QT hoc 2
Q1. Explain why management is considered as act, science and a job.
- Management also contains some fundamental principles which can be applied universally like the Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type of organization - business or non business.
Experimentation & Observation - Scientific principles are derived through scientific investigation & researching i.e. they are based on logic.
Management principles are also based on scientific enquiry & observation and not only on the opinion of Henry Fayol. They have been developed through experiments & practical experiences of large no. of managers.
Cause & Effect Relationship - Principles of science lay down cause and effect relationship between various variables.The same is true for management, therefore it also establishes cause and effect relationship.
Principles of management can also be tested for validity.
It cannot be denied that management has a systematic body of knowledge but it is not as exact as that of other physical sciences like biology, physics, and chemistry etc. The main reason for the inexactness of science of management is that it deals with human beings and it is very difficult to predict their behavior accurately. Since it is a social process, therefore it falls in the area of social sciences. It is a flexible science & that is why its theories and principles may produce different results at different times and therefore it is a behavior science. Ernest Dale has called it as a Soft Science.
- 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.
Management as an art is also personalized. Every manager has his own way of managing things based on his knowledge, experience and personality.
Management is also creative in nature like any other art. 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.
Thus, we can say that management is an art therefore it requires application of certain principles rather it is an art of highest order because it deals with moulding the attitude and behavior of people at work towards desired goals.
Management is both an art and a science. The above mentioned points clearly reveals that management combines features of both science as well as art. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. It is called an art because managing requires certain skills which are personal possessions of managers. Science provides the knowledge & art deals with the application of knowledge and skills.
A manager to be successful in his profession must acquire the knowledge of science & the art of applying it. Therefore management is a judicious blend of science as well as an art because it proves the principles and the way these principles are applied is a matter of art. Science teaches to ’know’ and art teaches to ’do’.
Q2. Explain the roles of management in organization.
Following are the main roles of a leader in an organization :
Required at all levels- Leadership is a function which is important at all levels of management. In the top level, it is important for getting co-operation in formulation of plans and policies. In the middle and lower level, it is required for interpretation and execution of plans and programmes framed by the top management. Leadership can be exercised through guidance and counseling of the subordinates at the time of execution of plans.
Representative of the organization- A leader, i.e., a manager is said to be the representative of the enterprise. He has to represent the concern at seminars, conferences, general meetings, etc. His role is to communicate the rationale of the enterprise to outside public. He is also representative of the own department which he leads.
Integrates and reconciles the personal goals with organizational goals- A leader through leadership traits helps in reconciling/ integrating the personal goals of the employees with the organizational goals. He is trying to co-ordinate the efforts of people towards a common purpose and thereby achieves objectives. This can be done only if he can influence and get willing co-operation and urge to accomplish the objectives.
He solicits support- A leader is a manager and besides that he is a person who entertains and invites support and co- operation of subordinates. This he can do by his personality, intelligence, maturity and experience which can provide him positive result. In this regard, a leader has to invite suggestions and if possible implement them into plans and programmes of enterprise. This way, he can solicit full support of employees which results in willingness to work and thereby effectiveness in running of a concern.
As a friend, philosopher and guide- A leader must possess the three dimensional traits in him. He can be a friend by sharing the feelings, opinions and desires with the employees. He can be a philosopher by utilizing his intelligence and experience and thereby guiding the employees as and when time requires. He can be a guide by supervising and communicating the employees the plans and policies of top management and secure their co-operation to achieve the goals of a concern. At times he can also play the role of a counselor by counseling and a problem-solving approach. He can listen to the problems of the employees and try to solve them.
Q3. Present and analyze 4 management principles of F.W. Taylor and how do these principles apply in organizations in Vietnam nowadays.
Taylor's scientific management consisted of four principles:
Replace rule-of-thumb work methods with methods based on a scientific study of the tasks.
Scientifically select, train, and develop each employee rather than passively leaving them to train themselves.
Provide "Detailed instruction and supervision of each worker in the performance of that worker's discrete task" (Montgomery 1997: 250).
Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks.
In VietNam: When management was seen as a new industry, the requirement was to train a team of managers who have sufficient moral and professional qualifications, put them in position and suitable work with adequate power. Administrators must understand science. They layout scientific workers to replace the backward existing practices of labor. Scientifically determined amount of the daily work of employees with manipulation and time needed to arrange appropriate process technology (part of the split) and setting limits for each part of work. Operations with standardized equipment, tools, materials were standardized and convenient working environment. Each worker is tied to a position working on the principle of highly specialized.
Q4. Present and analyze 14 management principles of Henry Fayol and how do these principles apply in organizations in Vietnam nowadays.
Division of work. This principle is the same as Adam Smith's 'division of labour'. Specialisation increases output by making employees more efficient.
Authority. Managers must be able to give orders. Authority gives them this right. Note that responsibility arises wherever authority is exercised.
Discipline. Employees must obey and respect the rules that govern the organisation. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organisation's rules, and the judicious use of penalties for infractions of the rules.
Unity of command. Every employee should receive orders from only one superior.
Unity of direction. Each group of organisational activities that have the same objective should be directed by one manager using one plan.
Subordination of individual interests to the general interest. The interests of any one employee or group of employees should not take precedence over the interests of the organisation as a whole.
Remuneration. Workers must be paid a fair wage for their services.
Centralisation. Centralisation refers to the degree to which subordinates are involved in decision making. Whether decision making is centralised (to management) or decentralised (to subordinates) is a question of proper proportion. The task is to find the optimum degree of centralisation for each situation.
Scalar chain. The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. However, if following the chain creates delays, cross-communications can be allowed if agreed to by all parties and superiors are kept informed.
Order. People and materials should be in the right place at the right time.
Equity. Managers should be kind and fair to their subordinates.
Stability of tenure of personnel. High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.
Initiative. Employees who are allowed to originate and carry out plans will exert high levels of effort.
Esprit de corps. Promoting team spirit will build harmony and unity within the organisation.
In VietNam: Corporate governance has been implementing the principles of thorough planning, make plans in earnest. The organization must conform to the goals, benefits, requirements of the business. Agency executive management must be unique, capable and active. Harmonious combination of business activities in coordination with these efforts. Decision-making must be clear, definitive, accurate. Selection organization staff good, parts are taken by a person capable of leadership, each employee must be arranged in place can develop their abilities
Q5. Analyze main management functions and which principle is the most important?
Management operates through various functions, often classified as planning, organizing, staffing, leading/directing, and controlling/monitoring.
Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next 5 years, etc.) and generating plans for action.
Organizing: (Implementation) making optimum use of the resources required to enable the successful carrying out of plans.
Staffing: Job Analyzing, recruitment, and hiring individuals for appropriate jobs.
Leading/Directing: Determining what needs to be done in a situation and getting people to do it.
Controlling/Monitoring: Checking progress against plans.
Staffing is an important managerial function- Staffing function is the most important mangerial act along with planning, organizing, directing and controlling. The operations of these four functions depend upon the manpower which is available through staffing function.
Q6. Analyze the differences between manager and entrepreneur? Please give an example to illustrate your idea.
1. Behavioral Differences
The typical entrepreneur wants to "be in control" of his life (which is often the reason why he started the business), of his business and especially of his employees.
The professional manager enters a company which needs to delegate authority, since it has reached the stage in its development where the entrepreneur can no longer "do it all himself".
2. Management Style
The entrepreneurial management style is very demanding, leaving very little room for error, and none at all for actual failures
The professional manager, however, must be tolerant of failure, and develop an administrative team, since a basic assumption is that responsibility
3. The Moving Force
Entrepreneurial management is characterized by concepts such as "entrepreneurship", "creativity", "innovation", and so on, indicators of the desire to create "something from nothing".
Professional management is characterized by concepts such as "order", "organization", "procedures", and so on, indicating the desire to organize and maintain what exists.
4. Growth
Entrepreneurial management is noted for its ability to react quickly and effectively to new business opportunities.
Professional management is noted for medium and long term strategic planning.
5. Organizational Structure
The entrepreneurial organization is characterized by its informal, flexible structure. Professional management requires a formal and fairly rigid organizational structure, 6. Decision-Making
The entrepreneur usually makes decisions, even those of critical importance for his business, on the basis of his own personal intuition
The professional manager makes decisions after collecting detailed information and reaching operative conclusions
7. Attitude to Risk
The myths describe entrepreneurs as "wild risk-takers". And the professional manager, who sees his task as strengthening and maintaining the company, is naturally afraid of risks and tries to maintain the status.
Entrepreneur: Has to have 3 characteristics: Establish the business. Own the business by him self. Directly manage the business. The entrepreneur must be a manager. Have out side-oriented characteristic. Purposes of entrepreneur: Max profit. Self control in business. Self satisfaction.
Manager: May or may not be an entrepreneur. Managers work in management system and get monthly salary is not entrepreneur. Have inside-oriented characteristic
Eg: Ina company thatproducedmilk productincludes manymanagers. The individuals involved increatinga business, capital investmentact asownersandmanagersdirectly involved inproduction activitiesis the entrepreneur. Andindividuals performingcertain functionsin theadministrativeapparatus ofall levels, theywork and receive wagescalledmanagers.
Q7. Analyze the necessary skills of managers. Which management skills does need to each management level? Please give an example to illustrate your idea.
Management skills :
Professional skills: ability to understand and to solve all professional problems.
Organizing skills : ability to work with and to coordinate with others to achieve the organizational goals/objectives.
Awareness and mentality skills : ability to aware to do decision making, to guide organization responding to the environmental changes.
Management skills does need to each management level:
First-Level Managers: Organizing skills, especialy need professional skills.
Middle-Level Managers: Organizing skills .
Top-Level Managers: Organizing skills, especialy need awareness and mentality skills.
Example:
Technical: used for specialized knowledge required for work.
Political: used to build a power base and establish connections.
Conceptual: used to analyze complex situations.
Interpersonal: used to communicate, motivate, mentor and delegate.
Diagnostic: ability to visualise most appropriate response to a situation .
Q8. Explain why professional skills does not strictly require for top level of manager?
Top-Level Managers: typically consist of Board of Directors, President, Vice President, Chief Executive Officers, etc. These individuals are mainly responsible for controlling and overseeing all the departments in the organization. They develop goals, strategic plans, and policies for the company, as well as make many decisions on the direction of the business. In addition, top-level managers play a significant role in the mobilization of outside resources and are for the most part responsible for the shareholders and general public.
They want to understanding of how factors such as competition, world economies, politics, and social trends influence the effectiveness of the organization.
So professional skills does not strictly require for top level of manager.
Q9. State yours understanding on management decision?
Decision-making is an essential aspect of modern management. It is a primary function of management. A manager's major job is sound/rational decision-making. He takes hundreds of decisions consciously and subconsciously. Decision-making is the key part of manager's activities. Decisions are important as they determine both managerial and organizational actions. A decision may be defined as "a course of action which is consciously chosen from among a set of alternatives to achieve a desired result." It represents a well-balanced judgment and a commitment to action.
It is rightly said that the first important function of management is to take decisions on problems and situations. Decision-making pervades all managerial actions. It is a continuous process. Decision-making is an indispensable component of the management process itself.
Means and ends are linked together through decision-making. To decide means to come to some definite conclusion for follow-up action. Decision is a choice from among a set of alternatives.
Decision-making lies embedded in the process of management.This clearly suggests that decision-making is necessary in planning, organising, directing, controlling and staffing. The effectiveness of management depends on the quality of decision-making.Decision-making has priority over planning function.
Q10/ Analyze main functions of management decisions? Give an example to illustrate your idea.
-Direction: business administration decided intention of the leadership in order to gather all the resources of the organization to achieve the common goals of the organization.
-Guarantee: decision to prop units conducting additional work, the normal decisions that the conditions to implement the decision.
-Coordination: decision as a basis for unity units carry out their leader so it was a combination units.
-Administration and enforcement: leader's decision as an imperative, binding must subordinate units to make an earnest
Example: ( chooseone ofthefollowing examples )
1.Deciding whether a decision should be made. ( Need)
A company receives a request for a bid on a large project.
A competitor releases an upgraded product.
Customers increasingly complain about poor service.
Companies constantly are confronted with events like these-problems to address and opportunities to exploit. Successful decision managers vigilantly monitor the business landscape so they can see these events unfolding and determine whether, when and how to initiate a decision-making effort.
2. What resources will be invested in decision making? ( investment)
Decision makers must weigh the material resources needed to make a decision-direct expenses and staff time, for example-as well as the emotional costs, including stress, conflict and uncertainty in the organization.
3. How much would beneficiaries care, positively or negatively, if a particular outcome were realized? ( value)
Different stakeholders may have dramatically different values regarding an action and its outcomes. The intensity of these values determines whether they will take action supporting or opposing the decision.
4. Every prospective action has strengths and weaknesses; how should they be evaluated? ( tradeoffs)
There are formal "tradeoff tools" that can help with complex decisions. In most cases, when this issue is resolved, the decision is made.
Q11/ What are requirements of management decision? Give an example to illustrate your idea.
Objective and scientific
Direction
System
Optimum
Condensed and understandable
Administration
Time clarity
Example:(chooseone ofthefollowing examples )
1. What are the potential responses to a particular problem or opportunity? (options)
The goal here is to assemble and evaluate options in a way that
Unearths the ideal solution (or one close to it).
Wastes minimal resources.
Methods for gathering potential choices include soliciting ideas from staff, seeking input from a consultant, brainstorming and evaluating how other organizations have responded to a similar issue.
2. What could happen as a result of a particular course of action? ( Possibilities)
Managers must foresee outcomes that are likely to be important to beneficiaries and stakeholders in the decision. Many decisions fail when these parties-including employees, customers and neighbors-are blindsided by adverse outcomes the decision makers failed to even consider.
3. The decision has been made. How can we ensure it will be carried out? ( Implementation)
A decision that is not implemented is a failure. It's important to recognize, and prevent, circumstances that can cause this to happen. Such circumstances include failure to allocate adequate resources to the initiative, failure to assign a senior manager to champion the project and failure to provide incentives that ensure staffers will make implementation a high priority among their responsibilities.
4. Who will make this decision?
How will they decide? ( mode)
Should a particular decision be made by a senior executive or delegated (perhaps even to a computer)?
Is a consultant's expertise needed?
Should a committee be convened?
If so, who should serve on it and what process should they follow?
Managers must understand the numerous means of making decisions and carefully apply them to specific issues.
Q12/ How a management function is considered as appropriate management decision?
A Management Decision Problem is whereby when a situation arises, and management of a company needs to make a decision which requires research and hence starts the research process. There is no actionable guidance.
It is simply a statement of the issue that management is dealing with, and there must be restatement in the research terms.
Make sure it’s your decision to make. Sometimes the most stressful decisions of all are the ones that belong to someone else. Make sure you’re the one responsible for finding a solution.
Consider and write down your alternatives. If you know your options, making decisions becomes more of a strategy and less of a stressful event. Writing them down turns those options into reality, and gives you the freedom to consider something without actually doing it. Think of your options as pieces of a jigsaw puzzle, one that will help you identify the best possible solution for a particular situation.
Collect more information. After you’ve jotted down your options, gather more data and try to imagine the outcome of each alternative. This is a safe way to experiment without putting anything or anyone in jeopardy.
Don’t underestimate the value of a gut feeling. Your visceral — or gut — response to something should never be dismissed. That response is based on your own knowledge and experience. Indeed, if you minimize your intuition regarding a management decision, you may regret it when it’s too late. If you’re comfortable, then go for it, or perhaps you can reality-test it with a colleague. If you’re still unsure, you might need more information, or it might be time to abandon that alternative. What’s important here is that you learn to trust your instincts and stand firmly by them.
Don’t underestimate your employees’ input. If you want to be informed, it’s a good idea to listen to everyone’s input. Remember, you can learn from your employees. Later, you can filter out what’s useful and what’s not. Belittling someone’s input can be especially damaging, and can result in low morale and decreased productivity. Make sure your employees know that you value their input. Remember, some of the biggest “mistakes” in business have become big sellers like penicillin and Post-it® Notes.
Don’t overestimate, either. Just as you might underrate the information you glean from one source or another, you also might rely too heavily on what you perceive to be someone’s expertise. Sometimes people seem smarter than they are, or the information they’re providing — while persuasive-sounding — may be out-of-date or, worse, inaccurate. To avoid this trap, try to obtain information from as many sources as possible. This will give you more to work with when it comes down to making wise management decisions.
Perform a cost-benefit analysis. Make sure that your decisions make good financial sense. Attaching a finance filter to your decision-making process will help you weed out alternatives that may seem wise on the surface, but in reality, aren't good for your business. You need to add up the value of the benefits and then subtract the costs. If you’re in the red, then it’s time to start over, or at the very least, cross that particular option off your list. Basically, you want to ask yourself, “Is this worth it?”.
Q13/ State steps in decision making process. Give an example to illustrate your statement?
Six main steps:
Define problem need to decide : Identification of the real problem before a business enterprise is the first step in the process of decision-making. It is rightly said that a problem well-defined is a problem half-solved. Information relevant to the problem should be gathered so that critical analysis of the problem is possible. This is how the problem can be diagnosed. Clear distinction should be made between the problem and the symptoms which may cloud the real issue. In brief, the manager should search the 'critical factor' at work. It is the point at which the choice applies. Similarly, while diagnosing the real problem the manager should consider causes and find out whether they are controllable or uncontrollable.
Find out decision factors: After defining the problem, the next step in the decision-making process is to analyze the problem in depth. This is necessary to classify the problem in order to know who must take the decision and who must be informed about the decision taken. Here, the following four factors should be kept in mind:
1. Futurity of the decision,
2. The scope of its impact,
3. Number of qualitative considerations involved, and
4. Uniqueness of the decision.
Collect information: After defining the problem and analyzing its nature, the next step is to obtain the relevant information/ data about it. There is information flood in the business world due to new developments in the field of information technology. All available information should be utilised fully for analysis of the problem. This brings clarity to all aspects of the problem.
Define solution : After the problem has been defined, diagnosed on the basis of relevant information, the manager has to determine available alternative courses of action that could be used to solve the problem at hand. Only realistic alternatives should be considered. It is equally important to take into account time and cost constraints and psychological barriers that will restrict that number of alternatives. If necessary, group participation techniques may be used while developing alternative solutions as depending on one solution is undesirable.
Implement the decision: After preparing alternative solutions, the next step in the decision-making process is to select an alternative that seems to be most rational for solving the problem. The alternative thus selected must be communicated to those who are likely to be affected by it. Acceptance of the decision by group members is always desirable and useful for its effective implementation.
Evaluation : After the selection of the best decision, the next step is to convert the selected decision into an effective action. Without such action, the decision will remain merely a declaration of good intentions. Here, the manager has to convert 'his decision into 'their decision' through his leadership. For this, the subordinates should be taken in confidence and they should be convinced about the correctness of the decision. Thereafter, the manager has to take follow-up steps for the execution of decision taken.
Q14: In an organization, the management capacity of each management level is 4. Total employees in the organization are 4096. Define the management levels and number managers needed to manage the organization. Assume that the management capacity is increased double to current management capacity; define the management levels and numbers of managers needed to manage the organization.
Answer
Assume that the management level is X.
We have
4^X= 4096 suy ra X= 6
and the number of managers needed: 1365
If the management capacity increase double, we have:
8^X = 4096 suy ra X= 4
and the number of managers needed: 585
Q15: Plan and projection in organization
There are 3 types of plan and projection
• Strategic plan and projection
• Static plan and projection
• Operation plan
So what is the plan and projection?
Planning is the process of defining objectives and choosing methods to achieve those goals.Planning means looking ahead and chalking out future courses of action to be followed. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job. Planning is a detailed programmed regarding future courses of action. Therefore planning takes into consideration available & prospective human and physical resources of the organization so as to get effective co-ordination, contribution & perfect adjustment. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources.
Planning helps managers to organize and exploit human and other resources efficiently. Types of plan and projection
Strategic Plan and projection
Static plan and projection:
Operational planning and projection
Steps in Planning Function
Planning function of management involves following steps:-
1. Establishment of objectives
Planning requires a systematic approach.
Planning starts with the setting of goals and objectives to be achieved.
Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts.
Moreover objectives focus the attention of managers on the end results to be achieved.
As a matter of fact, objectives provide nucleus to the planning process. Therefore, objectives should be stated in a clear, precise and unambiguous language. Otherwise the activities undertaken are bound to be ineffective.
As far as possible, objectives should be stated in quantitative terms. For example, Number of men working, wages given, units produced, etc. But such an objective cannot be stated in quantitative terms like performance of quality control manager, effectiveness of personnel manager.
Such goals should be specified in qualitative terms.
Hence objectives should be practical, acceptable, workable and achievable.
2. Establishment of Planning Premises
Planning premises are the assumptions about the lively shape of events in future.
They serve as a basis of planning.
Establishment of planning premises is concerned with determining where one tends to deviate from the actual plans and causes of such deviations.
It is to find out what obstacles are there in the way of business during the course of operations.
Establishment of planning premises is concerned to take such steps that avoids these obstacles to a great extent.
Planning premises may be internal or external. Internal includes capital investment policy, management labour relations, philosophy of management, etc. Whereas external includes socio- economic, political and economical changes.
Internal premises are controllable whereas external are non- controllable.
3. Choice of alternative course of action
When forecast are available and premises are established, a number of alternative course of actions have to be considered.
For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization.
The merits, demerits as well as the consequences of each alternative must be examined before the choice is being made.
After objective and scientific evaluation, the best alternative is chosen.
The planners should take help of various quantitative techniques to judge the stability of an alternative.
4. Formulation of derivative plans
Derivative plans are the sub plans or secondary plans which help in the achievement of main plan.
Secondary plans will flow from the basic plan. These are meant to support and expediate the achievement of basic plans.
These detail plans include policies, procedures, rules, programmes, budgets, schedules, etc. For example, if profit maximization is the main aim of the enterprise, derivative plans will include sales maximization, production maximization, and cost minimization.
Derivative plans indicate time schedule and sequence of accomplishing various tasks.
5. Securing Co-operation
After the plans have been determined, it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence.
The purposes behind taking them into confidence are :-
Subordinates may feel motivated since they are involved in decision making process.
The organization may be able to get valuable suggestions and improvement in formulation as well as implementation of plans.
Also the employees will be more interested in the execution of these plans.
6. Follow up/Appraisal of plans
After choosing a particular course of action, it is put into action.
After the selected plan is implemented, it is important to appraise its effectiveness.
This is done on the basis of feedback or information received from departments or persons concerned.
This enables the management to correct deviations or modify the plan.
This step establishes a link between planning and controlling function.
The follow up must go side by side the implementation of plans so that in the light of observations made, future plans can be made more realistic. \
Q16: Method of plan and projection
1. Bottom up method
The executives on the basis of their real conditions to make plans on the basis of planning the transition higher level, then grant the base on the lower level planners make plans for their grant and then back to higher level
The advantage:
- This method required from planning real, necessarily clear exactly and highly realistic.
- Based on conditions of local real, validation planning, feasibility
- Promoting the creative power of democracy, the group strength to perform.
- Disadvantages:
- Each individual has a different view so that the lower-level managers often do not have the wide coverage so it does not cover high.
- This method of small nature, no long-term
- This method is only seen from one angle should not focus on focus.
- Sometimes seen in the perspective of individuals, not exploit the potential of individuals and their units (comparative advantage)
Top down method
Is the method planned from high managers down to the lower level
Advantages: - Take the group, long-term cover
- Focus on implementation of human resources objectives, facilitate the exploitation of comparative advantage
Disadvantages: - this is far from real methods, unrealistic and vague.
- Difficult to high efficiency by the method of assessment.
- No promote the comparative advantages and creativity.
Usually applied with large scale units, influential and widely active.
Bottom and top down method
High managers planned to give direction to lower level. Lower-level oriented to make adjustments in line with reality.
The advantage: - Make use of both methods and further develop their creativity and democracy.
Disadvantages: - It wastes time, effort and financial resources.
- Loss of opportunities for the other plan if possible.
Q17: functional management structure.
Management structure vertical style: all the work assigned to each unit and relationships as a companion assigned immediate superiors. Under this structure, administration officials subordinate only to implement the directives and orders of administrative officials and their immediate superior who is solely responsible for the results of work done by subordinates
Advantages:
- The powers and responsibilities are clear delineation roc
- Maintain the leadership and guidance focused
- The decision is communicated and implemented quickly.
Disadvantages:
- Each ensure administrators are many different work conditions should not go into specialization.
- Administrators easily embarrassed by the difficulty of the lot.
This structure is rarely used, only suitable for small-scale enterprises, the work is not complicated or narrow range.
18. Functional Structure
In a functional structure, teams or groups are created based on common functions in a bottom-up manner. The result is a set of functional units such as engineering, marketing, finance, human resource etc. that are controlled and coordinated from the top level management. Functional structure are the most common type of structural design and have evolved from the concept of high specialization, high control framework of manufacturing organizations tuned towards high efficiency. Functional management is more technical oriented and less product or business oriented, while they are skilled in taking decisions in their functional areas, they are weak in the areas of product business plans, market study and product release management. If the organization does have multiple product lines, then the functional hierarchy at lowest level does get divided along product lines, thereby creating deeper hierarchies.
Advantages:
1. Maximizes Functional Performance: All the human knowledge, skills & infrastructure required for a particular functional activity are consolidated in a single sub-organization, this facilitates sharing of valuable expertise by superiors with their subordinates. The functional units are managed by leaders who have in-depth knowledge and experience; they are able to control the unit very effectively. Hence it harvests the potential of the unit without duplication of scarce resources, maximizing their utilization.
2. Cultivates Specialists: This type of structure promotes career development of individuals aspiring to be technical specialists of their field in large organizations. If the organization has properly crafted performance management that promotes the visibility of individual skills, functional structure makes it easier to coach other and climb the hierarchical ladder.
Disadvantages:
1. Restrictive Organizational View: Each functional unit has expertise in its own field, but lacks broader awareness about the organizations objectives or even the products. The responsibility of successfully integrating the organization lies with few top level executives, at the same time, the organizational structure limits the capabilities of the functional managers to occupy top management positions. Thus, even though such organizations might be effective initially, being controlled by few founding members, its long term efficiency is doubtful.
2. Slow Response: Functional units cannot respond to fast changes in customer demands or the product since only the top level management has broad knowledge and the decision making authority. The management also performs the role of coordinating tasks across functional units, thus unless a complete plan of action is not formulated by the managements, little progress can be made in individual functional units.
3. Poor Accountability: Due to weak link between product and functional units, it is hard to correlate profits of individual products to the budget and spending of individual units. The units that offer support to other functional units, like human resource or IT department, do not contribute directly to the revenue, yet they are essential components that helps in running the organization smoothly.
Q19/ Mixed management structure in management
Is detailed representations of organization structures and hierarchies. They are typically used to provide both employees and individuals outside the organization with a "snapshot" picture of it's reporting relationships, divisions of work, and levels of management. Obviously, smaller firms—whether they consist of a single owner of a home-based business, a modest shop of a few employees, or a family-owned business with a few dozen workers—are less likely to utilize organization charts, since the information that is gleaned from chart representations is typically pretty self-evident with such businesses. "Small organizations can get along very well without them as long as everyone understands what they are to do and who they are to do it with. But many consultants and small business owners contend that an organization chart can be a useful tool for growing firms.
Business owners endeavoring to allocate responsibilities, activities, and management authority to various employees also have to make certain that they coordinate the activities of those employees to avoid gaps and/or redundancies in operations and management. "It is helpful to think of organizational design elements as building blocks that can be used to create a structure to fulfill a particular purpose.A structure is built by defining the requirements of each individual job and then grouping the individual jobs into units. These units are grouped into larger and larger units and coordinating (or integrating) mechanisms are established for these units. In this way, the structure has been built to support organizational goals and achieve the key factors for success." Ideally, a detailed organizational chart will provide the business owner or manager with an accurate overview of the relationships of these units/responsibilities to one another and a reliable indication as to whether the firm is positioned to meet the business's fundamental goals.
ADVANTAGES Supporters of organization charts claim that they are tools that can effectively delineate work responsibilities and reporting relationships. "Managers of different organizational subunits, " wrote Gibson, Ivancevich, and Donnelly, "do not understand how their work fits into the work of other subunits. In the absence of an organization chart to clarify relationships, illogical and confusing ones will develop. In fact, the very process of charting the organization is a good test of its soundness, because any relationship that cannot be charted is likely to be unsound and therefore confusing to those working in it."
Supporters also argue that org charts can be particularly useful as a navigational tool when small businesses expand their operations. "The argument that organization charts are necessary only when the organization
becomes too big for any one individual to manage does not hold. "In many instances, small firms that do rather well in the early stages of their development begin to fail when the founders can no longer manage in their personal styles. The transition from successful small firm to successful large firm is impaired because the employees are doing jobs that fit their personality and unique skills rather than jobs necessary for organizational performance. Organization charts and supporting documents are necessary from the very beginning of a firm's existence, not just when it gets too big for one person to manage."
DISADVANTAGES The above perspective is not universally accepted by business consultants, researchers, executives, and managers, however. Detractors point out that formal organization charts do not recognize informal lines of communication and influence that are quite vital in many business settings. It excludes such factors asleader behavior, the impact of the environment, informal relations, power distribution, etc. Such a model can only capture a small part of what goes on in an organization."
Critics of organization charts also sometimes charge that the diagrams may paint a misleading picture of the importance and influence of various people within an organization. Charts are, out of necessity, somewhat streamlined representations that only provide so much detail to a user. In some instances, for example, an organization chart may depict two employees as being equal in power and influence, when in reality, one of the individuals is rapidly ascending through the ranks and has the ear of the firm's principal decision makers, while the other may be regarded as steady but unremarkable (or even worse, an individual whose position has deteriorated from a higher level over the previous years).
"Perhaps the most damaging criticism of organization charts is that they encourage individuals to take a very narrow view of their jobs, imply what people will not do as well as clarifying what they will do. The result is an organization that is not responsive to change, that lacks flexibility. The organization chart and all the supporting documentation …become substitutes for action and creative responses. In fact, some managers adamantly oppose the creation of organization charts even when employees complain that they need some direction to understand what they should do. These managers respond by saying that it is better to go ahead and fail than to do nothing."
Example : Researchers, consultants, and executives note that this benefit can be even more pronounced in today's business world, which has seen dramatic changes in operating philosophies and management direction over the past few decades. Indeed, corporations are increasingly implementing innovative organizational redesigns in efforts to increase their productivity. The growth in cross-functional teams and reorganizations, for example, can easily blur reporting and operational relationships between various segments of a business. It is important, then, for businesses that do rely on organizational charts to continually examine and update those diagrams to ensure that they reflect current business realities. In fact, the changes in organizational structures have spurred innovative changes in the format of many organizational charts. Whereas traditional models have been formatted along general "up-down" lines, newer models sometimes utilize flattened or "spoke" frameworks.
Q20/ What manager can do to make employees working more efficient?
Efficiently carrying out your company's payroll requires proper management. As your company grows, the processing of the payroll will become more complex. Here are some useful management tips to make payroll processing more efficient:
Make sure you have a system to monitor your employee's time in and time out of the job
In order to perform payroll processing, the hours worked by each employee is entered into the system. Your salary computations could be erroneous without a step-by-step method of keeping track of working hours of your employees. To avoid this problem, you need to ensure the reliable tracking of hours worked by utilizing electronic time clocks and online time loggers.
*Time clocks. Unlike time clocks of old, many newer time clocks calculate the number of hours between "in" and "out" stamps automatically, making payroll calculations much simpler. These units use manual time cards and are recommended for organizations with fewer than fifty employees.
*Computer-based time loggers. To facilitate time keeping in a large business, your computer can act as a time clock either by the submission of a unique identification number or the swiping of an employee identification card. You can download online time logging software from the internet for free or you can buy them using payroll software.
*Review salaries for changes or adjustments
Before gathering the record of hours worked, make sure you check for changes in employee salaries. Adjust the amounts to include the money needed for salary increases, new hires, deductions or anything that may affect the normal payroll.
Always figure the salary using the correct manual method, or utilize a payroll software system
When calculating an employee's earnings you should understand there is more to it than mere salary. You need to include overtime fees, bonuses, commissions, as well as Federal, Social Security, and Medicare taxes and other amounts to be deducted in the proper order. In order to avoid confusion on your part or on the part of your accountant, ensure you regularly do follow the same method of computation for all your employees, irrespective of whether you are doing it manually or are using payroll software.
*Secure a personal bank account to handle your payroll needs
Getting paid means that you must have your own personal bank account. Besides being lawful, a separate account will make it easier for you to differentiate salary payouts from other business expenses. It makes it simple to track the approval tasks.
*Make use of a uniform delivery system for checks
Though several options are available, the safest and quickest access to your earned money is via direct deposit. The thing to remember is to deliver pay checks in a consistent way so the process is easy to manage with as few slip-ups as possible.
*Payday information should be saved in a file that is easy to find
Save payroll details for every applicable payday for your convenience. This assists in verifying the payroll of your enterprise and guarantees accurate monthly statements. Finally, always keep printed copies of payroll summaries organized for back up.
You can more efficiently and accurately manage your payroll using these tips, regardless whether you use payroll software or do it by hand. The question of whether to manually compute wages or use software is up to you to decide, depending on which is more beneficial for your company.
Q21/ What manager can do so to keep employees working long time in organization
For business leaders in companies of all sizes, the writing's on the wall: You can make and save money by keeping employees engaged. Coupled with The Sarbanes-Oxley Act, requiring businesses to document internal controls relating to employee and customer satisfaction, it's never been more important for business leaders to stop dismissing internal customer care as "soft and unimportant."
Let's face it, employees aren't just humans doing; they're human beings. Today's entrepreneurs must make it a priority to get to know them so they can provide whatever's needed to keep their employees fully engaged in what they do. This creates wins for everyone. With that in mind, here are nine management tips for creating and sustaining employee engagement:
1. Let go of any negative opinions you may have about your employees. Approach each of them as a source of unique knowledge with something valuable to contribute to your company. Remember that you're co-creating the achievement of a vision with them.
2. Make sure your employees have everything they need to do their jobs. Remember when you started a new school year and you'd prepare by getting all new school supplies? Why not build just such an opportunity into your department by simply asking each staff member, "Do you have everything you need to be as competent as you can be?" Remember, just as marketplace and customer needs can change daily, so can your employees' needs.
3. Clearly communicate what's expected of employees, what the company values and vision are, and how the company defines success. Employees can't perform well or be productive if they don't clearly know what it is they're there to do and the part they play in the overall success of the company. Be sure to communicate your expectations--and to do it often.
4. Get to know your employees, especially their goals, their stressors, what excites them and how they each define success. I'm not suggesting you pry too deeply or start counseling your staff. What I'm suggesting is that you show an interest in their well being and that, when appropriate, you do what it takes to enable them to feel more fulfilled and better balanced.
5. Make sure they're trained--and retrained--in problem solving and conflict resolution skills. These critical skills will help them interact better with you, their co-workers, customers and suppliers. It's common sense--better communication reduces stress and increases positive outcomes.
6. Constantly ask how you're doing in your employees' eyes. I know it can be difficult for managers to request employee feedback, and it can be equally if not more challenging for an employee to give the person who evaluates them an honest response. To develop this skill and model it for your employees, begin dialogs with employees using such conversation starters as, "It's one of my goals to constantly improve myself as a manager. What would you like to see me do differently? What could I be doing to make your job easier?" Be sure to accept feedback graciously and express appreciation.
7. Pay attention to company stories and rituals. Are people laughing ateach other or with each other? Do they repeat stories of success or moments of shame? Stay away from participating in discussions that are destructive to people or the organization, and keep success stories alive.
8. Reward and recognize employees in ways that are meaningful to them. This is another reason why getting to know your employees is so important. Remember to celebrate both accomplishments and efforts to give employees working on long-term goals a boost.
9. Be consistent for the long haul. If you start an engagement initiative and then drop it, your efforts will backfire, creating employee estrangement. People are exhausted and exasperated from program du jour initiatives that engage their passion and then fizzle out when a business owner gets bored with it. There's a connection between an employee's commitment to an initiative and an owner's commitment to supporting it. An owner's ongoing commitment to keeping people engaged, involved in and excited about the work they do and the challenges they face must be a daily priority.Ultimately, you must keep in mind that employees are a company's greatest assets. Their collective ideas, feedback and enthusiasm for what they do can help your business grow and succeed. Some people are naturally wired to give their all and do their best no matter where they work. But the majority of people require the guidance of skilled managers who welcome their ideas, ask for feedback and generate enthusiasm in order to have a sense of purpose and energy about what they do.
Q22/ Analyze administrative management method; give an example to illustrate this method. What are advantages and disadvantages of this method?
Administrative management method is the impact of management subjects to objects based on management tools using administrative organization to maintain discipline to achieve optimal results. Administrative methods contained unequal relationship between the parties to the relationship, but still managed equality before the law.
The contents of the administrative methods of economic management are two issues: -Organization impact by chemical specifications, standardization organizations and standardized criteria. Specification of the organization is to effect the assignment and decentralization on the basis of clear rights and responsibilities, the purpose is to generate above-below relations, relations executive and executive, power and obedience . Standardizing the organization is standardized and titles of personnel system to create the quality of the above-below relations, execution and administration as well as enhance the effectiveness of power and obedience. Standardized criteria are given the econo-technical as to follow orders. – Controlling impact by offering the resolutions, directives, circulars and decisions to regulate and coordinate the activities of economic sectors and levels, the economic unit basis. The purpose of the method of administration is economic security and maintaining order in the economic activities as well as the business environment for all economic sectors. While ensuring centralized management of the State and the autonomy of the economic activities of local institutions and economy.
Compared with other methods, the methods of administrative action quickly and promptly, so that will soon reach the goal of economic management
Q23/ Analyze economic management method; give an example to illustrate this method. What are advantages and disadvantages of this method?
Characteristicsof theeconomic method: The impactofmanagement subjectsonthe subjects of managementbased onuseof materialresourcesandeconomic benefitto createmotivation, potentialsandtheir abilities, to achieveperformanceoptimalresults.
Economical methodhas twobasiceffects:-First: The impactbycreatingawareness about thebenefitsthroughplans, strategies anddevelopment policiesofeconomicmanagement subjects. For example, to achieveindustrializationof rural agricultureisplanningto buildinfrastructure, bringing industryto rural areas, consumptionpolicy, tax policy, pricepolicyof the State...must beattractive enough. Therebyattractinginvestorsand foreigncapitaland technologybroughtto rural areas, aimed atservingrural areas. -Second: The impactbythewayofstandardizingthe normsasnorms ofsecurities, econo-technical norms forsalaries, thetax ratesand levels ofrevenueand profits.Thesenormsdirectlyaffectthe interestsof investorssetthemselves, theemployees ortenants, contract ...to createstimulatingmaterial benefitsastheimpetusfor limitedorthroughthe process ofeconomicdecisionsarechoicesaboutinvestmentandemployment. For example, withaspecifiedtarifflevelandareasonabletax ratewill have the effectofimportrestrictionsand encourageforeigninvestorsthe optionof foreigndirect investmentrather thanexportplan.
Advantages: Promote theinitiativeand creativity ofemployeesinorganization. Improvethe sense of dutyandissolely responsible fortheir subordinates. Mitigatethe number of peoplein theadministrativeapparatusshouldsaveadministrative costs. Combinemutual interestandinterests of their ownaudienceadministrator.
Disadvantages: The impactofthe subjectobjecttoan administratoris notimmediatebecausethe administratormust undergo aselection process. Work resultsdependonthe choice ofobjectshould bean administratorhas limitedaccuracy. All leading toa localstate ofthe localpeopleonlyworry abouttheirpersonal benefit, the benefit ofhis smallunitin the organization, to disruptunity.
Q24/ Analyze educational and psychological management method; give an example to illustrate this method. What are advantages and disadvantages of this method?
Characteristics of psychological education method : Characteristics of this approach is convincing and mental stimulation. The do-to persuade the employees to distinguish right from wrong, right or wrong, dangerous, beautiful, ugly, good and evil. The mentally-stimulating create confidence in the justice, creating expectations of life improvement as a rule of beauty in art. Action of man is motivated not only by administrative orders and the factors that stimulate the pure material, which during operation to ensure the material interests of their people can not opposition society. That is, a community of people only when they promote mental stimulation. management subjectsfactorswithimpactemotionally,psychologicallyforemployeesand providing opportunitiesfor staffhas been exposed, butto exchangetheir thoughts and aspirations, creatingconditionsforthem tocommunicatewitheach other, help themunderstandandsharewitheach otherinworkandlife. This methodis madethroughforms ofexchange, cultural activities, sports, picnic...This methodis usedinmanyapopular wayfor anyorganizationmustselectthe objects andcircumstancesappropriate.
Advantages: Create aworking environmentsuitableforthe object, therebymotivatethem to workenthusiastic, active, responsible. Promote theproductionprocessto be effective.Capture theneeds of ouraudiences, establishappropriatesolutions. Construction loyalty work force.
Disadvantages: Additionalcostsincurredforactivitiesoutside ofmanufacturing. Wasteoftimeandeffort. Powersand responsibilities ofthe object ofhighvaluenotdefined
Q25/ What do you understand about goal? How organization define its goals? And why goal is very important for organization?
-A goal or objective is a desired result a person or a system envisions, plans and commits to achieve a personal or organizational desired end-point in some sort of assumed development. Many people endeavor to reach goals within a finite time by setting deadlines. It is roughly similar to purpose or aim, the anticipated result which guides reaction, or an end, which is an object, either a physical object or an abstract object, that has intrinsic value.
-In an organization, planning began in determining future goals and they should satisfy the expectations of many interest groups, many different stakeholders. As defined goals need to pay attention to the following aspects: the priority order of the goal (to know managers rearrange their order of priority goals for rational allocation of resources); Determine time frames for goals ( be determined from short term, medium term or long term goal. A long-term goals are often detailed with short-term goals); The goal must be measured (section goals should be understandable to those who will perform general, a goal can be measured will improve results and easily checks). Have common objectives and goals, targets have been established to suit the capacity of the organization.
-Noorganizationcanmaintainoperationif theleadersdo notsetgoalsto reach. An organizational goal-management solution ensures that individual employee goals and objectives align with the vision and strategic goals of the entire organization. Goal-management provides organizations with a mechanism to effectively communicate corporate goals and strategic objectives to each person across the entire organization. The key consists of having it all emanate from a pivotal sourceand providing each person with a clear, consistent organizational-goal message. With goal-management, every employee understands how their efforts contribute to an enterprise's success.
Q26/ . Some people argue that “In market economy firm just produce what customers want and therefore planning is unnecessary”. Please explain your idea about this?
I don’t think so because Planningisone offouressential functionsofan administrator, andis consideredapriorityorfunctionis the foundationofgovernance.
Marketeconomywithchangesconstantlytaking placecontinuouslystrong, aggressive competitive environmentandfastdevelopmentof technologythat makebusinessmanagementbecomesdifficult,complex, enterprisesarefacedwiththe risksin the market. Thereforerequirebusinessesmust make plans, strategiesforthe goalsin the future. To business success, you need to know what are the objectives and how to achieve that goal. Business plan forces you to set goals, determine the resources you need to implement the plan, and foresee problems that may be encountered.
The main reason many startups fail due to lack of business plan methodically. To achieve high efficiency, enterprises need to identify the right business, target customers and market strategy.
When construction is basically a business plan, you will be more prepared and will know whether your business idea is feasible or not. You may think planning is not necessary but if you are realistic and wish to be successful and efficient you will find that a good Business Plan will be of the utmost benefit to you. If you need to raise finance it will be essential for you to have a good clear, practical and well presented Business Plan.
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