In 1959 Frederick Herzberg developed the Two-Factor theory of motivation. His research showed that certain
factors were the true motivators or satisfiers. Hygiene factors, in contrast, created dissatisfaction if they were
absent or inadequate. Dissatisfaction could be prevented by improvements in hygiene factors but these
improvements would not alone provide motivation.
He concluded that such factors as company policy, supervision, interpersonal relations, working conditions,
and salary are hygiene factors rather than motivators. According to the theory, the absence of hygiene factors
can create job dissatisfaction, but their presence does not motivate or create satisfaction.
Herzberg showed that to truly motivate an employee a business needs to create conditions that make him or
her feel fulfilled in the workplace.
Limitations of Two-Factor Theory:
1. The two-factor theory overlooks situational variables.
2. Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by
Herzberg stressed upon satisfaction and ignored productivity.
3. No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the
fact that he may hate/object part of his job.
4. The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-Factor theory is
acceptable broadly.
Q. “Motivation as a need satisfying process” Explain from your view point.
Basically, motivation stems from a desire to satisfy a need. Understanding the motivation theory, the hierarchy
of needs, helps management with the business and the employees. This is based on Abraham Maslow’s
motivation theory that says that individuals are motivated to satisfy a number of needs in a hierarchy and
people move from the basic needs to a higher level needs only after the basic one is satisfied. Until the need is
satisfied, other needs have little effect on an individual’s behaviour. In other words, we satisfy the most
prepotent needs first and then progress to the less pressing ones. As one need becomes satisfied, that need
becomes less important; other needs loom up and become motivators of our behavior. Maslow’s Needs
Hierarchy is :
1. Physical - such as food, clothing and shelter.
2. Security – which is the feeling a safety, and the assurance of continued satisfaction of physical needs.
3. Social – this is the feeling of belonging, love, affection. It could be expressed in belonging to the
organization or the immediate work group. Have affiliation of some sort, be a part of something.
4. Safety – the need to have physical safety and psychological security, the desire for self esteem and the
esteem of others. This is done through increasing competence and development programs. Expressed through
recognition, titles, offices, awards.
5. Self Actualization – Self fulfillment. Reaching maximum potential. Management should socus on continuous
growth.
Q.Explain briefly the method of motivating people according to the theory of David
McClelland.
One of McClelland’s most well known theories is that human motivation is dominated by three needs.
McClelland's theory, sometimes referred to as the three need theory or as the learned needs theory,
categorizes. The importance of each of these needs will vary from one person to another. If you can determine
the importance of each of these needs to an individual, it will help you decide how to influence that individual.
McClelland asserted that a person’s needs are influenced by their cultural background and life experiences. He
also asserted that the majority of these needs can be classified as the needs for affiliation, achievement or
power. A person’s motivation and effectiveness can be increased through an environment, which provides
them with their ideal mix of each of the three needs (N-Ach, N-Pow and/or N-Affil).
The need for affiliation (N-Affil); This is the need for friendly relationships and human interaction. There is a
need “to feel liked” and “accepted” by others. A person with a high need for affiliation is likely to be a team
player and thrive in a customer services environment. They will perform best in a co-operative environment.
McClelland said that a strong need for affiliation will interfere with a manager’s objectivity. The “need to be
liked” will affect a manager’s decisions, prompting them to make decisions to increase their popularity rather
than furthering the interests of the organization.
The need for power (N-Pow); This is the need to lead others and make an impact. This need can exhibit itself
in two ways. The first which is the need for personal power may be viewed as undesirable as the person simply
needs to feel that they have “power over others”. They don’t have to be effective or further the objectives of
their employer. The second type of “need for power” is the need for institutional power. People with the need
for institutional power; want to direct the efforts of their team, to further the objectives of their organization.
The need for achievement (N-Ach); This is the need to achieve, excel and succeed. A person with this type of
need, will set goals that are challenging but realistic. The goals have to be challenging so that the person can
feel a sense of achievement. However the goals also have to be realistic as the person believes that when a
goal is unrealistic, its achievement is dependant on chance rather than personal skill or contribution. This type
of person prefers to work alone or with other high achievers. They do not need praise or recognition,
achievement of the task is their reward.
Q. Define organizational behavior.
The study of the way people interact within groups. Normally this study is applied in an attempt to create
more efficient business organizations. The central idea of the study of organizational behavior is that a
scientific approach can be applied to the management of workers. Organizational behavior theories are used
for human resource purposes to maximize the output from individual group members.
There are a variety of different models and philosophies of organizational behavior. Areas of research include
improving job performance, increasing job satisfaction, promoting innovation and encouraging leadership. In
order to achieve the desired results, managers may adopt different tactics, including reorganizing groups,
modifying compensation structures and changing the way performance is evaluated.
Q. What are the three levels of analysis in an organizational behavior?
Individual level
In individual level organizational behavior involves the study of learning, perception, creativity, motivation,
personality, turnover, task performance, cooperative behavior, deviant behavior, ethics, and cognition. At this
level of analysis, organizational behavior draws heavily upon psychology, engineering, and medicine.
Group level
At the group level of analysis, organizational behavior involves the study of group dynamics, intra- and inter
group conflict and cohesion, leadership, power, norms, interpersonal communication, networks, and roles. At
this level of analysis, organizational behavior draws upon the sociological and socio-psychological sciences
Organizational level
At the organization level of analysis, organizational behavior involves the study of topics such as organizational
culture, organizational structure, cultural diversity, inter-organizational cooperation and conflict, change,
technology, and external environmental forces. At this level of analysis, organizational behavior draws upon
anthropology and political science.
Q. What is a contingency approach to organizational behavior?
The contingency approach to management is based on the idea that there is no one best way to manage and
that to be effective, planning, organizing, leading, and controlling must be tailored to the particular
circumstances faced by an organization. Managers have always asked questions such as "What is the right
thing to do? Should we have a mechanistic or an organic structure? A functional or divisional structure? Wide
or narrow spans of management? Tall or flat organizational structures? Simple or complex control and
coordination mechanisms? Should we be centralized or decentralized? Should we use task or people oriented
leadership styles? What motivational approaches and incentive programs should we use?" The contingency
approach to management (also called the situational approach) assumes that there is no universal answer to
such questions because organizations, people, and situations vary and change over time. Thus, the right thing
to do depends on a complex variety of critical environmental and internal contingencies.
Q. What is an organization? Is the family unit an organization? Explain.
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from
the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means
a compartment for a particular job.
A social unit of people, systematically structured and managed to meet a need or to pursue collective goals on
a continuing basis. All organizations have a management structure that determines relationships between
functions and positions, and subdivides and delegates roles, responsibilities, and authority to carry out defined
tasks. Organizations are open systems in that they affect and are affected by the environment beyond their
boundaries.
Family unit is an organization: It is good to remember a family is an organization. In fact, it is the basic
organization of society. This is just one of the reasons I am such a proponent of family meetings. You wouldn't
think of running a successful business without a plan, goal setting meetings, team building sessions and clear
missions and expectations. As such, everyone in the family should have an equivalent of a job description. Each
person's job description helps him define his roles and responsibilities in the family. Just like in the workplace,
the clearer the job description and the more input is solicited from the participant, the more ownership is
established. If you have ever worked in a workplace where no one knew what their job was day to day and
rules were arbitrary, you will recall how chaotic and frustrating it was for everyone. The following information
on structuring a family council has been compiled in part from information contained in The Parent's
Handbook by Dinkmeyer & McKay, as well twenty five years of personal experience.
Q. State different types of organization structure that you know of.
The study of organizations includes a focus on optimizing organizational structure. According to management
science, most human organizations fall roughly into four types:
Pyramids or hierarchies: A hierarchy exemplifies an arrangement with a leader who leads other individual
members of the organization. This arrangement is often associated with bureaucracy. These structures are
formed on the basis that there are enough people under the leader to give him support. Just as one would
imagine a real pyramid, if there are not enough stone blocks to hold up the higher ones, gravity would
irrevocably bring down the monumental structure. So one can imagine that if the leader does not have the
support of his subordinates, the entire structure will collapse. Hierarchies were satirized in The Peter Principle
(1969), a book that introduced hierarchiology and the saying that "in a hierarchy every employee tends to rise
to his level of incompetence."
Committees or juries: These consist of a group of peers who decide as a group, perhaps by voting. The
difference between a jury and a committee is that the members of the committee are usually assigned to
perform or lead further actions after the group comes to a decision, whereas members of a jury come to a
decision. In common law countries, legal juries render decisions of guilt, liability and quantify damages; juries
are also used in athletic contests, book awards and similar activities. Sometimes a selection committee
functions like a jury. In the Middle Ages, juries in continental Europe were used to determine the law according
to consensus amongst local notables.
Matrix organization: This organizational type assigns each worker two bosses in two different hierarchies. One
hierarchy is "functional" and assures that each type of expert in the organization is well-trained, and measured
by a boss who is super-expert in the same field. The other direction is "executive" and tries to get projects
completed using the experts. Projects might be organized by products, regions, customer types, or some other
schema.
Ecologies: This organization has intense competition. Bad parts of the organization starve. Good ones get more
work. Everybody is paid for what they actually do, and runs a tiny business that has to show a profit, or they
are fired.Companies who utilize this organization type reflect a rather one-sided view of what goes on in
ecology. It is also the case that a natural ecosystem has a natural border - ecoregions do not in general
compete with one another in any way, but are very autonomous.
What is an informal organization? What are its benefits?
The informal organization is the interlocking social structure that governs how people work together in
practice. It is the aggregate of behaviors, interactions, norms, personal and professional connections through
which work gets done and relationships are built among people who share a common organizational affiliation
or cluster of affiliations. It consists of a dynamic set of personal relationships, social networks, communities of
common interest, and emotional sources of motivation. The informal organization evolves organically and
spontaneously in response to changes in the work environment, the flux of people through its porous
boundaries, and the complex social dynamics of its members. An informal organization is one which is not
reliant on a hierarchical structure, typical of large-scale companies. It is not typical for an entire organization
to be informal, as this could cause problems which are discussed in a moment, but formal organizations do
tend to have informal ones within them. Informal organizations have very loose structures. People can
become members freely and sometimes spontaneously; relationships are undefined and the sharing of
responsibility and involvement of members will vary considerably. The best example to give is an
organization’s football team. One might find a managing director, a manager and a manual worker all on the
same team- and we know that relationships between them will be very different than in the office place. So,
the football team is an informal organization; the company as a whole is formal since it has increasing levels of
power. The advantages of informal organizations are that they create strong relationships between their
members. There is no theoretical "boss" and this makes all members feel like a larger part of the organization
as a whole. The disadvantages, which explain why there are few purely informal organizations, are that a lack
of structure can result in a reduction in professionalism. The company cannot benefit from different people
managing different areas easily. Finally, the members cannot look to the future- after all, with no-one above
them, they cannot look for promotion and therefore find themselves stuck with the same job.
Q. Distinguish between formal and informal organization.
Formal organizations:-They are registered org. and are under the control of govt/private sector. These org. are
included in organized sector. These org. include MN Cs, Insurance companies, Schools, Malls, etc. In short they
are those org. which employ people organisedly. Informal Organizations:- They are not registered and are
amongs local basis only. They are those org. which are not under the control of govt. or organized sector. They
include small shops, Hockers, etc.
Q. “An organization is a social system”- Explain.
A social system is a complex set of human relationships interacting in many ways. Within an organization, the
social system includes all the people in it and their relationships to each other and to the outside world. The
behavior of one member can have an impact, either directly or indirectly, on the behavior of others. Also, the
social system does not have boundaries... it exchanges goods, ideas, culture, etc. with the environment around
it. Culture is the conventional behavior of a society that encompasses beliefs, customs, knowledge, and
practices. It influences human behavior, even though it seldom enters into their conscious thought. People
depend on culture as it gives them stability, security, understanding, and the ability to respond to a given
situation. This is why people fear change. They fear the system will become unstable, their security will be lost,
they will not understand the new process, and they will not know how to respond to the new situations.
Individualization is when employees successfully exert influence on the social system by challenging the
culture.
Q. “Informal organization grow within formal organization” elaborate the statement.
Historically, some have regarded the informal organization as the byproduct of insufficient formal
organization—arguing, for example, that “it can hardly be questioned that the ideal situation in the business
organization would be one where no informal organization existed.” However, the contemporary approach—
one suggested as early as 1925 by Mary Parker Follett, the pioneer of community centers and author of
influential works on management philosophy—is to integrate the informal organization and the formal
organization, recognizing the strengths and limitations of each. Integration, as Follett defined it, means
breaking down apparent sources of conflict into their basic elements and then building new solutions that
neither allow domination nor require compromise. In other words, integrating the informal organization with
the formal organization replaces competition with coherence. At a societal level, the importance of the
relationship between formal and informal structures can be seen in the relationship between civil society and
state authority. The power of integrating the formal organization and the informal organization can also be
seen in many successful businesses.
Q. Define management and explain its nature.
Management in all business and organizational activities is the act of getting people together to accomplish
desired goals and objectives using available resources efficiently and effectively. Management comprises
planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more
people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment
and manipulation of human resources, financial resources, technological resources and natural resources.
Since organizations can be viewed as systems, management can also be defined as human action, including
design, to facilitate the production of useful outcomes from a systemThis view opens the opportunity to
'manage' oneself, a pre-requisite to attempting to manage others.
Nature of Management.
In for-profit work, management has as its primary function the satisfaction of a range of stakeholders. This
typically involves making a profit (for the shareholders), creating valued products at a reasonable cost (for
customers) and providing rewarding employment opportunities (for employees). In nonprofit management,
add the importance of keeping the faith of donors. In most models of management/governance, shareholders
vote for the board of directors, and the board then hires senior management. Some organizations have
experimented with other methods (such as employee-voting models) of selecting or reviewing managers; but
this occurs only very rarely.
In the public sector of countries constituted as representative democracies, voters elect politicians to public
office. Such politicians hire many managers and administrators, and in some countries like the United States
political appointees lose their jobs on the election of a new president/governor/mayor.
1. Universality: Management is an universal phenomenon in the sense that it is common and essential
element in all enterprises. Managers perform more or less the same functions irrespective of their position or
nature of the organization. The basic principles of management can be applied in all managerial situations
regardless of the size, nature and location of the organization. Universality of managerial tasks and principles
also implies that managerial skills are transferable and managers can be trained and developed.
2. Purposeful: Management is always aimed at achieving organizational goals and purposes. The success of
management is measured by the extent to which the desired objectives are attained. In both economic and
non-economic enterprises, the tasks of management are directed towards effectiveness (i.e., attainment of
organizational goals) and efficiency (i.e., goal attainment with economy of resource use).
3. Social process: Management essentially involves managing people organized in work groups. It includes
retaining, Developing and motivating people at work, as well as taking care of their satisfaction as social
beings. All these interpersonal relations and interactions makes the management as asocial process.
4. Coordinating force: Management coordinates the efforts of organization members through orderly
arrangement of inter-related activities so as to avoid duplication and overlapping. Management reconciles the
individual goals with the organizational goals and integrates human and physical resources.
5. Intangible: Management is intangible. It is an unseen force. Its presence can be felt everywhere by the
results of its effort which comes in the form of orderliness, adequate work output, satisfactory working
climate, employees satisfaction etc.
6. Continuous process: Management is a dynamic and an on-going process. The cycle of management
continues to operate so long as there is organised action for the achievement of group goals.
7. Composite process: Functions of management cannot be undertaken sequentially, independent of each
other. Management is a composite process made up of individual ingredients. All the functions are performed
by involving several ingredients. Therefore, the whole process is integrative and performed in a network
fashion.
8. Creative organ: Management creates energetics effect by producing results which are more than the sum of
individual efforts of the group members. It provides sequence to operations, matches jobs to goals, connects
work to physical and financial resources. It provides creative ideas, new imaginations and visions to group
efforts. It is not a passive force adopting to external environment but a dynamic life giving element in every
organization.
Q. Discuss the systems theory of management.
Systems theory has had a significant effect on management science and understanding organizations. First,
let’s look at “what is a system?” A system is a collection of part unified to accomplish an overall goal. If one
part of the system is removed, the nature of the system is changed as well. For example, a pile of sand is not a
system. If one removes a sand particle, you’ve still got a pile of sand. However, a functioning car is a system.
Remove the carburetor and you’ve no longer got a working car. A system can be looked at as having inputs,
processes, outputs and outcomes. Systems share feedback among each of these four aspects of the systems.
Let’s look at an organization. Inputs would include resources such as raw materials, money, technologies and
people. These inputs go through a process where they’re planned, organized, motivated and controlled,
ultimately to meet the organization’s goals. Outputs would be products or services to a market. Outcomes
would be, e.g., enhanced quality of life or productivity for customers/clients, productivity. Feedback would be
information from human resources carrying out the process, customers/clients using the products, etc.
Feedback also comes from the larger environment of the organization, e.g., influences from government,
society, economics, and technologies. This overall system framework applies to any system, including
subsystems (departments, programs, etc.) in the overall organization. Systems theory may seem quite basic.
Yet, decades of management training and practices in the workplace have not followed this theory. Only
recently, with tremendous changes facing organizations and how they operate, have educators and managers
come to face this new way of looking at things. This interpretation has brought about a significant change (or
paradigm shift) in the way management studies and approaches organizations. The effect of systems theory in
management is that writers, educators, consultants, etc. are helping managers to look at the organization from
a broader perspective. Systems theory has brought a new perspective for managers to interpret patterns and
events in the workplace. They recognize the various parts of the organization, and, in particular, the
interrelations of the parts, e.g., the coordination of central administration with its programs, engineering with
manufacturing, supervisors with workers, etc. This is a major development. In the past, managers typically
took one part and focused on that. Then they moved all attention to another part. The problem was that an
organization could, e.g., have a wonderful central administration and wonderful set of teachers, but the
departments didn’t synchronize at all.
Q. Explain the contingency theory of management.
Basically, contingency theory asserts that when managers make a decision, they must take into account all
aspects of the current situation and act on those aspects that are key to the situation at hand. Basically, it’s the
approach that “it depends.” For example, the continuing effort to identify the best leadership or management
style might now conclude that the best style depends on the situation. If one is leading troops in the Persian
Gulf, an autocratic style is probably best (of course, many might argue here, too). If one is leading a hospital or
university, a more participative and facilitative leadership style is probably best.
Q. Explain theory Z as expounded by William Ouchi.
William Ouchi is an American professor of business management who has worked at the Stanford business
school and the Anderson School of Management at the University of California for many years. He first came to
prominence in 1981 for his work on bridging the gap between American management, then in decline, and
Japanese management, then riding a boom. His belief that American business could learn from the
management beliefs of Japanese industry led to his idea of Theory Z and his first book, "Theory Z: How
American Management Can Beat the Japanese Challenge". The book became a New York Times best-seller and
today ranks as the 7th most widely-read business book in all US libraries. His theory is now regarded as
influencing the management style of major organisations such as IBM, Procter and Gamble and Hewlett
Packard.
The Different Assumptions Between American and Japanese Management
Just as Douglas MacGregor's theory X and Y were based on management assumptions about people, so too is
Ouichi's Theory Z approach. Here are 5 Theory Z principles.
1. Job Security : The Japanese Theory Z approach believes that people are a far too valuable resource to be
lost when the economy has a downturn. In a recession, the Japanese don't fire people, they'll reduce their
hours until things pick up. By contrast, when a US company is in trouble, they waste no time laying people off
and as a result lose all the knowledge, skills, and expertise that go with them.
2. Trust : The Japanese feel that you should never give people a reason to distrust you. Loyalty is expected of
all employees. In American companies, distrust and suspicion are endemic. If a person or supplier is not
delivering, the company will go elsewhere for a better deal.
3. Decision-Taking : There are two differences between the Japanese and American approaches to decisionmaking.
In Japanese companies, everyone gets involved in the decision-taking process as part of their
commitment to the organisation. As a result, the process is slow. In the US, decision-taking is the responsibility
of the few and so is quick.
4. Teamwork: In Japan, organisational success is viewed as the result of team effort, so it is illogical to reward
invididuals. In the US, there is still a belief that, if you do the work and claim the results, you should get the
reward.
5. Motivation and Target-Setting: The Japanese corporation rarely sets invididuals targets as a way of
motivating them. They believe that individual motivation comes from others in the team. As a result, it often
takes years before a Japanese employee receives their first performance evaluation and even longer before
they are promoted. By contrast, the American corporation believes that the role of management is to set their
subordinates targets and ensure that these are met, using evaluation and promotion as incentives and
rewards.
Q. Why has Henry Fayol been called “The father of Modern management theory”?
Henri Fayol was a French mining engineer and management theorist. He developed the theory of Scientific
Management. He studied at the mining school "Ecole Nationale Superieure des Mines" in Saint-Etienne of
France. He is well known as the father of modern management theory. Fayol started as an engineer at a
mining company and he became its managing director in 1888. Fayol's contributions were first published in
book titled "Administration Industrielle et Generale", in 1916. He looked at the problems of managing an
organisation from top management point of view. He has used the term 'administration' instead of
'management'. His contributions are generally termed as operational management or administrative
management. Fayol has divided the activities of an industrial organisation into six groups. 1.Technical: Related
to production. 2. Commercial: Related to buying, selling and exchange. 3. Financial: It is search for capital and
its optimum use. 4. Security: Protection of property and person. 5. Accounting (Including statistics). 6.
Managerial: It includes planning, organisation, command, coordination, and control. Fayol has identified the
qualities required in a manager. According to him the qualities a manager has to possess are as under; 1.
Physical (health, vigour, and address) 2.Mental (ability to understand and learn, judgement, mental vigour,
and capability) 3. Moral (energy, firmness, initiative, loyalty, tact, and dignity) 4. Education (general
acquaintance) 5. Technical (peculiar to the function being performed) 6. Experience (arising form the work).
Fayol listed and reviewed fourteen principles of management on the following aspects. Division of Work ,
Authority and Responsibility, Discipline, Unity of Command, Unity of Direction, Subordination of Individual
Interest to General Interest, Remuneration, Centralization, Scalar Chain, Order, Equity, Stability of Tenure of
Personnel, Initiative, Esprit de Corps. The principles enunciated are not aimed at being exhaustive but are the
ones to which Fayol had recourse most often. He stresses the universality of such principles and their
application not only to business but also for the success of all associations of individuals. Fayol regarded the
elements of management as the functions of management. He said that management should be viewed as a
process consisting of 5 elements. They are Planning, Organising, Commanding, Coordination, Controlling. He
has regarded planning as the most important managerial function. Creation of organisation structure and
commanding function is necessary to execute plans. Coordination is necessary to make sure that every one is
working together , and control looks whether everything is proceeding according to the plan.
Q. Who is the father of scientific management? What was his major concern?
Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an American mechanical engineer who
sought to improve industrial efficiency. He is regarded as the father of scientific management and was one of
the first management consultants. Taylor was one of the intellectual leaders of the Efficiency Movement and
his ideas, broadly conceived, were highly influential in the Progressive Era. The main elements of his theory
were: 1. Management is a true science. The solution to the problem of determining fair work standards and
practices could be discovered by experimentation and observation. From this, it follows, that there is "one
right way" for work to be performed. 2. The selection of workers is a science. Taylor's "first class worker" was
someone suitable for the job. It was management's role to determine the kind of work for which an employee
was most suited, and to hire and assign workers accordingly. 3. Workers are to be developed and trained. It is
management's task to not only engineer a job that can be performed efficiently, but management is
responsible for training the worker as to how the work is to be performed and for updating practices as better
ones are developed. This standardizes how the work is performed in the best way. 4. Scientific management is
a collaboration of workers and managers. Managers are not responsible for execution of work, but they are
responsible for how the work is done. Planning, scheduling, methods, and training are
Q. State the essentials of quantitative management theory.
Quantitative Management (also known as Operations Research) off ers a systematic and scientific approach to
problem solving and decision making in complex environments and situations of uncertainty and conflict. The
discipline is characterised by a search for an optimal (best) answer for a problem by using quantitative
(numerical) models. The use of mathematical models enables a decision maker to better understand the
problems facing him/her and provides a tool for making informed and reasoned judgements. Quantitative
Management is a practical field. It can be applied in many areas: Manufacturing, businesses management,
banking, environmental planning, mining, housing and engineering projects, management consultancy – in
fact, in every situation where numerical data are available and management or decision making takes place.
The aim of the undergraduate program in Quantitative Management is to give a student a substantive
theoretical background in Quantitative Management, and – at the same time – to inculcate modeling skills and
systematic thinking when solving decision making problems. At the conclusion of each year of the curriculum a
student would be equipped with a variety of techniques and the skill of applying them to problems that arise in
practice. Quantitative Management is a multidisciplinary subject that can be usefully combined with any other
subject in this College.
Q. What is meant by the term “management theory jungle”?
The purpose of this article is to identify the various schools of management theory, indicate the source of the
differences, and to provide some suggestions for disentangling the management theory jungle. Koontz
describes six schools of management theory as follows. 1. The Management Process School, 2. The Empirical
School, 3. The Human Behavior School, 4. The Social System School, 5. The Decision Theory School, 6. The
Mathematical School. The Major Sources of Mental Entanglement that create the Management Theory Jungle.
Five sources of entanglement or confusion include the following: 1. The Semantics Jungle - There is no
agreement on the meaning of the words management, organization, leadership, communication, and human
relations to give a few examples. 2. Differences in the Definition of Management as a Body of Knowledge -
What is management? Who is a manager? If everything is management and everyone is a manager, how can
management theory be regarded as a useful or scientific? 3. The a priori Assumption - Ignoring the work of
Fayol, Mooney, Brown, Urwick, Gulick and others on the grounds that they are universalists. 4. The
Misunderstanding of Principles - For example, confusion over the validity of principles such as unity of
command, and span of control. 5. The Inability or Unwillingness of Management Theorists to Understand
each other - The roadblock to understanding is unwillingness.
Q. Describe the contributions of Frank and lillina Gilbreth to put scientific management in
to effect.
Lillian and Frank Gilbreth were certain that the revolutionary ideas of Frederick Winslow Taylor, as Taylor
formulated them, would be neither easy to implement nor sufficient; their implementation would require hard
work by both engineers and psychologists to make them successful. Both Lillian and Frank Gilbreth believed
that scientific management as formulated by Taylor fell short when it came to managing the human element
on the shop floor. The Gilbreths helped formulate a constructive critique of Taylorism; this critique had the
support of other successful managers.Her work included the marketing research for Johnson & Johnson in
1926 and her efforts to improve women’s spending decisions during the first years of the Great Depression.
She also helped companies such as Johnson & Johnson and Macys with their management departments. In
1926, when Johnson & Johnson hired Lillian as a consultant to do marketing research on sanitary napkins., the
firm benefited in three ways. First, it could use her training as a psychologist in measuring and the analysis of
attitudes and opinions. Second, it could give her the experience of an engineer who specializes in the
interaction between bodies and material objects. Third, she would be a public image as a mother and a
modern career woman to build consumer trust.
Q. “Management is culture-bound”- explain.
Because we live in a cross-cultural world.Diversity is a very similar issue-most workforces are increasingly
diverse- in terms of age,gender,ethnic origin,qualifications etc so managing complex staff. Culture affects
management by affecting the values and beliefs that managers hold towards their job, coworkers and
employees, and the organization. For example, in western management, business values. Any where from
some degree to the nth degree depending upon your identification with your culture. Culture is learned. Those
who apply what they learn are bound by those actions. Many people believe that safety should be part of the workplace culture. In many workplaces, it is clearly not part of the culture, and so must be achieved by
management initiative.
Q. Importance of management in organization.
It helps in Achieving Group Goals - It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards
achievement of pre-determined goals. By defining objective of organization clearly there would be no wastage
of time, money and effort. Optimum Utilization of Resources - Management utilizes all the physical &
human resources productively. This leads to efficacy in management. Management provides maximum
utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It
makes use of experts, professional and these services leads to use of their skills, knowledge, and proper
utilization and avoids wastage. Reduces Costs - It gets maximum results through minimum input by proper
planning and by using minimum input & getting maximum output. Management uses physical, human and
financial resources in such a manner which results in best combination. This helps in cost reduction.
Establishes Sound Organization - No overlapping of efforts (smooth and coordinated functions). To establish
sound organizational structure is one of the objective of management which is in tune with objective of
organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is
accountable to whom, who can give instructions to whom, who are superiors & who are subordinates.
Establishes Equilibrium - It enables the organization to survive in changing environment. It keeps in touch with
the changing environment. With the change is external environment, the initial co-ordination of organization
must be changed. So it adapts organization to changing demand of market / changing needs of societies.
Essentials for Prosperity of Society - Efficient management leads to better economical production which helps
in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage
of scarce resource. It improves standard of living.
Q. Distinguish between the science of management and the art of management.
FOUNDATIONS OF THE MANAGEMENT AS A SCIENCE PERSPECTIVE
Practicing managers who believe in management as a science are likely to believe that there are ideal
managerial practices for certain situations. That is, when faced with a managerial dilemma, the manager who
believes in the scientific foundation of his or her craft will expect that there is a rational and objective way to
determine the correct course of action. This manager is likely to follow general principles and theories and also
by creating and testing hypotheses. For instance, if a manager has a problem with an employee's poor work
performance, the manager will look to specific means of performance improvement, expecting that certain
principles will work in most situations. He or she may rely on concepts learned in business school or through a
company training program when determining a course of action, perhaps paying less attention to political and
social factors involved in the situation. Many early management researchers subscribed to the vision of
managers as scientists. The scientific management movement was the primary driver of this perspective.
Scientific management, pioneered by Frederick W. Taylor, Frank and Lillian Gilbreth, and others, attempted to
discover "the one best way" to perform jobs. They used scientific processes to evaluate and organize work so
that it became more efficient and effective. Scientific management's emphasis on both reducing inefficiencies
and on understanding the psychology of workers changed manager and employee attitudes towards the
practice of management. See Exhibit 1 for a summary of the principles of scientific management.
FOUNDATIONS OF THE MANAGEMENT AS AN ART PERSPECTIVE
Practicing managers who believe in management as an art are unlikely to believe that scientific principles and
theories will be able to implemented in actual managerial situations. Instead, these managers are likely to rely
on the social and political environment surrounding the managerial issue, using their own knowledge of a
situation, rather than generic rules, to determine a course of action. For example, as a contrast to the example
given previously, a manager who has a problem with an employee's poor work performance is likely to rely on
his or her own experiences and judgment when addressing this issue. Rather than having a standard response
to such a problem, this manager is likely to consider a broad range of social and political factors, and is likely to
take different actions depending on the context of the problem. Henry Mintzberg is probably the most wellknown
and prominent advocate of the school of thought that management is an art. Mintzberg is an academic
researcher whose work capturing the actual daily tasks of real managers was ground breaking research for its
time. Mintzberg, through his observation of actual managers in their daily work, determined that managers did
not sit at their desks, thinking, evaluating, and deciding all day long, working for long, uninterrupted time
periods. Rather, Mintzberg determined that mangers engaged in very fragmented work, with constant interruptions and rare opportunities to quietly consider managerial issues. Thus, Mintzberg revolutionized
thinking about managers at the time that his work was published, challenging the prior notion that managers
behaved rationally and methodically. This was in line with the perspective of management as an art, because it
indicated that managers did not necessarily have routine behaviors throughout their days, but instead used
their own social and political skills to solve problems that arose throughout the course of work.
Q.“Management is getting things done through others”-explain the statement.
This has become a very popular definition of management for several reasons. Firstly, this definition is very
simple and easy to understand. Secondly, it highlights the indirect nature of a manager's job. A manager does
not operate a machine or sell a product himself. Rather he guides others in producing and selling goods and
services. Thirdly, this definition reveals that a manager is the leader of people working under him. Fourthly, it
states that management is basically an art or practice of achieving results. The above definition is, however,
inadequate for the present day concept of management. It suffers from the following drawbacks. (i) This
definition does not reveal that management is a science. The modern concept of management is much wider
than simply a skill in getting things done through other people. Since the days of F.W. Taylor management has
become a science based on certain fundamental principles. (ii) The above definition does not highlight how
does management get things done through people. It fails to reveal the functions of a manager and the skills
used for getting things done. (iii) This definition does not recognize the role of human beings. It treats people
as mere tools forgetting results and does not consider their feelings, emotions and needs. People are
inanimate objects and cannot be treated as mere tools. (iv)The above definition gives an impression that
management gets things done by hook or crook. Results alone are not significant. The means employed to
achieve results are equally important. This definition is of man's putative character. (v) This definition does not
reveal that a formal organizational set up is needed for getting things done.
Q. Distinguish between administration and management.
Distinguish between administration and management
Q. What are the key characteristics of Japanese management practices?
The culture of Japanese management that is often portrayed in Western media is generally limited to Japan's
large corporations. These flagships of the Japanese economy provide their workers with excellent salaries,
secure employment, and working conditions. These companies and their employees are the business elite of
Japan. Though not as much for the new generation still a career with such a company is the dream of many
young people in Japan, but only a select few attain these jobs. Qualification for employment is limited to the
few men and women who graduate from the top thirty colleges and universities in Japan. Service to the public
– by providing high-quality goods and services at reasonable prices, we contribute to the public’s well-being;
Fairness and honesty – we will be fair and honest in all our business dealings and personal conduct; Teamwork
for the common cause – we will pool abilities, based on manual trust and respect; Uniting effort for
improvement – we will constantly strive to improve our corporate and personal performances; Courtesy and
humility – we will always be cordial and modest and respect the rights and needs of others;
Accordance with natural laws – we will abide by the laws of nature and adjust to the ever-changing conditions
around us; and Gratitude for blessings – we will always be grateful for all the blessings and kindness we have
received.”The “guiding principles” were “remarkable for their time.”
Q. What is management by objective(MBO)? Discuss the process of MBO.
Management by Objectives (MBO) is a process of defining objectives within an organization so that
management and employees agree to the objectives and understand what they need to do in the organization.
The term "management by objectives" was first popularized by Peter Drucker in his 1954 book 'The Practice of
Management'. The essence of MBO is participative goal setting, choosing course of actions and decision
making. An important part of the MBO is the measurement and the comparison of the employee’s actual
performance with the standards set. Ideally, when employees themselves have been involved with the goal
setting and choosing the course of action to be followed by them, they are more likely to fulfill their
responsibilities. According to George S. Odiorne, the system of management by objectives can be described as
a process whereby the superior and subordinate managers of an organization jointly identify its common
goals, define each individual's major areas of responsibility in terms of the results expected of him, and use
these measures as guides for operating the unit and assessing the contribution of each of its members. Here is
a quick 5 step process outline that most companies use to manage MBOs (Management by Objectives),
recapping some of the things I talked about in my last post. As you will see, this is just common sense. First,
companies need to set corporate objectives. Some goals are then set for the employees to meet those
objectives. The employee performance is then measured through the performance cycle, and evaluated at the
end. Finally, the employee is rewarded for his or her performance, and we repeat the cycle.
To
To elaborate on the comments I received in the last post, setting good objectives is very important; that’s at
the core of MBOs. Depending on the level of sophistication of the MBO solution, some help with objective
setting, but most solutions simply help out to manage them. A big aspect of MBO solutions is the performance
monitoring. Traditionally, that’s an activity performed at the end of a performance cycle. With an MBO
solution, managers can usually record some feedback about how employees performed on a certain milestone
at anytime. This way, the employee’s contribution is not forgotten when it’s time to evaluate them. Theperformance evaluation is another big piece of MBO management. It is related to performance monitoring
but records final observations
Q. Following Henry Mintzberg explain the different roles played by managers.
Mintzberg then identified ten separate roles in managerial work, each role defined as an organised collection
of behaviours belonging to an identifiable function or position. He separated these roles into three
subcategories: interpersonal contact (1, 2, 3), information processing (4, 5, 6) and decision making (7-10).
1. FIGUREHEAD: the manager performs ceremonial and symbolic duties as head of the organisation;
2. LEADER: fosters a proper work atmosphere and motivates and develops subordinates;
3. LIASION: develops and maintains a network of external contacts to gather information;
4. MONITOR: gathers internal and external information relevant to the organisation;
5. DISSEMINATOR: transmits factual and value based information to subordinates;
6. SPOKESPERSON: communicates to the outside world on performance and policies.
7. ENTREPRENEUR: designs and initiates change in the organisation;
8. DISTURBANCE HANDLER: deals with unexpected events and operational breakdowns;
9. RESOURCE ALLOCATOR: controls and authorises the use of organisational resources;
10. NEGOTIATOR: participates in negotiation activities with other organisations and individuals.
Q. Explain the various interpersonal skills of managers.
The list of interpersonal skills as a manager includes items that can be invaluable to any type of management
position.
1. Conflict Management: Conflict management is an essential interpersonal skill that all managers need to
have an understanding of, according to management expert Gregorio Billikopf writing on the University of
California at Berkeley website. Do not allow conflict between employees to go unaddressed. If you see
conflict starting to happen, take the employees aside and try to address the conflict immediately. The longer
a pending conflict goes unchecked, the worse it will be when it finally does result in a confrontation.
2. Body Language: Much of what an employee gets from a conversation with you comes from your body
language and the signals you give, according to business communication expert Lyndsay Swinton writing on
the Management for the Rest of Us website. Body language signals such as crossing your arms and not
making eye contact can make an employee believe that something bad is about to happen. Work on your
body language skills to make sure you get the point across correctly every time. Make eye contact with your
employee when you are talking to him, and avoid authoritative signals such as crossing your arms that can
give the wrong impression. By the same token, crossing your arms when you are trying to make a serious
point will help the employee to understand that you mean what you say.
3. Involvement: When you manage several people, you need to remember that the individual tasks of each
employee are important to them. If you assign tasks, then keep a log so that you know which employee is
engaged in which projects. Have weekly meetings with employees to discuss the activities they are doing in
their daily job tasks, and stay up to date on what all of your employees are doing.
4. Confidant: As a manager, you do not want to get too intimately involved in the personal lives of your
employees. But becoming an employee confidant for the personal issues that affect employees' work
performance is a skill that all managers need to have. If a personal issue is affecting an employee's
performance, then encourage that employee to let you know what is going on. You cannot help an
employee if he does not give you some idea of what the issue is. Work with your human resources
department to come up with solutions that will benefit the employee and the company.
Q. What are the skills and interpersonal characteristics that a managers has to possess?
Managers need various skills ranging from technical to design to be effective. The relative importance of these
skills varies according to the level in the organization. In addition, analytical and problem-solving abilities and
certain personal characteristics are sought in managers. Analytical and problem solving abilities: One of the
frequently mentioned skills desired of managers is analytical and problem solving ability. In other words,
managers must be able to identify problems, analyze complex situations, and by solving the problems
encountered, exploit the opportunities presented. Desire to manage: The successful manager has a strong
desire to manage, to influence others, and to get results through team efforts of subordinates. To be sure,
many people want the privileges of managerial positions, which include high status and salary but they lack the
basic motivation to achieve results by creating an environment in which people work together toward
common aims. The desire to manage requires effort, time, energy, and, usually, long hours of work.
Communication skills and empathy: Another important characteristic of managers is the ability to
communicate through written reports, letters, speeches, and discussions. Communication demands clarity, but
even more, it demands empathy. This is the ability to understand the feelings of another person and to deal
with the emotional aspects of communication. Communication skills are important for effective intra-group
communication, that is, communication with people in the same organizational unit. Integrity and honesty:
Managers must morally sound and worthy of trust. Integrity in managers includes honesty in money matters
and in dealing with others, effort to keep superiors informed, adherence to the full truth, strength of
character, and behavior in accordance with ethical standards. Past performance as a manager: Past
performance as a manager is probably the most reliable forecast of a manager's future performance. Of
course, an assessment of managerial experience is not possible in selecting first-line supervisors from the
ranks, since they have not had such experience.
Q. “Every manager is a decision maker” discuss.
Decision making is a central aspect of virtually every management and business activity; important decisions
are not only made by managers and entrepreneurs, but also by the consumers of their goods and services, and
by their business rivals, partners and employees. The ability to understand how decisions are made, and to
predict, guide and improve those decisions, will be an invaluable part of every manager's toolbox. It is this
ability that will be developed in this course. Some decisions are impossible to make analytically, for lack of
time, data, computational ability, or awareness. These are situations that could put decision makers at risk of
falling into systematic biases and errors. The first part of this course will raise your awareness about these
'traps' with a view to becoming a better intuitive decision maker. Other decisions are made with and require
extensive thought and analysis, as the stakes are high, there are multiple conflicting objectives to balance, and
many sources of uncertainty about the future. To these decisions we will devote the second half of the course,
where you will learn how to structure decision problems, identify relevant objectives and make trade-offs
among them when objectives are in conflict with one another, as well as, represent and analyse the main
uncertainties and risks involved in a decision.
Q. As a manager describe when a plan considered an effective plan.
Project managers can get a head start on success by creating a project planning guide that serves as a
reference tool for current and future projects. The project planning guide should be company-specific, taking
the organization’s size and standard processes into account, yet flexible enough to accommodate projects of
varying size and scope. A project manager who is working for a small company and coordinating relatively few
team members faces a far different task than one who is managing a large, complex project with man. An
effective project planning guide should outline the questions that need to be answered at the outset in order
to establish clear and measurable project goals and identify the budget and departmental resources required
for its completion. Senior management plays an important role in the preliminary steps of a project, as these
individuals must sign off on the project’s goals and objectives and allocate the necessary resources. It is the
responsibility of the project sponsor to obtain executive-level buy-in, but a project manager will often assist in
preparing the initial presentation or request.
Q. How do the managerial skills differ in the organizational hierarchy?
Organisations have usually three levels. Top management is connected with planning & strategy making for
overall organisations & monitoring functional managers & their functions through control reports. Top
management should know how to manage managers. Middle level management need to know how to manage
their functions & use their functional skills & managerial skills to unify their activities to overall goal
achievement of the organisations. Lower echelon of management should know how to use job .operational
skills to manage their job/operations.Managerial skills at top level would be Managing the managers & at
middle level managing the functional area & lower level managing the job.
Q. Briefly discuss the different styles of decision making.
Intuitive Style: Some people are spontaneous by nature and like to decide “on the spot”. Experience and
circumstances may sometimes support this type of problem solving approach. However, those who
consistently use this style are – admittedly – comfortable with the “trial and error”, or “hit and miss”
approach. Limited Procrastination Style: Not to be confused with never wanting to make a decision, this style
involves the delaying of a decision until enough factors have been evaluated and/or enough time has gone by
for the situation to stabilize. Systematic Style: Involves identifying and evaluating each possible course of
action. Of all the decision making styles, this is obviously the most likely candidate for computer based decision
making tools. Individualistic Style: Some individuals prefer to research and arrive at a decision on their own,
without any active input from others. By Consensus Style: Applies to decisions that have to, or should
preferably, be arrived at as a group.
Q. What are the most commonly used tests in the selection process of managers?
Examples of employment tests and other selection procedures, many of which can be administered online,
include the following:
Cognitive tests assess reasoning, memory, perceptual speed and accuracy, and skills in arithmetic and
reading comprehension, as well as knowledge of a particular function or job;
Physical ability tests measure the physical ability to perform a particular task or the strength of specific
muscle groups, as well as strength and stamina in general;
Sample job tasks (e.g., performance tests, simulations, work samples, and realistic job previews) assess
performance and aptitude on particular tasks;
Medical inquiries and physical examinations, including psychological tests, assess physical or mental
health;
Personality tests and integrity tests assess the degree to which a person has certain traits or dispositions
(e.g., dependability, cooperativeness, safety) or aim to predict the likelihood that a person will engage in
certain conduct (e.g., theft, absenteeism);
Criminal background checks provide information on arrest and conviction history;
Credit checks provide information on credit and financial history;
Performance appraisals reflect a supervisor’s assessment of an individual’s performance; and
English proficiency tests determine English fluency.
Q. “Planning and control are Siamese twins” explain it.
PPC comprise the planning, routing, dispatching in the manufacturing process sothat the movement of
material, performance of machines and operation of labour however are subdivided and are directed and
coordinated as to quantity, quality, time and place.Planning and control are two basic and interrelated
managerial functions. They are sointerrelated that they can be and often are considered as being one function.
Planning is the preparation activity while control is the post-operation function. Both of them are so
closelyrelated that they are treated as Siamese twins. Planning sets the objectives, goals, targets onthe basis of
available resources with their given constraints. Control is the integral part of effective planning. Similarly
control involves assessment of the performance, suchassessment can be made effectively only when some
standard of are set in advance. Planninginvolves setting up to such standard. The controlling is made by
comparing the actual performance with these present standard and deviations are ascertained and analyzed.
Production is an organised activity of converting raw materials into useful products but before starting that
work of actual production, production planning is done in order toanticipated possible difficulties and decide
in advance as to how the production should becarried out in the best and economical way.Since mere planning
of production is not only sufficient, hence management takesall possible steps to see that project or plan
chalked by the planning department are properlyadhered to and the standards set are attained in order to
achieve it, control over production isexercised. The aim of production control is to produce the products of
right quality, in rightquantity at the right time by using the best and least expensive methods
Q. Briefly describe the steps of the basic control process.
Controlling is one of the managerial functions like planning, organizing, staffing and directing. It is an important
function because it helps to check the errors and to take the corrective action so that deviation from standards
are minimized and stated goals of the organization are achieved in a desired manner.
Control is a continuous process
Control is a management process
Control is embedded in each level of organizational hierarchy
Control is forward looking
Control is closely linked with planning
Control is a tool for achieving organizational activities
Control is an end process
The control process is a continuous flow in Taj between measuring, comparing and action. Naturally Taj follows
the four steps in the control process: establishing performance standards, measuring actual performance,
comparing measured performance against established standards, and taking corrective action. Step 1:
Establish Performance Standards. Taj's Standards are created when objectives are set during the planning
process. Its standard is a guideline established as the basis for measurement. It is a precise, explicit statement
of expected results from a product, service, machine, individual, or organizational unit. It is usually expressed
numerically and is set for quality, quantity, and time. Tolerance is permissible deviation from the standard.
Step 2: Measure Actual Performance. Supervisors collect data to measure actual performance to determine
variation from standard. Written data might include time cards, production tallies, inspection reports, and
sales tickets. Personal observation, statistical reports, oral reports and written reports can be used to measure
performance. Management by walking around, or observation of employees working, provides unfiltered
information, extensive coverage, and the ability to read between the lines. While providing insight, this
method might be misinterpreted by employees as mistrust. Oral reports allow for fast and extensive feedback.
Step 3: Compare Measured Performance against Established Standards. Comparing results with standards
determines variation. Some variation can be expected in all activities and the range of variation - the
acceptable variance - has to be established. Management by exception lets operations continue as long as
they fall within the prescribed control limits. Deviations or differences that exceed this range would alert the
supervisor to a problem. Step 4: Take Corrective Action. The supervisor must find the cause of deviation from
standard. Then, he or she takes action to remove or minimize the cause. If the source of variation in work
performance is from a deficit in activity, then a supervisor can take immediate corrective action and get
performance back on track. Also, the supervisors can opt to take basic corrective action, which would
determine how and why performance has deviated and correct the source of the deviation. Immediate
corrective action is more efficient; however basic corrective action is the more effective.
Q. State the importance of the control process in an organization.
There is a strong school of thought holding forth this premise: chaos does not actually exist. What passes for
chaos, say some, is simply a lack of complete understanding of the contributing factors in a seemingly chaotic
process. "No," say others, "chaos exists and can never be fully controlled nor completely understood." Take
this old example. Pour a bucket containing 100 golf balls onto a gymnasium floor and predict the final resting
place of each of the balls. "Impossible," say the chaotic theory proponents, "because the system at work (in
this case, gravity, mass, variable air currents, floor surface, etc.), produces chaos, and things chaotic can never
be accurately predicted." "Not so," say the anti-chaos zealots. "With enough data at hand, and understanding
of the dynamic processes occurring, the path of each ball could be accurately predicted." Given my experience
with the flight of golf balls, I tend to side with the chaos proponents on this one. Nevertheless, the following
statements can be made with certainty: much of what passes for chaos in business today is not chaos at all. It
is a failure to control processes that are imminently controllable. Which brings us to three absolutes:
1. Failure to control processes (whether or not you call it chaos), always results in defects and loss of
quality.
2. Compromises in quality always result in customer dissatisfaction.
3. Customer dissatisfaction always results in the eventual failure of the product of any product or
service.
Q. “Planning is looking Ahead & Control is looking back” - Comment.
Planning is Looking Ahead is true because it contributes heavily to success and gives us some control over the
future. By, planning we set aside our tasks and deadlines so we can enlarge our mental focus and seeing the
bigger picture. By, planning we can set our Personal or organizational goals and for this defiantly we have to
look ahead. But, Planning is not ending with such strategies or guidelines. It has relation with Implementation
and controls. Because plans are not always proceed as conceived. The control process measures progress
towards goal attainment and indicate corrective action if too much deviation is detected. Controlling
investigates whether planning was successful. Controlling referred to as terminal management function, takes
place after the other functions have been completed. And for this process we have to look back and have to
analyze the performance of our planning, organizing and leading. And therefore we have to look back also. So,
yes we can say Control is looking back for Investigation, Analysis, and Understandings and for checking our
effectiveness and efficiency.
Q. Describe the significance of accurate planning to modern business.
As organization’s senior leadership sets goals for milestones to be reached, it is the responsibility of the
management team to create initiatives to achieve these milestones. Each will yield an outcome and require a
set of resources – it is these outcomes and resource requirements that need to be planned. For example, an
organization that provides services is required to forecast the offerings demanded in the near future, and
determine whether they are equipped to meet that need. “Will the sales force be able to effectively drive
significant demand?” “Is the delivery capacity available to meet the anticipated demand that will be generated
by the sales force?” These questions can only be answered once a sales plan has been created and compared
to the staffing demand.These planning goals affect internal, external and financial decisions based upon the
organization’s commitment to these objectives. Therefore, it is critical that these commitments are achieved
and that the associated processes provide accurate results.Most planning processes have been an evolution
within a company as organizations have grown. Typically, plans are created within spreadsheets and shared
among a small number of those who direct the business. As organizations grow, their supporting infrastructure
generally grows faster than the planning infrastructure since planning occurs once a year. As organizations
mature, the planning processes required mature as well. However, the plans are still managed within
spreadsheets.
Q. Describe the relationship between budget and plan.
New small business owners may run their businesses in a relaxed way and may not see the need to budget.
However, if you are planning for your business' future, you will need to fund your plans. Budgeting is the most
effective way to control your cashflow, allowing you to invest in new opportunities at the appropriate time.
If your business is growing, you may not always be able to be hands-on with every part of it. You may have to
split your budget up between different areas such as sales, production, marketing etc. You'll find that money
starts to move in many different directions through your organisation - budgets are a vital tool in ensuring that
you stay in control of expenditure.A budget is a plan to:
control your finances
ensure you can continue to fund your current commitments
enable you to make confident financial decisions and meet your objectives
ensure you have enough money for your future projects
It outlines what you will spend your money on and how that spending will be financed. However, it is not a
forecast. A forecast is a prediction of the future whereas a budget is a planned outcome of the future - defined
by your plan - that your business wants to achieve.
Benefits of a business budget
manage your money effectively
allocate appropriate resources to projects
monitor performance
meet your objectives
improve decision-making
identify problems before they occur - such as the need to raise finance or cashflow difficulties
plan for the future
increase staff motivation
Q. What is meant by Management Information System (MIS)?
A management information system (MIS) provides information needed to manage organizations efficiently
and effectively. Management information systems involve three primary resources: people, technology, and
information. Management information systems are distinct from other information systems in that they are
used to analyze operational activities in the organization. Academically, the term is commonly used to refer to
the group of information management methods tied to the automation or support of human decision making,
e.g. decision support systems, expert systems, and executive information systems.
Q. Advantage of MIS
The following are some of the benefits that can be attained for different types of management information
systems.
The company is able to highlight their strength and weaknesses due to the presence of revenue
reports, employee performance records etc. The identification of these aspects can help the company
to improve their business processes and operations.
Giving an overall picture of the company and acting as a communication and planning tool.
The availability of the customer data and feedback can help the company to align their business
processes according to the needs of the customers. The effective management of customer data can
help the company to perform direct marketing and promotion activities.
Information is considered to be an important asset for any company in the modern competitive
world. The consumer buying trends and behaviors can be predicted by the analysis of sales and
revenue reports from each operating region of the company.
Q. “Planning and controlling are the cycling work”- explain.
PLAN: Establish the objectives and processes necessary to deliver results in accordance with the expected
output (the target or goals). By establishing output expectations, the completeness and accuracy of the
specification is also a part of the targeted improvement. When possible start on a small scale to test possible
effects.
DO : Implement the plan, execute the process, make the product. Collect data for charting and analysis in the
following "CHECK" and "ACT" steps.
CHECK : Study the actual results (measured and collected in "DO" above) and compare against the expected
results (targets or goals from the "PLAN") to ascertain any differences. Charting data can make this much
easier to see trends over several PDCA cycles and in order to convert the collected data into information.
Information is what you need for the next step "ACT".
ACT :Request corrective actions on significant differences between actual and planned results. Analyze the
differences to determine their root causes. Determine where to apply changes that will include improvement
of the process or product. When a pass through these four steps does not result in the need to improve, the
scope to which PDCA is applied may be refined to plan and improve with more detail in the next iteration of
the cycle.
Q. Briefly describe the process of strategic planning.
In today's highly competitive business environment, budget-oriented planning or forecast-based planning
methods are insufficient for a large corporation to survive and prosper. The firm must engage in strategic
planning that clearly defines objectives and assesses both the internal and external situation to formulate
strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track.
A simplified view of the strategic planning process is shown by the following diagram:
The Strategic Planning Process
Mission and Objectives: The mission statement describes the company's business vision, including the
unchanging values and purpose of the firm and forward-looking visionary goals that guide the pursuit of future
opportunities. Environmental Scan: The environmental scan includes the following components:
Internal analysis of the firm
Analysis of the firm's industry (task environment)
External macroenvironment (PEST analysis)
The internal analysis can identify the firm's strengths and weaknesses and the external analysis reveals
opportunities and threats. A profile of the strengths, weaknesses, opportunities, and threats is generated by
means of a SWOT analysis
An industry analysis can be performed using a framework developed by Michael Porter known as Porter's five
forces. This framework evaluates entry barriers, suppliers, customers, substitute products, and industry rivalry.
Strategy Formulation: Given the information from the environmental scan, the firm should match its strengths
to the opportunities that it has identified, while addressing its weaknesses and external threats.
Strategy Implementation: The selected strategy is implemented by means of programs, budgets, and
procedures. Implementation involves organization of the firm's resources and motivation of the staff to
achieve objectives.
Evaluation & Control: The implementation of the strategy must be monitored and adjustments made as
needed.
Evaluation and control consists of the following steps:
6. Define parameters to be measured
7. Define target values for those parameters
8. Perform measurements
9. Compare measured results to the pre-defined standard
10. Make necessary changes
Q. What is decision support system? What is its advantage?
A decision support system (DSS) is a computer-based information system that supports business or
organizational decision-making activities. DSSs serve the management, operations, and planning levels of an
organization and help to make decisions, which may be rapidly changing and not easily specified in advance.
DSSs include knowledge-based systems. A properly designed DSS is an interactive software-based system
intended to help decision makers compile useful information from a combination of raw data, documents,
personal knowledge, or business models to identify and solve problems and make decisions.
Benefits:
1. Improves personal efficiency
2. Speed up the process of decision making
3. Increases organizational control
4. Encourages exploration and discovery on the part of the decision maker
Mission & Objectives Environmental Scanning Strategy Formulation
Strategy Implementation Evaluation & Control
5. Speeds up problem solving in an organization
6. Facilitates interpersonal communication
7. Promotes learning or training
8. Generates new evidence in support of a decision
9. Creates a competitive advantage over competition
10. Reveals new approaches to thinking about
Q. Discuss why banker-customer relationship is very important.
Banker customer relationship, is just a special contract where a person entrusts valuable items with another
person with an intention that such items shall be retrieved on demand from the keeper by the person who so
entrust. Thus the banker is the one who is entrusted with the above mentioned valuable items, while the
person who entrust the terms with a view to retrieving it on demand is called the customer. The relationship is
thus based on contract. It is based on certain terms and conditions. For instance, the customer has the right to
collect his deposit on demand personally or by proxy. The banker too is under obligation to pay, so long the
proxy is duly authorized by the customer. It has a semblance of creditor /debtor relationship. Thus the
customer is the creditor who has the right of demand on the money from the banker. As long as the banker is
keeping the customer items, the banker is indebted to the customer. The relationship is also fiducial. The
terms and conditions governing the relationship should not be leaked to a third party, particularly by the
banker. Also the items kept should not be released to a third party without due authorization by the customer.
Banker customer relationship, is just a special contract where a person entrusts valuable items with another
person with an intention that such items shall be retrieved on demand from the keeper by the person who so
entrust. Thus the banker is the one who is entrusted with the above mentioned valuable items, while the
person who entrust the items with a view to retrieving it on demand is called the customer. The relationship is
thus based on contract. It is based on certain terms and conditions. For instance, the customer has the right to
collect his deposit on demand personally or by proxy. The banker too is under obligation to pay, so long the
proxy is duly authorized by the customer It has a semblance of creditor /debtor relationship. Thus the
customer is the creditor who has the right of demand on the money from the banker. As long as the banker is
keeping the customer items, the banker is indebted to the customer. The relationship is also fiducial. The
terms and conditions governing the relationship should not be leaked to a third party, particularly by the
banker. Also the items kept should not be released to a third party without due authorization by the customer.
Q. What is code of ethics?
An ethical code is adopted by an organization in an attempt to assist those in the organization called upon to
make a decision (usually most, if not all) understand the difference between 'right' and 'wrong' and to apply
this understanding to their decision. The ethical code therefore generally implies documents at three levels:
codes of business ethics, codes of conduct for employees and codes of professional practice. Code of ethics
(corporate or business ethics): A code of business ethics often focuses on social issues. It may set out general
principles about an organization's beliefs on matters such as mission, quality, privacy or the environment. It
may delineate proper procedures to determine whether a violation of the code of ethics has occurred and, if
so, what remedies should be imposed. The effectiveness of such codes of ethics depends on the extent to
which management supports them with sanctions and rewards. Code of conduct (employee ethics): A code of
conduct for employees sets out the procedures to be used in specific ethical situations, such as conflicts of
interest or the acceptance of gifts, and delineate the procedures to determine whether a violation of the code
of ethics occurred and, if so, what remedies should be imposed. Code of practice (professional ethics): A code
of practice is adopted by a profession or by a governmental or non-governmental organization to regulate that
profession. A code of practice may be styled as a code of professional responsibility, which will discuss difficult
issues, difficult decisions that will often need to be made, and provide
Conflict
conflict - an open clash between two opposing groups (or individuals); "the harder the conflict the more
glorious the triumph"--Thomas Paine; "police tried to control the battle between the pro- and anti-abortion
mobs"
An armed struggle or clash between organized groups within a nation or between nations in order to achieve
limited political or military objectives. Although regular forces are often involved, irregular forces frequently
predominate. Conflict often is protracted, confined to a restricted geographic area, and constrained in
weaponry and level of violence. Within this state, military power in response to threats may be exercised in an
indirect manner while supportive of other instruments of national power. Limited objectives may be achieved
by the short, focused, and direct application of force.
In literature, conflict is an inherent incompatibility between the objectives of two or more characters or forces.
Conflict creates tension and interest in a story by adding doubt as to the outcome. A narrative is not limited to
a single conflict. While conflicts may not always resolve in narrative, the resolution of a conflict creates
closure, which may or may not occur at a story's end.
Basic nature of conflict
Conflict in literature refers to the different drives of the characters or forces involved. Conflict may be internal
or external—that is, it may occur within a character's mind or between a character and exterior forces. Conflict
is most visible between two or more characters, usually a protagonist and an antagonist/enemy/villain, but
can occur in many different forms. A character may as easily find himself or herself in conflict with a natural
force, such as an animal or a weather event, like a hurricane. The literary purpose of conflict is to create
tension in the story, making readers more interested by leaving them uncertain which of the characters or
forces will prevail.
There may be multiple points of conflict in a single story, as characters may have more than one desire or may
struggle against more than one opposing force. When a conflict is resolved and the reader discovers which
force or character succeeds, it creates a sense of closure. Conflicts may resolve at any point in a story,
particularly where more than one conflict exists, but stories do not always resolve every conflict. If a story ends
without resolving the main or major conflict(s), it is said to have an "open" ending. Open endings, which can
serve to ask the reader to consider the conflict more personally, may not satisfy them, but obvious conflict
resolution may also leave readers disappointed in the story.
Classification
The basic types of conflict in fiction have been commonly codified as "man against man", "man against
nature", and "man against self." In each case, "man" is the universal and refers to women as well.
Although frequently cited, these three types of conflict are not universally accepted. Ayn Rand, for instance,
argued that "man against nature" is not a conflict because nature has no free will and thus can make no
choices. Sometimes a fourth basic conflict is described, "man against society", Some of the other types of
conflict referenced include "man against machine" (The Terminator, Brave New World), "man against fate"
(Slaughterhouse Five), "man against the supernatural" (The Shining) and "man against god" (A Canticle for
Liebowitz).
Man against man
"Man against man" conflict involves stories where characters are against each other. This is an external
conflict. The conflict may be direct opposition, as in a gunfight or a robbery, or it may be a more subtle conflict
between the desires of two or more characters, as in a romance or a family epic. This type of conflict is very
common in traditional literature, fairy tales and myths. One example of the "man against man" conflict is the
relationship struggles between the protagonist and the antagonist stepfather in This Boy's Life.
Man against society
Where man stands against a man-made institution (such as slavery or bullying), "man against man" conflict
may shade into "man against society". In such stories, characters are forced to make moral choices or
frustrated by social rules in meeting their own goals. The Handmaid's Tale and Fahrenheit 451 are examples of
"man against society" conflicts.
Man against nature
"Man against nature" conflict is an external struggle positioning the hero against an animal or a force of
nature, such as a storm. The "man against nature" conflict is central to Ernest Hemingway's The Old Man and
the Sea, where the protagonist contends against a marlin. It is also common in adventure stories, including
Robinson Crusoe.
Man against self
With "man against self" conflict, the struggle is internal. This is a conflict that is usually associated with an
external conflict. A character must overcome his own nature or make a choice between two or more paths -
good and evil; logic and emotion. A serious example of "man against himself" is offered by Hubert Selby, Jr.'s
1978 novel Requiem for a Dream, which centers around stories of addiction
Competition vs. Conflict
But in a conflict the desired result of one person is actually incompatible with the desired result of another. If
one succeeds, the result is contrary to the desires of the other. Competition is one or more people striving for
the same goal--being the person who sells the most shoes, or runs the fastest in the race, or scores the highest
in the test. Everyone wants to see the same thing happen--shoes getting sold, fast running or high scoring.
Competition is a secretive, zero-sum game played by individuals for private gain; conflict is open and
sometimes raucous but always communal, a public encounter in which it is possible for everyone to win by
learning and growing.
The first assumption is a scarcity mindset as opposed to an abundance mindset. Here, all resources are
assumed to be scarce and limited. When we assume that we’re fighting for a slice of a pie of a fixed size, then
our win must be someone else’s loss. I know I’ve written posts in the past critiquing modernity’s assumption
that there are no limits to anything, but there are pitfalls to assuming there’s only a limited amount of
desirable things to go around.
The second assumption is a closed mindset as opposed to an open mindset. This is a “if you’re not for us,
you’re against us” attitude. In a closed mindset, one is not receptive to being enriched by other sides in a
debate.
Many of the problems our nation faces stem from a mindset of competition between individuals or interest
groups in society rather than a mindset of conflict. In so many areas, we see dualistic, competition-based
logic: politics, culture war issues, economic issues, church policies, etc.
Conflict is not all bad.
views or have interpersonal incompatibilities (Jehn, 1995). Typically, interpersonal conflicts at workplaces
involve interaction between two interdependent parties that perceive incompatibility of goals, interests,
values, or ideas.
People sometimes think that being a part of a best place to work means that it is party time all the time. That’s
not the case. Sure we work hard and play hard, but really what we do is challenge each other to greatness. We
know that to be challenged can also be truly rewarding.
It says somewhere in the bible that a ‘good wife’ will debate and challenge her husband so he can see what he
cannot see. I think this is the basis of all partnerships or even leadership teams. If we keep playing it safe, living
in our comfort zone then how can we ever possibly create something bigger than ourselves?
There are more people in the Red Balloon team than it once was, and I don’t necessarily have the same
moment-by-moment contact with each individual that I used to. As a result I rely heavily on the team leaders
around me to deliver on the vision, the passion and the commitment to our people.
Having differences of opinion, viewing the world differently, holding the mirror up so we can see how we are
really performing is all healthy. When there is fundamental respect for each other, then challenges are seen as
growth opportunities.
Neutralizing of Conflict
There are times in life when a conflict may arise that needs intervention from a third party. You may find
yourself in a situation where you have to mediate a conversation between others who may not agree on a
specific topic or procedure. When faced with this challenge, it is critical to “put out the fire” before it spreads
to others and / or possibly impacts productivity. Consider these tips the next time you have to mediate a
conversation between two or more people.
There are times in life when a conflict may arise that needs intervention from a third party. You may find
yourself in a situation where you have to mediate a conversation between others who may not agree on a
specific topic or procedure. When faced with this challenge, it is critical to “put out the fire” before it spreads
to others and / or possibly impacts productivity.
Below are some tips to consider the next time you have to mediate a conversation between two or more
people.
At the beginning of the discussion, ask each party to provide an opening statement regarding what brought
them to the table and what they are hoping to achieve.
Based upon the opening statements, build an agenda for “cross-talk” (conversation between all parties). The
goal of cross-talk is to:
Promote venting
Identify needs and interests
Generate options
Get the parties to talk to each other
Clarify issues
Exchange information
Build rapport among parties
Summarize the information. (You cannot do this enough.)
Use the agenda to frame the discussion. In the agenda, be neutral, concise, and fairly broad.
Identify the needs and interest first before providing the options. This helps the transition into negotiation.
Express empathy towards the disputants to help minimize emotions.
