Management Theory and Practice

MANAGEMENT THEORY AND PRACTICE
INTRODUCTION TO MANAGEMENT
Q 1.HOW MANAGEMENT IS CONSIDERED AS SCIENCE AND AS AN ART?

JUSTIFY WITH EXAMPLES. HOW IT IS BOTH USED AS SCIENCE AND AN ART?
A manager to be successful in his profession must acquire the knowledge of science & the art of
applying it. Therefore management is a judicious blend of science as well as an art because it
proves the principles and the way these principles are applied is a matter of art. Science teaches
to ‘know’ and art teaches to ‘do’. E.g. A person cannot become a good singer unless he has
knowledge about various ragas & he also applies his personal skill in the art of singing. Same
way it is not sufficient for manager to first know the principles but he must also apply them in
solving various managerial problems that is why, science and art are not mutually exclusive but
they are complementary to each other (like tea and biscuit, bread and butter etc.).
The old saying that “Manager are Born” has been rejected in favor of “Managers are Made”. It
has been aptly remarked that management is the oldest of art and youngest of science. To
conclude, we can say that science is the root and art is the fruit.
Management as Science
Yes, Science is a systematic body of knowledge pertaining to a specific field of study that
contains general facts which explains a phenomenon. It establishes cause and effect relationship
between two or more variables and underlines the principles governing their relationship. These
principles are developed through scientific method of observation and verification through
testing.
Science is characterized by the following main features:
1. Universally acceptance principles – Scientific principles represents basic truth about a
particular field of enquiry. These principles may be applied in all situations, at all time & at all
places. E.g. – law of gravitation which can be applied in all countries irrespective of the time.
Management also contains some fundamental principles which can be applied universally like
the Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type
of organization – business or non business.
2. Experimentation & Observation – Scientific principles are derived through scientific
investigation & researching i.e. they are based on logic. E.g. the principle that earth goes round
the sun has been scientifically proved. Management principles are also based on scientific
enquiry & observation and not only on the opinion of Henry Fayol. They have been developed
through experiments & practical experiences of large number of managers. E.g. it is observed
that fair remuneration to personal helps in creating a satisfied work force.
3. Cause & Effect Relationship – Principles of science lay down cause and effect relationship
between various variables. E.g. when metals are heated, they are expanded. The cause is heating
& result is expansion. The same is true for management; therefore it also establishes cause and
effect relationship. E.g. lack of parity (balance) between authority & responsibility will lead to
ineffectiveness. If you know the cause i.e. lack of balance, the effect can be ascertained easily -in
effectiveness. Similarly if workers are given bonuses, fair wages they will work hard but when
not treated in fair and just manner, reduces productivity of organization.
4. Test of Validity & Predictability – Validity of scientific principles can be tested at any time or
any number of times. They stand the test of time. Each time these tests will give same result.
Moreover future events can be predicted with reasonable accuracy by using scientific principles.
E.g. hydrogen & oxygen will always give water.
Principles of management can also be tested for validity. E.g. principle of unity of command can
be tested by comparing two persons – one having single boss and one having 2 bosses. The
performance of 1st person will be better than 2nd. It cannot be denied that management has a
systematic body of knowledge but it is not as exact as that of other physical sciences like
biology, physics, and chemistry etc. The main reason for the inexactness of science of
management is that it deals with human beings and it is very difficult to predict their behavior
accurately. Since it is a social process, therefore it falls in the area of social sciences. It is a
flexible science & that is why its theories and principles may produce different results at
different times and therefore it is a behavioral science. Ernest Dale has called it as a Soft
Science.
Management as Art
Art implies the application of knowledge & skill to trying about desired results. Art may be
defined as a personalized application of general theoretical principles for achieving the best
possible results.
Art has the following characters –
1. Practical Knowledge: Every art requires practical knowledge therefore learning of theory is
not sufficient. It is very important to know the practical application of theoretical principles. E.g.
to become a good painter, the person may not only be knowing different colors and brushes but
different designs, dimensions, situations, etc to use them appropriately. A manager can never be
successful just by obtaining a degree or diploma in management; he must have also know how to
apply various principles in real situations by functioning in the capacity of a manager.
2. Personal Skill: Although the theoretical base may be the same for every artist, each one has his
own style and approach towards his job. That is why the level of success and quality of
performance differs from one person to another. E.g. there are several qualified painters but M.F.
Hussain is recognized for his style. Similarly, management as an art is also personalized. Every
manager has his own way of managing things based on his knowledge, experience, and
personality, that is why some managers are known as good managers (like Aditya Birla, Rahul
Bajaj) whereas others as bad.
3. Creativity: Every artist has an element of creativity in line. That is why he aims at producing
something that has never existed before which requires a combination of intelligence &
imagination. Management is also creative in nature like any other art. It combines human and
non-human resources in a useful ways so as to achieve desired results. It tries to produce sweet
music by combining chords in an efficient manner.
4. Perfection through practice: Practice makes a man perfect. Every artist becomes more and
more proficient through constant practice. Similarly, managers learn through the art of trial and
error initially but the application of management principles over the years makes them perfect in
the job of managing.
5. Goal-Oriented: Every art is result-oriented as it seeks to achieve concrete results. In the same
manner, management is also directed towards the accomplishment of pre-determined goals.
Managers use various resources like men, money, material, machinery & methods to promote
growth of an organization. Thus, we can say that management is an art therefore it requires
application of certain principles rather it is an art of highest order because it deals with molding
the attitude and behavior of people at work towards desired goals.
6. Work by effectively. manager manage all problem in every environment so this is not science,
it is an art that how he manage every problem of organization in every environment.
Management as both Science and Art

Management is both an art and a science. The above mentioned points clearly reveals that
management combines features of both science as well as art. It is considered as a science
because it has an organized body of knowledge which contains certain universal truth. It is called
an art because managing requires certain skills which are personal possessions of managers.
Science provides the knowledge & art deals with the application of knowledge and skills. A
manager to be successful in his profession must acquire the knowledge of science & the art of
applying it. Therefore management is a judicious blend of science as well as an art because it
proves the principles and the way these principles are applied is a matter of art. Science teaches
to ’know’ and art teaches to ’do’. Example. a person cannot become a good singer unless he has
knowledge about various ragas & he also applies his personal skill in the art of singing. Same
way it is not sufficient for manager to first know the principles but he must also apply them in
solving various managerial problems that is why, science and art are not mutually exclusive but
they are complementary to each other (like tea and biscuit, bread and butter etc.). The old saying
that “Manager are Born” has been rejected in favor of “Managers are Made”. It has been aptly
remarked that management is the oldest of art and youngest of science. To conclude, we can say
that science is the root and art is the fruit.
QUES 2. STATE THE ROLE OF MANAGEMENT.
Management is an indispensable element for the establishment of proper functioning and success
of all organization’s social, political, religious, charitable or business units. If effectively and
efficiently organizes and utilizes the human and non-human resources and directs them towards
the accomplishment of organizational goals. The importance of management in modern business
is very Big but first, we learn what is the role of management of our society.
QUES 2: WHAT IS THE ROLE OF MANAGEMENT IN SOCIETY?
In the Industrial society the role of Management may be viewed from the following:
1. Co-ordination of Different Factors
In large organizations, hundreds of thousands of people work together under the same roof in an
organized manner to achieve the organization’s goal. Organizations depend on group efforts. No
individual can do much for the organization with his own efforts alone. People at work in an
organization assemble or produce certain goods or services according to the direction of the
management. The management coordinates the efforts of all factors of production. It needs to
guide and direct people.
2. Achievement of Objectives
Management is an indispensable element for the establishment of proper functioning and success
of all organization’s social, political, religious, charitable or business units. If effectively and
efficiently organizes and utilizes the human and non-human resources and directs them towards
the accomplishment of organizational goals.
3. Make of Proper Organisation Climate

The good working climate is a must for people to perform their tasks and responsibilities
enthusiastically and economically. Management is an indispensable element for the
establishment of proper functioning and success of all organization’s social, political, religious,
charitable or business units. If effectively and efficiently organizes and utilizes the human and
non-human resources and directs them towards the accomplishment of organizational goals.
4. Increasing Productivity
The main objective of an organization is to maximize its profits by reducing the cost factor in
production. The human factor in an industry is the most effective factor of production. Unless, it
is satisfied and its attitude is favorable to work and Organisation, productivity cannot be
increased. Management is the activating agent for getting the work done through its personal.
The management must see that people are motivated to work so that productivity increases.
5. Facing Competition
Today production is done on a large scale basis to cope with increasing demand for goods and
services at the national and international levels. Accordingly, the size of the market has also
enlarged. This has increased competition in the market. The increasing competition requires
efficient and effective handling of men and materials. Management must mastermind its affairs
to produce quality goods at a low cost. This calls for better management.
6. Modern Scientific and Technical Inventions
The new development in methods and machines has made the production process more Complex
resulting in increasing importance of Machines and methods which has reduced the importance
of men in the production process. As complications have developed in managing the affairs,
efficient management is needed to meet the situation effectively.
7. Creating of Good Organizational Structure
People in an enterprise must be properly organized into well-constituted purposeful groups in
order to create cooperation and coordination in their thinking and activities.
8. Exercising a Positive Influence
Management should provide dynamic leadership that combines productive resources into
a fruitful organization. It adapts its self to exciting opportunities, restrictions, and presses. It
exercises a positive influence to make future events favorable to the Enterprise. To get the
expected results the management has to see things happen as they should. Through innovations,
management forges ahead in the operating situation and adopting farsighted planning.
Visualizing the future, it initiates changes and achieves the purpose of the enterprise under
highly dynamic conditions.
9. Adding to Real Value
Management acts as a creative and invigorating force in the organization. It adds a real plus
value to the operation of any enterprise by enlisting a little extra value out of each person. It
provides new ideas, imaginations, and visions to the group working. It integrates its efforts in
such a manner as to account for better results, by focusing on strong points, neutralizing weak
points, overcoming difficulties and establishing Team Spirit. Social welfare depends upon the
quality of Management prevailing in an organization
10. Necessary to all Organization
Not only the business organizations but the non-business organization like educational, religious,
charitable, and other social organizations also need management. The government at all levels
nice management as much as other organizations need it. Management is found everywhere as a
distinct, separate and dominant activity. It is the prime institution in an organization and its role
cannot be undermined.
11. Proper Running of Business
Management successfully leads and motivates the workers to put their maximum efforts, skills,
ability, and experience in performing their duties and responsibilities.
QUES 3. DISCUSS THE NATURE AND PURPOSE OF MAANGEMENT.
Management is an important factor for the success of any organized activity. Today management
basically concern with changes and challenges, and it is difficult to manage. Management is an
art of getting things done through others. Management is to plan, organize, direct and control the
resources of the organization for obtaining common objectives or goals. It is related with
resources like material, money, machinery, methods, manufacturing and marketing. Management
principles are universal in nature. Management is necessary for all types of organization, such as
public sector, private sector, govt. department, hotel, hospital, hostels, educational institutes,
require management for several growth and expansion.
Definitions:
1) According to Taylor:- “Management is the art of knowing what you want to do and then
seeing that it is done in the best and cheapest way.”
2) According to Lawrence:- “Management is the accomplishment of results through the efforts of
other people.”
3) According to Henry Fayol:- “To manage is to forecast and to plan, to organize, to co-ordinate
and to control.”
Nature of Management:
 Universal Process: Wherever there exists human pursuit, there exists management.
Without effective management, the intentions of the organisation cannot be
accomplished.
 The factor of Production: Equipped and experienced managers are necessary for the
utilisation of funds and labour.
 Goal-Oriented: The most significant aim of all management pursuit is to achieve the
purposes of a firm. The aims must be practical and reachable.
 Supreme in Thought and Action: Managers set achievable goals and then direct
execution on all aspects to achieve them. For this, they need complete assistance from
middle and lower degrees of management.
 The system of authority: Well-defined principles of regulation, the regulation of proper
power and efficiency at all degrees of decision-making. This is important so that each self
must perform what is required from him or her and to whom he must report.
 Profession: Managers require to control managerial expertise and education, and have to
adhere to a verified law of demeanour and stay informed of their human and social
responsibilities.
 Process: The management method incorporates a range of activities or services directed
towards an object.
Significance of Management:
 Achieving Group Goals: Management encourages collaboration and coordination

amongst workers. A general control must be provided to the organisational and personal
objectives in order to favourably accomplish the aims.
 Increases Efficiency: Management improves productivity by managing resources in a
reliable conceivable way in order to decrease cost upscale potency.
 Creates Dynamic organisation: Management undertakes the conditions by assuring that
these variations are well accepted privately and that objection to change is controlled.
 Achieving personal objectives: Management promotes leadership and furnishes
motivation to the employees to operate effectively in order to accomplish their personal
aims while working towards the organisational goals.
 Development of Society: Management helps in the enhancement of community by
manufacturing reliable quality commodities, establishing employment chances and
fostering innovative technologies.
1. Successful organisations do not achieve goals by chance but by following a deliberate process
known as
(a) Planning
(b) Co-ordination
(c) Controlling
(d) Management
2. Management is essential for the organisations which are
(a) Non-profit organisations
(b) Service organisations
(c) Social organisations
(d) All of the above
3. Management contains a series of interrelated functions that include
(a) Planning
(b) Organising
(c) Directing
4. People in the organisations carry out diverse tasks with the aim to achieve
(a) Different objectives
(b) Common objectives
(c) Both of the above
(d) None of the above
5. Successful management ensures that
(a) Goals are achieved with least cost
(b) Timely achievement of goals
(c) Both of the above
6. Efficiency is concerned with
(a) Doing the right thing
(b) Doing things right
(c) Achieving end results
7. Effectiveness relates to
(a) Doing the right task
(b) Completing activities
(c) Achieving goals
8. Rohan works as a production manager in Global Enterprises Limited. He has been given the
task of getting 1000 units of hand woven table mats manufactured at the cost of ₹150 per unit
within 10 days. In order to be acknowledged as an effective manager, he must ensure that
(a) The cost of production does not exceed ₹150 per unit
(b) The work is completed within 10 days even at higher cost per unit
(c) The cost of production is less than ₹150 per unit
9. Jay is working as a marketing manager in a company. Has been given the task of selling
100000 units of a product at the cost of ₹100 per unit within 20 days. He is able to sell all the
units within the stipulated time, but had to sell last 1000 units at 20% discount in order to
complete the target. In such a situation, he will be considered to be
(a) An efficient manager
(b) An effective manager
(c) Both effective and efficient manager
10. Management is said to be poor if it is

(a) Efficient but ineffective
(b) Effective but inefficient
(c) Both inefficient and ineffective
11. Tarang Enterprises Limited is planning to increase its sales by 30% in the next quarter.
Identify the feature of management being highlighted in the given statement.
(a) Management is all pervasive
(b) Management is a goal oriented process
(c) Management is a continuous process
12. Management is equally important to run a political organisation as it is to run an economic
organisation. Which feature of management is being reflected in the given statement?
(a) Management is goal oriented
(b) Management is multidimensional
(c) Management is all pervasive
(d) Management is a group activity
13. Management translates the works to be carried out in terms of goals to be achieved and
assigns the means to achieve it. This statement relates to
(a) Management of work
(b) Management of people
(c) Management of operations
14. Which of the following statements highlights that management is a group activity?
(a) Organisation is a collection of diverse individuals with different needs.
(b) Achievement of common goal requires teamwork and co-ordination of efforts in a common
direction.
(c) Each member of the organisation may have different individual goals but they must travel
together towards common goals.
15. Keeping in view the changes in the consumer demands and preferences ‘Tasitemaker
Bakery’ has reduced the sugar and fat content in its products. This approach of business shows
that management is
(a) An intangible force
(b) A group activity
(c) A dynamic function
(d) A multidimensional activity
16. Which of the following is not an organizational objective of management?
(a) Earning enough revenue to cover costs
(b) Earning sufficient profits to cover risks of business
(c) Increase in the prospects of business in the long run
(d) Providing free education to their employees children
17. Management is considered important because
(a) It helps an organisation to adapt to the changes
(b) Seeks to integrate individual efforts
(c) It helps in development of the society
18. Management is considered to be an art because

(a) The principles of management have universal validity
(b) The principles of management have universal application
(c) Different principles of management are brought into effect differently by different managers
(d) It is not important for the practising managers to be a member of a professional association.
19. Which of the following statements is not relevant to the concept of “Management as an
inexact science”?
(a) The principles of management lack universal validity
(b) The principles of management lack universal applicability
(c) The principles of management have to be modified according to the given situation
(d) Management involves dealing with human behaviour and outcomes cannot be predicted with
utmost accuracy
20. The authority-responsibility relationships that exist within the organisation give rise to
(a) Different functions within the organisation
(b) Different levels in the organisation
(c) Management as a multidimensional activity
(d) Management as a group activity
21. Which of the following is not a designation related to top level management?
(a) President
(b) Vice-President
(c) Chairman
(d) Production Manager
22. Which of the following is not a designation related to middle level management?
(a) Operations Head
(b) Sales Manager
(c) Chief Operating Officer
(d) Divisional Manager
23. Which of the following is not a designation related to lower level management?
(a) Plant Superintendent
(b) Supervisors
(c) Section officers
(d) Marketing Manager
24. Which of the following is a function of top level management?

(a) Ensuring quality of output
(b) Assigning necessary duties and responsibilities to their departments
(c) Taking responsibility for all the activities of the business and its impact on the society
(d) Ensuring that the safety standards are maintained within the organisation.
25. Which of the following statements does not pertain to middle level management?
(a) They are responsible for all the activities of the operational managers.
(b) They are responsible for the welfare and survival of the organisation.
(c) The interpreter the policies made by top level managers
(d) Co-operate with other departments for the smooth running of the organisation.
26. Which of the following statements is not true for lower level management?
(a) Analyse the business environment and its implications for the survival of the business.
(b) Ensure the quality of the output
(c) They strive to reduce the wastage of resources
(d) They ensure that the safety standards are maintained within the organisation.
27. Identify the level of management which does not interact with the work force directly.
(a) Supervisory management
(b) Operational management
(c) First line managers
(d) Middle level management
28. The main task of this level of management is to determine the overall organisational
objectives and strategies for their realisation.
(a) Operational management
(b) Middle level management
(c) First line managers
(d) Top level management
29. This level of management serves as a link between top level managers and first line
managers.
(a) Supervisory level management
(b) Operational management
(c) Middle level management
30. Organising as a function of management involves deciding

(a) What activities and resources are required
(b) Who will do a particular task
(c) Where will it be done
31. The function of management related to grouping of activities to be carried out into
departments and creating management hierarchy is
(a) Planning
(b) Organising
(c) Controlling
(d) Directing
32. This function of management relating to laying down the foundation for carrying out the
other functions of management successfully is
(a) Organising
(b) Staffing
(c) Planning
(d) Controlling
33. Supervision, communication, motivation and leadership are the key elements of this •
function of management.
(a) Directing
(b) Controlling
(c) Planning
(d) Organising
34. This function of Management related to placing the right person at the right job is
(a) Organising
(b) Staffing
(c) Planning
(d) Controlling
35. It is a force that binds all the functions Of management.
(a) Cooperation
(b) Co-ordination
(c) Planning
(d) Management hierarchy
36. Co-ordination is considered to be the essence of management because

(a) It is a common thread that runs through all the activities within the organisation
(b) It is implicit and inherent in all functions of the organisation
(c) It is a force that binds all the functions of management
37. Identify the process that provides the requisite amount, quality, timing and sequence of
efforts, which ensures that planned objectives are achieved with a minimum of conflict.
(a) Management
(b) Planning
(c) Co-ordination
(d) Controlling
38. Identify the feature of co-ordination being highlighted in the given statement: “Coordination
is not a one time function, it begins at the planning stage and continue till controlling.”
(a) Coordination ensures unity of action
(b) Coordination is an all pervasive function
(c) Coordination is a continuous process
(d) Coordination is a deliberate function
EVOLUTION OF MANAGEMENT THOUGHT
QUES 1. HOW MANAGEMENT EVOLVE IN THE SOCIETY?
Management started when man started living in groups. It relates to achieve certain objectives.
According to George management begin in family, and after that it is expanded in tribes &
finally the scope was increased up to urbanization. The reference of management was found in
Babylonia (civilization on the bank of Nile river). After that Egypt provides us with an example
of decentralized organization with little control. Management thoughts are shown in planning
and organizing in the construction of Pyramids. The ancient philosopher first recognized the
need for proper methodology for employees’ selection and training. Greek provides extensive
documentation of management principles. These principles of management are world wide
famous. It is considered as management is an art. It includes employees’ selection, delegation of
authority, time study, motion study etc. Looking at the entire process of management thoughts, in
the early period management was based on trial basis. There was no exchange of ideas and no
practice of communication. Management is developing science. It grows accordingly to changes
in the social & political & economic changes. There are five stages of evolution of management
thoughts.
Pre – Historical Period:- Management is as old as man. Awareness of needs & satisfaction of
needs is the part & parcel of management. In the ancient time in the villages, head of the village
plans for the villages. There was a good labor planning. Villages were isolated. The basic needs
in the villages were satisfied by the persons in the villages. Responsibilities were distributed
among the people to satisfy the basic needs.
2. Organized Society:- (Church & Military) The next contribution to the development of
organization & management was by roman church. 1500 years ago Chinese ruler advised
government about management of human institutions. The German public gives contribution
towards management thoughts. During this period management techniques were largely
developed in administrative military & state administration.
3. Industrial Revolution:- This period is known as the period of scientific management. It is

proved that management is related with enterprise & business. In this period lots of technological
changes took place. With the industrial revolution the question of traditional management
appears. The traditional management concept was replaced by professional management.
4. Towards Consolidation:- This stage mark the beginning of the work of investigation of
principles of management i.e. division of work, authority, responsibility, discipline, scalar chain.
These ideas were developed by ‘Henry Fayol’.
5. Recent Development:- Recently management concepts are based on mathematical analysis.
They are based on linear programming, operational research, PERT (Programme Evaluation and
Review Technique), CPM (Critical Path Method). These techniques are useful in decision
making, controlling, problem solving etc. In today’s competitive world these techniques are
essential for controlling the cost that is why management is called as a separate profession.
This evolution of management thought can be studied in the following broad stages:
The Classical Theory of Management (Classical Approach):
It includes the following three streams of thought:
(i) Bureaucracy,
(ii) Scientific Management; and
(iii) Administrative Management
A. The Neo-classical theory of Management:
It includes the following two streams:
(i) Human Relations Approach
(ii) Behavioral Sciences Approach.
B. The Modern Theory of Management:
It includes the following three streams of thought:
(i) Quantitative Approach to Management (Operations Research);
(ii) Systems Approach to Management and
(iii) Contingency Approach to Management. It is rather difficult to state the exact
period of each stage in the evolution of management thought. Experts, in general,
agree with the following period for each thought/school.
a. Classical School/thought: 1900 to 1930.
b. Neo-classical School/thought: 1930 to 1960.
c. Modern School/thought: 1960 onwards.
The development of management thought is the result of contributions made by pioneering

management thinkers and experts from other social sciences such as economics and psychology.
QUES. 2. MENTION THE CONTRIBUTION OF F.W.TAYLOR TO MANAGEMENT

THOUGHT.
F.W. Taylor is one of the founders (the other two are Max Weber and Henry Fayol) of classical
thought/classical theory of management. He suggested scientific approach to management also
called scientific management theory.
F. W. Taylor (1856-1915) is rightly treated as the father of scientific management. He suggested
the principles of scientific management. His concept of scientific management developed into a
movement and dominated the industrial management for several decades after him. His concepts
and principles were refined and popularized by several of his followers, notable among them
being Henry Gantt, The Gilberths and Emerson.
The contribution of F. W. Taylor to management thought is as explained below:

1. Emphasis on rational thinking: Taylor suggested rational thinking on the part of management
for raising efficiency and productivity. He wanted managements to replace old methods and
techniques by Modern methods which will raise productivity and offer benefits to all concerned
parties. He was in favour of progressive, scientific and rational thinking on the part of
management on all managerial problems. Such progressive outlook is essential for the
introduction of new techniques and methods in the Management.
2. Introduction of better methods and techniques of production: F. W. Taylor suggested the
importance of improved methods and techniques of production. Work-study techniques are his
contribution to management thought. He suggested new methods after systematic study and
research. Taylor recommended the use of new methods for raising overall efficiency and
productivity.
3. Emphasis on planning and control of production: Taylor suggested the importance of
production planning and control for high production, superior quality production and also for low
cost production. He introduced the concept of production management in a systematic way.
4. Importance of personnel and personnel department: Taylor suggested the importance of
manpower in management. He was in favour of progressive personnel policies for the creation of
efficient and satisfied labour force. He suggested the need of personnel department and its
importance. He favored incentive wage payment to workers.
5. Industrial fatigue and rest pauses: Taylor noted the nature of industrial fatigue and suggested
the introduction of suitable rest pauses for removing such fatigue of workers. He wanted to
reduce the burden of work on workers through the use of scientific methods.
6. Time and motion study: Taylor introduced new concepts like time study, motion study and
work study in the field of industrial management such concepts are for the introduction of new
methods which will be more quick, scientific and less troublesome to workers.
The positive view of scientific management was described by Taylor as "Science, not rule of
thumb; Harmony, not discord; Co-operation, not individualism; maximum output in place of
restricted output. The development of each man to his greatest efficiency and prosperity".
F.W. Taylor a rightly treated as father of scientific management. In fact, through his concept of
scientific management, Taylor actually developed a new science of management which is
applicable not only to management of industrial units but also to the management of all other
business units. He suggested certain techniques which can be applied purposefully to all aspects
of management of business activities. This is treated as Taylor‘s unique contribution to
management thought. The fundamental principles suggested by F. W. Taylor in his scientific
management can be treated as his contribution to management thought. In fact, Taylor suggested
scientific attitude and a new philosophy for discarding old and outdated ideas and techniques. He
was instrumental for the introduction of new ideas and techniques in the science of management.
These ideas aid techniques are now accepted in theory as well as in practice.
Scientific management has wider economic and social significance. It has succeeded in
revolutionalising the very concept of management by offering a novel approach to the managers
in managing men, materials and methods. In spite of several benefits, Taylor's scientific
management concept has widely been criticized by employers, workers, trade unions and also by
theorists. They oppose Taylor's scientific management on different grounds.
The points of criticism we as explained below: Criticism from Employers
1. Huge investment required: Heavy investment is necessary for reorganization of preliminary
standardization of tools, machines and equipment and conduct of time and motion studies and
other research activities for the introduction of scientific management. Such investment may not
be possible in small and medium size enterprises.
2. Sudden change may disturb existing working arrangements: Sudden change due to the
introduction of scientific management may paralyze the existing arrangement of work and will
bring the entire Organisation in difficulties. There will be loss due to reorganization, if scientific
management is to be introduced.
3. Unsuitable to small units: Small manufacturers argue that the concept of scientific
management is not suitable to their units due to financial and other difficulties.
4. Benefits after a long period: The benefit of scientific management will be available only after
a long period and the business unit may come in financial
QUES3. DISCUSS THE CONTRIBUTIONS MADE BY HENRY FAYOL TO

MANGEMENT THOUGHT.
Contribution of Henry Fayol to Management Thought Henry Fayol (1841-1925) is rightly treated
as the father of modern theory of general and industrial management. The credit of suggesting
the basic principles of management in an orderly manner goes to Henry Fayol. After obtaining an
engineering degree, Henry Fayol, joined as chief executive in a coal mining company. He
developed his management principles and general management theory and published them in the
form of a book (in French) "General and Industrial Administration" in 1916. It was translated
into English in 1930. In due course of time, Henry Fayol came to be recognised as the founder of
modern management theory. His analysis of management process acts as the foundation of the
whole management theory and the present super-structure of management has been built on it.
Henry Fayol suggested important qualities of managers and stressed the need for raising such
qualities. He developed fourteen principles of management out of his practical experience. These
principles are universal in character and are applicable to all types of organisations. Each
principle suggested by him has specific meaning and significance.
According to him, managers in all organisations need to follow these principles/guidelines while
managing the affairs of their business units. The management principles suggested by him in
1916 are universally accepted by modern authorities on management and are treated as valid
even to this day. This is because these principles are practical in nature and also result-oriented.
In fact, these principles are the outcome of his long experience as a practicing manager. These
basic principals are useful for effective management of business activities. They are related to
the basic components of management process such as planning, organizing, staffing, leading,
coordinating and controlling. He incorporated these principles in the management theory
suggested by him.
The principles of management suggested by him are useful not only in business/industrial
enterprises but also in other organisations such as colleges, hospitals, charitable institutions and
government departments. Due to his contribution to management theory and principles, Henry
Fayol is rightly treated as the Father of Modern Management Thought. Fayol is the first
management thinker who provided the conceptual framework of the functions of management in
his book ―General and Industrial Management.
The functions of management according to Fayol are,
1. Planning
2. Organising
3. Staffing
4. Commanding
5. Coordinating
6. Controlling
The fourteen principles of management suggested by him are related these basic functions of
management process and are universally accepted. Fayol has given adequate details of every
principle suggested by him. He also made them easily acceptable by others.
According to Henry Fayol, managers should be flexible in the application of these principles.
The fourteen principles of management suggested by him are related these basic functions of
management process and are universally accepted. Fayol has given adequate details of every
principle suggested by him. He also made them easily acceptable by others. According to Henry
Fayol, managers should be flexible in the application of these principles. Fayol divided general
and industrial management into following six groups:-
a. Technical activities (production, manufacture, adaptation).
b. Commercial activities (buying, selling and exchange).
c. Financial activities (search for and optimum use of capital).
d. Security activities (protection of property and persons).
e. Accounting activities (stock taking, balance sheet, cost, and statistics).
f. Managerial activities (planning, organising, command, coordination and control).
Henry Fayol also suggested 14 principles of management. These principles are:-
1. Division of work,
2. Authority and responsibility,
3. Discipline,
4. Unity of command,
5. Unity of direction,
6. Subordination of personal interest to organizational interests,
7. Remuneration,
8. Centralization,
9. Scalar chain,
10. Order,
11. Equity,
12. Stability of tenure,
13. Span of co-operation and
14. Initiative
Henry Fayol‘s contribution to management theory is certainly remarkable. He gave overall

concepts of general management and suggested the basic functions of management. He
recommended the selection and training of workers and managers. He also advocated the use of
organisation charts. He suggested certain qualities of manager‘s winch include physical, mental,
moral, educational technical and experience. Fayol‘s theory of management was the first
complete theory of management as we understand today. It incorporated proven principles,
elements, procedures and techniques based on his practical experience.
1. Scientific Management were more concerned with the problems at the ......................................
levels
a) Higher levels
b) Middle
c) Operating
d) None
2. Father of Modern Management theory is………………
a) Henry Fayol
b) F.W.Taylor
c) Henry Gantt
d) None
3. ………….suggests that each communication going up or coming down must flow through
each position in the line of authority
a) Communication Pattern
b) Horizontal communications
c) Scalar chain
d) None of these
4. Management can be considered as………………..

a) Exact science
b) Inexact science
c) Pseudo science
d) B or C
5. …………………..is that phase of business enterprise that concerns itself with the overall
determination of institutional objectives and the policies necessary to be followed in achieving
those objectives.
a) Management
b) Administration
c) Both of these
d) None
6.……..has defined the basic problem of managing as the art of “knowing exactly what you want
men to do and then see that they do it in the best and cheapest way”
a) Henry Fayol
b) F.W. Taylor
c) Mary parker Follet
d) None of these
7. According to functional foremanship, the speed boss, Inspector, foreman and gang boss are
entrusted with the........................... aspect of work.
a) Planning
b) Organizing
c) Doing
d) None of these
8.…..is undertaken to find out the one best way of doing the thing
a) Job Analysis
b) Merit rating
c) Job enrichment
d) None
9. The principle of Unity of command is contrary to Taylors……………………..
a) Rule of thumb
b) Unity of Direction
c) Functional foremanship
d) None of these
10. According to …………..principle, each group of activities with the same objective must have
one head and one plan
a) Unity of Direction
b) Unity of command
c) Either of these
d) None
11. Everything which goes to increase the importance of subordinates role is……………….
a) Decentralization
b) Centralization
c) Either A or B
d) None
12. The Book “ Functions of Executive” was written by …………………..
a) P.F. Drucker
b) Chester Barnard
c) Herbert Simon
d) None
13. school of Management recognizes the existence of a centralized body of knowledge for the
Management.
a) System approach
b) Empirical
c) Contingency
d) Operational
14. …………..school of thought has developed on the idea that there is no single best method to
find solutions to Managerial problems
a) System approach
b) Empirical
c) Contingency
d) Operational
15. Koontz and O’Donnel are the advocates of ……………….approach to management

a) System approach
b) Empirical
c) Contingency
d) Operational
16. According to....................approach, management is a logical process and it can be expressed

in terms of mathematical symbols and relationships.
a) Empirical
b) Management science
c) Contingency
d) Operational
17. ……………….approach of management heavily concentrates on ‘People’ aspect of

management.
a) Human relations
b) System
c) Empirical
d) Management science
18. ……………is the art of knowing exactly what you want men to do and then seeing that how
they do it in the best and cheapest way.
a) General management
b) Scientific Management
c) Administration
d) None
19. …………..is introduced to secure the benefits of division of labour or specialization at the
supervising level under scientific management
a) Operating management
b) Functional foremanship
c) Either aor b
d) None
20. ………………….helps to determine a fair days work and rest period to complete it
a) Work study
b) Time study
c) Motion study
d) All of these
UNDERSTANDING ORGANISATIONS
QUES 1. HOW SIX BOX MODEL IS USEFUL IN UNDERSATNDING AND
DIAGNOSING THE ORGANISATIONS?
Organizational diagnosis requires defining and using a pattern for understanding organizational
problems, data collection and analysis and drawing conclusions based on the findings with the
purpose of making necessary changes and probable modifications. This organizational diagnosis
is a group process meaning it requires the existence of common and similar approaches and
purposes. Individuals should seriously take active part in planning interventions and their
implementation. Therefore, Organizational diagnosis, in contrast with medical diagnosis,
necessitates not only removing the problem but also making changes and taking new paths. Such
changes can help improve the future performance and developments of the organization
In Marvin R. Weisbord’s Six-Box Model, six categories are used to perform an organizational
diagnosis: purposes, structure, relationships, rewards, leadership and helpful mechanisms. To
perform an organizational diagnosis, it is essential to have a basic understanding of what
“diagnosis” means and why it must be done.
According to Weisbord, identifying and solving a problem must be done systematically by the
same people, because by so doing, they learn from their own situation and then seek
improvement.
One step in this process is diagnosis.
By definition, diagnosis is a way of looking over an organization to determine the “gap” or
variance-between what is and what ought to be. It implies that data are collected and then
conclusions are drawn by assigning meaning, weight, priority and relationships to the facts.
Thus, based on available data, diagnosing would entail an analysis of what the data mean and
determine its impact on what actually ought to be happening. Moreover, the gaps or variances
identified are then prioritized in relationship to action plans that, if needed, rectify any variances.
Utilizing Weisbord’s Six Box Model can help only if the provider acts upon the diagnosis.
Having used the six boxes pattern, the problems of the organization are identified and their
quality improved. The components of the six boxes pattern are namely; purpose, structure,
relations, rewards, leadership and helpful mechanisms.
Organizational purposes are the same missions and perspectives. These purposes must be clear
for all the members and they have to abide by them even if they have totally different
philosophies in comparison to that of the organization, they have to go along the same stipulated
purposes and rules.
The structure of an organization is the big picture of its levels of power and formal relations
between functional groups of the organization.
Structure must offer a true and appropriate picture of the legal power and also must be taken into
account as a formal way of facilitating things for getting the purposes of the organization.
Relations include individuals, groups, technology and other functional sections which effectively
work together.
Rewarding systems (official and unofficial) must be analyzed. Data must contain such
information to create enough motivation in the individuals. Helpful mechanisms are methods
which help the staff coordinate their activities.
Examples of such mechanisms are namely; description of organizational approaches, seminars,
notes, reports or positions which are created with the purpose of making appropriate relations
between sections of the organization.
Managers use human resources, materials and other equipment for helping the purposes of
organization come true. They increase cooperation between the staff for the production of a
single product.
Some of the methods they use for such a purpose are intensive leadership style, focusing on
duties and relations, identifying management purposes and problems and being responsive. The
efficacy of a manager is the degree of authority his staff feel he has.
Considering the importance of organizational diagnosis and its role in improving organizational
processes, the present study aims to investigate the organizational diagnosis strategies of Isfahan
public universities based on Wiesboard six boxes model.
QUES 2. DISCUSS THE MATRIX MODEL IN AN ORGANISATION. MENTION ITS

ADVANTAGES AND DISADVANTAGES.
The matrix organizational structure is a combination of two or more types of organizational
structures. The matrix organization is the structure uniting these other organizational structures
to give them balance. Usually, there are two chains of command, where project team members
have two bosses or managers.
Often, one manager handles functional activities and the other is a more traditional project
manager. These roles are fluid and not fixed, as the balance of power between these two kinds of
managers isn’t organizationally defined.
It will employ the best of both structures and management styles to strengthen strengths, and
make up for weaknesses. This way, if an organization is working on producing two products or
services at the same time, they can organize both and use that duality to their advantage through
the matrix organizational structure.
Origins of the Matrix Organizational Structure
The matrix organizational structure came about as a business response to the rise of large-scale
projects. They needed fast-track technology applications and required the ability to process great
amounts of data in an efficient manner. Project organization was needed to respond quickly to
interdisciplinary needs, without upsetting the functional organizational structures already in
place.
Matrix organizational structures were first developed in the aerospace industry in the U.S. as
projects grew in complexity during the mid-century. Until that point, they had been using a
single hierarchical organization, which was fine when there was only one very large project.
However, with more and more projects having a variety of sizes and complexities, there was a
need for expanding beyond one discipline. So, as time went on, the use of one discipline to
structure a project become increasingly rare. But there remained a need for a single source of
information and responsibility for each project. Therefore, instead of creating many autonomous
projects, a matrix of projects was developed.
Pros and Cons of a Matrix Organizational Structure
A matrix organizational structure is not a one-size-fits-all solution. There are advantages and
disadvantages that need to be understood to know if it’s the right one for the organization.
Pros
One of the biggest pros of using a matrix organizational structure is that it allows the sharing of
highly skilled resources between functional units and projects. Communications are open, which
helps knowledge move throughout the organization with less obstruction. Because the matrix
organizational structure fosters better communications, it makes the normal boundaries between
groups more porous, which allows for more collaboration and an integrated, more dynamic
organization.
This structure can serve as a great boon for employees who are looking to widen their experience
and skill sets. They can be part of many different aspects of various projects. It puts them in an
environment that facilitates learning and gives them an opportunity to grow professionally.
Plus, the functional departments have highly skilled people, and those people are available to
help the project team if needed. This creates a pool of valuable resources that can be dipped into
and provides more flexibility to resolve issues without having to source new resources.
Furthermore, efficiencies are enhanced, and teams remain loyal because the structure provides a
more stable environment where job security is strengthened. People work harder and have more
buy-in to projects when they feel the rug isn’t going to get pulled out from under them.
Cons
There can be some confusion when a team member is subject to two managers. That can also
create unnecessary conflict. This is especially true if both managers have equal authority.
Then there is the functional manager and project manager. There can be some sparks flying
between these two managers in terms of what they believe to be the authority in the organization.
That confusion can show up with team members, too, if their roles and responsibilities aren’t
clearly defined. And that confusion can lead to conflict if resources are hard to come by and
competing managers are fighting for them.
There are a lot of managers in a matrix organizational structure, which is not to everyone’s
liking. And there can be a financial downside to that too. Having more people in managerial
positions is going to have an impact on the organization’s bottom line.
Team members can feel the strain of working in a matrix organizational structure, in that their
workload can be heavy. Often, they’re tasked with their regular assignments and then additional
work, which can lead to burnout or some tasks being ignored.
Finally, there’s the overall expense of the matrix organizational structure. This goes beyond
having multiple managers but also the added expense of keeping on resources that might not be
used all the time.
Not that some of these disadvantages can’t be overcome. They just require being cognizant of the
stress points and working more cooperatively towards relieving them.
Why Use a Matrix Organizational Structure?
The matrix organizational structure is an answer to the problem of managing large and complex
projects. When working on a large project, a highly hierarchical structure can be an obstacle in
the path of moving that process forward successfully.
Instead of trying to find a workaround to a situation that might not have a viable solution, a
matrix organization structure provides a new system that can more properly address the
complexities of large projects.
The problem of having the function and skills fragmented in an organization makes it more
difficult to handle large projects successfully. It’s harder with this type of top-down
organizational structure to have a holistic view. The perspective at the top is distorted, while a
matrix organizational structure can see a problem from a closer standpoint and have varied
approaches of solving it.
The matrix organizational structure is more catholic in that it acts as if there is not a single best
way to organize a project. It sees alternatives rather than one established way forward.
QUES 3. WHAT IS MEANT BY THE TERM ‘ORGANISATIONAL DESIGN’? STATE

THE EMERGING CONCEPTS INFLUENCING ORGANIZATIONAL DESIGNS. HOW
TO BALANCE BETWEEN MANAGEMENT AND LEADERSHIP.
“Organization design” involves the creation of roles, processes and structures to ensure that the
organization’s goals can be realized.
Some people associate organization design with the mechanical arrangement of positions and
reporting lines on the organization chart.
It is certainly true that organizational designers also need to define the vertical structure,
including reporting lines.
However, organization design is much more than “boxology”.
Organization design problems are often some of the hardest problems that leaders face. Finding
the right design often requires inventing a new solution to resolve a dilemma. And decisions
made with regard to formal structure, roles and processes directly impact the jobs and careers of
employees – and the ability of the firm to realize its strategic objectives.
In an organization re-design process one may consider elements at different levels:
 The overall organizational “architecture” (e.g., the corporate level, the role of the
headquarters versus business areas in a large firm, etc.)
 The design of business areas and business units within a larger firm
 The design of departments and other sub-units within a business unit
 The design of individual roles
The field of organization design sits at the intersection of strategy, operations, law and HR.
1. An important driver for organization design is the organization’s strategy – but the design of
the organization may also to a great extent determine which strategies we may be able to form in
the first place.
2. We should, in general, attempt to align the organization with the work processes – so there is
a close link between operations and organization design.
3. The design of the organization is also influenced by laws, regulations, and governance
principles adopted by the industry sector.
4. Last but not least, organization design is fundamentally about people. People inhabit the roles
that are defined in the organization design proces. People participate in design processes and also
influence designs in many direct and indirect ways.
Emerging Concepts Influencing Organizational Designs
Proper attention and supervision is required for designing. There are many factors that influence
the structure of an organization.
1. Environment:
It is an aggregate of all the factors,
conditions, events, and influences that surround and affect the activities of
an organization which analyze the environment in which it operates while
designing its structure. The environment is divided into internal environment
and external environment. Internal environment includes strengths and weakness
and external environment includes opportunities and threats.
a. Strengths: sounds
finances, low cost, flexibility, effective marketing, efficient
administrations, good relationships with suppliers are the strength of an
organization.
b. Weaknesses: Insufficient
funds, late response to customer requirements, limited product range, and
inefficient production are the weakness of an organization.
c. Opportunities: Declining
performance of competitors, access to potential customers, leverage in
political and legal standards, development of new distribution channels are the
examples of opportunities.
d. Threats: Rise
is raw material prices, high rate of attrition, improved competitive products
etc.
2. Organizational size: It is defined by a number of
employees and the businesses of an organization.
3. Organizations strategy: The strategy of the
organization should be will fitted with the organizations structure.
4. Technology: The advent of advanced technologies has automated the
different processes of organizations. This has created a less need for human
resources.

BALANCE BETWEEN MANAGEMENT AND LEADERSHIP
Leading Change, the Leaders as Chief Transformation Officer, Warren Bennis said,
“Management is getting people to do what needs to be done. Leadership is getting people to want
to do what needs to be done. Managers push. Leaders pull. Managers command. Leaders
communication.”
The fine line between management and leadership within the workplace is encountered often,
and by many individuals in position of authority. Business leaders often fall into a managerial
role and take on a plethora of management tasks. However, leadership and management are two
distinctively different, though complementary, systems of action.
Management is about controlling tasks and creating order in an environment, while leadership is
about influencing and motivating staff. Without structured management and control, a business
can snowball into chaos. Management is crucial to the success of every and any business,
regardless of the industry or business size.
Without successful leadership, employees are not motivated to do any more than the bare
minimum – also eventually leading to chaos and disorder. Leadership without management
cannot sustain change and make improvements in the now; management without leadership is a
goalless endeavor that lacks “the big picture” where businesses remain resilient to change.
What our businesses today need are managers who lead, inspire and motivate employees to
achieve business-wide goals. Relying too heavily on one or the other can be detrimental to a
business.
A large part of being a productive leader is to build and foster relationships with employees, and
to encourage employees to build solid relationships with one another. Looking at the long term,
healthy relationships in the workplace build an environment where employees want to complete
their tasks and are not forced to do so, where they would otherwise grow to resent you as a
manager. While you may be managing your employees and seeing tasks are completed, a bitter
relationship will form and employees will approach work halfheartedly. Finding a balance
between management and leadership can come down to healthy relationships, inspiring staff and
a productive environment that fosters growth and achievement.
A few things that help build positive relationships are:

– Employee awareness. Keep in regular contact with your employees, hear about what your
employees are doing and what they have on their plate. They will appreciate that you take the
time to understand their daily tasks and the effort you put into talking to them.
– Accountability. Hold your employees accountable for their tasks and to-do lists. This goes
hand-in-hand with understanding your employees’ task lists and timelines.
– Empowerment. Offer guidance to your employees but let them make decisions when possible.
This makes them feel valuable and encourages them to learn more, which they will grow to
appreciate.
– Inspire, don’t control. Micro-managers and/or controlling leaders often deter employees from
reaching out, taking educated risks and takes away from a self governed that hosts a desired
driven work ethic.
As a manager or as a leader, the ultimate goals are the same – the path to get there is where they
differ. But ultimately, we need to find the balance between the two, no matter how difficult it
seems. Building lasting relationships, creating a productive and inviting atmosphere, and
ensuring that the necessary tasks are being completed beyond expectations – that is what we seek
in the workplace. As respected relationships are built between employees, a productive
environment will self-generate: one that fosters employee growth and communication, and
ultimately leads to a successful business.
1. Which of the following are 5 parts of any organisation given by Mintzberg?
a. Operating core
b. Strategic apex
c. Middle line
d. Techno - structure
e. Support staff
f. All of the above
2. Match the following elements of organisation with their characteristics
1. Strategic apex ----- A. Decentralised and professional bureaucracy
2. Techno - structure ------ B. Centralised and Simple structure
3. Middle line ------ C. Dominant standardisation and machine bureaucracy
4. Support staff ------ D. Autonomy and Divisional structure
5. Operating core ------- E. Mutual adjustments and machine bureaucracy
a. 1-B, 2-C, 3-D, 4-E, 5-A

b. 1-C, 2-B, 3-E, 4-D, 5-A
c. 1-E, 2-C, 3-B, 4-A, 5-D
d. 1-B, 2-A, 3-E, 4-C, 5-D
3. State true or false
i. Simple structure is a matrix organisation.
a. True
b. False
4. Match the following structures with their respective strengths and weaknesses.
I. Simple Structure ------ A. Flexible and limited applicability
II. Machine Bureaucracy -------- B. Performing standard activities efficiently and subunit
conflicts
III. Professional Bureaucracy------ C. Performing specialised tasks and compulsion to follow

rules
IV. Divisional Structure --------- D. functional goals override organisational goals
V. Adhocracy -------------E. Ad-hoc teams and conflicts
a. I-A, II-B, III-C, IV-D, V-E

b. I-B, II-C, III-E, IV-A, V-D
c. 1-C, II-E, III-A, IV-D, V-B
d. I-E, II-A, III-B, IV-C, V-D
View Answer / Hide Answer
5. State true or false
i. Machine bureaucracy displays strict distinction between line and staff activities.
a. True
b. False
6. Which of the following option was created to hire highly trained specialists for the
operating core?
a. Machine bureaucracy
b. Adhocracy
c. Professional bureaucracy
d. None of the above
7. ______ is a set of autonomous unit, each typically machine bureaucracies in itself,
coordinated by a central headquarter.
a. Divisional structure
b. Professional bureaucracy
c. Adhocracy
d. None of the above
8. Which of the following company follow divisional structure?
a. Hershey Foods
b. General motors
c. Du Pont
d. All of the above
21. The initial interest of the managers for the Organisational Development efforts is
introduced, through, personal attendance at:-
(A)- A Group laboratory
(B)- P Group laboratory
(C)- N Group laboratory
(D)- T Group laboratory

22. The Role Analysis Technique model is designed to clarify:-
(A)- Role expectations and obligations of team members to improve team effectiveness
(B)- Ego levels of each individual
(C)- the role of each individual
(D)- none of the above

23. The primary advantage of Organizational Development is:-
(A)- It tries to deal with change in a whole organization
(B)- It is easy to implement
(C)- both ‘A’ and ‘B’
(D)- None of the above

24. In Custodial organization model, managerial orientation is:
(A)- Teamwork
(B)- Money
(C)- Production
(D)- Manpower

25. With regard to the ‘Nature of Organizations’ the key assumption is:
(A)- The social systems are formed on the basis of mutual interests.
(B)- People must be motivated to work effectively

26. Autocratic organization model depends on:
(A)- Partnership
(B)- Power
(C)- Labour unions
27. The total Quality improvement model provides an approach, for organizational change,
and involves:-
(A)- Three major phases
(B)- Four major phases
(C)- Five major phases
(D)- Six major phases

28. For an Interdependency Intervention, in a group of Ten people, in order to interview
others, how many individuals member of the team, each member would be required to
do meet:-
(A)- Six Members
(B)- Seven Members
(C)- Eight Members
(D)- Nine Members

29. The concept that, managers generally use three types of tactics to accomplish their
goals, was put forward by:-
(A)- Taylor
(B)- Ishikawa
(C)- Schein
30. Today’s manager’s first task is to:-
(A)- Retain good human asset
(B)- utilize human asset in a better way

31. As a result of recent studies in OD, number of views are now being developed, one of
the most important concept on which the OD is constructed is that, of :-
(A)- A normative value for culture and change
(B)- Individual leadership

32. During the course of the Organizational Development projects, the internal OD
specialists should:-
(A)- Become increasingly professionalized
(B)- be responsible for their own development

33. The Role Negotiation Technique for group intervention was developed by:-
(A)- Roger Harrison
(B)- Roy Harrison
(C)- Robin Harrison
(D)- Rick Harrison

34. Some of the major benefit(s) of the OD interventions is (are):-
(A)- Improved job satisfaction
(B)- Improved productivity
(C)- Improved team work
(D)- All of the above

35.Some of the indications of requirement of organisational development efforts are:-
(A)- Reduced customer satisfaction
(B)- Lack of co-operation between people
(C)- Rapidly increasing costs
(D)- All of the above

CULTURE IN THE ORGANISATION
QUES 1. WHAT DO YOU UNDERSTAND BY ORGANISATIONAL CULTURE? WHAT
ARE THE DIFFERENT KINDS OF CULTURE ADOPTED IN ORGANISATIONS?
Organisations are located within larger societal cultural contexts, yet almost all organisational
cultures are unique to particular organisations. Obviously, there is cultural variation within each
society, depending on the region in which a particular organisation is located. In almost any
organisation around the globe, the organisational culture would consist of the uniquely patterned
beliefs, feelings, values and behaviour that connect the members to the organisation and
simultaneously distinguish that organisational culture from the cultures of other organisations.
Obviously, cultural dimensions are reflected in various forms in the external life of a society or
an organisation, as well as in the values and beliefs held by its members.
The culture of an organisation is a product of history, a variety of external and internal
influences, and priorities and values of key people in it. Culture is reflected in the artifacts -
rituals, design of space, furniture and ways of dealing with various phenomenon.
Smircich (1983) defines organisational culture as a fairly stable set of taken-for-- granted
assumptions, shared beliefs, meanings, and values that bring forth a new way of understanding of
organisational life. According to Denison (1984), organisational culture refers to the set of
values, beliefs, and behaviour patterns that form the core identity of an organisation.
Organisation cultures are developed and reinforced in a variety of ways. There are five primary
and five secondary cultural development mechanisms. The five primary mechanisms are:
1. What leaders pay attention to, measure, to, and control,
2. Leaders' reactions to critical incidents and organisational crisis.
3. Deliberate role modeling, teaching and coaching.
4. Criteria for allocation of rewards and status.
5. Criteria for recruitment, selection, promotion and retirement employees.
There are five secondary mechanisms by which organisational culture develops. They are:
1. The organization’s design and structure.
2. Organisational systems and procedures.
3. Design of physical space, facades and buildings.
4. Stories, legends, myths, and parables about important events and people.
5. Formal statements of organisational philosophy, creeds and charters
TYPES OF ORGANISATIONAL CULTURE
Handy (1985) has analysed the different types of organisational culture and offers a four-fold
typology:
• The power culture In this, the organisation stresses the role of individuals rather than
committees. Individuals are power-oriented and politically aware. Control is exercised at the
centre and is characterised by informal webs of influence rather than formal procedures. It is not
characterised by bureaucracy.
• The role culture Here the stress is upon formal rules and roles and authority is vested in these
roles. It is characterised by formal procedures and offers the individual security, stability and
predictability. It is, therefore, characteristic of bureaucracy.
• The task culture This is job-oriented and is concerned with getting the job done. It is concerned
with utilising resources to meet the organisation's objectives and is characterised by the
requirement of efficiency. The culture adapts itself to change and is driven by the need to
provide goods and services for the customer.
• The person culture The individual is at the heart of this organisation and this culture, according
to Handy, is not often found. The organisation serves the individual rather than the other way
round. Control mechanisms or hierarchies are virtually impossible and influence the shared.
One way of classifying organisational culture can be autocratic or feudal, bureaucratic,
technocratic, and entrepreneurial or democratic:
Traditionally bureaucracy has been described as a role culture, but there is no reason to suppose
that the different cultures cannot exist within the same organisation particularly if the
organisation is as large and diverse as a government department or a local authority.. Each of the
different cultures may express the roles that organisations perform. Problems arise where there is
a clash of cultures.
All organisations exist within some wider context and we would expect an organisation's culture
to reflect this. Thus it may be unrealistic to expect a democratically run workplace when the
prevailing political and social ethos is authoritarian. Organisations are social systems that have
shared understandings, norms and values and have a common language. The history of the
organisation, its past values and beliefs also influence the present culture of the organisation.
Each of the different cultures may express the roles that organisations perform.
QUES 2: DISCUSS CORPORATE CULTURE.
Corporate culture has been defined as the personality of an organisation. It encompasses the
company's goals and dominant ideologies. It is a system of shared values that interact with a
company's. people, organisational structure and control system to produce behavioural norms.
The interest in corporate culture is derived from the organisational behaviour specialists and
from the empirical studies. The corporate culture underlines much of the way in which things get
done in the organisation. It encompasses the company's goals and dominant ideologies.
Environmental influences will make a strong impact on the corporate culture. The organisation
has to survive and thrive in an external environment which could be turbulent or steady. Against
this background, corporate culture is created by organisational members with the values,
philosophy, beliefs, assumptions and norms, with the top management playing a dominant role.
Corporate culture contains assumptions about the nature of the business and its markets and
customers, the way in which business should be carried out, how work should be organised, the
sort of people the organisation needs and how they should be treated. Among the factors that
affect corporate culture are work groups, organisational characteristics, supervision, and
administration.
A corporate culture can be strong or weak, and a strong culture is not necessarily a good one - it
could be a wrong culture and it could be difficult to change. A weak culture, even a practically
non-existent culture, may be acceptable if the organisation functions well. Within one
organisation, there may be a dominant culture, but there will certainly be many sub-cultures in
different departments or locations.
Corporate culture manifests itself in organisational behaviour - how managers and individual
employees or groups behave in the context of the organisation. Culture influences behaviour in
three areas: Corporate Values: Belief in what is best or good for the organisation and what
should or ought to happen. They are expressed by reference to both ends (goals) and means
(action plans for achieving goals).
Organisational Climate: The working atmosphere of the organisation as perceived and
experienced by its members. This will encompass how people feel about and react to the
characteristics and quality of the corporate culture and its values.
Management Style: It is the way in which managers behave and exercise authority. They may be
autocratic or democratic, tough or easygoing, formal or informal. It also describes the way in
which managers behave.
Corporate culture is a somewhat elusive concept, because it is based on the taken-for- granted
assumptions and beliefs about what is good and not good for the organisation. There may not be
a single culture but a number of cultures spread throughout the organisation; and this does make
managing the culture any easier. In any case, there is no such thing as a "good" or "bad" culture,
but only cultures which are appropriate or inappropriate. If you have an appropriate culture, its
management consists of no more than maintaining the existing values, climate and management
style; change is not necessary.
Cultural change in programmes may be required if the wrong assumptions have created an
inappropriate culture affecting the performance of the individuals within an organisation.
Corporate culture is a key factor in achieving success but it is not easy to get it. A deeply-rooted
culture may be difficult to change -old habits die hard. The answer to the question, "Can it be
changed?" is "Yes, but with difficulty." Every organisation has its own unique culture or value
set. Most organisations do not consciously try to create a certain culture.
The culture of the organisation is typically created unconsciously, based on the values of top
management or the founders of an organisation, for instance, Hewlett-Packard is a company that
has, long time, been conscious of its culture and has worked hard to maintain it over the years.
Hewlett Packard's corporate culture is based on:
(1) respect for others,
(2) a sense of community, and
(3) plain hard work. It has been developed and maintained through extensive training of
managers and employees. HP's growth and success over the years has largely been due to its
culture.
Cultural systems are the most neglected part of HRD, but they have attracted some attention in
the last few years. Interest in culture has been aroused by the examples of Japanese successes
characterised by a high commitment to work, loyalty towards the organisation, concern for
quality, and high levels of productivity.
Some organisations in India have adopted the Japanese practices, notable among them being the
Maruti Udyog and Sundaram Clayton. These practices are a 7-hour-45-minute shift, zero- defect
production, cost-cutting, and discipline. These practices help in the development of a new
organisational culture.
In India, TISCO has traditionally built up a culture of its own and successfully continued with
the same. Indian companies have diverse cultures of their own across the country. The culture of
public sector organisations is different from that of the private sector. Even there is cultural
diversity within the private and public sector organisations.
QUES 3. HOW TO AFFECT CULTURAL CHANGE IN AN ORGANISATION?

There are a number of internal and external factors which are responsible for cultural change in
an organisation.
Composition of the workforce: Overtime, the people entering an organisation may differ in
important ways from those already in it, and these differences may impinge on the existing
culture of the organisation.
Mergers and acquisitions: Another source of cultural change is mergers and acquisitions,
events in which one organisation purchases or otherwise absorbs another. In such cases, rare
consideration is given to the acquired organisation's culture. This is unfortunate because there
have been several cases in which the merger of two organisations with incompatible cultures
leads to serious problems, commonly known as culture clashes. In such cases, the larger and
more powerful company attempts to dominate the smaller acquired company.
Planned organisational change: Even if an organisation does not change by acquiring another,
cultural change still may result from planned changes.
One important force in planned organisational change is technology. Technology affects the
behaviour of people on the job. as well as the effective functioning of organisation.
Cultural Change Programme A cultural change programme involves the following steps:
Identify the basic assumptions and beliefs and challenge them if necessary.
Define or re-define the core values - stated or unstated.
Analyse the organisational climate.
Analyse the management style.
Plan and implement what aspects of the culture needs to be changed and what aspects
should be maintained or reinforced.
Specific approaches to achieve a cultural change are:
1) Recognition to facilitate integration, to create departments or jobs which are responsible
for new activities or to eliminate unnecessary layers of management.
2) Organisation development to improve the effectiveness with which an organisation
functions and responds to change.
3) Communication to get the messages across about the values and to achieve the objectives.
4) Training to help form new attitudes to such matters as customer service, quality,
productivity, managing and motivating people.
5) Recruitment to set out deliberately to change the type of people recruited.
6) Management by objectives to ensure that managers know what they are expected to do.
7) Performance management to ensure that managers, supervisors and staff are assessed on
the basis of the results they achieve and that performance improvement programmes are
used to capitalize on strengths or overcome weaknesses.
8) Reward management to enhance the cultural assumption that rewards should be related to
achievement by introducing performance-related bonus schemes and remuneration
systems.
There are a variety of methods for developing, maintaining, or changing organisational cultures.
The power to change company culture lies largely in the hands of management. Changing culture
is not easy. However, when employees have been brought up in a particular tradition, they may
find it difficult to recognise the need for and scope of the changes required. The organisation
culture has its deep roots and hence it cannot be changed overnight. It takes time and patience,
nevertheless the journey has to be undertaken to reach a new era.
The culture of a business is not formed by what management preach or publish, but by what they
accept in practice. Cultural change needs clear vision, commitment, persistence and
determination. In today's increasingly uncertain and turbulent times, organisations must depend
on the people in their systems to develop a culture of innovation and change. It is people who
will push for change - not systems or technology. Some organisations are better at sustaining a
dynamic environment, one that can adapt and change to new demands and some organisations
resist each change imposed on them.
1. There are number of factors that decide or define the culture of an organization
including:
A. Structure and size, leadership

B. Environment, events, nature of business and nature of client.
C. Both A&B
D. None
2. Cultural web – is responsible for the prevailing culture and consists of interrelated
elements of culture including:
A. Routines and rituals, stories and myths

B. Symbols, power structure, organization structure and control systems.
C. Both A&B
D. None
3. Organizational Culture –
A. It refers to a set of beliefs, values and attitudes shared by everyone in the
organization.
B. It refers to the way in which organizations are managed.
C. Both A&B
D. None
4. Corporate culture –
A. It refers to a set of beliefs, values and attitudes shared by everyone in the

organization.
B. It refers to the way in which organizations are managed.
C. Both A&B
D. None
5. The factors shape the culture of a workgroup or an organization include:
A. Structure and size

B. Leadership
C. Nature of Business
D. All of the above
6. The existence of a well-defined, engraved and robust culture can bring

dysfunctional aspects to an organization as well. Which of the following may be the
key dysfunctional aspects?
A. Shared Values not aligned

B. Creating barriers to change towards something that is not considered part of the
existing culture
C. Creating barriers to diversity
D. All of the above
7. According to Edgar Schein, there are levels of culture that members of an organisation
acquire including:
A. the outer skin, or artefacts

B. the inner layer (or espoused values)
C. the paradigm (basic underlying assumptions)
D. All of the above
8. The paradigm –
A. is a term for the shared assumptions and attitudes about what really matters, that
are taken for granted and rarely discussed
B. These affect the way that the organization sees itself and the environment in
which it operates, and is the real ‘core’ culture of the organization.
C. Is a constellation of concepts, values, perceptions and practices shared by a
community, which forms a particular vision of reality that is the basis of the way a
community organizes itself.
D. All of the above
9. Charles Handy’s categories of organizational culture include:

1.
A. A power culture, also called a club culture and a spider’s web culture
B. A role culture
C. A task culture
D. A personal culture, also called an existential culture
E. All of the above
10. A power culture is often found in small entrepreneurial organisations, where the
boss is usually the founder of the business and also a dominant personality, who
exercises close control over activities.
A. A power culture is based on trust.

B. The ‘boss’ maintains freedom of manoeuvre, and retains power, by writing very
little down and relying on the spoken word.
C. The ‘boss’ tries to influence other people through the force of his personality, and
personal charm.
D. All of the above
11. Role culture –
A. A role culture is probably the most readily-understood of the four corporate

cultures.
B. It exists in a bureaucracy
C. A role culture is probably best-suited to a large organisation in a fairly stable
business environment.
D. All of the above
12. Hofstede suggested that there are dimensions to differences in organization culture
arising from differences in national culture including:
A. Power-distance, Masculinity versus femininity
B. Individualism versus collectivism
C. Uncertainty avoidance, Long-term orientation versus short-term orientation
D. All of the above
13. A personal culture, also called an existential culture.

A. True
B. False
14. Charles Handy model suggests that there are four different categories of
organizational culture. described as cultural ‘stereotypes’
A. True
B. False
15. The foundation for corporate culture are laid by _______________
a. Corporate members
b. Competitors
c. Founders
d. Industry standard
16. An organization’s ______________ embraces the behavior, rituals and shared meaning
held by employees that distinguishes the organization from all others.
a. External environment
b. Culture
c. Dominant culture
d. Ethics
17. Components of corporate culture includes ____________
a. Vision and values
b. Practices and people
c. Narrative and place
d. All of these
18. Commitment, competence and consistency are three distinct characteristics that
result in ______________
a. Culture building
b. Values
c. Organizational socialization
d. Attitudes
19. Types of corporate culture are ____________
a. Clan culture and Adhocracy culture
b. Market culture and hierarchy culture
c. Both (a) & (b)
d. None of these
20. The practices of a company for which it is accountable in relation to other parties is
called ____________
a. Social responsibility
b. Code of Ethics
c. Values
d. Culture
ROLE OF INFORMATION IN ORGANISATION
QUES 1: DISCUSS THE ROLE INFORMATION SYSYTEM IN ORGANISATION
To gain the maximum benefits from your company's information system, you have to exploit
all its capacities. Information systems gain their importance by processing the data from
company inputs to generate information that is useful for managing your operations. To
increase the information system's effectiveness, you can either add more data to make the
information more accurate or use the information in new ways.
Business Communication Systems
Part of management is gathering and distributing information, and information systems can
make this process more efficient by allowing managers to communicate rapidly. Email is quick
and effective, but managers can use information systems even more efficiently by storing
documents in folders that they share with the employees who need the information. This type
of communication lets employees collaborate in a systematic way.
Each employee can communicate additional information by making changes that the system
tracks. The manager collects the inputs and sends the newly revised document to his target
audience.
Business Operations Management
How you manage your company's operations depends on the information you have.
Information systems can offer more complete and more recent information, allowing you to
operate your company more efficiently. You can use information systems to gain a cost
advantage over competitors or to differentiate yourself by offering better customer service.
Sales data give you insights about what customers are buying and let you stock or produce
items that are selling well. With guidance from the information system, you can streamline
your operations.
Company Decision-Making
The company information system can help you make better decisions by delivering all the
information you need and by modeling the results of your decisions. A decision involves
choosing a course of action from several alternatives and carrying out the corresponding tasks.
When you have accurate, up-to-date information, you can make the choice with confidence.
If more than one choice looks appealing, you can use the information system to run different
scenarios. For each possibility, the system can calculate key indicators such as sales, costs and
profits to help you determine which alternative gives the most beneficial result.
Company Record-Keeping
Your company needs records of its activities for financial and regulatory purposes as well as
for finding the causes of problems and taking corrective action. The information system stores
documents and revision histories, communication records and operational data. The trick to
exploiting this recording capability is organizing the data and using the system to process and
present it as useful historical information. You can use such information to prepare cost
estimates and forecasts and to analyze how your actions affected the key company indicators.
Management information systems can help you make valid decisions by providing accurate
and up-to-date information and performing analytic functions. You have to make sure the
management information system you choose can work with the information formats available
in your company and has the features you need. Suitable management information systems
can structure the basic data available from your company operations and records into reports
to present you with guidance for your decisions.
Information from Company Operations
When you base your decisions on data available from management information systems, they
reflect information that comes from the operations of your company. Management information
systems take data generated by the working level and organize it into useful formats.
Management information systems typically contain sales figures, expenses, investments and
workforce data. If you need to know how much profit your company has made each year for
the past five years to make a decision, management information systems can provide accurate
reports giving you that information.
Capability to Run Scenarios
The capability to run scenarios is a key decision-making tool. Some management information
systems have this feature built in, while others can provide the information required for
running scenarios on other applications, such as spreadsheets. Your decision is influenced by
what happens if you decide a certain way. What-if scenarios show you how different variables
change when you make a decision.
You can enter reduced staff levels or increased promotion budgets and see what happens to
revenue, expenses and profit for different levels of cuts or increases. Management information
systems play a critical role in making realistic scenarios possible.
Projections to Assist in Decision Making
Any decisions you make result in changes in the projected company results and may require
modifications to your business strategy and overall goals. Management information systems
either have trend analysis built in or can provide information that lets you carry out such an
analysis. Typical business strategies include projections for all fundamental operating results.
A trend analysis allows you to show what these results would be in the current situation and
how they will change once you have implemented the decisions you have taken. The new
values form the basis of your strategic approach going forward.
Implementation and Evaluation
While you make your decisions with specific goals in mind and have the documentation from
management information systems and trend analysis to support your expectations, you have to
track company results to make sure they develop as planned. Management information systems
give you the data you need to determine whether your decisions have had the desired effect, or
whether you have to take corrective action to reach your goals. If specific results are not on
track, you can use management information systems to evaluate the situation and decide to
take additional measures if necessary.
Organizations strive to be market leaders in their given industry. In climates where factors
such as recession, inflationary pressures and increased competition can hinder the
achievement of this goal, companies look for strategies that lead to competitive advantages.
One such strategy is the adoption of information systems within the company. Information
systems help a company make adequate use of its data, reduce workload and assist with
compliance with various mandatory regulations.
At the date of publication, many companies no longer manage their data and information
manually with registers and hard-copy formats. Through the adoption of information systems,
companies can make use of sophisticated and comprehensive databases that can contain all
imaginable pieces of data about the company. Information systems store, update and even
analyze the information, which the company can then use to pinpoint solutions to current or
future problems. Furthermore, these systems can integrate data from various sources, inside
and outside the company, keeping the company up to date with internal performance and
external opportunities and threats.
Implementing information systems within an organization can prove to be costly.

Implementation costs include not only installation of the systems but also employee training
sessions. In addition, employees may see the adoption of information systems as an
unwarranted change and, thus, may resist this change. Resistance to change can hinder
business operations and can cause employee turnover.
Companies should have leadership in place to assess the adequacy of the decision to have an
information system and to guide the company through the transition phase and weigh
information systems cost against the potential benefits.
QUES 2: DISCUSS THE VARIOUS INFORMATION SYSTEM USED BY
ORGANISATIONS.
Organizations use several types of information systems to suit their needs. The various types
of information systems that an organization uses may be classified into the following categories:
 Office automation systems

 Transaction processing system
 Decision support systems
 Executive information systems
 Business expert system
Apart from these broad classes of information systems, organizations also use specific
information systems for some special tasks like executive information system, enterprise (wide)
resource planning systems, customer relationship management systems and supply chain
management system. These systems also fall under the above broad classification.
 Office Automation Systems
 Transaction Processing System
 Decision Support Systems
 Executive Support System
 Business Expert System
Office Automation Systems
This type of information system aids in automating office tasks. They have a limited role in
decision-making and are more useful for operational level people. The information coming out
of this kind of system can be used for rule-based decision-making for managers at the
operational level. These systems however play an important role in automating several
functions of an office and thus help in creating paperless offices. These kinds of systems help in
increasing the productivity and efficiency of the office workforce by automating simple tasks.
These systems mostly deal with operational data. More and more modern businesses are opting
for this paperless office environment as this brings in the following unique advantages for the
business:
 Office work becomes faster and process driven.

 All basic level data is digitized and stored for future action.
An example of office automation system is the office suite of software that helps in automating
simple office tasks like presentations and documentation. Sometimes we also come across a
class of systems called the operations support system (OSS). OSS also work with the lowest
levl31of management is ensuring that the operations of the firm are performed smoothly. OSS
can be very different from Office Automation System even though they both help bottom level
managers, in term of the information complexity involved.
Transaction Processing System
This type of system is critical to the smooth functioning of an organization. The objective of
this kind of system is to capture all transaction related data between the organization and its
external and internal customers. Typically, these transaction level data are stored in a pre-
formatted manner in a relational database for further action in future. TPS is the most widely
used form of information systems as they provide the management with the flexibility of storing
data in a structured manner and retrieving it at a later date using a query facility. The system
also helps in aggregating and summarizing the data for creating of management reports. These
reports are further improved by using visualization tools that help the management in
understanding situations and scenarios better. These systems deal with tactical data from within
the organization.
An example of TPS would be the sales management system with a relational database
management system at the server side back end and a customized front end to interact with the
users.
Decision Support Systems

Decision support systems help senior management to take strategic decisions. Contrary to the
other systems, decision support systems are developed with the objective of providing the users
(top management personnel) with unstructured information. These systems help the
management to develop ‘what if analysis’ so that different scenarios can be developed for
decision-making. Decision support systems deal with both internal and external data. Such
systems are custom built with features like business dashboard and scenario panel.
Such systems are complex with working models (internal) on the data to provide the senior
managers with decision support. Unlike transaction processing systems, these systems are not
query dependent only. Their main role is to access data from a data repository and then pass that
data through a model (mathematical, heuristic, statistical, econometric, operations research and
combinatorial), so that the senior management can take better decisions by doing either ‘what if
analysis’ and scenario building or by doing ‘predictive analysis’ to get some insight into a
business issue. Such systems are very costly to build and require advanced analytics tools.
Executive Support System

Executive support system is also known as the executive information (support) system. It began
to gain acceptance in the mid-eighties in large corporations and is now used even is smaller
corporations. In functionality, it is nearer to decision support systems than management
information systems. Its main objectives are to provide a macro-organization wide view for
senior executives, by providing a very user-friendly user-interface so that proactive steps may
be taken to beat competition. It provides timely and proactive organization tracking and control.
It is able to perform these tasks by providing fast access to all type of data and by filtering and
tracking critical data and information. It helps to identify problems and opportunities and thus,
helps senior executives to troubleshoot problems and take advantage of opportunities.
Business Expert System
Some business scenarios are so complex that they require the help of advanced systems that can
provide expert solutions. These systems use artificial intelligence and neutral networks to reach
the performance level of a human expert thereby helping the organization. These systems are
different from any other information system as they are capable of decision-making by
themselves without human intervention. Actually, these systems are loaded with the knowledge
of experts and these systems simply simulate the expert knowledge to arrive at decisions.

QUES 3: How do the organizations use their strategic information systems for gaining
competitive advantage?
Information and its use has become the competitive advantage of today’s world. The efficiency
with which a firm manages its information determines its success in the marketplace. This
enormous power of information unleashed in today’s world has brought down reaction times for
decision-making of managers, made customers more aware, competitors more efficient and
regulators more alert.
Today, one can no longer hide behind excuses of ‘plausible deniability’. These changes have
resulted in a change in mindset of managers and have transformed the way business is
conducted. Management of information itself has become a key success factor for firms.
However, information is not to be seen in isolation. Information in the current competitive
business environment is available to business firms in a computerized environment.
Computerization is required to make the information supplied to be timely and accurate, which
are critical factors for success in these competitive times.
Hence, the study of information management entails an understanding of information and
communication technology also. However, information management is a distinct subject not
related (other than the practical considerations of providing the output information timely and
accurately) to information and communication technology. Let us now delve deeper into the
subject to get a clear understanding of the basic concepts that drive management information
systems.
As is clear, the advantage that a modern corporate house enjoys can be traced to its management
of information. If the business house cannot manage its information, then it is likely that it will
not have any competitive advantage. Typically an organization can develop competitive
advantage if it can, does or have what others can’t, do or have. In modern times, the advantages
on account of raw materials, technological edge, etc., is being neutralized by the forces of
modern business. The last frontier so to say is information management. Companies that have
managed to do it successfully like Dell, Google, etc., have generated an unparalleled
competitive advantage as their reaction time to changes in the market and/or competition is
much less and hence, they can shift business gears faster than their competitors and hence the
advantage. Competitive advantage through managing information can accrue to an organization
if it:
 Manages information to reduce reaction time for change

 Managing information makes the organization efficient
 Information management leads to insights into the business that the competitors cannot
have
 Information management is used for predictive analysis so that the organization is one
step ahead of competition.
This competitive advantage gained by managing information also requires changes in
organization cultures. Companies need to create a culture of information based management and
decision-making to take advantage of the opportunities of information management. This is a
challenge, as installing an organizational culture is not as straightforward as installing an
information management system. It is a process that takes a lot of time.
A Strategic Information System can offer competitive advantage to an organization in the

following ways:
1) Creating barriers to competitor’s entry: In this strategy, an organization uses information
systems to provide products or services that are difficult to duplicate or that are used to serve
highly specialized markets. This prevents the entry of competitors as they find the cost for
adopting a similar strategy very high.
2) Generating databases to improve marketing: An information system also provides

companies an edge over their competition by generating databases to improve their sales and
marketing strategies. Such systems treat existing information as a resource. For example, an
organization may use its databases to monitor the purchase made by its customers, to identify
different segments of the market, etc.
3) ‘Locking in’ customers and suppliers: Another way of gaining competitive advantage is by
locking in customers and suppliers. In this concept, information systems are used to provide
such advantages to a customer or a supplier, that it becomes difficult for them to switch over to
a competitor. For example, an organization may develop its information system and give many
benefits to its customers, like reliable order filling, reduced transaction costs, increased
management support and faster delivery service.
4) Lowering the costs of the products: strategic information systems may also help
organizations lower their internal costs, allowing them to deliver products and services at a
lower price than their competitors can provide. Thus such information systems can contribute to
the survival and growth of the organization. For example, airlines use information systems
strategically to lower costs so that they may counter competitor’s discount fares.
5) Leveraging technology in the value chain: This approach pinpoints specific activities in the
business where competitive strategies can be best applied and where information systems are
likely to have a greater strategic impact. This model advocates that information technology can
best be used to gain competitive advantages by identifying specific, critical leverage points.
Q1 – Management information systems (MIS)

1. create and share documents that support day-today office activities
2. process business transactions (e.g., time cards, payments, orders, etc.)
3. capture and reproduce the knowledge of an expert problem solver
4. use the transaction data to produce information needed by managers to run the
business
Q2 – The term used to describe those people whose jobs involve sponsoring and funding the
project todevelop, operate, and maintain the information system is
1. information worker
2. internal system user
3. Systems owner
4. external system user
Q3 – The person who ensures that systems are developed on time, within budget, and with
acceptable quality is a
1. systems designer
2. project manager
3. systems owner
4. external system user
Q4 – Which one of the following is not a business driver for an information system?
1. business process redesign
2. knowledge asset management
3. proliferation of networks and the Internet
4. security and privacy
Q5 – A task of developing a technical blueprint and specifications for a solution that
fulfills the business requirements is undertaken in the following phase of the system
development process
1. system initiation
2. system implementation
3. system analysis
4. system design
Q6- If a university sets up a web-based information system that faculty could access to
record student grades and to advise students, that would be an example of a/an
1. CRM
2. intranet
3. ERP
4. extranet
Q7 – Which of the following is not a technology driver for an information system?
1. enterprise applications
2. object technologies
3. knowledge asset management
4. collaborative technologies
Q8 – Which of the following is a deliverable of the system implementation phase in a
formal system development process?
1. technical hardware and software solution for the business problem
2. business problem statement
3. statement of the system users’ business requirements
4. technical blueprint and specifications for a solution that fulfills the business requirements
Q9 – An information system that supports the planning and assessment needs of executive
management is
1. DSS
2. TPS
3. MIS
4. none of the above
Q10 – Decision makers who are concerned with tactical (short-term) operational problems
and decision making are
1. middle managers
2. executive managers
3. supervisors
4. mobile managers
Q11- The application of information to scan an organisation’s environment is:

1. external communication.
2. information overload.
3. sensing.
4. internal communication.
Q12 – When a bank uses information to launch a personalised credit card product this:
1. manages risks.
2. creates a new opportunity.
3. adds value.
4. reduces costs.
Q13 – When a bank uses business performance management software to monitor its
performance in differences regions this:
1. reduces costs.
2. manages risks.
3. adds value.
Q14 – When a bank offers web self-service for customers to answer their questions, the
primary outcome is:
1. adds value.
2. manages risks.
3. reduces costs.
Q15 -The general transformation cycle for information is:
1. information to data to knowledge.
2. knowledge to data to information.
3. data to knowledge to information.
4. data to information to knowledge.
Q16 -The most important attribute of information quality that a manager requires is:
1. relevance.
2. media.
3. presentation.
4. timeliness.
Q17- To improve the performance of a business process, which of the following is most
relevant?
1. Input.
2. Processing.
3. Control and feedback
4. Output.
Q18 – Monitoring the legal constraints which a company operates under requires review
of:
1. a company’s customers.
2. a company’s outputs.
3. a company’s macro-environment.
4. a company’s micro-environment.
Q19 – The majority of publically available Internet information sources are:

1. created in XML.
2. structured information.
3. normal information.
4. unstructured information.
Q20- Records management:

1. is a discipline limited to digitised paper documents.
2. is a discipline limited to library books.
3. is a discipline limited to paper documents.
4. none of the above
Q21 – Which of the following should be represented on an information flow diagram?

1. Entity
2. Source
3. Process
4. Attribute
MANAGERIAL DECISION MAKING

QUES 1: WHAT IS MEANT BY DECISION MAKING? DISCUSS THE DIFFERENT
KINDS OF MANAGERIAL DECISION MAKING.
Within the company’s managerial process the decisional component occupies a very important
position. The decision has a high impact on management and is active in all the company’s plans
of activities and results. Decision management has a direct influence on the group, affecting also
a single individual’s status, behaviour, actions and results. Therefore, the design and
implementation of decision should take into consideration the characteristics of the job, training,
motivating potential, etc. of the members of that group. Decision management has always
determined directly economic, human, technical, educational, etc. schedule at least at the level of
a section of the company. Decision making is a manager’s central work, all the other activities
being conducted to ensure correct decisions or, if the decision was already taken, to implement
and monitor its effectiveness.
In today’s changing environment, the complex process of decision-making becomes more

difficult. Decision makers are constrained by the environment acting. Experienced managers
know that the effectiveness of a decision is determined by two criteria: decision quality and
commitment of those who must implement. The quality of a decision is determined by how it is
carried out when making decisions. A quality decision is not implemented but that is ineffective.
Implementation is determined by attachment, for which the degree of involvement of those who
will implement the decision is vital for successful decision-making. Decisions are the essence of
management; the study of the decision making process is getting more and more important
because the effectiveness of the activities taking place in business depends on the way decisions
are largely designed and implemented.
Types of decision-making
1. Programmed and non programmed decisions: Programmed decisions are those which are
normally repetitive in nature and are taken as a routine job and responsibilities. These types of
decisions are made by middle level management in accordance with some policies, rules and
procedures. They have short term impact. For example: – granting a leave to an employee,
purchasing office materials etc. non programmed decisions are non repetitively taken by top
executives. They need to collect data and analyze them and forecast the strategic plans.
2. Major and minor decisions: among different decisions some decisions are considerably
more important than others and are prioritized. They are called major decisions. For example,
replacement of man by machine, diversification of product etc. contrary to that, some remaining
decisions are considerably less important than others and are not so prioritized. They are minor
decisions. For example, store of raw materials etc.
3. Routine and strategic decisions: Routine decisions are those decisions which are considered
as tactical decisions. They are taken frequently to achieve high degree of efficiency in the
organizational activities. For example, parking facilities, lighting and canteen etc. strategic
decisions are those which are related to lowering the prices of products, changing the product
etc. they take more fund and degree of partials.
4. Organizational and personal decision: Organizational decision is taken by top executives.
For official purpose. They affect the organizational activities directly. Authority is also
delegated. Personal decisions are concerned to an employee. The executives whenever takes the
decisions personally that is known as personal decisions.
5. Individual and group decisions: When a single employee is involved in decision-making it is
called individual decision. They are taken by ole proprietor when the problem is of routine
nature. On the other hand when the decision is taken in a large organization where important and
strategic decisions are taken, it is a group decision.
6. Policy and operating decisions: Policy decisions are taken by top-level management to

change the rules, procedures, organizational structure etc, and they have a long tern effect.
Operational decisions are taken by low level management which have short term effect and
which affect the day-to-day operation of the organization.

QUES 2: HOW DECISION MAKING IS IMPORTANT FOR THE ORGANISATION?
DISCUSS THE DECISION MAKING PROCESS.
Decision making is a daily activity for any human being. There is no exception about that.
When it comes to business organizations, decision making is a habit and a process as well.
Effective and successful decisions make profit to the company and unsuccessful ones make
losses. Therefore, corporate decision making process is the most critical process in any
organization.
In the decision making process, we choose one course of action from a few possible
alternatives. In the process of decision making, we may use many tools, techniques and
perceptions.
In addition, we may make our own private decisions or may prefer a collective decision.
Usually, decision making is hard. Majority of corporate decisions involve some level of
dissatisfaction or conflict with another party.
Decision making is the process of making choices by identifying a decision, gathering
information, and assessing alternative resolutions.
Using a step-by-step decision-making process can help you make more deliberate, thoughtful
decisions by organizing relevant information and defining alternatives. This approach increases
the chances that you will choose the most satisfying alternative possible.
The business decision-making process is a step-by-step process allowing professionals to

solve problems by weighing evidence, examining alternatives, and choosing a path from
there. This defined process also provides an opportunity, at the end, to review whether the
decision was the right one.
Step 1: Identify the decision

You realize that you need to make a decision. Try to clearly define the nature of the decision you
must make. This first step is very important.
Step 2: Gather relevant information

Collect some pertinent information before you make your decision: what information is needed,
the best sources of information, and how to get it. This step involves both internal and external
“work.” Some information is internal: you’ll seek it through a process of self-assessment. Other
information is external: you’ll find it online, in books, from other people, and from other sources.
Step 3: Identify the alternatives

As you collect information, you will probably identify several possible paths of action, or
alternatives. You can also use your imagination and additional information to construct new
alternatives. In this step, you will list all possible and desirable alternatives.
Step 4: Weigh the evidence

Draw on your information and emotions to imagine what it would be like if you carried out each
of the alternatives to the end. Evaluate whether the need identified in Step 1 would be met or
resolved through the use of each alternative. As you go through this difficult internal process,
you’ll begin to favor certain alternatives: those that seem to have a higher potential for reaching
your goal. Finally, place the alternatives in a priority order, based upon your own value system.
Step 5: Choose among alternatives

Once you have weighed all the evidence, you are ready to select the alternative that seems to be
best one for you. You may even choose a combination of alternatives. Your choice in Step 5 may
very likely be the same or similar to the alternative you placed at the top of your list at the end of
Step 4.
Step 6: Take action

You’re now ready to take some positive action by beginning to implement the alternative you
chose in Step 5.
Step 7: Review your decision & its consequences
In this final step, consider the results of your decision and evaluate whether or not it has resolved
the need you identified in Step 1. If the decision has not met the identified need, you may want to
repeat certain steps of the process to make a new decision. For example, you might want to
gather more detailed or somewhat different information or explore additional alternatives.
QUES 3: HOW DOES THE ORGANISATION DEVELOP CREATIVITY IN DECISION

MAKING? HOW IINFORMATION TECHNOLOGY IS RELATED TO DECISION
MAKING?
If a decision maker is going to produce novel alternatives when solving a problem, then he or she
is going to need a little creativity to help the process along. Creativity allows the decision maker
to more fully appraise and understand the problem . . . sometimes in ways others can’t see it.
Creativity is the ability to link or combine ideas in novel ways, and their unique alternatives have
to be considered useful to others. Creativity is also known as divergent or lateral thinking.
Lateral thinking moves away from the linear approach that’s advocated in rational decision
making. Some researchers feel that employee and manager creativity is the hallmark of an
organization’s success—that solving old organizational issues in new ways creates
organizational effectiveness.
If creativity is the key to organizational effectiveness, then how do we get some of that? Is there
a way that organizations can foster creativity for the benefit of decision making?
First, it’s important to note the characteristics of creative people, so we can understand what
we’re aiming for in our creative environment. Creative decision makers seem to have an ability
to sift through the massive amounts of information that can be reviewed when making a decision,
and decide what information is and isn’t relevant. Still, they listen to all sources to understand
where problems are emerging. And when they’re ready, they present a solution that’s bold and
well informed. They don’t rely on the rational decision making model . . . they rely on something
more than that. Creativity.
Four characteristics that creative leaders seem to have in common:

 Perseverance in the face of obstacles and adversity
 Willingness to take risks
 Willingness to grow and openness to experience
 Tolerance of ambiguity
 Effective use of analogy to apply a known situation to an unknown situation
Organizationally (and individually) speaking, there are certain factors that, when they exist, tend
to point to a more creative atmosphere.
 Questioning attitude. Organizations that don’t invite the questioning of values,
assumptions or norms are not likely to be very creative. Organizations need to continually
question the long-held beliefs of their industry if they’re going to stay ahead of the curve
and come up with creative ways to bring services and products to their customers.
 Culture. Our traditional values are sometimes at odds with the creative solutions we might
come up with to solve organizational problems. If an organization’s culture puts too much
emphasis on tradition, they’re likely to stifle creativity around problem solving.
 Leadership. Similar to culture, leaders who are bound to traditional characteristics of the
leader-follower relationship, who don’t promote questioning attitudes or invite their
employees to challenge the status quo, will not do much to foster a creative environment.
 Attitude toward risk. Finally, employees who are afraid to try something new will never
put their creative solutions into action! Just as one of the characteristics of a creative leader
is a willingness to take risks, so must employees feel comfortable doing so in an
organization.
Overall, creativity is likely to flourish in an environment that’s open and encourages

participation. Keeping everyone on an even playing field, with no organizational encouragement
for an “us versus them” type of environment will increase dialogue and keep ideas flowing.
INFORMATION TECHNOLOGY IS RELATED TO DECISION MAKING

Information Technology (IT) has made a direct and positive impact on corporate decision
making. Companies have found uses for IT systems as they have developed and become readily
available as well as viable. More specifically, firms have found applications of IT for their
enterprise decision making requirements. As with any IT system, the users and managers hope
to find a fruitful use of the resource. A manager needs access to data in order to provide
information on which to base his/her analysis and resulting decision. Putting that data and
analysis tools in the hands of the manager is part of the decision making process.

Data Access. Managers today have access to more data at a faster rate than ever before in
any industry. Many IT assets provide the managers with access to the data and with the
performance to get data at rapid speeds. For instance, the Internet offers a wealth of
information. A file server provides an excellent central repository for data with many
gigabytes of file storage. A modern desktop computer can store more data than a file
server could just five years prior.

Collaboration. Managers can exchange data in a collaborative manner with other
workers. This provides them with the ability to get input or make input on critical
decisions. Technology to foster collaboration includes applications such as electronic
mail, teleconferencing, intranets, document management systems, and groupware.
Specific applications include Lotus Notes - groupware, Microsoft Outlook - electronic
mail, Microsoft NetMeeting - teleconferencing, ZyIndex - document management,
Microsoft Exchange - groupware, and Novell Groupwise - groupware.

E-commerce. The e-commerce capabilities of the Internet also offer managers with tools
to assist in their decision making process. There are business-to-business interaction
capabilities on many corporate web sites. For a product under evaluation for purchase a
manager can get technical specifications, configuration data, and cost information from
many vendors all online and then make a more informed decision.
Systems Integration. It is basically impossible to implement any true DSS without the
involvement of IT. A role of IT is to bring together the systems needed to provide the decision
makers with the information needed. This is systems integration. A decision support system
includes the data itself and the analysis tools to work on that data. The IT team works to install
the overall system and ensure proper operation with continued access. Access to other data in
the enterprise can include disparate technology or legacy systems. A common link can be
created to allow the exchange of data between many sources. It is the job of the IT infrastructure
to complete that link. It is the job of the IT infrastructure to provide the layer of technology
necessary to perform the data storage and analysis processing. So the IT assets of the firm are
critical to the decision making process for support of the actual systems.
Senior Management. The importance of IT in the decision process is evident in the creation of
the position of Chief Information Officer (CIO) in most large firms. Companies have found it
beneficial, and almost necessary, to have a senior executive to guide the direction of their efforts
on enterprise decision making. The CIO has a role to look at the business from a strategic
standpoint versus the typical organizational role of IT. This assists in the ability of IT to
facilitate decision making systems.
Conclusion. The role of IT in decision making has become more important than ever before as
companies are provided with a wealth and breadth of information as a result of IT resources.
The positive impact of IT has also been noted in the application of various decision support
systems.
1. Decision support systems are used for

a Management decision making
b Providing tactical information to management
c Providing strategic information to management
d Better operation of an organization
2. Decision support systems are used by

a Line managers.
b Top-level managers.
c Middle level managers.
d System users
3. Decision support systems are essential for

a Day–to-day operation of an organization.
b Providing statutory information.
c Top level strategic decision making.
d Ensuring that organizations are profitable
4. A management information system is one which

a is required by all managers of an organization
b processes data to yield information of value in tactical management
c provides operational information
d allows better management of organizations
5. Online transaction processing is used because

a it is efficient
b disk is used for storing files
c it can handle random queries.
d Transactions occur in batches
6. On-line transaction processing is used when

i) it is required to answer random queries
ii) it is required to ensure correct processing
iii) all files are available on-line
iv) all files are stored using hard disk
a i ,ii
b i, iii
c ii ,iii, iv
d i , ii ,iii
7. Off-line data entry is preferable when

i) data should be entered without error
ii) the volume of data to be entered is large
iii) the volume of data to be entered is small i
v) data is to be processed periodically
a i, ii
b ii, iii
c ii, iv
d iii, iv
8. The quality of information which does not hide any unpleasant information is known as
a Complete
b Trustworthy
c Relevant
d None of the above
9. Which of the following functions is most unlikely in a purchase section of an organization.

a Production planning
b order processing
c vendor selection
d training
10. Which is the most unlikely function of a marketing division of an organization.

a advertising
b sales analysis
c order processing
d customer preference analysis
11. Which is the most unlikely function of a finance section of a company.

a Billing
b costing
c budgeting
d labor deployment
12. For taking decisions data must be

a Very accurate
b Massive
c Processed correctly
d Collected from diverse sources
13. Strategic information is needed for

a Day to day operations
b Meet government requirements
c Long range planning
d Short range planning
14. Strategic information is required by

a Middle managers
b Line managers
c Top managers
d All workers
15. Tactical information is needed for

a Day to day operations
b Meet government requirements
c Long range planning
d Short range planning
16. Process of planning begins with

(A) Forecasting
(B) Setting objectives
(C) Setting policies
(D) None of the above
17. Which among these is not a feature of decision making process?
(A) Persuasiveness
(B) Intellectual
(C) Line function
(D) None of these
18. The main advantage of functional organisation is:

(A) Simplicity
(B) Specialisation
(C) Experience
(D) None of these
19. What are the principles of office layout?

(A) Principles of effective supervision
(B) Principle of morale and loyalty
(C) Both (A) and (B)
(D) None of the above
20. Factor causing unethical conduct in business is:

(A) Fair competition
(B) Government policies
(C) Economic greed
(D) Increasing social values

Management Theory and Practice

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MANAGEMENT THEORY AND PRACTICE

Q 1.HOW MANAGEMENT IS CONSIDERED AS SCIENCE AND AS AN ART?

Management as both Science and Art

3. Make of Proper Organisation Climate

QUES 3. DISCUSS THE NATURE AND PURPOSE OF MAANGEMENT.

 Achieving Group Goals: Management encourages collaboration and coordination

10. Management is said to be poor if it is

18. Management is considered to be an art because

24. Which of the following is a function of top level management?

30. Organising as a function of management involves deciding

36. Co-ordination is considered to be the essence of management because

3. Industrial Revolution:- This period is known as the period of scientific management. It is

The development of management thought is the result of contributions made by pioneering

QUES. 2. MENTION THE CONTRIBUTION OF F.W.TAYLOR TO MANAGEMENT

The contribution of F. W. Taylor to management thought is as explained below:

QUES3. DISCUSS THE CONTRIBUTIONS MADE BY HENRY FAYOL TO

Henry Fayol‘s contribution to management theory is certainly remarkable. He gave overall

4. Management can be considered as………………..

15. Koontz and O’Donnel are the advocates of ……………….approach to management

16. According to....................approach, management is a logical process and it can be expressed

17. ……………….approach of management heavily concentrates on ‘People’ aspect of

QUES 2. DISCUSS THE MATRIX MODEL IN AN ORGANISATION. MENTION ITS

QUES 3. WHAT IS MEANT BY THE TERM ‘ORGANISATIONAL DESIGN’? STATE

A few things that help build positive relationships are:

1. Which of the following are 5 parts of any organisation given by Mintzberg?

2. Match the following elements of organisation with their characteristics

1. Strategic apex ----- A. Decentralised and professional bureaucracy

2. Techno - structure ------ B. Centralised and Simple structure

3. Middle line ------ C. Dominant standardisation and machine bureaucracy

4. Support staff ------ D. Autonomy and Divisional structure

5. Operating core ------- E. Mutual adjustments and machine bureaucracy

a. 1-B, 2-C, 3-D, 4-E, 5-A

3. State true or false

i. Simple structure is a matrix organisation.

I. Simple Structure ------ A. Flexible and limited applicability

III. Professional Bureaucracy------ C. Performing specialised tasks and compulsion to follow

IV. Divisional Structure --------- D. functional goals override organisational goals

V. Adhocracy -------------E. Ad-hoc teams and conflicts

a. I-A, II-B, III-C, IV-D, V-E

View Answer / Hide Answer

5. State true or false

8. Which of the following company follow divisional structure?

QUES 3. HOW TO AFFECT CULTURAL CHANGE IN AN ORGANISATION?

A. Structure and size, leadership

A. Routines and rituals, stories and myths

A. It refers to a set of beliefs, values and attitudes shared by everyone in the

A. Structure and size

6. The existence of a well-defined, engraved and robust culture can bring

A. Shared Values not aligned

A. the outer skin, or artefacts

9. Charles Handy’s categories of organizational culture include:

A. A power culture is based on trust.

11. Role culture –

A. A role culture is probably the most readily-understood of the four corporate

13. A personal culture, also called an existential culture.

Business Communication Systems

Business Operations Management

Information from Company Operations

Capability to Run Scenarios

Projections to Assist in Decision Making

Implementation and Evaluation

Implementing information systems within an organization can prove to be costly.