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Principles & Practices of Management (B-101)

Section A

Part One

1. A
2. B
3. D
4. A
5. A
6. C
7. B
8. D
9. A
10. D

Part Two

1. Maslows hierarchy of needs is a theory in psychology proposed by Abraham Maslow in his

1943 paper "A Theory of Human Motivation" in Psychological Review.

Maslow focused on the psychological needs of employees. Maslow put forward a theory that
there are five levels in a hierarchy of human needs that employees need to have fulfilled at work.

All of the needs are structured into a hierarchy and only once a lower level of need has been fully
met, would a worker be motivated by the opportunity of having the next need up in the hierarchy
satisfied. For example a person who is dying of hunger will be motivated to achieve a basic wage
in order to buy food before worrying about having a secure job contract or the respect of others.
A business should therefore offer different incentives to workers in order to help them fulfill
each need in turn and progress up the hierarchy. Managers should also recognize that workers are
not all motivated in the same way and do not all move up the hierarchy at the same pace. They
may therefore have to offer a slightly different set of incentives from worker to worker.

Key summary for Maslow:

Workers motivated by having each level of need met in order as they move up the
Levels of needs are: Physical, Security, Social, Self-esteem, Self-fulfillment
Workers must have lower level of needs fully met by firm before being motivated by next

2. Management by objectives (MBO) is a management model that aims to improve

performance of an organization by clearly defining objectives that are agreed to by both
management and employees. According to the theory, having a say in goal setting and action
plans should ensure better participation and commitment among employees, as well as alignment
of objectives across the organization. The term was first outlined by management guru Peter
Drucker in 1954 in his book "The Practice of Management."

The objectives must meet five criteria: they must be

(1) Arranged in order of their importance

(2) Expressed quantitatively, wherever possible
(3) Realistic
(4) Consistent with the organization's policies
(5) Compatible with one another.

A key tenet of management by objectives is the establishment of a management information

system to measure actual performance and achievements against the defined objectives. The
major benefits of MBO are that it improves employee motivation and commitment, and ensures
better communication between management and employees. However, an oft-cited weakness is
that MBO unduly emphasizes the setting of goals to attain objectives, rather than working on a
systematic plan to do so.

3. Difference between Coordination and Cooperation

Co-ordination is an orderly arrangement of efforts to provide unity of action in the fulfillment of
common objective whereas co-operation denotes collective efforts of persons working in an
enterprise voluntarily for the achievement of a particular purpose. It is the willingness of
individuals to help each other.
Co-ordination is an effort to integrate effectively energies of different groups whereas co-
operation is sort to achieve general objectives of business.

Therefore, existence of co-operation may prove to be effective condition or requisite for co-
ordination. But it does not mean that co-ordination originates automatically from the voluntary
efforts of the group of members. It has to be achieved through conscious & deliberate efforts of
managers, therefore to conclude we can say that co-operation without co-ordination has no fruit
and co-ordination without co-operation has no root.

Let us take a simple example, to understand the difference between coordination and cooperation
better. Imagine that a group of people are attempting to move a heavy object. They are working
together to achieve a common goal. So we can say that there is cooperation in their attempt. But
in order to move to the object, cooperation is not merely enough. One of them must coordinate
the others in the group, in order to make their attempt successful. The coordinator must give
proper directions to the group members to apply the right amount of force, at the right time and
at the right place. This is the difference between coordination and Cooperation.

4. Acceptance Theory

The "acceptance theory" is a philosophy which argues that "authority does not depend as much
on 'persons of authority' who give orders as on the willingness of those who receive the orders to
comply with them. This idea combines both the traditional approach to management of a "top-
down" structure where subordinates are to comply with the decisions of management. Yet, it is
also embracing a more modern understanding of management, where this compliance is not blind
and done without some level of questioning. 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. In the "acceptance theory" model of management, the company's superiors must have
a rapport with their subordinates so that this communication is evident, for their understanding
and willingness to accept decisions, comply with policy, and fulfill management vision is
essential. 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.

Acceptance Theory was propounded by the chestar barnard. This theory states that authority is
the power that is accepted by others. Formal authority is reduced to normal authority if it is not
accepted by the subordinates. The subordinates accept the authority if the advantages to be
derived by its acceptance exceed the disadvantages resulting from its refusal. The subordinates
give obedience to the managers. According to Barnard, four factors will affect the willingness of
employees to accept authority.
The employees must understand the communication.
The employees accept the communication as being consistent with the organisations
The employees feel that their actions will be consistent with the needs and the desires of
the other employees.
The employees feel that they are mentally and physically able to carry out the order.

According to acceptance theory, authority flows from bottom to top. A manager has authority if
he gets obedience from the subordinates. Subordinates obey the manager because of the fear of
losing financial rewards. This theory emphasizes sanctions that a manager can use and overlooks
the influence of social institutions like trade unions.

Section B

Caselet 1

1. Critically Analyze Mr. Vincents reasoning:

In spite of following the traditional management skills, Mr. Vincent was a good and successful
manager. Professor discussed about various approaches of management that was more than the
traditional routine of Mr. Vincent following. He felt that he very well managed the supermarket,
but the Professor making things complicated. He couldnt take up the concept of knowing the
non-traditional approach towards the management for the test. Because, he was confident or
over-confident that whatever he knows is enough to successfully manage the organization.
However, he was incorrect, as the other skills would not only help him to be successful but also
could expand his business and compete among top supermarkets. The new skills might increase
the profit of the organization and could reduce the wastage. The new techniques might help him
being an innovative or Effective manager. But Mr. Vincent resisting the change, restricting him
from learning or implementing new ways of management apart from traditional way of planning,
organizing and controlling approach to manage his store. He is not finding the course practically
applied or benefitting him in any means

2. If I was the professor and if I know whats going on in Mr. Vincents mind I would explain
him that In todays dynamic and competitive world, a project managers key challenge is coping
with frequent unexpected events. Despite meticulous planning and risk-management processes,
Mr. Vincent may encounter, on a near-daily basis, such events as the failure of workers to show
up at the supermarket, the bankruptcy of a key vendor, a contradiction in the guidelines provided
by two marketing consultants or changes in customers requirements. I would discuss with him
how to apply practically in his supermarkets about various approaches of management that was
more than the traditional routine of Mr. Vincent. I would give some real time examples of the
downfall of great stores like Wall Mart which is following traditional way, old enough to face
the todays market competition with Amazon online stores applying modern techniques. I would
tell him its not enough being a Successful management but also Effective management , he
should accept the change and should be flexible. I would demonstrate, Vincents Supermarket to
pursue the kind of a strategy, it would require a shift from an inside-out perspective of making
money for its shareholders to one of pursuing customer capitalism and adopting an outside-in
perspective that consistently seeks ways to delight its customers. I could educate about
quantitative models, contingency planning and relationship is major need of business. By
applying the newly learned techniques, his organization could grow and be a good competitor to
other organization by using his available resources.

Caselet 2

1. DChuna was an experienced executive but being experienced, good and equal sometimes
might goes against ones self. The problem with DChuna was that he was going too fast in his
work and not giving time to others to catch up. Everyone knew that he was selected because of
his experience, background and abilities. But he should also understand that he was the part of an
organization which was new and not even fully trained for the work so how could they work at
his speed and expectations. The problem with DChuna was that he being an old executive
should know that the employees are emotional in nature, so he should not treat everyone i.e,
male and female staffs in the same manner. He had no right to scold someone on account of
others pending work, because it was his duty to arrange a replacement if someone is on sick
leave. But DChuna didnt do so and went on to scold the female staff. He should have
understood the emotional nature of the female staff when counter argued and sought higher
authority for suggestions.

2. DChuna should have investigated the reason for the female clerk submitting nil returns
immediately after knowing it. He could have properly staffed the replacement for the person on
sick leave that could have control the matter from getting escalated. When the female staff
counter argued with him, he should have taken necessary steps by either consulting higher
authority or emotionally supporting her and understands the cause for her emotional behaviors
could have solved the issue, rather that scolding and firing her. He should have found out the
reason for all the female staff going against him. He should have made the female staffs in the
organization understand the criticality of submitting nil returns and get the work done, rather
than forcefully imposing authority in demanding the work completion. He should understand that
the team is new and are untrained. He should understand that social support from the manager
will very much help all the staffs in enjoying and completing work in time.

Section C

1. The common drawback in classical and NEO classical theories of management

Classical theories of management relate to the earliest theories of management, that really led to
recognition of management and independent discipline of work and study. These included the
ideas of pioneers like Fredrick W. Taylor, Frank Gilbreth. Max Weber, and Henry Fayol. These
theories came into being beginning from late nineteenth century and were considered the core of
management theory till about 1930's.

Neo-classical theories of management developed during 1920's and later. These can be broadly
divides in two groups - theories related to human aspects of management, and quantitative
management techniques.

1) Both theories were based on certain assumptions and in both cases assumptions were found
unrealistic and not applicable to the organizations at a later date
2) Both theories had limited applicability and were not universal in their approach. With the
changing times several other sectors had cropped up and dynamics and working conditions were
changing, whereas both the theories were based primarily on manufacturing sector.
3) Though both the theories were based on human aspect and laid emphasis on it they failed to
take into account all the aspects of the human behavior
4) Both the theories took a rigid and static view of the organization, whereas an organization is
not static but dynamic.
Many management Gurus believe that neo classical theory is just a slight extension of the
classical theory with slight modifications and its bankrupt, because it suggests nothing new.

2. Training and different methods of training

Training is the act of increasing the knowledge and skills of an employee for doing a specific
job. The different methods of training are as follows:

Case Method:
Case studies provide trainees with a chance to analyze and discuss real workplace issues. They
develop analytical and problem-solving skills, and provide practical illustrations of principle or
theory. They can also build a strong sense of teamwork as teams struggle together to make sense
of a case.

Incident Process

For example, if an unfamiliar program is to be implemented, a group discussion on the new

program would allow employees to ask questions and provide ideas on how the program would
work best.

A better form of training than lectures, it allows all trainees to discuss issues concerning the new
program. It also enables every attendee to voice different ideas and bounce them off one another.

Lecture Method

Lectures usually take place in a classroom-format.

It seems the only advantage to a lecture is the ability to get a huge amount of information to a lot
of people in a short amount of time. It has been said to be the least effective of all training
methods. In many cases, lectures contain no form of interaction from the trainer to the trainee
and can be quite boring. Studies show that people only retain 20 percent of what they are taught
in a lecture.

Role Playing

Role playing allows employees to act out issues that could occur in the workplace. Key skills
often touched upon are negotiating and teamwork.A role play could take place between two
people simulating an issue that could arise in the workplace. This could occur with a group of
people split into pairs, or whereby two people role play in front of the classroom.Role playing
can be effective in connecting theory and practice, but may not be popular with people who dont
feel comfortable performing in front of a group of people.


Many avenues exist to train employees. The key is to match the training method to the situation.
Assess each training method implemented in the organization and get feedback from trainees to
see if they learned anything. Then take the results from the most popular and most effective
methods to design a specific training program.