1.Define Introduction to management and concepts of management?

A.
Management:

According to Koontz and Weihrich, “Management is a process of designing and maintaining an

environment in which individuals, working together in groups, accomplish efficiently selected aims”.
According to Harold Koontz, “Management is the art of getting things done through and with people in
formally organized groups”. Management can be simply defined “as the process by which managers in
an organization get things done through the efforts of other people in grouped activities”.

Concepts of management:

1. Planning: When you think of planning in a management role, think about it as the
process of choosing appropriate goals and actions to pursue and then determining what
strategies to use, what actions to take, and deciding what resources are needed to
achieve the goals.

2. Organizing: This process of establishing worker relationships allows workers to work

together to achieve their organizational goals.

3. Leading: This function involves articulating a vision, energizing employees, inspiring

and motivating people using vision, influence, persuasion, and effective communication
skills.

4. Staffing: Recruiting and selecting employees for positions within the company (within
teams and departments).

5. Controlling: Evaluate how well you are achieving your goals, improving performance,
taking actions. Put processes in place to help you establish standards, so you can
measure, compare, and make decisions.

2. Explain nature of Management?

A.

Nature of Management The nature of management can be understood from the following points,

1. Management is a Group Activity

Management is an essential part of a group activity as no individual can do all the work by
himself, so he combines his efforts with fellow beings and works in an organized group to
achieve what he cannot achieve individually. Wherever there is an organized group of people
working towards a common goal, some type of management becomes essential.
 2. Management is a Dynamic Function
Management is a dynamic function and it needs to perform continuously as it is constantly
engaged in the adoptability of the enterprise in an ever changing business environment. It
concerns not only in moulding and adapting to environment but also can bring in alteration to
environment itself so as to ensure the stability of the organization.

3. Management is Goal-Oriented
Management with its group effort aims to achieve economic and social objectives and is
concerned with establishment and achievement of certain predetermined goals. The goal could
be either increase of profit or expansion of sales.

4. Management is an Economic Resource

As we have seen that land, labour, money and technology are the basic requirements and
factors of production which are essential for production of goods and services. Management is
also a factor of production and economic resource to co-ordinate the other factors of
production for achieving goals.

5. Management is Universal in Character

Management is omnipresent. It exists wherever there is a human activity. It may be a small firm
or a multinational company and it can be said that management has a universal application and
can be applied in all organizations whether it is business, social, religion, culture, sports,
education, i.e., in every concern, management function is performed.

3.Explain levels of management?

A.

The three broad levels of management are depicted in the below given management pyramid,

1. Top level management

2. Middle level management

3. Lower level management.

1. Top Level Management

Top management of an organization consists of Board of Directors, Chairman and Chief Executive
Officer. Top management integrates the functions of the whole organization.

(a) Functions of Board of Directors The functions of board of directors are,

(i) Determining basic objectives and policies.

(ii) Selecting top executives and determining overall organization structure.

(iii) Approving budgets and appropriation of corporate earnings.

(iv) Checking and controlling top managers.

(b) Functions of Chief Executive The various functions of chief executive are,

(i) Formulating long-term plans and making strategic decisions.

(ii) Integrating the efforts made by various departmental heads.

(iii) Ensuring that actual work is proceeding according to plans.

(iv) Integrating organization with the external environment to maintain relations with various agencies
in the society.

2. Middle Level Management

Middle management stands between top management and supervisory or lower management level.
Functions of Manager The various functions of manager are,

(i) Performing various functions so that top management gets enough time for integrating overall
functions of the organizations.

(ii) Cooperating among different levels of management.

(iii) Training employees for better functioning.

(iv) Contributing towards functions of other departments for achieving organizational goals.

3. Lower Level Management

Lower management is concerned with efficiency in using resources of the organization. A supervisor
supervises the activities of workers directly in this level of management. Functions of Supervisor The
various functions of supervisor are,

(i) Planning the activities, classifying and assigning jobs to workers.

(ii) Guiding workers about work procedures.

 (iii) Solving problems of workers related to their jobs.

(iv) Providing feedback to management about the nature of work environment.

(v) Maintaining discipline among workers

4. Define principles of Organizations?

A.

1. Division of Work

Division of work means dividing the work on the principle of specialization. The functions of
management like planning, organizing, directing, coordination cannot be performed by one group of
directors. These functions are to be performed by the experts in the specific area. Specialization in
decision making, policy formulation, controlling, leading would lead to more efficient and systematic
working of the firm.

2. Authority and Responsibility

Authority and responsibility should go together. An executive can do justice to his responsibilities only
when he has proper authority. Responsibility means accountability. Authority means right and power to
act. Those who accept authority should be willing to share responsibility when a person is authorized to
do a job, he will be responsible for his performance. Everybody in the organizational structure must
understand the limits of authority and responsibility.

3. Discipline

Discipline is very important for the efficient functioning of an enterprise. Discipline maintained among
the officials and subordinates at all levels can guarantee the fulfillment of objectives of the
management. Management involves direction of efforts of people, has to be invariably matched by
marked discipline, among the people whose skills and energy are to be channels in particular directions.

4. Unity of Command

Unity of command means, employees should receive orders from only one superior. If the individuals
are assigned work under more than one superior, then performance and degree of the discipline will not
be guaranteed, personnel will be confused, whom they should report. Effective exercise of authority,
responsibility, discipline among the individuals are based on the management structure.
5. Unity of Direction

Unity of direction deals with the functioning of body corporate. There should be one common plan for
one unity. Unity of direction means one unit, one plan, whereas unity of command is defined as one
person should have orders from one boss only. Unity of direction is provided by body of corporate
organization. Unity of direction neither exist nor flows without unity of command.

6. Subordination of Individual to General Interest

The interest of an individual person should not be permitted to prevail upon the general interests of the
firm. Both the employee and employer should subordinate their interest to the general interest. Fayol
suggested that,

(a) There must be an agreement between management and employee.

(b) Constant supervision by superiors.

(c) Firmness on the part of superiors.

7. Remuneration

Remuneration is the price paid to the employees for the services rendered by them to the enterprise.
Remuneration should enable the employees to lead a satisfactory life and other special offers like share
or profits, festival bonus are paid to the employees. Remuneration should be given based on the living
cost and capacity of the enterprises.

8. Centralization of Authority

Centralization of authority means that the authority is in the hands of the centre i.e., the authority will
not be distributed among different sections. Small concerns have absolute centralization because orders
from the management goes directly to the employee. But in large concerns, the orders from the
management pass through different levels to reach the employee.

9. Scalar Chain

Managers are a chain of superiors. There should be an unbroken line of authority and command from
highest level or lowest rank

10. Order

This promotes the idea of keeping the right man at the right place. Order lines in work can be obtained
by the management through the suitable organisation of men and material. If proper utilization of
resources and workers employed without proper placement, then employed personnel will not be
accurate and there will be a wastage of material and equipment.

11. Equity

Manager should deal with his subordinates with kindness and justice. This will make employees more
loyal and devoted towards the management and enterprise. Equity ensures cordial relations between
employee and employer. The successful enterprise depends on good industrial relations which are built
on fair play.

12. Stability

Stable and secure workforce is an asset to the firm, because unnecessary labour turnover is costly. It
indicates avoiding of the frequent transfers of the employee before he settles down.

13. Initiative

Initiative is concerned with execution of a plan. Managers should secure initiative from the
subordinates. The manager should permit subordinates to exercise authority. This implies sharing of
decision making authority with subordinates.

14. Esprit De Corps

This principle of management emphasizes the need for teamwork among the employees and shows the
importance of communication in obtaining such teamwork. Strength, stability, stature and reputation
depends on the relations among the personnel.

5.Define types of organizations?

A.
There are several types of formal organisation based on their structure, which are discussed as follows:
1. Line Organisation
2. Line and Staff Organisation
3. Functional Organisation
4. Project Organisation
5. Matrix Organisation
Let us learn about these organisation structures in detail in the following lines.

1.Line Organisation:
Line organisation is the simplest organisation structure and it also happens to be the oldest organisation
structure. It is also known as Scalar or military or departmental type of organisation.
In this type of organisational structure, the authority is well defined and it flows vertically from the top to the
hierarchy level to the managerial level and subordinates at the bottom and continues further to the workers till
the end.
There is a clear division of accountability, authority and responsibility in the line organisation structure.
Advantages of Line organisation
1. Simple structure and easy to run
2. Instructions and hierarchy clearly defined
3. Rapid decision making
4. Responsibility fixed at each level of the organisation.
Disadvantages of Line organisation:
1. It is rigid in nature
2. It has a tendency to become dictatorial.
3. Each department will be busy with their work instead of focusing on the overall development of the
organisation.

2.Line and Staff Organisation:

Line and staff organisation is an improved version of the line organisation. In line and staff organisation, the
functional specialists are added in line. The staff is for assisting the line members in achieving the target
effectively.
Advantages of Line and Staff organisation
1. Easy decision making as work is divided.
2. Greater coordination between line and staff workers.
3. Provides workers the opportunity for growth.
Disadvantages of Line and Staff Organisation
1. Conflict may arise between line and staff members due to the improper distribution of authority.
2. Staff members provide suggestions to the line members and decision is taken by line members, it makes the
staff members feel ignored.

3.Functional Organisation:
Functional organisation structure is the type of organisation where the task of managing and directing the
employees is arranged as per the function they specialise. In a functional organisation, there are three types of
members, line members, staff members and functional members.
Advantages of Functional organisation
1. Manager has to perform a limited number of tasks which improves the accuracy of the work.
2. Improvement in product quality due to involvement of specialists.
Disadvantages of Functional organisation
1. It is difficult to achieve coordination among workers as there is no one to manage them directly.
2. Conflicts may arise due to the members having equal positions.

4.Project Organisation:
A project organisation is a temporary form of organisation structure that is formed to manage projects for a
specific period of time. This form of organisation has specialists from different departments who are brought
together for developing a new product.
Advantages of Project organisation
1. The presence of many specialists from different departments increases the coordination among the members.
2. Each individual has a different set of responsibilities which improves control of the process.
Disadvantages of Project Organization
1. There can be a delay in completion of the project.
2. Project managers may find it difficult to judge the performance of different specialists.

5.Matrix Organisation:
Matrix organisation is the latest form of organisation that is a combination of functional and project
organisation. In such organisations there are two lines of authority, the functional part of the organisation and
project management part of the organisation and they have vertical and horizontal flow of authority,
respectively.
Advantages of Matrix Organisation
1. Since the matrix organisation is a combination of functional and project management teams, there is an
improved coordination between the vertical and horizontal functions.
2. Employees are motivated as everyone will be working towards one project.
Disadvantages of Matrix Organisation
1. Due to the presence of vertical and horizontal communication, there will be increased cost and paperwork.
2.Having multiple supervisors for the workers leads to confusion and difficulty in control.

6.Define Meaning of HRM and functions of HRM?

A.

Human Resource Management (HRM):

According to Milkovich & Boudreau, “Human Resource Management is a series of decisions that affect
the relationship between employees and employers; it affects many constituencies and is intended to
influence the effectiveness of employees and employers”. Human Resource Management (HRM) is
concerned with the human beings in an organization. It is a managerial function which facilitates the
effective utilization of people (manpower) in achieving the organizational and individual goals. Earlier
HRM was called by different names like Personnel Management, Staff Management, Manpower
Management, Labour Relations, Industrial Relations, Labour Management, Employee-Employer
Relations.

Functions of HRM:

Managerial Functions

The managerial functions are performed in general by each and every manager which are as follows,

1.Planning

Planning is a predetermined course of action. It is concerned with determining organizational goals and
formulating the policies and procedures for attaining those goals. Planning is future-oriented and charts
out the directions for attaining the goals.

2.Organizing

Organizing is the method of achieving the planned task. It is the process of allocating the jobs in the
direction of achieving the goals. Organizing includes the activities like allocation of tasks to the sub-
ordinates, establishing departments, delegation of authority, establishing channels of communication,
co-ordination of work and so on.

3. Directing

Directing is the process of activating and co-ordinating the individual and group efforts in order to
achieve the goals and objectives. Directing includes the activities such as maintaining morale, getting
things done with sub-ordinates, motivating the sub-ordinates etc., in accordance with goal achievement.

4. Controlling

Controlling which is the process of checking the performance to confirm whether the activities are going
according to the plans made. Controlling involves the activities like setting performance standards,
checking, verifying and comparing the actual with the plans and taking corrective action if needed.

Operative Functions
The operative functions are the functions related to a particular department or section. Effectively
performed operative functions of HRM ensure placing right people on the right jobs at the right times.
The operative functions include activities like,

(a) Acquisition

Acquisition involves acquiring right kind of people and placing them in right positions in tune with
organizational requirements. Acquisition includes these activities,

 Job analysis
 Human resource planning
 Recruitment
 Selection
 Placement
 Induction
 Transfer
 Promotion and demotion

(b) Development

Development is the process meant to improve the knowledge, skills, aptitudes and values of employees
so that they can better contribute to their job. Development includes the following activities

 Performance analysis
 Training
 Carrier planning and carrier development.

(c) Integration

Integration is the process of reconciling and reuniting the organizational goals with it’s members.
Integration involves the activities like,

 Motivation
 Job satisfaction
 Grievance handling
 Employee participation
 Discipline

(d) Maintenance

Maintenance includes the following activities,

 Organizational health
 Human resource audit
 Human resource accounting
(e) Compensation

Compensation includes determining wages and salaries that match with contribution made by the
employees to achieve organizational goals. Compensation includes following activities

 Job evolution
 Wage and salary administrations
 Bonus
 Fringe benefits

7.Explain the concepts of wage payment methods?

A.

Time Wage:

Time wage system is also called day wage system is a system in which wages are paid on the
basis of time spent by the worker like per day, week or month instead of output produced or
amount of work done. Here presence of employee is more important than performance of
employee. The wage rate is determined by negotiation considering prevailing local wage rate
or job evaluation.

Piece Wage:

In this system of wage payment, remuneration is paid to the employees on the

basis of unit produced or amount of work done. Unit of output produced or
amount of work done is the basis of payment of wages. Therefore, greater is the
number of unit produced, higher is the remuneration of employees and vice-
versa, hence this method is called payment by result. Under this system efficient
and hardworking employees get higher remuneration whereas learner or
beginner gets lower amount of remuneration.

8.What is merchandizing functions?

A.

FUNCTIONS OF MERCHANDISING

The functions of merchandising are as follows:

1.Buying

It is the process of acquiring goods at the right price, at a right time, in right quantity and
quality and from a right source of supply. Buying includes the determination of one's needs,
finding out the sources of supply, negotiating prices and other terms and the transfer of title
from seller to the buyer. Its purpose is to bring the goods at the place where they are wanted.

2.Assembling

at different centers produce goods in small quantities. They cannot be processed unless they
are transported to the market. This process of collecting goods from various sources and
bringing together those in a centrally located place are called assembling. Assembling may be
for the purpose of either resale to the retailer or ultimate consumers, or it may be for getting
together raw materials to be used by manufacturers.

3.Standardizing and grading

Standardizing means the setting up of basic categories or grades of the products. If the
particular goods are of certain standard, it means that they are of a certain quality. Grading
means the division of products into classes made up of units possessing similar characteristics
of size and quality. Thus, it may be said that goods are graded in accordance with specifications
set up in the standards.

4.Storing

Storing is another important function of the marketing process. It involves the holding of goods
in proper condition from the time they are produced until the consumers need them. Storing
protects the goods from deterioration and helps in carrying over surplus for future
consumption, storing regulates the flow from different places; it enables goods to be made
available to consumers.

5.Transportation

Transportation helps in the physical movement of goods from places where they are produced
to the places where they are demanded. It creates place and time utility for the goods.
Transportation has helped in mass production.

6.Market research
Through market research, a manufacturer or dealer gets information on the quality and
quantity of goods wanted by the customers at the time when and where the consumers want
them.

9.Discuss strategic management and Explain phases in strategic management?

A.

Strategic Management:

‘Samuel.C. Certo and J. Paul Peter’ defined strategic management “As a continuous, interactive, cross-
functional process aimed at keeping an organisation as a whole appropriately matched to its
environment”. ‘Schellen Berger and Boseman’ defined strategic management “As a continuous process
of effectively relating the organisations’s objectives and resources to the opportunities in the
environment”

Phases of Strategic Management:

The phases of strategic management process typically include:

Situation analysis:

Gathering and analyzing information about the external and internal environment to understand the
organization's strengths, weaknesses, opportunities, and threats.

Strategy formulation:

Developing a strategic plan to achieve organizational goals and objectives.

Strategy implementation:

Putting the strategic plan into action, including allocating resources, reorganizing structures, and
establishing policies and procedures.

Strategy evaluation and control:

Monitoring progress, evaluating results, and making necessary adjustments to ensure the strategy is on
track and delivering desired outcomes.

10.Explain the vision?

A.

A vision statement is a declaration of an organization’s objectives. This statement can serve as a

guide for the business, indicating a defined direction for growth and goals. As a company grows,
its vision statement may change slightly to adapt to differing needs, but the main idea typically
remains the same. Formal company documents—such as employee handbooks—usually
contain the vision statement. However, some organizations advertise their statement on their
website and other public platforms.

A vision statement should motivate the organization’s employees and outline its ultimate goals.
While a mission statement concentrates on what a company can provide for its customers, a
vision statement is more self-focused, outlining the goals of the business for growth and
success.

Consider the vision statement as an umbrella description of what is important to the company
and how it helps to improve the world around it. This includes not only customers but potential
employees as well. When the vision statement is able to connect to our inner values, it can be
easy to admire that organization and support it in a variety of ways. We consider this a
powerful communication tool in such a short statement.

An effective vision statement should be:

 Clear to understand the organization’s mission

 Simple
 Specific
 Inspirational
 Aware of challenges
 Relevant to a variety of audiences
 Authentic to the organization
 Genuine
 Unique from competitors

Drafting a motivational vision statement is an important step in identifying the goals of a

business and how members of the organization can work toward accomplishing those
objectives. It may be difficult to narrow multiple objectives into one-to-two sentences so it’s
important to really explore the strategy, products and services of the organization. It may
require a marketing perspective or even a copywriter to help edit a larger plan or statement
document