Question 1

Balanced Scorecard is used to:

Accepted Answer

BSC translates vision/strategy into objectives and measures across perspectives.

Question 2

According to Katz, which skill is most important at top level?

Accepted Answer

Conceptual skill—seeing the organisation as a whole and understanding interrelationships—is critical at top level.

Question 3

Which of the following roles belongs to Mintzberg's decisional roles?

Accepted Answer

Negotiator is a decisional role; spokesperson and monitor are informational roles; figurehead is an interpersonal role.

Question 4

Greenwashing means:

Accepted Answer

Greenwashing is portraying a false image of environmental responsibility.

Question 5

A procedure is:

Accepted Answer

A procedure lays down a step-by-step method for routine activities.

Question 6

SWOT analysis helps in identifying:

Accepted Answer

SWOT includes internal (S,W) and external (O,T) factors.

Question 7

Which of the following is NOT an element of directing?

Accepted Answer

Budgeting is part of planning/control; directing includes leadership, motivation, communication and supervision.

Question 8

Informal organisation arises due to:

Accepted Answer

Informal organisation develops naturally based on friendship and social interactions at workplace.

Question 9

Excessive rules and procedures leading to delay is called:

Accepted Answer

A common criticism of bureaucracy is red tapism—too many rules causing delays.

Question 10

Strengths and weaknesses in SWOT are:

Accepted Answer

Strengths/weaknesses arise from internal resources and capabilities.

Question 11

A semantic barrier to communication arises due to:

Accepted Answer

Semantic barriers occur due to language problems, ambiguity, jargon and different interpretations.

Question 12

The first step in control process is:

Accepted Answer

Control begins by setting standards for performance.

Question 13

Which of the following is NOT a limitation of planning?

Accepted Answer

Planning does not guarantee success; execution and environment matter.

Question 14

The halo effect in appraisal refers to:

Accepted Answer

Halo effect is a bias where one trait influences the entire appraisal rating.

Question 15

Differential piece rate system is associated with:

Accepted Answer

Taylor suggested differential piece rates to reward standard and above-standard performance.

Question 16

Fayol's functions of management include:

Accepted Answer

Fayol described managerial functions such as planning, organising, commanding, coordinating and controlling.

Question 17

Planning provides the basis for:

Accepted Answer

Standards and targets set in planning are used in controlling to compare actual performance.

Question 18

Theory Y assumes that employees:

Accepted Answer

Theory Y assumes people can be self-motivated, accept responsibility and exercise self-control.

Question 19

A good control system should be:

Accepted Answer

Effective control requires timely feedback and economy; it should also be acceptable and flexible.

Question 20

Training aims at improving:

Accepted Answer

Training improves skills and knowledge for the present job; development is more future oriented.

Question 21

Who is known as the father of scientific management?

Accepted Answer

F.W. Taylor is known as the father of Scientific Management.

Question 22

What is supervision?

Accepted Answer

Supervision is the process of directing and monitoring the work of subordinates at the operating level to ensure correct performance.

Question 23

State any one feature of MBO.

Accepted Answer

A key feature of MBO is participative goal setting, where objectives are decided jointly by manager and subordinate.

Question 24

What do you mean by values in management?

Accepted Answer

Values in management are fundamental beliefs and standards (like honesty, fairness and responsibility) that guide managerial decisions and organisational culture.

Question 25

What is a KPI?

Accepted Answer

A Key Performance Indicator (KPI) is a measurable indicator used to evaluate progress and performance in achieving objectives.

Question 26

Define Management by Objectives (MBO).

Accepted Answer

Management by Objectives (MBO) is a system in which superiors and subordinates jointly set objectives and performance is evaluated on the basis of achievement of those objectives.

Question 27

What is meant by a standard in control?

Accepted Answer

A standard is a predetermined target or benchmark of performance (quality, quantity, time or cost) against which actual performance is compared.

Question 28

State any one element of directing.

Accepted Answer

Communication is an element of directing through which information and instructions are transmitted to create understanding and coordination.

Question 29

Define coordination.

Accepted Answer

Coordination is the process of integrating the activities and efforts of individuals and departments to achieve common organisational objectives.

Question 30

Name the author of bureaucratic theory.

Accepted Answer

Max Weber propounded the Bureaucratic Theory.

Question 31

Explain the limitations of planning.

Accepted Answer

Planning may be less effective in a **rapidly changing environment** where assumptions become inaccurate. It is often **costly and time-consuming** because it requires data, analysis and experts. Over-detailed planning may create **rigidity** and reduce flexibility in action. Plans may face **resistance to change** from employees, and lack of accurate information or external constraints can lead to faulty plans.

Question 32

Explain the need/importance of strategic management.

Accepted Answer

Strategic management is important because it provides clear long-term direction and helps the organisation respond to environmental changes and competition. It supports better resource allocation and coordination of functional decisions, improves decision-making under uncertainty and helps build sustainable competitive advantage. It also strengthens organisational survival, growth and performance through continuous evaluation and improvement.

Question 33

Explain Maslow's need hierarchy theory.

Accepted Answer

Maslow proposed that human needs are arranged in a hierarchy: **physiological** needs, **safety** needs, **social** needs, **esteem** needs and **self-actualisation** needs. Lower-level needs must be reasonably satisfied before higher-level needs become strong motivators. Once a need is satisfied, it stops motivating and the next higher need becomes important.

Question 34

Differentiate between Taylor's and Fayol's approach to management.

Accepted Answer

Taylor's approach (scientific management) focuses mainly on **shop-floor efficiency** and work methods at the operating level, using techniques like time study, standardisation and incentives. Fayol's approach (administrative theory) focuses on **overall administration** and provides general functions and principles applicable to managers at higher levels. Thus, Taylor is bottom-up and task-oriented, while Fayol is top-down and organisation-oriented.

Question 35

Explain Balanced Scorecard and its perspectives.

Accepted Answer

Balanced Scorecard is a performance management framework that translates strategy into measurable objectives. It uses four perspectives: **Financial** (profitability, ROI), **Customer** (satisfaction, retention), **Internal Process** (efficiency, quality, cycle time) and **Learning & Growth** (skills, training, systems, culture). By balancing these measures, it links day-to-day actions with strategic outcomes.

Question 36

Explain the functions of management. Describe the steps involved in planning and controlling.

Accepted Answer

The main functions of management are **Planning, Organising, Staffing, Directing and Controlling**. Planning decides objectives and actions; organising arranges resources and assigns duties; staffing provides suitable people; directing guides and motivates employees; controlling ensures work is done as per plan.

**Steps in planning:** (i) setting objectives, (ii) developing planning premises/assumptions, (iii) identifying alternative courses of action, (iv) evaluating alternatives, (v) selecting the best alternative, (vi) implementing the plan, and (vii) follow-up and review.

**Steps in controlling:** (i) setting performance standards, (ii) measuring actual performance, (iii) comparing actual performance with standards, (iv) analysing deviations and identifying reasons, and (v) taking corrective action and revision of plans if required.

Planning and controlling are closely linked because planning provides standards, while controlling checks achievement and keeps the organisation on the right track.

Question 37

Explain SWOT analysis and show how strategies can be formulated using SWOT matrix. State merits and limitations.

Accepted Answer

SWOT analysis is a tool used to identify an organisation’s **Strengths** and **Weaknesses** (internal factors) and **Opportunities** and **Threats** (external factors). It helps management understand the current position of the organisation and prepare strategies that match internal capabilities with external environment.

**Formulating strategies using SWOT matrix:** In the SWOT matrix, four combinations guide strategy choice. **SO strategies** use strengths to exploit opportunities (growth strategies). **ST strategies** use strengths to face or reduce external threats (protective/competitive strategies). **WO strategies** reduce weaknesses by using opportunities (improvement and expansion). **WT strategies** minimise weaknesses and avoid threats (defensive strategies to reduce risk and ensure survival).

**Merits:** SWOT is simple and systematic, improves understanding of internal and external factors and supports planning by highlighting key areas needing attention. It helps in generating strategic alternatives and aligning resources with opportunities.

**Limitations:** SWOT may be subjective and depends on judgement and data quality. It can oversimplify complex issues and may not prioritise factors. SWOT does not automatically provide the best strategy; further evaluation of feasibility, risk and resources is required to select the most suitable strategy.

Question 38

Explain scientific management. Discuss Taylor's contributions and limitations.

Accepted Answer

**Scientific management** is the application of scientific methods to analyse work and determine the most efficient way of performing a job, with the aim of increasing productivity and reducing wastage. F.W. Taylor developed this approach to remove rule-of-thumb methods and bring systematic planning and control in production.

**Contributions of Taylor:** He introduced techniques such as **time study** (fixing standard time), **motion study** (removing wasteful movements), **standardisation** of tools and methods, **functional foremanship** (specialised supervision) and **differential piece rate system** (incentive wages). He also emphasised scientific selection and training of workers and cooperation between management and labour. These ideas helped in improving efficiency and output in many industries.

**Limitations:** Scientific management often overemphasises mechanical efficiency and treats workers as economic beings, giving less importance to social and psychological needs. Strict standardisation may create monotony and resistance. Functional foremanship may cause confusion due to multiple bosses. Therefore, while Taylor improved productivity, modern organisations combine his ideas with human relations and behavioural approaches.

Question 39

Explain Fayol's 14 principles of management (any ten) and state their importance.

Accepted Answer

Fayol's principles guide managers in organising and administering work effectively. Important principles include: **(1) Division of work** (specialisation improves efficiency), **(2) Authority and responsibility** (balanced rights and duties), **(3) Discipline** (rules and obedience), **(4) Unity of command** (one boss), **(5) Unity of direction** (one plan for one objective), **(6) Subordination of individual interest** (organisation first), **(7) Remuneration** (fair wages), **(8) Centralisation/Decentralisation** (proper balance), **(9) Scalar chain** (clear line of authority), **(10) Order** (right person and material at right place), **(11) Equity** (fairness), **(12) Stability of tenure** (reduce turnover), **(13) Initiative** (encourage ideas) and **(14) Esprit de corps** (team spirit).

**Importance:** These principles provide a practical framework for designing structure, maintaining discipline, ensuring coordination and improving morale. They help managers create clarity in authority, encourage teamwork, reduce conflicts and achieve organisational objectives efficiently.

Question 40

Explain delegation of authority. Discuss its elements and barriers to effective delegation.

Accepted Answer

Delegation of authority is the process by which a superior assigns work to a subordinate and grants the necessary authority to perform it, while the superior remains ultimately accountable for results. Delegation is essential for smooth functioning and growth because one manager cannot perform all tasks alone.

**Elements of delegation:** (1) **Assignment of responsibility**—the subordinate is given a definite task and expected results. (2) **Granting of authority**—the subordinate is given the power to take decisions and use resources needed to perform the task. (3) **Creating accountability**—the subordinate is answerable for performance, but final accountability remains with the superior who delegated.

**Barriers to effective delegation:** From the manager's side, barriers include fear of losing importance/control, lack of confidence in subordinates, fear of mistakes and the attitude “I can do it better myself.” From the subordinate's side, barriers include lack of confidence, fear of failure or criticism and unwillingness to accept additional responsibility. Organisational barriers include unclear policies, over-centralisation, poor communication and weak control and reporting systems. Removing these barriers through clarity, training, trust and proper feedback makes delegation effective.

Principles of Management — Question Paper

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