15cs51 Module1 Notes

MANAGEMENT AND ENTREPRENEURSHIP FOR IT INDUSTRY 15CS51
Module – 1
Introduction - Meaning, nature and characteristics of management, scope and Functional areas
of management, goals of management, levels of management, brief overview of evolution of
management theories,. Planning- Nature, importance, types of plans, steps in planning,
Organizing- nature and purpose, types of Organization, Staffing- meaning, process of
recruitment and selection
1. Define management according to the various personalities.

Ans: Management is a function of guidance and leadership control of efforts of a group or
individuals in order to achieve goals/objectives of an organization.
Definitions suggested by some of the management experts are presented below:
• Henri Fayol: - “Management is conducted of affairs of business,moving towards its
objective through a continuous process of improvement and optimization of resources”.
• Koontz: - “Management is the process of designing and maintaining an environment in

which individuals,working together in groups, efficiently accomplish selected aims”.
• Mary Parker Follett: - “Management is the art of getting things done through people”.
• George R. Terry: - “Management is a process consisting of planning, organizing,

actuating and controlling , performed to determine and accomplish the objectives by use
of people and resources”.
• ILO:- “Management is the complex of continuously coordinated activity by means of

which any undertaking administration/public or private service conducts its business”.
• Lawrence A. Appley:- “Management is guiding human and physical resources into a

dynamic, hard hitting organization until that attains its objectives to the satisfaction of
those served and with a high degree of morale and sense of attainment on the part of
those rendering the service”.
2. Discuss the nature and characteristics of management? Explain its functions.

(June/July-11)
Ans. Nature of management are:
o All the managers carry out the managerial functions of planning, organizing,
staffing ,leading and controlling
o management applies to any kind of organization
o applies to managers at all organizational levels
o the aim of the managers is same create the surplus
15CS51: M & E FII /YR 2017/GAT/CSE DEPT/MODULE-1 Page 1

o managing is concerned with productivity, which implies effectiveness and

efficiency
Characteristics of management: Management is

• Intangible (not measurable and cannot be seen) but its presence can be felt by efforts in
the production sales and revenues.
• Universal and it is applicable to all sizes and forms of organizations.
• A group activity and it involves getting things done with and through others.
• Goal oriented and all actions of management are directed at achieving specific goals.
• Science as well art and emerging now as a profession.
• Multidisciplinary and it has contributions from psychology, sociology, anthropology.
➢ Management is a universal process

o Management is a universal process which is applied in all types of institutions-
social, religious, political, military, commercial, bureaucratic etc. Every
organization, whose aim is to achieve its goals through group efforts, needs
planning, coordination, direction and control-in other words “MANAGEMENT”.
➢ Management is goal oriented

o This means that management is always aimed at achieving specific goals. In fact,
the success of management is measured by the extent to which the desired
objectives are achieved. All the efforts of management are directed towards
achieving effectiveness and efficiency.
➢ Management is a social process

o Management basically deals with managing human beings and their emotions,
talents, attitudes, culture, etc. It includes retaining, developing and motivating
people at work, as well as taking care of their satisfaction as social beings. It is
therefore a social process because it involves people who are influenced by social
traditions, customs and regulations.
➢ Management is a Coordinating process

o Management co-ordinates the efforts of the employees in an organization through
orderly arrangement of activities so as to avoid duplication and overlapping. It
integrates human and physical resources.
➢ Management is Intangible
o It means that management cannot be touched and felt. It does not have a physical
presence. It is an unseen force. It presence can only be felt by the results of its
efforts such as orderliness, efficiency, profits, etc
➢ Management is multi-disciplinary
o Management has received rich contribution from various disciplines like
psychology, sociology, etc. Management has to be multi-skilled in order to

convert disorganized resources of materials, machines into useful and meaningful

output.
➢ Management is creative activity

o Management provides creative ideas and new imagination apart from giving
progressive vision to group efforts. It is also the ability to deal with heterogeneous
elements and opposite forces and bring them to common path.
➢ Management is decision making

o If it is higher levels of management, then it is only decision-making. The
decisions taken could be in any area of work which concerns the organization.
➢ Management is a profession
o This means that a person can be trained and tuned to become a management
professional. Education and training can make a person already born with talent a
better manager.
➢ Management is a continuous process

o It is dynamic and on-going process. The cycle of management continues to
operate so long as there is organized action for the achievement of group goals.
➢ Management is an art
o Art can be considered as application of knowledge and personal skills to achieve
results. It can also be creative.
➢ Management is a science
o Science as a knowledge is based on certain principles that are obtained through
the process of observation, experimentation and verification. It represents basic
truth and is developed after a series of experiments.
➢ Management is an integrating force

o Ex: Many teams of doctors and oncology specialists, treating a cancer patient
3. Explain the Scope of Management
Ans: Although it is difficult to precisely define the scope of management, yet the following areas
are included in it:
1. Subject-matter of management: Planning, organizing, directing, coordinating and controlling
are the activities included in the subject matter of management.
2. Functional areas of management: These include:
• Financial management includes accounting, budgetary control, quality control, financial
planning and managing the overall finances of an organization.

• Personnel management includes recruitment, training, transfer promotion, demotion,

retirement, termination, labor-welfare and social security industrial relations.
• Purchasing management includes inviting tenders for raw materials, placing orders,
entering into contracts and materials control.
• Production management includes production planning, production control techniques,
quality control and inspection and time and motion studies.
• Maintenance management involves proper care and maintenance of the buildings, plant
and machinery.
• Transport management includes packing, warehousing and transportation by rail, road
and air.
• Distribution management includes marketing, market research, price-determination,
taking market risk and advertising, publicity and sales promotion.
• Office Management includes activities to properly manage the layout, staffing and
equipment of the office.
• Development management involves experimentation and research of production
techniques, markets, etc.
3. Management is an inter-disciplinary approach: For the correct implementation of the
management, it is important to have knowledge of commerce, economics, sociology, psychology
and mathematics.
4. Universal application: The principles of management can be applied to all types of
organizations irrespective of the nature of tasks that they perform.
5. Essentials of management: Three essentials of management are:
•Scientific method
•Human relations
•Quantitative technique
6. Modern management is an agent of change: The management techniques can be modified by
proper research and development to improve the performance of an organization.
4. With a neat sketch, explain the functions of management (Process of management)?
Ans: There are four essential functions of management, they are

1. Planning
2. Organizing and Staffing
3. Directing or Leading
4. Controlling

Planning
Planning is an executive function that is referred to as decision making. It involves

missions and objectives and the actions to achieve them. This requires decision making which is
choosing future courses of action from available alternatives. Planning involves
➢ Setting short and long term goals for organization.

➢ Selecting objectives, strategies and policies for accomplishing the planned goals.
➢ Deciding in advance what to do, how to do, who has to do, when to do and where to do?
➢ Planning bridges the gap from where we are now to where we want to be in future.
Organizing
Organizing is a part of management that involves in establishing an intentional structure

of roles for people to fill in an organization. The purpose of an organization structure is to help in
creating an environment for human performance. To organize a business well, it is required to
provide useful things like raw materials, tools, capital and personnel for its proper functioning.
Organizing involves
➢ Determination of activities required to achieve goals.

➢ Grouping these activities into department.
➢ Assigning such groups of activities to managers.
➢ Forming delegation of authority.
➢ Making provisions for coordination of activities.
Staffing
Staffing makes provision for man power to fill different positions. It involves in building
the human organization by filling, and keeps filling the staff. This is done by identifying work-

force requirements, placing, promoting, apprising, and planning their career, training the staff to
accomplish their tasks effectively and efficiently. Staffing involves
➢ Finding the right person for right job.

➢ Selecting the personnel.
➢ Placement, training and developing new skills required for present and future jobs.
➢ Creating new positions.
➢ Apprising the staff and planning their growth and promotions etc.
Directing
Directing involves three sub-functions namely communication, leadership and

motivation. Communication is the process of passing information and understanding from one
person to another. Leadership is the process by which the manager guides and influences the
work of his subordinates. Motivation means arousing desire in the minds of employees of an
organization to perform their best. There are two types of motivations, they are
• Financial Motivations – In the form of salary, bonus, profit-sharing, rewards etc.

• Non-Financial Motivations – Job security, promotions, recognition, praise, felicitation
etc.
Controlling
Controlling is measuring and correcting the activities of subordinates to make sure that
work is going on as per the plans. It measures performance against goals and plans, shows where
short falls or deviations exist and takes necessary corrective actions to achieve goals. It generally
relates to measurement of achievements. Controlling involves
➢ Establishing standards of performance.

➢ Measuring performance and comparing with established standards.
➢ Taking necessary Corrective action to meet the set standards.
5. Briefly discuss goals of management.
Ans: Goals of management are:

1. Organizational Goals:
Management is responsible for setting and achieving objectives for the organization. It has to
achieve a variety of objectives in all areas considering the interest of all stakeholders. The main

objective of any organization should be to utilize human and material resources to the maximum
possible advantage. These are :
Survival : The basic objective of any business is survival. Management must strive to ensure the
survival of the organization. In order to survive, an organization must earn enough revenues to
cover costs.
Profit: Only survival is not enough for business. Management has to ensure that the
organization makes a profit. Profit provides a vital incentive for the continued successful
operation of the enterprise. Profit is essential for covering costs and risks of the business.
Growth: A business needs to add to its prospects in the long run, for this it is important for the
business to grow. To remain in the industry, management must exploit fully the growth potential
of the organization.
2. Social Goals: It involves the creation of benefit for society. As part of society, every
organization whether it is business or non-business, has a social obligation to fulfill. This
refers to consistently creating economic value for various constituents of society. This
includes using environmental friendly methods of production, giving employment
opportunities to the disadvantaged sections of society and providing basic amenities like
schools and crèches to employees.
3. Personal Goals: These vary from financial needs such as competitive salaries and
perks, social needs such as peer recognition and higher level needs such as personal
growth and development. Management has to reconcile personal goals with
organizational objectives for harmony in the organization.
6. Explain levels of management?
Ans: Although all managers perform the same functions of planning, organizing, directing and
controlling, there are levels among them. The different levels are:
• Top management
• Middle management
• Supervisory level
➢ The top management consists of the board chairman, the company presidents, and
the executive vice-presidents.
➢ Middle management involves a vast and diverse group that includes sales
managers, plant managers, personnel managers and many other department heads
➢ The supervisory level management group is made up of foremen and white collar
supervisors, men and women who are only one step above the rank and file.

7. What are the different development/Evolution of management thought.
Ans: Evolution of the management is as shown in the figure below:
8. Explain the contributions and limitations of Frederick Winslow Taylor to the theory
of management?
Ans: Frederick Winslow Taylor has been considered to be father of scientific management.
Some of the contributions of Frederick Winslow Taylor for the scientific management are.
1. Work study:
• Work study includes time and motion study.
• Taylor observed that the workers were not producing their full capacity for the fear that
their piece rate would be cut with rise in production. Hence he started time and motion study.
• He studied the time required to do a simple job using stop watch.
• Shorter and fewer motion were develop. Unwanted motions were eliminated.
• He also studied about different job sequences to reduce overall time required to complete
a job. Thus he found a better way of doing work.
2.Differential payment:
• Taylor also introduced new concept of payment plan called differential payment linking
incentives with production.
• Under this a worker gets a lower payment for a standard production and higher wages for
any higher production.
• He said this will motivate workers to produce more.

3. Reorganization of supervision:
• Taylor observed that the worker himself had to plan his work and do the job. The
supervisor’s work was just to allocate the work to be done.
• But Taylor said planning is done by supervisor (not by worker) and accordingly work is
done by workers.
• He also suggested that there should be separate foreman for each function of job.
4.Scientific requirement and training:
• Taylor also suggested the need for scientific training and development of a worker to
carry out a specific task in a more productive way.
• He also believed that a good cooperation between the management and workers would
lead to increased production and profits to both.
5. Intimate and friendly cooperation between the management and the workers: Taylor
argued that both the management and the workers both should try to increase production
rather than quarrel over profits which would increase the profits to such an extent that labour
and management would no longer have to compete for them and should sow common interest
in increasing productivity.
Contributions:
(1) Time and motion studies have made us aware that the tools and physical movements
involved in a task can be made more efficient and rationale.
(2) Scientific selection of workers has made us recognize that without ability and training a
person cannot be expected to do job properly.
(3) The scientific management have to work design encouraged the mangers to do one best
way of doing the job.
Limitations:
1. Taylor’s belief that economic incentives are strong enough to motivate workers for
increased production proved wrong as there are other needs such as security, social
needs, or egoistic needs rather than financial needs
2. Taylor’s time and motion study is not accepted as entirely scientific as there is no best
way of doing the same job by two individuals as they may not have same rhythm,
attention and learning speed
3. Separation of planning and doing the greater specialization inherent in the system tends
to reduce the need for skill and greater monotony of work.
4. Advances in methods and better tools and machines eliminated some workers who found
it difficult to get other jobs and caused resentment among them.

9. Briefly explain the contributions and limitations of Henry Fayol to the theory
management?
Ans: Henry Fayol is considered as the father of administrative management (1841-1925) where
the focus is on development of broad administrative principles. Was a French mining engineer
turned a leading industrialist and a successful manager. Provided a broad analytical framework
of the process of administration.
Contributions:
1. Fayols principles met with wide spread acceptance among writers on management and
among managers and managers themselves.
2. Drawing inspiration from Fayol a new school of thought known as the Management
Process School came into existence.
Limitations:
1. Fayols principle of specialization lead to the following dysfunctional consequences:
(a) Leads to the formation of small work groups with norms and goals with each individual
carrying out his own assigned part without bothering about the overall purpose of the
organization as a whole.
(b) Results in the dissatisfaction amongst workers as it does not provide them the opportunity
to use all their abilities.
(c) Results in the dissatisfaction amongst workers as it does not provide them the opportunity
to use all their abilities.
2. One of the findings un Fayols principles is that there is nothing in Fayols writings to
indicate which is the proper one to apply like for example the principle of unity of
command and the principle of unity of specialization or division of labour cannot be
followed simultaneously. In this way many of these principles are full of contradictions
and dilemmas.
3. Fayols principles are based on a few case studies only and have not been tested
empirically and whenever tested have fallen like autumn leaves.
4. These principles are often stated as unconditional statements of what should be done in
all circumstances when what is needed are conditional principles of management.
5. The principles of Fayol such as the principles specialization, chain of command, unity of
direction and span of control result in the mechanistic organizational structures which are
insensitive to employees Social and psychological needs.
6. These principles are based on the assumption that the organization are closed systems but
in reality organizations are open systems and hence the rigid structures so created do not
work well under stable conditions.

10. Briefly describe the general principles of management as laid down by Henri Fayol.
Ans: Henri Fayol suggested 14 principles of management as a guideline to the process of
management practice. They are as follows :
• Division of Work: Division of work in the management process produces more and better
work with the same effort. The various functions of management must be entrusted to
specialists in related fields.
• Authority and Responsibility: As the management consists of getting the work done
through others, it implies that manager should have the right to give orders and power to
exact obedience. An individual who is willing to exercise authority, must also be
prepared to bear responsibility to perform the work in the manner desired.
• Discipline: Discipline is absolutely essential for the smooth running of business. It
means the obedience to authority, observance of the rules of service and norms of
performance, respect for agreements, respect for superiors, etc.
• Unity of Command: This principle requires that each employee should receive
instructions about a particular work from one superior only.
• Unity of Direction: It means that there should be complete identity between individual
and organizational goals on the one hand and between departmental goals on the other.
• Subordination of Individual Interest to General Interest: In business concern there is a
need to subordinate the individual interest to general interest which lies in maximizing
profit.
• Remuneration: The remuneration paid to the personnel of the firm should be fair. It
should be based on general business conditions, cost of living, productivity of the
concerned employees and the capacity of the firm to pay.
• Centralisation: The management must decide the degree of centralization or
decentralization of authority on the basis of the nature of the circumstances, size of the
undertaking, the type of activists and the nature of organizational structure.
• Scalar Chain: Scalar chain means the hierarchy of authority from the highest executive to
the lowest one for the purpose of communication. It states superior-subordinate
relationship and the authority of superiors in relation to subordinates at various levels.
• Order: Management should obtain orderliness in work through suitable organization of
men and materials. The principle of ”right place for everything and for every man”
should be observed.
• Equity: Equity means equality of fair treatment. Equity results from a combination of
kindness and justice.
• Stability of Tenure of personnel: In order to motivate workers to do more and better
work, it is necessary that they should be assured security of job by the management.
• Initiative: Initiative means freedom to think out and execute a plan. The zeal and energy
of employees are augmented by initiative. Innovation is possible only where the
employees are encouraged to take initiative.

• Espirit de Corps: This means team spirit. Since “union is strength”, the management
should create team spirit among the employees. Only when all the personnel pull together
as a team, there is scope for realizing the objectives of the concern.
11. Write a note on Bureaucracy approach.
Ans: German scientist Max Weber is considered to be the father of Bureaucracy. Made a study
on various business and government organizations and distinguished three types of
administration amongst them. Leader oriented tradition oriented and bureaucratic.
(i) Leader oriented: Administration is one in which there is no delegation of
management functions and all employees serve as loyal subjects of a leader.
(ii) Tradition oriented: all managerial positions are handed down from generation to
generation and who are you rather than what you can do becomes the primary
function.
(iii) Bureaucratic oriented: is based on the persons demonstrated ability to hold the
position and no person can claim particular position either because of his loyalty to
the leader or because the position has been traditionally held by members of his
family and the people earn positions because they are presumed to be best capable of
filling them.
12. Explain the contributions, features and limitations of Bureaucratic Administration.
Ans: Features:
1) Insistence on following standard rules: There should not governed by the personnel
preferences of the employer but it should be governed by the standard rules which provides
equality in the treatment of subordinates and continuity and predictability of action.
2) Systematic division of work: increases production by improving efficiency and saving time
in changing over from one job to another.
3) Principle of hierarchy followed: each lower officer is under the control and supervision of a
higher one.
4) Not necessary for the individual to have knowledge of and training in the application of
rules: These form the basis on which legitimacy is granted to his authority.
5) Administrative acts, decisions and rules are recorded in writing: makes the organization
independent of people besides making peoples understanding more accurate.
6) There is rational personnel administration: people are selected on the basis of their
credentials and merit and are paid according to their option in their hierarchy, promotions are
made systematically and there is on winning peoples loyalty and commitment.
Contributions:

Bureaucracy can be viewed as the logical extension of management when it becomes impossible
for one person to fulfill all managerial functions which has enabled most modern large scale
organizations which require functionally specialized staff to train and control the people with
heterogeneous backgrounds and to delegate specific responsibilities and functions to them.
Limitations:
Has lead to important dysfunctional consequences of bureaucracy as follows:
1) Over conformity of rules: Employees observe stick to rule policy because they follow stick
to the rule policy because they fear of being penalized of the violation of these rules and
therefore follow the letter of law without going into its spirit.
Example: a doctor in the emergency spends precious time in filling various forms before helping
the accident victim.
2)buck passing: In situations where there are no rules, employees are afraid of taking decisions
independently and may be punished for wrong decisions and therefore either shift decisions to
there or postpone them which results in the increase of office work and leads to Parkinson’s
disease.
3)Categorization of queries: Probable queries coming from outside are generally classified in
advance into a few broad categories and answer for each category are prepared in advance. On
receiving the query the employees job is to simply determine its category and tick the reply
applicable to that category
4) Displacement of goals: Very common phenomena in bureaucratic organization and takes

place when an organization substitutes for its legitimate goals some other goal which it was not
created ,for which resources were not allocated to it and which it is not known to serve.
Can occur in several ways:
(a) occurs when the leaders try to devote to preserve the organization itself rather than its intial
purpose and when several interest groups try to use the organizational goals to serve their
own golas.
(b) occurs when the employees try to internalize the rules and the goals are totally forgotten
which is called professional automation.
Example: praising the librarian for neat and orderly look of the library and not for increase
in the number of book borrowers. Praising the factory worker for his regular attendance and
not for the quality of his performance.
(c) Secondary goals of an organization subordinating its primary goals so that latter are not
served effectively. Example: university initiating certain social or extra-curricular activities to
attract students to classes and universities consuming greater time and resources in conducting
the same rather than teaching a course.
(d)sectional interests developing among the heads of sub-units of the organization which may
lead to forget the organizational goals.
5)No right of appeal: The clients the bureaucratic organization feel dissatisfied because they
have no right of appeal

6)Neglect of informal groups: Forms informal groups which play an important role in the
organization which has lead to the development of group dynamics which are ignored by the
bureaucratic organization.
7)Rigid structure: precise description of roles and over conformity of rules make bureaucratic
structures rigid which work well in stable environments but do not work well in today’s
organizational flexible structures which require constant mentoring, collection of information and
changing of job descriptions and roles of the employees.
8) Inability to satisfy the needs of the mature individuals: A mature individual wants
independence, initiative, self-control, opportunity to use his all skills and information to plan his
future which is not provided as the hierarchy and control features work against this organization.
13. Explain Neo-classical approach
Ans: Are called neoclassical because they do not reject the classical concepts but only try to
refine them.
The human relations movement: Emerged to achieve complete production efficiency and
workplace harmony was developed in helping managers to deal more effectively with the people
side of their organizations. Came into existence due hawthorns experiments conducted by Elton
Mayo and his colleagues at the western electric company’s plant in Cicero, Illinois from 1927 to
1932 which employed 29,000 workers to manufacture telephone parts and equipment. Elton
Mayo’s experiments can be divided into following four parts:
• Illumination experiments
• relay assembly test room
• interviewing program
• bank wiring test room
1) Illumination Experiments: Was considered to be the first phase of study

Productivity was correlated with illumination, tested, experiments were done on a group of
workers and the productivity was measured at various levels of illumination for the first time and
two groups were formed and set up in different buildings for the second time this time one group
called the control group worked under the constant level of illumination and the other group
called the test group called worked changing levels of illumination.
Results: When post-productivity of two groups were compared, it was found that illumination
affected production only marginally.
2) Relay assembly test room: Was considered to be the second phase of study
In this phase, the object of study being broadened, along with the impact of illumination on
production, other factors such as the length of the working day, frequency and duration of rest
pauses and other physical conditions were taken into consideration.
A group of six women workers, who were friendly with each other, were selected for the
experiment, were told about the experiment, were made to work in a informal atmosphere with
the supervisor researcher in a separate room who acted as a friend, philosopher and guide.

Several variations were made in the working conditions during the study, to find the most ideal
combination for production.
Results: the researchers found that the production group had no realtion with the working
conditins which went on increasing and stabilized at a high level even when all the
improvements were taken away and the poor pre-test conditions were reintroduced and
something else was responsible for this.
(a)feeling of importance among girls as result of participation in the research and the attention
they got
(b)warm informality ,tension-free interpersonal and social relations amongst small groups and
relative freedom from strict supervision and rules lead to these results
(c)high group cohesion among girls
3) Interviewing programme:
The knowledge about the informal group processes which were accidentally acquired in the
second phase made researchers design the third phase. They wanted to know about the basic
factors responsible for human behavior at work Method used to know the basic factors: More
than 20000 workers were interviewed. Questions were asked relating to the type of supervision,
working conditions, living conditions and so on.
Indirect questions were asked to the workers and the workers were free to talk about their
favorite topics related to their work environment.
Results: the study revealed that the workers social relations inside the organization had an
unmistakable influence on their attitudes and behavior and about the all-pervasive nature of
informal groups on their culture and the production norms which the members were forced to
obey.
4) Bank wiring observation room: Can be considered as the fourth phases of

experimentation.
Involved in-depth observation of 14 men making terminal banks of telephone wiring assemblies,
to determine banks of telephone wiring assemblies, to determine the effect of informal group
norms and formal economic incentives on productivity.
Results: Study revealed that group evolved its own production norms for each individual worker
which were much lower than the those set by the management and the workers would produce
that much and no more thereby defeating the incentive system This artificial restriction of
production saved workers from a possible cut in their piece rates and protected weaker and
slower workers from being reprimanded or thrown out of jobs. Class of workers-production rate
Called foolish-was more than the group norm were isolated, harasses or punished by the group in
the several ways and were called rate busters. Those who were too slow were nicknamed as
chisellers. Those who complained to the supervisor against their coworkers were called
squealers.
Conclusion: The experience of the Hawthorne experiments had a profound impact on the
luminaries of the human relations movement. Came to realize the important role played by
informal groups in the working of an organization.

14. Briefly explain the Contributions and limitations of the human relations movement.
Ans: Contributions:
1) a business organization is not merely a techno-economic system but is also a social system
and hence it is important to provide social satisfaction to the workers to produce goods.
2) There is no correlation between improved working conditions and high production.
3) A workers production norm is set and enforced by his group and not by the time and motion
study done by the industrial engineer and those deviating from the group were penalized by the
coworkers. 4) Worker does not work for money only and also nonfinancial awards affect his
behavior and limit the economic incentive plan.
5) Employee centered, democratic and participative style of supervisory leadership is more
effective than task centered leadership.
6) The informal group and not the individual is the dominant unit of analysis in organizations.
Limitations:
1) is swing in the opposite direction and is as much s incomplete as the scientific management
and administrative management. The human relations writers saw only the human variable as
critical factor and ignored other variables.
2) The implicit belief that every organization can be turned down into one big happy family
which could satisfy everybody was not correct as every organization is made up of a number of
diverse social groups with incompatible values and interests.
3) This approach emphasizes the importance of symbolic rewards and underplays the role of
material rewards.
4)Approach provides an unrealistic picture about informal groups by describing them as major
source of satisfaction for industrial workers and it is assumed that many workers do not come to
the factory to seek affiliation and affection.
5) Approach is in fact production oriented and not employee oriented as it claims to be. Many of
its techniques (running canteens, social groups) trick workers into false sense of happiness.
6)the leisurely process of decision making of this approach cannot work during emergency,
7) Makes un unrealistic demand on the superior and wants him to give up is desire.
8) Approach is based on wrong assumption that satisfied workers are more productive workers
because attempts to increase output by improving working conditions and the human relations
skills of a manager generally in the dramatic productivity increases that are expected.
15. Give a brief account of Behavioral approach:.
Ans: This version is an improved and a more mature version of the human relation approach
management. Douglas McGregor, Abraham Maslow, Kurt Levin, Chester Bernard, Mary Parker Follett,
George Humans, Renis Likert, Chris Argyris, and warren Bennis are some of the foremost behavioral
scientists who made significant contributions to the development of the behavioral approach to
management. These scientists were rigorously trained and used more sophisticated research methods.

• These people came to be regarded as the behavioral scientists rather than the members of
the human relations school.
• The findings of these people have enormously helped in understanding the organizational
behavior. These do not believe in the highly classical organization structures which were
built around the traditional concepts of hierarchical authority, unity of command, line and
staff relationships and narrow spans of control.
• They believe that lot of domination takes place by the managers which causes
subordinates to become passive and dependent on them.
• These scientists prefer more flexible organization structures and jobs built around the
capabilities and aptitudes of average employees.
• Recognizes the practical and situational constraints on human rationality for making
optimal decisions which in practice is done in a suboptimal manner.
• Attach more weight age to participative and group decision making as the business are so
complex that it is not fair nor feasible to make individuals responsible for solving them.
• Underline the desirability of humanizing the administration of the control process and
encouraging the process of self-direction and control instead of imposed control.
• Also favor participation in the establishment, measurement and evaluation of standards of
performance, prompt information feedback to whose performance is off the mark and for
positive and reformative measure instead of punitive measures.
• Consider organizations as group of individuals with certain goals for both big and small
groups about the individuals forming groups, joining groups, group size, structure and
process and group cohesiveness.
• Have made extensive studies on leadership which they believed democratic style
desirable and the autocratic style appropriate in some situations.
• Believed that the realistic model of human motivation as complex because people react
differently for the same situation or react the same way to different situations and no two
people are exactly alike.
16. What are the modern management approaches? Explain briefly contingency and
system approach of management.
Ans: There are three approaches. They are.

1. Quantitative approach
2. System approach
3. Contingency approach
1. Quantitative Approach :
• Expressed in terms of mathematical symbols and relationships.
• Areas: OR, Engineering economy, Operation management, MIS.

• Classical approach emphasizes “task” and structure. Behavioral approach

talks about “people”.
• Quantitative approach deals with “mathematical decision making”.
• However, it is difficult to know which method to use in a given situation.
2. System approach:
• The system approach envisages that organization is made up of
independent factors like individuals, groups, attitudes, motives, formal
structure, interactions, goals, status and authority. Hence manager co
ordinates all his activities ensuring that all the above independent factors
work together to achieve organization goals.
• Even change in environment factors (like materials availability, demand
fluctuations) affects the functioning of organization.
• The decision taken in one area affects the other.
3. Contingency approach:
• Contingency refers to plan devised for a specific situation when things
could go wrong for reason like generally accepted principles of
management may not apply for some exceptional situations. Management
is not based on simplistic principles to be applied in all situations.

Different and changing situations demand managers to use different

approaches and technologies.
• Contingency approach says that those organizations are different, faces
different situations and hence require different ways of managing. It can
be described as IF, THEN meaning.
• IF a contingency situation arises, THEN use an all together different
strategy/tactics to handle such situations.
• Contingency arises because organizations or even unit within
organizations are diverse in SIZE, GOALS, WORK ACTIVITIES etc.
17. What is planning?
Ans: Planning is the most basic function of management. It is referred to as “deciding in

advance” as what to do, how to do, when to do and who has to do.
18. Briefly discuss the nature of planning.
Ans: The nature of planning are:
• A plan is to be rigid
o It should not be modified or altered under the influence of local disturbances
• A plan should be flexible
o Adopt to the changing situation without undue cost
o Flexibility in the areas like technology , market, finance, personnel and
organization
• Planning is an all-pervasive function
o Planning is important to all managers regardless of their level in the organization
o timing in planning varies from one level of management to the other
o Top level management spends more time planning , whereas the lower management
spends less time planning
• Planning is goal Oriented
o For the accomplishment of group objectives every plan must contribute in some
positive thinking.
o Planning has no meaning without being related to goals.
• Planning is primary
o Planning is the first managerial function.
• Planning is efficiency, economy and accuracy
o The efficiency of planning is measured by its contribution to economical
objective.

o Planning also focuses on accurate forecasts.

• Planning is Co-Ordination
o Planning co-ordinates the what, who, how, where and why of planning.
o Without co-ordination of all activities, we cannot have united efforts.
• Planning is an intellectual process
o The quality of planning will vary according to the quality of the mind of the
manager.
19. Explain the importance of planning. Why should it manage the plan?
Ans: Without planning, business would become difficult. Planning is the beginning of all other
functions of management. Planning is important because:
i. Uncertainty and minimize risk:

In the today’s complex organizations, decision making cannot be relied only upon
intuition, planning plays a vital role in decision making in such complex situations.
Planning provides logical facts and procedures to managers for making decisions. This
logical decision making based on plans to organization minimizes uncertainty and risk. In
a developing country like India, with rapidly changing social and economic conditions,
planning helps the managers to cope up with uncertainty and risk.
ii. Effective control:
Planning sets goals, targets and means to accomplish these goals. These goals and plans
become standards or bench marks against which performance can be measured. Thus
good plans help effective control on the activities.
iii. Focuses attention and concentration on the objectives of the enterprise:
Planning helps the manager to focus their attention on the goals and activities of
organization. This makes the entire organization to walk towards the goals and create
coordination in accomplishing the goals.
iv. Economic operation and leads to success:
Mere planning does not ensure success, but planning leads to success. This is because if
the work is planned in advance, there will be no confusions arising and things will
happen as per plan and achieve goals. This results in economical operation and reduces
uncoated expenditure.
v. Bridge between present and future:

Plans bridge gap between and future. There is a vast gap between what we are today and
what we want to be in future. A proper and systematic plan forms the bridge between
these two. Without plans, it is very difficult to accomplish goals. Hence planning is very
important for success of any organization.
It can manage the plan because it’s a planning can take many forms and styles in practice.
Planning can be comprehensive or limited in scope. There are organizations that plan to the last

detail. Others rest content, simply broad targets for the next financial period. Planning may be
done by an army of experts using sophisticated forecasting techniques. Or it may be done in a
seat of the pants manner, by a number of executives, sharing their judgments over a cup of
coffee. Planning may begin at the top with top executives deciding on targets and passing them
down for implementation or it may begin at the bottom with the lowest sections formulating their
targets and sending them up for evaluation and coordination. Planning may be done participative
with many members of the organization chipping in with their ideas and judgments or it may be
done in the elitist manner by a few executives or technocrats.
20. Briefly explain the types of planning.
Ans: Plans are classified as follows:
I. Based on nature of planning:
a)Strategic planning
b)Tactical planning
II. Based on their use:
a)Single use plan

b) Standing plan
Strategic planning: It consists of major goals and policies of an organization done at top level
management, and generally it is long-term.
Tactical planning: It consists of use of facilities and resources. It is done at lower level
management and it is short term.
Single use plan: These are developed achieve a specific end after reaching the target plan
becomes useless.
Standing plan: Unlike single use plan standing plans can be used again and again.
21. What are single use and standing plans? Explain with the examples.
Ans: Planning consists of several individual plans. Depending on their nature and scope plans
can be classified into single use and standing plans as shown in the diagram.

1) Standing or repeated use plans:

Plans that are designed for activities that are predictable and occur repeatedly. A standing
plan is a pre-established single decision or set of decisions that can effectively guide
those activities once established. Some of the standing plans are:
I. Policies: a policy is general guide line for decision making. Policies provide the
framework within which the decision-makers are expected to operate while
making decisions relating to the organization. Policies should not be rigid; they
should always be flexible so that they are adoptable to changed situations and
environments.
II. Strategies: the word “strategy” has long been used in the context of military
action plans. In modern times, the word “strategy” has found its way into the
management fields. It indicates a specific-programmed of action for achieving the
organization objective by employing the firm’s resources efficiently and
economically. The long term objectives of the enterprise are determined and
requisite resources are allocated and deployed to achieve the desired results.
III. Rules: a rule is a plan that lays down a required course of action with regard to a
situation. A rule is in the nature of a decision made by management regarding
what is to be done and what is not to be done in particular situation.
IV. Procedures: procedure is defined as a series of functions or steps performed to
achieve a certain task or undertaking. A procedure is also a standing plan
describing a customary method of handling a future activity; it gives a sequence
of action directed at a single goal that is repeatedly pursued.
V. Methods: method is also a standing plan more specific in scope than a procedure.
Methods are work plans describing in detail the manner and sequence of
performing the individual tasks needed to complete given assignments. Method
tells how a particular step in the procedure is to be performed. Standard methods
provide substantial improvement in efficiency.

2) Single use plan:

Single use plans are developed for certain purpose. Once the purpose is served, the plan
either cease to exist or they need alteration. Single use plans lay down a course of action
tailor-made for a specific situation and these plans have a short life as they have no
further value once the goal or object is accomplished.
I. Programmes: A programme is a sequence of activities directed towards the
achievement of certain objectives. A programme is action based and result
oriented. A programme lays down the definite steps which will be taken to
accomplish a given task. It also lays down the time to be taken for completion of
each step. The essential ingredients of every programme are time phasing and
budgeting. This means that specific dates should be laid down for the completion
of each successive stage of programme. In addition a provision should be made in
the budget for financing the programme. A programme might include such
general activity as purchasing new machines or introducing new product in the
market. Thus a programme is a complex of objective, policies, procedures, task
assignments, steps to be taken, resources to be employed and other elements to
carry out a given course of action.
II. Projects: a project may be defined as any scheme, or a part of a scheme for
investing resource, which can be analyzed and evaluated as an independent unit.
A project is, therefore, analysis, to achieve a desired objective within a certain
period. Every project has a defined starting and completion date. It is one-time
crash programme. A project has a distinct mission and a clear termination point,
III. Budgets:A budget is a single use plan since it is drafted for a particular period of
time. A budget is a statement of expected results expressed in quantitative terms
i.e. rupees, man hours, product units etc. Since it is a statement of expected
results, it is also used as an instrument of managerial control. It provides a
standard by which actual operations can be measured and variation could be
controlled. One should not forget that making budget is clearly planning. The
important budgets are sales budgets, production budgets, cash budgets, and
revenue and expenses budgets.
22. List the differences between strategic and tactical planning.

Ans:
Strategic planning Tactical planning
It is long term. It is short term.
Done at top management. Done at lower levels of management.

It consists of major goals and policies of It consists of use of facilities and resources.
organization and resources and facilities to
accomplish the goals.
It is less detailed, focuses only on long term More detailed since it caters to day to day
goals. operation.
It is based on long term goals and is more Based on performance and less uncertain.
uncertain.
23. Explain Hierarchy of plans.
Ans: The plans are generally arranged in a hierarchy within any organization. It starts at top
with objectives and goals of an organization. The second level is strategies. There are two
types of strategies namely single use plans and standing plans. The third level is action plans.
The hierarchy of plans is as shown in the figure.
➢ The top management sets the goals and objectives. These occupy the top priority. The
goals or objectives include long term plans and strategies of and organization. For
example, a company aims to improve their production by 20% during next 2 years. Such
objectives are very broad ideas and are achieved by strategies. Strategies are carried out
by means of two types of plans known as single use plans and standing plans.
➢ Single use plans are developed to achieve a specific goal after reaching the goal, the plan
is dissolved. Examples of single use plans are budgets, construction of bridge, dam or a
shopping complex etc.
➢ Whereas standing plans are developed for projects that happen again and again. For
example, admission procedure in college, overhauling procedure of an aircraft,
recruitment procedure of an organization etc.
➢ Action plans are the plans executed by the lower level organization. These are routine
plans executed by the foreman and supervisors of the shop.

Hierarchy of plans
24. Define Objectives. Discuss the characteristics of Objectives.

Ans: According to McFarland, “Objectives are the goals, aims purposes that the
organizations wish to achieve over varying periods of time”. George R Terry defines “A
managerial objective is the intended goal which describes definite scope and suggests
direction to the efforts of a manager”. Objective is the term used to indicate the end point
of management program, for which an organization is established and tries t o achieve.
Some of the characteristics of Objectives are:-
➢ Objectives are multiple in numbers
➢ Objectives are tangible or intangible
➢ Objectives have a priority
➢ Objectives some time clash with each other
➢ Objectives are generally arranged in hierarchy
Objectives are multiple in numbers:
Every business enterprise has a package of objectives set in various key areas. Peter
Drucker has emphasized setting objectives in eight key areas namely market
standing, innovation, productivity, physical and financial resources,
profitability, manager performance and development, worker performance
and attitude, and public responsibility.
Objectives are tangible or intangible:
Some of the objectives such as productivity, physical and financial resources are
tangible; whereas objectives in the areas of manager’s performance, workers
morale is completely intangible.
Objectives have a priority:
At a given point of time one objective may be important than another. For
example maintaining minimum cash balance is important than due date of
payment.

Objectives are generally arranged in hierarchy:

It implies that organization has corporate objectives at the top and divisional,
departmental and sectional objectives at the lower level of organization.
Objectives some time clash with each other: An objective of one department may
clash with the objectives of other department. For example the objectives of
production of low unit cost achievement through mass production of low quality
products may conflict with goal of sales department selling high quality products.
25. What are the requirements of sound objectives?

Ans: Requirements of sound objectives are:
(i) Objectives must be clear and acceptable: The objectives must be clear and
understandable amongst people which could be achieved by unambiguous
communication, should be compatible with their individual goals.
(ii) Objectives must support one another: Objectives could interlock or interfere with
one another which require the need for coordination and balancing the activities of
the entire organization, otherwise its members may pursue different paths making it
difficult for the manager to achieve the company’s overall objectives.
(iii) Objectives must be precise and measurable: An objective must be spelled out in
precise, measurable terms the reasons for which being
a) The more precise and measurable the goal, the easier it is to decide the way of
achieving it.
b) Precise and measurable goals are better motivators of people than general goals.
c) Precise and general goals make it easier for lower level managers to develop their
own plans for actually achieving these goals.
d) It is easier for managers to ascertain whether they are succeeding or failing if their
goals are precise and measurable.
b) Objectives should always remain valid: Means that the manager should constantly
review, reassess and adjust them according to the changed conditions.
26. List the advantages of objectives.

Ans: The following are the benefits of objectives. They provide a basis for planning and for
developing other type of plans such as policies, budgets and procedures.
(i) They act as motivators for individuals and departments of an enterprise imbuing their
activities with a sense of purpose.ult in undesirable com
(ii) They eliminate haphazard action which may result in undesirable consequences.
(iii) Facilitate coordinated behavior of various groups which otherwise may pull in
different directions.
(iv) Function as a basis for managerial control by serving as standards against which
actual performance can be measured.
(v) They facilitate better management of the enterprise by providing a basis for leading,
guiding, directing and controlling the activities of people of various departments.

(vi) Lessen misunderstanding and other conflict and facilitate communication among
people by minimizing jurisdictional disputes.
(vii) Provide legitimacy to organizations activities.
27. Differences between the policy and the procedure.

Ans:
Policies Procedures
1.Are the general guidelines to both thinking and 1.Are the guidelines to action only usually for
action of people at higher levels the people at the lower levels
2.Help in fulfilling the objectives of the 2.show us the way to implement policies
enterprise 3. Are specific and do not show latitude.
3. Are generally broad and allow some latitude 4.are always established after thorough study
in decision making. and analysis of work
4.Are often established without any study or
analysis
28. What are the steps involved in planning?
Ans: Planning is the most basic function of management. It is referred to as “deciding in

advance” as what to do, how to do, when to do and who has to do.
The Main steps involved in planning are:
• Being Aware of Opportunities: This is very first step and starting point for planning.
Once we are aware of opportunities, we can think of setting realistic objectives.
• Establishing Objectives: It is very important to establish objectives for the entire
enterprise and the objectives for each subordinate work units.
• Developing Planning premises: The third step is to establish the planning premises. It is
the process of creating assumptions about the future on the basis of which the plan will be
ultimately formulated. Planning Premises are important for the success of planning as
they reveal facts and information relating to the future such as economic conditions,
production costs competition, availability of material, resources and capital, government
policies, population trends etc.
• Determination of Alternative course: This is to search and identify alternative course of
action. It is very rare that for a plan there will be no alternatives.
• Evaluating the Alternatives: Once the alternatives are found. The next step is to
evaluate them with respect to the premises and goals.

• Formulating Derivative plan: In order to complete the task, the selected plan must be
translated into programs, working plans and financial requirements in the sub-units.
These sub-derived plans from main plan are termed as derivative plans.
• Monitoring and controlling the plan: This is the last step in planning. Each activity of
plan is monitored on a continuous basis and if any deviation or shortfall is noticed, then
the manager will initiate suitable corrective action.
29. Define the term, ”Organisation”. Give its characteristics.

Ans: According to Amitai Etzioni – “ an Organisation is a social unit or human grouping
deliberately structucted for the purpose of attaining specific goals”.
Sehein defines “an Organization as the rational coordination of the activities of a number of
people for the achievement of some common explicit purpose or goal, through division of labour
and function, and through a hierarchy of authority and responsibility”.
Allen defines the term as “the process of identifying and grouping of the work to be performed,
defining and delegating responsibility and authority and establishing relationships for the
purpose of enabling people to work most effectively together in accomplishing their objectives”.
Pfiffner and Sherwood – “ an Organisation is the pattern of ways in which large numbers of
people ,too many to have intimate face to face contact with all others, and engaged in a
complexity of tasks, relate themselves to each other in the conscious, systematic establishment
and accomplishment of mutually agreed purposes”.
Characteristics of Organization:
Every Organization must have
1. Objectives- part of the planning process.

2. Clear idea of activities involved.
3. Classification of activities into jobs.
4. Relationship between these jobs.
30. What is an organization? Explain the nature and purpose of organization?

Ans: An organization can be defined as a social unit or human grouping deliberately structured
for the purpose of attaining specific goals.
An organization can also be defined as the process of identifying and grouping of the work to be
performed, defining and delegating responsibility and authority and establishing relationships for
the purpose of enabling people to work most effectively together in the accomplishment of their
objectives.

Nature of organization:
1)An organization basically consists of group of people who form the dynamic human element of
the organization
2) Organization helps in identifying the various tasks to be performed which are assigned to the
individuals to perform to achieve the common objectives or common purpose of the
organization.
3) It ensures to achieve coordination amongst the people working in various departments of the
organization And ensures integrated efforts to achieve organizational objectives or goals.
4) It delegates authority to the managers with commensurate responsibility and accountability for
the discharge of their duties and also amongst different hierarchical levels in an organization.
5) It also aides in achieving financial, physical material and human resources.
6) Organizations are part of the larger environment and hence they are influenced by the
external environment.
7) Organization helps in the realization of the plans made by the managers
8)It helps in nurturing and growing special skills and talents by the virtue of division of labour
9)it facilities seamless communication
Purpose of an organization:
The purpose of any organization is to achieve goals for which it is formed which aims at
achieving common objectives through its group member efforts.The organizations exist for
different purpose and the efforts for organizational members are directed for the achievement of
this purpose.
For example: For business organization the purpose is to develop people and their skills for
contributing towards the growth of the enterprise through profits For nonprofit organization the
purpose the objective would be to serve the members of the committee in a productive manner
31. Explain in brief the various types of organization.
Organizations can be of two types as given below
1) formal organization
2) informal organization
formal organization
• Formal means the intentional structure of roles in a formally organized enterprise

• The structure must furnish an environment in which individual contributes to group
goals
• Formal organizations should be flexible
• There should be room for talent for recognition
informal organization

• is a joint personal activity without conscious joint purpose, even though contributing to
joint results
• Thus, the informal relationships established in the group of people during morning tea
break or playing cricket in the evening etc., may aid in the achievement of organization
goals
• It may be easier to ask for help in an organization problem from someone you know
personally, even if he may be in a different section, than by passing through the
organization structure
Four types of organizations/organization structure

• Line ,Military or Scalar Organization
• Functional Organization
• Line and Staff Organization
• Committee Organization
Line ,Military or Scalar Organization

• Simple and oldest type of organization
• Structure is a direct vertical relationship through which authority flows
• Each department is usually self contained
• Flow of order is top down
Advantages
o Simplicity
o Quick decision and speed of action
o Unity of control
o Clear division of authority and responsibility
o Discipline and better coordination
o Direct communication

• Disadvantages
o Rigid and inflexible
o Mangers may act as dictators
o Favorism and nepotism
o Red tape and bureaucracy
o Lack of specialization
Functional Organization
• Line organization does not provide specialists in the structure

• In functional organization structure , specialists are made available throughout
• Here various activities , such as production, marketing, finance etc are put under
functional specialists
• Functional incharge directs the subordinates throughout the organization
• Subordinate receives instructions not only from the boss but also from several functional
specialists
Advantages
• Specialization
• Reduces burden on top executives
Disadvantages
– Violates unity of command
– Functioning is too complicated
– It develops specialist rather than generalists
– May be lack of coordination among functional executives

Line and staff organization
• Combines both line and functional organization structure

• In line and staff organization
– The line authority remains the same
– Authority flow from top to bottom
– Specialists are attached to the line managers to advice them
– Line officials takes decision based on the input
• Staff officials
– Do not have any command in the organization
– Staff investigates , supplies information and recommendations to managers
• Advantages
– Specialized knowledge
– Reduction of burden on line managers
– Better decisions , as staff helps line

– Unity of command
– Flexible
• Disadvantages
– Allocation of duties between line and staff is not clear
– Conflict between line and staff
– Since Staff is not accountable , they may not perform well
– Staff –more theoretical whereas line tends to be more practical
Committee Organization
• It is a group of people who have been formally assigned some specific task or some
problem for their decision & or implementation.
• Used widely in modern business enterprises
• Committees emphasize on group management and group participation in organizations
Committees are broadly classified into two groups

1) Advisory committees
2) Executive committees
Advisory committees
• When committees are vested with staff authority, they are known as advisory committee
• They have only a recommendatory role
• They cannot enforce implementation of their advice
• Some of the usual advisory committees formed in business enterprises are :
a) works committees
b) sales committees
c) finance committees
d) workers welfare committees etc.
Executive committees
• Whenever committees are vested with line authority, they are called as executive
committees
• These committees not only take decisions but also enforce decisions
• thus perform a role of taking a decision and its implementation
• Example: The board of directors of a company
Advantages of a Committee
• When committees consist of all departmental heads as members,

• they understand the problems of each other

• coordinate effectively to achieve organizational goals
• It is a forum for the pooling of knowledge & experience
• This leads to taking quality decisions
• Provide an opportunity for many persons to participate in the decision making process
• Since a group decision , more likely to be accepted by all
• They are an excellent means of transmitting information and ideas, both upward and
downward
• By exposing members to different issues and view points, they contribute indirectly to
their training & development
Drawbacks of Committees
• One of the best administrative procedures to delay action is to refer the matter to a
committee
• It takes longer time to get action from a committee than from an individual manager
• For wrong decisions, no members of the committee can be individually held responsible
& members therefore may no apply their mind seriously
• A huge amount of time and money is spent in convening such meetings
• Therefore, committees increase the financial burden on the organization
• Members of coordinating committees frequently regard themselves as appointed to
protect the interests of their departments rather than to find the most appropriate solution
to the problem in question
• some compromise is done among members
• It is difficult to maintain secrecy regarding the decisions taken
32. Define staffing and discuss the nature and importance of staffing
Ans: It is defined as “filling and keeping filled, positions in the organizations structure”. It is
also known as “HUMAN RESOURCE MANAGEMENT”. This includes identifying the
requirement of work force, recruiting, selecting, placing, etc.
NATURE AND IMPORTANCE OF STAFFING
• It helps in discovering talented and competent workers and developing them to move the
organisation ladder.
• Staffing is important to put the right person at the right job which results in increased
production.
• It avoids sudden disruption of the production due to shortage of workers, since it plans
and fills the position.

• It maintains harmony and creates healthy atmosphere in any organization by planning the
promotions, training needs and additional skills required.
• It plans the required of man power at various tie and levels of a project and cater to it.
33. Describe various steps followed in recruitment process.

Ans: Various steps followed in recruitment process as follows:
(1) Receipt of applications: Whenever there is vacancy, it is advertised or enquires are made
from suitable sources and applications in standard form are received from the candidates. The
applications give preliminary idea of the candidates like age, qualifi- cations, experience etc.,
Standard forms make the application processing very easy.
(2) Screening of applications: Applications received from the candidates are screened by the
screening committee and a list of candidates to be interviewed is prepared. Applicants can be
called for interviews on some specific criterion like sex, desired age group experience and
qualification. The number of candidates to be called for interview is five to seven times the
number of vacant positions to be filled.
(3) Employment tests: Employment tests help in matching the characteristics of individuals with
the vacant jobs so as to employ the right kind of people. Intelligent tests, Aptitude tests,
proficiency tests, personality tests, interest tests etc. may be used for this purpose.
(4) Interviews: The employment tests do not provide the complete set of information about the
candidate. Interview may be used to secure more information about the candidate. The main
purpose of interview is to find out the suitability of the candidate, to seek more information
about the candidate, to give an accurate picture of the job with details of terms and conditions. In
addition, interview help to check the information given by the applicant in the application and to
assess the capability and personality of the applicant. For senior positions, interviews may be in
several stages. The preliminary interview is conducted by head of the department and the final
interview is conducted by the selection committee consisting of chairman of the organization,
head of the department, personal manager and outside experts. After all the candidates have been
interviewed, a panel is proposed. The number of persons in the panel is generally about two to
three times the number of vacancies to be filled up. Background investigation and medical
examination: Prior to final selection, the prospective employer normally makes an investigation
about applicants past employment, education, personal reputation, police record etc., Medical
and physical examination has three objectives:
• It serves to ascertain applicant’s capabilities to meet the job requirement.
• It serves to protect organization against the unwarranted claims under worksman
compensation.
• It helps to prevent communicable deceases entering the organization.
• A proper medical examination will ensure standards of health and physical fitness of the
employees and reduce the rates of accidents, labour turnover and absenteeism.
(5) Final selection: After a candidate has cleared all the hurdles in the selection procedure, he is
formally appointed by issuing him an appointment letter or by concluding with him a service
agreement. The appointment letter contains the terms and conditions of employment, pay scale
and other benefits associated with the job.

34. Explain the selection process of personnel.

Ans: There are three steps in the selection procedure namely job analysis, job description
and job specification.
1)Job analysis: Is the process by means of which a description is developed of the present
methods and procedures of doing a job, physical conditions in which the job is done, relation of
the job to other jobs and other conditions of employment
2)Job description: The results of the job analysis are set down in job descriptions for production
workers, clerical people and the first-line supervisors and managers also.
3)Job specification A job specification is a statement of the minimum acceptable human
qualities necessary to perform a job satisfactorily. Commonly used selection procedure steps.
1)Application bank: Filling the application blank by the candidate is the first step in which the
applicant gives relevant personal data such as qualification, experience, firms in which he has
worked.
2)Initial interview: Selected personnel based on the particulars furnished in the application
blank are called for the initial interview by the company Which is the most important means of
evaluating the poise or appearance of the candidate.
3) Employment tests: Are used for the further assessment of the candidate of his nature and
abilities certain tests are conducted by the company. These are:
(i)Aptitude test: is used in finding out whether a candidate is suitable for clerical or a
mechanical job which helps in assessing before training as how well the candidate will perform
the job.
(ii)Interest test: is used to find out the type of work in which the candidate has an interest.
(iii) Intelligent test: used to find out the candidates intelligence and candidates mental alertness,
reasoning ability, poor of understanding are judged.
(iv) Trade or performance achievement test: this test is used to measure the candidate’s level
of knowledge and skill in the particular trade or occupation in which all he will be appointed, in
case he is finally selected. in this test the candidate is asked to do a simple operation of the
proposed job.
Example: A candidate for a driver may be asked to drive to test his driving proficiency, a
typist may be asked to type out some letters to find out his speed and efficiency.
(v)Personality test: is used to measure those characteristics of a candidate which constitute his
personality.
Example: self confidence, temper ant, initiative, judgment, dominance, integrity, originality.
personality tests are very important in the selection process.
4) Checking references: used to know about the important personal details about the candidate,
his character, past history his background verified from the people mentioned in the application
after selection and found satisfactory at the interview.
5) Physical or medical examination: is another step in selection procedure. The objectives of
this examination are
• to check the physical fitness of the applicant for the job applied for
• to protect the company against the unwarranted claims for compensation under certain
legislative enactments.
6) Final interview: This interview is conducted for those who are ultimately selected for
employment and the selected candidates are given an idea about their future projects within the
organization.

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MANAGEMENT AND ENTREPRENEURSHIP FOR IT INDUSTRY 15CS51

1. Define management according to the various personalities.

• Koontz: - “Management is the process of designing and maintaining an environment in

• George R. Terry: - “Management is a process consisting of planning, organizing,

• ILO:- “Management is the complex of continuously coordinated activity by means of

• Lawrence A. Appley:- “Management is guiding human and physical resources into a

2. Discuss the nature and characteristics of management? Explain its functions.

15CS51: M & E FII /YR 2017/GAT/CSE DEPT/MODULE-1 Page 1

o managing is concerned with productivity, which implies effectiveness and

Characteristics of management: Management is

➢ Management is a universal process

➢ Management is goal oriented

➢ Management is a social process

➢ Management is a Coordinating process

15CS51: M & E FII /YR 2017/GAT/CSE DEPT/MODULE-1 Page 2

convert disorganized resources of materials, machines into useful and meaningful

➢ Management is creative activity

➢ Management is decision making

➢ Management is a continuous process

➢ Management is an integrating force

3. Explain the Scope of Management

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• Personnel management includes recruitment, training, transfer promotion, demotion,

4. With a neat sketch, explain the functions of management (Process of management)?

Ans: There are four essential functions of management, they are

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Planning is an executive function that is referred to as decision making. It involves

➢ Setting short and long term goals for organization.

Organizing is a part of management that involves in establishing an intentional structure

➢ Determination of activities required to achieve goals.

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➢ Finding the right person for right job.

Directing involves three sub-functions namely communication, leadership and

• Financial Motivations – In the form of salary, bonus, profit-sharing, rewards etc.

➢ Establishing standards of performance.

5. Briefly discuss goals of management.

Ans: Goals of management are:

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6. Explain levels of management?

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7. What are the different development/Evolution of management thought.

Ans: Evolution of the management is as shown in the figure below:

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4.Scientific requirement and training:

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11. Write a note on Bureaucracy approach.

12. Explain the contributions, features and limitations of Bureaucratic Administration.

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4) Displacement of goals: Very common phenomena in bureaucratic organization and takes

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13. Explain Neo-classical approach

1) Illumination Experiments: Was considered to be the first phase of study

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4) Bank wiring observation room: Can be considered as the fourth phases of

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15. Give a brief account of Behavioral approach:.

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Ans: There are three approaches. They are.

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• Classical approach emphasizes “task” and structure. Behavioral approach

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Different and changing situations demand managers to use different