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V. Mary Amala Bai
2 Marks (Questions and Answers)


1. Define Management.

Management According to KOONTZ & WEIHRICH,

“Management is the process of designing and maintaining of an environment in
which individuals working together in groups efficiently accomplish selected
“Management is the art of getting things through and with people in
formally organized groups”.
OR any such definition
2. What are the characteristics of Management?
 Management is a continuous process
 Ensuring high performance standards
 Issue of timely instructions.
 They are closely linked with society
3. What are the roles of Management in organization?
 Management helps in determining the objectives of an organization
 Economic and social development takes place through Management
4. Mention the functions of Management.
Planning, Organizing, Staffing, Directing, Controlling

5. List the essential skills needed for managers.

Technical skill, Human skill, Conceptual skill

6. Name four principles of Management as per Taylor.

 Develop a standard method for performing a task and train workers to use
these methods
 provide workers with proper tools needed to work
 Selected employees were chosen for specific tasks.
 Wage incentives were provided when output was increased.

7. What is Taylor’s principle of differential piece rate system?

It states that the workers should be paid on the basis of their degree of

8. Write any two points that favor “Management is an art”.

 Management is creative
 Management includes the use of practical knowledge and personal skill

9. Write any two points that favor “Management is a science”.

 Management principles should be verifiable
 Reliable basis for predicting

10. What are the roles of a manager?

 Interpersonal roles- figurehead, leader, liason
 Informational roles- monitor, disseminator, spokesperson
 Decisional roles- entrepreneur, disturbance handler, resource
allocator, negotiator

11. Differentiate between Management and administration.

Administration Management

It is a higher level function It is a lower level function

It refers to the owners of the organization It refers to the employees

Administration is concerned with decision Management is concerned with

making execution of decisions

It acts through the management It acts through the organisation

Administration lays down broad policies Management executes these

and principles for guidance policies into practice
12. What are the different management levels?

 Top level management

 Middle level management
 Lower level management

13. Mention the functions of Top level management.

 To formulate goals and policies of the company

 To formulate budgets
 To appoint top executives

14. Mention the functions of lower level management.

 To train and develop the efficiency of workers

 To assign jobs to workers
 To give orders and instructions
 To maintain discipline and good human relations among workers.

15. Why it is important to study various management theories that have been

 To make a unified global theory of management.

 To utilize the experiences of pioneers.

1. Define planning.
Planning is the process of selecting the objectives and the determining the
course of action required to achieve these objectives.

2. List out the features of planning.

Planning is a primary function

Planning is a dynamic process
Planning is based on objectives and policies
Planning is a selective process
Planning is pervasive.

3. What are the different types of plans?

-Mission or purpose -Programmes
-Objectives - Budgets

4.Define Mission.
Mission may be defined as “as a statement which defines the role that an
organization plays in the society ”.
It is the unique aim of an organization that sets it apart from others of its type. It is
an organization’s specialization in some area.

5. Define objectives.
The term objectives or goals are often used interchangeably. Objectives are
the end results towards which the activities of firm are aimed or directed.

6. What is meant by strategy?

Strategy of an organization is the determination of long term objectives
and the adoption of the course of action and allocation of resources to achieve
those objectives. It takes into account the environmental opportunities and threats
and the organizational strength and weaknesses (SWOT).

7. What are the factors to be considered while formulating strategies?

i. Mission and objectives of an organization.
ii. Inputs, internal environment, external environment, enterprise profile,
orientation of top managers
iii. Opportunities and threats of the external environment.
iv. Strength and weakness of the firm in various aspects such as funds,
organization structure, human talent, technology, etc.

8. Define policy.
Policies are general statements or understandings which provide guidance in
decision making to various managers.

9. What is a procedure?
Procedure is a chronological order of actions required to implement a policy
and to achieve an objectives.

10. Define Budget.

A budget is a statement of expected results in numerical terms and therefore, it
may be referred as a numerical programme.
A budget is defined as a numerical statement expressing the plans, policies, and
goals of an organization for a definite period in future.

11. List out few guidelines for setting of objective.

i. Objective should cover the main features of the job
ii. Objectives must be clearly specified in writing
iii. The list of objectives should not be too long. Wherever it is possible, combine
some objectives to make the list reasonable.
iv. Objectives should be verifiable.

12. Define MBO.

MBO is a process whereby the superior and the subordinate managers of an
enterprise jointly identify its common goals, define each individual’s major areas
of responsibility in terms of results expected of him, and use these measures as
guides for operating the unit and the contribution of each of its members is

13. List out the benefits of MBO.

o Improvement of managing
o Clarification of organization
o Personnel satisfaction
o Team work
o Development of effective control.

14. What is decision making?

Decision making is defined as the process of choosing a course of action from
among alternatives to achieve a desired goal. It is one of the functions of
management and also a core process of planning.

15. What are planning premises?

Planning premises are the anticipated environment in which plans are
expected to operate.
Planning premises are planning assumptions- the expected environmental and
internal conditions.


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

2. Mention any 4 characteristics of an organization.

 Common objectives
 Specialization or division of labor
 Authority of structure
 Group of persons
 Co-ordination

3.State the kinds of organizational charts.

Vertical chart
Horizontal or left to right chart
Circular or concentric chart.

4. What is Span of control?

Span of control means the number of people managed effectively by a
single superior in an organization. The term “span of control” is also known as
“span of management”, “span of authority” and “span of responsibility.”

5. State the differences between formal and informal organization.

The formal organization is a system of well defined jobs, each bearing a
definite measure of authority, responsibility and accountability.
Informal organization is a network of personal and social relations not
established by the formal organization but arising spontaneously as people
associate with one another.

6. State the important factors in determining an effective span.

1 Capacity of superior
2 Capacity of subordinate
3 Nature of work
4 Type of technology
5 Delegation of authority

7. What is line authority and staff authority?

In line authority, a superior exercises direct command over a subordinate.
Staff authority is advisory.

8. What are the factors affecting span of control?

 Ability of the executive
 Nature of work
 Subordinate training
 Effectiveness of communication
 Control devices (Any four)

9. Define authority
Authority is the formal right of the superior to command and compel his
subordinates to perform a certain act.

10. What are the disadvantages of organizational charts?

i) Chart becomes outdated quickly
ii) Does not show informal relationship
iii) Does not show duties and responsibilities
iv) Poorly prepared charts might create misleading effects.

11. Define decentralization.

It is the process of transferring and assigning decision making authority
to lower levels of an organizational hierarchy.
If the power is fully distributed to the subordinates of the organization, it is
called decentralization.

12. Mention the disadvantages of decentralization.

i) It is difficult to have a uniform policy and procedure
ii) There is a possibility of duplication of work
iii) There is increase in complexity of coordination of decentralized organizational
iv)If not followed properly, decentralization will create chaos.

13. What is delegation of authority?

It is a process which enables a person to assign works to others and delegate them
with adequate authority to do it.

14. Mention any two differences between delegation of authority and


In delegation, a superior continues to be responsible for the work delegated

to his subordinates while in decentralization the superior is relieved from his
responsibility for the work decentralized and the subordinate becomes responsible
for that.
Delegation is essential to the management process whereas decentralization is

15. What are the barriers to effective delegation of authority?

On the manager’s side barriers may be due to:
i)Fear of competition
ii)Lack of confidence in subordinates
iii)Lack of ability to direct
iv)Unwillingness of the manager to delegate authority.

1. Define directing.
Directing is the interpersonal aspect of managing by which subordinates are
led to understand and contribute effectively and effficiently to the attainment
of enterprise objectives.

2. What are the two major activities in directing?

Giving orders to employees
Leading and motivating them

3. What are the three elements of direction function?


4. Differentiate creativity and innovation.

The term creativity refers to the ability and power to develop ideas. On the
other hand innovation means the use of those ideas.
5. Define leadership.
It is the process of influencing the activities of an individual or a group for
goal achievement in a given situation.

6. Mention the importance of good leadership.

Motivating employees
Creating confidence
Building Morale

7. Define autocratic leader.

Autocratic Leader commands and expects compliance and leads by the

ability to withhold on given rewards and punishments.

8. Define democratic leader.

Democratic or participating leader consults with subordinates on proposed

actions and decisions and encourages participation from them.

9. Define free-rein Leader.

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

10.What is job enrichment?

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

11. Define informal communication.

It is a communication that does not have a formal way of communication

and it is expressed using a glance or nod or smile.

12. What is brain storming?

It is an excellent way of developing many creative solutions to a problemIt
works by focusing on a problem and then coming up with many radical solutions
to it.

13. What is valence with respect to motivation?

Valence is the strength of a person’s preference for one outcome in relation

to others.

14. What is harmony of objectives?

When the goals of the members of the organization are in complete harmony with
and complementary to the goals of the organization it is told to be harmony of

15. Mention any four rules for effective communication.

 The information should be simple and clear
 The information should be in known language to the receiver
 The sender should use correct communicating channel
 In written communication, principle of line authority should be followed.


1. Define Control.

Control is a process that guides the activity towards some predetermined

goals. OR

Controlling is the measurement and correction of performance in order to

make sure that enterprise objectives and the plans devised to attain them are

2. What are the steps in controlling?

-Establishment of standards
-Measuring performance
-Comparing actual and standard performance
-Correction of deviations
3. Define Standards.
Standards are norms towards which performance has to be directed. They
are derived from the objectives and goals of the organization.

4. What are the benefits of control?

-Facilitates coordination
-Encourages decentralisation.
-Offers enough information for future planning and organizing.
- Ensures organizational efficiency and effectiveness

5. Mention few control techniques.

 Traditional control techniques.

-Budget and budgetary control

-Control through costing
- Break-Even analysis

 Modern control techniques.

- Control through return on investment

6. Write down the different types of budget.

-Functional budget
-Master budget
- Capital and revenue budget
-Flexible budget
-Zero-base budget etc.

7. What is break-even analysis?

It is control device used in business firms. It is concerned with cost-volume-profit
It uses a chart to depict the overall volume of sales necessary to cover costs.

8. What is break- even point? Give its graphical representation.

Break-even point is the point at which the total cost and revenue are exactly equal.
That is it is the point at which the enterprise neither earns a profit nor incurs a loss.
Graphical representation of break-even point

9. Define MIS.
Management Information System (MIS) is a system of obtaining, abstracting, storing
and analyzing data to provide effective information for the use in planning, controlling
and decision making process.

10.Define ROI.
Return on investment is a control technique based on determining the profit earned
by an organization in relation to its investment.

Return on investment (ROI) = (Sales/ Investment) X (Profit/Loss)

11.What is inventory control?

It refers to the control of raw materials and purchased materials in store and
regulations of investment in them.

12.What is JIT?
In Just in Time (JIT) inventory system, the suppliers deliver the materials to
the production spot just in time to be assembled. This method reduces the
cost of inventory.
JIT is a common inventory management technique designed to increase
efficiency, cut costs and decrease waste by receiving goods only as they are

13.Define master budget.

It is the summary budget incorporating all the functional budgets.

14. Define quality circle.

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

15. What is balance sheet?

Balance sheet contains profit and loss amount which will give vital information
about the financial position and operation of the company.

Part – B (16 Marks)

1. Explain Henry Fayol’s fourteen principles of management. (16)

Henry Fayol’s fourteen principles of management:

• Division of Labour
• Authority and Responsibility
• Unity of Command
• Line of Authority
• Centralization
• Unity of Direction
• Equity
• Order
• Initiative
• Discipline
• Remuneration of Personnel
• Stability of Tenure of Personnel
• Subordination of individual interest to the common interest
• Esprit de corps
Above points with explanation – 16 Marks

2. What are the major functions of management? Discuss them in detail. (16)

• The functions of the management are:

 Planning
 Organizing
 Staffing
 Directing
 Controlling

Above points with explanation – 16 Marks

3. Discuss in detail the evolution of management thought. (16)

 Scientific Management theory

 Administrative Management Theory
 Behaviorial Management Theory
 Management Science Theory
 Organizational Environment Theory
Under each theory contributions by different people
1. Early Classical Approach
-F.W.Taylor’s Scientific Management
- Fayol’s Contribution
2. Neo -Classical Approaches
-The Human Relations Movement
- Behavioural Approach
3. Modern Approach
-Quantitative Approach
-System Approach
-Contingency Approach
In terms of contributions by people like:
Peter Drucker
F.W. Taylor
Elton Mayo
Henri Fayol
Max Weber
Henry Gantt -
Frank & Lillian Gilbreth.

Explanation of the points by following any one style – 16 marks

4. Enumerate and explain the types of business organizations. (16)

• Individualistic Institutions - 8 marks ( With explanation)
 Sole trades
 Partnership
 Co-operative
 Joint stock company
 Multinational companies
• Government Institutions - 8 marks ( With explanation)

 Departmental undertaking
 Public corporation
 Government company
 Board organization

5. Write notes on contribution of F.W.Taylor to scientific management. (16)

Principles of Scientific Management: - 8 marks (With explanation)

 Replacing Rule of thumb with science

 Harmony in group action
 Cooperation
 Maximum output and
 Development of workers.

The Features of Scientific Management:- 8 marks ( With explanation)

 Separation of planning and working

 Functional foremanship
 Job analysis
o Time study or Work measurement
o Motion study
o Fatigue study
 Standardization
 Scientific selection and training of workers
 Financial incentives
 Economy and
 Mental revolution.
6. Discuss in detail the various roles of a manager. (16)

Henry Mintzberg has identified ten roles for

The ten roles are divided into three groups:- 16 marks ( With explanation)
 Interpersonal
o Figurehead role
o Liaison Role
o The leader Role
 Informational
o Monitor Role
o Disseminator Role
o Spokesperson Role
 Decisional
o Entrepreneur Role
o Disturbance Handler Role
o Resource Allocator Role
o Negotiator Role


1. Give an account of various steps involved in planning process. (16)

Steps involved in planning process: - 16 Marks ( With explanation)

• Perception of opportunities
• Establishing objectives
• Planning premises
• Identification of alternatives
• Evaluation of alternatives
• Choice of alternative plans
• Formulating support plans
• Establishing sequence of activities

2. Explain in detail the concept of MBO. (16)

Definition – 2 Marks
Management By Objectives (MBO) is a comprehensive managerial system
that integrates many key managerial activities in a systematic manner;
concisely directed towards the effective and efficient achievement of
organizational objectives.
MBO is a process where by the superior and the subordinate managers of an
enterprise jointly identify its common goals, define each individual’s major
areas of responsibility in terms of results expected of him, and use these
measures as guides for operating the unit and the contribution of each of its
members is assessed.
Features: 4 marks
• It is an approach and philosophy to management
• Emphasis is on objectives
• Periodic review of performance
• Participation of concerned managers in objective setting and
performance review

Steps in MBO process: 5 marks

• Setting of organizational purpose and objectives
• Key result areas
• Setting Subordinates objectives
• Matching resources with objectives
• Appraisal
• Recycling
-Objective setting
- Action planning
-Performance review
Diagram – 5 Marks

3. Discuss in detail on strategy formulation and implementation process. (16)

Definition: - 2 Marks
Strategy of an organization is the determination of long term objectives and the
adoption of the course of action and allocation of resources to achieve those

Steps in strategy formulation and implementation process: 14 Marks

with explanation
• Organisational mission and objectives
• Environmental analysis
• Corporate analysis
• Identification of alternatives
• Choice of strategy
• Implementation
• Review and control

4. Explain the process of decision making in detail and discuss on the

rationality and conditions in decision making. (16)

Decision making is defined as selection of a course of action from among

- 1 Mark
Steps in decision making process: - 8 Marks ( with explanation)
• Specific Objectives
• Identification of problems
• Search for alternatives
• Evaluation of alternatives
• Choice of alternatives
• Action
• Results
Rationality in decision making – 4 marks
- Economic man model
- Administrative man model
Decision making conditions – 3 Marks
- Certainty
- Risk
- Uncertainty

5. Define policy. What are the different types of policies? Explain in detail the
policy formulation process. (16)

Policies are general statements or understandings which provide

guidance in decision making to various managers. - 1 Mark
Types: - 4 Marks (with
• Formulated policy
• Implied policy
• Imposed policy
• Appealed policy
Policy formulation process steps: -11 Marks (with
 Definition of policy area
 Definition of policy alternatives
 Evaluation of policy alternatives
 Choice of policy
 Communication of policy
 Implementation of policy
 Review of policy

6. Write short notes on the following:

a. Forecasting (10)
Forecasting includes both assessing the future and making provisions
for it.
- 1 Mark
Features of Forecasting: - 2 Marks
It relates to future events
It defines the probability of happening of future events.
Need for forecasting: - 3 Marks (Any 6 points)
Forecasting helps in
 Promotion of organization
 Key to planning
 Coordination and control
 Success in organization
 Steps in forecasting:
 Developing groundwork for forecasting
 Estimating future business
 Comparing actual and projected results
 Refining the forecasting process
Forecasting methods: - 4 Marks ( with brief explanation)
 Historical Analogy
 Survey methods
 Opinion poll
 Business Barometers
 Time series analysis
 Extrapolation
 Regression analysis
 Input-output analysis
 Econometric models

b. Planning premises (6 marks)

Planning premises are basic assumptions about the environment. – 2 Marks
Types: - 4 Marks (with definition and example)
• Internal and external
• Controllable, semi-controllable and uncontrollable
• Tangible and intangible
• Constant and variable


1. Define formal and informal organizations. Discuss the benefits and

limitations of formal and informal organizations and enumerate any eight
differences between them. (16)
Formal organization is a system of well defined jobs, each bearing a definite
measure of authority, responsibility and accountability. – 1 Mark
Informal organization is a network of personal and social relations not
established or required by the formal organization but arising spontaneously
as people associate with one another. – 1 Mark
Advantages of formal organization: (Any five advantages as below) – 2
Overlapping of responsibility is easily avoided.
A sense of security arises from classification of task.
Motivates the employees
More stable organization can be ensured.
Boundary of each worker is clearly defined.

Advantages of informal organization: (Any five advantages as below) – 2

It gives satisfaction to the workers.
It motivates the workers
It is one of the useful channels of communication
It encourages the executives to plan the work correctly.
It fills up the gaps and deficiency of the formal organization.

Advantages of informal organization: (Any five advantages as below) – 2


They may function as counter- productive

It indirectly reduces the effort of management to promote the greater
Members are likely to put their own group satisfaction ahead of the
organization’s objective.
It is a carrier of rumour

Any 8 differences as below: – 8 Marks

Sl. No Formal Organization Informal Organization

1. Prescribed structure of roles and Natural and spontaneous
relationship coordinated towards structure arising out of the
a common objective social tendency of people to
associate and interact
2. Goals and tasks are oriented Goals and tasks are centered
towards productivity, profitability around individual and group
and so on. satisfaction
3. Well defined in shape Shapeless
4. Ranks of individuals are made Ranks of individuals are
clear by titles implicit
5. Written system of reward and Unwritten system of reward
punishment and punishment
6. The organization is enduring and The organization is not very
may grow to any size enduring being dependent on
the sentiments of members. It
tends to remain small.

2. What is departmentalization? List out its need and explain it based on

different strategies. (2+14)

Departmentalization is a process of dividing the large monolithic

functional organization into small and flexible administrative units. - 2
Need for departmentalization: - 2 Marks (Any 4)
 Efficiency of the work
 Development of managers
 Standards for performance can be fixed easily
 Provides motivation by developing the feeling of autonomy.
 Facilitates budget preparation etc.

Departmentalization by different strategies – 12 Marks (with explanation)

 Based on functions
 Based on product
 Based on customers
 Based on regions or territory
 Based on time
 Based on numbers
 Based on Process
 Matrix organisation

3. What is an organization chart? List out its uses and discuss its types in detail.

It is a diagram that displays a reporting or relationship hierarchy. It is used to

show the structure of a business, government or other organization.
- 2 marks
Uses: ( Atleast four uses as below) - 4 marks
 Used as a management tool for planning purpose
 Shows work responsibilities and reporting relationships
Types (With explanation and diagram): - 10 marks
 Top down or vertical chart
 Horizontal or left to right chart
 Circular or horizontal chart

4. Explain the following:

a. Delegation of Authority - 8 Marks
Delegation consists of granting authority or the right to make decisions in
certain defined areas and charging the subordinate with responsibility for
carrying through an assigned task. – 2 Marks
Importance: (Atleast four as below) – 2 Marks
 Relieves managers from heavy workload
 Helps to improve job satisfaction
 Helps in maintaining healthy relationship with subordinates
Types: - 1 mark
 Over delegation
 Under delegation
Process of delegation: - 2 marks
 Determination of results expected
 Assignment of duties
 Authorization for actions
 Creation of obligation
Few guidelines for making delegation effective – 1 Mark

b. Decentralization (8)
If the power is fully distributed to the subordinates of the organization, it is
called decentralization. – 2 Marks
Factors determining degree of decentralization (Any four as below): - 2 marks
 Size of organization
 History of the organization
 Availability of managers
 Pattern of planning
 Environmental influences
 Control techniques
Advantages - 1 Mark
Disadvantages - 1 mark
Measures for making decentralization effective - 2 Marks

5. What is the need for and scope of human resource management? What are
the various factors affecting human resource management? Explain the
various functions of human resource management. (16)

Human resource management is also known as staffing.

Human resource management is concerned with competing for and
competing on human resources. Competing for involves recruiting and
employing right personnel and competing on involves developing, retaining
and integrating personnel to achieve competitive advantage. – 2 Marks
Need or Importance of human resource management: (At least four points) –
2 Marks
 Helps a company to achieve objective
 Provision of job satisfaction of employees
Scope: - 3 Marks
 Planning
 Job analysis and design
 Recruitment and selection
 Orientation and induction
 Training and development
 Performance appraisal
 Compensation planning and remuneration
 Motivation, welfare, health and safety
 Industrial relations
Factors affecting human resource management: - 2 Marks
 External factors
 Internal factors
Functions of human resource management: - 7 marks (with explanation)
 Performance appraisal
 Training
 Management development
 Career development
 Organizational development

6. Enumerate and explain the various steps involved in staff selection process.
( 16)

Selection is the process of differentiating between applicants in order to

identify those with a greater likelihood of success in a job. - 2 Marks)
Steps involved in staff selection process: - 14 Marks (With explanation)
 Screening of applications
 Selection Tests
 Preliminary interview
 Medical examinations
 Final interview
 Approval
 Placement

1. Define motivation. Explain various theories on motivation. (16)
Motivation is the process of channeling a person’s inner drives so that he
wants to accomplish the goals of the organization. - 2 Marks
Motivation refers to the process by which a person’s efforts are energized,
directed and sustained toward attaining a goal.
Theories: - 14 (Any 5 theories with explanation)
 Carrot and stick approaches of motivation.
 Mc-Gregor’s theory X and theory Y
 Maslow’s hierarchy of needs theory
 Herzberg’s theory- hygiene approach to motivation
 Vroom’s expectancy theory
 Porter and Lawler expectancy theory
 Equity theory
 McClelland’s theory

2. List out the importance of leadership in an organization. What are the

effective leadership qualities? Explain the various leadership styles.

Leadership is interpersonal influence exercised in a situation and

directed through communication process, towards the attainment of a
specified goal or goals. – 2 marks
Importance: - 2 marks ( Any
 Motivating employees
 Creating confidence
 Building morale
 Leader develops team work
 Better utilization of manpower
 Directing group activities
 Discipline
Leadership qualities: - 4 Marks( Any 8)
 Honesty
 Confidence
 Patience
 Focus
 Dedication
 Consistency
 Motivate others
 Effective communication
 Multiplicity of roles
 Individuality
 Personal dignity
Leadership styles: - 8 marks (with explanation)
 Autocratic or doctoral Leadership
 Participative or democratic Leadership
 Laissez-Faire or Free rein Leadership

3. Write notes on various theories on leadership. (16)

Leadership is interpersonal influence exercised in a situation and directed
through communication process, towards the attainment of a specified goal
or goals. – 2 marks
Theories on leadership: -14 marks (with explanation)
 Trait approaches to leadership
 Behavioural theory of leadership
o The Michigan studies
o The Ohio state university studies
 Situational or contingency approaches to leadership
o Fiedler’s contingency approach
o House’s Path-goal approach

4. Discuss in detail the process of communication. (16)

Communication is the process of passing information and understanding

from one person to other. – 2 Marks
Need: - 3 marks (Any six)
 To establish and disseminate goals of an enterprise
 To develop plans for achievement
 To organize resources in effective manner
 To select, develop, and appraise members of an organization
 To lead, motivate and direct people
 To control and maintain uniform performance throughout
Elements in the process of communication: - 6 marks (With explanation)
 Sender
 Communication channel
 Symbols
 Receiver
 Noise and feedback inn communication
Communication flow in the organization: - 5 Marks (with explanation)
 Downward
 Upward
 Crosswise or horizontal or lateral
5. Discuss in detail the methods of communication and the barriers for effective
communication. (16)
Communication is the process of passing information and
understanding from one person to other. - 2 Marks
Types: - 7 Marks (with explanation)
 Formal communication
- Written
- Oral
- Non-verbal
 Informal communication

Barriers to effective communication: - 7 Marks (With explanation)

 Physical barriers
 Socio-psychological or personal barriers
 Organisational barriers
 Semantic barriers
 Mechanical barriers

6. Write a detailed note on job enrichment. (16)

Job enrichment involves redesigning jobs so that they are more challenging to the
employee and have less repetitive work. - 2 marks
Importance: - 2 marks
 To reduce repetitive work
 To increase employee’s feelings of recognition and achievement
 To provide opportunities for employee advancement
 To provide opportunities for employee growth
Characteristics: - 4 marks
 Direct feed back
 Client relationships
 New learning
 Scheduling own work
 Unique experience
 Control over resources
 Direct communication authority
 Personal accountability
Advantages - 4 marks
Disadvantages - 4 marks


1. Define controlling in management. Mention the need for controlling.

Explain various managerial controls and the process of controlling. (16)

Controlling is a process that guides the activity towards some predetermined

- 2 marks
Need for controlling: - 2 marks
 To minimize the dishonest behavior of employees
 To discover deviation in management
 To minimize the mistakes of employees and processes
 To indicate the corrective action
Various managerial controls: - 6 marks (with explanation)
 Financial controls
 Budget controls
 Marketing controls
 Human resource controls
 Computers and information controls
Process of controlling: - 6 marks (with explanation)
 Establishing standards
 Measuring performance
 Comparing actual and standard performance
 Taking corrective action

2. Discuss in detail on budgetary control. (16)

Budget is a statement of management policy expressed in physical and
monetary terms.
It is the expression of a firm’s plan in a financial form for a period of time
into the future.
(Any one definition)
Budgetary control is the process of using budgets as a means of planning and
controlling all aspects of producing and/ or selling commodities and
services. – 1 mark
Objectives or importance of budgetary control: - 2 marks (Any four)
 To plan and control the income and expenditure of the organization
 To maximize the profits
 To control the expenditure on research and development
 To provide adequate working capital
 To coordinate the activities of different units in the organization
 To decentralize the responsibility
 To motivate managers to perform inline with objectives
 For performance evaluation
Advantages and disadvantages– 2 marks
Classification of budget: - 7 marks (with explanation)
 Functional classification
- Sales budget
- Production budget
- Cost of production budget
- Capital expenditure budget
- Research and development budget etc.
 Time classification
- Long term budget
- Short term budget
- Current budget
 Rigidity
- Fixed
- Flexible etc.
Steps in budgetary control techniques: - 4 marks (with explanation)
 Set the objectives clearly
 Formulate the necessary plans to ensure that the objectives are
 Translate the plans into budgets
 Relate the responsibilities of executives of the budgets
 Continuous comparison of the actual results with that of the budget
 Investigating into the deviations and establishing the causes
 Presentation of information to the management relating the variances
to individual responsibilities.
 Corrective action of the management.

3. Explain non budgetary control techniques in detail. (16)

Controlling is a process that guides the activity towards some predetermined
Non budgetary control techniques: - 2 marks
 Traditional techniques (Any four) - 7 marks (with explanation)
- Statistical data and charts
- Personal observation
- Operational audits
- Break-even analysis
- Special reports
- Responsibility accounting
- Balanced scorecard
 Modern techniques (Any two) - 7 marks (with explanation)
- Linear Programming
- Program evaluation and review techniques (PERT)
- Critical path method
- Gantt chart
- Benchmarking

4. Explain the role of MIS at various levels of management. (16)

Information system enables managers to control how they do

business. The computer plays a vital part in control of
business operations.
Use of computers in management control: - 3 marks (Any six)
 Sales forecast and control
 Payroll
 Business Management
 Accounting
 Personnel management information
 Manufacturing information control
 Banking and credit
Management Information System (MIS) is a system of obtaining, abstracting,
storing and analyzing data to provide effective information for the use in planning,
controlling and decision making process. - 2 marks
Need for MIS - 2 marks
Resources of MIS: - 2 marks
- Computer hardware
- Software
- Data and
- People
Steps in implementation of MIS: - 5 marks (with explanation)
 Input data collection
 Information storage and retrieval
 Analysis
 Output
 Decision making
 Action
Application of MIS - 2 Marks
 Marketing
 Manufacturing
 Logistics
 Finance and accounting
5. What are the characteristics of good reporting system? Enumerate and discuss the
types of management reporting. (16)
Management reporting is a system of communication, normally in the written
form, of facts which should be brought to the attention of various levels of
management who use them to take suitable action. – 2 marks
Characteristics of good reporting system: - 4 marks (Any 8)
 Proper form
 Simplicity
 Promptness
 Accuracy
 Comparability
 Consistency
 Relevancy
 Simplicity
 Flexibility
 Cost benefit analysis
 Controllability
Classification of management Reporting: - 10 marks (with explanation)
 Oral report
 Written report
- According to purpose or objects
- External reports
- Internal reports
- According to period
- Routine reports
- Special reports
- According to functions
- Operating reports
- Financial reports

6. Discuss in detail on the concept of international management and global

theory of management. (10+6)

International Management

International management involves conducting business and industrial operations

in foreign countries and is affected by cultural and national influence.

Generally, those who run an international management will have their head office
in one country and business activities in other countries.- 2 marks

MNC (Multinational Companies) - 5 marks

Multinatinal corporating are companies that manufacture and market products or

services in several countries.

Characteristics of multinational corporations:

1. The MNC top manager regards the entire world as the relevant frame of
2. MNC is reduction of unit costs through producing more units.
3. MNC the parent company and its foreign affiliates act in close alliance and
cooperation with one another.
Advantages of MNC:
1. The economy benefits from better use of technology.
2. MNC can promote quality products at lower cost.
3. MNC helps to expand the market.
4. MNC leads to increase in production exports and imports of the required
5. MNC increase governments revenues.
6. MNC provides lower labour costs.
Disadvantages of MNC:

1. Competition from MNC affects local industry.

2. MNC discourages competition among their subsidiaries.
3. MNC utilizes local labour with low cost while obtaining high profits.
4. MNC’s involvement results in the lack of development of local R&D.

Factors influencing MNC:

Some of the factors which affect the operations of MNC are discussed
 Political and legal factor.
 Economic factors.
 Socio-cultural factors.
Managerial functions at Internatinal level: (3 Marks)

1. Planning.
2. Organizing.
3. Staffing.
4. Directing
5. Control.
Global Theory Of Management (3 marks)

1. Situational and contingency approaches.

2. Motivation and leadership theory.
3. Organization behaviour.
4. Technology.
Japanese management: (3 Marks- Any one global management theory)

They combine structure and people with Japanese culture to create a highly
productive and efficient organization.

Characteristics of Japanese Management or Theory-Z

1. Human Resources.
2. Job security.
3. Team work.
4. Promotion.
5. Appraisal system.
6. Communication.
7. Decision making.
Weakness of Japanese management:

1. It is suppressed individual talents.

2. Promotion policy is not encouraging outstanding younger employees.
3. Decision making process is time consuming process