Principles of Management Unit I
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Questions and Answers

What are the four roles that fall under the category of Decisional Roles in management?

Entrepreneur, Negotiator, Resource Allocator, Disturbance Handler

According to Henry Fayol, unity of command means an employee should have multiple bosses.

False

Henry Fayol introduced a general theory of management that can be applied to all levels of management and every department, focusing on __________ efficiency.

managerial

Which are the four skills that managers are expected to have?

<p>Technical skills</p> Signup and view all the answers

What is the main purpose of staffing in an organization?

<p>To put the right man on the right job.</p> Signup and view all the answers

According to Henry Fayol, which of the following are functions of management?

<p>Planning, Organizing, Directing, Controlling</p> Signup and view all the answers

________ is the function of management that involves measurement of accomplishment against standards.

<p>Controlling</p> Signup and view all the answers

Match the following categories of management levels with their descriptions:

<p>Top Level of Management = Consists of board of directors and managing director Middle Level of Management = Branch and departmental managers responsible for executing organizational plans Lower Level of Management = Supervisors and foremen overseeing day-to-day activities</p> Signup and view all the answers

Henry Mintzberg identified five roles of managers in an organization.

<p>False</p> Signup and view all the answers

According to Fayol, what should the hierarchy steps be in an organization?

<p>From the top to the lowest</p> Signup and view all the answers

Which principle emphasizes the maintenance of a well-defined work order in a company?

<p>Order</p> Signup and view all the answers

Employees should be treated equally and respectfully.

<p>True</p> Signup and view all the answers

Employees deliver the best when they feel __________ in their job.

<p>secure</p> Signup and view all the answers

Who is considered the Father of Human Relations School?

<p>Elton Mayo</p> Signup and view all the answers

According to Follett's theory, do true leaders create group power or express personal power?

<p>create group power</p> Signup and view all the answers

What are the five levels in Maslow's hierarchy of needs? (Select all that apply)

<p>Safety</p> Signup and view all the answers

What was the purpose of the Illumination Experiment conducted at Hawthorne Plant?

<p>To determine the effect of illumination on workers' productivity</p> Signup and view all the answers

Theory X assumes that the average human being inherently dislikes work.

<p>True</p> Signup and view all the answers

Theory Y is based on the assumptions that the expenditure of physical and mental effort in work is as natural as _ or _.

<p>play, rest</p> Signup and view all the answers

Match the management theory approach with its description:

<p>Quantitative or Mathematical Approach = Provides a quantitative basis for decision-making, views management as a system of mathematical models Systems Approach = Views organizations as an organic and open system composed of interacting and interdependent parts Contingency Approach = Takes into account that management practices are contingent upon unique situations</p> Signup and view all the answers

What is a characteristic of a system according to the text?

<p>It is composed of hierarchy of sub-systems</p> Signup and view all the answers

According to systems approach, what is the boundary of an organizational system used for?

<p>determining which parts are internal and which are external</p> Signup and view all the answers

The systems approach in management pays more attention to the effectiveness of sub-systems than the overall system.

<p>False</p> Signup and view all the answers

Planning is a _______ managerial function that provides the base for other functions of the management.

<p>first and foremost</p> Signup and view all the answers

Match the following management approaches with their descriptions:

<p>Systems Approach = Focuses on overall system effectiveness and interdependence of sub-systems; considers organizations as open systems Contingency Approach = Mangers should be situation-oriented; no one best way of managing under different situations</p> Signup and view all the answers

What is decision making?

<p>A process involving information, choice of alternative actions, implementations, and evaluation directed to achieving goals</p> Signup and view all the answers

Define a single-use plan.

<p>A plan developed for a one-time event or project, not likely to be repeated in the future.</p> Signup and view all the answers

Decision making is not an important component of a manager's activities.

<p>False</p> Signup and view all the answers

__________ are routine steps on how to carry out activities.

<p>Procedures</p> Signup and view all the answers

What are the three stages of the decision-making process?

<p>Identifying phase, Development phase, Selection phase</p> Signup and view all the answers

In decision-making, the first step involves analyzing the problem to develop alternative solutions.

<p>False</p> Signup and view all the answers

What is the first step in the decision-making process?

<p>Identify the problem</p> Signup and view all the answers

Risk analysis involves quantitative and qualitative ______ assessment.

<p>risk</p> Signup and view all the answers

Match the decision-making conditions with their definitions:

<p>Certainty = Manager has perfect knowledge of all information needed to make a decision Risk = Manager understands the problem and the alternatives but lacks guarantee on outcomes Uncertainty = Managers can't assign probabilities to likely outcomes of alternatives due to poor information</p> Signup and view all the answers

What is the primary focus of the brainstorming technique?

<p>Generation of ideas</p> Signup and view all the answers

In the Delphi technique, what is the main purpose of obtaining the opinions of physically separated experts?

<p>To insulate group members from the undue influence of others</p> Signup and view all the answers

Break-even analysis helps in determining the level of sales necessary to cover variable costs.

<p>False</p> Signup and view all the answers

Linear programming involves making an optimum allocation of _______ resources of an organization.

<p>scarce</p> Signup and view all the answers

Match the following decision-making tools with their descriptions:

<p>Ratio Analysis = Interpreting accounting information Financial Analysis = Estimating profitability of an investment Marginal Analysis = Figuring out extra output from adding one more variable Break-Even Analysis = Determining sales level to cover fixed costs</p> Signup and view all the answers

What is the primary aim of game theory?

<p>Develop rational criteria for selecting a strategy.</p> Signup and view all the answers

What are the two concepts used in game theory for decision-making?

<p>Minimizing the maximum loss and maximizing the minimum gain</p> Signup and view all the answers

Simulation is mainly used for solving simple problems.

<p>False</p> Signup and view all the answers

A decision tree is a graphical representation of alternative courses of action and the possible outcomes and risks associated with each action. It is a sophisticated __________ tool.

<p>mathematical</p> Signup and view all the answers

According to the Oxford Dictionary, how is 'strategy' defined?

<p>A plan of action designed to achieve a long-term or overall goal.</p> Signup and view all the answers

Study Notes

Evolution of Management Science

  • Management concept is comprehensive and covers all aspects of business
  • Management means utilizing available resources in the best possible manner to achieve well-defined objectives
  • Resources: men, money, materials, machines, methods, and markets (six M's of management)
  • Management is essential for the conduct of business activity in an orderly manner

Definition of Management

  • According to Harold Koontz: "Management is the art of getting things done through and with people in formally organized groups"
  • According to Henry Fayol: "To manage is to forecast and to plan, to organize, to command, to coordinate, and to control"
  • According to Peter Drucker: "Management is a multi-purpose organ that manages business and manages managers and manages workers and work"

Management Functions

  • Planning: determining courses of action to achieve desired goals
  • Organizing: bringing together physical, financial, and human resources to achieve organizational goals
  • Staffing: manning the organization structure through proper and effective selection, appraisal, and development of personnel
  • Directing: actuating the organizational methods to work efficiently for achieving organizational purposes
  • Controlling: measuring and correcting performance activities to ensure achievement of organizational goals

Levels of Management

  • Top level: board of directors, chief executive, or managing director
    • Responsible for laying down objectives and broad policies of the enterprise
    • Devotes more time to planning and coordinating functions
  • Middle level: branch managers and departmental managers
    • Responsible for executing plans of the organization
    • Devotes more time to organizational and directional functions
  • Lower level: supervisors, foremen, section officers, and superintendent
    • Responsible for direction and controlling function of management
    • Devotes more time to day-to-day activities and supervising subordinates

Roles of Manager

  • Interpersonal roles: leader, figurehead, liaison
  • Informational roles: monitor, disseminator, spokesperson
  • Decisional roles: entrepreneur, negotiator, resource allocator, disturbance handler

Managerial Skills

  • Technical skills: understanding of and proficiency in a specialized field
  • Human skills: ability to work well with others
  • Conceptual skills: ability to visualize the organization as a whole
  • Design skills: ability to solve problems in ways that benefit the enterprise

Management and Administration

  • Management is an executing function, while administration is a decision-making function
  • Management decides who should do it and how, while administration decides what is to be done and when

Management Theories

  • Classical theory of management: scientific management, bureaucratic management, administrative management
  • Neo-Classical theory: behavioral science approach
  • Modern management theories: quantitative approach, system approach, contingency approach

Contributions of F.W. Taylor, Frank and Lillian Gilbreth, and Henry Laurence Gantt

  • F.W. Taylor: scientific management, piece-rate incentive system, time-and-motion study
  • Frank and Lillian Gilbreth: motion study, eliminating unnecessary motions, and reducing work fatigue
  • Henry Laurence Gantt: task-and-bonus system, Gantt chart, and incentive plan for foremen### Bureaucratic Management
  • Weber believed that bureaucracy was the most efficient way to set up and manage an organization.
  • Ideal bureaucracy favors efficiency, uniformity, and a clear distribution of power.
  • Major characteristics of Weber's Ideal Bureaucracy:
    • Work specialization and division of labor
    • Abstract rules and regulations
    • Impersonality of managers
    • Hierarchy of organization structure

Administrative Management

  • Focuses on principles to coordinate internal activities of organizations.
  • Henry Fayol introduced a general theory applicable to all levels of management and every department.
  • Fayol's 14 Principles of Management:
    • Division of Work: segregating work to enhance quality, productivity, and efficiency.
    • Authority and Responsibility: authority facilitates efficient management, and responsibility makes managers accountable.
    • Discipline: essential for accomplishment, and good performance and behavior make management easier.
    • Unity of Command: each employee should have only one boss to avoid conflict of interest.
    • Unity of Direction: all individuals working on the same activity should have a unified goal.
    • Subordination of Individual Interest: company goals should take precedence over personal interests.
    • Remuneration: monetary or non-monetary rewards to motivate workers.
    • Centralization: balance between hierarchy and division of power.
    • Scalar Chain: clear hierarchy with well-defined roles and communication.
    • Order: well-defined work order for favorable work culture.
    • Equity: equal treatment of all employees.
    • Stability: job security for employees.
    • Initiative: encouraging employees to take initiatives.
    • Esprit de Corps: management should motivate and support employees.

Limitations of Bureaucratic & Administrative Management

  • Destroyed individual creativity and flexibility.
  • Ignored important aspects of organizational behavior.
  • Did not consider external and internal environmental impacts on employee behavior.

Neo-Classical Theory

  • Contributed to understanding human behavior at work and in organizations.
  • Features:
    • Business organization is a social system.
    • Human factor is the most important element in the social system.
    • Social and psychological factors determine worker productivity and satisfaction.

Elton Mayo and the Hawthorne Studies

  • Led the team that conducted the Hawthorne experiments (1927-1932).
  • Findings:
    • Amount of work done is not determined by physical capacity but by social norms.
    • Non-economic rewards significantly influence worker behavior.
    • Workers generally react as members of a group, not individuals.
  • Experiments:
    • Illumination Experiment (1924-1927): lighting levels did not affect productivity.
    • Relay Assembly Test Room Experiment (1927): changes in working conditions did not affect output.
    • Mass Interviewing Programme (1928-1931): workers expressed likes, dislikes, and feelings.
    • Bank Wiring Experiment (1931-1932): group behavior, social norms, and output.

Criticisms of Mayo's Human Relations Theory

  • Lacked scientific basis.
  • Influenced by workers' feelings of importance and attention.
  • Anti-union and pro-management.
  • Neglected the nature of work and environmental factors.
  • Ignored effects of conflicts and tensions on workers.

Mary Parker Follett

  • Influential management theorist.
  • Contributions:
    • Conflict resolution through integration.
    • Leadership as "power with" rather than "power over."
    • True leaders create group power, not personal power.

Maslow's Hierarchy of Needs

  • A five-tier model of human needs:
    1. Physiological needs (basic survival needs).
    2. Safety needs (security and stability).
    3. Love and belongingness needs (social relationships).
    4. Esteem needs (self-esteem and reputation).
    5. Self-actualization needs (personal growth and fulfillment).

McGregor Theory X and Theory Y

  • Two views of human behavior at work:
  • Theory X: assumes people dislike work and need control and direction.
  • Theory Y: assumes people are motivated to work and seek responsibility.### Theory X and Theory Y
  • According to McGregor, the "carrot and stick" approach can be effective, but it is limited in its ability to motivate people, especially when their needs are social and egoistic.
  • Theory X assumes that people are inherently lazy and need to be controlled and directed, whereas Theory Y assumes that people are motivated and can be self-directed.

Assumptions of Theory Y

  • The expenditure of physical and mental effort in work is as natural as play or rest.
  • External control and the threat of punishment are not the only means to bring about effort towards organisational objectives.
  • People will exercise self-direction and self-control in the service of objectives to which they are committed.
  • Commitment to objectives is a function of the rewards associated with their achievement.
  • The average human being learns, under proper conditions, not only to accept but to seek responsibility.
  • The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organisational problems is widely, not narrowly, distributed in the population.

Modern Management Theory

  • From 1960 onwards, management thought has shifted away from extreme human relations ideas and towards a more balanced approach that considers both man and machine.
  • This period has seen the development of quantitative, systems, and contingency approaches to management.

Quantitative or Mathematical Approach

  • This approach uses mathematical models and techniques to analyze and solve managerial problems.
  • It is based on the Decision Theory School and is also known as the "Management Science School".
  • This approach is useful for providing a quantitative basis for decision-making, but it has limitations, such as:
    • Not considering the human element in organisations.
    • Being too narrow and focused on mathematical models.
    • Not being able to fully capture the complexities of real-world problems.

Systems Approach

  • This approach views organisations as open systems that interact with their environment.
  • It considers the organisation as a whole, rather than focusing on individual parts or sub-systems.
  • Key features of this approach include:
    • Interacting and interdependent parts.
    • A boundary that distinguishes between internal and external components.
    • Input, transformation, and output processes.
    • Dynamic and responsive to changes in the environment.

Contingency or Situational Approach

  • This approach recognizes that management problems are different in different situations and require different solutions.
  • It aims to integrate theory with practice in a systems framework.
  • Key features of this approach include:
    • Recognizing the importance of the environment and external factors.
    • Identifying the internal and external variables that influence organisational performance.
    • Developing organisational designs and managerial actions that are tailored to specific situations.

Planning

  • Planning is a fundamental management function that involves deciding beforehand what to do, how to do it, when to do it, and who is to do it.
  • It is an intellectual process that lays down an organisation's objectives and develops various courses of action.
  • Key characteristics of planning include:
    • Being a managerial function.
    • Being goal-oriented.
    • Being pervasive and present in all segments of the organisation.
    • Being a continuous process.
    • Involving intellectual processes such as thinking, forecasting, and decision-making.
    • Focusing on the future and anticipating future challenges.

Importance of Planning

  • Planning helps to improve future performance by establishing objectives and selecting a course of action.
  • It minimizes risk and uncertainty by looking ahead into the future.
  • It facilitates the coordination of activities and reduces overlapping and unproductive work.
  • It provides direction for action and sets out standards for controlling.
  • It uncovers and identifies future opportunities and threats.

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This quiz covers the evolution of management science, discussing the concept of management in the business world, its significance, and objectives.

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