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MG 8591 - Principles of Management-Unit-1& 2

questions and answers

1. Explain what the term manager means, and identify different types of managers.

A manager is a person responsible for work performance of other people. Management is the process of using
organizational resources to achieve specific objectives through the functions of planning, organizing and
staffing, leading, and controlling. Organizational levels consist of top-level managers, middle-level managers,
first-level managers, and individual contributors.

Categories of managers include functional managers (who deal with specialties within the firm) and general
managers, administrators (typically managers in nonprofit firms), entrepreneurs (those who start innovative
businesses), small-business owners, and team leaders.

2. Describe the process of management, including the functions of management.

To accomplish organizational goals, managers use resources and carry out the basic management functions.
Resources are divided into four categories: human, financial, physical, and informational. Top-level managers
emphasize high-level planning, whereas first-level managers concentrate on person-to-person leadership.
Executives place more emphasis on monitoring the environment than do managers in the other two levels.

Functions of management
Planning
Organizing
Staffing
Directing
Controlling

3. Describe the various managerial roles, along with those currently emphasized.

The work of a manager can be divided into 17 roles that relate to the four major functions.

Planning roles include

strategic planner and operational planner.

Organizing and staffing calls for the organizer, liaison, staffing-coordinator, resource-allocator, and task-
delegator roles.

Leading roles include figurehead, spokesperson, negotiator, coach, team builder, team player, technical
problem solver, and entrepreneur.

Controlling involves the monitor and disturbance-handling roles.

Managerial work has shifted substantially away from the controller and director role to that of coach,
facilitator, and supporter.
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Top-level managers occupy more external roles than do lower-ranking managers.

4. Identify the basic managerial skills and understand how they can be developed.

Managers need interpersonal, conceptual, diagnostic, and political skills to accomplish their jobs. An effective
way of developing managerial skills is to follow a general learning model. The model involves conceptual
knowledge, behavioral guidelines, following examples, skill-development exercises, and feedback.
Management skills are also acquired through a combination of education and experience.

5. Identify the major developments in management thought, along with several best management practices.

The three major developments in management thought are the classical, behavioral, and management-
science schools. Each complements and supports the others. They are supplemented by
the systems and contingency approaches to management, which attempt to integrate the three schools. The
best practices of managers today include elements of the five major developments in management thought.

6. What do you mean by social responsibility?

The idea that firms have obligations to society beyond their obligations to owners or stockholders and also
beyond those prescribed by law or contract.

7. Describe the stakeholder viewpoint of social responsibility, and corporate social performance.

Social responsibility refers to a firm’s obligations to society. Corporate consciousness expands this view by
referring to values that guide and motivate individuals to act responsibly. The stakeholder viewpoint of social
responsibility contends that firms must hold themselves accountable for the quality of life of the many groups
affected by the firm’s actions. Corporate social performance is the extent to which a firm responds to the
demands of its stakeholders for behaving in a socially responsible way.

8. Define ethics.

The study of moral obligation, or separating right from wrong.

9. Apply a guide to ethical decision making.

When faced with an ethical dilemma, ask yourself:

Is it right?

Is it fair?

Who gets hurt?

Would you be comfortable with the deed exposed?

Would you tell your child to do it?

How does it smell?

10. What is management-science school?

The school of management thought that concentrates on providing management with a scientific basis for
solving problems and making decisions.
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11. Distinguish manager with administrator.

An administrator is typically a manager who works in a public (government) or nonprofit organization rather
than in a business firm. Among these managerial positions are hospital administrator and housing
administrator. Managers in all types of educational institutions are referred to as administrators. An employee
is not an administrator in the managerial sense unless he or she supervises others.

12. Define productivity.

Productivity is the relationship between a given amount of output and the amount of input needed to produce
it.

13. Definition of management?

Management is the art and science of getting work done through people. It is the
process of giving direction and controlling of various activities of people to
achieve the objectives of organization.
KOONTZ & WEIHRICH
“Management is the process of designing and maintaining of an environment in
which individuals working together in groups effectively accomplish selected
aims”.
F.W.TAYLOR
“Management is the art of knowing what do you want to do and then seeing that
is done in the best cheapest way”.

14. Skills needed for managers:

Technical skill
It refers to the ability to the tools, equipment procedure and techniques.
Effective supervision and co-ordination of the work a group members or
subordinates.
Human skill
It refers to the ability of the manager to work effectively as a group members
and to build co-operative effort in team leaders.
Needed to understand people.
Conceptual skill
It is also called as design and problem
To see the organization and the various component of it as whole
To understand how its various parts and functions mesh together

15. Explain System and Contingency approach to management

System approach
Contingency approach

System approach
Like a human organism an organization is a system. In an organization also
people task and management are independent. System theory was first applied
in field of science and engineering.
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Contingency approach
The Contingency approach is called as situational approach. It is developed by
managers, consultant and researchers who tried to apply for real life situation.
Some management concepts are different and are very effectively in one
situation. The same concept is failed in another situation. Results or solutions
differ because situations differ.

In this approach the managers identify which is suitable technique for a

particular solution. Particular environment of the organization at a specific time.

16. Comparison between art and science.

Science:
It is a systematic body of knowledge with array of principles.
Art:
It is the application of skill in finding desired results.
Management is both science and art:
It contains general principle
It also an art because it require certain personal skills to achieve desired result.

17. Management level and functions.

Top-level management
Middle level management
Lower level management
Top level management functions
To formulate goals and policies
To formulate budgets
To appoint top executives
Middle level management functions.
To train motives &develop supervisory level
To monitor and control the operations performance
Low level management
To train &develop workers
To assign job
To give orders and instructions
To report the information about the workers

18. What is tows metrics?

a. The tows metrics is a conceptual frame work for a systematic analysis, which
facilitates matching the external threats and opportunities with the internal
weakness & strength of the organization. In the tows metrics ‘T’ stands for
threat’s’ stands for opportunities ‘W’ for weakness and ‘S’ for strength.

19. Define planning premises?

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Planning premises are defined as the anticipated environment in which plans are
expected to operate. They include assumptions or forecasts of the future &
known conditions that will effects the operation of plans.

Important observations subjected about planning?

Planning is obtaining a future course of action in order to achieve an objective.

Planning is looking ahead.

Planning is getting ready to do something tomorrow.

Plan is a trap laid down to capture the future.

20. Define mission?

Mission may be defined as a statement which defines the role that an
organization plays in the society.

21. Define policies?

Policies are general statement or understanding which provides guidance in
decisions making to various managers.

22. Explain in brief about the two approaches in which the hierarchy of
objectives can be explained?
There are two approaches in which the hierarchy can be explained.
Top-down approach
Bottom-up approach
In the top-down approach, the total organization is directed through corporate
objective provided by the top-level management.
In the bottom up approach, the top level management needs to have information
from lower level in the form of objectives.

23. Advantages of objectives:

Unified planning
Defining an organization
Direction
Individual motivation
Basis for decentralization
Basis for control
Co-ordination

24. Steps involved in MBO process:

setting preliminary objectives
fixing key result areas
setting subordinates objectives
matching resources with objectives
recycling objectives
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Periodic resources with objectives.

Appraisal

26. Features of MBO:

MBO tries to combine the long range goals of organization with short range of
organization.
MBO involves participation of subordinate managers in the goal setting process.
MBO increase the organization capability of achieving goals.
MBO’S emphasis is not only on goals but also on effective performance.

27. Definitions of MBO:

According to GEORGE ODIORNE,”MBO is a process where by the superior and
the subordinates managers of an enterprise jointly identify its common goals,
define each individuals major areas of responsibility in terms of results expected
of him, and use these measures as guides for operating the unit and assessing
the contribution of each of its members”.
KOONTZ &WEIHRICH have defines MBO as follows:
“MBO is comprehensive managerial system that integrates many key managerial
activities in a systematic manner & that is consciously directed towards the
effective and efficient achievement of organizational and individual objectives.
28. Define strategy?
A strategy may be defined as special type of plan prepared for meeting the
challenges posted by the activities o competitors and other environment forces.

29. Steps involved in strategic planning:

Mission and objectives.
Environmental analysis
Corporate analysis
Identification of alternatives.
Strategic decision making
Implementations review & control.

30. State the characteristic of a sound policy?

Relationship to organizational objectives.
Clarity of policy
A policy is a guide to thinking in decision making
Policies should be written
Communication of policies
Balance of policies.
Planned formulation.

31. List out the steps involved in formulation of policies:

Defining the policy area
Defining of policy alternatives.
Evaluation of policy alternatives.
Choice of policy
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Communication of policy
Implementation of policy
Review of policy

32. Name the classification of planning premises?

Internal and external
Tangible and intangible premises.
Controllable and uncontrollable premises

33. What do you understand by behavioral school of management?(k2)

Emphasizes improving management through understanding the psychological makeup of people.

The primary strength -

it encourages managers to take into account the human element.

The primary weakness -

it sometimes leads to an oversimplified view of managing people.

34. List different environments affecting the business.(K1)

The political environment

a. For example, to protest Iraq’s invasion of Kuwait in 1990, many world governments levied
economic sanctions against the import of Iraqi oil.

The legal environment

b. China, for example, has recently been threatened with severe trade sanctions because of a
history of allowing American goods to be copied or counterfeited there.

The economic environment

c. Average income levels of the population

d. Tax structures, Inflation rates, Fluctuating exchange rates etc

The socio cultural environment

e. Coca-Cola’s English “Coke adds life” -translated - “Coke brings your ancestors back from the
dead” in Japanese.

f. In Chinese, the English Kentucky Fried Chicken slogan “finger-lickin’ good” came out as “eat your
fingers off

35. List out Scientific management principles given by F. W. Taylor.

1. Replacing rules of thumb with science (organized knowledge)

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2. Obtaining harmony in group action, rather than discord

3. Achieving cooperation of human beings, rather than chaotic individualism

4. Working for maximum output, rather than restricted output

5. Developing all workers to the fullest extent possible for their own and their company's highest
prosperity

36. What is Bounded Rationality?

Settle down for solutions with limited or bounded rationality

Satisficing or good enough under given circumstances.

37. How will you evaluate the importance of a decision?

Lees Important

Extent of responsibility

Size of resources involved

Degree of flexibility

Degree of certainty of goals and premises

Impact of decisions

38. Mention the three approaches generally adopted by managers in selecting an alternative.

Experience:

Relying on post experience, the choice among alternatives is selected to avoid mistakes.

Experimentation:

A firm may test a new product in a certain market before expanding its sale nationwide.

Research and Analysis:

The trend in research and analysis is simulation i.e. to develop mathematical tools.