Principles of Management and Professional Ethics

Part - A Questions Unit

1 List the qualities of a Good Management. (1)
Compare the difference between Administration and
2 (1)
Management?
3 Differentiate Between role proprietorship and partnership? (1)
4 Draw a flow chart that shown the process of planning. (2)
What are different stages involved in process of Management
5 (2)
by objective?
6 Differentiate between narrow and hidden span of control? (2)
7 What is meant by human Resource Management? (3)
Draw a flow chart that shown the process involved in the job
8 (3)
analysis.
9 List the importance of Motivation. (3)
10 List the nature and purpose of controlling. (4)
11 Differentiate between maintenance and quality control. (4)
What are features that effective direct control and preventive
12 (4)
control?

Part - B Questions Unit

Explain in detail about Henny-Fayol’s general principle of
1 (1)
management.
2 Explain about nature and level of management. (1)
Explain the importance and methods of training and
3 (2)
development.
Describe in detail about source of recruitment and factors
4 (2)
offering recruitment.
Discuss the steps involved in decision making process and its
5 (3)
characteristics with advantages.
6 Explain hyper and function of departmentation in detail. (3)
7 In Detail, explain about the budgetary and non-budgetary. (4)
8 Elaborate the use of computers and its management control. (4)
 Principles of Management and Professional Ethics

PART - A
1. List the qualities of a Good Management.
A good management possesses the following qualities:
Effective Communication: Clearly conveys information and expectations.
Leadership: Inspires and guides the team towards achieving goals.

2. Compare the difference between Administration and Management?

Administration vs. Management:
• Administration: Focuses on setting policies, objectives, and goals for the organization. It
involves strategic planning and decision-making at the top level.
• Management: Concerned with implementing policies and plans set by the administration.
It involves coordinating and overseeing daily operations to achieve organizational
objectives.

3. Differentiate Between role proprietorship and partnership?

Proprietorship is a business owned and operated by a single individual, where the owner
has full control and is personally liable for all debts and obligations.

Partnership is a business owned by two or more individuals who share control, profits,
and liabilities, with each partner being personally responsible for the business's debts.

4. Draw a flow chart that shown the process of planning.

Start
↓
Identify Objectives
↓
Gather Information
↓
Develop Alternatives
 Principles of Management and Professional Ethics
↓
Evaluate Alternatives
↓
Select the Best Alternative
↓
Implement the Plan
↓
Monitor and Review
↓
End
A flow chart that shows the process of planning typically includes the following steps:

Identify Objectives: Determine the goals and objectives you want to achieve.

Gather Information: Collect relevant data and information to understand the current
situation.

Develop Alternatives: Brainstorm and develop various possible courses of action.

Evaluate Alternatives: Assess the pros and cons of each alternative.

Select the Best Alternative: Choose the most feasible and effective option.

Implement the Plan: Execute the chosen plan.

Monitor and Review: Continuously monitor the progress and make necessary
adjustments.

5. What are different stages involved in process of Management by

objective?

Management by Objectives (MBO) involves the following stages:

 Principles of Management and Professional Ethics
Goal Setting: Managers and employees collaboratively set clear, achievable, and
measurable objectives.
Action Planning: Developing specific action plans to achieve the set objectives.
Monitoring Progress: Regularly tracking and reviewing progress towards the objectives.
Performance Evaluation: Assessing the results against the set objectives.
Feedback and Review: Providing feedback, discussing outcomes, and setting new
objectives for continuous improvement.

6. Differentiate between narrow and hidden span of control?

A narrow span of control refers to a management structure where a supervisor oversees

a small number of subordinates. This allows for close supervision and more direct
interaction, which can lead to better guidance and control but might also result in higher
management costs due to more layers of hierarchy.

A hidden span of control, on the other hand, isn't a standard term in management. It might
imply an informal or less obvious structure where certain employees exert influence or
control over others without being their direct supervisors, often due to expertise, seniority,
or informal leadership roles. This can affect dynamics and decision-making within an
organization without being part of the official hierarchy.

7. What is meant by human Resource Management?

Human Resource Management (HRM) refers to the strategic approach to managing an
organization's employees. It involves recruiting, hiring, training, evaluating, and
compensating employees, as well as ensuring compliance with employment laws and
fostering a positive work environment to enhance employee performance and satisfaction.
8. Draw a flow chart that shown the process involved in the job analysis.

+------------------+
| Identify Purpose |
+------------------+
|
v
 Principles of Management and Professional Ethics
+------------------+
| Collect Data |
+------------------+
|
v
+------------------+
| Analyze Data |
+------------------+
|
v
+------------------+
| Document Findings |
+------------------+
|
v
+------------------+
| Review & Update |
+------------------+

Job Analysis Process:

Identify Purpose: Determine the need and objectives of the job analysis.

Collect Data: Gather information through various methods like interviews, questionnaires,
observations, and existing job descriptions.

Analyze Data: Examine the collected data to identify job duties, responsibilities, skills,
and qualifications.

Document Findings: Create job descriptions and specifications based on the analyzed
data.

Review and Update: Regularly review and update the job analysis to ensure it remains
accurate and relevant.

9. List the importance of Motivation.

list of the importance of motivation:
 Principles of Management and Professional Ethics
Increases Productivity: Motivated individuals work more efficiently and produce higher-
quality results.
Boosts Performance: Motivation enhances the ability to perform tasks with greater focus
and dedication.
Promotes Goal Achievement: It helps individuals set and achieve their personal and
professional goals.
Overcomes Obstacles: Motivation aids in overcoming challenges and setbacks.
Improves Focus: Motivated individuals stay focused on their tasks and objectives.
Fosters Positive Attitude: It encourages a positive mindset, which is essential for handling
difficulties.
Encourages Persistence: Motivation helps individuals keep going despite failures or
delays.
Enhances Personal Growth: It leads to self-improvement and development over time.
Increases Job Satisfaction: Motivation makes work more enjoyable and fulfilling.
10. List the nature and purpose of controlling.

Nature of Controlling:

• Monitoring and regulating activities

• Ensuring goals are achieved effectively and efficiently

Purpose of Controlling:

• Ensure organizational objectives are met

• Identify deviations from the plan
• Take corrective actions
11. Differentiate between maintenance and quality control.

Maintenance refers to the process of ensuring that equipment, machinery, or systems

continue to function effectively by performing regular inspections, repairs, and servicing.

Quality Control involves the process of monitoring and evaluating the quality of products
or services to ensure they meet established standards and specifications.
 Principles of Management and Professional Ethics
12. What are features that effective direct control and preventive control?

Effective Direct Control Features:

• Involves immediate supervision and monitoring of operations.

• Ensures adherence to specific policies and procedures.
Preventive Control Features:
• Focuses on identifying and addressing potential risks before they occur.
• Aims to reduce the likelihood of errors or fraud by establishing guidelines and
training.
Principles of Management and Professional Ethics

PART – B
1. Explain in detail about Henny-Fayol’s general principle of
management.
Henny Fayol, a French management theorist, developed 14 principles of management,
which are widely regarded as the foundation for modern management practices. These
principles are designed to guide managers in their decision-making, organizing, and
controlling activities to achieve organizational goals efficiently. Below is a detailed
explanation of his general principles of management:
1. Division of Work: Fayol emphasized the importance of dividing tasks among
individuals to specialize and improve efficiency. By focusing on specific tasks, workers
develop expertise, which leads to better performance and faster output.
2. Authority and Responsibility: Fayol argued that authority should accompany
responsibility. Managers should have the right to give orders, but they must also be
accountable for their actions. This balance ensures that power is used effectively, and
there is no ambiguity in roles.
3. Discipline: Discipline refers to the commitment to organizational rules and
guidelines. Employees should respect authority, maintain order, and show a willingness
to comply with policies, thus fostering an efficient working environment.
4. Unity of Command: According to this principle, each employee should receive
orders from only one superior. This avoids confusion and ensures that employees are
not pulled in different directions, leading to clearer communication and more organized
workflow.
5. Unity of Direction: This principle states that activities with the same objective
should be grouped together and coordinated by a single manager. It ensures that
everyone in the organization is working toward common goals, leading to streamlined
efforts.
6. Subordination of Individual Interest to General Interest: Fayol suggested that
the interests of the organization should take precedence over personal interests.
Employees must work in harmony with organizational goals to achieve collective
success.
Principles of Management and Professional Ethics
7. Remuneration: Fair compensation is essential to maintain motivation and job
satisfaction. Fayol recommended equitable wages for employees, considering the
work’s nature, market standards, and individual contributions.
8. Centralization: Fayol believed in finding the right balance between centralization
and decentralization of authority. In centralized organizations, decisions are made at
the top levels, while decentralization pushes decision-making down the hierarchy to
allow faster responses.
9. Scalar Chain: This refers to the chain of command from the top to the bottom of
the organization. Fayol emphasized that communication should follow this hierarchy,
but informal communication can also occur across different levels to increase
efficiency.
10. Order: Fayol advocated for an organized environment where resources and
personnel are systematically arranged for maximum productivity. Proper order leads to
better operational efficiency.
11. Equity: Equity in management ensures fairness, justice, and respect for all
employees. Fayol suggested that managers should show kindness and fairness to
employees while maintaining discipline.
12. Stability of Tenure of Personnel: Long-term employment improves efficiency and
reduces turnover. Fayol recommended stability to build a skilled, loyal workforce.
13. Initiative: Fayol encouraged managers to allow employees to show initiative and
creativity. This fosters innovation and a sense of ownership over the work.
14. Esprit de Corps: Team spirit and unity are vital for organizational success. Fayol
believed that creating a harmonious work environment enhances morale and
strengthens cooperation among employees.

2. Explain about nature and level of management.

Nature and Level of Management
Management is a systematic process of planning, organizing, leading, and controlling
resources to achieve organizational goals efficiently and effectively. The nature of
management can be understood in terms of its various functions, while its levels refer to
the hierarchical structure within an organization.
Principles of Management and Professional Ethics
Nature of Management:
Goal-Oriented: The primary purpose of management is to achieve the organizational
objectives. Managers coordinate efforts and resources to ensure the fulfillment of these
goals.
Universal Process: Management is applicable across all sectors, industries, and
organizations, whether small or large. It is a universal process that can be applied in various
contexts.
Continuous Process: Management is an ongoing, dynamic process that evolves with
changing business environments. Managers continuously make decisions, plan, and adjust
strategies as the organization progresses.
Multidisciplinary: Management draws knowledge from various fields such as economics,
psychology, sociology, and engineering. It involves integrating these areas to address
complex organizational issues.
Social Process: Management involves human interactions, teamwork, and communication.
Managers need to understand human behavior and motivation to manage people
effectively.
Decision-Making: At every level, management involves making decisions that influence
the direction of the organization. This includes problem-solving, resource allocation, and
risk management.
Levels of Management:
Top-Level Management: This is the highest level in an organization, consisting of
executives like the CEO, board members, and managing directors. Top-level managers are
responsible for formulating policies, setting strategic goals, and overseeing the overall
functioning of the organization. They make decisions related to long-term planning,
investment, and organizational vision.
Middle-Level Management: Middle managers, such as department heads and branch
managers, bridge the gap between top-level and lower-level management. They are
responsible for executing the policies set by top management, coordinating departmental
activities, and managing day-to-day operations. They focus on medium-term goals and
ensure that the overall strategy is implemented effectively.
 Principles of Management and Professional Ethics
Lower-Level Management: Also known as supervisory or operational management, this
level consists of supervisors, foremen, and team leaders. Their primary responsibility is to
oversee the work of employees, ensure tasks are completed, and report progress to middle
management. They focus on short-term goals, employee performance, and maintaining
operational efficiency.

3. Explain the importance and methods of training and development.

Importance of Training and Development

Training and development are critical for the growth of both employees and organizations.
They play an essential role in improving employee skills, knowledge, and productivity,
contributing to the overall success of a company. The importance of training and
development can be outlined as follows:
Enhances Employee Performance: Regular training ensures that employees stay updated
with the latest skills, technologies, and industry trends, leading to improved job
performance.
Increases Productivity: Well-trained employees are more efficient and effective in their
roles, leading to higher productivity and better results.
Promotes Employee Satisfaction: Providing opportunities for growth and development
boosts morale, job satisfaction, and employee engagement.
Reduces Turnover: Employees who feel supported in their career growth are more likely
to remain with the organization, reducing turnover and recruitment costs.
Fosters Innovation: Training allows employees to think creatively and stay current with
innovations, which can lead to process improvements and new ideas.
Develops Future Leaders: Structured development programs help identify and nurture
high-potential employees for leadership roles, ensuring the organization’s future success.

Methods of Training and Development

On-the-Job Training (OJT): Employees learn in a real work environment, often under
the guidance of a mentor or supervisor. This method is practical and cost-effective, as it
directly relates to the employee’s job.
 Principles of Management and Professional Ethics
Classroom Training: Traditional training in a classroom setting, where employees learn
theory, concepts, and new skills through lectures, discussions, or group activities. It is
useful for large groups but may lack real-world application.
E-Learning: Online courses and digital platforms allow employees to learn at their own
pace, making this method flexible and scalable. It is ideal for reaching remote employees
or large organizations.
Workshops and Seminars: Interactive learning sessions conducted by experts on specific
topics or skills. These provide in-depth knowledge and hands-on experience.
Job Rotation: Employees are moved between different roles or departments to gain diverse
experiences, increase their skill set, and improve flexibility in the workforce.
Mentoring and Coaching: Experienced employees provide guidance and support to less-
experienced ones, helping them improve their performance and develop professionally.
Simulation Training: This method uses simulations or virtual environments to recreate
realistic job situations, allowing employees to practice problem-solving and decision-
making without real-world consequences.

4. Describe in detail about source of recruitment and factors offering

recruitment.

Sources of Recruitment:

Recruitment refers to the process of attracting, selecting, and appointing candidates for
jobs. There are two primary sources of recruitment: internal and external.
1. Internal Sources:
Promotion: Employees who are already working in the organization are given
opportunities to advance to higher positions.
Transfers: Employees are moved from one department or location to another,
usually for skill development or to fill vacancies.
Employee Referrals: Current employees recommend candidates from their
personal network who they believe would be suitable for a job.
 Principles of Management and Professional Ethics
Re-employment of Former Employees: Organizations may hire former
employees who left the company but wish to return.
Advantages: Motivates employees, reduces costs, and helps in retaining experienced
personnel.
Disadvantages: Limited pool of candidates, may create dissatisfaction among non-
promoted employees.
2. External Sources:
Job Portals and Websites: Online platforms like LinkedIn, Indeed, and Naukri
allow employers to post job openings to a large audience.
Recruitment Agencies/Consultants: These third-party services assist companies
in finding the right candidates by screening resumes and conducting interviews.
Campus Recruitment: Organizations visit universities or colleges to recruit fresh
graduates.
Walk-ins and Job Fairs: Candidates apply directly to the company through job
fairs or open house events.
Social Media: Platforms like LinkedIn, Facebook, and Twitter are used to post job
openings and reach a broader audience.
Advantages: Access to a wider pool of candidates with diverse skills and experience.
Disadvantages: Higher recruitment costs and longer time to hire.

Factors Influencing Recruitment:

Job Specifications: The skills, qualifications, and experience required for a job influence
the type of recruitment strategy used.
Labor Market Conditions: The availability of qualified candidates in the market impacts
the ease of recruitment. A competitive labor market may require more aggressive
recruitment strategies.
Organizational Policies: Company policies regarding diversity, inclusion, and internal
mobility can influence recruitment practices.
Technological Advancements: The use of advanced recruitment technologies, such as AI
and automated screening, has streamlined the hiring process.
 Principles of Management and Professional Ethics
Cost: Organizations often choose recruitment sources based on the cost-effectiveness, with
internal sources being cheaper than external sources.
Time: The urgency to fill a position may influence whether an organization uses quick
methods like internal transfers or external agencies for faster placement.

5. Discuss the steps involved in decision making process and its

characteristics with advantages.

Steps Involved in the Decision-Making Process:

Identifying the Problem: The first step in decision-making is recognizing that a problem
exists. It involves understanding the issue, its impact, and the context in which it arises.
Clear identification of the problem helps in setting the direction for decision-making.
Gathering Information: Once the problem is identified, relevant information is collected.
This includes both internal and external data that can provide insights into the situation.
The quality of information gathered is crucial in making an informed decision.
Generating Alternatives: The next step is to brainstorm possible alternatives. Different
solutions or courses of action are considered, ensuring that all potential options are
explored. This step requires creativity and critical thinking to come up with a variety of
options.
Evaluating Alternatives: Each alternative is assessed based on its pros and cons. Criteria
such as feasibility, costs, risks, benefits, and alignment with goals are used to evaluate the
alternatives. This helps in narrowing down the options to the most viable one.
Making the Decision: After evaluating all alternatives, the best course of action is chosen.
This decision is based on the analysis of available information and evaluation of
alternatives. The decision should be rational and aligned with the objectives.
Implementing the Decision: After making the decision, it is time to put it into action. This
step involves planning and executing the chosen solution. Proper allocation of resources
and clear communication are essential for successful implementation.
Reviewing the Decision: After the decision has been implemented, its effectiveness should
be evaluated. This involves monitoring the outcomes and comparing them with the
expected results. If the outcomes are unsatisfactory, corrective measures may be taken.
 Principles of Management and Professional Ethics
Characteristics of the Decision-Making Process:

Rationality: Decisions are based on logical analysis and factual data.

Structured: The process follows a clear and systematic approach.
Goal-Oriented: Every decision is made with a specific goal in mind.
Dynamic: The process is flexible and adapts to changing circumstances.
Iterative: The process may involve revisiting and revising decisions based on feedback.

Advantages of the Decision-Making Process:

Informed Decisions: The process ensures that decisions are made based on accurate
information, leading to better outcomes.
Efficiency: A structured process helps in saving time and resources by narrowing down
choices and identifying the most suitable solution.
Reduced Risk: Evaluating alternatives and reviewing outcomes minimizes the potential
for mistakes and risks.
Increased Clarity: The process helps in clarifying goals, ensuring that decisions align with
organizational objectives.
Improved Accountability: A formal process holds decision-makers accountable for their
choices and the resulting actions.

6. Explain hyper and function of departmentation in detail.

Departmentation:

Departmentation is the process of grouping activities and tasks within an organization

into distinct units or departments. It is essential for the efficient management of large
organizations, as it facilitates specialization, simplifies decision-making, and improves
operational efficiency. The main function of departmentation is to divide the entire
organization into manageable sections based on similarities in tasks, goals, or
processes. This approach helps in organizing resources and streamlining the workflow
within the organization.
There are several types of departmentation based on various criteria:
Functional Departmentation:
Principles of Management and Professional Ethics
o This is the most common form of departmentation where the organization is divided
based on specialized functions. For example, an organization may have separate
departments for marketing, finance, human resources, production, and research and
development. Each department focuses on a specific area of expertise and operates
independently to achieve its objectives.
o Advantages: It allows for specialization, efficient use of resources, and clear
responsibilities. Employees become experts in their respective fields.
o Disadvantages: It may lead to silos or lack of communication between
departments, making coordination difficult.
Product Departmentation:
o In this model, the organization is divided based on different product lines. Each
department focuses on the development, marketing, and sales of a specific product
or product group.
o Advantages: Focus on individual products allows for more in-depth understanding
and innovation in product development.
o Disadvantages: It can lead to duplication of resources and efforts across
departments, which may increase costs.
Geographical Departmentation:
o Organizations are divided based on geographic locations, such as regions,
territories, or countries. This type of departmentation is useful for organizations that
operate across large geographical areas.
o Advantages: It enables better customer service and responsiveness to local market
needs.
o Disadvantages: It can result in inefficiencies due to the duplication of roles and
resources across different locations.
Customer Departmentation:
o This approach divides the organization based on customer segments. Different
departments are created to serve the needs of specific customer groups, such as
retail, wholesale, or corporate clients.
o Advantages: It ensures a focus on customer needs and preferences, improving
customer satisfaction.
 Principles of Management and Professional Ethics
o Disadvantages: The complexity of managing different customer groups can
increase operational costs.
Process Departmentation:
o This method involves organizing departments based on different processes or stages
of production. For example, a manufacturing company might have departments for
assembly, packaging, and distribution.
o Advantages: Efficiency is improved in organizations where different stages of
production are critical.
o Disadvantages: It may create confusion in organizations where processes overlap
or are not easily distinguishable.

Functions of Departmentation:

• Coordination: By grouping activities logically, departmentation helps in coordinating

related tasks within departments.
• Specialization: It encourages specialization in specific areas, leading to more skilled and
efficient employees.
• Control: Departmentation allows managers to have better control over specific units,
enhancing the monitoring of performance.
• Clear Accountability: With clear divisions of labor, each department has well-defined
responsibilities, making it easier to assign accountability and ensure that tasks are
completed effectively.
7. In Detail, explain about the budgetary and non-budgetary.

Budgetary Controls:

Budgetary control refers to the process of preparing and managing a budget, comparing
actual performance against the budget, and taking corrective actions if necessary. It
helps organizations plan for future expenses and ensure resources are allocated
efficiently.
Definition and Purpose: Budgetary control involves the setting of financial targets
(budgets) for an organization. It is a tool used for financial planning, management, and
 Principles of Management and Professional Ethics
control. The primary objective is to ensure that the organization's resources are used
effectively and that spending does not exceed predefined limits.
Components:
o Fixed Budgets: These are set for specific periods and remain unchanged,
irrespective of changes in the business environment.
o Flexible Budgets: These can be adjusted based on the actual level of activity,
allowing for more accurate financial comparisons.
o Cash Budgets: They focus on predicting the cash inflows and outflows to ensure
the organization has sufficient liquidity.
Advantages:
o Helps in financial planning and controlling costs.
o Assists in setting clear targets for departments.
o Provides a basis for performance evaluation.
Disadvantages:
o Can be time-consuming to prepare.
o May become rigid and not allow for flexibility in response to unexpected changes.

Non-Budgetary Controls:

Non-budgetary controls refer to methods and techniques that do not involve formal
budgeting but focus on managing performance through other means. These controls are
often used to complement or supplement budgetary controls.
Definition and Purpose: Non-budgetary controls are used to monitor and regulate
business operations without relying on formal budgets. They involve qualitative measures
like policies, procedures, and standards to ensure smooth operations.
Types:
o Standard Costing: A system where predetermined costs are established, and actual
performance is compared with these standards to identify variances.
o Statutory Control: Ensuring compliance with legal and regulatory requirements.
o Internal Audits: Regular checks and audits help to monitor financial and
operational activities, ensuring proper adherence to standards and policies.
 Principles of Management and Professional Ethics
Advantages:
o Offers flexibility as it is not constrained by a fixed budget.
o Provides a more dynamic approach to managing operations and performance.
o Can be more adaptable to changing conditions in the organization.
Disadvantages:
o May lack precision and clear targets compared to budgetary controls.
o Can be more difficult to implement effectively due to its qualitative nature.

8. Elaborate the use of computers and its management control.

Use of Computers in Management Control
Computers play a crucial role in management control by providing tools and systems
that enhance decision-making, streamline operations, and improve overall efficiency.
Management control involves monitoring and regulating organizational activities to
ensure that objectives are met, and computers offer various methods to support this
process.
1. Data Processing and Analysis: Computers allow for the rapid processing of vast amounts
of data, which is essential for effective management control. Through software such as
Enterprise Resource Planning (ERP) systems, data from various departments can be
integrated, providing real-time insights into business performance. This helps managers
make informed decisions based on accurate and up-to-date information.
2. Budgeting and Financial Control: Management control involves setting budgets and
monitoring expenditures. Computers enable the development of complex budgeting
models, automate financial reporting, and track expenses in real-time. Software tools can
flag variances between actual performance and budgeted targets, allowing management to
take corrective actions quickly.
3. Forecasting and Planning: Advanced forecasting tools powered by computers assist in
predicting future trends based on historical data. These tools help in setting realistic goals
and preparing for changes in the market, customer behavior, or other external factors. This
ensures that management has the foresight to make proactive adjustments to strategies.
4. Performance Measurement: Computers facilitate performance measurement through
Key Performance Indicators (KPIs) and dashboards. By automating the collection and
 Principles of Management and Professional Ethics
presentation of performance data, managers can easily assess how well various aspects of
the business are performing against established targets. This enables timely interventions
when performance deviates from expectations.
5. Control Systems Automation: Computers are integral in automating control systems,
such as inventory management, sales tracking, and quality assurance. This reduces the risk
of human error and increases operational efficiency, which is crucial in maintaining control
over resources and activities.
6. Decision Support Systems (DSS): Computers also support decision-making by providing
sophisticated models and simulations. DSS can analyze multiple variables and provide
managers with different scenarios, helping them choose the best course of action under
varying circumstances.