MANAGEMENT OF BUSINESS
I. Answer the following questions in a sentence each:
1. What is management?
Ans. Management is the process of getting pre-determined things done through others by directing their efforts in integrated and co-ordinated objectives of business. It is the sum total of the Principal functions namely (i) planning, (ii) organizing,
(iii) staffing, (iv) directing, (v) co-ordinating and (vi) controlling.
2. What do you mean by decision making?
Ans. Functional areas of Management may be classified into different areas. Some of them are as follows: (i) Planning, (ii) Organizing, (iii) Staffing, (iv) Directing, (v) Co-ordination, (vi) Controlling.
i) Planning: The process of planning includes determination of organizational objective and formulation of plans, policies, strategies, programmes, procedures and schedules.
(ii) Organizing: is the process of bringing together the man power and material resources.
(iii) Staffing: It is the function concerned with the recruitment, selection, placement, training, growth and development of all members of the organization.
(iv) Directing: It is the area of instructing, guiding, supervising and leading the people of an organization towards accomplishment of the goals.
(v) Co-ordination: It is the arrangement of group efforts to provide unity of actions in the pursuit of common purpose.
(vi) Controlling: It covers almost all the management activities. It keeps check on other functions of management.
3. What do you mean by authority and responsibility, scalar chain and centralization in principles of management?
Ans. Authority and Responsibility: This principle refers to the authority and responsibility, which are the combination of official authority and personal responsibility. Both are compounded with ~ intelligence, experience, past experience, moral worth etc.
Centralization: This principle refers to the extent to which authority is concentrated, so that it gives the overall yields.
Scalar Chain: This principle means that every enterprise should have some sort of graded authority or superior subordinate relationship. The range of authority and responsibility of superons in relation to subordinates at various levels should be clearly defined.
4. What is the need for decision making in management of business?
Ans: Each business organization has its own goals and objectives in order to achieve these objectives and goals the business organisation has to take decision. There are number of choices available even in a small matter. Suppose a business has to transport goods, he has to take a decision about the mode of transportation whether to send the goods through a trick, tempo, train or by air, He has to choose one among the several alternatives and that alternative should be best suited and economical. It is based on the decision which one business man has taken. Thus the decision making plays a very significant role in the business.
5. What are the important elements of decision making?
Ans. Important elements of decision making are as follows: i) establishing goals ii) searching for alternatives (iii) rational thinking and reasoning. (iv)defining tasks (v) defining tasks, (vi) developing plans, and (vii) situation viii) evaluation.
6. What factors are to be kept in mind, while taking decision?
Ans: The following factors are kept in mind while taking decisions
(i) Analysing the decisions
(ii) Planning of course of action.
(iii) Maintaining courage and patience.
(v) ability to take quick and wise decision.
7. What do you mean by planning and organisation functional areas of management?
Ans: Planning: It is the one of the important functional areas of important functional areas of management. It involves the future course of operation for a given period. The process of planning includes determination of organizational objective and formulation of plans, policies, strategic, programmes, procures and schedules.
Organising:- Organizing is the process of bringing together the man power and material resources. Some of the material resources are machines and materials. Putting the material resources and man power together into working order to achieve the objectives is the main purpose of the organizing area of managerial function. It also involves delegation of sufficient authority to the managers and establishment of linking together the various positions to the purpose of enabling the people to work in a co-ordinated manner.
8. How to controlling an important area of management function?
Ans. Controlling is an important area of the managerial function. It covers almost all the management activities. It keeps check on other functions of management. It is a function that every manager in the organization has to perform.
9. What are the main objectives of control areas?
Ans. The main objectives of the controlling area are as follows:
(i) to create an atmosphere of order and discipline in the organisation to ensure proper co-ordination of activities.
(ii) to ensure confirmation of actual performance with the pre-determined plans.
(iii) to achieve the increase of the overall efficiency of the organization.
10. "Directing and co-ordinations are very important functions in business management" how?
Ans: Directing and Co-ordinating are very important functions.
Directing: It is the area of functional management where instructing, guiding, supervising and leading the people of an organization towards accomplishment of the organizational goals. It is issuing orders or instructions to the sub-ordinates and make certain that the instructions are properly carried out and the operations are successfully planed.
Co-ordinating: It is the harmonious blending of the activities of the different departments for the achievement of the desired goals. It is the arrangement of group efforts to provide unity of actions in the pursuit of common purpose.