I Mid Term Examination BCA II Semester

Session 2011-2012(Even Semester)

Sub: Management Concepts and Practices (
Time: 90 minutes Max. Marks: 20
Notes: 1) Answer all question from section A (which is) compulsory, Any Two from Section B & Any Two from
Section C.
2. All parts of a question (a,b, etc) should be answered at one place.
3. Answer should be brief & to the point & be supplemented with neat sketches.
4. Any missing or wrong data may be assumed suitably giving proper justification.
5. Figures on the right hand side margin indicate full marks.
Section A
Note: Attempt All Questions. (0.5X 16 =08)
1. Administrative Decision making model was proposed by-Simon.
2. Planning- is the first step of Management process.
3. In SWOT analysis O stands for_ Opportunity.
4. Theory of Scientific Management was given by-Taylor.
5. Top level of management is also called as-Administrative Level.
6. Setting objectives/SWOT analysis-is the first stage of planning and helps decision makers to focus on
key issues.
7. The branch managers and departmental managers constitute Top level. True/False.-F
8. Top management lays down the objectives and broad policies of the enterprise. True/False.-T
9. Middle level is also known as supervisory / operative level of management. True/False.-F
10. Controlling is the last step of Management Process. True/False.-T
11. In SWOT analysis S stands for Strong W stands for Word. True/False.-F
12. Planning is a continuous process. True/False.-T
13. Planning creates a gap fromwhere we are to where we want to go. True/False.-F
14. Decision making can be regarded as the mental processes resulting in an outcome leading to the
selection of a course of action among several alternatives. True/False.-T
15. The number of levels in management decreases when the size of the business and work force
increases. True/False.-F
16. Rational Decision making Model is a rigid model of decision making. True/False.-T
SECTION B
Note: Attempt any two questions (2X 2 =04)
1. What is Management? Explain its Nature.
Management can be defined as he set of activities (including- planning, organizing, decision
making, leading and controlling) directed at an organizations resources (human, financial,
physical, and informational) with the aim of achieving the organizational goals in an efficient
and effective manner.
Nature of management
Multidisciplinary: Management is basically multidisciplinary. This implies that,
although it has been developed as the separate discipline, but it draws knowledge and
concepts from various disciplines. It has drawn ideas from Sociology, psychology,
Anthropology, Economics, Ecology, Statistics, Operation Research, History etc.
Management integrates ideas and concepts taken from these disciplines and presents
newer concepts which can be put into practice for managing the organizations.
Dynamic Nature of Principles: Principle is a fundamental truth which establishes cause
and effect relationships of a function. Based upon integration and support by practical
evidences, management has framed certain principles. However these principles are
flexible in nature and change with the changes in the environment in which the
organization exists. Because of the continuous development in the field of management,
many principles are replaced by the new principles.
Relative, not absolute principles: Management principles are relative, not absolute and
they can be used or applied according to the need of the organization. It is not
compulsory that all the organizations are same. The difference may exist because of time,
place, socio-cultural factors etc. In addition to this the employees working within the
same organization may also differ. Therefore, principles of management should be
applied according to the prevailing conditions.
Management: Science or Art
As a Science: Science is systematically organized body of knowledge based on proper
findings and exact principles and is capable of verification. Any subject which is
scientifically developed and consists of universally accepted principles is a Science. In
order to be recognized as Science, a subject should have following characteristics-
Systematized body knowledge including concepts, principles and theories.
Scientific methods of observation and enquiry.
It should establish cause and effect relationship.
Tests of validity and predictability that is the principles should be verifiable.
As An Art: Art is the bringing about a desired result through the application of skills.
It is concerned with the application of knowledge and skills. Science is to seek
knowledge while the Art is applying knowledge. The Art has the following features-
It denotes personal skills
It signifies practical knowledge
It helps in achieving concrete results
It is creative in nature: Every Manager has to apply certain knowledge and skills while
dealing with the people to achieve the desired result.
2. What is planning? What is its Importance?
In simple words, Planning is deciding in advance what to do and how to do. It is one of
the basic managerial functions. Before doing something, the manager must formulate an
idea of how to work on a particular task.
According to - Koontz and O'Donnel, "Planning bridges the gap from where we are to
where we want to go. It makes it possible for things to occur which would not otherwise
happen"
Importance of Planning
To focus on attention of objectives: Planning focuses on organizational objectives and
direction of action for achieving these objectives.
To offset uncertainty and change: There is continuous change in the environment and
the organization has to work in accelerating change. This change is reflected in both
tangible and intangible forms. Tangible changes are in the form of changes in technology,
market forces, government regulations etc. Intangible changes reflect in changes in
attitudes, values, cultures etc.
To help in control: Control involves the measurement of accomplishment of events
against plans and correlation of deviations to ensure the achievement of objectives as set
by the plans.
To help in coordination: Though all managerial functions lead to coordination in the
organization real beginning is made at the level of planning stage.
To increase organizational effectiveness: Planning ensures organizational effectiveness
in several ways. The concept of effectiveness is that the organization is able to achieve its
objectives within the given resources.
3. What is Decision Making? Also explain the process of Decision Making.
Decision making can be regarded as the mental processes resulting in an outcome leading
to the selection of a course of action among several alternatives.
Every decision making process produces a final choice.

The output can be an action or an opinion of choice.
Process of decision making
Search objectives :
Identification of problem: A particular decision is made in the contract at certain given
objective. Identification of problem is the real beginning or decision making process.
Search of alternatives: It defines specific problem and the situations in which the
problem exists. With this decision maker seek possible solution.
Evaluation of alternatives: Finding out positive or negative cost, risk, benefit are
the three evaluated points to select a good alternative.
Choice of alternatives: Experimentation, research, analysis, experience a
comparison is made among the likely outcomes of various alternatives and the best
one is chosen.
Action: Getting acceptance of subordinate and getting decision into action. Once the
creative and analytical aspects of decision taking through which an alternative has been
chosen are over.
Result: In this we check objective or results are match or not. Thus result provided
indirection whether decision making and its implementation properly.

SECTION C
Note: Attempt any two questions. (4 X 2=08)
1. Explain the principles of management given by Henry Fayol in detail.
Principles of Management given by Henry Fayol:
Fayol thought that his principles would be useful to all types of managers. He truly advocated
the belief that if a manager wants to be successful, he only needs a certain set of management
principles. If a manager climbed the corporate ladder and reached higher positions, this
manager would depend less on technical knowledge and more knowledge of administration.
The 14 Management Principles given by Henri Fayol (1841-1925) are:
1. Division of Work. Specialization allows an individual to build up experience, and to
continuously improve his skills. Thereby he can be more productive. He advocated division
of work to take the advantage of specialization.
2. Authority and responsibility. The right to issue commands, along with which must go the
balanced responsibility for its function. Fayol finds authority as continuation of official and
personal factors. Official authority is derived from the managers position and personal
authority is derived from personal qualities such as intelligence, experience, moral worth, etc.
3. Discipline. All the employees working in the organization must be well disciplined. They
must obey the management, but this is two-sided: employees will only obey orders if
management plays their part by providing good leadership.
4. Unity of Command. Each worker should have only one boss with no other conflicting lines
of command.
5. Unity of Direction. Unity of command means that a person should get orders and
instructions from only one superior. This is essential to ensure unity and coordination in the
enterprise. Unity of command does not exist without unity of direction.
6. Subordination of individual interest to the general interest. It means common interest is
above the individual interest. Management must see that the goals of the firms are always
supreme.
7. Remuneration. Remuneration of employees should be fair and provide maximum
satisfaction to the employees and the employers. Fayol did not favor profit sharing plan for
the workers but advocated it for the managers.
8. Centralization. This is a matter of degree depending on the condition of the business and the
quality of its personnel. Everything which goes to increase the importance of subordinates
role is decentralization; and everything which goes to reduce it is centralization.
Centralization and decentralization are the question of size and proportion of the
organization. In small firms, centralization is natural but in large firm there are many
intermediaries (channels) hence, it requires the decentralization approach.
9. Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral
communication is also essential. Scalar chain refers to the number of levels in the hierarchy
from the ultimate authority to the lowest level in the organization. It should not be over-
stretched and consist of too-many levels.
10. Order. This is the principle related to the arrangement of things and people. There are two
types of order that is material order and social order. In material order, there should be a
place for everything and everything should be in its place. Similarly in social order, there
should be the right man in the right place (Job). This kind of order demands the sound
knowledge of the human requirements and resources of the organization. The knowledge of
constant balance between these requirements and the resources is also very much important.
Generally it is found that, as the size of the organization increase it becomes more difficult to
maintain the balance in between the two.
11. Equity. In running a business a combination of kindheartedness, humanity and justice is
needed. Treating employees well is important to achieve equity.
12. Stability of Tenure of staff/ Personnel. Employees work better if job security and career
progress are assured to them. An insecure tenure and a high rate of employee turnover will
affect the organization adversely.
13. Initiative. Allowing all personnel to show their initiative in some way is a source of strength
for the organization. Even though it may well involve a sacrifice of personal vanity on the
part of many managers.
14. Esprit de Corps. This is the principle of Union and strength and extension of unity of
command for establishing team work. According to this, Management must encourage the
morale of its employees. He further suggests that, real talent is needed to coordinate effort,
encourage enthusiasm, use each persons abilities, and rewards each ones merit without
touching possible jealousies and disturbing harmonious relations.
2. Explain Management Process and levels of Management in detail?
Management consists of the functions given below. It is based on Henri Fayol's thinking on the
functions of management.
1. Planning: generating plans of action for immediate, short term, medium term and long
term periods.
2. Organizing: organizing the resources, particularly human resources, in the best possible
manner.
3. Staffing: positioning right people right jobs at right time.
4. Directing (includes leading, motivating, communicating and coordinating):
Communicate and coordinate with people to lead and enthuse them to work effectively
together to achieve the plans of the organization.
5. Controlling (includes review and monitoring): evaluating the progress against the plans
and making corrections either in plans or in execution.
Each of these functions is explained in some detail below.
1. Planning
Planning is decision making process.
It is making decisions on future course of actions.
Planning involves taking decisions on vision, mission, values, objectives, strategies and
policies of an organization.
Planning is done for immediate, short term, medium term and long term periods.
It is a guideline for execution/implementation.
It is a measure to check the effectiveness and efficiency of an organization.
2. Organizing
Organizing involves determination and grouping of the activities.
Designing organization structures and departmentation based on this grouping.
Defining the roles and responsibilities of the departments and of the job positions within
these departments.
Defining relationships between departments and job positions.
Defining authorities for departments and job positions.
3. Staffing
It includes manpower or human resource planning.
Staffing involves recruitment, selection, induction and positioning the people in the
organization.
Decisions on remuneration packages are part of staffing.
Training, retraining, development, mentoring and counseling are important aspects of
staffing.
It also includes performance appraisals and designing and administering the motivational
packages.
4. Directing
It is one of the most important functions of management to translate company's plans into
execution.
It includes providing leadership to people so that they work willingly and
enthusiastically.
Directing people involves motivating them all the time to enthuse them to give their best.
Communicating companies plans throughout the organization is an important directing
activity.
It also means coordinating various people and their activities.
Directing aims at achieving the best not just out of an individual but achieving the best
through the groups or teams of people through team building efforts.
5. Controlling
It includes verifying the actual execution against the plans to ensure that execution is
being done in accordance with the plans.
It measures actual performance against the plans.
It sets standards or norms of performance.
It measures the effective and efficiency of execution against these standards and the
plans.
It periodically reviews, evaluates and monitors the performance.
If the gaps are found between execution levels and the plans, controlling function
involves suitable corrective actions to expedite the execution to match up with the plans
or in certain circumstances deciding to make modifications in the plans.
Various Levels of Management

The term Levels of Management refers to a line of demarcation between various managerial
positions in an organization. The number of levels in management increases when the size of the
business and work force increases and vice versa. The level of management determines a chain
of command, the amount of authority & status enjoyed by any managerial position. The levels of
management can be classified in three broad categories: -
1. Top level / Administrative level
2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line managers
Managers at all these levels perform different functions. The role of managers at all the three
levels is discussed below:
LEVELS OF MANAGEMENT
1. Top Level of Management: It consists of board of directors, chief executive or managing
director. The top management is the ultimate source of authority and it manages goals and
policies for an enterprise. It devotes more time on planning and coordinating functions. The role
of the top management can be summarized as follows
a. Top management lays down the objectives and broad policies of the enterprise.
b. It issues necessary instructions for preparation of department budgets, procedures,
schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the shareholders for the performance of
the enterprise.
2. Middle Level of Management: The branch managers and departmental managers constitute
middle level. They are responsible to the top management for the functioning of their department.
They devote more time to organizational and directional functions. In small organization, there is
only one layer of middle level of management but in big enterprises, there may be senior and
junior middle level management. Their role can be emphasized as
a. They execute the plans of the organization in accordance with the policies and directives
of the top management.
b. They make plans for the sub-units of the organization.
c. They participate in employment & training of lower level management.
d. They interpret and explain policies fromtop level management to lower level.
e. They are responsible for coordinating the activities within the division or department.
f. It also sends important reports and other important data to top level management.
g. They evaluate performance of junior managers.
h. They are also responsible for inspiring lower level managers towards better performance.
3. Lower Level of Management: Lower level is also known as supervisory / operative level of
management. It consists of supervisors, foreman, section officers, superintendent etc. According
to R.C. Davis, Supervisory management refers to those executives whose work has to be largely
with personal oversight and direction of operative employees. In other words, they are
concerned with direction and controlling function of management. Their activities include -
a. Assigning of jobs and tasks to various workers.
b. They guide and instruct workers for day to day activities.
c. They are responsible for the quality as well as quantity of production.
d. They are also entrusted with the responsibility of maintaining good relation in the
organization.
e. They communicate workers problems, suggestions, and recommendatory appeals etc to
the higher level and higher level goals and objectives to the workers.
f. They help to solve the grievances of the workers.
g. They supervise & guide the sub-ordinates.
h. They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for getting the things done.
j. They prepare periodical reports about the performance of the workers.
k. They ensure discipline in the enterprise.
l. They motivate workers.
m. They are the image builders of the enterprise because they are in direct contact with the
workers.
3. What is SWOT Analysis? Explain it with the help of example.
SWOT Analysis
SWOT is a strategy planning tool use to evaluate strength, weakness, opportunity and threats
involved in a project or in a business venture or in any other situation of an organization or
individual requiring a decision in pursuit of an objectives.

In other words, SWOT analysis, method, or model is a way to analyze competitive position of
your company. SWOT analysis uses so-called SWOT matrix to assess both internal and
external aspects of doing your business. The SWOT framework is a tool for auditing an
organization and its environment.

SWOT is the first stage of planning and helps decision makers to focus on key issues. SWOT
method is a key tool for company top officials to formulate strategic plans. Each letter in the
word SWOT represents one strong word: S = strengths, W = weaknesses, O = opportunities,
T = threats.

SWOT model analyzes factors that are internal to your business and also factors that affect your
company from outside. Strengths and weaknesses in the SWOT matrix are internal factors.
Opportunities and threats are external factors.
SWOT


Internal Factor External Factor
Internal Factor
1. Strength:
a. Four specialist marketing expertise.
b. A new, innovative product or service.
c. Location of your business.
d. Quality process and procedure.
2. Weakness
a. Lack of marketing expertise.
b. Undifferentiating product or services.
c. Location of your business.
d. Poor quality goods or services.
e. Damage reputation.
External Factor
1. Opportunity
a. A developing market such as interest.
b. Mergers or joint ventures.
c. Moving into new market segment that offer improves profit.
d. A new international market.
e. A market vacated by ineffective competitors.
2. Threats
a. A new competitor in your home market.
b. Price wars with competitors.
c. A competitor has new, innovative product or services.
Example of SWOT Analysis

Strengths and weaknesses are internal value creating (or destroying) factors such as assets, skills,
or resources a company has at its disposal relatively to its competitors. Below you can find a few
examples of what your strengths might be:
Unique product
Location of your business
Patents, know-how, trade secrets
Worker's unique skill set
Corporate culture, company image
Quality of your product
Access to financing
Operational efficiency
The following list shows a few examples of weaknesses:
Location of your business
Lack of quality and customer service
Poor marketing and sales
Access to resources
Undifferentiated products or services
Opportunities and threats are external value creating (or destroying) factors a company cannot
control but emerge from either the competitive dynamics of the industry or market or from
demographic, economic, political, technical, social, legal, or cultural factors.
An opportunity in the SWOT model could be for example:
A new emerging or developing market (niche product, place - new country, less
competition)
Merger, joint venture, or strategic alliance
Market trends
New technologies
Social changes (for example demographics)
And now the final one, threats. A threat could be:
New competition in the market, possibly with new products or services
Price wars
Economic conditions
Political changes
Competitor oligopoly or monopoly
Taxation
Availability of resources
Factors related to each aspect of the SWOT model depend very much of the nature of your
business. SWOT for a manufacturing company will be different from a SWOT for an internet
start-up.