Principles of Management Course Guide
Principles of Management Course Guide
MANAGEMENT
MG6851 PRINCIPLES OF MANAGEMENT
OBJECTIVES:
To enable the students to study the evolution of Management, to study the functions and
principles of management and to learn the application of the principles in an organization .\
UNIT I
INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS
Definition of Management – Science or Art – Manager Vs Entrepreneur - types of managers -
managerial roles and skills – Evolution of Management – Scientific, human relations , system
and
contingency approaches – Types of Business organization - Sole proprietorship, partnership,
company-public and private sector enterprises - Organization culture and Environment – Current
trends and issues in Management.
UNIT II
PLANNING
Nature and purpose of planning – planning process – types of planning – objectives – setting
objectives – policies – Planning premises – Strategic Management – Planning Tools and
Techniques
– Decision making steps and process.
UNIT III
ORGANISING
Nature and purpose – Formal and informal organization – organization chart – organization
structure
– types – Line and staff authority – departmentalization – delegation of authority – centralization
and
decentralization – Job Design - Human Resource Management – HR Planning, Recruitment,
selection, Training and Development, Performance Management , Career planning and
management.
UNIT IV
DIRECTING
Foundations of individual and group behaviour – motivation – motivation theories – motivational
techniques – job satisfaction – job enrichment – leadership – types and theories of leadership –
communication – process of communication – barrier in communication – effective
communication –
communication and IT.
UNIT V
CONTROLLING
System and process of controlling – budgetary and non-budgetary control techniques – use of
computers and IT in Management control – Productivity problems and management – control
and
performance – direct and preventive control – reporting.
TOTAL: 45 PERIODS
OUTCOMES :
Upon completion of the course, students will be able to have clear understanding of
managerial
functions like planning, organizing, staffing, leading & controlling and have same basic
knowledge on international aspect of management
TEXTBOOKS:
1. Stephen P. Robbins & Mary Coulter, “Management”, 10 th Edition, Prentice Hall (India) Pvt. Ltd.,
2009.
2. JAF Stoner, Freeman R.E and Daniel R Gilbert “Management”, 6th Edition, Pearson Education,
2004.
REFERENCES:
1. Stephen A. Robbins & David A. Decenzo & Mary Coulter, “Fundamentals of Management”
7th Edition, Pearson Education, 2011.
2. Robert Kreitner & Mamata Mohapatra, “Management”, Biztantra, 2008.
3. Harold Koontz & Heinz Weihrich “Essentials of management” Tata Mc Graw Hill, 1998.
4. Tripathy PC & Reddy PN, “Principles of Management”, Tata McGraw Hill, 1999. OBJECTIVES:
UNIT I
INTRODUCTION TO MANAGEMENT AND ORGANIZATION
PART A
1. Define Management
Management is the process of designing and maintaining an environment in which individuals,
working together in groups efficiently to accomplish selected aims.
Improves Understanding
Direction for Training of Managers
Guide to Research in Management
Management is an activity
It applies economic principles
It is an integrating process
It is an interdisciplinary approach
It is dynamic not static
Top-Level Management
Middle-Level Management
Lower – Level Management
Top management lays down the objectives and broad policies of the enterprise
The top management is also responsible towards the shareholders for the performance of
the enterprise.
Controls & coordinates the activities of all the departments
Prepares strategic plans & policies for the enterprise
They execute the plans of the organization in accordance with the policies and directives
of the top management.
They make plans for the sub-units of the organization.
They participate in employment & training of lower level management.
They evaluate performance of junior managers.
They are also responsible for inspiring lower level managers towards better performance.
Planning
Organizing
Staffing
Directing
Controlling
Authoritarian Manager is one who is the sole decision maker for his management unit
and prefers his subordinates to perform their tasks exactly as outlined by him.
This type of manager makes work easier for the employee as the latter knows exactly what is
expected of him/her and the way in which the task is to be performed.
Democratic Manager is that person who believes in majority consensus and takes any
decision only after consulting his/her subordinates.
This type of manager displays participative management style by allowing his subordinates'
participation in the decision-making process.
Paternalistic manager is the one who acts like a parent figure to his subordinates and
makes sure to regularly bond with his subordinates to listen to their professional issues
and lend a helping hand to ease their operational difficulties.
Laissez Faire Manager communicates the tasks to be performed by his subordinates and
sets targets and deadlines for the completion of such tasks.
Scientific Management is an art of knowing exactly what you want your men to do and seeing
that they do it in the best and cheapest way.
It is a technique which enables the manager to ascertain standard time taken for
performing a specified job.
This technique is based on the study of an average worker having reasonable skill and
ability.
Motion Study observes movement of body and limbs required to perform a job are
closely observed.
It refers to the study of movement of an operator on machine involved in a particular
task.
Motion study increases the efficiency and productivity of workers by cutting down all
wasteful motions.
This system is a source of incentive to workers who improving their efficiency in order to
get more wages.
It also encourages inefficient workers to improve their performance and achieve their
standards.
It leads to mass production which minimizes cost and maximizes profits.
Business is owned and run by one person only. Even though he can employ people, he is
still the sole traderof the business.
Demerits:
Unlimited liability.
No continuity, no legal identity.
Partners can disagree on decisions, slowing down decision making.
If one partner is inefficient or dishonest, everybody loses.
Private Limited Companies have separate legal identities to their owners, and thus their owners
have limited liability. The company has continuity, and can sell shares to friends or family.
Organizational culture is the behavior of humans within an organization and the meaning
that people attach to those behaviors.
Culture includes the organization's vision values, norms, systems, symbols, language,
assumptions, beliefs, and habits.
Clan culture
Adhocracy culture
Market oriented culture
Hierarchy culture
Division of Labor
Party of Authority & Responsibility
Unity of command
Unity of Direction
Equity
Order
Discipline
Initiative
Fair Remuneration
Stability of Tenure
Scalar Chain
Sub-Ordination of Individual Interest to General Interest
Espirit De’ Corps
Centralization & De-Centralization
The chain of superiors ranging from the ultimate authority to the lowest.
Every orders, instructions, messages, requests, explanation etc. has to pass through Scalar
chain.
It refers to team spirit i.e. harmony in the work groups and mutual understanding among
the members.
Spirit De’ Corps inspires workers to work harder.
Decentralization means disposal of decision making authority to all the levels of the
organization.
It means sharing authority downwards from top to bottom management.
Sole Proprietorship
Public Limited Company
Private Limited Company
Partnership
Organization values may be guiding principles of behavior for all members in the
organization.
Values reflect what is important in the organization
It may be stated on the organization's website.
37. List out the visible elements of organization culture.
Artifacts
Stories, histories, myths, legends, jokes
Rituals, rites, ceremonies, celebrations
Heroes
Symbols and symbolic action
Beliefs, assumptions and mental models
Attitudes
Rules, norms, ethical codes, values
Organizational Values
Organizational Beliefs
Organizational Norms
Task Environment
General Environment
Task Environment of an organization is the environment which directly affects the organization
from attaining business goals.
Suppliers
Distributors
Customers
Competitors
44. List down the major Elements and Forces of General Environment
Economic forces
Technology forces
Socio-cultural forces
Political-legal forces
International forces
Owners
Board of Directors
Employees
Physical Environment
Culture
Multinational corporations (MNCs) are business entities that operate in more than one
country.
Normally functions with a headquarters that is based in one country, while other facilities
are based in locations in other countries.
Worldwide operation
Create maximum operation
Advanced Technology
High Efficiency
Monopolistic Market
Product / Service Organization
Ethnocentric companies
Polycentric companies
Regio-centric companies
Geo-centric / global companies
PART – B
1. Analyze the various management functions in detail.
2. Explain in detail about Henry Fayol’s contribution towards classical approach in
management. (Nov/Dec 2006), (April/May 2013), (May/June 2016) (Nov/Dec 2018)
(MG8951) (Reg. 2017)
3. Discuss the principles and techniques of scientific management formulated by F.W. Taylor.
4. Distinguish between administration and management.
5. Discuss – Is management science or art. (Nov/Dec 2006), (April/May 2007), (May/June
2016) (MG6851) (Reg. 2013)(MG 8591) (Nov/Dec 2019)
6. Explain the roles and social responsibility of a manager.
7. Discuss the relative importance of each type of the skills to lower, middle and upper level
managers.
8. Explain in detail the evolution of management thought. (May/June 2016) (Nov/Dec 2019)
(MG8951) (Reg. 2017)
9. Classify the types of business organization.
10. Analyze the various types of environment which affect business organizations. (Nov/Dec
2012) (April/May 2015) (MG8951) (Reg. 2017)
11. Discuss in detail about organization culture.
12. Analyze the strategies for international business. (April/May 2017) (MG8951) (Reg. 2017)
13. Outline the tactics in managing global business.
ASSIGNMENT TOPICS
1. Discuss why it’s important to study management.
2. Analyze the rewards and challenges of being a manager.
3. Elaborate an organization using the systems approach.
4. Explain how the contingency approach is appropriate for studying management.
5. Identify the seven dimensions of organizational culture.
6. Discuss the impact of a strong culture on organizations and managers.
7. List out the components of the specific and general environments.
8. Contrast multinational, multidomestic, global and transnational organization.
9. Classify the different ways organizations can go international.
10. Discuss the challenges of doing business globally in today’s world.
11. Discuss whether organizations should be socially involved.
12. Discuss what conclusion can be reached regarding social involvement and economic
performance.
13. Discuss specific ways managers can encourage ethical behavior.
14. Justify manager’s important role in encouraging ethical behavior.
15. Discuss how business can promote positive social change.
UNIT II
PLANNING
PART-A
1. Define Planning.
Planning is a process to develop a strategy to achieve desired objectives, to solve problems, and
to facilitate action.
Formal Planning exists in the formal hierarchy of the organization and is always carried
out in the stepwise process
Informal Planning is usually carried out in very small organizations where the formal
organization structure may or may not exist.
9. Define Objectives.
Management by Objectives (MBO) is a process in which a manager and an employee agree upon
a set of specific performance goals, or objectives, and jointly develop a plan for reaching them.
Superior-subordinate participation
Joint goal-setting
Joint decision on methodology
Makes way to attain maximum result
Support from superior
Objectives Policies
Objective decide what to do Policy decides how to do.
Objectives determine the final goal of Policies are framed to achieve the
the enterprise objective efficiently.
Objectives decide the specific job to be Policies decide the procedures to be
done adopted for completion of the job
Objectives are the target and aims Policies are the means and manner of
planning. achieving objectives.
Policies guide top management in decision making, while procedures guide employees
into action.
Policies leave some room for managerial discretion, while procedures are detailed and
rigid
Policies are an integral part of organizational strategies, while procedures are tactical
tools
Policies are generally formulated by top management, while procedures are laid down at
lower organizational levels in line with policies
Business-level strategies are generally developed by upper and middle-level business unit
managers, in negotiation on key targets with the top corporate managers, and are intended to help
the organization achieve its corporate level strategy.
Functional or business process strategies address issues usually faced by lower-level managers
and deal with strategies for the major organizational functions such as marketing, finance,
production, and research, which are considered important to achieving the business strategies and
enabling the corporate-level strategy.
Integration Strategies
Intensive Strategies
Diversification Strategies
Defensive Strategies
Planning premises are identified as the anticipated environment in which plans are
expected to operate.
Planning premises are the critical factors which lay down the boundary for planning
Strategic management is that set of managerial decisions and actions that determines the long-
run performance of an organization. It entails all of the basic management functions--planning,
organizing, leading, and controlling.
35. List out the tools and techniques to measure Strategic Management.
SWOT Analysis
BCG Matrix
Porter’s Five Force Model
Gap Analysis
Balance Score-Card
A scan of the internal and external environment is an important part of the strategic planning
process. Environmental factors internal to the firm usually can be classified as strengths (S) or
weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats
(T).
The BCG matrix, developed by the Boston Consulting Group, is a strategy tool to guide
resource allocation decisions based on market share and growth of SBUs (Small Business Units).
Gap analysis is a tool that organizational managers can use to work out the size, and sometimes
the shape, of the strategic tasks to be undertaken in order to move from its current state to a
desired, future state.
Balanced Scorecard enables organizations to bridge the gap between strategy and actions,
engage a broader range of users in organizational planning reflects the most important aspects of
the business, and respond immediately to progress, feedback and changing business conditions.
Decision making is the process of identifying and selecting a course of action to solve a
specific problem
Decision making involves the selection of a course of action from among two or more
possible alternatives in order to arrive at a solution for a given problem.
Programmed/Structured Decisions
Non-programmed /Unstructured Decision
Rational decision making is a precise, analytical process that companies use to come up
with a fact-based decision.
PART – B
1. Discuss the steps involved in planning. (April/May 2017) (MG8951) (Reg. 2017) (13
Marks)
2. Analyze the various steps to perform decision making process. (May/June 2016) (Nov/Dec
2016) (April/May 2017) (MG8951) (Reg. 2017)
3. Explain the importance and purpose of decision making.
4. Classify the types of decisions.
5. Explain the features and importance of planning.
6. Explain in detail about MBO.
7. Classify the types of planning in detail.
8. Discuss the features of objectives and guidelines for objective setting.
9. Classify the different types of strategies.
10. Discuss in detail about policy, procedure, rules and method, program, projects, schedule and
budgets.
11. Analyze the planning tools and techniques for strategic management.
ASSIGNMENT TOPICS
1. Define Organization
Organization is harmonious adjustment of the specialized parts for the accomplishment of
some common purpose or purposes
An identifiable group of people contributing their efforts for the attainment of the
common goals is called organization.
Organization is the establishment of authority and relationships with provision for
coordination between them, both vertically and horizontally in the enterprise structure.
Co-ordination
Delegating authority
Sense of security
Job definition
Management growth
Personal growth
3. List out the steps in the process of organizing function.
Division of work
Departmentation
Linking departments
Assigning Duties
Defining hierarchal structure
It is absolutely non-individual.
It is predetermined and deliberately created.
It is created on the basis of delegation of authority.
It does not consider the emotional aspect.
Division of labor and specialization becomes possible.
Organization charts are followed.
Informal organization is any human group interactions that occur spontaneously and
naturally over long period of time.
Informal organizations are formed on the basis of individual relations, communication,
general knowledge.
In line organization, the line of authority moves directly from the top level to the lowest
level in a step-by-step manner.
Here the top-level management takes all major decisions and issues directions for actual
execution.
A product structure is based on organizing employees and work on the basis of the
different products.
Product structure groups employees together based upon specific products produced by
the company.
Departmentation by function
Departmentation by product
Departmentation by process
Departmentation by geography
Departmentation by customer
Departmentation by time
Departmentation by number
Span of Control in management and administration thus refers to the total number of
people whom a manager or an administrator can effectively control and supervise.
Span of control means the number of subordinates whom a superior (manager or
administrator) can effectively supervise.
Decentralization denotes the transfer of authority from the higher level to the lower level.
Decentralization of authority means dispersal of decision-making power to the lower
level of the organization.
Centralization Decentralization
Environment is stable Environment is complex, uncertain
Lower-level managers are not as capable or Lower-level managers are capable and
experienced at making decisions as upper-level experienced at making decisions.
managers.
Lower-level managers do not want to have say Lower-level managers want a voice in
in decisions decisions.
Decisions are significant. Decisions are relatively minor.
Delegation of authority is meant by assigning jobs to others and giving rights to execute
them.
Delegation of authority merely means the granting of authority to subordinates to operate
within prescribed limits.
Responsibility
Authority
Accountability
Responsibility may be defined as the obligation of a subordinate to whom the duty has
been assigned to perform.
Responsibility is the obligation of a subordinate to perform the duty as required by his
superior
Authority is the right to give orders to and the power to extract obedience from the
subordinates.
Authority is the sum of powers and rights entrusted to make possible the performance of
the work delegated.
Accountability denotes answerability for the accomplishment of the task assigned by the
superior to his subordinates.
Accountability is the obligation of an individual to keep his superior informed of his use
of authority and accomplishment of the assigned task.
Authority Responsibility
It is the right of the manager to It is the obligation of the subordinate to
command his subordinates. complete the assigned work.
It arises due to the position of It arises due to superior-subordinate
superior. relationship.
It flows from top to bottom. It flows from bottom to top.
It has longer period as compared to It gets completed with the completion of
responsibility. the task so has the shorter period.
36. Distinguish between responsibility and accountability.
Responsibility Accountability
It is the obligation of the subordinate It is the answerability to the superior for
to complete the assigned work. the performance of the work.
With delegation of the authority, the With delegation of the authority, the
new responsibility is created at each new responsibility is not created at any
level. level.
It arises due to superior-subordinate It originates with the delegation of
relationship. authority.
Job Design is the process of deciding on the contents of a job in terms of its duties and
responsibilities.
Job Design aims at outlining and organizing tasks, duties and responsibilities into a single
unit of work for the achievement of certain objectives.
Job design is a continuous and ever evolving process that is aimed at helping employees
make adjustments with the changes in the workplace.
To create and utilize an able and motivated workforce, to accomplish the basic
organizational goals.
To attain an effective utilization of human resources in the achievement of organizational
goals.
To strengthen and appreciate the human assets continuously by providing training and
development programs.
Recruitment refers to the overall process of attracting, selecting and appointing suitable
candidates to one or more jobs within an organization, either permanent or temporary.
To attract people with multi-dimensional skills and experiences that suits the present and
future organizational strategies.
To induct the outsiders with a new perspective to lead the company.
To seek out non-conventional grounds of talent.
To design entry pay that competes on quality but not on quantum.
Management Consultants
Public Advertisements
Campus recruitment
Recommendations
Deputation personnel
Selection refers to the process by which qualified applicants are selected by means of various
tests in pre-determined numbers, out of large number of applicants.
Staffing is the process of acquiring, deploying, and retaining a workforce of sufficient quantity
and quality to create positive impacts on the organization’s effectiveness.
It should take into account the interest of both employer and employees
It should be complete in every respect
It should be simple and precise
It should be reasonably stable and permanent
It should be flexible.
Manpower requirements
Recruitment
Selection
Orientation and Placement
Training and Development
Remuneration
Performance evaluation
Promotion and Transfer
To make the new entrant feel comfortable with the company on the first day.
To brief the new entrant on Company’s culture and provide necessary understanding of
Corporate History, Vision, Goals, and Values and Beliefs of the Organization.
To introduce the new comer to people working in various departments and also to
familiarize with the functions and processes of various departments and their
interrelationship.
On-the-job training
Off-the-job training
Coaching
Mentoring
Job Rotation
Job Instruction Technology
Apprenticeship
Understudy
To analyze and review the performance of employees over a specified period of time
To see the gap between the actual and desire performance of the employees
To help management team on how to exercise organizational control
360 degree performance appraisal is a method that employees will give confidential and
anonymous assessments on their colleagues.
Career planning is a sequence of separate but related work activities that provide
continuity, order and meaning to a person’s life.
Career planning is the occupational positions a person has had over many years.
80. List down the need for career planning and management.
Development stage
Exploration stage
Establishment stage
Ageing stage
Declination stage.
PART – B
1. Explain in detail importance, process, nature and purpose of organizing.
2. Discuss the objectives and features of formal and informal organization with merits and
demerits.
3. Distinguish between formal and informal organization. (Nov/Dec 2013), (May/June
2016) (MG6851) (Reg. 2013) (16 Marks)
Classify the different types of organization charts. . (Nov/Dec 2016) (MG6851) (Reg. 2013)
(13 Marks)
4. Outline the different types of organization structure with their advantages and
disadvantages.
5. Classify the types of departmentation and explain its importance. (Nov/Dec 2016)
(MG6851)
6. Discuss in detail about span of control.
Analyze the factors affecting centralization/Decentralization. Also highlight the merits and
demerits of centralization/Decentralization. (Nov/Dec 2016) (MG6851) (Reg. 2013) (8
Marks)
7.
8. Define delegation of authority. Discuss in detail about importance, types, elements and
process of delegation of authority. Give suggestion for making delegation effective.
9. Discuss in detail about job design.
10. Explain in detail about job analysis.
11. Classify the functions of human resource management in detail.
12. Explain in detail about human resource planning.
13. Analyze the various sources of recruitment.
14. Explain the objectives and process of recruitment.
15. Analyze the steps in selection process. (April/May 2017) (MG6851) (Reg. 2013) (13
Marks)
16. Explain in detail about orientation.
17. Classify the methods of training in detail.
18. Explain the objectives and importance of training and development.
19. Classify the methods of performance appraisal.
20. Explain in detail about performance management.
21. Discuss the various career planning and management stages.
ASSIGNMENT TOPICS
1. Explain how centralization-decentralization and formalization are used in organizational
design.
2. Discuss each of the five forms of departmentalization
3. Contrast mechanistic and organic organization.
4. Explain the contingency factors that affect organization design.
5. Discuss the organizational design challenges that managers face today.
6. Analyze the contemporary organizational designs.
7. Discuss the environment factors that most directly affect the HRM process.
8. Explain why the HRM process is important.
9. Discuss the major sources of potential job candidates.
10. Discuss the different selection devices and which work best for different jobs.
11. Analyze why orientation is so important.
12. Classify the different types of training and how each type of training can be provided.
13. Analyze the factors that influence employee compensation and benefits.
14. Discuss how managers can manage downsizing.
15. Discuss how organizations are controlling HR costs.
UNIT IV
DIRECTING
PART-A
2. What is personality?
Personality is a set of distinct characteristics of an individual.
Some people tend to be emotional, others intellectual, bold or timid, hesitant or confident,
reserved or social, etc.
Personality is shaped from heredity and culture and environment, which lead to
personality traits.
3. What is heredity?
Heredity refers to those factors that were determined at conception (expectancy time of a
female), for instance, physical stature/ structure, facial attractiveness, skin color, hair color,
muscles composition, energy level, height, built, sex/ gender, temperament, and so on.
Extraversion
Agreeableness
Conscientiousness
Emotional stability
Openness to experience
5. What is locus of control?
Some people believe they are masters of their own fate/ destiny, and other believes in
luck or chance.
Individuals who believe that they control what happens to them are called “internals” and
the individuals who believe that what happens to them is controlled by outside forces,
such as luck or chance are called “externals”.
6. What is Self-Esteem?
It is the ability to measure one’s own performance against some performance standards or
benchmarks. Such people offer better results.
It’s a type of conditioning in which desired behavior leads to a reward or prevents a punishment.
Positive reinforcement
Negative reinforcement
Punishment
Extinction
Punishment for undesired behavior can result in verbal or written reprimands, pay cuts,
loss of privileges, lay offs, and termination.
Extinction is the withdrawal of reinforcement or the behavior that was rewarded earlier
or reinforced in any way becomes extinguished.
A group is defined as two or more individuals, interacting and interdependent, who have come
together to achieve particular objectives.
Formal group
Informal group
Command group
Task group
Interest group
Group structure is a pattern of relationships among members that hold the group together and
help it achieve assigned goals.
Cohesiveness refers to the bonding of group members and their desire to remain part of the
group.
Group dynamics deals with the attitudes and behavioral patterns of a group.
Group dynamics concern how groups are formed, what is their structure and which
processes are followed in their functioning. Thus, it is concerned with the interactions
and forces operating between groups.
Forming
Storming
Norming
Performing
Adjourning
Conflict is a process in which one party perceives that its interests are being opposed or
adversely affected by one or more other parties.
Motivation is the set of forces that cause people to choose certain behaviors from among
the many alternatives open to them.
Motivation is defined as the incentive that is given for inspiration to accomplish
something.
Motivation is what drives a person to participate in an organization.
Theory Y managers believe employees really want to like to work and would love to
have their work be meaningful.
Theory Y presents an optimistic view of the employees’ nature and behavior at work.
Physiological Needs
Security / Safety Needs
Social Needs
Esteem Needs
Self-actualization Needs
Refers to emotional orientations which people hold with respect to outcomes (rewards) – the
value the person attaches to first and second order outcomes.
Refers to employees’ different expectations and levels of confidence about what they are capable
of doing – the belief that effort will lead to first order outcomes.
Refers to the perception of employees whether they will actually receive what they desire, even
if it has been promised by a manager – the perceived link between first order and second order
outcomes.
Intrinsic rewards are the positive feelings that the individual experiences from
completing the task e.g. satisfaction, sense of achievement.
Extrinsic rewards are rewards emanating from outside the individual such as bonus,
commission and pay increases.
Morale can be defined as the total satisfaction derived by an individual from his job, his work-
group, his superior, the organization he works for and the environment. It generally relates to the
feeling of individual’s comfort, happiness and satisfaction.
Job enrichment is a motivational technique which emphasis the need for challenging and
interesting work.
Job enrichment allows the employee control in planning their work and deciding
authority how to complete it.
Skills variety
Task identity
Task significance
Autonomy
Feedback
Leadership is the ability to persuade others to seek defined objectives enthusiastically. It is the
human factor which binds a group together and motivates it towards goals.
Reliability
Training
Loyalty
Sureness
Adaptability
Enthusiasm
Initiates action
Motivation
Providing guidance
Creating confidence
Building morale
Builds work environment
Co-ordination
Manager Leader
A person becomes a manager by virtue of his A person becomes a leader on basis of his
position. personal qualities.
Manager has got formal rights in an organization
Rights are not available to a leader.
because of his status.
The groups of employees whom the leaders lead
The subordinates are the followers of managers.
are his followers.
A manager performs all five functions of Leader influences people to work willingly for
management. group objectives.
It is more stable. Leadership is temporary.
Legitimate power
Charismatic power
Expert power
Reward power
Coercive power
Political power
Autocratic
Democratic
Laissez-faire
Transformational
Transactional
46. Outline the Theories of leadership
Communication is the exchange and flow of information and ideas from one person to
another.
Communication acts as a source of information and helps in the decision making process
and helps in identifying the alternative course of action.
Face-to-Face
Email
Telephone
Upward communication is the vertical communication flows form lower level to one or
more higher levels in the organization.
Upward communication travels from subordinates to superiors and continues up the
organizational hierarchy
Downward communication occurs when information and messages flow down through
an organization's formal chain of command or hierarchical structure.
52. Distinguish between upward and downward communication
Memos
Reports
Bulletins
Job descriptions
Employee manuals and
Electronic mail
Facial expressions
Body movements and postures
Gestures
Eye contact
Touch
1. Define Controlling.
Controlling is a systematic exercise which is called as a process of checking actual performance
against the standards or plans with a view to ensure adequate progress and also recording such
experience as is gained as a contribution to possible future needs.
It is an end-function
It is a pervasive function
It is forward looking
It is dynamic process
It is related with planning
Feed-Forward Controls
Concurrent Controls
Feedback Controls
Observation
Statistical report
Break-Even Point
Operational Audit
Financial statements
Management information systems
Management Audit
Return of Investment
Responsibility Accounting
Network techniques
7. Define Budget
Sales Budget
Production Budget
Production Cost Budget
Raw Materials Budget
Purchases Budget
Budgetary control is the process of developing a spending plan and periodically comparing
actual expenditures against that plan to determine if it or the spending patterns need adjustment
to stay on track.
Zero-based Budgeting requires managers to start at zero for each budget period and
justify every input and output when developing the budget.
Zero Based Budgeting is a cost-benefit analysis for all decision-making in an
organization.
Break-even analysis is a useful tool to study the relationship between fixed costs, variable
costs and returns.
Break-even analysis computes the volume of production at a given price necessary to
cover all costs.
Higher profit
Employee welfare
Good credit rating
Goodwill
Better credit terms
Low Turnover
Production control refers to ensuring that all which occurs is in accordance with the rules
established and instructions issued.
Planning
Routing
Scheduling
Dispatching
Follow Up and Expediting
Inspection
Cost control, also known as cost management or cost containment, is a broad set of cost
accounting methods and management techniques with the common goal of improving business
cost-efficiency by reducing costs, or at least restricting their rate of growth.
Hand-to-mouth purchasing
Scheduled Purchasing
Tender Purchasing
Group Purchasing
Speculative Purchasing
Preventive Maintenance
Reactive Maintenance
Also known as planned maintenance, aims to forecast when failures are likely to occur, and to fix
the problem before it occurs, at a time that is convenient to both production and maintenance.
Often known as unplanned or corrective maintenance, occurs where the plant is allowed to run
until something fails; after which it is repaired.
Overall equipment effectiveness (OEE) is the key metric in determining how well
equipment is performing.
OEE measures equipment effectiveness in terms of availability, performance, and product
quality.
Quality control (QC) is a procedure or set of procedures intended to ensure that a manufactured
product or performed service adheres to a defined set of quality criteria or meets the
requirements of the client or customer.
Reporting is that part of management control system which provides different information to
management at regular interval. Management reporting is the instrument for making control and
decision effective.
Internal Reporting
External Reporting
The report should present true and fair view of the business affairs.
Report should serve the basic purpose for which it is prepared.
The report should be simply written.
A report should be in a proper format and must contain appropriate content.
ASSIGNMENT TOPICS
1. Analyze the reasons control is important in an organization.
2. Interpret how balanced scorecards and benchmarking are used in controlling.
3. Discuss why control is important to customer interactions.
4. Examine how managers may have to adjust controls for cross-cultural differences.
5. Interpret workplace concerns and how they might be controlled.
6. Analyze the manager’s role in improving productivity.
7. Discuss technology’s role in manufacturing.
8. Interpret mass customization and how operations management contributes to it.
9. Discuss the strategic role of operations management.
10. Contrast manufacturing and service organization.
11. Analyze the concept corporate governance.