Questions and Answers
Which of the following best describes management according to Harold Koontz and Cyril O’Donnell?
What is an organization?
A place where people come together, organize, and coordinate activity to achieve a specific goal.
Management is solely the responsibility of the owner of a business.
False
What is the primary objective of any enterprise?
Signup and view all the answers
Which type of business organization has unlimited liability?
Signup and view all the answers
What are the three components of a business?
Signup and view all the answers
Which function is responsible for the distribution and exchange of finished products?
Signup and view all the answers
What characterizes primary industries?
Signup and view all the answers
What defines a small business in the US?
Signup and view all the answers
Which sector provides services to other manufacturing industries and to society?
Signup and view all the answers
What are the primary financial products offered in the financial services sector?
Signup and view all the answers
Which of the following is considered an intellectual services providing industry?
Signup and view all the answers
Education services are considered noble services and are operated for profit.
Signup and view all the answers
The ________ Industry includes manufacturing and construction.
Signup and view all the answers
What does the principle of 'Unity of Command' refer to?
Signup and view all the answers
Which principle of management emphasizes that authority and responsibility go hand in hand?
Signup and view all the answers
List two objectives of management.
Signup and view all the answers
Stability and continuity in business assure employees for ________ commitment.
Signup and view all the answers
What is an important factor to consider while establishing a business organization regarding government?
Signup and view all the answers
What does decentralization of tasks refer to?
Signup and view all the answers
Who introduced the concept of Management by Objectives (MBO)?
Signup and view all the answers
What is the Kaizen concept associated with?
Signup and view all the answers
Which of the following techniques is focused on quality improvement?
Signup and view all the answers
What is Six Sigma aimed at improving?
Signup and view all the answers
Match the following levels of management with their descriptions:
Signup and view all the answers
Top level managers are involved in decision making processes.
Signup and view all the answers
What is the definition of a profession according to Webster's Dictionary?
Signup and view all the answers
Which of the following is NOT one of the characteristics of a profession?
Signup and view all the answers
What is the Maslow's Need Hierarchy Theory?
Signup and view all the answers
Define 'Social Responsibility' in the context of a profession.
Signup and view all the answers
Study Notes
Basics of Management
- Management involves a process to coordinate activities for achieving specific goals.
- Organizations can be either profit-making or non-profit, all requiring effective management.
- Globalization increases competition, necessitating quick adjustments in business operations.
- Management integrates human and physical resources to maximize productivity.
Definitions of Management
- Harold Koontz and Cyril O’Donnell define management as creating an environment for cooperative goal attainment.
- William Spriegel describes management as directing and controlling activities to meet business objectives.
- George R. Terry outlines management as planning, organizing, actuating, and controlling resources toward objectives.
- Dalton Macfarland emphasizes coordinated efforts in the creation and operation of organizations.
Business Organization and Management
- Businesses are organized entities where groups produce goods and services for customers.
- Types of business organizations:
- Sole Proprietorship: Owned by one person with unlimited liability.
- Partnership: Owned by two or more people, typically has unlimited liability.
- Corporation: A separate legal entity that limits the liability of its owners (shareholders).
- Cooperative: Member-owned organization sharing decision-making authority.
- Organizations need management for goal accomplishment and efficient operation.
Nature of Business
- Production Activities: Involves creating goods (e.g., cars, textiles) and providing services (e.g., banking, education).
- Distribution: Business functions include the movement and exchange of finished products.
- Social Responsibility: Businesses also cater to community welfare through various support services.
Functions of Business Organizations
- Key functions include:
- Production: Turning raw materials into finished products through organized processes.
- Marketing: Selling products and gathering customer feedback for improvements.
- Personnel Management: Ensuring employee satisfaction and organizational efficiency.
Business Industry Classification
- Businesses can be classified by scale:
- Small Scale: Fewer than 50 employees (in the US).
- Large Scale: More than 100 employees (in the US).
- Industries can be categorized into:
- Primary: Utilizes natural resources; includes agriculture and mining.
- Secondary: Involves manufacturing and construction, converting raw materials to products.
- Tertiary: Provides services, including financial, educational, and information services.
Types of Industries
-
Primary Industries: Direct extraction and utilization of natural resources.
- Extraction (mining, agriculture) and genetic industries (animal husbandry).
-
Secondary Industries: Transform raw materials into finished products; includes manufacturing and construction sectors.
- Assembly, analytical, synthetic, and process industries under manufacturing.
-
Tertiary Industries: Offer services rather than goods; crucial for economic functionality.
- Encompasses financial services, educational services, information services, and technology industries.
Objectives of Management
- Management aims to achieve organizational goals through effective resource coordination, planning, and decision-making.
- A successful manager leverages management principles and tools to navigate challenges and improve performance across functions.### Communication Technology and Quaternary Industry
- Processed data is delivered through communication technologies at no cost, enabling access to vast information online.
- Information technology and communication technology jointly develop services that enhance information dissemination.
- The Quaternary Industry focuses on intellectual services, primarily through research and development for human advancement.
- Notable research institutes in India include National Chemical Laboratory (NCL), National Environmental Engineering Research Institute (NEERI), and Indian Agricultural Research Institute (IARI).
Types of Industries
- Primary Industry: Involves extraction industries (e.g., mining, agriculture) and genetic industry (e.g., biotechnology).
- Secondary Industry: Consists of manufacturing and construction industries that transform raw materials into finished goods.
- Tertiary Industry: Encompasses services such as financial, educational, and information services.
- Quaternary Industry: Engaged in knowledge-based services, encompassing research and development.
Factors Affecting Business Establishment
- Nature of Business: Owners choose businesses aligned with their skills; options include sole proprietorship for small-scale trading or partnerships for larger manufacturing.
- Ease of Formation: Analyzing challenges for establishing a business, such as finding partners, raising funds, and legal requirements.
- Sources of Finance: Critical for business establishment; financing varies by scale of business through personal investment or public shares for large corporations.
- Expected Competition: Businesses face market competition, requiring effective strategies like quality products and services.
- Government Regulations: Compliance with laws varies by business size and type, with stricter regulations for company forms.
- Stability and Continuity: Long-term viability increases employee commitment and public trust; stability is essential for sustainable business operations.
Objectives of Management
-
Organizational Objectives:
- Focus on customer satisfaction.
- Aim for stability and growth.
- Enhance organizational goodwill.
-
Social Objectives:
- Supply quality products and uphold ethics.
- Improve the welfare of underdeveloped demographics.
- Foster employment opportunities and environmental conservation.
-
Personal Objectives:
- Ensure fair compensation and reasonable working conditions.
- Aim for job security and continuity.
Principles of Management
- Division of Work: Assign tasks based on individual skills for optimal productivity.
- Authority and Responsibility: Both aspects must align, ensuring accountability for delegated tasks.
- Discipline: Establish rules to enhance organizational efficiency and productivity.
- Unity of Command: Employees should report to a single supervisor to avoid confusion and conflicts.
- Unity of Directions: A single plan should direct efforts towards common goals.
- Centralization and Decentralization: Management structures depend on organizational size and complexity.
- Subordination of Individual Interest to General Interest: Align personal goals with organizational objectives to promote cooperation.
- Remuneration: Fair compensation is necessary to motivate employees.
- Scalar Chain: A well-defined hierarchy allows for clear communication and authority.
- Order: Proper placement of personnel to optimize workflow.
- Equity: Fair treatment fosters employee morale and cooperation.
- Stability of Tenure: Job security increases employee engagement and productivity.
- Initiative: Encourage creativity and entrepreneurship within the workforce.
- Esprit de Corps: Promote unity and teamwork to achieve higher performance levels.
Nature of Management
- Management as an Art: Involves applying creativity and skills to achieve goals and manage people effectively.
- Management as a Science: Based on systematic knowledge and principles applicable to organizational processes, influenced by human behavior.
- Management as a Profession: Involves specialized knowledge, ethics, formal education, and adherence to a code of conduct.
Characteristics of Management Profession
- Systematic Body of Knowledge: Management principles and techniques are established and can be learned.
- Universal Acceptance: Management practices are recognized and applied globally.
- Formal Education: Acquiring management knowledge involves a structured learning process through recognized institutions.
- Specialization: Managers can focus on areas like finance, marketing, or personnel based on expertise.
- Code of Conduct: Professional standards guide ethical behavior in management practice.### Independent Office and Professional Services
- Many management professionals operate independently as consultants, providing services to various organizations.
- Professionals charge fees, typically in the form of consultancy fees, for their services rendered.
Social Responsibility and Autonomy
- Professionals have a duty to society, as their work holds significant value and impact.
- Autonomy allows professionals to make independent judgments in their work, encouraging innovation and experimentation.
Status and Prestige
- Professionals, including managers, are regarded with high prestige due to their specialized technical knowledge.
- Management is considered a high-class profession, with managers receiving recognition and rewards associated with their roles.
Levels of Management
- Management is organized across different levels based on authority, responsibility, and job functions.
- The levels are classified into:
- Top Level Management
- Middle Level Management
- Lower Level Management
Top Level Management
- Comprises decision-makers like owners, shareholders, CEOs, and directors, responsible for strategic decisions and organizational objectives.
- Key responsibilities include:
- Formulating mission, vision, and objectives.
- Planning and innovating strategies for growth and stability.
- Coordinating activities among departments and overseeing organizational structure.
- Handling financial matters and profit distribution.
Middle Level Management
- Known as Executives, these managers implement policies set by top management and are often department heads.
- Responsibilities include:
- Setting departmental goals aligned with the organization's objectives.
- Planning and advising on operational improvements and strategy execution.
- Acting as a communication bridge between top and lower management.
- Directing and motivating subordinates.
Lower Level Management
- Also referred to as First-line or Supervisory managers, they oversee day-to-day operations and employee performance.
- Key functions include:
- Ensuring proper resource allocation for daily activities.
- Addressing workers' grievances and maintaining discipline.
- Supervising and providing training to employees.
- Reporting operational progress to higher management.
Summary of Management Concepts
- Management involves organizing, coordinating people, resources, and processes to achieve set goals.
- Essential functions include production, marketing, and financial control, focusing on efficiency and effectiveness.
- Management blends art and science, with varying theories and principles guiding the practice.
Keywords
- NGO: Non-Government Organization focused on community or social work.
- Strategically: Importance in planning actions.
- Globalization: Expanding presence worldwide.
- Anticipate: Foreseeing or realizing something beforehand.
- Conserve: Careful use to avoid waste.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers the fundamental concepts of management and organization as outlined in Unit 1 of Principles and Practices of Management. It will help you understand definitions, nature, scope, and functions related to various types of industries and business houses.
