Principles of Management - Complete syllabus PDF

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Dear Bcom (Regular) Students & CA Students,These notes are a summarized version of questions prepared fromthe past papers. These notes are mainly for revision purposes.Guess paper is also provided.Do not wholly and solely depend on them.It has a coverage from 2010 to 2014 (Regular).Good luck for...

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Dear Bcom (Regular) Students & CA Students,

These notes are a summarized version of questions prepared from the past papers. These notes are mainly for revision purposes. Guess paper is also provided. Do not wholly and solely depend on them. It has a coverage from 2010 to 2014 (Regular). Good luck for your exams. Regards, Sanam Alam

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Guess Paper 1) Define management. State briefly the universal functions of a manager. 2) Define planning. Discuss briefly the various steps involved in planning. Importance of Planning. Barriers in Planning. 3) Define staffing. Describe briefly the various steps involved in staffing. 4) Define groups. How they grow? And how they flow? Types of Groups. 5) Explain policies, rules and procedures in detail. 6) Define decision making. State the guidelines of decision making. What is rational decision making? Limitations of Rational Decision Making. 7) What is MBO? What are its characteristics and its objectives? 8) Define motivation and list various theories of motivation. 9) What is communication? What are the steps involved in communication? barriers to comm. 10) Explain briefly the phases of control. State the characteristics of a good control system. 11) Define Leadership. Types of Leadership. Qualities of a leader. Leadership styles. Difference between Leader and a Manager. 12) Notes a) Orientation & Training and Performance Appraisal. b) William. G. Scot’s 4 pillars of organization c) Budget & its types d) Mc Gregor’s X & Y theory e) Span of management f) Hawthorn effect, Elton Mayo’s human relations theory g) Management audit h) Henry Fayol’s 14 principles of management i) Role of Frederick. W. Taylor in management j) Nominal group technique & Delphi technique k) Abraham Maslow’s theory of humanistic approach about human need l) 5 c’s of communication. m) Line, Staff and Functional Organization. n) Monetary and Non Monetary Incentives which can be used to motivate employees. o) Staffing and its Process p) Coordination PREPRAPED BY: SANAM ALAM

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Q1. FW Taylor – Management thoughts (2010, 2013)  There should be a science for every element of work  There should be technical training for workers  Worker should be scientifically selected  Give incentives along with wages to satisfy the worker  Cooperation between workers and management  There should be division and departments to enable specialization

Q2. Qualities of a Manager – Henri Fayol (2010, 2012, 2014) These are the five functions of management 1. Planning 2. Organizing 3. Commanding 4. Coordinating 5. Controlling Managerial Qualities:  Healthy mind  Educated  Sound health and physique  Well experienced  Good morales  Self-Motivation  Integrity  Optimism  Confidence  Flexibility

Q3. Steps involved In problem solving (2010, 2012, 2013)  Definition of the problem  Determine the Root Cause(s) of the Problem  Develop Alternative Solutions  Select a Solution  Implement the Solution  Evaluate the Outcome

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Q4. Guidelines for making effective decisions (2010, 2012)        

Collect and understand the facts Consult your feelings Use wise timings Do not infer too much Get the right means of communication Keep the decision flexible Follow through Have courage

Q5. Planning (2010, 2011, 2012, 2013, 2014) Planning: A basic management function involving formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources. The planning process (1) identifies the goals or objectives to be achieved, (2) Formulates strategies to achieve them, (3) Arranges or creates the means required, and (4) Implements, directs, and monitors all steps in their proper sequence. Various steps of planning process:       

Develop objectives Develop tasks to meet those objectives Determine resources needed to implement tasks Create a timeline Determine tracking and assessment method Finalize plan Distribute to all involved in the process

Importance (1) (2) (3) (4) (5) (6)

Planning Provides Direction Planning Reduces Risks of Uncertainty Planning Reduces Overlapping and Wasteful Activities Planning Promotes Innovative Ideas Planning Facilitates Decision Making Planning Establishes Standards for Controlling

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Limitations/barriers:  Fear  Short-sightedness  Negativity  Communication Barriers  Poor Leadership  Lack of Creativity  Failure to integrate plans  Unsystematic planning  All managers not involved  Over ambitious planning  Planning not matched with practice  Inadequate information

Q6. Policies. Guidelines for policy making (2010) Policy: A policy is a deliberate system of principles to guide decisions and achieve rational outcomes. A policy is a statement of intent, and is implemented as a procedure or protocol. Guidelines for policy making:  Policies must enhance profitability through customer satisfaction  They must reflect organization’s objectives, goals, mission and vision  Flexible and dynamic  Not vague  Shouldn’t leave any grey area

Q7. Basic elements/principles of organizing (William G scotts) (2010, 2012, 2014)  Division of labour (specialization)  Scalar chain or functional process (effective chain of command)  Span of control (number of persons a manager could directly manage)  Structure (grouping of employees and departments helps in doing effective and efficient supervision and outcome)

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Q8. Span of management and factors that have influence over it (2010, 2013, 2014) Span of management: Also known as span of control or span of supervision. The number of subordinates which can be handled by a manager. Factors determining the span of management:  Subordinate training  Delegation of authority  Planning  Rate of change  Use of objective standards  Communicating techniques  Personal contract  Facility of staff assistance Required factors:  Training possessed by subordinates (they will need less help of the manager)  Business dynamics and complexity (more complex, more need of manager is needed)  Effectiveness of communication  Effective Time utilization Q9. Upward and downward communication (2010) Downward Communication 1. Implementation of goals, strategies, and objectives. 2. Job instructions and rationale. 3. Procedures and practices. 4. Performance feedback. 5. Socialization. Upward Communication 1. Problems and exceptions. 2. Suggestions for improvement. 3. Performance reports. 4. Grievances and disputes. 5. Financial and accounting information. Q10. Steps to control organizational activities (2010, 2014)  Establishing Standards  Assessing performance  Correcting deviations from standards or plans

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Q11. Characteristics of a good control system (2010, 2013) 1. Accuracy 2. Timeliness 3. Flexibility 4. Acceptability 5. Economic feasibility 6. Strategic placement

Q12. Groups. (2010, 2011, 2012) “A group of two or more people created to achieve a common goal” Types:  Command group  Interest group  Task group  Friendship group Ranks:  Leader  Status seeker leader  Followers How do groups grow  Mutual acceptance  Decision making participation Reasons for formation:  Physical causes  Economic reasons  Security needs  Social needs  Esteem needs  Self-actualization needs

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Q13. Various theories of motivation (2010, 2014) Motivation: Motivation actually describes the level of desire employees feel to perform, regardless of the level of happiness. Employees who are adequately motivated to perform will be more productive, more engaged and feel more invested in their work. When employees feel these things, it helps them, and thereby their managers, be more successful. Theories:  X & Y theory  Theory Z  Classical theory  Two factor theory  The need theory  Human relation theory  Process theory Q14. Characteristics of Maslow’s self-actualized person (2010)  Accept the way things are easily  Social  Efficient judges of situation  Creative  Self-reliant and confident  Willing to learn from others Q15. Name theories of leadership & briefly explain (2010, 2011, 2012, 2013)  Trait theory The traits approach gives rise to questions: whether leaders are born or made; and whether leadership is an art or science. However, these are not mutually exclusive alternatives. Leadership may be something of an art; it still requires the application of special skills and techniques. Even if there are certain inborn qualities that make one a good leader, these natural talents need encouragement and development. A person is not born with self-confidence. Self-confidence is developed, honesty and integrity are a matter of personal choice, motivation to lead comes from within the individual, and the knowledge of business can be acquired. While cognitive ability has its origin partly in genes, it still needs to be developed. None of these ingredients are acquired overnight 

Situational theory o S1: Telling o S2: Selling o S3: Participating o S4: Delegating.

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Follower theory This theory is developed by F.H.Sanford. According to his theory, the subordinates or members of the group accepts a person a leader who is always determined to meet their expectations, hopes and aspirations, demands etc and fulfill their personal grievances.

Q16. Orientation and training (2010, 2012, 2013) Orientation: It is mostly used to signify a peep and deep understanding of the company and making a sort of overall understanding of company’s business and its trends and tendencies, past, present and future perspectives. Training: It means imparting and educating managerial members for better skills and efficient working. Methods of training:  Lecture  Cases  Role playing  Self-development

Q17. Short notes 1. Hawthrone effects (2010) The Hawthorne effect (also referred to as the observer effect) is a type of reactivity in which individuals modify or improve an aspect of their behaviour in response to their awareness of being observed.[1][2] The original research at the Hawthorne Works in Cicero Illinois on lighting changes and work structure changes such as working hours and break times were originally interpreted by Elton Mayo and others to mean that paying attention to overall worker needs would improve productivity. Later interpretations such as that done by Landsberger suggested that the novelty of being research subjects and the increased attention from such could lead to temporary increases in workers' productivity. This interpretation was dubbed “the Hawthorne effect.”

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2. Henri Fayol & Principles of management (2010, 2011, 2012, 2013) He contributed a lot of written work on management and literature. His theory on principles of management has still importance today. He worked on the principles of division of labour and divided an industry into 6 functional group of activities (Technical or production, commercial, financial, business security, accounting, managerial). According to him, managerial activities centres around 5 things (planning, organizing, commanding, co-ordinating, controlling functions) a. b. c. d. e. f. g. h. i. j. k. l. m.

Division of Authority Discipline Unity of Command Unity of Direction. Subordination of Individual Interests to the General Interest Remuneration. Centralization Scalar Chain Order Equity Stability of Tenure of Personnel Initiative Esprit de Corps

3. Barriers to communication (2010, 2014) use of jargon barriers and taboos. of attention, interest, distractions, or irrelevance to the receiver. in perception and viewpoint. disabilities such as hearing problems or speech difficulties. barriers to non-verbal communication. differences and the difficulty in understanding unfamiliar accents. and prejudices which may lead to false assumptions or stereotyping. differences.

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4. MBO (2010, 2011, 2012, 2013) The principle of MBO is for employees to have a clear understanding of their roles and the responsibilities expected of them, so they can understand how their activities relate to the achievement of the organization's goals. MBO also places importance on fulfilling the personal goals of each employee. Proponents argue that benefits of MBO include: 1. Motivation 2. Better communication and coordination Clarity of goals 3. Subordinates tend to have a higher commitment to objectives they set for themselves than those imposed on them by another person. 4. Managers can ensure that objectives of the subordinates are linked to the organization's objectives. 5. Common goal for whole organization means it is a unifying, directive principle of management. Process: 1. Define organizational goals 2. Define employees objectives 3. Continuous monitoring performance and progress 4. Performance evaluation 5. Providing feedback 6. Performance appraisal

5. Types of budgets (2010, 2011, 2013)  Revenue and expenses budget  Time, space, material, product budgets  Capital expenditure budgets  Cash budgets  Balance sheet budgets 6. Delegation of authority (2011, 2013) A person who delegates the authority should have the following attitude:  Willingness to forgive the subordinate’s mistakes  Establishing and using controls  Receptiveness  Willingness to trust  Willingness to let go

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7. Performance appraisal (2011, 2014) A performance appraisal is a systematic and periodic process that assesses an individual employee's job performance and productivity in relation to certain pre-established criteria and organizational objectives. The process by which a manager or consultant (1) examines and evaluates an employee's work behavior by comparing it with preset standards, (2) documents the results of the comparison, and (3) uses the results to provide feedback to the employee to show where improvements are needed and why. Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired.

8. Phases of control (2012)  Pre control phase (activities done to control the problem from occurring. Take timely action)  Concurrent control phase (it takes place while activity continues. It’s a maintaining phase)  Post control phase (it is the poorest approach and is costly as it requires to fix the problem after it has occurred)  Correction phase (after the problem has occurred and damage has been done, this is the phase where it is fixed and healed) 9. Co ordination (2012, 2013)  Co ordination through planning  Co ordination through organizing  Co ordination through staffing  Co ordination through directing  Co ordination through controlling 10. Break even analysis (2012) Break-even analysis is a business tool widely used across all industries to evaluate business performance in terms of costs, since this is a supply-side analysis. Break-even analysis is an important aspect of a good business plan, since it helps the business determine the cost structures, and the number of units that need to be sold in order to cover the cost or make a profit. Break-even analysis is usually done as part of a business plan to see the how practical the business idea is, and whether or not it is worth pursuing. Even after a business has been set-up, break-even analysis can be immensely helpful in the pricing and promotion process, along with cost control. Simply put, break-even point can be determined by calculating the point at which revenue received equals the total costs associated with the production of the goods or services. Break-even Point = Fixed Costs/ (Unit Selling Price – Variable Costs)

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11. Types of plans commonly used in management (2014)  Mission or purpose  Strategy  policies 12. merits and demerits of decentralization (2014) Advantages of Decentralisation: 1. Reduces the burden on top executives: 2. Facilitates diversification: 3. To provide product and market emphasis: 4. Executive Development: 5. It promotes motivation: 6. Better control and supervision: 7. Quick Decision-Making:

Disadvantages of Decentralisation:

1. Uniform policies not Followed: 2. Problem of Co-Ordination: 3. More Financial Burden: 4. Require Qualified Personnel: 5. Conflict:

Q18. Importance of management and statements related to management (2011)  It provides guidance in solving problems of an organization  It provides effectiveness to human efforts and makes them fruitful  It facilitates the achievement of desired objectives with least possible cost  It provides framework for planning and organizing human skill and knowledge  It encourages joint and co ordinated efforts  It helps in making improvements in working process in its ever changing processes  It arranges rational use of resources (men, money, material)

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Q19. Difference between Nominal Group Techniques & Delphi Techniques (2011) The NGT offers a more immediate result which can then be refined through additional meetings as necessary. The Delphi, adaptive to networked data calls, is conducive to gathering a wider and more reflective response however the technique is more time and labor intensive. Though the intent and goals are similar, each approach has its supporters and critics. NGT DT Session time limit Process stopped based upon predefined criteria Each member writes their ideas in free form Each member completes a questionnaire and comments No discussion, questions, or clarification Participants are physically separated allowed Participants do not initially consult or discuss Participants remain anonymous their ideas with others Each member reads aloud their idea Facilitator provides an anonymous summary of the each members’ contribution Each member in turn states one idea Participants remain anonymous Wording may be changed only when the idea’s Participants may change their earlier answers originator agrees One round in one session Two or more rounds over longer duration Similar to up or down vote, therefore may be May be better for more significant issues better for more narrow problems because of more time to research and respond

Q20. Decision making process (2011, 2014) Step 1: Identify the decision to be made. Step 2: Gather relevant information Step 3: Identify alternatives Step 4: Weigh evidence Step 5: Choose among alternatives. Step 6: Take action. Step 7: Review decision and consequences Q21. Explain the terms 1. Rules (2011) Authoritative statement of what to do or not to do in a specific situation, issued by an appropriate person or body. It clarifies, demarcates, or interprets a law or policy. Statement that establishes a principle or standard, and serves as a norm for guiding or mandating action or conduct. Rules may be divided into four general categories: (1) Folklore: Unpublished rules that are conveyed by behaviour and are implicitly understood. (2) Guidelines: Commonly published and recommended practices that allow some discretion with their interpretation and use. (3) Mandates: Published commands that may not be ignored in any circumstance and whose violation is punished. (4) Policies: Published rules that imply a predicted behaviour and whose violation may be permitted or tolerated under certain circumstances. PREPRAPED BY: SANAM ALAM

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2. Procedures (2011) A fixed, step-by-step sequence of activities or course of action (with definite start and end points) that must be followed in the same order to correctly perform a task. Repetitive procedures are called routines. An established, habitual, logical, or prescribed practice or systematic process of achieving certain ...