February 2010

Master of Business Administration (MBA) Examination

Semester (Full time)

Management Principles and Practices

Time 3 hours)                                                                                      (Max. Marks 80

Note- Attempt any three questions from Section A. Section 13 is compulsory.

Section A

1.      Critically evaluate the systems school of management thought.

2.      Describe the tools and techniques of planning.

3.      Distinguish between line and staff forms of organisation and discuss their relative merits and demerits.

4.      “Developing people is a basic function and identity of manager." Discuss.

5.      What is Management By Exception (MBE)? Explain its advantages and limitations. How does its different from MBO?

6.      "Control is a fundamental management function and ensures work accomplishment according to planning." Analyse this statement and outline the essential steps involved in the control function.

Section B

Mr. Baper, the chairman of the Crystal Engineering Co. Ltd., is seriously thinking over product-expansion and activity-expansion. But his present problem Is the overall structure of his giant company having present total turnover of Rs. 1,500 crore. Company aims to reach Rs. 3,000 Crore by 2000 A.D. It deals in three major products as follows :

(1)        Motors, Switch Gears

(2)        Electric products like fans, bulbs and tube lights

(3)        Heavy duty engines.

Company would like to go into the areas of engineering services and turnkey projects in the coming two years. Its plants, are located at Mumbai, Nasik, Baroda and Hyderabad 90% of its electrical activity is assembling products.

Following ………….market share for various product groups.

Motors and Switch Gears       60%

Electric Products                     20%

Heavy Duty Engines               40%

Seasame India Ltd. is competitor for motors and switch gears. The company has to compete with Philston India Ltd. for electric products and with R & T for heavy duty engines. Company is presently, dominated by dealers. Each dealer has been taking undue advantages of overall confusion in the internal system of the company..

Present organisational structure of the company is shown in the following chart



Note : VP-Vice President

Present problems before the chairman are :

•      Lack of product coordination

•      Absence of dealer-control and clear-cut distribution policy

•      Poor vendor-network

•      inefficient working capital system

•      De-motivated employees

•      Disturbed market image and reducing market share

Present organisation structure has got serious drawback of absence of 'responsibility identification'. Another growing problem for the chairman is 30% of his senior-most managers are retiring in the next year.

Company has already got the prestigious 130-9000 Mark and it has also decided the renew its company's research-base is not upto the mark. Company would like to specially concentrate on its electric products, to improve, its market share.

It is reported that company's internal checks have failed to control growing wastage of resources, labour inefficiency and interdepartmental coordination. It has also been suspected that some of the key employees of the company are involved in illegal operations.

Mr. Baper wants his company to become one of the top ten star organisations in the country. After consolidation and improving its performance in domestic market, company would like to enter the export market.

Required :

1.         Suggestions on company's organisational structure.

2.         Discussion on restructuring of various systems and network.

3.         Action plan for product-expansion and activity-expansion.