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.

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Solution

1. a) Organizing
b) controlling
2. a) Departmentalization,
b) Critical point control,
c) Controlling by exception.

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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.

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1. a) Organizing b) controlling2. a) Departmentalization, b) Critical point control, c) Controlling by exception.

1. a) Organizing
b) controlling
2. a) Departmentalization,
b) Critical point control,
c) Controlling by exception.