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Principles and Practices of Management

Some Questions and Answers for the Final Examination
Principles and Practices of Management
Section A: Objective Type
Part One:
Multiple choices:
1
...
Future
b
...
Policy
d
...
It is a function of employing suitable person for the enterprise
...
Organizing
b
...
Directing
d
...
___________ means “group of activities & employees into departments”
...
Orientation
b
...
Process
d
...
This theory states that authority is the power that is accepted by others
a
...
Competence Theory
c
...
Informal Authority Theory
Answer: a (Acceptance Theory)
5
...
Decentralization
b
...
Dispersion

d
...
This chart is the basic document of the organizational structure
...
Functional Chart
b
...
Master Chart
d
...
Communication which flow from the superiors to subordinates with the help of scalar
chain is known as
a
...
Downward Communication
c
...
Oral Communication
Answer: b (Downward Communication)
8
...
Physiological Needs
b
...
Ego Needs
d
...
A management function which ensures “Jobs to be filled with the right people, with the
right knowledge, skill & attitude”
a
...
Job Analysis
c
...
Recruitment
Answer: b (Job Analysis)
10
...

a
...
Raining
c
...
Counselling

Answer: a (Selection)

Part Two:
Short Notes type Questions:
1
...

Answer
Introduction
It may appear that both the terms, namely administration and management are connotative of
one and the same meaning, but there is actually some kind of difference between the two
...

Administration Vs Management
It can thus be said that administration is a determinative function whereas management is
executive function
...
Top level activity
controls an administration where as middle level activity controls a management
...
Management comprises of a group of managers that
exhibit their skill in putting into practice the objectives of the organization
...

A management would survive only if the administration is satisfied by its academic show
...
Planning is the key factor
of an administration whereas motivation is the key factor of a management
...

Administration organizes resources so as to use them to fulfill their mission
...

It is the administration that takes vital decisions of an organization whereas management is
not authorized to take vital decisions of an organization but can take decisions within a
certain framework, by the approval of the administration
...
Administrators are found only in

government, religious, military and educational organizations, whereas managers are found in
business firms only
...
Everything a management achieves
gets included in the administration and everything a management fails to achieve also gets
included in the administration
...
A managerial success is an administrative success too
...
It
also follows that administration makes the important decisions of an enterprise in its entirety,
whereas management makes the decisions within the confines of the framework, which is set
up by the administration
...
If one were to
decide the status, or position of administration, one would find that it consists of owners who
invest the capital, and receive profits from an organization
...

Administrators are usually found in government, military, religious and educational
organizations
...
The decisions of an
administration are shaped by public opinion, government policies, and social and religious
factors, whereas management decisions are shaped by the values, opinions and beliefs of the
mangers
...
When it
comes to the type of abilities required by an administrator, one needs administrative qualities,
rather than technical qualities
...

Administration usually handles the business aspects, such as finance
...
Administration is perhaps both an art and a
science
...

Administration must incorporate both leadership and vision
...
It is different from executive or strategic

work
...
Administration is above management, and
exercises control over the finance and licensing of an organization
...
Both these functions are crucial, in their own ways, to the growth of an
organization
...




Administration is a determinative function, while management is an executive function
...




Administrators are mainly found in government, military, religious and educational
organizations
...


2
...
It represents the
merger of scientific management, bureaucratic theory, and administrative theory
...
His theory had four basic principles: 1) find the one "best way" to
perform each task, 2) carefully match each worker to each task, 3) closely supervise workers,
and use reward and punishment as motivators, and 4) the task of management is planning and
control
...
His methods involved getting
the best equipment and people, and then carefully scrutinizing each component of the
production process
...

While Taylor's scientific management theory proved successful in the simple industrialized
companies at the turn of the century, it has not faired well in modern companies
...

Max Weber (1947) expanded on Taylor's theories, and stressed the need to reduce diversity
and ambiguity in organizations
...
Weber's bureaucratic theory emphasized the need for a hierarchical structure of
power
...
A formal set of
rules was bound into the hierarchy structure to insure stability and uniformity
...

Administrative theory (i
...
, principles of management) was formalized in the 1930's by
Mooney and Reiley (1931)
...

Classical management theory was rigid and mechanistic
...
Its major deficiency was that it attempted to
explain peoples' motivation to work strictly as a function of economic reward
...
It addressed many of the problems inherent in classical theory
...
Neoclassical theory displayed
genuine concern for human needs
...
While manipulating conditions in the work environment (e
...
, intensity of lighting),
they found that any change had a positive impact on productivity
...

Uris (1986) referred to this as the "wart" theory of productivity
...
"The implication is plain:
intelligent action often delivers results"
...
An organization might continually involve
itself in the latest management fads to produce a continuous string of Hawthorne effects
...
Pascale believes that the
Hawthorne effect is often misinterpreted
...
" Erroneous conclusions are drawn because it
represents a controlling and manipulative attitude toward workers
...
He stressed in role of
the executive in creating an atmosphere where there is coherence of values and purpose
...

He proposed that a manager's authority is derived from subordinates' acceptance, instead of
the hierarchical power structure of the organization
...
Since there is no consensus among scholars, it
might be most appropriate to think of Barnard as a transition theorist
...
The theory stated that
workers could respond unpredictably to managerial attention
...
Reductionism,
quantification, and deductive logic were legitimized as the methods of studying
organizations
...
The emphasis was on being able to control and
manipulate workers and their environment
...
These
included the ideas of pioneers like Fredrick W
...
Max Weber, and
Henry Fayol
...

Neo-classical theories of management developed during 1920's and later
...

Each of the theories under classical and neo-classical groups have their own values and
limitations
...
All these theories concentrated on some limited aspect of management, and treated
is as if it is the sole or most important aspect of management
...
Thus while people like Taylor concentrated too
much on physical aspects of work, people connected with Hawthorne Studies, erroneously
believed that they have discovered truths about shop-floor practices of workmen till then

totally unknown to others, and concluded that the key to management lies only in promoting
appropriate group behavior
...
It was profoundly mechanical in nature and endeavored to establish
hierarchies and enforce a high degree of specialization into individual jobs
...
Neoclassical management theory attempted to allow for
ingenuity and individual personal growth by addressing human needs
...

3
...

Answer
Introduction
Line organization is the oldest and simplest method of administrative organization
...

The line of command is carried out from top to bottom
...
In this type of organization, the line of command
flows on an even basis without any gaps in communication and co- ordination taking place
...




Line of authority flows from top to bottom
...




Unified control by the line officers can be maintained since they can independently
take decisions in their areas and spheres
...


Merits of Line Organization


Simplest- It is the most simple and oldest method of administration
...




Better discipline- The control is unified and concentrates on one person and
therefore, he can independently make decisions of his own
...




Fixed responsibility- In this type of organization, every line executive has got fixed
authority, power and fixed responsibility attached to every authority
...
Since the authority relationships are clear, line officials are independent and
can flexibly take the decision
...




Prompt decision- Due to the factors of fixed responsibility and unity of command,
the officials can take prompt decision
...
This
results in over-relying on the line officials
...
For example, expert advices whatever
decisions are taken by line managers are implemented in the same way
...
This leaves no scope for communication
from the other end
...
So there is one way communication
...

Therefore, the degree of effective co- ordination is less
...
This leads to autocratic leadership and monopoly in the concern
...
Write short note on ‘Acceptance Theory’
...
This idea combines both the traditional approach to management of a
"top- down" structure where subordinates are to comply with the decisions of management
...
If one were to buy the
"acceptance theory" of management, then one also has to accept that subordinates do possess
some level of intrinsic power that requires explanation, articulation, and clear definition of
company policies and initiatives
...
To accept "acceptance theory," management must
"accept" the premise that their workers have to be "accepted" as beings with their own sense
of autonomy, freedom, and reasonability, as opposed to drones who will blindly follow where
the company leads
...
Authority flows to manager through acceptance of his orders by
the subordinates
...

When the subordinates accept the order of the supervisor because of his personality, it is
called charismatic theory of authority
...




The subordinate wants to avoid disciplinary actions
...


Acceptance theory of authority is subject to criticism because it is unreal and gives too much
emphasis on subordinates
...
It has
been appropriate by Barnard and others that Leaders doesn't has absolute authority until and
unless the followers confers upon them
...
Authority flows to manager through acceptance of
his orders by the subordinates
...
Barnard emphasizes on the willingness of employees to accept that mangers have
legitimate authority to act
...
The employees must understand the communication
...
The employees accept the communication as being consistent with the organization’s
purposes
...
The employees feel that their actions will be consistent with the needs and desires of the
other employees
...
The employees feel that they are mentally and physically able to carry out the order
...

Section B: Case lets (40 marks)
Case let 1
Mr
...
The Professor had given an interesting but
disturbing lecture the previous night on the various approaches to management
...
Now
this Professor was saying that management could also be thought of as quantitative models,
systems theory and analysis, and even something called contingency relationships
...
He thought of himself, "I have never used operations research models, thought
of my store as an open system, or developed or utilized any contingency relationship
...
That other stuff just does not make sense
...
I guess I will have to know it for the test, but I am
sticking with my old plan, organize and control approach to managing my store
...
Critically analyze Mr
...

2
...
When we talk of managing an
activity, we really mean to make the activity a success
...


Consider a situation
...
He has a number of questions in his mind—what should he
buy? From where to buy? How will he reach there? Will he be able to come back at the right
time? And so on
...

Take another example of a housewife
...
g
...
In the family, she may have three persons to help her— her servant, her eldest
daughter and her mother-in-law
...
What the housewife does in this
example, taken together, to achieve her aim, means management
...

Facts of the Case


Mr
...




The Professor had given an interesting but disturbing lecture the previous night on the
various approaches to management
...




Professor was saying that management could also be thought of as quantitative
models, systems theory and analysis, and even something called contingency
relationships
...




By using operations research models, making store as an open system, or developed
or utilized any contingency relationship
...
Vincent would like to
become a successful manager
...


1
...
Vincent's reasoning
...
Vincent’s Resoning
Mr
...
Management as defined by wellknown authors in the field of management
contains the following components:


Planning



Organizing



Staffing



Directing (Leading)

 Controlling
All managers carry out the functions of planning, organizing, staffing, leading, and
controlling, although the time spent in each function will differ and the skills required by
managers at different organizational levels vary
...
The managerial activities, grouped into the managerial
functions of planning, organizing, staffing, leading, and controlling, are carried out by all
managers, but the practices and methods must be adapted to the particular tasks, enterprises,
and situation
...

The statement from Weihrich means that management performs the same functions
regardless of its position in the organization or the enterprise managed, and management
functions and fundamental activities are characteristic duties of managers; management
practices, methods, detailed activities, and tasks are particular to the enterprise or job
managed
...
Recognition of this concept is crucial to the
improvement of software engineering project management, for it allows us to apply the
wealth of research in management sciences to improving the management of software
engineering projects
...
This chapter and introduction is important to the readers of this tutorial
...
Management consists of planning, organizing, staffing, directing, and controlling
...
The concepts and activities of management applies to all levels of management, as
well as to all types of organizations and activities managed
...
This basic
definition needs to be expanded:
1
...

2
...

3
...

4
...

5
...

The Systems Approach to Operational Management
An organized enterprise does not, of course, exist in a vacuum
...
Thus, the enterprise receives inputs, transforms them, and
exports the outputs to the environment, as shown by the very basic model in Figure 3
...
Clearly, any business or
other organization must be described by an open-system model that includes interactions
between the enterprise and its external environment
...
Still, all managers are engaged in getting
things done through people
...
Thus, managing is an
art using the underlying sciences
...
Katz identified three kinds of skills for administrators
...
Technical skill is knowledge of and proficiency in activities involving methods,
processes, and procedures
...
For
example, mechanics work with tools, and their supervisors should have the ability to teach
them how to use these tools
...

2
...

3
...

4
...
To be
effective, particularly at upper organizational levels, managers must be able to do more than
see a problem
...
They must have, in addition, the skill of a good design engineer in working out a
practical solution to a problem
...
In
all fields of practice they are important
...
Among them are budgeting, cost
accounting, network planning and control techniques like the Program Evaluation and
Review Technique (PERT) or the critical path method (CPM), rate-of-return-on-investment
control, various devices of organizational development, managing by objectives, total quality
management (TQM)
...

The Quantitative Methods for Managers contains four (4) modules namely: Basic Statistical
Methods; Statistical tools and techniques; Probability and Decision Theory; and optimization
Techniques
...

2
...

Decision Making with Quantitative Tools
Quantitative techniques help a manager improve the overall quality of decision making
...
Among the most common techniques are
decision trees, payback analysis, and simulations
...
Decision trees are a useful way to analyze hiring, marketing,
investments, equipment purchases, pricing, and similar decisions that involve a progression
of smaller decisions
...

The term decision tree comes from the graphic appearance of the technique that starts with
the initial decision shown as the base
...

Decision trees force a manager to be explicit in analyzing conditions associated with future
decisions and in determining the outcome of different alternatives
...
It can be used for many situations in which emphasis can be placed on
sequential decisions, the probability of various conditions, or the highlighting of alternatives
...
Say, for example, that a manager is purchasing cars for a rental car company
...
To decide which cars to purchase, a manager should consider some factors,
such as the expected useful life of the car, its warranty and repair record, its cost of insurance,
and, of course, the rental demand for the car
...
A higher-priced car may be more
appropriate because of its longer life and customer rental demand
...

Many individuals use payback analysis when they decide whether they should continue their
education
...
If the benefits outweigh the costs, the payback is worthwhile
...
Simulation is basically model building, in which
the simulator is trying to gain understanding by replicating something and then manipulating
it by adjusting the variables used to build the model
...
In the basic decision-making steps, Step
4 is the evaluation of alternatives
...

By using operations research models, making store as an open system, or developed or
utilized any contingency relationship
...
Vincent would like to become a successful
manager
...

Case let 2
The Regional Administration Office of a company was hastily set up
...

The data processing was to help the administrative office in planning and monitoring
...
Females dominated the junior
clerical cadre
...
The administrative office had decided
to give these fresh recruits on-the-job training because when results were not upto the
expectations blame was brought on the Data Processing Cell
...
He knew that his task would not be
easy and that he had been selected because of his experience, background and abilities
...
Feedback was random, scanty and controversial, and Data Processing Cell had to
verify every item of feedback
...
D'Cuhna sought the permission of
senior management to conduct a seminar on communication and feedback of which he was
an expert
...
Everyone
appreciated the seminar
...


Amongst other topics, D'Cuhna laid emphasis on filing system, information tracking,
communication, and feedback
...
But the female
clerks preferred to ignore the theme and widely circulated the belief that D'Cuhna was an
upstart and a show off
...
The junior promotee officers were prejudiced against him
...
D'Cuhna happened to get annoyed with a female clerk
...
D'Cuhna took pains to explain to her that for
certain topics a nil feedback was not tenable
...
He should talk to her
officer when the officer reports back from leave
...
When D'Cuhna called for the files, she
refused to part with them
...
The other ladies were up in the arms against D'Cuhna
...
Other ladies
supported her complaint
...

D'Cuhna countered that had there been a male clerk in her place he would have scolded
him too
...
Nevertheless, D'Cuhna was transferred to another place
...

A shocked and disillusioned D'Cuhna quit the enterprise
...
Diagnose the problem and enumerate the reasons for the failure of D 'Cuhna?
2
...
You want it to be a
perfect mix of ease and business
...
Now, substitute the words “business dinner” with the word
training
...
As a facilitator,

it is your job to create the ideal learning environment
...
The employees have to be transformed
according to the organizations' & global needs
...

Facts of the Case
The Regional Administration Office of a company was hastily set up
...

The data processing was to help the administrative office in planning and monitoring
...

Females dominated the junior clerical cadre
...
The administrative office had decided to give these
fresh recruits on-the-job training because when results were not upto the expectations
blame was brought on the Data Processing Cell
...
He knew
that his task would not be easy and that he had been selected because of his experience,
background and abilities
...

Feedback was random, scanty and controversial, and Data Processing Cell had to verify
every item of feedback
...

D'Cuhna sought the permission of senior management to conduct a seminar on
communication and feedback of which he was an expert
...
Everyone appreciated the
seminar
...

Amongst other topics, D'Cuhna laid emphasis on filing system, information tracking,
communication, and feedback
...

But the female clerks preferred to ignore the theme and widely circulated the belief that
D'Cuhna was an upstart and a show off
...

The junior promotee officers were prejudiced against him
...
D'Cuhna happened to get annoyed with a female clerk
...

D'Cuhna took pains to explain to her that for certain topics a nil feedback was not tenable
...
He should talk to her
officer when the officer reports back from leave
...

When D'Cuhna called for the files, she refused to part with them
...

The other ladies were up in the arms against D'Cuhna
...

Other ladies supported her complaint
...

D'Cuhna countered that had there been a male clerk in her place he would have scolded
him too
...

Nevertheless, D'Cuhna was transferred to another place
...
A
shocked and disillusioned D'Cuhna quit the enterprise
...
Diagnose the problem and enumerate the reasons for the failure of D 'Cuhna?
Training - Definition
Training is a process of learning a sequence of programmed behavior
...
It
helps in bringing about positive change in the knowledge, skills & attitudes of employees
...
It bridges the gap between what the
employee has & what the job demands
...
The objectives & need for training should
be clearly identified & the method or type of training should be chosen according to the needs
& objectives established
...

Failure of understanding Key features of Training
Training is a continuous or never ending process
...
This type of training is known as Refresher Training & the training given to new
employees is known as Induction Training
...
It is a very short
informative training just after recruitment to introduce or orient the employee with the
organization's rules, procedures & policies
...
Human resources are the
lifeblood of any organization
...



To impart to the new entrants the basic knowledge & skills they need for an
intelligent performance of definite tasks
...




To bring about change in attitudes of employees in all directions
...




To reduce defects & minimize accident rate
...




Helpful for the growth & improvement of employee's skills & knowledge
...

On-The-Job Training
It is given at the work place by superior in relatively short period of time
...
This training can be imparted by basically four
methods:

-

Coaching is learning by doing
...
The superior points out the mistakes & gives suggestions for improvement
...
E
...
In banking industry, employees are trained
for both back-end & front-end jobs
...

Disadvantages of On Job Training


Inconsistent - Traditional OJT relies heavily on an experienced employee to provide
the instruction based on what they feel are the most important topics
...
The result is what is
learned may vary greatly, depending on who is assigned as the trainer
...
What is learned is likely to be based on what happened that
day rather than on what a new employee needs to know to be safe and productive
...
Without this foundation of knowledge, trainees often
learn what to do, not why they are doing it, resulting in poor decision making when
things don't go exactly right
...
Poorly selected trainers can have many unintended
consequences
...
The new employee
learns the job while doing the job and while earning his or her pay check
...
On the job training has many advantages, but it can also have
a few disadvantages if the OJT is not properly planned and executed
...
The person
responsible for giving and evaluating the training has to be sure that his or her other job
responsibilities are being met
...
The person doing the training must have the knowledge and
skills with the same equipment that the learner will be working with
...


If these disadvantages are eliminated, however, on the job training can be beneficial for both
the company and the new employee
...
No
extra equipment is needed as the new worker learns on the equipment needed for the job
anyway
...

Also, there is no need for the new worker to have to travel to one place for the training and
another for the job
...
The feedback during on the job training is also immediate, so the new employee may
experience faster growth in the job than he or she would in other types of training situations
...
What could D'Cuhna have done to avoid the situation in which he found himself?
Understand the Features and Advantages of Training
Training is a continuous or never ending process
...
This type of training is known as Refresher Training & the training given to new
employees is known as Induction Training
...
It is a very short
informative training just after recruitment to introduce or orient the employee with the
organization's rules, procedures & policies
...
Human resources are the
lifeblood of any organization
...



To impart to the new entrants the basic knowledge & skills they need for an
intelligent performance of definite tasks
...




To bring about change in attitudes of employees in all directions
...




To reduce defects & minimize accident rate
...


Helpful for the growth & improvement of employee's skills & knowledge
Advantages:



Low cost - does not require the development of potentially expensive training
materials or classroom/computer-based instruction
...




Well suited for small groups - OJT is often the most practical training method when
you only need to train one or two employees at a time
...
And the impact on customer satisfaction, cost containment or
quality improvement is just as useless
...
Too often,
companies rely on lectures ("spray and pray"), inspirational speeches or videos, discussion
groups and simulation exercises
...
Knowing isn't the
same as doing; good intentions are too easily crushed by old habits
...

Another way of wasting dollars is failing to link training with organizational strategies and
day-to-day management behaviour
...

Trainees learn which hoops to jump through, pledge alliance to the current management fad,
give their enthusiastic "commitment" to building "the new culture," get their diploma - and
then go back to work
...
Research clearly shows far more people act themselves into a
new way of thinking than think themselves into a new way of acting
...
Most executives and many professional trainers (who should know better)
get this backward
...

A Motorola Inc
...


Plants providing the same training with no top management follow-up produced a
negative return on investment
...
study showed a paltry 13 percent of skills were retained by trainees six
months after training if managers failed to provide coaching and support as the skills were
being applied
...
of Calgary uses its performance appraisal system to hold
managers accountable for applying the principles that have been taught to them
...
Trainees should
immediately see the connection between their new skills and where the organization is
going
...




Another key principle is practiced by Vancouver-based Finning Ltd
...
Chief executive James Shepard and his executives are not
only first in line for service and quality training, but they are also the trainers
delivering sessions to their people
...
Training attendance problems disappear
...
Trainees don't cross their arms and ask "Is the
organization really serious about this stuff?"
In addition, managers achieve a deeper level of skill development when they teach others
and are put on the spot to practice what they are now preaching
...
" Most training efforts never get off the ground because the methods
don't change behaviour or the training is poorly delivered and integrated by the
organization
...

Section C
Applied Theory
1
...

Answer
Introduction

Imagine that you are hosting a dinner for your colleagues and friends
...
You want people to have fun, do business, find friends and
leave with a treasured memory
...
As a host, it is your job to create the perfect ambience for the dinner
...
Human Resource Management is
concerned with the planning, acquisition, training & developing human beings for getting the
desired objectives & goals set by the organization
...
This is done through an organized activity
called Training
...
It is the application of
knowledge & gives people an awareness of rules & procedures to guide their behavior
...

Thus, training is a process that tries to improve skills or add to the existing level of
knowledge so that the employee is better equipped to do his present job or to mould him to be
fit for a higher job involving higher responsibilities
...

Since training involves time, effort & money by an organization, so an organization should to
be very careful while designing a training program
...
Once this is done accurately, an organization should take a
feedback on the training program from the trainees in the form of a structured questionnaire
so as to know whether the amount & time invested on training has turned into an investment
or it was a total expenditure for an organization
...
Even the existing employees need to be
trained to refresh them & enable them to keep up with the new methods & techniques of
work
...
This is basically given to new employees to help
them get acquainted with the work environment & fellow colleagues
...


Training plays a significant role in human resource development
...
Only through trained & efficient employees, can an
organization achieve its objectives
...




To prepare employees for more responsible positions
...




To reduce supervision time, reduce wastage & produce quality products
...




To absorb new skills & technology
...


Methods of Training
The most widely used methods of training used by organizations are classified into two
categories: On-the-Job Training & Off-the-Job Training
...
This type of
training is cheaper & less time-consuming
...
In this, the superior guides his sub-ordinates & gives him/her
job instructions
...

Job Rotation: - In this method, the trainees move from one job to another, so that he/she
should be able to perform all types of jobs
...
g
...
In case of emergency, (absenteeism or resignation), any
employee would be able to perform any type of job
...

Lectures/Conferences:- This approach is well adapted to convey specific information, rules,
procedures or methods
...
The cost per trainee is low in this method
...
Motion pictures are often used in conjunction with Conference,
discussions to clarify & amplify those points that the film emphasized
...

Simulation activities include case experiences, experiential exercises, vestibule training,
management games & role-play
...
The employee attempts to find and analyze the problem, evaluate alternative
courses of action & decide what course of action would be most satisfactory
...
For instance, rather than talking about inter-personal conflicts &
how to deal with them, an experiential exercise could be used to create a conflict situation
where employees have to experience a conflict personally & work out its solutions
...
While expensive, Vestibule
training allows employees to get a full feel for doing task without real world pressures
...

Role Play: - Its just like acting out a given role as in a stage play
...

Management Games: - The game is devised on a model of a business situation
...
They make
decisions just like these are made in real-life situations
...
The game
goes on in several rounds to take the time dimension into account
...
The trainee is presented
with a pack of papers & files in a tray containing administrative problems & is asked to take
decisions on these problems & are asked to take decisions on these within a stipulated time
...
The trainees are provided
feedback on their performance
...
Here are seven
recommendations for getting the best out of this tool: -

1
...
Its better to identify the
needs & shortcomings in an employee before actually imparting training to him/her
...
Experienced & skilled trainer, who possesses good amount of knowledge &
understanding about the organization's objectives, individual abilities & the present
environment, should give training
...
Active participation from the trainees should be encouraged
...

4
...

5
...

6
...

7
...

Thus, training is a vital tool to cope up with the changing needs & technologies, & everchanging environment
...

2
...

Answer
Introduction
Decision-making is an essential aspect of modern management
...
A manager's major job is sound/rational decision-making
...
Decision-making is the key part of manager's
activities
...
A decision may be defined as "a course of action which is consciously chosen from
among a set of alternatives to achieve a desired result
...

It is rightly said that the first important function of management is to take decisions on
problems and situations
...
It is a continuous
process
...

Means and ends are linked together through decision-making
...
Decision is a choice from among a set of

alternatives
...
Decisions are
made to achieve goals through suitable follow-up actions
...
Decision-making lies embedded in the process of
management
...

A manager has to take a decision before acting or before preparing a plan for execution
...
Thus,
management is always a decision-making process
...

This is because action is not possible unless a firm decision is taken about a business problem
or situation
...

According to Trewatha & Newport, "Decision-making involves the selection of a course of
action from among two or more possible alternatives in order to arrive at a solution for a
given problem"
...
For example, in planning alternative plans are prepared to meet
different possible situations
...
e
...
Here, the planner has
to take correct decision
...

In the same way, decisions are required to be taken while performing other functions of
management such as organising, directing, staffing, etc
...

The effectiveness of management depends on the quality of decision-making
...
According to R
...
Davis,
"management is a decision-making process
...
Decision-making
will be followed by second function of management called planning
...

Decision-making has priority over planning function
...
Without such decisions, no action can take place and naturally the
resources would remain idle and unproductive
...
For this, scientific decision-making is essential
...
Thus, it is the process of selection of one solution out of many
available
...
Managers have to
consider these alternatives and select the best one for actual execution
...
It is rightly said that
"Decision-making is fundamentally choosing between the alternatives"
...
Here, the
available business environment also needs careful consideration
...
This will be decided in the future, as per the results available
from the decision already taken
...
Moreover, in the decision-making
process, information is collected; alternative solutions are decided and considered critically in
order to find out the best solution among the available
...
These are the alternatives and a decision-maker has to select one
alternative which he considers as most appropriate
...
The alternatives may
be two or more
...

The manager needs capacity to select the best alternative
...

Continuous activity/process: Decision-making is a continuous and dynamic process
...
Managers have to take decisions on various policy and
administrative matters
...

Mental/intellectual activity: Decision-making is a mental as well as intellectual
activity/process and requires knowledge, skills, experience and maturity on the part of
decision-maker
...

Based on reliable information/feedback: Good decisions are always based on reliable
information
...


Goal oriented process: Decision-making aims at providing a solution to a given problem/
difficulty before a business enterprise
...

Means and not the end: Decision-making is a means for solving a problem or for achieving
a target/objective and not the end in itself
...

Time-consuming activity: Decision-making is a time-consuming activity as various aspects
need careful consideration before taking final decision
...
This makes decision-making a time consuming activity
...
Decisions taken will remain on paper if they are not
communicated to concerned persons
...

Pervasive process: Decision-making process is all pervasive
...

Responsible job: Decision-making is a responsible job as wrong decisions prove to be too
costly to the Organisation
...
Decision-making need not be treated as routing and casual
activity
...

Advantages of Decision Making
Decision making is the primary function of management: The functions of management
starts only when the top-level management takes strategic decisions
...
Thus decision-making is
the primary function of management
...
Planning gives concrete
shape to broad decisions about business objectives taken by the top-level management
...

Decision-making is a continuous managerial function: Managers working at all levels will
have to take decisions as regards the functions assigned to them
...
Follow-up actions are not possible unless
decisions are taken
...
This may be due to changes in the external environment
...

All this leads to change in the environment around the business unit
...

Decision-making is a delicate and responsible job: Managers have to take quick and
correct decisions while discharging their duties
...
Management activities are possible only when suitable
decisions are taken
...

Steps Involved In Decision Making Process
Decision-making involves a number of steps which need to be taken in a logical manner
...


Such

lengthy

process

needs

to

be

followed

in

order

to

take

rational/scientific/result oriented decisions
...
This involves many steps
logically arranged
...

Drucker recommended the scientific method of decision-making which, according to him,
involves the following six steps:
1
...
Analyzing the problem,
3
...
Selecting the best solution out of the available alternatives,
5
...
Ensuring feedback for follow-up
...
It is rightly said that a problem well-defined
is a problem half-solved
...
This is how the problem can be diagnosed
...
In brief, the manager should search the 'critical factor' at work
...
Similarly, while diagnosing the real problem the manager should consider
causes and find out whether they are controllable or uncontrollable
...
This is necessary to classify the problem in order
to know who must take the decision and who must be informed about the decision taken
...


Collecting Relevant Data: After defining the problem and analyzing its nature, the next step
is to obtain the relevant information/ data about it
...
All available
information should be utilised fully for analysis of the problem
...


Developing Alternative Solutions: After the problem has been defined, diagnosed on the
basis of relevant information, the manager has to determine available alternative courses of
action that could be used to solve the problem at hand
...
It is equally important to take into account time and cost constraints and
psychological barriers that will restrict that number of alternatives
...

Selecting the Best Solution: After preparing alternative solutions, the next step in the
decision-making process is to select an alternative that seems to be most rational for solving
the problem
...
Acceptance of the decision by group members is always desirable and
useful for its effective implementation
...
Without such action, the decision will
remain merely a declaration of good intentions
...
For this, the subordinates should be taken in
confidence and they should be convinced about the correctness of the decision
...

Ensuring Feedback: Feedback is the last step in the decision-making process
...
It is like checking the effectiveness of follow-up
measures
...
Feed back is necessary to decide whether the decision already taken should be
continued or be modified in the light of changed conditions
...
This facilitates accurate decision-making
...
are useful for accurate decision-making
...
Management activities are
just not possible without decision-making as it is an integral aspect of management process
itself
...




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