final pmaque ans

PMA PREVIOUS QUESTIONS

AND KEYPOINTS

PREPARED BY,Frijo K Francis

SHORT ANSWER QUESTIONS

3 MARKS EACH

1.DEFINE MANAGEMENT ?

It is the process of involving Planning, Organising, Staffing, Directing and Controlling human efforts to achieve stated objectives in an organization.

According to Koontz “Management is the art of getting things done through and with people in formally organised group.”

2.DISTINGUISH BETWEEN ADMINISTRATION AND MANAGEMENT ?

Administration(policy formulation)

Management (policy execution)

Top

Lower

Functions in organisation

Organisational levels

Figure: Administrative and managerial functions

BASIS OF DIFFERENCE

ADMINISTRATION

MANAGEMENT

1.Level in organisation

Top level Middle and lower level

2.Major focus Policy formulation and objective determination

Policy execution for objective achievement

3.Nature of functions

Determinative Executive

4.Scope of functions

Broad and conceptual

Narrow and conceptual

5.Factors affecting decisions

Mostly external

Mostly internal

6.Employer-employee relation

Entrepreneurs and owners

Employees

7.Qualities required

Administrative Technical

3.LIST THE FUNCTIONS OF MANAGEMENT ?

Five fundamental functions of management

1. PLANNING :- deciding -what to do,when to do and

how to do.

2. ORGANISING :- departmentation of activities and

delegation of authority & responsibility.

4 . DIRECTING :- directing subordinates for

organisational objective.

5. CONTROLLING :- Controlling means the measurement

and correction of performance of activities of

subordinates

3. STAFFING :-

manning of the various position in an organiation.

EXPLAIN DIFFERENT LEVELS OF MANAGEMENT ?Different levels of management shown in following Pictorial Representation:

Responsible for providing the overall direction of an organization

Develop goals and strategies for entire organization

Spend most of their time planning and leading Communicate with key stakeholders—

stockholders, unions, governmental agencies, etc., company policies

Use of multicultural and strategic action competencies to lead firm is crucial

Administrative or Top Level

Executive or Middle Level Responsible for setting objectives that are

consistent with top management’s goals and translating them into specific goals and plans for first-line managers to implement

Responsible for coordinating activities of first-line managers

Establish target dates for products/services to be delivered

Need to coordinate with others for resources Ability to develop others is important Rely on communication, teamwork, and planning

and administration competencies to achieve goals

Supervisory or Lower Level

Directly responsible for production of goods or services

Employees who report to first-line managers do the organization’s work

Spend little time with top managers in large organizations

Technical expertise is important

Rely on planning and administration, self-management, teamwork, and communication competencies to get work done

WHAT IS MBO ?

The term Management By Objectives (MBO) or

Management By Results(MBR) was coined by Peter

Drucker in 1954.

MBO is focuses sharply on the objectives or results

achieved with in a specified period.

MBO emphasises participative management, an

approach which provide high motivation to individuals

in an organisation

MBO is defined as a comprehensive managerial

system that integrates many key managerial activities

in a systematic manner ,consciously directed towards

the effective achievement of organisational

objectives.

WHAT IS SWOT ANALYSIS ?

SWOT analysis  is a strategic planning method used to evaluate the Strengths, Weaknesses,Opportunities, and Threats involved in a project or in a business venture.

This technique is invented by Albert Humphrey

▪ Strengths : characteristics of the business, or project team that give it an advantage over others.

▪ Weaknesses : are characteristics that place the team at a disadvantage relative to others.

▪ Opportunities : external chances to improve performance in the environment.

▪ Threats : external elements in the environment that could cause trouble for the business or project.

The strengths and weaknesses  are purely internal and the opportunities and threats  are purely external to the organization.

DISTINGUISH FORMAL AND INFORMAL ORGANISATION ?

Formal organisation :- They are deliberately designed to

achieve some particular objectives. It refers to the structure of well

defined jobs, each bearing a definite authority, responsibility and

accountability.

Informal organisation :- They refer to the natural grouping

of people on the basis of some similarity in an organisation like-

likes, dislikes, gender etc.. These associations are not specified in

the blueprint of the formal organisation.

Basis of comparison

Formal organisation

Informal organisation

Formation / Origin Planned and deliberate

Spontaneous, socio-psychological forces

Purpose Well-set goals Social interaction

Structure Well structured Unstructured

Nature Official Unofficial

Size Generally large Small

Authority Delegated Any one

Communication Formal channel Informal channel

Guidelines for behaviour

Rules and procedures

Group norms

Abolition At completion of goals

Any time

EXPLAIN STAFFING FUNCTION IN MANAGEMMENT ?

Staffing involves manning the various position in an organization. According to McFarland :

“ Staffing is the function by which managers build an organisation through the recruitment,selection,and development of individuals as capable employees”.

Placing right type of people at right position and at right time in the organisation.

Staffing involves:

Manpower

Recruitment, selection and placement

Training and development

Remuneration

Performance appraisal

Promotions and transfer

Basis Authority Responsibility

Meaning It is the legitimate power of the manager to command his subordinates.

It is the obligation of the subordinate to complete the assigned work.

Origin It arises due to the position of superior.

It arises due to superior-subordinate relationship.

Flow It flows from top to bottom. It flows from bottom to top.

Period It has longer period as compared to responsibility.

It gets completed with the completion of the task so has the shorter period.

Nature Authority is power. Responsibility is the duty.

Delegation Authority can be delegated to others.

Responsibility cannot be delegated.

DISTINGUISH BETWEEN AUTHORITY AND RESPONSIBILITY ?

EXPLAIN VISION AND MISSION OF AN ORGANISATION ?

MISSION Mission is the statement of the role by which an organisation intends to serve it’s stakeholders.It describes why an organisation is operating and thus provides a framework within which strategies are formulated. The mission statement is formulated for it’s customers and clients.

VISION A vision statement identifies where the organisation wants Or intend to be in future or where it should be to the best needs of the stakeholders.A vision statement for the organisation and it’s employer’s.

The difference between a mission statement and a vision statement is that a mission statement focuses on a company’s present state while a vision statement focuses on a company’s future.

WRITE A NOTE ON SPAN OF CONTROL ?

Span of control is also known as span of supervision or span of management. Depicts number of employees that can be handled and controlled by a single manager. Two types are available : ▪ Wide span of control

In which a manager can supervise and control effectively a large group of persons at one time. ▪ Narrow span of control A manager can supervises a selected number of

employees at one time. Factors influencing span of control ▪ Managerial abilities : it concerns where managers are capable,

qualified and experienced.Hence wide span is suitable

▪ Nature of workIf work is repetitive nature wide span of

supervision is helpful.If work requires mental skills,tight control and

supervision ,narrow span is suitable. ▪ Delegation of authority

When work is delegated to lower levels in efficent way, confusions are less.Here also wide span of control is suitable. ▪ Degree of decentralisation

Decentralisation is done in order to achieve specialisation in which authority is shared by many people. Again wide span of control is needed.

▪ Competence of subordinates : Where subordinates are capable and competent and their understanding levels are proper. Hence wide span is suitable.

LONG ESSAYS

9 MARKS EACH

DISCUSS THE EVOLUTION OF SCIENTIFIC MANAGEMENT ?

Scientific management is a classical approach. Father of scientific management is Frederick Winslow Taylor. It is designed to focused on improving operational efficency at shop floor level. Taylor has defined scientific management as follows: “Scientific management is concerned with knowing exactly what you want men to do and then see in that they do it in the best and cheapest way.” ELEMENTS AND TOOLS OF SCIENTIFIC MANAGEMENT 1. Separation of Planning and Doing

▪ Planning should be left to the supervisor and the worker focused only on operational work. 2. Functional Foremanship ▪ Taylor advocated appointment of 8 foremen, 4 at the planning level & other 4 at implementation level.

▪ All of them give direction to workers on different aspects of work.

▪ It is against unity of command principle.

WORKSHOP MANAGER

PLANNING IN CHARGE

PRODUCTION IN CHARGE

ROUTE CLERK

Time & cost

Disciplinarian

Instruction card clerk

Gang boss

Repair boss

Inspector

Speed boss

Worker

3. Job Analysis ▪ To find out the best way of doing things,which

requires less movements, time and cost . ▪ Determined by Time-Motion-Fatigue study. Time study- time required to complete a movement. Motion study-check which parts involved in doing

job. Fatigue study-amount and frequency of rest

required in completing work. 4. Standardisation ▪ Standardisation made in respect of :-instruments

and tools,period of work,amount of work,working conditions,cost of productions etc.

5. Scientific Selection and Training of Workers ▪ Workers must be selected on the basis of their

education,work experience,aptitude,physical strength etc.

▪ provide adequate training for making them efficent. 6. Financial Incentives ▪ Introduce Differential Piece Rate System to

motivate workers for providing maximum effort.

▪ one who completes the work who got higher rate and one who doesn’t complete gets lower rate.

7. Economy ▪ Adequate consideration is also given to

economy and profit. ▪ Achieved by making resources more

productive and eliminating the wastages. 8. Mental revolution

▪ Scientific management depends on mutual co-operation of management and

workers. ▪ a complete mental revolution is needed

between workers and management for their proper working.

PRINCIPLES OF SCIENTIFIC MANAGEMENT 1. Replacing Rule of Thumb with Science ▪ Scientific method emphasize on precision and

rule of thumb emphasize on estimation. ▪ Scientific management measures various

aspects of work precisely and not on the basis of mere estimates.

2. Harmony in Group Action ▪ Unity is needed in group action rather than

discord.

3. Co-operation

▪ Scientific management needs co-operation rather than isolation.

▪ Co-operation between management and workers developed through mutual understanding and a change in thinking.

4. Maximum Output ▪ Advice them to increase the

surplus(means share profit with workers),So that mass production and more revenue will be occurred.

5.Development of Workers ▪ Workers should be developed to the

fullest extent for their own and company’s prosperity.

▪ adequate training made the workers fit into the new requirement of an organisation.

▪ There must be mutual give and take situation and proper understanding is needed to achieve more profit.

GIVE AN ACCOUNT OF EVOLUTION OF SCIENTIFIC MANAGEMENT BY GIVING CONTRIBUTION OF ANY 3 PIONEERS IN THE FIELD?Other persons who worked to develop scientific management were:- 1. Henry Gantt

● Develop graphic methods of depicting plans and making possible managerial control.

● Emphasized on the importance of time as well as ost in planning and controlling work.

● Led to the development of GANTT CHART.

● Forerunner of modern PERT(Performance, evaluation and review technique) technique. 2. Frank and Lillian Giberth

● Find out ‘ one best way of doing’ under the given set of realities.

● Also tried to look out at the problems of workers from social and psychological point of view.

3.Carl George Berth● He works with Taylor and later he developed his contribution.● Develop many mathematical

techniques and formulas to made Taylor’s idea’s into practice.

Discuss the evolution of scientific management .What are the contributions of Peter Drucker? Contributions of Peter Drucker ● Because of the background of psychology,sociology,law and journalism ,his contributions covers various approaches of management.● According to Peter F. Drucker, " Scientific management is the organized study of work, the analysis of work into its simplest element and the systematic improvement of the workers".

WHAT IS PLANNING ? EXPLAIN VARIOUS TYPES OF PLANS ? PLANNING ● Planning is a process involves future course of action,that is,why an action,what action,how to take action and when to take action. why of action implies the end result to be achieved. what of action implies activities to be undertaken. how and when generate various policies, programmes, procedures etc. ● According to Terry : “Planning is the selection and relating of facts and making and using of assumptions regarding the future in the visualisation and formalisation of proposed activities believed necessary to achieve desired result”. ● It involves the determination of objectives and selecting the best course of action which will lead to the achievement of the predetermined objectives. ● Planning is the preparatory step for actions and helps in bridging the gap between the present and the future.

TYPES OF PLANS ● A plan is a commitment of resources to a particular course of action believed necessary to achieve specific results. ● Planning process results into several individual plans which are bound together for consistent operation. ● Plans are classified into ways: 1. Standing and Single-use plans. 2. Strategic and Operational plan

STANDING AND SINGLE-USE PLAN

▪ Standing plans provide guidelines for further course of action and are used over a period of time. ▪ These plans operate long time unless there is a change in plans. ▪ Examples:-organisational mission and long term objectives,strategies,policies,procedures and rules.

▪ Single-use plans only relevant for a specified period of time.

▪ After the specified time this plan is generated for next period.

▪ Example:-projects,budgets,quotas,targets etc.

▪ Single-use plan derived from standing plans. Strategic and Operational plans

▪ Strategic plans defined as long term course of action for an organisation. ▪ It includes determination of organisational

objectives for long time period,major policies and strategies.

▪ Operational plans are used to implement strategies,both major and minor.▪ Examples of major operational plans are projects,budgets ▪ Examples of minor plans are in the form of

quotas and targets to be achieved within a specified period.

▪ Procedures are rules provide guidelines to put plans into action.

● The organisational plans are interlinked and arranged in hierarchy in which low order plan contributes to the achievement of the objectives of higher order plans.

Fig : Hierarchy of organisational plans

Mission or purpose

Objectives

Strategies

Policies

Procedures and rules

Programmes and projects

Budgets

Quotas and targets

Five fundamental functions of management

1. Planning

2. Organizing

3. Staffing

4. Directing

5. Controlling

WHAT ARE THE DIFFERENT FUNCTIONS OF MANAGEMENT ? DISCUSS EACH ONE OF THEM IN DETAIL ?

It is the basic function of management. Planning is deciding in advance–what to do,when to do and how to do.

Planning

Organizing

Organizing as a process involves:

Identification of activities

Classification of grouping of

activities

Classifying the authority

Co-ordination between authority

and responsibility

StaffingStaffing involves:

Manpower

Recruitment, selection and

placement

Training and development

Remuneration

Performance appraisal

Promotions and transfer

DirectingDirection has following

elements:

Supervision

Motivation

Leadership

Communication

ControllingControlling has following steps:

1. Establishment of standard

performance

2. Measurement of actual

performance

3. Comparison of actual

performance with the

standard performance

4. Corrective action

ORGANISATION STRUCTURE

Systematic arrangement of people working for the organisation.

It is the relationship among various activities and positions.

It provides an appropriate framework for authority and responsibility relationship.

Organisation structure is generally shown on a organisation chart.

EXPLAIN DIFFERENT TYPES OF ORGANISATION STRUCTURE ?

NEED FOR ORGANISATIONAL STRUCTURE Designed to achieve specific goals Fixing responsibility Establishment of authority Promotes division of labor and leads to

specialization

FORMS OF ORGANISATION STRUCTURE…

The classification of organisation structure is based on the way various activities are grouped to create departments and units, and prescribing their relationship in the organisation.

Types of organisation structures:-a. Lineb. Line and Staffc. Functionald. Divisionale. Projectf. Free-formg. Virtual

1.LINE ORGANISATION STRUCTURE

It is the simplest structure. Purely based on superior subordinate

relationship. There must be a single head to

command. An executive can delegate authority. Also known as scalar, military or vertical

structure.

Board of director

Managing Director

General Manager

Works Manager

Supervisor1 Supervisor2

Workers Workers

Fig:1

ADVANTAGES Simplicity Discipline Prompt Decision Orderly Communication Easy Supervision and Control Economical Overall Development of Managers

DISADVANTAGES Lack of specialization Absence of Conceptual Thinking Autocratic Approach Problems of Coordination Lack of Groundwork for Subordinates

Training

2.LINE AND STAFF ORGANISATION STRUCTURE It is pattern in which staff specialists

advise line managers to perform their duties.

i.e;advise is provided to line managers by staff personal who are generally specialists in their field.

Board of Director Secretary

Managing Director

Sales Account

General manager

PurchasePersonnel

Work Manager

Design Engineers

Industrial Engineers,Store Officials

Supervisor1 Supervisor2

W1 W2 W3 W4 W5 W5

Fig:2Legal Advisor

ADVANTAGES

Planned Specialization Quality Decisions Prospect for Personal Growth Training ground for personnel

DISADVANTAGES

Lack of Well defined Authority. Line and Staff Conflicts. High Production Cost.

3. FUNCTIONAL ORGANISATION STRUCTURE

It is adopted when business grows and expands same line of business.

It is widely used in medium and large orgsnisations having limited number of products.

It is created by grouping the activities on the basis of functions required for achievement of organasational objectives.

All functions are classified into basic, secondary, supporting functions according to their nature and importance.

Board of Director

ProductionProduction

FinanceMarketi

ngPersonn

el

Store

Purchase

Manufacturing

PackingSales Distributio

nPromotions

Advertisement

Discount

Rebate

Television Print Media

Retail

Wholesale

Fig:3

ADVANTAGES High degree of specialisation Order and clarity High degree of control and co-

ordinationDISADVANTAGES

Slow decision making Inter departmental conflicts

4.DIVISIONAL ORGANISATION STRUCTURE Growth through geographic and

product diversification necessitates the adoption of divisional structure.

Organisation is divided into several fairly autonomous units and has its own resources and it operates independently.

It also known as product structure or profit de-centralisation.

Board of Director

Corporate PlanningLegal Services

Research &Development

Finance

Consumer Division

Chemical Division

Electrical Division

Production

Manufacturing

FinancePersonnel

Fig:4

ADVANTAGES Each product or customer is able to get

specialized. It emphasises on product or end result. Performance measure is easier. Higher level of managerial motivation.

DISADVANTAGES

It is quite costly. Lack of managerial personal when a new division is opened.

5.PROJECT ORGANISATION STRUCTURE

In the project organisation structure, divisions are created only for the life time of a project.

It is organic-adaptive in nature.

Two forms:-

Pure project structure Matrix organisation structure

5.PROJECT ORGANISATION STRUCTURE

In the project organisation structure, divisions are created only for the life time of a project.

It is organic-adaptive in nature.

Two forms:-

Pure project structure Matrix organisation structure

i. PURE ORGANISATION STRUCTURE

It is suitable for taking smaller number of large projects with long duration so that separate division for can be created for each each project.

It is one-time task and is definable in terms of single, specific goal.

There is high degree of independence among the task.

It is infrequent, unique and unfamiliar to the organisation

General Manager

Project 1 Project 2

Quality

Control

ContractAdminist

ration

Engineering

Purchase

Scheduling

Q C C A E P S

Fig:5.1

Pure project organisation structure

ADVANTAGES It allows maximum use of specialized

knowledge. It enables the organisation to adapt to

environmental demands. Maximum utilization of resources. DISADVANTAGES

Lack of clarity among members about their roles in the organisation.

Insecurity and uncertainty among people in the organisation

Project manager faces numerous problems.

ii. MATRIX ORGANISATION STRUCTURE

It is suitable for taking large number of smaller projects and activities of varies projects can be accomplished through temporary departments.

It is essentially a violation of unity of command.

It is the realization of two dimensional structure.

It is the combination of pure project structure and functional structure .

Fig:5.2 Matrix organisation structure

ADVANTAGES It focuses resources on a single project and

should be completed within a specified time. It emphasis on professional competence by

elaborating authority of knowledge. It improves motivation.

DISADVANTAGES

There is always a power struggle. If matrix structure is not followed properly,

there is a delay in decision making . At the initial level it becomes quite costly.

FREE-FORM ORGANISATION

It is a rapidly changing,adaptive,temporary system organised around problems to be solved by group of relatively strangers with diverse professional skills.

A rigid time span or duration is non-existent. Roles performed in teams are

interchangeable. It is suitable for those industries which have

to work in highly dynamic environment. E.g;Task Force,Team,Committees

VIRTUAL ORGANISATION

It is to generate synergy through temporary alliances.

Virtual corporation is a temporary network of independent companies suppliers,customers,even erstwhile rivals linked by information technology to share skills,costs,and access to one another’s markets.

It will have neither central office nor organisation chart.

It will have no hierarchy, no vertical integration.

FEATURES

Technology Opportunism Excellence Trust No borders

EXPLAIN WHETHER MANAGEMENT IS AN ART OR SCIENCE IN DETAIL ?

Learning of science involves assimilation of principles and art involves its continuous practice. Science is a body of systematized knowledge accumulated and accepted with reference to the understanding of general truths concerning a particular phenomenon ,subject,or object of study. Features : ▪ Universally acceptance principles

Represent basic truth about a particular field of enquiry. ▪ Experimentation & Observation

Derived through scientific investigation and researching. ▪ Cause & Effect Relationship

Its lay down cause and effect relationship between various variables. ▪ Test of Validity & Predictability

It can be tested at any time or any number of times,each time the test will give the same result.

The meaning of art is related with the bringing of a desired result through the application skills.

Features : ▪ Practical Knowledge

Important to know practical application of theoretical principles ▪ Personal Skill

Each one has his own style and approach toward his job ▪ Creativity

It aims at producing something that never exist before. ▪ Perfection through practice

Practice makes a man perfect for handling the jobs ▪ Goal-Oriented

Every art is result oriented as it seeks to achieve concrete results To be a successful manager,a person requires the knowledge of management principles and also the skills of how the knowledge can be utilised.

SCIENCE ART

Advances by knowledge

Advances by practice

Proves Feels

Predicts Guesses

Defines Describes

Measures Opine

Impresses Expresses

Comparison between science and art as management

It can be seen that management uses both scientific knowledge and art in managing an organisation.

THANK YOU