Subject Name: Principles of Management

UNIT-I
INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS
PART-A
1. What are the functions of a manager? (AU- November/December 2016)
Managers have five basics functions. Those functions are;
 planning,
 organizing,
 staffing,
 directing, and
 Controlling.
Managers must plan, or narrow goals from their broadest to most intricate form. They must
organize and create a structure for daily tasks and communication. They must hire and fire
people in various positions. They must serve as a directing influence on staff behavior and
morale. They must also have control over all of the aspects of the company.

2. Give the current trends in management. (AU- November/December 2016)

Current trends are
 Globalization,
 Technology,
 Sustainability and Corporate Social Responsibility,
 The Study of Psychology,
 Business Ecosystems

3. Define Management. (AU- May/June 2016)

 According to the management guru Peter Ducker (1909-2005),
 Management is the act or function of putting into practice the policies and plans
 It is an executive function
 The decisions making are within the confines of the framework
 The basic task of management includes both marketing and innovation.

4. Specify the functions of management. (AU- May/June 2016)

 Four Functions of Management:
 Planning,
 Organizing,
 Leading & Controlling.
 A person who holds a management position inside an organization is required to
think strategically and conceptually in order to achieve organizational goals.

5. What is the basic role of managers? (AU-April/May 2015)

The roles of managers are
 Interpersonal roles – Figurehead role, Leader role, Liaison role.
 Informational roles – Recipient role, Disseminator role, Spokesperson role.
 Decision roles – Entrepreneurial role, Disturbance – Handler role,
Resource allocator role, Negotiator role.

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6. Define scientific management. (AU- April/May 2015)

Scientific management theory was developed in the early 20th century by Frederick W.
Taylor. The goals of a scientific management are
 To reduce waste
 Increase the process and methods of production
 Create distribution of goods
 This goal serves the common interests of employers, employees, and society

7. Point out any three differences between administration and management.

(AU-November/December
2014)
The three differences between administration and management are follows
 Management is the act or function of putting into practice the policies and plans
decided upon by the administration.
 Administration is a determinative function, while management is an executive
function.
 Administration makes the important decisions of an enterprise in its entirety,
whereas management makes the decisions within the confines of the framework,
which is set up by the administration.
 Administrators are mainly found in government, military, religious and educational
organizations. Management, on the other hand, is used by business enterprises.

8. Define Management and Administration. (AU- May/June 2013)

 Management is defined as the process of designing and maintaining an environment
in which individuals, working together in groups, efficiently accomplish selected
aims.
 Administration is concerned with installation and carrying out of the procedures by
which the program is laid down and communicated and the progress of activities is
checked against plans.

9. List the types of business organization. (AU- May

/June 2013)
 Individualistic organizations - Sole trades, Joint stock company, Co-operative,
Multinational companies.
 Government organizations - Departmental undertaking, Public corporation,
Government company, Board organizations

10.What is globalization? (AU- May/June 2013)

The globalization is defined as
 Worldwide movement toward economic, financial, trade, and communications
integration.
 Globalization implies the opening of local and nationalistic perspectives to a broader
outlook of an interconnected

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 Interdependent world with free transfer of capital, goods, and services across
national frontiers.
 It helps to promote economies of the country.

11.Define organisation.

According to Ralph C. Davis, “Organisation is a group of people who cooperate under

the direction of leaderships, for the accomplishment of common end”.

12.Levels of management.

1. Top management
2. Middle management
3. Supervisory management

13.Objectives of management.

1. Organisational objectives
2. Personal objectives
3. Social objectives

14.Need of management.

1. Helps in achieving group goals

2. Reduces costs
3. Maintains equilibrium
4. Optimum utilization of resources.

15.What is theory z?
Theory z describes the major postulates of Japanese management practices and how
these practices can be adopted to the environment of united states and other countries. It is
just to denote the state of affairs in organization and human behaviour as has been done in
the cases of theories X and Y.

16.Assumptions of theory X
1. Employees inherently dislike work and whenever possible will attempt to avoid it.
2. Since employees dislike work they must be coerced, controlled or threatened with
3. punishment to achieve goals.
4. Employees will avoid responsibilities and seek formal direction whenever
possible.
17.Assumptions of theory y
1. Employees can view work as being as natural as rest or play.
2. People will exercise self direction and self control if they are committed to the
objectives
3. The average person can learn to accept, even seek, responsibility.
18.Basic concepts of management.
1. Management as a process
2. Management as an activity
3. Management as a group
4. Management as a discipline

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5. Management as an economic resource

19.Management is both science and Art

According to Knootz and O’Donnell, “ Essentially managing is the art of doing and
management is the body of knowledge that underlies the art”.

20.Features of decision theory approach

1. Management is essentially decision making

2. The members of the organization are decision makers and problem solvers
3. Quality of the decision affects the organizational effectiveness
4. All factors affecting decision making are the subject matter of study

UNIT-II

PLANNING

PART-A
1. What is meant by policies? (AU- ND 2016)
Policies and procedures are designed to influence and determine all major decisions
and actions, and all activities take place within the boundaries set by them.
 A set of policies are principles, rules, and guidelines formulated or adopted by an
organization to reach its long-term goals and typically published in a booklet or other
form that is widely accessible.

2. Define MBO. (AU- ND2016)

 Management by objectives (MBO) is a management model that aims to improve
performance of an organization by clearly defining objectives that are agreed to by
both management and employees.
 The term was first outlined by management guru Peter F Drucker in 1954 in his book
"The Practice of Management."

3. What are the objectives of planning? (AU-MJ 2016)

The objectives of planning are
 To help in achieving objectives
 To cope with uncertainty and change
 To help in facilitating control
 To help in coordination

4. List the steps in decision making. (AU-MJ 2016)

 Step 1: Identify the decision. You realize that you need to make a decision.

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 Step 2: Gather relevant information.

 Step 3: Identify the alternatives.
 Step 4: Weigh the evidence.
 Step 5: Choose among alternatives
 Step 6: Take action
 Step 7: Review your decision & its consequences.

5. What is the main purpose of planning? (AU-AM 2015)

The planning helps people in concentrating their efforts on the most important jobs rather
than wasting time on the lesser important work. The purpose of planning is
 to minimize the cost of performance
 to eliminate unproductive efforts.
 to help the management in adopting
 to adjust according to the changes that take place in the environment

6. Distinguish strategic planning and tactical planning. (AU-AM 2015)

 A strategic plan will likely encompass a big idea or a whole organization, whereas a
tactical plan will revolve around one goal or a part of an organization.
 A tactical plan may be one year or less in time frame, whereas a strategy plan will
stretch from one year to many decades in scope.

7. Write short notes on policy making. (AU-ND 2014)

 The policy making is an act or process of setting and directing the course of
action to be pursued by a government, business, etc.
 Policies are generally adopted by the Board or senior governance body within an
organization Procedures or protocols would be developed and adopted by senior
executive officers

8. Define corporate planning. (AU-ND 2014)

Corporate planning :
 It is a process used by businesses to map out a course of action that will result in
revenue growth and increased profits.
 Although large corporations may have staff members or entire departments devoted
to performing the planning function
 Small business owners can become proficient through learning basic concepts and
Putting forth the effort to create corporate planning is a comprehensive plan.

9. What do you mean by “policy”? Give an example. (AU-MJ 2014)

Policies are general statements or understandings which provide guidance in decision
making to various managers. Examples in areas where businesses typically institute policies
 Ethics,
 Human resources,
 Accounting and
 Customer service

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10. What is meant by forecasting? (AU-MJ 2013)

Forecasting is a planning tool that helps management in its attempts to cope with the
uncertainty of the future, relying mainly on data from the past and present and analysis of
trends. Different forecasting tools are follows
 Jury of executive opinion
 Delphi method
 Consumer market survey
 Sales force opinion composite

11. Define Planning.

According to Henry Fayol, “Planning is deciding the best alternatives among others to
perform different managerial operations in order to achieve the pre-determined goals”.
12. Define Objective.
According to Dalton E. McFarland, “Objectives are the goals, aims or purposes that
organization wishes to achieve over varying periods of times”.
13. Define Policies.
According to Knootz and O’ Donnell, “Policies are general statements or understandings
which guide or channel thinking decision-making of subordinates”.
14. Enumerate the nature of objectives.
1. Multiplicity of objectives
2. Hierarchy of objectives
3. Periodicity of objectives
4. Measurability of objectives.
15. What is the significance of Policies?
1. Guide to thinking and action
2. Consistency
3. Broader Applicability
4. Confidence Building
16. Define Strategy.
According to George A. Steiner, “Strategy means deciding the basic mission of a company,
the objectives which seeks to achieve and the policies governing the use of resources at the
disposal of the firm to achieve its objectives”.
17. What is the importance of objectives?
a. Direction
b. Motivation
c. Coordination
d. Legitimacy
18. Define Decision Making.

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According to Mary Nites, “Decision Making takes place in adopting the objectives and
choosing the means and again when a change in the situation creates a necessity for
adjustments”.

19. Write short note on Individual versus Group Decision Making.

Individual Group
Decision making made by single person Two or more than two persons take part in
only. decision making.

Less Accurate. More Accurate.

Possibility of Bias decision is more. Less Biased decision.
It increases Efficiency. It decreases Efficiency.

20. Define MBO.

According to Prof. Reddin, “MBO is the establishment of effectiveness areas and
effectiveness standards for managerial positions and the periodic conversions of these into
measurable time bounds objectives liked vertically and horizontally with future planning”.

UNIT-III
ORGANISING
PART-A
1. 1. Define” Departmentation”. (AU- ND 2016)
Grouping of activities into departments is the necessary part of the process of setting up
organisation, whenever enterprise expands beyond the size that cannot be effectively
managed by one person. Departments and levels emerge from the grouping of activities.

2. What is meant by performance appraisal? (AU- ND 2016)

The process by which a manager or consultant examines and evaluates an employee's work
behavior by comparing it with preset standards, documents the results of the comparison,
and uses the results to provide feedback to the employee to show where improvements are
needed and why. Performance appraisals are employed to determine who needs what
training and who will be promoted, demoted, retained, or fired.

3. Define organizing. (AU-MJ 2016)

Organizing in companies point of view is the management function that usually follows after
planning. And it involves the assignment of tasks, the grouping of tasks into departments
and the assignment of authority with adequate responsibility and allocation of resources
across the organization to achieve common goals.

4. What is decentralization? (AU-MJ 2016)

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Decentralization is the process of redistributing or dispersing functions, powers, people or

things away from a central location or authority. Decentralization is the process by which
the following activities take place
 Redistributing or dispersing functions
 Powers
 People or things away from a central location or authority.
 While centralization, especially in the governmental sphere, is widely studied and
practiced.

5. 5. What do you understand by assessment centers? (AU-AM 2015)

An assessment centre is a process where candidates are assessed to determine their
suitability for following specific types of employment, especially management or military
command. The candidates' personality and aptitudes are determined by a variety of
techniques including
 Interviews,
 Group exercises,
 Presentations,
 Examinations and
 Psychometric testing.
6. Give an example of how functional authority works in an organization. (AU-AM 2015)
Functional authority is the right which an individual or department has delegated to it over
specialized processes, practices, policies or other matters relating to activities undertaken
by personnel in departments other than its own.
Example:
 Accountancies
 Purchasing or procuring
 Marketing
 Logistics

7. Define authority. (AU-ND 2014)

Authority is define as that “the right given to a manager to achieve the objectives of the
organization “.
 It is a right to get the things done through others.
 It is a right to take decisions.
 It is a right to give orders to the subordinates
 A manager cannot do his work without authority.

8. What is staffing? (AU-ND 2014)

Staffing is a process of selecting “Right person for the right job” it is called staffing. It
includes the following steps ,
 The selection of individuals for specific job functions
 Training of individuals for specific job functions,
 Charging them with the associated responsibilities .

9. Define “span of control” (AU-MJ 2014)

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Span of control is defined as the number of subordinates a supervisor has. Effective span
control has the following:
 Geographical dispersion
 Capability of workers
 Capability of boss

10.List down the different types of training. (AU-MJ 2014)

The different types of training are
 Induction or orientation
 Job training
 Safety training
 Promotional training
 Refresher training
 Remedial training
 Internship training

11. Define Organizing.

According to Knootz and O’Donnel, “It is the grouping of activities necessary to attain
enterprise objectives and the assignment of each grouping to a manner with necessary to
supervise it”.
12. Define Departmentation.
According to Louis A. Allen, “Departmentation is a means of dividing the large and
monolithic functional organization into smaller flexible administrative units”.
13. Distinguish between Formal and Informal Organization.

Subject Formal Informal

2) Formation It is created deliberately. It emerges on its own as a

result of social
interactions among
people.

3) Purpose It is created to achieve It emerges to meet the

organizational goals. social and cultural needs
of the members of the
organization.

4) Structure It has well defined It does not have a clear

structure. well defined structure.

5) Use of It makes more use of It makes more use of

Communication formal communication. informal communication.

14. List out the elements of Organization Structure.

5. Work specialization

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6. Departmentalization
7. Chain of command
8. Unity of Command
15. Define Delegation.
According to Louis A. Allen,”Delegation is the dynamics of management. It is the process a
manager follows in dividing the work assigned to him so that he performs that performs
that part which only he can perform effectively, and so that he can get others to help him
with what remains.”
16. Define Span of Control.
According to Dimock, “Span of control is the number or range of direct, habitual
communication contacts between the Chief Executive of an enterprise and his principle
fellow officers”.
17. Define Performance Appraisal.
According to Mondy, “Performance Appraisal is a system of review and evaluation of an
individual’s performance”.
18. Define Staffing.
According to Mc Farland, “Staffing is the function by which managers build an
organization through recruitment, selection, and development of individuals as capable of
individuals as capable employees”
19. Differentiate Recruitment and Selection.

Recruitment Selection
Positive process. Negative process.

Always precedes selection. Always succeeds recruitment.

Techniques are not very intensive. Highly specialized techniques are required.
Outcome of the recruitment is application Outcome of selection process is in the form
pool which becomes input for selection of finalizing candidates who will be offered
process. job.

20. Define Orientation.

According to Gary Dessier, “Orientation is a procedure for providing new employees with
basic background information about the firm”.
UNIT-IV
DIRECTING
PART-A
1. What are the elements in the Maslow’s hierarchy of needs? (AU- ND2016)
The elements in the Maslow’s hierarchy of needs is as follows

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 Physiological needs
 Safety needs
 Social belonging
 Esteem
 Self-actualization

2. What is effective communication? (AU- ND 2016)

A two way information sharing process which involves one party sending a message that is
easily understood by the receiving party. Effective communications by business managers
facilitates information sharing between company employees and substantially contribute to
its commercial success.

3. Mention various types of leadership skills. (AU-MJ 2016)

Some companies offer several leadership styles within the organization, dependent upon
the necessary tasks to complete and departmental needs.
 Laissez-Faire
 Autocratic
 Participative
 Transactional
 Transformational.

4. What you mean by the term “Noise” in communication? (AU-MJ 2016)

Communication noise refers to influences on effective communication that influence the
Interpretation of conversations. While often looked over, communication noise can have a
profound impact both on our perception of interactions with others and our analysis of our
own communication proficiency.
5. How does leadership differ from management ? (AU-AM 2015)
According to” Warren Bennis composed a list of the differences:
 The manager administers; the leader innovates.
 The manager is a copy; the leader is an original.
 The manager maintains; the leader develops.
 The manager focuses on systems and structure; the leader focuses on people.

6. Write short notes on Laissez faire leader. (AU-ND 2014)

Laissez-faire leadership, also known as delegative leadership, is a type of leadership style in
which leaders are hands-off and allow group members to make the decisions. Researchers
have found that this is generally the leadership style that leads to the lowest productivity
among group members.
7. Write notes on element of communication. (AU-ND 2014)
Seven major elements of communication process are:
 Sender
 ideas
 Encoding
 communication channel
 Receiver
 decoding and

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 Feedback.

8. Define motivation. (AU-MJ 2014)

Motivation is a theoretical construct used to explain behavior.
 It represents the reasons for people's actions, desires, and needs.
 It helps to achieve desire goal
 Motivation can also be defined as one's direction to behavior, or
 What causes a person to want to repeat a behavior and vice versa.

9. What is meant by Brainstorming? (AU-MJ 2013)

Brainstorming is an excellent way of developing many creative solutions to problem.
 It works by focusing on a problem, and
 It coming up with many radical solutions to it by participants in the gathering or
meeting.
 At the end, the participants are asked how the ideas could be combined or improved.
 It helps team building

10. Who is a leader? (AU-ND 2012)

Leadership is the ability to inspire or influence others towards the leader's goal.
 If someone has followers, he or she is a leader.
 Management literature mostly focuses on the characteristics of the leader
 It asks "what make this person a leader", rather than
 "Why do these people choose to follow".

11. Define Directing.

According to Knootz and O’Donnel, “Direction is a complex function that includes all those
activities which are designed to encourage subordinates to work effectively and efficiently
in both the short and long run”.
12. Define Communication.
According to Louis A. Allen, “Communication is the sum total of all the things that a person
does, when he wants to create an understanding in the mind of another. It involves a
systematic and continuous process of telling, listening and understanding”.

13. Distinguish between Formal and Informal Communication.

Subject Formal Communication Informal Communication

6) Definition When communication takes Any communication by

place through the formal passing the formal channels
official channels then it is can be termed as informal
known as formal communication.
communication.

7) Flexibility Formal communication is It is flexible.

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not flexible.

8) Degree of Control Formal communication is It cannot be controlled like

totally controlled by the formal communication.
management.

9) Flow of Information Information can flow only Information flows freely to

upward and downward. all direction.

14. List out the elements of Organisational Culture.

9. Artifacts
10. Heroes
11. Attitudes
12. Symbols and Symbolic Action.
15. Illustrate the process of Communication.
Communication is a process which involves a sender of message and a receiver.
Communication is regarded as a two-way process. Two-way communication process is
concerned with sharing and understanding of information

Message Message Message Message

Source/ Encoding Channel Receive Decoding
Sender r

Feedback

16. Define Creativity.

Creativity is a mental and social process involving the discovery of new ideas or concepts, or
new associations of the creative mind between existing ideas or concepts.
17. List the Human Factors in Management.
a. Individual Differences
b. Importance of Personal Dignity
c. Considering the Whole Person
d. Multiplicity of Role
18. Write a short note on Culture Diversity.
 Culture diversity indicates cultural differences within the nation. Cultural differences
the organizational work behavior within and across countries and cultures.
 Most significantly, the knowledge of organizational behavior across different cultures
helps in understanding the beliefs, attitudes, interpersonal relationships among

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workers, executives, clients, suppliers, and alliance partners from countries

internationally.
19. Write short note on Strong versus Weak Culture.

Strong Culture Weak Culture

Strong culture has major impact on Weak culture has little impact on employees
employees of the organization. of the organization.

The core values are hold intensely and The core values are not shared widely
shared widely in the organization. hence, that reduces the commitment level of
the employees.
Strong Culture has high level of behavioral Weak culture has low level of behavioral
control. control.
Organization with strong culture have high Organization with weak culture have low
performance rate. performance rate.

20. Define Organization Culture.

According to O’ Reilly, “Organizational culture is the set of assumptions, beliefs, values, and
norms that are shared by an organization’s members”.

UNIT-V
CONTROLLING
PART-A
1. What are the uses of computers in management control? (AU- ND 2016)
The use of computers for management controls poses an entirely new set of requirements
on the system designers. Tied into automating information processing is the question of an
adequate understanding of the control problem itself.

2. Discuss the productivity problems in a management. (AU- ND 2016)

 Poor management
 Employee Dissatisfaction
 Outdated performance management system
 Solutions

3. Name any two HR related control techniques. (AU-MJ 2016)

 A performance appraisal is the process that evaluates an employee's performance
against the standards set by the organization, documents the performance and yields
measurable information that can be used to provide valuable feedback to the
employee.
 Discipline policies are policies that address employee behaviors and performance.
Discipline policies involve corrective action steps to redirect behavior or enhance the
performance of employees who are not meeting goals.

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4. What are the uses of computers in handling information? (AU-MJ 2016)

 Computers have the advantage of producing accurate results. It can perform variety
of tasks at a time automatically.
 When a raw data is given to the computer, it works on it and then produce the output
as a result .
 This result can be taken in a printed form as well. Computer can perform different
operations ,arithmetic or logical. In this way, Computer has become very handy.

5. What are the three potentials pitfalls of budgets? (AU-AM 2015)

The three pitfalls of budgets is
 Unrealistic expectations.
 Mistaking luxuries for necessities.
 Expecting windfalls.
 Buying before trying.

6. List the basic types of control. (AU-AM 2015)

The basic types of controls are as folllows
 Purchase control
 Maintenance control
 Quality control
 Budget control,etc.,
7. What are the budgetary controls? (AU-ND 2014)
Budgetary control: A system of management control in which actual income and spending
are compared with planned income and spending, so that you can see if plans are being
followed and if those plans need to be changed in order to make a profit. Advantages are
 Budgets translate strategic plans into action
 Budgets provide an excellent record
 Budgets improve communication with employees
 Budgets improve resources allocation

8. Define purchase Control. (AU-ND 2014)

Purchase Control provides purchase order software that lets you control and report on all
spending within your organisation. It’s used by multinationals and small business alike to
give greater visibility on purchasing and costs.
 Evaluation of purchase control
 Price advantage
 Value analysis
 Standardization
 Reduce rate rejection

9. Define productivity. List the types of productivity. (AU-MJ 2014)

Productivity is the ratio between input to output during a specified period with the due
consideration of quality. Types are given below
 Labor productivity: units produced / hours worked
 Capital productivity: output / capital input
 Material productivity: output /material input

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10. What are the different types of budget? (AU-MJ 2014)

The different types of budget
 Master Budget
 Operating Budget
 Financial Budget
 Static Budget
 Cash Flow Budget

11. Define Controlling.

According to Knootz and O’Donnel, “Controlling is the measuring and correcting of
activities of subordinates to ensure that events conform to plans”.
12. Define Budgetary Control.
According to Terry, “Budgetary control is a process of comparing the actual results with
the corresponding budget data in order to approve accomplishments or to remedy
differences by either adjusting the budget estimates or correcting the cause of the
difference.”.

13. Explain the purpose for which Break-even analysis is used.

 Break-even analysis is an analysis used to determine the point at which revenue
received equals the costs associated with receiving the revenue.
 Break-even analysis calculates what is known as a margin of safety, the amount that
revenues exceed the break-even point.
 This is the amount that revenues can fall while still staying above the break-even
point.
14. Mention the application of Operations Research and Productivity Improvement.
Applications of operations Research
13. Optimization of coated coils production
14. Planning and control in logistics
15. Preparation of flood emergency action plan

Applications of operations Research

1. Waste reduction and energy conservation
2. Maintenance of equipments and facilities
3. Manufacturing & non-manufacturing services
15. What are Quality Circles?
 A Quality circle is a participatory management technique that enlists the help of
employees in solving problems related to their own jobs.

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 Circles are formed of employees working together in an operation who meet at

intervals to discuss problems of quality and to devise solutions for improvements.
16. Define Operations Management.
 Operations Management is a broad term which includes manufacturing as well as
service organizations.
 Operations management is defined as the design, operation, and improvement of the
transformation process, which converts the various inputs into the desired outputs
of products and services.
17. List the importance of Cost Control.
1. Better utilization of resources.
2. To prepare for meeting a future competitive position.
3. Reasonable price for the customers.
4. Improve the rate of return on investment.
18. Give the types of measurement of Productivity.
1. Partial Productivity
2. Total Factor Productivity
3. Total Productivity
19. State the ultimate objectives of the Production and Operations Management.
1. Right Quality: It is determined b by the cost of the product and the technical
characteristics as suited to the specific requirements.
2. Right Quantity: The manufacturing organization should produce the products in
right number.
3. Right Time: Timeliness of delivery is one of the important parameter to judge the
effectiveness of production department.
4. Pre-established Cost: Manufacturing costs are established before the product is
actually manufactured.
20. List the types of Management Control.
 Feed forward control
 Concurrent control
 Feedback control

DSEC/ROBO/QB/IVYR/POM