MG6851 Principles of Management QBank unit 1-5

Notes 76 Pages

Anna University

Principles of Management

Contributed by

Rahim Dyal

SRI VIDYA COLLEGE OF ENGINEERING & TECHNOLOGY QUESTION BANK
MG 6851 PRINCIPLES OF MANAGEMENT Page 1
UNIT: I - 2 MARKS
1.
Define Management.
According to KOONTZ & WEIHRICH, “Management is the process of designing and
maintaining of an environment in which individuals working together in groups efficiently
accomplish selected aims”. “Management is the art of getting things through and with people in
formally organized groups”. Ex: Human Resource Management, Financial Management.
2.
Is Management - an art or science?
Managing as practice is an art; the organized knowledge underlying the practice is a science.
3.
What are the essential skills of Managers?
The major skills required or expected out of managers are:- Technical skills – Pertaining to
knowledge and proficiency in activities involving methods and procedures; Human skills –
Ability to work effectively with other persons and to build up cooperative group relations to
accomplish organizational objectives; Conceptual skills – Ability to recognize significant
elements in a situation; and to understand the relationship among those elements; and Design
skills – Ability to solve problems in ways that will benefit the enterprise.
4.
Define Scientific Management.
“Scientific Management is concerned with knowing exactly what you want men to do and then
see in that they do it best and cheapest way”.
5.
List the principles of Scientific Management.
The principles of Scientific Management are:-
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6.

List the contributions of Fayol towards Management.
Henry Fayol is a French industrialist whose contributions are termed as operational management
or administrative management. He followed „The Classical Approach‟ to the evolution of
management thought. His contributions are given as follows:-
•
Grouping of activities of an industrial organization into six groups, namely- Technical,
commercial, financial, security, accounting and managerial;
•
Identified six types of qualities of a manager are- Physical, mental, moral, educational,
technical and experience;
•
Fourteen principles of Management namely- Division of Work, Authority and responsibility
and so on; and
•
Five elements/functions of management- Planning, organizing, commanding, coordinating
and controlling.
7.
List out the Functions of management
• Planning
• Organizing
• Staffing
• Leading or Direction or Coordination
• Controlling
8.
List out the Management level.
• Top-level management
• Middle level management
• Lower level management
9.
What are the roles played by a Manager?
Interpersonal roles Informational roles Decision roles
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8)

Centralisation
9)

Scalar chain
10)

Order
11)

Equality.
12)

Stability
13)

Initiative
14)

Esprit de corps

10.

What is authority?
It is the power given to a person to get work from his subordinates.

11.

What is responsibility?
It is the amount of work expected of forma man by his superior.

12.

Comment: Management is both – A science and an art.
Management is a science because it contains general principles. It is also an art because
it requires certain personal skills to achieve desired result.

13.

What is centralization?
The organisation is centralized when the power is concentrated with one person.

14.

What is decentralization?
If the power is fully distributed to the subordinates of the organisation.

15.

What is scalar chain?
The instruction and orders should be sent from the top management to the lower
management.

16.

What are management levels?
1)

Top-level management.
2)

Middle level management
3)

Lower level management

17.

Write some important functions of top management.
1)

To formulate goals and policies of the company.
2)

To formulate budgets
3)

To appoint top executives

18.

Write any two functions of middle level management.
1)

To train, motivate and develop supervisory level.
2)

To monitor and control the operations performance.

19.

What are essential skills needs for the manager?
1)

Technical skill.
2)

Human skill
3)

Conceptual skill
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20.

Write the function of management.
1)

Planning
2)

Organising
3)

Staffing
4)

Coordinating
5)

Controlling

21.

What is social responsibility?
Society is the part of the management to initiate actions either to protect social
interest of the society.

22.

List out the groups’ responsibilities of management.
1)

Shareholders
2)

Employees
3)

Customers
4)

Creditors
5)

Suppliers

23.

What is ethics?
All individuals in business or non-business activities are concerned with some
standardized form of behaviour are known as ethics.

24.

What is ethics in management?
1)

Business ethics deals with morality of the business environment.
2)

Business ethics relate to the behaviour of a businessman in a situation.
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Part-B - 16Marks

1.

Explain the different Business organization.

Business Organization

An Organization is a group of people working together to achieve a common
goal.Organization exists to achieve goals that individuals cannot achieve on
their own. Organization is grouping of activities and putting under different
departments according to their functions. The Organization brings men and
material resources together for fulfilling the goals of enterprises.

Types of Organization

1.
Sole proprietorship / Individual

2.
Partnership

3.
Joint stock Company - Private Ltd Company &Public Ltd

Company

4.
Cooperative Enterprises

5.
Public Enterprises / State ownership

Sole proprietorship
- the individual entrepreneur supplies the entire capital,
employs labor and machines. Individual uses his own skill in the
management of affairs and is solely responsible for the good or bad result of
its operation and working

Merits

1.

Simplestform of business

2.

Least legal complication

3.

Quick decision

4.

Maximum Profit

5.

Personal Care

6.

Quality product

7.

Minimum wastage

8.

Flexible business

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Partnership
- two or more persons come together and start a business with
their own funds, the parties agree to share the profits as well as bear the
losses in the agreed proportion. The formation and management of
partnership organization is governed by the Indian Partnership Act, 1932.

Merits

1.
Has larger financial resources

2.
greater personal contacts of the partners gives more customer base and
benefits

3.
Persons of different skills and abilities can work for betterment of
Organization

4.
Less

expenditure per

partner

is

involved in

forming partnership
Organization 5. Loss will be divided among thepartners

Joint Stock Company
- Capital is contributed by a large number of people in
the form of shares of different values.

Private Ltd Company
- can be established with two to fifty members. The
maximum number of membership is limited to 50. When this type of
Organization expands beyond certain limit, it can restrict its liability by
registering the firm as a limited company. The company is registered under
Indian Company act 1956.

Public Ltd Company
- the minimum number of members required are 7 and
there is no upper limit. Such companies offer shares to general public. Public
Ltd companies are supervised and controlled by the Government to protect the
interest of Share holder public. The company is governed by an elected body
called board ofdirectors.

Merits



The shareholders bear no risk as the liability is limited



Large scale business can be undertaken



Take advantage of economies of scale in production because
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management can employ specialized labor, can use latest machinery
and thus can achieve large scale production at low cost.

Co-operative Enterprises
- Co-operation is a form of Organization where
persons irrespective of caste, creed and religion, voluntarily associate
together as human beings. It is based on the democratic principles and
functions for the welfare of the public at large. It protects the interest of
consumer as well as that of small producers.

Features



Voluntary Organization



Open Membership



Common purpose I Interest



Democratic Management



Not profit oriented

2.

Is Management Profession-discuss?

The essential attribute of a profession

1.
A well-defined and organized body of knowledge

2.
Learning and Experience

3.
Entry restricted by qualification

4.
Recognized national body

5.
Ethical code of conduct

6.
Dominance of service motive

Mgt cannot be a fully fledged profession due to the following shortcomings



Skills not fully developed



No uniform method of entry



Objective is monetary rather than service

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

Ethical code is not strict



Associations are not statutory bodies

Levels of Management

1.
Top Level Mgt-



To analyze, evaluate and deal with the environmental forces



To establish overall long term goals and broad policies of the
company including the master budget



To appoint departmental and other key executives



To represent the company to the outside

world



Tocoordinate the activities and efforts of different
department

2.

Middle Level Mgt
-



To

interpret

and

explain

the

policies

framed

by

top
management



To

compile

and

issue

detailed

instruction

regarding
operations



To cooperate among themselves so as to integrate various parts of the
division or a department



To motivate supervisory personnel to work for Organization

goals



To develop and train supervisory and operative

personnel.

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3.

Supervisory / Operating / Lower Level Mgt-



Toplan day to day production within the goals lay down by higher
authority



Toassign jobs to workers and to make arrangement for their training
and development



Tosupervise and control workers and to maintain personal contact with
them.

Roles of a manager (Mint berg)

1.

Interpersonal Role - Interacting with people inside and outside the
Organization



Figurehead
- as a symbolic head of an organization, the manager
performs routine duties of a legal nature



Leader
- Hiring, Training, motivating and guiding subordinates



Laison
- Interacting with other managers outside the organization to
obtain favors and information

2.

Informational Role
- Serving as a focal point for exchange of Information



Monitor
- Seeks 8nd receive information concerning internal and
external events so as to gain understanding of the Organization and its
environment.



Disseminator
-

Transmits information to subordinates,

peers and
superiors within the Organization



Spokesperson
- Speaking on behalf of the Organization and
transmitting information on Organization plans, policies and actions to
outsiders.

3.

Decisional Role
- Makes important decision

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

Entrepreneur
- Initiating changes or improvements in the activities of
the Organization on



Disturbance handler-
Taking

charge

and

corrective

action

when
Organization faces unexpected crises



Resource allocator
- Distributing Organization's resources like money,
time, equipment and labor



Negotiator
Representing the Organization in bargaining and negotiations
with outsiders and insiders.

3. Discuss the contribution of Henry Fayol Management.

Father of Management - Henry Fayol (1841- 1925) Henry Fayol
contributed 14 principles to Mgt which is widely applied in the entire
Organization

1.
Division of Work

2.
Authority and Responsibility

3.
Discipline

4.
Unity of Command

5.
Unity of Direction

6.
Subordination of individual interest to general

interest

7.
Remuneration of personnel

8.
Centralization

9.
Scalar Chain

10.
Order

11.
Equity

12.
Stability of Tenure of Personnel

13.
Initiative

14.
Esprit-de-corps.

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MG6851 Principles of Management QBank unit 1-5

MG6851 Principles of Management QBank unit 1-5

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