Breaking News

Friday, September 25, 2020

IGNOU Solved Question Papers: ECO - 03 (December' 2012) | IGNOU B.Com Solved Question Paper

 

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

9

 

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

No comments:

Post a comment

Kindly give your valuable feedback to improve this website.

Note: only a member of this blog may post a comment.

Popular Posts for the Day