2 Marks:

1. Management Meaning: Management is a process through which an organisation

designs and maintains an environment in which individuals work together with the
motive of achieving organisational goals effectively and efficiently.
2. Management Definition: "Management is the art of getting things done through
others." – Follett
3. Planning meaning: planning is decision in advance; what to do , when to do , how to
do, and who will do a particular task.
4. Define Scalar chain: A scalar chain is a hierarchical structure of authority and
communication in an organization, as defined by Henri Fayol.

6 marks:

1. Explain the advantages of planning.

Ans:

1. Facing Complexities of Modern Business. The business is becoming more and

more complex. There is a globalisation of business, competition is increasing,
constant need for creativity and many more issues crop up in day to day working.
There is a constant need to plan the things to face complex situations. Planning
helps as a tool in anticipating emerging business situations and suggesting ways to
take advantage from it. Planning helps a businessman to face emerging situations
in a systematic way.
2. Forewarn against Business Failures. Business failures may be due to wrong
and unscientific planning. A bad planning may cause wastage of resources and
loss of opportunities. The business may fail to face competition from efficiently
run units. The indications of future failures will be visible from the current
situation. Better planning and proper implementation will be able to save the
business from failures.
3. Attention on Objectives. Planning helps in clearly laying down objectives of the
organisation. The whole attention of management is given towards the
achievement of those objectives. There can be priorities in objectives, important
objectives to be taken up first and others to be followed after them.
4. Minimising Uncertainties. Planning is always done for the future. No body can
predict accurately what is going to happen. Business environments are always
changing. Planning is an effort to foresee the future and plan the things in a best
possible way. Planning certainly minimises future uncertainties by basing its
decisions on past experiences and present situations.
5. Better Utilisation of Resources. Another advantage of planning is the better
utilisation of resources of the business. All the resources are first identified and
then operations are planned. All resources are put to best possible uses.
 6. Economy in Operations. The objectives are determined first and then best
possible course of action is selected for achieving these objectives. The operations
selected being better among possible alternatives, there is an economy in
operations. The method of trial and error is avoided and resources are not wasted
in making choices. The economy is possible in all departments whether
production, sales, purchases, finances, etc.

2. Briefly explain the top level of Management and its responsibilities

Ans:

TOP LEVEL MANAGEMENT

Top level management consists of senior most executives of the organisation and their
teams

Board of Directors

Managing Director

President

Vice-President

Chief Executive Officer (CEO)

Chief Financial Controller (CFO)

The Board of Directors is accountable to shareholders in the Annual General

Meetings of the company. The other officers may carry out the policies and plans
devised by the Board Directors. Chief Executive Officer looks after the overall
management of the company's operations.

Main functions of top-level management are:

(1) Determining the objectives of the enterprise. The top-level management

determines the long term and short term objectives of the enterprise, Main objectives
of the organisation are formed at this level of management.

(2) Management prepares plans and policies for achieving organisational goals.

(3) Assigning jobs to middle level management. Top level management assigns
activities to various persons working at middle level of the management.

(4) Co-ordinating activities of different departments. Top management co-

ordinates the activities of various departments and directs them to achieve
organisational goals.
 (5) Arranging resources for the enterprise. Top level management arranges
financial, human and physical resources for the organisation so that various activities
are taken up as per plans.

(6) Responsible for welfare and survival of the organisation. Top level
management is responsible for the growth and survival of the organisation. The plans
are made for the smooth and efficient working of the enterprise.

(7) Providing overall leadership. Top management provides overall leadership to the
organisation. It provides direction to persons at other levels of management and
provide clarifications on various plans and policies.

3. Write a note on Managerial Roles

Ans:
10 Marks:
1. Explain Henry Fayol’s 14 Principles of Management
Ans:
1. Division of Work
It refers to dividing the work into different individuals. Fayol recommended that work
of all kinds must be divided and allocated as per competence, qualification, and
experience of individuals. According to Fayol, “Division of Work intends to produce
more and better work for the same effort. Specialization is the most efficient way to
use human effort.”

2. Authority and Responsibility

According to this principle, there should be a proper balance between authority and
responsibility. Authority is the duty, which a subordinate is expected to
perform. Authority and responsibility go hand in hand. Authority without
responsibility leads to irresponsible behavior, while responsibility without authority
will make a person ineffective.

3. Discipline
Discipline refers to obedience to the rules and regulations of the organization.
Discipline requires good supervision at all levels of management. According to
Fayol, good supervision at all levels, clear and fair rules, and a built-in system of
penalties will help to maintain discipline. It is a must for all levels of management.

4. Unity of Command
According to this principle, each subordinate should receive orders and be accountable
to only the superior. No person can serve several masters at the same time. If
an employee gets orders from two superiors at the same time, then the principle of unity
of command is violated, and he will find it very difficult to decide who he has to obey
first. So, to avoid confusion, employees should receive an order from one superior.

5. Unity of Direction
It implies that there should be one head and one person for proof of activities having
the same objectives. According to this principle, all the activities should be carried
under the direction of one head, and there should be effective coordination in all the
activities. This principle ensures unity of action and avoids unnecessary duplication of
work.

6. Subordination of Individual Interest to General Interest

According to this principle, the interest of the organization as a whole must prevail over
the interest of the individual. Simply put, the interest of the organization should be
placed above the interest of employees. It is the duty of the manager to reconcile them.
If reconciliation is impossible, then general interest must supersede individual interest.
A manager must sacrifice his interest. Manager can achieve their objectives when the
organization recovers from financial crises.
7. Remuneration of Employees
According to this principle, remuneration should be fair and satisfactory to both
employees and the organization. This principle leads to harmonious relations in the
organization. Fair remuneration should be determined based on government rules
related to wages, financial position of the organization, nature of work, and cost of
living. Employees should be paid reasonable wages for their service, which should
provide them with a moderate standard of living.

8. Centralization and Decentralization

Centralization refers to the concentration of authority at the top level, and
decentralization means distribution at all levels of management. According to this
principle, there should be a proper balance between centralization and
decentralization. The degree of centralization and decentralization depends on various
factors, such as experience of the employees, ability of subordinates, size of the
organization, etc. Too much centralization lead to loss of control of top management.
Therefore an optimum balance should be maintained according to the need of the
organization.

9. Scalar Chain
According to this principle, there is a scalar chain of authority and communication that
moves in a straight line from the superior to the lowest subordinate. Henri
Fayol permitted a shortcut of chain in case of urgency known as gang plank. Gang
plank allows direct communication between two employees of the same level.

10. Order
According to this principle, there should be a proper place for everything and everyone.
Henri Fayol emphasized on two types of order: material order and social order. In
material order, there must be a plan for everything. It ensures to fix a place for various
material tools. Whereas in social order, there must be an appointed place for every
employee, which ensures a proper and fixed place/cabin for each employee.

11. Equity
According to this principle, there should not be any discrimination amongst
employees based on religion, caste, language, or nationality. Equity
ensures coordinated relations between superiors and subordinates. It leads to the
smooth and successful working of the enterprise. It improves satisfaction and
motivation of the employee, creating relation between manager and employees.

12. Stability of Personnel

According to this principle, there should be proper effort to achieve stability and
continuity of employment. Fayol said that employees should be kept in their position
for a reasonable time to show stability creates a sense of belonging, and workers are
encouraged to improve their quality of work. This will increase the efficiency of
employees, and it will also increase the reputation of the organization.
Unnecessary labor turnover creates an atmosphere of disbelief. Continuous changes in
employees disturb the working environment.
 13. Initiative
According to this principle, workers should encourage and should be given an
opportunity to take initiative in making and executing the plan. Henri Fayol suggested
that employees at all levels should be encouraged to take initiative in work. It motivates
employees to work better and to take more interest in the organization. The initiative is
a powerful motivator of human behavior and a source of strength for the organization.
This increase the mental growth and feeling of belongingness in employees. It increases
the commitment of employees toward the organization. Lack of initiatives may create
an atmosphere of non-cooperation.

14. Esprit De Corps

According to this principle, management should take reasonable steps to develop a
sense of belongingness and a feeling of team spirit amongst employees. In order to
achieve the best possible result, individual and group efforts need to be integrated.
Production is a teamwork and it requires the full support of all members. For this
purpose, a manager should replace 'I' with 'We' in his conversations to bring a team
spirit among the employees. This will develop an atmosphere of mutual trust. It will
help in achieving group goals, leading to cordial relations between management and
workers.

2. Discuss Management as an art, a science and a profession , Justify with suitable

examples.
Ans:
Elements of art present in management or not:
1. Existence of Theoretical Knowledge. In every art there is a systematic and organised
study material available to acquire theoretical knowledge of the art. For example,
dancing, public speaking, acting, music, there is sufficient theoretical knowledge
available for those who want to practise that art. Management also has systematic and
organised material available for acquiring knowledge of managerial principles and
practices. This feature of art is available in management.
2. Personalised Application. Art is a personalised concept. Every individual makes use
of the basic knowledge in his/her own personal way. It varies from person to person.
For example, two dancers, two singers, two artists will be showing their talent
differently. In management, managers learn same management theories but their
success will depend on the application of those theories under different situations. So
this feature of art is also available in management.
3. Based on Continuous Practice. Art involves continuous practice of existing
theoretical knowledge. Management satisfies this criteria as a manager gains
experience through regular practice and becomes effective. This feature of art is present
in management.
4. Creativity. Art involves creativity. An artist tries to apply his knowledge to improve his
work and brings out for viewer better things. For example, a musician will try to bring
out new compositions based on the basics of music notes. Like any other artist, a
manager tries to frame his own policies based on the knowledge acquired by him/her
 and use them as per needs. A manager tries different situations everyday and his creative
thinking will help him in getting better results. This feature of art is also present in
management.
Conclusion: therefore, its understood that management is an art
Elements of science present in management or not:
1. Systematised Body of Knowledge. In science organised and systematic study
material is available which can be used to acquire the knowledge of science.
Management has also developed systematic and organised study material for proper
understanding of the subject as is done in science. The first feature of science is
present in management.
2. Continuous Observations. The scientific principles are derived on the basis of
logical and scientific observations. Before arriving at principles, scientists perform
logical observations and reach objective conclusions.
When managers observe people working in an organisation, their observations may not be
fully objective and logical. There may be some kind of subjectivity in observations when it
comes to human beings. The scientific principles have same effect wherever th ey may be
tried and observed. The effect in management may vary from one situation to another. This
principle of science is not applicable to management.
3. Principles Based on Repeated Experiments. Before developing the principles,
scientists test them under different conditions and places. Managers also test different
principles in different organisations, at different places and at different conditions. This
principle of science is present in management also.
4. Universal Validity. Scientific principles have universal application and validity. The
principles will give same result when used at different places. Management principles are
not exact like scientific principles, their application and use are not universal. Management
principles have to be modified according to the given situation. This principle of science
is not present in management.
5. Replication is Possible. When two scientists working on the same data and working
independently reach the same conclusions and get same results, this will be called
replication. This type of experimentation and results is possible in science. In management
managers conduct research or experiments on human beings. When two managers are
investigating on the same data, on different sets of human beings, the results may not be
the same since human beings do not react similarly at different times. So this feature of
science is not present in management.
Conclusion: hence, management is not a pure science , it’s a social science.
Elements of profession present in management or not:
1. Well Defined Body of Knowledge. Every profession has a systematic body of
knowledge which helps professionals to gain proper knowledge of that profession.
Management has an organised body of knowledge built by management thinkers and
practitioners over a period of time. The scholars are studying different problems and
are developing new principles to solve them. In this sense, this feature of profession is
present in management.
2. Professional Associations. For the regulation of any profession, there should be a
representative body. This body lays down the standards of education and training for
those entering that profession. For example, doctors have to get themselves registered
with Medical Council of India, a Chartered Accountant has to get the membership of
Indian Institute of Chartered Accountants.

In case of management, various management associations at national and international

level have been set up. For example, All India Management Association, New Delhi.
National Institute of Personnel Management, Calcutta have been set up for the benefit
of management professionals. Legally, it is not essential that management professionals
management cannot be should get the membership of these bodies. As per this feature
management called a profession but surely such associations may get statutory backing
in near future.

3. Restricted Entry. The entry to a particular profession is controlled by its professional

body. A person intending to particular profession must acquire the prescribed
educational qualifications. For example, to become a doctor a person must have MBBS
degree or to enter a law profession one must be a law graduate.

In the case of management, there is no specific qualification prescribed for becoming a

manager. A person can become a manager irrespective of educational qualifications.
The trend is now changing and persons with MBA qualification are preferred as
managers. At present management does not qualify to be a profession on account of this
feature but the trend is surely changing.

4. Existence of Code of Conduct. Various professional bodies prescribe a code of

conduct which members are required to observe. A code of conduct provides rules and
regulations, norms of honesty, integrity and professional morality.

In management, there is no code of conduct for managers. AIMA has devised a code of
conduct for Indian managers but it is not legally binding for the managers to get
themselves registered with that association. So management cannot be called a
profession on the basis of this feature but things are proceeding in the direction when
managers may follow a standard code of conduct.

5. Service Motive. A profession involves the application of expert knowledge for the
service of society. A doctor earns his living out of his medical profession but service to
society is upper most in his mind. A manager aims to achieve the goals of a business,
the main goal may be to maximise profits. The things are now changing and besides
profits, business is taking up social responsibilities for the welfare of things may change
in future. society. So presently the feature of profession is not present in management
Conclusion: The above distinction shows that management does not qualify to be
called a profession, but its growing up to be a profession.
3. Explain the principles of Scientific Management by FW Taylor.
Ans:
Taylor gave the following principles of scientific management:

1. Replacement of Rule of Thumb: Taylor advocated the replacement of rule of thumb

with scientific methods. The rule of thumb emphasises estimation whereas scientific
approach brings precision. Every work should be planned properly before it is carried
out. Taylor suggested work study to eliminate unnecessary operations, standardisation
of tools and equipment, scientific selection of employees, differential piece rate system
to encourage employees for better performance.

2. Co-operation: The principle of co-operation was suggested to encourage a combined

effort not only among workers but also between workers and management. Taylor
suggested the change of thinking of the management and workers. Both should try to
create mutual confidence, co-operation and goodwill. In the words of Taylor,
substitution of war for peace, hearty and brotherly co-operation for contentment and
strife, replacement of suspicious watchfulness with mutual confidence, of becoming
friends instead of enemies. It is along this line, I say, that scientific management must
be developed."

3. Development of Workers: In scientific management workers have an important role

to play. All the plans of raising output can be achieved only with the efforts of workers.
In this context Taylor emphasised the development of workers so that they are able to
cope with the changing methods of work. The workers should be scientifically se lected,
placed and developed. He suggested on the job training for workers to enable them to
understand the work methods well. The workers should be regularly developed so that
they are able to cope with the changing times.

4. Maximum Output: The whole philosophy of scientific management advocates

increased production and productivity. Taylor wanted to change the old methods of
production so that rate of production should be increased. Taylor was against any
curtailment of production either by the management or by the workers. He suggested
that both the parties should try to increase surplus by stepping up production.

5. Distribution of Work: The work and responsibility should be distributed between

workers and management. The management should design the work, set up and
supervise the work and the workers are free to perform the work.