Dr. Karsan Bhai Patel is the owner of Nirma Limited. In 1980s he used to sell surf by going into
the streets. Now he became owner of the Nirma Company Limited.
If you take another example Late Sri G. Pulla Reddy was selling sweets on the roads on his
4. Managers of formal organization have
4. The authority of the leader of the informal group
depends upon the combined support of group
5. Formal organisation is permanent
5. Informal organisation is of temporary nat
2. Briefly explain the various sources of recruitment? (OR) Explain any four external
sources of recruitment?
Ans: One must be aware of the sources of recruitment before publicizing the specific staffing needs
and induce the suitable persons to apply for
Importance of Communication
Communication in organisations is so important that it is said to be the lifeblood of the organisation.
Success of direction largely depends on how effectively the manager can communicate with his
subordinates. Proper communica
(d) Checking of References
In addition to the requisite educational qualification, skill and experience, it is expected that
the candidates who are to be considered for employment must have other qualities like balanced
temperament, honesty, loyalty, etc.
broadens the horizon of his subordinates by making them aware of the wider aspects of their
coordinates the work of different subordinates under him; and
detects errors and omissions and ensures their rectification.
Importance of Supervi
The standard of performance or the expected level of performance of an employee on a job
forms the basis of judging how well the employee has performed, and whether one employee is
more efficient than the other in doing a similar job. The yardstick placed
2. What is the meaning of the term motivation? Describe the importance of motivation.
Ans: Motivation is one of the important elements of directing. Issuance of proper instructions or orders
does not necessarily ensure that they will be properly carried o
Co-ordination & Controlling
You have learnt about the various functions of management and gone through the details of
planning, organising, staffing and directing functions. In this chapter we shall learn the details of coordinating
Merits of Debentures
(a) Debentures are secured loans. On winding up of the company, they are repayable before
making any payment to the equity and preference shareholders.
(b) The debenture holders get assured return irrespective of profit.
(c) Issue of
Performance should be measured as early as possible so that if a corrective action is called for
it may be taken in time.
3. Comparison of Performance with standards
The next step in the control process is comparison of actual performance against the stan
be produced per hour, cost of production per unit, permissible quantity of scrap and waste per
day, quality of products etc.
6. What is co-ordination?
Ans: Co-ordination means orderly arrangement of group efforts to provide unity of action in the pursuit
6. To avail of business opportunities: Funds are also required to avail of business opportunities.
Suppose a company wants to submit a tender for which some amount of money is required to
be deposited along with the application. When a stockist offers spe
without corrective action, the entire control process would be a meaningless exercise. Thus,
(i) knowing the nature, quantum and time frame of the work;
(ii) comparing the performance with the plan;
(iii) analysing deviation, if any;
(g) Training and Development
(h) Performance Appraisal
(j) Promotion and Transfer
Let us now discuss these aspects briefly to gain more clarity.
a. MANPOWER PLANNING
Under divisional structure, most activities associated with a product or product group can be
well coordinated and its profitability easily ascertained. Moreover, it provides opportunity to
divisional managers to take
2. Insecurity: Public deposits do not have any charge on the assets of the concern. It may
not always be safe to deposit savings with companies particularly those, which are not
very sound financially.
3. Limits on the amount raised: There are limits on t
(i) There must be a systematized body of knowledge that includes concepts, people and
(ii) We should be able to establish a cause and effect relationship.
(iii) Its principles should be verifiable.
(iv) It should ensure predictable results.
3. Discipline: This principle emphasises that subordinates should respect their superiors and
obey their orders. On the other hand, superiors behaviour should be such that they make
subordinates obedient. If such discipline is observed, there will be no p
(e) Demographic Environment
This refers to the size, density, distribution and growth rate of population. All these factors
have a direct bearing on the demand for various goods and services. The high rise of population
indicates the easy availability of
(b) Giving Direction for Growth: The interaction with the environment leads to opening up
new frontiers of growth for the business firms. It enables the business to identify the areas for
growth and expansion of their activities.
(c) Continuous Learning:
Short Answer Type Questions
1. Describe any two points of importance of management.
Ans: In todays scenario with globalisation, job specialisation, changing technologies, new responsibilities
of business, consumerism, competition and emphasis on research
48. Which instrument sends the written information immediately?
49. Which information is sent through tele printer?
50. Which instrument replies the telephone calls with the help of computer?
Ans: Voice mail
51. What is known as sendin
2. Scientific selection and placement of workers so that each worker could be assigned the task
for which he is best suited;
3. Scientific training and development of workers so as to achieve the highest level of efficiency;
4. Close co-operation betw
Fundamentals of Management
Let us take the example of a housewife. She is the person who manages all the household work.
She decides upon a number of things like how to decorate the house in terms of furniture, curtains,
Privatisation refers to reducing the role of public sector by involving the private sectors in
most activities. Due to the policy reforms announced in 1991, the expansion of public sector
has literally come to a halt and the private sect
premises. These premises may be external or internal. External planning premises relate to
conditions outside the business. Internal planning premises relate to conditions prevailing within
3. Development of alternative courses of action
11. What are the various types in premises?
Ans: Planning premises may be internal and external premises, controllable and non controllable planning
12. What is strategic planning?
Ans: The process of setting future objectives and deciding on th
Delegation is done to speed up the work and is essential in trace; while decentralization is
optional and is usually done in large scale organisations.
In case of delegation the responsibility and authority delegated may be withdrawn by the
We are doing our project in Indian Railways Diesel Loco care Sabarmati. Here regular maintenance and overhauling of EMD diesel engine Locomotives are carried out. Weve found problem related to exhaust poppet valves. A failure of valves is a significant p