March 2011

Master of Business Administration (MBA) Examination

I Semester

Management Principles and Practices

Time 3 Hours)                                                                                                   (Max. Marks 80

Note : Attempt any three questions from Section A. Section B is compulsory. All questions carry equal marks.

(Section A)

1.      What is Scientific Management? Discuss the F.W. Taylor's contributions to Scientific Management Thought.

2.      What is Planning Process ? Explain various steps in the Planning Process.

3.      Explain the Concept of Management by Objectives (MBO). Also explain the benefits and weaknesses of MBO. Is MBO modern technique of Performance Appraisal? Explain.

4.      What is Strategy ? Why do organisations develop strategies ? Discuss different types of strategy. Also list the limitations being faced by a strategists during its formulation.

5.      Distinguish between Authority Delegation and Decentralisation Processes. Discuss the benefits of delegation and decentralisation, under Time Management Principle.

6.      Define the term Control. Discuss the need and process of Managerial Control. Give examples.

(Section B)


After considerable research and discussion, the decision was reached by the executive committee for new product planning to add a new product line to the Tanner line of household appliances. Members of this committee include of the production manager, the sales manager, the purchasing agent, the director of research, and the advertising manager. The company has two new product lines that could be introduced to the market next year. However, due to the limitations of sales personnel and financial resources, only one product line can be added next year. Company personnel have devoted much effort to estimestesales potentials, production costs, administrative problems, and profits. important data shown in Exhibit I.

                                         Economic Prosperity                         Economic Recession

                                         Expected      Expected                      Expected       Expected

                                         Profit            Loss                              Profit             Loss

Product line 1                  $275,000      -                                    -                     $150,000

Product line 2                  $100,100      -                                    $300,000        -

Recent published economic reports state there is a 30-35 percent chance of a recession next year. The president of Tanner Company is anxious to secure as many pertinent facts as necessary to plan the launching of the new product line. Yet she strongly believes that the marketing campaign in launching the new product and the aggressiveness of promoting it are essential and critical to the new product line's success or failure. On the other hand, the director of research suggests that there is no virtue in taking unnecessary chances. The company should not gamble - losses are too difficult to recoup. The best plan includes expecting the worst combined with selecting the product line that can hurt the company the minimum amount.


1.         What other criteria than those mentioned might the manager use in planning for the new product line ? Discuss.

2.         Which new product line do you recommend be adopted ? Why ?

3.         Is the company using Strategic Planning? Justify your answer.