8115 - K.

RAMAKRISHNAN COLLEGE OF ENGINEERING

(AUTONOMOUS)
Samayapuram, Tiruchirappalli-62112

MG6851 – Principles of Management

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.
2 Marks

1. Define Management.
Management is to forecast and plan, to organize, to command, to coordinate and to
control”- H.Fayol.
2. Write the meaning of entrepreneur?
An entrepreneur is an individual who creates a new business, bearing most of the risks
and enjoying most of the rewards.
3. How is a manager different from an entrepreneur?
Manager - A manager is a person responsible for planning and directing the work
of a group of individuals, monitoring their work, and taking corrective actions when
necessary.
Entrepreneur - He is a person who establishes business unit and utilizes the other factors
of production like land, labour and capital.
4. Is management a science or an art?
It is called an art because managing requires certain skills which are personal possessions
of managers. Science provides the knowledge & art deals with the application of knowledge
and skills. A manager to be successful in his profession must acquire the knowledge
of science & the art of applying it.
5. List out the role played by manager in the organization.
Interpersonal roles Informational roles
Figurehead role, The recipient role,
The leader role, The disseminator role,
The liaison role. The spokesperson role.
6. What is organization culture?
Organizational culture is a system of informal rules that spells out how people have to
behave in most of the time.
7. Define partnership?
A partnership is an association of two or more persons to carry on business and to share its
profit and losses. The relation of a partnership arises from contract. The maximum number of
partners is limited to 10 in the case of banking business and 20 in the case of other business.
Ex: Chand & Co.
8. Distinguish between public and private limited companies.
Public limited company Private limited company
A Public limited company should have a A Private limited company is a company
minimum of 7 members and the maximum which has a minimum paid up capital as may
limit is unlimited. It can issue shares to the be prescribed. It can be incorporated with just
Public. The financial statement should be sent two persons. It can have a maximum of 50
to all the members and to the Registrar of members. It cannot go in for a public issue. It
Companies. The shares of a public limited restricts the transfer of its shares. It is
company can be transferred by the members particularly suitable for industrial ventures
to the others without any restriction by the which can get many concessions in respect of
company. Such transfers are made through income tax.
organized markets called ‘stock markets’ or Ex: M/s Key Media Pvt. Ltd.
‘stock exchanges’.Ex: M/s Pearl credits Ltd.
9. What are the functions of a manager? Specify the function of management.
 Planning
 Organizing
 Staffing
 Leading / Directing
 Controlling
10. Give the current trends in management.
i. Executing functions, doing function
ii. Decision within the framework set by the administration
iii. Middle level activity
PART-B

1. Is management a Science or Art? Discuss.

2. Classify business organizations? Explain.
3. Explain the fourteen principles of management advocated by Henry Fayol.
4. Write short notes on the current trends and challenges in management.
5. Elucidate the contributions of F.W.Taylor to management.
6. Enlighten the relevance of environment of environmental factors that affects global business.
7. Explain the different roles and functions of manager.
8. Explain the evolution of management in details
 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.

2Marks

1. Define planning.
According to KOONTZ, “Planning is deciding in advance – what to do, when to do &
how to do. It bridges the gap from where we are & where we want to be”.

2. What is the meaning of strategic management?

Strategic management involves setting objectives, analyzing the competitive
environment, analyzing the internal organization, evaluating strategies, and ensuring
that management rolls out the strategies across the organization.

3. Define strategy.
Strategy is defined as the determination of long-term objectives of an
organization, making the best choices for the future and allocating the resources
necessary to accomplish the objectives.
4. What are the techniques useful while evaluating alternatives?
The purpose of evaluating alternatives is to help the Planning Committee make
sound decisions about which management strategies they will advocate in the resource
plan. Alternatives are evaluated to determine their effectiveness in addressing the
concerns, taking advantage of opportunities, and meeting objectives in the planning area.

5. What is intuitive decision making?

Decision Making is defined as selection of a course of action from among
alternatives. It is a core of planning. A plan cannot be said to exist unless a decision – a
commitment of resources, direction or reputation has been made. Until that point, there is
only planning studies and analysis.
6. Define planning premises.
Planning premises are defined as the anticipated environment in which plans are
expected to operate. They include assumptions or forecasts of the future & known conditions
that will effects the operation of plans.
7. What are the various steps in planning?
 Awareness of opportunities and problems:
 Collecting and analysing information:
 Establishment of clear-cut objectives:
 Determining planning premises and constraints:
 Finding out the alternative courses of action.
 Determining secondary plans:
 Providing for follow-up and future evaluation
8. State the purpose of planning.
 Planning is obtaining a future course of action in order to achieve an objective.
 Planning is looking ahead.
 Planning is getting ready to do something tomorrow.
 Plan is a trap laid down to capture the future.

9. List out the planning tools available in business.

 The Affinity Diagram.
 The Tree Diagram.
 The Interrelationship Diagram.
 The Matrix Diagram.
 Prioritization Matrices.
 The Process Decision Program Chart (PDPC)
 The Activity Network Diagram.
10. Distinguish between Policy and Rules.
Policies are the aims and objectives of an organization that provide a framework for
the management to take decisions accordingly. Rules basically get derived from
these policies, but are dependent upon situation and often get changed. Rules are there to
allow smooth functioning in day to day operations.
11. List the steps in decision making process.
 Identify a problem or opportunity
 Gather information
 Analyze the situation
 Develop options
 Evaluate alternatives
 Select a preferred alternative
 Act on the decision
12. What is meant by policies?
Policy is a statement and predetermined guideline that provides directions for decision
making and taking action.
Policies may be based upon a thorough analysis of objectives and it should be
consistent with the company’s mission and philosophy.
13. Define MBO.
MBO (Management by Objectives) is a method whereby clear objectives for every
department, project and person are jointly set by superior and subordinates. MBO
integrates the organizational objectives and individual objectives.

PART-B
1. What are the importances or objectives of planning? Illustrate how you will set
objective of manufacturing organization. Explain the steps involved in planning
process.
2. Explain briefly about the decision making steps and process.
3. Explain the various tools and techniques in strategic planning.
 4. Classify the types of Goals organizations might have and plans they used for
accomplishment.
5. Define MBO and the process of MBO.

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.

PART-A
1. What do mean by formal organization?
The relationship between members in the organizational structure is well defined.
It has clear and definite organizational structure. Individual goals are consistent with the
organizational goals.
2. What is Job Design?
It is the division of the work to be performed into manageable and efficient units,
positions, departments and divisions and to provide for their proper integration.
3. What is Line Authority?
Line authority is the power given to someone in a supervisory position to
mandate actions by subordinates. ... Examples of managers within a business who
have line authority are the controller, engineering manager, production manager, and
sales manager.
4. What is Selection?
It is the process of choosing the most suitable worker for the job
5. Distinguish between Authority and Power.
Power is the ability of individuals or groups to induce r influence the beliefs or
actions of other persons or groups. Authority in organization is the right in a position to
exercise discretion in making decisions and affecting others.
6. What is meant by Centralization?
Centralization or centralization (see spelling differences) is the process by which the
activities of an organization, particularly those regarding planning and decision-making,
framing strategy and policies become concentrated within a particular geographical
location group.
7. What is meant by delegation of authority?
Delegation of authority is the process that allows the transfer of authority from
superior to subordinates. Delegation is the process through which a manager assigns
duties to employees and gives them authority to carry out the tasks.
8. Why Performance management is important?
An effective performance management system helps HR managers establish clear
performance expectations through which employees can easily understand what is
expected of their job. It allows managers to reinforce individual accountability to meet
their goals and evaluate their own performance for employees.
9. Define Career Management.
Career management is the combination of structured planning and the active
management choice of one's own professional career. ... The outcome of successful career
management should include personal fulfillment, work/life balance, goal achievement and
financial security.
10. What do you understand by organizational chart?
An organizational chart is a diagram of an organization's structure. It will show
the job titles and patterns of authority in the organization. It is a useful tool to figure out
an organization's hierarchy. The top of the chart will depict the highest level of the
hierarchy.
11. Define Organization.
Louis Allen, “Organization is the process of identifying and grouping work to be
performed, defining and delegating responsibility and authority and establishing
relationships for the purpose of enabling people to work most effectively together in
accomplishing objectives.”
12. What do you mean by Decentralization?
Decentralization or decentralisation (see spelling differences) is the process by
which the activities of an organization, particularly those regarding planning and decision
making, are distributed or delegated away from a central, authoritative location or group.

PART-B
1. Explain the different types of line and staff organization, and mention its Merits and
Demerits.
2. Illustrate the steps in the Recruitment Process.
3. Explain the types of organizations. Mentioning its advantages and disadvantages.
4. Describe the 6 key elements in organizational design.
5. Discuss the tasks associated with identifying and selecting competent employees.
6. In detail explain the nature and purpose of organization.
7. Explain in detail about the HR planning.
8. Explain the different types of organizational structure followed by the companies.
9. Describe the HRM activity in a business organization.
10. Distinguish between training and development and explain the various methods of
training.
11. Explain line and functional organizational structures with their advantages and
limitations.
12. Explain briefly about the various types of departmentation.
13. Discuss the types of centralization.
14. Explain about the organizational culture.

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.

PART-A

1. Outline the meaning of motivation.

Motivation is defined as “those forces operating within the individual employee or
subordinate which impel him to act or not to act in certain ways”
Scott defines motivation as the process of stimulating people in action to
accomplish desired goals.
2. What is the meaning of leadership?
Leadership is the process of influencing the behavior of others towards the
accomplishment of goals in a given situation. Leadership is the ability to influence others and
enthusiastically making them to achieve the desired results.
3. What is job enrichment?
It is the process of increasing the vertical scope or the depth of the job is known as job
enrichment.

4. List the Difference types of communication flow.

 Based on communication flow downward, upward, horizontal, vertical
communication
 Based on channel: formal and grapevine communication.
 Based on expression: written, oral, Non - verbal communication.

5. What are the advantages of democratic leadership styles?

 The subordinates are motivated by participation in decision – Making process. This
will also increase job satisfaction
 Absence of leader does not affect output
 Labour absenteeism and turn – over will be minimum
 The quality of decision is improved
 The leader multiplies his abilities through the contribution of his followers.

6. What is brain storming?

Brainstorming is a group creativity technique by which efforts are made to find a
conclusion for a specific problem by gathering a list of ideas spontaneously contributed
by its members.
7. What is meant by downward communication?
Downward communication is the flow of information and messages from a higher
level inside an organization to a lower one.
8. What are the various steps leadership styles?
 Transformational Leadership
 Servant Leadership.
  Democratic Leadership.
 Autocratic Leadership.
 Bureaucratic Leadership.
 Laissez-Faire Leadership.
 Charismatic Leadership.

9. What is personality?
Personality is defined as the characteristic sets of behaviors, cognitions, and
emotional patterns that evolve from biological and environmental factors.
10. What is job satisfaction?
It is the result of various attitudes the employee holds towards his job.
11. What do you mean by the term noise in communication?
Anything which affects the communication process is known as noise. It is any
factor that disturbs or interferes with communication.
12. What are the elements in the Maslow’s Hierarchy of needs?
There are five elements of needs they are: physiological, safety, love and belonging
(social), esteem, and self-actualization.
13. What is effective communication?
Effective communication is defined as verbal speech or other methods of relaying
information that get a point across..An example of effective communication is when the
person who you are talking to listens actively, absorbs your point and understands it.
PART-B
1. Summarize the methods of motivating employees in organization.
2. Explain the characteristics of good communication and also state its barriers.
3. Describe the stages group development process.
4. What is effective communication? List out and explain the barriers and how to
overcome the communication.
5. Compare and contrast early theories of motivation.
6. Explain in detail about the various types of leadership with its different styles.
7. Define motivation and explain the theories of motivation.
8. What are the essential qualities of a good leader?
9. Discuss how the communication through electronic media is helping for effective
communication.
10. Difference between motivation and satisfaction.

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.
PART-A
1. Interpret the meaning of controlling.
Controlling is a process by which managers evaluate how well the organization is
achieving its goals and take corrective action to improve its performances.
2. Name at least four budgetary control techniques. April/May 2019
 Financial Budgets,
 Operating Budgets,
 Zero Base Budgeting (ZBB)
 Non-Monetary Budgets.
3. What is budgetary control?
It is the establishment of budget relating the responsibilities of executives to the
continuous comparison of actual with budgeted results either secure by individual action
of the objective of that policy or to provide a bases for revision.
4. What are the purposes of PERT?
PERT stands for Program Evaluation Review Technique. PERT charts are tools
used to plan tasks within a project - making it easier to schedule and coordinate team
members accomplishing the work. PERT charts were created in the 1950s to help
manage the creation of weapons and defense projects for the US Navy.
5. What are the characteristics of control function?
the characteristics of control function is to control the performs at all levels. Like
checking, testing, regulating, verifying to keep things on track.
6. What is performance appraisal?
Performance appraisal is the system of measuring Employee performance and
giving feedback to the employee regarding his performance.
7. What are the various steps in the controlling process? Nov/Dec 2018
 establishment of standards
 measurement of performance
 comparing performance with the slandered
 taking corrective action
8. What is preventive control in management?
Preventative controls are designed to be implemented prior to a threat event and
reduce and/or avoid the likelihood and potential impact of a successful threat event.
Examples of preventative controls include policies, standards, processes, procedures,
encryption, firewalls, and physical barriers.
9. Why controlling is important.
Controlling helps managers monitor the effectiveness of their planning,
organizing, and leading activities. Thus it is so important for organization.
10. What do you understand by productivity?
It is defined as the ratio of output produced to the input resources utilized in
production.
11. A. What are the uses of computer in handling information?
 Telecommunication & electronic devices
 Internet
 E-commerce
 M-commerce
12. . What are the uses of computer in management control?
Managers use computers for a variety of reasons, including keeping their teams
on track, budgeting and planning projects, monitoring inventory and preparing
documents, proposals and presentations.
13. Discuss productivity problems in a management.
 External factors like size of market, laws and customs
 Internal factors like machines and tools.
14. Name any two HR related controlling techniques.
 Personal observation
 Break-even analysis,
 Ratio analysis

Part-B (16 Marks)

1. Explain any four non-budgetary control techniques with suitable examples.
2. Explain the effects of globalization and liberation in improving organization growth.
3. Explain the steps involved in the quality control process with advantages and
disadvantages.
4. What is the difference between direct control and preventive control? Give an overview of
popular overall direct control measures.
5. Explain the use of computers in handling information to increase productivity.
6. Explain the term productivity and the means of increasing productivity in an organization.