IGNOU B.Com Solved Question Paper
Term-End Examination (December, 2012)
ELECTIVE COURSE: COMMERCE
ECO-3: MANAGEMENT THEORY
Time: 2 hours (Maximum Marks: 50)
(Weightage: 70%)
Note: Attempt any
five questions. All questions carry equal marks.
SECTION - A
1. (a) Do you agree with the view that
management is both science and an art ? Discuss. 5+5
Ans: Management
As a Science: Science is defined as a systematized body of knowledge and
it uses scientific methods of observation measurement, experimentation etc.
Science may be normative and positive both. Its principles are exact and
university applicable. Similarly, Management has systematized body of knowledge
and its principles are evolved on the basis of observation and are applicable
universally. Management is also considered as a science since it is based on
certain definite principles and particular methods are applied to solve various
problems before the management personnel. But at the same time it should also
be born into mind that management cannot be given the place of science like
Physics, Chemistry etc. It is not as true and full of facts as the natural
sciences are in their subject matter. There are several reasons which do not
allow management to be considered as pure science. These are:
a)
Universally unverifiable: Management principles are not universally
verifiable.
b)
Modified plans and policies: Unlike science, managers are deals with government, employees,
customers etc. who are human beings and it is not possible to hold human beings
constant and any prediction about these factors is impossible.
c) Based on imaginary considerations: Management principles and concepts are based on imaginary considerations like human behaviour, etc. Its principles when executed do not provide exact results.
d)
Incomprehensive: Various managerial techniques are new and not
known to each and every manager due to lack of proper training. A manager
prefers other ways to solve managerial problems.
Management As an Art: Art refers to the way of doing specific
things i.e. it indicates “how an objective is to be achieved. It is the skill
and ability to achieve the desired results.
Art is the practical application of skill and ability guided by certain
principles or truths. Management is an art in the sense that it calls for
ability and skill to translate scientific management knowledge into meaningful
practice. The art of management consists in understanding the diverse
managerial and organisational situations and in applying relevant management
concepts and methods to the practical realities. Managers have to be creative
and innovative in their thinking and have to rely on their own previous
experience in every situation. Management is also an art in the sense that
management involves blending and balancing diverse interests and concerns, at a
point of time and over a period of time. In short, Management is considered as
an art because of the followings reasons:
a) The process of management involves the use of
ability and skills.
b) The process of management is directed towards the
accomplishment of organisational objectives.
c) It is creative in the sense that it is the
function of creating productive situations needed for further improvements.
d) Management is personalized in the sense that
every manager has his own approach to problems.
Management is both a science as well as an
art. The science of management provides
certain principles that can guide managers in the professional efforts, while
the art of management deals with tackling every situation in an effective
manner. Planning and organizing
emphasize the science of management while direction, communication motivation
coordination and control emphasize art of management. Getting work done through people is an art of
management.
(b) State the social responsibilities
of management towards owners and the society.
Ans: Responsibility of management
towards various sector are listed below:
1) Towards the owners: Owners are the person
who invested funds in the organisation. Their prime aim is to earn higher
profits and prosperity and growth of the organisation. Some of the responsibilities
of management towards the owners are stated below:
a) Obtaining maximum output with minimum input
and cost.
b) Improving efficiency of the factors of
production which will lead to excellent performance.
c) Reasonable profits so as to give a fair
return on the capital invested in business.
d) Survival and solvency of the business.
2) Towards the society: Management is not only
a representative of the owners and employees but is also responsible towards
various groups outside the organisation such as consumer, government, creditors
etc. Some of the responsibilities of management towards the society are listed
below:
a) Supply of quality goods and services at
reasonable prices.
b) Honest and regular payment of taxes to the
government.
c) Using eco-friendly method of production.
d) Fair dealings with suppliers, dealers and
competitors.
e) Providing employment opportunities to the
weaker section of the society.
2. Explain the meaning of the term
'Planning' and state its salient features. 3+7
Ans: Planning:
Planning is the primary function of
management. Planning concentrates on
setting and achieving objectives through optimum use of available
resources. Planning is necessary for any
organisation for its survival growth and prosperity under competitive and
dynamic environment. Planning is a
continuous process to keep organisation as a successful going concern,
Koontz and O’Donnel – “Planning is deciding in
advance, what to do, how to do it, when to do it, and who is to do it. It bridges the gap from where we are to where
we want to go.”
Allen – “Management planning involves the
development of forecasts, objectives, policies programmes, procedures,
schedules and budgets.”
Haynes and Massie - Planning is a decision
making process of a special kind. It is
an intellectual process in which creative thinking and imagination is
essential.”
Alfred and Beatty - “Planning is the thinking
process, the organized foresight, the vision based on fact and experience that
is required for intelligent action.
Nature and
Characteristics of Planning or Essentials of a good plan
a)
Primacy
of planning or primary function: .Planning is a
primary function. That is, it is a primary requisite to the managerial
functions of organising, staffing directing, motivating, coordinating,
communicating and controlling. A manager must do planning before he can
undertake the other managerial functions.
b)
Goal-oriented
or focus on objectives: Planning is goal-oriented. That is,
planning is linked with certain goals or objectives. A plan starts with the
setting of objectives; and then, develops policies, procedures, strategies,
etc. to achieve the objectives.
c)
Pervasiveness
of planning: Planning pervades all levels of management.
That is planning is done at all levels of .management. In other words, every
manager, whether he is at the top, in the middle or at the bottom or
organisational structure, plans.
d)
Essentially
a decision-making process: Planning is essentially a
decision-making process, since it involves careful analysis of various
alternative courses of action and choosing the best.
e)
Integrated
process: Planning is an integrated process. That is it
facilitates and integrates all other functions of management.
f)
Selective
Process: Planning is a selective process. That is, it
involves the selection of the best course of action after a careful analysis of
the various alternative courses of action.
g)
Flexible:
Planning must be flexible. That is, generally, the process of pi3nning must be
capable of being adapted to the changes in the environment. In fact, successful
planning should be flexible.
h)
Formation
of premises: Planning requires the formation of premises
(i.e., assumptions). It is only on the basis of premises or assumptions
regarding the future (i.e., the future political, social and economic
environments) that the plans will be ultimately formulated.
i)
Directed
towards efficiency: The main purpose of planning is to
increase the efficiency of the enterprise. That means, planning is directed to
wards efficiency.
3. Explain the meaning of 'management'
and describe the functions of 'management'. 3+7
Ans: Introduction:
Management is the coordination of all
resources through the process of planning, organising, directing, staffing and
controlling in order to attain stated objectives effectively and
efficiently. Effectively means doing the
right task, completing activities and achieving goals and efficiently means to
attain objectives with least amount of resources at a minimum cost. This process starts at the top and
continues in more or less degree at every level of the organisation.
According to Harold Koontz, “Management is an
art of getting things done through others and with formally organised
groups."
According to F.W. Taylor, “Management is an
art of knowing what do you want to do and then seeing that is is done in the
best and cheapest way.”
According to Henry Fayol, “To manage is to
forecast, to plan, to organize, to command to co-ordinate and control.
George R. Terry, “Management is a distinct
process consisting of planning, organising, actuating and controlling
performance t determine and accomplish the objectives by the use of people and
resources,”
Thus management may be defined as a process
including various activities like planning, organising , directing,
controlling co-ordination etc in order
to make optimum use of men machinery, materials and money by way of preparing
plans, policies and purposes, for achieving organisational goals under healthy
internal environment.
Functions/Elements
of Management
According to Henry Fayol, in every
organisation manager perform certain functions to achieve results. These
functions are broadly classified under five categories:-
a)
Planning:
Planning is a process of making decision about future. It provides direction to
enterprise activities. Its work is to decide in advance what is to be done,
when and where it is to be done, how it is to be done and by whom. The main
functions of planning are Set up goals, Forecasting, Search for alternatives
source of action and Budgeting.
b)
Organising: It is
concerned with the arrangement of an organisation’s resources – people,
material, technology and finances in order to achieve enterprise objective. The
main functions of organising are Job design, Job specification and Authority
and responsibility.
c)
Staffing:
Staffing is the function of employing suitable personas for the enterprise. It
may be defined as an activity where people are recruited, selected, trained,
developed, motivated and compensated for manning various positions.
d)
Directing:
According to Dale, direction is telling people what to do and seeing that they
do it to the best of their ability. Directing is a function of guiding and
supervising the activities of sub ordinates. The four main elements of
directing are:-
1. Leadership: It
is a process of influencing the action of a person or a group to attain desired
objectives. The success of an organisation depends upon the quality of
leadership shown by its managers.
2. Motivation: It
is the process of stimulating people to take desired courses of action. It is
to inspire, encourage and impel people to take required action.
3. Communication:
It is a way of reaching other with ideas, facts, and thoughts. Effective
communication is important in organisation because managers Can achieve very
little without it.
e)
Controlling: It
is the management function concerned with monitoring employee’s activities,
keeping the organisation on track towards its goals, and making corrections as
required. It include four things:
Ø
setting standard
of performance;
Ø
measuring actual
performance;
Ø
comparing actual
performance against the standard ;
Ø
taking corrective
actions to ensure goal accomplishment.
4. What do
you understand by the term 'Organization'? Explain briefly the important
principles of organization. 2+8
Ans: The term 'Organisation' can be used in
different senses. It can be used as a group of person working together to as a
structure of relationships or as a process of management. When it is used to refer to a group of person
working together, it means a concern, an undertaking or as enterprise.
When it is used to refer to a structure of
relationships, it means the structural relationships among the positions and
jobs and person (i.e., the framework of responsibility and authority) through
which the enterprise functions, and it is called organisation structure.
On the other hand,
Organising or Organizing in management refers
to the relationship between people, work and resources used to achieve the
common objectives (goals).
Principles
of Sound Organisation
There are many principle of organisation. The
main principles are:
1.
Principle
of Objectives: The principle of Objectives stresses
the need for setting the objectives of the enterprise. The setting of the
objectives of the enterprise is necessary, because the formulation of the
organisation structure s very much influence by objectives of the enterprises
2.
Principle
of Unity 'of Objectives: The Principle of unity of objectives
implies that / every part of the organisation and the organisation as a whole
should be geared to the basic objectives of the enterprise, in other words the
main objectives of the enterprise.
3.
Principle
of division of work and specialization: Specialization
has become the / order of the day. So, sound and effective organisation must be
built on the principle of specialization
4.
Principle
of Functional definition: The principle of functional
definition implies that / the functions, duties and responsibilities of the
different departments and position in the organisation their authorities and
their relationships with other departments and position must be clearly
defined.
5.
Principle
of balance of various factors: The principle of
balance of various factors suggests that there should be popper balance in the
formal structure of the organisation in regard to various factors; For
instance, there should be proper balance among the; different segments or
departments' of the undertaking. That ism, the work- load should be properly
distributed among the various departments to maintain balance and harmony the
working of the organisation. There should be balance in authority allocation to
different departments.
6.
Principle
of simplicity: The principle of simplicity means
that the organisation structure should be simple with a minimum number of
managerial levels. If there are a large number of managerial levels in the
organisation structure, there may raise the problem of effective co-ordination
and communication
7.
Principle
of Span of Control or Span of Management: Span of
control or span of management refers 10 'numbers of subordinates a superior can
direct, guide and control effectively. The span of control should be minimum,
because there is a limit to the number of subordinates that can be effectively
supervise by a superior.
8.
The
Scalar Principle, the scalar chain, the chain of the command or line of
authority: Scalar chain is the chain of superiors. the
line of command or the line of authority form the highest rank to the lowest
rank in the organisation established for the purpose of communication in both
the directions, it establishes the channel through" which communications
should pass, and also states the superior- subordinate relationships in the
organisation.
5. Critically examine Maslow's theory
of motivation. 10
Ans: Maslow Abraham proposed his theory in the
1940s. This theory, popularly known as the Hierarchy of Needs assumes that
people are motivated to satisfy five levels of needs: physiological, security,
belongingness, esteem and self-actualization needs. The figure 9.1 shows
Maslow's hierarchy of needs
Maslow suggested that the five levels of needs
are arranged in accordance with their importance, starting from the bottom of
the hierarchy. An individual is motivated first and foremost to satisfy
physiological needs. When these needs are satisfied, he is motivated and 'moves
up' the hierarchy to satisfy security needs. This 'moving up process continues
until the individual reaches the self-actualization level.
a)
Physiological
needs: Physiological needs represent the basic issues of survival such as food,
sex, water and air. In organisational settings, most physiological needs are
satisfied by adequate wages and by the work environment itself, which provides
employees with rest rooms, adequate lighting, comfortable temperatures and
ventilation.
b)
Security or
safety needs: Security or safety needs refer to the requirements for a secure
physical and emotional environment. Examples include the desire for adequate
housing and clothing, the need to be free from worry about money and job
security and the desire for safe working conditions. Security needs are
satisfied for people in the work place by job continuity, a grievance resolving
system and an adequate insurance and retirement benefit package.
c)
Social needs:
Belonging or social needs are related to the, social aspect of human life. They
include the need for love and affection and the need to be accepted by one's
peers. For most people these needs are satisfied by a combination of family and
community relationships and friendships on the job. Managers can help ensure
the 'satisfaction of these important needs by allowing social interaction and
by making employees feel like part of a team or work group.
d)
Esteem needs:
Esteem needs actually comprise of two different sets of needs:
i.
The need for a positive self-image and
self-respect.
ii.
The need for recognition and respect
from others.
Organisations
can help address esteem needs by providing a variety of external symbols of
accomplishment such as job titles and spacious offices. At a more fundamental
level, organisations can also help satisfy esteem needs by providing employees
with challenging job assignments that can induce a sense of accomplishment.
e)
Self-actualization
needs: At the top of the hierarchy are those needs, which Maslow defines the
self-actualization needs. These needs involve realizing one's potential for
continued: growth and individual development. Since these needs are highly
individualized and personal, self-actualization needs are perhaps the most
difficult for managers to address. Therefore, an employee should try to meet
these needs on his own end.
However, an
organisation can help his employee by creating a climate for fulfillment of
self-actualization needs. For instance, an organisation can help in fulfillment
of these needs by encouraging employee’s participation in decision-making
process and by providing them with an opportunity to learn new things about
their jobs and organisation. This process of contributing to actual
organisational performance helps employees experience personal growth and
development associated with self-actualizing.
Critical
Analysis of Maslow’s Theory
A number of research studies have been
undertaken to see the validity of hierarchy of needs. Lawler and Suttle
collected data on 187 Managers in two different organisations for a period of
six months to one year. No evidence was found to support Maslow's theory. They
found there were two levels of needs-biological and other needs- and that other
needs would emerge only when biological needs were reasonably satisfied. A
survey conducted in India of 200 factory worker revealed that they give top
priority to job security, earnings and personal benefits-all lower other needs.
It is generally seen that needs do not follow
Maslow's hierarchy. The hierarchy is determined by individuals differently.
They proceed to follow their own pattern of needs satisfaction. Some people may
try for self-actuating needs rather than lower needs. For some persons esteem
needs are more important than social needs.
There is no cause effect relation between and
need and behavior. A particular need may cause behavior in different ways in
different person. Similarly, one particular behavior may result due to
different needs. It is said that higher needs motivate a person when lower
needs are reasonably satisfied. The word 'reasonably satisfied' is a subjective
matter. The level of satisfaction may be different for persons.
6. What do you understand by
'Leadership'? Explain the qualities of an 'Effective Leader'. 3+7
Ans: Introduction to Leadership
Leadership is the ability to build up
confidence and deal among people and to create an urge in them to be led. To be
a successful leader, a manager must possess the qualities of foresight, drive,
initiative, self-confidence and personal integrity. Different situations may
demand different types of leadership.
Leadership means influencing the behaviour of
the people at work towards realizing the specified goals. It is the ability to
use non-coercive (no force) influence on the motivation, activities and goals
(MAG) of others in order to achieve the objectives of the organisation.
Qualities of a Good Leader
1.
Patience: Patience
is the capacity to face difficult situations, hardships or inconvenience
without making a single complaint. A good leader must show patience while
waiting for expected results, facing difficult situations and taking important
decisions. He must avoid taking hasty decisions and actions.
2.
Good Personality: A good personality is a combination of
physical, mental and social qualities. Good personality helps a leader to
influence his followers. Attractive physique and good manners add an advantage
to the leader's personality.
3.
Self-confidence: A good leader must have self
confidence. This quality is necessary for facing challenging situations and for
solving problems easily and effectively.
4.
Human Skills: A good leader must have essential
social and human skills. That is, he must understand people. This quality is
necessary for dealing with different types of persons and social groups.
5. Judgment
skills: A good
leader should be able to examine problems in right perspective. His judgment
and decision making abilities should be superior to others. He should be able
to form opinions and judge based on facts and not be prejudiced
6. Communication
skills: A good
leader should be able to communicate the goals and procedures of the
organisation clearly, precisely and effectively to the subordinates. Only then
will it be possible for him to convince, persuade and stimulate subordinates to
action.
7. Listening
skills: People tend
to avoid a leader who does not listen. Hence a good leader in one who can listen
to other people’s problems. He should be able to create a culture whereby
people can be frank with him and give him information and also give him
feedback about himself, which can help him to improve himself.
7. (a) Why is 'Communication'
important for an organization? 5+5
Ans: Significance (Need) of Business
communication
Communication is the life blood of business.
It is an all pervasive function of management. Today the organizational
structure is designed on the basis of specialization and division of labour.
Large number of people work together who are functionally related to each
other. Thus, co ordination is must amongst the workmen. Co-ordination can be
achieved only when there is mutual trust and understanding between them. This
understanding is created by effective communication. Thus communication is an
essential ingredient for effective management. Further the role of
communication may be summed up as:-
1. The objectives, plans and policies of the
organization are cleared to the workers through communication.
2. It provides unity of direction to various
activities of the enterprise.
3. It helps in controlling and coordinating the
various activities of the organization.
4. It helps in motivating the workers of an
organization.
5. It helps the managers to develop their
managerial skill.
According to Sir John Harvey-Jones, “Communication
is the single most essential skill. Effective
communication is the need of the day.” In recent times communication has become all more essential due to the
following reasons:-
1. Growth in the size of the business
organization: An efficient system of communication
is required because the business organizations are growing tremendously.
Thousands of people work in the organization. Organizations have factories or
offices in different parts of the country or even world.
2. Advance technology: Day by day rapid changes are taking place in
science and technology leading to obsolescence of old technology. Thus in order
to upgrade or modernize technology proper communication between the superior
and subordinate in an organization is a must.
3. Tough competition in the market: Globalization and liberalization have resulted
in cut throat competition. Thus to survive such competition, persuasive
communication in form of advertisement, publicity, personal contacts are
essential.
4. Growing specialization: Division of work paved way for specialists to
work in different department’s sound communication is thus essential for
ensuring mutual cooperation and understanding between different departments.
5. Trade union movement: trade union movement is on its growth. Management
now has to consult trade unions on various matters. A strong and meaningful
relation between management and trade union is possible only by effective
communication.
6. Human relation: Employee’s participation in management helps
to develop among them a sense of loyalty and belongingness towards the
organization. Thus effective communication between management and employee is
necessary to develop mutual trust and confidence.
7. Public relations: Public relations help an organization to
improve its image in society as the organization has a social responsibility
especially towards the customers.
(b) Explain the manner in which you
would make communication effective in your organization.
Ans: How Communication is made effective?
Communication becomes effective when the receiver
understands the meaning of the message as the sender intends. To make communication effective, the
following rules should be involved:
1. Specific Purpose: The sender must be clear
about the specific purpose that he wants to communicate to the receiver.
2. Study the
Listener: The sender must study the interest and attitude of the receiver to make communication effective more.
3. Organization
of Idea or Thought: The communicator must make up
a plan about how he is going to communicate. He must organize his thoughts and
ideas in advance.
4. Proper
Transmission of Message: The message must be
transmitted in such a way that it is accepted by the listener or reader with
interest.
5. Personal Touch: The personal element is the
keynote of communication. Sender's sincerity & sympathy influence the
listener a lot.
6. Mutual
Understanding: A mutual understanding should
be established between the sender and receiver of the message.
7. Awareness of the
Need for Effective Communication: The sender and receiver of
communication must be aware to make communication meaningful.
8. Provision for Feedback: When message is sent to the
receiver, there must be a feedback to the sender. Two way communications
creates the best possible feedback.
9. Selection of a
Good Channel: The sender of message must
select an effective and formal
channel to communicate with the
receiver.
10. Active Listening: This provides proper feedback
to the sender to complete the communication process.
8. What are the
objectives of co-ordination? Also state the problems you are likely to face in
coordination. 5+5
Ans: Objectives of Co-Ordination:
1. Harmony
of Goals: The most important objective of
co-ordination is to create harmony of objectives in the minds of the employees.
2. Total
Accomplishment: The other main
objective of the co-ordination is to achieve total accomplishment rather than
individual effort. It has been proved beyond doubt that total accomplishment is
always much more than the sum of the individual efforts.
3. Economy
and Efficiency: Another
important objective of co-ordination is economy and efficiency. The
co-ordination among the various resources of input results in economy and
efficiency in the organisation.
4. Good
social Relations: Integration of
individual interests and organisational goals is the primary objective of the
co-ordination. It provides job satisfaction and boosts morale of the employees
and also establishes goods human relations in the enterprise.
The Difficulties of Coordination are
as follows: Paul R. Lawrence
and F.W. Lorshc have identified four difficulties of coordination:
1. Differences in Orientation towards
Particular Goals: Members of
different departments develop their own views about how best to advance the
interests of the organisation. To sales people, product variety may take
precedence over product quality. Accountants may see cost control as most
important to the organisation's success, while marketing managers may regard
product design as most essential.
2. Differences in Time Orientation:| Some members of an organisation, such as
production managers, will be more concerned with problems that have to be
solved immediately or within a short period of time. Others, like members of a
research and development team, may be preoccupied with problems that may take
years to solve.
3. Differences in Interpersonal
Orientation: In some
organisational activities, such as production, there may be relatively more
formal ways of communicating and decision-making. In other activities such R
and D, the style of communication and decision-making may be informal. Everyone
may be encouraged to have a say and to discuss his ideas with others.
4. Differences in Formality of
Structure: Each unit in the organisation may
have different methods and standards for evaluating progress towards objectives
and for rewarding employees. In a production department, where quantity are
rigidly controlled, the evaluation and reward process might be quite formal.
Employees will be judged quickly on how they
will meet or exceed well-defined performance criteria. In the personnel
department, on the other hand, standards of performance may be much more
loosely defined.
9. Write short notes on any two of the
following: 5+5
(a) Budgetary control
Ans:
Budgetary Control: Budgetary control
is the process of determining various budgeted figures for the enterprise for
the future period and them comparing the budgeted figures with the actual
performance for calculating variances, if any.
According to
Brown and Howard, “Budgetary control is a system of controlling costs which
includes the preparation of budgets, coordinating the departments and
establishing responsibilities, comparing actual performance with the budgeted
and acting upon results to achieve maximum profitability.”
Objectives
of Budgetary Control: The main objectives of budgetary control are as follows:
a) To ensure planning for future by setting up
various budgets, the requirements and expected performance of the enterprise
are anticipated.
b) To co-ordinate the activities of different
departments.
c) To operate various cost centres and
departments with efficiency and economy.
d) Elimination of wastes and increase in
profitability.
e) To anticipate capital expenditure for future.
f) To centralize the control system.
g) Correction of deviations from the established
standards.
h) Fixation of responsibility of various individuals
in the organization.
(b) Recruitment and selection
Ans:
Recruitment: Recruitment is
the process of searching for prospective employees and stimulating them to
apply for jobs in the organization. When more persons apply for job then there
will be a scope for recruiting better persons. The job-seekers too on the other
hand, are in search of organizations offering them employment. Recruitment is a
linkage activity bringing together those with jobs and those seeking jobs.
Definitions: Flippo – “Recruitment is the
process of searching prospective employees and stimulating them to apply for
the jobs in the organization”
McFarland- “ The term recruitment applies to
the process of attracting potential employees of the company.”
Thus recruitment may be considered as a
positive action as it involves attracting the people towards organization. The main purpose is to have a rich inventory
of eligible persons from amongst whom the most suitable candidates can be
selected for employment in the organization.
Selection: Human resource selection is the process of
choosing qualified individuals who are available to fill positions in an
organization. In the ideal personnel situation, selection involves choosing the
best applicant to fill a position. Selection is the process of choosing people
by obtaining and assessing information about the applicants with a view to
matching these with the job requirements. It involves a careful screening and
testing of candidates who have put in their applications for any job in the enterprise.
It is the process of choosing the most suitable persons out of all the
applicants. The purpose of selection is to pick up the right person for every
job.
According to Thomas
Stone, “Selection is the process of
differentiating between applicants in order to identify (and hire) those with a
greater likelihood of success in a job”.
According to Keith
Davis, “Selection is the process by which an
organisation chooses from a list of screened applicants, the person or persons
who best meet the selection criteria for the position available.”
Thus, the selection process is a tool in the
hands of management to differentiate between the qualified and unqualified
applicants by applying various techniques such as interviews, tests etc. The
cost incurred in recruiting and selecting any new employee is expensive. The
cost of selecting people who are inadequate performers or who leave the
organisation before contributing to profits proves a major cost of doing
business.
(c) Delegation and decentralisation
Ans: Decentralisation: It refers to the situation in which a
significant number of job activity and a maximum amount of authority are
delegated to subordinates. It signifies the necessity of dividing the
managerial task to the lowest level of managers, with an intention to grant all
the authority to make the particular division or department autonomous. Each department has the full authority
to decide on all matters concerning the department except those matters which
need to be left to the top management to decide.
According to Koontz and Weihrich,”
Decentralization is the tendency to disperse decision-making authority in an
organized structure”.
According to Newman, Summer & Warren “Decentralization
is simply a matter of dividing up the managerial work and assigning specific duties to
the various executive skills.”
Delegation:- In every organisation managers are assigned
lot of work and manager alone cannot perform all the work. So, he divides the
work among different individuals working under his according to their
qualification and gets the work done from them. After passing the
responsibilities the manager also shares some of his authority with his
subordinates. To make sure that his subordinates perform all works effectively
and efficiently the manager creates accountability and this whole process is
known as delegation of authority.
(d) Management Development Programme
Ans: All those
persons who have authority over others and are responsible for their activities
& for the operations of an enterprise are managers. Any activity designed to improve the performance of
existing managers to provide for a planned growth of managers to meet future
requirements is management development.
According to Flippo “executive development
includes the process by which managers and executives acquire not only skills
and competency in their present job but also capabilities for future managerial
tasks of increasing difficulty and scope.”
In simple words, Executive development or
management development is a systematic process of learning and growth by which
managerial personnel gain and apply knowledge, skills, attitudes and insights
to manage the work in their organization effectively and efficiently.
For managerial development, the following
tools are used:
A) On the job
method: On the job method refers to training
given to personnel inside the company. There are different methods of on the
job training.
1. Job rotation.
2. Planned progression.
3. Coaching and counseling.
4. Under study.
5. Junior board.
B) Off the job
training method: Off the job
training refers to method of training given outside the company. The different
methods adopted here are:
1. Classroom method
2. Simulation
3. Business games
4. Committee
5. Conference
6. Readings
7. In basket training
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