2025
COMMERCE
Paper : BCM0200204
(Principles and Practice of Management)
Full Marks : 60
Time : 2½ hours
The figures in the margin indicate full marks for the questions.
Answer either in English or in Assamese.
1. Answer the following as directed : 1×8=8
(a) Which of the following is not a Classical Management Theory? (Choose the correct answer)
(i) Scientific Management Theory
(ii) Administrative Theory
(iii) Contingency Theory
(iv) Bureaucratic Theory
Answer:- (iii) Contingency Theory
(b) Which of the following is a technique used for group decision-making? (Choose the correct answer)
(i) Brainstorming
(ii) PERT
(iii) SWOT Analysis
(iv) Delegation
Answer:- (i) Brainstorming
(c) Herzberg's Theory is also known as ______ Theory. (Fill in the blank)
Answer:- Two-Factor Theory
(d) Likert's leadership theory includes four systems of management. (Write True or False)
Answer:- True
(e) Democracy in management emphasises:
(i) Autocracy
(ii) Participation
(iii) Centralization
(iv) Division of labour
Answer:- (ii) Participation
(f) Transactional leadership is based on a system of ______ and rewards. (Fill in the blank)
Answer:- Punishments
(g) Which issue is not generally considered ethical and environmental challenges?
(i) Pollution
(ii) Bribery
(iii) Productivity
(iv) Sustainability
Answer:- (iii) Productivity
(h) MBO (Management by Objectives) is also known as:
(i) MBE (Management by Exception)
(ii) Management by Results
(iii) Management of Change
(iv) Professional Management
Answer:- (ii) Management by Results
2. Write short answers to the following : (any six) 2×6=12
(a) Who proposed Managerial Role Model? Mention any one of the roles.
Answer:- The Managerial Role Model was proposed by Henry Mintzberg. He identified ten managerial roles which are grouped into interpersonal, informational and decisional roles. One important role is the Leader role. In this role, the manager guides, motivates and supervises employees to achieve organizational goals and ensures effective coordination and teamwork in the organization.
(b) Mention two Hygiene Factors of Herzberg's Motivation–Hygiene Theory.
Answer:- According to Herzberg’s Motivation–Hygiene Theory, hygiene factors are those elements that prevent dissatisfaction but do not create motivation.
Two important hygiene factors are salary and working conditions. Adequate salary provides financial security to employees, while good working conditions such as safety and comfort reduce dissatisfaction and help maintain employee satisfaction in the workplace.
(c) What is Corporate Level Strategy?
Answer:- Corporate Level Strategy refers to the overall strategy formulated by top management to determine the long-term direction of the organization. It involves decisions related to growth, diversification, expansion, mergers and allocation of resources among different business units. It helps the organization achieve its mission and maintain a competitive position in the market.
(d) Mention any two challenges of management in the 21st century.
Answer:- Management in the 21st century faces many challenges due to rapid changes in the business environment. One major challenge is globalization, which increases international competition and market complexity. Another challenge is technological advancement, which requires organizations to continuously innovate and adapt to new technologies to remain efficient and competitive.
(e) What is Workplace Diversity?
Answer:- Workplace Diversity refers to the inclusion of employees from different backgrounds such as gender, age, culture, religion, education and experience within an organization. It promotes equality, mutual respect and understanding among employees. Diversity enhances creativity and innovation by bringing different ideas and perspectives into the organization, leading to better decision-making.
(f) Mention two principles of Indian Ethos for Management.
Answer:- Two important principles of Indian Ethos for Management are trusteeship and respect for all stakeholders. Trusteeship means managers should act as custodians of organizational resources and use them responsibly for the welfare of society. Respect for stakeholders emphasizes ethical conduct, fairness and honesty towards employees, customers and the community.
(g) Write two techniques of group decision-making.
Answer:- Two important techniques of group decision-making are brainstorming and the nominal group technique. Brainstorming allows members to freely generate ideas without criticism, encouraging creativity. The nominal group technique involves individuals writing ideas independently and then discussing them collectively, ensuring equal participation and reducing dominance by a single member.
(h) Mention two principles of Goal-Setting Theory.
Answer:- Goal-Setting Theory states that specific and challenging goals lead to higher performance. One principle is that goals should be clear and specific so employees understand what is expected from them. Another principle is that goals should be challenging but achievable, as difficult goals motivate employees to work harder and improve performance.
(i) State any two characteristics of effective planning.
Answer:- Effective planning is future-oriented, as it focuses on setting objectives and determining actions in advance to achieve desired results. It reduces uncertainty and prepares the organization for future challenges. Another characteristic is that planning is continuous, meaning it is regularly reviewed and modified according to changes in the business environment.
(j) Mention two principles of Scientific Management.
Answer:- Two important principles of Scientific Management given by F.W. Taylor are science, not rule of thumb, and division of work and responsibility. Science, not rule of thumb means decisions should be based on scientific study and analysis rather than guesswork. Division of work and responsibility means management plans the work and workers execute it efficiently.
3. Write answers to the following : (any four) 5×4=20
(a) Explain the concept of Management as both Science and an Art.
Answer:- Management is considered both a science and an art because it has characteristics of both. As a science, management is based on systematic knowledge, principles and theories developed through observation, research and experimentation. It follows certain universal principles such as division of work, unity of command and span of control. These principles help managers to predict outcomes and make rational decisions. Management also uses scientific methods like data analysis, planning techniques and performance measurement to achieve organizational objectives.
At the same time, management is an art because it involves practical application of knowledge and personal skills. It requires creativity, experience, leadership ability and decision-making skills. Every organization and situation is different, so managers must use their judgment and adaptability. Effective communication, motivation and coordination cannot be achieved only by theory; they require practice and experience. Therefore, management is both a science, as it is based on principles, and an art, as it depends on skillful application of those principles.
(b) Explain the steps involved in effective decision-making.
Answer:- Effective decision-making is an important function of management. It involves a systematic process to choose the best course of action. The first step is identification of the problem. The manager must clearly define the problem that needs to be solved. Without proper identification, the decision may not be effective.
The second step is gathering relevant information. Managers collect necessary data and facts related to the problem. The third step is developing alternative solutions. Different possible options are generated to solve the problem. The fourth step is evaluating the alternatives. Each alternative is analyzed in terms of cost, benefits, risks and feasibility.
The fifth step is selecting the best alternative. The manager chooses the most suitable option among the available alternatives. The sixth step is implementation of the decision. The selected alternative is put into action. The final step is review and feedback. The results of the decision are monitored to ensure that objectives are achieved and corrective action is taken if necessary.
(c) Discuss the relevance of ‘Bhagavad Gita’ in guiding ethical and value-based management.
Answer:- The Bhagavad Gita provides valuable guidance for ethical and value-based management. It teaches the principle of Karma Yoga, which emphasizes performing duties sincerely without attachment to the results. This encourages managers to focus on responsibility, honesty and commitment rather than personal gain.
The Gita also highlights self-discipline, self-control and emotional stability. A manager who controls anger, greed and ego can take balanced and fair decisions. It promotes the concept of leadership through example, where a leader inspires others by his actions and character.
The principle of Nishkama Karma teaches that work should be done with dedication and integrity. It also emphasizes righteousness (Dharma), which guides managers to act ethically and fairly towards employees, customers and society. Thus, the Bhagavad Gita remains relevant in modern management by promoting moral values, ethical leadership and responsible decision-making.
(d) Differentiate between Transactional and Transformational Leadership.
Answer:-Following are the Differentiate between Transactional and Transformational Leadership
(e) Explain Maslow's Hierarchy of Needs Theory.
Answer:- Maslow's Hierarchy of Needs Theory was proposed by Abraham Maslow. According to this theory, human needs are arranged in a hierarchical order, and individuals are motivated to satisfy lower-level needs before moving to higher-level needs. The theory is represented in the form of a pyramid consisting of five levels of needs.
The first level is Physiological Needs. These are basic needs such as food, water, shelter and rest. These needs are essential for survival. The second level is Safety Needs. These include security, protection from danger, job security and financial stability. Once physiological needs are satisfied, individuals seek safety and stability.
The third level is Social Needs. These include love, affection, friendship and a sense of belonging. Employees desire good relationships with colleagues and acceptance in the workplace. The fourth level is Esteem Needs. These involve self-respect, recognition, status and appreciation. Employees want to feel valued and respected for their work.
The fifth and highest level is Self-Actualization Needs. This refers to the desire to achieve one’s full potential, personal growth and creativity. According to Maslow, once lower needs are satisfied, higher needs motivate individuals. The theory helps managers understand employee motivation and design suitable reward systems.
(f) Explain the importance of management.
Answer:- Management plays a vital role in the success of any organization. It helps in achieving organizational goals efficiently and effectively. By proper planning, organizing, staffing, directing and controlling, management ensures that resources are utilized in the best possible manner.
Management increases efficiency by reducing wastage of time, money and effort. It coordinates various activities and departments within the organization, ensuring smooth functioning. Proper management also helps in adapting to environmental changes such as competition, technology and globalization.
It provides direction to employees by setting clear objectives and guiding them towards achievement. Management also motivates employees, improves productivity and maintains discipline in the organization. Moreover, it contributes to economic development by creating employment opportunities and increasing production. Thus, management is essential for organizational growth and stability.
(g) Explain Likert's 4-system management approach to leadership.
Answer:- Rensis Likert proposed four systems of management which describe different leadership styles based on the level of participation and trust in employees. These systems explain how managers interact with their subordinates.
The first system is Exploitative-Authoritative. In this system, managers have little trust in employees. Decisions are made at the top level and communication is one-way. Motivation is based on fear and punishment.
The second system is Benevolent-Authoritative. Here, managers have some trust in employees but still maintain control. Decisions are mostly centralized, but some rewards are given to motivate employees.
The third system is Consultative. In this system, managers consult employees before making decisions. Communication flows both ways and employees are motivated by rewards and participation.
The fourth system is Participative. This is the most democratic system. Managers have full trust in employees and encourage participation in decision-making. Communication is open and teamwork is emphasized. Likert believed that the participative system is the most effective for organizational success.
(h) Explain the importance of social media in the business dynamics of the 21st century.
Answer:- In the 21st century, social media plays a significant role in business dynamics. It has transformed the way businesses communicate with customers and promote their products. Platforms like Facebook, Instagram and Twitter help companies reach a large audience at a low cost.
Social media enhances brand awareness and customer engagement. Businesses can interact directly with customers, receive feedback and build strong relationships. It also helps in digital marketing, online advertising and influencer promotion.
Through social media analytics, companies can understand customer preferences and market trends. It provides opportunities for small businesses and startups to compete with large companies. Social media also supports e-commerce and online sales. Therefore, it has become an essential tool for growth, competitiveness and innovation in modern business.
4. Answer any two of the following questions : 10×2=20
(a) Discuss the contribution of Henri Fayol in the field of Management.
Answer:- Henri Fayol was a French industrialist and one of the most important contributors to classical management theory. He is known as the father of Administrative Management. While F.W. Taylor focused on the shop-floor level, Fayol concentrated on managerial functions and administration at the top level. His ideas laid the foundation for modern management principles and are still relevant in present-day organizations.
One of the major contributions of Henri Fayol was the classification of business activities into six groups. These are technical activities, commercial activities, financial activities, security activities, accounting activities and managerial activities. According to Fayol, management is only one of the important functions of business, but it plays a central role in coordinating all other activities.
Fayol also identified five basic functions of management. These are planning, organizing, commanding, coordinating and controlling. Planning means forecasting and preparing a plan of action. Organizing involves arranging resources and assigning tasks. Commanding refers to directing employees. Coordinating means harmonizing activities of different departments. Controlling ensures that actual performance matches the planned objectives. These functions form the basis of modern management process.
Another significant contribution of Fayol is the formulation of 14 Principles of Management. Some of the important principles are division of work, authority and responsibility, discipline, unity of command, unity of direction, scalar chain, centralization, order, equity and esprit de corps. These principles provide general guidelines for effective management and administrative efficiency.
Fayol also emphasized the importance of managerial training and education. He believed that management is a skill that can be learned and developed. His administrative theory is universal in nature and can be applied to all types of organizations. Thus, the contribution of Henri Fayol has greatly influenced the development of management as a discipline and remains highly significant in the field of management.
(b) Explain McGregor's Theory X and Theory Y. What is their relevance in today's Organisational Management? 7+3=10
Answer:- Douglas McGregor proposed Theory X and Theory Y in his book “The Human Side of Enterprise.” These theories describe two different assumptions about human behavior and employee motivation in organizations.
Theory X is based on a negative view of employees. According to this theory, employees dislike work, avoid responsibility and need to be closely supervised. Managers who follow Theory X believe that workers are lazy and must be controlled through strict rules, supervision, punishment and external rewards. Decision-making is centralized and leadership style is authoritarian. This theory assumes that employees are motivated mainly by financial incentives and fear of punishment.
On the other hand, Theory Y is based on a positive view of employees. According to this theory, work is as natural as play or rest, and employees can be self-motivated and responsible. Managers who follow Theory Y believe that employees seek responsibility, are creative and can contribute to organizational goals if properly motivated. Leadership style under Theory Y is democratic and participative. Employees are motivated not only by money but also by recognition, achievement and personal growth.
Relevance in Today’s Organisational Management:
In modern organizations, Theory Y is considered more relevant because employees are educated, skilled and capable of taking responsibility. Participative management, teamwork and empowerment are widely practiced. However, in certain situations such as strict production environments, some elements of Theory X may still be used. Therefore, both theories help managers understand different employee behaviors and adopt suitable leadership styles according to the situation.
(c) Explain the impact of digitisation and automation in Management Process.
Answer:- Digitisation and automation have brought major changes in the management process. They improve efficiency, accuracy and speed in performing managerial functions. Their impact can be explained in the following points:
i) Impact on Planning: Digitisation helps managers collect and analyse large data through MIS, AI and data analytics. Forecasting becomes more accurate and planning becomes scientific and data-driven.
ii) Impact on Organising: Enterprise Resource Planning systems and cloud computing integrate different departments. Automation simplifies workflow and reduces paperwork.
iii) Impact on Staffing: Online recruitment, digital interviews and HR software make hiring faster and transparent. Payroll and attendance systems are automated.
iv) Impact on Directing: Communication tools such as email, video conferencing and collaboration platforms improve supervision and coordination. Managers can monitor performance in real time.
v) Impact on Controlling: Automated systems provide instant performance reports and reduce human errors. Quality control becomes more effective.
vi) Increase in Productivity: Automation reduces manual labour and saves time, leading to higher productivity and lower operational cost.
vii) Challenges: Digitisation also creates problems such as job displacement, cyber security risks and the need for continuous skill development.
Thus, digitisation and automation have modernised the management process and made organizations more competitive.
(d) Discuss the various techniques for group decision-making.
Answer:- Group decision-making involves participation of several members in solving organizational problems. Various techniques are used to improve effectiveness.
i) Brainstorming: Members freely express ideas without criticism. It encourages creativity and generation of maximum ideas.
ii) Nominal Group Technique: Members write ideas individually and then discuss them. Ideas are ranked, ensuring equal participation and avoiding dominance.
iii) Delphi Technique: Experts give opinions through questionnaires without meeting face-to-face. It is useful when experts are geographically separated.
iv) Committee Decision: A formal group discusses the issue collectively and takes decisions. It promotes shared responsibility but may be time-consuming.
v) Electronic Meetings: Technology-based meetings allow members to participate from different locations. It increases speed and flexibility in decision-making.
vi) Consensus Decision-Making: The group discusses until all members agree on a common solution. It promotes unity and commitment.
These techniques improve decision quality, encourage participation and reduce individual bias. Managers select suitable techniques according to the situation.
(e) Discuss the situational theories of Leadership.
Answer:- Situational theories of leadership state that there is no single best style of leadership. The effectiveness of leadership depends on the situation, including the nature of the task, the characteristics of followers and the environment. Leaders must adjust their style according to changing circumstances.
One important situational theory is Fiedler’s Contingency Theory. According to Fiedler, leadership effectiveness depends on the match between the leader’s style and the situation. He identified two leadership styles: task-oriented and relationship-oriented. The situation is evaluated based on leader-member relations, task structure and position power.
Another important theory is Hersey and Blanchard’s Situational Leadership Theory. This theory focuses on the maturity level of followers. It suggests four leadership styles: telling, selling, participating and delegating. Leaders should adopt a style according to the competence and commitment of employees.
The Path-Goal Theory developed by Robert House is also a situational approach. It suggests that leaders should choose a style that helps followers achieve their goals. The main styles include directive, supportive, participative and achievement-oriented leadership.
Situational theories emphasize flexibility and adaptability in leadership. They help managers understand that different situations require different approaches. Therefore, effective leaders are those who can adjust their behavior according to the needs of the organization and employees.
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