QUESTION BANK

GE3751

PRINCIPLES OF MANAGEMENT
 UNIT 1
INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS
PART A

1. Define Management. (May/June’16, Nov/Dec’14, Apr/May’11)

According to Knootz and Weihrich “Management is the process of designing and maintaining of an
organization in which individuals working together in groups efficientlyaccomplish selected aims”.

2. What are management levels? (May/June2016, Nov/Dec2011)

o Top level management
o Middle level management
o Lower level management

3. Write some important functions of top level management? (Apr/May2007)

o To formulate goals and policies of the company
o To formulate budgets
o To appoint top executives

4. What are the essential skills needed for the managers? (May/June2012)
o Technical Skill
o Human Skill
o Conceptual Skill

5. List the functions of Management. (Nov/Dec2012, Apr/May2009)

o Planning
o Organizing
o Staffing
o Coordinating
o Controlling

6. What are the roles of manager? (May/June2014, Apr/May2015,Apr/May 2011)

o Interpersonal role
o Informational role
o Decisional role

7. List the different forms of Organizations. (Nov/Dec2009)

o Sole Proprietorship
o Partnership
o Joint-Stock Company
o Co-operative Enterprise
o Public Enterprise

8. Name the types of managers.

o Top Manager
o Middle Manager
o Lower Manager
 9. Define ‘sole proprietorship’
Sole proprietorship is one in which Only one person invests the entire capital need to runthe business
hence one person owns this business organization, The businessman invests the capital, employees
labor and machines. Sole proprietors own all the assetsof the business and the profits generated by it.
They also assume "complete personal" responsibility for all of its liabilities or debts

10. 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”.

11. What are the roles of management in organization? (April/May 2015, April/May2016,
Nov/Dec 2017)
• Interpersonal Roleo Figurehead
o Leader
o Liaison

• Informational Role
o Monitor
o Disseminator
o Spokesperson

• Decisional Role
o Entrepreneur
o Disturbance handler
o Negotiator

12. What are the difference between a manager and a leader? (April/May 2014)
S. No. Manager Leader

1. Manager creates goal Leader creates vision

2. Manager controls risks Leader takes risks
3. They build systems and process. They build relationships.
4. Managers assign tasks and provide Leaders coach the people
guidance on how to accomplish them. who work under him.

13.What is the importance of organizational culture?

o The culture decides the way employees interact at their workplace.
o It represents certain predefined policies which guide the employees and givethem a sense of
direction at workplace.
o The work culture goes a long way in creating the brand image of organization.
o It brings all the employees on a common platform.
 14.Distinguish between public and private limited companies. (April /May 2018)

S. Public Companies Private Companies

No.
Minimum of person is 7 and maximum is Minimum of person is 2 and maximumof 5O
1 unlimited to be workedin the company to be worked in the company
.
It requires both certificate of incorporation and It can commence its business operation
certificate ofcommencement for its after getting certificate ofincorporation.
2
Commencement.
.
It cannot sell shares to the generalpublic in It can sell shares to the general publicin
3
open market. open market.
.

15.Define partnership. (Nov/Dec 2017)

Partnership is an association of person who agree to combine their financial resources and managerial
abilities to run a business and share profit in an agreed ratio. The persons who have agreed to join in
partnership are individually called “partners” and collectively a “firm”.

PART B
1. Explain about the evolution of management. (Apr/May 2014, Apr/May 2011)
2. Enumerate Fayol’s principles of management. How are they different from Taylor principles?
Comment on them in brief. (13) (Nov/Dec 2014, Nov/Dec2015)
3. Discuss the trends and challenges of management in globalized era. (13)
(Apr/May 2014, & 2011)
4. Is management art or science? Discuss. (13) (April/May 2019)
5. Explain the different types of business organization. (April/May 2017)
 UNIT II PLANNING
PART A
1. Define planning. (Nov/Dec2008 & 2009, April/May 2019)
Planning is the process of selecting the objectives and determining the course of action required to
achieve these objective.
2. What are the different types of plans? Or classify various plans. (Nov/Dec2012)

3. What are the objectives of planning? (May/June2015 & 2013, Nov/Dec2013)

o It helps in achieving objectives
o It is done to cope with uncertainly and change
o It helps in facilitating control and coordination
o Planning increase organizational effectiveness and guides in decision-making

4. Distinguish between strategic planning and tactical planning? (May/June2014)

Strategic planning Tactical planning

1. It is contemplated by middle
whichincludes chief executive
1. It is made by top management management who involves functional
officer, president, vice president
managers and product line managers.
2.Long range plan 2.Medium range plan
3.It covers a time period of up to 3. It covers a time period of 1 year to 2
1O years years.
4.Strategic planning is not detailed 4. Strategic planning is somewhat
One detailed.

5. List the steps in decision making process. (Nov/Dec13)

o Recognize the need for a decision
o Definition of the problem
o Search and develop alternatives
o Evaluate alternatives
 o Selecting an alternative course of action among alternatives Implementchosen alternative

6. Name any four Quantitative forecasting techniques. (Apr/May2013)

Forecasting techniques fall into two categories: (i) quantitative and (ii) qualitative.
o Time series analysis
o Regression models
o Econometric models
o Economic indicators
o Substitution effect

7. Specify the Strategic Management Process.

The strategic management process is a six-step process that encompasses strategyplanning,
implementation, and evaluation.

Steps in Strategic Planning

8. Define Planning premises. (April/May 2018)

The process of planning is based upon estimates of future. Though past guides the plans in present,
plans are made to achieve the goals in future.

Therefore, forecast of future events leads to efficient plans. Since future events are not known
accurately, assumption is made about these events. These events may be known conditions or
anticipated events which may or may not happen.

9. What is intuitive decision making? (April/May 2018)

Intuitive decision-making can be described as the process by which information acquired through
associated learning and stored in long-term memory is accessed unconsciously to form the basis of a
judgment or decision.

10. State the important observations suggested about planning.

o Planning is outlining a future course of action in order to achieve on objective.
o Planning is looking ahead.
o Planning is getting ready to do something tomorrow.
o Plan is a trap aid down to capture the future.
11. Discuss the importance of decision making. (April/May 2014, April/May 2016)

o Better utilization of resources

o For achieving objectives
o Facilitates innovation
o Increases efficiency of organization

12. Define corporate planning. (Nov/Dec 2014)

Corporate planning denotes the activities for entire enterprise. The basic focus of this planning is to
determine the long-term objectives of the organization as a whole and thento generate plans to achieve
these objectives taking into mind the likely changes in theexternal environment. It is generally carried
out by top level management.

13. What is the difference between strategy and policy? (Nov/Dec 2015)

S. No Strategy Policy

1. Strategy is a game plan, chosen to

The policy is also regarded as a mini –
achieve the organizational
mission statement, is a set of
objectives, gain customer’s trust,
principles and rules which directs the
and attain competitive advantage
decisions of the organization.
and to acquire a market position.
2. Strategy is a plan of action. Principle is a principle of action.
3. Strategies can be modified as per Policies are uniform in nature,
the situation, so they are dynamic in however relaxations can be made for
nature. unexpected situations.
4.
Strategies are always framed by the
Policy, they are, in general made by
top management but sub
the top management.
strategiesare formulated at the
middle level.

14. List the planning tools available in business management. (April/May 2017)
o SWOT analysis
o BCG matrix
o Porter’s Five Force model
o Gap analysis
o Balance score-card
15. What do you understand by Strategic Management? (Nov/Dec 2017)
Strategies are primarily concerned with the issues usually faced by low level managers and deal with
the strategies for the major organizations such as marketing, finance, production and research which
are considered important to achieving the business strategies and enabling the corporate level
strategy.

PART B
1. Write short notes on types of strategies and discuss about strategic management. (13) (Nov/Dec 2015)
2. What are the objectives of planning? Explain how you will set objectives for a
manufacturing organization. (13) (April/May 2016)
3. Define MBO and explain the various steps involved in it. (13) (Nov/Dec 2017,April/May 2018)
4. Classify the types of goals organizations might have and plans they used for
accomplishment. (13) (April/May 2018)
5. Elucidate the types of decisions and explain the process of decision making. (13)
(April/May 2019)
 UNIT III ORGANISING
PART A

1. Define Organization. (April 2016)

Organizing is the process of identifying and grouping of activities required to attain the objectives,
delegating authority, creating responsibility and establishing relationships for the people to work
effectively.

2. What is splintered authority? (April 2014)

Division of authority between many managers is called as splintered authority. A manager with
splintered authority will have to deal with many other managers before decisions can be finalized.

3. Define authority. (Nov/Dec 2014)

This is the power that gives a manager the ability to act, execute on behalf of the organization. This
power enables managers to gain the confidence of their teams evenin the absence of formal/reward or
penalty power.

4. What is staffing? (Nov/Dec 2014)

Staffing is the part of the management process which is concerned with the procurement utilization,
maintenance and development of a large satisfied work force onthe organization.

5. Explain how functional authority works in an organization. (April 2015) Functional authority is
permission to issue directions to people not under line supervision. Such directions deal with
specified activities or certain aspects of acompany.
For Example: An industrial engineer may select equipment and prescribe the tools andthe methods to be
used in production operations.

6. What are the limitations of line and staff authority? (Nov/Dec 2015)
o Advices ignored
o Encourages carelessness
o Expensive
o Conflict between line and staff
7. Why performance management is important? (April 2017)
Performance management is important because it ensures that the employees understand the
importance of their contributions to the organizational goals and objectsand also ensures that each
employee understands what is expected from them and equally ascertaining whether the employees
possess the required skills and support forfulfilling such expectations.

8. What is line authority?

Line authority is the direct authority which a superior exercises over a number of subordinates to carry
out orders and instructions. In organization process, authority is delegated to the individuals to
perform the activities.

9. What is delegation of authority? (Nov/Dec 2015, April 2017)

Delegation of authority means that the granting of authority to subordinates to operatewithin
prescribed limits.
10. What are the steps to be followed in making staff works effective?
o Understanding authority relationship
o Making line listen to staff
o Keeping staff informed
o Requiring completed staff work
o Making staff work a way of organizational life

11. State the kinds of organizational charts.(Nov/Dec 2005)

o Vertical chart
o Horizontal chart or left to right chart
o Circular chart or concentric chart
12. What are the limitations of Matrix Organization Structure? (Nov/Dec 2013)
o Since use of the matrix means the use of multiple commands, managers oftenend up with
conflicts.

o The organizational relationship becomes very complex and there is a greatconfusion

among personnel.

13. What are the objectives of performance appraisal? (Apr/May2012)

o To find out individual potential identification.
o To improve the management development.
o To improve the employees performance.

14. What are the sources of recruitment? (Nov/Dec2012)

Recruitment is the process of finding and attempting to attract job candidates who arecapable of
effectively filling job vacancies.
o Internal sources – through present employees, retired employees, dependentsof deceased or
dead employees.
o External Sources – education and training institution, private employmentagencies, public
employment agencies, casual applicants, trade unions etc.

15. What are the functions of HRM?

o Formulating HRM strategy
o Restructuring of organization
o Training and development
o Human resource planning
o Compensation and reward

PART B

1. Explain the difference between line and staff organization with an examples. Discuss its merits and
demerits. (13) (May 2014, Nov 2014, Nov/Dec 2013)
2. Explain the process involved in selecting and recruiting a graduate trainee in organization.
(13) (Nov 2014, May 2014, May 2011)
3. What is delegation of authority? Explain the process of delegation of authority.(13)
(Nov/Dec 13,Apr/May2015)
4. What is span of control? Explain the factors which influence the span of control. (13)
(Nov/Dec 2015)
5. Describe a case in which matrix organization structure will be effective. Also discuss the
advantages and limitations of matrix organization. (13) (April 2015)
 UNIT IV DIRECTING
PART A

1. Write shorts notes on Laissez-Faire leadership. (Nov/Dec 2014)

When all the authority and responsibility are delegated to the subordinates is known as Free rein
leadership or Laissez-Faire leadership. These leaders do not use power but leaves the power to
subordinates. They do not provide any contribution to make planning and policies.

2. What are the different types of management strategies involved in leadership?(Nov/Dec

2016)
o Distribute responsibility
o Be honest and open about information
o Create multiple paths for raising and testing ideas
o Develop opportunities for exercise based learning

3. Define motivation. (May/Jun2014,Apr/May2011,Nov/Dec2012)

According to Koontz and O’Donnell, “Motivation is a general term applying to the entireclass of drives,
desires, needs wishes and similar forces that induce an individual or a group of people to work”. Scott
defines, “Motivation means a process of stimulating people in action to accomplish desired goals”.

4. What are the types of motivation?

1. Positive motivation
2. Negative motivation
3. Extrinsic motivation
4. Intrinsic motivation

5. What are the elements of communication? (Nov/Dec 2014)

o Sender
o Encoding
o Media or channel
o Decoding
o Receiver
o Response
o Feedback

6. What do you understand in the term “Job enrichment”? (April/May 2017,Nov/Dec

2017)
Job enrichment is based on the assumption that in order motivate personnel; the job itself must
provide opportunities for achievement, recognition, responsibility, advancement and growth.

7. State the need for communication.

o To establish and spread goals of an enterprise widely.
o To develop plans for further achievement.
o To organize human and other resources in the most effective and efficient way.
o To select, develop and apprise members of the organization.

8. What is meant by brain storming? (Nov/Dec 2016, April/May 2018)

Brainstorming is a situation where a group of people meet to generate new ideas and solutions
around a specific domain of interest by removing inhibitions.

People are able to think more freely and they suggest many spontaneous new ideas as possible.
9. State the advantages of democratic leadership. (April/May 2018)
o The subordinates are motivated by participation in decision-making process.
o This will increase job satisfaction.
o Absence of leader does not affect output.
o Labor absenteeism and turn-over will be minimum.
o The quality of decision is improved.

10. What are the barriers involved in effective communication?

o Physical barriers
o Socio-psychological or personal barriers.
o Organizational barriers.
o Semantic barriers.
o Mechanical barriers.

11. List out the effective media in communication.

A large bank supplies hardware and software to its customers. Several banks now makebank-by-phone
services available even to individuals. E-mail service making easy delivery of documents.

12. Mention the various factors involved in using motivational techniques.

o Money
o Participation
o Quality of working life
13. Define job enlargement. (April/May 2015)
Job enlargement is a job design technique wherein there is an increase in the number oftasks associated
with a certain job. In other words, it means increasing the scope of one’s duties and responsibilities.
The increase in scope is quantitative in nature and notqualitative and at the same level.

14. Name the various leadership styles. (Nov/Dec 2015, April 2016)
1. Autocratic leadership
2. Democratic leadership
3. Laissez-faire leadership
4. Transformational leadership
5. Transactional leadership

15. How does a leader differ from management? (Apr/ May2015)

Leader: Influences the people to strive for group goals. Get authority by virtue of skills and ability.
Manager: influences by exercising planning, staffing, directing and controlling. Get formal authority
delegated by the above.
 PART B

1. What is motivation? Critically evaluate motivational theories. (13) (April/May 2014)

2. Explain the different barriers of communication. What steps can be taken to overcome such
barriers? (13) (Nov/Dec 2014, April/May 2017, Nov/Dec 2017, April/May 2018)
3. What are the essential qualities of a good leader and discuss the obstacles to leader flexibility and leader
styles based on them? (13) (April/May 2016)
4. Does motivation important for organization development / achievement? Justify your answer with
Maslow’s hierarchy of needs. (13) (April/May 2015)
5. Discuss how communication through electronic media is helpful for effective business. (13)
(April/May 2016)
 UNIT V CONTROLLING
PART A

1. Define controlling.
According to Koontz "Controlling to the measurement and correction of performance inorder to make
sure that enterprise objectives and the plans devised to attain them are accomplished".

2. What are the characteristics of control?

o Control process is universal
o Control is continuous process
o Control is action based
o Control is forward looking.

3. Mention any two requirements for effective control.

(April/May 2014, Nov/Dec 2016)
o An effective control should focus on objectives.
o The control system should be suitable to the needs of the organization.
o It should forecast the future deviations and it should be forward-looking.

4. List the basic types of control? (April/May 2015)

o Feedback control
o Concurrent control
o Feed forward control

5. What are the modern techniques of control?

o Management audit
o Return on investment
o PERT and CPM

6. Define budgetary control? (Nov/Dec 2017)

According to J.Batty "a system which uses budgets as a means of planning andcontrolling all
aspects of producing and or selling commodities and services".

7. What are the limitations of Budgeting?

o Inaccuracy
o Expenditure
o Distortion of goals

8. Explain briefly the term zero base budgeting. (Nov/Dec 2015)

It starts from a “zero base” and every function within an organization is analyzed for its needs and
costs.
Budgets are then built around what is needed for the upcoming period, regardless of whether the
budget is higher or lower than the previous one. This budgeting must be justified for each new period.
9. What are the three pitfalls of budgeting? (April/May 2015)
o Budgets creates problem when it is applied mechanically and rigidly.
o It can demotivate employees because of lack of participation.
o It can cause perceptions of unfairness.

10. What are MIS Resources?

o To provide the information up to date
o To take effective decision making
o To provide the right information available in the right form at the right time

11. Define Productivity (Nov/Dec 2017)

Productivity is a measure of how much input is required to produce a given output the ratio is called
productivity.

12. What are the factors affecting productivity?

o Technology
o Human resources
o Government policy
o Machinery and equipment
o Skill of the worker

13. What are the budgetary controls? (Nov/Dec 2014)

It is a quantitative expression of a plan for a defined period of time. It may include planned sales
volumes and revenues, resource quantities, costs and expenses, assets,liabilities and cash flows.

14. What are the different types of budget ? (Apr/May2014)

15. What is preventive control? (May/Jun 2012)

An efficient manager applies the skills in managerial philosophy to eliminate an undesirable activity
which are the reasons for poor management.
 PART B

1. Explain different Budgetary and non-budgetary control techniques. (13) (Nov/Dec2014)

2. What is productivity? Explain the methods of improving productivity in IT industries.
(13) (April/May 2016)
3. “Planning is looking ahead but controlling is looking back.” Explain. (13)
4. Write short notes on: (13)
(i) Control of productivity problems and management
(ii) Direct and preventive control. (April/May 2016)

5. Explain the different impact of Information Technology on Management control. (13)