Principles & Practices of Management

SECTION A ___________________________________________________________ _____ Q.1 ) Management is a combination of Arts, Science & Profession Explain fully? Ans. 1) It is very difficult to understand What is Management. Many tried and given different definitions of management. But if you want to understand, understand its features. By which we know that, management is universal, continuous, dynamic, creative etc. and can wonder, if there is proper management. To understand its scope and nature, we have to understand its features, which can easily clarify the term management. These features are Arts, Science & Profession, which combing makes MANAGEMENT. Management as an ART: Art requires skills whereas in management requires conceptual, technical, human relations and decision making skills. Art requires knowledge whereas in management requires learning and acquiring knowledge such as Marketing, Finance, Technical and production etc. Art is creative whereas in management as a discipline is the function of creativity. In this creativity is facing the challenges of competition. Consider if we want to introduce our new product in market, then we must make our self-ready for competition, i.e. Competition in sale, production, advertising and price. So that to survive in the market. Art is personalized whereas in management different people do a particular task in a different way. Every individual has its own management style. We can categories them as Democratic, Autocratic, Paternalistic, Beurocratic etc.

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Art is a performance whereas in management performance is seen by profit, growth and development. These are the indicators, which decide the management as good or bad. P.T.O Management as Science: Science is a body of organized knowledge whereas in management as Social Science consists of history of management thought. Science is developed over a period of time whereas management is also developed over a period of time. As consider that in many companies, In 1950s the productivity is 50% but in 90s it exceeds to 80% and in 2000 it exceeds to 95%. It is just due to management. In which changes come in various disciplines like human relations, services, finance, technical etc. during the whole interval. Science establishes cause and effect relationship whereas in management if we put more worker on work, than there will be more productivity. Here the cause is workers and the effect is in the productivity. Science has predictive power; in management also we can do predictions. Like if the stock exchange rises then the rate of particular share may or may not rise. Rules/Regulations are verified from time to time whereas in management new rules are established and old rules are changed, so that to have full use of resources in a management. Management as a Profession: Before relating management and profession, we must know what is profession. As in profession we require definite period of learning, it needs certificate of practice, centralized rule making authority and social commitment/obligation/accountability. These are in case of academic one that sometimes wont applicable in case of management like anyone can become manager without any specific qualification or period of learning. It doesnt need any certificate of practice. These are not in forcible under any law. If we come to practical approach of profession, which is very close to practice of management. By these we can know the roles of profession manager as:

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Knowledge base decision instead of any intuition or predictions. Based on experience and expertise in require field. Help in meeting competitiveness challenges. Apply theories of management in solving organizational problems. Separation of ownership from management.

At last by discussing the Arts, Science and Profession role in management. It is combination of all the three and it should be a way of life. P.T.O. Q3.) What are the different types of motivators? Explain Maslows theory of hierarchy of needs. Why study of motivators is important to a manager? Ans. 3) To understand the meaning of motivation, we first need to understand motive. Motive can be defined as something as a need or desire that impels or incites a person to a certain course of action or behavior. Motivation thus can be can be considered, as the amount of effort an individual is willing to put into their work. A lack of motivation in any member of a team can have a negative effect, reducing the groups effectiveness and possibly leading to the de-motivation of others. Different people are motivated in different ways; the problem facing someone in the role of leader is to create an environment in which each individual fulfils their potentials. Concept of motivation can be observed by following need-satisfaction chain: Needs give rise to > Wants > Tensions > Drives or Action > Satisfaction/Dissatisfaction. There are different types of motivators: Financial: In these type, the individual is motivated by money i.e. if he will work or put more effort he will more perk, salary etc. Non-Financial: In these types, the individual is encouraged, given freedom, given recognition. By which it put more effort. Positive: In these individual is rewarded, and incentives of individual are cared.
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Negative: In this individual is compelled or forced, i.e. if you wont put much effort, you are only going to loss and feared to do work. Internal: In these, the individual inner drive, urge makes the person to put full effort. Ethical: The individual honesty, hard work and integrity makes the individual to put effort. Unethical: In these dishonesty makes the individual to work, like corruption as a source of motivation.

P.T.O Maslows hierarchy of needs: Abrahm Maslow developed a theory of personality that influenced a number of different fields, including education. This wide is due in part to the high level of practically of Maslows theory. This theory accurately describes many realities of personal experiences. Maslow has set up a hierarchy of five levels of basic needs. Beyond these needs, higher levels of needs exist. These include needs for under standing, esthetic appreciation and purely spiritual needs. In the level of five basic need, the person does not feel the second need until the demands of the first have been satisfied, nor third until the second has been satisfied, and so on. Maslows basic needs are as follows:

The hierarchy theory is often represented as pyramid, with the larger, lower levels representing the lower needs, and the upper point representing the need for self-actualization.
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Physiological needs: These are biological needs. They consists for oxygen, food, water, shelter. They are the strongest needs because if a person deprived of all needs. Safety needs: When all physiological needs are satisfied and are no longer controlling thoughts and behaviors, the needs of security can became active. Social or need of love, Affection and Belongings: People seek to over come feelings of loneliness and alienation. This involves both giving and receiving love, affection and the sense of belonging. Needs for esteem: Humans have a need for a stable, firmly based, high level of self-respect from others. When both self-esteem and for the esteem a person gets from others is get frustrated, the person feels inferior, weak, helpless and worthless. P.T.O. Needs for self-actualization: Self-actualization as a persons needed to be and do that which person was born to do. There are many hierarchies by the society, by which people would not move well in direction of self-actualization. The study of motivators is very important to a manager because he is responsible for completion of needs of individuals working under him, so that each individual needs to think that they are working with the best people to feel proud to be part of the team. Manager knows that how to make, people will work harder and achieve more. By knowing their needs and up to which level it to be filled and what type of motivation (finance, freedom, positive etc) required at particular time.

Q.4) Define the delegation of authority. What are the problems in delegation? Explain the principles of effective delegation.

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Ans. 4) Dictionary meaning of Delegate is to give, offer, and allot a part of authority to subordinate. Authority is right to act or decide. Even though you have delegated a task to some one else, you are still responsible for making sure the task is done on time and correctly. The positive effects of delegation could be like: Higher efficiency. Increased motivation. Develops the skills of your team. Better distribution of work through the group.

The amount of authority you delegate is up to you, although it should be enough to complete the task, otherwise the delegation would be of no use. P.T.O There are various degrees of delegation like: Low degree of delegation: In these superior states particular task to subordinates and tell them to report back after investigation on it. Moderate: In these subordinates has to report back with an action plan. High degree: in these subordinate reports back after taking action with results and reasons.

Functional Authority is the right, which is delegated to an individual or a department to control a specified process, practices, policies or other matters relating to activities undertaken by persons in other departments. Functioning of a functional authority:

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Clarifying the assignment: o What to be delegated. o Whom to be delegated. Specify the subordinates range of decision. Allow the subordinates to participate. Inform others that a delegation has occurred. Establish feedback control.

There are many barriers in delegation: 1. Like some manager believe that if they want to do think right, do their selves. 2. Lack of confidence, trust on subordinates. 3. Low self-confidence and more over confidence amongst the managers might became a barrier. 4. Fear among manager, that they will loose status. 5. Instructions from above authority not to delegate further. P.T.O Principles of effective delegation: 1. Identify a suitable subordinate. 2. Explain the delegation (degree). 3. Keep lines of communication open, so that subordinate has full feedback also. 4. Explain or train the task properly. 5. Must have monitoring process and control. 6. Dont disappear after delegation.

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7. Praise/Acknowledge a job well done. 8. In case of emergency, subordinate has to report you as for authentication, discretionary matter. 9. Encourage and boost morale of subordinates. 10. Task after delegation so that to make it more effective. 11. Plan: goal, meeting, tasks. 12. Direct: your team keeps them on track. 13. Encourage: boost morale. 14. There are certain tasks you shouldnt delegate. For example, a) Hiring b) Firing c) Pay issues d) Policy

By which these may effect you, if these will be a its wrong use.

P.T.O. Q.5) What is controlling? What are the principles of effective control? What steps an organization should take before things go out of control? Ans. 5) Controlling is defined as in terms of management is to measure the actual performance of employees, with the standard performance and to lead, motivate and direct employees to reach the standards. To reach the pre determined goals; there should be an effective controlling. To have an effective controlling, organization must have these principles of controlling: 1. It is the end function of the management process as it judges the performance of different goals of the management.
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2. It is continuous process as it monitors the employees continuously and assures that not to deviate from the right track. 3. It is flexible and it is to be adjusted according to needs and situations. 4. It is present at all levels of organization, but its nature and degree changes according to the level. 5. Changes can be anticipated from the information collected. 6. Control is related to future as it lives in present. It is present over which control is to be exercised which will guard our future from loss, wastage etc. The organization must take following steps before things go out of control: 1. first of all standards are set, which are attainable, flexible, precise and concerned with results. 2. Measure the actual performance precisely and accurately which will tell us how much deviation is there as per standards. 3. Compare the actual performance with the standards. If the actual performance doesnt vary too much wit standards, then there is no need for controlling. 4. Corrective action should take place. If there is deviation as control process would be in complete if corrective action is not taken. Control is very important aspect in management and cant be ignored at any level of organization. It helps management to achieve goals at correct interval of time and without any wastage and losses of resources. Control maintains the equilibrium between ends and means, output and efforts.

P.T.O Q.7) Define decision-making? Prepare list of factors that effect decision-making process? Ans. 7) Decision-making is a process of choosing from a choice of available alternatives it is an integral part of planning.

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Process of Decision Making involves following steps: 1. Identify the problem, understand the problem by identifying it, some feeling of action to take against it. 2. Collect information from where ever you can get, about the problem. 3. Develop alternatives from Information. 4. Compare different alternatives and evaluate them and give them ratings. 5. Choose the best alternative. 6. Take action or implement on alternative and communicate the decision. 7. See & how is your decision work. (Follow up and review) There are many factor which can effect decision making are listed below: Information, which we should be authentic, reliable, adequate and must be available at time. So enough time must be there to analyze the problem. Time factor: decision must be taken at right time, not before and not after. It may lead to severe causes like Dish washers in India are introduced ahead of time. External environment factor: In these decision-making is affected by external factors like Political, Economic, Social, Cultural, technical, Ethical, logical Etc.

P.T.O.

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 Internal factors: Rules, Regulation, and Procedures within the organization or administrative restriction like you are bound in your rules while decision-making. Participation, Acceptance and Implementation: If any decision is to be taken then how it can be implemented and how much it will be accepted can also influence in decision making. Lack of power: if you know that at certain time decision should be taken and action has to be taken. But lack of power restricts you. Visibility: Problems, which are visible, catch a decision makers decision. As these are the first to act upon. Like officers on a visit, make others agitating. Then this agitation becomes the main problem, as it is visible. Way of thinking: decision maker should have a correct or proper way of thinking, good attitude and style, personality etc. Which can help the decision making effectively. Experience can also help in decision-making, as the decision maker with good experience knows more about the pass and fail of the decision.

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Principles & Practices of Management

SECTION B

Q.9) Write a detailed note on retailing sector in India-growth prospects and various challenges? Ans. 9) There was no organized sector in India, until liberalization in retailing sector. It was completely dominated by unorganized sector, but is now coming alive and boom is just around the corner. Retailing is the second largest employer after agriculture and that $150 billion worth of goals retailed every year. These are certain factors which will help the further development of retailing sector are: Rising income and rise in literacy rate by which the person understands the things better. Liberalization makes the global companies to try their coin in India. Reduction in custom duties helps the manufactures to spread their product globally. Awareness created by satellite TV about the global people products. Shifting consumer preferences to foreign brands like McDonald, Sony etc. as consumer knows its better in technology and in quality. An Indian customer is one of the most diverse and demanding. He would like value for his money. Retailers just cant put their std formats of products onto the Indian customer. There chances that they wont accept it, so they must bring according to Indian needs.
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P.T.O. Retailing sector is facing many challenges as:

In India, price is the important factor in customers decision making. But there is a segment of customer who look beyond price as if he gets good quality at high price, after sales, reliability, and warranty. He will go for it. There should be training at all levels like sales, technical, development. It should be continuous, so as to give best to customers. We all know that, retailing sector mainly comes in the same platform of customer at showrooms. Here the customer expectations are to be fulfilled. So proper management required at this level. There should be proper advertisement, so that customer knows what company is giving to him. With technologies changing everyday, the company should upgrade itself according to budget and customer needs. Give value to the customers as this entails anticipating customer expectations and fulfilling them effectively. Give shoppers the complete one stop shopping experience, by making the market concentrated with the top retailers. Like Big Shoppers in Jaipur.

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Hence we can definitely say that the retail revolution is on its way as people are having varieties and awareness. ___________________________________________________________ _____

P.T.O Q.10) Management consultants are creation of liberalization in India offer your views on this statement and comment on the role of consultants and their limitations? ANS. 10) The liberalization process that began more then ten years ago created a new business class that has had a significant impact on Indian business. This brings the consultancy market a new scope. As you all know, the economic reforms were initiated in 1991 in India in a demonstrative way after the assassination of Rajiv Gandhi. A period of 12 years have elapsed since then and today the same social forces that had opted for the liberalization and privatization policies in 1991 are speaking of a "second wave of reforms". Never before and in high density companies decide to surrender themselves in the hands of management consultants. At the time of liberalization, the companies start looking at each other steps and many companies start merging and created a state of flux and are reflected to other companies to merge and to start accepting management consultants. Hence we can say, Management consultants are creation of liberalization in India. There are many resources in company, which are being unutilized or wrongly utilized like: Some knowledge completely. resources are under-utilized or wasted

Some knowledge resources are over-stretched.

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These could lead to many dire consequences like the organization is exposed to many kinds of risk and the growth and development of the organization could get restricted. Role of a consultant: A consultant can give advice how to use the resources and where are the risk in organization, and how provoke from these. Indian companies were having lack of knowledge about globalization, so they need help. An Indian company doesnt know how to compete according to new emerging companies strategies. Liberalization brings the new concepts (Like ISO 9000,BVQI, TQM.etc) of quality control, which Indian companies are unaware. So Indian companies need Management consultants to rule in Indian markets. P.T.O. Here comes the role of Management consultants, what they can actually do for Indian companies and why they only need. The following points can describe the answer for this: They are experienced and have done these things previously. The can use the resources (finance, raw material, knowledge, technical, humans etc) in correct way and at correct place. They have the knowledge of performance level according to the other companies in their field. These can fill gap in your organization, which cant be filled within the organization. However there are certain limitations to consultants introduction, like: There are certain task, in which company already good in, there may be chances that the consultant will make changes and can hamper the performance. Managerial consultants wont have to act like a team leader, by interfering in previous team. By which team might loose confidence.
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 Consultants can give advice, which can be helpful for short term. But can effect in long term. Employees might get the feeling of retrenchment. Never give up control and look up consultants as GOD. Some times they can just take use of the profit. Consultant business is to find trouble, wont hire a consultant if company is working at good standards.

Hence consultant can be helpful only when you are sure that he can increase the efficiency of the organization, increase in profitability or as the case may be. ___________________________________________________________ _____ P.T.O. Q.11) Event management is the biggest challenges for professional manager discuss fully? Ans. 11) In ancient times people take parts in mass activities by these their will be a encouragement in brotherhood, for recreation, or just for skittles. But in modern times a new sector is emerged to maintain the feeling of brotherhood recreation, which is known as Event management. Any mass gathering under the sun can be considered as an event, and an company works on an event from its very (base) conceptualization and works on it until it executes and come to an end. To make an event memorable, one has to work on the details. But todays life is too fast, so one cant pay attention to minute details. To pay attention on minute details, professionally event management comes in picture. The leading companies in Event management are wiz craft, DNA networks, Cine yug, pinnacle, Midas etc. which are expert in their fields like some in advertising, sports, corporate events etc. It also requires planning, organization, evaluation and at last execution. People from different backgrounds can work in an event management company. Events only
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reflect the companies infrastructure, performance. It also helps in rating of companies. Event management has become a very big challenge for professional manager as they are at the back to organize these events.

The problems and challenges faced by the professional manager in event management are:

To do an event, in a limited budget. To take permissions from various government services, so that there is no disturbances at the time of execution of event. (Police, electricity board, jal board etc) Team should have all the professional needs (technical, financial, development etc). P.T.O. To pay taxes to the government, without the sold out of tickets. The government should not levy tax on the exact number of tickets sold. The rates of levy taxes are different from place to place. They have to give best of the best, so that they will keep on getting contracts from clients. There should be proper planning, organizing and execution, without any conflicts between team. To be ahead in competition, professional manager faces many other challenges according to their fields. A professional manager is, who makes an event memorable and makes the standard wrt other events. By utilizing proper knowledge, skills from professional and most important time.

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___________________________________________________________ _____

Q.13) What are the problems faced by the Indian Business families after 1991? (Beginning of Liberalization in India). What is their strategic response for the same? Ans. 13) The economic reforms were initiated in 1991 in India in a demonstrative way after the assassination of Rajiv Gandhi. A period of 10 years elapsed since then & today the same social sources that had opted for the liberalization and privatization policies in 1991 are speaking of a second wave of reforms. The liberalization process that began more then ten years ago created a new business class that has had a significant impact on Indian business families. The post 1991 companies were concentrated in select industries, such as computer, software and hardware, electricity generation, telecommunication, financial services and food products etc. P.T.O. The common pre 1991 companies are. Reliance, Godrej, Kirloskar, Birla, Bajaj that are run by Indian business families. Due to liberalization these companies face the following common problems: Competition with new coming industries. (i.e. Liberalization, Privatization, Globalization(LPG)opened the market for foreign MNCs ,so new strategies required to compete with them) Continuous falling of share values.
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 Fickle customer as the cost of products is high and quality of product is also not consistent. Labor productivity is also not good as not updated themselves with the coming technology. Splits in a family results in a division of the company. The rules have changed after the liberalization and successor needs to have the right qualification, otherwise corporate needs outsource person to look after. Lack of professional management as owners are running the companies up till now. Now the clashes between Professionals and owners starts, as their view, styles and approaches towards running the company is different. The strategies adopted by the Indian business families for survival and grow th: Raising their capital to a comfort zone, so that the fear of take of cant possible. Consolidation of business by selling their non viable (profitless) and non-core business and concentrating on core business. P.T.O. Business families realize that business should run by professionals and experts .the concept of capital stake and managerial stake should be clearly defined. Manager realized the importance of R & D by which they improve the quality, reduce costs and survive in the liberalized world. They updated themselves with the latest technology, so to compete with the upcoming companies.
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 Adopt themselves with the new realities new product launch, customer relation ship, and reliability after sales service, so that customers wont go to other companies. The successors of the companies get trained abroad and educated. So that they can return and take over. Up till then company run-ed by professional manager.

The post 1991 companies unable to grow to a significant size in spite of several tax breaks they received and at last some business families like Reliance, Godrej, Kirloskar, Birla, Bajaj etc emerged victorious and are here to stay.

Q.14) Define emotional intelligence? Explain its importance for a manager? Ans. 14) Emotional intelligence can be defined as the ability to sense, understand and effectively apply the power and acumen of emotions as a source of human energy, information, trust, creativity and influence. Alfred bennit, the father of intelligence quotient (IQ), created a benott scale to measure the IQ. But it actually not enough for success, emotional intelligence plays a great role, as it is the out come of the combination inborn temperaments, childhood experiences, and latter learning. IQ and technical skills are viewed at entry levels for executive positions, but then also they cant come up with a great leader without EQ. Emotional intelligence as the sine Qua non of leader ship. P.T.O. It can help managers, to become a great leader, by these managers will get : Self-aware ness, which will enable the manager to make decision with confidence.
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They are not distressed and changed their moods according to the situation and act rationally (Emotional Management). As they are self motivated they perform threshold of their capabilities. Empathy involves reading unstated emotional avis; as can understand the feeling of other without being told and interact accordingly with them. Empathy, as a component of leadership important for at least three reasons: The increasing use of teams. The rapid pace of globalization. The grow ing need to retain talent. is particularly

Social effectiveness: by these you settle the disputes easily and come out from negotiation with a win-1win situation. If there is low EQ then there can be losses of work as there will be high missed dead lines, costly mistakes increased employee turn over and decreases productivity. EQ commonly increases with age. If manager is having high EQ.He will be more attuned to the feelings those whom he works.Differentiate between positive and negative emotions, so to react accordingly.Rate work situations that have the potential to explore if you let your EQ guard down.

P.T.O The benefits of high EQ in managers are:

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 Be more attuned to the feelings of those you work with. Rate work situations that have the potential to explore if the manager lets his EQ guard down. Differentiate between positive and negative emotions. Control over emotions helps smoother conflict situations.

After knowing the importance of EQ, the organizations started doing research and offered training programs for developing EQ for profitability and productivity. So IQ is not enough for manager as it can only give a opportunity of hiring and there may be a chances of firing (loosing) the job just for not to have the EQ.

The End

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