Internal Assignment-1

Course BBA
Semester 1 Principles of Management
Total Marks 15
Name- Pratham Shah

Q.1 Attempt any two questions (5 Marks each- Word Limit-500)

A. What is management. Explain its features.

Ans)
Management consists of getting things done through others. A manager is
one, who accomplishes objectives by directing the efforts of others.
Nature of management:
• Integrating process- Management integrates human elements with non-
human elements.
• Universal process- The basic concepts, principles and techniques of
management are equally applicable to all sorts of group endeavours.
• Group activity-
o At the micro level: managers from the highest authority to the
lowest one.
o At the macro level: economic, social, political, religious and
cultural human activities.
• Goal-oriented- The success of management is judged by the extent to
which these goals are achieved.
• Dynamic Process- Management seeks to maintain a continuous
equilibrium of an enterprise with its external environment.
• Social process- Management is practised by the people (managers),
through the people (workers) and for the people (consumers and the
society at large).
• Intangible- Management cannot be seen but its presence can be felt from
its results, viz., higher productivity, increased efficiency, healthy
employee-management relationship, high employee morale, etc.
 • Art, science, and profession- Management is an art as it involves
applying knowledge and skills to solve managerial problems. It is a
science as it is a systematised body of knowledge, consisting of generally
accepted principles and procedures. It is now unfolding as a distinct
profession due to the separation of management from ownership in large
business organisations.
• Irreplaceable- Computer applications, information technology,
information systems, PERT, and CPM cannot substitute management.
• Based on principles-
o Division of work and specialisation
o Discipline
o Authority and responsibility
o Balance
o Scalar chain
o Unity of purpose
o Unity of command
o Equity
o Esprit de corps.
• Multi-disciplinary- Many of the ideas, principles, theories and
techniques made use of in management have their origin in several other
disciplines.
Management can be defined as a process below:
Allocate resources (Input) o Men
o Money
o Materials
o Machines
o Methods
o Markets
Execute managerial function o Planning
o Directing
o Management process
o Organising
o Controlling
Achieve organisational goal o Aims
(output) o Goals
o Objectives

Importance of management:
 • Optimum utilisation of resources- A good manager secures maximum
results in production, sales, profits and employee satisfaction with the
minimum inputs in terms of physical resources and manpower efforts.
• Leadership and motivation- Management creates willingness and
motivates workers to work towards the general organisational objectives,
which helps workers achieve their objectives.
• Initiative and innovation- A good manager works with a common
consensus and creates an environment where everyone can express
his/her views.
• Minimise wastage- Management plans, organises, directs and controls
the activities of the organisation and thereby, helps in controlling
wastage.
• Industrial peace- Management helps to develop a healthy environment
within the organisation by promoting a two-way free flow of
communication between the superiors and the subordinates.
• Builds competitive strength- Sound management enables the enterprise
to achieve higher levels of productivity and profitability, which in turn
builds competitive strength.
• Improves standard of living- Sound management helps to improve the
standard of living of both - workers and consumers by improving
productivity and profitability.
• Growth, expansion and diversification- Sound management helps
organisations grow, expand and diversify, making it a going concern.
• Social Consciousness- sound management shoulders the social
responsibilities of business and contributes towards the welfare of
different segments of society, viz., consumers, workers, investors,
shareholders, government and the society at large.
Management is the oldest of arts and the youngest of sciences.
Management as science has the principles scientifically observed and
experimented with. Art management is the process that applies the knowledge
of principles to realize the goals and objectives of the organization. The science
of management provides certain general principles which can guide managers in
their professional effort. The art of management consists in tackling every
situation effectively.
 B. Write an essay on the classical approach and modern
approach of management.

Ans)
Classical approach
Features:
• The classical theory concentrated on the anatomy of formal organization.
They ignored the role of the human element.
• It treated organizations as closed systems.
• The efficiency of the organization can be increased by making each
efficient.
• It is based on centralization of authority.
• In case of any conflict, the interests of the organization should prevail.
• The people at work could be motivated by the economic rewards as they
were supposed to be ‘rational economic people’.
Scientific management approach
The scientific management approach came from the first industrial revolution.
The main contributors to scientific management were Frederick W. Taylor,
Henry L. Gantt, Frank Gilbreth, Lillian Gilbreth and Harrington Emerson.
Taylor and his associates suggested the following techniques:
• Scientific Task and Rate-setting, work improvement, etc.
• Planning the Task.
• Vocational Selection and Training
• Standardization (of working conditions, material equipment etc.)
• Specialization
• Mental Revolution
Administrative management theory
Henry Fayol was the most important exponent of the administrative
management theory.
He divided general and industrial management into six groups:
• Technical activities: Production, manufacture, adaptation.
• Commercial activities: Buying, selling and exchanging.
• Financial activities: Search for and optimum use of capital.
• Security activities: Protection of property and persons.
• Accounting activities: Stock-taking, balance sheet, cost, and statistics.
• Managerial activities: Planning, organization, command, coordination
and control.
Bureaucratic approach
Max Weber, a German Sociologist developed the bureaucratic approach.
His model of bureaucracy includes:
• Hierarchy of authority.
• Division of labour based upon functional specialization.
• A system of rules.
• Impersonality of interpersonal relationships.
• A system of work procedures.
• Placement of employees based on technical competence.
• Legal authority and power.
Modern management approach
System approach
A system has the following tenets:
• Goal oriented
• Consists of several interdependent and interrelated sub-systems.
• Engaged in the processing of inputs and outputs.
• Has a boundary which separates it from other systems.
 • An organisation is an open and dynamic system which is sensitive to its
internal and outer environment.
Contingency theory
Joan Woodward in the 1950s contributed to developing the contingency
theory in management.
Evaluation of contingency theory:
• Adaptability- Managers should develop situational and practical
sensitivity.
• Open-mindedness- Managers should condone environmental
contingencies while choosing their style and technique.
• Relation between internal and external environment- The contingency
approach examines the relationships of sub-systems and between the
organisation and its environment.
Quantitative approach
The quantitative approach was propounded by C. W Churchman and his
colleagues around the year 1950.
The quantitative approach to management makes some suggestions to solve
different problems facing managers. It tells the managers to solve their
problems with the help of mathematical and statistical formulas.
The quantitative approach's main objective is to find a solution for the complex
problems facing big companies.
 Q.2. Write short notes on the following topics (1 Mark each-
Word limit-100)
A. Process of management

Ans)
• Planning: It is the process through which a manager looks at the future
and discovers alternative courses of action for effective corporate
achievements at all levels.
• Organising: Organisation is the process of establishing relationships
among the members of the enterprise.
• Directing: Superiors have a continuous responsibility of guiding and
leading them to higher work performance and motivating them to work
with zeal, confidence and enthusiasm.
Sub-functions:
o Communication
o Leading
o Motivating
o Supervising
• Staffing: Staffing means selecting and recruiting competent and
qualified people needed for jobs.
Sub-functions:
o Selection
o Placement
o Induction
o Training
o Promotion
o Transfer
• Coordination: It is the process of integrating various departmental
activities of an organisation.
• Budgeting: Budgeting is also a tool of controlling as it controls
financial wastage in the organisation.
 B. Quantitative approach to management thought

Ans)
The quantitative approach was propounded by C. W Churchman and his
colleagues around the year 1950. This approach is also known by the name of
Operational Research. It tells the managers to solve their problems with the
help of mathematical and statistical formulas. Some special formulas have been
prepared to solve managerial problems.
The quantitative approach's main objective is to find a solution for the complex
problems facing big companies. The help of a computer is usually taken to
make use of the above-mentioned techniques. The chief advantage of the
approach is to solve complex problems quickly. But the chief disadvantage is
that this approach offers an alternative to a decision and cannot take a decision.
The quantitative approach to management combines different numeric
techniques into traditional management practices.
 C. Process of decision making

Ans)
• Identify the decision: A problem can be identified, if managers go
through diagnosis and analysis of the problem.
• Diagnosis: Diagnosing a problem correctly implies knowing the gap
between what is and what should be, identifying the reasons for the gap
and understanding the problem about the higher objectives of the
organization.
• Analysis: Analysis gives the decision maker an insight into
understanding the problem.
• Identify alternatives: The decision maker must try to gather all the
possible alternatives available to get the most suitable alternative to
achieve the result.
• Weigh the alternatives: A thorough “what if” analysis should also be
conducted to determine the various factors that can influence the
outcome.
• Choose among alternatives: A comparison among the likely
alternatives and then choosing the best suitable alternative is the next step
in the process of decision-making.
• Take action: After zeroing in on one suitable alternative, it is put into
action.
• Review your decision: The manager must seek feedback regarding
the effectiveness of the implanted solutions.
 D. Importance of directing

Ans)
• It initiates actions- It is from this function the action takes place,
subordinates understand their jobs and do according to the instructions
laid.
• It ingrates efforts- Through direction, the superiors can guide, inspire
and instruct the subordinates to work.
• Means of motivation- A manager makes use of the element of
motivation here to improve the performances of subordinates.
• It provides stability- This can be brought upon by the managers with
the help of four tools or elements of direction function – a judicious blend
of persuasive leadership, effective communication, strict supervision and
efficient motivation.
• Coping up with the changes- It is directing function which is of use
to meet changes in the environment, both internal and external.
• Efficient utilization of resources- Direction finance helps in
clarifying the role of every subordinate towards his work.
 E. Principles of Effective Delegation, Authority &
Responsibility

Ans)
Guidelines to make the delegation effective:
• Observance of principles of delegation
• Establishment of definite goals
• Defining a definite responsibility
• Establishing a conducive environment
• Proper motivation
• Proper training
• Effective control system
Characteristics of authority:
• Legitimate right to command-and-control subordinates
• Right to direct others
• Commanding force binding individuals
• Delegated downward
Characteristics of responsibility:
• Assigned to human beings
• Result of duty assigned
• Obligation to complete the assigned task
• Never delegated
• Flows upwards
Relationship between authority and responsibility:
• Authority and responsibility flow in the opposite direction
• Authority can be delegated
Responsibility cannot be delegated