Principles and Practice of Management Semester 1

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SEMESTER 1 (MM 100)
PRINCIPLES AND PRACTICES OF MANAGEMENT
SECTION A: OBJECTIVE TYPE (30 MARKS)
Part One:
Multiple Choices:
1. A plan is a trap laid to capture the _____
Answer: a. future
2. It is the function of employing suitable person for the enterprise Answer: b. Staffing
3. _________ means “group of activities and employees into departments” Answer: d. Departmentation
4. This theory states that authority is the power that is accepted by others Answer: a. Acceptance Theory
5. It means dispersal of decision-making power to the lower levels of the organization Answer: a. Decentralization
6. This chart is the basic document of the organizational structure Answer: d. Departmental Chart
7. Communication which flow from the superiors to subordinates with the help of scalar chain is known as Answer: b. Downward communication
8. The need for belongingness, friendship, love, affection, attention and social acceptance are Answer: d. Social Needs
9. A management function which ensures “jobs to be filled with the right people, with the right knowledge, skill and attitude.” Answer: a. Staffing defined

10. It is a process that enables a person to sort out issues and reach to a decision affecting their life Answer: d. Counseling

PART TWO:
1. Differentiate between “Administration” and “Management.” Answer:
There are many factors according to which administration can be distinguished from management. These are as follows: Nature of work:
Administration is concerned about the determination of objectives and major policies of an organization. Management puts into action the policies and plans laid down by the administration. Type of function:

Administration is a determinative function. Management is an executive function. Scope: Administration takes major decisions of an enterprise as a whole. Management takes decisions within the framework set by the administration. Level of authority: Administration is a top-level activity. Managementt is a middle level activity. Nature of status: Administration consists of owners who invest capital in and receive profits from an enterprise. Management is a group of managerial personnel who use their specialized knowledge to fulfill the objectives of an enterprise. Nature of usage: Administration is popular with government, military, educational, and religious organizations. Management is used in business enterprises. Decision making: Administration’s decisions are influenced by public opinion, government policies, social, and religious factors. Management’s decisions are influenced by the values, opinions, and beliefs of the managers. Main functions: Administration - planning and organizing functions are involved in it. Management -motivation and controlling functions are involved in it. Abilities: Administration needs administrative rather than technical abilities. Management requires technical activities. Management handles the employers. Administration handles the business aspects such as finance.

2. What are the common drawbacks in the classical and neo-classical theories of management?

Answer:
Classical Theory: Classical theory evolved during the first half of this century. It represents the merger of scientific management, bureaucratic theory, and administrative theory. Frederick Taylor (1917) developed scientific management theory (often called "Taylorism") at the beginning of this century. His theory had four basic principles: 1) find the one "best way" to perform each task, 2) carefully match each worker to each task, 3) closely supervise workers, and use reward and punishment as motivators, and 4) the task of management is planning and control. Initially, Taylor was very successful at improving production. His methods involved getting the best equipment and people, and then carefully scrutinizing each component of the production process. By analyzing each task individually, Taylor was able to find the right combinations of factors that yielded large...
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