Marking scheme for class XII Board exams (2010-2011)
Chapter1. Nature and significance of management 7 marks
Chapter2. Principles of Management 7 marks
Chapter3. Business Environment 5 marks
Chapter4. Planning 7 marks
Chapter5. Organising 8 marks
Chapter6. Staffing 10 marks
Chapter7. Directing 10 marks
Chapter8. Controlling 6 marks
Chapter9. Business Finance 12 marks
Chapter10. Financial markets 8 marks
Chapter11. Marketing Management 14 marks
Chapter12. Consumer Protection 6 marks
Monday, December 6, 2010
Sunday, August 30, 2009
Staffing
Staffing
An organisation can achieve its objectives only when it has right people in the right positions. Staffing is that part of the process of management which is concerned with obtaining, utilizing and maintaining a satisfactory and satisfied work force.
Staffing has been described as the managerial function of filling and keeping filled the positions in the organisation structure.
Importance of staffing
Since the right people have to be chosen while selecting a person, the human element is very important. Staffing provides the human element or instinct while selecting. The attitude, aptitude, commitment, loyalty are important qualities perceived by the enterprise.
Human resource is the foundation of any business. The right people can help you take your business to the top; the wrong people can break your business. Hence staffing is the most fundamental and critical to organizational performance.
The staffing function has assumed greater importance these days because of
· Rapid advancement of technology
· Increasing size of organisation and
· Complicated behavior of human beings
No organisation can be successful unless it has the right kind of people at different job positions.
Staffing ensures the following benefits to the organizations:
1. It helps in finding and placing competent personnel at various jobs.
2. It ensures higher performance by placing right person at the right job.
3. By appointing efficient staff, it ensures continuous survival and growth of the organisation.
4. It ensures optimum utilization of human resource. Through manpower planning and job analysis we can find out the number and type of employees required. So there are no chances of overmanning and shortage of personnel.
5. Objective assessments and fair rewards improve job satisfaction and morale of employees. Such efficient staff helps to win over the competitors..
An organisation can achieve its objectives only when it has right people in the right positions. Staffing is that part of the process of management which is concerned with obtaining, utilizing and maintaining a satisfactory and satisfied work force.
Staffing has been described as the managerial function of filling and keeping filled the positions in the organisation structure.
Importance of staffing
Since the right people have to be chosen while selecting a person, the human element is very important. Staffing provides the human element or instinct while selecting. The attitude, aptitude, commitment, loyalty are important qualities perceived by the enterprise.
Human resource is the foundation of any business. The right people can help you take your business to the top; the wrong people can break your business. Hence staffing is the most fundamental and critical to organizational performance.
The staffing function has assumed greater importance these days because of
· Rapid advancement of technology
· Increasing size of organisation and
· Complicated behavior of human beings
No organisation can be successful unless it has the right kind of people at different job positions.
Staffing ensures the following benefits to the organizations:
1. It helps in finding and placing competent personnel at various jobs.
2. It ensures higher performance by placing right person at the right job.
3. By appointing efficient staff, it ensures continuous survival and growth of the organisation.
4. It ensures optimum utilization of human resource. Through manpower planning and job analysis we can find out the number and type of employees required. So there are no chances of overmanning and shortage of personnel.
5. Objective assessments and fair rewards improve job satisfaction and morale of employees. Such efficient staff helps to win over the competitors..
Sunday, August 23, 2009
Importance of decentralisation
Importance of decentralisation
1. Develops initiative among subordinates: When the lower level managers are given freedom to take their own decisions they learn to depend on their own judgment. They keep facing challenges and take initiative to develop solutions for them. It also helps in identifying those executives who have the necessary potential to become dynamic leaders.
2. Develops managerial talent for the future: When the work is passed on to the employees it gives them opportunity to use their talents and increases their experience of handling work independently. This gives them a chance to prove their abilities and prepares qualified manpower who can be promoted to the vacant positions. It also helps to identify those who may not be successful in assuming greater responsibility.
3. Quick decision making: Through decentralisation, the decision making power is entrusted to all the managers. This leads to faster decision making because employees near the point of action need not take approval from the higher level and can take their own decisions. So the process is much faster.
4. Relief to top management: in the process of decentralisation, top level managers are not overburdened with the responsibility and authority as they systematically pass the authority and responsibility at different levels and they become free to concentrate on more important issues.
5. Facilitates growth: Decentralisation means greater freedom to lower levels as well as divisions and departments. This develops a sense of competition among them where each one tries to do better than the other. Thus their productivity levels increase and they generate greater returns for the organization.
6.Better control:
1. Develops initiative among subordinates: When the lower level managers are given freedom to take their own decisions they learn to depend on their own judgment. They keep facing challenges and take initiative to develop solutions for them. It also helps in identifying those executives who have the necessary potential to become dynamic leaders.
2. Develops managerial talent for the future: When the work is passed on to the employees it gives them opportunity to use their talents and increases their experience of handling work independently. This gives them a chance to prove their abilities and prepares qualified manpower who can be promoted to the vacant positions. It also helps to identify those who may not be successful in assuming greater responsibility.
3. Quick decision making: Through decentralisation, the decision making power is entrusted to all the managers. This leads to faster decision making because employees near the point of action need not take approval from the higher level and can take their own decisions. So the process is much faster.
4. Relief to top management: in the process of decentralisation, top level managers are not overburdened with the responsibility and authority as they systematically pass the authority and responsibility at different levels and they become free to concentrate on more important issues.
5. Facilitates growth: Decentralisation means greater freedom to lower levels as well as divisions and departments. This develops a sense of competition among them where each one tries to do better than the other. Thus their productivity levels increase and they generate greater returns for the organization.
6.Better control:
Decentralization
Decentralization
Decentralization means delegation of authority at every level. It is the even and systematic distribution of decision making authority to the lowest level of management. Under decentralization every employee working at different levels gets some share in the authority. Decentralization is a policy matter and managers plan in advance whether to go for centralized or decentralized policy.
Relation between delegation and decentralization
Decentralisation is the extension of delegation. In delegation, we multiply the authority by two whereas in decentralization, the authority is multiplied by many because systematic delegation taking place at every level will result in evenly distribution of authority and responsibility at every level and result in decentralistion. If delegation is restricted to certain levels only then there will be no complete decentralization also.
For example if the director gives the responsibility to production head to complete the target of 50,000 units per annum, and authorize him to hire the required workers, decide their salaries and working conditions.
The production head further shares his authority and responsibility with production manager to achieve the target and select the workers.
The production manager in turn shares with the supervisor to select the workers.
This sharing of authority and responsibility between the director, production head, production manager and the supervisor will result in systematic distribution of authority at every level automatically. Thus we say that delegation leads to decentralization.
Relation between centralization and decentralisation
An organization is centralized when decision making authority is retained by higher management whereas it is decnetralised when the authority is delegated.
Complete centralization means concentration of all decision making authority at the top level in the management hierarchy. On the other hand complete decentralisation implies the delegation of all decision making authority to the lower level of the hierarchy. Both these situations are unrealistic. An organization can never be completely centralized or decentralized. As it grows in size and competency, there is a tendency to move towards decentralisation. This is because in large organizations, those employees who are closely involved with the operations tend to have more knowledge about them than the top management. Hence there is a need for a balance between these co-existing forces.
Decentralization means delegation of authority at every level. It is the even and systematic distribution of decision making authority to the lowest level of management. Under decentralization every employee working at different levels gets some share in the authority. Decentralization is a policy matter and managers plan in advance whether to go for centralized or decentralized policy.
Relation between delegation and decentralization
Decentralisation is the extension of delegation. In delegation, we multiply the authority by two whereas in decentralization, the authority is multiplied by many because systematic delegation taking place at every level will result in evenly distribution of authority and responsibility at every level and result in decentralistion. If delegation is restricted to certain levels only then there will be no complete decentralization also.
For example if the director gives the responsibility to production head to complete the target of 50,000 units per annum, and authorize him to hire the required workers, decide their salaries and working conditions.
The production head further shares his authority and responsibility with production manager to achieve the target and select the workers.
The production manager in turn shares with the supervisor to select the workers.
This sharing of authority and responsibility between the director, production head, production manager and the supervisor will result in systematic distribution of authority at every level automatically. Thus we say that delegation leads to decentralization.
Relation between centralization and decentralisation
An organization is centralized when decision making authority is retained by higher management whereas it is decnetralised when the authority is delegated.
Complete centralization means concentration of all decision making authority at the top level in the management hierarchy. On the other hand complete decentralisation implies the delegation of all decision making authority to the lower level of the hierarchy. Both these situations are unrealistic. An organization can never be completely centralized or decentralized. As it grows in size and competency, there is a tendency to move towards decentralisation. This is because in large organizations, those employees who are closely involved with the operations tend to have more knowledge about them than the top management. Hence there is a need for a balance between these co-existing forces.
Sunday, August 16, 2009
Importance of delegation
Importance of delegation
1. Effective management: By delegation, managers pass their routine work to their subordinates. So they get more time to concentrate on more important matters. This will help them to excel in new areas and be more efficient and effective.
2. Employee development: In the process of management, the work is passed on to the employees. This gives them opportunity to use their talents and increases their experience. It makes them better leaders and decision makers. Thus delegation helps in preparing better future managers.
3. Motivation of employees: When a superior passes on the responsibility to his subordinate, it is not merely sharing work but also sharing trust. This develops a feeling of belongingness and commitment for the subordinate. It improves his confidence and he feels encouraged to improve his performance.
4. Facilitation of growth: While passing on a responsibility and authority managers have to take care of the qualification and capability of the employee. This division of work and specialization provides a ready work force to take the leading position in a new venture and thus help in the expansion of the enterprise.
5. Basis of management hierarchy: Delegation establishes authority responsibility relationships between employees. The degree and flow of authority determines who is to report to whom. It also decides the power enjoyed by each job position in the organization.
6. Better coordination: Authority, responsibility and accountability help to define the powers, duties and answerability related to various job positions in an organization. This helps to avoid overlapping and duplication of efforts and thus helps in maintaining coordination amongst departments and functions of management.Importance of delegation
1. Effective management: By delegation, managers pass their routine work to their subordinates. So they get more time to concentrate on more important matters. This will help them to excel in new areas and be more efficient and effective.
2. Employee development: In the process of management, the work is passed on to the employees. This gives them opportunity to use their talents and increases their experience. It makes them better leaders and decision makers. Thus delegation helps in preparing better future managers.
3. Motivation of employees: When a superior passes on the responsibility to his subordinate, it is not merely sharing work but also sharing trust. This develops a feeling of belongingness and commitment for the subordinate. It improves his confidence and he feels encouraged to improve his performance.
4. Facilitation of growth: While passing on a responsibility and authority managers have to take care of the qualification and capability of the employee. This division of work and specialization provides a ready work force to take the leading position in a new venture and thus help in the expansion of the enterprise.
5. Basis of management hierarchy: Delegation establishes authority responsibility relationships between employees. The degree and flow of authority determines who is to report to whom. It also decides the power enjoyed by each job position in the organization.
6. Better coordination: Authority, responsibility and accountability help to define the powers, duties and answerability related to various job positions in an organization. This helps to avoid overlapping and duplication of efforts and thus helps in maintaining coordination amongst departments and functions of management.Importance of delegation
Delegation
Delegation
Delegation is defined as ‘a process of entrusting responsibility and authority to the subordinates and creating accountability on those who are entrusted with the authority and responsibility.’
Delegation means downward transfer of authority from a superior to subordinate. It is required for efficient functioning of the organization as well as enables the manager to use his time on high priority work. It helps the subordinate to satisfy his needs.
However it is not the process of abdication. The manager shall still be responsible for the performance of the job assigned to him. Moreover, the authority delegated to a person can be taken back and redelegated to another person. Thus, irrespective of the authority delegated, the manager will still be accountable to his senior.
Elements of Delegation
1.Responsibility: It means the obligation of the subordinate to properly perform the work assigned to him. The process of delegation begins when the manager passes on some of his responsibilities to his subordinates which mean that responsibility can be delegated.
However, when an employee is given the responsibility of some job, he must also be given the requisite authority to carry out his job.
2.Authority: It means power to take decision. It also refers to the right of an individual to command his subordinates within the scope of his position.
When the managers are passing their responsibilities to the subordinates, they also pass some authority matching the responsibility. However they should not pass all their authority to their subordinate.
3.Accountability: It implies answerability of the subordinate for accomplishment or non accomplishment of job assigned. Once, the authority has been delegated and responsibility accepted, one cannot deny accountability. Accountability can only be shared with the subordinate, it cannot be delegated and it flows upwards.
It indicated that the manager must ensure proper discharge of duties by his subordinates. The subordinate is expected to explain the consequences of his actions and omissions.
Thus it can be stated that while the authority can be delegated, responsibility is assumed and accountability is imposed.
Delegation is not the process of abdication
This means that accountability is absolute. It can never be passed or delegated. Even after creating accountability on subordinates, the superiors also remain answerable. For example, if the sales manager is assigned a target of selling 1000 units in one month, and he divided this target among 5 salesmen under him. At the end of the month, if only 80 units could be sold, he can not escape his accountability. Though he had passed this target to his subordinates, still he cannot get rid of his accountability. He should have checked the performance from time to time to make sure that the work is going on in the right direction and taken timely action.
Delegation is defined as ‘a process of entrusting responsibility and authority to the subordinates and creating accountability on those who are entrusted with the authority and responsibility.’
Delegation means downward transfer of authority from a superior to subordinate. It is required for efficient functioning of the organization as well as enables the manager to use his time on high priority work. It helps the subordinate to satisfy his needs.
However it is not the process of abdication. The manager shall still be responsible for the performance of the job assigned to him. Moreover, the authority delegated to a person can be taken back and redelegated to another person. Thus, irrespective of the authority delegated, the manager will still be accountable to his senior.
Elements of Delegation
1.Responsibility: It means the obligation of the subordinate to properly perform the work assigned to him. The process of delegation begins when the manager passes on some of his responsibilities to his subordinates which mean that responsibility can be delegated.
However, when an employee is given the responsibility of some job, he must also be given the requisite authority to carry out his job.
2.Authority: It means power to take decision. It also refers to the right of an individual to command his subordinates within the scope of his position.
When the managers are passing their responsibilities to the subordinates, they also pass some authority matching the responsibility. However they should not pass all their authority to their subordinate.
3.Accountability: It implies answerability of the subordinate for accomplishment or non accomplishment of job assigned. Once, the authority has been delegated and responsibility accepted, one cannot deny accountability. Accountability can only be shared with the subordinate, it cannot be delegated and it flows upwards.
It indicated that the manager must ensure proper discharge of duties by his subordinates. The subordinate is expected to explain the consequences of his actions and omissions.
Thus it can be stated that while the authority can be delegated, responsibility is assumed and accountability is imposed.
Delegation is not the process of abdication
This means that accountability is absolute. It can never be passed or delegated. Even after creating accountability on subordinates, the superiors also remain answerable. For example, if the sales manager is assigned a target of selling 1000 units in one month, and he divided this target among 5 salesmen under him. At the end of the month, if only 80 units could be sold, he can not escape his accountability. Though he had passed this target to his subordinates, still he cannot get rid of his accountability. He should have checked the performance from time to time to make sure that the work is going on in the right direction and taken timely action.
Formal and Informal organization
Formal and Informal organization
Formal Organisation
When the managers are carrying on the organizing process then as a result, an organizational structure is created to achieve systematic working and efficient utilization of resources. This type of structure is known as formal organizational structure.
This structure clearly spells out the job, authority, and responsibility assigned to each individual, the superior subordinate relationship and their designations.
The features of such a structure are:
1. This structure is created deliberately created by the process of organizing.
2. The purpose of the structure is to achieve organizational goals.
3. It gives more emphasis to work than to interpersonal relationships among employees.
4. Each individual is assigned a specific job and a fixed authority. Various job positions and their interrelationships are clearly defined. This clarifies who is to report to whom.
5. It results into the creation of a scalar chain. Efforts if different departments are coordinated, interlinked and integrated.
Advantages
1. It helps in effective accomplishment of goals by clearly defining the job role of each employee.
2. It is easy to fix responsibility as mutual relationships are clearly defined.
3. There is no overlapping or duplication of work as work is systematically divided among various departments and individuals.
4. Unity of command is maintained through an established scalar chain.
5. It provides stability to the organization since the behavior of members can be fairly predicted.
Limitations
1. Because of scalar chain, communication is generally slow, leading to delay in action.
2. It does not give importance to the social and psychological needs of the employees. This may lead to demotivation.
3. It places more emphasis on structure and work, and so it ignores human relations, creativity and talent.
Informal structure
In the formal structure, individuals are assigned certain job positions. While working on these job positions, the individuals interact with each other and develop some social and friendly relations in the organization. This network of social and friendly groups forms another structure in the organization which is called the informal structure.
Informal structure gets created automatically and spontaneously for getting psychological satisfaction. However, the existence of such organization depends upon the existence of formal structure. So, if there is no formal structure, there will be no job positions, there will be no people working on these job positions, and there will be no informal structure.
Features of informal structure are:
1. It gets created automatically without any deliberate efforts by the management.
2. The existence depends upon formal organization. It originates from within formal organization as a result of personal interactions among employees.
3. It does not follow any fixed path of authority or communication. So there is no specific direction of flow of information.
4. There are no officially laid down norms of behavior. There is no definite structure. The source of information cannot be known
Formal Organisation
When the managers are carrying on the organizing process then as a result, an organizational structure is created to achieve systematic working and efficient utilization of resources. This type of structure is known as formal organizational structure.
This structure clearly spells out the job, authority, and responsibility assigned to each individual, the superior subordinate relationship and their designations.
The features of such a structure are:
1. This structure is created deliberately created by the process of organizing.
2. The purpose of the structure is to achieve organizational goals.
3. It gives more emphasis to work than to interpersonal relationships among employees.
4. Each individual is assigned a specific job and a fixed authority. Various job positions and their interrelationships are clearly defined. This clarifies who is to report to whom.
5. It results into the creation of a scalar chain. Efforts if different departments are coordinated, interlinked and integrated.
Advantages
1. It helps in effective accomplishment of goals by clearly defining the job role of each employee.
2. It is easy to fix responsibility as mutual relationships are clearly defined.
3. There is no overlapping or duplication of work as work is systematically divided among various departments and individuals.
4. Unity of command is maintained through an established scalar chain.
5. It provides stability to the organization since the behavior of members can be fairly predicted.
Limitations
1. Because of scalar chain, communication is generally slow, leading to delay in action.
2. It does not give importance to the social and psychological needs of the employees. This may lead to demotivation.
3. It places more emphasis on structure and work, and so it ignores human relations, creativity and talent.
Informal structure
In the formal structure, individuals are assigned certain job positions. While working on these job positions, the individuals interact with each other and develop some social and friendly relations in the organization. This network of social and friendly groups forms another structure in the organization which is called the informal structure.
Informal structure gets created automatically and spontaneously for getting psychological satisfaction. However, the existence of such organization depends upon the existence of formal structure. So, if there is no formal structure, there will be no job positions, there will be no people working on these job positions, and there will be no informal structure.
Features of informal structure are:
1. It gets created automatically without any deliberate efforts by the management.
2. The existence depends upon formal organization. It originates from within formal organization as a result of personal interactions among employees.
3. It does not follow any fixed path of authority or communication. So there is no specific direction of flow of information.
4. There are no officially laid down norms of behavior. There is no definite structure. The source of information cannot be known
Advantages
1. Informal communication does not follow scalar chain and so there can be faster spread of communication.
2. It helps to fulfill the social needs of members and gives them a sense of belongingness and motivation.
3. It helps the top level manager to know the real feedback of employees. This information can be made use of to fulfill organizational objectives.
Disadvantages
1. It may sometimes work against the interests of formal organization and spread rumors.
2. Sometimes the informal structure may oppose the policies and changes of management, and then it becomes very difficult to implement them in organization.
3. It may force the members to follow group norms. This may be harmful to the interest of the organization.
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