IGNOU| MANAGEMENT THEORY (ECO - 03)| SOLVED PAPER – (DEC - 2022)| (BDP)| ENGLISH MEDIUM
BACHELOR'S DEGREE PROGRAMME
Term-End Examination
December - 2022
(ELECTIVE COURSE: COMMERCE)
ECO-03
MANAGEMENT THEORY
Time: 2 hours
Maximum Marks: 50
(Weightage: 70%)
Note: Attempt any five questions. All questions carry
equal marks.
हिंदी माध्यम: यहां क्लिक करें
1. What do you mean by Management? Discuss the social responsibilities of management. 3+7
Ans:- Management is the process of planning,
organizing, leading and controlling human and material resources to achieve
organizational goals.
It covers a
wide range of activities, including:-
Planning,
organizing, leading, controlling, deciding, motivating, staffing.
Management is
the foundation of every organization. It often involves the deployment and
manipulation of human resources, financial resources, technological resources,
and natural resources.
Peter Drucker is
known as the "Father of Management" because of his contributions to
management theory and practice. He was among the first management thinkers who
suggested that management is a separate science that requires specialized
knowledge and skills.
Management can
be defined as the process of carrying out the work or tasks necessary to
achieve the goals of an organization in an efficient and effective manner.
Process refers to the functions of management. That is, planning, organizing, staffing,
directing and controlling.
Social
responsibilities of management refer to the moral and ethical obligations that
organizations have towards society. Social responsibility is a defining feature
of capitalism.
Social
responsibility management is the process of organizing and overseeing efforts
to improve the community and address social issues.
Some of the
social responsibilities of management include:-
(i) To be
responsible not only towards the shareholders but also towards the entire
community
(ii) To conduct
business affairs legally
(iii) To pay
all taxes and dues honestly
(iv) Not to
corrupt public officials for self-interest
(v) To comply
with the political and legal environment of the country
(vi) To
consider the protection of the environment
(vii) Taking
steps to reduce carbon footprint
Socially
responsible company managers make decisions that maximize profits and protect
the interests of the community and society as a whole.
Social
responsibility means that in addition to maximizing shareholder value,
businesses should operate in a way that benefits society. Socially responsible
companies should adopt policies that promote the well-being of society and the
environment while minimizing their negative impacts.
2. (a) Describe the importance of planning in an
organisation. 5
Ans:- Planning is important in an organization because:-
(i) Set
goals: Planning helps organizations to set goals and objectives.
(ii)
Provide direction: Planning provides direction as to how, what, when and by
whom the work is to be done.
(iii)
Reduce uncertainties: Planning can help in reducing future uncertainties.
(iv)
Improving performance: Planning can help in improving organizational
performance by streamlining operations, optimizing time management and
efficiently leveraging resources.
(v)
Encourage new ideas: Planning can encourage new ideas.
(vi) Ensure
effective control: Planning can ensure effective control.
Other
benefits of the scheme include:-
(i) Effective
use of resources
(ii) To bring
efficiency
(iii) To bring
coordination
(iv) To help
employees know what the organization has to do and what they should do to
achieve the goals
(v) Helping
people understand work priorities and make better adjustments when they are “on
fire.”
The planning
process provides the information that top management needs to make effective
decisions about the allocation of resources that will enable the organization
to reach its objectives. Productivity is maximized, and resources are not
wasted on projects with low probability of success.
(b) Discuss
the limitations of planning. 5
Ans:- Some
limitations of planning include:-
(i)
Rigidity: There may be rigidity in planning, making it difficult to change
plans.
(ii) Cost:
Planning can be expensive as it involves hiring specialized professionals,
doing research and calculating numbers.
(iii) Time:
Planning may take time.
(iv)
Creativity: Planning may reduce creativity.
(v) Dynamic
Environment: Planning cannot work in dynamic environment because it cannot
forecast everything.
(vi)
Success: Planning does not guarantee success.
(vii)
Inaccuracy: Planning is based on predictions, which may not be completely
accurate.
Other
limitations of planning include:- Political environment, labor unions.
Planning is an
essential part of doing business and a major managerial activity. This can help
reduce uncertainty and risk.
3. Distinguish between between formal and informal
organisations. Explain the functions of the informal organisation. 3+7
Ans:- Formal and informal organizations differ in
several key aspects. Formal organizations have defined structures, established
hierarchies, and clear lines of authority, while informal organizations rely on
social ties, personal relationships, and informal networks. Formal
organizations follow specific rules and regulations, while informal
organizations operate on the basis of shared norms and mutual trust. The level
of flexibility, communication patterns, decision-making processes and
accountability also vary significantly between the two.
|
Formal organization |
Informal organization |
|
(i)
Centralized authority (ii) Clearly
defined roles and responsibilities (iii) formal,
written communication (iv)
Established rules and procedures (v) On the
basis of official contracts and agreements (vi)
goal-oriented (vii) Stable
and predictable (viii)
Operates within specific working hours (ix) Decision
making usually happens from top to bottom (x)
Encourages competition |
(i)
Decentralized, no central authority (ii) Roles
develop on the basis of relationships (iii) casual,
often verbal communication (iv) No fixed
rules, flexibility (v) Based on
personal relationships and common interests (vi)
Relationship-centric (vii) Dynamic
and developing (viii) Can
work anytime (ix) Decision
making is often based on consensus (x) Promotes
cooperation |
Informal
organizations have many functions, which include:-
(i)
Maintaining cultural values: Informal organizations can maintain cultural
values.
(ii)
Providing social satisfaction: Informal organizations can provide social
satisfaction to the members.
(iii)
Promoting communication: Informal organizations can develop a communication
channel to keep members informed.
(iv)
Encouraging delegation: Informal organizations can encourage delegation,
decentralization and greater worker support.
(v) Providing
social support: Informal organizations can act as a support system for
employees.
Other
functions of informal organizations include:-
(i) Providing
clear reporting relationships
(ii) Focusing on
work performance
(iii) Having
unplanned structure
(iv)
Strengthening social needs
(v) To provide a
sense of belonging
The primary
function of informal organizations is basically to maintain the cultural values
of the people. When people are able to connect with each other socially, they
always feel a sense of togetherness. As a result, another function of informal
organizations is to provide social satisfaction to the members.
Finally, an
informal organization also provides an effective means of communication to its
members. They can interact with each other freely and efficiently. Managers can
use it to send quick and direct messages.
It provides a
source of friendship and social interaction for members of the organization.
Second, interpersonal relationships and informal groups help employees feel
better informed and connected about what is going on in their firm, thus giving
them some sense of control over their work environment.
4. Define Motivation. Explain its importance to a modern
organisation. Point out the difference between positive and negative
motivation. 2+3+5
[COMING SOON]
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