In Jagdama Ltd., all the activities were divided into seven department as Purchase, Marketing, Production, Personnel, Finance, Accounting and correspondence. General Manager Sh. Ram Niwas analysed and concluded that marketing, production and finance were the departments on which success of the business is dependent. Short comings in other departments, would not affect much the success of the business. He also decided deviation tolerance limits of these three main departments. If deviation goes beyond these tolerance limits, then only the same will be brought to the notice of Sh. Ram Niwas.
1. Identify functions of management referred in the above paragraph.
2. Describe the relevant concepts of identified function by quoting lines from the above paragraph.

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Solution

(i) Organizing
Controlling
(ii) Critical Point Control Management by Exception

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Q. Mr. Sandhu- worked as a manager in a company manufacturing stationery items for 10 years. Later he thought of starting his own business as he acquired the skills and expertise in past years. He started his own venture. He divided the organisation into six major departments- Production, Purchase, Marketing, Legal, Human resource and Finance. After a month, he called upon the meeting of all the departmental heads in his office and told the production marketing and finance department managers to be very vigilant as their departments are critical to the success of the business. Short comings in Purchase, Personnel or Legal department would not affect much the success of business. Therefore, Mr. Sandhu determined deviation tolerance limits for the critical departments.
1. Identify the two functions of management referred above.
2. Describe the relevant concept of the identified functions.

Mr. Sandhu worked as a manager in a company manufacturing stationery items for 10 years. Later he thought of starting his own business as he acquired the skills and expertise in the past. He started his own venture and divided the organisation into six major departments- Production, Marketing, Purchase, Legal, Human resource and Finance. After a month, he called upon a meeting of all the departmental heads in his office and told the managers of the production, marketing, and finance departments to be very vigilant as their departments are critical to the success of the business. Shortcomings in personnel, purchase and legal departments would not affect the success of the business. Therefore, Mr.Sandhu determined deviation tolerance limits for the critical department. Identify the functions of management referred above.

Mr. Dey worked as a manager in a company manufacturing stationery items for 10 years. Later he thought of starting his own business as he acquired the skills and expertise in the past. He started his own venture and divided the organisation into six major departments- Production, Marketing, Purchase, Legal, Human resource and Finance. After a month, he called upon a meeting of all the departmental heads in his office and told the managers of the production, marketing, and finance departments to be very vigilant as their departments are critical to the success of the business. Shortcomings in personnel, purchase and legal departments would not affect the success of the business. Therefore, Mr.Sandhu determined deviation tolerance limits for the critical department. Identify the relevant concept of controlling in the above situation.

Bhuvan, Rishabh and Piyush have decided to start a business of manufacturing toys. They identified the following main activities which they have to perform

• Purchase of raw material

• Purchase of machinery

• Production of toys

• Arrangement of finance

• Sale of toys

• Selection of employees

In order to facilitate the work, they thought that four managers should be appointed to look after production, finance, marketing, and personnel.

(i) Identify the function of management involved in the above paragraph.

(ii) Quote the lines from the above paragraph which helps you to identify this function.

(iii) State the steps followed in this process.

In a company, different departments are formed for looking after production, sales, marketing and finance. Identify the principles of management applicable here.

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(i) Organizing Controlling (ii) Critical Point Control Management by Exception

(i) Organizing
Controlling
(ii) Critical Point Control Management by Exception