M &E UNIT 2
Unit -2 Planning and organizing
Question 3 . Answers the following (short question)
1.
Define
planning.
A.
Planning
has been defined previously one of the five major functions of management.
However, since planning is a bridge between the present and the future, it
has been called the primary management function. Planning is particularly important because of scarce
resources and uncertain environment with a fierce competition for these
resources.
Planning is a decision making activity requiring the
process of ascertaining objectives and deciding on activities to attain these
objectives.
It means, “ the determination of what is to be done,
how and where it is to be done how is to do it and how the results are to be
evaluated.”
´ defining goals and objectives.
´ deciding what type of activities the
company will engage in
´ determining the resources needed to
achieve the organization’s goals & objectives.
2.
Discuss
in brief Product based Departmentation.
Departmentation by Product:
In
this case, the units are formed according to the type of Product and is more
useful in multi-line corporations Where product expansion and diversification
and manufacturing and marketing characteristics of the products are of
primary concern. For example, General Motors has six divisions which are
decentralized and independent. These are: Chevrolet, Buick, Pontiac,
Oldsmobile, Cadillac, and GMC trucks. The departmentation by product would be
as follows:
Each division is autonomous and each
division strives to improve and expand its own product line and each
divisional General Manager is responsible for its cost, profits, failures, and
successes. In this type of division, the responsibility as well as
accountability is traceable, thus making the division heads sensitive to
product needs and changing consumer tastes. It thus facilitates the
measurement of managerial as Well as operative results and the contribution
of each product line to the organization’s total profits can be evaluated.
The major disadvantage of this type of
departmentalization is that it promotes fierce internal competition which may
or may not, be healthy and there is a lack of coordination among different
divisions unless the central management retains the policy making and
financial management authority.
A.
3.
Give
meaning of centralization system.
A.
Centralization
is a system of company where authority and powers are divided into few hands.
They take the major decisions for the company and
others follow it.
The degree to which decision making is concentrated
at a single point in the organizations.
Organization in which top managers make all
decisions and lower level employees simply carry out those orders.
Centralization suitable for SSI where employeement
is less.
4.
Briefly
explain matrix structure.
Matrix Organization
Matrix organization is the concept of
project structure but much more complex and comparatively more permanent. It
is used Primarily for unique custom tasks to achieve new and sophisticated
products or services. It requires that diverse technical expertise be
co-ordinated quickly and closely.
These organizations cope With dynamic and rapidly changing conditions much
more efficiently and are used highly successfully in advanced weaponry systems
development and space projects. Greiner sees Matrix organization in which
cross-functional teams are used, as a response to growing complexity
associated with the organizational growth. These complexities both internal
(size, technology), as well external (markets, competitors, collaboration
with other organizations etc.), create problems of information processing and
communications that are best dealt with by Matrix type of organization.
A.
5.
Mention
factors affecting span of control/span of management.
1. Similarity
of functions.
If the subordinates are involved in the
same or similar activities, then it is possible for the manager to supervise
more subordinates. Since the problems that may arise would be similar in
nature, these would be easier to handle. Conversely, if these subordinates
are doing diversified operations, the situation would be more complex and
hence the span of control should be narrow.
2. Complexity
of functions.
If
the operations that the employees are performing are sophisticated and complex
and require constant supervision, then it would be more difficult for the
manager to manage too many employees.
3. Geographical
closeness of employees.
The closer the subordinates are in a
Physical location, the easier it will be for the supervisor to manage more
employees.
4. Direction
and co-ordination.
The Span of control would also
be determined by the degree of coordination required, both within the unit
and with other units of other divisions. If the unit needs continuous
directions and extra time of the manager in coordinating the activities then
fewer subordinates will be better supervised.
5. Capacity
of subordinates.
Subordinates who are trained, developed and experienced, need little
supervision in discharging their duties. In such situations, more
subordinates can be effectively supervised. These subordinates can further be
assisted by providing them with “standing plans” which are applicable in
repetitive actions and recurring problems, requiring less direct supervisory
assistance.
6. The
working staff of the manager.
If the manager has supporting
staff that is equally skilled in handling situation. Then it would be
possible to manage a wider span of control because the responsibilities of
supervision would be shared.
7. planning:
The effectiveness of supervision would also
depend upon how much time managers spend upon planning activities. If the
managers spend too much time in systems planning then they will not have time
to supervise the activities of too many
subordinated.
A.
6.
States
the steps of planning.
A.
Steps
of planning:
Determining the goals or objectives for the entire
organization.
Making assumptions on various elements of the
environment.
To decide the planning period.
Examine alternative courses of actions.
Evaluating the alternatives.
Real point of decision making
To make derivative plans.
7.
Enlist
the types of organizational structure.
A.
1.
Product structure
2. Functional structure
3. Processed structure
4. Geographical structure
5. Line structure
6. Line and staff structure
7. Tall and flat structure
8. Wide and narrow structure
9. Matrix structure
8.
Mention
any two differences between centralization and decentralization.
A.
9.
Give
meaning of span of management.
A.
Span
of management also know as span of control it means how many employees can
be handle by effectively and
efficiently.
The number of employees handle by a single manager
is know as his span (area)
Ex, in Pepsi company the span are is 1:56
10. Briefly explain line organization
structure.
Line Organization
This is the simplest type 0f organization
where the authority is embedded in the hierarchical structure, and it
flows in a direct line from the top of
the managerial hierarchy down to different levels of managers and
subordinates and down to the operative level of workers. It clearly identifies
authority, responsibility, and accountability at each level. These
relationships in the hierarchy connect the position and tasks of each level
with those above and below it. There is clear unity of command so that a
person at each level is independent of any other man at the same level but
only is responsible to the person, above him. The line personnel are directly
involved in achieving the objectives of the company.
This type of organizational structure is
specially useful when the company .is small in size and the employees have a
sense of belonging and they become involved. Also, the decision making
process is easier and quicker. A simple line structure is given below.
A.
11. Give meaning of corporate planning and
functional planning.
A.
Corporate
planning
Corporate planning is prepared by top level
management and it cover the entire organization.
Functional planning
This planning formulated for major functions of the
department. Functional planning likes production, planning, sales &
marketing planning, human resources planning & financial planning.
12. Provide meaning of decentralization
system.
A.
Decentralization
is a system of company where authority and powers are divided into more
hands.
They jointly take major decisions for the company
and also enjoy the freedom of power.
Organizations in which decision making is pushed
down to the managers who are closest to the action.
Decentralization suitable for large scale industry
where employeement is more.
13. Briefly explain flat organizational
structure.
A.
Flat
organizational structure have fewer management level at which controlling a
board area or group.
It focus on empowering employees rather than
adhering to the chain of command
By encouraging autonomy and self direction flat
structure attempt to tap into create challenges to solve problems by
collaboration.
14. Write advantages and disadvantages of
centralization system.
A.
Advantages
Used in small scale industry
Quick decision making is possible
Suitable in emergency
Disadvantages
Few people can enjoy authorities and power as well
as less chance of advancement and growth.
15. Enlist the types of Departmentation.
A.
There
are following:
Departmentation by function
Departmentation by product
Departmentation by customers
Departmentation by area
Departmentation by time
16. Provide importance of planning.
A.
Importance
of planning
1.
Primary
of planning
2.
To
focus attention on objectives
3.
To
offset uncertainty and change
4.
To
help in coordination
5.
To
help in control
6.
To
increase organizational effectiveness
17. Briefly explain process Departmentation.
A.
Departmention
involves grouping of people or activities with similar characteristics into a
single department or unit. This facilitates communication, coordination and
control, thus contributing to organizational success. It creates semi-autonomous units with independent
responsibilities, providing satisfaction to the managers which in turn
improves efficiency and effectiveness. Additional, it facilities control and
supervision thus making the expansion of the organization easier to handle.
18. States the advantages and disadvantages to
decentralization system.
A.
Advantages
Used in large scale industry
More people can enjoy the power and authority
More chance for development
People can enjoy involvement in top management
Poorer decision can be mutually possible
Disadvantage
Quick decision making is not possible
Time consuming system
19. Explain in brief tall organizational
structure.
A.
Tall
structure:
Large complex organization often require a taller
hierarchy.
It similest from a tall structure reasons is a long
chain age.
Compound and similar to the military.
As an organization groove taller
In a tall structure managers from many rank and each
has a small are of control although fall structure.
There is no structure draw line between two
employees.
20. Give meaning of long term planning and
short term planning.
A.
Long
term Planning
Long term planning also cover the whole
organization.
Time period of this planning is 1 year to 10-20
years.
Short term Planning
Time period 1 year duration or
less.
21. Define the term ‘Organizing’.
It refers to the symmetric arrangement of different
aspects of the business operation to which the plane objective.
Organization is the process of so combining the work
which individual or groups have to perform with the facilities necessary for
its execution, that the duties so performed provide the best channels for the
efficient, symmetric, positive and coordinated application of the available
efforts.
22. Briefly explain Departmentation by
territories/Geographic.
Departmentation by area:
If
an organization serves different graphical areas, the division may be based
on geographical bash It is specially useful for large scale enterprises which
are geographically spread out such as banking, insurance, chain stores or a
product which is nationally distributed. For example, a Vice-President of
Marketing may be responsible for promotion of the product in Eastern Region,
North Western Region, Southern Region etc. In case of multi-national
organizations, the divisions may be European, Division, Middle East Division,
Far East Division etc., with head office in “the United States, as shown
below:
In these cases, the local population is
served by the divisional personnel while the policies are formulated at the
headquarters. T3local management is in close contact with the people, taking
advantage of the local factors such as customs, culture, styles, and
preferences. The one problem is the difficulty in communications which can
delay important decisions and create problems with coordination of
inter-related activities.
23. Provide meaning of wide and narrow span
of management.
|
Narrow span management
Allows for closer supervision
More cause in the hierarchy may be required
Help more communication
Wide span management
Give subordinatites the chance for more independence
More appropriate if labour costs
are significant
Reduce member of manager
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