PORT CITY INTERNATIONAL
UNIVERSITY
1. What is Management?
Ans: Management can be defined as the process of administering and
controlling the affairs of the organization, irrespective of its nature, type, structure
and size. It is an act of creating and maintaining such a environment wherein the
members of the organization can work together, and achieve business objectives
eff
Management acts as a guide to a group of people working in the organization
and coordinating their efforts, towards the attainment of the common objective.
In other words, it is concerned with optimally using 5M’s, i.e. men, machine,
material, money and methods and, this is possible only when there proper
direction, coordination and integration of the processes and activities, to achieve
the desired results.
2. What are the features of Management?
Ans: Management is the process of setting and reaching goals
effectively and efficiently. Management process has some qualities
or features;
1. Management is Associated with Group Efforts
2. Management is Purposeful
3. Management is Accomplished Through the Efforts of Others
4. Management is Goal-oriented
5. Management is Indispensable
6. Management is Intangible
7. Management can Ensure Better Life
3. What are the levels of Management?
1. Top-Level Management: This is the highest level in the organizational hierarchy,
which includes Board of Directors and Chief Executives. They are responsible for
defining the objectives, formulating plans, strategies and policies.
2. Middle-Level Management: It is the second and most important level in the
corporate ladder, as it creates a link between the top and lower-level
management. It includes departmental and division heads and managers who
are responsible for implementing and controlling plans and strategies which are
formulated by the top executives.
3. Lower Level Management: Otherwise called as functional or operational level
management. It includes first-line managers, foreman, supervisors. As lowerlevel
management directly interacts with the workers, it plays a crucial role in the
organization because it helps in reducing wastage and idle time of the workers,
improving the quality and quantity of output.
The three management levels form the management hierarchy, that represents
the position and rank of executives and managers in the chart.
4.What is Management by objectives
(MBO)?
Ans: Management by objectives (MBO) is a comprehensive
management system based on measurable and participative set
objectives. MBO is now widely practiced all over the world.
But, despite its large-scale application, the meaning of MBO is not
yet always clear.
To some people, it is an appraisal tool; others consider it as a
motivational technique, while others look upon it as an instrument
of planning and control. Management by objectives (MBO) has been
defined by Weihrich and Koontz;
The comprehensive managerial system that integrates many key
managerial activities in a systematic manner and that is consciously
directed toward the effective and efficient achievement of
organizational and individual objectives.
Emphasis on management by objective was not initiated or
originated by any single person. Such management has been
dictated by the prudence or common sense of innumerable people.
However, certain individuals have long placed emphasis on
management by end results.
MBO is a comprehensive management system based on measurable
and participative set objectives. It has come a long way since it was
first suggested by Peter F. Drucker in 1954 as a way of promoting
managerial self-control.
The common factor that has made Management by Objectives
programs so popular in both management theory and practice is the
emphasis on objectives that are both measurable and participative
setting.
MBO is a management technique for increasing employee
involvement in the planning and controlling activities.
Through involvement, it is believed that employee commitment to a
planned course of action will be enhanced and performance will be
more efficient.
Many variations are found in the practice of MBO.
But basically, it is a process through which goals, plans, and control
systems of an organization are defined through collaboration
between managers and their subordinates.
Jointly they identify common goals, define the results expected from
each individual, and use these measurements to direct the
operation of their unit and to assess individual contributions.
In this process, the knowledge and skills of many members of the
organization are pressed into service. Instead of telling subordinates
about their goals, managers ask subordinates to participate and
decide what their goals should be.
After setting up an acceptable set of goals for each employee
through a giveand-take collaborative process, the employee is asked
to play a major role in devising an action plan for achieving these
goals.
In the final stage of the MBO process, employees are asked to
develop control processes, to monitor their own performance and to
suggest corrective measures if deviations from plans do occur.
The entire process is a combination of planning and control.
5.What are the features of MBO?
Ans: In the light of the above definitions of MBO, the following
features of it can be identified;
1. It is a technique and philosophy of management.
2. Objective setting and performance review are made by the
participation of the concerned managers.
3. Objectives are established for all levels of the organization.
4. It is directed towards the effective and efficient accomplishment of
organizational objectives.
5. It is concerned with converting an organizational objective into a
personal objective on the presumption that establishing personal
objectives makes an employee committed which leads to better
performance.
6. The basic emphasis of MBO is on objectives. Management by
Objectives tries to match objectives with resources.
7. Objectives in MBO provide guidelines for appropriate systems and
procedures.
8. A periodic review of performance is an important feature of MBO.
9. MBO provides the means for integrating the organization with its
environment, its subsystems, and people.
10. Employees are provided with feedback on actual performance as
compared to planned performance.
