12Th OCM Full Book PDF

SGT PROFESSIONAL ACADEMY Organisation of Commerce & Management INDEX Sr No. Particulars Page no. 1 Principles of Management 1.1 2 Functions of Management 2.1 3 Entrepreneurs...

SGT PROFESSIONAL ACADEMY Organisation of Commerce & Management INDEX Sr No. Particulars Page no. 1 Principles of Management 1.1 2 Functions of Management 2.1 3 Entrepreneurship Development 3.1 4 Business Services 4.1 5 Emerging modes of Business 5.1 6 Social Responsibilities of Business 6.1 7 Consumer Protection 7.1 8 Marketing 8.1  Ch 1: Principles of management Answer the following: 1). Explain nature of principles of management. (Feb 23, July 18, Oct 15, Mar 15, Mar 13) Ans: While achieving goal of an individual or an organization, it is always important to use different systems or techniques. Some of these techniques are accepted universally, hence, they are called as principles. It provides guideline to manager to conduct all organizational activities on specific bases. It helps the manager to take effective decisions and to achieve organizational goal. "Principle is defined as a fundamental truth or proposition that serves as the foundation for a system of belief or behaviour or for a chain of reasoning." In simple words, techniques or systems which give one directional result are called as principles. These principles are universal and applicable everywhere. Due to the basis of principles, managers need not work on trial and error basis. For Example, in cricket or in any other game, total play is designed and divided between the players according to their qualities and capabilities. In terms of management, it is called as division of work which is one of the principles of management. Management principles are formed to guide and influence the behavior of employees. These principles insist on improving efficiency of organizational resources in terms of profit. These principles also focus on best coordination between superior, subordinates and all the members of organization. The nature of management principles is given below: PUBG Causes FEver Principle The management principles are developed gradually with thorough research work. are formed Systematic observations and experiments are conducted before developing them. The by practice results of such experiments have been developed as a principle after its practice in and organizations. experiments Universal The principles of management are universal in nature. That means they can be applied application to all types of organizations, irrespective of their size and nature. Their results may vary and application may be modified but these are suitable for all kinds of organizations. Similarly, they are applicable to all levels of management. Behavioral Management is group activity. Management aims at achieving certain goal through a in nature group of human being. Management principles are designed to influence human beings. These principles control a group of persons and direct them to achieve the objectives. General Management principles provide general guidelines in tackling the organizational guidelines situations wisely as well as in solving the problems. They are not rigid. Which management principles are to be applied depends upon the situation, size and nature of organisation. For example, when we say fair remuneration, then the term 'fair' can vary as per the nature, size and financial condition of the organisation. Cause and Principles of management are the base for taking decisions. They determine the cause effect or reason for particular effect. For example, payment of good wages and incentives relationship helps in increasing the output of workers or making effective advertisement increases the sale of a product. Flexibility Management principles are flexible in nature. It means they can be changed or modified according to the situation. Managers can be flexible while implementing principles to suit the requirement. The business situations keep on changing. © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.1  Management principles can be adjusted or modified and can be used in the organisation according to its need. All All principles of management are of equal importance. Those are to be practiced principles simultaneously to get best results in the form of achievement of predefined goals. If are of equal any specific principle is focused more and others are not followed with same focus, importance then it affects the working of organization. Management principles are the principles of social science. The nature of principles of management is not absolute like pure sciences i.e. Chemistry, Mathematics etc. With some modifications according to requirement, organization needs to apply the principles of management. 2). What is the significance or importance of the principles of management? (Feb 20, Mar 18, 17, 16, 14, Oct 14) Ans: It is important to study the significance or importance of management principles with the help of the following facts: DISCUS➡️R&D Develops objective With the help of various principles of management, one can develop an objective approach approach. Managers can identify the business opportunities, root causes of the problems in correct manner and can provide appropriate solutions on it. It builds confidence in the minds of the managers. Provides useful The principles of management help the manager to understand the organisation. Insight to The study of the principles helps to improve the understanding of the situations managers and problems. It further helps the manager to find out the solutions to the problems and handle situations. Management principles are an outcome of the experience of various professional people. The use of these principles is helping managers about the manner in which he should act in different situations. This type of timely guidance reduces the wastage of resources and the goals can be achieved in appropriate manner. Scientific In business organization, a scientific decision means systematic or balanced decisions decision. Principles train the managers to handle critical situations tactfully otherwise the managers have to work always with trial and error method. With the use of various management principles, one can get an idea about how to analyze the situations, to search alternative options and their results. Helps to Management principles are the guidelines for better coordination and control. Coordinate and It is very chal- lenging to create coordination and cooperation among different Control employees working in differ- ent departments. It is also difficult task for manager to keep control on the performances of employees. Management principles offer suitable systems while establishing coordination and control. Helpful in In every organization two types of resources are used i.e. physical resources efficient (material, machines, money etc.) and human resources (manpower). The basic Utilization of function of management is to make proper balance between these resources by resources putting them to optimum use and control on wastage of resources. While maintaining discipline and healthy working environment, management always uses techniques and principles. It helps in establishing cordial relationship between management and employees which increases the efficiency level of employees and also facilitates the effective administration. For example, Use © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.2  of standard tools and machinery helps in increasing quality or productivity as well as in increasing level of efficiency of human resources. Understanding Management principles are based on every aspect of organization. They are not Social developed only from view point of handling the resources effectively but they Responsibility guide management in understanding social responsibility of organization. So that they can focus on providing quality products at reasonable prices, avoiding artificial monopolistic situations in market, fair competition, fair remuneration, change in environment, healthy working place, standard tools and machinery etc. Encourages Principles of management are dynamic. Their nature goes on changing along with Research and the changes in the business world. Over the years they have developed to suit Development the current need. It ena- bles the managers to bring consistent improvement in them. Management adopts new trends at working place automatically. These guidelines help management to make comparison of used principles with its expected outcome. If needed, management can modify the principles according to situation as the management is having liberty to take the decisions on their own. This training helps in developing scientific approach towards research and development and growth and development of organisation. For example, R and D department always works on finding new techniques in the field of production, finance, marketing, human resources etc. 3). Explain 14 principles of Henry Fayol in detail. (Feb 20, 19, July 19, 17, Mar 16, 14, 13) Or Explain in detail any five principles of management given by Henry Fayol. (July 22, mar 22, Oct 21) Or Explain any four principles of management of Henry Fayol. Ans: DAD is E2qually CURIOUS3 Principle of According to this principle, the work is divided into different kinds such as Division of technical, financial, commercial, security operations, accounting and managerial. It work is assigned to employees as per their qualities and capabilities. It helps in improving efficiency and expertise of employees which ultimately turns into expected productivity level. Principle of Authority is the right to take decisions. It is necessary to get the things done Authority & appropriately from subordinates. Authority always comes with the responsibility. responsibility If the manager is given the authority to complete a task within a given time, he should be held responsible if he does not complete the work in given time. Manager should have proper authorities to take managerial decision on his own in respect to the goal. Principle of According to Fayol, discipline is the most essential thing in the organisation. Discipline Employees must obey and respect the rules that govern the organisation. Discipline helps to achieve the goals in the organisation. Good discipline is the result of effective leadership. There must be a clear understanding between the management and workers regarding the organisation's rules. Basic discipline should be observed at all levels of management. Principle of Management should be fair as well as friendly to the subordinates. While dividing Equity the work, delegating the authorities, deciding the monetary terms etc.. there © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.3  should not be any discrimination between the employees. It is also suggested that the remuneration should not depend on the department but at the level on which subordinates are working. The employees working on the same level but in different departments should be paid same wages. This equity will help in avoiding conflicts in the organisation. Principle of Henry Fayol has given emphasis on team work. Esprit de corps means union is Esprit de strength. Running any organization is a group activity and human resources are the corpse valuable asset of the organization. If all employees are working as a union and with mutual trust, the difficulties can be solved quickly. Therefore, as a leader, manager should create a spirit of team work and understanding among employees to achieve organizational goal easily. Principle of Centralization refers to the concentration of powers and authorities. In some Centralization organisations this power is vested in one hand or few hands. This situation occurs in the small organisations. But, if the size of organisation is large then there is a decentralization of the power or authority. According to this principle there must be a proper balance between centralization and decentralization in the organisation. This is to be done according to the size of the organisation, nature of the activity etc. Principle of Each member of organization should receive orders from only one superior. This Unity of principle helps in managing conflicts and solving disputes among people in command organization. It also helps in avoiding confusion. If an employee receives commands from more than one authority, he will get confused and will not be able to take decision about whose orders should be followed. This is wrong approach. For this Right Approach Wrong Approach Superior organizational hierarchy should be well defined. Each em- ployee should know his immediate superior and should receive orders from him only. Principle of Appropriate remuneration to staff or employees is the principle to keep them Remuneration satisfied financially as well as retain them for long span of time within the organization. The fair remuneration affects on the productivity and efficiency level in total. The remuneration should be fixed by taking into consideration the skill, expertise, knowledge, tenure, cost of living, market trend, profitability of organization etc. Principle of Initiative refers to volunteering to do the work in an innovative way. The freedom Initiative to think and work on new ideas encourages employees to take initiative while working on given task. This initiative should be welcomed by the manager through discussion on the new ideas. It also helps in creating healthy organizational culture. Principle of This principle is based on 'A place for everything and everything in its place'. Order Human resources and materials should be in the right place at the right time for maximum efficiency. Human resources should be placed at right place and on right © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.4  job. The principle focuses on the proper utilization of physical and human resources. Principle of This principle states that 'there should be one head and one plan' in every Unity of organization. Each group in the organization should have the same objective and direction the group should be directed by one manager using single plan. Principle of Scalar chain means the hierarchy of authority from the top level to the lower level Scalar chain for the purpose of communication. This helps to ensure the orderly flow of information and communication. Traditionally, organizations used to frame large scalar chain which is time consuming. For example, a General Manager informs the decision to respective Functional Manager, then Functional Manager will pass it to supervisor, the supervisor will inform it to Foreman and so on according to level of authority. For avoiding this longer chain and to take speedy decisions cross communication or direct communication is followed by various organizations which is known as Gang Plank. For direct communication, proper permission of the authorities is necessary. In the above diagram, the communication between 'D' and 'G' should flow through proper hierarchy. But to avoid delay or in emergency situation there will be direct communication. It is termed as Gang Plank. Principle of At the time of recruitment of employees, the management should assure them Stability of about stability of tenure or job security. It plays very important role in creating tenure sense of belongingness among the employees. Insecurity in job always affect the efficiency of employees adversely whereas job security minimizes employee turnover ratio. Principle of According to this principle the interest of an individual must be given less Subordination importance than the interest of the organisation. While taking decision in the of individual organisation the manager should always consider the interest of the whole group interest to rather than the interest of a single employee. Similarly the employee should organizational protect the interest of the organisation first and his personal interest should be interest subordinated. For example, in every game, the players are always thinking about winning the match as a team rather than their individual records. Above 14 principles of Henry Fayol are very useful to manage the organization efficiently and effectively. These are also supportive to functions of management. These principles are very logical and therefore are applicable in modern management era. © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.5 4). Elaborate principles of scientific management. (Mar 15) Ans: Taylor's management theory is based on scientific experiments. This theory involves the application of scientific approach to decision making and solving them at the same time. According to Taylor, problems should be solved by scientific techniques rather than the rule of thumb and a trial and error approach. Definition of Scientific Management by Fredrick Taylor: "Scientific Management consists of knowing what you (i.e. management) want men to do exactly; and seeing it that they do it in the best and the cheapest manner." Principles of Scientific Management: MR TECH Mental Revolution Taylor introduced the concept of "Mental Revolution". This principle focuses on change in the attitude of employees and management towards each other. Both should realize their equal importance in organization. They should give full cooperation for achieving goal of organization. This will increase productivity and profits. Division of Proper division of work should always be accompanied with division of Responsibility responsibilities between the managers and employees. Major planning is done by the top and middle level management authorities whereas employees are concentrating on its execution. The reporting is done as per the instructions given by their superiors. Managers should always help, encourage and guide the employees. It helps for best performances of managers as well as employees. Science not rule In order to increase organizational efficiency, the 'Rule of Thumb' method of Thumb should be substituted with the methods developed through scientific analysis of work. Rule of thumb decisions are based on personal judgments of the manager. Taylor insisted upon scientific method for every small work. This principle is concerned with selecting the best way of performing a job after scientific analysis of that job and not by trial and error methods. Standard required time and standard output should be defined by the manager. This will help in saving time and human energy and will result into expected standard output. According to Taylor, even a small production activity like loading iron sheets into box cars can be scientifically planned. Development of Best performance of any organization always depends on the skills and Employer and capabilities of its, employees to a great extent. Thus, providing training and Employees for development programmes to the employees whenever required, is very essential. greater efficiency It ultimately affects the profitability of the, organization. Each employee and max should be given proper opportunity to attain greater efficiency and maximum prosperity prosperity. Cooperation, not This principle emphasizes on mutual cooperation between workforce i.e. individualism employees and management. Due to cooperation, trust, team spirit etc. internal competition will turn into healthy working environment. Management should always consider the suggestions given by employees in decision making process. Employees should be treated as an integral part of organisation in all respects. At the same time employees should resist themselves from going on strikes and making unnecessary demands from management. They should treat each other as two pillars of organization. Harmony not According to this principle, there should be harmony between the employees Discord and management. This coordination will help in minimizing conflicts between them. Perfect understanding between employees and management will be helpful in creating healthy work environment for achieving the desired goal i.e. success. Organization should think about maximum prosperity of employees also. © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.6 5). Describe any four techniques of scientific management. (Feb 23) Or Describe different techniques of scientific management. Or What are the techniques of scientific management? Explain in detail. (Oct 14) Ans: Functional S2WaPS Functional In this concept of Taylor, planning is separated from implemetation. That means, Organization planning is done by different people and actual work is supervised by different people. Thus, every worker will be supervised by two different sets of supervisors. He recommended total eight foremen to control the various aspects of production. They are categorized as follows: A) At Planning Level: 1. Route Clerk- tells how work moves 3. Time and Cost Clerk- determines from one machine to other time in which work should be completed and workout the cost. 2. Instruction Clerk- records 4. Discipline- ensures that the workers instructions to complete the work are working as per factory rules. B) At Implementation Level: 1. Gang Boss-actually gets the work 3. Repair Boss- handles security and done maintenance of mechanism 2. Speed Boss- ensures that the 4. Inspector- ensures that the work is work is completed in specified time done as per the specified standards According to Taylor, with the help of proper division of all activities into planning and implementation; management can definitely achieve the required performance from the employees. Scientific Task Taylor emphasized the need for fixing a fair day's work. Scientific work setting Setting is important to prevent the employees from doing work much below their capacity. By using this technique, employees will complete the task according to standards given and management can keep proper control on optimum utilization of workforce. Scientific Management can select right persons for the right jobs by using scientific Selection & selection procedures. It needs to fix job specifications as per requirement. Training Employees are selected according to pre- determined standards in an impartial way. After selection, management should provide the proper training programmes to increase their efficiency. Work Study Before assigning the work to the available workforce, proper work study should be done by management. Work study consists of an organized, systematic and critical assessment of the various activities or functions. Work study is based on the techniques such as time study, motion study, method study and fatigue study. A. Time Study: It is the technique of observing and recording the time taken by an employee to complete a given task. With the help of time study, the precise time required for each element of work is determined. It is the technique used for fixing the standard time required to do a particular task under given condition. It is useful to measure the efficiency of an employee and to control the cost of work. B. Method Study: There are always various methods of completing the task. For best quality and cost effective- ness, identifying the best method of doing a particular job is very important but challenging task for a manager. It helps in reducing the wastage of time, raw material and in improving the utility of all © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.7  resources as per predefined objetives. It is helpful in determining the methods for handling the raw materials, transportation, inspection, storage etc. C. Motion Study: The study of required motion means movement of an employee as well as of machine while completing a particular task is very important. It is helpful in eliminating unnecessary motions and finding the best method of doing a particular job. It also helps in improving the efficiency of the employees. Motion technique is used to know whether some elements of a job can be eliminated or their sequence can be changed for smooth flow of task. D. Fatigue Study; Generally, long working hours without sufficient breaks, target pressure, heavy working tools, and poor working conditions result into physical and mental stress i.e. fatigue. It has an adverse effect on the health and efficiency of the employees. The study of fatigue and steps to reduce the level of fatigue is very important to maintain the operational efficiency of the employees. Differential Remuneration should be fixed in such a way that average worker is motivated Piece Rate to attain a standard output. Taylor suggested the differential piece-wage Wage Plan system. Higher rates are offered to employees who complete the work more than the standard quantity under this system. On the other hand, if an employee is performing below the standard; he shall be given lower rate of wages. This technique motivate the employees to attain higher standard performance and earn wages i.e. remuneration at higher rate. Standardization With the result of experiments conducted at work place, Taylor advocated of Tools & standardization of tools and equipment’s. Standardized working environment and Equipment methods of production help to reduce spoilage and wastage of material, cost of production, fatigue among the workers and it improves quality of work. Objective Question: A). Select the correct option and rewrite the sentences 1). Who is regarded as Father of Scientific Management. (feb’ 24) a) Henry Fayol b) F W Taylor c) Philip Kotler 2). Principle of is based on 'A place for everything and everything in its place’. (Jul 22) a) discipline b) order c) equity 3). Member of organization should receive orders from………….(Mar 22) a) many superior b) one superior c) all superiors 4). Scalar chain means the hierarchy of....... from the top level to the lower level for the purpose of communication. (Feb 23) a) discipline b) unity c) authority 5). Taylor recommended total foremen to control the various aspects of production. a) Eight b) three c) two 6). Principles of management are a base for taking…………… a) orders b) remuneration c) decision 7). Management principles influence (Mar' 18) a) human behavior b) organization c) government 8). Management……………. are set of general rules that guide the managers to manage an organization. a) principles b) quotes c) theories 9). Henry Fayol is called as the father of ……………management. (Feb' 20, July 18) a) modern b) scientific c) technical 10). According to principle of…………, all employees should be given the same treatment. (Feb' 19) a) discipline b) authority c) equity © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.8 11). Esprit de corps means ……………is strength. a) individual b) authority c) unity Ans: 1. B 2. B 3. B 4. C 5. A 6. C 7. A 9. C 10. C 11. C B). Match the pairs: Group A Group B A) Henry Fayol 1) Eight Foremen B) Principle of Unity of Direction 2) F.W. Taylor C) Principles of Management 3) Proper division of all activities D) Scientific Management 4) general guidelines Theory E) Functional Organization 5) A place for everything and everything in its place 6) One head-one plan 7) Low wage rate 8) Harmony between the employees and Management 9) German engineer 10) Modern Management Ans: A-10, B-6, C-4, D-2, E-1. C). Write a word or a term or a phrase which can substitute each of the following statements: 1). Father of modern management. (Mar' 18) Ans : Henry Fayol 2). The principle of management that says work should be divided into parts. (Mar' 17, 16) Ans : Principle of Division of Work 3). Principle of management which says unity is strength. (Oct' 14) Ans : Principle of Esprit De Corps 4). The principle which deals with 'to do work in an innovative way'. Ans : Principle of Initiative 5). The principle which is based on 'a place for everything and everything in its place'. Ans : Principle of Order 6). The study of movement of an employee as well as machine while completing particular task. Ans : Motion Study 7). The technique of observing and recording the time required by an employee to complete a given task. Ans : Time Study 8). Study consists of an organized , systematic and critical assessment of various activities. Ans : Work Study 9). Father of scientific management. Ans : F.W. TAYLOR 10). The scientific principle which focuses on change in the attitude of employees and management towards each other Ans : Mental Revolution D). State whether the following statements are true or false: © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.9 1). The principles of management are universal in nature. (July 23) - True 2). Management principles are applied differently under different situations. - True 3). Only some principles of management are important. - False 4). F. W. Taylor has proposed 14 principles of management. (Feb' 23) - False 5). Each member of organisation should receive orders only from one superior. - True 6). That The principle of equity suggests remuneration should depend on department and not the level on which subordinates are working. - False 7). Rule of thumb decisions are based on the personal judgements of the manager. - True 8). Method study is the technique used for fixing the standard time required to do a particular task. - False 9). Instruction clerk ensures that work is done as per the specified standards. - False 10). Henry Fayol has given different techniques of management. - False E). Find the odd one: 1). Principle of Authority and Responsibility, Motion Study, Principle of Division of Work, Principle of Discipline. Ans: Motion Study 2). Principle of Discipline, Principle of Equity, Division of Responsibility, Principle of Esprit de Corps Ans: Division of Responsibility 3). Fatigue Study, Principle of Unity of Command, Work Study, Motion Study. Ans: Principle of Unity of Command 4). Speed Boss, Gang Boss, Route Clerk, Inspector Ans: Route Clerk F). Answer in one sentence 1) What is the meaning of principle? Ans: Principle means a fundamental truth or proposition that serves as the foundation for a system of belief or behaviour or for a chain of reasoning. 2) What is principle of unity of command? Ans: Principle of unity of command is a principle of management which states that each employee in the organization should receive orders only from one superior. 3) What is subordination of individual interest to organizational interest? Ans: Subordination of individual interest to organizational interest is a principle of management which means that interest of the individual should be given lesser importance as compared to the organizational interest while taking any decision. 4)What is standardization of tools and equipment? Ans: Standardization of tools and equipment is a technique of management which involves providing good working conditions, tools & equipment in order to reduce spoilage, wastage, cost of production and workers' fatigue. 5)What is differential wage rate? © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.10 Ans: Differential wage rate is a technique of management which involves paying higher rate of wages to employees who complete more work than standard quantity and paying lower rate of wages to those who perform below the standard. G). Correct the underlined word and rewrite the following sentences. 1). Security in job always affects adversely on the efficiency of employees. (July 23) Ans: Insecurity in job always affects adversely on the efficiency of employees. 2). Esprit de corps means 'division is strength'. Ans: Esprit de corps means 'unity is strength'. 3). Each member of organization should receive orders from only one subordinate. Ans: Each member of organization should receive orders from only one superior. 4). Decentralization means concentration of powers and authorities at a specific position. (Mar 22) Ans: Centralization means concentration of powers and authorities at a specific position. 5). Management techniques are applied differently under different conditions. Ans: Management principles are applied differently under different conditions. H). Explain the following term and Concepts: 1). Motion Study: The study of required motion means movement of an employee as well as of machine while completing a particular task is very important. It is helpful in eliminating unnecessary motions and finding the best method of doing a particular job. It also helps in improving the efficiency of the employees. Motion technique is used to know whether some elements of a job can be eliminated or their sequence can be changed for smooth flow of task. 2). Differential Piece Rate System: Remuneration should be fixed in such a way that average worker is motivated to attain a standard output. Taylor suggested the differential piece-wage system. Higher rates are offered to employees who complete the work more than the standard quantity under this system. On the other hand, if an employee is performing below the standard; he shall be given lower rate of wages. This technique motivate the employees to attain higher standard performance and earn wages i.e. remuneration at higher rate. 3). Fatigue Study: Generally, long working hours without sufficient breaks, target pressure, heavy working tools, and poor working conditions result into physical and mental stress i.e. fatigue. It has an adverse effect on the health and efficiency of the employees. The study of fatigue and steps to reduce the level of fatigue is very important to maintain the operational efficiency of the employees. (July 23) 4). Time Study: It is the technique of observing and recording the time taken by an employee to complete a given task. With the help of time study, the precise time required for each element of work is determined. It is the technique used for fixing the standard time required to do a particular task under given condition. It is useful to measure the efficiency of an employee and to control the cost of work. 5). Principle of Esprit de corpse: Henry Fayol has given emphasis on team work. Esprit de corps means union is strength. Running any organization is a group activity and human resources are the valuable asset of the organization. If all employees are working as a union and with mutual trust, the © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.11  difficulties can be solved quickly. Therefore, as a leader, manager should create a spirit of team work and understanding among employees to achieve organizational goal easily. (July 22) 6). Mental Revolution: Taylor introduced the concept of "Mental Revolution". This principle focuses on change in the attitude of employees and management towards each other. Both should realize their equal importance in organization. They should give full cooperation for achieving goal of organization. This will increase productivity and profits. (Oct 21) Justify the following Statements: 1). Principles of management are flexible in nature. (July 22, Mar 22, Oct' 21, Feb 19, Oct' 15) Ans: i. The principles of management can be changed or modified according to the situation & need of the organization. ii. Managers can be flexible while implementing principles to suit the requirement. iii. They act as guidelines to managers and are not in the form of a law which is to be followed as it is. iv. Thus, principles of management are flexible in nature. 2). Management principles are helpful in optimum utilization of resources. Ans: i. In every organisation two types of resources are used i.e. physical resources (material, machines, money etc.) and human resources (manpower). ii. The basic function of the management is optimum utilisation of these resources and controlling wastage. iii. Managers use the principles of management to maintain discipline and healthy working environment. iv. It helps in developing cordial relationship between management and employees which increases the efficiency level of employees and also effects the effective administration. v. Thus, Management principles are helpful in optimum utilization of resources. 3). Principle of equity is important. Ans: i. Principle of equity is one of the fourteen principles of management suggested by Henry Fayol. ii. According to this principle, management should be fair as well as friendly to the subordinates. While allocating any work, delegating the authorities, deciding the monetary terms etc., there should not be discrimination between the employees. any iv. Further, the salary/wages of employees working at the same level should be the same even though they belong to different departments. v. This equity will help in avoiding conflicts in the organisation. vi. Thus, the principle of equity is important. 4). Taylor emphasized on standardization of tools and equipment. (July 23) Ans: i. Standardisation of goods and technique of scientific suggested by F. W. Taylor. services is a management ii. This technique involves standardisation of working environment and methods of production. iii. According to Taylor, employees should be provided with good working conditions and good tools & equipment. iv. It helps to reduce spoilage and wastage of material, cost of production, and workers' fatigue. Overall, it improves quality of work. v. Thus, Taylor emphasised standardisation of tools & equipment. on 5). Differential piece wage rate plan is necessary. © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.12 Ans: i. Differential piece wage rate plan is a technique of scientific management suggested by F. W. Taylor. ii. Under this system, higher rates are offered to employees who complete more work than the standard quantity. iii. On the other hand, employees performing below the standard get lower rate of wages. iv. This technique motivates the employees to attain higher standard performance and earn higher wages. v. Thus, differential piece wage plan is necessary. 6). Principles of management improve the efficiency of employees. (July 17, Mar' 17) Ans: i. Principles of management help the manager: a. In understanding the organisation better b. In understanding the situations and problems c. In finding solutions to various situations and problems ii. Managers use the principles of management to maintain discipline and healthy working environment. iii. It helps in developing cordial relationship between management and employees which increases the efficiency level of employees and also affects effective administration. iv. Thus, principles of management improve the efficiency of employees. Q.3.Study the following case/situation and express your opinion. 1). Mr. Harshad is an entrepreneur and engaged in production of eco-friendly utensils. Both male and female workers are working in his factory. All male employees are directly working on machines whereas female employees are working in Packaging Department. Mr. Sharath is working as Finance Manager while Mrs. Naina is working as HR Manager who is responsible for recruiting employees in the factory. On this basis: i) Identify any one principle of management in above case. ii) What is the designation of Mrs. Naina in this organization. iii) Who is responsible for overall planning of the organisation? Ans: i. In the above case, we can observe the 'principle of division of work' since work is divided into different kinds such as production, accounting, HR etc.. ii. Mrs. Naina is the HR Manager in the organisation. iii. As per the Principle of Unity of Direction, there should be one head and one plan in every organisation. Mr. Harshad is the entrepreneur / head of the organisation and hence, he is responsible for the overall planning of the organisation. 2). In 'Fine Diamonds Ltd.' 200 employees are working in three shifts. In first shift 60 employees, in second shift 60 employees and in third shift 80 employees are working without sufficient breaks except lunch break and shift change break. No employee is able to complete the work in designated time due to inappropriate time management which results into delay for next shift employees. i) Identify which scientific principle needs to be followed by the company. ii) Suggest any one scientific techniques which can be used for smooth flow of work in 'Fine Diamonds Ltd. ' iii) Why the work is not being completed in time? © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.13 Ans: i. 'Science, Not Rule of Thumb' is the scientific principle that needs to be followed by the company. As per this principle, standard required time and standard output will be defined by the manager. It will help in saving time and human energy and will result in expected standard output. ii. Techniques which can be used for smooth flow of work in 'Fine Diamonds Ltd' are: a. Work Study - In order to do a systematic, organised and critical assessment of the various activities or functions. b. Scientific Task Setting - In order to fix a fair day's work. By using this technique, employees will complete the task as per the standard given and management can keep proper control on optimum utilisation of workforce. (Student can write any one technique) iii. The employees of 'Fine Diamonds Ltd.' are working without sufficient breaks. It would be having an adverse effect on their health and efficiency. Also, the time management is not proper. Thus, work is not being completed in time. © reserved SGT PROFESSIONAL ACADEMY 7887885989 1.14  Ch 2 Functions of Management Answer in following questions. 1). Explain any four points of importance of Planning. Or Define the term planning and explain the importance of Planning. (July 19, Mar 15) Or Explain the importance of Planning. Ans: Meaning: Planning is the basic function of management. Every function of management is based on planning. It includes deciding the things to be done in advance. Planning is an intellectual process of logical thinking and rational decision making. It focuses on organization's objectives and develops various courses of action. Designing a proper planning and implementing accordingly is the key of achieving the objectives of an organization. Definition: 1) Koontz and O'Donnell: "Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it. Planning bridges the gap from where we are and where we want to go it makes possible things to occur which would not otherwise occur." 2) James Stoner: "Planning is the process of establishing goals and a suitable course of action for achieving these goals." Following are some of the important definitions of planning: P2M is Planning a C2AR2DS Provides Planning ensures that the goals or objectives are clearly stated. They act as a guide path of and they provide direction for doing the right things at the right time with right way. action It helps employees to know what organization has to do and what they must do for achieving the goals. Promotes Planning is the basic function of management. It is a process of decision making which innovative involves promotion of innovative ideas after critical thinking. Ultimately, these ideas innovative plans result into attainment of the goals of the organization. It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the organization. Facilitates Every organisation functions towards achieving goal and goal is set at the planning other stage. Unless the plan is ready, other management functions such as organizing, Management staffing etc. cannot be undertaken thus, planning facilitates all other functions of functions management. Planning It helps managers to improve future performances of employees by establishing improves objectives and selecting a course of action. It is beneficial for the organization. Performance Planning leads to efficient working of the employees. Due to proper planning, the employees can work according to timely guidelines. This improvement in performances results into higher profitability of the organization. Helps to set Planning is concerned with setting objectives, targets, and formulating plans to Clear achieve them. It helps managers to analyze the present condition of the organization objectives and on that basis to identify the ways of attaining the desired position in future. Useful in Planning set out standards for controlling. So, the actual performance can be setting compared with the standards and managers can find out the deviation, if any between standards the actual and the standard performance. Such deviation can be bridged by taking for controlling steps. Therefore, planning provides basis for control. It is also important Controlling for maintaining discipline at working place of organization. Facilitates Planning facilitates the coordination of activities. It reduces overlapping among coordination activities. All activities of business organization are closely linked with each other © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.1  of all which is considered in the process of planning. Sound planning inter-relates all the Activities activities and resources of an organization. Thus, various departments work as per the overall plan and coordination is achieved. Planning Organizational plans are prepared by taking into consideration the availability of leads resources and proper allocation of resources for various activities. It also facilitates to optimum optimum utilization of resources which brings higher efficiency and better results. utilization One can avoid wastage of resources by proper planning. of Resources Minimizes Planning is based on forecasting technique. It is the process of looking into the future the Risk and anticipating the future changes. By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes or risks cannot be eliminated totally but they can be anticipated and can be tackled with preventive measures. It minimizes the risk of future or uncertainties of future. Helps in There are various alternatives in front of the management. For achieving goals Decision planning helps the management to select the best alternative by considering all Making positive and negative outcomes of all the alternatives. Decisions are taken after selecting alternative courses of action to achieve a predefined goal. It helps the manager to take rational decisions. Useful in Planning is the basic function of management. It is a process of decision making which setting involves promotion of innovative ideas after critical thinking. Ultimately, these Standards innovative plans result into attainment of the goals of the organization. It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the organization. 2). Explain any four points of importance of Organizing. Or Describe the importance of Organizing. Or What is organizing? Explain the importance of Organizing. (Oct 15) Ans: Meaning: Organizing is the process of identifying, bringing the required resources together such as men, money, material, machine and method, grouping and arranging them properly for achieving the objectives. In planning, the management decides what is to be done in future whereas organizing function decides the ways and means to achieve what has been planned. This function is important for execution of the plans which have been prepared by top level management people. The synchronization and combination of workforce, physical, financial and information resources are established in the process of organizing. Definitions: The term 'organization' is used to denote the structure. It is a unit or a group of people who come together to achieve a common goal whereas 'organizing' is a process and a function. Some of the definitions are as follows: 1) Mooney and Railey: "Organization is the form of every human association for the attainment of a common purpose." 2) Koontz and O'Donnell: "Organization involves the grouping of activities necessary to accomplish goals and plans, the assignment of these activities to appropriate departments and the provision of authority, delegation and co-ordination." 3 Theo Haimann: "Organizing is the process of defining and grouping the activities of the enterprise and establishing the authority relationships among them. In performing the organizing function, the © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.2 manager defines, departmentalizes and assigns activities so that they can be most effectively executed." Importance of Organizing: SA2GAR2S Co-ordination Job is innovative Brings Organizational structure is a network of relationships in which the work is divided Specialization into units and departments. This division of work helps in bringing specialization in various activities of organization. Specialization in activities leads to increase in organizational efficiency. Facilitates Organizing process leads to identify and to group the activities. Grouping and Administration assigning the activities is the task of administration whereas processing as well as according to it is operational activity. Thus, organizing facilitates administration Operation as well as operation of the organization. Due to proper grouping of the tasks and the employees, there is increase in production and reduction in wastage. Duplication of work is restricted and effective delegation becomes possible. Helps in This function determines different positions, departments, activities and the Effective roles are clearly structured. The utmost care is taken while placing right person Administration in right job with right authorities and responsibilities. It is achieved through division of work and delegation of authorities. This all leads to efficient and effective administration. Helpful for The growth of every organization depends on its smooth and efficient Growth & functioning. Clearly defined roles and responsibilities, coordination among all Diversification levels of management personnel and use of appropriate control techniques bring efficiency at work place and organization grows well. This is possible only when the organization structure is well- defined. Helps in optimum This function provides different jobs to different employee according to the job utilization of specification. Due to this, specialization of work becomes possible. This right Resources workforce utilizes other resources at its optimum level so that desired results are achieved within defined period. Clarifies Organizational structure defines the role to every manager. This can be done by Authority & delegating the authority to every manager and clarifying the way he has to Responsibility exercise those powers. So that misuse of powers does not take place. Well defined jobs and responsibilities helps in bringing efficiency into managers working. This helps in increasing productivity. Create Sense of Organizational structure clarifies the job positions. It clearly states the duties Security and responsibilities of everyone. Everyone can work accordingly. Clarity in jobs and powers helps in increasing mental satisfaction and it creates sense of security among the employees. Establishes This function helps in establishing co-ordination among different departments of Coordination organization. It creates clear cut relationships among positions and ensures mutual co-operation among individuals. Coordination or synchronization between all departments and different level of managers is important for smooth functioning of organizational activities. Defines the Job Organizational structure helps in putting right men on right job which can be done Properly by selecting people for various departments according to their qualification, skill and experience. This is helping in defining the jobs properly which clarifies the role of every person. Scope for Organizing function clears the roles and activities to be performed. Employees Innovation can work by using their new ideas. This provides enough space to the manager to © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.3  develop talent and flourish the knowledge. This scope for innovation into adopting new changes in methods of work is possible only through a set of organizational structure. 3). Explain the importance of staffing. Or Describe any four points of importance of staffing. Or What do you mean by staffing? Describe the importance of staffing. (Mar 17) Ans: Meaning: Staffing is the process of attracting, recruiting, selecting, placing, appraising, remunerating, developing and retaining the best workforce. Overall growth and success of every venture is based on appropriateness of staffing function. It is very challenging for organization to focus on best utilization of workforce by using their talents and skills, retaining them and arranging training and development programmes. The function emphasizes managing human and not material or financial resources. The need of staffing arises since the initial period of organization. Due to promotion, transfer, business expansion, retirement, resignation, accidents, death of employee etc. vacancies are created in organization. In this context, staffing function plays very important role in organization. Right person at right job with right pay is the basic principle of staffing. Definitions: Following are some of the important definitions of staffing: 1) Theo Haimann: "The staffing function pertains to the recruitment, selection, development, training and compensation of subordinate managers." 2) Luther Gullick: "Staffing is the whole personnel function of bringing in and training the staff and maintaining favorable conditions of work". 3) S. Benjamin: "Staffing is the process involved in identifying, assessing. placing, evaluating and directing individuals at work." Importance of Staffing: Contribution to T2HIRD Managerial Job Essential Staffing ensures the continuity and growth of the organization through Contribution development of employees. Selection is based on the ability of the prospective employees. So that organization can meet the future challenges wisely. Therefore, the contribution of the staff in their future roles is taken into account in staffing function. Helps in Effective Trained employees can use the latest technology, capital, material and methods use of Technology of work effectively. It helps in building competitive strength of the and Other organization. It is also helpful in improving standard of work and productivity in Resources terms of quality and quantity. Long Term Effect Qualified, efficient and skillful workforce is always an asset of the organization. Proper selection of employees leads the organization towards the path of success. Naturally, long term positive effects can be observed on the efficiency of an organization. Maintains In staffing process, individuals are recruited, selected and placed as well as Harmony their performance is regularly appraised and promotions are given on the basis of merit. For this, criteria is made and duly communicated to concerned employees. It brings peace and harmony in organization. Improves Training and development programmes are offered to the employees for self- Efficiency development and organizational development. Through proper selection, the © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.4  organization gets quality employ- ees and through proper training the performance level of the employees can be improved. Leads to Staffing function leads to effective utilization of human resources i.e. Effective workforce. Proper care is taken at every stage such as recruitment, selection, utilization of placement, remuneration, training, development etc. Excessive burden of work Human Resources is avoided. Optimum Builds Cordial This function is helpful in building healthy relationships among all levels of Relationship employees in the organization. A smooth human relation is the key to better communication and coordination of managerial efforts in an organization. Helps Human Skilled and experienced employee is an asset of a business organization. resource Staffing helps to inculcate the organizational culture into employees. It trains Development and develops the existing workforce. It also ensures smooth functioning of all the managerial aspects of the business organization. Effective Staffing is the key to effective performance of other functions of management Managerial such as planning, organizing, directing and controlling. Competent workforce can Function work effectively in different functional areas like production, sales, finance etc. The outcome of other functions is based on the effectiveness of staffing. Optimum utilization of human resources results in improvement in performances and progress of organization. Provides Job Staffing ensures the continuity and growth of the organization through Satisfaction development of employees. Selection is based on the ability of the prospective employees. So that organization can meet the future challenges wisely. Therefore, the contribution of the staff in their future roles is taken into account in staffing function. 4). Explain any four points of importance of directing. Or Explain the importance of directing. Or Give the definition of directing and explain the importance of directing. Ans: Meaning: Directing is the soul of management function. It is the process of instructing, guiding, com- municating, inspiring, motivating and supervising the employees to achieve predetermined goals of an organization. Direction is a continuous function initiated at top level and flows to the lower level through organizational hierarchy. It is a continuous managerial process that goes on throughout the tenure of the organization. Director is the person who shows the correct path as well as guides the employees in solving the problems wherever necessary. A few philosophers called direction as "Life Spark of an Enterprise". Definitions: Following are some of the important definitions of directing: 1) Theo Haimann: "Direction consists of the process and techniques utilized in issuing instructions and making certain that operations are carried out as planned." 2) Earnest Dale: "Directing is what has to be done and in what manner through dictating the procedures and policies for accomplishing performance standards". 3) Urwick and Brech: "Directing is the guidance, the inspiration, the leadership of those men and women that constitute the real case of responsibilities of management." Importance of Directing: Directing refers to a process or technique of instructing, guiding, inspiring, counselling, overseeing and leading people towards the accomplishment of organizational goals. © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.5 Supervision is an integral part of direction function. The director supervises employees by observations, examining the reports and behaviour of employees. On the basis of the above definitions, the importance of directing can be stated as follows: MATRIC3ES Means of While directing the subordinates, their opinions are also considered. A manager Motivation identifies the potential and abilities of its subordinates and helps them to give their best. He also motivates them by offering them financial and non-financial incentives to improve their performance. It boosts the morale of subordinates. Initiates Direction is the function which supports to activate the plans with the help of Action employees. Every action is initiated through timely direction. Proper instructions are given to subordinates while completing their assigned task. The managers direct the subordinates about what to do, how to do, when to do and also to see that their instructions are properly followed. Creates Direction focuses on motivating the subordinates for group efforts. Group efforts or Team team spirit plays vital role in success of an organization than individual efforts. Spirit Therefore, the role of manager as a director plays very important role in guiding and motivating the employees to achieve the predetermined goals. Effective Direction involves assigning duties and responsibilities to everyone. Proper instructions utilization and systems are developed to avoid wastages, duplication of efforts etc. Subordinates of are guided to utilize the resources i.e. men, machine, materials, and money in the Resources optimum possible way. It helps in reducing costs and increasing profits. Increase Guidance and motivation is given to subordinates to perform at their best level. Being Efficiency a leader, team spirit is created by the manager as well as proper techniques of level supervision are used. It works positively and results into enhancing the efficiency level of the whole organization. Coping up Factors of business environment are always changing. Adapting to the environmental with changes is necessary for the growth of the organization. With the help of motivation, Changes proper communication and leadership, the employees can clearly understand the nature of change and also the positive outcome of adopting to the change. For example, e- filing, use of Robots at workplace etc. Explores Every individual has various capabilities or potentials in addition to their formal Capabilities qualifications. Direction helps to identify and utilize their abilities for best of performance by encouraging and motivating them just like a leader. Individuals Co- Co-operation is necessary for smooth flow of organizational activities. It should be operation created by manager i.e. director from top level to the bottom level of management. Healthy cooperation, team work and higher efficiency level lead to attainment of goals. Integrates Communication is one of the elements of direction. It helps in integrating the efforts Efforts of all the employees and departments which results in achievement of organizational goal. Integration of efforts is possible through persuasive leadership and effective communication towards the accomplishment of organizational goals. Provides Stability plays significant role in the growth and survival of the organization. Effective Stability leadership, communication, supervision and motivation develop co-operation and commitment among the employees. It provides stability and creates balance among various departments and groups. © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.6 Thus, Directing to subordinates is a basic management function that includes building an effective work climate through motivation. 5). Describe any four points of importance of coordinating. Or Describe the importance of coordinating. Or What is coordinating? Describe the importance of coordinating. (Feb 19, Oct 15, Oct 14) Ans: Meaning: Co-ordination between different functions and all levels of employee is the essence of organization success. It is an integration of different activities· which is essential for their smooth flow. It establishes harmony among all the activities of an organization in achieving desired goal. In an organization, a number of persons are working together to achieve a common goal. Their work is closely linked with each other. Therefore, it becomes necessary to bring together the group efforts and harmonise them carefully. Co-ordination will not exist unless efforts are taken to achieve it. Co-ordination is the integration and synchronization of the efforts of a group so as to pro- vide unity of action for organizational goals. It is a hidden force which binds all other functions of management. Definitions: Following are some of the important definitions of co-ordination: 1) McFarland: "Co-ordination is the process whereby an executive develops an orderly pattern of group efforts among his subordinates and secures unity of actions in the pursuit of a common purpose." 2) Henry Fayol: "To co-ordinate is to harmonise all the activities of a concern to facilitate its working and its success." 3) Mooney and Reeley: "Co-ordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goals." Importance of Co-ordinating: Need for co-ordination arises out of the fact that different elements and efforts of an organization are to be harmonized and unified to achieve the common objectives. Importance of coordination can be discussed as follows: D2OG TREMOrS Unity of Different activities are performed by different departments. Coordination Direction harmornizes these activities for achieving common goal of organization. Thus, coordination gives proper direc- tion to all departments of the organization. Gives Proper Coordination integrates departmental activities for achieving common goal of the Direction organization. The work is arranged in a very systematic way. The interdependence of departments gives proper direction to the employees. Optimum Managers try to integrate all the resources systematically. It helps in utilizing all utilization of available resources at its optimum level. Co-ordination also helps to minimize the resources wastage of resources and control the cost of work. Improves Higher sales and higher profitability can be achieved due to synchronized efforts Goodwill of organizational people, strong human relations and lower costs. It directly results into creating goodwill for organization in the market. It reflects on market value of shares as well as it helps in building good image in society. Encourages In organizations, group of individuals work together. There may be existence of Team Spirit conflicts, disputes between individuals, departments and employer and employees regarding organizational policies, roles and responsibilities etc. Coordination arranges the work in such a way that minimum conflicts are raised. It increases the team spirit at work place. © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.7  Improves Co-ordination develops cordial relations between all the levels of management of an Relation organization. Every department depends on functioning of other department. For example, sales department works according to production department, Production department depends on Purchase department and so on. Coordination helps the employees to build strong relations among them and achieve the given targets. Leads to With the help of optimum utilization of resources and effective integration of higher resources, the organization can achieve high returns in terms of high productivity, Efficiency high profitability as well as can reduce the cost. Thus, co-ordination leads to higher efficiency. Facilitates Coordination motivates the employees to take initiative while completing their Motivation assigned task. An effective co-ordination increases efficiency and results into growth and prosperity of the organisation. A prosperous organisation ensures job security, higher income, promotion and incentives. Such monetary and non- monetary incentives provide job security and motivate the employees for hard work. Achieve Co-ordination leads to minimize the wastages of materials, idle time of employees, Organizational delay in completion of targets, departmental disputes etc.to a great extent. It Objectives ensures smooth working of the organization in the process of achieving the objectives of the organization. Specialization All departments of the organization are headed by experts in their respective fields. The specialized knowledge of these departmental heads helps in managerial decisions. It leads organization to march towards growth and success in the competitive world of business. 6). Explain the importance of controlling. (July 23) Or Define the term controlling and explain the importance of controlling. (Feb 20, Mar 17, Mar 16) Ans: Meaning: Controlling function is required in all types of organizations whether profit making or non- profit making. Similarly, it is performed at all levels i.e. top, middle and lower levels of management Controlling is indispensable function of management. The effectiveness of planning function can be determined with the function of controlling. Planning and controlling are major parts of the management cycle. Controlling is a function of comparing the actual performance with the predetermined stand- ard performance. It measures deviation, if any, identifies the causes of deviation and suggests cor- rective measures. The process of controlling helps in formulation of future plans also. Process of controlling: © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.8  Standards Measurement of Attainment performance Comparison and Corrective action Finding deviations Analysing causes of deviation Definitions: Following are some of the important definitions of controlling: 1) Koontz and O'Donnell: "Managerial control implies the measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans". 2) Dale Henning: "Control is the process of bringing about conformity of performance with planned action." 3) Philip Kotler: "Control is the process of taking steps to bring actual results and desired re- sults closer together." Controlling is important in maintaining standards and to achieve desired goals effectively and efficiently. It is a function of checking the performances of employees at every stage of their work in process. The importance of controlling function in an organization is as follows: Per DECIGRA2M Psychological The performances are evaluated with the standard targets. The employees are very Pressure well aware that their performance will be evaluated and they will be rewarded accordingly. This psychological pressure works as a motivational factor for empolyees to give their best performance. Ensures Controlling is the function of order and maintaining discipline. It works for reducing Order and unprofessional behavior of the employees. Discipline is maintened by continuous Discipline checking of performances by the superiors and preventive actions are taken to minimize the gap between actual and standards. Ensures Factors of control include making managers responsible, motivating them for higher Organisational performance and achieving departmental coordination. It ensures about Efficiency organizational efficiency and effectiveness. and Effectiveness Facilitates Control is a function in which the roles and responsibilities of all departmental Co-ordination managers and the subordinates are designed clearly. Coordination between them helps to find out the deviations in their respective departments and to use remedial measure for desired results of the organization. © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.9  Builds Good Controlling function helps to improve the overall performance of the organization. Corporate Minimum deviation in predetermined standards and actual performance results into Image the progress of business. It can be achieved with the help of proper control. This builds good corporate image and brings goodwill for the business. Fulfilling Controlling is the function of measuring the performances at every possible stage, Goals of finding out the deviations, if any; and taking corrective actions according to planned Organization activities for the organization. Thus, it helps in fulfilling the organizational goals. Making Various techniques are used by managers to reduce wastage of material and spoilage Efficient of other resources. Standards are set for every performance. Employees have to utilization of follow these standards. Resources As the effect of this, the resources are used by employees in the most efficient and effective manner so as to achieve organizational objectives. Accuracy of An efficient control system helps management in judging the accuracy of standards Standards whether they are accurate or not. Controlling measures are flexible to some extent. So after reviewing them according to changing circumstances, they are revised from time to time which is bene- ficial for checking performances accurately. Acts as a Controlling function provides set of standard performance. Managers as well as Guide subordinates- work according to it. Wherever necessary, they can take the help of these standards and can achieve desired results. Thus, controlling function acts as a guide for everyone. The steps taken for controlling an activity guide the management while planning the future activities. Motivates After setting standards of checking performance, they are communicated to Employee employees in advance. Due to this, employees get an idea about what to do and how to do. Performances are evaluated and on that basis employees are rewarded in the form of increment, bonus, promotion etc. It motivates the employees to perform at their best level. Objective Questions: A) Select the correct option and rewrite the sentence. 1). The functions of management start with............... function. a) organising b) planning c) coordinating 2). The functions of management end with............... (July 23, Mar' 22, Feb' 20, July 19) a) directing b) staffing c) controlling 3)................ sets out standards for controlling. a) Staffing b) Planning c) Coordinating 4). Organization function is important for execution of the plans which have been prepared by............... management. a) top level b) middle level c) lower level 5)................ is the function which supports to activate the plans with the help of employees. a) Staffing b) Directing c) Co-ordinating 6)................ is the function of execution according to the plan and the organizational structure. a) Controlling b) Directing c) Staffing 7). ______ arranges the work in such a way that minimum conflicts are raised. a) Co-ordinating b) Organizing c) Controlling 8). The liability of Karta in a Joint Hindu Family Firm is _______. (Feb 20) a) unlimited b) limited c) joint © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.10 9). According to L. A. Allen, "Management is what _______ does". a. employee b. organisation с. Manager 10). Planning is _______. (Mar' 16) a. advanced function b. basic function c. end function 11). Planning is ______ a function of management. (Feb' 19) a. primary b. secondary c. last 12). Staffing is concerned with_______. (Mar' 15) a. physical factor b. financial factor с. human factor 13). _____ is the function which supports to activate the plans with the help of employees. a. Staffing b. Directing c. Co-ordinating 14). Directing is initiated at ______ level. (July 17) a. top b. middle c. lower 15). ______ arranges the work in such a way that minimum conflicts are raised. a. Co-ordinating b. Controlling c. Organising B) Match the Pairs Group A Group B A) Henry Fayol 1) Eight Foremen B) Principle of Unity of Direction 2) F.W. Taylor C) Principles of Management 3) Proper division of all activities D) Scientific Management Theory 4) general guidelines E) Functional Organization 5) A place for everything and everything in its place 6) One head-one plan 7) Low wage rate 8) Harmony between the employees and management 9) German engineer 10) Modern Management Ans: A-10, B-6, C-4, D-2, E-1. C) Write a word or a term or a phrase which can substitute each of the following statements: 1). First function of management. (July 22) Ans: Planning 2). One of the functions of management is considered as a base for all functions. (Mar' 17) Ans: Planning 3). Last function of management. Ans: Controlling 4). It is an intellectual process of logical thinking and rational decision making. Ans: Planning 5). The term that is used to denote the structure. Ans: Organisation 6). It is the process of attracting, recruiting, selecting, placing, appraising and remunerating the people. Ans: Staffing 7). A function where right people are given right jobs. (July 19, July 17, Mar' 14) Ans: Staffing 8). The right person at the right job with right pay. © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.11 Ans: Basic principle of staffing 9). A function of management where managers instruct, guide and communicate with the employees. (Feb' 20, Feb' 19, Oct' 15, Oct' 14) Ans: Directing 10). A function directly related to human beings. (July 18) Ans: Staffing 11). The process that leads the employees towards the accomplishment of organisational goals. Ans: Directing 12). A person who shows the correct path as well as guides employees in solving the problems. Ans: Director 13). It increases the team spirit of work place. Ans: Co-ordinating 14). An end function where the performance is evaluated in accordance with plan. (Mar' 18) Ans: Controlling 15). It is the process of comparing the actual performance with the predetermined standard performance. Ans: Controlling D) State whether the following statements are true or false: 1). Every function of management is not based on planning. – (July 23) False 2). Planning provides basis for control. True 3). Staffing function emphasises managing material or financial resources. False 4). Specialisation in activities leads to increase in organisational efficiency. True 5). Qualified, efficient and skilled work force is always an asset of the organisation. True 6). Direction is a continuous managerial process that goes on throughout the tenure of the organisation. True 7). Co-operation is not necessary for smooth flow of organisational activities. False 8). Co-ordination motivates the employees to take initiative while completing their assigned task. True 9). Standards are not set for every performance in controlling function. False 10). Controlling aids in efficient utilisation of resources. True E) Find the odd one: 1). Planning, Organising, Staffing, Writing - Writing (Feb' 23) 2). Selecting, Training, Co-ordinating, Placing - Co-ordinating (Oct' 21) F) Complete the sentences: 1). Reporting and budgeting functions are summarised in the function called as _______. 2). The functions of manager start with _________ 3). ________is the fundamental function of management. 4). Planning is the fundamental function which gives an outline about where to go, how to go and reduces the risk of uncertain future with the help of _________ 5). Recruitments are done under ______ function. 6). The tasks of getting the things done by others is known as _________. 7). The _______ function of management initiates’ action. 8). ________ integrates departmental activities for achieving common goal of the organisation. © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.12 9). ________ is the last function of management. 10). __________ is the function of order and maintaining discipline Ans: 1. controlling 3. Planning 5. staffing 7. directing 9. Controlling 2. planning 4. forecasting 6. directing 8.Co- rdination 10. Controlling G) Select the correct option from the bracket: 1). Planning is a detailed programme of (present/future/past) course of action. 2). Qualified, efficient and skilled workforce is always an (liabilities/assets/expenses) of the organisation. 3). Directing is a responsibility of (manager/workers/people) at all levels. Ans: 1. Future 2. Assets 3. Manager (H) Answer in one sentence: 1). What is management? Ans: Management is a set of principles which relate to various functions such as planning. organising, staffing, directing, co-ordinating. controlling etc. which are helpful in achieving organisational goals. 2). What is planning? Ans: Planning is the process of establishing goals and a suitable course of action for achieving those goals. 3). What is staffing? Ans: Staffing is the process of attracting, recruiting, selecting, placing, appraising, remunerating, developing and retaining the best workforce. 4). What is directing? Ans: Directing refers to the process or technique of instructing, guiding, communicating, inspiring, motivating, counselling, supervising and leading people towards the accomplishment of pre- determined organisational goals, 5). What is controlling? Ans: Controlling is a function of comparing the actual performance with the predetermined standard performance. It measures deviation, if any. identifies the causes of deviation and suggests corrective measures. (I) Correct the underlined word and rewrite the following sentences: 1). Staffing is concerned with machines. (July 23) Ans: Staffing is concerned with human resource. 2). Factors of business environment are always fixed. Ans: Factors of business environment are always changing. 3). Co-ordination helps to maximise the wastage of resources and controls the cost of work. Ans: Co-ordination helps to minimise the wastage of resources and controls the cost of work. 4). Directing is a function of comparing the actual performance with the predetermined performance. Ans: Controlling is a function of comparing the actual performance with the predetermined performance. 5). Controlling measures are rigid to some extent. Ans: Controlling measures are flexible to some extent. © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.13 J) Arrange in proper Controlling 1). Controlling ii. Organising iii. Planning (Mar' 22) Ans: i. Planning ii. Organising iii. Controlling 2). i.Directing ii. Co-ordinating iii. Staffing Ans: i. Staffing ii. Directing iii. Co-ordinating Explain the following terms/concept.: 1). Management (Feb 23) Ans: Management is a set of principles which relate to various functions such as planning, organising, staffing, directing, co-ordinating, controlling etc. It includes all the tasks undertaken to achieve organisational goals. The management starts with planning and ends with controlling. Management function is concerned with all levels of management. 2). Planning (July 23) Ans: Planning is the basic function of management. It is an intellectual process of logical thinking and rational decision making. It includes deciding the things to be done in advance. It is a fundamental function which gives an outline about where to go, how to go and reduces the risk of an uncertain future with the help of forecasting. 3). Organising (July 22, Mar' 22) Ans: Organising is the process of identifying the required resources, bringing them together, grouping and arranging them properly for achieving the objectives. It involves deciding the ways and means to achieve what has been planned. The process of organising establishes synchronisation and combination of workforce, physical, financial and information resources. 4). Staffing (Oct 22) Ans: Staffing is the process of attracting, recruiting, selecting, placing, appraising, remunerating, developing and retaining the best workforce. The function focuses on managing the human resources. It is the function of execution as per the plan and organisational structure. 5). Directing (July 22) Ans: Directing refers to the process or technique of instructing, guiding, communicating, inspiring, motivating, counselling, supervising and leading people towards the accomplishment of pre- determined organisational goals. It is a continuous function initiated at the top level. Then it flows to the lower level through organisational hierarchy. It goes on throughout the tenure of the organisation. Distinguish Between: Planning Organizing Staffing Directing Coordinating Controlling 1. Meaning Planning is Organising is The staffing Directing is the Coordination Controlling is deciding in the process of function guidance is orderly theprocess of advance defining and pertains inspiration, the arrangement taking steps to what to grouping the to the leadership of of group bring actual do activities of recruitment, those men and efforts to results and how to do the selection, women provide unity desired results it,when to enterprise and development, constitute of action in closer do it and establishing the training and the real case the pursuit together. who is to authority compensation responsibilities of common of subordinate © reserved SGT PROFESSIONAL ACADEMY 7887885989 2.14 do it. relationships managers. of management. goal. among them. 2. Objective To set To identify To appoint To direct the To ensure To ensure that goals and bring right type of subordinates to harmony of the objectives and together all people at the get the things efforts of are achieved choosing required right positions done in the right the according to the means resources and the manner. employees the plan. to right time. for achieve smooth these functioning goals. of organization. 3. Area of function It includes It includes It includes It includes It includes It includes setting identification recruitment, instructing, integration of setting up of objectives and grouping selection, guiding, efforts of top standards, by of activities, training, inspiring, level, middle level measurement, identifying assigning the development communicating and lower level. and comparison the ways of work and and and with actual attaining establishing compensation motivating the performance the goal and the authority of human human and taking selecting relationship. resources. resources. corrective the best steps whenever necessary. plan. 4. Factors Internal and Internal and Staffing is Directing It is Internal and external external mostly is concerned harmonization of external factors are factors are concerned directly with human resources, factors are considered considered in with internal internal so it is concerned taken into in planning arrangement factors. factors with internal account process. of resources. i.e. human factors. for taking resources. corrective action. 5. Order It is the It is based It follows It follows It is an important It is an end basic first on planning. organizing or