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Business Organization-1-July-Dec 14

Business Organization-1-July-Dec 14

Section A (20 Marks)

Write short notes on any four of the following:

  1. Administration and management are one
  2. Stability of Tenure of Personnel
  3. Nature and Characteristics of Coordination
  4. Scientific management
  5. Budgets and budgetary control


Section B (30 marks)

(Attempt any three)


  1. “Management is the art of getting things done through and with people in formally organized groups.” Explain?
  2. “Management implies the skill in getting things done through people.” Do you think this definition is adequate for the present day concept management?
  3. “To manage is to forecast and plan to organize to command to coordinate and to control.” Discuss.
  4. “The work of Taylor and Fayol was essentially complementary.” In the light of this statement, compare the contributions of Taylor and Fayol to the development management thought.

Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case “The Importance of Effective Management: A Chartered Management Institute” and answer the following questions:


Case Study: The Importance of Effective Management: A Chartered Management Institute


Managers are the biggest occupational group in the UK and over 800,000 new jobs will be created in management between 2010 and 2017. However, only one in five managers in the UK is professionally qualified. Research has shown that poor leadership may affect levels of employee motivation, reduce productivity or even impact on a business' reputation. Direct results might include a failure to reach sales targets, increased costs or high levels of absence or sickness.

Managers play a pivotal role in getting things done by motivating, inspiring and leading others at work. Employees who feel valued in the workplace tend to be more committed to their work. This results in higher levels of performance, reduced absenteeism and more competitive businesses.

The Chartered Management Institute (CMI) is the only chartered professional body in the UK dedicated to management and leadership. CMI has over 86,000 individual members and 450 corporate clients. Its core purpose is the promotion of the highest levels of management and leadership skills within both individuals and organisations. It meets this objective by providing a qualification framework and a full range of qualifications based on the National Occupational Standards for management and leadership which it founded. These provide benchmarks for measuring personal and corporate management performance.

CMI is not just an awarding body and provider of qualifications and training. The value of its membership for both individuals and organisations stems from the wide range of practical support and advice it offers managers and leaders at every stage of their careers. It also works with employers to help them develop and accredit their own in-house programmes to build leadership skills and attract and retain top talent.

Chartered Manager Award

CMI is the only organisation that offers the Chartered Manager Award. To receive this top award, a manager must demonstrate a range of essential management skills. However, this is only one way of showing effective management skills. CMI provides a wide range of routes for existing and potential managers to develop their skills and gain professional qualifications. Anyone can join CMI and use its support and resources throughout his or her career to upskill and gain professional qualifications, for example, an NVQ level 2 in Team Leading.

CMI Leadership and Management

According to the theorist Henri Fayol, the key functions of managers are to:

  • make forecasts and plans;
  • organise work;
  • command the people under them by giving instructions;
  • co-ordinate the resources (money, people, time) for which they are responsible;
  • control activities and people by measuring and correcting them to enable performance to fit the plans.

Each level of management requires appropriate skills and abilities:

  • Senior managers – set strategies and objectives - lead and inspire others
  • Middle managers – lead their teams to deliver the specified objectives
  • Junior managers – manage tasks and learn to lead others.


Leadership is the art or process of influencing people to perform assigned tasks willingly, efficiently and effectively. Enabling people to feel they have a say in how they do something results in higher levels of job satisfaction and productivity.

By effectively planning and controlling the people and processes for which they are responsible, managers provide a positive and professional environment. This can generate similar attitudes in their teams. This engagement of employees is a powerful asset in growing a business. However, research carried out by the UK government indicates that employee engagement is low in many UK workplaces. As many as one in five employees in UK establishments are disengaged. This can lead to absenteeism and failure to complete tasks or achieve targets.

CMI recognises that leadership and management skills are not exclusive of each other. Leadership is particularly important in senior management positions within an organisation. To become an effective manager, an individual should show qualities and competencies in six key areas. These cover both leadership and management skills and are the basis for the award of Chartered Manager:

  • Leading people providing purpose and inspiring trust;
  • Managing change encouraging creativity and driving change;
  • Meeting customer needs improving products and services to increase customer satisfaction;
  • Managing information and knowledge developing knowledge and communication to aid decision making;
  • Managing activities and resources on time, to budget and meeting quality required;
  • Self management using influence and persuasion, achieving personal goals.

Value of Personal Development

CMI believes strongly that all managers should be equipped and prepared to manage as well as to take on leadership roles. Knowing how to lead and motivate employees is a crucial part of this. CMI supports managers in developing practical skills through a wide range of activities including online learning, events and Continuous Professional Development.

People-focused Management

The concept of Theory X and Theory Y managers was first developed by Douglas McGregor. He was able to show that Theory Y managers are better able to create employee engagement. In a recent survey, CMI asked employees what type of manager they responded to best. The top two results showed employees preferred a Theory Y approach.

Research carried out by CMI also showed that over half of the managers surveyed felt that there is a short supply of management skills in two key areas:

  • Inspiring people and leading them through change, and
  • Innovation in business growth and development.

Practical Support from CMI

Management Styles

Justin wanted to improve his management style. A survey carried out by CMI showed that managers frequently use unsuitable or inappropriate styles for the task at hand. When asked, 'What is the dominant type of management style in your organisation?' The most common replies were 'authoritarian' or autocratic (21%) and 'bureaucratic' (16%). Far fewer of those surveyed identified positive features of management such as 'innovative' (7%), 'trusting' (9%), and 'empowering' (7%). Studies of managers at work have identified a number of distinct management styles and where these are appropriate.

Organisations with trained managers benefit from having a consistent and professional approach across the business.

Managers need to learn to adapt their style to ensure employees will respond. Through studying management  techniques and principles, he recognised the importance of his relationship with his employees.

Justin has become a more competent manager by trusting his team more and being open to their ideas. His company benefited as these changes made the team feel valued and raised levels of engagement.

Developing Management Skills

To remain competitive in the world economy, UK businesses need to develop a new generation of outstanding managers capable of leading people.

CMI's programmes help people develop management skills in a variety of ways. This might be through formal or informal training such as on-the-job training, e-learning or mentoring, or through continuous professional development, for example, social networking and management conferences or events. Membership of CMI provides access to all these routes and underpins a manager’s development.

Tailored Solutions

CMI also works with businesses of different types and from different industries to find the solutions that will meet their specific requirements. A business may need its managers to focus on how well they communicate, improve how they inspire trust in others or build relationships with those around them. Individuals and business-sponsored managers have equal access to the wide range of resources, information and guidance CMI provides for those following its programmes. This knowledge resource includes online research, case studies, e-learning content, tutorials, assessments, podcasts and a range of problemsolving tools to help managers find the right information when they need it.


Leadership skills are growing within businesses. There are around 4.8 million managers in the UK economy. However, the proportion of these with management-related qualifications is unlikely to rise by more than 20% over the next few years. An increasing number of employees are also required to take up management responsibilities in specialist technical areas. The result is that the estimated number of new managers needed each year is around 114,000.

Management and leadership skills are needed in every industry and every walk of life. It is essential therefore for new managers to be provided with opportunities to learn how to manage and lead people. CMI's qualification framework and the Chartered Manager Award help to enhance the status of the profession and provide a career route for management development.


  1. Briefly explain the importance of management in any organisation.
  2. Describe the role of manager in any organisation.
  3. Discuss the role of CMI in management as discussed in the above case.
  4. Explain the role of leadership in the management as discussed in the above case.
  5. What practical support is given by the CMI to the management?
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