Thursday, December 25, 2014

AHSEC - 12: Nature and Significance of Management Important Notes for Feb' 2017 Exam

Unit – 1: Nature and Significance of Management
Objective Types Questions:
1. What is POSDCORB? Who coined the term?
Ans: P – Planning. O – Organising, S – Staffing, D – Directing, C – Coordinating, O – Organising, R – Reporting and B – Budgeting. This term is coined by L. Gullick and L. Urwick.
2. Why is it said that management is all pervasive?                         2016
Ans.: Because it is needed in all spheres say-business and non business organization.
3. In an organization employees are happy and satisfied (there is no chaos and affect of management is noticeable .which characteristic of management is highlighted by this statement?
Ans.: Management is an intangible force.
4. Name the process of working with and through others to effectively achieve organization objectives by efficiently using its limited resources in the changing environment?
Ans.: Management.
5. In order to be successful an organization must change its goals according Management to the needs of the environment. Which characteristic of Management is highlight in the statement?
Ans.: Management is dynamic.
6. Give any two characteristics of Management?
Ans.: (I) Management is goal – oriented process. (II) Management is all pervasive.
7. To meet the objectives of the firm the Management of BPL ltd. It offers employment to physically challenged person. Identify the organization and objective it is trying to achieve?
Ans.: It is social objective.
8. Why is coordination known as essence of Management?                        2012

Ans.: Because it is not a separate function of Management rather it forms a major part of all the other functions of Management. It is the base of all other function of management.
9. Name two features of professions which are not available in Management?                 2016
Ans.: (I) Restricted entry (II) Ethical code of conduct which is devised by ALL INDIA MANAGEMENT ASSOCIATION (AIMA).
10. “The Management principles can be applied to all types of activities” Which characteristic of Management is highlighted by this statement?
Ans.: Management is all pervasive.
11. What are various levels of management?
Ans: Top Level, Middle Level and Supervisory or lower level of management.
12. Implementation of plan is the function of which level of management?                       2011
Ans: Middle Level Management
13. At which level business policy is framed?                     2015
Ans: Top Level
14. Management is intangible and dynamic. True or false.                           True       2011
15. Why management is called a Dynamic Function?
Ans: Management is dynamic: Under dynamic environment management faces several challenges hence efforts are made to develop and use new techniques for managing the organizations effectively and efficiently.  As social change takes place, management also changes to overcome the problems whenever they arise.
Short Type Questions (2/3/5 Marks)
Q.1. What is Management?  2007, 2010, 2014, 2015
Ans: Management is the coordination of all resources through the process of planning, organizing, directing, staffing and controlling in order to attain stated objectives effectively and efficiently.  Effectively means doing the right task, completing activities and achieving goals and efficiently means to attain objectives with least amount of resources at a minimum cost.
According to Modern concept “Management is a process of getting things done with the aim of achieving goals effectively and efficiently.”
According to Harold Koontz, “Management is an art of getting things done through others and with formally organised groups." (This definition asked in 2015 exam)
Q.2. Mention features of Management.  2009, 2013
Ans: Features of Management:
a)      Management is goal oriented: Every management activity is directed towards achieving predetermined objectives of the organisation.
b)      Management deals with several functions: Management includes several functions such as planning, organizing, staffing, directing, co-ordinating, controlling, motivating or actuating, controlling, decision making, leadership and communication.
c)       Management is intangible: It cannot be seen but it can be felt through the performance of the workers. Mismanagement if any is quickly noticed and is a sign of poor management.
Q.3. What are the objectives of management?  2008, 2010, 2012
Ans:  The two main objective of the business are economic objectives, social objectives and personal objectives which are given below:
Economic Objectives:
a) Obtaining maximum output with minimum input:  A successful management must achieve the objectives of the business by making optimum utilization of available resources effectively.
b) Improving efficiency: The management should try to develop and improve the efficiency of the factors of production. Increased productivity of the resources will result in excellent performance.
Social Objectives:
a)      Maximum employer’s and employees’ prosperity: Every management should make sincere efforts to earn maximum profit for the enterprise. It is equally important that the management should pay fair, reasonable and competitive remuneration to employees.
b)      Social justice and human betterment: An effective management brings prosperity for employers and employees. Excellent remuneration improves the standard of living of workers. The growth of business generates employment opportunities.
Personal or individual objectives: These objectives are related to the employees of the organisation. The main individual objectives of management are competitive salary, personal growth and development, good and healthy working competition and social recognition.
Q.4. Explain the importance of management.
Ans: IMPORTANCE/SIGNIFICANCE OF MANAGEMENT: According to Drucker, management is the dynamic life giving element in every organization. In its absence, an organization is merely a collection of men, machines, money and material. The importance of management is:-
a)      Optimum Use of Resources: Management ensures optimum utilization of resources by attempting to avoid wastage of all kinds. It helps in putting the resources to the best advantage.
b)      Effective leadership and Motivation: In the absence of management, the working of an enterprise will become random and haphazard in nature. Management creates teamwork and motivates employees to work harder and better by providing guidance, counseling and effective leadership.
c)       Achievement of Goals: Objectives can be achieved only when the human and non human resources are combined in a proper way. Managers plan carefully, organize the resources properly, hire competent people, and provide necessary guidance. Thus management is goal oriented.
d)      Reduces Costs - It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination.
e)      Essentials for Prosperity of Society - Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living.
Q.5. “Management is a science and also an art”. Comment.   2009, 2010, 2011, 2012, 2014
Ans: Management As a Science: Science is defined as a systematized body of knowledge and it uses scientific methods of observation measurement, experimentation etc.  Its principles are exact and university applicable. Similarly, Management has systematized body of knowledge and its principles are evolved on the basis of observation. But management being a social science, it is not an exact science.  So management is a soft or inexact science.
Management As an Art: Art refers to the way of doing specific things i.e. it indicates “how an objective is to be achieved.  it is the know-how to achieve the desired results.  Art needs continuous practice to reach the level of perfection.  An art is application of science. Thus art and science are interrelated in the sense that putting scientific principles into practice requires art, which needs special knowledge and skills.
Management is both a science as well as an art.  The science of management provides certain principles that can guide managers in the professional efforts, while the art of management deals with tackling every situation in an effective manner.  Planning and organizing emphasize the science of management while direction, communication motivation coordination and control emphasize art of management.  Getting work done through people is an art of management.
Q.6. Briefly explain “MANAGEMENT AS A PROCESS”.
Ans: - Management is regarded as a process because it consists of Setting up objectives for an enterprise and taking a series of steps such as planning, coordinating, directing, organizing and staffing to ensure that these objectives are achieved. This process starts at the top and continues in more or less degree at every level of the organization.
Q.7. “MANAGEMENT AS A GROUP has the responsibility of an enterprise”. Explain.
Ans: - Management as a GROUP refers to the Board of Directors or Executive Directors who are responsible for effectively managing the affairs of the business by guiding and controlling the work of other managers such as production, sales, finance, personnel, quality control managers, etc. This approach focuses on a team rather than individuals. This is because it is believed that management as a team can contribute more effectively and efficiently than an individual.
Q. 8. “Management is a learned DISCIPLINE”. Comment.  2007
Ans: Discipline is a subject that can be studied, organized and taught. It should meet the basic requirements such as It should be acceptable and It should be capable of discovering knowledge, which can be verified, passed on to others and can be successfully applied.
A large number of schools, colleges & universities have introduced management courses. It has got experts, thinkers and philosophers of the subject. These experts are devoted to impart their skill of the subject to learners of the discipline. They follow a code of conduct prescribed for them. As such we can conclude that management is a discipline.
Q.9. Explain in brief “MANAGEMENT AS AN ACTIVITY”.
Ans: Management is a human activity that plans, controls, directs and organizes the efforts of all employees in the best interest of the organization and society. For this the human and physical resources should be integrated in such a way that there is minimum waste of material, time and energy.  It takes decisions on the following activities:
a)      The goals of the organization
b)      The activities to achieve the goals of the organization.
c)       The people who will perform those activities of the organization.
d)      The allocation of resources for the various activities of the organization.
e)      It leads by doing oneself what it wants others to do; and
f)       It directs the subordinates by showing & encouraging them to do things the right way.
Q.10. What are the feature of managerial functions?
Ans:  Management functions have got the following special features:
a)      Management functions are inter-related and inseparable.
b)      All the management functions are necessary they cannot be ignored.
c)       There is no rigid sequence of performance of these functions.
d)      All managerial functions are performed simultaneously, which make management a complex process.
Q.11. List out functions/ Elements of Management.   2008
Ans:  Functions/Elements of Management: According to Henry Fayol, in every organization manager perform certain functions to achieve results. These functions are broadly classified under five categories:-
a)      Planning: - Planning is a process of making decision about future. It provides direction to enterprise activities. Its work is to decide in advance what is to be done, when and where it is to be done, how it is to be done and by whom. The main functions of planning are Set up goals, Forecasting, Search for alternatives source of action and Budgeting.
b)      Organizing: - It is concerned with the arrangement of an organization’s resources – people, material, technology and finances in order to achieve enterprise objective. The main functions of organizing are Job design, Job specification and Authority and responsibility.
c)       Staffing: - Staffing is the function of employing suitable personas for the enterprise. It may be defined as an activity where people are recruited, selected, trained, developed, motivated and compensated for manning various positions.
d)      Directing: - According to Dale, direction is telling people what to do and seeing that they do it to the best of their ability. Directing is a function of guiding and supervising the activities of sub ordinates. The four main elements of directing are:-
1. Leadership: - It is a process of influencing the action of a person or a group to attain desired objectives. The success of an organization depends upon the quality of leadership shown by its managers.
2. Motivation: - It is the process of stimulating people to take desired courses of action. It is to inspire, encourage and impel people to take required action.
3. Communication: - It is a way of reaching other with ideas, facts, and thoughts. Effective communication is important in organization because managers Can achieve very little without it.
e)      Controlling: - It is the management function concerned with monitoring employee’s activities, keeping the organization on track towards its goals, and making corrections as required. It include four things:
Ø  setting standard of performance;
Ø  measuring actual performance;
Ø  comparing actual performance against the standard ;
Ø  taking corrective actions to ensure goal accomplishment.
Q.12. “Is management becoming a profession”? Discuss in light of emerging trend.  2008, 2016
Ans: Management is a Profession: Profession is an occupation for which specialized skills and training are required and these skills are used not for private profit but for the larger interests of the society.  There is a professional body to control the behaviour of its members.  At present management is not a full fledged profession but it is heading towards becoming a profession.
Management is by and large becoming a profession. This can be seen by referring to the following emerging trends in business:
Ø  All big companies appoint professional managers at all levels.
Ø  Many Indian companies take initiative to replace family members by professional managers.
Ø  Proprietary managers are becoming more interested in acquiring latest knowledge and technique of management.
In conclusion, it may be said that managers at the top level do not satisfy all the requirements of profession but management is becoming a profession.
Q.13. Who are considered to be the operative management in an organization? State functions of lower level management?   2009, 2013
Ans: Low level management is considered as operative management. The first line/operative or low level management includes supervisors, foreman and Inspectors. They are a link between middle level management and workers. They have the following functions:
a)      They represent the workers’ grievances before the middle level management.
b)      They procure tools, materials required for the job.
c)       They assign duties to workers and guide them in handling their jobs efficiently.
d)      They prevent wastage of materials by negligent workers which helps in reducing cost.
e)      They try to maintain precise standard of quality and ensure steady flow of output.
Q.14. Who are considered to be the MIDDLE LEVEL management in an organization? State functions of Middle level management?                                  2015
Ans: Middle management consists of departmental heads and other executive officers of different departments. They execute the policies framed by the top management. They are a link between the top management and supervisory or lower level of management. Functions of middle level management
a)      They explain the main plans and policies framed by the top management to the lower level.
b)      They prepare the organizational set up of their department.
c)       They find out suitable personnel and assign duties to them for execution of their department functions.
d)      They offer various incentives to employees so that they get motivated and perform to their best ability.
e)      They control and instruct the lower level management and also prepare their performance appraisal reports.
Q.15. Who are regarded as Top Mgt. in a business organization? State any two functions of Top mgt.? 2007
Ans: Top management is the 3rd line of management, which consists of Chairman, Directors, Managing Director, General Manager and other top-level executives required to achieve the goals of the enterprise. For example: Mr. Hazarika has retired as the managing director of a manufacturing company. He is said to be working at top level of management.
The functions of top management are:
a)      They determine both long term as well as short term objective of the enterprise.
b)      They formulate plans and policies to achieve the desired objectives.
c)       They assign jobs to different individuals working at middle level.
d)      They assemble the resources such as finance, workers, fixed assets etc. needed to put the plans into operation.
e)      They keep a check on the employees and their performance to ensure that plans are implemented in the right direction.
Q.16. Write down the difference between levels of management on the basis of their functions.
Basis
Top Level Management
Middle Level Management
Supervisory Level Management
Time Range 
It covers span of period
It covers intermediate range
It is concerned with short period
Skills 
It requires creative skills
It needs persuasive skills
It is concerned with operative skills
Evaluation 
It is difficult to evaluate its achievement
It is less difficult to evaluate its performance
It is easy to evaluate its performance
Persons 
It involves few persons
It concerns moderate number of persons
It is concerned with large number of persons
Policy formulation
It is concerned with policy formulation to a greater extent.
It is moderately concerned with policy formulation.
It is least concerned with policy formulation.

Q.17. What is co-ordination? What are its features? Mention its importance.  2007, 2010
Ans: Coordination is an orderly arrangement of group efforts to provide unity of action in pursuit of common purpose. The key features of coordination are as follows:
a)      Coordination is not a distinct function but the very essence of management.
b)      It is the result of conscious and concerted action by management.
c)       Coordination is a continuous, never ending or on-going process. It is also a dynamic process.
d)      Coordination is required in group efforts not in individual effort.
e)      Coordination has a common purpose of getting organizational objectives accomplished.
Importance of co- ordination (Essence of Management): 
Co-ordination is an integral element or ingredient of all the managerial functions as discussed below: -
a)      Coordination through Planning: Planning facilitates co-ordination by integrating the various plans through mutual discussion, exchange of ideas. e.g. - co-ordination between finance budget and purchases budget.
b)      Co-ordination through Organizing - Mooney considers co-ordination as the very essence of organizing. In fact when a manager groups and assigns various activities to subordinates, and when he creates department’s co-ordination uppermost in his mind.
c)       Co-ordination through Staffing - A manager should bear in mind that the right no. of personnel in various positions with right type of education and skills are taken which will ensure right men on the right job.
d)      Co-ordination through Directing - The purpose of giving orders, instructions & guidance to the subordinates is served only when there is a harmony between superiors & subordinates.
e)      Co-ordination through Controlling - Manager ensures that there should be co-ordination between actual performance & standard performance to achieve organizational goals.
Now we can conclude that all the functions of management are affected by coordination. Hence coordination is essential for achieving the objectives of the organisation. It is also required for the survival, growth and profitability of the organisation. Coordination encourages team spirit, gives right direction, motivates employees, and makes proper utilisation of resources. Therefore, Coordination is rightly called the "Essence of Management".
Q.18. What is the result of an effective co- ordination?
Ans:  An effective co – ordination results in:
a)      Efficient and economical use of resources.
b)      Creates congenial atmosphere of work.
c)       Saves from the losses caused by unnecessary efforts.
Q.19. Distinguish between co-ordination and co-operation.
Ans: Difference between Co-ordination and Co-operation
Basis
Co-ordination
Co-operation
1. Meaning
It refers to bringing together the activities of an organisation.
It refers to voluntary efforts of individuals to work together and help each other.
2. Nature
It is a conscious and deliberate effort of manager.
It is a voluntary effort of employees.
3. Scope
It includes co-operation and hence has a wider scope.
It has a narrow scope as it is towards establishing co-ordination.
4. Requirement
Co-ordination is essential for achievement of organisational goal.
Co-operation is voluntary in nature.
5. Relations
Co-ordination arises out of both formal and informal relations.
It arises out of informal relations.

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