I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERS

1.What is management? Explain the nature, scope, importance and objectives of management? Explain the roles of a manager?

Definition of Management: “Management is the art of getting things done through and with people in formally organized groups.” –Herald Koonz“Management is a process of working with and through others to effectively achieve organizational objectives by efficiently using limited resources in changing environment.” - KrietnerNature of Management:

Universal Phenomenon Organized activity Group activity Systematic process Social process Goal oriented Inter disciplinary approach Dynamic It is about system authority Good leadership Economic activity Management is a profession.

Scope of Management: Management is both art and science It is interdisciplinary approach Which is a subject matter of management It is universal phenomenon It includes various functions (Planning, organizing, staffing, coordinating and controlling etc.) It has got various functional areas (Production, marketing, Human resources and R&D etc.)

Objectives of Management: Is to obtain maximum output with minimum input To maximize employers and employees prosperity To improve efficiency For social justice and human betterment.

Roles of a Management: Achievement of group goals. Optimum utilization of resources Minimization of costs Establishing equilibrium Striving for survival and growth Generation of employment Development of nation Interpersonal role Decision role and Information role

Managerial Roles:I. Interpersonal roles (Figure Head, Leader and Liaison officer)

II. Information roles (Monitor, disseminator of information)III. Decision Roles (disturbance handler, resource allocator and negotiator)

2.Explain about functions of management?Management has been described as a social process involving responsibility for economical and effective planning & regulation of operation of an enterprise in the fulfillment of given purposes. It is a dynamic process consisting of various elements and activities. These activities are different from operative functions like marketing, finance, purchase etc. Rather these activities are common to each and every manger irrespective of his level or status.

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I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERSDifferent experts have classified functions of management. According to George & Jerry, “There are four fundamental functions of management i.e. planning, organizing, actuating and controlling”.According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to control”. Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most widely accepted are functions of management given by KOONTZ and O’DONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling.Theoretically it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the other & each affects the performance of others.

I. Planning It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.I. Organizing

It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves:

a. Identification of activities.b. Classification of grouping of activities.c. Assignment of duties.d. Delegation of authority and creation of responsibility.e. Coordinating authority and responsibility relationships.

II. Staffing It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure”. Staffing involves:

a. Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place).

b. Recruitment, Selection & Placement.c. Training & Development.d. Remuneration.e. Performance Appraisal.f. Promotions & Transfer.

III. Directing It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements:

a. Supervisionb. Motivation

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I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERSc. Leadershipd. Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers.Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction.Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.IV. Controlling

It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”. Therefore controlling has following steps: Establishment of standard performance. Measurement of actual performance. Comparison of actual performance with the standards and finding out deviation if any. Corrective action.

3. State different levels of management? What sorts of skills are required in each level?Meaning: Many managers work in an organisation. However, these managers do not work at the same level. They work and operate at different positions. Hierarchy of these managerial positions is called Levels of Management.

Top Level Management: The Top Level Management consists of the Board of Directors (BOD) and the Chief Executive Officer (CEO). The Chief Executive Officer is also called General Manager (GM) or Managing Director (MD) or President. The Board of Directors are the representatives of the Shareholders, i.e. they are selected by the Shareholders of the company. Similarly, the Chief Executive Officer is selected by the Board of Directors of an organisation. The main role of the top level management is summarized as follows:

The top level management determines the objectives, policies and plans of the organisation. They mobilises (assemble and bring together) available resources. The top level management does mostly the work of thinking, planning and deciding. Therefore, they are

also called as the Administrators and the Brain of the organisation. They spend more time in planning and organising. They prepare long-term plans of the organisation which are generally made for 5 to 20 years. The top level management has maximum authority and responsibility. They are the top or final

authority in the organisation. They are directly responsible to the Shareholders, Government and the General Public. The success or failure of the organisation largely depends on their efficiency and decision making.

They require more conceptual skills and less technical Skills.

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I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERSMiddle level of Management: The Middle Level Management consists of the Departmental Heads (HOD), Branch Managers, and the Junior Executives. The Departmental heads are Finance Managers, Purchase Managers, etc. The Branch Managers are the head of a branch or local unit. The Junior Executives are Assistant Finance Managers, Assistant Purchase Managers, etc. The Middle level Management is selected by the Top Level Management. The middle level management emphasize more on following tasks:

Middle level management gives recommendations (advice) to the top level management. It executes (implements) the policies and plans which are made by the top level management. It co-ordinate the activities of all the departments. They also have to communicate with the top level Management and the lower level management. They spend more time in co-ordinating and communicating. They prepare short-term plans of their departments which are generally made for 1 to 5 years. The middle Level Management has limited authority and responsibility. They are intermediary between

top and lower management. They are directly responsible to the chief executive officer and board of directors.

Require more managerial and technical skills and less conceptual skills.Lower level of Management: The lower level management consists of the Foremen and the Supervisors. They are selected by the middle level management. It is also called Operative / Supervisory level or First Line of Management. The lower level management performs following activities:

Lower level management directs the workers / employees. They develop morale in the workers. It maintains a link between workers and the middle level management. The lower level management informs the workers about the decisions which are taken by the

management. They also inform the management about the performance, difficulties, feelings, demands, etc., of the workers.

They spend more time in directing and controlling. The lower level managers make daily, weekly and monthly plans. They have limited authority but important responsibility of getting the work done from the workers.

They regularly report and are directly responsible to the middle level management. Along with the experience and basic management skills, they also require more technical and

communication skills.Managerial Skills: Technical Skills: As the name of these skills tells us, they give the manager’s knowledge and ability to use different techniques to achieve what they want to achieve. Technical skills are not related only for machines, production tools or other equipment, but also they are skills that will be required to increase sales, design different types of products and services, market the products and services.Human skills: Human or interpersonal managerial skills present a manager’s knowledge and ability to work with people. One of the most important management tasks is to work with people. Without people, there will not be a need for existence of management and managers.These skills will enable managers to become leaders and motivate employees for better accomplishments. Also, they will help them to make more effective use of human potential in the company. Simply, they are the most important skills for managers.Conceptual Skills: Conceptual skills present knowledge or ability of a manager for more abstract thinking. That means he can easily see the whole through analysis and diagnosis of different states. In such a way they can predict the future of the business or department as a whole.

4. Briefly describe 14 principles of management introduced by Henry Fayol?Management Principles developed by Henri Fayol: 1. Division Of Work: Work should be divided among individuals and groups to ensure that effort and

attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization.

2. Authority: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being

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I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERSaccountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.

3. Discipline: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.

4. Unity Of Command: Workers should receive orders from only one manager. 5. Unity Of Direction: The entire organization should be moving towards a common objective in a common

direction. 6. Subordination Of Individual Interests To The General Interests: The interests of one person should not

take priority over the interests of the organization as a whole. 7. Remuneration: Many variables, such as cost of living, supply of qualified personnel, general business

conditions, and success of the business, should be considered in determining a worker’s rate of pay. 8. Centralization: Fayol defined centralization as lowering the importance of the subordinate role.

Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.

9. Scalar Chain: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.

10. Order: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible.

11. Equity: All employees should be treated as equally as possible. 12. Stability Of Tenure Of Personnel: Retaining productive employees should always be a high priority of

management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers.

13. Initiative: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction.

14. Espirit De Corps: Management should encourage harmony and general good feelings among employees.

5. Define planning? Explain its characteristics, objectives process and importance?Definition: “planning involves the development of forecasts, objectives, policies, programmes, procedures, schedules and budgets.” –Louis A Allen“Planning is deciding in advance what to do, how to do, when to do it and who is to do it. Planning bridges the gap from where we are, to where we want to go. It makes possible to things to occur which would not otherwise happen.” -Koontz & DennellCharacteristics of planning:

It is an intellectual process. Planning is a primary function 0 goal oriented Planning is pervasive Planning lies path to decision making Planning is integrated Planning is selective Planning is flexible Planning is inseparable from control Planning is future oriented Planning is action oriented Planning is a continuous process Planning is interdependent function Planning is participative

Importance of Planning: Planning offsets future uncertainty and change It facilitates unity of direction and coordination It facilitates control

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I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERS It focuses attention on organizational goals It improves adaptability It improves competitive strength It improves motivation Planning encourages innovation and creativity Planning ensures efficient use of resources. Planning helps in avoiding business failures It brings economy in operation It facilitates management by exception It facilitates delegation.

Steps in Planning (Process): (flow chart)1) Identifying opportunities (SWOT Analysis)2) Collecting and analyzing information3) Determination of objectives4) Determining planning premises5) Determining alternative course of action6) Selection of best alternative7) Determining secondary plans8) Implementation of plans9) Feedback and future evaluation

Objectives of Planning: To fix the desired end results of the organization To provide clear cut policies for the guidance of all personnel in the organization To integrate the activities of the different sections To participate problems before they become critical. To establish and exercise administrative control To reduce the severity of the uncertainty and complexity of the future of the organization. To guard against impulsive and snap decisions by the management in respect of issues of vital

importance. To facilitate proper decision To determine the types and volumes of physical and other resources to be acquired and allocated

among the various activities. To help in achievement of the organizational objectives. To provide effective organizational structure.

6. What are the essentials of a good plan? Explain the techniques of planning and problems of planning?Essentials of a good plan:

It should be based on clearly defined objectives It must be simple It should be comprehensive It must be flexible It should be economical There should be proper coordination among short term and long term plans. It should be free from social and psychological biases of the planners as well as subordinates It should be rationale & appropriate.

Types of Plans: (flow chart) Standing or repeated use (defining objectives, policies, procedures, methods, rules and strategies) Single use plan (programmes, project and budget)

Objectives: “objectives are goals or aims which the management and administration wish organization to achieve.” –Robert C AppleyPolicies: Policies provide the framework within which decision-making is expected to operate while making decisions relating to the organization.Procedures: procedures are clear cut administrative specifications prescribing the time sequence for work to be done.

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I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERSMethods & Rules: methods provide details about a particular operation or activity.Strategies: strategy is the determination of the basic long term goals and objectives of an enterprise and the adaption of courses of action and the allocation of resources to carry out these goals.Advantages of Planning:

Focus on objectives Minimizing uncertainties Better utilization of resources Economy in operations Better coordination Encourages innovation and creativity Facilitates control

Problems of Planning: lack of accuracy leads to failure of plans high costs may involve in planning it has got advance effect on decisions planning leads to delay in action it may become psychological barrier limited flexibility human elements may restrict the planning process limited practical value improper planning leads to failure planning is a time consuming process resistance to change

7. Define organizing? Explain its process and features?Definition: organizing is a process of division of activities which are necessary to any purpose and arranging them in group which are assigned to individuals.Features of Organizing: it outlines the objectives it identifies and enumerates the activities it helps in assigning the duties it helps in defining and granting the authority it helps in creating authority relationshipsProcess of Planning: (Vertical Flow chart)1) fixing common objectives of the organization2) identifying required activities according to predefined objectives3) departmentization of similar activities4) defining responsibilities of individuals5) delegation of authority6) Deciding on relationship between superiors, subordinates and peers.7) Allocation of resources8) Coordination of efforts to achieve common objectives

8. What is organization? What are the types of organization? Explain about various types of organization structure?

Definition: “organization is the process of identifying and grouping the work to be performed, defining and developing responsibility and authority and establishing relationships for the purpose of enacting people to work most effectively together in accomplishing objectives.” -Louis A AllenAn organizational structure defines how jobs and tasks are formally divided, grouped and coordinated. The type of organizational structure would depend upon the type of organization itself and its philosophy of operations. Basically the structure can be mechanistic or organic in nature or a combination of thereof. Line Oragnisation: Line organization is the simplest form of organization and is most common among small companies. The authority is embedded in the hierarchical structure and it flows in a direct line from the top of the managerial hierarchy down to different levels of managers and subordinates and further down to the

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I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERSoperative levels of workers. It clearly identifies authority, responsibility and accountability at each level. These relationships in the hierarchy connect the position and tasks of each level with those above and below it. There is clear unity of command so that the person at each level is reasonably independent of any other person at the same level and is responsible only to the person above him. The line personnel are directly involved in achieving the objectives of the company.Staff Organisation: In this type of organization, the functional specialists are added to the line, thus giving the line the advantages of specialists. This type of organization is most common in our business economy and especially among large enterprises. Staff is basically advisory in nature and usually does not possess and command authority over line mangers. The staff consists of two types:General Staff: This group has a general background that is usually similar to executives and serves as assistants to top management. They are not specialists and generally have no authority or responsibility of their own. They may be known as special assistants, assistant managers or in a college setting as deputy chairpersons.Specialized Staff: Unlike the general staff who generally assist only one line executive, the specialized staff provides expert staff advice and service to all employees on a company wide basis. This group has a specialized background in some functional area and it could serve in any of the following capacities:(a) Advisory Capacity: The primary purpose of this group is to render specialized advice and assistance to management when needed. Some typical areas covered by advisory staff are legal, public relations and economic development.(b) Service Capacity: This group provides a service that is useful to the organization as a whole and not just to any specific division or function. An example would be the personnel department serving the enterprise by procuring the needed personnel for all departments. Other areas of service include research and development, purchasing, statistical analysis, insurance problems and so on.(c) Control Capacity: This group includes quality control staff who may have the authority to control the quality and enforce standards.Functional Organization: The functional organization features separate hierarchies for each function creating a larger scale version of functional departments. Functional departmentalization is the basis for grouping together jobs that relate to a single organizational function or specialized skill such as marketing, finance, production, and so on. The chain of command in each function leads to a functional head who in turn reports to the top manager.The functional design enhances operational efficiency as well as improvement in the quality of the product because of specialists being involved in each functional area and also because resources are allocated by function rather than being duplicated or diffused throughout the organization.One of the main disadvantages of the functional design is that it encourages narrow specialization rather than general management skills so that the functional managers are not well prepared for top executive positions. Also, functional units may be so concerned with their own areas that they may be less responsive to overall organizational needs.Divisional Organization: The divisional or departmental organization involves grouping of people or activities with similar characteristics into a single department or unit. Also known as self-contained structures, these departments operate as if these were small organizations under a large organizational umbrella, meeting divisional goals as prescribed by organizational policies and plans. The decisions are generally decentralized so that the departments guide their own activities. This facilitates communication, coordination and control, thus contributing to the organizational success. Also, because the units are independent and semi-autonomous, it provides satisfaction to the managers that in turn improves efficiency and effectiveness.

This division and concentration of related activities into integrated units is categorized on the following basis:Departmentalization by Product: In this case, the units are formed according to the type of product and it is more useful in multi-line corporations where product expansion and diversification, and manufacturing and marketing characteristics of the product are of primary concern. The general policies are decided upon by the top management within the philosophical guidelines of the organization.Departmentalization by Customers: This type of departmentalization is used by those organizations that deal differently with different types of customers. Thus, the customers are the key to the way the activities are grouped. Many banks have priority services for customers who deposit a given amount of money with the

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I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERSbank for a given period of time. Similarly, business customers get better attention in the banks than other individuals.Departmentalization by Area: If an organization serves different geographical areas, the division may be based upon geographical basis. Such divisions are specially useful for large scale enterprises that are geographically spread out such as banking, insurance, chain department stores or a product that is nationally distributed.Departmentalization by Time: Hospitals and other public utility companies such as Telephone Company that work around the clock are generally departmentalized on the basis of time shifts. For example, the telephone company may have a day shift, on evening shift and a night shift, and for each shift a different department may exist, even though they are all alike in terms of objectives.Project Organization: These are temporary organizational structures formed for specific projects for a specific period of time and once the goal is achieved, these are dismantled. For example, the goal of an organization may be to develop a new automobile. For this project, the specialists from different functional departments will be drawn to work together.These structures are very useful when:1. The project is clearly defined in terms of objectives to be achieved and the target date for the completion of the project is set. An example would be the project of building a new airport.2. The project is separate and unique and not a part of the daily work routine of the organization.3. There must be different types of activities that require skills and specialization and these must be coordinated to achieve the desired goal.4. The project must be temporary in nature and not extend into other related projects.Matrix Organization: A matrix structure is, in a sense, a combination and interaction of project and functional structures and is suggested to overcome the problems associated with project and functional structures individually. The key features of a matrix structure are that the functional and project lines of authority are super-imposed with each other and are shared by both functional and project managers. The functional structure is primarily responsible for:1. Providing technical guidance for the project.2. Providing functional staff that is highly skilled and specialized.3. Completing the project within prescribed technical specifications.(please refer working notes for extensive details on departmentation)

9. Define span of control? Explain the narrow and wide span of control?Meaning: span of control refers to the number of people who report to one manager in a hierarchy.Types of span of control:

1. Narrow span of control2. Wide Span of control

Organizations with Narrow and wide span of control

Advantages of Narrow span of control: Close supervision Close control Fast communication between superior & subordinate

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I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERSDisadvantages of narrow span of control:

Superiors tend to get too involved in subordinates work Many levels of management High cost due to many levels Excessive distance between lower level and higher level.

Advantages of wide span of control: Superiors are forced to delegate tasks Clear policies must be made Subordinates must be carefully selected

Disadvantages of narrow span of control: Tendency of overloaded superiors to become decision bottlenecks. Danger of superiors loss of control Requires exceptional quality of managers

10. What is centralization and decentralization? Write a brief notes on delegation of authority? Centralization: everything that goes to increase importance of subordinates role is decentralization: everything which goes to reduce, it is centralization.Decentralization: decentralization refers to the systematic effort to delegate to the lowest levels of the organization.Advantages of Centralization:

It helps to avoid overlapping and duplication of activities. It makes communication easier It facilitates standardization or uniformity in policies, procedures, systems and rules. It facilitates easy evaluation of the performance of the various segments of the organization It contributes to uniformity in the activities of the enterprise It helps in resulting in economies of large scale It suits for taking quick decisions It directs whole organization towards the attainment of the common objectives of the organization.

Disadvantages of Centralization: Top management takes all the decisions. The subordinates do not have any authority to take

decisions. Centralization imposes over burden on top management The benefits of specialization cannot be enjoyed under centralized authority Centralization of authority leads to autocratic management It does not offer any scope for subordinates participation in decision making

Advantages of Decentralization: It relieves top management’s burden of decision making and forces upper level managers to let go. It gives managers more freedom and independence in decision making It makes comparison of performance of different organizations units possible It facilitates setting up of profit centres It facilitates product diversification It promotes developments of general managers It aids in adaptation to fast changing environment

Limitations: It makes more difficult to have a uniform policy. It increases complexity of coordination of decentralized organizational units It may be constrained by inadequate control techniques It can be limited by the availability of qualified managers. It involves considerable expenses for training managers.

Delegation of AuthorityThe process of delegation involves determining the results expected from a position, assigning tasks to the position, delegating authority for accomplishing these tasks and holding the person in that position responsible for the accomplishment of the tasks.Factors affecting delegation:

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I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERS1. Management perception towards delegation2. Receptiveness3. Willingness to let go4. Willingness to let others make mistakes5. Willingness to trust subordinates6. Willingness to establish and use broad controls.

Essentials for effective delegation: Defining assignments and delegate authority in the light of results expected Selecting the person in the light of the job to be done. Maintaining open line of communication Through establishing proper control By rewarding effective delegation and successful assumption of authority.

11. Explain line and staff? How does line and staff conflict arises? What are the remedies for resolving the conflict?

Line & Staff:“Line authority is that relationship in which superior exercises direct supervision over a subordinate.”“The nature of staff relationship is advisory. The function of people in a pure staff capacity is to investigate research and gives advice to line managers.”Line and staff conflict:Complaints against staff:

Staff oversteps its authority Staff doesn’t give sound advice Staff steals credit Staff experts fail to see the whole picture objectively

Complaints against Line: Line managers often resist new ideas They don’t provide sufficient authority They do not make a proper use of services provided by staff

Remedies for resolving the conflict:` (i) the limits of line and staff authority should be laid down clearly. It must be clearly understood that ultimately the departments are responsible for operating decisions and that staff is responsible only for providing advice and service to appropriate line departments.

(ii) A line department must give serious consideration to advice given by the staff. In case the line manager disagrees with the suggestions of the staff man, both of them should have the right to appeal to higher authorities,

(iii) The staff manager must operate within the policies and objectives of the company and recognise the fact that all new ideas are bound to be resisted in the initial stages. People tend to resist ideas that threaten change to their way of doing things. The fact that a change is even suggested seems to imply that what they were doing was not good enough. Therefore, any change proposed by the staff men must be carefully brought in.

(iv) The staff men must also recognise the difficulties in the way of implementing ideas,(v) Line and staff people should try to understand the orientation of each other. They should try to

achieve cooperation for the achievement of enterprise objectives.

12. Define staffing explain features and process of staffing?Meaning & Definition: staffing is defined as filling and deep filled positions in the organization structure. This is done by identifying workforce requirements, inventorying the people available, recruiting, selecting, placing, promoting, appraising, planning the careers of, compensating and training or otherwise developing both candidate and current job holders, so that they can accomplish their tasks effectively and efficiently.Features of staffing:

Staffing is a continuous process Staffing is a complex process Staffing is a managerial function

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I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERS Staffing involves people Staffing is a logical exercise

Factors affecting Staffing:Internal Factors External Factors

1. Promotion policy2. Future growth plans of Organization3. Technology used4. Support from Top Management5. Image of the organisation

1. Labour laws2. Pressure from social and political groups3. Competition4. Education standards5. Other external factors.

Steps of Process of Staffing: (Vertical Flow chart)1. Human Resource Planning2. Recruitment3. Selection4. Induction and orientation5. Training and development6. Performance appraisal7. Employment decision8. SeparationTypes of Recruitment: Internal recruitment and external recruitmentRecruitment Process:1. Recruitment planning2. Strategy development3. Searching4. Screening5. Evaluation & controlSelection Process:

13. What is leadership? How is it differentiated from management? Explain important styles & theories of leadership?

Definition: “Leadership is the art of motivating a group of people to act towards achieving a common goal.Differences between leader and manager:

Manager Leader1. Involves coping with complexity2. Administrator3. He maintains things4. He controls people5. It is a short term view

1. Involves coping with change2. Innovator3. He develops things4. He inspires people5. Leader will have long term view

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I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERS6. He asks who and when7. Managers initiate things8. He accepts the status quo9. Managers do things right.

6. He asks what and why7. Hw originates things8. He challenges status quo9. Leaders do right things

Styles of Leadership:Different types of leadership styles exist in work environments. Advantages and disadvantages exist within each leadership style. The culture and goals of an organization determine which leadership style fits the firm best. Some companies offer several leadership styles within the organization, dependent upon the necessary tasks to complete and departmental needs.Autocratic:The autocratic leadership style allows managers to make decisions alone without the input of others. Managers possess total authority and impose their will on employees. No one challenges the decisions of autocratic leaders. Countries such as Cuba and North Korea operate under the autocratic leadership style. This leadership style benefits employees who require close supervision. Creative employees who thrive in group functions detest this leadership style.Participative (Democratic):Often called the democratic leadership style, participative leadership values the input of team members and peers, but the responsibility of making the final decision rests with the participative leader. Participative leadership boosts employee morale because employees make contributions to the decision-making process. It causes them to feel as if their opinions matter. When a company needs to make changes within the organization, the participative leadership style helps employees accept changes easily because they play a role in the process. This style meets challenges when companies need to make a decision in a short period.Laissez-Faire (Free-rein):A laissez-faire leader lacks direct supervision of employees and fails to provide regular feedback to those under his supervision. Highly experienced and trained employees requiring little supervision fall under the laissez-faire leadership style. However, not all employees possess those characteristics. This leadership style hinders the production of employees needing supervision. The laissez-faire style produces no leadership or supervision efforts from managers, which can lead to poor production, lack of control and increasing costs.Transactional:Managers using the transactional leadership style receive certain tasks to perform and provide rewards or punishments to team members based on performance results. Managers and team members set predetermined goals together, and employees agree to follow the direction and leadership of the manager to accomplish those goals. The manager possesses power to review results and train or correct employees when team members fail to meet goals. Employees receive rewards, such as bonuses, when they accomplish goals.Transformational:The transformational leadership style depends on high levels of communication from management to meet goals. Leaders motivate employees and enhance productivity and efficiency through communication and high visibility. This style of leadership requires the involvement of management to meet goals. Leaders focus on the big picture within an organization and delegate smaller tasks to the team to accomplish goalsTheories of Leadership:1. Great man theory2. Traits theory3. Mc. Gregor’s X and Y theory4. Contingency approach of leadership5. Behavioral theory of leadership6. Situational theory of leadership7. Transactional leadership8. Transformational leadershipTraits theory:The trait model of leadership is based on the characteristics of many leaders - both successful and unsuccessful - and is used to predict leadership effectiveness. The resulting lists of traits are then compared to those of potential leaders to assess their likelihood of success or failure.

13**Students are advised to go through standard subject text books for extensive knowledge on topics.

I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERSRalph. M. Stagdill found that various researchers have identified specific traits related to leadership ability. Out of those important traits are:

Physical Traits (5 traits) (ex: energy appearance & Height) Intelligent and ability traits (4 traits) Personality traits ((16 traits) (ex: adaptability, aggressiveness, enthusiasm and self confidence etc) Task related characteristics (6 traits) (ex: Achievement, drive persistence and initiative etc.) Social characteristics (9 traits) (ex: cooperativeness, interpersonal skills & administrative ability etc.)

Strengths/Advantages of Trait Theory It is naturally pleasing theory. It is valid as lot of research has validated the foundation and basis of the theory. It serves as a yardstick against which the leadership traits of an individual can be assessed. It gives a detailed knowledge and understanding of the leader element in the leadership process.

Limitations of the Trait Theory There is bound to be some subjective judgment in determining who is regarded as a ‘good’ or

‘successful’ leader The list of possible traits tends to be very long. More than 100 different traits of successful leaders in

various leadership positions have been identified. These descriptions are simply generalities. There is also a disagreement over which traits are the most important for an effective leader The model attempts to relate physical traits such as, height and weight, to effective leadership. Most of

these factors relate to situational factors. The theory is very complex

Mc. Gregor’s X and Y theory:In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human behaviour at work, or in other words, two different views of individuals (employees): one of which is negative, called as Theory X and the other is positive, so called as Theory Y. According to McGregor, the perception of managers on the nature of individuals is based on various assumptions.Assumptions of Theory X An average employee intrinsically does not like work and tries to escape it whenever possible. Since the employee does not want to work, he must be persuaded, compelled, or warned with

punishment so as to achieve organizational goals. A close supervision is required on part of managers. The managers adopt a more dictatorial style.

Many employees rank job security on top, and they have little or no aspiration/ ambition. Employees generally dislike responsibilities. Employees resist change. An average employee needs formal direction.

Assumptions of Theory Y Employees can perceive their job as relaxing and normal. They exercise their physical and mental efforts

in an inherent manner in their jobs. Employees may not require only threat, external control and coercion to work, but they can use self-

direction and self-control if they are dedicated and sincere to achieve the organizational objectives. If the job is rewarding and satisfying, then it will result in employees’ loyalty and commitment to

organization. An average employee can learn to admit and recognize the responsibility. In fact, he can even learn to

obtain responsibility. The employees have skills and capabilities. Their logical capabilities should be fully utilized. In other

words, the creativity, resourcefulness and innovative potentiality of the employees can be utilized to solve organizational problems.

Thus, we can say that Theory X presents a pessimistic view of employees’ nature and behaviour at work, while Theory Y presents an optimistic view of the employees’ nature and behaviour at work. If correlate it with Maslow’s theory, we can say that Theory X is based on the assumption that the employees emphasize on the physiological needs and the safety needs; while Theory X is based on the assumption that the social needs, esteem needs and the self-actualization needs dominate the employees.***Can be considered as motivation theory.

14**Students are advised to go through standard subject text books for extensive knowledge on topics.

I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERS

14. What is motivation? Explain various theories of motivation?Introduction: motivation is the willingness to expand energy to achieve goals and rewards.Importance of motivation:

Motivation puts human resources in to action It improves level of efficiency of employees It leads to achievement of organizational goals It leads to stability of workforce.

Theories of Motivation:1. Cultural theories:

Maslow’s hierarchy theory Mc. Gregor’s X and Y theory Herzberg two factor theory Alderfer’s ERG theory Mc. Cleland’s three needs theory

2. Process Theories: Adam’s Equity Theory Vroom’s expectancy theory Goal setting theory Reinforcement theory

Maslow’s Hierarchy theory:Human behaviour is goal-directed. Motivation cause goal-directed behaviour. It is through motivation that needs can be handled and tackled purposely. This can be understood by understanding the hierarchy of needs by manager. The needs of individual serves as a driving force in human behaviour. Therefore, a manager must understand the “hierarchy of needs”. Maslow has proposed “The Need Hierarchy Model”.

The needs have been classified into the following in order:1. Physiological needs- These are the basic needs of an individual which includes food, clothing, shelter,

air, water, etc. These needs relate to the survival and maintenance of human life.2. Security or Safety needs- These needs are also important for human beings. Everybody wants job

security, protection against danger, safety of property, etc.3. Social needs- These needs emerge from society. Man is a social animal. These needs become important.

For example- love, affection, belongingness, friendship, conversation, etc.4. Esteem needs- These needs relate to desire for self-respect, recognition and respect from others.5. Self-actualization needs- These are the needs of the highest order and these needs are found in those

person whose previous four needs are satisfied. This will include need for social service, meditation.Herzberg two factor theory:Herzberg classified these job factors into two categories called motivational factors and hygiene factorsMotivational or satisfying factors: achievement, recognition, works itself, responsibility, advancement and growth.Hygiene or dissatisfying factors: company policy, supervision, relationship with superiors peers and subordinates, work conditions and salary.

15**Students are advised to go through standard subject text books for extensive knowledge on topics.

I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERSLimitations of Two-Factor TheoryThe two factor theory is not free from limitations:1. The two-factor theory overlooks situational variables.2. Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by

Herzberg stressed upon satisfaction and ignored productivity.3. The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters may spoil the

findings by analyzing same response in different manner.4. No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite

the fact that he may hate/object part of his job.5. The two factor theory is not free from bias as it is based on the natural reaction of employees when

they are enquired the sources of satisfaction and dissatisfaction at work. They will blame dissatisfaction on the external factors such as salary structure, company policies and peer relationship. Also, the employees will give credit to themselves for the satisfaction factor at work.

6. The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-Factor theory is acceptable broadly.

Alderfer’s ERG Theory: To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of motivation. He recategorized Maslow’s hierarchy of needs into three simpler and broader classes of needs: Existence needs- These include need for basic material necessities. In short, it includes an individual’s

physiological and physical safety needs. Relatedness needs- These include the aspiration individual’s have for maintaining significant

interpersonal relationships (be it with family, peers or superiors), getting public fame and recognition. Maslow’s social needs and external component of esteem needs fall under this class of need.

Growth needs- These include need for self-development and personal growth and advancement. Maslow’s self-actualization needs and intrinsic component of esteem needs fall under this category of need.

Relationship between Maslow’s and ERG theory:

Mc Clellands three needs theory: David McClelland and his associates proposed McClelland’s theory of Needs / Achievement Motivation Theory. This theory states that human behaviour is affected by three needs - Need for Power, Achievement and Affiliation. Need for achievement is the urge to excel, to accomplish in relation to a set of standards, to struggle to achieve success. Need for power is the desire to influence other individual’s behaviour as per your wish. In other words, it is the desire to have control over others and to be influential. Need for affiliation is a need for open and sociable interpersonal relationships. In other words, it is a desire for relationship based on co-operation and mutual understanding.The Goal setting theory: In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation. This theory states that goal setting is essentially linked to task performance. It states that specific and challenging goals along with appropriate feedback contribute to higher and better task performance.Reinforcement theory: Reinforcement theory of motivation was proposed by BF Skinner and his associates. It states that individual’s behaviour is a function of its consequences. It is based on “law of effect”, i.e, individual’s behaviour with positive consequences tends to be repeated, but individual’s behaviour with negative consequences tends not to be repeated.Reinforcement theory of motivation overlooks the internal state of individual, i.e., the inner feelings and drives of individuals are ignored by Skinner. This theory focuses totally on what happens to an individual when he takes some action. Thus, according to Skinner, the external environment of the organization must

16**Students are advised to go through standard subject text books for extensive knowledge on topics.

I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERSbe designed effectively and positively so as to motivate the employee. This theory is a strong tool for analyzing controlling mechanism for individual’s behaviour. However, it does not focus on the causes of individual’s behaviour.The managers use the following methods for controlling the behaviour of the employees:

Positive reinforcement Negative reinforcement Punishment and Extinction

15. What is communication? What are different channels of communication? Explain its process and importance, means and types?

Communication: communication is a process of exchanging information, ideas, thoughts, feelings and emotions through speech, signals, writing or behaviour.Channels of communication:

Formal communication and Informal communication

Formal communication: Vertical Communication (upward and downward) and horizontal communication.Informal communication: Grape wine communication and Lateral communication Process of Communication:

Importance of Communication: Useful to express thoughts, ideas and feelings. It creates awareness To fulfil a goal To avoid isolated It highlights issues Communication is progress development It is useful in educating the masses etc.

Means of Communication: Verbal communication and Non verbal communicationVerbal communication: it refers to the form of communication in which message transmitted verbally. Communication is done by word of mouth and a piece of writing. Types of verbal communication are oral and written communication.1. Oral communication: In oral communication spoken words are used. It includes face to face

communication, speech, telephonic conversation, video, radio, television, voice over internet etc. oral communication is influenced by pitch, volume, speed and clarity of speaking.

2. Written communication: in written communication, written signs or symbols are used to communicate. It may be printed or written. It is influenced by the vocabulary and grammar used, writing style, precision and clarity of the language used.

Non verbal communication: Nonverbal communication is the process of sending and receiving messages without using words, either spoken or written, also called manual language.Elements in Non verbal communication:

KINESICS (body language) {facial expressions, head, eye gaze, gestures, postures, shape of body, personal appearance adornment.)

HAPTICS (Touch language) PROXIMICS (Space language) ARTIFACTS (Environmental, colour, lighting and climate) CHRONEMICS (Time language) SILENCE

17**Students are advised to go through standard subject text books for extensive knowledge on topics.

I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERS SIGN (Symbols) PARALANGUAGE.

Types of Communication:

Intra personal communication Inter personal communication Extra personal communication Group communication Mass communication

16. What are the barriers of effective communication? Explain in detail.There are many reasons why interpersonal communications may fail. In many communications, the message (what is said) may not be received exactly the way the sender intended. It is, therefore, important that the communicator seeks feedback to check that their message is clearly understood. There are many barriers to communication and these may occur at any stage in the communication process. Types of Barriers:

Organizational Barriers. (Policy, rules and regulations, facilities, complex organization, status and position.)

Psychological Barriers. (Poor pronunciation, confused thinking, communication overload, attitude, fear and anxiety, suspicious, jealousy, anger, resentment, prejudice, lack of interest and lack of listening.)

Physical Barriers. (Physical health, poor hearing and distance) Mechanical barriers. (non availability of proper machines, present of defective machines,

interruption and power influence) Perceptional Barriers. (lack of common experience, linguistic, low IQ from receiver’s side and

sender’s side)Rules for effective communication:

Gathering thoughts Choosing right words Voice modulation Proper body language Effective listening Proper concentration Eye contact Sage of simple and familiar language Questioning skills

17. Define controlling? What are the features and steps involved in the process of controlling?Introduction: management control refers to setting of predetermined standards, comparing actual performance with these standards and if required, taking corrective actions to ensure the achievement of organisational goals.“Managerial control implies the measurement of accomplishment against the standard and the correction of deviations to ensure attainment of objectives according to plans.” -Koontz & DonnellFeatures of Controlling:

It determines standards, norms and goals. It is a fundamental management function It is all pervasive It is a continuous activity It is related to results.

Steps in the process of controlling: (vertical flow chart)1. Setting performance standards (ROI, Cost, income, productivity or quality etc.)2. Measurement of actual performance against standards (efforts, effectiveness, efficiency, process or

mechanical devices)3. Identification of deviations4. Analysis of deviations

18**Students are advised to go through standard subject text books for extensive knowledge on topics.

I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERS5. Initiating corrective action

18. Explain about the importance and techniques of effective control? What are the essentials of an effective control system and limitations of controlling?

Importance of controlling: Useful in accomplishing organizational goals Useful in judging accuracy of standards. For making efficient use of resources For improving employee motivation Useful to ensure order and discipline. For facilitating coordination in action.

Techniques of controlling: 1. Traditional techniques and 2. Modern techniques.Traditional techniques:

Personal observation Statistical reports Break even analysis Budgetary control

Modern Techniques: Return on Investment Management audit Management information system Zero Based Budgeting (ZBB) Programme Evaluation Review Technique (PERT) Critical Path Method (CPM) Ratio Analysis Responsibility Accounting.

Essentials of an effective control system: Controlling system should be suitable It must be timely and forward looking It should be objective and comprehensive System should be flexible It should be economical Controlling system should be acceptable to organization members It should be prescriptive and operational It should reveal exceptions to strategic points It should motivate people to high performance It should not lead to less attention to other aspects It should be periodically reviewed and evaluated.

Limitations of Controlling: Controlling is an expensive process It involves lot of time and efforts It would be ineffective if it cannot be quantified It is insignificant if it is not possible to fix accountability of the subordinates. Subordinates may not accept the control Control system cannot influence external factors.

19. Define budget? What are the various types of budgets? Explain the features of budgetary control?A budget is an estimation of revenue and expenses over a specified future period of time.A budget is the sum of money allocated for a particular purpose and the summary of intended expenditures along with proposals for how to meet them.Features of Budgetary control:Objectives: Determining the objectives to be achieved, over the budget period, and the policy(ies) that might be adopted for the achievement of these ends. Activities: Determining the variety of activities that should be undertaken for achievement of the objectives.

19**Students are advised to go through standard subject text books for extensive knowledge on topics.

I BBA I SEMESTER MANAGEMENT PROCESS IMPORTANT QUESTION AND ANSWERS Plans: Drawing up a plan or a scheme of operation in respect of each class of activity, in physical as well as monetary terms for the full budget period and its parts. Performance Evaluation: Laying out a system of comparison of actual performance by each person section or department with the relevant budget and determination of causes for the discrepancies, if any. Control Action: Ensuring that when the plans are not achieved, corrective actions are taken; and when corrective actions are not possible, ensuring that the plans are revised and objective achieved

BASED ON TIME PERIOD:Long Term BudgetBudgets which are prepared for periods longer than a year are called Long Term Budgets. Such Budgets are helpful in business forecasting and forward planning. Eg: Capital Expenditure Budget and R&D Budget.Short Term BudgetBudgets which are prepared for periods less than a year are known as Short Term Budgets. Such Budgets are prepared in cases where a specific action has to be immediately taken to bring any variation under control.Eg: Cash Budget.BASED ON CONDITION:Basic BudgetA Budget, which remains unaltered over a long period of time, is called Basic Budget.Current BudgetA Budget, which is established for use over a short period of time and is related to the current conditions, is called Current Budget.BASED ON CAPACITY:Fixed BudgetIt is a Budget designed to remain unchanged irrespective of the level of activity actually attained. It operates on one level of activity and less than one set of conditions. It assumes that there will be no change in the prevailing conditions, which is unrealistic.Flexible BudgetIt is a Budget, which by recognizing the difference between fixed, semi variable and variable costs is designed to change in relation to level of activity attained. It consists of various budgets for different levels of activityBASED ON COVERAGE:Functional BudgetBudgets, which relate to the individual functions in an organization, are known as Functional Budgets, e.g. purchase Budget, Sales Budget, Production Budget, plant Utilization Budget and Cash Budget.Master BudgetIt is a consolidated summary of the various functional budgets. It serves as the basis upon which budgeted Profit & Loss Account and forecasted Balance Sheet are built up.

20**Students are advised to go through standard subject text books for extensive knowledge on topics.