SHORT QUESTIONS

Define Planning
Define Organising Define Decision making

What is bounded rationality?

What is span of control? What is Centralisation and Decentralisation? What is strategic planning? What is SWOT? What is a Programmed decision? What is a Standing plan?

1. Define Planning
According to Haynes and Massie;

Planning is that function of a manager in which he decides in advance what he will do. It is a decision making process of a special kind, its essence is futurity.

 Planning

as a process involves the determination of future course of action that is What action How to take action When to take action
in management

Planning is a basic activity process.

2. Define Organising
Chester Bernard: Organisation is a

system of cooperative activities of two or more persons L. Urwick: Organisation is the process of dividing up of the activities which are necessary to any purpose and arranging them in groups which are assigned to individuals

3. Define decision making

Decision making is the cognitive (mental)

process in which there is a selection of a course of action among alternatives.

Every decision making process produces a

final choice.
Decision making is a reasoning process which

can be rational or irrational.

Examples: what to buy, when to buy, where

to buy

4. What is bounded rationality?

Can decision of a two person be same?

IF NO? WHY?

WHAT affects decision making process

 In decision-making, rationality of

individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision It was proposed by Herbert Simon.

5. What is span of control

It is a limit to the number of subordinates which a

manager can directly control. This limit is known as span of management

When a manager manages a small number of

subordinate it is called narrow span of management. While if where are large number of subordinate it is called wide span of management.

Figure 1.2: Spans of control in wide

versus narrow structures

Factors determining span of management

Time
Training Requirements
Capacity of Managers and subordinates Communication facilities Nature of Work Dynamism of business Planning Degree of Decentralisation

6. What is Centralisation and Decentralisation?

Centralization - The location of decision

making authority near top organizational levels.

Decentralization - The location of

decision making authority near lower organizational levels.

7. What is strategic planning?

Strategic planning is the long range

planning process used to define and achieve organisational goals

Long range Define goals Achieve goals

It is also known as Corporate

planning

8. What is SWOT?

 The aim of any SWOT analysis is to identify the key

internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories:
Strengths

Internal Factors Organization

Weaknesses Opportunities

External Factors External Environment

Threats
Source: http://en.wikipedia.org/wiki/SWOT_Analysis

Example: OBJECTIVE: Apple wants to sell 1 million iphone 5C model in INDIA in 2014.

 Opportunity:

Positive Government policies Rising Demand

Threats:

Heavy competition More import duties

 Strengths:

Strong marketing team Well designed product

Weakness:

Very high price

9. What is Programmed decision?

Prof Herbert Simon has given this term.
Programmed decisions are basically of a

routine type for which organisation has developed specific processes. These decisions are related to day-today problems EXAMPLE: Walmart, Big-Bazaar inventory control

10. What is a STANDING plan?

A standing plan is a plan which can be

used repeatedly in similar situation. It is useful in that situation where a job is of repetitive nature EXAMPLE: Human Resource manager prepares a Promotion plan for its employees.