Pir Meher Ali Shah

Arid Agriculture University, Rawalpindi

Office of the controller of Examinations
Mid Exam / FALL 2020 (Paper Duration 24 hours)
To be filled by Teacher

Course No.: MGT-411 Course Title: Introduction to Management

Total Marks: 18 Date of Exam:
Degree/Semester/Section: BSSE-3
Total Marks in Words:
Name of the teacher: Muhammad Mobeen
Who taught the course: Signature of teacher / Examiner:

To be filled by Student

Registration No.: 19-Arid-1191 Name: Humna Zaheer

Answer the following questions.

Q.No.1:
a) Discuss how managers define organizational purpose. How would the managerial
functions help in achieving that purpose? And give example of how McDonald’s might
perform the interpersonal roles, the informational roles, and the decisional roles. (4
Marks)

Answer: In carrying out the responsibilities of planning, organizing, leading, and

controlling, managers take on many different roles. A role is a set of behavioral expectations,
or a set of activities that a person is expected to perform. Managers’ roles fall into three basic
categories :
informational roles.
interpersonal roles,
decisional roles.
In an informational role, the manager may act as an information gatherer,an information
distributor, or a spokesperson for the company.
A manager’s interpersonal roles are based on various interactions with other people.
Depending on the situation, a manager may need to act as a figurehead, a company leader, or
a liaison.
a decisional role, a manager may have to think like an entrepreneur, make decisions about
resource allocation, help resolve conflicts, or negotiate compromises.
function of managers is organizing, which is the process of coordinating and allocating a
firm’s resources to carry out its plans. Organizing includes developing a structure for the
 people, positions, departments, and activities within the firm. Managers can arrange the
structural elements of the firm to maximize the flow of information and the efficiency of
work processes. They accomplish this by doing the following:
Dividing up tasks (division of labour)
Grouping jobs and employees (departmentalization)
Assigning authority and responsibilities (delegation)
Example:

The Roles Managers Play in an McDonald’s company :

Information Roles
Monitor
 Seeks out and gathers information relevant to the company

 Finding out about legal restrictions on new product

Disseminator
 Provides information where it is needed in the organization

 Providing current production figures to workers on the assembly line

Spokesperson
 Transmits information to people outside the company

 Representing the company at a shareholders’ meeting

Interpersonal Roles
Figurehead
 Represents the company in a symbolic way

 Cutting the ribbon at ceremony for the opening of a new building

Leader
 Guides and motivates employees to achieve company goals

 Helping subordinates to set monthly performance goals

Liaison
 Acts as a go-between among individuals inside and outside the company

 Representing the retail sales division of the company at a regional sales meeting

Decisional Roles
Entrepreneur
 Searches out new opportunities and initiates change

 Implementing a new production process using new technology

Disturbance handler
 Handles unexpected events and crises
 Handling a crisis situation such as a fire

Resource allocator
 Designates the use of financial, human, and other company resources

 Approving the funds necessary to purchase computer equipment and hire personnel.

Negotiator
 Represents the company at negotiating processes

 Participating in salary negotiations with union representatives

b) What is the scientific Management? And what are the principles of Scientific
Management. Explain the Fayol’s principles with the example of any management of
organization? (6 Marks)
Answer: SCIENTIFIC MANAGEMENT: is an attitude and a philosophy which discards the
traditional hit-and-miss and rule-of-thumb method of managing work and workers; it means
the acceptance and application of the method of scientific investigation for the solution of the
problems of industrial management.
The principles of scientific management:
1.  Science, Not Rule of Thumb
2. Harmony, Not Discord
3. Mental Revolution
4. Cooperation, Not Individualism
5. Development of each and every person to his or her greatest efficiency and prosperity
FAYOL PRINCIPAL WITH EXAMPLE OF MANAGEMENT OF
ORGANIZATION:
1. Division of Work-

Henri believed that segregating work in the workforce amongst the worker will enhance the
quality of the product. Similarly, he also concluded that the division of work improves the
productivity, efficiency, accuracy and speed of the workers. This principle is appropriate for
both the managerial as well as a technical work level.

2. Authority and Responsibility-

These are the two key aspects of management. Authority facilitates the management to work
efficiently, and responsibility makes them responsible for the work done under their guidance
or leadership.

3. Discipline-

Without discipline, nothing can be accomplished. It is the core value for any project or any
management. Good performance and sensible interrelation make the management job easy
and comprehensive. Employees good behaviour also helps them smoothly build and progress
in their professional careers.

4. Unity of Command-

This means an employee should have only one boss and follow his command. If an employee
has to follow more than one boss, there begins a conflict of interest and can create confusion.

5. Unity of Direction-

Whoever is engaged in the same activity should have a unified goal. This means all the
person working in a company should have one goal and motive which will make the work
easier and achieve the set goal easily.

6. Subordination of Individual Interest-

This indicates a company should work unitedly towards the interest of a company rather than
personal interest. Be subordinate to the purposes of an organization. This refers to the whole
chain of command in a company.

7. Remuneration-

This plays an important role in motivating the workers of a company. Remuneration can be
monetary or non-monetary. However, it should be according to an individual’s efforts they
have made.

8. Centralization-

In any company, the management or any authority responsible for the decision-making
process should be neutral. However, this depends on the size of an organization. Henri Fayol
stressed on the point that there should be a balance between the hierarchy and division of
power.

9. Scalar Chain-

Fayol on this principle highlights that the hierarchy steps should be from the top to the
lowest. This is necessary so that every employee knows their immediate senior also they
should be able to contact any, if needed.

10. Order-

A company should maintain a well-defined work order to have a favourable work culture.
The positive atmosphere in the workplace will boost more positive productivity.

11. Equity-

All employees should be treated equally and respectfully. It’s the responsibility of a manager
that no employees face discrimination.

12. Stability-

An employee delivers the best if they feel secure in their job. It is the duty of the management
to offer job security to their employees.
13. Initiative-

The management should support and encourage the employees to take initiatives in an
organization. It will help them to increase their interest and make then worth.

14. Esprit de Corps-

It is the responsibility of the management to motivate their employees and be supportive of

each other regularly. Developing trust and mutual understanding will lead to a positive
outcome and work environment.

This 14 principles of management are used to manage an organization and are beneficial for
prediction, planning, decision-making, organization and process management, control and
coordination.

Q.No.2
a) What is downside of parochialism, can it be somehow useful attitude for the organization.
(3 Marks)

Answer: Parochialism can affect any size business, small or large. Parochialism can exist
inside a business or it can influence how the business operates in the world at large.
In a small business, people perform many duties.
As the business begins to expand, departments form for specific functions like legal,
marketing, and accounting. With each department comes new rules, and sometimes the
departments become their own little kingdoms and lose sight of the overall mission of the
company. When department heads become more concerned with what's good for their
department versus what's good for the company, they are taking a parochial view.
In addition to departments taking an inward view, managers can also be tone-deaf to diversity
throughout the company. If a manager makes decisions that ignore the cultural impact on
employees, resentment and cynicism can grow within the ranks. Managers have to be aware
that different people have different ways of working and living.

b) To address the global challenges what type of attitude helpful to the managers. Illustrate
your argument with at least five global challenges and how to address them (5 Marks)
.
Answer: Managers who actually lead global teams are up against stiff challenges. Creating
successful work groups is hard enough when everyone is local and people share the same office
space. But when team members come from different countries and functional backgrounds and
are working in different locations, communication can rapidly deteriorate, misunderstanding can
ensue, and cooperation can degenerate into distrust.
The modes of communication used by global teams must be carefully considered, because the
technologies can both reduce and increase social distance. Videoconferencing, for instance,
allows rich communication in which both context and emotion can be perceived. E-mail offers
greater ease and efficiency but lacks contextual cues. In making decisions about which
technology to use, a leader must ask the following:
 Ethical Business Practices: the most substantial of the challenges faced by, ethical
business practices in areas such as labor, product safety, environmental stewardship,
corruption, and regulatory compliance have historically played a dramatic role in the
success or failure of global players. For example, Nike’s brand image was hugely
 damaged by reports that it utilized sweatshops and low-wage workers in developing
countries. In some nations, particularly those without a strong rule of law, bribing
public officials is relatively common by those seeking favorable business terms.
Although national and international laws exist to crack down on bribery and corruption,
some business people and organizations are pressured to go along with locally accepted
practices. Maintaining the highest ethical standards while operating in any nation is an
important consideration for all
 Organizational Structure: Another significant hurdle is the ability to efficiently and
effectively incorporate new regions within the value chain and corporate structure.
International expansion requires enormous capital investments in many cases, along
with the development of a specific strategic business unit (SBU) in order to manage
these accounts and operations. Finding a way to capture value despite this fixed
organizational investment is an important initiative for global corporations.
 Public Relations: Public image and branding are critical components of most
businesses. Building this public relations potential in a new geographic region is an
enormous challenge, both in effectively localizing the message and in the capital
expenditures necessary to create momentum.

THE END