Long Questions & Answers part- II

Ques. 7. - Define departmentation? Explain the various basis of depart- mentation?
Ans. - According To ―KOONTZ and O‘DONNELL‖ –
-―Departmentation is a process of dividing the large monolithic functional organization into smaller and flexible administrative units‘‘.
- ―The process of classifying an organization on the basis of departments or similar activities, to facilitate planning and control‘‘.
- Is the method of grouping jobs and resources into departments?
Types of Departmentation:
1. Functions, e.g., sales, production, personnel, planning, transport, etc.
2. Products, e.g., air-conditioners, accounting machines, electronic calculators, etc.
3. Territory, region, or geographical area, e.g., Northern Railway, Western Railway, N.E. Railway, etc.
4. Customer, e.g., wholesaler, retailer, government.
5. Process.
　
6. Appropriate combination of any of these types.
Departmentation by Function –
Employees with similar jobs (functions) are grouped together.
Under this all the function of similar nature are divided in different units which are called department.
E.g. production, financing, marketing and human resources.
Product/Customer wise Departmentation –
• Employees who work on a particular product (or group of customers) are grouped into one department.
• Product departmentation can be used by organizations which produce several different product lines. E.g., It has several different divisions to manage their different businesses.
• Customer departmentation can be used by organizations that serve different groups of customers with different needs. E.g. a bank may have separate departments for personal accounts and business accounts.
Territorial or Geographical Departmentation –
• An organization is divisionalised according to geographical areas or territories in which it operates.
• Suitable to large scale firm whose activities are physically or geographically dispersed e.g. banks, insurance companies etc
• Employees who work in a particular geographic region are grouped into one department.
Departmentation by Customers –
• This method of departmentation is adopted in that business concern who have to deal with various types of customer.
• For E.g.:- wholesale trade, retail trade, export trade.
Departmentation by Matrix –
• This method of departmentation is useful for those business concerns whose functions go on changing frequently.
　
• For E.g.: - An engineering company daily gets order to manufacture new machinery. Similarly, a Construction Company gets contracts for building big buildings, roads, bridge, etc.
Ques. 8. - Write notes on:
i) Graicunas theory
ii) Decision tree
iii) Brain storming
Ans. -
i) Graicunas theory -
Graicunas, a French management consultant has suggested the fixation of number of subordinates based on mathematical calculation. He analyzed the superior-subordinate relationship and developed mathematical formula. He identified three types of relationship:
• Direct single relationships--- n
• Direct group relationships--- n(2*n-1-1)
• Cross relationships---- n(2*n/2+n-1)
If a manager has two subordinates, there are 6 potential relationships to manage. However, if the manager's subordinates are increased to three, then the number of relationships is increased to 15.As the number of relationships increased, Graicunas argued, the sheer number of interactions would exceed the abilities of the manager.
ii) Decision tree -
Decision tree is a predictive model; that is mapping of observations about an item to conclusions about the items target value. It is also a descriptive mean for calculating conditional probabilities. Decision Tree can be described also as the synergy of mathematical and computing techniques that aids description, categorization and generalization of a given set of data.
Types of decision tree -
Classification tree: classification tree analysis, is a term used when predicted outcome is the class to which the data belongs
Regression tree: Regression tree analysis is a term used when the predicted outcome can be considered a real number
CART: Used to refer to both of the above procedures

no
yes
no
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no
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Is the
Alternative
satisfactory
Drop the alternative
Drop the alternative
Will the
alternative
have positive
effect
iii) Brain storming:-
o Originally adopted by Alex Osborn in 1938.
o According to Osborn, brainstorming means using the brain to storm the problem.
o The idea behind brainstorming is to generate as many ideas as possible, suspending evaluation until all of the ideas have been suggested.
o In a brainstorming session, 6 to 10 people sit and discuss the problem.
o The group leader states the problem in a clear manner.
o No criticism is allowed.
o All the alternatives are recorded for later discussion and analysis.
It is a creative technique of generating ideas to solve a problem.
The main result of a brainstorm session may be a complete solution to the problem.
Unusual ideas are encouraged. the ideas are combined and improved idea is developed
Ques. 9. - What is decentralization? What are the various factors influencing the centralization and decentralization?
Ans. - Decentralization -
Decentralization is the policy of delegating decision making authority through out the organization, relatively away from central authority.
As per ALLEN;
―Decentralization refers to the systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central points.‖
Factors
Centralization -
Stable environment.
Low capability of lower level managers to take decision as top level managers.
Decisions are significant.
Company is large.
Organization is facing a crises or the risk of company failure.
Decentralization -
Environment is complex, uncertain.
Lower-level managers are capable and experienced at making decisions.
Decisions are relatively minor.
Corporate culture is open to allowing.
Company is geographical dispersed.
Ques. 10. - Explain strategic planning and its steps involved in this process. What is tactical planning?
Ans. –
Strategy -
Strategy is a pattern of objectives, purposes, or goals, stated in such a way as to define what business the company is in or to be in and the kind of company it is or is to be.
In the words of ROBERT ANTHONY
―Strategic planning is the process of deciding on the objectives of the organization, on changes in these objectives, on the resources used to attain objectives and on the policies that will govern the acquisition, use and disposition of these resources.‖
► Strategic plans
 Apply broadly to the entire organization.
 Establish the organization‘s overall objectives.
 Seek to position the organization in terms of its environment.
 Provide direction to drive an organization‘s efforts to achieve its goals.
 Serve as the basis for the tactical plans.
 Cover extended periods of time.
 Are less specific in their details.
Steps involved in this process -
1. Identification of mission and objectives.
2. Environmental scanning.
3. Strategy formulation.
4. Strategy implementation.
5. Evaluation and control.
This process is most applicable to strategic management at the business unit level of the organization. In the process outlined here, ―company‖ or ―firm‖ will be used to denote a single business firm or a single business unit of a diverged firm.
► Tactical plans (operational plans)
 Apply to specific parts of the organization.
 Are derived from strategic objectives.
 Specify the details of how the overall objectives are to be achieved.
 Cover shorter periods of time.
 Must be updated continuously to meet current challenges.
Ques. 11. - Explain the Managerial Roles.
Ans. - Managerial Roles are:
 A role is a set of specific tasks a person performs because of the position they hold.
　
 Roles are directed inside as well as outside the organization.
 There are 3 broad role categories:
1. Interpersonal
2. Informational
3. Decisional
1. Interpersonal Roles - Roles managers assume to coordinate and interact with employees and provide direction to the organization.
• Figurehead role: symbolizes the organization and what it is trying to achieve.
• Leader role: train, counsel, mentor and encourage high employee performance.
• Liaison role: link and coordinate people inside and outside the organization to help achieve goals.
2. Informational Roles - Associated with the tasks needed to obtain and transmit information for management of the organization.
• Monitor role: analyzes information from both the internal and external environment.
• Disseminator role: manager transmits information to influence attitudes and behavior of employees.
• Spokesperson role: use of information to positively influence the way people in and out of the organization respond to it.
3. Decisional Roles - Associated with the methods managers use to plan strategy and utilize resources to achieve goals.
• Entrepreneur role: deciding upon new projects or programs to initiate and invest.
• Disturbance handler role: assume responsibility for handling an unexpected event or crisis.
• Resource allocator role: assign resources between functions and divisions, set budgets of lower managers.
• Negotiator role: seeks to negotiate solutions between other managers, unions, customers, or shareholders.
Ques. 12. – Define Management and distinguish it from Administration?
Ans. – Management - ―Management is the art of getting things done through & with the people in formally organized groups.‖
By ‗Koontz‘
Or,
The process of using organizational resources to achieve the organization‘s goals by...
Planning, Organizing, Leading, and Controlling.

Ques. 13. - Who was the father of scientific management? What is his principle?
Ans. - Frederick Winslow Taylor was the father of scientific management. He contributed towards the concept of scientific management. He also enriched the management with few principles & some scientific techniques. He was an American Engineer who sought to improve industrial efficiency.
Principle of scientific management-
a) Science not rule of thumb :- It means the replacement of old method of doing work scientifically. The work performed by each worker should be clearly determined. It included the allotment of fair work to each worker.
b) Harmony in group activity :- Frederick Winslow Taylor has emphasized peace friendship in group action. In other words, dissatisfaction of any worker is to be avoided in the group action.
c) Cooperation :- The responsibility of both the worker and management should be clearly defined and predetermined. There should not be overlapping of responsibility. Mutual understanding is necessary.
d) Maximum output :- Maximum output is achieved through division of work and assumption of responsibility by the management and workers jointly. Maximum output result in the increasing profit to the management and wages and bonus to the workers.
e) Improvement of workers :- Under scientific management, all the workers should be given opportunity to improve to the fullest extent possible.
Ques. 14. - Describe the types of planning?
Ans. - Planning - The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.
Or,
Determining organizational goals and a means for achieving them
Or,
Thinking before doing….
Types of Planning
Planning is of several kinds depending upon their nature. The various types of plans are as follows:
(a)Financial and non-financial planning - Financial planning relates to the monetary aspect of the concern. On the other hand, non-financial planning relates to the physical resources of the concern.
(b)Formal and informal planning - A planning in black and white is known as formal planning. Informal planning is only thinking about it and nothing more.
(c)Short-range and long-range planning - Short-term planning relates to a period of less than one year. It is to accomplish objectives in the near future. Medium-term planning covers a period of over one year but less than three years. A planning between three to five years is known as long-term planning.
(d)Standing and ad hoc planning - Standing plans are permanent in nature and are meant to be used over and over again. They ensure quick decision and action whenever need arises. On the other hand, ad hoc plans are generally for specific matters and are prepared only when some need arises.
(e)Administrative and operational planning - Planning is generally done at various levels of management like top level, middle level, and lower level. Administrative planning associates with middle level managers and provide guidelines to operational planning. On the other hand, operational planning associates with lower levels of management and deals
with actual execution of operations. Top level planning is concerned with fixing of objectives.
Ques. 15. - State the steps or process of planning?
Ans. –
Koontz and O‘Donnell have defined planning in terms of future course of action. They state ―that Planning is the selection from among alternatives for future courses of action for the enterprise as a whole and each department within it.
Following steps are involved in the process of the planning:
1. Identification of area of study – the first & foremost step in planning process is to identify the area of study for which management wants to work.
2. Collection & analysis of data – Sufficient information must be collected in order to make the plans & sub-plant. The collection & forecasting of information should be done in terms of external & internal environment.
3. Setting of objective: Once data is collected, objectives are set. Objectives provide direction to various activities in the enterprise. All the other functions of a manager are based on this crucial step.
4. Establishing planning premised.
5. Searching alternative – Usually there are several alternative for any plan. The planner must find out all the possible alternatives.
6. Comparing & selecting the best among them- comparing must be made on the basis of cost, long –rang objectives, limited resources, expected pay back, risk & other intangible factors.
7. Formulating derivative course of action.
8. Implementation.
9. Follow up.

Ques. 16. - Write Short Notes on
a) Delphi Technique
b) Rational Decision Making
c) NGT
d) Decisions Scenario analysis
e) Group Aided Decisions
Ans. –
a) Delphi Technique
Decisions are made through written communication in the questionnaire. it is a structured approach.
A panel of experts is surveyed as a result the predictions were made with the time frame.
The result is resubmitted to the experts who then estimate whether the predicted breakthroughs are likely to occur earlier or later than the average estimated time frame.
After implementation the result then submitted to the experts and are asked to explain why they disagree.
b) Rational Decision Making
• According to the rational model of decision making, managers engage in completely rational decision processes, ultimately make optimal decisions, and possess and understand all information relevant to their decisions at the time they make decisions.
Rational model:-
• Identifying a problem: A problem is defined as a discrepancy between an existing and desired state of affairs.
• Identifying the decision criteria: decision criteria are criteria that define what is relevant and important in making decision
• Allocating weights to the criteria:
• Involves developing alternatives
• Analyzing alternatives
• Selecting an alternative
• Choosing and implementing the alternative
• Involves evaluating the decision effectiveness.
c) NGT Group: - Nominal group technique
It is structured group meeting, almost like brainstorming but it restricts the verbal communication among members. Here
• individuals independently prepare a list of their ideas on a problem
• Group members present their ideas one at a time in turn, and ideas are listed for all to see.
• members discuss the ideas to clarify and evaluate them
• individuals vote silently using a rating procedure
d) Decisions Scenario analysis
It addresses a variety of possible futures by evaluating major environmental variables, assessing the likely strategies of other significant factors, devising possible counter strategies, developing ranked hypotheses about the variables, and formulates alternative scenarios.
e) Group Aided Decisions
When all the members or group of members collectively take the decision, it is known as group aided decision.
Techniques used for group aided decisions –
• Brain storming: it is a creative technique of generating ideas to solve a problem.
• The main result of a brainstorm session may be a complete solution to the problem.
　
• Unusual ideas are encouraged. The ideas are combined and improved idea is developed.
Ques. 17. - What is decision making? Explain the essential steps in decision making.
Ans. - Decision-making is the process of selecting the best alternative course of action; from among a number of alternatives given to management or developed by it- after carefully and critically examining alternative‖
According to G. R. TERRY - ―Decision making is the selection based on some criteria from two or more possible alternatives‖.
Stapes of Decision making
1) Identifying a problem – The first step is to identify the problem. It must be done carefully because without knowing the problem. It is impossible to find solution.
2) Identifying the decision criteria - decision criteria are criteria that define what is relevant and important in making decision.
3) Collection of data:-After identifying the problem, the dates are to be collected for the further steps of analyzing. Data must be collected from the proper source & information alternatives totally depend on data.
4) Analysis the data:-now, the collected data is to be analyzed. It makes the picture clear & tells about the reasons behind the problem.
5) Identify the alternatives:-Now, the possible solution of a problem is to be identified.
6) Selecting an alternative:-If many alternatives are available then it is also a problem so manager selects the best alternative after considering all the relevant factors.
7) Implementing the alternative:-After the selection, implementation take place, at this stage, action has started.
8) Fallow the feedback:-After implementation, the alternative is to be evaluated whether it is effective or not so that correct action can be taken on time.
Ques. 18. - – What is MBO? Explain its features, process and types.
Ans. - Management by objectives (MBO)
Management by objectives term was first popularized by Peter Drucker in 1954.
Management by objectives is a process whereby the superior & subordinates managers of an organization jointly identify its common goals.
According to George S. Ordiorne - ―MBO is a process whereby the superior and subordinate manager of an organization jointly identifies its common goals. Define each individual‘s major areas of responsibility. In terms of result expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members‖.
Features of MBO –
1. MBO is concerned with goal & planning for individual managers & their units.
2. The essence of MBO is a process of joint goal between a supervisor and a subordinate.
3. Managers work with their subordinates to establish the performance goals that are consistent with higher organizational objectives.
4. MBO focuses attention on appropriate goals & plans.
5. MBO facilitates control through the periodic development & subsequent evaluation of individual goals and plans.
Process of MBO –
1. Preliminary setting of objectives at the top management level
2. Clarification of organizational roles
3. Setting the individual objectives
4. Matching goals with resources
5. Performance appraisal
Types of Objectives -
1. Strategic objectives - set by and for top management of the organization that address broad, general issues.
2. Tactical objectives - set by and for middle managers; their focus is on how to operationalize actions to meet strategic objectives.
3. Operational objectives - set by and for lower-level managers to address issues associated with tactical objectives.