©️ Saurabh

2021
2. (a) Define partnership business.

Ans->

• A partnership is a kind of business where a formal agreement between two or more people
is made who agree to be the co-owners, distribute responsibilities for running an
organization and share the income or losses that the business generates. E.g. Maruti Suzuki
Features of Partnership:

Following are the few features of a partnership:

1. Agreement between Partners: It is an association of two or more individuals, and a

partnership arises from an agreement or a contract. The agreement (accord) becomes the
basis of the association between the partners. Such an agreement is in the written form.
2. Two or More Persons: In order to manifest a partnership, there should be at least two (2)
persons possessing a common goal. To put it in other words, the minimal number of
partners in an enterprise can be two (2). However, there is a constraint on their maximum
number of people.
3. Sharing of Profit: Another significant component of the partnership is, the accord
between partners has to share gains and losses of a trading concern. However, the definition
held in the Partnership Act elucidates – partnership as an association between people who
have consented to share the gains of a business, the sharing of loss is implicit. Hence,
sharing of gains and losses is vital.

4. Unlimited Liability: Every partner in a partnership has unlimited liability.

Advantages of Partnership:

• Easy Formation – An agreement can be made oral or printed as an agreement to enter as a

partner and establish a firm.

• Large Resources – Unlike sole proprietor where every contribution is made by one person, in
partnership, partners of the firm can contribute more capital and other resources as
required.

• Flexibility – The partners can initiate any changes if they think it is required to meet the
desired result or change circumstances.

• Sharing Risk – All loss incurred by the firm is equally distributed amongst each partner.

• Combination of different skills – The partnership firm has the advantage of knowledge, skill,
experience and talents of different partners.

What are 3 disadvantages of a partnership?

The following are the disadvantages of a partnership:

• Unlimited liability
• Risk of disagreement between partners
• Instability of the partnership
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(b) What are the advantages of sole proprietorship business?

Ans->
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(c) How will you differentiate a public and a private company?

Ans->

BASIS FOR
PRIVATE LIMITED COMPANY PUBLIC LIMITED COMPANY
COMPARISON

Meaning Private Limited Company refers to the Public Limited Company implies a
company which is not listed on a stock company that is listed on a recognized
exchange and the shares are held stock exchange and whose shares are
privately by the members concerned. traded openly by the public.

Minimum 2 7
number of
members

Maximum 200, except in case of one person Unlimited

number of company
members

Minimum 2 3
number of
directors

Articles of It must frame its own articles of It can frame its own articles of
Association association. association or adopt Table F.

Transfer of The shares of a private company are not The shares of a public company
Shares freely transferable, as there are are freely transferable, i.e. freely
restrictions in Articles of Association. traded in an open market called a stock
exchange.

Public Issue of shares or debentures to the It can invite the public to subscribe to
Subscription public is prohibited. its shares or debentures.
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3. (a) What are the functions of a manager?

Ans->
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(b) For which level of management ‘Human relation skill’ is required? Give your opinion

Ans->

• Top management. They require more conceptual skills followed by human skills and most
top : conceptual
minor technical skills for top-level management like Directors or CEOs. More abstract
thinking is vital; hence conceptual skills are the most needed.

• Middle management. Human skills are required most at this level, followed by conceptual
middle : human and technical skills. This level requires one to deal more with employees. Middle
management includes general line managers.

• First-line management. This part requires more technical skills, followed by human and
firsrt-line : technical conceptual skills. Technical skills are essential for this management level to mentor and build
such skills in employees. First-line managers include sales, accounting, and even service
managers.

Human skills are vital at all management levels but most importantly in middle-level management.
Human skills are crucial since working with people is the most critical aspect for these managers. An
organization consists of human resources as one of the functional areas. Those within the HR
department require human relational skills. As with other managers, they also require technical and
conceptual skills. Managers from different practical sections also depend on human skills to
complete their objectives.

The essence of human relations skills is to motivate employees to achieve objectives, manage a team
of employees, and deal with clients and stakeholders. Human skills often require attention and
communication with people, the reason why they are also called interpersonal skills. Human skills
can be written, relational, or listening skills.
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(c) Discuss briefly the contribution made by Fredrick Winslow Taylor in the field of scientific
management.

Ans->
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4. (a) What are steps of organising process?

Ans->

The following steps are to be undertaken in the organising process.

(i) Identification and Division of Work: The first step in the process of organising involves identifying
and dividing the work that has to be done in accordance with previously determined plans. Work is
divided into manageable tasks so that duplication can be avoided and workload can be shared
among employees.

(ii) Departmentalisation: Once, work has been divided into small and manageable activities, then
those activities which are similar in nature, are grouped together. This process is called
departmentalisation. Departments can be created on the basis of products, functions and territory.

(iii) Assignment of Duties: Once the departments are created, each department is placed under the
charge of an individual, called departmental head. Then, each job is allocated to an individual,
according to his knowledge and skill. There should be a proper match between the nature of jobs
and the ability of an individual.

(iv) Establishing Reporting Relationships: In the organisation, each employee has some authority as
well as responsibility. It is necessary that every individual must know whom he has to take orders
from and to whom he is answerable. This creates superior subordinate hierarchy and helps in
coordinating various activities in the organisation.
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(b) Explain why an organisation would choose to be decentralised.

Ans->

Decentralisation refers to the dispersal of the decision making power among the middle and lower
level managers. It is an optional policy as it depends on the organisation how much power the top
level management wants to delegate to the lower levels. An organisation may choose to be
centralised or decentralised depending on the objectives and the decisions of the top level
managers. Following are a few factors that explain why an organisation would choose to be
decentralised.

(i) Initiative: Decentralisation allows a sense of freedom to the lower managerial levels as it lets
them take their own decisions. It gives them a higher degree of autonomy to take initiative.
Moreover, it promotes a feeling of self-confidence and self-reliance among them. When the power is
delegated to lower level managers, they learn to face new challenges and find solutions for the
problems themselves. This helps in spotting those potential managers who can take the needed
initiative.

(ii) Managerial Competence: Once the authority is delegated to the managers at lower levels, it
provides them the needed opportunity to develop themselves. It provides them with the
opportunity to gain experience and thereby, develop the skills and knowledge to face new
challenges. Decentralisation gives them a chance to prove their talent and get ready for higher
positions. It also helps in pre-identification of the future managers who are well-equipped with the
necessary talent required to deal with managerial problems.

(iii) Control: Decentralisation helps in evaluating the performance of the organisation in a better
manner. Decentralisation helps in analysing and evaluating the performances of each department
separately. Thus, the extent of achievement of each department and their contribution to the
overall objectives of the organisation can be easily can be easily evaluated.

(iv) Active Decision Making: Since through decentralisation, the authority of making decisions is
passed on to lower levels of management, decisions are taken quickly and timely. This is because the
decision can be taken at the nearest points of action which thereby, helps in easy adjudication of the
problems.

(v) Growth: Managerial efficiency is developed to a large extent with the help of decentralisation.
Decentralisation results in greater authority to the lower level managers. It promotes competition
among the managers of various departments. In a race to outperform each other, they give their
best shot and thereby, increase the overall productivity and efficiency. The organisation gains from
the increased overall performance and thereby, grows.

(vi) Reduced Workload of Top Managers: Delegation of authority provides freedom to top level
managers. It helps them in shifting the workload to their subordinates and gives them time to
concentrate on more important and higher priority work such as policy decisions. Moreover, direct
supervision by the top level management is decreased, as the subordinates are given the rights to
take the decisions by their own.
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(c) Why is delegation considered essential for effective organising?

Ans->

Delegation implies transfer of authority, from a superior to his subordinate. It is an essential concept
for effective organisation as it lowers the burden on the manager and thereby, facilitates the
manager to focus on activities that command high priority. Also, the managers can extend his area of
operations once he delegates the work to subordinates. In addition to this, it provides the
subordinates with more opportunities for growth. It helps in efficient completion of tasks as the
subordinates can now show their skills and exercise initiative. The following points highlight the
importance of delegation in effective organising.

(i) Managerial Efficiency: Delegation of the work to the subordinates, help the managers to
concentrate on other areas of concern. With delegation of routine work to the subordinates, the
manger can focus on other high priority areas. Besides, it provides them the opportunity to explore
and innovate into new areas. For example, if the manager delegates the basic work to the
subordinate he can put his mind into exploring ways to improve efficiency.

(ii) Employee Proficiency: By delegating the work, managers empower his subordinates by providing
them opportunities to apply their skills. Herein, the subordinates get a chance to prove his abilities,
gain experience and develop his career. Thus, delegation in a way helps in preparing future
managers.

(iii) Motivation: Along with improving the managerial and employee efficiency, delegation provides
the employees with the psychological benefits. It acts as a motivational guide for the workers. It
imparts a feeling of mutual trust and commitment between the superior and subordinate. With
responsibility the employee gains confidence and he gets encouraged to give their best to the
organisation.

(iv) Growth: Delegation facilitates easy growth and expansion. Delegation helps in the preparation of
efficient and experienced mangers that can take up leading positions at times of growth of the
organisation. That is, workers trained and prepared through delegation contribute to the expansion
and growth of the organisation more efficiently.

(v) Hierarchical Structure: Delegation forms the basis of the hierarchical structure of an
organisation. It decides the superior-subordinate chain and determines who has to report to whom.
It clearly states down the reporting relationships which helps in smooth working of the organisation.

(vi) Coordination: Delegation promotes coordination of work. It reduces overlapping of work by

defining the reporting relationships. All the elements of delegation such as authority, responsibility
and accountability helps in providing a clear working relationship, thereby, increasing efficiency.
 GOAL
©️ Saurabh DISTRIBUTE 3
LEVEL
5. (a) Evaluate MBO as a performance appraisal technique.

Ans->

One well-regarded and widely used approach to performance appraisal is called management by
objectives (MBO). MBO is more than performance appraisal — it’s a construct for managing the
entire organization. Its breadth includes the organization’s vision, values, strategies, goals, and
performance measurement.
MBO begins with managers at the top of the company setting goals. Then managers and employees at
each successively lower level develop their own goals. Employees’ goals are designed to support the
goals of their own managers. In this way, the entire organization is linked together in the pursuit of
objectives.
The focus is on outcomes that are clear, specific, measurable, and supported by action plans,
benchmark dates, and deadlines. All aspects of the goal-setting process also apply to the employees’
personal and developmental goals, such as building their skills or knowledge base.
After employees meet with their managers to establish their goals and action plans, the employees
return to work newly energized and focused on specific short-term and longer-term targets.
Simultaneously, their managers monitor the employees’ performance, provide coaching and support,
remove barriers or help employees overcome them, and make adjustments and course corrections as
necessary. The employees’ performance and progress are clear, measured, documented, and
transparent every step of the way.
Employees are highly motivated through MBO because they’ve been able to actively participate in the
process of setting goals, instead of simply having the goals dumped on them. Their involvement in
this type of decision-making helps meet many of their higher-level needs for accomplishment,
achievement, recognition, and self-worth.
MBO brings a wide range of advantages to the appraisal process:
It helps to build relationships between managers and employees.
It fosters a comfortable climate in the workplace. MBO helps build an atmosphere of respect and trust
within a given department and beyond.
Because managers work directly with employees to identify and solve problems, MBO improves the
quality of decision-making and problem solving.
It’s fair. Employees are evaluated on the basis of their performance and attainment of goals, which is
regarded as fair and energizing.
It’s quick and easy. Performance evaluation forms associated with MBO are a breeze to complete.
Typically, they spell out each objective as established at the beginning of the cycle, and then provide a
space for the manager to summarize the results.
Some MBO forms also include a scale that asks for a numerical assessment of the employees’ success
in meeting their goals. These scales guide the managers in the rating process by including specific
descriptions of excellent, good, fair, and poor levels of goal attainment.
©️ Saurabh

(b) What are the ways of handling a situation of surplus manpower?

Ans->
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(c) Compare on the job and off the job training methods.

Ans->

1. The training method used to impart training to employees while he is at the workplace
performing the job is known as On-the-job training. Off-the-job training involves the training
of employees outside the job location.

2. On the job training has a practical approach, whereas off the job training is theoretical.

3. On the job training involves the hands-on experience of the trainees which is not with the
case of off the job training.

4. ‘On the job’ training involves learning by doing the task while ‘off the job’ training involves
learning by acquiring knowledge.

5. In on the job training, there is no work disruption as the training and production go hand in
hand. Conversely, in off the job training, the work is hampered because first of all training is
provided which is followed by the actual performance.

6. On-the-job training is carried out by the experienced employees. Unlike off-the-job training
which is provided by the experts.

7. On the job training is less expensive than off the job training.

8. On the job training is appropriate for manufacturing entities while off the job training is
suitable for non-manufacturing entities.
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6. (a) Mention the advantages of group decision making.

Ans->

Below pic is NOT the part of answer.

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(b) What are the basic elements of decision making according to Simon? Explain briefly.
Ans->

His model of decision-making has three stages:

Intelligence which deals with the problem identification and the data collection on the problem.

Design which deals with the generation of alternative solutions to the problem at hand.

Choice which is selecting the 'best' solution from amongst the alternative solutions using some
criterion.
©️ Saurabh
©️ Saurabh

(c) Justify how coordination is not a separate function of management.

Ans->
Co-ordination is the unification, integration, synchronization of the efforts of group members so as to provide
unity of action in the pursuit of common goals. It is a hidden force which binds all the other functions of
management.

According to Mooney and Reelay, “Co-ordination is orderly arrangement of group efforts to provide unity of
action in the pursuit of common goals”.

According to Charles Worth, “Co-ordination is the integration of several parts into an orderly hole to achieve
the purpose of understanding”.

Management seeks to achieve co-ordination through its basic functions of planning, organizing, staffing, posdc
directing and controlling. That is why, co-ordination is not a separate function of management because
achieving of harmony between individuals efforts towards achievement of group goals is a key to success of
management.

Co-ordination is the essence of management and is implicit and inherent in all functions of management.

Co-ordination is an integral element or ingredient of all the managerial functions as discussed below: -

a. Co-ordination through Planning - Planning facilitates co-ordination by integrating the various plans
through mutual discussion, exchange of ideas. e.g. - co-ordination between finance budget and
purchases budget.

b. Co-ordination through Organizing - Mooney considers co-ordination as the very essence of

organizing. In fact when a manager groups and assigns various activities to subordinates, and when he
creates department’s co-ordination uppermost in his mind.

c. Co-ordination through Staffing - A manager should bear in mind that the right no. of personnel in
various positions with right type of education and skills are taken which will ensure right men on the
right job.

d. Co-ordination through Directing - The purpose of giving orders, instructions & guidance to the
subordinates is served only when there is a harmony between superiors & subordinates.

e. Co-ordination through Controlling - Manager ensures that there should be co-ordination between
actual performance & standard performance to achieve organizational goals.

From above discussion, we can very much affirm that co-ordination is the very much essence of management.
It is required in each & every function and at each & every stage & therefore it cannot be separated.
©️ Saurabh

7. (a) Compare and contrast the stages of group development for permanent group and temporary
group with diagram.

Ans->

<<<<<<<<<<<<<<<<<<<<<NO ANSWER
©️ Saurabh

(b) What is the importance of communication for effective management?

Ans->

Communication may be defined as a process of exchanging ideas and information between two or
more persons to create mutual understanding.
Importance of communication are as follows:
(i) Acts as a basis of coordination Communication acts as a basis of coordination. It provides
coordination among departments, activities and persons in the organisation. Such coordination is
provided for explaining about organisational goals, the mode to their achievement and inter-
relationships between different individuals, etc.
(ii) Acts as a basis of decision-making The decisions made in an organisation depends largely on the
amount and quality of information available. On the basis of communication of relevant information,
one can take right decisions.
(iii) Increases managerial efficiency The employees must know clearly about their responsibilities
and authority, who will report to whom, what part of total job they are expected to perform and
what are their decision-making powers and this leads to smooth flow of communication.
(iv) Helps in the process of motivation and morale Motivation and morale of employees largely
depend upon the effectiveness of communication. Sharing of information with employees helps
management to secure their willing cooperation.
(v) Effective leadership Communication is the basis of leadership. By developing the skills of
communication, a manager can be a real leader of his subordinates. A good system of
communication brings them in close contact with each other and removes misunderstandings.
©️ Saurabh

8. (a) Evaluate the following factors in the context of hygiene theory of motivation-Salary and
incentives

Ans->

NOT Sure>>>>>>>>>>>>>>>

• Pay - The pay or salary structure should be appropriate and reasonable. It must be equal and
competitive to those in the same industry in the same domain.
• Incentives benefits - The employees should be offered health care plans (mediclaim),
benefits for the family members, employee help programmes, It should include flexible
working hours, breaks, vacation, etc.
©️ Saurabh

(b) Bring out the common points between Maslow’s hierarchy and Alderfer’s ERG theories of
motivation.

Ans->

There are some similarities as well as dissimilarities between Alderfer’s ERG theory and Maslow’s
theory of Need Hierarchy, which are as follows:

• Maslow’s theory and the ERG theory both seek to explain human motivation and how it
affects behavior.
• Both theories are rooted in the idea that there are basic needs that drive people to do
certain things and to behave in certain ways.
• Another similarity is that both theories have a hierarchical framework, with primitive
needs at the bottom, and more refined needs at the top.

<<<<<<<<<<<<<<Below pics NOT a part of the answer

©️ Saurabh
©️ Saurabh
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9. (a) As a manager how will you choose the leadership style for your subordinate to maximise
productivity?

Ans->

<<<<<REPEATED AFTER

<<<<<SUBJECTIVE
©️ Saurabh

(b) Examine McKinsey 7s model as a tool for internal analysis of an organization.

Ans-> st 4 hyk
“McKinsey 7s model is a tool that analyzes firm’s organizational design by looking at 7 key internal
elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify if
they are effectively aligned and allow organization to achieve its objectives.”

Understanding the tool

McKinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert Waterman
and Julien Philips with help from Richard Pascale and Anthony G. Athos. Since the introduction, the
model has been widely used by academics and practitioners and remains one of the most popular
strategic planning tools. It sought to present an emphasis on human resources (Soft S), rather than
the traditional mass production tangibles of capital, infrastructure and equipment, as a key to higher
organizational performance. The goal of the model was to show how 7 elements of the company:
Structure, Strategy, Skills, Staff, Style, Systems, and Shared values, can be aligned together to
achieve effectiveness in a company. The key point of the model is that all the seven areas are
interconnected and a change in one area requires change in the rest of a firm for it to function
effectively.

Below you can find the McKinsey model, which represents the connections between seven areas and
A divides them into ‘Soft Ss’ and ‘Hard Ss’. The shape of the model emphasizes interconnectedness
of the elements.

The model can be applied to many situations and is a valuable tool when organizational design is at
question.

The most common uses of the framework are:

• To facilitate organizational change.

©️ Saurabh

• To help implement new strategy.

• To identify how each area may change in the future.

• To facilitate the merger of organizations.

a) 7s factors

In McKinsey model, the seven areas of organization are divided into the ‘soft’ and ‘hard’ areas.
Strategy, structure and systems are hard elements that are much easier to identify and manage
when compared to soft elements. On the other hand, soft areas, although harder to manage, are the
foundation of the organization and are more likely to create the sustained competitive advantage.

• Strategy is a plan developed by a firm to achieve sustained competitive advantage and successfully
compete in the market. What does a well-aligned strategy mean in 7s McKinsey model? In general, a
sound strategy is the one that is clearly articulated, is long-term, helps to achieve competitive
advantage and is reinforced by strong vision, mission and values. But it is hard to tell if such strategy
is well-aligned with other elements when analyzed alone. So the key in 7s model is not to look at
your company to find the great strategy, structure, systems and etc. but to look if its aligned with
other elements. For example, short-term strategy is usually a poor choice for a company but if its
aligned with other 6 elements, then it may provide strong results.

• Structure represents the way business divisions and units are organized and includes the
information of who is accountable to whom. In other words, structure is the organizational chart of
the firm. It is also one of the most visible and easy to change elements of the framework.

• Systems are the processes and procedures of the company, which reveal business’ daily activities
and how decisions are made. Systems are the area of the firm that determines how business is done
and it should be the main focus for managers during organizational change.

• Skills are the abilities that firm’s employees perform very well. They also include capabilities and
competences. During organizational change, the question often arises of what skills the company
will really need to reinforce its new strategy or new structure.

• Staff element is concerned with what type and how many employees an organization will need and
how they will be recruited, trained, motivated and rewarded.

• Style represents the way the company is managed by top-level managers, how they interact, what
actions do they take and their symbolic value. In other words, it is the management style of
company’s leaders.

• Shared Values are at the core of McKinsey 7s model. They are the norms and standards that guide
employee behavior and company actions and thus, are the foundation of every organization.
©️ Saurabh
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2019
2. (a) Is management an art or science? Explain. (VVI-Repeated many times)

Ans->

NOT SURE>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
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(b) Discuss the major managerial practices that emerged from F.W. Taylor’s approach to
management.

Ans->

<<<<<<Repeated
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3. (a) Give an abstract structure of an MNC with respect to its hierarchy.

Ans->

The typical designations in a pyramid-style organisation structure, belong to either top management,
middle management or lower-level management. Some common designations under each category
are:

• Top management: chairperson, president, CEO, executive director, managing director, COO,
CFO and vice-president

• Middle management: general manager, plant manager, area manager, director, branch
manager and senior manager

• Lower management: supervisor, manager, assistant manager, section head and team lead

NOT SURE
©️ Saurabh

(b) Highlight the finding of Hawthorne studies conducted by Elton Mayo.

Ans->
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4a) What are the steps essential to make decision making process more effective?

Ans->

1. Identify the decision to be made

• What is the problem on hand

• What is the objective to be achieved

• How the decision will impact people or the organization

• Urgency and criticality of the decision

2. Gather relevant information

It is important to gather all relevant information about the decision to be made with regards to
above mentioned points. It will include identifying all various parties, stakeholders who will part of
the decision, how the decision will be impact different groups or individuals or the organization etc.

3. Identify the options

We need to identify clearly all the available alternative options, paths or actions for the decision to
be made.

4. Evaluate the evidence

Evaluating all the options with their pros and cons needs to be carried out

5. Choose among alternatives

Choose the best alternative based on the above careful analysis of all the alternatives.

6. Implement the chosen alternative

Implement the actions associated with the alternative path or option being selected.

7. Analyse the results

We need to analyse the outcome achieved after the implementation of the actions selected in the
above step.

Some of the tools and techniques which are used in the process of decision making includes but not
limited to are market research, cost-benefit analysis, swot analysis, decision tree, T-chart, Pareto
analysis, 5-why’s analysis etc.
©️ Saurabh

(b) Are the two terms Selection and Recruitment similar or do they diverge significantly from each
other in managerial practices? Give your views. What do you mean by organizing principle?

Ans->

Difference between Recruitment and Selection

S.No. Recruitment Selection

A process of actively searching and hiring

applicants for a job role is known as A process of choosing suitable applicants from the
1 recruitment. shortlisted candidates is known as selection.

It is an activity to reduce the candidate pool until

2 It is an activity to boost the candidate pool. we find the ideal candidate.

It allows the candidates to apply for a vacant This process allows the HR to proceed further with
3 place. suitable applicants, and reject the remaining.

In recruitment, we advertise the job role and Selection is the process in which we finally appoint
4 encourage the candidates to apply. the candidate for the particular job role.

5 It is the first step towards the hiring process. It is the second step towards the hiring process.

6 This process is economical. The process is comparatively expensive.

There is no contractual relation in the Selection involves a contractual relation between

7 recruitment process. the organisation and employee.

Organizing principles are directives for the design or arrangement of a collection of resources that
are ideally expressed in a way that does not assume any particular implementation or realization
©️ Saurabh

5. Discuss any 3 methods of performance appraisal-

(i) Ranking (ii) Graphic rating (iii) BARS (iv) MBO.

Ans->

Ranking Method:

It is the oldest and simplest formal systematic method of performance appraisal in which employee
is compared with all others for the purpose of placing order of worth. The employees are ranked
from the highest to the lowest or from the best to the worst.

In doing this the employee who is the highest on the characteristic being measured and also the one
who is L lowest, are indicated. Then, the next highest and the next lowest between next highest and
lowest until all the employees to be rated have been ranked. Thus, if there are ten employees to be
appraised, there will be ten ranks from 1 to 10.

However, the greatest limitations of this appraisal method are that:

(i) It does not tell that how much better or worse one is than another,

(ii) The task of ranking individuals is difficult when a large number of employees are rated, and

(iii) It is very difficult to compare one individual with others having varying behavioural traits. To
remedy these defects, the paired comparison method of performance appraisal has been evolved.

Graphic Rating Scale Method: qqjd

The graphic rating scale is one of the most popular and simplest techniques for appraising
performance. It is also known as linear rating scale. In this method, the printed appraisal form is
used to appraise each employee.

The form lists traits (such as quality and reliability) and a range of job performance characteristics
(from unsatisfactory to outstanding) for each trait. The rating is done on the basis of points on the
continuum. The common practice is to follow five points scale.

The rater rates each appraisee by checking the score that best describes his or her performance for
each trait all assigned values for the traits are then totaled. Figure 28-3 shows a typical graphic rating
scale.
©️ Saurabh

This method is good for measuring various job behaviours of an employee. However, it is also
subjected to rater’s bias while rating employee’s behaviour at job. Occurrence of ambiguity in
design- mg the graphic scale results in bias in appraising employee’s performance.

Behaviorally anchored rating scale definition (BARS)

Behaviorally anchored rating scale is a measuring system which rates employees or trainees
according to their performance and specific behavioral patterns.

BARS is designed to bring the benefits of both quantitative and qualitative data to employee
appraisal process as it mechanism combines the benefits of narratives, critical incidents and
quantified ratings.

How to measure BARS

BARS is designed to bring the benefits of both qualitative and quantitative data to the employee
appraisal process by comparing an individual’s performance against specific examples of behaviour
which are then categorized and appointed a numerical value used as the basis for rating
performance.

The first step is to write CIT (Critical Incident Techniques) which compares an individual’s
performance against specific examples of behavior that are tied to numerical ratings of 5 to 9.

Then the employer needs to develop performance dimensions which have to rechecked. Next step
envolves scaling the critical incidents which leads to developing the final instrument.

Benefits of BARS

Behaviorally anchored rating scale can help improve organization's performance beacuse they:

• Are reliable as the appraisals remain the same even when different raters rate them.

• Have clear standards upon which an employee is appraised.

©️ Saurabh

• Are very accurate in the appraisal method and therefore increase reliability.

• Give an objective feedback.

Management by Objectives (MBO)----<<<<<<<<<<<Repeated Before……

©️ Saurabh

6. (a) Point out any two underlying areas of differences between a tall and a flat level
organization.

Ans->

Tall vs. flat organization structure

Some differences between tall and flat organizational structures include:

Typical business type

Small business owners typically use a flat business structure when organizing their companies. Flat
organizational structures can help a business maintain clear communication, keep a safe budget and
adhere to unique standards, such as lenient management. Owners of large businesses usually use
tall organizational structures. Since they can use multiple employees for each section of the
management process, a tall organizational structure allows for closer management and a strict
compliance standard. Larger businesses that have multiple departments may require a tall
organizational structure in order to manage assets.

Difference in hierarchy

Flat organizational structures have smaller hierarchal setups than tall organizational structures. Flat
organizations only have a few managers to help organize business affairs, so they have less
overseeing power and a smaller chain of command within the system. They may have three levels of
power at the most.

Tall organizational structures have more employees, responsibilities and more structure within their
hierarchy. They may have three or more levels of power within the structure, comprising
supervisors, upper management and employees.

Customer communication

Flat organizational structures may have more customer communication than tall organizations. This
is because flat organizations have more employees who communicate with customers due to a
shorter hierarchal system. In a system with only managers, employees and a CEO, many managers
and employees may interact with a customer and translate information to the CEO. In a tall
organizational structure, however, there are more employees in management positions, which
means there may be less communication with customers.

Management strictness

Because a flat organizational structure has less management staff, the structure has less control over
policies, codes and processes. Additionally, businesses, such as stores and restaurants that choose a
flat organizational structure, may have less management strictness due to the nature of the
organization. Tall organizations, however, tend to have more management strictness because of the
high number of managers, supervisors and employees needed to form the business.
©️ Saurabh

(b) Is it always advantageous to apply a centralised framework in an organization? Discuss your

views in brief.

Ans->

Advantages of Centralisation

The merits of centralisation and decentralisation in management have been discussed by eminent
economists for several decades. There are inherent advantages and disadvantages to both ideas. The
primary elements in favour of centralisation are the following.

1. There is greater uniformity in policy and procedures when an organisation is centralised.

Several different departments have to work in conformity. There is a top-down approach in
decision-making which creates no room for confusion.

2. Centralisation has been effective in saving costs and unnecessary overheads since any
overlapping or duplicate activities are eliminated. Given that cost-saving is one of the many
targets of any organisation and that various companies approach the principles of
management centralisation and decentralisation differently, it is a great advantage.

3. The control on operations is outstanding in centralised entities because the mechanism of

decision-making is in a single core. This reduces internal wastage and jettisons unwarranted
activities.

4. Lastly, centralised entities can recognise outstanding talent and enable preferred
promotions or other sops to deserving employees. In decentralised companies, merit may go
unrecognised

Disadvantages of Centralisation

1. Bureaucratic leadership

Centralized management resembles a dictatorial form of leadership where employees are only
expected to deliver results according to what the top executives assign them. Employees are unable
to contribute to the decision-making process of the organization, and they are merely implementers
of decisions made at a higher level.

When the employees face difficulties in implementing some of the decisions, the executives will not
understand because they are only decision-makers and not implementers of the decisions. The
result of such actions is a decline in performance because the employees lack the motivation to
implement decisions taken by top-level managers without the input of lower-level employees.

2. Remote control

The organization’s executives are under tremendous pressure to formulate decisions for the
organization, and they lack control over the implementation process. The failure of executives to
decentralize the decision-making process adds a lot of work to their desks.
©️ Saurabh

The executives suffer from a lack of time to supervise the implementation of the decisions. This
leads to reluctance on the part of employees. Therefore, the executives may end up making too
many decisions that are either poorly implemented or ignored by the employees.

3. Delays in work

Centralization results in delays in work as records are sent to and from the head office. Employees
rely on the information communicated to them from the top, and there will be a loss in man-hours if
there are delays in relaying the records. This means that the employees will be less productive if
they need to wait long periods to get guidance on their next projects.

4. Lack of employee loyalty

Employees become loyal to an organization when they are allowed personal initiatives in the work
they do. They can introduce their creativity and suggest ways of performing certain tasks. However,
in centralization, there is no initiative in work because employees perform tasks conceptualized by
top executives. This limits their creativity and loyalty to the organization due to the rigidity of the
work.
©️ Saurabh

7. (a) How will you differentiate between vertical and horizontal organization structure?

Ans->

1. Who makes decisions

Decision makers vary in each company and organizational structure. However, in vertical
organizational structures, it's often only the highest level of managers who have the authority to
make decisions. Conversely, horizontal organizational structures often empower employees to make
decisions about certain things, and they may rarely require manager approval.

Related: Creating Organizational Charts of Employees

2. Number of managers

Different organizational structures may have different levels and types of employees. Vertical
structures often have many managers. These structures include middle-level managers and upper-
level managers. Horizontal structures, however, often have a few managers with many autonomous
employees.

Related: What Is a Chain of Command? (Definition and Explanation)

3. Level of employee input

Different organizational structures embrace different levels of employee input. Horizontal

organizational structures encourage employees to share their ideas or suggest ways to improve
processes. Some organizations allow employees to implement changes without authorization from
managers. However, vertical organizational structures rarely ask for input from employees,
expecting employees to follow orders from their managers without objecting to them.

4. Flow of communication

Communication in vertical structures is often slow and only between department leaders or
managers. The layers of middle management may slow communication or lead to
miscommunication, which may slow progress on projects. Communication in horizontal structures is
often more free-flowing as employees can talk to each other as much as they want. This may help
improve productivity and efficiency.

Related: 7 Common Communication Problems and How To Address Them

5. Level of efficiency

Vertical organizational structures often have complex approval processes which can be slow and
inefficient. Employees usually complete work, which their direct managers must approve before
upper managers approve them. However, horizontal organizational structures often empower
employees. Companies with these structures are often more efficient because there are few
approval processes or none at all.

Related: How To Calculate Work Efficiency in 6 Steps (With Examples)

6. Level of creativity

Horizontal structures often allow employees more freedom. They can be creative and try new things.
Vertical structures, however, offer employees little to no autonomy and focus on strict processes.
©️ Saurabh

However, some companies now use a waterfall methodology within vertical structures, meaning
they encourage employees to be innovative or creative within their own departments.

7. Amount of collaboration

Different organizational structures have different levels and types of collaboration. Horizontal
organizational structures often encourage collaboration and allow it to happen organically. These
structures allow employees to try different things and collaborate with different departments.
Vertical organizational structures, however, often only have formal collaboration or meetings, and
employees often only collaborate with those in their own department.

Related: 9 Types of Collaboration You Can Use in the Workplace

8. Willingness to take risks

Horizontal structures are often more willing to take risks than vertical structures. Vertical
organizational structures may be more risk averse because of departments leaders or managers with
defensive stances to prevent potential failure. Conversely, horizontal structures encourage
brainstorming and alternative ways of thinking. These structures may see the potential benefits of
the risks rather than the potential failures.

9. Job satisfaction

Horizontal organizational structures often allow and empower employees to try new things. This
often helps increase employee engagement, leading to high job satisfaction rates. However,
employees who enjoy rules and process may prefer vertical organizational structures.

Read more: Defining Job Satisfaction

10. Amount of structure

Vertical organizational structures often have more structure than horizontal organizational
structures. Vertical structures have clearly defined roles with specific responsibilities for each
person, reducing the level of employee autonomy. Horizontal structures have less structure, often
providing employees with equal opportunities. However, this may result in a lack of guidance or lead
to internal conflict.
©️ Saurabh

(b) Do you think authority and responsibility differ significantly? Justify your views.

Ans->

<<<<<<<<<<<<<<Repeated(After)
©️ Saurabh

8. (a) How McGregor perceived the changes employee motivation and productivity in different
ways into their practices in his Theory X and Theory Y.

Ans->

<<<NOT SURE
©️ Saurabh

(b) Discuss the elements involved in Mc. Kinsey’s 7‘s in the context of organizational analysis.

Ans->

<<<<<<Repeated
©️ Saurabh

9. (a) Explain the process of communication in a business organization with the help of a diagram.

Ans->

NOT SURE>>>>>>>>

Communication is the process containing three elements viz. sender, message and receiver. These
three elements are essential to complete the communication process.

The working of communication process is shown in the diagram below:

The following steps are involved for completion of communication process:

1. Sender or communicator prepares the message neatly. He is the source where message is
generated. It is he who starts the communication process.

2. The message is to be encoded symbolically which is to be conveyed. This message is the idea came
into the mind of sender which he wanted to convey.

3. The message is to be transmitted through a method of communication the choice of which is to

be made. The message may be transmitted orally face to face, through messenger, through air or a
written note in the form of order, memo, leaflet etc. It is up to sender to make appropriate choice.

4. Medium of communication includes telephone, internet, through messenger, post, fax, E-mail,
etc. The choice of medium again depends on the sender.

5. Receiver or communicate is a person for whom message was sent by the sender or communicator.
Receiver after receiving the message must understand it in proper perspective then only the
purpose of communication will be fulfilled.

6. The receiver after decoding the message must act or take action as per instructions contained in
the message.

7. The last step is to take feedback. The feedback means the sender should know whether the
receiver has received the message and understood it. The confirmation regarding this is feedback.
The positive feedback is effective communication. With feedback the communication process is
complete.
©️ Saurabh

(b) State the major barriers to communication. Suggest the way to make communication effective.

Ans->

<<<<<<<<1st part REPEATED AFTER

Organizations keen on developing effective communication should adopt suitable measures to

overcome the barriers and improve communication effectiveness. Some such measures are
indicated below:
(i) Clarify the ideas before communication: The problem to be communicated to subordinates should
be clear in all its perspective to the executive himself.
(ii) Communicate according to the needs of the receiver: The level of understanding of the receiver
should be crystal clear to the communicator.
(iii) Consult others before communicating: Before actually communicating the message, it is better
to involve others in developing a plan for communication.
(iv) Be aware of languages, tone, and content of a message: The contents of the message, tone,
language used, the manner in which the message is to be communicated are the important
aspects of effective communication.
(v) Convey things of help and value to listeners: While conveying messages to others, it is better to
know the interests and needs of the people with whom you are communicating.
(vi) Ensure proper feedback: The communicator may ensure the success of communication by asking
questions regarding the message conveyed.
vii) Communicate for the present as well as future: The communication should aim at future goals of
the enterprise also along with existing commitments.
(viii) Follow-up communications: There should be regular follow-up and review of the
instructions given to subordinates.
(ix) Be a good listener: The manager should be a good listener. Patient and attentive listening
solves half of the problems.

comm 3 cl co
feedback lang listen
©️ Saurabh
©️ Saurabh

2018
2. (a) Define management. Very briefly describe the functions of a manager.

Ans->

<Second Part Repeated>

©️ Saurabh

(b) Mention any 3 principles given by Henri Fayol as a basis of administrative management with
providing suitable example of each.

Ans->
©️ Saurabh

1. Division of work:

It refers to dividing the work into different individuals. Fayol recommended that work of all kinds
must be divided and allocated as per competence, qualification, and experience of individuals.
According to Fayol, “Division of work intends to produce more and better work for the same effort.
Specialization is the most efficient way to use human effort.”

For example, a bank has several operations, like collection and payment of cash, issue of cheque
books, etc. All those activities are divided and allocated to a different person in the bank. This
method of doing work also improves their efficiency and makes them experts in their field.

7. Remuneration of Employees:

According to this principle, remuneration should be fair and satisfactory to both employees and the
organization. This principle leads to harmonious relations in the organization. Fair remuneration
should be determined based on government rules related to wages, financial position of the
organization, nature of work, and cost of living. Employees should be paid reasonable wages for
their service, which should provide them with a moderate standard of living.

For example, if an organisation earns higher profits, then it should share some of its part with the
employees in the form of bonus.

11. Equity:

According to this principle, there should not be any discrimination amongst the employees based on
religion, caste, language, or nationality. Equity ensures coordinated relations between superior and
subordinate. It leads to the smooth and successful working of the enterprise. It improves satisfaction
and motivation of the employee, creating relation between manager and employees.

For example, workers doing similar jobs in the same organization should be paid same wages
irrespective of their sex, caste, religion and language.

4. Unity of Command:

According to this principle, each subordinate should receive orders and be accountable to only the
superior. No person can serve several masters at the same time. If an employee gets orders from
two superiors at the same time, then the principle of unity of command is violated, and he will find it
very difficult to decide who he has to obey first. So, to avoid confusion, employees should receive an
order from one superior.

For example, there is a salesperson who is asked to clinch a deal with a buyer and he is allowed to
give a 12% discount
by the marketing manager. But the finance department tells him not to offer more than a 6%
discount. In this case, there is no unity of command, which will lead to confusion and delay.
©️ Saurabh

3. (a) Give a brief account of management functions.

Ans->
©️ Saurabh

(b) Enlist the managerial roles and narrate the decisional role.

Ans->

The ten management roles are:

1. Figurehead.

2. Leader.

3. Liaison.

4. Monitor.

5. Disseminator.

6. Spokesperson.

7. Entrepreneur.

8. Disturbance Handler.

9. Resource Allocator.

10. Negotiator.

The 10 roles are then divided up into three categories, as follows:

Category Roles

Figurehead
Leader
Interpersonal Liaison

Monitor
Disseminator
Informational Spokesperson

Entrepreneur
Disturbance Handler
Resource Allocator
Decisional Negotiator

Decisional Management Roles

The managerial roles in this category involve using information.
©️ Saurabh

7. Entrepreneur – As a manager, you create and control change within the

organization. This means solving problems, generating new ideas, and
implementing them.
8. Disturbance Handler – When an organization or team hits an
unexpected roadblock, it's the manager who must take charge. You also
need to help mediate disputes within it.
9. Resource Allocator – You'll also need to determine where
organizational resources are best applied. This involves allocating
funding, as well as assigning staff and other organizational resources.
10. Negotiator – You may be needed to take part in, and direct,
important negotiations within your team, department, or organization.
©️ Saurabh

4. (a) What are the basic differences between PERT and CPM as the techniques for achieving
better control in management.

Ans->

Abbreviation

PERT – Project Evaluation and Review Technique CPM – Critical Path Method

What does It Mean?

PERT – PERT is a popular project management CPM – CPM is a statistical algorithm which
technique that is applicable when the time required has a certain start and end time for a
to finish a project is not certain project

Model Type

PERT – PERT is a probabilistic model CPM – CPM is a deterministic model

Focus

PERT – The main focus of PERT is to minimise the CPM – The main focus of CPM is on a
time required for completion of the project trade-off between cost and time, with a
major emphasis on cost-cutting.

Orientation type

PERT – PERT is an event-oriented technique CPM – CPM is an activity-oriented

technique
©️ Saurabh

(b) Illustrate the distinction between corporate planning and functional planning with suitable
example.

Ans->

<<NO SUITABLE ANSWER

I. Corporate Planning:

The term corporate planning denotes planning activities for the entire enterprise.

The basic focus of corporate planning is to determine the long-term objectives of the organisation as
a whole. And then to generate plans to achieve these objectives taking into mind the likely changes
in the external environment (macro level). Corporate planning is generally carried out at the top
level of management.

“Corporate planning includes the setting of objectives, organising the work, people and systems to
enable those objectives to be attained, motivating through the planning process and through the
plans, measuring performance and so controlling progress of the plan and developing people
through better decision making, clearer objectives, more involvement and awareness of progress.”
—David Hussey

Hussey has given a broad definition of corporate planning. It covers various functions of
management besides defining planning. Corporate planning is the total planning activities in the
organisation and not the total management functions.

“Corporate Planning is the continuous process of making present risk taking decisions systematically
and with the greatest knowledge of their futurity; organising systematically the efforts needed to
carry out these decisions, and measuring expectations through organised, systematic feedback.” —
Peter Drucker

The corporate planning activities are carrying out at the top level. They are important for the success
of the entire organisation. The top management is responsible for the formulation of such plans and
is prepared according to the inputs that are given to them either from the environment or the lower
levels in the organisational hierarchy. The plans are generally long term and are broad based.

The corporate planning is of two types:

i. Strategic Planning

ii. Operational Planning

Strategic Planning consists of the process of developing strategies to reach a defined objective. It
sets the long-term direction of the organisation in which it wants to proceed in future. According to
Anthony it can be defined as the “process of deciding on the objectives of the organisation, on
changes on these objectives and on the policies that are to govern the acquisition, use and
disposition of these resources.”

An assessment of available resources is made at the top and then things are planned for a time
period of upto 10 years. It basically deals with the total assessment of the organisation, strengths
capabilities and weaknesses and an objective evaluation of environment is made for future persuits.

Examples of strategic planning in an organisation may be; planned growth rate in sales,
diversification of business into new lines, type of products to be offered and so on. Strategic
©️ Saurabh

planning also involves the analysis of various environmental factors specifically with respect to how
organisation relates to its environment.

The strategic planning may be carried out in series of steps that include the

1. Specifying Missions and Objectives.

2. Elaborate Environmental Scanning.

3. Strategy Formulation.

4. Strategy Implementation

5. Evaluation and Control

Strategic planning is of prime importance for any organisation as they would specify the other
decisions that need to be taken.

Functional Planning:

The planning that is made to ensure smooth working of the organisation taking into account the
needs of each and every department. The purpose of functional planning is to promote standardised
management practices for corporate functions in the department’s decentralised corporate
management structure.

The following three basic activities have to be carried out in functional planning:

(1) Functional Guidance:

Managers must be told and guided what they should be doing to properly manage corporate
functions within the enterprise.

(2) Goal Setting:

Certain quantifiable goals need to be set that would measure the effectiveness of the functional
planning. Goals should be meaningful, achievable and measureable.

(3) Functional Assessments:

Functional assessment wraps up the functional planning process. Here the Comparison is made
between the goal setting and the goal achievement. The functional assessment should have the
following characteristics:

(i) Substantiation:

Managers who are responsible for corporate functions must explain how resources and activities
devoted to their function provide support to the achievement of the corporate priorities and
functional targets.

(ii) Measure of Success.

Managers responsible for corporate functions must quantifiably measure the success in meeting
goals identified in their functional guidance.

(iii) Foresight:

Managers should be in a position to identify developing gaps and risks faced in their respective
functional areas, along with recommendations to fill up those gaps and risks.
©️ Saurabh

5. (a) State the sources of recruitment. Explain two important external sources of recruitment for
an educational institute.

Ans->

<<<<Repeated (after)>>>
©️ Saurabh

(b) Explain Simon’s model of decision making.

Ans->

<Repeated>
©️ Saurabh

6. (a) What is meant by Centralisation and decentralisation? Highlight the salient differences
between the two.

Ans->

Centralization is a form of organizational structure where the decision making capability rests with
the top management. A couple of hand-picked members are entitled to create strategies, determine
the goals and objectives based on which an organisation will function.

In a centralized organisation, the top management sets rules and procedures which are then
communicated to the lower-level employees, who are expected to carry out the same without
questioning the authority.

Decentralization is another form of organizational structure that functions by delegating decision-

making capabilities to multiple teams across geographies.

In such an organization, most of the planning, strategy and decision to implement them are taken by
the people in the middle and lower level of management.

BASIS FOR
CENTRALIZATION DECENTRALIZATION
COMPARISON

Meaning The retention of powers and authority The dissemination of authority,

with respect to planning and decisions, responsibility and accountability to the
with the top management, is known as various management levels, is known as
Centralization. Decentralization.

Involves Systematic and consistent reservation Systematic dispersal of authority.

of authority.

Communication Vertical Open and Free

Flow

Decision Making Slow Comparatively faster

Advantage Proper coordination and Leadership Sharing of burden and responsibility

Power of Lies with the top management. Multiple persons have the power of
decision making decision making.

Implemented Inadequate control over the Considerable control over the

when organization organization

Best suited for Small sized organization Large sized organization

©️ Saurabh

(b) Is it true that authority and responsibility are two sides of the same coin? Justify.

Ans->

Authority

Authority, in simple words, is the right of commanding subordinates, issuing orders and instructions,
and exacting obedience from the team. It is also the right of the manager to make decisions. Also, to
act or not to act depends on how he perceives the objectives of the organization.

Henri Fayol, who designed the administrative theory of 14 principles of management, defined
authority as ‘the right to give orders and exact obedience‘. He also recognized that any official
authority vested in the job was often ineffective.

Responsibility

In the context of hierarchical relations in an organization, responsibility is the obligation of a

subordinate to perform the tasks assigned. The essence of responsibility is ‘obligation’.

Therefore, responsibility is relative to the person. Also, it emanates from the subordinate-superior
relations in an organization.

Authority can be defined as the legal right of a person or superior to command his subordinates. On
the other hand, accountability refers to the duty of an individual to carry out his performance as per
the company standards.

Responsibility without authority is a common problem in organizations with uneven, inconsistent

management. Individuals who end up with responsibility without authority will always find it much
harder to succeed and will find themselves in trouble more frequently than those with a strong
authority presence. This is largely due to the interconnectedness of authority
and responsibility when it comes to making an organization successful as a whole. Proper authority
exists to delegate tasks effectively in order to meet the organizational objectives. When there is no
authority, the enforcement of duties and tasks falls to the wayside, and employee efforts stray from
the path towards progress.

If an individual is given some level of responsibility without sufficient authority enforcing that, they
are likely not going to perform to the best of their ability, and could even fail to accomplish the task
at all. However, the relationship between authority and responsibility is reciprocal. While sufficient
authority should be a given, too much authority with a disproportionate amount
of responsibility can also cause issues. If excess authority is delegated to an individual without a
matching amount of responsibility, then the delegated authority will be misused in one way or
another.
©️ Saurabh

7. (a) What is meant by Span of Management?

Ans->

Definition: The Span of Management refers to the number of subordinates who report directly to a
manager.

Simply, the manager having the group of subordinates who report him directly is called as the span
of management.

The Span of Management has two implications:

1. Influences the complexities of the individual manager’s job

2. Determine the shape or configuration of the Organization

The span of management is related to the horizontal levels of the organization structure. There is a
wide and a narrow span of management. With the wider span, there will be less hierarchical levels,
and thus, the organizational structure would be flatter. Whereas, with the narrow span, the
hierarchical levels increases, hence the organizational structure would be tall.
©️ Saurabh

(b) Explain factors determining Span of Management.

Ans->

cc dnp sc

1. Capacity of Superior: Here the capacity means the ability of a superior to comprehend the
problems quickly and gel up with the staff such that he gets respect from all. Also, the
communication skills, decision-making ability, controlling power, leadership skills are
important determinants of supervisory capacity. Thus, a superior possessing such capacity
can manage more subordinates as compared to an individual who lack these abilities.

2. Capacity of Subordinate: If the subordinate is trained and efficient in discharging his

functions without much help from the superior, the organization can have a wide span. This
means a superior can manage a large number of subordinates as he will be required just to
give the broad guidelines and devote less time on each.

3. Nature of Work: If the subordinates are required to do a routine job, with which they are
well versed, then the manager can have a wider span. But, if the work is complex and the
manager is required to give directions, then the span has to be narrower.Also, the change in
the policies affects the span of management. If the policies change frequently, then the
manager needs to devote more time and hence the span would be narrow whereas if the
policies remain stable, then a manager can focus on a large number of subordinates.
Likewise, policies technology also plays a crucial role in determining the span.

4. Degree of Decentralization: If the manager delegates authority to the subordinates then he

is required to give less attention to them. Thus, higher the degree of decentralization, the
wider is the span of management. But in case, subordinates do not have enough authority,
then the manager is frequently consulted for the clarifications, and as a result superior
spends a lot of time in this.

5. Planning: If the subordinates are well informed about their job roles, then they will do their
work without consulting the manager again and again. This is possible only because of the
standing plans that they follow in their repetitive decisions. Through a proper plan, the
burden of a manager reduces manifold and can have a wider span of management.
©️ Saurabh

6. Staff Assistance: The use of staff assistance can help the manager in reducing his workload
by performing certain managerial tasks such as collecting information, processing
communications and issuing orders, on his behalf. By doing so, the managers can save their
time and the degree of span can be increased

7. Supervision from Others: The classical approach to the span of management, i.e., each
person should have a single supervisor is changing these days. Now the subordinates are
being supervised by other managers in the organization such as staff personnel. This has
helped the manager to have a large number of subordinates under him.

8. Communication Techniques: The mode of communication also determines the span of

management. If in the manager is required to do a face to face communication with each
subordinate, then more time will be consumed. As a result, the manager cannot have a
wider span. But in case, the communication is in writing and is collected through a staff
personnel; the manager can save a lot of time and can have many subordinates under him.
©️ Saurabh

8. (a) What do you mean by an autocratic style of leadership? What could be the possible demerits
of adopting a free rein system of leadership in management?

Ans->

5 laissez-faire (----also called free rein system) leadership disadvantages

Some disadvantages with the laissez-faire leadership method are:

It lowers role awareness

In the laissez-faire management style, employees may lose some role awareness within the team.
Role awareness is the perception that employees have of each other, including their manager.
Because the manager in a laissez-faire leadership system invites every employee be a leader, some
may do so when they are under-qualified. Additionally, employees may not see their supervisor as a
manager because many others around them also hold leadership roles.

When operating a department under this leadership style, consider keeping certain managerial
duties assigned to your specific role so that you can clarify role awareness on the team. For example,
delegating tasks may be a duty that you keep to yourself in order to assert your position as a formal
leader. Ensure that you delegate leadership positions only to those who are qualified to lead and
make decisions.

Employees may need direction

Because there are multiple leaders within the laissez-faire management system, employees may
avoid work by allowing other employees to lead projects many times over. Additionally, because of
the limited supervision that managers supply in this style, team members who would make
prominent leaders may avoid leadership positions.

Employees may also take advantage of the limited supervision, which can impact productivity. As a
solution, consider lightly managing employees: not too closely as to compromise the style's nature,
but not too casually, as system abuse may occur. Occasional short meetings to assess everyone's
involvement and progress with a project may help keep priorities and workplace standards in focus.

The style may not best suit your employees

Aside from employees taking advantage of the system, employees may simply not adhere to the
style as well. Some employees who desire a more structured environment or those who are entry
level may feel overwhelmed by the idea of leading or being responsible for important daily decisions
and tasks. Consider ensuring that you thoroughly understand your employees before you consider
switching to this leadership style.

Conflict may increase

©️ Saurabh

Under laissez-faire leadership, some employees may act upon their own self interest, accumulating
resources and directing decisions that may not lead to the best results for the department.
Conversely, multiple leaders who are sincere in their intentions may disagree over decisions, slowing
productivity. Consider resolving such conflicts by making occasional executive decisions to keep
progress steady.
©️ Saurabh

(b) Name the principles adopted in McKinsey’s 7 s approach. What do you mean by management
by exception?

Ans->

Repeated Before and After>>>>>>>>>>>>>>>>>>>>>>>>>>

©️ Saurabh

9. (a) What are ‘motivators’ and ‘hygiene factors’ according to the ‘dual factor theory’? Site
examples for each.

Ans->

Herzberg’s Two-Factor Theory of Motivation In 1959, Frederick Herzberg, a behavioral scientist

proposed a two-factor theory or the motivator-hygiene theory. According to Herzberg, there are
some job factors that result in satisfaction while there are other job factors that prevent
dissatisfaction. According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the
opposite of “Dissatisfaction” is “No Dissatisfaction”

Below pic is NOT a part of answer.

©️ Saurabh

Below pics are NOT the part of the answer.

©️ Saurabh
©️ Saurabh

(b) How different is Japanese style of management from that of an Indian style of management?

Ans->

<NOT SURE>

• The Japanese value life as employment, senior wages, and promotion system enterprise-
based union.

• While in India, principles and ethical core, practical challenges, wordy motivation, self-
actualization.

• Japanese have an informal style, while India has a formal style.

• Japanese more focused on collectivism, while Indians more focus on individualism.

• Japanese have long term planning, while Indian has short term panning.

• Japan has a bottom to top communication, while India has top to bottom communication.

• The japan has slow decision making, work as family has more loyalty. The Indian style is fast
decision making and hoe and workplace are different entities.
©️ Saurabh
©️ Saurabh
©️ Saurabh

2017
2. (a) Define management. Discuss the major characteristics of management.

Ans->

<1st part repeated>

The characteristics of management are:

• Goal-oriented

• Pervasive

• Multi-dimensional

• Continuous process

• Group activity

• Dynamic function

• Intangible force

Goal-oriented process

An essential aspect of management is to combine individual efforts and direct them towards
achieving organisational goals. These goals differ from organisation to organisation. For example, an
organisation can have a profit motive whereas a social work organisation might have a goal of
eradicating illiteracy among children. Management recognises these goals and aims to fulfil them.

Browse more Topics under Nature And Significance Of Management

• Coordination and Management in the Twenty-First Century

• Levels and Functions of Management

• Management as an Art

• Management as Profession

• Management as Science

Pervasive

Management is a requirement and essential for the functioning of all kinds of organisations-
social, economic or political. Without management, the processes of an organisation would be
chaotic and unordered. Further, it is equally essential for organisations across all countries.
However, the only difference lies in the how management is implemented within an organisation.

Multidimensional

Management has three dimensions:

i. Work management: Every organisation exists for completion of some work. This work varies
from producing clothes in clothing sector to treating patients in hospitals. Management
©️ Saurabh

looks at this work as goals to be achieved and works towards these goals. Further, this is
done in terms of problems to be solved, decisions to be made, plans to be established,
budgets to be prepared, responsibilities to be assigned and authority to be delegated.

ii. Management of people: Another dimension of management is concerned with getting work
done from people, by assigning work to worthy employees who can work effectively towards
the realisation of organisational goals. This is achieved by ensuring that
the strength is highlighted and the weakness is driven out of the equation. It further has two
dimensions- a) dealing with people as individuals with diverse needs and behaviours and b)
dealing with individuals perceiving them as a part of a wider group of people.

iii. Management of operations: As every organisation aims at the completion of work, they also
have a particular product or service to provide with respect to their domain of operation.
Note that this is met with the help of a production process. Management also looks after a
production process of an organisation that transforms the input with the help of technology
required into the output for consumption. Interestingly, this is linked to both management
of work and people.

Continuous Process

We now know that there are various functions of management. These are- planning, organising,
directing, staffing and controlling. As a matter of fact, a manager performs all these functions
simultaneously. Although these functions are separate, management is concerned with performing
all of them simultaneously all the time. Consequently, management is a dynamic and continuous
process.

Group Activity

An organisation consists of a large number of individuals having different reasons and purposes to
join. Again these individual differ based on their needs and behaviours. However, it is important to
realise that these diverse individuals work together towards the achievement of the organisational
goals. Management diverts the individual efforts towards the right direction. Further, effective
management enables all the individuals to grow and develop as their needs and opportunities
change.

Dynamic Function
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An organisation has to adapt to the environment in order to succeed. Thus management is dynamic
in nature and adapts to the ever-changing social, economic and political conditions. A famous
example of this is how McDonald’s had to change its menu to serve and emerge as a major fast food
giant in the Indian market.

Intangible Force

Management cannot be touched or it isn’t tangible. However effective management can be easily
felt. Evidently, if there is order instead of chaos within an organisation, the employees are happy and
the organisational goals are being organised it can be easily said that there exists good management.
©️ Saurabh

(b) What is a single-use plan? Name any one type of single-use plan and explain its features.

Ans->

One-time use plans are the single-use plan. These are designed to achieve a particular goal that once
achieved will not reoccur in the future. So, the key features of these plans are

• One time use

• Meet specific demands.

Such single-use plans cannot be used repeatedly since they become useless after they have achieved
their objective. Some examples are budgets, programmes, project reports, etc.

(1) Programmes

A programme means a single-use comprehensive plan laying down the ‘what’, ‘how’, ‘who’ and
‘when’ of accomplishing a specific job. Through programme the managers are informed in advance
about various needs so that there is no problem in future.

The programmes can be of different types, e.g., production programme, training programme, sales
promotion programme, management development programme, etc.

In case of sales promotion programme, the ‘what’, ‘how’, ‘who’, ‘when’ of everything right from the
purchase of the raw material to the manufacturing of the product is defined.

The moment a work is completed for which the programme has been designed, its utility ends. In
other words, a new programme is designed for every new work.

(2) Budgets

It refers to the quantitative expression of the plan of action.

Budgets describe the desired results in numerical terms. A budget is that planning which provides
details about estimated money, material, time and other resources for the achievement of pre-
determined objectives of various departments.

For example, the sales department’s budget gives estimated figures about the type of material that
will be purchased, its quantity, the time of purchase and the amount to be spent on it. Similarly,
budget of other departments are also prepared.

A budget is related both to planning and controlling. When we prepare a budget it is related to
planning and when we use it as a tool to measure the deviations, it gets connected with controlling.
In this way the manager compares the actual progress with the figures given in the budget and the
information about success and failure is obtained.
©️ Saurabh

3. (a) "Management is an Art and Science" – justify.

Ans->

<<<<<<<<<<<<<<<<<<<<<<<<REPEATED
©️ Saurabh

(b) State any 6 principles of Fayol’s Administrative management. Explain any two important ones.

Ans->

<<<<<<<<<<<<<<<<REPEATED
©️ Saurabh

4. (a) Enumerate the difference between Standing Plan and Single Use Plan.

Ans->
©️ Saurabh

(b) Describe the Steps involved in MBO Process.

Ans->

Steps in Management by Objectives Process

1. Define organization goals

Setting objectives is not only critical to the success of any company, but it also serves a variety of
purposes. It needs to include several different types of managers in setting goals. The objectives set
by the supervisors are provisional, based on an interpretation and evaluation of what the company
can and should achieve within a specified time.

2. Define employee objectives

Once the employees are briefed about the general objectives, plan, and the strategies to follow, the
managers can start working with their subordinates on establishing their personal objectives. This
will be a one-on-one discussion where the subordinates will let the managers know about their
targets and which goals they can accomplish within a specific time and with what resources. They
can then share some tentative thoughts about which goals the organization or department can find
feasible.

3. Continuous monitoring performance and progress

Though the management by objectives approach is necessary for increasing the effectiveness of
managers, it is equally essential for monitoring the performance and progress of each employee in
the organization.

4. Performance evaluation

Within the MBO framework, the performance review is achieved by the participation of the
managers concerned.

5. Providing feedback

In the management by objectives approach, the most essential step is the continuous feedback on
the results and objectives, as it enables the employees to track and make corrections to their
actions. The ongoing feedback is complemented by frequent formal evaluation meetings in which
superiors and subordinates may discuss progress towards objectives, leading to more feedback.

6. Performance appraisal

Performance reviews are a routine review of the success of employees within MBO organizations.
©️ Saurabh
©️ Saurabh

5. (a) List out and briefly explain the barriers to effective communication.

Ans->

Following are some of the barriers to effective communication:

1. Semantic barriers

2. Psychological barriers

3. Organisational barriers

4. Personal

5. Cultural barriers

6. Physical barriers
©️ Saurabh

Cultural barriers: Cultural barriers are those that arise due to lack of similarities among the different
cultures across the world. A term that can be harmless in one culture can be regarded as a slang in
another culture. Moreover, various beliefs can differ from one culture to another.

Physical barriers: Physical barriers to communication are those that arise due to certain factors like
faulty equipment, noise, closed doors and cabins that cause the information sent from sender to
receiver to become distorted, which results in improper communication.
©️ Saurabh

(b) Describe any 4 sources of recruitment for an organization.

Ans->

Meaning of Recruitment
It means inducing or attracting more and more candidates to apply for vacant job positions in an
organisation. This function is very important because the end result of recruitment function is
receiving large number of applications to make selection from. Recruitment is a positive process as it
attracts suitable candidates to apply for available jobs.

There are different types of internal hiring in the organisation and they are as follows:

1. Promotion: Promotion is referred to as the change of designation of the employee. It involves

shifting of the existing employee to a higher position within the organisation and providing that
employee with more responsibility and a raise in pay.

Promotion helps in motivating the other employees of the organisation to work hard so that they
also become eligible for promotion.

2. Transfer: Transfer refers to the shifting of an existing employee from one department to another
department in an organisation.

3. Employee Referrals: It can happen that the organisation in an effort to cut down costs on hiring is
looking for employee referral. The employees are well aware of the job roles in the organisation for
which manpower is required. These employees will refer potential candidates by screening them
based on their suitability to the position.

4. Former employees: Some organisations have the provision of hiring retired employees willing to
work part time/full time for the organisation.

Following are the some of the external sources of recruitment:

1. Advertisement: Advertisements serve as a great source of information regarding any job

opportunities. This type of source is used for recruitment of middle level employees, or high level
employees.

2. Employment Exchanges: Employment exchanges serve as a source of recruitment for the people
as it is run by the government.

3. Employment portals: In this age of technology, development in the field of hiring has taken place.
Nowadays many employment portals are open where one can find information about job openings.

4. Educational Institutions: Educational institutions also serve as a good source of recruitment as

many students or say resources will be available at once under one roof.

5. Recommendation: This can also be a good source of recruitment as an existing employee will be
able to provide better recommendation for other candidates.
©️ Saurabh

6. (a) What are the steps involved in controlling?

Ans->

Controlling is measuring and correcting the activities of subordinates to ensure that events conform
to plans. It is a systematic process involving a series of steps, which are as follows :

(i) Setting performance standards: The first step in the controlling process is to set the performance
standards.

Standards are those criteria, on which the actual performances are measured. These standards serve
as a benchmark towards which an organisation strives to work.

(ii) Measurement of actual performance: After the establishment of standards, the next step is
measuring the actual performance with the set standards. This can be done by opting several
methods like personal observation, sample checking, performance reports, etc.

(iii) Comparison of actual performance with standards: In this step, the actual performances are
compared with the established standards. Such comparisons reveal the deviation between planned
and actual results.

(iv) Analysing deviations: At this stage, acceptable and non-acceptable deviations are analysed.

Two methods are generally used:

(a) Critical point control: It means keeping the focus on key result areas where deviations are not
acceptable and they should be attended on a priority basis.

(b) Management by exception: It means that if a manager tries to control everything, he may end up
in controlling nothing. Thus, he should first handle the significant deviations, which require his
priority.

(v) Taking corrective action: The most important step in the controlling process is taking corrective
actions. After the deviations and their causes are analysed, the task is to remove the hurdles from
the actual work plan. The purpose of this step is to bring the actual performance up to the level of
expectations by taking corrective measures.
©️ Saurabh

(b) Briefly explain Simon’s model of decision making.

Ans->

<Repeated>
©️ Saurabh

7. (a) Explain the concept of Management by Exception. How does it differ from Management by
Objectives.

Ans->

It is an important principle of management. Control is based on the belief that “an attempt to
control everything results in controlling nothing”.

Thus, only significant deviations which go beyond the permissible limit should be brought to the
notice of management. For eg. If an organisation presupposes that there will be 2% defective
product in the whole production then corrective action will be taken only when defective production
will be more than 2%.

Differences b/w MBO and MBE

Basis MBO MBE

Full Form Management By Objectives Management By Exceptions
MBO is a process of defining
objectives within an MBE is policy by which management
organization so that devotes its time to investigate only
Definition management and employee those situation in which actual result
agree to the objectives and differs significantly from planned
understand what they need to results.
do in the organization
High:
Low: Employee participation in
Employee participation is
objective setting and decision making
Employee essential for an MBO model as
is minimal in an MBE model as that
Participation it needs a common objective
responsibility is rested with senior
acceptable for management
management
and employees
Decision Employee participation is high Employee Participation is minimal on
Making on decision making decision making
No responsibility ambiguity as
Responsibility
responsibilities are clearly Responsibility ambiguity
Ambiguity
assigned.
In MBE, the dependency on one
In MBO, the dependency on department especially of financial
one department or group is less analysis / account is high as they are
Dependency as operations are handled with responsible for forecasting, budgeting
organizational wide and monitoring. Further, they are
participations. responsible for communicating
significant deviations.
Appropriate for Experienced Managers Experienced Executives
Whole organization takes part in
Efficiency decision making so it reduces High efficiency
efficiency
©️ Saurabh

(b) Outline McKinsey’s 7-S approach.

Ans->

REPEATED>>>>>>>
©️ Saurabh

8. (a) Enlist 3 main leadership styles and suggest the most suitable one in your opinion and why so.

Ans->

A leader is someone who directs and guides others in a team. A leader directs and motivates the
team members’ efforts by influencing their activities. The leadership style refers to the way a leader
acts while trying to accomplish an objective through others. The leader’s personality, skills, business
values, and environment determine the leader’s leadership style.

<Only enlist, NOT to explain>

©️ Saurabh

<Consultive Leadership is better>

©️ Saurabh

8(b) Briefly explain Abraham Maslow’s Hierarchy of Needs.

Ans->

1. Physiological needs - these are biological requirements for human survival, e.g. air, food, drink,
shelter, clothing, warmth, sex, sleep.

If these needs are not satisfied the human body cannot function optimally. Maslow considered
physiological needs the most important as all the other needs become secondary until these needs
are met.

2. Safety needs - once an individual’s physiological needs are satisfied, the needs for security and
safety become salient. People want to experience order, predictability and control in their lives.
These needs can be fulfilled by the family and society (e.g. police, schools, business and medical
care).

For example, emotional security, financial security (e.g. employment, social welfare), law and order,
freedom from fear, social stability, property, health and wellbeing (e.g. safety against accidents and
injury).

3. Love and belongingness needs - after physiological and safety needs have been fulfilled, the third
level of human needs is social and involves feelings of belongingness. Belongingness, refers to a
human emotional need for interpersonal relationships, affiliating, connectedness, and being part of
a group.
©️ Saurabh

Examples of belongingness needs include friendship, intimacy, trust, and acceptance, receiving and
giving affection, and love.

4. Esteem needs are the fourth level in Maslow’s hierarchy and include self-worth, accomplishement
and respect. Maslow classified esteem needs into two categories: (i) esteem for oneself (dignity,
achievement, mastery, independence) and (ii) the desire for reputation or respect from others (e.g.,
status, prestige).

Maslow indicated that the need for respect or reputation is most important for children and
adolescents and precedes real self-esteem or dignity.

5. Self-actualization needs are the highest level in Maslow's hierarchy, and refer to the realization of
a person's potential, self-fulfillment, seeking personal growth and peak experiences. Maslow (1943)
describes this level as the desire to accomplish everything that one can, to become the most that
one can be.

Individuals may perceive or focus on this need very specifically. For example, one individual may
have a strong desire to become an ideal parent. In another, the desire may be expressed
economically, academically or athletically. For others, it may be expressed creatively, in paintings,
pictures, or inventions.
©️ Saurabh

9. (a) Bring out the differences between a leader and a manager.

Ans->

BASIS FOR
LEADER MANAGER
COMPARISON

Meaning A leader is a person who directs, A manager is a representative of the

guides and influences the behavior of organization responsible for the
his followers towards the attainment management of the work of a group of
of specific goals. employees and takes requisite actions
whenever required.

Work Providing direction to the employees Formulating the structure of the

by creating vision and communicating organization and delegating authority and
it and encouraging them to reach responsibilities to the employees.
effortlessly.

Management Performs only one function - Performs all five functions - planning,
function direction. organizing, staffing, directing, and
controlling.

Authority Informal authority by virtue of Formal authority due to his/her positional

his/her personal qualities role.

Approach Proactive Reactive

Exists in Both formal and informal structure. Formal structure only.

Qualities Leadership qualities are required. Both managerial and leadership qualities are
Required required.

Motivation Intrinsic process Extrinsic Process

Foresightedness Prompt decision making and coordination

Key Attribute

Subordinate Followers Employees

What does Sets directions Plans activities

he/she do?
©️ Saurabh

BASIS FOR
LEADER MANAGER
COMPARISON

Style Transformational Transactional

Aims at Motivating and inspiring people Directing and Controlling employees

Focus People Process

Change Promotes change. Reacts to change.

Conflict Uses conflict as an asset Avoid conflict

People Aligns people Arranges people

Strives For effectiveness For efficiency

©️ Saurabh

(b) What are the techniques of effective coordination?

Ans->

<NOT SURE>

The main techniques for effective coordination are as follows:

1. Sound Planning
Coordination facilitates sound planning in the organization. The plan, policies, and
comprehensive programs prefer coordination of activities and individuals. Standard
procedures and rules create uniformity in repetitive operations. Thus, coordination is
regarded as an essential element for sound planning.

2. Sound Organizational Structure

A sound organizational structure contributes to effective coordination. It clearly defines the
authority relationship which provides an effective means of integrating the activities of
different departments. It clearly defines the authority relationships which provide an
effective means of integrating the activities of different units. A sound organizational
structure has a clear meaning of authority.

3. Clearly Defined Objectives

The goal of the organization must be clearly defined. The individual in the organization
should understand the overall objectives. The contribution of their jobs helps to attain the
overall objectives. For achieving proper coordination, there must be unity of purpose.

4. Maintaining Co-operation
Co-operation is the result of maintaining a good relationship among the people in the
organization. It depends on sound policies and procedures. Informal contacts should be
encouraged to supplement formal communication. The coordination is more effective and
long-lasting when the organization achieves the voluntary co-operation of employees.

5. Formation of Committees
A committee is a group of a person entrusted with functions collectively as a group. The
decisions of the committee are easy to be implemented as all who are represented are
bound to follow committee decisions. It promotes coordination through better and free
interchange of ideas, feelings, and opinions. All who are represented on the committee are
bound to follow the committee decisions.

6. Comprehensive Policies and Programs

Coordination becomes very easy if there are well-defined and comprehensive policies and
programs. This brings uniformity in action because everyone understands the policies and
programs in the same sense. These are also good tools for coordination as they provide the
timetable, schedules, etc.
©️ Saurabh

7. Voluntary Cooperation
Coordination is more effective and long-lasting when it is achieved through the voluntary
cooperation of employees. Cooperation is the result of harmonious relations among the
people of the organizations. Informal contacts should be encouraged to supplement formal
communication. Voluntary co-operation can be developed among the employees by
encouraging them through contacts and communications.

8. Effective Communication
A good communication system contributes to effective coordination by promoting mutual
understanding and cooperation among various individuals. The communication should be
direct as far as possible to avoid any misunderstanding through misinterpretations. When
the different functional groups are represented in the decision-making process the
coordination becomes easier. Coordination is impossible without effective communication.

9. Simplified Organization
A simple and sound organization is an important means of coordination. The organization
structure of a line of authority and responsibility from top to the bottom should be clearly
defined. The definition of authority and responsibility of each department and individual
help to avoid conflicts.

10. Effective Leadership and Supervision

Effective leadership facilitates coordination efforts in the planning and execution stage. The
activities of the subordinates can be continuously guided by a good leader in the right
direction. It can inspire to pull them together for the accomplishment of the common
objectives. Sound leadership can persuade subordinates to have an identity of interests. It
also helps to adopt a common outlook. Effective leadership reduces the dependence on such
formal means of coordination.

11. Staff Meetings or Conferences

Meetings and conference provided to the staffs is a platform for discussion and solution of
various problems faced by the departments. Staff meetings and conferences may be highly
effective in the promotion of coordination. It helps to learn new things. It provides the
subordinates an opportunity to bring up the problems.

12. Chain of Command

The chain of command is one of the most important methods of coordination. The supreme
coordinating power in an organization is the authority. The exercise of authority through the
chain of command or hierarchy is the traditional means of coordination. The different parts
of an organization are brought together through the chain of command. It also relates them
to a central authority.

13. Indoctrination
Indoctrination refers to a religious idea. Indoctrinating the organizational members with the
goals and mission is also the essential techniques of the organization. It can transform a
©️ Saurabh

neutral body into a committed body.

14. Incentives
Incentives refer to something that encourages someone to do something. In the
coordination, incentives may be used to rebate the interest and to reduce conflicts. For
instance, profit helps in promoting team spirit and cooperation between employers and
workers.

15. Liaison Departments

It is necessary to contact between different organizational units, for this, the liaison officers
may be employed. A liaison department ensures the meeting of the production department,
delivery of dates, and specifications by the sales department. Special coordinators may be
appointed in a certain asset.