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1 INTERNAL ASSESSMENT TEST 1 Date : Max Marks : 40 Subject & Code : Management & Entrepreneurship (15CS51) Section : V CSE A B C Name of Faculty : Prof Shankar Gopal and Ms. Shubha Raj K B Time : :30AM to 10 AM Note: Answer all the FIVE full questions 1 Briefly explain the importance of Management and the key management functions. Management is a critical element in the economic growth of a country. Management is the dynamic, life-giving element in every organization 4 Ms : Factors of production Man Money Material Machine The 5 th M is Management Management is a creative process. To carry out this, an individual is responsible. It is same process in all forms of organization 4+4 Peter Drucker: Without management, a country s resources of production remain resources and never become production. Claude S George: The central core of our national as well as personal activities, and the way we manage ourselves and our institutions reflect with alarming clarity what we and our society will become. Mary Parker Follette: Art of getting things done through people
2 Planning: Planning is the function that determine in advance what should be done It is looking ahead and preparing for the future. It is a process of deciding the business objectives and charting (monitoring, following) out the methods of attaining those objectives. It is the determination of What it is to be done How and where it is to be done Who is to do it How results are to be evaluated This is done not only for the organization as a whole, but for every division, department or sub-unit of the organization It is the function which is performed by managers at all levels Top - 5 or 10 years Middle - Next day work or 2 hours meeting to take place in a week Supervisory - Next day work or 2 hours meeting to take place in a week Organizing: Personnel Raw materials Tools Capitals 2 main Sections
3 Human Organization Allen: The structure which results from identifying and grouping work, defining and delegating responsibility and authority, and establishing relationships Staffing- To find a right person for each job Material Organization Staffing: Staffing involves building the right person for the right job. Fixes responsibility for a manager Involves selection and training of future managers and appraisals. Directing: The managers explained to their people what they have to do and helps them do it to the best of their ability. Communication It is the process of passing information and understanding from one person to another Leadership It is the process by which a manager guides and influences the work of his subordinates Motivation- Arousing(exciting) desire in the minds of workers to give their best to the enterprise It is the act of stimulating or inspiring workers. Financial Salary, bonus, profit-sharing Non-Financial Job-security, Opportunities for advancement Recognition Praise etc Controlling: The manager must ensure that everything occurs in conformity with the plans adopted, The instructions issued The principles established. 3 elements Establishing standards of performance Measuring current performance and comparing it against the established standards Taking actions to correct any performance that does not meet
4 those standards OR Substantiate the statement that management is both science or art or profession What makes a discipline science? methods of inquiry are systematic (orderly, unbiased), empirical; information can be ordered and analyzed; results are commutative and communicable. Natural or exact Science Effect of heat on the density of air by holding other factors Behavioral or inexact Science Effect of monetary incentives on a worker s productivity Under science, one learns Why Under art it is HOW How a particular work can be accomplished Art of getting things done by others in dynamic and mostly nonrepetitive situations. Manager will get results out of his skills(art) Conclude: It involves both the elements Those of a science Art While certain aspects of a management make it a science, certain others which involve application of skill make it an art Characteristics by McFarland: Existence of an organized and systematic knowledge Formalized methods of acquiring training and experience Existence of an association with professionalization as its goal Existence of an ethical code to regulate the behaviour of the members of the profession Charging of fees based on service, but with due regard for the priority of service over the desire for monetary reward Management - not a profession: Management does not possess all the characteristics No fixed norms No uniform code of conduct or licensing
5 No special academic degree required Professionalization of management: Knowledge or training is essential No longer an intuition or family ability As a subject 7 national institutes of management in India ( Ahmedabad, Bangalore, Kolkata, Lucknow, Indore, Shillong, Kozhikode) University departments that offer MBA programs A degree in management does not by itself make an individual a professional manager any more than does a degree in philosophy make an individual a philosopher (Peter Druker) By insisting on holding a degree, we are emphasizing knowledge and completely over looking skill. This leads to loosing of good and skilled managers who do not have required degree. However, nowadays, management has become a profession than art or science. 2 Explain the key features of Early Classical Approaches to Management and its relevance to the industry today Scientific Management, Frederick Winslow Taylor Father of Scientific Management Exerted great deal of influence on development of Management thru experiments and writings Series of experiments in 3 companies including Midvale Steel Time and Motion Study Piece work employees used to hold back production to 1/3 rd level because of fear of cut in their piece rate with rise in production Each job was to be timed with the help of a stop watch and shorter and fewer motions were to be developed Best way of doing a job was found Differential Payment Incentives Linked to Production Worker received high rate if he surpassed standard number of pieces Attraction of High Piece Rate would motivate workers to increase
6 Production Reorganization of Supervision Separation of Planning and doing Functional Foremanship Taylor Suggested that work should be planned by a foreman Employ as many foremen as special functions Administrative Management Henri Fayol considered the Father of Administrative Management Focus on development of broad administrative principles applicable to general and higher managerial levels Perspective extended beyond shop level and physical production Covered General Administrative and Managerial functions at the Org level Bureaucracy Max Weber Father of Bureaucracy Identified 3 basic types of administration across Business and Government organizations Leader Oriented, Tradition Oriented, Bureaucratic Bureaucratic Delegation of management responsibilities is based on person s demonstrated ability to hold position Key Features Insistence on following Standard Rules Systematic Division of Work Principle of Hierarchy is followed Administrative Acts, Decisions and Rules are recorded in writing There is Rational Personnel Administration Limitation Overconformity to rules Buck-passing Trained Incapacity Displacement of goals No real right of appeal Neglect of informal groups Rigid Structure
7 OR Explain any TWO important modern management approaches Quantitative Approach Scientific methods for problem solving Emphasis on Normative models of managerial and org behaviour Considered descendant of the scientific management movement Operations Research Quantitative method used during World II OR team presents management a rational base for making a decision War Statistical methods Popular due to their versatility Sampling Theory Probability theory problems involving use of past experience in determining optimum policies for the future Focus of quantitative approach Decision Making To provide tools and techniques to make rational decisions Manager is the decision-maker Keynote is precision and perfection which is achieved by expressing relationships and facts in Quantitative terms Systems Approach Provides a manager an integrated approach to management problems Provides a broad, detailed and conceptual framework that can help a manager diagnose a problem and decide which tool will best do the job System is a set of interdependent parts Organization is composed of Task subsystem refers to the main purpose Structure refers to formal division of authority and responsibility People subsystem refers to employees, their motives, values etc Technology subsystem refers to techniques, tools and equipment 3 Explain the steps involved in planning in detail Establishing verifiable goals to be achieved Establishing Planning Premises
8 Internal/External, Tangible/Intangible, Controllable/Non- Controllable Deciding the planning period Finding alternative courses of action Evaluating and selecting a course of action Developing Derivative plans Establishing and Deploying Action plans Measuring and Controlling progress OR What is Planning? Explain briefly hierarchy of planning Is an Intellectual Process Decision-making is an integral part of planning Is a Continuous Process Must be flexible 5 major areas Technology, Market, Finance, Personnel, Organization Is an All Pervasive Function 4 What are the factors that contribute to deciding on the structure of an organization? Elaborate.
9 Environment Culture and history Task Technology Strategy Size Span of Control Form Availability of Finance and Personnel Managerial Characteristics Employee Characteristics OR Briefly explain the principles of organization Objectives Specialization Span of control (should be minimum) Management by exception principle (complex issues) Scalar principle (chain of command) Unity of command Delegation Responsibility Authority Efficiency Simplicity Flexibility Balance (human, technical and financial) Unity of direction Personal ability 5 You are the CEO of a startup firm that produces Toys for kids with Dyslexia (learning disorder). Dyslexia is a condition that causes kids to have trouble processing Language. State your Vision, Mission, key Objectives and key Strategies for the first 5 years Vision: Change the way the world thinks of people down with Dyslexia Mission: The one stop 'toys' solution for kids suffering from Dyslexia
10 Key Objectives: Focus on our Mission Design toys for Dyslexic kids age 3-10 with a focus on customized design for each specific kid Keep the profit margin between - 10 % so that we get recognized as a value organization Be a key player in society and make a difference Toys should be affordable across the world Design a way to ship used toys to the 'needy'countries in an efficient and cost effective manner Key Strategy Showcase our company as a value based company that does immense work for society Recruit people who's key focus is contribution to society without primary attention to monetary benefits Recruit a team of volunteer psychologists that can work with multiple children and submit analysis to the manufacturing division Collaborate with big toy makers to help us achieve our target Collaborate with big donors across the globe to help us get the necessary infrastructure and machinery Some of the areas where we want to focus producing toys are Psychologist recommended board games and activities listed below. I-Spy or naming/sorting games to encourage identification of initial sounds/letters of objects. OR You are the CEO and Founder of a startup firm that provides client IT services to MNC's across the Globe. You have recently started the company and would like to begin the hiring process of qualified individuals. Would you hire top executives first and progress down the pyramid to the lower levels of management and eventually individual contributors (techies, hands on people) OR Would you hire individual contributors first and progress upward to filling in executive level positions? Discuss the Pros and Cons in each case Pros and Cons of hiring top down vs bottom up Top Down Hiring
11 Cons High Cost Role of executives not clearly defined Business relations not yet in place People who do the actual technical work not on board as of yet Executives cannot commit to timelines to clients since the hiring of technical people has not happened Pros High experience in leading organizations They understand the big picture They can collaborate to get lucrative contracts across the globe They can hire the right skilled people since they know the type of contracts they sign Bottom up Cons Individual contributors lack the leadership skills Don't have enough insight into the big picture Don't have the necessary networking to sign client contracts Get into the nuts and bolts of the system without looking at the big picture Don't have enough insight into long term implications Don't have sufficient financial depth to analyze cost benefits of a contract Pros Cheaper in cost Can start the actual work relatively quickly Executive functions can be temporarily outsourced while technical functions can be managed locally Don''t have a fixed mind set and are flexible * * * * * * * *
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