MG8591 / PRINCIPLES OF MANAGEMENT Rational decision making is the opposite of

Class : IV CSE B Internal Test – II Answer key intuitive decision making. It is a strict
procedure utilising objective knowledge and
PART – A (7x2 = 14 )
1. Give the necessity of organization. logic. It involves identifying the problem to
Organisation allows you to add more structure to your solve, gathering facts, identifying options and
work life so that you can better control your workload outcomes, analysing them, considering all the
and break it into manageable tasks. relationships and selecting the decision.
2. Define decentralization. Rational Decisions in Organisations:
Decentralisation is the process of transferring authority Theoretical and Practical Aspects presents
from the Supreme and state levels to the local level. selected recent developments in the support
3. What do you understand by strategic management? of the widely understood rational decision
Strategic management is the process of setting goals,
making in organisations, illustrated through
procedures, and objectives in order to make a company
case studies. The book shows not only the
or organization more competitive.
4. Distinguish between policy and rules. variety of perspectives involved in decision
Policies are general statements that guide thinking and making, but also the variety of domains where
channel energy toward a particular direction. Rules are rational decision support systems are needed.
specific statements that inform what must and must not The case studies present decision making by
be done. medical doctors, students and managers of
5. Define career management. various universities, IT project teams,
Career Management is a life-long process of investing construction companies, banks and small and
resources to accomplish your future career goals.
6. What do you understand by organization chart?
large manufacturing companies.
Organizational chart is a diagram that visually conveys
a company's internal structure by detailing the roles, (ii) Define MBO and explain the various steps involved in it. (8
marks )
responsibilities, and relationships between individuals
within an entity. Management by objectives (MBO) uses a set of
7. State job design. quantifiable or objective standards against which to
Job design refers to the way that a set of tasks, or an measure the performance of a company and its
entire job, is organized. Job design helps to determine: employees.
What tasks are done.
Part – B
8. Describe the human resource management activities in
a business organization. (13 Marks)
Human Resource activities fall under 7 core functions:
Recruitment and Selection,
Training and Development,
Performance Management,
Employee Relations,
Employment Law and Compliance,
Compensation and Benefits and
Administration,
Payroll & HR Systems.
9. Explain the benefits and limitations of decentralization
in detail. (8 marks)
Benefits of decentralization
1. Motivation of Subordinates
2. Growth and Diversification
3. Efficient Communication
4. Ease of Expansion
5. Better Supervision and Control
6. Satisfaction of Human Needs
7. Key Personnel are no more than Consultants
Disadvantages of Decentralization
1. Difficult to Coordinate/Delayed Decision-Making
2. External Factors
3. Narrow Product Lines

Part – C
10. (i) Is decision making a rational process? Discuss. (7
marks )