4/16/2015

WWW.ALSTUFF.NET

PERSONNEL MANAGEMENT

QUESTION BANK MID SEM{50 MARKS} | MALKESH.P.SOPARIWALA

UNIT 2: MANAGEMENT HISTORY

Q.10) Scientific management theory by Fredrick Taylor

Frederick W. Taylor, Henry L. Gantt, and Frank and Lillian Gilbreth
devised the body of principles known as scientific management
theory.

Taylor based his management system on production-line time
studies. Using time study as his base, he broke each job down into
its components and designed the quickest and best methods of
performing each component.

He also encouraged employers to pay more productive workers at
a higher rate than others, using a "scientifically correct" rate that
would benefit both company and worker.

This system is called Differential Rate System

Gantt originated a charting system for production scheduling.

Every worker's progress was rated publicly and recorded on
individual bar charts,--in black on days the worker made the
standard, in red when he or she fell below it. Going beyond this.

Frank B. and Lillian M. Gilbreth collaborated on fatigue and
motion studies and focused on ways of promoting the individual
worker's welfare. To them, the ultimate aim of scientific
management was to help workers reach their full potential as
human beings.
Q.11) Henry Fayols 14 principles of management.

1. Division of Labor

3. Discipline

5. Unity of Direction

2. Authority
4.Unity of Command
6. Remuneration



7.Subordination of Individual Interest to the Common Good

8. Centralization
9. The Hierarchy
10.Order
11. Equity
12. Stability of Staff 13. Initiative
14. Espirit de Corps

Q.12) System theory of management.

This approach is aimed at identifying the nature of relationship
among various components of the organization which is
considered as larger system.

Chester Barnard, George Homans, Herbert Simon etc. are the
contributors in System Approach.

This approach gives managers a way of looking at the organization
as a whole and as a part of the larger, external environment.

Systems theory tells us that the activity of any segment of an
organization affects, in varying degrees, the activity of every other
segment.

It calls attention to the dynamic and interrelated nature of
organizations and the management task.

It provides a framework within which we can plan actions and
anticipate both immediate and far-reaching consequences while
allowing us to understand unanticipated consequences as they
develop.
Q.13) The human relation movement.

Human relations is frequently used as a general term to describe
the ways in which managers interact with their employees.

When "employee management" stimulates more and better
work, the organization has effective human relations; when

morale and efficiency deteriorate, its human relations are said to

be ineffective.

The human relations movement arose from early attempts to
systematically discover the social and psychological factors that
would create effective human relations.

This approach aims at providing high degree of satisfaction and
motivation through improved working conditions, style of
supervision and sense of security.

UNIT 4: ORGANIZATION STRUCTURES & DESIGN

Q.15) Types of organization structures.

Designing of organization structures involves Determining objectives.
Define activities.
Classify activities.
Identify individuals for function.
Assign authority for action.
Prepare code of conduct.
Q.16) what is chain of command?

It means that the command is to be given to a particular person
and that particular person should take over responsibility over
himself.
Q.17) what is meant by departmentation? List different types of
departmentation.

DEPARTMENTATION:

 Departmentation means dividing & grouping the activities

and employees of an enterprise into various
departmentation. It is a process of division of total work of
an enterprise into individual function & sub functions.

TYPES OF DEPARTMENTATION:
Departmentation based on function.
Departmentation based on methods.
Departmentation based on product.
Departmentation based on territory.
Departmentation based on customer.
Q.18) Give advantages & disadvantages of different types of
departmentation.

Departmentation based on function.
ADVANTAGES:
 There is logical reflection of functions.
 It follows principles of specialization.
 It is a good mechanism of control.
 Training is simplified.
DISADVANTAGES:
 It is not suitable for an enterprise operating over
large area.
 Responsibility of profit tends to top.
 Co-ordination among departments becomes difficult.

Departmentation based on methods.
ADVANTAGES:
 It requires special skills.
 Economic advantage can be achieved.

 It uses specialized technology.

DISADVANTAGES:
 Co-ordination among departments becomes difficult.
 Responsibility of profit tends to top.

Departmentation based on product.
ADVANTAGES:
 Greater emphasis on product lines.
 Can provide better customer service.
 Responsibility of profit is divided.
DISADVANTAGES:
 A customer has to deal with sales person.
 Duplication of activities.
 Controlling of all product lines is difficult.

Departmentation based on territory.
ADVANTAGES:
 It places responsibility over lower level management.
 It improves communication skills.
 It improves coordination on a regional basis.
DISADVANTAGES:
 It requires higher cost of coordination & control from
headquarters.
 It results more managerial level which increase
overhead costs.
Q.19) Explain centralization & decentralization of authority. Give its
advantages & disadvantages.


Centralization: It means that the work of subordinates is reduced

and the overall responsibility is on the head of the unit. It can be
worked only on lower level.

Decentralization: It is the extent where power & authority are
delegated to lower levels in an organized structure.
ADVANTAGES OF DECENTRALIZATION:
 Reducing burden of top executives.
 Enriches the jobs at lower level.
 Leads to faster decision at lower level.
 It establishes the relatively independent units.
DISADVANTAGES OF DECENTRALIZATION:
 Uniform policy about decentralization cannot be
implemented.
 Organization complexity increases.
 Upper management loses some control in
organization.
Q.23) when matrix structure can be used?

Matrix structure is formed when a project organization is
superimposed on a functional organization.

It is suitable when there is need to handle many activities
simultaneously.
Q.24) discuss tall & flat structures.

Tall structures are the structrure of an organization in which there
is series of relationship from top-to-bottom level of organization.

In flat structures different experts guide subordinates in
organization. Workers or subordinates thus receive order from

several specialists or officers & are responsible for their

performance to different experts.