Management Theory Revision

Q: Explain What is the Management Information System (MIS)? It is a system designed to provide selected decision-oriented information needed by management to plane, control and evaluate the activities of the corporation. It is designed within a framework that emphasizes profit planning, performance planning and control at all levels. It contemplates the ultimate integration of required business information sub-systems both financial and non-financial within the company.

Q: How do you differentiate between Information and Data? Information must be differentiated from data. Data are facts that are not currently being used for decision making purposes. Information, is processed data which is directly used in the decision making process.

Q: How do you convert data into information? Customer's invoice in itself is data. If we take this data from the customer's invoice and process it in such a form so that it can be used in sales analysis and inventory management, then it becomes information which is being used in making decisions regarding planning and control of sales and inventory.

Q: To be useful, the information must be available in the desirable quality and quantity and at the time when needed. (True)

Q:A management Information System (MIS) basically is a set of procedures, that are systematic and inter-related for gathering all pertinent data, processing this data into a presentable form of information, so that the management can take necessary actions based upon this information. The system should be designed in such a manner so that:

The supplies complete, accurate and timely data. It identifies and quantifies the inter-related operational and performance variables and develops a relationship of these variables. It facilitates control of present costs by merging the financial and production data to produce measures of performance. It identifies the separate needs of all units of a decentralized organization in a cohesive manner. It requires that the data to be presented is presented in a summarized form . It provides flexibility.

MIS Failures and Mistakes: Q: Explain some of the causes that can result in the failure of a well designed MIS program? Some of the common misconceptions about MIS and some common mistakes and causes of failure are:

More information is better for effective decisions More information is better for effective decisions. This is a fallacy, since the information to be processed should be relevant and not more. Simply more information will overburden the manager (user) as he will not be able to absorb and then sort out all the data. Lack of managerial involvement. Some of the companies who have successfully utilized MIS have encouraged the manager-user to become involved in the design of their own systems. Failure of proper communication. More communication does not mean better performance. Computers cannot do everything. It must be recognized that the computers are not the panacea for all ills. Human acceptance. The success of the MIS program depends upon the acceptance and involvement of the personnel.

Q: How do we know when an MIS program is not well designed Q: How do we know when an MIS program is not well designed. What are the symptoms of an inadequate MIS design? Operational symptoms. Psychological symptoms. Report content symptoms.

Building co-operation between designers and the users of the program. Q: How can MIS be improved? Suggest some guidelines that would assist in such improvement? Involve top management in the design of management information systems. Building co-operation between designers and the users of the program. Develop a master plan. Both designers and users be held responsible and accountable for the success of MIS on a cost –benefit-basis. Consider the social and behavioral aspects of the systems design and implementation.

Q: What do we mean by "Human relation"? Human relation is a highly diverse field , human beings can interact with each other in a number of ways – everything from helping and cooperation on one extreme to conflict and aggression on the other.

Q: What do we mean by leadership? Leadership may be defined as the art of influencing and inspiring subordinates to perform their duties, willingly competently and enthusiastically for achievement of group objectives.

Q: The leader is a person who occupies a position of responsibility in coordinating the activities of the members of a group. (True)

Q: Differentiate between formal and informal leadership? The formal leadership occurs when a person is appointed or elected as an authority figure. E.g . anyone who is appointed to the job of a manager is also given the authority to exercise formal leadership in relationship to his subordinates. Similarly, a formally elected leader of a country or a state, acquires the authority of leadership and giving direction to the country or state. The informal leadership emerges when a person uses interpersonal influence in a group without designated authority or power.

Q: A style of leadership is a "relatively enduring set of behaviors which is a characteristic of the individual, regardless of the situation". (True)

Q: The autocratic leader believes that his leadership is based upon the authority conferred upon him by some source such as his position, knowledge, strength or the power to punish and reward. (True)

Q: Autocratic leadership is useful when the subordinates are new on the job and have had no experience either in the managerial decision making process or performing without active supervision. (True as advantage)

Q: Explain what motivation is? It is the degree of readiness of an organization to pursue some designated goal and implies the determination of the nature and locus of forces, inducing the degree of readiness.

Q: What are the steps can be adopted in the motivation process? Analysis of the situation requiring motivation. Preparing , selecting and applying a set of motivating tools. Following up on the results of application.

Q: What are the different types of motivations? Positive motivation Negative or Fear motivation Extrinsic motivation Intrinsic motivation

Q: Do you agree that "Planning is a bridge between the present and the future" ? If so, Why? Yes. Planning has 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.

Q: What are the reasons for planning? Planning is essential in modern business. Planning is related to performance. Planning puts a focus on objectives. Planning anticipates problems and helps in the smooth flow of operations. Planning is necessary to facilitate control. Planning helps in the process of decision-making.

Q: Strategic planning: Long range planning to set organizational goals, objectives, and policies to determine strategies, tactics, and programs for achieving them. (True)

Q: Differentiate between planning of top management, middle management and supervisors? Top management makes strategic plans. Middle Management makes annual plans (to implement the above). For supervisors the planning period is usually a week, day, or shift ( to deal with daily work).

Q: What are the planning process? Plan what is to be done Organize how it is to be done including staffing and coordinating Direct the work that is to be done Control or evaluate what has been done. Define the purpose or problem and set objectives Collect and evaluate data relevant to forecasting the future (focus on the present) Develop alternative courses of action Decide on the best course of action Carry out the plan

Q: What do you mean by forecasting? Forecasting is Predicting future needs on the basis of historical data, present conditions, and assured future.

Q: Keeping records can reduce the risks for repetitive situations Q: Keeping records can reduce the risks for repetitive situations.(True) Q: Consulting with people that have more experience also can help to reduce risk. (True)

Q: Through job analysis, tasks are combined into categories of duties and responsibilities. These categories become the heart of job descriptions. (True)

Q: Emphasize that job descriptions without critical duties and responsibilities assure that the organization’s mission will not be accomplished. (True)

Q: Attracting, developing, and maintaining an effective workforce requires the following activities in addition to leading, motivating, and evaluating: Training Communication Compensation Discipline HRM planning Job analysis Recruitment Hiring Orienting

Q: Why do managers lead? Help employees accomplish their own career and personal goals. Help accomplish the farm’s mission and goals.

Q: Leaders have power through their: Positions Ability to reward Coercion Expertise Personal appeal and charisma

Q: How do we know the Qualities of a Good Plan? Provides a workable solution and meets the stated objectives. Is comprehensive; it raises all relevant questions and answers them. Minimizes the degree of risks. Is specific as to time, place, supplies, tools, etc. Is flexible (can be adapted to a change in the situation).

Q: What are the basic leadership styles? Directing : Control with close supervision Coaching : Explain, seek input and stay in control Supporting : Support without controlling Delegating : Turn over authority and responsibility

Q: Planning for change must be done carefully and thoroughly. (True)

Q: It is very much like making other plans but the main differences are the extent of forecasting, the degree of risk, and providing for the impact of the change. (True)

Q: What are the steps of Planning for Change process? Define problem and set objectives Gather past, present, and probable future data Evaluate pros and cons, generate alternatives Make the necessary decisions Implement the plan

Q: How to deal with resistance to change? Establish open communication Emphasize advantages (avoid overselling) Involve the workers in planning and carrying out change

Q: How do you Plan Your Own Time? Track your present time use, and analyze your use of time. Get rid of activities that waste your time (socializing, poor organization, procrastination, etc.). Set priorities. Initiate long-range solutions. Set aside regular periods of time without interruption for interviews, etc.

Q: Organizational Culture is Not a model for management but a theory that explains workplace behavior. (True) Q: Authority: right of supervisor to direct subordinates; flows from chain of command; vested in position, not person. (True)

Q: Power: ability to influence the behavior of others; may derive from: management, ability to reward, expertise, and/or respect. (True) Q: Power: right of supervisor to direct subordinates; flows from chain of command; vested in position, not person. (False)

Q: Authority: ability to influence the behavior of others; may derive from: management, ability to reward, expertise, and/or respect. (False)

Q: What do you mean by management by objectives? Is a process by which managers and subordinates work together in identifying goals and setting up objectives and make plans together in order to achieve these objectives.

Q: What are the Elements of the MBO Process? Central goals setting. Manager-Subordinate involvement. Matching goals and resources. Freedom of implementation. Review and appraisal of performance

Q: What are the Advantages of MBO? It encourages managers to do detailed planning. Both the managers and the subordinates know what is expected of them and hence there is no role ambiguity or confusion. The managers are required to establish measurable targets and standards of performance and priorities for those targets. It makes individuals more aware of the company goals, and subordinates feel proud of being involved in the organizational goals. MBO often highlights the area in which the employees need further training. The system of periodic evaluation lets the subordinates know how well they are doing. It improves communication between management and subordinates.

Q: What are the Disadvantages of MBO? MBO can only succeed if it has the complete support of top management. The top management is usually reluctant to support the process of MBO in which their subordinates would take equal part. MBO may be resented by subordinates because setting goals and objectives they may be set unrealistically high. The emphasis in MBO system is on quantifying the goals and objectives. So, some areas are difficult to quantify and even more difficult to evaluate.

Q: What are the Disadvantages of MBO? There is considerable paperwork involved and it takes too much of the manager’s time. The emphasis is more on short term goals. Most managers may not be sufficiently skilled in interpersonal interaction. The integration of MBO system with other systems such as forecasting and budgeting, is very poor. Group goal achievement is more difficult.