College of Computing Sciences and Information Technology

Bagarpur, Delhi Road, Moradabad-244001 (U.P.)

Year: First
Course Code: BCA 109/ICA108
Duration: 90 minutes
1st Internal Class Test
COURSE: BCA & BCA+MCA
Academic Year: 20152016 Semester: First
Course Title: Management Concept & Organizational
Behavior
Max. Marks: 30

Attempt any three questions. Question no. 1 is compulsory.

1. Answer any five questions

a. What is Contingency approach? [2]
b. Explain the contribution of Luther Gullick. [2]
c. Explain importance of planning. [2]
d. Explain management as an art. [2]
e. Explain various schools of management thoughts. [2]
f. Define management with suitable definition. [2]
g. Differentiate centralization & de-centralization. [2]
h. Define MBO. [2]

2. Explain various functions of management. [10

]

3. Define planning with its various types. [10

]

4. Explain the process of decision making with its various types. [10
]
 SOLUTION
Question 1.

a. Contingency approach, also known as situational approach, is a concept in management stating

that there is no one universally applicable set of management principles (rules) by which to manage
organizations. Organizations are individually different, face different situations (contingency
variables), and require different ways of managing. Contingency approaches remain less common
than change management approaches.
b. Luther Gullick has given the concept of POSDCORB. Each letter of POSDCORB stands for
different principle. P is for planning, O stands for organizing, S means staffing, D indicates directing,
Co-coordinating, R indicates reporting and, finally, B suggests budgeting.
c.
1. Planning facilitates management by objectives.
a. Planning begins with determination of objectives.
b. It highlights the purposes for which various activities are to be undertaken.
c. In fact, it makes objectives more clear and specific.
d. Planning helps in focusing the attention of employees on the objectives or goals of
enterprise.
e. Without planning an organization has no guide.
f. Planning compels manager to prepare a Blue-print of the courses of action to be followed for
accomplishment of objectives.
g. Therefore, planning brings order and rationality into the organization.
2. Planning minimizes uncertainties.
a. Business is full of uncertainties.
b. There are risks of various types due to uncertainties.
c. Planning helps in reducing uncertainties of future as it involves anticipation of future events.
d. Although future cannot be predicted with cent percent accuracy but planning helps
management to anticipate future and prepare for risks by necessary provisions to meet
unexpected turn of events.
e. Therefore with the help of planning, uncertainties can be forecasted which helps in
preparing standbys as a result, uncertainties are minimized to a great extent.
3. Planning facilitates co-ordination.
a. Planning revolves around organizational goals.
b. All activities are directed towards common goals.
c. There is an integrated effort throughout the enterprise in various departments and groups.
d. It avoids duplication of efforts. In other words, it leads to better co-ordination.
e. It helps in finding out problems of work performance and aims at rectifying the same.
4. Planning improves employees moral.
a. Planning creates an atmosphere of order and discipline in organization.
b. Employees know in advance what is expected of them and therefore conformity can be
achieved easily.
c. This encourages employees to show their best and also earn reward for the same.
d. Planning creates a healthy attitude towards work environment which helps in boosting
employees moral and efficiency.
5. Planning helps in achieving economies.
a. Effective planning secures economy since it leads to orderly allocation ofresources to
various operations.
b. It also facilitates optimum utilization of resources which brings economy in operations.
c. It also avoids wastage of resources by selecting most appropriate use that will contribute to
the objective of enterprise. For example, raw materials can be purchased in bulk and
transportation cost can be minimized. At the same time it ensures regular supply for the
production department, that is, overall efficiency.
6. Planning facilitates controlling.
a. Planning facilitates existence of certain planned goals and standard of performance.
b. It provides basis of controlling.
c. We cannot think of an effective system of controlling without existence of well thought out
plans.
d. Planning provides pre-determined goals against which actual performance is compared.
 e. In fact, planning and controlling are the two sides of a same coin. If planning is root,
controlling is the fruit.
7. Planning provides competitive edge.
a. Planning provides competitive edge to the enterprise over the others which do not have
effective planning. This is because of the fact that planning may involve changing in work
methods, quality, quantity designs, extension of work, redefining of goals, etc.
b. With the help of forecasting not only the enterprise secures its future but at the same time it
is able to estimate the future motives of its competitor which helps in facing future
challenges.
c. Therefore, planning leads to best utilization of possible resources, improves quality of
production and thus the competitive strength of the enterprise is improved.
8. Planning encourages innovations.
a. In the process of planning, managers have the opportunities of suggesting ways and means
of improving performance.
b. Planning is basically a decision making function which involves creative thinking and
imagination that ultimately leads to innovation of methods and operations for growth and
prosperity of the enterprise.
d. Art implies application of knowledge & skill to trying about desired results. An art may be defined as
personalized application of general theoretical principles for achieving best possible results. Art has
the following characters -

Practical Knowledge: Every art requires practical knowledge therefore learning of theory is not
sufficient. It is very important to know practical application of theoretical principles. E.g. to become a
good painter, the person may not only be knowing different colour and brushes but different
designs, dimensions, situations etc to use them appropriately. A manager can never be successful
just by obtaining degree or diploma in management; he must have also know how to apply various
principles in real situations by functioning in capacity of manager.

Personal Skill: Although theoretical base may be same for every artist, but each one has his own
style and approach towards his job. That is why the level of success and quality of performance
differs from one person to another. E.g. there are several qualified painters but M.F. Hussain is
recognized for his style. Similarly management as an art is also personalized. Every manager has
his own way of managing things based on his knowledge, experience and personality, that is why
some managers are known as good managers (like Aditya Birla, Rahul Bajaj) whereas others as
bad.

Creativity: Every artist has an element of creativity in line. That is why he aims at producing
something that has never existed before which requires combination of intelligence & imagination.
Management is also creative in nature like any other art. It combines human and non-human
resources in useful way so as to achieve desired results. It tries to produce sweet music by
combining chords in an efficient manner.

Perfection through practice: Practice makes a man perfect. Every artist becomes more and more
proficient through constant practice. Similarly managers learn through an art of trial and error
initially but application of management principles over the years makes them perfect in the job of
managing.

Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same
manner, management is also directed towards accomplishment of pre-determined goals. Managers
use various resources like men, money, material, machinery & methods to promote growth of an
organization.

e.
 Beginning
MANAGEMENT SCHOOLS Emphasis
Dates
Managing workers and organizations more
CLASSICAL SCHOOL
efficiently.
Scientific Management 1880s

Administrative Management 1940s

Bureaucratic Management 1920s

Understanding human behavior in the

BEHAVIORAL SCHOOL
organization.
Human Relations 1930s
Behavioral Science 1950s
QUANTITATIVE SCHOOL Increasing quality of managerial decision-
making through the application of mathematical
Management Science 1940s
and statistical methods.
Operations Management 1940s

Management Information Systems 1950s1970s

SYSTEMS SCHOOL 1950s Understanding the organization as a system that

transforms inputs into outputs while in constant
interaction with its' environment.
CONTINGENCY SCHOOL 1960s Applying management principles and processes
as dictated by the unique characteristics of each
situation.

f. Management is a universal phenomenon. It is a very popular and widely used term. All
organizations - business, political, cultural or social are involved in management because it is the
management which helps and directs the various efforts towards a definite purpose. According
to Harold Koontz, Management is an art of getting things done through and with the people in
formally organized groups. It is an art of creating an environment in which people can perform and
individuals and can co-operate towards attainment of group goals. According to F.W. Taylor,
Management is an art of knowing what to do, when to do and see that it is done in the best and
cheapest way.
g. Management by Objectives (MBO) is a personnel management technique where managers and
employees work together to set, record and monitor goals for a specific period of time.
Organizational goals and planning flow top-down through the organization and are translated into
personal goals for organizational members. The technique was first championed by management
expert Peter Drucker and became commonly used in the 1960s.

Question 2.

Management has been described as a social process involving responsibility for economical and effective
planning & regulation of operation of an enterprise in the fulfillment of given purposes. It is a dynamic
process consisting of various elements and activities. These activities are different from operative functions
like marketing, finance, purchase etc. Rather these activities are common to each and every manger
irrespective of his level or status.
Different experts have classified functions of management. According to George & Jerry, There are four
fundamental functions of management i.e. planning, organizing, actuating and controlling.

According to Henry Fayol, To manage is to forecast and plan, to organize, to command, & to control.
Whereas Luther Gullick has given a keyword POSDCORB where P stands for Planning, O for Organizing,
S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most widely
accepted are functions of management given by KOONTZ and ODONNEL
i.e. Planning,Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of management but practically
these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the
other & each affects the performance of others.

1. Planning

It is the basic function of management. It deals with chalking out a future course of action &
deciding in advance the most appropriate course of actions for achievement of pre-determined
goals. According to KOONTZ, Planning is deciding in advance - what to do, when to do & how to
do. It bridges the gap from where we are & where we want to be. A plan is a future course of
actions. It is an exercise in problem solving & decision making. Planning is determination of courses
of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for
accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of
human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in
avoiding confusion, uncertainties, risks, wastages etc.

2. Organizing

It is the process of bringing together physical, financial and human resources and developing
productive relationship amongst them for achievement of organizational goals. According to Henry
Fayol, To organize a business is to provide it with everything useful or its functioning i.e. raw
material, tools, capital and personnels. To organize a business involves determining & providing
human and non-human resources to the organizational structure. Organizing as a process involves:

Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.
3. Staffing

It is the function of manning the organization structure and keeping it manned. Staffing has
assumed greater importance in the recent years due to advancement of technology, increase in
size of business, complexity of human behavior etc. The main purpose o staffing is to put right man
on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz &
ODonell, Managerial function of staffing involves manning the organization structure through
 proper and effective selection, appraisal & development of personnel to fill the roles designed un
the structure. Staffing involves:

Manpower Planning (estimating man power in terms of searching, choose the person and
giving the right place).
Recruitment, Selection & Placement.
Training & Development.
Remuneration.
Performance Appraisal.
Promotions & Transfer.
4. Directing

It is that part of managerial function which actuates the organizational methods to work efficiently for
achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in
motion the action of people because planning, organizing and staffing are the mere preparations for
doing the work. Direction is that inert-personnel aspect of management which deals directly with
influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational
goals. Direction has following elements:

Supervision
Motivation
Leadership
Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the act of
watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives may be used for this purpose.

Leadership- may be defined as a process by which manager guides and influences the work of
subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc from one person
to another. It is a bridge of understanding.

5. Controlling

It implies measurement of accomplishment against the standards and correction of deviation if any
to ensure achievement of organizational goals. The purpose of controlling is to ensure that
everything occurs in conformities with the standards. An efficient system of control helps to predict
deviations before they actually occur. According to Theo Haimann, Controlling is the process of
checking whether or not proper progress is being made towards the objectives and goals and acting
if necessary, to correct any deviation. According to Koontz & ODonell Controlling is the
measurement & correction of performance activities of subordinates in order to make sure that the
enterprise objectives and plans desired to obtain them as being accomplished. Therefore
controlling has following steps:

Establishment of standard performance.

Measurement of actual performance.
Comparison of actual performance with the standards and finding out deviation if any.
Corrective action.

Question 3.

According to Koontz O'Donnel - "Planning is an intellectual process, the consciousdetermination of courses of

action, the basing of decisions on purpose, acts and considered estimates".

Classification of Planning
On the basis of content
Strategic Planning
 It is the process of deciding on Long-term objectives of the organization.
It encompasses all the functional areas of business
Tactical Planning
-It involves conversion of detailed and specific plans into detailed and specificaction plans.
It is the blue print for current action and it supports the strategic plans.On the basis of time period

Long term planning

Time frame beyond five years.
It specifies what the organization wants to become in long run.
It involves great deal of uncertainty.

Intermediate term planning

Time frame between two and five years.
It is designed to implement long term plans.

Short term planning

Time frame of one year or less.
It provide basis for day to day operations

Question 4.

Steps of Decision Making Process

Following are the important steps of the decision making process. Each step may be supported by
different tools and techniques.
Step 1: Identification of the purpose of the decision

In this step, the problem is thoroughly analysed. There are a couple of questions one should ask when it
comes to identifying the purpose of the decision.

What exactly is the problem?

Why the problem should be solved?

Who are the affected parties of the problem?

Does the problem have a deadline or a specific time-line?

Step 2: Information gathering

A problem of an organization will have many stakeholders. In addition, there can be dozens of factors
involved and affected by the problem.

In the process of solving the problem, you will have to gather as much as information related to the factors
and stakeholders involved in the problem. For the process of information gathering, tools such as 'Check
Sheets' can be effectively used.

Step 3: Principles for judging the alternatives

In this step, the baseline criteria for judging the alternatives should be set up. When it comes to defining
the criteria, organizational goals as well as the corporate culture should be taken into consideration.

As an example, profit is one of the main concerns in every decision making process. Companies usually
do not make decisions that reduce profits, unless it is an exceptional case. Likewise, baseline principles
should be identified related to the problem in hand.

Step 4: Brainstorm and analyse the different choices

For this step, brainstorming to list down all the ideas is the best option. Before the idea generation step, it
is vital to understand the causes of the problem and prioritization of causes.

For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-Effect
diagram helps you to identify all possible causes of the problem and Pareto chart helps you to prioritize
and identify the causes with highest effect.

Then, you can move on generating all possible solutions (alternatives) for the problem in hand.

Step 5: Evaluation of alternatives

Use your judgement principles and decision-making criteria to evaluate each alternative. In this step,
experience and effectiveness of the judgement principles come into play. You need to compare each
alternative for their positives and negatives.
Step 6: Select the best alternative

Once you go through from Step 1 to Step 5, this step is easy. In addition, the selection of the best
alternative is an informed decision since you have already followed a methodology to derive and select
the best alternative.

Step 7: Execute the decision

Convert your decision into a plan or a sequence of activities. Execute your plan by yourself or with the
help of subordinates.

Step 8: Evaluate the results

Evaluate the outcome of your decision. See whether there is anything you should learn and then correct in
future decision making. This is one of the best practices that will improve your decision-making skills.

TYPES OF DECISIONS:

PROGRAMMED DECISIONS:

Programmed decisions are routine and repetitive, and the organization typically develops specific ways to
handle them. A programmed decision might involve determining how products will be arranged on the
shelves of a supermarket. For this kind of routine, repetitive problem, standard arrangement decisions are
typically made according to established management guidelines.

NON PROGRAMMED DECISIONS:

Non programmed decisions are typically one shot decisions that are usually less structured than
programmed decision.