Internal Test 1.1 1. Explain different skills and their importance at different levels of management.

A skill is an individual ability to translate knowledge into action. In order to be able to successfully discharge his roles a manager should process three major skills. These are: 1) Conceptual Skill. 2) Human Relation Skill. 3) Technical Skill. Conceptual skill deals with ideas, technical skill with things and human skill with people. While both conceptual and technical skill are needed for good decision making. Human skill is necessary for a good leader. Top Management Middle Management Supervisory Level

Conceptual Skills Human Relational Skills Technical Skills

2. Distinguish between management & administration. ADMINISTRATION It is the process of determining the objective to be achieved. It lays down the policies and principles. It prepares the framework under which one has to work. It provides direction, guidance and leadership and brings in resources. It comes first and provides guidelines to the management and organization. MANAGEMENT It is the process of planning the work as per the objectives laid down by the administration. It executes the policies and programs. It supervises and controls the execution of assigned work. It co-ordinates all the resources and activities. IT is the second and it derives strength and freedom from administration to plan and execute the work. .

3. Explain hierarchy of plans

The following figure explains the inter relationships among the various levels of goals and plans in an organization.

Organizational Goals

Strategic Goals

Strategic Plan

Tactical Goals

Tactical Plan

Operational Goals

Operational Plan

4. What are : i) MBO ii)MBE explain. MBO : Superior-subordinate participation: MBO requires the superior and the subordinate to recognize that the development of objectives is a joint project/activity. They must be jointly agree and write out their duties and areas of responsibility in their respective jobs. Joint goal-setting: MBO emphasizes joint goal-setting that are tangible, verifiable and measurable. The subordinate in consultation with his superior sets his own short-term goals. However, it is examined both by the superior and the subordinate that goals are realistic and attainable. In brief, the goals are to be decided jointly through the participation of all. Joint decision on methodology: MBO focuses special attention on what must be accomplished (goals) rather than how it is to be accomplished (methods). The superior and the subordinate mutually devise methodology to be followed in the attainment of objectives. They also mutually set standards and establish norms for evaluating performance. Makes way to attain maximum result: MBO is a systematic and rational technique that allows management to attain maximum results from available resources by focussing on attainable goals. It permits lot of freedom to subordinate to make creative decisions on his own. This motivates subordinates and ensures good performance from them. Support from superior: When the subordinate makes efforts to achieve his goals, superior's helping hand is always available. The superior acts as a coach and provides his valuable advice and guidance to the subordinate. This is how MBO facilitates effective communication between superior and subordinates for achieving the objectives/targets set. Management by objective is a method whereby managers and employees define objectives for every department, project, and person and use them to control subsequent performance. MBO involves four steps: setting objectives, developing action plans, reviewing progress, and appraising overall performance. MBE : Perhaps the most fundamental of all control techniques is management by exception (MBE), a control principle which suggests that managers should be informed of situation only if control data show a significant deviation from standards. The use of MBE results in two advantages for organizations: First, it means a better use of the manager's time. Particularly, use of MBE with computers, helps managers save time by bringing to their attention only those conditions that appear to need managerial action.

Second, MBE encourages workers to exercise judgment when doing their work. As long as they are within the guidelines that have been established, they can continue working as they see fit. Therefore, management by exception is both a motivational and control techniques 5. Briefly explain the general principles of management as laid down by Henry Fayol. Fayol laid down the following principles of organization (he called them principles of management): 1.Specialization of labor. Specializing encourages continuous improvement inskills and the development of improvements in methods. 2.Authority. The right to give orders and the power to exact obedience. 3.Discipline. No slacking, bending of rules. 4.Unity of command. Each employee has one and only one boss. 5.Unity of direction. A single mind generates a single plan and all play their part in that plan. 6.Subordination of Individual Interests. When at work, only work things should be pursued or thought about. 7.Remuneration. Employees receive fair payment for services, not what the company can get away with. 8.Centralization. Consolidation of management functions. Decisions are madefrom the top. 9.Scalar Chain (line of authority). Formal chain of command running from top to bottom of the organization, like military.Scalar Chainis the number of different levels of authority through which decisions are passed in the organization. 10.Order. All materials and personnel have a prescribed place, and they must remain there. 11.Equity. Equality of treatment (but not necessarily identical treatment) 12.Personnel Tenure. Limited turnover of personnel. Lifetime employment for good workers. 13.Initiative. Thinking out a plan and do what it takes to make it happen. 14.Esprit de corps. Harmony, cohesion among personnel. 6. What is planning? Explain the steps involved in planning. Give the importance & purpose of planning process. Planning is an intellectual process Steps in planning Is a continuous process Must be flexible An all pervasive function Is rational Minimizes risk Leads to success Focus attention Facilitates control

Purpose