TS Inter 2nd Year Commerce Study Material Chapter 10 Functions of Management

Telangana TSBIE TS Inter 2nd Year Commerce Study Material 10th Lesson Functions of Management Textbook Questions and Answers.

TS Inter 2nd Year Commerce Study Material 10th Lesson Functions of Management

Long Answer Type Questions

Question 1.
What are the main points in the definition of planning?
Answer:
Planning is deciding in advance what to do and how to do. It is one of the basic managerial functions. Before doing something, the manager must formulate an idea of how to work on a particular task. Thus planning is closely connected with creativity and innovation. But the manager would first have to set objectives, only then will a manager know where he has to go. Planning seeks to bridge the gap between where we are and where we want to go. It requires taking decision since it involves making a choice from alternative course of action.

Planning involves setting objectives and developing appropriate courses of action to achieve these objectives. Objectives provide direction for all managerial decisions and actions. All members need to work towards achieving organizational goal. These goals set the targets which need to be achieved. This plan should be forecasting the future course of events. There are many steps in planning.
a) Determination of objectives for whole organization.
b) Laying down policies to be followed.
c) Laying down the standards of performance.
d) Preparation of budgets for whole organization.

Question 2.
Do you think planning can work in a changing environment?
Answer:
Planning can work in changing environment explained below.
1) Focus on objectives :
Planning determines the objectives of the enterprise and also various departments, for devises the ways for achieving the objectives, good plan is required. Planning compels the managers to consider the future and make them to recognize the need for revising and extending plans in the light of dynamic business environment,

2) Economical operation :
The working of the enterprise will be systematic a*.., purposeful. Under planning, there will be jointly directed effort instead of uncoordinated decisions are made on the .basis of facts. The resources are utilized in the best possible way.

3) Reduces uncertainty and change :
An enterprise works in a dynamic world. The future is uncertain. Changes take place in business environment, economic policies and supply of resources. There may be changes in technology. Planning can work in changing environment.

4) Facilitates control :
Planning helps the managers to exercise proper and effective control over the subordinates. In planned organization, the work to be done is determined in advance. This enables the management to check on the performance of subordinates.

Question 3.
If planning involves looking ahead, why does it not ensure success?
Answer:
Planning involves looking ahead why does it not ensure success are.
1) Uncertain future :
Planning is made on the basis of estimate of the conditions in future. Forecasting is done on the basis of information and facts collected. Even if the collected information is reliable. The future is uncertain and cannot be predicted accurately.

2) Rigid :
In planning, policies, procedures and programmes are determined in advance. They have to be followed by the employees. This restricts personal freedom. Individual initiative is suppressed. Thus, planning leads to inflexibilities and rigidities.

3) Expensive :
Planning requires more time and money for preparation. It involves heavy expenditure. Large organizations must consider the benefits of planning in relation to the expenditure. Small organizations cannot afford planning as it is time consuming and costly process.

4) Investment :
Changes in the environment requires over locking aspect of capital already invested in the business in the form of equipment. Managers develop a strong feeling so that committed managers to recovery of captial sunk as a result of some earlier decision that future planning is constrained and limited to its recovery, and very often capital so invested itself becomes a planning premise.

5) External factors :
These are external factors of planning which has no control at all by the internal agencies. Personnel policies and decisions may be limited aspects of labour union pressure specifically when union is conducting its activities at national level. The rules framed by governments, its rules, directives, and legal provisions also results in setting for planning.

Question 4.
What are the types of planning?
Answer:
1) Strategic planning :
Strategic planning means the process of formulating an integrated plan related to strategic benefits of the enterprises to meet the challenges of the business environment. It consists of identifying the strategy, the objectives to be achieved in future.

Strategic planning is a periodic in nature. It facilitates to coordination between departments in the organization.

2) Operational planning :
It is a short term practice designed to implement the strategy made under strategic planning. To carry on this plan the firm should prepare short term plan regarding the policy to make in the organization.

Question 5.
Dose organizing and explain the steps in organising?
Answer:

1. Organising in the process of defining and grouping activities and establihing authority and relationships among them.
2. Organising essentially implies a process which co-ordinates human efforts, assembles resources and integrates both into a unified whole to be utilized for achieving specified objectives.

Prof. Urwick defines “organization as determining what activities are necessary to any purpose and arranging them in groups which may be assigned to individuals”.

The process of organization consists of the following steps :
a) Identification and division of work.
b) Departmentalization.
c) Assigning the responsibilities. .
d) Establishing reporting relationships.

A process of organising are following steps.

1) Identification and division of work :
The first step in the process of organising involves identifying and dividing the work that has to be done in accordance with previously determined plans. The burden work can be shared among the employees.

2) Departmentalization :
Once work has been divided into small and manageable activities then those activities which are similar in nature are grouped together. Such sets facilitate specialization. This grouping process is called departmentalization.

3) Assignment of duties :
It is necessary to define the work of different job positions and accordingly allocate work to various employees. Jobs are then allocated to the members of each department in accordance to their skill and competencies.

4) Establishing reporting relationships :
Merely allocating work is not enough. Each individual should also know who has to take orders from and to whom he is accountable. The establishment of such clear relationships helps to create a hierarchical structure and helps in coordination among various departments.

Question 6.
Explain the meaning of controlling and explain its importance?
Answer:
Meaning of Controlling :

1. Control means seeing that everythig is taking place with the established rules and expressed commands.
2. Controlling is the process of ensuring that actual activities conform to planned activities.
3. Controlling also helps in judging accuracy of standards, ensuring efficient utilization of resources, boosting employeee morale, creating an atmosphere of order and discipline in the organization and coordinating different activites so that they all work together in one direction to meet targets.

Importance of controlling :
Control is an indispensable function of management Without control the best of plans can be misleading. A control system helps an organization in the following ways.

1. Accomplishing organizatinal goals :
The controlling function measures progress towards the organizational goal and bring to light the deviations indicating corrective action. It guides the organization on the right track so that organizational goals may be achieved.

2. Judging accuracy of standards :
A good control system enables management to verify whether the standards set are accurate and objective. An efficient control system keeps a careful check on the changes taking place in the organization to review the standards.

3. Making efficient use of resources :
By use of control a manager reduces wastages and spoilage of resouces. Each activity is performed in accordance with predetermined standdards and norms. These ensure that resources are used in the most effective and efficient manner.

4. Improving employee motivation :
A good control system ensures that employees know well in advance what they are expected to do and what are their standards of performances based on which they are appraised.

5. Ensuring order and discipline :
Controlling creates an atmosphere of order and discipline in the organization. It helps to minimize dishonest behavior on the part of the employees by keeping a close check on heir activities.

Question 7.
What is POSDCORB? What are its uses and limitations?
Answer:

1. As per “Luther Gullick” the functions of management are “POSDCORB”.
2. “POSDCORB” means planning, organising, staffing, Directing, co-ordinating, reporting and budgeting.
3. ‘POSDCORB’ represents the initial words of management functions.

Uses and Application of POSDCORB :

1. POSDCORB is used as a good starting point to analyze management functions and activities in a structural way to achieve organizational goal.
2. If benefits the organizations in structuring and analysing the management activities.

Limitations :

1. Mark Mopre believed that POSDCORB is too inward looking. In his view, the single most important job of a manager is understanding and shapint the environment of the organization, by means of the services it delivers to its customers and clients.
2. According to Dr. Lewis Meriam, the most important thing has been omitted in the fascinating world POSDCORB is knowledge of a subject matter. Because managers have to plan something, managers have to organize something, and managers have to direct something, Compare the training facility within the industry but do not pay any attention to what managers should achieve.

Question 8.
Explain the importance of organising in an enterprise?
Answer:
Importance of Organising :
In order for any business enterprise to perform tasks and successfully meet goals, the organising function must be properly performed. The following points highlight the crucial role that roganising plays in any business enterprise.

1) Benefits of specialization :
Organising leads to a systematic allocation of jobs amongst the work force, this reduces the workload as well as enhances productivity because of the specific workers performing a specific job on a reguiar basis. Repetitive performance of a particular task allows a worker to gain experience in that area and leads to specialization.

2) Clarity in Working Relationships :
The establishment of working relationships clarifies lines of communication and specifies who is to report to whom. It helps in fixation of responsibility and specification of the extent of authority to be exercised.

3) Optimum Utilization of Resources :
Organising leads to the proper usage of all maerial, financial and human resources. The proper assignment of jobs avoids overlapping of work and also makes possible the best use of resources. Avoidance of duplication of work helps in preventing confusion and minimizing the wastage of resources and efforts.

4) Adaptation to Change :
The process of organising allows a business enterprise to account moderate changes in the business environment. It provides much needed stability to the enterprise as it can then continue to survive and grow inspite of changes.

5) Effective Administration :
Organising provides a clear description of jobs and related duties. This helps to avoid confusion and duplication. Clarity in working relationships enables proper execution of work. Management of an enterprise thereby becomes easy and this brings effectiveness in administration.

6) Development of Personnel :
Organising stimulates creativity amongst the managers. Effective delegation allows the managers to reduce their workload by assigning routine jobs to their subordinates. It gives them the time to explore areas for growth and the opportunity to innovate thereby stengthening the company’s competitive position.

Short Answer Type Questions

Question 1.
What are the main features to be considered by the management while planning?
Answer:
1) Planning is an intellectual process :
In thinking of the objectives the manager goes through the intellectual process. The quality of planning will vary according to the quality of the mind of the manager.

2) Planning is goal oriented :
All planning is linked up with certain goals and objectives.

3) Planning is a primary function of management :
Planning has been described as the most basic of all managerial functions. Manager decides upon the policies, procedures, programms and projects.

4) Planning is directed towards efficiency :
The concept efficiency is implicit in planning. In planning, the manager evaluates the alternatives on the basis of efficiency.

Question 2.
What are the steps taken by management in the planning process?
Answer:
1) Awareness of business opportunity :
There will be many business opportunities. The management must be made aware of an opportunity.

2) Determination of objectives :
Objectives clearly state the results to be achieved by the management. They indicate what is to be done and on which greater emphasis should be placed.

3) Determining planning premises :
The management must makes assumptions about the future behaviour of various factors and forces which influence business.

4) Determining alternative course of action :
After evaluating the various alternatives the most suitable course of action is selected as the plan.

5) Formulating the derivative plans :
Once proper course of action is selected it is necessary to prepare derivative plans to support the basic plan.

Question 3.
Define staffing process and the various steps involved in it.
Answer:
Staffing is putting people to jobs. It begins with work force planning and includes different other functions like recruitment, selection, training, development, promotion, compensation and performance appraisal of work force.

Various steps involved in staffing following are :
1) Estimating the man power requirement :
Each job position requires the appointment of a person with a specific set of educational qualifications, skills, experience and so on. Thus understanding manpower requirement is not only a matter of knowing how many persons we need but also of what type.

2) Recruitment :
Recruitment is the process of searching for prospective employee and stimulating to apply for jobs in the organization.

3) Selection :
Selection is the process choosing from among the prospective job candidates developed at the stage of recruitment.

4) Placement and Orientation :
After submitting the joining report by the employee at work place, the employee is given brief presentation about the company.

5) Training and Development :
Organizations either have in – house training centers or have alliances with training institutes to ensure continuing learning. If the employee motivation is high, their competencies are strengthened.

Question 4.
Explain the procedure for selection of employees.
Answer:
Selection is the process of choosing from among the prospective job candidates developed at the stage of recruitment. Selection serves two important purposes. Firstly, it ensures that the organization gets the best among the available and secondly, it enhances the self esteem and prestage of those selected and conveys them seriousness with which the things are done in the organization.

Those who are able to successfully negotiate the test and interviews are offered an employment, a written document containing the offer of employment, the terms and conditions and date of joining.

Question 5.
Explain the principles of directing.
Answer:
The principles are explained below.
i) Maximum individual contribution :
This principle emphasizes that directing techniques must help every individual in the organization to contribute to his maximum potential for achievement of organizational objectives.

ii) Harmony of objectives :
Good directing provides harmony by convincing that employee rewards and work efficiency are complimentary to each other.

iii) Appropriateness of direction technique :
According to this people, appropriate motivational and leadership technique should be used while directing the people based on the needs of subordinates capabilities, attitudes and other situational variables.

iv) Unity of command :
This principle insists that a person in the organization should receive instructions from one superior only.

v) Managerial communication :
Effective managerial communication across all the levels in the organization makes direction effective. Directing should convey clear instructions to create total understanding subordinates.

vi) Use of informal organization :
A manager should realize that informal groups or organization exist within every formal organization.

vii) Leadership :
Managers should exercise good leadership as it influence the subordinates positively while directing the subordinates without causing dissatisfaction among them.

Question 6.
“Plainning is looking ahead and controlling is looking back” comment.
Answer:
Planning is deciding in advance what to do and how to do planning involves setting objectives and developing appropriate course of action to achieve these objectives.

Control means seeing that everything is taking place with the established rules and expressed commands. Controlling is the process of ensuring that actual activities conform to planned activities.

Planning provides rules and standards where controlling compared the actual work with the standards laid in the planning.

Thus, we can says that, “planning is looking ahead and controlling is looking back”.

Very Short Answer Type Questions

Question 1.
Features of Planning.
Answer:
The following are the features of planning :

1. Planning is an intellectual process.
2. Planning is goal oriented.
3. Planning is a primary function of management.
4. Planning is directed towards efficiency.

Question 2.
Process of organising.
Answer:
The following are the process of organising :

1. Identification and division of work.
2. Departmentalization.
3. Assignment duties.
4. Establishing reporting relationships.

Question 3.
Organization Structure.
Answer:
It is the process which co-ordinates human efforts, assembles resourses and integrates both into a unified whole to be utilized for achieving specified objectives.

Question 4.
Staffing.
Answer:
It is the process of management which is concerned with obtaining, utilizing and maintaining a satisfactory and satisfied work.

Question 5.
Need for staffing.
Answer:

1. Helps in discovering and obtaining for various jobs.
2. Puttings right person on the right job.
3. Optimum utilization of human resources.
4. Improve job satisfaction.

Question 6.
Importance of Directing.
Answer:

1. The importance of directing can be understood by the fact that every action in the organization is initiated through directing only.
2. Directing guides employees to fully realize their potential,
3. Directing guides towards achieving of common objectives.

Question 7.
Meaning of control.
Answer:

1. Controlling in the process of entering that actual activities conform to planned activities.
2. To control means seeing that everything is taking place in conformity with the established rules and expressed commands.

Question 8.
Relationship between planning and control.
Answer:

1. Planning is deciding in advance what to do and how to do planning involves setting objectives and developing an appropriate cause of action.
2. Controlling is the process of ensuring that actual activities conform the planned activities.
3. planning provides rules and standards where controlling compared the actual work the standards laid in planning, thus, “planning is looking a head and controlling is looking back”.

Question 9.
POSTCORB.
Answer:

1. As per “Luther gullick” the functions of management are “POSDCORB”.
2. “POSDCORB” means planning, organising, staffing, Directing, co-ordinating, reporting.and budgeting.
3. ‘POSDCORB’represents the initial words of management functions.