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Principles and Practices of Management Important Questions and Answers

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All over India Students of MBA 1 Semester are able to understand Important Questions and Answers in the Subject of Principles and Practices of Management. You can find out s ome Multiple Choice Questions with Answers to go and attempt UGC NET and SET Examinations. In addition, you can find out the suitable solution for the CASE STUDY with solution at the end for your understanding and implementation.

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Principles and Practices of Management


Some Questions and Answers for the Final Examination
Principles and Practices of Management
Section A: Objective Type
Part One:
Multiple choices:
1. A plan is a trap laid to capture the ___________
a. Future
b. Past
c. Policy
d. Procedure
Answer: a (Future)
2. It is a function of employing suitable person for the enterprise.
a. Organizing
b. Staffing
c. Directing
d. Controlling
Answer: b (Staffing)
3. ___________ means “group of activities & employees into departments”.
a. Orientation
b. Standardization
c. Process
d. Departmentation
Answer: d (Departmentation)
4. This theory states that authority is the power that is accepted by others
a. Acceptance Theory
b. Competence Theory
c. Formal Authority Theory
d. Informal Authority Theory
Answer: a (Acceptance Theory)
5. It Means dispersal of decision-making power to the lower levels of the organization
a. Decentralization
b. Centralization
c. Dispersion

, d. Delegation
Answer: a (Decentralization)
6. This chart is the basic document of the organizational structure.
a. Functional Chart
b. Posts Chart
c. Master Chart
d. Department Chart
Answer: c (Master Chart)
7. Communication which flow from the superiors to subordinates with the help of scalar
chain is known as
a. Informal Communication
b. Downward Communication
c. Upward Communication
d. Oral Communication
Answer: b (Downward Communication)
8. Needs for belongingness, friendship, love, affection, attention & social acceptance are
a. Physiological Needs
b. Safety Needs
c. Ego Needs
d. Social Needs
Answer: d (Social Needs)
9. A management function which ensures “Jobs to be filled with the right people, with the
right knowledge, skill & attitude”
a. Staffing Defined
b. Job Analysis
c. Man Power Planning
d. Recruitment
Answer: b (Job Analysis)
10. It is a process that enables a person to sort out issues and reach to a decisions affecting
their life.
a. Selection
b. Raining
c. Reward
d. Counselling

,Answer: a (Selection)


Part Two:
Short Notes type Questions:
1. Differentiate between ‘Administration’ and ‘Management’.
Answer
Introduction
It may appear that both the terms, namely administration and management are connotative of
one and the same meaning, but there is actually some kind of difference between the two.
Administration is the science of determining the policies and objectives of an organization or
a firm, where as management is the act of putting into practice the policies and objectives
framed by the administration.
Administration Vs Management
It can thus be said that administration is a determinative function whereas management is
executive function. It is executive in the sense that it executes the objectives and policies that
are already framed by the administration and included in the constitution. Top level activity
controls an administration where as middle level activity controls a management.
Administration comprises of top level personnel that have contributed to the capital, that are
partners of the firm or the organization. Management comprises of a group of managers that
exhibit their skill in putting into practice the objectives of the organization. In short it can be
said that the management is directly under the control of administration or the administration
controls the management.
A management would survive only if the administration is satisfied by its academic show.
Hence management should strictly comprise of talented managers that show their dexterity in
translating into practice what the administration expects of them. Planning is the key factor
of an administration whereas motivation is the key factor of a management. It is important to
note that administrative handles the most vital aspect of an organization, namely, finance.
Administration organizes resources so as to use them to fulfill their mission. Management
does not handle the sensitive issue of finance but does handle the method of operation to
carry out the strategy of the administration.
It is the administration that takes vital decisions of an organization whereas management is
not authorized to take vital decisions of an organization but can take decisions within a
certain framework, by the approval of the administration. Administration is made of
administrators whereas management is made of managers. Administrators are found only in

, government, religious, military and educational organizations, whereas managers are found in
business firms only. The relationship between administration and management is that
management is construed to be a subset of administration in the sense that everything
management does gets included in the administration. Everything a management achieves
gets included in the administration and everything a management fails to achieve also gets
included in the administration. In fact it would be appropriate to say that a managerial failure
is actually an administrative failure. A managerial success is an administrative success too.
Administration is a determinative function, while management is an executive function. It
also follows that administration makes the important decisions of an enterprise in its entirety,
whereas management makes the decisions within the confines of the framework, which is set
up by the administration.
Administration is the top level, whereas management is a middle level activity. If one were to
decide the status, or position of administration, one would find that it consists of owners who
invest the capital, and receive profits from an organization. Management consists of a group
of managerial persons, who leverage their specialist skills to fulfill the objectives of an
organization.
Administrators are usually found in government, military, religious and educational
organizations. Management is used by business enterprises. The decisions of an
administration are shaped by public opinion, government policies, and social and religious
factors, whereas management decisions are shaped by the values, opinions and beliefs of the
mangers.
In administration, the planning and organizing of functions are the key factors, whereas, so
far as management is concerned, it involves motivating and controlling functions. When it
comes to the type of abilities required by an administrator, one needs administrative qualities,
rather than technical qualities. In management, technical abilities and human relation
management abilities are crucial.
Administration usually handles the business aspects, such as finance. It may be defined as a
system of efficiently organizing people and resources, so as to make them successfully pursue
and achieve common goals and objectives. Administration is perhaps both an art and a
science. This is because administrators are ultimately judged by their performance.
Administration must incorporate both leadership and vision.
Management is really a subset of administration, which has to do with the technical and
mundane facets of an organization’s operation. It is different from executive or strategic

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