Principle of Management - Short Question Answer

Here in this section of Principle of Management Short Questions Answers, We have listed out some of the important Short Questions with Answers which will help students to answer it correctly in their University Written Exam.

1. Define Management.

According to KOONTZ & WEIHRICH, “Management is the process of designing and maintaining of an environment in which individuals working together in groups efficiently accomplish selected aims”.

“Management is the art of getting things through and with people in formally organized groups”.

Ex: Human Resource Management, Financial Management.

2. Is Management - an art or science?

Managing as practice is an art; the organized knowledge underlying the practice is a


Managing has the following features that make it an art.

  1. Creative
  2. Individual approach
  3. Application and dedication
  4. Initiative and

The following features make it a science.

  1. Systematic decision making
  2. Universal management process
  3. Situational output and
  4. Universally accepted

Thus management can be called both as an art and science.

3. What are the essential skills of Managers?

The major skills required or expected out of managers are:-

Technical skills – Pertaining to knowledge and proficiency in activities involving methods and procedures;

Human skills – Ability to work effectively with other persons and to build up cooperative group relations to accomplish organizational objectives;

Conceptual skills – Ability to recognize significant elements in a situation; and to understand the relationship among those elements; and

Design skills – Ability to solve problems in ways that will benefit the enterprise.

4. Define Scientific Management.

Scientific management involves specific method of determination of facts through observation. The concept of scientific management was introduced by Frederick Winslow Taylor in the USA in the beginning of 20th century. It was further carried on by Frank and Lillian Gilbreth, Henry Gantt, etc. It was concerned essentially with improving the operational efficiency at the shop floor level.

“Scientific Management is concerned with knowing exactly what you want men to do and then see in that they do it best and cheapest way”.

5. List the principles of Scientific Management.

Scientific management was introduced by F.W Taylor who is known as the Father of Scientific Management. He adopted scientific methods to increase the productivity and greater efficiency in production.

The principles of Scientific Management are:-

  • Separation of planning and working
  • Functional foremanship
  • Job analyzers
6. List the contributions of Fayol towards Management.

Henry Fayol is a French industrialist whose contributions are termed as operational management or administrative management. He followed „The Classical Approach‟ to the evolution of management thought. His contributions are given as follows:-

  • Grouping of activities of an industrial organization into six groups, namely- Technical, commercial, financial, security, accounting and managerial;
  • Identified six types of qualities of a manager are- Physical, mental, moral, educational, technical and experience;
  • Fourteen principles of Management namely- Division of Work, Authority and responsibility and so on; and
  • Five elements/functions of management- Planning, organizing, commanding, coordinating and
7. List out the Functions of management.
  • Planning
  • Organizing
  • Staffing
  • Leading or Direction or Coordination
  • Controlling
8. List out the Management level and functions
  • Top-level management
  • Middle level management
  • Lower level management

Top level management functions

  1. To formulate goals and policies
  2. To formulate budgets
  3. To appoint top executives

Middle level management functions.

  1. To train motives &develop supervisory level
  2. To monitor and control the operations performance

Low level management

  1. To train &develop workers To assign job
  2. To give orders and instructions
  3. To report the information about the workers


9. What are the roles played by a Manager?

Interpersonal roles

  1. Figurehead role
  2. The leader role
  3. The liaison role

Informational roles

  1. The recipient role
  2. The disseminator role
  3. The spokesperson role

Decision roles

  1. The entrepreneurial role
  2. The disturbance-handler role
  3. The resource allocator role
10. Define ‘Sole proprietorship’.

A Business unit that is owned and controlled by a single individual is known as sole trading or sole proprietorship concern. He uses his own savings for running the business. The sole trader makes all purchases and sells on his own and maintains all the accounts. He alone enjoys all the profits and bears all the losses.

Ex: A Fancy store.

11. What do you mean by a ‘Partnership firm’?

A partnership is an association of two or more persons to carry on business and to share its profit and losses. The relation of a partnership arises from contract. The maximum number of partners is limited to 10 in the case of banking business and 20 in the case of other business.

Ex: Chand & Co.

12. What do you understand by the term ‘Joint Stock Company’?

“By a Company we mean an association of many persons who contribute money or money‟s worth to a common stock and employs it in some trade or business and also shares the profit and loss as the case may be arising there from”.

There are two types of Joint stock companies:-

  • Private Limited company – Ex: M/s Key Media Ltd.
  • Public Limited company – Ex: M/s Pearl credits
13. Who is (i) an active partner (ii) a sleeping partner?

Active partner: Any partner who is authorized by others to manage the business is known as active partner.

Sleeping partner: Any partner who does not express his intention to participate in the business can be called as a sleeping partner. He will be just an investor who has a right to share profits.

14. What is a Co-operative Enterprise?

A Co-operative enterprise is a voluntary association of persons for mutual benefit and its aims are accomplished through self-help and collective effort. It may be described as a protective device used by the relatively less strong sections of society to safeguard their economic interests in the face of exploitation by producers and sellers working solely for maximizing profits. Ex: AAVIN Milk

15. What is a Private limited company?

A Private limited company is a company which has a minimum paid up capital as may be prescribed. It can be incorporated with just two persons. It can have a maximum of 50 members. It cannot go in for a public issue. It restricts the transfer of its shares. It is particularly suitable for industrial ventures which can get many concessions in respect of income tax. Ex: M/s Key Media Pvt. Ltd.

16. What is a Public limited company?

A Public limited company should have a minimum of 7 members and the maximum limit is unlimited. It can issue shares to the Public. The financial statement should be sent to all the members and to the Registrar of Companies. The shares of a public limited company can be transferred by the members to the others without any restriction by the company. Such transfers are made through organized markets called „stock markets‟ or „stock exchanges‟. Ex: M/s Pearl credits Ltd.

17. What is a Public sector Enterprise?

Public enterprise or State enterprise is an undertaking owned and controlled by the local or state or central government. They are financed and managed by the government. They are started with a service motive. Ex: NLC Ltd.

18. What is a Public Corporation?

A Public corporation is an autonomous body corporate created by a special statute of a state or central government. A public corporation is a separate legal entity created for a specific purpose.

Ex: LIC.

19. What is planning?

Planning is a process of selecting the objectives & determining the course of action required to achieve these objectives.

EG: The goal set for limited period like five year plans

20. Important observations subjected about planning?
  1. Planning is obtaining a future course of action in order to achieve an
  2. Planning is looking
  3. Planning is getting ready to do something
  4. Plan is a trap laid down to capture the future.
21. Define mission and vision?

Mission may be defines as a statement which defines the role that an organization plays in the society. EG: Canara Bank “Good People to Grow With”.

A vision statement indicates how the organization should be, after a particular time Period.

22. Define policies?

Policies are general statement or understanding which provides guidance in decisions making to various managers.

23. Define planning premises?

Planning premises are defined as the anticipated environment in which plans are expected to operate. They include assumptions or forecasts of the future & known conditions that will effects the operation of plans.

24. Explain in brief about the two approaches in which the hierarchy of objectives can be explained?

There are two approaches in which the hierarchy can be explained.

  1. top-down approach
  2. bottom-up approach

In the top-down approach, the total organization is directed through corporate objective provided by the top-level management. In the bottom up approach, the top level management needs to have information from lower level in the form of objectives.

25. Definitions of MBO:

KOONTZ &WEIHRICH: Management by objectives (MBO) is defined as a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organizational and individual objective.

26. Define strategy?

A strategy may be defined as special type of plan prepared for meeting the challenges posted by the activities of competitors and other environment forces.

27. Steps involved in strategic planning:
  1. Mission and
  2. Environmental analysis
  3. Corporate analysis
  4. Identification of
  5. Strategic decision making
  6. Implementations review &
28. Name the classification of planning premises?
  1. Internal and external
  2. Tangible and intangible
  3. Controllable and uncontrollable premises
29. What are the three approaches in selecting an alternative?
  1. Experience
  2. Experimentation
  3. Research and Analysis
30. What is tows metrics?

The tows metrics is a conceptual frame work for a systematic analysis, which facilitates matching the external threats and opportunities with the internal weakness & strength of the organization. In the tows metrics "T" stands for threat ‟O‟ stands for opportunities  "W"  for weakness and "S" for strength.

31. Define forecasting.

Forecasting is the process of predicting future conditions that will influence and guide the activities, behavior and performance of the organization. EG: forecasting the output by sales department.

32. Define Organization.

An identified group of people contributing their efforts towards the attainment of goals is called an organization. Organization is the process of establishing relationships among the members of the enterprise.

33. What is the purpose of Organization?
  • Facilitates Administration
  • Increases the efficiency management
  • Stimulates creativity and innovation
  • Facilitates growth and diversification and
  • Facilitates co-ordination and
34. What is organizing?

Organizing refers to the formal grouping of people and activities facilitate achievement of the firm‟s objectives.

Organizing may be defined as the process of

  1. Identifying and classifying the required activities i.e Job Design
  2. Grouping the work to be performed i.e Departmentation
  3. Defining and delegating responsibility and authority i.e Delegation of authority
  4. Span of Control
35. What is Job design?

Job design is usually broad enough to accommodate people‟s needs and desires. It may be especially appropriate to design jobs for exceptional persons in order to utilize their potential. People spend a great deal of time on the job and it is therefore important to design jobs so that individuals feel good about their work.

Two important goals of job design are:-

  • To meet the organizational requirements such as higher productivity, operational efficiency, quality of products/service
  • To satisfy the needs of the individual employees like interests, challenge, achievement etc.
36. What is Organization Structure?

In organization structure simply by means the systematic arrangement of people working for the organization. The organization is concerned with establishment of positions and relationship between positions. The organization structure has two dimensions.

  1. Horizontal
  2. Vertical


37. What is an Organizational chart?

According to George Terry, “Organizational chart is a diagrammatical form, which shows the important aspects of an organization including the major functions and their respective relationships, the channels of supervision, and the relative authority of each employee who is in charge of each respective function”. It is a representation of the framework or structure of an organization. It may be a vertical or top-down chart, horizontal or left to right chart and circle or concentric chart.


38. What are the Uses of Organization Chart?
  1. The organization chart pinpoints the weakness of an organization. This will helps to overcome the short coming of organization.
  2. It tells quickly who is responsible for particular
  3. It is useful in showing nature of an organization and changes if any in the existing staff and new
39. Distinguish between authority and power.

Power is the ability of individuals or groups to induce r influence the beliefs or actions of other persons or groups.

Authority in organization is the right in a position to exercise discretion in making decisions and affecting others.

40. What are the different bases of power?
  1. Legitimate Power
  2. Referent Power
  3. Reward Power
  4. Coercive Power
41. What is Functional Authority?

It is the right which is delegated to an individual or a department to control specified processes practices, policies or other matters relating to activities, undertaken by persons in other departments.

42. What is Formal Organization?

The structure of jobs and positions with clearly defined functions and relationship as prescribed by the top management and bound by rules, systems and procedures.

43. What is Informal Organization?

A network of interpersonal relationships that arise when people associate with each other.

44. What is Departmentation in POM?

The organizational process of determining how activities are to be grouped is called departmentation.

45. What is Empowerment in POM?

Empowerment means that employees, managers or teams at all levels in the organization are given the power to make decision without asking their superiors for permission.

46. What is Decentralization in POM?

The tendency to disperse decision making authority in an organized structure.

47. What do you mean by a strategy?

Strategy is defined as the determination of long-term objectives of an organisation. Making the best choices for the future and allocating the resources necessary to accomplish the objectives.

48. What is decision making?

Decision making is defined as the selection of a course of action among alternative courses of action. Decision making should be rational. Decision making involves a choice among alternatives.

49. What is the purpose of planning?
  1. To determine the direction of an organization
  2. To provide a basis for team work
  3. To minimize wastages in the future
  4. To facilitate decision making
  5. To improve morale of the employees
50. State the importance of HRM?
  1. To achieve competitive advantage over other organization
  2. To improve the efficiency of the organization 
  3. For the fuller utilization of available resources
  4. Cost effective administration
51. Define Direction.

Direction may be defined as the process of instructing, guiding and inspiring human factors in the organization to achieve organization objectives.

52. State two important characteristics of Directing.

Any two characteristics of Directing are:

  • Directing is an important managerial function through which the management initiates actions in the organization
  • It is a continuous process and it continues throughout the life of the organization
53. Mention the importance of Leadership
  1. Motivating Employees
  2. Leader develops team work
  3. Better utilization of manpower
  4. Creating confidence to followers
  5. Directing group activities
  6. Building morale
  7. Maintaining discipline


54. Name the various leadership styles.
  1. Autocratic or Dictatorial leadership
  2. Participative or Democratic leadership
  3. Laissez – faire or Free – rein leadership
55. What are the advantages of democratic leadership?
  1. The subordinates are motivated by participation in decision – making This will also increase job satisfaction
  2. Absence of leader does not affect output
  3. Labour absenteeism and turn – over will be minimum
  4. The quality of decision is improved
  5. The leader multiplies his abilities through the contribution of his followers


56. What is Laissez – faire?

Complete freedom is given to the subordinates so that they plan, motivate, control and otherwise be responsible for their own actions.

57. List out the human factors in managing.

The Human factors in managing include:

  • Multiplicity of roles
  • Individuality and
  • Personal dignity


58. Define creativity.

Creativity is defined as the ability to produce new and useful ideas through the combination of known principles and components in novel and non-obvious ways. Creativity exists throughout the population largely independent of age, sex and education.

59. What are the steps involved in creative process?

Creativity is defined as the ability to produce new and useful ideas through the combination of known principles and components in novel and non-obvious ways. The steps involved in creative process are:

  • Saturation
  • Preparation
  • Frustration and incubation
  • Inspiration or illumination
  • Verification


60. How are problems solved by creative tool?

Creativity tools are designed to help you devise creative and imaginative solutions to problems.


61. What is a SCAMPER tool?

SCAMPER is a checklist that helps us to think of changes where

S - Substitute

C - Combine

A - Adapt

M - Modify

P - Put to another use

E - Eliminate and

R - Reverse.

62. What is a meant by reframing matrix?

Reframing matrix is a simple technique that helps to look at business problems from a number of different viewpoints. The approach relies on the fact that different people with different experience approach problems in different experience approach in different ways.

63. What are the steps involved in simplex tool?

Simplex tool is an industrial-strength creativity tool. The steps involved in simplex tool are:-

  • Problem finding
  • Fact finding
  • Problem definition
  • Idea finding
  • Selection and evaluation
  • Planning
  • Sell data and
  • Action


64. Differentiate Innovation and Invention.

Innovation means the use of creative ideas. It is not only relevant to high-tech enterprises but also crucial for old-line, traditional companies, which may not service without the infusion of innovation.

Ex: A new product or a service.

Invention means really finding new things that are not already available. It is mostly applicable in the field of science. Ex: Invention of radio.

65. How can be harmonizing objectives achieved?

Harmonizing objectives can be achieved through:

  • Mutual trust
  • Cooperation and understanding and
  • Workers participation in management
66. Define Multiplicity of Roles.

Individuals are not only the productive factor in management Plans. They are members of social system of many organizations.

67. Mention the various factors involved in using motivational techniques:
  1. Money
  2. Reward : intrinsic and extrinsic
  3. Participation
  4. Quality of working life


68. What is job enrichment?

Building into jobs a higher sense of challenge and achievement. (or)

Job enrichment is therefore based on the assumption that in order to motivate personnel, the job itself must provide opportunities for the achievement, recognition, responsibility, advancement and growth.

69. What are the limitations of job enrichment?
  1. Job enrichment is based on the assumption that workers want more. But, in practice, most of the workers may prefer less responsible jobs with good social interaction. Such workers may show feelings of inadequacy and fear of failure to job enrichment.
  2. Some jobs cannot be enriched beyond a certain point.
70. Give the required guidelines to make effective job enrichment.
  1. Use job enrichment selectively after taking into account situational variables such as job characteristics, personal characteristics of employees, Organizational level etc
  2. Provide a supportive climate for innovation and change
71. Define Leadership.

Leadership is the process of influencing the behavior of others towards the accomplishment of goals in a given situation.

Leadership is the ability to influence others and enthusiastically making them to achieve the desired results.


72. Mention the various elements in the process of communication.
  1. Sender
  2. Communication Channels
  3. Symbols
  4. Receiver
  5. Noise and feedback in communication
73. List the different types of communication flow.
  1. Downward Communication
  2. Upward communication
  3. Horizontal or Lateral Communication
74. Explain the creative process?

Creativity: Creativity is the ability to create large number of ideas quickly. Creative process has interacting and over lapping phase. It has four phases:

  • Unconscious Scanning
  • Intuition
  • Insight
  • Logical Formulation

Unconscious Scanning: A condition beyond consciousness.

Intuition: It connects unconscious with conscious

Insight: It is the result of hard work

Logical Formulation: referred to as verification

Techniques to enhance creativity:

The following are the techniques to enhance Creativity:

  1. Brainstorming – Technique used for problem solving by using new methods
  2. Synectics – In this technique group members are selected according to problem of organization.Then a group leader chose who plays a vital role in this process.
75. What is brainstorming?

This kind of training is given to increase people's creativity and decisional ability. These types of training individual participants are encouraged to give their own ideas to resolve the existing problem.

76. What is Feed Forward Control?

Feed Forward Control involves evaluation of input and corrective measures before a particular sequence of operation is completed. It is based on timely and accurate information about changes in the environment.

77. What is Concurrent Control?

Concurrent Control is also known as "real-time" or steering" control. It provides for taking corrective actions or making adjustments while the programmers is still in operation and before any major damage occurs.

78. List out the important features of controlling?
  1. Function of management
  2. Continuous function
  3. Future -oriented and
  4. Action-oriented.
79. What is Flexible Budget?

Flexible Budget is one which is designed to change in accordance with the level of activity actually attained. It is suitable when the estimation of demand is uncertain and the enterprise works under conditions of lack of material and labor power.

80. What are the benefits of control?
  1. Control eliminates actions which deviate or which is not in conformity with the cherished goals of the firm.
  2. It offers enough information for future planning and organizing.
81. List out the characteristics of Control function?
  • Functional Management
  • Continuous function
  • Future-oriented
  • Action-oriented
  • Measuring the performance and
  • Planning the control
82. What are the basic steps involved in the process of controlling?
  • Establishment of standards
  • Measurement of performance
  • Comparing performance with the standard
  • Taking corrective action
83. What is performance Appraisal?

Performance appraisal is the system of measuring Employee performance and giving feedback to the employee regarding his performance.

84. What are the advantages of performance Appraisal?
  1. Getting performance Feedback
  2. Identifying training needs
  3. Motivating Personnel
  4. Promotional consideration
  5. Pay fixation
85. What is Globalization?

Doing business without geographical boundaries is known as globalization.

86. How was your experience of managing a team? What challenges did you face?

Team management is an essential skill that most employers look at when hiring a marketing manager, thus, this is one of the most popular marketing interview questions for which you need to prepare. If you have managed a team in your current/previous organization, you can start from the team hiring discussion, and further, state examples of any incident in which you and your team worked closely to make a marketing campaign successful. Coming to the challenges, this will not furnish a good impression when you state the shortfalls of your teammates. Instead, you can back the problem with a solution that you performed to overcome it.

87. What is functional conflict?

Functional conflict refers to conflict that supports the goals of an organisation. It may be called ‘Constructive conflict’.

The following are the benefits that are derived from this type of conflict:

  1. It fosters creativity
  2. It is a major stimulant for change
  3. It clarifies issues and goals
  4. It enhances communication
  5. It increases energy within a given unit
  6. It overcomes organisational inertia (apathy) and leads to organisational leaning and change
  7. It can also improve decision making and organisational learning by revealing new ways of looking at a problem or the false erroneous assumptions that distorts decision making


88. Define change and change management.

Change: In the context of an organisation change is the implementation of new procedures or technologies intended to realign an organisation with relentless changing demands of its business environment, or to capitalize on business opportunities.

Modern day environment is highly characterised by rapid change and since the business organisation is a sub-system of the environment, there is need to constantly revise organisational goals and policies to ensure that they are kept abreast with environmental changes.

Change Management: Refers to the proactive anticipation of change and being prepared for the change in order to cope with, introduce and sustain transformation. It looks at the way managers adjust their plans, activities etc to cope with the turbulent environment.

89. Define organisational culture.

Organisational culture is the wide pattern of, shared values, norms and ways of managing, assumptions about the organisation’s mission, perceptions of how best to adapt to the environment etc.

And interesting aspect about organisational culture is that some or most of its characteristics may be largely unstated and in some instances individual organisational members may even be unaware of these.

The organisational culture is therefore not an overnight thing – it is cultivated over a period of time by management, learnt by employees and subsequently passed over to new employees. It also tends to changes over time.

Whenever there exists a well-coordinated culture, there tends to be less distinction between formal and informal rules and regulations, activities and interactions.

Culture is indeed not entirely positive phenomenon. For instance, the establishment of sub-cultures within organisations may in fact create politics which may cause organisational instabilities and ineffectiveness.

90. What do you understand by the term Management by Exceptions (MBE)

MANAGEMENT BY EXCEPTION (MBE) is the focusing by management of its attention upon those items or processes etc, which are deviating from budget, on the principle that matters conforming to budget need no management attention. Computers may be programmed to report on matters deviating from plans.


91. What is Management by Walking around (MBWA)?

Robins Coulter describes Management by Walking Around as a control technique in which an entrepreneur or manager is out in the work area, interacting directly with employees and exchanging information about what is going on.

When managers use this method of control they can find out what is happening in their workplace by talking directly and informally with their employees. This method enables managers to be well informed about what is taking place on the ground. It reduces the need for detailed reports.

92. Why companies globalise?

There are at least four reasons why companies go international: (1) to gain access to more reliable or cheaper resources, (2) to increase return on investment, (3) to increase market share, (4) to avoid foreign tariffs and import quotas.

  1. To gain access to more reliable or cheaper resources

Most companies globalise in order for them to get a more reliable and / or cheaper supply of raw materials than they can find at home; others can venture into globalisation in order to get less- expensive labour.

Companies may also invest in foreign facilities as a way to escape political instability at home or to gain access to a larger pool of technological know-how.

2. To increase return on investment

Businesses, like individuals, shift their funds ‘from areas where return on capital is lower to those where they are high.’

By globalising, companies also increase their chances for achieving a certain return on investment and stable or growing profits.

3.To increase market share

According to Steven Hymer, companies that expand internationally tend to be ‘oligopolistic’; that is, they tend to dominate their domestic market, either because their products are highly desirable or because their size lets them reap economies of scale. To continue growing, though, they have to expand globally.

4.To avoid foreign tariffs and import quotas

Governments often use tariffs or import quotas to protect domestic business concerns. Therefore direct investment in the foreign country is a more secure solution to the threat of foreign tariffs and import quotas.

93. Define groups and state the types of groups. Also outline the functions of informal groups.
What is a group?

Two or more interacting and interdependent individuals who come together to achieve particular goals. Groups can either be formal or informal.

Formal groups

Are work groups established by the organization that have designated work assignments and specific tasks. Appropriate behaviours are established by and directed towards organizational goals.

Informal Groups

These are social groups that occur naturally in the workplace in response to the need for social contact. They tend to form around friendships and common interest.

Types of Formal Groups

Command Group – these are the basic, traditional work groups determined by formal authority relationships and depicted on the organisational chart. They typically include a manager and those employees who report directly to him or her.

Cross Functional Teams – these bring together the knowledge and skills of individuals from various work areas, in order to come up with solutions to operational problems. They also include groups whose members have been trained to do each other’s jobs.

Self Managed Teams – these are essentially independent groups that, in addition to doing their operating jobs take on traditional management responsibilities such as hiring, planning and scheduling and performance evaluations.

Task Forces – these are temporary groups created to accomplish a specific task. Once the task is complete the group is absorbed.

Functions of Informal Groups

They maintain and strengthen the norms (expected behaviour) and values their members hold in common. They give members feelings of social satisfaction, status and security

They help their members communicate through developing informal channels of communication – grapevine. They help solve problems at shop floor level.


94. Compare groups and individuals.
Individual Vs Group Decision Making
  1. In establishing objectives, groups are usually superior to individuals because of the greater amount on knowledge available to groups.
  2. In choosing an alternative, group interaction and the achievement of consensus usually results in the acceptance of more risk than would be accepted by an individual decision
  3. In identifying alternatives, the individual efforts of group members encourage a broad search in various functional areas of the
  4. In evaluating alternative, the collective judgment of the group, with its wider range of view points, seems superior to those of an individual decision
Assets of Group Decision Making
  1. Groups can accumulate more knowledge and facts
  2. Groups have a more broader perspective and consider more alternative solutions
  3. Individuals who participate in the decision are more satisfied with the decision and are more likely to accept
  4. Group decision making processes serve an important communication
Liabilities of Group Decision Making
  1. Groups often work more slowly than individuals
  2. Group’s decisions involve a considerable amount of compromise that may lead to less than optimal
  3. Groups are often dominated by one individual or a small clique thereby negating many of the virtues of group
  4. Overreliance on group decision making can inhibit management’s ability to act quickly and decisively when
95. Define teams and state the types of teams.

A team is a small group with complementary skills who hold themselves mutually accountable for a common purpose, goal and approach. Teams unlike groups are not formed on a random basis abut are carefully chosen by management.

Types of teams Advice teams

These are created to broaden the information base for managerial decision making e.g. quality circles. They are created to facilitate suggestions for improvement from volunteer production or serves workers. They have low degree of specialisation, very little coordination and is done in discretion time.

Production teams

These are teams that are set up to perform day to day operations. They are involved in the production of goods and services. There is low specialization and high levels of coordination because the activities of one team affect activities of the other team (high dependence).

Project teams

These are teams that require problem solving skills and need for creativity, also the need to apply more specialized knowledge and they thrive on high levels of coordination. Such teams are mostly cross functional teams.

Action teams

Action teams must exhibit peak performance on demand. They also demand high levels of specialisation and coordination e.g. Surgery teams, labour negotiating teams etc

Virtual teams

These are teams that use computer technology to link physically dispersed members in order to achieve a common goal.