Mg2351. principles of management 2mark

PRINCIPLES OF MANAGEMENT
Short Questions
Unit –I
1. Define Management?
It is a process of designing and maintaining an environment in which individuals
working together in groups efficiently accomplish selected aims.

2. Name the various managerial functions? Planning, Organizing, Staffing, Leading,
Controlling.

3. What are the different managerial skills.? Technical skills,Human skills, conceptual
skills, Design skills.

4. Define productivity?
Productivity is defined as an output to input ratio within a time period with
consideration for quality.

5. Define Organizing?
It is part of managing that involves establishing intentional structure of rows for people
to fill in an organization.

6. Define Leading?
Leading is the process of influencing people so that they will contribute to organization
and group goals.

7. Define coordination?
It is an essence of managerial step for achieving harmony among individual effects
towards the accomplishment of group goals.

8. Define Conceptual skill?
It is an ability to see the „bi picture‟ to recognize significant elements in a situation and
to understand the relationship among the elements.

9. How is Managerial Roles classified?
-Interpersonal Roles
-Informational Roles
-Decision Roles.

10. What are the different types of plans.
Purpose or mission, objectives, strategies, policies, procedures, rules, programs and
budget.

11. Define Goals?
They are the end towards which activity is aimed or they are the results to be achieved.

12. Define Policies.
They are also plans in that they are general statements which guide in decision making.
They define an area within which a decision is to be made and ensure that the decision
will be consistent and contribute to an objective.
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13. Define procedures? They are plans that establish a required method of handling
future activities.

14. Define budget?
A budget is a statement of expected results expressed in numerical terms. It is referred
as “numbered” programs. The financial operating budget is often called as “profit plan‟

15. Define Management by Objectives?
MBO is a comprehensive managerial system that integrated many key managerial
activities in a systematic manner and that is consciously directed to work for effective
and efficient achievement of organizational and individual objectives.

16. What is Planning Premises?
The anticipated environment in which plans are expected to operate. They include
assumption and forecast of the future and known condition that will affect the operation
of plans.

17. Define Decision Making?
It is defined as selection of a course of action from among alternatives , It is at the core
of planning. A plan cannot be set to exist unless a decision has been made.

18. Define Satisficing?
Picking a course of action that is Satisfactory or good enough under the circumstances.

19. Define Quantitative Factors?
These are factors measured in numerical terms such as time or various fixed and
operating costs.

20. Define Intangible factors?
Difficult to measure numerically such as quality of labour relation, the risk of
technological change or the international political climate.

21. How is Programmed Decision used?
A programmed decision is applied to structure or routine proble. Eg. Lathe operators
have rules to tell whether the part they made is acceptable.

22. Write about Non programmed decisions?
They are used for unstructured and ill defined situation of a non recurring nature. Eg.
Marketing a small video camera by Kodak.

23. Define Risk analysis?
Decision makers dealing with uncertainty like to know the size and nature of the risk
they are taking when choosing a xourse of action. Virtually every decision is based on
the interaction of important variables many of which have an element of uncertainty.

24. Define Decision Support System?


DSS used computers facilitate the decision making process of semistructured task.
These systems are designed not to replace managerial judgements but to support it and
make the decision process more effective.

25. Define Social Responsiveness?
It is the ability of a corporation to relate its operations and policies to the social
environment in ways they are mutually beneficial to the company and to society.

Unit – II
1. Define Organization?
An organization structure should be designed to clarify who is to do what tasks and who
is responsible for what results

2. Define Formal Organization?
It means the intentional structure of roles in a formally organized enterprise. Formal
organization must be flexible individual effort in a group situation must be channeled
toward group and organization goals.

3. Define Informal Organization?
It is any joint personal activity without conscious joint purpose, even though
contributing to joint results.

4. What are the steps in the organizational structure?
Determination, identification and enumeration of activities.
Grouping and assigning of activities
Delegation of authority

5. What are the types of Organizational structure?
The Line Structure
The line and staff structure
Functional structure
4. Divisional structure
Project structure
Matrix structure
Network organizational

6. Define Organizational chart?
It is an useful aid in gaining an insight into the organizational relationship that exists in
a particular enterprise.

7. What are types of Organizational Charts?
Vertical chart or Top_ to_ down chart
Horizontal or Left_ to_ right chart
Circular or concentric chart.

8. Define circular chart?


Highest position in this type of chart is in the center and constitutes the bull‟s
eye.Concentic circles shows the next successive levels in the hierarchy.

9. Define organization manuals?
The manual provides a clear written description of the authority
_responsibility relationships of all positions.

10. What are the types of organization manuals?
Policy manual
Company organization manual
Department manual

11. Define span of control?
The limitation on the no of subordinates that can be directly managed would restrict the
size of the enterprise. Therefore the work and people should be divided ana grouped to
facilitate expansion of the firm.

12. Define Departmentation? It is the process which is used to group activities into units
for purpose of administration at all levels.

13. How is Departmentation made?
Functional basis
Territorial basis
Process basis
Product basis
customer basis
Time basis
Number basis

14. Define Power?
Power is the ability of individuals or groups to induce or influence the beliefs or actions
of other persons or groups.

15. Define Authority?
Right in a position to exercise discretion in making decisions affecting others.

16. What are the bases of power?
Legitimate power
Power of knowledge
Reflect power
Coercive power

17. Define span of management?
The term span of control indicates the no of people directed or managed effectively by a
single executive or supervisor even though his limit varies depending on the situation.

18. Define Line function?


The line functions are those that have direct impact on the accomplishment of the
objectives of the enterprise.

19. Define staff function?
The staff functions are those that help the line persons work more
effectively in accomplishing the objectives.

20. Define Functional authority?
It is the right which is delegated to an individual or a department to control specified
processes, practices, polices or other matters relating to activities undertaken by persons
in other departments.
21. What are the different kinds of centralization?
Centralization of performance
Department centralization
Centralization as an aspect of management

22. Define pyramidical chart?
It shows the vertical flow of authority. It is a traditional & most widely used type of
chart.

23. Define Horizontal chart?
It moves from left to right. It levels are represented by vertical columns & Flow of
authority from the highest to lowest as shown by movements from the left to right.
Define policy manual? It contains details of the general policy of the organization as a
whole.

24. Define Department manuals? It specifies the scope of the particular department
detailing the functions it has to perform.

Unit-3 – III
1.Define Management
Management is defined as the process of influencing people so that they will strive
willing towards the achievement of group goals.

2.Write the Principle of Leadership
“Since people tend to follow those who in their view offer them a means of satisfying
their own personal roles, the more managers understand what motivation that
subordinates and how these motivations operate and more they reflect this
understanding in carrying out their managerial actions, the more effective they are likely
to be leaders”.

3,What are the different Leadership styles.
� Autocratic Leader
� Democratic Leader
� Free Rein

4.Define Autocratic Leader


Autocratic Leader commands and expects compliance and leads by the ability to
withhold on given rewards and punishments.

5.Define Democratic Leader
Democratic or participating leader consults with subordinates on proposed actions and
decisions and encourages participation from them.

6.Define Free-Rein Leader
Free-Rein leader uses his or her power very little giving subordinates a high degree of
independence in their operations.

7.Define Likert‟s four system of Management
This is proposed by Prof. Remis Likert. This suggests “an effective, manager as strongly
oriented to subordinates relying on communication to keep all parts working as a unit”.

8. What are the four systems of management proposed by Likert
o System 1 management {Explorative -Authorative Management}
o System 2 management {Benevolent management }
o System 3 management {Consultative management}
o System 4 management {Participative management}

9. Define System 1 management
Explorative-Authorative management‟s managers are highly autocratic, have little trust
in subordinates, motivate people through fear and punishment and only occasional
rewards, engaged in downward communication and limit decision making to the top.

Its managers have a patronizing confidence and trust in subordinates and motivate with
rewards and some fear and punishment. They permit some communication and allows
some delegation of decision making but with close policy controls.

The managers have substantial but not complete confidence and trust in subordinates.
Usually they try to make use of subordinate ideas and opinions and engage in
communication flow both up and down.

They have complete trust and confidence in subordinates in all matters. They get ideas
and opinions from subordinates and constructively use them. They encourage decision
making throughout the organization.

13. Define managerial grid.
This is proposed by Robert Blake, Jane Mouton. Managerial means of training managers
and for identifying various combinations of leadership styles.

14. Define Grid Dimensions.
Grid Dimensions concern for people, concern for production and deals with how
managers are concerned.


15. Define concern for people
Concern for people deals with the personal commitment towards goal achievement,
provision of good working condition and maintenance of interpersonal relations.

16. Define Concern for Production
This deals with the attitude of a supervisor towards the quality of policy decisions,
quality of staff services, work efficiency and volume of output.

17. What are the different extreme styles of management
� Impoverished management
� Team managers
� Country club management
� Autocratic task managers.

18. Define Situational approach to Leadership
The leadership is strongly affected by the situation from which the leader emerges and
in which he or she operates. Example: Rise of Hitler in Germany. His approach to
leadership recognizes that there exist an interaction between group and leader. It
supports the follower theory-That the people tend to follow those they consider as
leader.

19.Define Path Goal Theory
It suggest that main function of the leader is to clarify and set goals which subordinates,
help them find the best path for achieving the goals and remove obstacles.

20. Categorize Leadership Behavior
� Supportive Leadership Behavior.
� Participative Leadership Behavior
� Instrumental Leadership Behavior
� Achievement Oriented Leadership Behavior.

21. Define Supportive Leadership Behavior.
It gives consideration to the needs of subordinates shows a concern for well being and
create a pleasant organizational climate.

22. Define Participative Leadership Behavior It allows the subordinates to influence the
decisions of the supervisors.

23. Define Instrumental Leadership Behavior It gives subordinates specific guidance
and clarifies what is expected from them.

24. Define Achievement Oriented Leadership Behavior.
It involves setting challenging goals, seeking improvement of performance and having
confidence that subordinates will achieve high goals.


25. Define Creativity and Innovation
Creativity is the ability and power to develop new ideas. Innovation is to use those
ideas.

Unit –IV
1. Define Informal Communication?
It is an communication that does not have a formal way of communication and it is
expressed using a glance or nod or smile.

2. Write the purpose of communication?
To establish goals for an enterprise, to develop plans and to lead, direct , motivate and to
create a climate in which people want to contribute.

3.Define Valence?
Valence is the value of a person assigns to his desired rewards. He may not be willing to
work hard to improve performance if the reward for such improved performace is not
what he desired.

4. What are the classification of motivation theories
Content Theories, Process Theories, Reinforcement Theories.
5. What are the three basic characteristics of Motivation Effort, Persistence and
Direction.

6. What are the barriers to effective communcation Noise Barriers, InterPersonal
Barriers.

7.What is Filtering?
It refers to intentionally with holding or manipulating information by the sender because
the sender believes that the receiver does not need all information.

8.Define Perception?
It relates to the process through which we receive and interpret information from an
environment and create a meaning differently.

9.Define Motivation?
Motivation represents an unsatisfied need which creates a state of tension causing the
individual to move in a goal directed pattern towards restoring the state of equilibrium
by satisfying the need.

10.Define Job Enrichment? The attempt to built into jobs a higher sense of challenge
and achievement

11.Define Communication?
It is a transfer of information from the sender to the receiver with the information being
understood by both the sender and the receiver.

12.Write about Maslow‟s hierarchy of needs?
Physiological needs, security needs, Affiliation needs, Esteem needs, Needs for self
actualization.

13.What are the three elements of Vroom‟s Expectancy model? Expectancy,
Instrumentality and valence.

14.Define Instrumentality?
This factor relates to a person‟s belief and expectation that his performance will lead to
a particular desired reward.

15.Define Expectancy?
This is a person‟s perception of the likelihood that a particular outcome will result from
a particular behaviour or action.

16.Write about Porter and Lawler model?
Porter and Lawler suggests that the amount of energy a person believes is required and
the portability of receiving the reward.

17.What are the most prominent needs according to MCClelland?
-Needs for Achievement
-Needs for Affiliation
-Needs for power.

18.How can you make job enrichment effective?
Organization need a better understanding of what people want and if productivity
increases are the main goal of enrichment the program must show how workers will
benefit.

19.What is the purpose of communication?
-To develop plans for their achievement.
-To organize human and other resources in the most effective and efficient way
-To control performance.

20. Define Noise?
Noise is what that hinders the communication process and it may hinder the
development of a clear thought.

21.What are the types of communication?
Formal communication
Informal communication
Written communication
Oral communication

22.Define Oral communication?
It refers to face to face communication where the sender and receiver of the message are
in the direct contact.

23.Define Written communication?
It is very wide in its scope and covers all paperwork relating to all kinds of transactions,
agreements and proposals.

24.Write about the different noise barriers you know?
Poor timing, Inappropriate channel, physical distraction and improper information,
information overload.

25.Define principle of clarity?
The communication should be clear and easily understandable by the receiver of
communication.

Unit –V
1.Define Control?
Management control is a systematic effort to set performance standards with planning
objectives to design information feedback systems to compare actual
performance with these pre determined standards and to determine whether there are
any deviations.

2.What are the steps in controlling? -Establishment of standards -Measuring and
comparing the performance -Correction and deviation.

3.Define Standards? Standards are norms towards which performance has to be directed.
They are derived from the objectives and goals of the organization. The progress of
work at every stage is to be recorded so that it can be compared with the predetermined
standards. The comparison of performance with the standards is made with the objective
of finding out deviations if any and find out the reasons for such deviation.

5.What are the requirements necessary to make control effective? A control is said to be
effective if it does the following -Reflect plan -point out exception -objective -Flexible -
Economic -Simple

6.What are the benefits of control? -Facilitates coordination -Encourages
Decentralisation. -Offers enough information for future planning and organizing.

7.Name any four Traditional control techniques? -Budget and budgetary control -
Responsibility centers -Marketing control -Statistical analysis

8.Name any three modern control techniques? -Management audit -Management
Information system -PERT and CPM..

9.Define budget?
A budget is a type of plan specifying anticipated results in numerical terms. However it
is also a control device that provides a basis for feedback evaluation and followup.

10.Write down the different types of budget?
-Functional budget
-Master budget
-Fixed budget
-Flexible budget
-Zero-base budget.


11.Name any Four functional budgets you know?
-Sales budget
-Production budget
-Materials budget
-Labour budget

12.What is administrative overhead budget?
It determines the estimate of administrative overhead to be incurred in the budget
period. Eg. Salaries, rent, office expenses and insurance.

13.Define master budget? It is the summary budget incorporating all the functional
budgets.

14.Define fixed budget?
It is a budget which is designed to remain unchanged irrespective of the level of activity
actually attained.

15.Define Flexible budget?
It is one which is designed to change in accordance with the level of activity actually
attained.

16.Define Zero-base budget?
It is a latest technique aimed at cost reduction and optimum utilization of resources.
Every year is taken as a new year and previous year is not taken as a base.

17.Define budgetary control?
It is the establishment of budgets relating to the responsibilities of executives to the
requirements of a policy and the continuous comparison of actuals, with budgeted
results.

18.What are the objectives of Budgetary control?
-define the objectives of the enterprise.
-centralising the control system.
-correcting variances from set standards.
-provide plans for achieving the objectives so defined.

19.Define Quality circles?
They are groups of people from the same organizational area who meet regularly to
solve problem they experience at work.

20.What is the use of personal stratergy?
Personal strategy should be designed to utilize strengths and overcome weaknesses in
order to take advantage of career opportunities.

21.Define PERT?
Program Evaluation and Review Technique(PERT) describes basis n/w technique which
includes planning , monitoring and control of projects.


22.Define CPM?
Critical Path method(CPM) was developed in 1956 to aid in the scheduling of routine
plant overhaul, maintenance and construction work.

23.Define Activity? It is defined as a operation performed which consumes time and
resources.

24.Define Event? It is defined as a beginning or completion of an activity.

25.Define Optimistic time?
This time is based upon the estimate of minimum time an activity will take under the
best conditions.


Descriptive Type Questions
1. FUNCTIONS OF MANAGERS
1.Planning: -Involves selecting machines objectives and actions to achieve them. -It
requires decision making -Various plans exists ranging from overall purpose and
objectives to the most detailed actions to be taken -No real plan exists until a decision (a
commitment of human or material resources has been made)
2. Organizing: -It is a part of managing that involves establishing intentional structure of
roles for people to fill in an organization. -Concept of a role implies that what people do
has a defined purpose or objective -It is intentional in the sense of making sure that all
the tasks necessary to accomplish goals are assigned and it is hoped, assigned to people
who can do the best.
Staffing -Involves filling and keeping filled the positions in the organization structure -
Identifying requirements, inventory people, or variable and recruiting suitable
candidates
Leading -Effective managers also need to be effective leaders -Leading is a process of
influencing people so that they may contribute to organization and group goals
Controlling -Measuring and correcting activities of subordinates to ensure that events
conform to plans. -It measures performance against goals and plans, shows where
negative deviations exist and by putting in motion actions to correct deviations and
helps ensure accomplishment of plans
Coordination -It is an essence of manager ship for achieving harmony among individual
efforts towards the accomplishment of group goals

2 MANAGERIAL SKILLS
Technical skill -Knowledge of proficiency activities involving methods , process and
procedures -involves working with tools and specific techniques
Human skill
Ability to work with people
Cooperative effort
It is a team work
Conceptual skill ability to see the big picture to recognize significant elements in a
situation and to understand the relationships among the elements
Design skill -ability to solve problems in ways that will benefit the enterprise -the
manager should have the skill of a good design engineer in working out the practical
solution to a problem

3) Merits of Organization structure:
- Facilitates attainment of objectives through proper coordination.
- Eliminates overlapping and duplication of work.
- Facilitates promotions of personnel.
- Provides a sound basis for effective planning
- Encourages activity.
- Communication is easier.
- Decreases likelihood of “runarounds”

4) Departmentation :
It is the process which is used to group activities into units for purpose of administration
at all levels.
Bases of departmentation:

Functional basis : Most commonly accepted practice, Logical and time proven method,
authority and responsibilities are defined and fixed.
Territories basis: Useful when the organization is large and geographically dispersed.
Process basis: Used in Manufacturing enterprises.
Product basis: desirable for large undertakings which deal with a variety of products.
Customers basis: highly useful where a product or service of wide variety is offered
through many marketing channels and outlets.
Time basis: Enterprise engaged in continuous process can follow this pattern.
Number basis: Activities are grouped on the basis of their performance by certain
number of persons.

5) Authority and power:
Power is the ability of individual or groups to induce or influence the
beliefs or actions of other persons or groups.
Authority refers to be right in a position to exercise discretion in making
decision affecting others.
Bases of power:
Legitimate power , Power of knowledge Referent power, Coercive power.

6) Decentralization of authority :
Decentralization is the tendency to disperse decision-making authority in an organized
structure. It is a fundamental aspect of delegation; to the extent the authority is not
delegated it is centralized. Different kinds of Centralization:
Centralization of performance: Pertains to geographic concentration it characterizes.
Departmental centralization: Refers to concentration of specialized activities,
generally in one department. Centralization as an aspect of management: Tendency to
restrict delegation of decision making.

7) Write about Mc Clelland’s Theory of Needs?
It is a socially acquired Needs Theory and is rooted in culture . There are three
prominent Needs. 1)Needs for Achievement 2)Needs for Affiliation 3)Needs for power
The achievement power is defined as a desire to succeed in competitive situations based
upon an establish or perceive standard of excellence. 1)Individuals with a strong need
for achievement asked for, accept and perform well in challenging task which require
creativity, hardwork and are constantly preoccupied with a desire for improvement.
2)Need for affiliation is related to social needs and reflects a desire for friendly and
warm relationship with others. 3)The need for power is the desire to affect and control
the behaviour of other people and to manipulate the surroundings.

8) Write about Vroom’s Expectancy model?
Developed by Victor.Vroom. this model is based upon the belief that motivation is
determined by the nature of the reqard people expect to receive the result of that job
performance.
Motivation = Expectancy * Instrumentality * valence The person‟s level of effort
depends upon the following 1)Expectancy: The worker must be confident that his efforts
will result in better productivity and that he has the ability and resources to perform the
task well. 2)Instrumentality: The worker must be confident that such high performance
will be instrumental in getting the desired rewards. 3)Valence: The worker must value
these rewards as desired and satisfactory.

9) Explain about Electronic media in communication?
1)Telecommunication : Many companies have effectively utilized a new technology
such as FAX which ensures delivery of the document across the country within hours.
Computerized Airline Reservation System facilitates making travel arrangements.
2)Teleconferencing: It is difficult to define but most people think it as a group of people
interacting with each other by means of audio and video media with moving or still
pictures. Full motion video is used by managers to show charts and illustrations during a
technical session. 3)Use of computers for information handling: Electronic Data
Processing, Using Computer Graphics you can visually display company information.

10) Explain about Job Enrichment?
The attempt to built into jobs a higher sense of challenge and achievement. It can be
made by -Giving workers more freedom in decision making. -Encouraging participation
of subordinated and interaction between workers. -Giving workers a feeling of
responsibility for their tasks. -Giving people feedback on their job performance.
Limitations: -Technology, cost, difficulty of enriching any job that requires low levels
of skills. Problems: -Tendency of top managers and personnel specialists to apply their
own scale of values for challenge and accomplishment to other people personalities. -It
is usually imposed on people. Make Job Enrichment Effective: -Organisation need a
better understanding or people want, People like to feel that their managers are truly
considered with their welfare.

11) TYPES OF PLANS
1) Purpose or mission -it identifies the basic function or task of an enterprise -the
purpose of a business generally is the production and distribution of goods
and services -the purpose of university is teaching and research 2) Objectives or goals -
they are the ends towards which activity is aimed or they are the results to be achieved --
while enterprise objectives are a basic plan of the firm , a department may also have its
own objectives 3) Strategies -general programs of action and deployment of resources to
attain comprehensive objectives -the program of objectives of an organization and their
changes and resources used to attain these objectives -the adoption of courses of action
and allocation of resources necessary to achieve these goals 4) Policies -they are also
plans in that they are general statements which guide in decision making -policies define
an area within which a decision is to be made and ensure that the decision will be
consistent and contribute to an objective -policies guide to decision making
5) Procedures -they are plans that establish a required method of handling future
activities -they are guide to action -procedures often cut the cross department lines
6) Rules -It is the simplest type of plan and rules spell out specific required actions -
Rule are unlike procedures in that they guide action without specifying a time
sequences-Rule allows no deviation from a stated course of action
7) Programs -Programs are a complex of goals, policies, procedures, rules, task
assignments, steps to be taken, resources to be employees and other elements necessary
to carry out a given course of action and they are ordinarily supported by budget.
8) Budget -A budget is a statement of expected results expressed in numerical terms -It
is referred as numberized programs. -The financial operating budget is often called a
profit plan
-a budget may be expressed either in financial terms or in terms of lab or hours, units of
products, machine hours or another numerical measurable term.


12) STEPS IN PLANNING
1) Being aware of opportunity -in light of the market competition -what customer want
-our strengths -our weaknesses 2) Setting objectives and goals -where we want to be and
what we want to accomplish and when we want to accomplish 3) Considering planning
premises -in what environment internal and external will our plans operate 4) Identify
alternatives -What is the post promised in alternatives to accomplish our objectives? 5)
Comparing alternatives in light of goals sought
-Which alternatives will give us the best chance of meeting our goals at the lowest cost
and highest profit? 6) Choosing an alternatives
-selecting the course of action we will pursue

13) Organization structure:
It refers to the way individuals and groups are arranged with respect to the tasks they
perform. Steps:
-Determination, identification and enumeration of activities.
-Grouping and assigning of activities.
-Delegation of authority.
Merits: -Facilitates attainment of objectives through proper coordination. -Eliminates
overlapping and duplication of work. -Facilitates promotions of personnel. -Provides a
sound basis for effective planning -Encourages activity. -Communication is easier. -
Decreases likelihood of “runarounds”
Types:
-Line structure, Line and staff structure
-Functional structure, Divisional structure
-project structure, A Matrix structure
-Network organization.

14) Staffing : The staffing of an organization consists of four sequential steps
Recruitment It is the process designed to attract a qualified pool of applicants to the
organization. Job Analysis: It is an orderly study of job requirements and involves
systematic investigation relating to the operations and responsibilities required for the
successful performance of a job.
2. Selection :
It is a process of choosing the right candidate from a pool of applicants. This process is
established to achieve a good match between the job requirements and the candidates
skills and motives.
Training and Development: It is the process of developing knowledge skills and
behaviours in people that will enable them to better perform their current and future
jobs.
Performance Appraisal: It constitutes a systematic way of evaluating a worker‟s
performance and his potential for development.

15) Path-Goal Theory: It suggests that the main function of the leader is to clarify and
set goals with subordinates, help them find the best path for achieving the goals and
remove obstacles.
Leadership behaviour is categorized into four groups: 1) Supportive leadership
behavior: 2) Participative leadership 3) Instrumental leadership 4) Achievement-
oriented leadership.


16) Likert’s Four System Theory: Professor Likert sees an effective manager as
strongly oriented to subordinates relying on communication to keep all parties working
as a unit. Likert has suggested four systems of management
1) System 1 Management is described as “explotive-authoritive”, its managers are
highly autocratic, have little trust in subordinates.
2) System 2 Management is called “benevolent – authoritive” its managers have a
patronizing confidence and trust in subordinates.
3) System 3 Management is referred to as “consultative”Managers have substantial
but not complete confidence and trust in subordinates.
4) System 4 Management is referred as “Participative-group”

17) Explain about budget?
Budget is a type of plan to specify anticipated results in numerical terms. Five types:
1)Functional budget: Relates to different functions. The different functional budgets are
as follows.
Sales budget, Production budget, Materials budget, Labour budget, Manufacturing
overhead budget, Administrative overhead budget, Distribution overhead budget, Cash
budget and capital expenditure budget. 2)Master budget: Summary budget incorporating
all functional budgets.
3)Fixed budget: It is a budget which is designed to remain unchanged irrespective
of the level of activity actually attained.
4)Flexible budget: It is one which is designed to change in accordance with the
level of activity actually attained.
5)Zero-base budget: Zero is taken as a base and future activities are decided as per
the present situations.

18) Explain about controlling?
A management control is a effort to set performance standards with planning objectives,
to design information feedback system, to compare actual performance with these
predetermined standards to determine whether there are any deviation and to measure
their significance and to take any action required to assure that all corporate resources
are being used in the most effective and efficient way possible in achieving corporate
objectives. 1)Establishment of Standards: They are norms towards which performance
has to be directed and are derived from objectives and goals of the organization.
2)Measuring and Comparing the performance: The progress of work at every stage is to
be recorded so that it can be compared with the predetermined standards. 3)Correction
of Deviation: It should be made before deviations damage the system and is generally
taken by the top management.

19) Explain Maslow’s Theory of needs?
Developed by Abraham Maslow. He saw human needs in the form of a hierarchy ,
ascending from the lowest to the highest. 1.Physiological needs: Basic needs for
sustaining human life such as food, water shelter and sleep. 2.Security or safety needs:
Needs to be free of physical nature such as loosing job, property and food on shelter.
3.Affiliation needs: People need to belong and to be accepted by others.
4. Esteem needs: Once people begin to satisfy their need to belong they tend to be
held in esteem both by themselves and by others.
5.Need for self actualization: It is the highest need and it is the desire to become
what one is capable of becoming.

20) Write about Communication ?
It is a transfer of information from the sender to the receiver with the information
being understood by both the sender and the receiver.
Types of communication:
-based on organizational structure :
Formal communication.
-Downward Communication
-Upward Communication -Horizontal Communication. Informal communication:
It is an communication that does not have a formal way of communication and it is
expressed using a glance or nod or smile. -based on media: Oral Communication:
-Cheaper way of communication, Fast and easy. Written Communication: It is a
communication through which the agreements can be made. People rely more on pen
that on tongue.


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