BUSINESS MANAGEMENT

Unit-I

Management-meaning-art or science-management and administration functions-contributions

F.W.Taylor-Henry Fayal

Unit-II

Planning-nature, characteristics-steps in planning-types of planning-types of planning-

components-MBO-MBE

Unit-III

Organization- principles of organization structure- organization character-departmentation-

authority- responsibility- delegation of authority- centralization and decentralization- line and staff

organization-committee form of organization.

Unit-IV

Motivation- significance- theories of motivation (MASLOW AND MCGREGORS) –

communication process- types- barriers- effective communication- leadership – significance- style

of leadership

Unit-V

Co-ordination- co-ordination vs control steps in control process- significance- essentials of

effective system

1. What is meant by management? [not correct]

Management occupies such an important place in the modern world that the welfare

of the people and the destiny of the country are very much influenced by it. The principles of

management are being applied not only for managing business concerns, but also manage

various institutions. Like hospital, educational and government.

2. Define management.

According to S. George “management consists of getting things done through others.

Manager is one who accomplishes the objectives by directing the efforts of others”.

3. What is a discipline?

Discipline refers to a field of study having well-defined concepts and principles.

When management as a discipline is referred to, it includes in it the various relevant concepts

and principles, the knowledge of which aids in managing.

4. What are the different ways in which the concept management is used?

The different ways in which the concept management is used are: [i] Management as

a discipline, [ii] Management as a group of people and [iii] Management as a process.

5. What is the role of management principles?

Management principles help to:

To increase efficiency

To crystallize the nature of management

To carry on researches

To attain social objectives

6 What are the 7s of Mckinsey?

7s of Mckinsey are [i] Strategy, [ii] Structure, [iii] Systems, [iv] Staff, [v] Skills,

[vi] Styles and [vii] Shared values

7. What are the elements of scientific management?

The elements of scientific management are [i] Separation of planning and doing,

[ii] Functional foremanship, [iii] Job analysis, [iv] Standardization, [v] Scientific selection

and training of workers and [vi] Financial incentives

8. What are the general principles of management?

The general principles of management are [i] Division of work, [ii] Authority and

responsibility, [ii] Discipline, [iii] Unity of command, [iv] Unity of direction, [v]

Subordination of individual interest to general Interests and remuneration and [vi]

Centralization.

9. Expand “PODSCORB”

“PODSCORB” means planning, organizing, directing, staffing, co-ordination,

reporting, and budgeting.

10. What is meant by planning?

Planning is concerned with the determination of the objectives to be achieved and the

course of action to be followed to achieve them. Before starting any action, one has to decide

how the work will be performed and where and how it has to be performed.

11. Define the term organizing.

According to Fayol, “to organize a business is to provide it with everything useful to

its functioning- raw materials, tools, capital and personnel”.

12. Define the term staffing.

According to Harold Koontz and Cyril O’Donnell, “the managerial function of

staffing involves manning the organizational structure through proper and effective selection,

appraisal and development of personnel to fill the roles designed into the structure”.

13. Define the term directing.

According to Joseph Massie, “directing concerns the total manner in which a

manager influences the action of his subordinates. It is the final action of a manager in

getting others to act after all preparations have been completed”.

14. Define the term controlling.

According to Harimann, “control is the process of checking to determine whether or

not proper progress is being made towards the objectives and goals and acting if necessary to

correct any deviation”.

15. Define the term manager.

Peter F.Drucker, “the manager has the task of creating a true whole that is larger than the

sum of its parts; a productive entity that turns out more than the sum of resources put into it”.

16. What are the qualities of a successful manager?

The qualities of a successful manager are [i] A goal setter, [ii] An honest worker, [iii]

A good guide, [iv] An identifier of good work, [v] A capable assigner, [vi] A man of

integrity and [vii] A visionary.

17. What is mean by BUREAUCRACY?

Bureaucracy is an administrative system designed to accomplish large scale

administrative tasks by systematically coordinating the work of many individuals.

18. What is meant by federalism?

Drucker has advocated the concept of federalism. Federalism refers to centralized

control in decentralized structure. Decentralized structure goes far beyond the delegation of

authority. It creates a new constitution and new order principle. He has emphasized the close

links between the decisions adopted by the top management on the one hand and by the

autonomous unit on the other.

19. Write any four important characteristics of management?

Important characteristics of management are [i] Management is an activity, [ii]

Management is getting things alone, [iii] Management is both science and an art, [iv] It is a

dynamic not static and [v] It is a profession.

20. What are the different levels of management?

The different levels of management are [i] Top management, [ii] Middle management

and [iii] Supervisory management (Low level management).

21. What are the different types of managers?

The different types of managers are [i] First line managers, [ii] Middle managers and

[iii] Top managers

22. Who are the people functioning under functional management?

People who are functioning under functional management [i] Production manager, [ii]

Financial manager, [iii] Human resources manager, [iv] Line manager and [v] Staff manager

23. What are the functions of a production manager?

Production manager is responsible for all technical operations of the manufacturing

unit. He looks after the purchasing of input required for production of goods as per design

and manages the production process.

24. What is a role of a financial manager?

The manager takes up the responsibility of preparing the financial plan. He visualizes

the financial needs of the organization and accordingly prepares a viable plan. Management

is assisted by the finance manger in taking sound financial decisions.

25. Write a note on marketing manager.

In every manufacturing organization, marketing function plays a vital role. It is the

marketing department that decides the fate of the organization. The marketing manager has

the responsibility of securing maximum turnover to the firm‟s product or service.

26. What are the responsibilities of a HRD manger?

The person in charge of HRD in an organization is mainly responsible for the

recruitment and development of human resources required for the organization. HRD

manager is involved in manpower planning, selection, training and maintenance of human

resources of the organization.

27. Write a short note on fatigue study.

It is concerned with finding out how long a period of rest should be and at what

intervals rest should be given to workers.

28. What is route sheet?

Route sheet is prepared indicating the exact route for each task to follow through

several shops. Thus, routing determines where the work will be done and also the sequence

of operations.

29. What is motion study?

It is the study of movement whether of a machine or an operator, in performing

operations for the purpose of eliminating useless motions and arranging the sequence of

useful motion in the most efficient order.

30. What is the production planning?

Production planning requires the taking of decisions such as

What work shall be done?

How the work shall be done?

Where the work shall be done? and

When the work shall be done?

31. What are the elements of scientific management?

The elements of scientific management are [i] Determination of the task, [ii]

Planning of industrial operations, [iii] Proper selection and training of workers [iv]

Improvement in methods of work [v] Modification of organization and [vi] Mental

revolution.

32. What are the features of management?

Features of management are

Organized activities

Existence of objectives

Relationship among resources

Working with and through people

Decision making

33. Enumerate any two functions of staffing.

Two functions of staffing are [i] Proper selection of candidates for positions and [ii]

Proper evaluation of personnel.

34. Enumerate any four environmental factors.

Any four environmental factors are [i] Economic environment, [ii] Political

environment, [iii] Technological environment, [iv] Socio-cultural environment and [v]

Competitive environment

35. What are the principles of scientific management?

The principles of scientific management are [i] Replacing rule of thumb with science,

[ii] Harmony in group action, [iii] Co-operation and [iv] Maximum output development of

workers.

36. Explain quantitative approach

Quantitative approach to management is also known as operational research in

management science. Churchman has defined quantitative approach “as an application of

scientific method to problem arising in the operations of a system which may be represented

by means of a mathematical model and solving of these problems by resolving the equation

representing the system”.

37. What is meant by system?

A system has a number of sub-systems just like for example human body which has a

number of sub-systems such as circulatory system, reproductive system and so on. A system

has a number of parts and sub-parts and they are mutually related to each other.

38. What is the function of directing?

Directing is communication or issuing of orders and instructions to subordinate. A

manager has to instruct the subordinates what to do, how to do it and when to do it.

39. Define Taylor’s scientific management

Scientific management is concerned with knowing exactly what you want men to do

and then see to it that they do it in the best and cheapest way.

40. Write a short note on Fayol’s administrative management

For administration point of view F.W.Taylor placed commerce, Industry, religion,

philanthropy and state on equal footing. His administrative science can be applied equally

well to public and private affairs

41. What is management process?

Management process includes planning including forecasting, organizing,

commanding, coordinating and controlling.

42. What is mean by directing?

Directing is one of the important functions of management and is the art and process

of getting things done. The directing work actually starts the work. It is concerned with

guiding, supervising and motivating the subordinates for achieving the enterprise objectives.

43. What is meant by controlling?

According to Harimann, “control is the process of checking to determine whether or

not, proper progress has been made towards the objectives and goals and acting if necessary

to correct any deviation.”

44. What is concept of environment?

Environment is classified as external and internal because an organization works

within the framework provided by the various elements of society. All the elements which

are outside the organization are called external environment or simply as environment. At the

same time, organization may create environment internal to it which affects the various

subsystems of the organization.

45. Define the term manager.

Peter F. Drucker, “the manager is a person who has the task of creating a true whole

that is larger than the sum of its parts, a products entity that turns out more than the sum of

the resources put into it”.

FIVE MARKS

1. What are the characteristics of management?

1. Management is an activity: Management is a process of organized activity which

is concerned with the efficient use of resources of production. Resources include

materials, money, and people in the organization

2. It is a purposeful activity: It is concerned with the achievement of objectivity

through its directing and controlling. Objectives may be explicitly defined or

implicit.

3. It is concerned with the effort of a group: Management is concerned with the

management of people and not the direction of things. It inspires and motivates

workers to put forth their effort to the maximize workers output.

4. Management is getting things done: According to Koontz O‟Donnell,

management is the art of getting things done through and with people informally

organized into groups. In other words, a manager does not do any operating work

himself but gets it done through others.

5. It applies economic principles: According to Dr. Kimball, management is the art

of applying the economic principles that underlies the control of men and

materials in the enterprise under consideration.

6. Involves decision-making: Management involves decisions relating to various

aspects of management. It is said that management is the decision-making process

and the decisions are involved in all the functions of management.

7. It coordinates all activities and resources: It is concerned with the co-ordination

of all activities and resources through its various functions to attain the stated

objectives.

2. Explain the scope of management.

Management includes the following aspects

1. Subject matter of management: It consists of various management functions

such as planning, organizing, staffing, directing and controlling.

2. Functional areas of management: It consists of the following functional areas,

(I) Financial management: It includes cost control, budgetary control, standard

costing etc.

(ii) Personnel management: It includes aspects such as recruitment, training,

transfers, promotions, retirement, industrial relations, social security etc.

(iii) Purchasing management: It consists of purchasing of raw materials,

maintaining of records, materials control, issuing relations, social security etc.

(iv) Production management: It deals with aspects such as production planning,

quality control, social security etc.

(v) Marketing management: It includes marketing of goods and services, price

determination, market research, sales promotion, advertisement, publicity etc.

(vi) Office management: It is concerned with office layout, staffing, equipment of

office etc.

(vii) Maintenance management: It relates to the proper care and maintenance of

the building, plant and machinery etc.

(viii) Transport management: It includes packing, warehousing, transportation by

rail, road, air etc.

3. Management is an interdisciplinary approach: For the correct and effective

application of the principles of management, a study of various other subjects

such as economics, sociology, mathematics, psychology, behavioral science etc is

essential.

4. Principles of management are of universal application.

5. Management also includes scientific methods, human relations and quantitative

techniques.

3. Explain the significance of management

1. Management plays a vital role in modern society. It regulates man‟s

production.

2. Drucker observes that without the leadership provided by management, the

resources of production remain mere resources and never become production.

3. The well being of society is largely dependent upon the quality of

management.

4. By making the factors of production perform better, management enables

society to get a better and increased supply of goods and by this, it promotes the

welfare of society.

5. Urwick and Brech have rightly observed that no ideology, no “ism” or

political theory can win a greater output with less effort from a given complex of

human and material resources.

6. And it is on such greater output that a higher standard of life, more

amenities for all must necessarily be founded.

4. What are the features of management?

Organized activities: Management is a process of organized activities. Without

organized activities, two groups of people cannot be involved in working towards

a common objective management comes into existence. The organized activities

may take a variety of forms ranging from a tightly-structured organization to a

very loosely-knit organization. It can be a company like Tata Iron Company or a

local social club.

Existence of objectives: An objective or set of objectives should exist towards

which the organized group activities and directed. Without objectives, it becomes

difficult to define the direction where organized group activities would lead to.

This realization of objectives is sought through the co-ordination efforts of the

people constituting an organization.

Relationship among resources: Organized activities meant to achieve common

goals are brought about to establish certain relationships among the available

resources. Resources include money, machine, materials, and people. All these

resources are made available to those who manage. They apply knowledge

experience and principles for getting the desired results. Thus, management of

human resources in turn utilize other resources.

Working with and through people: Management involves working with people

and getting organized objectives achieved through them. The idea of working

through people is interpreted in terms of assigning activities to subordinates. The

superior-subordinate relationships are created because of organized activities.

Decision-making: Management process involves decision making at various

levels for getting things done by others. Decision making basically involves

selecting the most appropriate alternative out of the several. If there is only one

alternative, the questions of decision-making does not arise. The quality of

alternative which a manager selects determines the organizations performance and

the degree to which the right decisions are made by managers.

5. Can we consider management as a profession?

Management is regarded as profession, although it does not possess all the

features of a profession. All groups are not professions because some of them lack

certain characteristics of a profession. The various characteristics are as follows:

Ethical codes:

For every profession, some ethical standards are provided and every

individual of the profession is expected to maintain conformity with these

standards. The need for ethical codes arises because of the fact that occupations

whose practitioners have a degree of power by virtue of their expertise and this

power can be costly to the society.

Service motive:

While ethical code prevents the behavioral pattern for professionals,

service motive concept suggests that professionals should keep social interest in

their mind while charging fees for their professional service. It is essential

because the monetary value of professional service cannot be measured easily in

the absence of market mechanisms except the competition among the

professionals themselves.

6. What is the role of management principles?

The principles of management have a tremendous impact upon the

management. The role of principles is explained as follows:

To increase efficiency

The established principles of management provide managers guidelines as

to how they should work in different situations. These principles increase

managerial efficiency.

To crystallize the nature of management

Lack of understanding of management principles makes it difficult to

analyze the management job and to define the exact scope of managerial

functions. Thus, individuals cannot train and educate future managers.

To carry researches

If in any subject, certain fundamental principles are developed and the

scope and limitations are defined, these become the basis for researches. In the

absence of these principles, researches become difficult and future horizons of

knowledge cannot be expanded.

To attain social objectives

Management itself is part of the society and it takes the inputs from the

society and gives the output to the society. Thus, the standard of the society

depends upon the quality of the management. If the management is efficient, the

resources of the society are better utilized, thereby deriving more satisfaction to

the society and improving the quality of life of people. In this context,

management principles play an important role.

7. Compare effectiveness with efficiency?

“Organizational effectiveness is the degree to which operative goals have

been attained while the concept of efficiency represents the cost/ benefit rate

incurred in the pursuit of these goals.” Thus, effectiveness is related to goal which

is externally focused. Efficiency is used in engineering way. It refers to the

relationship between input and output. This denotes how much input has been

used to produce a certain amount of output. It is not necessary that both go

together always, for example Barnard says that “when unsought consequences are

trivial or insignificant effective action is efficient, when unsought consequences

are not trivial, effective action may be inefficient”. There must be three types of

situations:

(I) An organization may be efficient but may not be effective.

(ii) An organization may be effective but may not be efficient.

(iii) An organization may be both efficient and effective.

8. Bring out the contribution of Henry Fayol towards administration

management.

Henry Fayol is the real father of modern operations management theory.

So, the French industrialist Henry Fayol and his contributions are generally

termed as Operational management or administrative management. Fayol‟s wrote

a book titled “administration industrially at generate” in French language, in

1916. However the book was not translated until 1929. Its English version was

published in 1949 in the USA. Therefore, in the early period Fayol‟s contribution

could not make much impact on the development of management thought.

Fayol looked at the problems of managing an organization from top

management point of view. He has used the term “administration” instead of

„management‟ emplacing that there is unity of science administration.

Fayol founded that activities of an industrial organization could be divided

into six groups:

1. Technical

2. Commercial

3. Financial

4. Security

5. Accounting

6. Managerial

9. Give a brief contribution of Taylor to scientific management.

The concept of scientific management was introduced by Frederick

Winslow Taylor in USA in the beginning of 29th

century. This concept was

further carried on by Frank and Lillian Gilbreth, Henry Gantt, George Berth,

Edward Felon etc. Scientific management was concerned essentially with

improving the operational efficiency at the shop-floor level. Taylor has defined

scientific management as follows,

“Scientific management is concerned with knowing exactly what you want

men to do and then see in that they do it the best and cheapest way”.

Since Taylor has put the emphasis on solving managerial problems in a

scientific way, often he is called a „father of scientific management‟ and his

contribution is the principles of scientific management.

10. Compare the contribution of Taylor and Fayol.

Basis of difference Taylor fayol

1. Perspective shop-floor level higher management level

2. Focus efficiency through overall efficiency by

Work simplification observing certain

And standardization principles

3. Orientation production and managerial functions

Engineering

4. Results scientific observation personnel experiments

and measurement translated into universal

truths.

5. Overall basis for systematic theory of

Contribution accomplishment management

On the production line.

11. Distinguish between administration &management

Basis of difference administration management

1. Level in Top level middle and lower

Organization

2. Major focus policy formulation policy execution for

objective And objective achievement

determination

3. Nature of Determinative executive

Functions

4. Scope of Broad and conceptual narrow operational

Functions

5. Factors affecting mostly external mostly internal

decisions

6. Employer employee Entrepreneurs Employees

Relation and owners

7. Qualities Administrative Technical

Required

UNIT-II 2mark

1. Define the concept of planning?

According to terry” planning is the selection and relating of facts and making and

using of assumptions regarding the future in visualizations and formulization of proposed

activities believed necessary to achieve desired result”.

According to mcfarland”planning may be broadly defined as a concept of executive

action that embodies the skills of anticipating, influencing and controlling the nature and

direction of change”.

2. What are the contributions of planning?

Primary of planning

To offset uncertainty and change

To focus attention objectives

To help in co-ordination

To increase organizational effectiveness.

3. What is corporate planning?

The term corporate planning denotes planning activities at the top level. Also known as

corporate level. Which cover the entire organizational activities? The basic focus of corporate

planning is to determine the long-term objectives of the organization as a whole and then to

generate plans to achieve these objectives bearing in mind the probable changes in

environment.

4. Define proactive planning

Proactive planning involves designing suitable courses of action in anticipation of likely

chargers in the relevant environment.

Organizations that use proactive planning use broad planning approaches, broad

environmental scanning, decentralized control and reserve some resources to be utilized for

their future use.

5. Define the term MBO

MBO is a comprehensive managerial system that integrates many key managerial activities in

a systematic manner, consciously directed towards the effective and efficient achievement of

organizational objectives.

6. Write any two functional planning

A basic feature of functional planning is that it is derived out of corporate planning and

therefore, it should contribute to the latter.

This contribution is achieved by integrating and coordinating functional planning with

corporate planning.

7. Define the term MBE

It is a management technique by which managers concentrate only on exceptional deviations

instead of trying to correct each and every deviation. The advantage of the techniques of

Management by Exception is that it allows the manager to concentrate on problems that need

his attention and to avoid dealing with those that can be well handled by the subordinates

themselves.

FIVE MARKS

1. What are the natures of planning?

The following are the basic characteristics of planning

(I) planning is the primary function of management

(ii) It is goal-oriented

(iii) It is all-pervasive

(iv) It is an intellectual activity

(v) It is future oriented

(vi) It requires an integrated approach

(vii) It is a continuous process

Let as now discuss each one of these characteristics.

(I) Planning is the primary function of management- Planning is the starting point of

management. It is only planning which gives meaning to all others managerial functions, namely,

organizing, staffing, coordinating and controlling. Without planning the other functions cannot

be effectively performed. Thus, planning as the primary function, gives focus all other functions

of management.

(ii) It is a goal oriented- The goal of every business is to make profits, planning helps to attain

the goal in the most effective and efficient manner. Thus planning provides for a systematic

approach and eliminates a random approach towards work. It safeguards the business against

idle time loss, loss due to surplus labor and so on.

(iii) It is all-pervasive-By this we mean that planning is done by everyone at every level of

management, namely top, middle and lower levels. Top-level managers (managing direction,

general manager and others) prepare long-term plans for the business as a whole: middle-level

managers (production manager, marketing manager and others) prepare departmental plans.

The lower-level managers (foreman, supervisors and others) prepare plans to carry out the daily

routine.

(iv)It is an intellectual activity- Planning is a mental activity; it involves application of mind and

intelligence to attain, in a systematic manner, the organizational objective. Sound planning

therefore, depends on the availability of knowledge persons in the organization.

(v) It is future-oriented- Planning is required to attain the future goals of an organization.

However, past happenings provide the basis for plans. As future is uncertain, a plan must make

suitable provisions to meet any crisis. The plan itself must, therefore, provide a solution for any

critical situation that may arise in future.

(vi) It requires an integrated approach- There must be link between the plans of different

departments. As the plans of different departments are inter-related and inter-dependent, a co-

ordinate approach is needed for the successful implementation of each plan.

(vii) It is continuous process- It means that a stage will never come when the need for planning

will not be felt at all. Planning is required as long as we live in this world. As far as business is

concerned, planning is needed as long as there are business activities.

2. Bring out the importance of planning

As the primary function of management, planning is considered vital in every sphere of

activity. The importance of planning may be stated as follows:

1. It focuses on objectives- Once the objective of the business has been fixed; the step is to

prepare a plan for its effective accomplishment. The enterprise objective cannot be realized

overnight. It has to be achieved gradually over a certain period. Thus planning helps to attain

the specific goal of a business in a systematic manner. Plan gives thrust to the enterprise goal. In

the absence of planning helps to aim and avoid beating the bush.

2. it helps to avoid’ no work on work pressure’ situations- In the absence of planning, the

workers in an organization may have to work even beyond working time due to the volume of

work particularly towards the end of the year. Thus absence of planning leads to distribute work

evenly through the year.

3. It helps to avoid wastage of resources- Planning makes it possible to make optimum use of

the available resources, namely, time, money, materials and machines. In the absence of

planning there may be wastage of resources due to lack of target and casual approach to the

work by the staff.

4. It ensures efficiency as well as effectiveness- Efficiency is ensured by doing right things and

effectiveness is achieved by doing things right. Planning helps to do only right things but also

things right. Planning ensures optimum utilization of the available resources and avoids wastage

of the same. Planning also selects the best course of action.

5. It reduces risk and uncertainty- Planning is for future use and future is uncertain. While

planning, future uncertainties are anticipated and adequate provisions are made to meet or

overcome the same. If the activities of an enterprise and disturb the progress of work.

6. It provides for co-ordination- The work done in any organization is a team-work. Different

departments participate in the process of goal attainment. Planning makes the responsibility of

each individual and department very clear. Thus planning by explaining the each individual and

department provides scope for co-ordination and co-operation.

7. It is facilitates control- If planning is the first function of management control is the last

function. Planning without control is useless and control without planning is meaningless.

Planning without control will make the plan a futile exercise. Planning thus provides the basis for

control.

8. Planning also provides scope for decentralization- Dispersal of authority through the

organization is what is known as decentralization. Thus, planning helps the managers to involve

the subordinates in the process of target attainment. The managers will be able to assign work

every subordinate and the latter becomes responsible to the former on the work done by him.

3. What are the limitations of planning?

Planning suffers from the following limitations:

1. Uncertain nature- The element of uncertainty cannot be totally eliminated in planning. Plans

are meant for future use but future happenings cannot be accurately foreseen.

2. expensive- Preparation and implementation of any plan is expensive not only in terms of time

but also in terms efforts and money required. Formulation of plans requires collection of data

from different sources, analysis and evaluation of the various courses of action in order to take

decision on the best course of action.

3. rigidity- It is always necessary t strictly adhere to the plan in so far as the daily work routine in

an enterprise is concerned. Lack of flexibility in plans leads to monotony and boredom.

4. Loss of initiative- The staff in an enterprise shall perform their duties in the way they are

expected to do in the plans. As a result they are reduced to machines. There is no scope for the

display of skills by individuals and this leads to loss of initiative.

5. Ignorance of subordinate’s interests- Plans are prepared to attain organizational goal in the

effective manner. In doing so, often interests, preferences, capabilities and attitudes of the

employees are ignored. As a result the subordinates do not given their wholehearted support to

the implementation of the plans.

6. Complacent attitude- There is always a feeling that once the plan is prepared the target of

the enterprise can easily be attained. The success of every plan depends much on the

effectiveness with which it is implemented. A plan is only means to the end and not ends itself.

4. Explain the process of planning

The following are the various stages involves in the process of planning:

1. Identifying business opportunities- It is necessary to make an analysis of both the internal

and external environment to know the trends in the near future. Business activities are

influenced by internal as well as external factors.goverment regulations. Technological changes,

availability of material and labour and the extent competition are some of the important factors

affecting business prospects.

2. Establishment of objectives- The second step in the planning process is to establish the

organizational objectives in tune with the opportunities identified, taking into account the

resources available. The overall objective of the enterprise must be started along with the

specific objectives if individual departments and divisions in the organization.

3. Determination of planning premises- Planning premises are the assumptions made about the

future happenings. As planning is for future and future is uncertain, certain assumptions about

the future become necessary. It may not be necessary to make assumptions about every factor

mentioned above. Those factors that are sure to affect the plans of the concern must be

identified and evaluation of the same be done.

4. Identifying the alternatives course of action- There are always alternatives ways of carrying

out any task just as there are different routes to reach destination point. To attain the objectives

of a business different course of action may be available.

5. Evaluating the alternatives course of action – Once the alternative courses of action are

identified the next step is to be evaluating the same. By evaluating we mean studying the merits

and demerits of each. Each alternative should be examined carefully to decide on its suitability.

6. Selection the best course of action- Once the alternative courses of action have been

evaluated, next step is to select the best. The once finally selected should help the organization

in making an optimum use of the available resources and help to attain the objectives set in the

most effective manner. It may also be possible that sometimes the organization may select

more than one course of action.

7. Formulation of derivative plans- After the basic plan of the enterprise has been determined,

the next step is to prepare the subsidiary or derivative plans to support the basic plan. Without

the derivative plans, it is not possible to carry out the main plan.

8. periodic evaluation and review- Once the implementation of the plan starts, it becomes

necessary to evaluate performance at periodic intervals to ensure that the activities of the

enterprise proceed in the right direction and as laid down in the plan.

5. Classification of plans according to time

Based on the length of period covered by the plan, it may be classified as long-term planning,

medium-term planning and short-term planning.

1. long- term planning- this period covered by the long-term plan is usually 5 to 15 years. Long-

term planning is also called strategic planning because it is prepares the business to face the

effects of long-term changes. Long-term planning is needed in the following circumstances-

(i) Introduction of a new product

(ii) Entering a new market.

(iii) Changing the technique of production

(iv) Increasing the scale of operation etc

2. medium-term planning- it is also known as tactical planning. The planning covered by the

medium-term plan is usually 1 to 5 years. Such a plan may be necessary un the following cases-

(I) market additions to an existing plant.

(ii) Expanding output from its present level.

(iii) Appointment of additional staff to cope with the volume of work, etc.

3. Short-term planning- the period of the short term plan is less than one year. It is also known

as operational planning. Such a plan may relate to any of the following matters:

(i) Purchase of raw materials.

(ii) Arranging for employee training.

(iii) Provision of certain amenities for the staff with the available funds.

6. What are the control exceptions of management by exception (MBE)?

It is a management technique by which managers concentrate only on exception deviations

instead of trying to correct each and every deviation. The advantage of the technique of

management by exception is that it allows the manager to concentrate on problems that need

his attention and to avoid dealing with those that can be well advantages themselves.

The following are the advantages of MBE:

1. It allows the manager to devote more time for important issues by letting the subordinating

deal with issues if a routine nature.

2. As the manage need not bother about routine matters, he will be able to supervise the work

of more subordinates. In other words, MBE gives scope for a wider span.

3. Since the manager devotes more time for vita issues, he will be able to make better decisions.

4. The subordinates are given authority to make decisions on certain matters without any

interference by the executives. This motivates them to perform better.

5. The management is also able to utilize the available talent at the lower levels.

Limitations of MBE

MBE however has certain limitations as given below:

1. There is no parameter availability by which one can differentiate important deviations from

the unimportant ones. The manager may, by using his authority, retain to make decision on any

issue.

2. Only an organization that has a perfect system of control will be able to employ the technique

of MBE.

3. It may lead dispersal of authority that has its own limitations.

7. What are the features of MBO?

1. MBO is an approach and philosophy to management and not merely a technique. A

management technique can be applied in selected parts of the organization and will have

limited implications for its other parts. MBO employees several techniques but it is not merely

the sum-total of all these techniques.

2. As an approach to management with objective orientation as its essence, MBO is the joint

application of a number of principles and techniques.

3. The basic emphasis if MBO is on objectives. Where the various techniques help in

measurement of results in resources. MBO is also concerned with determining what these and

resources should be objectives provide the means for integrating the organization with

environment. Its subsystems and people.

4. The MBO IS characterized by the participation of concerned managers in objective setting and

performance reviews. The process clarifies the role very sharply in terms of what one is

expected to achieve.

5. Periodic review of performance is an important feature of MBO. The performance review is

held regularly, normally once a year.

8. What are the advantages of MBO?

The experience of many organizations suggests that when used as an approach to

management, MBO has a wide range of benefits.

Better managing

MBO helps in better management the organization resources and activities.

Resources and activities are put in such a way that results in better.

(I) the relationship between clarity of objectives and improvement of performance is

cornerstone of MBO philosophy.

(ii) Clarity of roles, including the areas of authority and responsibility, leads to improved

performance.

(iii) Periodic review helps in better performance by giving feedback about ones action and its

results.

(iv) Participation in MBO process is expected to ensure achievement of objectives participation

elicits commitment of people and motives them.

Clarity in organizational action:

MBO trends to provide the key result areas (KRAs) where organizational efforts are

needed. The organizational can look forward to what it intends to do in future, in short run as

well as in the long run.

Personnel satisfaction

MBO provides greatest opportunity for personnel satisfaction. This is possible because

of two closely related phenomena participation on objective setting and rational performance

appraisal.

Basis for organizational change

MBO stimulates organizational change and provide plan, direct control the direction

and speed of change. If MBO applied, the change process becomes easier because there is lesser

amount of resistance to charge as people become more innovative and dynamic and changes

can be incorporated very easily as compared to rigid system of objective setting and

performance evaluation by the superior alone.

UNIT-III

SEC-A 2

marks

1. Define Organization

Louis A. Allen “Organization is the process of identifying and grouping the work to be

performed, defining and delegating responsibility and authority and establishing

relationships for the purpose for enabling people to work most effectively in

accomplishing objectives”.

2. What is the organisation?

An organization always refers to people. The organization is composed of people who

interact among themselves. The interactions are specified by some sort of structure. The

interactions are meant to achieve some sort of objectives.

3. Define Authority, Responsibility

Authority in the organization is the power in a position to exercise discretion in making

decisions affecting others. Responsibility is the duty to which a person is bound by

reason of his status or task. Such responsibility implies compliance with directives of the

person making the initial delegation.

4. What is meant meant by division of labour?

Division of labour implies that work must be divided to obtain clear cut specialization

with a view to improving the performance of individuals in the organization. It is

necessary to identify the various activities to be performed.

5. What do you mean by Unity of Command?

Unity of command means that a person in the organization should receive orders from

only one superior. The more completely an individual‟s has a reporting relationship to a

single superior, the less is the problem of conflict in instructions and greater is the feeling

of personal responsibility of results.

6. What do you mean by Span of Control?

Span of Control refers to the number of subordinates which can be effectively supervised

by a superior. Span of control for a superior should be limited because every manager has

a limited amount of knowledge and capacity.

7. What is power system?

Every organization has a power sub-system and people in the organization elaborate to

achieve desired results. Power distribution in the organization is both formal and

informal. Power subsystem is important to transform a decision into action in the

organization.

8. What is Cybernetics?

Cybernetics is a crucial aspect of systems theory. Cybernetics is an important concept for

the control function. Cybernetics involves communication and control. It is concerned

with information flow in complex systems. The word „cybernetics‟ stems from the Greek

„kybernetes‟, or „helmsman‟, and relates to the connotation „direction of‟.

9. Define strategy

The choice of a strategy by the organization is largely determined by the environment,

other factors particularly organization strengths and weaknesses and personal factors also

affect this choice. There is close relationship is important so that in implementing the

strategy.

10. Define organization structure

Organization structure refers to the differentiation and integration of activities and

authority, role and relationships in the organization. Differentiation is the differences in

cognitive and emotional orientations among managers in different functional

departments, and differences in formal structure among these departments.

11. Define leadership

Leadership is the ability to persuade others to seek defined objectives enthusiastically. It

is the human factor which binds a group together and motivates it towards goals. The

leadership role may come from anyone in the informal organization. While in the case of

a formal organization, superior assumes the role of a leader, in informal organization

there is no formal leader.

12. What is Role Conflict?

An individual perceives role conflict when he has to fulfill conflicting requirements of

two or more roles. It may be observed that a person may perform several roles at the

same time. Due to informal organization, a person has to perform two roles, one relates to

his official position and another relates to satisfaction of members of his group.

13. What is Rumor?

Rumor is a specific preposition for belief, passed from person to person usually by word

of mouth, without securing the standards of accuracy in the communication. Rumour

deals with temporary events in a way that implies that whatever is said is believed the

though there is not much authentic information to support it. Rumour is spread through

informal organization.

14. Define departmentation?

The first real task in designing an organization structure is the identification of activities

and to group them properly. The process of grouping the activity is commonly known as

departmentation. In business organizations, such terms as division, department and

section are used.

15. Define Span of Management

Span of management refers to the number of subordinates who can be managed

effectively by a superior. The number of subordinates who report to a superior has two

important implications first; it is influential in determining the complexity of individual

managers jobs. Second the span of management determines the shape or conflagration of

the organization.

16. What is Tall Structure?

Tall structure is one which fosters narrow span of management, a large number of

management levels, and more centralized decision making. The basic advantages of this

structure are close supervision, close control of sub-ordinates activities, and fast

communication between superior and his subordinates.

17. What is flat structure?

Flat structure is that which reduces the level of management, widens span of control of

managers at various at various levels of the organization, and is often more decentralized

with regard to decision-making autonomy. Its main advantages are more delegation of

authority, more clear policy, development of managers for higher position because of

their initiative and authority to make decisions.

18. Define power

Power is the probability that one actor within the relationship will be in a position to

carry out his will despite resistance. Power refers to capacity that a A has to influence the

behavior of B so that B does something he or she would not otherwise do”.

19. What is meant by committee?

Committees are found in every large organization. These committees are constituted at

various levels of the organization to perform function is assigned to them. A group of

persons in an organization for making or recommending certain decisions.

20. Define Team

Katzenbach and smith have defined a team as follows:

A team is a small number of people with complementary skills who are committee to

common purpose, performance goals, and approach for which they hold themselves

mutually accountable.

SEC-B 5 marks

1. What are the principles of organization?

There is a need to follow certain principles in order to formulate and develop a sound and

efficient organization structure some of the important principles of organization are as

follows.

Principle of objectives

The formulation of organization structure is very much influenced by the objectives of

the business concern. In view of this, the objectives of the business concern should be

clearly stated. This helps the management in formulating the organization structure and

also in achieving the enterprise objectives with minimum cost and effort.

Principle of specialization

The organization structure should be formulated in such a way that the activities of the

enterprise are divided according to the different functions and the same are assigned to

person according to their specialization.

Principle of span of control

The span of control should be minimum because there is a limit to the number of persons

that can be effectively supervised by one boss.

Principle of exception

Only exceptionally complex matters should be referred to the executives for their

decision and matters of routine nature should be decided by the subordinates themselves.

This is necessary, because the executives at a higher level instead of spending their time

for deciding routing matters can concentrate on more important matters.

Principle of authority

Authority that is given to the manager enables him to accomplish the objectives of the

enterprise. Hence, the authority of each manager should be clearly defined and also it

should be equal to the responsibility entrusted to him.

Principle of unit of command

According to this principle, each subordinate should have only one superior and dual sub-

ordinate should be avoided. Dual subordination may result in indiscipline in subordinates,

undermining of authority, disorder, delay and confusion.

Principle of delegation

The organization structure should provide for the delegation of authority at every level

the authority delegated should be equal to responsibility so a to enable the concerned

person to accomplish the task assigned to him by his superior.

The scalar principle

For making management effective, there should be clear line of authority. The line of

authority from the chief executive at the top of enterprise to the first line supervisors at

the bottom must be clearly stated.

2. What are the factors influencing organization structure?

The organizing function makes the people work. The function involves managers in

decision which result in a system of specialized co-ordinate jobs. In an organization

structure so many aspects are involved. Human and non-human elements will be

working.

The following factors determine the organization structure

Size of the unit

Size indicates the scale of operation. Normally there are three scales of operation

viz., small, medium and large. Size in an important factor governing cost, efficiency and

profitability of a business enterprise. Before any business or non-business enterprise is

started, the organizers will have to decide the most profitable and viable size of the unit.

The size of organization is also determined by the capital employed in the unit.

There may be heavy capital outlay but it may be less labour intensive.

The nature of business unit also determines the size and organization structure. If

it is capital goods industry with huge capital outlay the organization structure will be

complex in nature.

Job design

The bricks that develop an organization structure are jobs. What are jobs to be

done structure are jobs. What are jobs to be done in an organization has to be decided by

the top brass. Job design is the first managerial decision of the organization structure.

Jobs in a task have to be specified as one person cannot perform a task. It is a team work.

Job in each task is to be specified and assigned.

Grouping of activities

The designed jobs have to be formed into groups according to the nature of

activity. Grouping of activities are essential to achieve coordination. Each group is

termed as “Department”. Departmentation is another factor which determines the

organization structure. Thus in each business organization we observe departments like

marketing department, production department, finance department etc which discharge

their functions.

Span of control

Another factor that determines the organization structure is the number of persons

to be managed by each manager. This is called span of management. Depending upon the

nature of organization some departments will be big in size and some will be small.

Therefore, each manager should be assigned with manageable tasks and personnel. If the

tasks are many in a departments, there should be splitting the tasks into number of

divisions and lower levels are to be created.

Delegation of authority

Authority relationship also decides the organization structure. If the span is more,

there will be more authority levels and top management has to delegate authority to each

level. Authority means the right to make decisions without having to obtain approval

from a higher up. If the span is narrow, less levels and more centralization of authority.

Thus delegation of authority decides the organization structure.

3. What are the features of good organization structure?

The good structure is one which meets the demands of various contextual

variables namely environment, strategy, technology, size and people. However, certain

features of organization structure can meet all these demands.

Clear line of authority

Whatever the form of structure is adopted, there should be clear lines of authority

running from top to bottom or in horizontal directions. The concept of clear line of

authority implies that one should be very clear about what he is expected to achieve or

contribute and what relationships should be maintained by him at his official level.

Application of ultimate responsibility

The concept of ultimate responsibility suggests that although a superior manager

assigns some of the work to his subordinates, he is ultimately responsible for

performance of total work. Thus, he is responsible for his own work as well as for the

work performed by his subordinates.

Proper delegation of authority

The concept of ultimate responsibility can work only when there is proper

delegation of authority at various levels of the organization. Delegation of authority

refers to authorization of a manager to make certain decisions. He can discharge his

responsibility properly if he has commensurate authority.

Minimum possible managerial levels.

As far as possible, there should be minimum managerial levels. Greater the

number of managerial levels. Greater the number of managerial levels, longer is the line

of communication in the chain of command and the communication has to travel along

the line creating problems of delay and distortion.

Proper emphasis on staff

Line functions should be separated from staff functions and adequate emphases

are should be placed on important staff activities. This is important particularly in large

organizations. The line and staff activities are required because both serve different

objectives of the organization.

Proper for top management

In corporate form of organization, it is imperative to provide some means by

which shareholders and members of the board of the directors participate in management

process. Normally, shareholders are indifferent so far as day-to-day management affairs

of the company are concerned.

4. What is the importance of departmentation?

The basic need for departmentation arises because of specialization of work and

the limitation on the number of subordinates that can be directly controlled by a superior.

Advantages of specialization

The basic advantage of the specialization lies in terms of efficiency with which

the work is performed because a person focuses his attention on a narrow aspect of the

work and he gets mastery over that aspect. Naturally this result in performing the work

more efficiently.

Fixation of responsibility

Departmentation helps in fixing the responsibility and consequently

accountability for the results. Responsibility can be discharged properly when it is clear,

precise and definite. Though, departmenation, the work is divided into small units where

it can be defined precisely and responsibility can be fixed accurately.

Development of managers

Departmentation helps in the development of mangers. Development is possible

because of two factors. First, the managers focus their attention the some specific

problems which provides them effective on the job training. Second, managerial need for

further training can be identified easily because the mangers role is prescribed and

training can provide them opportunity to work better in their area of specialization.

Facility in appraisal

Managerial performance can be measured when area of activities can be specified

and standards in respect of these can be fixed. Departmentation provides help in both

these areas. When a broader function is divided into small segments and a particular

segment is assigned to each manager, the area to be appraised is clearly known, the

factors affecting the performance can be printed out come easily.

Feeling of autonomy

Departmentation provides motivation by developing feeling of autonomy to the extent

possible. Normally departments are created in the organization with certain degree of

autonomy and freedom. The manger in charge of a department can take independent

decisions within the overall framework of the organization.

5. Explain factors affecting span of management

The basic idea behind limiting the span of management is to enable a manager to

manage his subordinates effectively. As such, the important determinant for specifying

the span of management is the mangers ability to reduce the frequency and time impact

of superior subordinate relationships.

Capacity of superior

Each manager has different ability and capacity in respect of such factors as

leadership communication, decision making, control etc affecting management of sub-

ordinates. Mangers having more capacity in respect of these factors can managed more

number of subordinate in similar situation.

Capacity of subordinates

Capacity of subordinates also affects the degree of span of management. Efficient

and trained subordinates may discharge their functions more efficiently without much

helps of their superior. They may just need broad guideline and rest of the things can be

performed by them.

Nature of work

Nature of work affects degree of span management because different type of work

require different patterns of management and hence time form superior. If subordinates

are performing similar functions, they require less attention of the superior and span can

be wider.

Degree of decentralization

Degree of centralization or decentralization affects span of management by

affecting the degree of involvement of the superior in decision-making process. Thus,

higher is the degree of decentralization, higher is the degree of span.

Degree of planning

Higher is the degree of plans, particularly standing plans clearly providing rules,

procedures, methods etc. in doing the work, higher would be the degree of span of

management. In such cases, the subordinates can take actions on their own.

Communication techniques

The pattern of communication, its means, and media affect the time requirement

in managing subordinates and consequently span of management. If communication is

mostly face-to-face, it requires more time on the part of both superior and subordinates.

Use of staff assistance

Use of staff assistance in reducing the work wad of managers enables them to

manage more number of subordinates. Many of the managerial functions can be

discharged by these staff personnel on behalf of the managers.

6. Explain tall and flat structure

Tall structure is one which fosters narrow span of management, a large number of

management, a large number of management levels, and more centralized decision

making. The basic advantage of this structure is close supervision, close control of

subordinates activities, and fast communication between superior and his subordinates

Flat structure is that which reduces the levels of management, widens of span of

control of mangers at various levels of the organization and is often more decentralized

with regard to decision-making autonomy. Its main advantages are more delegation of

authority, more clear policy, development of managers for higher positions because of

their initiative and authority to make decisions etc.

The relative merits and demerits of flat and tall structure do not lead to any

definite conclusion. In fact, the results of many researchers also do not suggest a definite

trend. The essence of the arguments was that the flat structure with wide span of

management produced less control form the top, greater individual initiative and thus

more satisfied as well as more effective. However, the experimental study of cargo and

yanouzas shows that groups operating under a relatively tall organization structure have

relatively better performance than groups operating under the flat structure.

Small group research studies also suggest that with the lesser members, the group

has more cohesiveness and provides more satisfaction to its members.

Thus the choice of tall and flat structure may not be determined merely by their

relative strengths and weaknesses alone but factors affecting these should also be taken

into consideration. This is what the situational approach of management also suggests

7. Explain line and staff organization structure

Line and staff organization structure refers to pattern in which staff specialists

advise managers to perform their duties. When the work of an executive increases, its

performance requires the services of specialists which he himself cannot provide because

of his limited capabilities on these fronts. Such advice is provided to line managers by

staff personnel who are generally specialists in their fields. The staff positions or

departments are of purely advisory nature

The problem can usually be solved by classifying activities within an organization

in two ways. That which is substantive in its contribution to the organization overall

objectives and that which is objective in its contribution. The departments performing

Secretary Public Relation Officer

General Manager

former group of activities are line ones, and those performing latter group of activities are

staff ones.

Manager-Finance Manager -

Personnel

Manager-Production Manager -

Marketing

Production Engineer Sales

Officer

Foreman Sales

Supervisor

Workers Sales Men

The positions and departments in rectangles are staff and others are line. These

staff specialists may provide services to a particular position, departments, or

organization as a whole.

Merits

Planned specialization

The line and staff structure is based upon the principle of specialization. The line

managers are responsible for operations contributing directly the achievement of

organizations objectives.

Quality decisions

The quality of decisions in line and staff structure is high because the decisions

come after careful consideration and thought each expert gives his advice in the area of

his specialization which is reflected in the decisions.

Prospect for personnel growth

This system of organizing offers ample prospect of efficient personnel to grow in

the organization. Not only that, it also offers opportunity for concentrating in a particular

area, thereby increasing personal efficiency.

Demerits

Lack of well-defined authority

Though it is easy to say about line and staff authority, o ten in practice, it becomes

difficult to differentiate clearly between line and staff because, in actual practice, the

authority if often diffused.

Line and staff conflicts

The main problem of line and staff structure is the conflicts between line and staff

mangers, as discussed. Such conflicts may be because of various reasons and sometimes

the organizational conflict may be taken as personal conflicts resulting in interpersonal

problems.

8. Explain organization charts and Manuals

Organisation charts and Manuals are the improvement tools for providing

information on organization relationships and activities.

According to Henry H. Albens, “An Organisation chart portrays managerial

positions and relationships in accompany or department unit”.

Organisation charts have one following contents

Ranks, names, titles and the lines of command, various authorities from

top to bottom of the organization.

Authority and responsibility of various authorities.

Relationships between different authorities.

Kinds of relationship prevailing in the organization.

Three types of charts are commonly followed by the business concern. They are

a) From top to down

b) From left to right

c) Circular

In top down method, at the top level, the highest person or position is placed and after

that the next highest and this process is continuoued to the lowest level.

Production Marketing Personnel

Finance

Manager Manager Manager

Manager

From „top-to-down‟ type organization Chart.

In the left-to-right type, the highest position is shown at the extreme left and those

will lesser authority move towards the right.

Finance Manager

Chief Personnel Manager

Executive Marketing Manager

Production Manager

From „left Wright‟ type of organization chart.

In the circular form, the highest position is shown in the centre and the lowest

position at the outermost circle.

Organizational Manuals:

It is a small book containing information such as the defaults of various positions, their

authority and responsibility, job description, salaries, relationship, activities, duties and

functions of each position and organization procedure and methods. Organisation manual

is an authentic guide to the company‟s overall organization and sub-parts.

UNIT – IV 2marks

1) Define the term of motivation?

“ A motivate is an inner state that energlses, activates , or moves (hence

motivation) and that directs behavior towards goals,”

Motive has also been described as follows:

“ A Motivate is restlessness, a lack , a yen, a force. Once in the grip of a

motivate, the organism does something to reduce the restlessness, to remedy the

lack, to alleviate the yen to mitigate the force”.

2) Distinguish b/w motivate & motivation?

Motivating:-

Motivating is a term which implies that one person (in the organizational

context, a manager) induces another, (say, employee) to engage in action (work

behavior) by ensuring that a channel to satisfy the motive becomes available and

accessible to the individual. In addition to channelizing the strong motives in a

direction that is satisfying to both the organization and the employees, the

manager can also active the latent motives in individuals and bareness them in a

manner that would be functional for the organization .

Motivation:-

While a motive is energizer of action, motivating is the channelization and

activation of motives, motivation is the work behavior itself, motivation depends

on motives and motivating, therefore, it becomes a complex process.

3) What is the goal director behavior?

Motivation Causes goal directed behavior as indicated is its nature .

Feeling of a need by an individual generates a feeling that he lacks something.

This lack of something Creates tension in the mind of the individual. Since the

tension is not an ideal state of mind, the individual tries to overcome this by

engaging himself in a behavior through which he satisfies his needs.

Ideal state of mind, the individual tries to overcome this by engaging himself in a

behavior through which he satisfies his needs.

Need Tension Goal-directed behavior Goal-fulfillment/ need

satisfaction

Goal – directed behavior leads to goal –fulfillment and the individual

succeeds in fulfilling his needs and thereby overcoming his tension in the

favorable environment.

4) Define Leadership

Leadership is the process of influencing the behavior of others to work

willingly and enthusiastically for achieving predetermined goals.

Define: “Leadership is the process of influencing and supporting others to work

enthusiastically toward achieving objectives”

5) Define Communication:

“Communication is defined as the process by which people seek to share

meaning via the transmission of symbolic messages”.

6) What is common Process:

Communication has been deemed as a process. The term process refers to

identifiable flow information through interrelated stages of analysis directed

towards the achievement of an objective. In the case of social actions, the concept

of process is dynamic rather than static in which events and relationships are seen

as dynamic, continuous, and flexible, a dynamic interaction both affecting and

being affected by many variables. There are four elements in the process – action,

a continuous change in time, advancement or progress over time, and a goal or

result.

7) What are the problems in two-way communication

Two-way communication is not exclusively beneficial: it may create

problems.

1) Polarization

2) Cognitive Dissonance

Polarisation:

Two persons may strongly disagree about sometimes but may not realize it

until they establish tow-way communication. When they express their view

points, they may become even more polarized, taking even more extreme

position.

Cognitive Dissonance:

Another problem in two-way communication may occur in the form of

cognitive dissonance. It is the internal conflict and anxiety that occurs when

people. Relive information incompatible with their value system, prior

decisions, or other information they may have. In two-way communication,

this gets heightened.

5mark

1.Briefly explain the nature of Motivation?

Based on the definition of motivation. We can derive its nature relevant for

human behavior in organization.

1. Based on Motives:

Motivation is based on individuals motives which are internal to the

individual. These motives are in the form of feelings that the individual lacks

something. In order to overcome this feeling of lackness, he tries to behave in a

manner which helps in overcoming this feeling.

2. Affected by Motivating:

Motivation is affected by way the individual is motivated. The act of

motivating channelizes need satisfaction. Besides, it can also activate the latent

needs in the individual, that is, the needs that are less strong and somewhat

dormant, and harness them in a manner that would be functional for the

organization.

3. Goal- directed Behavior:-

Motivation leads to goal-directed behavior. A goal –directed behavior is one

which satisfies the causes for which behavior takes place. Motivation has

profound influence on human behavior, in the organizational context it harnesses

human energy to organizational requirements.

4. Related to satisfaction:

Motivation is related to satisfaction. Satisfaction refers to the contentment

experiences of an individual which he derives out of need fulfillment. Thus,

satisfaction is a consequence of rewards and punishment associated with past

experiences. It provides means to analyse outcomes already experienced by the

individual

5. Person motivated in Totality:

A person is motivated in totality and not in part. Each individual in the

organization is a self – contained unit and his needs are interrelated. These affect

his behavior in different ways. Moreover, feeling of needs and their satisfaction is

a continuous process.

6.

6. Complex Process:

Motivation is a complex process; complexity emerges because of the nature

of needs and the type of behavior that is attempted to satisfy those needs.

1. What are different types of Need?

There are many needs which an individual may have and there are various

ways in which these may be classified. Needs may be a natural, biological

phenomenon in an individual, or these may develop over the period of time

through learning. Since these two types of needs emerge from two different

sources, these may be satisfied by different types of incentives.

1. Primary needs.

2. Secondary needs, and

3. General needs.

Primary Needs:

Primary needs are also known as Psychological, basic, or unlearned needs.

However, the term primary is more comprehensive as compared to other

terms. Primary needs are animal drives which are essential for survival.

These needs are common to all human beings. Through their intensity may

differ. Some of the needs are food, sex, sleep, air to breathe, satisfactory

temperature, etc. But researches in human behavior show that Psychological

needs are equally rather more important for human beings.

Secondary Needs:

As contrast to the primary needs, secondary needs are not natural but are

learned by the individual through his experience and interaction. Therefore,

these are also called learned or derived needs. Emergence reason why we

find differences among need pattern of a child and a matured individual.

There may be different types of secondary needs like need for power

achievement, status, affiliation, etc.

General Needs:

Though a separate classification for general needs is not always given, such a

category seems necessary because there are a number of needs which lie in

the grey area between the primary and secondary classification. To be

included in the category, a need must not be learned but at the same time, it

is not completely physiological. In fact, there are certain such needs like

need for competence, curiosity, manipulation, affection, etc.

3 . What are the factors affecting individual performance?

1. Various individuals perform differently in the same work situations.

2. The same individual performs differently in different work situations.

Motivations Exhinsic

Ability Resources

Performance Reward

Intrinsic

role perception

Sense of competence

1. Motivation of individual

2. His sense of competence

3. His ability

4. His role perception

5. Organizational resources.

1. Motivation:

Level of Motivation drives an individual for work, As we have seen earlier,

motivation is based on Motive which is a feeling that an individual lacks

something. This feeling creates some sort of tension in his mind. In order to

overcome this tension, he engages in goal –directed behavior, that is, talking those

actions through which his needs are satisfied. Thus, motivation becomes a prime

mover for efforts and better work performance.

2. Sense of competence:

Sense of competence denotes the extent to which an individual consistently

regards himself as capable of doing a job. Sense of competence of an individual

depends to a very great extent on his locus of control. Locus of control means

whether people believe that they are in control of events or event control them.

Those who have internal locus of control believe that they can control and shape

the course of events in their lives: those who have external locus of control tend to

believe that events occur purely by chance or because of factors beyond their own

control.

3. Ability:

While sense of competence is a type of perception about oneself, ability is his

personal attributes relevant for doing a job. Often, ability is expressed in the form

of the following equation.

Ability = Knowledge X Skill

Knowledge refers to the possession of information and ideas in a particular field

which may be helpful in developing relationships among different variables

related to that field.

4. Role Perception:

A role is the pattern of action expected of a person in activities involving others.

Role reflects a persons position in the social system with its accompanying rights

and obligations. In an organization, activities of an individual are guided by his

role perception, that is, how he thinks he is supposed to act in his own role and

how others act in their role. To the extent this role perception is based on reality

and the role is clear, the individual tends to perform well. There are two types of

problems which emerge in role specification: role ambiguity and role conflict.

Role ambiguity denotes the state in which the individual is not clear what is

expected from him in the job situation.

5. Organizational Resources:

Organizational resources denote various types of facilities – physical and

psychological – which are available at the workplace. Physical facilities include

appropriate layout of the workplace and conductive physical environment.

Psychological facilities include appropriate reward system. Training and

development facilities, harmonious workgroup, appropriate and motivating

leadership styles, motivating work, and so on. First, they facilitate job

performance. Second, they work as motivating factors which enhance individual

enthusiasm to perform well.

4.What are the Effect of Motivation?

From the above discussion, we find that motivation is one among the various

factors affecting individual performance. However, it is one of the most important

factors. All organizational facilities will go waste in the lack of motivated people

to utilize these facilities effectively.

1. High performance level:-

Motivated employees put higher performance as compared to other

employees. In a study by William James, it was found that motivated employees

worked at close to 80-90 per cent of their ability. The study further suggested that

hourly employees could maintain their jobs, if they were not fired, by working

approximately 20 to 30 per cent of their ability. The high performance is a must

for an organization being successful and this performance comes by motivation.

2. Low Employee Turnover and Absenteeism:-

Motivated employees stay in the Organization and their absenteeism is

quite low. High turnover and absenteeism create many problem in the

organization. Recruiting, training and developing large number of new personnel

in to a working team take years. In a competitive economy, this is almost an

impossible task, Moreover, this also affects the reputation of the organization

unfavorably.

3. Acceptance of organizational changes:-

Organizations are created in the society. Because of changes in the society

– changes in technology value system, etc. organization has to incorporate those

changes to cope up with the requirement of the time. When these changes are

introduced in the organization, there is a tendency to resist these changes by the

employees. However, if they are properly motivated they accept, introduce, and

implement these changes keeping the organization on the right track of progress.

5.Explain Maslow’s theory?

The behavior of an individual at a particular moment is usually determined

by his strongest need. Psychologist claim that needs have a certain priority. As the

more basic needs are satisfied, an individual seeks to satisfy the higher needs.

A.H.Maslow, a famous social scientist, has given a framework that helps to

explain the strength of certain needs.

1. Physiological Needs:

The physiological needs are at the top of the hierarchy because they tend

to have the highest strength until these needs are satisfied to the degree needed

for the efficient operation of the body, the majority of a persons activities will

probably be at this level, and the other levels will provide him with little

motivation. A famous saying man can live on bread alone if there is no bread”

Suggests that human beings first try to acquire necessities for their survival.

Self

actualization

esteem

social

security

physiological

2. Safety Needs:

Once the physiological needs are satisfied to a reasonable level – it is

not necessary that they are fully satisfied and degree of reasonableness is

subjective – other levels of needs become important. In this hierarchy come

the needs for safety, that is, needs for being free of physical danger or self –

preservation. In the industrial society, safety needs may take considerable

importance in the context of the dependent relationship of employees to

employers. As pointed out by MC Gregor, the safety needs may serve as

motivators in such circumstances as arbitrary management actions, behavior

which arouses uncertainty with respect to continued unemployment and

unpredictable administration of policy.

3. Social Needs:

After the first two needs are satisfied, social needs become needs

become dominant, a person will shrive for meaningful relations with others. If

the opportunity for association with other people is reduced, men often take

vigorous action against the obstacles to social intercourse, environment. Such

environment develops where the work is routine, tedious, or over – simplified.

This situation is made worse when workers are closely supervised and

controlled, but have no clear channel of communication with management.

4. Esteem Needs:

The esteem needs are concerned with self –respect, self- confidence, a

feeling of personal worth, feeling of being unique and recognition.

Satisfaction of these needs produces feelings of self – confidence, prestige,

power, and control. The satisfaction of esteem needs is not always obtained

through mature or adaptive behavior.

5. Self – actualization Needs:-

Self – actualization is the need to maximize one‟s potential, whatever

it may be. This is related with the development of intrinsic capabilities which

lead people to seek situations that can utilize their potential. This includes

competence which implies control over environmental factors, both physical

and social, and achievement. A man with high intensity of achievement needs

will be restless unless he can find fulfillment in doing what he is fit to do. As

Maslow has put it, “this need might be phrased as the desire to become more

and more what one is to become everything that one is capable of becoming”.

6. Critical Analysis of Maslow’s Theory?

Maslow‟s theory has reasonable support for the hypothesis that human

needs have some hierarchical order. The theory is based on the assumption, it

is true also, that man is continuously wanting.

1. There is lack of hierarchical structure of needs as suggested by

Maslow, though every individual has some ordering for his need

satisfaction. This is based on the assumption that man has limited

resources which he can use alternatively, Resources, here, cannot be

taken only in a physical way, rather these are used in more

comprehensive way. Naturally, every person has to satisfy his needs in

some order. However, this order may not follow Maslow‟s need

hierarchy.

(i) Some people may be deprived of their lower order needs but may try for

self – actualizing needs. The example of Mahatma Gandhi is one of the

most important. This does not require any further explanation.

(ii) There are certain persons for whom self – esteem needs are more

important than social needs. Such people may be those who seek self –

assertion as a means to an end, that is, love need.

(iii)There is considerable disordering among physiological needs, safety

needs, social needs, and esteem needs, particularly in organizational

context. For example, may people do not care for job security need.

(iv) For certain people, many of the needs may not form part of their own need

hierarchy. Thus, there is not only question for reversal of hierarchy but

also discontinuity of hierarchy. For example, there may be people who

might be deprived of social need form their childhood.

(v) There is another problem which is common with many other theories also,

that there is often of lack of direct cause – effect relationship between

need and behavior. This problem has been discussed earlier in the chapter.

For example, if a person is thirsty, he may take water, or some soft drink,

or some juice, similarly, people may earn money to satisfy several types of

needs, not only physiological needs. Thus, need hierarchy is not as simple

as it seems to be.

(vi) There is another problem in applying the theory into practice. A person

tries for his higher – level need when his lower – order need is reasonably

satisfied. What is this reasonable level is a question of subjective matter.

Thus, the level of satisfaction for particular need may differ from person

to person. In fact, needs and their satisfaction are mental feelings

sometimes, even the person concerned may not be aware about his own

needs.

2. There is another problem which is common with may other theories

also, that there is often of lack of direct cause – effect relationship

between need and behavior. This problem has been discussed earlier in

the chapter for example, if a person is thirsty, he may take water, or

some soft drink, or some juice, similarly, people may earn money to

satisfy several types of need not only physiological needs. Thus, need

hierarchy is not as simple as it seems to be.

3. There is another problem in applying the theory into practice. A person

tries for his higher – level need when his lower – order need is

reasonably satisfied. What is this reasonable level is a question of

subjective matter. Thus, the level of satisfaction for particular need

may differ from person to person. In fact needs and their satisfaction

are mental feelings. Sometimes, even the person concerned may not be

award about his own needs.

7.Compare & Contract theory of X and Y?

Both these theories have certain assumptions about human nature. In

fact, they are reverse sides of a coin, one representing head and the other

representing tail. Thus, these assumptions seem to be mutually exclusive. The

difference between two sets of assumptions can be visualized as follows:

1. Theory X assumes human beings to be inherently distasteful towards

work. Theory Y assumes that for human beings, work is as natural as play.

2. Theory x emphasizes that people do not have ambitions and try to avoid

responsibilities in jobs the assumptions under theory Y are just are reverse.

3. According to theory x, most people have little capacity for creativity while

according to theory y, the capacity for creativity us widely distributed in

the population.

4. In theory X, motivating factors are the lower needs. In theory Y, higher –

order needs are more important for motivation, though unsatisfied lower

needs are also important.

5. In theory X, People lack self motivation and require to be externally

controlled and closely supervised to get maximum output from them. In

theory Y, people are self –directed and creative and prefer self – control.

6. Theory x emphasizes scalar chain system and centralization of authority in

the organization while theory Y emphasizes decentralization greater

participation in the decision –making process.

7. Theory X emphasizes autocratic leadership; theory y emphasizes

democratic and supportive leadership.

8.Bringout the importance of leadership?

Leadership is an important factor for making any type of organizations successful.

Through out the history. It has been recognized that the difference between

success and failure, whether in a war, a political movement, a business, or a team

game can be attributed largely to leadership.

Here we are more concerned about manager as a leader. Without a good leader,

organization cannot function efficiently and effectively.

1. Motivating Employees:-

As discussed earlier, motivation is necessary for work performance. Higher the

motivation, better would be the performance. Higher the motivation, better would

be the performance. A good teacher, by exercising his leadership, motivates the

employees for high performance Good leadership in the organization itself is a

motivating factor for the individuals.

2. Creating Confidence:-

A good leader may create confidence in his followers by directing them, giving

them advice, and getting through them good results in the organization. Once an

individual, with the help of a leader, puts high efficiency, he tries to maintain it as

he acquires certain level of confidence towards his capacity.

3. Building Morale:-

Morale is expressed as attitudes of employees towards organization, management

and voluntary cooperation to offer their ability to the organization. High leads to

high productivity and organizational stability, through providing good leadership.

In the organization, employees morale can be raised high ensuring high

productivity and stability in the organization.

Thus, good leadership is essential in all aspects of managerial functions whether if

be motivation. Communication or direction. Good leadership ensures success in

the organization, and unsatisfactory human performance in any organization can

be primarily attributed poor leadership.

9.What are the elements of communication process?

Communication being a process, must have some elements to complete the

process. Various elements of communication have been presented in different

models of communication.

1. Sender:-

Sender of the message is the person who contacts other persons with the

objective of passing the message. In organizational context the sender may be

a superior, a subordinate, a poor, or any other person. The organizational

position of the sender determines the direction of communication in the

organization. A message following from a superior to a subordinate is known

as down ward communication.

2. Message:

Message is the subject of the Communication Which is intended to be

passed to the receiver from the sender. Message may be in the form of ideas.

Message may be in the form of ideas, opinions, feelings, views, orders,

suggestions, etc. Sometimes, people use message and communication

interchangeably, for example, A asks to B, “ have you received any

communication form your company on this issue. Though technically, the use of

the term Communication in place of message is wrong, the meaning of the

communication content may be understood correctly.

3. Encoding:

Since the ideas, opinions, feelings, Views, orders suggestions, etc. Which

are the subject matter of communication are abstract and intangible their

transmission requires the use of certain symbols such as words, pictures, gestures

and other body language.

4. Channel:

Message converted unto symbols is transmitted by the sender through a

channel like written words in the forms of letter or electronic mail, Spoken words

through personal contact or telephone depending on the situating of the parties –

sender and receiver. Gestures are used with spoken words.

5.Receiver:

Receiver is the person to whom message is sent. Like the sender, the

receiver may be a superior, a subordinate , a peer, or any other person in the

organizational context. In a group communication, the receiver is in the form of a

group of persons, for example, addressing a group of employees by a manager in

an organization.

6.Decoding:

Decoding is just the reverse of encoding, the receiver converts the

communication symbols transmitted by the sender into message.

7.Feedback:

Feedback in communication is required to ensure that the receiver has

received the message and understood in the same sense as the receiver intended.

Feedback is a common feature of all systems whether man – made or Natural.

Feedback is a system that helps in understanding whether the system is working

properly.

10.What are the merits of oral communication?

1. Easy communication:

Oral communication is the easiest one as it saves time and cost involved in

decoding the ideas into words. It can be used to send the message instantly to the

receiver. With the development of telephone facilities, two or more persons can

exchange their message orally even if they are at distant places.

2.Effective:

Oral communication is an effective system because in face – to – face oral

communication, possibility of use of gestural communication that is emphasizing

any part of the message through facial expression and movement of parts of the

body is increased.

3.Instant Feedback:

In oral communication there in instant feedback for the message

transmitted . Where two -way oral communication is used, feedback process is

an integral part of the communication process. Even in one-way oral

communication, feedback is available from the listeners in the form of their

gestures.

4.Facility for Informal communication:

We have seen in chapter 12 that along with formal organization, informal

organization also exists to supplement the framer communication in formal

organization is in oral from. This allows employees to communicate their

feelings and views which they may not like to communicate in writing.

Thus it can be seen that oral communication helps in better performance

by providing the clear and timely message.

11.Essential of effective communication system?

The effectiveness of a system is measured in terms of its objective achievement.

There fore, the effective communication system is one which achieves its objectives.

However, determining the objectives of communication may not be precise because of

involvement of many intervening variables.

1.Clarity:

The communication process, in order to serve its purpose , must ensure

clarity of communication, there by facilitating exchange of ideas and avoiding

unnecessary seeking and tendering of clarifications. A communication possesses

clarity when it is expressed in a language and transmitted in a way that will be

comprehended by the receiver.

2. Adequacy:

There are, broadly speaking, two aspects of adequacy, viz.

(i) in terms of coverage, that is types of messages following in various

directions.

(ii) in terms of quantity of various types of messages the problem of

determining adequacy in regard to coverage is not very difficult. Through

communication audit, the adequacy of coverage can be measured.

3. Timing:

The utility of any message to the receiver is markedly affected by its

timeliness. The process of communication should, therefore, not only ensure that

the message reaches the receiver but also that it reaches him when requires. It is

quite possible that a person may require some time to compile an information

having diversified and complex contents, which he has to collect from several

points in the organization.

4. Integrity:

The principle of integrity of communication suggests that the purpose of

communication is to support understanding by the individuals in their achieving

and maintaining the co operation needed to meet organizational goals. effective

communication is not an end in itself, rather, it is means to get some ends.

Though the immediate objective of any communication is to get behavioral

response from the receiver of communication, its ultimate objective goes beyond

that.

In the perspective of the above discussion, we may conclude that the

communication system is effective if.

1. Adequate communication flows to different points in the organization.

2. The message received is very close to the message sent.

3. The non – verbal message is congruent with the verbal message.

4. The message elicits the desired response.

5. The communication results in building trusting relationship between the

source and the target.

BUSINESS MANAGEMENT

UNIT – 5

Co-ordination – Co-ordination – Control Steps in Control

Process – Significance – essentials of Effective System.

BUSINESS MANAGEMENT

UNIT – 5

Section – A 2 Marks

1. Give the Meaning of Co-ordination?

According to J.Lundy, “ Co-ordination involves the development of Unity of

purpose and the harmonious implementation of plans for the achievement of desired ends “.

“ Orderly arrangement of group efforts to provide unity of action in pursuit of a

common purpose “. To Co-ordinate is to keep expenditure proportionate to financial resources,

equipment and tools to production needs. Stocks to the rate of consumption.

2. What is vertical Co-ordination?

Co-ordination is vertical and horizontal co-ordination of the activities of manager

deputy manager, superintendent and others below him is called vertical co-ordination. This

means co-ordination from top down or bottom up on the other hand,

Horizontal co-ordination takes place sideways, for example, Co-ordination among different

departments of the enterprise.

3. What is types of Co-ordination?

Co-operation may be internal or external to the enterprise. Co-ordination

among the employees of the same department or section, among workers and mangers at

different levels, among branch offices, plants departments, and section is called internal Co-

ordination, Whereas Co-ordination with customers, suppliers, government and other outsiders

with whom the enterprise has business connection in called external Co-ordination.

4. Write a note on the Techniques of Co-ordination.

In this techniques, the superior or manager by directing, commanding and

controlling the efforts, of his subordinates achieves co-ordination. In the words of L.A. Allan, “

A manager in managing, must co-ordinate the work for which he is accountably balancing timing

and integrating it “ .

5. Define Co-ordination.

1. To co-ordinate is to harmonise all the activities of a concern so as to facilitate its working and its success. In a well co-ordinated enterprise, each department or division works in harmony with others and is fully informed of its role in the organization – Henry Fayoul.

2. Co-ordination is the orderly arrangement of group effort to provide unity of action in pursuit of a common purpose – Mooney and Reily.

6. What are the Oral Techniques (Tools)?

- Regular Staff Meetings. - Problem Review Meetings. - General organizational meetings and information meetings. - Technical Meetings. - Task-Force Meetings. - Routine Meetings of Manager, Workers. - The Grapevine - Special Co-ordination activities.

7. What are the Written Techniques (Tools)?

- Written objectives and management philosophy - Organization Charts - Documented Plans - Operating and Policy manuals - Programme instruction, work packages. - Memos, reports, letters, bulletins. - Minutes of Meetings. - Specifications.

8. Differences in Interpersonal orientation?

In some activities of organization. Such as production, there may be relatively

more formal ways of communication and decision-making. In other activities such as R&D, the

style of communication and decision – making may be informal.

9. Give the meaning of “Control” as perceived in management?

Control is the process to find out whether actions are being taken as planned

and taking corrective action to make them conform to plans and then to take the necessary

steps to prevent the occurrence of variation in future.

10. Define Controlling – Nature.

E.F.L. Brech – “ Control is checking current performance against

Predetermined Standards Contained in the plans with a view to ensuring adequate progress and

satisfactory performance “.

11. What is objective control?

Controls should be objective controls clarify the expected results in clear and

definite term and they also provide the control standards by which actual performance can be

measured.

12. What is Flexible Control?

Plans and other predetermined standards or criteria need to be altered from

time to time. Hence, the control system should be flexible so that it can be adjusted to suit the

needs of any modification or alteration in the plans or other predetermined criteria.

13. What do you mean by Economic Control?

The control system should be economical. The benefit derived by the

business concern from a control system should be more than the cost involved in its

maintenance.

14. What do you mean by concurrent control?

In the second phase of controlling, the operation managers have to monitor

the procedures in accordance with the plan already laid down. The manager should observe the

operation and instruct subordinates and procedures. This technique is called concurrent

control.

15. Name the two types of control?

1. It prevents faulty operation and creates a good base for future faultless operation and help in taking sound decisions.

2. Control systems provide a good opportunity for decentralization of authority..

16. Differentiate control from planning.

If planning is ‘looking ahead’, controlling is ‘looking back’. Planning helps to

attain the goal of the enterprise in a systematic manner. Control, on the other hand, ensures

that everything has been done as planned. It checks or verifies whether the actual performance

corresponds to the expected performance.

5 marks

1. Explain the characteristics of co-ordination.

The following are the important characteristics of co-ordination.

1. The need for co-ordination arises due to inter-dependence-When an individual or a department performs certain activities that do not affect anyone, there is no need for co-ordination at all. But in a business organization, the activities of the different departments are inter-related and inter-dependent. Therefore, these need to be properly co-ordinated.

2. It aims at attaining the common goal – Although the different departments in an enterprise work according to their won agenda, it is only thorough co-ordination that the overall enterprise objective is achieved.

3. It is the duty of every manager – Every manager has the duty to secure co-ordination. For this he should not just mind the activities of his department alone. He should find out the needs of those departments whose activities his department influences. For example, the production manger should co-ordinate the activities of his department with those of the sales department. He must arrange to produce to fulfil the needs of the sales department.

4. It does not arise spontaneously – Co-ordination of enterprise activities does not happen spontaneously. All the individuals and departments will have to work together to secure co-ordination. In other words, it requires conscious efforts.

5. It may be performed by specialists appointed for the purpose – Normally the task of co-ordination is performed by the departmental managers themselves with the help of their subordinates. But is a large concern the task of securing co-ordination may be entrusted to a specialist or to a group of experts. Sometimes, a separate department may also be created for the purpose.

6. It is an on-going activity – Co-ordination is not something that is required only at a particular point of time. The different activities of the enterprise need to be co-ordinated as and when they are performed. As long as there is planning and execution, there will be co-ordination.

2. State the importance of the co-ordination function.

The following benefits of co-ordination highlight its importance:

1. Co-ordination helps to attain common goal – Every department in an enterprise sets its own goal and strives to attain it. But it is only through co-ordination, the common goal of the enterprise is reached. This is done by integrating the activities of the various departments to secure unity of action.

2. It helps to avoid overlapping of activities – Co-ordination ensures that there is no duplication of work i.e., there is no repetition. When a team of 4 or 5 persons is

engaged in some work, it is important that they work with proper understanding. Otherwise, the work done by one may be done again by another and this leads to duplication. For example, if a market survey is planned, in the absence of co-ordination among the investigators, a customer already approached by one may be approached by another again.

3. It provides sense of direction – In an enterprise where very individual or department performs different activities. It is only co-ordination that provides a sense of direction to one and all. This it does by connecting all such activities so as to achieve the common goal.

4. It promotes efficiency – By avoiding duplication of work and overlapping of activities and also by providing scope for making on optimum use of the enterprise resources, co-ordination promotes efficiency.

5. It promotes good human-relations – Co-ordination necessitates co-operation and teamwork among the personnel in an organization. This leads to good human relations and eliminates the scope for unnecessary conflicts and misunderstandings among the individuals.

6. It provides personal goal with the enterprise goal – Every person in an organization does his work by setting his personal goal. This can be allowed so long as his personal goal and the goal of the organization do not clash. Co-ordination ensures that no such clash occurs by reconciling both.

3. What are the problems faced in securing effective co-ordination.

The following problems are usually encountered in the performance of the co-

ordination function:

1. Multiplicity of activities – The problem of co-ordination increases with the increase in the number of activities performed in an enterprise. The larger the number of activities the greater will be the problem of co-ordination.

2. Large number of employees – Securing co-ordination in a small organization, where only a few people are employed, is quite easy. On the other hand, in a big industrial establishment, where hundreds of employees are working, co-ordination is bound to pose problems.

3. Division of work – Division of work, no doubt, offers the benefit of specialization. But a serious drawback of division of work is that it will pose problems of co-ordination among the person who perform the different operations. Such a problem will not arise if one person alone performs a certain task.

4. Inter-dependence – Co-ordination will not pose any problem in case an individual or a group or a department is able to work independently without being influenced by others. But, in practice, the activities of any person will depend on those of others. For example, worker X may be able to do his work only after worker Y has performed his task. Thus, there is interdependence and this leads to the problem of co-ordination.

5. Clash of interests – If the organization has employees who are all duty conscious, co-ordination will not pose any serious problem. But normally in any organization there are people who always think and work for their personal interests and are not really bothered about the organizational interests. When such a clash of interest occurs, co-ordination become a tough job.

6. Differences in perceptions, values and beliefs – Co-ordination becomes difficult also due to the fact that the perceptions, values and beliefs of the employees in an organization are not the same. For example, if one worker is prepared to work overtime to complete the target and another is not prepared for overtime work, co-ordination becomes difficult. Likewise, there may be a worker who may be willing to continue work although he has attained his target for the day whereas another person may not be willing.

7. Lack of co-operative spirit – Co-operation among the staff provides the very basis for co-ordination. In an organization where there is lack of co-operative spirit among the employees, securing co-ordination is sure to pose problems.

8. Uncontrollable factors – Several uncontrollable factors, such as unavailability of credit, raw materials and power, changes is Government policies, unpredictable

market conditions etc., also pose problems in performing the co-ordination function. For example, the sales department might have prepared its sales plan with lot of enthusiasm. But the production department will be able to produce only in the necessary raw materials are made available to it at the right time. Likewise, the purchase department will be able to make purchases only if the finance department is in a position to provide finance.

4. Explain the control process or Essential Steps in Control Procedure.

According to Prof. Newman, the essential steps in a control process.

a) Establishment of standards for measuring performance. b) Checking and reporting on performance; and c) Taking of Corrective action.

A) Establishment of Standards :

Standards are set to constitute criteria against which results can be measured.

The standard which can be fixed for measuring performance are:

a) Physical standards like quantities in units, man-hours, etc. b) Revenue standards such as annual sales for a department, etc.

B) Checking and reporting on performance:

To check performance against the pre-determined standards is the

process of control. In other words actual performance is compared with the

standards fixed for getting a correct idea of the variation.

C) Taking corrective action:

The manager acted finding out the deviations from the prescribed standards

has to take steps to correct the deviation. There is need for the manager to take steps to

correct the deviation. Further, the manager has to find out the causes of deviations. The causes

of deviation may be due to inadequate communication defective system of selection.

5. Explain the Essentials of Effective Control System.

Some of the essentials control system are as follows:

1. Reflecting Organizational Needs:

The control system adopted should suit the needs of a concern. Control

system used in the finance department will be different from that used in the sales department

or the production department, similarly the control system for a capital intensive or machine

based methods of production is different from the control system.

2. Promptness in Reporting Deviations:

The control system should enable subordinates to inform their superiors in

time about their performance. This would help the managers in detecting the deviations and

also in taking prompt corrective actions.

3. Objective Control:

Controls should be objective. Objective controls clarify the expected results

in clear and definite term and they also provide the standards by which actual performance can

be measured.

4. Economic Controls:

The control system should be economical. The benefit derived by the

business concern from a control system should be more than the cost involved in its

maintenance.

5. Simple Controls:

To be effective controls must be simple and easily understandable to the

manager as well as to the subordinates. A control system should be which is complicated and

not intelligible cannot be practiced by the manager.

6. Explain the various principles of co-ordination.

In order to make co-ordination effective, it should be based on certain

fundamental principles. They are:

1. Early Start:

There should be co-ordination even in the early stages of planning and policy-

making. For example, there should mutual consultation among the concerned officials while

preparing the plan itself. By this, the task of adjustment and integration in the process of

implementation of the plan will be easier and also there would be any resistance from the

concerned officials.

2. Direct Contact:

Co-ordination is easier by direct personal contract among the people

concerned. One special advantage of direct personal contact is that the concerned persons can

avoid misunderstanding or misinterpretation. Mary parker Follett States that co-ordination can

be achieved more easily by direct interpersonal, vertical and horizontal relationships of people

in a business undertaking.

3. Continuity:

Co-ordination is the basis of an organization structure and so long as the

enterprise continues to function. Co-ordination is a must co-ordinaation must start from the

stage of planning and should go on all the time as it is a continuous process.

4. Effective Leadership:

Effective leadership also helps in proper communication, by effective

leadership co-ordination of the activities of the people at all stages in ensured. Further it

creates confidence in the subordinates and enhances their morale.

5. Effective Supervision:

Though it is the duty of the top executive to see that the subordinates

perform their work as planned, he may entrust this task to the supervisors. With the help of

supervisors, any deviation from the planned course of action can be easily located and

immediate steps may be taken to ensure that the activities of subordinates conform to the

planned activities.

7. Explain the characteristics of control.

The following are the basic characteristics of the control function.

1. It is backward looking – Controlling involves comparing the actual performance with the targets. This requires checking of events after these have taken place. Control is, thus, a backward looking activity.

2. It gives meaning to planning – Planning will lose its significance in the absence of control. It is only control that indicates the extent to which the plan has been successfully implemented. In the absence of control, it will not be possible to know whether the target has been achieved.

3. It involves appraisal of evaluation – The very nature of the control function is to make an appraisal or evaluation of the actual performance – production, sales, etc. Deviation from the target can be detected only if actual performance is assessed.

4. It is a pervasive function – Control, like planning, is a pervasive functions, i.e., performed at all levels of management – top, middle and lower levels.

5. It is forward looking too – By comparing actual performance with the expected level of performance, deviations can be detected. Once the causes for the deviations are found out, corrective measures must be employed to prevent the occurrence of the flaws in future. Thus, control provides the necessary safeguards for future uncertainties.

6. It is a continuous process – As long as there is planning there will be control. As planning is an endless activity, control should also be endless.

8. How is control important in management?

The benefits of control are as follows:

1. It ensures attainment of enterprise objective – While planning helps to work systematically, control helps to ascertain whether the fruits of labour have been realized.

2. It highlights the quality of plans – Control brings out the positive and negative aspects of the various plans of the enterprise. If there is any deficiency in planning, steps may be taken to improve the quality of plans.

3. It ensures successful implementation of plans – It is only control that ensures whether the plans of the enterprise are being properly implemented. It points out the bottlenecks in the implementation of plans and also suggests remedial measures.

4. It ensures that employees work with commitment – Control requires the employees at all levels to perform their duties as planned in order to attain the targets within the stipulated time. In the absence of control, there may be a tendency to go slow.

5. It provides scope for delegation – In every department of the enterprise, target attainment gets the focus in view of the control function. To attain the target, the departmental heads have to assign work to their subordinates and also give them the requisite authority to carry out their tasks. Thus, control gives scope for delegation of authority by a superior to his subordinates.

6. In facilitates co-ordination – The work of every employee influences and is influenced by the work of others. What is, therefore, required is a co-ordinated effort. Control requires the employees to integrate their efforts and work as a team in order to achieve the targets.

7. It promotes efficiency – By fixing the deadline for the accomplishment of targets, control ensures that the resources of the enterprise, namely, men, machines, materials, and money are put to optimum use. This leads to higher efficiency.

9. Bring out the limitations of the control function.

The following problems are normally faced in the performance of the control function:

1. Problem in setting a realistic standard – Setting standard of performance or target is the starting point of control But determining a realistic target always poses a problem for the manager. Several internal and external factors will have to be considered before fixing the target. If the target is unreasonable or unrealistic, employees may not be able to attain it.

2. Resistance from employees – There is generally resistance to any kind of control system in the work place. Employees, often, complain of the targets being unreasonable, favouritism in appraisal, lack of authority and so on.

3. Lack of good system of communication – Absence of a good system of communication can hamper control. Information regarding standards, actual performance and corrective actions taken need to be passed on at the right moment. Failure to do so can make control difficult.

4. Degree of change – Any system of control can only cope with changes of a certain magnitude. For example, to cope with power failure, a power generator can be installed in the factory. But if the power generator itself fails, the factory manger will be helpless.

5. Problem in setting qualitative standards – Standards my be either quantitative or qualitative. Quantitative standards (in numerical terms) may be set easily for production, sales, etc. It is not possible to lay down quantitative standards for job satisfaction, level of motivation of employees and such other similar qualitative variables.

6. Delay in taking corrective action – Any delay in taking corrective action will, instead of solving the problem, aggravate it. The delay may be caused due to procedural or other reasons.

7. Expensive – Sometimes, the system of control may be expensive to install and operate.

10. What are the characteristics of a good system of control? The following are the essentials of a good control system.

1. simplicity – The control system should be simple to understand and operate.

2. Suitability – It must suit the nature, type, size and requirements of the enterprise.

3. Objectivity – A good system of control should make use of objective or quantitative standards instead of subjective or qualitative standards. Only then measurement of performance will be easy.

4. Flexibility – It should be capable of being altered or changed in accordance with the changing needs.

5. Economical – It should be economical in terms of time, money and efforts required. The benefits of the control system must be more than the costs.

6. Usefulness – The control system should have utility value. It should help to solve a problem and not aggravate it – “ The remedy should not be worse than the disease “.

7. Forward looking – It should point out deviations from the target even before such deviations take place. It should conform to the proverb “prevention is better than cure”.

8. Promptness – It should report deviations quickly. Corrective action should also be taken without any delay.

9. Supported by employees – Resistance from employees can easily be overcome if the control system has their support. To get their support, it is necessary to involve them in the task of installing a control system. Targets, for example, may be fixed in consultation with the employees.