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TN State Board 12th Commerce Important Questions Chapter 1 Principles of Management

Question 1.
What is Management?
Answer:
Management is a distinct ongoing process of allocating inputs of an organisation (human and economic resources) by typical managerial functions (planning, organising, directing and controlling) for the purpose of achieving stated objectives that is output of goods and services desired by the customer.

Question 2.
List out the management tools.
Answer:
Tools of management:

1. Accounting
2. Business law
3. Psychology
4. Statistics
5. Econometrics
6. Data processing.

Question 3.
Who is a manager?
Answer:
A manager is a dynamic and life-giving element in every business. Without efficient management it cannot be secure the best allocation and utilisation of human material and financial resources.

Question 4.
State the meaning of Authority.
Answer:
Authority means the right of a superior to give the order to his subordinates. This is the issue of commands followed by responsibility for their consequences.

Question 5.
What do you mean by Span of management?
Answer:
The span of management refers to the number of subordinates who can be managed efficiently by a superior. The manager having the group of subordinates who report him directly is called as the span of management.

Question 6.
Define the term management.
Answer:
In management, we have planning action control cycle. Our definition must incorporate this management cycle. A process indicates the dynamic nature of management.

1. “To manage is toforecast, to plan, to organise, to command, to coordinate, and to control ’’ – Henry Fayol. It attempts to describe management in terms of what a manager does, and not what a management is.
2. “Management is a multipurpose organ that manages a business and manages manager and manages worker and work ” – Peter. F. Drucker.

Question 7.
Is management an Art or Science?
Answer:
The nature of management whether it is an art of doing things or it is a pure science of getting things done.

Management is an in-exact science because in pure science. The principles are put into test in a laboratory and they are either proved or disproved exactly and precisely. For example, plant leaves have starch in them which can be proved or disproved in a botany lab.

Similarly, the management principles can be put to test in an organisation where men, machine, money and materials are practically integrated towards achieving some chosen organisational goals. These principles cannot be exactly proved or disproved either as they tend to be flexible to changing environment, policies and practical difficulties. So, management can be described as an exact science.

Everyone believes that management is an art. No it is not an art in Toto. The concept of art denotes the learning of skills and practicing them day to day life. But the concept of management involves a set of required skills for any one designated as a manager, the skills would vary from person to person.

To conclude, management is neither a science nor an art but a combination of both requiring people holding managerial positions to apply the scientific principles.

Question 8.
Differentiate management from Administration.
Answer:
Management:

1. Management is more executive in nature.
2. Management is all about plans and actions
3. The manager looks after the management of the organisation.
4. Management focuses on managing people and their work
5. Management need to execute them to get things done with and through other functional staff working under them who are called employees of the same organisation.

Eg: Administration:

1. The concept of administration denotes the art of decision making at the top and evolving policies of the business undertakings by the government.
2. The administration is concerned with framing policies and setting objectives.
3. Administrator is responsible for the administration of the organisation. (iv) The administration is ought to take business decisions.
   Eg: Management – Research and development.
   Eg: Administration – The board of directors with the CEO/MD.

Question 9.
What are the principles of Taylor?
Answer:
Principles of scientific management propounded by Taylor are:

1. Science, not rule of thumb.
2. Harmony, not discard.
3. Mental revolution.
4. Co-operation, not individualism.
5. Development of each and every person to his or her greatest efficiency and prosperity.

Question 10.
What determines the span of management?
Answer:
The span of management has two implications
(i) Influencing the complexities of the individual manager’s job.
(ii) Determine the shape or configuration of the organisation.

The span of management is related to the horizontal levels of the organisation structure. There is a wide and a narrow span of management with the wider span, there will be less hierarchical levels and thus the organisational structure would be flatter, where as with the narrow span, the hierarchical levels increases, hence the organisational structure would be tail.

Question 11.
Write about the contribution of Drucker to management.
Answer:
“Management is a multipurpose organ that manages a business, and manages manager and manages worker and work” – Peter F. Drucker. The practise of management.
Drucker stresses three jobs of management.
(i) Managing a business,
(ii) Managing manager and
(iii) Managing workers and work.

According to P. Drucker, the manager has to balance and integrate three major jobs of a business enterprise as mentioned above A manager is a dynamic and life-giving element in every business, without efficient management, it cannot be secure the best allocation and utilisation of human material and financial resources.

Question 12.
Explain the management process in detail.
Answer:
The substance of management should be identified as a process. A process is something that what a person does in the context of his individual duties and responsibilities assigned by his or her immediate higher authority.

In management, there is a planning action control cycle. A process indicates the dynamic nature of management. There are twin-purpose of demanagement process.
(i) Profitability or maximum productivity.
(ii) Maximum human welfare and satisfaction.

There are five parts of management as a process. They are:
(i) Management is coordination:
The manager of an enterprise must effectively coordinate all activities and resources of the organisation.

(ii) Management is a process:
The manager achieves proper coordination of resources by means of the managerial functions of planning, organising, staffing, directing and controlling.

(iii) Management is a purposive process:
It is directed toward the achievement of predetermined goals or objectives. Without an objectives, we have no destination to reach or a path to follow to arrive at our destination.

(iv) Management is a social process:
It is the art of getting things done through other people.

(v) Management is a cyclical process:
It represents planning action control re planning cycle. That is an ongoing process to attain the planned goals.

Question 13.
Describe the principles of scientific management.
Answer:
Principles of scientific management propounded by Taylor are:
(i) Science, not rule of thumb:
Rule of thumb means decisions taken by manager as per their personal judgements. According to Taylor, even a small production activity like loading iron sheets into box cars can be scientifically planned. This will help in saving time as well as human energy. Decision should be based on scientific enquiry with cause and effective relationships.

(ii) Harmony, not discard:
Taylor emphasized that there should be complete harmony between the workers and the management. If there is conflict between two, it will not be beneficial either the worker or the management. Taylor suggested complete mental revolution on the part of both management and workers. It becomes possible by
(a) sharing a part of surplus with workers,
(b) training of employees,
(c) division of work,
(d) team spirit,
(e) positive attitude,
(f) sincerity etc.

(iii) Mental revolution:
The technique of mental revolution involves a change in the attitude of workers and management towards each other. Mental revolution requires a complete change in the outlook of both management and workers.

(iv) Co-operation, not individualism:
This principle is an extension of principle of harmony not discard. It lays stress on mutual cooperation between workers and the management. Taylor also suggested that these should be proper division of work and responsibility between the two, management should always guide, encourage and help the workers.

(v) Development of each and every person to his or her efficiency and prosperity:
Efficiency of any organisation also depends on the skills and capabilities of its employees to a great extent providing training to the workers was considered essential in order to learn the best method developed through the use of scientific approach. It helps to attain efficiency and prosperity for both organisation and the employees.

Question 14.
Explain the principles of modern management.
Answer:
The Father of modem management is Mr. Henry Fayol and according to him there are 14 major principles of management which every manager has to practice for the success of the organisation.
(i) Division of work:
According to this principle, the whole work is divided into small tasks. The specialisation of the work force according to the skill of a person and this will lead to increase the efficiency of labour.

(ii) Authority and responsibility:
Authority means the right of a superior to give the order to his subordinates. Responsibility means obligation for performance.

(iii) Discipline:
It is obedience, proper conduct in relation to others, respect of authority etc. It is essential for the smooth functioning of all organisations.

(iv) Unit of command:
This principle states that each subordinate should recieve orders and be accountable to one and only one superior.

(v) Unit of direction:
All related activities should be put under one group, there should be one plan of action under the control of one manager.

(vi) Subordination of individual interest to mutual interest:
The interest of goals of organisation must prevail over the personal interest of individuals.

(vii) Remuneration:
The quantity and methods of remuneration payable should be fair, reasonable and rewarding of effort.

(viii) The degree of centralisation:
Centralisation implies the concentration of decision making authority at the top management.

(ix) Line of authority or scalar chain:
This refers to the chain of superiors ranging from top management to the lowest rank. There should -be a clear line of authority from top to bottom linking all managers at all levels.

(x) Order:
Order should be acceptable and under the rules of the company (material order).

(xi) Equity:
Managers should be fair and impartial when dealing with employees giving equal attention towards all employees.

(xii) Stability of tenure of personnel:
Stability of tenure of personnel is a principle stating that in order for an organisation to run smoothly.

(xiii) Initiative:
Using the initiatives of employees can add strength and new ideas to an organisation. Initiatives on the part of employees is a source of strength for organisation.

(xiv) Team spirit: Team spirit helps to develop an atmosphere of mutual trust and understanding. Team spirit helps to finish the task on time.

Question 15.
Discuss the implications of span of management.
Answer:
The span of management has two implications.
(a) Influences the complexities of the individual manager’s job.
(b) Determine the shape or configuration of the organization.

(i) The span of management is related to the horizontal levels of the organisation structure. There is a wide and a narrow span of management.
(ii) With the wider span there will be less hierarchical levels and the organisational structure would be of later, where as the narrow span the hierarchical levels increases the organisational structure would be tall.
(iii) The tall organisational structure imposes more changes. The span is narrow which means less number of subordinates under one superior, requires more managers to employed in the organisation. Lack of coordination and control because the operating staff is far away from the top management.

Multiple Choice Questions:

Question 1.
Management is what a _____ does?
(a) Manager
(b) Subordinate
(c) Supervisor
(d) Superior
Answer:
(a) Manager

Question 2.
Management is an:
(a) Art
(b) Science
(c) Art and Science
(d) Art or Science
Answer:
(c) Art and Science

Question 3.
Scientific management is developed by:
(a) Fayol
(b) Taylor
(c) Mayo
(d) Jacob
Answer:
(b) Taylor

Question 4.
Dividing the work into small tasks is known as:
(a) Discipline
(b) Unity
(c) Division of work
(d) Equity
Answer:
(c) Division of work

Question 5.
With a wider span, there will be _______ hierarchical levels.
(a) More
(b) Less
(c) Multiple
(d) Additional
Answer:
(b) Less

TN Board 12th Commerce Important Questions