Direction and Co-ordination – Business Management Ethics and Entrepreneurship Notes

Introduction:

Directing involves supervision, communication, leadership to
subordinate and motivating them to constitute their best.
Coordination is the synchronization/unification/integration of the efforts of group members in order to provide unity of action for achieving common goals.
It is hidden force that binds all other management functions.
Management achieves coordination through its basic management functions.
It is not a separate management function but is essence of management and is implicit and inherent in all functions of management.

Direction: Direction is the life-spark of the enterprise.

It is another function of management.
It refers to an initiating function which actuates plans and the organisation.
It involves communicating to the subordinates, leading and motivating them to contribute the best of their capability for achieving the organisational objectives.
It initiates with issuing orders and instructions to the subordinates and getting things done by them along with their satisfaction.
It is a continuous function;

Essential Elements:

Issuing orders and instructions
Guiding, counselling and teaching the subordinates the proper way doing the job.

Supervising the work of subordinates to ensure that their performance conforms to the plan.
Motivating the subordinates to direct their behaviour in a clesirec pattern.
Maintaining discipline and rewarding effective performance.

Concepts of Direction:

Taylor pointed out that effective direction depends upon the, harmony of objectives.’
these are given by Henry Fayol.
having a thorough knowledge of the personnel.
eliminating the incompetent.
being well versed with the agreements binding the business and its employees.
setting a good example.
conducting periodical audit of the organisation and use summarised charts to further this.
bringing together chief assistants through conferences.
infusing unity, energy, initiative and loyalty among the subordinates.
Taylor said that direction depends upon “harmony of objectives”.

Features of Direction:

Important management function. Management is able to initiate action in organisation.
Required at every management level
Continuous process, throughout the life of organisation
Initiated at top level and flows to the bottom level.

Two main objectives:

Helps in getting things done by the subordinates.
Enables the superior to focus on more important work.

importance of Direction:
Initiating Action:
Organisation involves both human and non-human resources. It initiates the individual’s action by motivating them to get the desired results.

Integrates Employee’s Efforts:
Subordinate’s efforts are interdependent. Thus, they should be integrated to achieve the desired objectives.
Attempts to bring out Maximum from Individuals Proper motivation is required to bring out the maximum from lndividual.
subordinates through proper motivation, leadership and communication.
Direction provides the way to utilize these capabilities and it also helps in increasing capabilities.

Facilitating changes in Organisation Individuals have to be directed and motivated ¡n order to make them responsive to changes.

Provides Stability and balance In the Organisation:
It keeps the various part of organisation balanced, thus enabling it to on for a long period, and enables its parts to work In a harmonious way.

Essential elements of Direction:

→Issuing orders and instructions

→ Guiding the subordinates about the proper way of doing a particular job.

→ Supervising the subordinate’s work for ensuring it to confirm with the desired plan.

→ Motivating the subordinates for directing their behaviour as desired.

→ Maintaining discipline among subordinates.

→ Rewarding the subordinates for effective performance.

Note:
In short, essential elements are

Supervision
Motivation
Leadership
Communication

Supervision:

it refers to the direct guidance and control over the subordinate’s performance, In order to achieve the desired objectives.
Supervision ¡s guiding and directing efforts of employees and othe resources to accomplish stated world outputs. – George R. Terry and Stephen G. Franklin

Features of Supervision:
Done at all management levels.
More pronounced at the lowest level of management.

Notes:
Supervising managers are called supervisors, foremen, superintendents, overseers or section officers.
Guides the subordinates in their work performance by assigning work, issuing orders, creating team spirits and controlling work output.

Factors of effective supervision:

Supervisor’s skills and abIlities: which includes technical, human relations and conceptual skills.
Requisite leadership position: leadership is an influencing process.
Supervisor should be given proper place and given requisite authority enable him exercise effective leadership, over the group and motivate them to perform better.
Nature of supervision: whether general or close. General supervision has a more favorable impact.
Group cohesiveness: should be high as it enables group work for attainment of common goals.

Note:
Group cohesiveness refers to the degree of attraction that each member has or the group.
Improved relations with the superiors: ReLation h€tween the two must be cordial.

Motivation:

It is derived from Latin word movere, which means to move.
It refers to the inner state that energizes, activates or moves and direct an individuals behaviour towards goals.
Joe Kelly said that it “has to do with the forces that maintain and alter the direction, quality and intensity of behaviour.”
M. R Jones defined management “how behaviour get started is energized, is sustained, is directed, is stopped and what kind subjective reaction is present in the organisation while all this is going on.

It is a complex process because:

Its exact reason cannot be seen but can be only inferred.
Difficult to say which need or expectation is forcing a person to at that moment.
People’s needs are satisfied in different ways.
Satisfaction of a particular need is not a sure indicator of motivation. for e.g. A highly paid empLoyee may still want more money to work more.
Goal-directed behaviour does not satisfies the need always.

Motivation Process:

It is the process of interaction between human needs and incentives.
Need refers to the feeling that something is required.

Usefulness of Motivation in Management:

Managers cannot get the best of work from his subordinates without knowing what motivates them.
Responsibility of management is to “built into the entire system factors
that will induce people to contribute”.
Helps in motivating the employees, which results in creation and maintenance of a healthy environment
Enables the employees to work effectively and efficiently.
Chester Bernard recognised the willingness to work or co-operate as an important element in success of an organisation.

Psychological Motivation:
Developing this concept further, Dr. Eric Berne devised a scientific method to study human behaviour known as Transactional Analysis (TA).

Transactional Analysis (T.A.):

As per Eric Berne,” transaction is the unit of social intercourse.”
Transactional stimulus refers to the situation when two or more people encounters each other, they will speak or will give some indication of acknowledging each other’s presence, sooner or later.
Transactional response refers to the act or anything which the other person says in relation to the stimulus.
T.A. helps in finding out ‘why people do as they do’.
PAC ego states i.e. Parent, Adult and Child ego states refers to the parts of the multiple nature of an individual which are recorded in the brain and are replayed in course of a transaction.
Parent: At the early 5 years, whatever the child sees his parent doing and whatever he hears from them is recorded straight in his mind.
These recordings are available for replay throughout his life.
It is a taught concept of life.
Child: It refers to the response of the child to what he hears and sees.
Most of the reactions are ‘feelings’ It is a felt concept of life.
Adult: Recording of adult starts

It begins with self-actualisation:
→ He has to examine the data in parent and also has to examine the child’s feelings
→ It is a thought concept of life.
→ It cannot change or erase the recordings in parent and child.

Cross Transaction:
Any social intercourse may be parallel or crossed.
Parallel Transactions-

Parent- parent
Child – child
Adult-adult

They are complementary and can go on indefinitely

Crossed Transactions-

Parent-child
Child – parent
Parent-child
Adult – parent, etc.

Benefits of Transactional Analysis:

Employees can give an insight into their own personalities
II helps them to understand the reason of other’s responses.
Helps in improving interpersonal communication.
Useful areas like Sales, etc. where success of firm depends upon customer relations.

Important elements:
Leadership: ‘Leadership is the ability to persuade others to seek defined objectives enthusiastically. It is the human factor which binds a group together and motivates it towards goals” ‘ – Keith Davis

Leader is a part of the group, still must maintain a separate identity.
It contemplates interpersonal influence and a close man to man relationship.
It is a dynamic and never-ending process.
It involves influencing individual behaviour to guide them in right direction.

Types of Leaders:

Managers are leaders having formal authority to direct, motivate and lead people. This is called formal or managerial leadership.
Informal leadership is a part of informal organisation.
Informal leaders are not delegated any authority to lead.
Informal organisation provides good support if, properly handled.

Cultivated leadership attitudes:
Awareness:
Must know his job, people involved and situational considerations clearly to ensure effectiveness.
To bring effectiveness. manager should be aware otther factors resulting in success or failure like his job, his subordinates etc.

Empathy –
Leader must put himself in the position of his subordinates, understand their situation and then take any decision.

Objectivity:
Subordinate’s problems and its causes must be taken care of by leaders objectively and unemotionally.

Self-knowledge:
Leader must know the effect of his attitude and behaviour on his subordinates in order to Improve them, thus creating a favourable response.

Communication:
It refers to the exchange of facts, ideas, opinions or emotions by two or more persons so as to bring about mutual understandings confidence It may be intra personal or interpersonal.
Feedback is its essential aspect.
It may be through words, symbols, letters or actions.

Elements :

Co-ordination: “Co-ordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goals.”

Mooney and Relay “Co-ordination is the integration of several parts into an orderly hole to achieve the purpose of understanding.” Charles Worth

“Co-ordination is the ‘Plus Value’ of the group.” Mary Parker Follett “Co-ordination is the effort to assure a smooth interplay of the functions and forces of the different component parts of an organisation to the end that its purpose will be realised with a minimum of friction and a maximum of collaborative effectiveness.” – Tead

It refers to the orderly synchronisation of group efforts so as to provide unity of action in the pursuit of common purpose. It is the essence of management.

Features of Co-ordination:

It is not a distinct function but the very essence of management.
It is the basic responsibility of the management and can be achieved through managerial functions.
It does not arise spontaneously or by force. It is the result of conscious and concentrated action by management.
The heart of coordination is the unity of purpose which Involves fixing the time and manner of performing various activities.
It is a system concept in the sense that it regards an organisation as system of cooperative efforts.
It is relevant only for group efforts.
It is a continuous and dynamic process.
It is directly proportional to the degree of integration in the performance of various functions.
It is the responsibility of every manager.

Importance of Co-ordination:
Unity in diversity: In a large organisation, different employees have different backgrounds. These diversified activities will be efficient only in the presence of coordination.

Teamwork or Unity of Direction: Diversified skills and efforts of various employees are integrated by coordination which eliminates duplication of work.

Functional differentiation: Activities of various departments have to be integrated to attain common objectives.

Specialization: One specialist needs to know the importance of other specialist’s work to avoid disputes.

Reconciliation of Goals: It helps in reconciling the employees individual goals with both departmental and organizational goals.

Congruity of Flows: It means smooth and continuous flow of information from one direction to another.

Differentiation and integration: It helps in facilitating the process of authority delegation to various levels. This is necessary to achieve group efforts.

Limitations of Co-ordination
Lack of Administrative Talent: Inefficient candidates do not understand the administrative procedure properly which results in ineffective coordination.

Misunderstanding: Lack of coordination occurs due to misunderstanding among the employees. ‘

Types of Co-ordination

Internal Coordination:

It is established to coordinate the activities of managers, executives, divisions, branches and other workers.
Vertical Coordination: It refers to the coordination in which a superior coordinates his work with that of his subordinates and vice-versa.
Horizontal Coordination: It refers to the establishment of coordination between people at same level.

Fayol has suggested 3 things for effective internal coordination.

Work in proper harmony
Group task activity
Working schedule should be constantly changed according to changing circumstances.

External Coordination:
It Is established to co-ordinate the activities of employees of the organisation and the people outside the organisation.
Outsiders includes:

Market agencies
Government
Customers.
Competitors, etc., Media and TecInoIoglcaI Agencies
General Public
Commercial organisation
Financial institutions.

Public Relations Officer (PRO) is a person to whom this job of coordination is entrusted.

Various management functions leads to better coordination.
it is involved in every management function like planning, directing, staffing etc.

Reasons for co-ordination to be the essence of management:
Co-ordination Vs Co-operation:

Both are different
Co-ordination refers to an art of synchronisation of efforts so as achieve some common goals.
Co- operation refers to a voluntary collective action to serve a common purpose.

Nature of Management and its Process MCQ Questions

1……………………….. is a function of management which involves communicating and providing leadership to the subordinates.
(a) Direction
(b) Co-ordination
(c) Controlling
(d) Commanding
Answer:
(a) Direction

2. …………………. said that effective direction depends upon the harmony of objective
(a) Fayol
(b) Mooney
(c) Taylor
(d) Larry and Greiner.
Answer:
(c) Taylor

3. Three types of skills required by the supervisor are technical, human and
(a) Experience
(b) Conceptual
(c) Scientific
(d) Productive
Answer:
(b) Conceptual.

4. General supervision has a favourable impact on the ……………. of the subordinates.
(a) Initiative
(b) Morale/productivity
(c) Skills
(d) None of the above.
Answer:
(b) Morale/productivity.

5. ………………….. is defined as the degree of attraction that each member has for the group.
(a) Motivation
(b) Performance Appraisal
(c) Co-ordination
(d) Group cohesiveness
Answer:
(d) Group cohesiveness.

6. ……………………… is the method fo examining social inter-course of different employees.
(a) Transactional analysis
(b) Crossed transaction
(c) Psychological motivation
(d) None of the above.
Answer:
(a) Transactional analysis

7. Transactional analysis is useful in states and other areas where success depends on customer relations.
(a) True
(b) False
(c) Partly True
(d) None of the above.
Answer:
(a) True

8. Which theory assumes that people feel highly motivated when they are rewarded with more money.
(a) Equity Theory
(b) Herzberg Theory
(c) Monistic/Economic Theory
(d) Hierarchy of Needs Theory
Answer:
(c) Monistic/Economic Theory.

9. ………………….. suggested the “hierarchy of needs theory.
(a) Fayol
(b) Maslow
(c) Taylor
(d) George R. Teny
Answer:
(b) Maslow.

10. The approach towards directing the subordinates will depend upon the situation only.
(a) True
(b) False
(c) Partly True
(d) None of these.
Answer:
(b) False.

11. Which theory is also called the two-factor theory?
(a) Herzberg Theory
(b) Equity Theory
(c) Monistic Theory
(d) Theory of Douglas Mc, Gregor
Answer:
(a) Herzberg Theory.

12. The fundamental assumption of ………………… theory is that full advantage of employee potential can be taken by motivating them to accept organisational objectives.
(a) Theory X
(b) Equity theory
(C) Monistic theory
(d) Theory Y
Answer:
(d) Theory Y.

13. Which theory says that a man is inherently resistant to change and passive to organisational needs.
(a) Mc. Gregor Theory Y
(b) Mc. Gregor Theory X
(C) Equity Theory
(d) Herzberg Theory.
Answer:
(b) Mc. Gregor Theory X

14. ……………….. gave the two-factor theory.
(a) Frederick Herzberg
(b) Douglas Mc. Gregor
(c) Taylor
(d) Fayol
Answer:
(a) Frederick Herzberg

15. Context factors are also known as factors.
(a) Intrinsic
(b) Indifferent factors
(c) Hygienic/extrinsic factors
(d) None of the above.
Answer:
(c) Hygienic/extrinsic factors.

16. Transaction Analysis can give the employees fresh insights into their own personalities.
(a) True
(b) False
(c) Partly True
(d) None of the above.
Answer:
(a) True.

17. ………………… said leadership is the activity of influencing people to strive willingly for group objectives.
(a) Koontz & O’Donnell
(b) Henry Fayol
(c) Taylor
(d) George R. Terry
Answer:
(d) George R. Terry.

18. Which theory fails to pinpoint the intensity and extent to which each of the agreed traits should be present in an individual.
(a) Style Theory
(b) Blake and Mouton
(c) Traits Theory
(d) None of the above.
Answer:
(c) Traits Theory.

19. ………………….. approach has selective application. Under this leader depends upon the members to establish their own goals.
(a) Autocratic style
(b) Laissez fair-style
(c) Democratic style
(d) None of the above.
Answer:
(b) Laissez fair style.

20. Which theory divides the leadership style in a managerial grid In which different styles of leadership are located in four quadrants.
(a) Lewin, Lippit and White
(b) Ohio State University
(c) University of Michigan
(d) Blake and Mouton
Answer:
(d) Blake and Mouton.

21. While decoding the message, the sender determines the method of transmission.
(a) True
(b) False
(c) Partly True
(d) None of the above.
Answer:
(b) False

22. The path and behaviour of grapevine Is unpredictable.
(a) True
(b) False
(c) Partly True Partly False
(d) None of the above.
Answer:
(a) True

23. ……………………….. communication is also called diagonal communication.
(a) Formal
(b) Informal
(c) Cross-wise
(d) Horizontal
Answer:
(c) Cross-wise

24. ………………….. network of communication is also useful for disseminating information in the general interest of the organisation.
(a) Formal
(b) Informal
(c) Vertical
(d) Horizontal
Answer:
(b) Informal

25. Goals are similar to needs but imply that the object is social not merely physiological.
(a) False
(b) True
(c) Partly True
(d) None of the above
Answer:
(a) False

26. format channels of communication are referred to as communication through the chain of command.
(a) True
(b) False
(c) Partly True
(d) None of the above
Answer:
(a) True.

27. A confession of make may lead to material gains In terms of promotion and pay increase,
(a) True
(b) False
(c) Partly True
(d) None of the above
Answer:
(b) False

28. Four kinds of Management systems as leadership styles was given by
(a) Black and Moultrie
(b) Renris Likert
(c) MC. Gregor
(d) Hertzberg
Answer:
(b) Renris Likert.

29. ……………………… is the unification, integration, synchronization of the efforts of group members so as to provide unity of action In the pursuit of common goals.
(a) Controlling
(b) Co-ordination
(c) Directing
(d) Commanding
Answer:
(b) Co-ordination.

30. Directing is the guidance, the inspiration, the leadership of those men and women that constitute the real core 01 the responsibilities of management”. Who said this statement?
(a) Brech
(b) Urwicks
(c) Both (a) & (b)
(d) Mc Farland
Answer:
(c) Both (a) & (b).

31. ………………………. said that unity of command cannot exist without unity of direction, but does not flow from it.
(a) Fayol
(b) Taylor
(c) Mooney
(d) Larry and Greener.
Answer:
(a) Fayol.

32. Synchronization of varied objectives” is based on which principle of direction.
(a) Unity of Command
(b) Unity of Direction
(c) Direct Supervision
(d) Harmony of objectives
Answer:
(d) Harmony of objectives.

33. ………………….. refers to the direct and immediate guidance and control of subordinates In performance of their work.
(a) Motivation
(b) Leadership
(c) Supervision
(d) Communication
Answer:
(c) Supervision.

34. The word motivation is derived from the ………………… word ‘movere”.
(a) Greek
(b) Latin
(c) French
(d) Roman
Answer:
(b) Latin.

35. A social intercourse maybe ………………… .
(a) Parallel
(b) Crossed
(c) Both (a) & (b)
(d) None
Answer:
(c) Both (a) & (b).

36. Which principle of Taylor relates to the Monistic theory of Motivation?
(a) Differential price rates
(b) Abolishing of old rule of thumb
(c) Functional foremanship
(d) Training of workers.
Answer:
(a) Differential price rates

37. “L = f (I, f, s)” is the leadership function. What does “f” signify?
(a) Friend
(b) Follower
(c) Family
(d) None of the above.
Answer:
(b) Follower

38. Which of the leadership style is not identified by Ohio State University?
(a) Consideration
(b) Initiating structure
(c) Employee Centered
(d) None of the above
Answer:
(c) Employee Centered.

39. Which of the following is not the principle of communication?
(a) Principle of Integrity
(b) Principle of Disintegration
(c) Principle of Clarity
(d) Principle of Strategic use of Informal Organisation
Answer:
(b) Principle of Disintegration.

40. Which of the following is not the example of “Crossed Transaction”?
(a) Parent-Child
(b) Child – Parent
(c) Parent – Adult
(d) Adult – Adult
Answer:
(d) Adult – Adult.

41. ……………………. Co-ordination is the establishment of a relationship between the employees of the organisation and outsiders of the organisation
(a) Internal
(b) External
(c) Both (a) & (b)
(d) None of the above.
Answer:
(b) External.

42. The work of the establishment of a relationship between the employees of the organisation and the outsider is entrusted to a person who is designated as ……………….. .
(a) Chairman
(b) Secretary
(c) PRO (Public Relation Officer)
(d) Director
Answer:
(c) PRO (Public Relation Officer).

43. “Sales manager co-ordinates his work with the activities of the supervision of the sale” is a type of which internal coordination.
(a) Vertical Co-ordination
(b) Horizontal Co-ordination
(c) Both (a) & (b)
(d) Upward Co-ordination
Answer:
(b) Horizontal Co-ordination.

44. ……………………. is characterized by the emergence of spontaneous channels through which facts, half truths, and rumours pass.
(a) Formal communication
(b) Informal communication
(c) Mix communication
(d) None of the above
Answer:
(b) Informal communication

45. ……………….. is a third type of communication medium.
(a) Pictures
(b) Media
(c) Action
(d) Written communication
Answer:
(c) Action

46. “Message communicated through words may be distorted intentionally”, is a type of which barrier?
(a) Perfunctionery Action
(b) Semantic Distortion
(c) Premature Evaluation
(d) Resistance to Change
Answer:
(b) Media

47. Different functions of management when effectively carried out leads to better ……………….. .
(a) Co-ordination
(b) Controlling
(c) Directing
(d) Organising
Answer:
(a) Co-ordination.

48. ………………….. is a voluntary collective action to serve a common purpose,
(a) Co-ordination
(b) Controlling
(c) Cooperation
(d) None of the above
Answer:
(c) Cooperation

49. Which type of leadership is characterized by ‘centralisation of authority’?
(a) Autocratic style
(b) Democratic style
(c) Laissez-faire style
(d) None of the above
Answer:
(a) In Autocratic style of leadership the leader centralises his authority and keeps decision making with himself and very limited participation by subordinates of the group. The autocratic leadership accomplishes the results through use of authority, fear of deprivation punishment and other coercive measures.

50. The Hierarchy of Needs Theory was propounded by –
(a) A. H. Maslow
(b) Mc. Gregor
(c) Henry Fayol
(d) Henry Lawrence Gantt
Answer:
(a) Hierarchy of Needs Theory was developed by A.H. Maslow, a psychologist. It is based on human needs which are arranged in a particular order from the lower to higher.

51. With which management functions, ‘mentoring’ is primarily associated-
(a) Planning
(b) Organising
(c) Leadership
(d) Control
Answer:
(c) Leadership Is a means of directing and represents that part of an executive’s activities by which he guides and influences the behaviour of his subordinates and the group towards some specified goals by personally working with them and understanding their feeling and problems, hence leadership is primarily monitoring or providing direction, drive arid good representation, thus proving that it ¡s an essential part of successful management.

52. Which one of the following is not considered as an element of direction?
(a) Supervision
(b) Organisation
(c) Motivation
(d) Communication.
Answer:
(b) Direction refers to an initiating function which actuates plans and the organisation. It involves:

SupervIsion
Motivation
Leadership
CommunIcation

Thus, organisation is not an element of direction.

53. Which one of the following theories postulates that people are not concerned merely with the reward they get for their contributions, rather they compare their efforts and rewards with those of others?
(a) Economic theory of motivation
(b) Motivation – hygiene theory
(c) Equity theory of motivation
(d) Hierarchy of needs theory.
Answer:
(c) As per Equity Theory of Motivation, people are not concerned merely with the reward they get for their contributions; rather they compare their efforts and rewards with those of others. If he feels that his getting less rewards than others for the same contribution and outcome, he is resorted to -negative behaviour.

54. Which one of the following theories assumes that man is inherently resistant to change and passive to organisational needs?
(a) Theory – X
(b) Theory – Y
(c) Theory – Z
(d) Theory – U
Answer:
(a) There are certain conventional assumptions relating to motivation of people in the organisation that are widely accepted as valid. These assumptions are termed by Mc Gregor as “Theory X”. The important assumptions underlying this theory are:

The average individual is by nature indolent and will avoid work if he can.
The average person lacks ambition, dislikes responsibilities and prefers to be led.
An average human being is inherently self-centered.
Man is inherently resistant to change and passive to organisational needs.
Most people want security above all.

55. Which one of the following is a form of informal communication?
(a) Vertical Communication
(b) Grapevine
(c) Horizontal Communication
(d) None of the above.
Answer:
(b) Informal communication is based upon Informal relationship. It Is the result of operation of social forces at workplace.

It is known grapevine as It runs in all directions irrespective of the formal structure.
It contains any communication about the company and personal matters outside the official network.

56. The fundamental assumption of is that full advantage of employee potential can be utilised by motivating them to accept organizational objectives.
(a) Theory – X
(b) Equity theory
(c) Monistic theory
(d) Theory-Y.
Answer:
(d) The fundamental Implication of theory Y is that full advantage of the personal and professional potential of employees can be taken by motivating them to accept organizational objectives, more particularly when their physiological and safety needs are well satisfied.

57. ………………. is an important function of management which involves communicating and providing leadership to the subordinates and motivating them to contribute to the best of their capacity for the achievement of organisational objectives.
(a) Motivation
(b) Directing
(c) Discipline
(d) Coordination.
Answer:
(b) Directing is an important function of management which involves communicating and providing leadership to the subordinates and motivating them to contribute to the best of their capability for the achievement of organisational objectives.

It starts with issuing orders and instructions to subordinates and ends with getting things done by satisfaction of various needs of subordinates.

58. …………………. co-ordination refers to that co-ordination n which a superior authority coordinates his work with that of his subordinates and vice versa.
(a) Internal
(b) Vertical
(c) Horizontal
(d) External.
Answer:
(b) Vertical Coordination refers to that co-ordination In Which a superior authority coordinates his work with that of his subordinates and vice-versa.

59. Grapevine consists of a complex network of communication.
(a) Crosswise
(b) Formal
(c) Informal
(d) None of the above.
Answer:
(c) Informal organisation emerges spontaneously within every formal organisation and along with it grows the informal channels of communication, commonly referred to as the grapevine.
Any informal communication about company and personal matters outside the official network constitutes grapevine. Thus, the grapevine consists of a complex network of Informal communication.

60. The essence of management which is all-pervasive and permeates every function of management is …………………. .
(a) Staffing
(b) Co-ordination
(c) Reporting
(d) Budgeting.
Answer:
(b) Co-ordination is considered as the essence of management because different functions of management are exercised in coordination. Hence, the essence of management which is all-pervasive and permeates every function of management is Coordination.

61. Which concept of lite is described under parent –
(a) Thought concept of life
(b) Taught concept of life
(c) Felt concept of life
(d) None of the above.
Answer:
(b) Taught concept of Life is described under parent conditions. Under this, hostility of parents is recorded with terror and the love with pleasure.

62. Which function is described as an integration or synchronization of group effort in the organisation.
(a) Direction
(b) Cooperation
(c) Co-ordination
(d) Staffing.
Answer:
(c) Co-ordination is an integration or synchronization of group efforts in the organisation. So as to provide unity of action in the pursuit of common purpose.

63. Crosswise communication is also known as –
(a) Horizontal Communication
(b) Diagonal Communication
(c) Upward Communication
(d) Downward Communication.
Answer:
(b) Crosswise communication is also known as diagonal communication which signifies the communication between different departments of equal, higher or lower position.

64. Which theory says that people are not only concerned merely with their reward but also compare their efforts and rewards with others:
(a) Equity Theory of Motivation
(b) Theory X
(c) Theory Y
(d) None.
Answer:
(a) As per Equity Theory of Motivation, people are not concerned merely with the reward they get for their contributions. rather they compare their efforts and rewards with those of others. li he feels that he is getting less rewards than others for the same contribution and outcome, he is resorted to negative behaviour.

65. Theory X is propounded by:
(a) Douglas Mc’ Gregor
(b) Henry Hlntzberg
(c) Lewin Lippu and White
(d) 1.0. Mooney
Answer:
(a) The late Douglas Mc Gregor has applied the fundamental content of the theory of Maslow to leadership and management theory. There are certain conventional assumptions relating to motivation of people. These assumptions are termed by McGregor as Theory X’s.

66. Motivation hygiene theory was given by.
(a) Henry Hintzberg
(b) Fredrick Taylor
(c) Frederick Herzberg
(d) George. R. Terry
Answer:
(c) Herzberg’s Motivation – Hygiene Theory, also known as the two-factor theory was developed by Fredrick Herzberg.

67. “leadership is influencing people to follow in the achievement of a specialised goal”. This definition of leadership is given by
(a) Koontz and O’ Donnell
(b) Henry fayol
(c) George R. Terry
(d) Henry Mintzberg
Answer:
(a) According to Koontz and O’ Donnell, Leadership Is influencing people to follow in the achievement of a specialised goals.

68. Parent, child and adult are the terms used In:
(a) Management
(b) Transaction Analyses
(c) Communication
(d) Emotional Intelligence.
Answer:
(b) Transactional analysis is the method of examining the social intercourse of the parts of the multiple nature of an individual which are recorded in the brain and are replayed in the course of a transaction are: parent, child & adult., PCA ego states.

69. Parents, child and adult are the terms used in:
(a) Management
(b) Transactional Analysis
(c) Communication
(d) Emotional Intelligence
Answer:
(b) Transactional analysis helps in finding out ‘why people do as they do’. Parents, child and adult are terms used in Transactional Analysis.

70. Which of the following is not the external coordination:
(a) Market agencies
(b) Competitors
(c) Horizontal Coordination
(d) Media
Answer:
(c) External co-ordination:

Market agencies
General public
Competitors
Customers
Union government, State Government and other Government.
Different Institution rendering services
Financial Institution
Media
Technology Agencies

Thus, option, (c) Le. horizontal coordination is not external coordination.

71. Allowing substantial participation by members of the group in management and decision-making process, is a characteristic of which style of leadership?
(a) Autocratic style
(b) Dramatic style
(c) Democratic style
(d) Laissez faire style.
Answer:
(c) Democratic style Is characterised by allowing substantial participation by members of the group in management and in the decision making process by the leaders. This style substantially contributes to satisfaction on the part of subordinates.

72. “Unity of command cannot exist without unity of direction, but does not flow from it. This statement was given by:
(a) George Tenny
(b) Koontz & ‘O’ Donriefl
(c) Frederick Taylor
(d) Henry Fayol.
Answer:
(d) Henry Fayol emphasized that Unily of command cannot exist without unity of direction, but does not flow from it as unity of direction results from sound organisation structure, whereas unity of command leads to effective function of the subordinates.

73. The important function of management, “Direction” is exercised at:
(a) All the levels of management
(b) Middle level of management
(c) Top-level of management
(d) Lower level of the management
Answer:
(a) Features of Direction:

Direction initiates action in the organisation
It Is performed at every level of management
It is a continuous process
Initiates at the top level in organisation and flows to the bottom following hierarchy
Director ‘is has dual objectives.

74. The flow or patterns of communication in an organisation may not be ………………… .
(a) Downward
(b) Hexagonal
(c) Upward
(d) Diagonal.
Answer:
(b) Different kinds of communication:

Downward Communication
Upward Communication
Diagonal Communication

75. The abbreviation PAC ego states stands for
(a) Public, Action, Council
(b) Public, Authority, Council
(c) Policy, Action, Course
(d) Parent, Adult, Child.
Answer:
(d) The parts 01 the multiple nature of an individual which are recorded in the brain arid are repaid course of a transaction are described as: Parents, Adult and Child (PAC) ego states.

76. Allowing substantial participation by members of the group in management and decision-making prócess, is a characteristic of which style of leadership?
(a) Dramatic style
(b) Autocratic style
(c) Laissez-faire style
(d) Democratic style.
Answer:
(d) Democratic Style of Leadership is characterized by allowing substantial participation by members of the group in management and in the decision-making process by the leaders. Subordinates are frequently consulted by the manager on wide-ranging problems and are allowed sufficient freedom to communicate with the leader and also with their fellow subordinates.

77. As per Taylor, effective direction depends upon the:
(a) Growth of objectives
(b) Size of objectives
(c) Definition of objectives
(d) Harmony of objectives.
Answer:
(d) Directing is an important function of management which involves communicating with and providing leadership to the subordinates and motivating them to contribute their best for the achievement of organizational objectives. Taylor pointed out that effective direction depends upon the “harmony of objectives”.

78. Relatively enduring characteristics of a person are called
(a) Experiences
(b) Traits
(c) Knowledge
(d) Attitudes.
Answer:
(b) Persons personality is linked to relatively enduring characteristics know as traits, which can predict behavior and other transient emotional responses or moods.

79. Efficiency implies different meanings to expert, a union leader, a worker, or a manager. This barrier to communication is stated as:
(a) Semantic distortion
(b) Perfunctory attention
(c) Loss of information
(d) Premature evaluation
Answer:
(a) One of the barriers to communication ¡s Semantic Distortion which means that a word may means different to different people based on their knowledge, orientation and experience.

80. Which of the following quality experts advanced the use of statistics for constant quality improvement and assisted Japanese business leaders after world war?
(a) Philip Crosby
(b) Henry Fayo
(c) W Edward Deming
(d) Armand V. Feigenbaum
Answer:
(c) W Edward Deming assisted the Japanese business leaders after World War II.

81. The leader depending largely upon the group and its members to establish their own goods and make their own decisions is a characteristic of which style of leadership?
(a) Dramatic style.
(b) Automatic style
(c) Laissez faire style
(d) Democratic Style
Answer:
(c) In Laissez-faire style, the leader assumes roles of just any other member of the group and depend largely upon the group and its member to establish their own goal and make their own goal and decision.

82. It essentially signifies the existence of only one supervisor and one plan for a group of activities which have the same objective:
(a) Unity of functions
(b) Performance Appraisal
(c) Unity of command
(d) Unity of Direction
Answer:
(d) Unity of direction essentially signifies the existence of only one superior and one plan for a group of activities which have the same objective.

83. According to decision theory approach which one of the following is the Core of management?
(a) Leadership
(b) Decision-making
(c) Motivation
(d) Planning
Answer:
(b) Decision-Making is Core of the Management If we follow ‘decision theory of approach’.

84. Business must first be responsible to:
(a) Employees
(b) Customers
(c) Owners
(d) Bankers
Answer:
(c) Business must pay so many obligations and there are so many obligations for which business has to liable and these are:

Liability to pay Employees
Liability to pay Customers
Liability to pay Owners
Liability to pay Bankers

Business must first be responsible to owners and then rest others as owner is only one who start business by investing capital.

85. Communication by the CEO of the Organisation to the purchase officer is an example of:
(a) Upward communication
(b) Downward communication
(c) Horizontal communication
(d) Informal communication.
Answer:
(b) The process of passing information from one person to another with aid of some medium is termed as Communication. There are two types of Communication which are:-

Downward Communication
Upward Communication

Communication by CEO of the Organisation to the Purchase Officer is an example of Downward Communication.

86. Crosswise Communication ¡s also known as Communication.
(a) Vertical
(b) Horizontal
(c) Diagonal
(d) None of the above.
Answer:
(c) Crosswise Communication is also known as Diagonal Communication as it implies shape like a diagonal.

87. Parent, Child. Adult are part of:
(a) Transactional Analysis: EGO States
(b) Transformation Approach
(c) Psychological Motivation
(d) Nono of these.
Answer:
(a) Transactional analysis is the method of examination of social intercourse; are described as Parent, Adult, Child (PAC) ego states.

88. Work hard, do not worry, everything will be ok who understand this
(a) Parent
(b) Child
(C) Adult
(d) None of these
Answer:
(a) Work hard, do not worry, everything will be ok”, is understood by Parent under Transaction analysis: PAC ego states.

89. The essence of management which is all-pervasive and permeates every function of management Is –
(a) Staffing
(b) Co-ordination
(c) Reporting
(d) Budgeting.
Answer:
(b) Co-ordination means the synchronisation of different efforts of the various departments. ft is the essence of management which is all-pervasive and permeates every function of management.

90. …………………………. is an important function of management which involves communicating and providing leadership to the subordinates and motivating them to contribute to the best of their capacity for the achievement of organisational objectives.
(a) Motivation
(b) Directing
(c) Discipline.
(d) CoordInation.
Answer:
(b) ‘Directing’ is an important function of management which involves communicating and providing leadership to the subordinates and motivating them to contribute to the best of their capacity for the achievement of organisational objectives.

91. Coordination refers to that coordination in which a superior authority coordinates his work with that of his subordinates and vice versa.
(a) lnterrl
(b) Vertical
(c) Horizontal
(d) External
Answer:
(b) ‘Vertical’ Co-ordination refers to that coordination in which a superior authority co-ordinates his work with that of his subordinates and vice versa.

92. Caveat Emptor means:
(a) Let the buyer be aware
(b) Let the seller be aware
(c) Both
(d) None
Answer:
(a) Cavtat Emptor stands for “Let the buyer be aware” arid the world Caveat Vendor standS for ‘Let the seller be aware.

93. Sender can be:
(a) Recipient
(b) Receiver
(C) Communication
(d) None of the above.
Answer:
(c) Sender Is a person who sends the message. The sender may want to change the receiVers’ minds, or secure concessions towards a negotiated agreement. Hence sender is also known as communicator.

94. CoordInating is ‘Plus-Value’ of group according to which writer:
(a) Charles worth
(b) Mary Parker F0llett
(c) Moon ley
(d) Koontz O Donnel.
Answer:
(b) According to Mary Parker Follett, co-ordinating is the “Plus-value of the group”. That is, if there is good co-ordinating between the groups then the combined achievement of the groups will be greater than the total of the achievement of the individual group, i.e. 3 + 2 = 6.
This is impossible In the physical world, but it is possible in human affairs through co-ordinating.

CS Foundation Business Management Ethics and Entrepreneurship Notes

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