MPA Solved Paper 2020 (Held in 2021), Dibrugarh University B.Com 3rd Sem CBCS Pattern

 Dibrugarh University B. Com 3rd Sem Solved Question Papers
3 SEM TDC MP&A (CBSC) C 307
2020 (Held in April – May, 2021)
COMMERCE (Core)
Paper: C - 307
 (Management Principles and Application MPA Solved Papers)
Full Marks: 80
Pass Marks: 32
Time: 3 hours

The figures in the margin indicate full marks for the questions

1. (a) State whether the following statements are True or False: 1×4=4

(i) Decentralization means delegation of authority to lower level managers.         

Ans: True

(ii) Flat organizational structure promotes innovative abilities of the lower level management. 

Ans: False, middle level management

(iii) Physiological needs included the basic needs for human to survive.   

Ans: True

(iv) Path-goal theory was developed by James MacGregor Burns.              

Ans: False, Robert J. House

(b) Fill in the blanks with appropriate words: 1×4=4

(i) The span of management is also called as the Span of control

(ii) Delegation of authority may be specific or general.

(iii) Staffing promotes optimum utilization of human resources.

(iv) Emotional stability is a quality of a Leadership.

2. Write short notes on any three of the following:          4×3=12

a) Scientific management.

Ans: Scientific Management may be defined as the scientific study and analysis of work, scientific selection and training of employees, standardization and scientific rate setting. It is an art of knowing exactly what a manager wants his workers to do and seeing it that they do it in the best and cheapest way.

According to F.W.Taylor who is regarded as the father of scientific management, “Scientific Management is the art of knowing exactly what you want your men to do and seeing that they do it in the cheapest way”.

Scientific management has the following main objectives:

a)       With the use of standardized tools, methods, equipments, and development of workers increasing the rate of production.

b)      Reducing the cost of production by using the different cost control techniques.

c)       Improvement in the quality of product through quality control and inspections.

d)      To place the right person at the right place.

e)      Providing the wages to the workers according to their efficiency.

Characteristics of Scientific Management

a)       Predetermined objectives: The objective of every job is predetermined and in order to achieve that objective physical and human resources are applied.

b)      Predetermined plans: In order to achieve the predetermined goal of every job, effective plans for the most appropriate use of the available resources are prepared. Planning in this case is goal oriented.

c)       Scientific analysis of plans: The utility, effectiveness and suitability of plans is tested and ascertained before it is put in practical operation.

b) Management Information System (MIS).

Ans: Management Information System (MIS): In order to control the organisation properly the management needs accurate information. They need information about the internal working of the organisation and also about the external environment. Information is collected continuously to identify problems and find out solutions. MIS collects data, processes it and provides it to the managers. MIS may be manual or computerised. With MIS, managers can delegate authority to subordinates without losing control.

Advantages of MIS are:                                                 

a) It provides accurate information to all the managers working at different levels.

b) It helps in planning, controlling and decision-making.

c) It provides cost effective management information.

d) It improves quality of information with which a manager works.

e) It reduces information overload i.e., only relevant information is provided to them.

c) Decentralization.

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.

Centralization and decentralization should not be confused with location of work. An organisation having branches in different places may be centralized. Similarly, an enterprise may be decentralized even though all its offices are located in one building. Here we will discuss the definitions of decentralization.

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.”

ADVANTAGES OF CENTRALIZATION

a)       Specialization management: The higher the specialization of jobs, the greater the need for centralization. Tall hierarchical organizations with functional departments are best managed through centralization.

b)      Complexity management: Specialization of jobs creates complexity. Narrow spans of management also create complexity. Centralization provides advantage to manage complexity. Uniform policies and practices are fostered. Specialists can be used.

DISADVANTAGES OF CENTRALIZATION

a)       Poor environmental adaptation: Organizational environment tends to be dynamic, complex and uncertain. Centralization cannot quickly adapt to the changing environment.

b)      Poor diversification management: Modern organizations tend to be highly diversified. They are also geographically dispersed. Centralization is not suitable to manage diversified and dispersed organizations.

d) Mechanical barriers of communication.

Ans: Mechanical Barriers: Mechanical barriers include inadequate arrangement for transmission of news, facts and figures. Example poor office layout and defective procedure and the use of wrong media led to poor communication.

I. Information overload: Excess of communication is called information overload. Brevity is the soul of communication. The receiver cannot comprehend and absorb beyond his mental capacity. His mind will remain closed for the excess part of the communication. Therefore one should be brief and to the point.

II. Loss of transmission: When messages are transmitted from person to person they are filtered. In other words they are diluted and distorted on the way. In oral communication about 30% of the information is lost in each transmission.

Steps to overcome the barriers of communication in an organization

In order to remove barriers to communication an open door communication policy should be prepared and followed by managers at all levels. The superiors in the organization must create an atmosphere of confidence and trust in the organization so that the credibility gap may be narrowed down. Major efforts in this direction are:

1.       Two-way communication: The organization’s communication policy should provide for a two-way traffic in communication upwards and downwards. It brings two minds closer and improves understanding between the two parties the sender and the receiver. There should be no communication gap.

2.       Strengthening Communication Network: The communication network should be strengthened to make communication effective. For this purpose, the procedure of communication should be simplified, layers in downward communication should be reduced to the minimum possible. Decentralization and delegation of authority should be encouraged to make information communication more efficient.

3. (a) What do you mean by management? Discuss about the evolution of management thoughts.          2+10=12

Ans: Management - 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 to 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.

Evolution of management thoughts

The practice of management is as old as human civilization. The ancient civilizations of Egypt (the great pyramids), Greece (leadership and war tactics of Alexander the great) and Rome displayed the marvelous results of good management practices. The origin of management as a discipline was developed in the late 19th century. Over time, management thinkers have sought ways to organize and classify the voluminous information about management that has been collected and disseminated. These attempts at classification have resulted in the identification of management approaches. The approaches of management are theoretical frameworks for the study of management. Each of the approaches of management are based on somewhat different assumptions about human beings and the organisations for which they work. The different approaches of management are:

a) Early management approaches represented by scientific management (Classical approach or Theories)

b) Modern management approaches represented by behavioral science movement, quantitative approach, systems approach and Contingency approach (Neo-classical approach or theories)

a) THE CLASSICAL APPROACH: The classical approach is the oldest formal approach of management thought. Its roots pre-date the twentieth century. The classical approach of thought generally concerns ways to manage work and organisations more efficiently. Three areas of study that can be grouped under the classical approach are scientific management, administrative management, and bureaucratic management.

(i) Scientific Management: Frederick Winslow Taylor is known as the father of scientific management. Scientific management (also called Taylorism or the Taylor system) is a theory of management that analyzes and synthesizes workflows, with the objective of improving labor productivity. In other words, Traditional rules of thumb are replaced by precise procedures developed after careful study of an individual at work.

(ii) Administrative Management: Administrative management focuses on the management process and principles of management. In contrast to scientific management, which deals largely with jobs and work at the individual level of analysis, administrative management provides a more general theory of management. Henri Fayol is the major contributor to this approach of management thought.

(iii) Bureaucratic Management: Bureaucratic management focuses on the ideal form of organisation. Max Weber was the major contributor to bureaucratic management. Based on observation, Weber concluded that many early organisations were inefficiently managed, with decisions based on personal relationships and loyalty. He proposed that a form of organisation, called a bureaucracy, characterized by division of labor, hierarchy, formalized rules, impersonality, and the selection and promotion of employees based on ability, would lead to more efficient management. Weber also contended that managers' authority in an organisation should be based not on tradition or charisma but on the position held by managers in the organisational hierarchy.

b) Neo-classical approach: It can be studied under the following headings:

a) THE BEHAVIORAL Or SITUATIONAL APPROACH: The behavioral approach of management thought developed, in part, because of perceived weaknesses in the assumptions of the classical approach. The classical approach emphasized efficiency, process, and principles. Some felt that this emphasis disregarded important aspects of organisational life, particularly as it related to human behavior. Thus, the behavioral approach focused on trying to understand the factors that affect human behavior at work.

(i) Human Relations: The Hawthorne Experiments began in 1924 and continued through the early 1930s. A variety of researchers participated in the studies, including Elton Mayo. One of the major conclusions of the Hawthorne studies was that workers' attitudes are associated with productivity. Another was that the workplace is a social system and informal group influence could exert a powerful effect on individual behavior. A third was that the style of supervision is an important factor in increasing workers' job satisfaction.

(ii) Behavioral Science: Behavioral science and the study of organisational behavior emerged in the 1950s and 1960s. The behavioral science approach was a natural progression of the human relations movement. It focused on applying conceptual and analytical tools to the problem of understanding and predicting behavior in the workplace. The behavioral science approach has contributed to the study of management through its focus on personality, attitudes, values, motivation, group behavior, leadership, communication, and conflict, among other issues.

b) THE QUANTITATIVE APPROACH: The quantitative approach focuses on improving decision making via the application of quantitative techniques. Its roots can be traced back to scientific management.

(i) Management Science: Management science (also called operations research) uses mathematical and statistical approaches to solve management problems. It developed during World War II as strategists tried to apply scientific knowledge and methods to the complex problems of war. Industry began to apply management science after the war. The advent of the computer made many management science tools and concepts more practical for industry

 (ii) Production And Operations Management: This approach focuses on the operation and control of the production process that transforms resources into finished goods and services. It has its roots in scientific management but became an identifiable area of management study after World War II. It uses many of the tools of management science. Operations management emphasizes productivity and quality of both manufacturing and service organisations. W. Edwards Deming exerted a tremendous influence in shaping modern ideas about improving productivity and quality. Major areas of study within operations management include capacity planning, facilities location, facilities layout, materials requirement planning, scheduling, purchasing and inventory control, quality control, computer integrated manufacturing, just-in-time inventory systems, and flexible manufacturing systems.

c) SYSTEMS APPROACH: The systems approach focuses on understanding the organisation as an open system that transforms inputs into outputs. The systems approach began to have a strong impact on management thought in the 1960s as a way of thinking about managing techniques that would allow managers to relate different specialties and parts of the company to one another, as well as to external environmental factors. The systems approach focuses on the organisation as a whole, its interaction with the environment, and its need to achieve equilibrium.

d) CONTINGENCY APPROACH: The contingency approach focuses on applying management principles and processes as dictated by the unique characteristics of each situation. It emphasizes that there is no one best way to manage and that it depends on various situational factors, such as the external environment, technology, organisational characteristics, characteristics of the manager, and characteristics of the subordinates. Contingency theorists often implicitly or explicitly criticize the classical approach for its emphasis on the universality of management principles; however, most classical writers recognized the need to consider aspects of the situation when applying management principles.

Or

(b) Define Scientific Management. Discuss about the Taylor’s Scientific Management.   2+10=12

Ans: Scientific Management may be defined as the scientific study and analysis of work, scientific selection and training of employees, standardization and scientific rate setting. It is an art of knowing exactly what a manager wants his workers to do and seeing it that they do it in the best and cheapest way.

According to F.W. Taylor who is regarded as the father of scientific management, “Scientific Management is the art of knowing exactly what you want your men to do and seeing that they do it in the cheapest way”.

CONTRIBUTION OF F.W. TAYLOR

F.W. Taylor is one of the founders (the other two are Max Weber and Henry Fayol) of classical thought/classical theory of management. He suggested scientific approach to management also called scientific management theory. Frederick Winslow Taylor well-known as the founder of scientific management was the first to recognize and emphasis the need for adopting a scientific approach to the task of managing an enterprise. He tried to diagnose the causes of low efficiency in industry and came to the conclusion that much of waste and inefficiency is due to the lack of order and system in the methods of management. He found that the management was usually ignorant of the amount of work that could be done by a worker in a day as also the best method of doing the job. As a result, it remained largely at the mercy of the workers who deliberately shirked work. He therefore, suggested that those responsible for management should adopt a scientific approach in their work, and make use of "scientific method" for achieving higher efficiency. The scientific method consists essentially of:

a)       Observation

b)      Measurement

c)       Experimentation and

d)      Inference.

He advocated a thorough planning of the job by the management and emphasized the necessity of perfect understanding and co-operation between the management and the workers both for the enlargement of profits and the use of scientific investigation and knowledge in industrial work. He summed up his approach in these words:

a)       Science, not rule of thumb

b)      Harmony, not discord

c)       Co-operation, not individualism

d)      Maximum output, in place of restricted output

e)      The development of each man to his greatest efficiency and prosperity.

Concept of Scientific Management

Scientific Management may be defined as the scientific study and analysis of work, scientific selection and training of employees, standardization and scientific rate setting. It is an art of knowing exactly what a manager wants his workers to do and seeing it that they do it in the best and cheapest way.

According to F.W. Taylor who is regarded as the father of scientific management, “Scientific Management is the art of knowing exactly what you want your men to do and seeing that they do it in the cheapest way”.

Scientific management has the following main objectives:

f)        With the use of standardized tools, methods, equipments, and development of workers increasing the rate of production.

g)       Reducing the cost of production by using the different cost control techniques.

h)      Improvement in the quality of product through quality control and inspections.

i)        To place the right person at the right place.

j)        Providing the wages to the workers according to their efficiency.

Characteristics of Scientific Management

d)      Predetermined objectives: The objective of every job is predetermined and in order to achieve that objective physical and human resources are applied.

e)      Predetermined plans: In order to achieve the predetermined goal of every job, effective plans for the most appropriate use of the available resources are prepared. Planning in this case is goal oriented.

f)        Scientific analysis of plans: The utility, effectiveness and suitability of plans is tested and ascertained before it is put in practical operation.

g)       Set of rules: In order to implement the plans a set of rules are made.

h)      Work studies: Standardization of time, motion, fatigue and work is done after careful time, motion, work & fatigue studies, so that maximum output could be achieved at minimum sacrifice.

Advantages and criticism of scientific management to the workers

Advantages to the workers: Improved working conditions, Higher standard of living, Free training, Interesting job, Incentive wage system

Criticism of scientific management:  Rigid Control, Monotonous work, Lack of initiative, Exploitation, Lack of employment opportunities, Weak Unions.

Elements of Scientific Management: The techniques which Taylor regarded as its essential elements or features may be classified as under:

1. Scientific Task and Rate-Setting (work study): Work study may be defined as the systematic, objective and critical examination of all the factors governing the operational efficiency of any specified activity in order to effect improvement. Work study includes.

(a) Methods Study: The management should try to ensure that the plant is laid out in the best manner and is equipped with the best tools and machinery. The possibilities of eliminating or combining certain operations may be studied.

(b) Motion Study: It is a study of the movement, of an operator (or even of a machine) in performing an operation with the purpose of eliminating useless motions.

 (c) Time Study (work measurement): The basic purpose of time study is to determine the proper time for performing the operation. Such study may be conducted after the motion study. Both time study and motion study help in determining the best method of doing a job and the standard time allowed for it.

(d) Fatigue Study: If, a standard task is set without providing for measures to eliminate fatigue, it may either be beyond the workers or the workers may over strain themselves to attain it. It is necessary, therefore, to regulate the working hours and provide for rest pauses at scientifically determined intervals.

(e) Rate-setting: Taylor recommended the differential piece wage system, under which workers performing the standard task within prescribed time are paid a much higher rate per unit than inefficient workers who are not able to come up to the standard set.

2. Planning the Task: Having set the task which an average worker must strive to perform to get wages at the higher piece-rate, necessary steps have to be taken to plan the production thoroughly so that there are no bottlenecks and the work goes on systematically.

3. Selection and Training: Scientific Management requires a radical change in the methods and procedures of selecting workers. It is therefore necessary to entrust the task of selection to a central personnel department. The procedure of selection will also have to be systematised. Proper attention has also to be devoted to the training of the workers in the correct methods of work.

4. Standardization: Standardization may be introduced in respect of the following.

(a) Tools and equipment: By standardization is meant the process of bringing about uniformity. The management must select and store standard tools and implements which will be nearly the best or the best of their kind.

(b) Speed: There is usually an optimum speed for every machine. If it is exceeded, it is likely to result in damage to machinery.

(c) Conditions of Work: To attain standard performance, the maintenance of standard conditions of ventilation, heating, cooling, humidity, floor space, safety etc., is very essential.

(d) Materials: The efficiency of a worker depends on the quality of materials and the method of handling materials.

5. Specialization: Scientific management will not be complete without the introduction of specialization. Under this plan, the two functions of 'planning' and 'doing' are separated in the organisation of the plant. The `functional foremen' are specialists who join their heads to give thought to the planning of the performance of operations in the workshop. Taylor suggested eight functional foremen under his scheme of functional foremanship.

(a) The Route Clerk: To lay down the sequence of operations and instruct the workers concerned about it.

(b) The Instruction Card Clerk: To prepare detailed instructions regarding different aspects of work.

(c) The Time and Cost Clerk: To send all information relating to their pay to the workers and to secure proper returns of work from them.

(d) The Shop Disciplinarian: To deal with cases of breach of discipline and absenteeism.

(e) The Gang Boss: To assemble and set up tools and machines and to teach the workers to make all their personal motions in the quickest and best way.

(f) The Speed Boss: To ensure that machines are run at their best speeds and proper tools are used by the workers.

(g) The Repair Boss: To ensure that each worker keeps his machine in good order and maintains cleanliness around him and his machines.

(h) The Inspector: To show to the worker how to do the work.

6. Mental Revolution: At present, industry is divided into two groups – management and labour. The major problem between these two groups is the division of surplus. The management wants the maximum possible share of the surplus as profit; the workers want, as large share in the form of wages. Taylor has in mind the enormous gain that arises from higher productivity. Such gains can be shared both by the management and workers in the form of increased profits and increased wages.

4. (a) “Planning is an intellectual process, the conscious determination of course of action, the basis of decisions on purpose, facts and considered estimates.” Discuss.         12

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.

In the words of: 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.

Planning Process

Planning process involves the setting up of business objectives and allocation of resources for achieving them. Planning determines the future course of action for utilizing various resources in a best possible way. It is a combination of information handling and decision making systems based on information inputs, outputs and a feedback loop.

Steps in the process of Planning.

a)      Setting organisational objectives: The first and foremost step in the planning process is setting organisational objectives or goals, which specify what the organisation wants to achieve. For example, an increase in sales by 20% could be the objective of the organisation. Objectives may also be set for each individual department. They give direction to all departments.

b)      Developing planning premises: Planning is concerned with the future, which is uncertain. Therefore, the manager is required to make certain assumptions about the future. These assumptions are called premises. Assumptions are made in the form of forecasts about the demand for a particular product, government policy, interest rates, tax rates, etc. Therefore, accurate forecasts become essential for successful plans.

c)       Identifying alternative courses of action: Once objectives are set and assumptions are made, then the next step is to identify all possible alternative courses of action. For example, in order to achieve the organisational objectives of increasing profit, the alternatives may be

a.       increase the sales of an existing product, or        

b.       produces and sells a completely new product.

d)      Evaluating alternative courses: The positive and negative aspects of each proposal need to be evaluated in the light of the objective to be achieved, its feasibility and consequences. For example, the risk-return trade-off is very common. The riskier the investment, the higher is the possibility of returns. To evaluate such proposals, detailed calculations of earnings, earnings per share, interest, taxes, dividends are made.

e)      Selecting the best possible alternative: This is the real point of decision making. The best/ideal plan has to be adopted, which must be the most feasible, profitable and with least negative consequences. The manager must apply permutations and combinations and select the best possible course of action. Sometimes, a combination of plans. may be selected instead of one best plan.

f)        Implementing the plan: Once the plans are developed, they are put into action. For this, the managers communicate the plans to all employees very clearly and allocate them resources (money, machinery, etc.

g)      Follow-up action: The managers monitor the plan carefully to ensure that the premises are holding true in the present condition or not. If not, adjustments are made in the plan.

Or

(b) What do you mean by decision making? Discuss about the various steps of decision making process.        2+10=12

Ans: Decision Making - Introduction

Decision-making is an essential aspect of modern management. It is a primary function of management. A manager's major job is sound/rational decision-making. He takes hundreds of decisions consciously and subconsciously. Decision-making is the key part of manager's activities. Decisions are important as they determine both managerial and organisational actions. A decision may be defined as "a course of action which is consciously chosen from among a set of alternatives to achieve a desired result." It represents a well-balanced judgment and a commitment to action.

It is rightly said that the first important function of management is to take decisions on problems and situations. Decision-making pervades all managerial actions. It is a continuous process. Decision-making is an indispensable component of the management process itself.

According to Trewatha & Newport, "Decision-making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem".

Steps Involved in Decision Making Process

Decision-making involves a number of steps which need to be taken in a logical manner. This is treated as a rational or scientific 'decision-making process' which is lengthy and time consuming. Such lengthy process needs to be followed in order to take rational/scientific/result oriented decisions. Drucker recommended the scientific method of decision-making which, according to him, involves the following six steps:

1.       Identifying the Problem: Identification of the real problem before a business enterprise is the first step in the process of decision-making. It is rightly said that a problem well-defined is a problem half-solved. Information relevant to the problem should be gathered so that critical analysis of the problem is possible. This is how the problem can be diagnosed. Clear distinction should be made between the problem and the symptoms which may cloud the real issue.

2.       Analyzing the Problem: After defining the problem, the next step in the decision-making process is to analyze the problem in depth. This is necessary to classify the problem in order to know who must take the decision and who must be informed about the decision taken. Here, the following four factors should be kept in mind:

1.       Futurity of the decision,

2.       The scope of its impact,

3.       Number of qualitative considerations involved, and

4.       Uniqueness of the decision.

3.       Collecting Relevant Data: After defining the problem and analyzing its nature, the next step is to obtain the relevant information/ data about it. There is information flood in the business world due to new developments in the field of information technology. All available information should be utilised fully for analysis of the problem.

4.       Developing Alternative Solutions: After the problem has been defined, diagnosed on the basis of relevant information, the manager has to determine available alternative courses of action that could be used to solve the problem at hand. Only realistic alternatives should be considered. It is equally important to take into account time and cost constraints and psychological barriers that will restrict that number of alternatives.

5.       Selecting the Best Solution: After preparing alternative solutions, the next step in the decision-making process is to select an alternative that seems to be most rational for solving the problem. The alternative thus selected must be communicated to those who are likely to be affected by it. Acceptance of the decision by group members is always desirable and useful for its effective implementation.

6.       Converting Decision into Action: After the selection of the best decision, the next step is to convert the selected decision into an effective action. Without such action, the decision will remain merely a declaration of good intentions. Here, the manager has to convert 'his decision into 'their decision' through his leadership.

7.       Ensuring Feedback: Feedback is the last step in the decision-making process. It is like checking the effectiveness of follow-up measures. Feedback is possible in the form of organised information, reports and personal observations. Feedback is necessary to decide whether the decision already taken should be continued or be modified in the light of changed conditions.

Every step in the decision-making process is important and needs proper consideration by managers. This facilitates accurate decision-making.

5. (a) What is delegation of authority? How delegation of authority is responsible for organizing the activity of working in organization?               2+10=12

Ans: Answer available in our mobile application – Members only

Or

(b) What do you mean by network organization structure? Discuss its benefits and limitations.  2+10=12

Ans: Answer available in our mobile application – Members only

6. (a) What is motivation? Explain the five levels of Maslow’s hierarchy of needs. 2+10=12

Ans: Meaning of Motivation

The word motivation is derived from ‘motive', which means an active form of a desire, craving or need that must be satisfied. Motivation is the key to organisational effectiveness. The manager in general has to get the work done through others. These 'others' are human resources who need to be motivated to attain organisational objectives.

According to George R. Terry, "Motivation is the desire within an individual that stimulates him or her to action."

According to Berelson and Steiner “A motive is an inner state that energizes activates, or moves and directs or channels behavior goals".

Maslow's Hierarchy of Needs

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.

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.

Or

(b) Define about ‘leader and leadership’. Discuss about the Blake and Mouton’s managerial grid theory with diagram. 4+8=12

Ans: Answer available in our mobile application – Members only

7. (a) What is controlling in management? Discuss about the process of controlling. 4+8=12

Ans: Controlling in Management

Control is one of the managerial functions. These functions start with planning and end at controlling. The other functions like organising, staffing, directing act as the connecting like between planning and controlling. Planning will be successful only if the progress planning and controlled, Planning involves setting up of goals and objectives while controlling seeks to ensure.

In the words of Koontz and O'Donnel, “The measurement and correction of the performance of activities of subordinates in order to make sure that enterprise objectives and plan devised to attain them are being accomplished." The accomplishment of organisational goals is the main aim of every management. The performance of subordinates should be constantly watched to ensure proper implementation of plans. Co-ordination is the channel through which goals can be achieved and necessary.

According to Henry Fayol, “In an undertaking, control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and principles established. It has to point out weakness and errors in order to rectify them and prevent recurrence”.

Thus, controlling implies determining and stating specifically what is to be accomplished, then checking performance against such standards prescribed with a view to supplying the corrective action required to achieve the planned objectives. The end objective of controlling is, therefore, to ensure that the people’s   effort   in   the   organisation   is   continuously   directed   towards   the attainment of the predetermined objectives.

Steps in Controlling Process

In order to perform his control functions, a manager follows three basic steps. First of all, he establishes the standards of performance to ensure that performance is in accordance with me plan. After this, the manager will appraise the performance and compare it with predetermined standards. This step will lead the manager to know whether the performance has come up to the expected standard or if there is any deviation. If the standards are not being met, the manager will take corrective actions, which is the final step in controlling.

1)      Establishing standards: A standard acts as a reference line or basic of comparison of actual performance. Standards should be set precisely and preferably in quantitative terms. It should be noted that setting standards is also closely linked with and is an integral part of the planning process. Different standards of performance are set up for various operations at the planning stage, which serve as the basis of any control system. Establishment of standards in terms of quantity, quality or time is necessary for effective control. Standards should be accurate, precise, acceptable and workable. Standards should be flexible, i.e., capable of being changed when the circumstances require so.

2)      Measurement of performance: This step involves measuring of actual performance of various individuals, groups or units and then comparing it with the standards, which have already been set up at the planning stage. The quantitative measurement should be done in cases where standards have been set in quantitative terms. In other cases, performance should be measured in terms of quantitative factors as in case of performance of industrial relations manager. Comparison of performance with standards is comparatively easier when the standards are expressed in quantitative terms.

3)      Comparison: This is the core of the control process. This phase of control process involves checking to determine whether the actual performance meets the predetermined or planned performance. Manager must constantly seek to answer, “How well are we doing?” When a production supervisor checks the actual output or performance of his department with the production schedule, he is performing comparison aspect of control. When-an executive calculates the performance of his subordinates once in six months or   annuity, he is performing comparison aspect of control. Checking return on in investment is a comparison phase of control.

4)      Taking corrective action: The final step in the control process is taking corrective actions so that deviations may not occur again and the objectives of the organisation are achieved. This will involve taking certain decision by the management like re-planning or redrawing of goals or standards, assignment of clarification of duties. It may also necessitate reforming the process of selection and the training of workers. Thus, control function may require change in all other managerial functions. If the standards are found to be defective, they will be modified in the light of the observations.

Or

(b) “Control is the process of bringing about conformity of performance with planned action.” Discuss.  12

Ans: Control is one of the managerial functions. These functions start with planning and end at controlling. The other functions like organising, staffing, directing act as the connecting like between planning and controlling. Planning will be successful only if the progress planning and controlled, Planning involves setting up of goals and objectives while controlling seeks to ensure.

In the words of Koontz and O'Donnel, “The measurement and correction of the performance of activities of subordinates in order to make sure that enterprise objectives and plan devised to attain them are being accomplished." The accomplishment of organisational goals is the main aim of every management. The performance of subordinates should be constantly watched to ensure proper implementation of plans. Co-ordination is the channel through which goals can be achieved and necessary.

According to Henry Fayol, “In an undertaking, control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and principles established. It has to point out weakness and errors in order to rectify them and prevent recurrence”.

Thus, controlling implies determining and stating specifically what is to be accomplished, then checking performance against such standards prescribed with a view to supplying the corrective action required to achieve the planned objectives. The end objective of controlling is, therefore, to ensure that the people’s   effort   in   the   organisation   is   continuously   directed   towards   the attainment of the predetermined objectives.

Steps in Controlling Process

In order to perform his control functions, a manager follows three basic steps. First of all, he establishes the standards of performance to ensure that performance is in accordance with me plan. After this, the manager will appraise the performance and compare it with predetermined standards. This step will lead the manager to know whether the performance has come up to the expected standard or if there is any deviation. If the standards are not being met, the manager will take corrective actions, which is the final step in controlling.

5)      Establishing standards: A standard acts as a reference line or basic of comparison of actual performance. Standards should be set precisely and preferably in quantitative terms. It should be noted that setting standards is also closely linked with and is an integral part of the planning process. Different standards of performance are set up for various operations at the planning stage, which serve as the basis of any control system. Establishment of standards in terms of quantity, quality or time is necessary for effective control. Standards should be accurate, precise, acceptable and workable. Standards should be flexible, i.e., capable of being changed when the circumstances require so.

6)      Measurement of performance: This step involves measuring of actual performance of various individuals, groups or units and then comparing it with the standards, which have already been set up at the planning stage. The quantitative measurement should be done in cases where standards have been set in quantitative terms. In other cases, performance should be measured in terms of quantitative factors as in case of performance of industrial relations manager. Comparison of performance with standards is comparatively easier when the standards are expressed in quantitative terms.

7)      Comparison: This is the core of the control process. This phase of control process involves checking to determine whether the actual performance meets the predetermined or planned performance. Manager must constantly seek to answer, “How well are we doing?” When a production supervisor checks the actual output or performance of his department with the production schedule, he is performing comparison aspect of control. When-an executive calculates the performance of his subordinates once in six months or   annuity, he is performing comparison aspect of control. Checking return on in investment is a comparison phase of control.

8)      Taking corrective action: The final step in the control process is taking corrective actions so that deviations may not occur again and the objectives of the organisation are achieved. This will involve taking certain decision by the management like re-planning or redrawing of goals or standards, assignment of clarification of duties. It may also necessitate reforming the process of selection and the training of workers. Thus, control function may require change in all other managerial functions. If the standards are found to be defective, they will be modified in the light of the observations.

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