Mba 1st Sem, Principle and Practice of Management

Topics: Management, Decision making, Decision theory Pages: 7 (2006 words) Published: November 11, 2012
IIBM Institute of business Management
Semester – 1 Principle and Practice of management Answer Sheet
Section ‘A’ -
Part One:

1. A plan is a trap laid to capture the FUTURE.
2. STAFFING is the function of employing suitable person for the enterprise. 3. DEPARTMENTATION means “ group of activities & employees into department”. 4. ACCEPTANCE THEORY states that authority is the power that is accepted by others. 5. DECENTRALIZATION means dispersal of decision-making power to the lower level of the organization. 6. MASTER CHART is the basic document of the organizational structure. 7. Communication which flow from the superior to subordinates with the help of scalar chain is known as DOWNWARD COMMUNICATION . 8. Needs for belongingness, friendship, love, affection, attention & social acceptance are SOCIAL NEEDS. 9. A management function which ensure “jobs to be filled with the right people, with the right knowledge, skills & attitude is STAFFING DEFINED. 10. COUNSELING is a process that enables a person to sort out issues and reach to a decision affecting their life.

Part Two:

1). The difference between management & administration are that:-
Administration is the function in industry concerned with the determination of the corporate policy, the co-ordination of finance, production and distribution whereas Management is the function concerned with the execution of policy within the limits setup by administration. Thus, administration is formulation of policies and is a determinative function while management is execution of policies and is an executive function. Administration involves the overall setting of major objectives determination of  policies, identifying of general purposes laying down broad programmes etc. while management is the active direction of human efforts with a view to getting this done.

2). The common drawbacks of the classical and the neo classical theories of management are listed below:- i) Both the theories had certain unrealistic assumptions and hence were not applicable to the organisation at a later date. ii) Both the theories had limited application, the formats and structures of organisations are not universal in both the theories. There is no particular structure which may serve the purpose of all the organisations. They also overlook some of the environmental constraints which managers cannot ignore and this lapse makes the practicability of the theory limited. iii) Lack of Unified Approach: The theories lack the unified approach of an organisation.

3). Line Organisation is the oldest form of an organisation. This is known by different means, i.e., military, vertical, scalar and departmental. All other types of organisation structure have mostly been modifications of the line organisation. The concept of the line organisation holds that in any organisation derived from a scalar process, there must be a single head who commands it. Although an executive can delegate authority, he has ultimate responsibility for results. According to some writer “Line structure consists of the direct vertical relationship which connect the positions and tasks of each level with those above and below it, and some others say “organisationally, the line is the chain of command that extends from the board of directors through the various delegations and re-delegations of authority and responsibility to the point where the primary activities of the enterprise are performed.

4). Acceptance theory is a theory which states that authority is the power that is accepted by others. Formal authority is reduced to nominal authority if it is not accepted by the subordinates. The subordinates accept the authority if the advantages to be derived by its acceptance exceed the disadvantages resulting from its refusal. The subordinates give obedience to the mangers because they visualise...
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