Principles & Practice of Management Essay examples

2054 Words Mar 1st, 2014 9 Pages
Examination Paper

Principles and Practice of Management

Section A: Objective Type (30 marks)

Part one:

Multiple Choices:

1. A plan is a trap laid to capture the ________.
Ans.: A) Future

2. It is the function of employing suitable person for the enterprise
Ans.: B) Staffing

3. ___________ means “ group of activities & employees into departments”
Ans.: D) Departmentation

4. This theory states that authority is the power that is accepted by others
Ans.: A) Acceptance theory

5. It means dispersal of decision-making power to the lower levels of the organization
Ans.: A) Decentralization

6. This chart is the basic document of the organizational structure
Ans.: C) Master Chart

7. Communication which flow
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Write a short note on ‘Acceptance theory’.

Ans.: Acceptance theory is a theory which states that authority is the power that is accepted by others. Formal authority is reduced to nominal 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 mangers because they visualize the following advantages…
a. Receipt of financial incentives.
b. Contribution in attaining the objectives of the enterprise.
c. Fulfillment of responsibilities.
d. Appreciation from colleagues.
e. Setting of an example for others.
f. Responsibility to leadership of superior.
g. Moral obligation because of regard for old age, experience, competence, etc.
According to acceptance theory, authority flows from bottom to top. A manager has authority if he gets obedience from the subordinates. Subordinates obey the managers 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: Case lets (40 marks)

Case let 1

1. Critically analyze Mr. Vincent’s reasoning.

Ans.: In spite of following the

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