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Questions and Answers
What is the primary objective of a private business enterprise?
What is the primary objective of a private business enterprise?
What is the second step in the managerial decision-making process?
What is the second step in the managerial decision-making process?
Why is defining the problem crucial in the decision-making process?
Why is defining the problem crucial in the decision-making process?
What is a common objective for public enterprises compared to private enterprises?
What is a common objective for public enterprises compared to private enterprises?
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What step follows after defining the problem in the decision-making process?
What step follows after defining the problem in the decision-making process?
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In identifying possible alternative solutions, which is necessary for evaluating those alternatives?
In identifying possible alternative solutions, which is necessary for evaluating those alternatives?
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What could be a potential reason for declining profits in a business?
What could be a potential reason for declining profits in a business?
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What must be evaluated before making a decision regarding investment expenditures?
What must be evaluated before making a decision regarding investment expenditures?
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What is the main objective of management?
What is the main objective of management?
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Which of the following best describes the balance needed within an organization?
Which of the following best describes the balance needed within an organization?
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How can increasing the efficiency of factors of production be achieved?
How can increasing the efficiency of factors of production be achieved?
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What does management aim to achieve for both the employer and employees?
What does management aim to achieve for both the employer and employees?
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In what way does management contribute to human betterment and social justice?
In what way does management contribute to human betterment and social justice?
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What is one key aspect of management's importance in organizations?
What is one key aspect of management's importance in organizations?
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What can result from the poor handling of machinery according to the principles of management?
What can result from the poor handling of machinery according to the principles of management?
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What is the effect of clearly defined objectives in an organization?
What is the effect of clearly defined objectives in an organization?
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What is the primary function of management?
What is the primary function of management?
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What does effective planning require?
What does effective planning require?
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According to George & Jerry, which are the four fundamental functions of management?
According to George & Jerry, which are the four fundamental functions of management?
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Which of the following is NOT a component of the planning process?
Which of the following is NOT a component of the planning process?
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Which definition aligns with effective planning according to Alford and Beatt?
Which definition aligns with effective planning according to Alford and Beatt?
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How does planning influence personal life decisions?
How does planning influence personal life decisions?
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What is essential for successful activity planning?
What is essential for successful activity planning?
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Which of the following statements reflects a misconception about planning?
Which of the following statements reflects a misconception about planning?
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What is one primary advantage of planning in an organization?
What is one primary advantage of planning in an organization?
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How does planning assist in minimizing uncertainties?
How does planning assist in minimizing uncertainties?
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In what way does planning improve employee morale?
In what way does planning improve employee morale?
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Which of the following is NOT a benefit of effective planning?
Which of the following is NOT a benefit of effective planning?
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How does planning facilitate coordination within an organization?
How does planning facilitate coordination within an organization?
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What does planning enable managers to do regarding the courses of action?
What does planning enable managers to do regarding the courses of action?
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Which aspect of planning aids in achieving economies within an organization?
Which aspect of planning aids in achieving economies within an organization?
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Which of the following is an outcome of planning that affects employee productivity?
Which of the following is an outcome of planning that affects employee productivity?
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What is the primary goal of management in converting disorganized resources?
What is the primary goal of management in converting disorganized resources?
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How does management contribute to the optimum utilization of resources?
How does management contribute to the optimum utilization of resources?
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What is a key benefit of the organization structure established by management?
What is a key benefit of the organization structure established by management?
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In what way does management help reduce costs?
In what way does management help reduce costs?
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What is the role of management in adapting to a changing environment?
What is the role of management in adapting to a changing environment?
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How does efficient management promote social prosperity?
How does efficient management promote social prosperity?
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What must management establish to eliminate overlapping efforts within an organization?
What must management establish to eliminate overlapping efforts within an organization?
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What is an outcome of maximizing resource utilization in management?
What is an outcome of maximizing resource utilization in management?
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What is the significance of developing alternative courses of action in planning?
What is the significance of developing alternative courses of action in planning?
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Why is evaluating alternatives crucial in the planning process?
Why is evaluating alternatives crucial in the planning process?
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What does selecting a course of action entail in the planning process?
What does selecting a course of action entail in the planning process?
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What is the role of derivative plans in the planning process?
What is the role of derivative plans in the planning process?
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When are timing and sequence of activities determined in the planning process?
When are timing and sequence of activities determined in the planning process?
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Which of the following statements is true regarding alternative courses of action?
Which of the following statements is true regarding alternative courses of action?
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What does the evaluation of alternatives consider in the planning process?
What does the evaluation of alternatives consider in the planning process?
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Which step in the planning process follows the evaluation of alternatives?
Which step in the planning process follows the evaluation of alternatives?
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Study Notes
Introduction to Management
- Management is the administration of an organization (business, not-for-profit, or government).
- Activities include setting strategy and coordinating employee/volunteer efforts to achieve objectives using available resources (financial, natural, technological, and human).
- Management is also an academic discipline studying social organization and leadership.
Definitions of Management
- Harold Koontz: Management is the art of getting things done through and with people in formally organized groups.
- Henri Fayol: To manage is to forecast and plan, organize, command, coordinate, and control.
- Peter Drucker: Management is a multi-purpose organ that manages business, manages managers, and manages workers/work.
- Mary Parker Follet: Management is the art of getting things done through people.
- William F. Glueck: Management is the effective utilization of human and material resources to achieve the enterprise objective.
Nature of Management
- Universal process: Management exists wherever human activity occurs.
- Factor of production: Efficient managers are crucial for utilizing labor and capital effectively.
- Goal-oriented: Management's primary objective is achieving organizational goals.
- Supreme in thought and action: Managers define achievable objectives and orchestrate action across all levels.
- Group activity: Coordinating human and physical resources is essential for maximum productivity.
- Dynamic function: Management must adapt to changes in the business environment (economic, social, political, technological, and human).
- Social science: Managers interact with individuals exhibiting various sensitivities, understandings and dynamics.
- Important organ of society: Management is crucial for societal progress through charitable activities, sports, and donations to NGOs.
System of Authority and Scope of Management
- System of authority: Clear lines of command and delegation are necessary for effective decision-making.
- Profession: Managers must possess relevant knowledge, training, and adhere to professional conduct and social/human obligations.
- Process: Management is a series of actions leading towards a defined end.
- Subject matter: Planning, organizing, directing, coordinating, and controlling are central management activities.
- Functional areas: Management spans various functional areas including financial, personnel, purchasing, production, and maintenance.
Other Concepts of Management
- Management as an interdisciplinary approach: Requires knowledge of commerce, economics, sociology, psychology, and mathematics for effective implementation.
- Universal application: Management principles can be applied across various organizational types.
Salient Features of Management
- Continuous and never-ending process: Management is an ongoing activity.
- Art of getting work done from people: It involves coordinating people towards achieving goals.
- Result-oriented: Management focuses on achieving specific outcomes.
- Multidisciplinary in nature: Management incorporates knowledge from several disciplines.
Important Characteristics of Management
- Goal-oriented process: Management focuses on achieving pre-defined goals.
- All-pervasive: The application of management principles is applicable across organizations.
Management is Multidimensional
- Management of work: Achieving organizational goals aligned with the company's nature (education, healthcare, production etc.)
- Management of people: Includes caring for individual and group needs of employees.
- Management of operations: Includes actions like production, sales, purchase, finance, R&D, and more.
Management is Continuous process
- Continuous process: Management activities are repeated continuously.
- Group activity: Management involves a team of people.
Management is an intangible force
- Intangible force: Management is an influence that's felt rather than seen.
- Quality of management: Quality of management is reflected in the accomplishment (results) of the organization.
Management as a Composite process
- Inter-dependent functions: Management functions are not standalone, but interconnected.
Balancing Effectiveness and Efficiency
- Effective: Completing projects and achieving goals on time.
- Efficient: Utilizing resources (materials, time, money etc.) optimally.
- Balance is key: Organizations should seek to balance both efficiency and effectiveness to achieve objectives and utilize resources effectively.
Objectives of Management
- Maximum results with minimum efforts utilizing resources efficiently.
- Increasing efficiency of factors of production lowering costs and increasing output.
- Maximum prosperity for employers and employees through effective organization, fair compensation, and profit distribution.
- Human betterment and social justice contributing to a better society through ethical practices, improved living standards, and job creation
Levels of Management
- Top (Administrative): High level decision-making and policies. Includes board of directors.
- Middle: Execute plans made by top management. Includes departmental managers.
- Lower(Supervisory/Operative): Implementation of plans and instructions; guides day-to-day operations. Includes supervisors or section officers.
Role and Functions of a Manager
- Leader: Set direction and motivation.
- Project manager: Convert goals into actionable plans.
- Coach: Develop and support employee capabilities and growth.
- Resource planner: Hire, manage, and evaluate employees.
Planning
- Defining and outlining activities in advance.
- Setting goals, policies, procedures and programs.
- Anticipating future circumstances.
- Essential in achieving organizational goals.
- A continuous process.
- A critical managerial function.
Planning Characteristics
- Intellectual process: Planning requires thought and analysis.
- Purposeful: Its purpose is meeting objectives (achieving defined goals).
- Contributes to objectives: Planning leads to organizational objectives.
- Primary function: Planning precedes execution.
- A continuous process: Planning is a never ending cycle .
- Reduction of Uncertainty: Planning helps predict and respond to future challenges and uncertainties.
- Optimization of Resources: Planning identifies, allocates, and manages available resources; ensuring effectiveness.
- Enhanced Organizational Effectiveness: Planning improves efficiency to achieve organizational objectives.
- Reduction of Performance Costs: Planning contributes to better utilization of resources, decreasing waste and improving efficiency.
- Concentration on Objectives: Aligning all elements to focus on organization goals.
Limitations of Planning
- Rigidity: Planning can sometimes be inflexible as changes are more difficult in a formal planned approach.
- Time-consuming: Developing plans can be a lengthy process.
- Uncertainty in Future: The future is uncertain, so planning may be incomplete, inaccurate or fail to account for possible changes or unexpected circumstances.
- Misdirection: Individual motivation could be disrupted if plans become self-serving.
- Internal Limitations: Limited skills and resources of decision-makers could be barriers.
Decision Making Techniques
- Marginal Analysis: Allocating resources to maximize profit and minimize costs.
- SWOT analysis: Strengths, Weaknesses, Opportunities, and Threats.
- Decision Matrix: Evaluating choices based on importance.
- Pareto Analysis: Identify factors with the biggest impact on results.
Decision Making Process
- Establish Objectives: Define goals of the business.
- Define the Problem: Identify the issue or challenge.
- Identify Possible Solutions: Brainstorm potential solutions.
- Evaluate Alternatives: Assess each solution's pros and cons.
- Select Best Alternative: Choose the most suitable solution.
- Implementation: Put the selected solution into action.
- Monitoring and Feedback: Track outcomes and make adjustments as needed.
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