(Q.2) How many types of managerial decisions are there, Explain.

Answer: There are two types in connection with the managerial decisions, They are:1. Vertical managerial decision, 2. Horizontal managerial decision. 1. Vertical managerial decision This means that the decisions are taken vertically that is from top level to bottom level. The top level managers will take the decisions and pass it towards the middle level and they will pass it to the bottom level, there will be no consideration for the bottom level managers to play in the decision making process. The power will be vested only with top levels. 2. Horizontal managerial decision Here the top level managers will consider the ideas and suggestion from the bottom level before taking a decision.

# ALTERNATE ANSWER TO THE SAME QUESTION:

Types of Managerial Decisions The first classification of personal and organizational decisions was suggested by Chester Barnard in his classic book: The functions of the Executive. In his opinion, the basic difference between the two decisions is that personal decisions cannot ordinarily be delegated to others, whereas organizational decisions can often, if not always, be delegated. Thus, a manager makes organizational decisions that attempt to achieve organizational goals and personal decisions that attempt to achieve personal goals. Personal decisions can affect the organization, as in the case of a senior manager deciding to resign. Another common way of classifying types of decisions is according to whether they are basic or routine Basic decisions are those which are unique, one-time decisions involving long-range commitments of relative permanence or duration, or those involving large investments. Examples of basic decisions in a business firm include plant location, organization structure, wage negotiations, product line, etc. Most top management policy decisions can be considered as basic decisions. Routine decisions are the everyday, highly repetitive management decisions which by themselves have little impact on the overall organization. However, taken together, routine decisions play a tremendously important role in the success of an organization. Examples of routine decisions include an accounting entry decision and a salespersons decision on what territory to cover.

Finally, most management decisions typically fall into one of two categories: programmed and nonprogrammed. Programmed decisions involve situations that have occurred often enough to enable decision rules to be developed and applied in the future. Programmed decisions are used for dealing with recurring organizational problems, whether complex or uncomplicated. If a problem occurs repetitively and routinely, and a specific approach can be worked out for handling it, then it may be a candidate for programmed decision making. Examples of programmed decisions are inventory of a given product to be maintained, salary range of a newly hired employee, and handling of customer complaints poorly defined and largely unstructured, and have important consequences for the organization. Non programmed decisions deal with unusual or exceptional problems. If a problem has not come up often enough to be covered by a policy or is so important that it deserves special treatment, it must be handled as a nonprogrammed decision.

(Q.8) Explain difficulties in delegation. Answer: Delegation in an organizational setting is a necessary, but often tough, task. Without direction and order, an organizational environment would experience chaos. Delegation of tasks to various different team members is an effective, and efficient, way to get work done. Many managers have different approaches and philosophies regarding the act of delegation, and for some supervisors the delegation aspect of management does not necessarily come easy. No matter what the reason is for the avoidance of distributing work, the end result is the same; the manager who does not effectively delegate often ends up with a heavy personal workload. There are many reasons why distributing the workload to employees can be difficult for some managers. Not being willing to delegate typically leads to higher amounts of pressure and can result in other problematic issues in the workplace. The reasons for not delegating may vary, and many reasons are rooted in personality traits, such as being hesitant or overly controlling. Here are a few of the top reasons why managers may have difficulty with delegation: Letting go Many managers have difficulty letting go of having a direct hands-on position in areas of responsibility. It is not uncommon for individuals with this kind of management style to feel the job will only be done properly if they handle the task themselves. A way to overcome this mindset is to try and accept it is perfectly OK to ask employees to work on certain tasks and allow them leverage to do the job. By setting milestones, offering a framework and providing the ability to be available if any issues arise, will give employees the tools they need to succeed and do the job correctly.

Time consuming All too often managers feel it takes too much time to sit down and explain to an employee how to do a task, especially if they are burdened with several deadlines. In these instances some individuals feel it is easier and quicker to do the tasks themselves. What is not realized is the tasks which are redundant and repetitive can be shown to an employee once and then the individual can learn the job inside and out. While in the short term it takes some time, in the long term once an employee is familiar with the process, it will be a huge time saver. Fear Fear is often a contributing factor to an inability to delegate. The fear may stem from the job being done wrong by an employee or that a superior may look badly upon the manager if they see the boss delegating tasks they should be doing. The fear isn't always a rational one, but is a common mindset some managers fall into when it comes to delegation. Some managers have difficulty letting go of any level of control and this prevents them from delegating tasks to others, or they hand over tasks, but continue to micromanage. In other instances, managers may feel awkward handing off part of what they may consider to be their own job that they should handle themselves. Whatever the reasons for the discomfort it is important to realize that delegation is a part of management and the hesitancy needs to be overcome in order to effectively handle this area of administrative duties. It is also necessary for managers who have trouble with the act of delegation to step back and try to identify why they are having this issue. Once the core causes can be recognized, it is easier to overcome difficulties with delegating tasks. After the root issues are recognized and addressed, managers can then come up with a solution and revamp their techniques in order to become more skilled at delegating work.

(Q.4) Describe the various benefits and limitations of MBO. Answer: Management by Objectives is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and is consciously directed towards effective and efficient achievement of organizational and individual objectives. It includes four elements: goal specificity, participatory decision making, an explicit timeframe and performance feedback. The overall objectives are translated into specific objectives for each succeeding level in the organization and is therefore, participatory and two way osmosis process. If the individuals achieve their goals, then their units goals will be attained and so on up the chain until the organizations overall objectives become a reality

Benefits: One major benefit of the MBO process is its ability to focus management and employee attention on specific activities that directly influence performance and goal attainment. Also, MBO ties the goals of each manager to the goals of managers on levels above and below, acting as a coordinating system and facilitating teamwork throughout the organization. Thanks to these links and to the periodic reviews, managers communicate more clearly and more frequently about goals, plans, and results. Further, the MBO process fosters participation, which can encourage stronger commitment and motivation. MBO also encourages managers to exercise self-control in

implementing their action plans, which can help develop personal and professional skills. Finally, MBO provides an unbiased and systematic way to measure the contribution of managers and employees. Limitations: Although the MBO process offers many benefits, it also has a number of limitations. Without consistent involvement and commitment from top management, an MBO program can prove ineffective. Another limitation is the difficulty of setting specific MBO goals for particular jobs and areas of performance. Also, an MBO program may overemphasize short-term goals and performance, postponing or ignoring activities needed to maintain long-term organizational health. Moreover, individuals may emphasize their own MBO goals to the detriment of the goals of other individuals and groups. The efficiency of the process (and employee motivation) can also be limited by the mandate to complete forms about goal setting, performance standards, and reviews. Finally, if the MBO process is administered too rigidly, managers may lose the flexibility to effectively respond to environmental changes. (Q.6) What do you understand by 6.1 Line Organization Line organization is the oldest and simplest method of administrative organization. According to this type of organization, the authority flows from top to bottom in a concern. The line of command is carried out from top to bottom. This is the reason for calling this organization as scalar organization which means scalar chain of command is a part and parcel of this type of administrative organization. In this type of organization, the line of command flows on an even basis without any gaps in communication and co- ordination taking place. Features of Line Organization 1. 2. 3. 4. It is the most simplest form of organization. Line of authority flows from top to bottom. Specialized and supportive services do not take place in these organization. Unified control by the line officers can be maintained since they can independently take decisions in their areas and spheres. 5. This kind of organization always helps in bringing efficiency in communication and bringing stability to a concern. Merits of Line Organization 1. Simplest- It is the most simple and oldest method of administration. 2. Unity of Command- In these organizations, superior-subordinate relationship is maintained and scalar chain of command flows from top to bottom. 3. Better discipline- The control is unified and concentrates on one person and therefore, he can independently make decisions of his own. Unified control ensures better discipline. 4. Fixed responsibility- In this type of organization, every line executive has got fixed authority, power and fixed responsibility attached to every authority. 5. Flexibility- There is a co-ordination between the top most authority and bottom line authority. Since the authority relationships are clear, line officials are independent and can flexibly take the decision. This flexibility gives satisfaction of line executives.

6. Prompt decision- Due to the factors of fixed responsibility and unity of command, the officials can take prompt decision. Demerits of Line Organization 1. Over reliance- The line executives decisions are implemented to the bottom. This results in over-relying on the line officials. 2. Lack of specialization- A line organization flows in a scalar chain from top to bottom and there is no scope for specialized functions. For example, expert advices whatever decisions are taken by line managers are implemented in the same way. 3. Inadequate communication- The policies and strategies which are framed by the top authority are carried out in the same way. This leaves no scope for communication from the other end. The complaints and suggestions of lower authority are not communicated back to the top authority. So there is one way communication. 4. Lack of Co-ordination- Whatever decisions are taken by the line officials, in certain situations wrong decisions, are carried down and implemented in the same way. Therefore, the degree of effective co- ordination is less. 5. Authority leadership- The line officials have tendency to misuse their authority positions. This leads to autocratic leadership and monopoly in the concern.

6.2 Functional Organization Functional organization has been divided to put the specialists in the top position throughout the enterprise. This is an organization in which we can define as a system in which functional department are created to deal with the problems of business at various levels. Functional authority remains confined to functional guidance to different departments. This helps in maintaining quality and uniformity of performance of different functions throughout the enterprise. The concept of Functional organization was suggested by F.W. Taylor who recommended the appointment of specialists at important positions. For example, the functional head and Marketing Director directs the subordinates throughout the organization in his particular area. This means that subordinates receives orders from several specialists, managers working above them. Features of Functional Organization 1. The entire organizational activities are divided into specific functions such as operations, finance, marketing and personal relations. 2. Complex form of administrative organization compared to the other two. 3. Three authorities exist- Line, staff and function. 4. Each functional area is put under the charge of functional specialists and he has got the authority to give all decisions regarding the function whenever the function is performed throughout the enterprise. 5. Principle of unity of command does not apply to such organization as it is present in line organization.

Merits of Functional Organization 1. Specialization- Better division of labour takes place which results in specialization of function and its consequent benefit. 2. Effective Control- Management control is simplified as the mental functions are separated from manual functions. Checks and balances keep the authority within certain limits. Specialists may be asked to judge the performance of various sections. 3. Efficiency- Greater efficiency is achieved because of every function performing a limited number of functions. 4. Economy- Specialization compiled with standardization facilitates maximum production and economical costs. 5. Expansion- Expert knowledge of functional manager facilitates better control and supervision. Demerits of Functional Organization 1. Confusion- The functional system is quite complicated to put into operation, especially when it is carried out at low levels. Therefore, co- ordination becomes difficult. 2. Lack of Co- ordination- Disciplinary control becomes weak as a worker is commanded not by one person but a large number of people. Thus, there is no unity of command. 3. Difficulty in fixing responsibility- Because of multiple authority, it is difficult to fix responsibility. 4. Conflicts- There may be conflicts among the supervisory staff of equal ranks. They may not agree on certain issues. 5. Costly- Maintenance of specialists staff of the highest order is expensive for a concern.

6.3 Line and Staff Organization Line and staff organization is a modification of line organization and it is more complex than line organization. According to this administrative organization, specialized and supportive activities are attached to the line of command by appointing staff supervisors and staff specialists who are attached to the line authority. The power of command always remains with the line executives and staff supervisors guide, advice and counsel the line executives. Personal Secretary to the Managing Director is a staff official. MANAGING DIRECTOR Production Manager Plant Supervisor Foreman Marketing Manager Market Supervisor Salesman Finance Manager Chief Assistant Accountant

Features of Line and Staff Organization

1. There are two types of staff : a. Staff Assistants- P.A. to Managing Director, Secretary to Marketing Manager. b. Staff Supervisor- Operation Control Manager, Quality Controller, PRO 2. Line and Staff Organization is a compromise of line organization. It is more complex than line concern. 3. Division of work and specialization takes place in line and staff organization. 4. The whole organization is divided into different functional areas to which staff specialists are attached. 5. Efficiency can be achieved through the features of specialization. 6. There are two lines of authority which flow at one time in a concern : a. Line Authority b. Staff Authority 7. Power of command remains with the line executive and staff serves only as counselors. Merits of Line and Staff Organization

1. Relief to line of executives- In a line and staff organization, the advice and counseling which is provided to the line executives divides the work between the two. The line executive can concentrate on the execution of plans and they get relieved of dividing their attention to many areas. 2. Expert advice- The line and staff organization facilitates expert advice to the line executive at the time of need. The planning and investigation which is related to different matters can be done by the staff specialist and line officers can concentrate on execution of plans. 3. Benefit of Specialization- Line and staff through division of whole concern into two types of authority divides the enterprise into parts and functional areas. This way every officer or official can concentrate in its own area. 4. Better co-ordination- Line and staff organization through specialization is able to provide better decision making and concentration remains in few hands. This feature helps in bringing co- ordination in work as every official is concentrating in their own area. 5. Benefits of Research and Development- Through the advice of specialized staff, the line executives, the line executives get time to execute plans by taking productive decisions which are helpful for a concern. This gives a wide scope to the line executive to bring innovations and go for research work in those areas. This is possible due to the presence of staff specialists. 6. Training- Due to the presence of staff specialists and their expert advice serves as ground for training to line officials. Line executives can give due concentration to their decision making. This in itself is a training ground for them. 7. Balanced decisions- The factor of specialization which is achieved by line staff helps in bringing co- ordination. This relationship automatically ends up the line official to take better and balanced decision. 8. Unity of action- Unity of action is a result of unified control. Control and its effectivity take place when co- ordination is present in the concern. In the line and staff authority all the officials have got independence to make decisions. This serves as effective control in the whole enterprise.

Demerits of Line and Staff Organization

1. Lack of understanding- In a line and staff organization, there are two authority flowing at one time. This results in the confusion between the two. As a result, the workers are not able to understand as to who is their commanding authority. Hence the problem of understanding can be a hurdle in effective running. 2. Lack of sound advice- The line official get used to the expertise advice of the staff. At times the staff specialist also provides wrong decisions which the line executive have to consider. This can affect the efficient running of the enterprise. 3. Line and staff conflicts- Line and staff are two authorities which are flowing at the same time. The factors of designations, status influence sentiments which are related to their relation, can pose a distress on the minds of the employees. This leads to minimizing of coordination which hampers a concerns working. 4. Costly- In line and staff concern, the concerns have to maintain the high remuneration of staff specialist. This proves to be costly for a concern with limited finance. 5. Assumption of authority- The power of concern is with the line official but the staff dislikes it as they are the one more in mental work. 6. Staff steals the show- In a line and staff concern, the higher returns are considered to be a product of staff advice and counseling. The line officials feel dissatisfied and a feeling of distress enters a concern. The satisfaction of line officials is very important for effective results.

(Q.13) Define Motivation. Discuss the various methods to promote motivation. Answer: Motivation is the word derived from the word motive which means needs, desires, wants or drives within the individuals. It is the process of stimulating people to actions to accomplish the goals. In the work goal context the psychological factors stimulating the peoples behavior can be

desire for money success recognition job-satisfaction team work, etc

One of the most important functions of management is to create willingness amongst the employees to perform in the best of their abilities. Therefore the role of a leader is to arouse interest in performance of employees in their jobs. The process of motivation consists of three stages:1. A felt need or drive 2. A stimulus in which needs have to be aroused 3. When needs are satisfied, the satisfaction or accomplishment of goals. Therefore, we can say that motivation is a psychological phenomenon which means needs and wants of the individuals have to be tackled by framing an incentive plan.

Various Methods to promote motivation may be summarized as below: 1. Monetary Incentives: Incentives like cash emoluments, fringe benefits, security of tenure, conditions of service etc. are some of the monetary techniques which may be adopted by the management to motivate the staff in an industrial organization. 2. Job-based techniques: To satisfy the social and psychological requirements of the job holder, certain job-based techniques like job simplification, job rotation, job enlargement and job enrichment maybe followed. Job rotating reduced the boredom and enlarges ones knowledge. Job enlargement involves despecialization and an increase in the number and type of operation assigned to an individual to make the job more pleasant and interesting. Job enrichment encourages an employee to plan his own work and control the pace and quality of his output. 3. MBO Technique: According to it both men and boss participate and jointly determine 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 assessing the contribution of each of its members. 4. Leadership Techniques: Autocratic, democratic and participativesupportive styles of leadership have their own implications for employee motivation, morale and productivity in the short term and in the long run.

5. Sensitivity training: It is training technique given to groups of managers themselves so that they may behave with and motivate their subordinates better. This sort of training is important to make the managers: (i) Understand themselves better, (ii) becomes more open-minded about the needs and motives of their subordinates, (iii) develop insight into group process and work situations. (iv) Cultivate a systematic and scientific thinking process, (v) develop a systems view of the total organizational environment and (vi) acquire behavioral skills in dealing with subordinates. Monetary Motivation Personal Different Incentives under the plans propounded by various thinkers- Taylor, Reven, Halsay etc. Group 1. Equal wage rate for equal work 2. Annual Increment based on special skill and ability 3. Pensions 4. Dividends and Bonus 5. Compulsory Bonus 6. Profit sharing Plan 7. Participation in management.

Non-Monetary Motivation Personal 1. Dignity of work 2. Low productivity and inefficiency are shameful 3. Future promotion 4. Security and stability of job 5. Motivation and reward for constructive work Group 1. Social recognition for work 2. Patriotism and Loyalty. 3. Suggestions from workers 4. Healthy competition 5. Team work 6. Honest and sincere work for attainment of an objective Organizational 1. Human relations 2. Participation in management 3. Communication better and effective 4. Building of morale 5. Better discipline.

(Q.7) What is the scope of management? Also describe briefly the importance of management. Answer: SCOPE OF MANAGEMENT Although it is difficult to precisely define the scope of management, yet the following may be included in it; 1. Subject- matter of Management. Planning. Organization. Direction. Co-ordination and Control form the subject-matter of management. 2. Functional Areas of Management. Functional areas of management include (i) Financial Management: which includes forecasting cost control, management accounting, budgetary control. Statistical control, financial planning and management of earnings. (ii) Personnel Management; which includes recruitment, training, transfer, promotion, demotion, retirement, termination, labor-welfare and social security, industrial relations, etc. (iii) Purchasing Management; which includes inviting tenders for raw materials, placing orders, entering into contracts, materials control, etc. (iv) Production Management; which includes production planning, production control techniques, quality control and inspection, time and motion studies, etc. (v) Maintenance Management; which relates to the proper care and maintenance of the buildings, plant and machinery etc. (v) Transport Management; which includes packing, warehousing transportation by rail, road, air, etc. (vii) Distribution Management; which includes marketing, marketresearch, pricedetermination, market-risk and their avoidance, advertisement, publicity, sales promotion, etc. (viii) Office Management; which includes the proper layout, staffing and equipment of the office. (ix) Development Management; which relates to experimentation, research, etc. 3. Management is an inter-disciplinary approach. For the correct application of the management principles study of commerce, economics, sociology, psychology and mathematics is very essential. 4. The principles of management are of universal application. 5. Three essentials of management are: (i) Scientific method, (ii) Human relations, and (iii) Quantitative technique 6. Modern management is an agent of change. The techniques of management can be improved by proper research and development.

IMPORTANCE OF MANAGEMENT The significance of 'Management' may be outlined in the following paragraphs: 1. Management only can meet the challenge of change. ln recent years the challenge of change has become intense and critical. The complexities of modern business can be overcome only by scientific management. 2. Effective utilization of the seven M's. There are seven M's in business, viz., men, material, money, machines, methods, markets and management. Management stands at the top of all these M's. It determines and controls all other factors of business. 3. Development of Resources. Good management produces good business by creating a vital, dynamic and life-giving force in the organization. 4. Management directs the organization. Just as the mind directs and controls the body to fulfill its desires, similarly management directs and controls the organization to achieve the desired goal. 5. Integrates various interests. ln the groupefforts, there are various interest groups and they put pressure over other groups for maximum share in the total output. Management balances these pressures and integrates the various interests. 6. Management provides stability. ln the society by changing and modifying the resources in accordance with the changing environment of the society. 7. Provides innovation. Management provides new ideas, imaginations and visions to the organization and necessary life for better and greater performance. 8. Provides co-ordination and established team-spirit. Management co-ordinates the activities of the different departments in an enterprise and establishes team-spirit amongst the personnel. 9. Tackles business problems. Good management serves as a friend, philosopher and guide in tackling business problems. It provides a tool for the best way of doing a task. 10. A tool of personality development. Management is not the direction of things, but the development of men. lt makes the personality of the people and attempts to raise their efficiency and productivity.

(Q.9) What do you mean by the terms process of management? Name the essential elements in the process of management. Answer: MANAGEMENT PROCESS Management is an activity consisting of a distinct process the Management process which is primarily concerned with the important task of goal achievement. Every business enterprise has certain pre-determined objectives. Just as in a football or hockey team, howsoever, expert the players might be, they cannot defeat the rival team until and unless they make an integrated effort under the directions of an able Captain. Similarly, no business enterprise can achieve its objectives until and unless all the members of the unit make an integrated and planned effort under the directions of a central co-ordinating agency. ln management terminology, this central co-ordinating agency is technically known as that we call M-A-N-A-G-E-M-E-N-T' and the methodology of getting things done is known as 'Management Process'. The process, in general, is defined as a series of actions or operations conducting to an end. The logic of the management process is that particular functions are performed in a sequence through time. ln other words, whatever functions are performed by a manager and the sequence in which they are performed, is designated as 'Management Process'. Ordinarily there are two main functions of each manager, viz. (i) Decision making, and (ii) implementation of the decisions; and collectively these two fall under the expression Management Process. Planning, Organising, Actuating, and Controlling involved in the achievement of business goals is known as 'Management Process'.

BUSINESS GOALS PLANNING ORGANISING ACTUATING CONTROLLING

Thus, the best way to analyze the management process is in terms of what a manager does. According to this approach, the Management Process may be subdivided into four basic heads; viz., (1) Planning, (2) Organizing, (3) Actuating, and (4) Controlling.

(Q.10) What are the determinants of decentralization? What is the technique of decentralization? Answer: The determinants of decentralization: 1. History of the organisation and management philosophy. lf a company has grown-up from a small group of persons, there is a tendency to centralise. Further, if the philosophy of the top management is not to decentralise authority, centralisation will prevail. 2. Large-sized flat topped organisation. Decentralisation is unavoidable in a large enterprise with numerous managers having a long chain of command. In a flat topped organisation, the man at the top has a number of deputies each of whom is put in charge of a distinct activity or a department. 3. Costliness and significance of decision. Strategic decision involving higher cost of mistake are always made by top management and do not encourage decentralisation of authority. 4. Uniformity of policy. Only centralised authority can ensure uniformity of policies (e.g., policy regarding price, quality, service, etc.) 5. Availability of competent subordinate managers. Decentralisation necessitates the services of competent subordinate managers; hence, efficient training for management development becomes a must to provide many managers under decentralisation. 6. Dynamic conditions. In a static organisation centralisation will work successfully, but under conditions of uncertainty or when technology and markets are in a constant state of change, decentralisation would be preferred. 7. Dispersal of operations. If the different operations of the organisation are mostly concentrated at one place or in a region, centralisation would be feasible; but if they are dispersed over different territories, decentralisation would be a must. THE TECHNIQUES OF DECENTRALISATION: Decentralisation has a special technique by which it can be effectively accomplished. The main steps in the establishment of this technique are discussed below: 1. Establishment of appropriate centralisation. This is the first step in decentralisation. A small centralized headquarter will act as a nerve centre of the enterprise. Here plans will be formulated and communicated for the guidance of each part of the company. It will also plan an adequate organisation structure within which individual operating components can be permitted considerable latitude of action. Without such an administrative harness companies may find the individual members of the team going in all directions at once to the detriment of the enterprise. 2. Development of manager. ln decentralized concerns, critical decision have to be made at a large number of centres. This requires people who have mastered the technique of management and not simply of supervision. This poses the problems of how to develop effective managers. Another thing to be kept in mind is that management is an art made up of identifiable skills. Hence, it is essential to reinforce training in classes by coaching them on jobs, by allowing them to make decisions and they learn through committing mistakes. 3. Provision for communication and co-operation. Under decentralisation there is a tendency to independence. This poses the problem of preserving the integrated character of the enterprise as a whole. Thus, provision ought to be made for communication and co-operation through coordinating executives and committees. 4. Establishing adequate controls. Autonomous managers can be given free rein only so far as it will not jeopardise the purpose and integrity of the enterprise as a whole. A major problem in decentralisation, therefore, is that of establishing effective controls.

(Q.1) Planning without control is meaningless and control without planning is blind. Discuss this statement. Answer: Planning and controlling are closely related to each other. After a plan becomes operational, control is necessary to measure progress, to uncover deviations from the targets and to take corrective steps. It is also not possible to think of an effective system of control without the existence of good plans. Billy E. Geotz has explained the relationship between planning and controlling in the following words, "Managerial planning seeks consistent, integrated and articulated programmes, while management control seeks to compel events conform to plans".

Control is always based on planning. It is also true that in a running enterprise planning depends upon controlling. Every manager uses certain standards for measuring and appraising performance which are laid down by planning. The control process, in turn, may reveal the deficiency of plans and may lead to the revision of planning. It may also lead to setting of new goals, improving staffing and making changes in the techniques of supervision, motivation and leadership.

Planning without control is meaningless and control without planning is blind. Planning is an empty exercise without controlling. A good plan will not bring any concrete result if the management is lacking in controlling. Planning identifies the goals and determines the ways of achieving them. It is control which ensures attainment of goals by evaluating performance and taking corrective action. Control presupposes the existence of standards with which the actual performance is to be compared. If the standards of performance are not set in advance, the manager will have no idea of `what is control'. Thus, planning must be done before the actual operation and control should follow plans during and after the actual operation. The experience gained in controlling will help improve the process of planning.]

Controlling and coordination are twins of management. Control is an import-ant element in the process of management, whereas coordination is the essence of management itself. Control is a function of management like planning, organising, staffing and directing. But coordination is an allinclusive function. Each of the managerial functions including controlling is an exercise in coordination. Thus, controlling is a facilitative function that promotes coordination in the organisation. If controlling does not lead to effective coordination, its basic purpose will be lost.

Controlling and coordination are closely related in many ways. Firstly, authority is the basis of both the processes. Secondly, both are performed by the managers at all levels. Thirdly, both are aimed at achieving organisational goals. Fourthly, both are necessary for achieving stability, continuity and growth of the organisation and consistency, precision and discipline in the organisation. Lastly, both control and coordination are rational concepts in the sense that they seek to relate organisational means with organisational ends or goals. They strive to maintain organisations as rational systems, relatively free from conflict, confusion and chaos.

Controlling is an important function of management. Without control, a manager cannot complete his job. All other managerial functions are only preparatory steps for getting the work done, and

controlling is concerned with making sure that there is proper execution of these functions. Control is necessary whenever a manager assigns duties and delegates authority to his subordinates. He must exercise control over the actions of his subordinates so that the authority delegated to them is used properly.

The road signals at a road crossing appropriately illustrate the significance of control. Just as road signals are essential to ensure accident-free and smooth traffic, management controls are necessary in any organisation for its smooth functioning. By controlling, the manager ensures that resources are obtained and used economically and efficiently for the achievement of organisational objectives. A good control system provides timely information to the manager which is very much useful for taking various decisions. Control simplifies supervision by pointing out the significant deviations from the standards of performance. It keeps the subordinates under check and brings discipline among them.

An

effective

system

of

control

will

help

in

achieving

the

following

benefits:

1. Coordination. The size of modern organisations is quite large. A large amount of capital and large number of people are employed in them. This complicates the problem of control as there are many units producing and distributing different products. In order to coordinate their activities, an efficient system of control is necessary. 2. Corrective Action. An efficient system of control provides the basis for future action. Taking corrective action may lead to modification of planning, organising and directing. Control will also check the mistakes being repeated in future. 3. Decision-making. The process of control is complete when corrective actions are taken. This involves making right decisions as to what types of follow up actions are to be taken. This will lead to accomplishment of organisation objectives. According to W.T. Ierome, "Control is needed both to simplify the making of subsequent decisions and to ensure the realisation of the objectives implicit in the original long-range policy decisions" . 4. Better Planning. Control is the only means to ensure that the plans are being implemented in real sense. It points out the shortcomings of planning by comparing the actual performance with the planned standard and suggest steps to improve planning. 5. Decentralisation of Authority. The modern trend of business enter-prises towards decentralisation calls for a systematic attempt for controlling. Under decentralisation, the authority of decision-making is dispersed through-out the organisation. Management must keep control in its hands to know whether the authority is being used properly. Without adequate controls, decentralisation cannot succeed. 6. Effective Supervision. Control facilitates effective supervision by pointing out significant deviations. It keeps the subordinates under check and brings discipline among them. While control cannot cure habitual dishonesty in all cases, management is irresponsible if it does not make a reasonable effort to provide order and discipline among its employees through effective control processes.

(Q.5) What do you understand by the term planned change? Why is it necessary? Illustrate your answer with the help of examples. Answer: Planned change is a proactive response to anticipated changes in the social/ business/ technological/ political and financial environment. It is dynamic process and requires a proactive response. While the steps involved differ from organization to organization the broad steps are as under: - Scan the social/ business/ technological/ political and financial environment and anticipate the changes that are likely - Work out the responses to the changes on the horizon - Chalk out the action plan to adopt/ adapt/ meet the challenge. Have clear start dates and end dates for implementation. - A robust feedback loop is a must - Have a provision for incorporating the feedback into the change loop - Be prepared for the unexpected, swift and dynamic changes that may swoop down Example: The technology space is undergoing changes at a very rapid pace. The mobile industry, the computer industry, the hi-tech medical technology industry has to plan out their strategies to keep abreast of the changes.

(Q.11) What is planning? Planning is looking ahead and control is looking back. Comment. Answer: Planning is one of the most important project management and time management techniques. Planning is preparing a sequence of action steps to achieve some specific goal. If we do it effectively, we can reduce much the necessary time and effort of achieving the goal. Planning is Looking Ahead is true because it contributes heavily to success and gives us some control over the future. By, planning we set aside our tasks and deadlines so we can enlarge our mental focus and seeing the bigger picture. By, planning we can set our Personal or organizational goals and for this defiantly we have to look ahead. But, Planning is not ending with such strategies or guidelines. It has relation with Implementation and controls. Because plans are not always proceed as conceived. The control process measures progress towards goal attainment and indicate corrective action if too much deviation is detected. Controlling investigates whether planning was successful. Controlling referred to as terminal management function, takes place after the other functions have been completed. And for this process we have to look back and have to analyze the performance of our planning, organizing and leading. And therefore we have to look back also.

So, yes we can say Control is looking back for Investigation, Analysis, and Understandings and for checking our effectiveness and efficiency.

(Q.15) a. Define benchmarking and describe its importance. b. Define business process reengineering & explain its importance. Answer: (a) Benchmarking is a systematic and continuous measurement process; a process of continuously measuring and comparing an organizations business processes against business process leaders anywhere in the world, to gain information which will help the organization take action to improve its performance. Benchmarking may form the basis of a renewed development in a company, as this tool helps to identify the processes in which the best possibilities of improvement lie. Benchmarking if of three types: (i) Internal Benchmarking (ii) Competitive Benchmarking and (iii) Functional/Generic Benchmarking The purpose is to show that at a superior level, three main areas exists which can be benchmarked and that in principle, all of these three main areas can be combined by one or more of the three types of benchmarking. It can be argued that only two main areas can be benchmarked quality and productivity as time will always be a part of either quality or productivity. (b) One of the important tasks of a manager is to ensure that all the processes are adding value and if not, then they must be obliterated; and this is the basic philosophy of Business Process Reengineering (BPR). It is a process of rethinking and redesigning those processes which create value to the customer. BPR is defined as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical, contemporary measures or performance such as cost, quality, service and speed. BPR only eliminates unwanted work. It does not aim at getting rid of people. BPR in not simply reconstructing or centered on how work is done or how and organization is structured i.e. it should not be confused with mere automation. BPR offers a radical new principle that the new design of work is based not on classical hierarchical management or division or work and specialization but on end-toend processes and creation of new values for the customers. BPR is meant primarily for: (i) Total customer satisfaction, (ii) Keen competition, and (iii) Introducing planned change. Today, customers are well informed; they have knowledge; they are demanding more; they are sophisticated; they know their needs and they give written and precise specifications of the product required. Besides they have wider choices and greater range of alternatives. Competition in not local and gentle but global and intense.