IGNOU| MANAGEMENT THEORY (ECO - 03)| SOLVED PAPER – (JUNE - 2021)| (BDP)| ENGLISH MEDIUM
BACHELOR’S DEGREE PROGRAMME
Term-End Examination
June - 2021
ELECTIVE COURSE: COMMERCE
MANAGEMENT THEORY
ECO-03
Time: 2 hours
Maximum Marks: 50
(Weightage: 70%)
Note: Attempt both the sections, A and B.
हिंदी माध्यम: यहां क्लिक करें
SECTION – A
Attempt any three questions:
1. Explain in detail, Henry Fayol’s principles of
management. 12
Ans:- 14 principles of management of Henry Fayol:-
Henri Fayol,
also known as the father of modern management theory, gave a new perspective on
the concept of management. He introduced a general principle that could be
applied to all levels of management and every department. He envisioned
maximization of managerial efficiency. Today, Fayol's theory is practiced by
management to organize and regulate the internal activities of an organization.
The fourteen
principles of management created by Henry Fayol are explained below.
(i)
Division of Work: Henry believed that separation of work among workers in
the workforce would increase the quality of the product. Similarly, he also
concluded that division of work improves the productivity, efficiency, accuracy
and speed of workers. This principle is suitable for both managerial and
technical work levels.
(ii)
Authority and responsibility: These are two major aspects of management.
Authority facilitates the management to function efficiently, and
responsibility makes them responsible for the work done under their guidance or
leadership.
(iii)
Discipline: Without discipline nothing can be achieved. This is the core
value for any project or any management. Good performance and intelligent
interconnection make the management work easier and comprehensive. Good
behavior of employees also helps them to build and advance their professional
career smoothly.
(iv) Unity
of command: It means that an employee should have only one boss and he
should follow his orders. If an employee has to follow more than one boss, a
conflict of interest arises and confusion may arise.
(v) Unity
of direction: Anyone who is engaged in the same activity must have a
unified goal. This means that all the people working in a company should have a
goal and objective so that the work becomes easier and the set goals are easily
achieved.
(vi)
Subordination of individual interest: This indicates that a company should
work unitedly for the interest of the company rather than individual interest.
Be subordinate to the objectives of an organization. It refers to the entire
chain of command in a company.
(vii)
Remuneration: It plays an important role in motivating the workers of a
company. Remuneration may be monetary or non-monetary. Ideally, it should be
according to the efforts made by an individual.
(viii)
Centralization: Any authority responsible for management or decision making
process in any company should be neutral. However, this depends on the size of
an organization. Henri Fayol emphasized that there should be a balance between
hierarchy and division of power.
(ix) Scalar
Chain: On this principle Fayol highlights that the steps of the hierarchy
should be from top to bottom. This is necessary so that each employee knows his
immediate superior and they can contact anyone if needed.
(x) Order:
A company should maintain a well-defined work order for a conducive work culture.
A positive environment in the workplace will further increase productivity.
(xi)
Equality: All employees should be treated equally and respectfully. It is
the manager's responsibility to ensure that no employee faces discrimination.
(xii)
Stability: If an employee feels secure in his job he performs best. It is
the duty of management to provide job security to its employees.
(xiii)
Initiative: Management should support and encourage employees to take
initiative in an organization. This will help them in boosting their motivation
and morale.
(xiv)
Esprit de corps: It is the responsibility of management to motivate their
employees and support each other on a regular basis. Developing trust and
mutual understanding will create positive results and work environment.
In
conclusion, the 14 principles of management are the pillars of any organization.
They are integral parts of forecasting, planning, decision making, process
management, control and coordination.
2. Describe the process of planning in any organisation.
Discuss the steps involved in the planning process. 12.
Ans:- Before making a plan it is important to decide
what to do and how to do it. This is one of the primary managerial duties.
Before doing anything, the manager must form an opinion on how to work on a
specific task. Therefore, planning is closely related to discovery and
creativity. But the manager must first set goals. Planning is an essential step
that managers take at all levels. It requires decision making as it involves
selecting one option among alternative methods of performance. Before making a
plan it is important to decide what to do and how to do it. This is one of the
primary managerial duties. Before doing anything, the manager must form an
opinion on how to work on a specific task. Therefore, planning is closely
related to discovery and creativity. But the manager must first set goals.
Planning is an essential step that managers take at all levels. It requires
decision making as it involves selecting one option among alternative methods
of performance.
Planning in an
organization involves the following steps:-
(i) Set goals
and objectives: The goals and objectives should consider the vision,
mission and values of the organization. They should also outline how each
person can contribute to the goals.
(ii) Analyze
the present situation of the organisation: This involves identifying the
strengths and weaknesses.
(iii) Develop
premises: This involves making assumptions about the future, such as
changes in external circumstances.
(iv) Evaluate
alternatives: Alternatives should be evaluated on the basis of efficiency.
(v) Make
action plan: This includes formulating policies, rules, programs and
budget.
Planning is
important because it allows management to control the future. This is
especially important in a rapidly changing environment where risk and
uncertainty are high.
Planning
Process:-
Since planning
is an activity, every manager should follow certain appropriate measures:
(i)
Determining Objectives:
(a) It is the
primary step in the process of planning which specifies the objective of an
organisation, i.e. what an organization wants to achieve.
(b) The
planning process begins with the establishment of objectives.
(c) Objectives
are the final results which the management wishes to achieve from its
operations.
(d) Objectives
are specific and measurable in terms of units.
(e) Objectives
are set for all departments for the organization as a whole, and the
departments then set their own objectives within the framework of
organizational objectives.
Example:
A mobile phone company aims to sell 2,00,000 units next year, double the
current sales.
(ii) To
develop planning premises:
(a) Planning
essentially focuses on the future and certain events that are expected to
influence policy making.
(b) Such events
are external in nature and have an adverse effect on the plan if ignored.
(c) Their
understanding and impartial evaluation is essential for effective planning.
(d) Such events
are the assumptions on the basis of which plans are prepared and are known as
planning premises.
Example:
A mobile phone company has set a sales target of 2,00,000 units based on a
forecast made on the basis of favorable government policies towards
digitization of transactions.
(iii)
Identifying alternative courses of action:
(a) Once the
objective is determined, assumptions are made.
(b) Then the
next step is to act on them.
(c) There may be
many ways of doing work and achieving objectives.
(d) All
alternative courses of action should be identified.
Example:
Mobile company has many options like reducing the price, increasing advertising
and promotion, after sales service etc.
(iv)
Evaluation of Alternative Courses of Action:
(a) In this
stage, the positive and negative aspects of each alternative need to be
evaluated in the light of the objectives to be achieved.
(b) Each option
is evaluated in the context of low cost, low risk and high returns and
availability of capital within the scheme complex.
Example:
The mobile phone company will evaluate all the options and examine its
advantages and disadvantages.
(v) Selecting
the best option:
(a) The best
plan, i.e. the plan which is most profitable and has the least negative impact,
is adopted and implemented.
(b) In such
cases, the experience and judgment of the manager play an important role in
choosing the best option.
Example: Mobile
phone company chooses more TV advertising and online marketing over better
after sales service.
(vi)
Implementing the plan:
(a) This is the
step where other managerial functions come into the picture.
(b) This step is
concerned with "doing what is necessary".
(c) In this
stage, managers clearly communicate the plan to employees to help them convert
plans into action.
(d) This step
involves allocating resources, organizing labor, and purchasing machinery.
Example:
Mobile phone company hires salesmen on a large scale, produces TV commercials,
launches online marketing activities and sets up service workshops.
(vii) Follow
up action:
(a) Constantly
monitoring the plan and taking feedback at regular intervals is called
follow-up.
(b) Monitoring
of schemes is very important to ensure that the schemes are being implemented
as per schedule.
(c) Regular
checking and comparison of results with prescribed standards to ensure that
objectives have been achieved.
Example:
A proper feedback mechanism was developed by a mobile phone company to know the
actual customer response, revenue collection, employee response etc. in all its
branches.
3. Why is directing function important? Discuss briefly the
principles of directing. 6+6
[COMING SOON]
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