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K.SUBADHRA, AP/Chemistry, MAHALAKSHMI ENGINEERING COLLEGE, Trichy-621213.

MAHALAKSHMI ENGINEERING COLLEGE

TIRUCHIRAPALLI – 621213

MG2351- PRINCIPLES OF MANAGEMENT

UNIT III ORGANIZING

1) Define Organizing. [May 2011, 2013]

Organizing is the process of identifying and grouping of activities required to attain

objectivities, delegating authority, creating the responsibility and establishing relationship for

the people to work effectively.

2) What do you understand by effective organizing?

Effective organizing focuses on finding in present organizing avoids organizational

inflexibility and makes the staff work effective by avoiding conflicts by clarification.

3) How informal organization characteristics differ from formal organization?

It arises without any external cause. It is created on the basis of some similarity among

the member. The bases of similarity may be age, sex, place of birth, caste, religion, liking/

disliking etc…Informal organization has no place in the organization chart. It is one of the parts

of total organization.

4) What is span control?

Span of control means the number of people managed effective by a single superior in

an organization. The term “Span of control” is also known as “Span of management”, “span of

authority”, and “Span of responsibility”. But span of management is a better term because

control and supervision are elements of management.

5) What is matrix structure?

Matrix structure is a hybrid organizational form, containing characteristics of both project

and functional structures.

6) How can we define power?

“Power is the probability that one actor within the relationship will be in a position to carry

out his own despite resistance”.


7) What is line authority?

Line authority is the direct authority which a superior exercises over a number of

subordinates to carry out orders and instruction. In organization process, authority is delegated

to the individuals to perform the activities.

8) What is staff authority?

The relationship between a staffs manager with whom he works depends in part on the

staff duties.

9) Define staffing.

Staffing is the part of the management process which is concerned with the procurement

utilization, maintenance and development of large satisfied workforce on the organization.

10) Define Human resource planning.

“Human resource planning is the process by which an organization ensures that it has

the right number and all kind of people at the right place at the right time, capable of effectively

and efficiently completions, those tasks that will help the organization achieve its overall

objectives”.

11) What is job analysis?

Job analysis is a detailed study of a job to identify the skills, experience and aptitude

required for the job.

12) What is job design?

The job design is usually broad enough to accommodate people’s needs and desires.

13) Define: Recruitment

B. Flippo defines recruitment as “The process of searching for prospective

employees and stimulating to apply for jobs in the organization”.

14) What is selection?

Selection is the process of finding out the most suitable candidate to the job out of the

candidates attracted.

16) What is grading method?

It is one of the trait-based appraisal methods. The actual performance of the employees

is measured against these grades. This method is generally useful for promotion based on

performance.


17) What is mean by resources allocation?

Manager is responsible for allocation of money, material and human resource in the

organization. His utilizes minimum resource to give maximum profit to the organization.

18) Define the Peter Principle.

The principle states that every person in a hierarchy tends to rise to the level of his

incompetence.

19) Define: Training

According to B. Flippo “Training is the act of increasing the knowledge and skill of an

employee for doing a particular job”.

20) Define Organizational conflict.

According to step “conflict is a process in which an effort is purposefully made by one

person or unit to block another that result in frustrating the attainment of others goals of the

furthering of his or her interests.

21) What is managerial grid?

Managerial grid is behavioral theory of leadership. It plays an important role in

managerial behavior in organizational development.

22) What is meant by the term directing?

Directing may be defined as the process of instructing, guiding and inspiring human

factors in the organization objectives. It is not only issuing orders and instructions by a superior

to his subordinates but also including process of guiding and inspiring them to work effectively.

23) List down the human factors in managing?

Multiplicity of roles, Individuality, Personal dignity.

24) Mention any two merits of performance appraisal. [May 2011]

1. Improve the management development.

2. Improve the employee’s performance.

3. Find out individual potential identification.


25) What are the advantages of Decentralization? [May 2011]

1. It reduces the burden of the management so that it can focus more attention and

strategic management.

2. It encourages decision making & assumption of authority & responsibility.

3. It enables the department staff members to complete work early.

26) What is functional departmentation? [May 2012]

The activities are grouped on the basis of functions which are to be performed.

27) What is meant by delegation? [May 2012]

It is a process which enables a person to assign works to others & delegate them with

adequate authority to do it.

28) What is decentralisation?[Nov 2012]

Authority to be dispersed by extension & delegation through all levels of management. It

applies to the systematic delegation of authority in an organisation-wide context.

29) What are the sources of recruitment? [Nov 2012]

The sources of recruitment may be classified into,

1. Internal sources: Present permanent employees. Retired employees. Present temporary/ casual employees

2. External sources: Educational & training institutes. Private employment agencies. Public employment exchange.


Part B

1) Describe the structure & process of organizing.


2) Explain how formal organization is different from informal organization [May 2012]

S.No. Point of view Formal organisation Informal organisation

1. Origin It is created deliberately & consciously by the frames of the organisation

It is created spontaneously & naturally.

2. Purpose It is created for achieving legitimate objectives of the organization.

It is created by the members of the organization for social & psychological satisfaction.

3. Nature Planned & official Unplanned & unofficial


4. Size It may quite large. It may be small in size. 5. Nature of

groups. It may be stable & continue for a very long period of time.

It is quite unstable in nature.

6. Number of groups.

More Less

7. Structure Definite structure, mechanical & rational.

Structureless, impersonal & emotional.

8. Authority Authority flows from top to bottom.

It may flow upward to downwards from or horizontally.

9. Communication Communication normally flows through the prescribed chain of command.

Communications pass through the informal channels which do not have one single form.

10. Control process

Rigid rules & regulations. Group norms & values.

3) Define span of management? Explain the factors which influence the effective

span of management. [May 2013]

The number of people managed effectively by a single superior in an organization.

Factors governing Span of Management

Appropriate span of Management must be determined by the specific of the manager

particular situation.

1. Ability of the manager

2. Ability of the Employees

3. Type of work

4. Well defined authority & Responsibility

5. Geographic locations

6. Level of Management

7. Economic Consideration

Narrow span – superior with less number of subordinate to monitor

Advantages

- Close supervision

- Close control


- Fast Communication, between communication between subordinates & superiors

Disadvantages

- Superiors tend to get too involved in subordinate work

- Many levels of Management

- High cost due to many levels

- Excessive distance between lowest level and top level

Wide span - superior with more number of subordinate to monitor

Advantages

- Superiors are forced to delegate

- Clear policies must be made

- Subordinates must be carefully selected

Disadvantages

- Tendency of overloaded superiors to become decision bottlenecks

- Danger of superiors loss of control

- Requires exceptional quality of managers.

Some key factors to review when determining the appropriate span of control within an organization include the following: Organizational size. Large organizations tend have a narrow span of control, whereas

smaller organizations often have a wider span of control. This difference is usually due to the costs involved with more managers and the financial resources available to an organization. Communication may be slower with narrow spans if it must pass through several levels of management.

Workforce skill level. The complexity or simplicity of the tasks performed by the employees

will affect the number of desirable direct reports. Generally, routine tasks involving repetition will require less supervisory control of a manager, allowing a wider span of control, whereas complex tasks or dynamic workplace conditions may be best suited for a narrower span of control, where managers can provide more individualized attention.

Organizational culture. Organizations need to determine the desired culture when

designing their span of control. Flexible workplaces usually have a wider span of control because employees are given more autonomy and flexibility in the production of their work.


Manager’s responsibilities. Review whether the organizational expectations allow the

managers to be effective with the number of direct reports they have, especially related to individual responsibilities, departmental planning and training. For instance, executives often have fewer direct reports than other managers in the organization.

4) Write short note on types of matrix organization.

Matrix Organisation was introduced in USA in the early 1960's. It was used to solve management problems in the Aerospace industry.

Matrix Organisation is a combination of two or more organisation structures. For example, Functional Organisation and Project Organisation.

The organisation is divided into different functions, e.g. Purchase, Production, R & D, etc. Each function has a Functional (Departmental) Manager, e.g. Purchase Manager, Production Manager, etc.

The organisation is also divided on the basis of projects e.g. Project A, Project B, etc. Each project has a Project Manager e.g. Project A Manager, Project B Manager, etc.

The employee has to work under two authorities (bosses). The authority of the Functional Manager flows downwards while the authority of the Project Manager flows across (side wards). So, the authority flows downwards and across. Therefore, it is called "Matrix Organisation".

The pecularities or characteristics or features of a matrix organisation are:-

1. Hybrid Structure : Matrix organisation is a hybrid structure. This is so, because it is a

combination of two or more organisation structures. It combines functional organisation with a project organisation. Therefore, it has the merits and demerits of both these organisation structures.

2. Functional Manager : The Functional Manager has authority over the technical

(functional) aspects of the project. The responsibilities of functional manager are:-

i. He decides how to do the work. ii. He distributes the project work among his subordinates. iii. He looks after the operational aspects.

Project Manager : The Project manager has authority over the administrative aspects of the project. He has full authority over the financial and physical resources which he can use for completing the project. The responsibilities of project manager are:-

iv. He decides what to do.

http://kalyan-city.blogspot.com/2010/07/authority-responsibility-and.html

http://kalyan-city.blogspot.com/2010/06/organisation-organizational-structure.html


v. He is responsible for scheduling the project work. vi. He co-ordinates the activities of the different functional members. vii. He evaluates the project performance.

3. Problem of Unity of Command : In a matrix organisation, there is a problem of the unity of command. This is so, because the subordinates receive orders from two bosses viz., the Project Manager and the Functional Manager. This will result in confusion, disorder, indiscipline, inefficiency, etc. All this will reduce the productivity and profitability of the project.

4. Specialisation : In a Matrix organisation, there is a specialisation. The project manager

concentrates on the administrative aspects of the project while the functional manager concentrates on the technical aspects of the project.

5. Suitability : Matrix organisation is suitable for multi-project organisations. It is mainly used by large construction companies, that construct huge residential and commercial projects in different places at the same time. Each project is looked after (handled) by a project manager. He is supported by many functional managers and employees of the company.

Advantages of Matrix Organisation

The benefits or merits or advantages of a matrix organisation are:-

1. Sound Decisions : In a Matrix Organisation, all decisions are taken by experts. Therefore, the decision are very good.

2. Development of Skills : It helps the employees to widen their skills. Marketing people

can learn about finance, Finance people can learn about marketing, etc. 3. Top Management can concentrate on Strategic Planning : The Top Managers can

spend more time on strategic planning. They can delegate all the routine, repetitive and less important work to the project managers.

4. Responds to Changes in Environment : Matrix Organisation responds to the negative changes in the environment. This is because it takes quick decisions.

5. Specialisation : In a matrix organisation, there is a specialization. The functional

managers concentrate on the technical matters while the Project Manager concentrates on the administrative matters of the project.

6. Optimum Utilisation of Resources : In the matrix organisation, many projects are run

at the same time. Therefore, it makes optimum use of the human and physical resources. There is no wastage of resources in a matrix organisation.

7. Motivation : In a matrix organisation, the employees work as a team. So, they are motivated to perform better.

8. Higher Efficiency : The Matrix organisation results in a higher efficiency. It gives high

returns at lower costs.

Limitations of Matrix Organisation

The demerits or disadvantages or limitations of a matrix organisation are:-

1. Increase in Work Load : In a matrix organisation, work load is very high. The managers

and employees not only have to do their regular work, but also have to manage other additional works like attending numerous meetings, etc.


2. High Operational Cost : In a matrix organisation, the operational cost is very high. This

is because it involves a lot of paperwork, reports, meetings, etc. 3. Absence of Unity of Command : In a matrix organisation, there is no unity of

command. This is because, each subordinate has two bosses, viz., Functional Manager and Project Manager.

4. Difficulty of Balance : In a matrix organisation, it is not easy to balance the

administrative and technical matters. It is also difficult to balance the authority and responsibilities of the project manager and functional manager.

5. Power Struggle : In a matrix organisation, there may be a power struggle between the

project manager and the functional manager. Each one looks after his own interest, which causes conflicts.

6. Morale : In a matrix organisation, the morale of the employees is very low. This is because they work on different projects at different times.

7. Complexity : Matrix organisation is very complex and the most difficult type of

organisation. 8. Shifting of Responsibility : If the project fails, the project manager may shift the

responsibility on the functional manager. That is, he will blame the functional manager for the failure.

5) Explain the concept of functional authority. How do you delegate?

Functional Authority is given to a line or staff manager to do a specific job. When the

job is completed, the authority is taken back.

For e.g. the normal job of the Marketing manager is to sell the products of the company. The

Managing Director (MD) may give him authority to conduct a New Year Party for the full

company. This authority is called Functional Authority. So, functional authority is given to a

manager to do a specific job. This job is not his normal job. When he is doing this new job, he

may or may not do his normal job. The manager already has a line or staff authority to do his

normal job. Thus, Functional authority is an additional authority given to him to do the new job.

When this new job is completed, the functional authority is taken away, and he has to go back to

his normal job.

The characteristics or features of functional authority are:-

1. Functional authority is given to a manager to perform a specific function. 2. The manager may be a line manager or a staff manager. But mostly functional authority

is given to a staff manager. 3. It is not limited to a particular department. It may even cover the full organisation. 4. It is an additional authority. It is given to a manager in addition to his normal (line or staff)

authority. 5. It is removed when the work is completed.

Advantages of Functional Authority


The importance or merits or advantages of functional authority are:-

1. The specific function is given to another manager. So, the line manager can concentrate on his regular job.

2. The specific function is performed by an expert. So, it will be done efficiently. 3. The service of the staff managers will be utilized fully for the benefit of the organisation. 4. It is suitable for large organisations. 5. The authority and responsibility is well-defined.

6) Explain the concept of decentralization? [May 2012]

http://kalyan-city.blogspot.com/2010/07/authority-responsibility-and.html


7) Mention the factors which are responsible for the emergence of informal

organizations. [May 2011]

Informal organization which established the relationship on the basis of members interaction, communication, personal likings and disliking and social contacts within a well as outside the organization.

It arises naturally on the basis of friendship or some common interest which may or may not be relocated with work. The following factors are responsible for the emergence of informal organization.

1. Origin: It is created spontaneously and naturally 2. Purpose: It is created for social and psychological 3. Nature: Unplanned and unofficial works. 4. Size: For a smaller groups alone. 5. Authority: Flow will be from any direction 6. Communication: It will be through informal channels 7. Control Process: Group norms and values.

8) What are the steps involved in the process of delegation? [May 2011]


Process of Delegation

1. Determination of results expected:

The delegator has to define the results expected from his subordinates for the achievement of organizational objectives. Results expected from the position must be very

clear to make delegation effective.

2. Assignment of duties:

The delegator first tries to define the task & duties to the subordinate. He also has to define the result expected from the subordinates. Clarity of duty as well as result

expected has to be the first step in delegation.

3. Delegation of authority:

4. Creating accountability for performance:

9) State and explain the basic steps involved in a typical selection procedure.

[May 2011, Nov 2012]

Selection is a process of choosing right person for the right job. The selection process

consists of a series of steps or techniques as follows:

1. Screening application forms


Information on application form is used for selection purposes. Sometimes,

detailed information is sought for the prospective employees. The criteria for the

contents of the application form are generally to get data that are primarily factual.

2. Selection tests:

Generally tests are to measure the intelligence, ability, aptitude, physical &

mental abilities of an individual applicant. There are many types of tests may be

conducted such as personality test, aptitude test, interest tests. These tests are very

helpful in rejecting some undesirables.

3. Preliminary Interview

Preliminary or initial interview is often held in case of "at the gate" candidates.

This interview is usually of a short duration and is aimed at obtaining certain basic

information with a view to identifying the obvious misfits or unqualified. If the candidate

seems to be possessing the basic minimum requirements for efficient job performance,

he is given an application form for being filled out by him .

4. Reference Checks

Reference checks serve as an important selection technique, if conducted

properly. The applicant is asked to mention the names and addresses of his former

employers and also of two or three persons known but not related to him. If references

are checked in the correct manner, a great deal can be learned about a person that an

interview or tests cannot elicit. Referees may be called upon to give detailed

informations about candidate's capabilities.

5. Medical Check :

Medical examination of the candidates is undertaken before they join the firm in

order to

Find out whether the candidate is physically fit to carry out duties and responsibilities effectively,

Ensure the health and safety of other employees, Find out whether the candidate is sensitive to certain work place such as in a chemical

factory.

6. Final Interview :

Before making a job offer, the candidates may be subjected to one more oral interview to find out their interest in the job and their expectations. At this stage, salary and other perks may be negotiated.


7. Approved by appropriate authority:

On the basis of the above steps suitable candidates are recommended for selection by the selection committee or personal department. Thus for top level managers board of directors are approving authority. When the approval is received, the candidates are informed about their selection & asked to report duty to specified persons.

8. Placement:

After all the formalities are completed the candidates are placed on their jobs initially on probation basis. During probation period they are observed keenly & when they complete this period successfully they become the permanent employees of the organization.

10) What is meant by Departmentation? Explain the needs and importance of

departmentation. [May 2013]

Departmentation is a process of horizontal clustering of different types of functions & activities on any one level of the hierarchy. Departmentation is conventionly based on purpose,

product, process, function, personal things & place.

Need & importance:

1. Departmentation increases the operating efficiency of the workers by providing specialization of work. Departments are created to look after one major function, specializes in it & thus it increases the operational efficiency.

2. Departmentation helps in fixing the responsibility to various executives of the organization. As one department looks after only set of activities, the duties & responsibilities can be defined precisely. It makes the executive to be alert & efficient in his duties.

3. Grouping of activities & personnel into departments makes it possible for the enterprise to expand & grow.

4. Departmentation provides the managers an opportunity to take iunitiative in completing job effectively & to make independent decisions related to the department. It also provides on the job training to the managers.

5. By assigning specific tasks to the departmental personnel,it is easier for appraisal of managerial performance.

6. Besides, departmentation gives other advantages such as facilitating budget preparation, effective control of expenditure, attaining specialization, better coordination among the managerial personal.

11) Describe departmentation by process. What are its advantages & disadvantages?

1. Departmentation by Functional Basis


– Grouping of activities in accordance with the function of an enterprise. Each major function of the enterprise is grouped into a department.

Merits

1. It is a logical and time proven method 2. It follows the principles of specialization

3. Authority and responsibility can be clearly defined and fixed 4. Since the top managers are responsible for the end results control shall

become effective

Demerits

1. This type of departmentation shall develop a loyalty towards the functions and

not towards the enterprise as whole. 2. Co-ordination of different function shall become difficult 3. Only the departmental heads are held responsible for defective work

2. Departmentation by Territorial basis – A company may have separate departments

to serve the southern region, northern region etc. It has the advantage of the intimate knowledge of local conditions.

Merits

1. It motivates each regional head to achieve high performance

2. Provides each regional head an opportunity to adapt to his local situation and customer need with speed and accuracy.

3. It affords valuable top-management training and experience to middle level executives]enables the organization to take advantage of locational factors, such as availability of raw materials, labour, market, etc.

4. Enables the Organisation to compare regional performances and invest more resources in profitable regions and withdraw resources from unprofitable ones.

Demerits

1. May give rise to duplication of various activities. Many routine and service functions performed by all the regional units can be performed centrally b the head office very economically

2. Various regional units may become so engrossed in short run competition

among themselves that they may forget the overall interest of the total

organization.

3. Departmentation by Process basis – is done on the basis of several discrete

stages in the process or technologies involved in the manufacture of a product. A cotton textile mill have separate departments for ginning, spinning, weaving, dyeing and printing and packing and sales.


Merits

1. Facilitates the use of heavy and costly equipment in an efficient manner.

2. It follows the priniciple of specialization – each dept is engaged in doing a special type of work. This increases efficiency.

3. It is suitable for Organisation which are engaged in the manufacture of those product which involve a number of processes.

Demerits

1. Difficult to compare the performance of different process based

departments.

4. Departmentation by Product basis

– suited for a large organization manufacturing a variety of products. For each major product a semi-autonomous department is created and is put under the charge of a manager who may also be made responsible for producing a profit of a given

magnitude. Product dept is the logical pattern to follow when each product requires raw materials, manufacturing, technology and marketing methods and that are markedly different from those used by other products in the Organisation. Eg HLL manufacturing detergents, toiletries, Clearasil cream and soap.

Merits

1. Relieves top management of operating task responsibility. It can therefore better concentrate on such centralized activities like finance, R& D and control

2. Enables the top management to compare the performance of different

products and invest more resources in profitable products and withdraw resources from

unprofitable ones.

3. Those who work within a department derive greater satisfaction from

identification with a recognizable goal.

Demerits

1. Results in duplication of staff and facilities

2. Employment of large number of managerial personnel is required.

3. Equipment in each product department may not be fully used

5. Departmentation by Customer basis

– An enterprise may be divided into a number of departments on the basis of the customers that it services. For Eg. An educational institution may have separate


departments for day, evening and correspondence course to impart education to full time students, locally employed students and outstation students respectively.

Merits

1. It ensures full attention to major customer groups and helps the company to

earn goodwill

Demerits

1. It may result in under utilization of resources and facilities in some

department.

2. There may be duplication of facilities.

12) Explain the importance & process of performance appraisal or explain appraisal

process or explain the methods of performance appraisal. [May& Nov 2012]

Importance of performance appraisal:

1. Before an appraisal system the objectives should be communicated to all the employees. The objectives may be promotion, pay increase, training & development.

2. The raters should be carefully selected & trained. They must be familiar with the job & the person to be rated.

3. Cordial relationship is essential between superiors & subordinates.

4. The rating should be discussed with the person concerned. This will help him to know his strengths & weakness & what steps he should take to improve performance.

5. Employees often feel feedback becomes threatening. The manager should realize that performance appraisal is not just a fault-finding system but it is meant for improving performance.

6. Follow up is important for effective appraisal.

Process of performance appraisal:


13) Give a brief account of at least six mistakes in organizing.

Six Mistakes in organizing

If you made a resolution to be more organized in the New Year, you are in good company. That is one of the top ten New Year’s resolutions. Keeping that resolution becomes a lot easier if you can avoid some of the common organizing mistakes. So no matter if you’re organizing involves more or improved meal planning, cooking more often, getting the kitchen in ship-shape or finally tackling sticking to your grocery budget, recognizing these common mistakes can really help: Not Having a Plan

Saying “I’m going to get more organized” is not a plan. Saying “I’m going to try to cook dinner at least 4 nights per week and go to the store only once a week,” is a plan. Organizing Clutter

It simply can’t be done. You can get rid of clutter but you can’t organize it. So if your cabinets and countertops are filled to the over-flowing level, it is time to get real. Decide to keep only what you use every week. Put those things away first. Next, put away those things that you use often. Finally, get rid of the things you seldom use or store them out of the kitchen. For example, those serving platters and chip/dip sets can go into a tub marked “entertaining” or into a cleared shelf in your linen closet. Not Making a Decision

I call this the “Just for Now Syndrome.” That is where you set things down, just for now. Take that extra minute to put things in their permanent spot. It will save you a ton of time down the road when you have to dig through stacks or clear your kitchen table. Not Labeling

This becomes a real problem in the kitchen. Not labeling leads to waste. We think we will remember what is in that plastic tub in the corner of the freezer or when we bought something but the truth of the matter is that we won’t. Label canisters, shelves, leftovers and more. Failing to Divide

The more you can divide your task, the less chance you will fail at whatever you are organizing. Divide jobs into small parts. Do each small part well rather than rushing through the job. In addition, divide your storage by item. Put baking goods together, spices together, canned goods together, snacks together, serving pieces together, cleaning supplies together. The more you divide by category, the easier it is to find things later. Forgetting to Change- Again


Let’s assume you made a resolution to get organized because things aren’t going well for you. So you try a new way to plan meals or organize the kitchen or keep it clean. In a week or two, you find yourself back in the same boat. Instead of shrugging and saying “Well, that didn’t work,” decide why it didn’t work and try something new. Clearly the old way didn’t work so don’t allow yourself to revert to it. 14) How does a leader influence organization culture?

Whether a leader comes up through the organization or is brought in from the outside to change the organization, there are ways that leadership can have an impact on culture.

1. Walk the Talk

People observe what you do, not just what you say and the values of the leader, not just what they say, While Enron C.E.O. Kenneth Lay and his management team were stealing from shareholders, many of his traders were laughing how they were going to bankrupt little old ladies for their heating bills. This is the toughest part of leadership. Having worked with people who wrote books on the subject, I can tell you that often times their actions did not match their words and the affect was that a number of people had no respect for them. When you say you are going to do something, you need to follow through and do.

2. Rewards and enforcement are a function of ethics.

We value what we recognize. How are people rewarded or recognized? For instance, if you want collaboration and teamwork and then reward people for 'hitting their numbers' then their energies will be on what they are recognized for. Jim Goodnight from SAS enforces that people only work 37.5 hours a week because they will be burned out if they work late hours and are therefore less productive. If 'yes' people are promoted, then the culture will see that conforming is the only way to succeed and you will create a hierarchical culture.

3. Be Passionate Passion is contagious and people like to be part of it. As the saying in the Marine Corp. leadership program goes, "People will follow you because they have to or because they want to and who do you want with a gun at your back?" When you inspire people to make change, you literally reprogram their brains and they will take ownership to ensure success.

4. Get Networked with the Organization Many senior leaders are very removed from the front-lines, which is literally where the tire hits the road. These are the people who ultimately create the culture. Many leaders really only interact with their direct reports, which gives them a skewed sense of what is going on. What is really happening at the front lines of the organization? Who are the enablers and resisters in the organization? That is the one advantage of promoting within the organization - they know the people. Of course, the problems within the organization may call for new leadership. Either way it is important to be networked in the culture. There is the culture you have and the culture many leaders think they have.


A number of years ago, I heard this story from a client. He was upset that the organization was getting rid of their smoking rooms because smoking was being banned by law from the entire building. "Even though I don't smoke," he told me. "I was amazed by what was happening in there. People were really talking without regards to title because they had one thing in common - an addiction. One day a Senior Vice President came to me and told me about this guy he was talking to who had a number of very good suggestions regarding labor relations he wanted to implement. He asked me who he was, I looked it up and found out he was part of the custodial staff. He was literally the janitor."

Leaders need to remove the layers around them and build in "smoking rooms".

15) Explain the line authority or organization with a neat sketch. Give its advantages &

disadvantages.

Line authority:

It is the ultimate authority to command, act, decide, approve or not approve-directly or indirectly-all activities of the organization. It is the heart of the relationship between superiors &

subordinates.

– are those that have direct impact on the accomplishment of the objectives of

the enterprises

- is the direct authority which a superior exercises over his subordinates to

carryout orders and instructions.

- The flow of line authority is always downward, that is from a superior to a

subordinate

- Creates a direct relationship between a superior and his subordinate

- Line authority is the direct authority which a superior exercises over his subordinates to carryout orders and inspections such authority delegated top those positions or elements of the organization which have direct responsibility for accomplishing the primary

objectives.

- Line relationship performs the following roles

a. as a chain of command

b. as a carrier of accountability (subordinate is answerable to his superior)

c. as a channel of communication

Advantages:

1. It is simple & easy to understand 2. It is flexible: easy to expand & contract. 3. Delegation of authority is very clear. 4. Channel of communication is very clear, no confusion at all.


Disadvantages:

1. It neglects specialists 2. It overloads a few key executives. 3. It requires a high type of supervisory personnel to meet the challenges improsed in the

absence of specialists as advisors. 4. It is limited to very small organization.

16) Explain the staff authority or organization with a neat sketch. Give its advantages &

disadvantages.

Staff authority

Staff refers to those elements of the Organisation which help the line to work most effectively in accomplishing the primary objectives of the enterprises.

- are those that help the line person work most effectively in accomplishing the objectives.

The staff authority may be of the following forms:

1. Advisory staff authority 2. Compulsory staff authority 3. Concurring authority

Advantages:

1. Staff specialists may be allowed the time to think, to gather data, & to analyses the

data when the line personnel are very busy in managing operations. 2. Staff improves the quality of managerial decisions by providing accurate & updated

information’s. 3. When the operations become more complex, the line people require advise of staff

personnel. 4. Staff can help in co-coordinating various activities & in ensuring uniformity of

action in certain matters. 5. Staff experts may be given authority to prescribe systems & procedures.

Disadvantages:

1. Danger of undermining line authority. 2. Lack of staff responsibility. 3. Thinking in vacuum. 4. Managerial problems.

17) Differentiate line & staff authority.

S. No Line Authority Staff Authority


1 Right to decide and command Right to provide advice, assistance

and information 2 Contributes directly to the

accomplishment of Organisational objectives

Assist line in the effective

accomplishment of Organisation objectives 3 Relatively unlimited and general Relatively restricted to a particular

function 4 Flow downward from a superior to

subordinate

May flow in any direction depending

upon the need of advice 5 Creates superior and subordinate

relation

Extension of line and support line

6 Exercise control Investigates and reports 7 Makes operating decision Provides idea for decision 8 Bears final responsibility for results Does not bear final responsibility 9 Doing functions Thinking function

10 Provides channel of communication No channel of communication is

created

18) Explain the term “art of delegation” with an example.

Most of the effective delegation fails not because of managers do not understand the

nature & principles of delegating but because of they are unable or unwilling to apply them.

Researchers attribute to the personal attitude of superiors in delegating authority as the major cause of managerial failures. Some of the personal att itudes towards delegation are as

follows:

1. Lack of receptiveness: Some of the managers always want their ideas, thoughts & feelings to be respected & would not like or digest other peoples ideas or suggestions. The managers should have an open mind to welcome the ideas of others & to complement them for their ingenuity.

2. Willingness to let go: A small entrepreneur who started his career from a small mechanic might like to take all decisions to his own even though he has reached the top position. A superior who will effectively delegate authority must be willing to release the right to make decisions to subordinates.

3. Willingness to let others make mistakes: If a person makes mistakes, the cost of making a mistake & the loss incurred by the mistake is a personnel investment. A superior should not bluntly criticize the subordinate but he should carefully counsel the subordinates. Serious or repeated mistakes can be largely avoided without nullifying or cancelling delegation or hindering development of a subordinate.

4. Willingness to trust subordinates:


A superior should develop a trustful attitude with the subordinates. He should not think that the subordinates are not yet experienced enough, or that they cannot handle problems, that they have not yet developed judgement or that they do not appreciate all the facts bearing on a situation. Sometimes, these assumptions may be true, but then a superior should either train subordinates or else select others who are prepared to take responsibility.

5. Willingness to establish & use broad controls: After assignment of duties, the authority must be delegated to the subordinates. But they must always give a feedback about their performance. There should be objective standards, for evaluating their performance. The superiors should establish broad standards of control to evaluate the subordinates.

19) What do you mean by performance appraisal? Discuss its need & importance.

Performance appraisal is the process of obtaining, analyzing & recording information

about the relative worth of an employee.

Need & importance:

1. Before an appraisal system the objectives should be communicated to all the employees. The objectives may be promotion, pay increase, training & development.

2. The raters should be carefully selected & trained. They must be familiar with the job & the person to be rated.

3. Cordial relationship is essential between superiors & subordinates. 4. The rating should be discussed with the person concerned. This will help him to know

his strengths & weakness & what steps he should take to improve performance. 5. Employees often feel feedback becomes threatening. The manager should realize that

performance appraisal is not just a fault- finding system but it is meant for improving performance.

6. Follow up is important for effective appraisal.

20) Explain the ten steps in formulating career strategy.

1. Be Sure You Really Want to Work for a Hedge Fund The more sure you are about working for a hedge fund and not being an accountant or working at a mutual fund, ETF or private equity fund, the easier it will be to navigate these 10 steps and land your first hedge fund job. If you really want to work for a hedge fund, it will show in your self-discipline, networking, knowledge of the industry, passion and, ultimately, your actions. You can change your mind later, but if you want to try to work in this industry go all in and learn as much as you can. Make the decision to change focus, commit to it for three to five years and see what comes of it. 2. Become a Student of the Hedge Fund Industry

If working for a hedge fund is your goal, then create daily habits that work toward that goal. Examples are subscribing to free hedge fund newsletters, reading two to three chapters in a book on hedge funds each day or joining a local hedge fund association or club. To get a feel for where you might fit within the industry you need to learn the basics:

http://www.investopedia.com/terms/m/mutualfund.asp

http://www.investopedia.com/terms/e/etf.asp

http://www.investopedia.com/terms/p/privateequity.asp


Who are the major players in the industry? What terms/definitions are important to know?

Which strategies hedge fund managers commonly employ?

3. Use the Three-Circles Strategy

Jim Collins wrote a best-selling book in 1995 called "Good To Great." In his research, he found that the companies that made the leap from being good companies to becoming truly great companies employed what he called the "three-circles strategy." When facing a tough decision or turning point in their businesses, leaders of these corporations would draw three circles. One included options they were passionate about, one included options that took advantage of their experience and one included only those ideas which could be highly profitable. They would then consider only options that fell within the intersection of these three circles. In other words, to be successful in the hedge fund industry and make wise decisions along the way, it might help to consider only positions where you would be passionate about your work, draw off of your education and natural strengths and have the potential to be highly profitable. 4. Identify Hedge Fund Career Mentors

Early on in your exploration within the world of hedge funds, you should try to identify a couple of potential mentors with whom you could begin to develop a relationship. It usually takes some time to develop mentoring relationships, but many successful people are happy to help others out if they have the time to do so. To impress a mentor, you will need to show commitment, a pro-active learning attitude, patience, humility and a hunger for learning as much as you. 5. Complete One or More Internships

Once you have become more knowledgeable about hedge funds and identified a potential mentor, you should start looking for internships. Even if you are working full-time in another position, conducting research for a hedge fund for five to 10 hours a week can be enough to expose you to how that hedge fund creates trading ideas or operates as a business. Try to work on-site if possible, but don't pass up a great learning opportunity if the only way to gain a hedge fund internship is by working remotely.

6. Have a clear written plan of action.

Career goals and intentions are all well and good. However, an actionable plan can make the difference between achieving your career goals or giving up when you encounter setbacks. The greatest career influencers would not have achieved their career success without clear goals and strategies to keep them focused and undeterred by distractions.

7. As well as having an actionable plan, it is a good idea to write down your motivations for wanting to achieve your career goals. Your motivations will become the driver when progress

seems slow or your initial passion begins to fade. Regularly referring back to your reasons for wanting to change your career will help to strengthen your resolve and re-energise you physically, mentally and emotionally.

http://www.investopedia.com/articles/financialcareers/09/finance-mentors-elevate-career.asp


8. Welcome setbacks.

All new ventures (and old ones too) will be marked by their fair share of setbacks. Welcome them. See them as allies. They are part of the process of becoming a career winner. Whilst setbacks are disappointing and uncomfortable, they can also offer learning points, as well as opportunities for you to develop career resilience and personal growth.

9. Learn how to eliminate unhelpful thought patterns.

Many of us have a set of old tapes that we replay over and over. These are usually out of date childhood (or even adulthood) messages which you remain convinced are still relevant, but which prevent you from taking the necessary steps to achieve change. Learn how to challenge and replace unhelpful thinking with internal messages that are realistic and relevant to where you are now.

10. Be honest about your career strengths and weaknesses.

Whilst it would be great to be an expert at everything, it’s unlikely to happen that way. Knowing your strengths and weaknesses means that you can be more selective about what you commit yourself to doing. Honesty will bring a sense of realism to your career goals, aspirations, and strategies for achieving them.

21) How will you identify training need of an employee?

22) Evaluate the advantages & disadvantages of on-the-job training.

On-the-job training

With on the job training, employees receive training whilst remaining in the workplace.


Advantages

Generally most cost-effective Employees are actually productive Opportunity to learn whilst doing Training alongside real colleagues

Disadvantages

Quality depends on ability of trainer and time available Bad habits might be passed on Learning environment may not be conducive Potential disruption to production

1. Low Productivity

The trainees are taken at the actual work station for training; hence, they are in the

process of learning skills. AS a result, the organizational productivity will be lower.

2. Errors on Production

Since the trainees are not involved with production activities, the will be the possibility of

errors on production activities. The goods produced by trainees will be qualitative.

3. Costly

OJT method is costly in the sense that the workers are disturbed by training activities;

the goods produced by the trainees will have less quality and there will be chances of

damage of goods. These all result in higher cost of production.

4. Disturbance

Disturbance may arise during the work process as trainees are in learning phase. The

existing workers may feel disturbed due to the trainees and the supervisors.

5. Possibility Of Accidents

Under OJT, the learners are directly involved in production process who do not have

adequate knowledge and skill of working with the given equipments and materials. Hence,

the possibility of accidents exists in the work station.

23) Evaluate the advantages & disadvantages of off-the-job training.

Off-the-job training

This occurs when employees are taken away from their place of work to be trained.


Advantages

A wider range of skills or qualifications can be obtained Can learn from outside specialists or experts Employees can be more confident when starting job

Disadvantages

More expensive – e.g. transport and accommodation Lost working time and potential output from employee New employees may still need some induction training Employees now have new skills/qualifications and may leave for better jobs

24) What is sensitivity training? Do you think sensitivity training would make you a better manager explains?

In this method a small group (T-group) meets in an unstructured situation. Under this training the different groups of trainees are allowed to mix up each other & communicate with each other freely & criticize the behavior of each other thereby giving a feedback positive or

negative. The objectives of sensitivity training are

a) Better understanding a group process. b) To develop skills in diagnosing & interpersonal relationship. c) To develop achievement of behavioural effectiveness in participants .

Process of sensitivity training:

Stranger-lab:

All participants are from the different organization & they are strangers to each other..

Cousin-lab:

All participants are from the same organization but from different units

The main objective of sensitivity training is the development of awareness & sensitivity to

behavioural patterns of oneself & others.

The process of sensitivity consists of the following steps.

a) Participation in T-groups should be voluntary. b) Participants should be screened. c) A professional expert serves a catalyst & trainer. d) The groups, meets without any formal agenda. e) The trainer provides feedback to members on how they interacted with one another.

Advantages of sensitivity training


i. Trainees develop understanding of group process. ii. Leadership & communication skills are created.

25) Explain orientation in management.

Orientation means providing new employees with basic information about the employer.

Orientation programs not only improve the rate at which employees are able to perform their jobs but also help employees satisfy their personal desires to feel they are part of the organization's social fabric. The HR department generally orients newcomers to broad organizational issues and fringe benefits. Supervisors complete the orientation process by introducing new employees to coworkers and others involved in the job. A buddy or mentor may be assigned to continue the process.

Different types of organizational orientations 1. Upward mobile

This type of orientation is the most recognized. These are Individuals within an organization who desire advancement within the organization hierarchy. These individuals see their work as the central part of their lives and are very devoted to their career (Goodboy 2007). They are very self-motivated and believe in the rules and the procedures of the organization. They are procedure oriented and identify strongly with the organization and has a desire to secure high status rewards. An upward mobile has a high level of job satisfaction, a feeling of attachment to the organization and an exceptional drive for power (Pruden). These workers are also believed to identify with whatever organization they are employed at and are more than willing to defend their organization against people that may attack it. Upward mobiles have strong decision making skills and are also willing to take risks to keep the success of the organization and their own (McCroskey 2005). They are able to make positive contributions through their willingness to work hard and achieve goals. The people with this type of orientation are highly concerned with their own success then gaining approval from their peers. They do not like associating with people who don't have the same career path that they desire. Many organizations are looking to hire these type of people, this is because they know that they can rely on these people to do what is asked of them (Organizational orientations and communication traits).

2. Indifferents

This refers to workers who are committed to their job as a way of earning a living. They

work to live, and they see their live existing separate from their work. Their life begins when work is over (Goodboy 2007). They are mostly concerned with the paychecks that they will be receiving and are not interested in their job or the organization (McCroskey 1998). To them working is a necessity in life. Work is separated from the meanings of life and his/her relationship with the organization is strictly economic based (Presthus). These people make up a large portion of the employees in an organization. Indifferent's only work to satisfy the basic needs of their loved ones. These type of people do not like to participate in organizational

http://en.wikipedia.org/w/index.php?title=Goodboy&action=edit&redlink=1

http://en.wikipedia.org/wiki/Pruden


routines that occur on a daily basis. They would also never volunteer to do more work then they have to, they come to work to do the job they were assigned to do, and then go home (McCroskey 2004). When communicating they often talk more about their family and life at home instead of organizational matters that are going on in the workplace. Other characteristics of indifferents are that they have a high level of job satisfaction and not many upward mobility aspirations. Highly indifferent people are worried about being accepted by their peers at work (organizational orientations and communication traits). All organizations needs these type of people in the workplace because they can be assigned to do routine tasks that require very little thought. They do the tasks that others would not enjoy doing (D. Russ). They don't mind doing these types of jobs because they get a paycheck out of it. It is easy to get along with these type of people as long as you don't push them to do extra work. A good way to get along with them is to talk to them about other things besides work. Talking to them about their family and their life outside of work is a good idea (organizational orientations and communication traits).

3. Ambivalents

This refers to workers who tend to be highly critical of any job and seem to find problems with any organization. They are very unpredictable and change jobs very often it order to fine the perfect organization because they are never truly comfortable in an organization (Goodboy 2007). They also do not adapt well to organizations. Ambivalent people tend to be introverts who also do not like rules or authority and do not fit into the roles that the organizations assigns them (McCroskey 2004).They do not see themselves as part of the organization and do not accept the organization or the people within the organization for what they are(Pruden). Ambivalent people tend to be very moody, therefore it makes it hard to work with them or for them, they can be very supportive one day and then can be very discouraging the next. Ambivalents need some type of security, in which the organization can provide but they are unable to obtain it (Presthus). These type of people are very skilled, but since they don't like authority they will try to turn others against the organization, and will also openly chastise the organization. Communicating with ambivalents can be very difficult, the only topic that you might be able to communicate with them is on criticizing the organization (organizational orientations and communication traits).

25) Explain staffing.

Staffing is the process of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization’s effectiveness . The Importance of Staffing to Organizational Leaders

“It all starts and ends with people. They are the heart, the soul and the spirit of our company… From a human resources perspective, it starts with selecting the best. The most important decision that we make within our company is who we hire.” Carolyn Clark, vice president, human resources CP Hotels—hospitality “Globally, heads of companies consistently rank the ability to find the right talent to deliver on business objectives as one of their greatest challenges … The investment in capability upfront will have a direct impact on the quality of the talent who come in the door later.” Maureen Neglia, director, RBC recruitment


RBC Financial Group—financial “I think about this in hiring, because our business all comes down to people…. In fact, when I’m interviewing a senior job candidate, my biggest worry is how good they are at hiring. I spend at least half the interview on that.” Jeff Bezos, chief executive officer Amazon.com—Internet merchandising “We carefully select people who have more than one knowledge area, so there is no rigid job description and people can perform more than one function. This strategy is built on selecting highly adaptable employees rather than specialists for one job.” Peter Klein, president KLN KLEIN Products Development Inc.—custom manufacturing services “If we talk about people as expendable cogs who are responsible to manage their own careers then we cannot be surprised when they leave for other opportunities. If the strategy is to buy what you need when you need it, then everyone potentially ends up in the contingent workforce — and procurement replaces human resources. You lose the benefits of the cohesiveness, coherence and connectivity that come from a resident workforce.” Teresa Lister, partner of human capital management IBM Business Consulting Service—business and IT consulting services Staffing Process - Steps involved in Staffing

1. Manpower requirements- The very first step in staffing is to plan the manpower

inventory required by a concern in order to match them with the job requirements and demands. Therefore, it involves forecasting and determining the future manpower needs of the concern.

2. Recruitment- Once the requirements are notified, the concern invites and solicits

applications according to the invitations made to the desirable candidates.

3. Selection- This is the screening step of staffing in which the solicited applications are

screened out and suitable candidates are appointed as per the requirements.

4. Orientation and Placement- Once screening takes place, the appointed candidates are made familiar to the work units and work environment through the orientation programmes. placement takes place by putting right man on the right job.

5. Training and Development- Training is a part of incentives given to the workers in

order to develop and grow them within the concern. Training is generally given according to the nature of activities and scope of expansion in it. Along with it, the workers are developed by providing them extra benefits of indepth knowledge of their functional areas. Development also includes giving them key and important jobsas a test or examination in order to analyse their performances.

6. Remuneration- It is a kind of compensation provided monetarily to the employees for

their work performances. This is given according to the nature of job- skilled or unskilled, physical or mental, etc. Remuneration forms an important monetary incentive for the employees.


7. Performance Evaluation- In order to keep a track or record of the behaviour, attitudes

as well as opinions of the workers towards their jobs. For this regular assessment is done to evaluate and supervise different work units in a concern. It is basically concerning to know the development cycle and growth patterns of the employeesin a concern.

8. Promotion and transfer- Promotion is said to be a non- monetary incentive in which the

worker is shifted from a higher job demanding bigger responsibilities as well as shifting the workers and transferring them to different work units and branches of the same organization.

26) Differentiate recruitment & selection.

Basis Recruitment Selection

Meaning It is an activity of establishing contact between employers and applicants.

It is a process of picking up more competent and suitable employees.

Objective It encourages large number of Candidates for a job.

It attempts at rejecting unsuitable candidates.

Process It is a simple process. It is a complicated process.

Hurdles The candidates have not to cross over many hurdles.

Many hurdles have to be crossed.

Approach It is a positive approach. It is a negative approach.

Sequence It proceeds selection. It follows recruitment.

Economy It is an economical method. It is an expensive method.

Time

Consuming

Less time is required. More time is required.

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