Chapter 1: Nature and Significance of Management
1. Define management. (1 Mark)
Answer: Management is the process of planning, organizing, staffing, directing, and controlling organizational resources to achieve predetermined objectives.
2. Explain any two definitions of management. (2 Marks)
Answer:
Mary Parker Follett: "Management is the art of getting things done through other people."
Henry Sisk: "Management is the coordination of all resources through the process of planning, organizing, directing and controlling in order to achieve stated objectives."
3. What are the objectives of management? (3 Marks)
Answer:
1. Organizational Objectives: Survival, profit, growth
2. Social Objectives: Environmental protection, employment generation, quality products
3. Personal Objectives: Competitive salaries, recognition, career growth
6. Explain the levels of management. (8 Marks)
Answer:
1. Top Level Management:
- Positions: Chairman, CEO, President, Board of Directors
- Functions: Determine objectives, formulate policies, evaluate performance
2. Middle Level Management:
- Positions: Department Heads, Marketing Manager, Finance Manager
- Functions: Implement policies, supervise lower managers, plan departmental activities
3. Lower/Supervisory Level:
- Positions: Supervisors, Foremen, Team Leaders
- Functions: Plan daily activities, assign jobs, supervise workers
Chapter 2: Functions of Management
1. What are the main functions of management? (3 Marks)
Answer:
1. Planning - Deciding what to do, when, how, and who will do it
2. Organizing - Grouping activities and assigning them to departments
3. Staffing - Selecting, training, and developing personnel
4. Directing - Guiding, supervising, and motivating subordinates
5. Controlling - Measuring performance and taking corrective action
2. Explain planning. (1 Mark)
Answer: Planning is deciding in advance what to do, how to do, when to do, and who will do it.
9. Explain controlling. (3 Marks)
Answer:
Controlling Process:
1. Establish standards
2. Measure actual performance
3. Compare with standards
4. Find deviations
5. Take corrective action
11. Explain POSDCORB. (8 Marks)
Answer:
Luther Gullick's POSDCORB Model:
P - Planning: Deciding objectives and methods
O - Organizing: Creating structure and assigning duties
S - Staffing: Recruiting and training personnel
D - Directing: Leading and motivating employees
CO - Coordinating: Harmonizing activities
R - Reporting: Keeping stakeholders informed
B - Budgeting: Financial planning and control
Chapter 3: Management Theories
1. Explain Maslow's hierarchy of needs. (8 Marks)
Answer:
Maslow's Hierarchy (5 Levels):
1. Physiological Needs: Basic survival needs (food, water, shelter)
2. Safety Needs: Security and protection (job security, insurance)
3. Social Needs: Belongingness and love (friendship, acceptance)
4. Esteem Needs: Self-respect and recognition (status, achievement)
5. Self-Actualization: Realizing full potential (creativity, growth)
4. What are hygiene factors? (1 Mark)
Answer: Hygiene factors are job conditions that prevent dissatisfaction but don't motivate (salary, job security, working conditions).
6. Explain McGregor's Theory X. (3 Marks)
Answer:
Theory X Assumptions:
1. People dislike work
2. Need to be controlled
3. Avoid responsibility
4. Not ambitious
5. Need close supervision
8. Differentiate between Theory X and Theory Y. (8 Marks)
Answer:
Theory X:
- People dislike work
- Need to be controlled
- Avoid responsibility
- Not ambitious
- Management Style: Autocratic
Theory Y:
- People enjoy work
- Self-directed and motivated
- Seek responsibility
- Creative and ambitious
- Management Style: Democratic
Chapter 4: Functional Areas of Management
1. What is financial management? (1 Mark)
Answer: Financial management is planning, organizing, directing and controlling the financial activities of an organization.
3. Explain investment decision. (3 Marks)
Answer:
Investment Decision:
1. Selection of assets for investment
2. Types: Capital budgeting (long-term), Working capital (short-term)
3. Factors: Return, risk, liquidity
9. State the functions of HRM. (8 Marks)
Answer:
Managerial Functions:
1. Planning: Manpower planning
2. Organizing: Designing organization structure
3. Directing: Guiding and motivating employees
4. Controlling: Performance evaluation
Operative Functions:
1. Recruitment and selection
2. Training and development
3. Compensation management
4. Industrial relations
5. Employee welfare
Chapter 5: Recent Trends in Management
1. What is SWOT analysis? (1 Mark)
Answer: SWOT analysis is a strategic planning tool that evaluates Strengths, Weaknesses, Opportunities, and Threats of an organization.
2. Explain the components of SWOT analysis. (8 Marks)
Answer:
1. Strengths: Internal advantages
- Examples: Skilled workforce, strong brand, financial strength
2. Weaknesses: Internal disadvantages
- Examples: Poor location, outdated technology, high debt
3. Opportunities: External favorable conditions
- Examples: New markets, technological advances, government incentives
4. Threats: External unfavorable conditions
- Examples: Competition, economic recession, changing regulations
4. Explain Porter's five forces model. (8 Marks)
Answer:
Porter's Five Forces:
1. Industry Competition: Rivalry among existing firms
2. Threat of New Entrants: Ease of new companies entering
3. Bargaining Power of Suppliers: Suppliers' ability to influence prices
4. Bargaining Power of Buyers: Customers' ability to influence prices
5. Threat of Substitute Products: Availability of alternative products
Chapter 6: Managerial Decision Making
1. What is decision making? (1 Mark)
Answer: Decision making is the process of selecting the best alternative from available options to solve a problem.
2. Explain the steps in decision making process. (8 Marks)
Answer:
7 Steps in Decision Making:
1. Identify the Problem: Recognize discrepancy
2. Analyze the Problem: Understand causes and effects
3. Collect Relevant Data: Gather information
4. Develop Alternatives: Generate possible solutions
5. Select Best Solution: Evaluate and choose optimal option
6. Implement Decision: Put decision into action
7. Feedback and Evaluation: Monitor results and adjust
7. What are the advantages of group decision making? (3 Marks)
Answer:
1. More information and knowledge
2. Different perspectives
3. Better acceptance of decisions
4. Increased creativity
5. Improved communication
Chapter 7: Pricing
1. What is pricing? (1 Mark)
Answer: Pricing is the process of determining what a company will receive in exchange for its products or services.
4. Explain cost-based pricing. (3 Marks)
Answer:
Cost-Based Pricing:
1. Calculate total cost (fixed + variable)
2. Add desired profit margin
3. Set price = Cost + Profit
Types: Cost-plus pricing, Markup pricing
7. What is penetration pricing? (1 Mark)
Answer: Penetration pricing is setting a low initial price to enter a competitive market and attract customers quickly.
9. Explain psychological pricing. (3 Marks)
Answer:
Psychological Pricing: Setting prices that have psychological impact on consumers.
Examples:
1. $9.99 instead of $10.00 (left-digit effect)
2. Prestige pricing (high prices for luxury)
3. Bundle pricing (multiple items together)
Chapter 8: Statistics for Managerial Decisions
1. What is statistics? (1 Mark)
Answer: Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting numerical data.
5. What is primary data? (1 Mark)
Answer: Primary data is original data collected for the first time by the investigator for a specific purpose.
7. Differentiate between primary and secondary data. (3 Marks)
Answer:
Primary Data:
- Collected for first time
- Original in nature
- More time and cost
- Examples: Surveys, interviews
Secondary Data:
- Already collected by others
- Not original
- Less time and cost
- Examples: Reports, journals
10. Explain diagrammatic presentation of data. (8 Marks)
Answer:
Types of Diagrams:
1. One-Dimensional Diagrams:
- Line diagrams - Show trends
- Bar diagrams - Compare quantities
2. Two-Dimensional Diagrams:
- Pie diagrams - Show percentages
- Rectangles - Compare areas
3. Three-Dimensional Diagrams:
- Cubes, Cylinders, Spheres
Graphical Presentation:
- Histogram - Frequency distribution
- Frequency polygon - Line graph of frequencies
- Ogive - Cumulative frequency curve
Exam Preparation Tips
Answer Writing Guidelines
1 Mark Questions: Definition + 1 example (2-3 sentences)
2 Mark Questions: Definition + 2 points (4-5 sentences)
3 Mark Questions: Introduction + 3 points + conclusion (6-8 sentences)
8 Mark Questions: Detailed explanation with headings, examples, diagrams (15-20 sentences)
Time Management (3 Hour Exam)
1 Mark = 2 minutes | 2 Marks = 4 minutes | 3 Marks = 6 minutes | 8 Marks = 16 minutes
Total: 40 minutes for Section A (20 marks) | 60 minutes for Section B (30 marks) | 80 minutes for Section C (30 marks)
Important Diagrams to Practice
1. Levels of Management Hierarchy
2. Maslow's Hierarchy Pyramid
3. BCG Matrix (4 quadrants)
4. Porter's Five Forces Model
5. Decision Making Process Flowchart
6. Statistical Diagrams (Bar, Pie, Histogram)