objectives have three
characteristics: priority, timing, and measurement. The prase priority of
objectives implies that at a given time, accomplishing one objective is
more important than accomplishing others. Time dimensions imply
that an organization's activities are guide by different objectives,
depending on the duration of the action being planned.
Effective planning requires measurement of objectives. A variety of

measurements exists to quantify objectives in the eight areas that
management expert Peter Drucker suggests: market standing,
innovations, productivity, physical and financial resources, profitability,
manager performance and responsibility, worker performance and
attitude, social responsibility.
* Actions. Actions are the means, or specific activities, planned to
achieve the objectives. The terms strategies and tactics refer to planned
courses of action.
* Resources. Resources are constraints on the course of action. It also

involves budgeting - identifying the sources and levels of resources that
can be committed to the courses of action. Management can select the
type of budget that best suits the planning needs of the organization.
* Implementation. Implementation involves the assignment and

direction of personnel to carry out the plan. The three approaches to
implementation are authority, persuasion, and policy.
5) Description of task external environment factors
The task environment consists of factors that directly affect and are
affected by the organization’s operations. These factors include
suppliers, customers, competitors, regulators and so on. A manager can
identify environmental factors of specific interest rather than having to
deal with a more abstract dimension of the general environment.
The different elements of the task environment may be discussed as

under:
Competitors
Policies of the organization are often influenced by the competitors.

Competitive marketplace companies are always trying to stay and go
further ahead of the competitors. In the current world economy, the
competition and competitors in all respects have increased
tremendously. The positive effect of this is that the customers always
have options and the overall quality of products goes high.
Customers
“Satisfaction of customer”- the primary goal of every organization. The
customer is who pays money for the organization’s product or services.
They are the peoples who hand them the profit that the companies are
targeting. Managers should pay close attention to the customers’
dimension of the task environment because its customers purchase that
keeps a company alive and sound.
Suppliers
Suppliers are the providers of production or service materials. Dealing

with suppliers is an important task of management. A good relationship
between the organization and the suppliers is important for an
organization to keep a steady follow of quality input materials.
Regulators
Regulators are units in the task environment that have the authority to
control, regulate or influence an organization’s policies and practices.
Government agencies are the main player in the environment and
interest groups are created by its members to attempt to influence
organizations as well as government. Trade unions and chamber of
commerce are the common examples of an interest group. There are
two important kinds of regulators:
Bilet 15
1)Corporate culture of organization: essence and functions
The employees of a corporation are stakeholders who are affected by

management practices. When management considers ethics in its
actions toward stakeholders, employees can be positively affected. For
example, a corporation may decide that business ethics requires a
special effort to ensure the health and welfare of employees. Many
corporations have established employee advisory programs (EAPs) to
help employees with family, work, financial, or legal problems, or with
mental illness or chemical dependency. These programs can be a source
of enhanced productivity for a corporation.
2)Authority delegation, responsibility
Responsibility
Responsibility indicates the duty assigned to a position. The person

holding the position has to perform the duty assigned. It is his
responsibility. The term responsibility is often referred to as an
obligation to perform a particular task assigned to a subordinate. In an
organization, responsibility is the duty as per the guidelines issued.
According to Davis, "Responsibility is an obligation of individual to
perform assigned duties to the best of his ability under the direction of
his executive leader." In the words of Theo Haimann, "Responsibility is
the obligation of a subordinate to perform the duty as required by his
superior". McFarland defines responsibility as "the duties and activities
assigned to a position or an executive".
Characteristics of Responsibility
The essence of responsibility is the obligation of a subordinate to

perform the duty assigned. It always originates from the superior-
subordinate relationship.
Responsibility cannot be delegated. The person accepting responsibility

is accountable for the performance of assigned duties. It is hard to
conceive responsibility without authority. Determining exactly which
social responsibilities an organization should pursue and then deciding
how to pursue them are perhaps the two most critical decision-making
aspects of maintaining a high level of social responsiveness within an
organization. That is, managers must decide whether their organization
should undertake the activities on its own or acquire the help of
outsiders with more expertise in the area.
Authority
Authority is the right or power assigned to an executive or a manager in

order to achieve certain organizational objectives. A manager will not
be able to function efficiently without proper authority. Authority is the
genesis of organizational framework. It is an essential accompaniment
of the job of management. Without authority, a manager ceases to be a
manager, because he cannot get his policies carried out through others.
Authority is one of the founding stones of formal and informal
organizations. An Organization cannot survive without authority. It
indicates the right and power of making decisions, giving orders and
instructions to subordinates. Authority is delegated from above but must
be accepted from below i.e. by the subordinates. In other words,
authority flows downwards. According to Henri Fayol, "Authority is the
right to give orders and the power to exact obedience." According to
Mooney "Authority is the principle at the root of Organization and so
important that it is impossible to conceive of an Organization at all
unless some person or persons are in a position to require action of
others."
3.Main functions of human resources management
Human resources are the people who work for an organization. The
skills they possess and their knowledge of the work system are i
Recruitment And Selection
Recruitment is the process of captivating, screening, and selecting

potential and qualified candidates based on objective criteria for a
particular job. The goal of this process is to attract the qualified
applicants and to encourage the unqualified applicants to opt themselves
out. nvaluable to managers.
Orientation
Many organizations do not provide a thorough orientation to the new

employees. This is the fundamental step to help a new employee to
adjust himself with the employer and with his new job. Employee
orientation program should include the objectives and goals of the
organization and how the employee can help to achieve the long-term
and short-term goals of the organization.
Maintaining Good Working Conditions

It is the responsibility of human resource management to provide good
working conditions to the employee so that they may like the workplace
and the work environment. It is the fundamental duty of the HR
department to motivate the employees. The study has been found that
employees don’t contribute to the goals of the organization as much as
they can. This is because of the lack of motivation.
Managing Employee Relations
Employees are the pillars of any organization. Employee relationship is

a very broad concept and it is one of the crucial functions of human
resource management. It also helps to foster good employee relations.
They have the ability to influence behaviors and work outputs.
Training And Development
Training and development are the indispensable functions of human

resource management. It is the attempt to improve the current or future
performance of an employee by increasing the ability of an employee
through educating and increasing one’s skills or knowledge in the
particular subject.
4)Give a brief description of needs motivation theories.
Motivation is the word derived from the word ’motive’ which means
needs, desires, wants or drives within the individuals. It is the process of
stimulating people to actions to accomplish the goals. In the work goal
context the psychological factors stimulating the people’s behavior can
be:
• desire for money
• success
• recognition
• job-satisfaction
• team work
Maslow's hierarchy of needs is a motivational theory in psychology

comprising a five-tier model of human needs, often depicted as
hierarchical levels within a pyramid. Needs lower down in the hierarchy
must be satisfied before individuals can attend to needs higher up. From
the bottom of the hierarchy upwards, the needs are: physiological,
safety, love and belonging, esteem and self-actualization.
The needs have been classified into the following in order:
Physiological needs- These are the basic needs of an individual which

includes food, clothing, shelter, air, water, etc. These needs relate to the
survival and maintenance of human life.
Safety needs- These needs are also important for human beings.
Everybody wants job security, protection against danger, safety of
property, etc.
Social needs- These needs emerge from society. Man is a social animal.
These needs become important. For example- love, affection,
belongingness, friendship, conversation, etc.
Esteem needs- These needs relate to desire for self-respect, recognition

and respect from others.
Self-actualization needs- These are the needs of the highest order and
these needs are found in those person whose previous four needs are
satisfied. This will include need for social service, meditation.
5)What is the essence of procedural approaches to motivation
Bilet 16
1)Barriers to Effective Communication
To lead others, you must demonstrate effective communication skills. .

Otherwise, a manager will lack the credibility to implement his
employer's objectives, and struggle to rally worker teams behind them.
Managers who communicate well are also more likely to become good
problem solvers. Effective communications skills are a must for
breaking down barriers, which promotes the collaborative atmosphere
that an organization needs to thrive.
2)External environment and its influence on activity of organization
External Environment of Organization
In a simple way factor outside or organization are the elements of the

external environment. The organization has no control over how the
external environment elements will shape up.
The external environment can be subdivided into 2 layers: the general

environment and the task environment.
• General Environment
• Task Environment
General Environment of Organization

The general environment consists of factors that may have an
immediate direct effect on operations but nevertheless influences the
activities of the firm. The dimensions of the general environment are
broad and non-specific whereas the dimensions of the task environment
are composed of the specific organization.
Let’s see the elements or dimensions of the general environment:

Economic Dimension, Technological Dimension, Socio-cultural
dimension etc.
The task environment consists of factors that directly affect and are
affected by the organization’s operations. These factors include
suppliers, customers, competitors, regulators and so on. A manager can
identify environmental factors of specific interest rather than having to
deal with a more abstract dimension of the general environment.
The different elements of the task environment may be discussed as

under: Competitors, Customers, Suppliers, Regulators
3)Effective leadership Skills
Master Your Time: Effective leaders will always be in a position to

manage their time well. They would know how to prioritize list of
activities / pending tasks.
’important’. Remember, not everything that is urgent is important. Also,
not everything that is important is urgent.
Ask Questions: Leaders will ask questions that help them assess
employees’ contribution to the organization and also help employees
understand how better they can contribute towards organizational goals.
A Leader must ask his / her employees - the task they perform, do they
feel their task is linked to the big picture, and is there anything that
comes in the way of their performance.
Provide Work-Life Balance: In today’s world where working hours

are on a rise, an effective leader must ensure that his / her workers are
able to maintain a balance between their personal and professional lives.
Effective leaders should always lead by example by leaving on time,
avoiding meetings during Fridays or end of the business days, not
calling employees on their day off. Remember, an effective leader will
have effective followers only if they are not burnt out or feel they are
over worked.
Manage Employee’s Professional growth: An effective leader will

always chart out a personal development plan [PDP] along with his /
her employee. He would identify the training the employee will need to
go through keeping in mind his personal development plan. The
employees will feel encouraged and valued.
Create Talent Pool: Smart leaders will always be ready for any
shortage in staff. They will have their talent pool ready in case of any
crisis situation. They will ensure that every employee has a trained /
trainable back-up.
Be Courageous: As per Peter Drucker, “whenever you see a successful

business, someone once made a courageous decision”. An effective
leader will always be ready to take difficult / courageous decisions
when required.
Be Competent: The art of “tooting your own horn without blowing it”
is a delicate balance of demonstrating your “expertise” and “taking
credit” in a way that people notice their success. And one of the safest
ways to do it is to celebrate and bring attention to team achievements.
Praise people for good work, and when you do so, be specific on what
exactly you liked. Shaking hands is a gesture that will show them that
you are actually happy about their contribution and their success. And
thus, you will prove out your competence as a leader.
Be Visionary: What’s lying ahead in future is a topic of fascination
and has mystic charm. This is a trait of absolute confidence and should
be handled with care. It is important to make goals specific, with
possible outcomes and benefits, without making promises that you may
not be able to keep. A successful leader knows his goals and checks if
performance and goals are in symmetry.
4)Definition and importance of the PESTLE analysis
What is PESTLE Analysis? PESTLE analysis, which is sometimes

referred to as PEST analysis, is a concept in marketing principles.
Moreover, this concept is used as a tool by companies to track the
environment they’re operating in or are planning to launch a new
project/product/service, etc.
PESTLE is a mnemonic which in its expanded form denotes P for

Political, E for Economic, S for Social, T for Technological, L for
Legal, and E for Environmental. It gives a bird’s eye view of the whole
environment from many different angles that one wants to check and
keep a track of while contemplating a certain idea/plan.
5)Give a description of socio-psychological method of management
The purpose of socio-psychological management methods is the

cognition and use of the laws of people's mental activity for the
optimization of psychological phenomena and processes in the interests
of society and the individual. This is the unity, close connection and
interdependence of social and psychological management methods.
However, there is a difference between them: with the help of social
methods, relations in groups and between groups are managed; with the
help of psychological - management of the behavior of the individual
and interpersonal relations in the group.
The purpose of sociological methods is to manage the formation and

development of the collective, to create a positive social and
psychological climate in the team, to achieve optimal unity, to achieve a
common goal by ensuring the unity of interests, developing initiatives,
etc. Sociological methods are based on the needs, interests, motives,
goals and t.
Bilet 17
1)Fayol's 14 Principles of Management
Principles of management are crucial in administering an

organization. One of the earliest scientists of management Henri Fayol
has laid down 14 principles of management. These 14 principles
incorporate within them the rules and guidelines with which a
management should ideally function. 14 principles: Division of Work,
Authority and Responsibility, Discipline, Unity of Command, Unity
of Direction, Subordination of Individual Interest, Remuneration,
The Degree of Centralization, Scalar Chain, Order, equity,
Stability of Tenure of Personnel etc.
1. Division of Work
In practice, employees are specialized in different areas and they have

different skills. Different levels of expertise can be distinguished within
the knowledge areas (from generalist to specialist). Personal and
professional developments support this. According to Henri Fayol
specialization promotes efficiency of the workforce and increases
productivity. In addition, the specialization of the workforce increases
their accuracy and speed.
2. Authority and Responsibility
In order to get things done in an organization, management has the

authority to give orders to the employees. Of course with this authority
comes responsibility. According to Henri Fayol, the accompanying
power or authority gives the management the right to give orders to the
subordinates. The responsibility can be traced back from performance
and it is therefore necessary to make agreements about this. In other
words, authority and responsibility go together and they are two sides of
the same coin.
3. Discipline
This third principle of the 14 principles of management is about

obedience. It is often a part of the core values of a mission and vision in
the form of good conduct and respectful interactions. This management
principle is essential and is seen as the oil to make the engine of an
organization run smoothly.
4. Unity of Command
The management principle ‘Unity of command’ means that an

individual employee should receive orders from one manager and that
the employee is answerable to that manager. If tasks and related
responsibilities are given to the employee by more than one manager,
this may lead to confusion which may lead to possible conflicts for
employees. By using this principle, the responsibility for mistakes can
be established more easily.
5. Unity of Direction
This management principle of the 14 principles of management is all

about focus and unity. All employees deliver the same activities that can
be linked to the same objectives. All activities must be carried out by
one group that forms a team. These activities must be described in a
plan of action. The manager is ultimately responsible for this plan and
he monitors the progress of the defined and planned activities. Focus
areas are the efforts made by the employees and coordination.
6. Subordination of Individual Interest
There are always all kinds of interests in an organization. In order to

have an organization function well, Henri Fayol indicated that personal
interests are subordinate to the interests of the organization (ethics). The
primary focus is on the organizational objectives and not on those of the
individual. This applies to all levels of the entire organization, including
the managers.
7. Remuneration
Motivation and productivity are close to one another as far as the

smooth running of an organization is concerned. This management
principle of the 14 principles of management argues that the
remuneration should be sufficient to keep employees motivated and
productive. There are two types of remuneration namely nonmonetary
(a compliment, more responsibilities, credits) and monetary
(compensation, bonus or other financial compensation). Ultimately, it is
about rewarding the efforts that have been made.
8. The Degree of Centralization
Management and authority for decision-making process must be

properly balanced in an organization. This depends on the volume and
size of an organization including its hierarchy.
Centralization implies the concentration of decision making authority at

the top management (executive board). Sharing of authorities for the
decision-making process with lower levels (middle and lower
management), is referred to as decentralization by Henri Fayol. Henri
Fayol indicated that an organization should strive for a good balance in
this.
9. Scalar Chain
Hierarchy presents itself in any given organization. This varies from

senior management (executive board) to the lowest levels in the
organization. Henri Fayol’s “hierarchy” management principle states
that there should be a clear line in the area of authority (from top to
bottom and all managers at all levels). This can be seen as a type of
management structure. Each employee can contact a manager or a
superior in an emergency situation without challenging the hierarchy.
Especially, when it concerns reports about calamities to the immediate
managers/superiors.
10. Order
According to this principle of the 14 principles of management,
employees in an organization must have the right resources at their
disposal so that they can function properly in an organization. In
addition to social order (responsibility of the managers) the work
environment must be safe, clean and tidy.
11. Equity
The management principle of equity often occurs in the core values of

an organization. According to Henri Fayol, employees must be treated
kindly and equally. Employees must be in the right place in the
organization to do things right. Managers should supervise and monitor
this process and they should treat employees fairly and impartially.
12. Stability of Tenure of Personnel
This management principle of the 14 principles of management

represents deployment and managing of personnel and this should be in
balance with the service that is provided from the organization.
Management strives to minimize employee turnover and to have the
right staff in the right place. Focus areas such as frequent change of
position and sufficient development must be managed well.
13. Initiative
Henri Fayol argued that with this management principle employees

should be allowed to express new ideas. This encourages interest and
involvement and creates added value for the company. Employee
initiatives are a source of strength for the organization according to
Henri Fayol. This encourages the employees to be involved and
interested.
14. Esprit de Corps
The management principle ‘esprit de corps’ of the 14 principles of

management stands for striving for the involvement and unity of the
employees. Managers are responsible for the development of morale in
the workplace; individually and in the area of communication. Esprit de
corps contributes to the development of the culture and creates an
atmosphere of mutual trust and understanding.
2)Definition and importance of conflict management
Whenever two individuals opine in different ways, a conflict arises. In a

layman’s language conflict is nothing but a fight either between two
individuals or among group members. Conflict arises whenever
individuals have different values, opinions, needs, interests and are
unable to find a middle way. A conflict has five phases.
Prelude to conflict - It involves all the factors which possibly arise a

conflict among individuals. Lack of coordination, differences in
interests, dissimilarity in cultural, religion, educational background all
are instrumental in arising a conflict.
Triggering Event - No conflict can arise on its own. There has to be an

event which triggers the conflict. Jenny and Ali never got along very
well with each other. They were from different cultural backgrounds, a
very strong factor for possibility of a conflict. Ali was in the mid of a
presentation when Jenny stood up and criticized him for the lack of
relevant content in his presentation, thus triggering the conflict between
them.
Initiation Phase - Initiation phase is actually the phase when the

conflict has already begun. Heated arguments, abuses, verbal
disagreements are all warning alarms which indicate that the fight is
already on.
Differentiation Phase - It is the phase when the individuals voice out

their differences against each other. The reasons for the conflict are
raised in the differentiation phase.
Resolution Phase - A Conflict leads to nowhere. Individuals must try

to compromise to some extent and resolve the conflict soon. The
resolution phase explores the various options to resolve the conflict.
Conflicts can be of many types like verbal conflict, religious conflict,
emotional conflict, social conflict, personal conflict, organizational
conflict, community conflict and so on.
3)ERG theory of motivation and McClelland’s theory of Needs
ERG Theory
To bring Maslow’s need hierarchy theory of motivation in

synchronization with empirical research, Clayton Alderfer redefined it
in his own terms. His rework is called as ERG theory of motivation.
David McClelland and his associates proposed McClelland’s theory

of Needs / Achievement Motivation Theory. This theory states that
human behavior is affected by three needs - Need for Power,
Achievement and Affiliation. Need for achievement is the urge to excel,
to accomplish in relation to a set of standards, to struggle to achieve
success. Need for power is the desire to influence other individual’s
behavior as per your wish. In other words, it is the desire to have control
over others and to be influential. Need for affiliation is a need for open
and sociable interpersonal relationships. In other words, it is a desire for
relationship based on co-operation and mutual understanding.
The individuals with high achievement needs are highly motivated by

competing and challenging work. They look for promotional
opportunities in job. They have a strong urge for feedback on their
achievement. Such individuals try to get satisfaction in performing
things better. High achievement is directly related to high performance.
Individuals who are better and above average performers are highly
motivated.
4)Importance of Leadership
Leadership is a process by which an executive can direct, guide and

influence the behavior and work of others towards accomplishment of
specific goals in a given situation. Leadership is the ability of a manager
to induce the subordinates to work with confidence and zeal. Leadership
is the potential to influence behavior of others. It is also defined as the
capacity to influence a group towards the realization of a goal. Leaders
are required to develop future visions, and to motivate the
organizational members to want to achieve the visions. According to
Keith Davis, “Leadership is the ability to persuade others to seek
defined objectives enthusiastically. It is the human factor which binds a
group together and motivates it towards goals.”
In business, a vision is a realistic, convincing and attractive depiction of

where you want to be in the future. Vision provides direction, sets
priorities, and provides a marker, so that you can tell that you've
achieved what you wanted to achieve.
A compelling vision provides the foundation for leadership. But it's

leaders' ability to motivate and inspire people that helps them deliver
that vision.
5)Definition and steps of decision-making process
Decision-making is a truly fascinating science, incorporating

organizational behavior, psychology, sociology, neurology, strategy,
management, philosophy, and logic. The ability to make effective
decisions that are rational, informed, and collaborative can greatly
reduce opportunity costs while building a strong organizational focus.
As a prospective manager, effective decision-making is a central skill
necessary for success. This requires the capacity to weigh various paths
and determine the optimal trajectory of action.
Bilet 18
1)Give a description of the organization and the role of managers in
the organization.
Organization is a group of people intentionally organized to accomplish

an overall, common goal or a set of goals. It is management that
regulates man's productive activities through coordinated use of
material resources. Without the leadership provided by management,
the resources of production remain resources and never become
production. Management is the specific organ of all kinds of
organizations since they all need to utilize their limited resources most
efficiently and effectively for the achievement of their goals
All organizations exist for certain purposes or goals, and managers are
responsible for combining and using organizational resources to ensure
that their organizations achieve their purposes. Management moves an
organization toward its purposes or goals by assigning activities
organization members perform. Management strives to encourage
individual activity that will lead to reaching organizational goals and to
discourage individual activity that will hinder the accomplishment of
those goals. Because the process of management emphasizes the
achievement of goals, managers must keep organizational goals in mind
at all times.
2)Types of organizational structure
There are many types of organizational structures. There’s the more

traditional functional structure, the divisional structure, the matrix
structure and the flatarchy structure.
Functional structure
This kind of organizational structure classifies people according to the

function they perform in professional life. The functional structure is
based on an organization being divided up into smaller groups with
specific tasks or roles. For example, a company could have a group
working in information technology, another in marketing, finance,
engineering, manufacturing, etc.
 The organization is structured according to departments according

to one of three criteria: on output (product specialization), on consumer
orientation, on served regions.
 They group employees based on products, markets and geographic

location.
 Each divisions has its own functional units like research,

manufacturing, marketing, sales, finance, etc.
Product oriented structure - this structure is based on the organization

of employees and work around different products. If the company
produces three different products, then it will have three different units
for these products. This type of structure is best suited for retail stores
with a variety of products.
3)How do you consider, which of leadership skills are the most

essential (describe 4 leadership skill and the reason of why do you think
that they are important)
Master Your Time: Effective leaders will always be in a position to

manage their time well. They would know how to prioritize list of
activities / pending tasks.
’important’. Remember, not everything that is urgent is important. Also,
not everything that is important is urgent.
Ask Questions: Leaders will ask questions that help them assess
employees’ contribution to the organization and also help employees
understand how better they can contribute towards organizational goals.
A Leader must ask his / her employees - the task they perform, do they
feel their task is linked to the big picture, and is there anything that
comes in the way of their performance.
Create Talent Pool: Smart leaders will always be ready for any
shortage in staff. They will have their talent pool ready in case of any
crisis situation. They will ensure that every employee has a trained /
trainable back-up.
Be Courageous: As per Peter Drucker, “whenever you see a successful

business, someone once made a courageous decision”. An effective
leader will always be ready to take difficult / courageous decisions
when required.
4)Levels of management
Top managers are at the top of the hierarchy and are responsible for
the entire organization. They have such titles as president, chairperson,
executive director, chief executive officer (CEO), and executive vice
president. Top managers are responsible for setting organizational
goals, defining strategies for achieving them, monitoring and
interpreting the external environment, and making decisions that affect
the entire organization. They look to the long-term future and concern
themselves with general environmental trends and the organization’s
overall success. Top managers are also responsible for communicating a
shared vision for the organization, shaping corporate culture, and
nurturing an entrepreneurial spirit that can help the company innovate
and keep pace with rapid change.
Middle managers work at middle levels of the organization and are

responsible for business units and major departments. Examples of
middle managers are department head, division head, manager of
quality control, and director of the research lab. Middle managers
typically have two or more management levels beneath them. They are
responsible for implementing the overall strategies and policies defined
by top managers. Middle managers generally are concerned with the
near future rather than with long-range planning. The middle manager’s
job has changed dramatically over the past two decades. Many
organizations improved efficiency by laying off middle managers and
slashing middle management levels.
Traditional pyramidal organization charts were flattened to allow

information to flow quickly from top to bottom and decisions to be
made with greater speed. Exhibit 1.3 illustrates the shrinking middle
management. Yet even as middle management levels have been
reduced, the middle manager’s job has taken on a new vitality. Rather
than managing the flow of information up and down the hierarchy,
middle managers create horizontal networks that can help the
organization act quickly. Research shows that middle managers play a
crucial role in driving innovation and enabling organizations to respond
to rapid shifts in the environment.31As Ralph Stayer, CEO of
Johnsonville Sausage said, “Leaders can design wonderful strategies,
but the success of the organization resides in the execution of those
strategies. The people in the middle are the ones who make it work.
Lower managers is also known as supervisory / operative level of

management. It consists of supervisors, foreman, section officers,
superintendent etc. According to
R.C. Davis, “Supervisory management refers to those executives whose

work has to be largely with personal oversight and direction of
operative employees”. In other words, they are concerned with direction
and controlling function of management. Their activities include -
• They are responsible for the quality as well as quantity of

production.
• They are also entrusted with the responsibility of maintaining
good relation in the organization.
• They communicate workers problems, suggestions, and

recommendatory appeals etc. to the higher level and higher level goals
and objectives to the workers.
• They arrange necessary materials, machines, tools etc. for getting

the things done.
• They prepare periodical reports about the performance of the

workers.
• They are the image builders of the enterprise because they are in
direct contact with the workers.
5)The main purposes of the communication process
The importance of communication in an organization can be

summarized as follows:
1) Communication promotes motivation by informing and clarifying

the employees about the task to be done, the manner they are
performing the task, and how to improve their performance if it is not
up to the mark.
2) Communication is a source of information to the organizational
members for decision-making process as it helps identifying and
assessing alternative course of actions.
3) Communication also plays a crucial role in altering individual’s

attitudes, i.e., a well-informed individual will have better attitude than a
less-informed individual. Organizational magazines, journals, meetings
and various other forms of oral and written communication help in
molding employee’s attitudes.
4) Communication also helps in socializing. In today’s life the only

presence of another individual fosters communication. It is also said
that one cannot survive without communication.
5) As discussed earlier, communication also assists in controlling

process. It helps controlling organizational member’s behavior in
various ways. There are various levels of hierarchy and certain
principles and guidelines that employees must follow in an
organization. They must comply with organizational policies, perform
their job role efficiently and communicate any work problem and
grievance to their superiors. Thus, communication helps in controlling
function of management.
Bilet 19
1)Describe the main functions of management
We can say that management is the process of planning, organizing,

leading and controlling the efforts of organization members and of
using all other organizational resources to achieve stated organizational
goals.

organizations must do to be successful.
Organizing can be thought of as assigning the tasks developed under
the planning function to various individuals or groups within the
organization. Organizing, then, creates a mechanism to put plans into
action. People within the o Influencing is another of the basic functions
within the management process. This function—also commonly
referred to as motivating, leading, directing, or actuating—is concerned
primarily with people within organizations. rganization are given work
assignments that contribute to the company’s goals
1.Gather information that measures recent performance within the

organization.
2.Compare present performance to pre-established performance

standards.
3.From this comparison, determine whether the organization should be

modified to meet pre-established standards.
Controlling is an ongoing process. History shows that managers

commonly make mistakes when planning, organizing, influencing, and
controlling.
2)Maslow’s hierarchy of needs
Maslow’s hierarchy of needs into three simpler and broader classes of

needs:
• Existence needs- These include need for basic material

necessities. In short, it includes an individual’s physiological and
physical safety needs.
• Relatedness needs- These include the aspiration individuals have

for maintaining significant interpersonal relationships (be it with family,
peers or superiors), getting public fame and recognition. Maslow’s
social needs and external component of esteem needs fall under this
class of need.
• Growth needs- These include need for self-development and

personal growth and advancement. Maslow’s self-actualization needs
and intrinsic component of esteem needs fall under this category of
need.
3)Oral, written and non-verbal communication
Oral communication implies communication through mouth. It

includes individuals conversing with each other, be it direct
conversation or telephonic conversation. Speeches, presentations,
discussions are all forms of oral communication. Oral communication is
generally recommended when the communication matter is of
temporary kind or where a direct interaction is required. Face to face
communication (meetings, lectures, conferences, interviews, etc.) is
significant so as to build a rapport and trust.
Written communication has great significance in today’s business

world. It is an innovative activity of the mind. Effective written
communication is essential for preparing worthy promotional materials
for business development. Speech came before writing. But writing is
more unique and formal than speech. Effective writing involves careful
choice of words, their organization in correct order in sentences
formation as well as cohesive composition of sentences. Also, writing is
more valid and reliable than speech. But while speech is spontaneous,
writing causes delay and takes time as feedback is not immediate.
Non-verbal communication is communication that does not involve

words, such as body language, tone of voice, and gestures.
4)Types of conflicts in the workplace
Conflict arises whenever individuals have different values, opinions,

needs, interests and are unable to find a middle way.
1. Interdependence Conflicts
These types of conflict happen when a person relies on someone else's

co-operation, output, or input for them to get their job done. For
example, a sales-person is always late inputting the monthly sales
figures. This causes the accountant to be late with her reports.
Interdependence conflicts can often be overcome by ensuring that:
people have a good handle on delegation skills (yes you can delegate
across and up, not just down
that people are well trained in how to have challenging conversations
that consequences (natural and imposed) are used. For example the
salesperson who is late with his or her input could have a bonus
reduction (imposed).
2. Differences in Styles
Conflict often happens because people have differing preferences on

how to get things done. For example, one person may want to get the
work done quickly (task oriented) and get on to the next thing as fast as
possible. While another person is more concerned about making sure
that everyone has a say in how the work gets done (people oriented).
You can hose down a lot of potential conflicts when you are trained in
how to understand, and successfully navigate your way through style
differences, (and make no mistake, style differences generally lead to
personality conflicts).
3. Differences in Background/Gender
Conflicts can arise between people because of differences in age,

educational backgrounds, personal experiences, ethnic heritage, gender,
and political preferences. Here's an interview I did with Barbara Annis,
on gender diversity and inclusiveness. There are some great tips in the
interview to help you make the most of gender differences.
4. Differences in Leadership Style
Leaders have different ways of leading their teams. Team members who
have to deal with various leaders throughout a day, can become
confused and irritated by these different ways of being led. For
example, one leader may be more open and inclusive, while another
may be more directive.
To avoid this type of disruption make sure that your leadership team
puts together a robust set of principles and values. Then, most
importantly, they use them to provide consistency in how they make
decisions, and involve people in the business.
5. Personality Clashes
Personality clashes are often the biggest cause of conflict in the

workplace.These types of conflict in the workplace are often ignited by
emotions and perceptions about somebody else's motives and character.
For example, a team leader jumps on someone for being late, because
she views the team member as being lazy and disrespectful. The team
member sees the team leader as out to 'get' him because he isn't one of
the 'favored children'.
5)Definition and importance of the SWOT analysis
SWOT is an acronym for Strengths, Weaknesses, Opportunities and

Threats. By definition, Strengths (S) and Weaknesses (W) are
considered to be internal factors over which you have some measure of
control. Also, by definition, Opportunities (O) and Threats (T) are
considered to be external factors over which you have essentially no
control.
SWOT Analysis is the most renowned tool for audit and analysis of the
overall strategic position of the business and its environment. Its key
purpose is to identify the strategies that will create a firm specific
business model that will best align an organization’s resources and
capabilities to the requirements of the environment in which the firm
operates.
Bilet 20
1)Definition and importance of Communication
To lead others, you must demonstrate effective communication skills.

Otherwise, a manager will lack the credibility to implement his
employer's objectives, and struggle to rally worker teams behind them.
Managers who communicate well are also more likely to become good
problem solvers, which is an essential skill to function well in an
international workplace where diversity is increasingly the norm.
Employees who show an aptitude for verbal and written communication
communication between managers and employees is requisite for a
well-functioning workplace.
The importance of communication in an organization can be
summarized as follows:
1) Communication promotes motivation by informing and clarifying

the employees about the task to be done, the manner they are
performing the task, and how to improve their performance if it is not
up to the mark.
2) Communication is a source of information to the organizational

members for decision-making process as it helps identifying and
assessing alternative course of actions.
3) Communication also plays a crucial role in altering individual’s

attitudes, i.e., a well-informed individual will have better attitude than a
less-informed individual. Organizational magazines, journals, meetings
and various other forms of oral and written communication help in
molding employee’s attitudes.
4) Communication also helps in socializing. In today’s life the only

presence of another individual fosters communication. It is also said
that one cannot survive without communication.
5) As discussed earlier, communication also assists in controlling

process. It helps controlling organizational member’s behavior in
various ways. There are various levels of hierarchy and certain
principles and guidelines that employees must follow in an
organization. They must comply with organizational policies, perform
their job role efficiently and communicate any work problem and
grievance to their superiors. Thus, communication helps in controlling
function of management.
2)Methods of Motivating People
A compelling vision provides the foundation for leadership. But it's

leaders' ability to motivate and inspire people that helps them deliver
that vision. For example, when you start a new project, you will
probably have lots of enthusiasm for it, so it's often easy to win support
for it at the beginning. However, it can be difficult to find ways to keep
your vision inspiring after the initial enthusiasm fades, especially if the
team or organization needs to make significant changes in the way that
it does things. One of the key ways they do this is through Expectancy
Theory . Effective leaders link together two different expectations:
• The expectation that hard work leads to good results.
• The expectation that good results lead to attractive rewards or

incentives.
This motivates people to work hard to achieve success, because they

expect to enjoy rewards – both intrinsic and extrinsic – as a result.
3)Expectancy theory of motivation (Vrooms theory)
Vroom's expectancy theory assumes that behavior results from

conscious choices among alternatives whose purpose it is to maximize
pleasure and to minimize pain. Vroom realized that an employee's
performance is based on individual factors such as personality, skills,
knowledge, experience and abilities. He stated that effort, performance
and motivation are linked in a person's motivation. He uses the
variables Expectancy, Instrumentality and Valence to account for this.
Expectancy is the belief that increased effort will lead to increased

performance i.e. if I work harder then this will be better. This is affected
by such things as:
•Having the right resources available (e.g. raw materials, time)
•Having the right skills to do the job
•Having the necessary support to get the job done (e.g. supervisor
support, or correct information on the job)
4)What is the SMART goals?
5)What is formal and informal communication? Give examples of

each type of communication and characterize their impact on the
employee motivation.
BASIS FOR FORMAL INFORMAL
COMPARISO ORGANIZATION ORGANIZATION

N
Meaning An organization type in An organization formed

which the job of each within the formal
member is clearly organization as a network
defined, whose authority, of interpersonal
responsibility and relationship, when people
accountability are fixed is interact with each other, is
formal organization. known as informal
communication.
Creation Deliberately by top Spontaneously by

management. members.
Purpose To fulfill, the ultimate To satisfy their social and

objective of the psychological needs.
organization.
Nature Stable, it continues for a Not stable

long time.
Communication Official communication Grapevine
Control Rules and Regulations Norms, values and beliefs

mechanism
Focus on Work performance Interpersonal relationship
Authority Members are bound All members are equal.

by hierarchical
structure.
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Bilet 1

1) Evolution of management thought

Organization is a group of people intentionally organized to accomplish an overall,

3) Definitions and Importance of Leadership

External Environment of Organization

Comparison of actual and standard performance - Comparison of actual

3. It is also valuable to understand that, within the strategic and operational

Interdependence conflicts can often be overcome by ensuring that:

A strategy is all about integrating organizational activities and utilizing and

Strategic Management is all about identification and description of the strategies

Strategic management is nothing but planning for both predictable as well as

Strategic management is a continuous process that evaluates and controls the

Strategic Management gives a broader perspective to the employees of an

5) What is formal and informal communication? Give examples of each type of

BASIS FOR FORMAL INFORMAL

Creation Deliberately by top Spontaneously by members.

Purpose To fulfill, the ultimate To satisfy their social and

Nature Stable, it continues for a long Not stable

Communication Official communication Grapevine

Control Rules and Regulations Norms, values and beliefs

Focus on Work performance Interpersonal relationship

Authority Members are bound All members are equal.

1) Context - Communication is affected by the context in which it

4)Give a description of socio-psychological method of management

The purpose of socio-psychological management methods is the cognition and

5)The main steps of controlling process

Controlling is the fourth function in the management process. Controlling means

performance without maintaining daily authoritarian control over employees.

Controlling is the management function through which managers:

1. Gather information that measures recent performance within the

2. Compare present performance to pre-established performance standards.

3. From this comparison, determine whether the organization should be

Controlling is an ongoing process. Managers continually gather information,

1)Give a description of economic method of management

Economic management methods - a set of methods and methods of

Economic methods of management Table 1

Methods regulated by the enterprise Economic standards of the enterprise;

These standards should be developed on the basis of the results of marketing

2) Definition and importance of the SWOT analysis

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By

3) Types of decisions in business

Every organization needs to make decisions at one point or other as part of

• The potential negative consequences of selecting any alternative

Most decisions consist of problem-solving activities that end when a satisfactory

4)Organization of responsibility as a factor in the effectiveness of

A responsibility - it is the employee's obligation to perform all the work and

5) Types of the controlling

Traditional Types of Control Techniques in Management

 Financial Ratio Analysis

Budgeting simply means showcasing plans and expected results using

A budget basically helps in understanding and expressing expected

Standard costing is similar to budgeting in the way that it relies on

Financial Ratio Analysis

Every business organization has to depict its financial performances

Comparative studies of financial statements showcase standards like

Another popular traditional type of control technique is internal

Generally, the scope of an internal audit is narrow and it relates to

Managers often use break-even analysis to determine the minimum

The use of statistical tools is a great way to understand an

1) Benefits and limitations of planning

Planning involves choosing tasks that must be performed to attain

2) Factors, affecting to the decision-making process