MPA-5

1 .Explain the advantages and disadvantages of Total Quality Management.[UNIT-1]

Advantages of Total Quality Management are:

1. Emphasizing the needs of the market: TQM helps in highlighting the needs of the market.
Its application is universal and helps the organization to identify and meet the needs the
market in a better way.

2. Assures better quality performance in every sphere of activity: Adverse and non-
participative attitudes of the employees are the biggest obstacles in the organization's success,
growth and advancement. It provides excellent opportunities for self-development and
increasing employee's interest in the job.

3. Helps in checking non-productive activities and waste: Every organization aims at

improving productivity as well as reduction in cost so as to result in increase in profitability.
Under TQM, quality improvement teams are constituted to reduce waste and inefficiency of
every king by introducing systematic approach. Such efforts are helpful in achieving cost-
effectiveness and safety in the organization..

4. Helpful in meeting the competition: TQM techniques are greatly helpful in understanding
the competition and also developing an effective combating strategy. Due to the cut throat
competition, the very survival of many organizations has become very vital issue. TQM helps in
understanding the customers as well as the market. It provides an opportunity to the
organization to meet the competition by resorting to the techniques of TQM.

5. It helps in developing an adequate system of communication: Faulty and inadequate

communication and improper procedures act as stumbling blocks in the way of proper
development of an organization. It results in misunderstanding, low productivity, poor quality,
duplication of efforts and low morale. TQM techniques bind together members of various
related sections, departments and levels of management for effective communication and
interaction.
6. Continuous review of progress: TQM helps to review the process needed to develop the
strategy of never ending improvement. Quality improvement efforts have to be undertaken
continuously to meet the dynamic challenges. From the above, it can be concluded that TQM
results in both tangible and intangible gains.

Disadvantages of Total Quality Management:

1. Implementing a Total Quality Management system in a company requires extensive training

of employees.

2. The employee training includes instruction in problem solving techniques and the tools to
evaluate a process and identify weaknesses such as statistical process control, Pareto diagrams
and brainstorming techniques.

3. During the initial training period, productivity can decline. Meetings for quality to
improvement teams also take workers away from their duties, which also reduce productivity.
While the improvements do reduce lead time, eliminate waste and improve

4. Productivity, the beginning stages of implementing Total Quality Management in an

organization can reduce worker output.

2. Discuss various steps in Talent Management process.

The various steps in Talent Management are as follows:

i. The first step in the talent management process is to ensure that an organisation becomes
aware of the type of talent they require to reach their organisational goals. Thus, strategic
planning, both from a broad organisational and strategic HR perspective is important to ensure
that the talent management strategy of the organisation is In line with its long term business
strategy.

ii. Once the organisation is aware of its strategic direction, the next step is to understand
which skills are required to achieve specific tasks, so that the overall goal is achieved. This is
achieved by designing the appropriate organisational structure including the ideal levels for
the organisation, as well as ensuring that clear and coherent job profiles are implemented.
Ill. At this point in the talent management process, the organisation will be aware of what its
unique structure is comprised of and what talent and human capital gaps exist. At this point, it
is critical to source the correct type of human talent to fill these gaps, through several
channels Including associating with various recruitment agencies. The organisation must
ensure that it selects the most appropriate individuals and places them correctly within the
organisation, team and job role. This is achieved through selection and person job fit.

iv. Once suitable candidates have been placed within organisational positions, the in-depth
Performance Management process begins, whereby the organisation monitors the
performance of its staff, reinforcing and rewarding satisfactory and exceptional performance,
and correcting performance which will not allow the organisation to meet its goals. This can be
achieved through the design of a comprehensive yet simple performance management
system, that links each employee's job performance to the broad goals and strategies of the
organisation through a balanced score card.

v. The next step of the talent management process is to ensure that the organisation retains
key talented Individuals, their skills and their collective institutional knowledge, as this
provides the organisation with the sustainable competitive advantage.This can be achieved
through proper coaching ad designing a comprehensive succession management plan.

vl. Finally, since modern organisations are faced with current global work trends, the nature of
work is constantly changing. Some of the main changes that have occurred in the modern
workplace is that work today is more often than not completed by interdependent teams
(rather than individuals); globalisation and technology has increased the pace and complexity
of work; and demands on organisations and Individuals change constantly. This means that
flexibility and adaptability to turbulent circumstances have become crucial to an organisation's
ability to compete and to sustain its competitive advantage in the economy.

3. Explain the process of management by objectives. [UNIT-2]

MBO is not only an aid to planning but also a motivating factor. The process of MBO:

i) Preliminary setting of objectives at the top level:- The managers at the top level set the
overall objectives by taking planning premises into account. These objectives set by superiors
are preliminary, as they must be regarded as tentative and subject to modification as the
entire chain on verifiable objectives is worked out by subordinates. Verifiable objectives are
developed in terms of profits, market share, growth, expansion etc.

ii) Clarification of goals:- The relationship between the results expected and the responsibility
for attaining them should be established as every goal and subgoal should be someone's clear
responsibility and accountability.

iii) Setting of subordinates objectives:- The organizations objectives should be accomplished

by a number of individuals, if all the individuals are to be jointly made responsible for attaining
its overall objectives. Therefore, each individual should be assigned a specific task and he must
know in advance what he is expected to achieve. In view of this, the subordinates objectives
should also be set in conformity with the preliminary objectives of the company.

iv) Recycling of objectives:- Infact, the final objectives are neither set at the top nor at the
bottom. They are set after thorough consultations and discussions between the supervisors
and subordinates. Thus it is a joint process requiring interaction and recycling among staff. This
process creates a feeling of commitment and involvement of all staff at various levels.

v) Performance Appraisal:- Each employee should evaluate his accomplishment with the
objectives set with the help of his superior. This appraisal provides him scope for correction
and further improvement.

4. Explain the functional areas of management.

Various functional areas of management are:

I.Production management:

Production means creation of utilities by converting raw material into final product by various
scientific methods and regulations. Various sub-areas of the production department are as
follows:

a) Plant layout and location: This area deals with designing of plant layout, decide about the
plant location for various products and providing various plant utilities.
b) Production planning: Managers has to plan about various production policies and
production methods.

c) Material management: This area deals with purchase, storage, issue and control of the
material required for production department.

d) Research and Development: This area deals with research and developmental activities of
manufacturing department. Refinement in existing product line or develop a new product are
the major activities.

e) Quality Control: Quality control department works for production of quality product by
doing various tests which ensure the customer satisfaction.

II. Marketing management:

Marketing management involves distribution of the product to the buyers. It may need
number of steps. Sub areas are as follows:

a) Advertising: This area deals with advertising of product, introducing new product in market
by various means and encourage the customer to buy these products.

b) Sales management: Sales management deals with fixation of prices, actual transfer of
products to the customer after fulfilling certain formalities and after sales services.

c) Market research: It involves in collection of data related to product demand and

performance by research and analysis of market.

III. Financial management:

Financial management deals with managerial activities related to procurement and utilization
of fund for business purpose. Its sub areas are as follows

a) Financial accounting: It relates to record keeping of various financial transactions their

classification and preparation of financial statements to show the financial position of the
organization.

b) Management accounting: It deals with analysis and interpretation of financial record so that
management can take certain decisions on investment plans, return to investors and dividend
policy.
c) Taxation: This area deals with various direct and indirect taxes which organization has to
pay. d) Costing: Costing deals with recording of costs, their classification, analysis and cost
control.

IV. Human Resource Management:

Human Resource Management is the phase of management which deals with effective use and
control of manpower. Following are the sub areas of Personnel management

a) Personnel planning: This deals with preparation inventory of availabl manpower and ctual
requirement of workers in organization.

b) Recruitment and selection: This deals with hiring and employing human being for various
positions as required..

c) Training and development: Training and development deals with process. of making the
employees more efficient and effective by arranging training programs. It helps in making
team of competent employees which work for growth of organization.

d) Wage administration: It deals in job evaluation, merit rating of jobs and making wage and
incentive policy for employees.

e) Industrial relation: It deals with maintenance of overall employee relation, providing good
working conditions and welfare services to employees.

5. What are the objectives of planning?

Planning in any organisation serves to realise the following objectives.

(i) Reduces uncertainty: The future is uncertain, uncertainties are predicted through
forecasting. Planning provides necessary provision to face the uncertainties.

(ii) Ensures co-operation and co-ordination: Planning brings about co-operation and co-
ordination among various departments of the organisation. Planning also avoids duplication of
work.
(iii) Economy in Operation: Planning selects the best available alternative which will produce
the best results at minimum costs.

(iv) Achieving the set objectives: Planning activities are aimed at achieving the objectives of
the enterprise. timely achievement of objectives is possible only. through effective planning.

(v) Reduces competition: The existence of competition enables the enterprise to get a chance
for growth. However, stiff competition should be avoided. It is possible to reduce competition
through planning.

(vi) Focuses on achieving the objectives: Planning helps in achieving the objectives of the
organization. It helps in deciding in advance the manner in which the work should take place.
Hence, it helps in achieving the objectives in a smooth and efficient manner.

(vii) To avoid inconsistency in efforts: Planning avoids inconsistency in efforts and also avoids
possible frictions and duplications. It ensures economy in business operations.

(viii) To bring unity of purpose and direction: Planning brings unity of purpose and direction
before the entire organisation as it is for achieving certain well defined goals. Planning diverts
all resources in one direction for achieving well defined objectives.

6. What is the Planning Process? OR What is planning? Discuss various steps in Planning.

Planning is concerned with establishing a predetermined course of action and is concerned

with establishment of objectives to be achieved in future. Planning is a integrated process
which involves choosing from the alternatives; the best course of action.

Steps in Planning

(i) Awareness of opportunities and problems -The first step is that getting aware of the
uncompleted business opportunities and problems that may arise in future.

(ii) Collecting and analyzing information - The next process is to collect adequate datas and
information relating to planning and analyse two cause effect relationship.

(iii) Determination of objectives - Analysing of information collected will help in determining

the objectives of the enterprise. Objectives should be for the whole organization and should
be then broken down to department or section-wise. They should be clear-cut and should
show the end where the planning should reach.

(iv) Determining planning premises and constraints - Uncontrollable and controllable factors
in the external and internal environment should be analysed along with the constraints faced
by the enterprise and their extent of their influence on the plans. The plans should be
formulated based on the environmental factors and constraints prevailing.

(v) Alternative course of action - The next step could be to find out the alternative course of
action for the plans. All alternative course of action should be found out to workout a plan for
achieving the desired objective.

(vi) Evaluation of all alternative course of action - There should be evaluation of all alternative
course of action to select the best course based on cost, speed etc.

(vii) Formulate secondary plans- The management should always formulate secondary plans
to support the basic plan. Without the secondary plan, the basic plan which is prepared for the
whole enterprise cannot be effectively operated.

(viii) Successful implementation and execution of plans- For the successful Implementation
and execution of plans the co-operation and participation of the employees in the planning
process is very much needed.

(ix) Follow-up action - Follow-up action should be undertaken for the plans to see whether the
plans are proceeding along right lines. There should be a system of continuous evaluation and
appropriate of plans.

7. Limitation of Management
 1.The human behavior is most uncertain and it is not possible to predict how man will reac
into a particular policy decision. It is not possible to formulate definite principle.
— Uniform principles, rules and policies cannot be laid down for all type of organization
However every unit and every human group has different problem, techniques, objectives
characteristics etc. hence every organizations has to work out and adopt its own peculia
methods of managing its own affairs.
— It is still a developing science and its theories have not yet received universal acceptance.
— Management has not been able to develop systematically, due to human element involved a
its every step and every aspect.

8. Objectives of M.B.O

1) MBO is new philosophy in management. It aims at achieving organizational objectives with

support of co-operation if entire manpower is available in business. It aims at involvement of
all employees with effective communication.

2) In MBO effective participation of superior & sub-ordinates is necessary. Both have to work
together. They have to set objectives jointly. Co-operation is the key of success in MBO
process.

3) In MBO setting of goals is a joint activity. Goals are never imposed forcefully to anyone.
They are decided by both parties.

4) In MBO efforts are made to achieve the results by giving reasonable freedom to lower level
management. There is mutual understanding between superior &sub ordinates while
achieving objectives.

9. What do you mean by decentralization?[u-3]

Decentralisation is a process by which the management allows the decisions to be taken at the
lower levels itself. The thority and responsibility determines the extent of decentralisation.
10. Briefly compare line organization with line and staff organization.

The differences between line organization and line and staff organization are as follows:

Line and Staff Organization

Line Organization

1.Line managers are generalists 1. There are experts known as staff. to

advise and assist the line officials
2. There is strict discipline. 2. There is loose discipline.

3.It is not based upon planned 3. It is based upon planned

specialization specialization
4. It is suitable for small scale 4. It is suitable for medium scale
operations. operators.

5. It is economical. 5. It is slightly economical..

11. Analyze the merits and demerits of centralization.

Merits of Centralization:

a.Speed in decision making: It promotes speed in decision making and avoided confusion.

b. Formality in management: It has a formality in management.

c. Good process: It is a good process by which authority is withheld.

d. Right philosophy: Centralization is the right philosophy of management.

e. Equality of behavior: By implementing centralization, one of the outcomes would result in

equality of behavior that guarantees unvarying judgment and standardized progression.

f. Unbiased: It helps in unbiased allocation of work.

g. More structure: There is more structure and more organization within the corporation.
Demerits of centralization:

h. Loss of control: The principal problem of centralization with large organization) is loss of
control.

I. Cost: Cost of centralization is high.

j. Conflict: To make conflict between the top management and lower

k. Big organization: It cannot run a big organization.

l. Too much responsibility: It may lead to too much responsibility over one or two regional
managers.

m. Demoralization: It may lead to demoralization of the branch managers.

12.Explain the concepts of organization

There are two types of concepts.

1. Static Concept:
Under static concept the term ‘organization’ is used as a structure, an entity or a
network of specified relationship. In this sense, organization is a group of people bound
together in a formal relationship to achieve common objectives. It lays emphasis on
position and not on individuals.

2. Dynamic Concept:
Under dynamic concept, the term ‘organization’ is used as a process of an on-going
activity. In this sense, organization is a process of organising work, people and the
systems. It is concerned with the process of determining activities which may be
necessary for achieving an objective and arranging them in suitable groups so as to be
assigned to individuals. It considers organization as an open adoptive system and not
as a closed system. Dynamic concept lays emphasis on individuals and considers
organization as a continuous process.
13. Explain the concepts of Staffing
Steps concepts

Once the organizational goals are set, the plans are prepared and organisation is
appropriately structured to pave the path for achievement of the set goals. The next
step is to provide appropriate personnel to fill in the various positions created by the
organizational structure. The process putting people to jobs is termed as staffing.
Staffing, the management function involves appointing appropriate personnel,
developing them to meet organizational needs and ensuring that they are a satisfied
and happy workforce.

Staffing is defined as a managerial function of filling and keeping filled the positions in
the organizational structure. The personnel appointed are a combination of permanent
employees, daily workers, consultants, contract employees etc.

Staffing includes:
1. Identifying the requirement of workforce and its planning.

2. Recruitment and selection of appropriate personnel for new jobs or for positions
which may arise as a result of existing employees leaving the organization

3. Planning adequate training for development and growth of workforce.

4. Deciding on compensation, promotion and performance appraisals for the

workforce.

14. Concept of Delegation of Authority:

Delegation of authority could be defined as follows:
When, out of the total authority, held by a superior, a portion thereof is passed on by
the superior to a subordinate to enable the latter to perform some job on behalf of the
former, for organizational purposes; it is known as delegation of authority.

(i) No manager can delegate his total authority to a subordinate. He can pass on only a
portion of his authority to the subordinate. In case otherwise, his own status would
disappear; and that is not possible in or allowed by management theory. For example,
in case of the Indian Administration, the Prime Minister has virtually all the powers for
the administration of the Indian Economy.

However, certain emergency powers are reserved for the President of India; who
represents the uppermost link in the management hierarchy of the nation.

Similarly, in the case of a corporate enterprise, the Board of Directors are clothed with
substantial powers for the management of the company; but there are certain matters
which can be decided by the Board, only after seeking approval of the Body of Members
the latter being the uppermost link in the management hierarchy of the company

(ii) No manager can give that authority to a subordinate, which the former himself does
not possess. This doctrine is based on the legal maxim of “nemo dat quod non
habet” which means that no one can give to others what he himself has not got.
(iii) The idea behind delegation of authority is that of representation of the superior by
the subordinate i.e. the subordinate, after delegation of authority by the superior, is
supposed to behave and act in a manner, in which the superior, himself, would have
behaved and acted.

(iv) Delegation of authority is made by a superior to a subordinate, only for

organisational purposes; and not for the fulfillment of the personal purposes of the
superior. In the latter case, delegation of authority would amount to a misuse of
authority by the superior; and would result in gross corruption.

(v) Delegation of authority does not imply a reduction in the power of the superior. It is
something like knowledge which is still retained by a teacher ever after imparting it to
pupils.
15. Explain the factors influencing the organization structure

The organization function is the immediate logical function after planning. To achieve the
objectives set in the plan, somebody should work and should do the right work. The organising
function makes the people to work. The function "involves managers in decisions which result
in a system of specialised coordinated jobs."Hence the following factors determine the
organization structure. (This is based on four aspects given in the box.)

1. Size of the unit.

(a) Capital employed.

(b) Development of Science, and Technology.

(c) Men employed.

(d) Nature of activity.

2. Job design.

3. Grouping of activities.

4. Span of control.

5. Delegation of authority.

A.Size of the Unit:

Size indicates the scale of operation. Normally there are three scales of operation, viz., small,
medium and large. Size is an important factor governing cost, efficiency and profitability of a
business enterprise. Before any business or non-business enterprise is started, the organisers
will have to decide the most profitable and viable size of the unit. Optimum or the best size is
a dynamic concept and it changes with the development of science and technology. Therefore,
technology is one factor which determines the size and the organization structure. To
introduce new technology, in business enterprise, the activity has to be expanded and hence
the structure changes.

The size of the organization is also determined by the capital employed in the unit. There may
be heavy capital outlay but it may be less labour intensive. In such cases the size will be small
as authority relation will be less. However, capital outlay is one factor which determines the
size of the organization.

Another important factor which determines the size of the organization is "men employed." If
more men are employed there will be more level of management and more authority
relationships. If men employed are less, the size of the organization will be less and less levels
of management and authority relationships.

The nature of business unit also determines the size and organization structure. If it is capital
goods industry with huge capital outlay, the organization structure will be complex in nature.
Consumer goods industries will have more authority relationships in marketing division and
less in production and finance line. Thus the nature of activity also determines the
organization structure.

2. Job Design.

The bricks that develop an organization structure are jobs. What are the jobs to be done in an
organization has to be decided by the top brass. Job design is the first managerial decision of
the organization structure. Jobs in a task have to be specified as one person cannot perform a
task. It is a team work. Job in each task is to be specified and assigned. What an individual has
to do to contribute to the overall tasks and objectives has to be decided. Therefore the
fundamental factor, which determines the organization structure is "Job designing" and
"numbering" them. These numbers decide the size of the organization.

3. Grouping of Activities.

The designed jobs have to be formed into groups according to the nature of activity. Grouping
of activities are essential to achieve coordination. Each group is termed as "DEPARTMENT."
Departmentation is another factor which determines the organisation structure. Thus in each
business organisation we observe departments like Marketing Department, Production
Department, Finance Department etc which discharge their functions. In each department we
find authority relationships like Finance Manager, Assistant Finance Section Officer, Finance
Supervisor etc., each assigned with specific job and responsibility to perform. There will be
accountability to higher ups also.
4. Span of Control.

Another factor that determines the organisation structure is the number of persons to be
managed by each manager. This is called "Span of management." Depending upon the nature
of organisation some departments will be big in size and some will be small. Therefore, each
manager should be assigned with manageable tasks and personnel. If the tasks are many in a
department, there should be splitting the tasks into number of divisions and lower levels are
to be created. All this takes place depending upon resources and personnel available.

5. Delegation of Authority.

Authority relationship also decides the organization structure. If the span is more, there will
be more authority levels and top management has to delegate authority to each level.
Authority, means "the right to make decisions without having to obtain approval from a higher
up." In an organization structure, if the span and levels of management are more, the
delegation of authority will be more and there will be decentralization of authority for smooth
functioning of tasks. If the span is narrow, less levels and more centralization of authority.
Thus delegation of authority decides the organization structure.