12th Commerce CHAPTER 1: PRINCIPLES OF MANAGEMENT-Reduced syllabus book back Questions and Answer

I .VERY SHORT ANSWER QUESTIONS:

1.What is Management?

1.  Management is goal oriented and it is an art of getting things done with and through others. 
2. The practice of management helps to achieve the organizational mission and determines the future of the business enterprises.

2.List out the management tools.

1. Tools of management have been developed such as, accounting, business law, psychology, statistics, econometrics, data processing, etc.
2. These branches of management profession have enhanced the practical utility of the science of management.

3.Who is a manager?

•  According to P. Drucker, the manager has to balance and integrate three major jobs of a business enterprise as mentioned below 

(i) Managing a business;

(ii) Managing manager; and

(iii) Managing workers and work.

•  A manager is a dynamic and life-giving element in every business.

4.State the meaning of Authority.

1.  Authority means the right of a superior to give the order to his subordinates

5.What do you mean by Span of management?

1.  The Span of Management refers to the number of subordinates who can be managed efficiently by a superior.

II. SHORT ANSWER QUESTIONS: 

1. Define the term management. 

• “Management is a multipurpose organ that manages a business and manages manager, and manages worker and work.”

_ Peter F. Drucker

• “To manage is to forecast, to plan, to organise, to command, to co-ordinate and to control.”

—Henry Fayol.

2. Is management an Art or Science? 

1. Management combines features of both science as well as art. 
2. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. 
3. It is called an art because managing requires certain skills which are personal possessions of managers.

3. Differentiate management from Administration. 

4. What are the principles of Taylor? 

• Principles of scientific management propounded by Taylor are 
• 1. Science, Not Rule of Thumb 
• 2. Harmony, Not Discord 
• 3. Mental Revolution 
• 4. Cooperation, Not Individualism 
• 5. Development of each and every person to his or her greatest efficiency and prosperity.

5. What determines the span of management?

• The Span of Management refers to the number of subordinates who can be managed efficiently by a superior.The Span of Management has two implications: 
• 1. Influences the complexities of the individual manager‘s job 
• 2. Determine the shape or configuration of the Organization

III. Long answer questions: 

1. Explain the concept of management.

i. Body of Knowledge:

1. Management has now developed into a specialised body of management theory and philosophy. Management literature is growing in all countries.
2. In fact, management knowledge is the best passport to enter the world of employment.

ii. Management Tools:

1. Tools of management have been developed such as, accounting, business law, psychology, statistics, econometrics, data processing, etc. 

iii. Separate Discipline:

1.  Management studies in many universities and institutions of higher learning are recognised as a separate discipline. Since 1951, many specialised schools of management offering master‘s degree in business management and administration.

iv. Specialisation:

1.  There is a growing tendency to select and appoint highly qualified, trained and experienced persons to manage the business in each functional areas of management. Thus we have today an increasing tendency in favour of management by experts or professionals.

v. Code of Conduct:

1.  Enlightened businessmen have recognised that business management is a social institution and it has social responsibilities to be fulfilled — towards customers, employees, and the public or community. Corporations have now social conscience and awareness.
2. No longer ‘buyer beware’ is ruling the exchange relations in the market. At present ‘seller beware’ in place of ‘buyer beware’ influencing market practices.

vi. Professional Association:

1. The Business Management Associations in many countries to promote the spread of knowledge in all management areas and to build up the bright public image of managerial profession.

2. Explain the management process in detail. 

i.Management is Co-Ordination: 

1. The manager of an enterprise must effectively coordinate all activities and resources of the organisation, namely, men, machines, materials and money the four M‘s of management. 

ii.Management is a Process: 

1. The manager achieves proper coordination of resources by means of the managerial functions of planning, organising, staffing, directing (or leading and motivating) and controlling. 

iii.Management is a Purposive Process: 

• It is directed toward the achievement of predetermined goals or objectives. Without an objective, we have no destination to reach or a path to follow to arrive at our destination, 
• i.e., a goal, both management and organisation must be purposive or goal-oriented. 

iv.Management is a Social Process: 

1. It is the art of getting things done through other people.

v.Management is a Cyclical Process: 

1. It represents planning-action-control-re planning cycle, i.e., an ongoing process to attain the planned goals.

3. Describe the principles of scientific management. 

Mr.Frederick Winslow Taylor (F.W.Taylor) brought about a scientific approach.

i.Science, Not Rule of Thumb:

1.  Rule of Thumb means decisions taken by manager as per their personal judgments.
2.  According to Taylor, even a small production activity like loading iron sheets into box cars can be scientifically planned.
3. This principle is concerned with selecting the best way of performing a job through the application of scientific analysis and not by intuition or hit and trial methods.

ii.Harmony, Not Discord:

1. Both the management and the workers should realize the importance of each other.
2. Management should always be ready to share the gains of the company with the workers and the latter should provide their full cooperation and hard work for achieving organizational goals.

iii.Mental Revolution:

1.  Workers should put in their best efforts so that the company makes profit and on the other hand management should share part of profits with the workers.
2.  Thus, mental revolution requires a complete change in the outlook of both management and workers.

iv. Cooperation, Not Individualism:

1. Workers should be considered as part of management and should be allowed to take part in decision making process of the management.
2.  Workers should also resist from going on strike or making unnecessary demands from management.

v. Development of each and every person to his or her greatest efficiency and prosperity:

1. Efficiency of any organisation also depends on the skills and capabilities of its employees to a great extent.
2. To attain the efficiency, steps should be taken right from the process of selection of employees.
3.  The work assigned to each employee should suit his/her physical, mental and intellectual capabilities.

4.Explain the principles of modern management. (Any 6)

The Father of Modern Management is Mr.Henry Fayol, and according to him there 

are 14 major principles of management.

i.Division of Work:

1.  According to this principle the whole work is divided into small tasks. 
2.  It leads to specialization which increases the efficiency of labour.

ii.Authority and Responsibility:

1. Authority means the right of a superior to give the order to his subordinates whereas responsibility means obligation for performance.

iii.Discipline:

1.  It is obedience, proper conduct in relation to others, respect of authority, etc. 
2. It is essential for the smooth functioning of all organizations.

iv.Unity of Command:

1.  This principle states that each subordinate should receive orders and be accountable to one and only one superior.

1.  If an employee receives orders from more than one superior, it is likely to create confusion and conflict.

v.Unity of Direction:

1.  All related activities should be put under one group, there should be one plan of action for them, and they should be under the control of one manager.

vi.Subordination of Individual Interest to Mutual Interest:

1.  The management must put aside personal considerations and put company objectives firstly. Therefore the interests of goals of the organization must prevail over the personal interests of individuals.

vii.Remuneration:

1.  Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity. 

viii.The Degree of Centralization:

1.  Centralization implies the concentration of decision making authority at the top management, it depends on company size.

ix.Line of Authority/Scalar Chain:

1.  The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels.

x.Order:

1.  Social order ensures the fluid operation of a company through authoritative procedure. Material order ensures safety and efficiency in the workplace. Order should be acceptable and under the rules of the company.

xi.Equity:

1.  Employees must be treated kindly. Managers should be fair and impartial when dealing with employees, giving equal attention towards all employees.

xii.Stability of Tenure of Personnel:

1.  Stability of tenure of personnel is a principle stating that in order for an organization to run smoothly, personnel (especially managerial personnel) must not frequently enter and exit the organization.

xiii.Initiative:

1.  Using the initiative of employees can add strength and new ideas to an organization. Initiative on the part of employees is a source of strength for organization because it provides new and better ideas.

xiv.Esprit de Corps/Team Spirit:

1.  This refers to the need of managers to ensure and develop morale in the workplace; individually and communally. Team spirit helps develop an atmosphere of mutual trust and understanding. Team spirit helps to finish the task on time.

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