PRINCIPAL OF MANAGEMENT AND ORGANISATIONAL BEHAVIOUR

Principles of Management (Unit-1)

1. Is Management Science or Art? (5 Marks)

Ans-

Management can be recognised as both an art as well as science. Let us know why it is considered as
both science and art.

Management as Art

Management has a well-defined literature which is needed for gathering knowledge in the theories
and accelerate learning.

Art refers to personal and 7 application of existing knowledge to achieve desired results.

It can be acquired through continuous practice, creativity, personal observation and experience.

Examples of being an artist: Dancer, Potter, Musician, Director, Actor, Designer etc. all are artist in
their respective fields.

A manager is also an artist as he applies his personal knowledge and experience to get the work
done from his subordinates.

The way of getting work done by different people differs from manager to manager.

There are several examples of management literature which is available such as Taylors Scientific
Management Theory and Henry Fayol’s 14 principles of Management. These theories help in learning
the various concepts of management.

Management as Science

Science is a methodical discipline and management also shares similar features.

Like science, management also relies upon theories and principles to address issues that arise.

Science is an organised collection of knowledge that emphasises definite universal truths or the
action of comprehensive laws. The central characteristics of science are as follows:

The organised body of knowledge: Science is a precise entity of knowledge. Its systems are based on
a purpose and consequence association.

Universal validity: Scientific conventions have global genuineness and application.

Systems based on experimentation: Scientific conventions are originally formed via research and
then tested via repeated trial and error under the regulated situations

Management has a separate glossary and terms which it uses to define certain processes.

Hence Management is an aggregate of both art and science.

2.State the difference between management and administration? (10 or 8 marks)

Ans- Management and administration are closely related concepts within an organisation, but they
have distinct roles and functions.

The distinction between management and administration can be outlined below in the table of
difference and comparison.

Basis of comparison :-

A-Introduction

Management -It is an art of taking work from other individuals by giving directions to them

Administration- It implies complete perseverance of the plans and policies of the enterprise.

B-Structure

Management- Structure of management is of executive nature.

Administration- Administration's structure is of of deterministic nature.

C- Extent

Management - Management is exacting the discharge of policies.

Administration- Administration is exacting the assurance of primary objectives and policies.

D-Position

Management -Management is a low and middle-ranked function.

Administration- Administration is a high ranked function.

E- Authority

Management- management are controlled by aims and policies of an enterprise.

Administration - Administrative decisions are controlled by a common belief and other outside
forces.

F- Management of human exertion

Management- Precisely it is not concerned with the management of human exertion.

Administration - It is seriously concerned the with the control of human resolution in the
accomplishment of the plan.

G- Procedure

Management- Management concludes the distribution of work amidst various employees and how it
is to be done.

Administration- Administration concludes what work is to be allocated to the distinctive employees

of the enterprise.

H-Objectives

Management- Supervising and coordinating are the primary objectives of the management.
Administration-Planning and regulating are the major objectives of the administration.

I- Proficiency

Management- Professional and personal proficiency is required in it.

Administration- Visionary and personal proficiency is needed in it.

J- Control

Management- Management mainly have control over business concerns.

Administration- Administration has a control in government or national sectors.

*3. Discuss the nature and features of management? (5 or 10 Marks)

Ans-

A- Nature of Management

Management is required for an established life and essential to managing all types of management.
Sound management is the fortitude of thriving companies. Managing life implies getting everything
done to accomplish life's aspirations and maintaining an establishment means getting everything
done with and by other people to deliver its objectives.

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.

B- Features of management

Management means Managing the Activities. The features of Management are as described below:

1 Management is a Goal Oriented Process:

Each and every organisation is established to achieve certain goals. Every business enterprise has
different set of goals depending upon the nature of organization. For example, the goal of a newly
established school may be to enroll at least 100 students every year while goal of a company may be
to sell 200 units of its product daily.

The efforts and the functions of the manager's viz., planning, organising, directing, staffing and
controlling help in achieving these goals. Moreover, the success of management is also measured by
the extent to which the established goals are achieved. Thus, these composite functions of
management are separately performed by all managers all the time simultaneously to realize
organizational goals.

2- Management is all Pervasive or Universal:

Whether it is a commercial organisation or non-commercial, big or small, all require management to

manage their operations. The activities in management are applicable to every type of organisation
whether economic, social, charitable, religious or political.

3-Management is multi-Dimensional:

Management is a complex activity and involves three main dimensions viz. (a) Management of work,
(b) Management of people and (c) Management of operations.

A) Management of Work: In each and every organization, certain types of jobs are to be performed.
In school, overall development of a child is to be done; in hospitals, patients are treated; a
departmental store fulfils the need of its customers etc. Management converts these jobs into goals
and creates the means to achieve them.

b) Management of People: Management is concerned with "getting things done through people",
which itself is not an easy task at all. All the employees have different personalities, needs,
backgrounds and methods of work. Thus, management's job is to make them work as a group by
giving common direction to their efforts.

c) Management of Operations: In order to survive, each organisation has to provide certain goods or
services. This involves processes that transform inputs into desired output for customers. Thus,
management of operations is connected with both the above dimensions too.

d) Management is a Continuous Process: Management is a continuous process consisting of a series

of functions like planning, organising, directing, staffing, and controlling. All the managers perform
these functions regularly. Management does not stop anywhere. It continues without breaks and
exists as long as organisation exists. There is an ongoing series of functions in which a manager is
involved.

e) Management is a Group Activity: The management consists of a number of persons who work as a
group. Efforts of all the members of group are directed towards achievement of common
organisational goals. Members of any organisation may have different purpose for joining the
organisation but as its members they have to initiate, communicate, coordinate and join their hands
for the achievement of organisational goals. Hence, it is a group activity.

f) Management is Dynamic Function: The environment in which a business exists keeps on changing.
Thus, in order to be successful, management must change its goals, plans and policies according to
the needs of its environment. For example, Maruti Suzuki brought many new and latest
modifications in its cars to face the competition from foreign automobile companies.
So, Management is an unseen force which reflects the collective efforts of people. All successful
organisations viz. Reliance, Tata, Birla etc. do not achieve their goals by chance but by following a
deliberate process called Management.

*4. Discuss the managerial skills or essential skill sets of the manager? (5 or 10 Marks)
Ans- Managerial Functions: Management is defined as the procedure of organising, directing,
planning and controlling the efforts of organisational members and of managing organisational
sources to accomplish particular goals.

* Planning is the purpose of ascertaining in advance what is supposed to be done and who has to do
it. This signifies establishing goals in advance and promoting a way of delivering them effectively and
efficiently. In an establishment, the aim is the obtainment and sale of conventional Indian handloom
and workmanship articles. They trade furnishings, ready-mades, household items and fabrics made
out of classical Indian textiles.

*Organising is the administrative operation of specifying grouping tasks, duties, authorising power
and designating resources needed to carry out a particular system. Once a definite plan has been set
for the completion of an organisational intent, the organising party reviews the actions and resources
expected to execute the program. It ascertains what actions and resources are needed. It determines
who will do a distinct job, where and when it will be done.

* Staffing is obtaining the best resources for the right job. A significant perspective of management is
to make certain that the appropriate people with the apt skills are obtainable in the proper places
and times to achieve the goals of the company. This is also called the human resource operations and
it includes activities such as selection, placement, recruitment and coaching of employees.

* Directing involves directing, leading and encouraging the employees to complete the tasks
allocated to them. This entails building an environment that inspires employees to do their best.
Motivation and leadership are 2 chief elements of direction. Directing also includes communicating
efficiently as well as managing employees at the workplace. Motivating workers means simply
building an atmosphere that urges them to want to work. Leadership is inspiring others to do what
the manager wants them to do.

* Controlling is the management operation of controlling organisational achievement towards the

accomplishment of organisational intentions. The job of controlling comprises ascertaining criteria of
performance, computing the current performance, comparing this with organised rules and taking
remedial action where any divergence is observed. Here management should ascertain what
activities and outputs are important to progress, how and where they can be regulated and who
should have the power to take remedial response.

Strategic Staffing: Starbucks only hires and recruits the right person, trains them well, motivates
them to try their best and retains them to gain competitive advantage.

Employee Motivation: Starbucks Employee rewards programme is considered as Key Performance

Indicator.

Key Employee Retention Strategy: Progressive Compensation Package, Health Benefits, Retirement
Savings.
*5. Theories of management (Administrative theory, Scientific Management theory and
Hawthorne experiment) (5 or 10Marks)
Ans-

Scientific Management Theory

Frederick Winslow Taylor developed and published his Scientific Management Theory in 1909. At its
core, scientific management theory believes that it is vital to find the most effective way to complete
each and every task, no matter how small. In the early 1900s, managers would give orders to their
workers with no guidance on how to accomplish them. Managers and employees rarely, if ever, had
interaction with one another. Taylor believed this was an inefficient way to operate a business and
recommended some key changes.

Taylor argued each task should be completed as efficiently as possible. In addition, everyone should
be assigned a particular job based on their skills and abilities and must be evaluated based on the
quantity and quality of their work. Taylor did not think it was fair or cost effective to pay every
employee the same amount, regardless of their output. While this may sound like common sense
today, this was a groundbreaking idea in the early 1900s. Another big component of scientific
management theory is the idea of training and development. Taylor argued it was extremely
important to monitor and train your employees on the tasks they are assigned to. By ensuring your
employees are efficient at their work, the output will be larger and of a higher quality.

Administrative Management Theory

Administrative management theory was developed by Henri Fayol in the early 1900s and is
considered to be highly relevant even today. Fayol created fourteen principles which he believed
outlined the basis for strong and successful companies. It is important to know that Fayol agreed
with many of Taylor’s ideas and ideologies, however, the main difference is that Taylor focused on
the process of completing the work most effectively, and Fayol focuses on the organizational
structure of a company as a whole.

Some of Fayol’s principles included a clear division of labor, ensuring each employee had only one
direct manager to report to, and a healthy manager-employee relationship. Another important part
of Fayol’s administrative management theory is the idea that everyone in a company should be
aligned by organizational goals. Fayol believed that organizational structure was vital to the success
and productivity of a company.

Hawthorne experiment-

The Hawthorne effect refers to the change in behavior of participants in an experimental study based
on the fact that they are aware that they are being observed. The term is often used in behavioral
studies to denote behavioral changes due to attention. Hawthorne studies proved that job
performance is strongly linked to social factors and work-group norms.

Examples of the Hawthorne Effect

Hawthorne studies and effects are manifested in the workplace every day. For example, on a typical
day Jenna posts approximately ten reimbursements into an accounting platform before heading out
to lunch at 12:00 p.m. When the regional manager visited their office on Monday, Jenna decided to
go to lunch at 1:00 p.m. and had already posted eight additional reimbursements into the system by
12:00 p.m.

Jack is usually informal when lecturing his course on public policy. The dean of the school for which
Jack is employed decided to drop in to observe a lecture. Jack changed the tone of his lecture that
day to one that was more formal and less interactive.

Planning (Unit-2)
1. Planning is looking forward and controlling is looking backward.” Explain the concept.
Ans- Solution

Planning is looking ahead and controlling is looking back. This statement is partially true.

Planning is a psychological process of 'thinking and deciding in advance' about 'what is to be done'
and 'how it is to be done'. It is a mental activity that includes deciding the goals and also the actions
through which they are to be accomplished. Thus, it is said that planning is looking ahead as it
involves predicting the future.

Controlling on the other hand, involves an assessment of the past performance and evaluating them
against the set standards. In this sense, controlling is said to be a backward-looking function.

However, both these statements are only qpartially true. Though planning is a futuristic concept but
it is based on past actions and experiences. Planning for future cannot take place without peeping
into the past. Similarly, though controlling involves assessment of past performance, it also aims at
improving the future performance by taking the required corrective actions. Hence, we can say that
planning and controlling are backward looking as well as forward looking functions.

*2. Process of planning and types of Planning?

Ans- Meaning of Planning

Planning is ascertaining prior to what to do and how to do. It is one of the primary managerial duties.
Before doing something, the manager must form an opinion on how to work on a specific job. Hence,
planning is firmly correlated with discovery and creativity. But the manager would first have to set
goals. Planning is an essential step what managers at all levels take. It requires making decisions
since it includes selecting a choice from alternative ways of performance.

The mobile company has many alternatives like reducing price, increasing advertising and promotion,
after sale service etc.

Planning Process

As planning is an activity, there are certain reasonable measures for every manager to follow:

(1) Setting Objectives

This is the primary step in the process of planning which specifies the objective of an organisation,
i.e. what an organisation wants to achieve.

The planning process begins with the setting of objectives.

Objectives are end results which the management wants to achieve by its operations.

Objectives are specific and are measurable in terms of units.

Objectives are set for the organisation as a whole for all departments, and then departments set
their own objectives within the framework of organisational objectives.

Example:

A mobile phone company sets the objective to sell 2,00,000 units next year, which is double the
current sales.

(2) Developing Planning Premises

Planning is essentially focused on the future, and there are certain events which are expected to
affect the policy formation.

Such events are external in nature and affect the planning adversely if ignored.

Their understanding and fair assessment are necessary for effective planning.

Such events are the assumptions on the basis of which plans are drawn and are known as planning
premises.

Example:

The mobile phone company has set the objective of 2,00,000 units sale on the basis of forecast done
on the premises of favourable Government policies towards digitisation of transactions.

(3) Identifying Alternative Courses of Action

Once objectives are set, assumptions are made.

Then the next step is to act upon them.

There may be many ways to act and achieve objectives.

All the alternative courses of action should be identified.

Example:

The mobile company has many alternatives like reducing price, increasing advertising and promotion,
after sale service etc.

(4) Evaluating Alternative Course of Action

In this step, the positive and negative aspects of each alternative need to be evaluated in the light of
objectives to be achieved.

Every alternative is evaluated in terms of lower cost, lower risks, and higher returns, within the
planning premises and within the availability of capital.

Example:

The mobile phone company will evaluate all the alternatives and check its pros and cons.
(5) Selecting One Best Alternative

The best plan, which is the most profitable plan and with minimum negative effects, is adopted and
implemented.

In such cases, the manager’s experience and judgement play an important role in selecting the best
alternative.

Example:

Mobile phone company selects more T.V advertisements and online marketing with great after sales
service.

(6) Implementing the Plan

This is the step where other managerial functions come into the picture.

This step is concerned with “DOING WHAT IS REQUIRED”.

In this step, managers communicate the plan to the employees clearly to help convert the plans into
action.

This step involves allocating the resources, organising for labour and purchase of machinery.

Example:

Mobile phone company hires salesmen on a large scale, creates T.V advertisement, starts online
marketing activities and sets up service workshops.

(7) Follow Up Action

Monitoring the plan constantly and taking feedback at regular intervals is called follow-up.

Monitoring of plans is very important to ensure that the plans are being implemented according to
the schedule.

Regular checks and comparisons of the results with set standards are done to ensure that objectives
are achieved.

Example:

A proper feedback mechanism was developed by the mobile phone company throughout its
branches so that the actual customer response, revenue collection, employee response, etc. could be
known.

3. Is planning limitation free?

Ans- Features and Limitations of Planning

Planning is firmly correlated with discovery and creativity. However, the manager would first have to
set goals. Planning is an essential step what managers at all levels take. It needs holding on to the
decisions since it includes selecting a choice from alternative ways of performance.
Scope and nature of Planning

The planning function of management has some special features. These features cast enlightenment
on its scope and nature.

Planning focuses on achieving objectives: Companies are set up with a common goal in view. Explicit
purposes are placed out in the projects along with the ventures to be initiated to accomplish the
goals. Therefore, planning is helpful.

Planning is a primary function of management: Planning puts down the foundation for other
operations of management. All other managerial duties are conducted within the structure of the
ideas outlined. Consequently, planning leads to other operations. This is also mentioned as the
supremacy of planning.

Planning is continuous: Plans are outlined for a particular period of time, perhaps for a period, a
quarter or a year. At the completion of that period, there is a requirement for a new policy to be
formed on the support of new conditions and future circumstances.

Planning is futuristic: Planning typically includes looking forward and outlining for the future. The
idea of planning is to coincide future results efficiently to the valid advantage of an association. It
means glancing into the future, investigating it and foretelling it. Planning is, therefore, perceived as
a forward-looking capacity based on predicting.

Limitations of Planning
The limitations of Planning are furnished below:

(1) Planning Leads to Rigidity

The plans are rigid in nature and have to be complied with throughout the organisation.

Such rigidity of plans may be internal as well as external.

Internal rigidity relates to plans, policies, programs, rules, and methods, etc.

External rigidity relates to political, industrial, technological, legal and economic changes, etc.

Example: A super speciality hospital has fine branches in a city. Whatever the top management of the
hospital decides the head of the branch of the hospital and their subordinates have to follow. Though
on occasions they know they could have done better on their own but the plan laid out provides
rigidity to their approach.

(2) Planning May Not Work in Dynamic Environment

The environment in which a business survives is dynamic as it keeps on changing.

It is difficult for an organisation to access future trends, the taste of customers, natural calamity,
competitors’ policies and effects of changes in the different components of the environment.

The organisation has to constantly adapt itself to changes because it is difficult to forecast the future
changes with absolute accuracy.

The dynamic environment may sometimes lead to failure of plans.

Example: Nestle, a very successful producer was very proactive in deciding strategies for Maggi
noodles. Maggi noodles were in a lot of demand but they were off the shelf due to political and legal
dimensions. This was due to the high content of lead in Maggi noodles.

(3) Planning Reduces Creativity

Planning is mostly done by the top management and other members

like middle and lower levels of management have to follow these plans.

They can’t deviate or change the plans made by their seniors.

Under such circumstances, employees become orders following machines and don’t involve creative
thinking from their side.

Such rigidity to comply with the laid plans kills the creativity of some talented persons.

Example: The need for a branch of a renowned shoe manufacturing company sees a lot of scope in
customized shoes. The top management is not interested in this idea as the company manufactures
standardised shoes.

(4) Planning Involves Huge Cost

Formulation of plans can be too much costly because there is a lot of time and money is involved.

Some costs are incidental in nature like- expenses on boardroom meetings, discussions with
professional experts and preliminary investigations to find out the feasibility of the plan.

Checking the accuracy of facts and scientific calculations may involve lots of time.

Sometimes, cost incurred may not justify the benefits derived from the plans; it may leave a harmful
effect on the enterprise.

Example: Companies like IBM spend a lot of research. Many world-class levels give their advice to
this company and change their fee. However, without so much of painstaking such a huge company
won’t be able to sustain itself. So planning in case of IBM becomes necessary.

(5) Planning is a Time-consuming Process

Planning is a very lengthy process as it consumes a lot of time for collection, analysis, and
interpretation of data.

Due to such a lengthy process, sometimes decisions get delayed, opportunities are lost and there is
not much time left for the implementation of plans.

Example: Health is wealth Ltd. plans to organise 25 health checkup camps on the World Health Day
and send a requisition to the top management but management could send its approval just a day
before and the sales manager could organise only 5 camps and thus huge opportunity is lost. Here
the implementation was delayed.

(6) Planning Does Not Guarantee Success

The success of an enterprise is possible only when plans are properly drawn up and implemented.

Plans become meaningless if it is not translated into action.

Managers have a tendency to rely on previously tried and tested successful plans.

It is not necessary that a successful plan in the past will bring success in the future also as every
business organisation survives in a dynamic and uncertain environment.

Plans must be implemented in the light of changing environment otherwise it may lead to failure of
the business.

Example: In a paint manufacturing company, the top management very meticulously chalked out a
great plan. The whole company worked out on the plan in a much focused manner. However, with
the entrance of a competitor with better paint quality the whole plan failed. The reason for the
failure was the dynamic conditions which were not in control of the organisation.

*6. Discuss the different pattern of organizational structure.

ANS: What is Organisation

Organisation refers to a collection of people who are working towards a common goal and objective.
In other words, it can be said that organisation is a place where people assemble together and
perform different sets of duties and responsibilities towards fulfilling the organisational goals.

Types of Organisation and their Structure

There are two broad categories of organisation, which are:

1. Formal Organisation

2. Informal Organisation

Formal Organisation: Formal organisation is that type of organisation structure where the authority
and responsibility are clearly defined. The organisation structure has a defined delegation of
authority and roles and responsibilities for the members.

The formal organisation has predefined policies, rules, schedules, procedures and programs. The
decision making activity in a formal organisation is mostly based on predefined policies.

Formal organisation structure is created by the management with the objective of attaining the
organisational goals.
There are several types of formal organisation based on their structure, which are discussed as
follows:

1. Line Organisation

2. Line and Staff Organisation

3. Functional Organisation

4. Project Organisation

5. Matrix Organisation

Let us learn about these organisation structures in detail in the following lines.

Line Organisation: Line organisation is the simplest organisation structure and it also happens to be
the oldest organisation structure. It is also known as Scalar or military or departmental type of
organisation.

In this type of organisational structure, the authority is well defined and it flows vertically from the
top to the hierarchy level to the managerial level and subordinates at the bottom and continues
further to the workers till the end.

There is a clear division of accountability, authority and responsibility in the line organisation
structure.

Advantages of Line organisation

1. Simple structure and easy to run

2. Instructions and hierarchy clearly defined

3. Rapid decision making

4. Responsibility fixed at each level of the organisation.

Disadvantages of Line organisation:

1. It is rigid in nature

2. It has a tendency to become dictatorial.

3. Each department will be busy with their work instead of focusing on the overall development of
the organisation.
Line and Staff Organisation: Line and staff organisation is an improved version of the line
organisation. In line and staff organisation, the functional specialists are added in line. The staff is for
assisting the line members in achieving the target effectively.

Advantages of Line and Staff organisation

1. Easy decision making as work is divided.

2. Greater coordination between line and staff workers.

3. Provides workers the opportunity for growth.

Disadvantages of Line and Staff Organisation

1. Conflict may arise between line and staff members due to the improper distribution of authority.

2. Staff members provide suggestions to the line members and decision is taken by line members, it
makes the staff members feel ignored.

Functional Organisation: Functional organisation structure is the type of organisation where the task
of managing and directing the employees is arranged as per the function they specialise. In a
functional organisation, there are three types of members, line members, staff members and
functional members.

Advantages of Functional organisation

1. Manager has to perform a limited number of tasks which improves the accuracy of the work.

2. Improvement in product quality due to involvement of specialists.

Disadvantages of Functional organisation

1. It is difficult to achieve coordination among workers as there is no one to manage them directly.

2. Conflicts may arise due to the members having equal positions.

Project Organisation: A project organisation is a temporary form of organisation structure that is

formed to manage projects for a specific period of time. This form of organisation has specialists
from different departments who are brought together for developing a new product.

Advantages of Project organisation

1. The presence of many specialists from different departments increases the coordination among
the members.
2. Each individual has a different set of responsibilities which improves control of the process.

Disadvantages of Project Organization

1. There can be a delay in completion of the project.

2. Project managers may find it difficult to judge the performance of different specialists.

Matrix Organisation: Matrix organisation is the latest form of organisation that is a combination of
functional and project organisation. In such organisations there are two lines of authority, the
functional part of the organisation and project management part of the organisation and they have
vertical and horizontal flow of authority, respectively.

Advantages of Matrix Organisation

1. Since the matrix organisation is a combination of functional and project management teams,
there is an improved coordination between the vertical and horizontal functions.

2. Employees are motivated as everyone will be working towards one project.

Disadvantages of Matrix Organisation

1. Due to the presence of vertical and horizontal communication, there will be increased cost and
paperwork.

2.Having multiple supervisors for the workers leads to confusion and difficulty in control.

Informal Organisation: Informal organisations are those types of organisations which do not have a
defined hierarchy of authority and responsibility. In such organisations, the relationship between
employees is formed based on common interests, preferences and prejudices.

1(or) Why controlling and planning are considered as the integral part of management .

ANS:- Planning and controlling are interrelated and interdependent.

Planning and controlling are inseparable twins of management. They are interrelated and
interdependent functions of management.

Planning is the base of controlling function, as controlling involves measurement of performance

against the standards to analyse deviations and take corrective action. Thus, controlling is impossible
without planning. Planning without controlling is meaningless because, in the absence of controlling,
it is impossible to monitor the progress and keep a check on the proper implementation of plans.
Thus, without controlling, planning will fail to achieve objectives. Planning is a thinking process while
controlling is an executive function. While planning involves creative thinking, imagination and sound
judgement, controlling ensures that such decisions are converted into desired actions. Thus, planning
is prescriptive, whereas, controlling is evaluative.

4. State the managerial function in details. (PODSCORB)

ANS:- Functions of Management

Management is defined as the procedure of organising, directing, planning and controlling the efforts
of organisational members and of managing organisational sources to accomplish particular goals.

 Planning is the purpose of ascertaining in advance what is supposed to be done and who has
to do it. This signifies establishing goals in advance and promoting a way of delivering them
effectively and efficiently. In an establishment, the aim is the obtainment and sale of
conventional Indian handloom and workmanship articles. They trade furnishings,
readymades, household items and fabrics made out of classical Indian textiles.
 Organising is the administrative operation of specifying grouping tasks, duties, authorising
power and designating resources needed to carry out a particular system. Once a definite
plan has been set for the completion of an organisational intent, the organising party
reviews the actions and resources expected to execute the program. It ascertains what
actions and resources are needed. It determines who will do a distinct job, where and when
it will be done.
 Staffing is obtaining the best resources for the right job. A significant perspective of
management is to make certain that the appropriate people with the apt skills are
obtainable in the proper places and times to achieve the goals of the company. This is also
called the human resource operations and it includes activities such as selection, placement,
recruitment and coaching of employees.
 Directing involves directing, leading and encouraging the employees to complete the tasks
allocated to them. This entails building an environment that inspires employees to do their
best. Motivation and leadership are 2 chief elements of direction. Directing also includes
communicating efficiently as well as managing employees at the workplace. Motivating
workers means simply building an atmosphere that urges them to want to work. Leadership
is inspiring others to do what the manager wants them to do.

 Coordinating – This is the coordination of your people and of their work. Gulick

describes how managers have limited amounts of time and energy, and how this

must be considered when deciding how many people they can successfully supervise

("span of control"). He also emphasizes that each team member should take

direction from only one manager to avoid confusion ("unity of command"). By

coordinating your team in this way, you can make the best use of your resources and

provide your team with clear activities and processes.

 Reporting – Keep people in the organization up to date with what's going on. Provide

them with news, results and general information in formal reports and regular

company updates, to boost their morale, productivity and commitment. This also

includes team members reporting in to you with their progress, issues and concerns.

(See our article on 5-15 reports for a great way to do this.)

 Budgeting – Balance your expenses with your income by planning, estimating and

being disciplined with your finances. Creating a budget allows you to control your

organization's income and expenditure, and can determine the success of a project.

6 (or) Short note on line and staff function, matrix organizational structure.

ANS:- Introduction of Formal, Line and Staff Organization

Line and staff structure :- Line and staff organisation is an improved version of the line

organisation. In line and staff organisation, the functional specialists are added in line. The

staff is for assisting the line members in achieving the target effectively. Line and staff

organisation is a combination of functional and line structure. In this, line authority flows

from top to bottom- and the-line executive is directly concerned with the accomplishment of

primary objectives. They are the actual doers. Line managers are generalists and to not

possess specialised knowledge to tackle complex problems. In order to provide specialised

assistance to line managers, staff positions are created in the organisation. The dictionary

meaning to staff is a stick carried in the hand for support. This means that a staff executive

helps and aids line executives in their work. They play the role of an advisory. In line and staff

organisation, the line authority remains the same as in line organisation. The only difference

is that staff executives are attached along with the line executive who help them by providing

necessary advice on important matters. The staff executives who are specialists do not have

any power to command subordinates in other department.

Merits of Line and Staff Organisation

i. Line and staff organisations provide for specialised knowledge, where the staff

executives guide and advise the action of line executives.

ii. It reduces the burden of top executives because staff executives carry on detailed

investigation of each and every activity.

iii. Staff specialists provide apt and relevant information for decision making and hence

better decisions are taken.

iv. IV. It is more flexible when compared to line organisation. As the business unit

grows, staff can be added to help the line executives.

Demerits of Line and Staff Organisation

i. The concept of line and staff organisation always creates confusion because it is very

difficult do define the authority relationship between line and staff.

ii. Staff executives do not take the task seriously because they are not accountable for

the result. This affects an organisation to a very great extent.

iii. Another serious problem of line and staff organisation is the constant conflict

between line and staff executives because of the different functions performed by

each.

Matrix organizational structure.

Matrix organisation is the latest form of organisation that is a combination of

functional and project organisation. In such organisations there are two lines of

authority, the functional part of the organisation and project management part of

the organisation and they have vertical and horizontal flow of authority, respectively.

A matrix structure's intricacy is its main characteristic. Let's examine a few of its

other properties to help clarify this concept.

i. Multiple Bosses: In a matrix organization chart, there are two bosses that the subordinates

must answer to the functional manager and the project manager.

ii. Allocating Resources: The goal of choosing a matrix structure is to guarantee the highest

utilization of human resources.

iii. Multi-project Viability: A business with a small staff and managing several projects may

use such organizational structure to make life easier.

iv. Task Specialization: Managers tend to specialize in specific areas when they focus more

on the portion of their operation. The functional manager oversees the technical aspects,

while the project manager handles the administrative tasks.

V. Hybrid Structure: This is a combination of functional and project organizational

structures.

Advantages

The key benefits of using such a structure are:

• Coordination between various departments: The fact that a matrix structure helps

to bring together highly competent team members from various departments is of

the most significant benefit. By doing so, the organization can make the most of the

resources already at its disposal rather than looking for expertise and hiring project

teammates from outside the company.

• Combines project management and operational management frameworks: The

matrix organization in project management integrates with the functional leadership

structure to boost productivity, react to shifting markets, and meet market demand

more quickly.
• Inter-departmental communication: Additionally, improved departmental

coordination and communication are made possible by the matrix framework. The

matrix structure encourages a more open work atmosphere by enabling collaboration

across many divisions, ultimately making the organization more dynamic.

Disadvantages

The use of a matrix structure occasionally has the following significant drawbacks:

• Defining managerial positions clearly may not be possible: One common drawback of the

matrix structure is that managers working on projects that the matrix specifies may need

clarification. In addition, there could be ambiguity over the specific managerial duties

because the power dynamics between the managers sometimes need to be more well-

defined within the matrix.

• The team's roles might need to be clearly defined: Another area for improvement is when

the project's roles for team members need to be clearly defined or when there is a blurry

line between what an employee is responsible for in their functional position and what they

are responsible for in their project role.

• Slow decision-making process: As a matrix structure involves several managers, decisions

that must go through both managers may occasionally take more time to process than they

would in a conventional organization. In addition, choices that involve several processes,

such as in quality assurance, are slowed when multiple supervisors and team members are

involved.

5. Elements of controlling.

ANS:-

Staffing (Unit-3)
 1. Delegation of Authority.
OR
Elements of delegation
OR

1.(or)*State the difference between authority and responsibility.

ANS:- Authority is the power to give orders and make decisions, while responsibility is the

obligation to perform tasks and fulfil roles. It’s the balance between empowerment and

accountability that drives effective leadership and organizational success. Let’s understand the

concept of authority and responsibility along with their differences.

Authority and responsibility are two fundamental concepts within organizational structures that

delineate the roles and functions of individuals. While authority represents the power or right

bestowed upon an individual to make decisions and enforce compliance, responsibility signifies

the obligation to perform specific tasks or duties and be accountable for the outcomes. The main

difference between the two is that authority grants the ability to control and direct, whereas

responsibility entails the duty to execute and answer for one’s actions. Both Authority and

Responsibility are significant concepts of management. Let's understand.

Difference Between Authority and

Responsibility:-
Parameters

A- Definition:-

Authority- The power or right to give orders, make decisions, and enforce obedience.

Responsibility - The duty or obligation to perform a particular task or role.

B- Delegation
Authority - Authority can be delegated from one person to another.

Responsibility- Responsibility cannot be delegated; it remains with the accountable individual.

C-Source

Authority- Derived from a formal position or organizational structure.

Responsibility- Derived from assigned tasks or roles within the organization.

D- Accountability-

Authority – The person with authority is accountable for the outcome of decisions made.

Responsibility- The person with responsibility is accountable for successfully completing the

assigned task.

E- Scope

Authority – Authority extends to decision-making and commanding others to perform tasks.

Responsibility- Responsibility focuses on executing tasks and delivering expected results.

F- Example

Authority – A CEO has the authority to make decisions and direct the actions to other levels

of management.

Responsibility- A manager must ensure their team meets performance targets and deliver

quality work.

2. Discuss the process of controlling.

ANS:- Steps in Control Process, Span of Control

 The control process of management ensures that every activity of a business

is furthering its goals. This process basically helps managers in evaluating

their organization's performance. By using it effectively, they can decide

whether to change their plans or continue with them as they are.

I. Establishing goals and standards

The task of fixing goals and standards takes place while planning but it plays a big

role in controlling also. This is because the main aim of controlling is to direct a

business's actions towards its goals. If the members of an organization know their

goals clearly, they will invest their entire focus in achieving them. It is very important

for managers to communicate their organization's goals, standards and objectives as

clearly as possible. There must never be ambiguities amongst employees in this

regard. If everybody works towards common goals, it becomes easier for an

organization to flourish. The goals that managers have to set and work towards may

be either tangible/specific or intangible/abstract. Tangible goals are those which are

easy to quantify in numerical terms. For example, achievement of sales worth Rs.

100 crores within one year are a tangible goal. On the other hand, intangible goals

are those which are not quantifiable numerically. For example, a company may aim

to win some prestigious award for its corporate social responsibility activities.

ii. Measuring actual performance against goals and standards

Once managers know what their goals are, they should next measure their actual

performance and compare. This step basically helps them in knowing whether their

plans are working as intended. After implementing a plan, managers have to

constantly monitor and evaluate them. They must always be ready to take corrective

measures if things are not working properly. In order to do this, they should keep

comparing their actual performance with their ultimate goals. Apart from taking

corrective action, this step of process control also helps managers in predicting
future problems. This way they can take measures immediately and save their

business from losses.

In order to compare their actual performance, managers first have to measure it.

They can do so by measuring results in monetary terms, seeking customer

feedback, appointing financial experts, etc. This can often become difficult if

managers want to measure intangible standards like industrial relations, market

reputation, etc.

iii. Taking corrective action

In case there are discrepancies between actual performances and goals, managers

need to take corrective actions immediately. Timely corrective actions can reduce

losses as well as prevent them from arising in the future again. Sometimes, business

organizations formulate default corrective actions in the form of policies. This,

however, can be difficult to do when it comes to complicated problems.

In such cases, managers need to first quantify the defect and prepare a course of action to

remedy it. Sometimes, they may have to take extraordinary measures for unpredictable

problems.

iv. Following up on corrective action

Just taking corrective measures is not enough; managers must also take them to their logical

conclusion. Even this step requires thorough evaluations and comparisons. Managers

should stick to the problem until they solve it. If they refer it to a subordinate, they must stay

around and see to it that he completes the task. They may even mentor him personally so

that he may be able to solve such problems by himself later.

3. Why staffing is important?

*4. Roles of manager (Mintzberg)

5. Short note on centralization and decentralization. (or difference)

ANS:-

Centralisation:- Centralization is a form of organizational structure where the decision

making capability rests with the top management. A couple of hand-picked members are

entitled to create strategies, determine the goals and objectives based on which an

organisation will function. In a centralized organisation, the top management sets rules and

procedures which are then communicated to the lower-level employees, who are expected

to carry out the same without questioning the authority.The advantage of such a structure is,

it allows employees to have a well-defined framework within which all work needs to carried

out. The disadvantage of such a structure is that it increases the time taken to arrive at a

decision. As decision-making authority lies with selected people from top management, it

may result in biased decision making.

Decentralisation:-

Decentralization is another form of organizational structure that functions by delegating

decision-making capabilities to multiple teams across geographies.

In such an organization, most of the planning, strategy and decision to implement them are

taken by the people in the middle and lower level of management.

The advantage of decentralization is that the employees are empowered to make their own

decisions that will benefit the organization, which results in a high level of employee

satisfaction and boosts the productivity of an organization.

Decentralization enables low-level employees to gain leadership skills, which can contribute

to the growth of the organization in the long run.

Difference Between Centralisation And Decentralisation

BASIS FOR COMPARISON

A- Meaning

CENTRALIZATION :- The retention of powers and authority with respect to planning

and decisions, with the top management, is known as Centralization.

DECENTRALIZATION :- The dissemination of authority, responsibility and

accountability to the various management levels, is Decentralization

B- Involves

CENTRALIZATION :- Systematic and consistent reservation of authority.

DECENTRALIZATION :- Systematic dispersal authority.

C- Communication Flow

CENTRALIZATION :- Vertical

DECENTRALIZATION :- Open for free

D- Decision Making

CENTRALIZATION :- Slow

DECENTRALIZATION :- Comparatively faster

 E- Advantage

CENTRALIZATION :- Proper coordination and Leadership

DECENTRALIZATION : Sharing of burden and responsibility

F- Power of Decision Making

CENTRALIZATION :- Lies with the management.

DECENTRALIZATION :- Multiple persons have the power of decision making.

G- Implemented when

CENTRALIZATION :- Inadequate control over the organization

DECENTRALIZATION :- Considerable control over the organization

H- Best suited for

CENTRALIZATION :- Small sized organization

DECENTRALIZATION :- Large size organization