NCC Assignment BM

NCC Assignment IAD Business Management
NCC International Advance Diploma in Computer

Studies
Business Management
Candidate Name : Aamir Shahzad

NCC Candidate No :
Title : market change, growth
and decline
Examination Cycle : December 2004
Candidates attempting to gain an unfair advantage or colluding in anyway

whatsoever (other than on joint assignments) are liable to be disqualified.
Plagiarism is an offence.
Expected candidate time allocation: 35 to 40 hours.
Mark Moderated Mark Final Mark
Marker’s comment
Moderator’s comment
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Table of content
1. Introduction 3
2. Activity 1 3
2.1. Definitions 3
2.1.1.Monopolistic market 3
2.1.2.Oligopolistic market 5
2.1.3.Competitive market 7
2.2. Microsoft 7
2.3. Apple 10
2.4. Sony 11
3. Activity 2 13
3.1. Return on investment 13
3.2. Function of HR 15
3.3. Recruitment advert 18
4. Activity 3 19
4.1. Tips on firing employee 19
4.2. Illegal reasons for firing employees 20
4.3. Firing employee with employment contact 21
4.4. Rules and regulations 23
4.5. Federal fair employment laws 27
4.6. Firing restrictions in written laws 28
5. Bibliography 28
6. Appendices 30
6.1. Employment termination contract 30
7. Index 31
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1. Introduction
Business management is a dynamic process, as organization function in ever
changing market conditions. This assignment is an investigation and comment on
different aspect of growth, decline and change in market, and also some of the issues
that management face in such circumstances.
2. Activity 1
In this activity we did these tasks
1. Define the term
a. Monopolistic market
b. Oligopolistic market
c. Competitive market
2. Find the market type, core products, new product and their effect of
Microsoft, Apple and Sony.
2.1. Definitions
2.1.1.Monopolistic market
We can understand monopolistic market in following words.
When there is no competition and only one individual or
business provides a good or service, the market cannot set an
efficient price. In such instances, a monopoly is said to exist.
However, economists maintain that a monopoly does not exist
simply because there is only one provider of a good or service.
The monopoly doesn't really give the consumers a fair chance
to test the new market, but almost forces them to buy into
whatever product the monopoly sells.
Along with using their current products to dominate new
markets, monopolies sometimes take over markets where they
aren't competitors. Because the monopoly has so much
revenue, the cost of taking over another company is minimal.
Monopolies create a lot of fear in consumers because they
mean that even in this capitalist society, people cannot get the
best products for their money. The monopolies slow down
innovation and efficiency, buying other companies when they
do not have the leading product, and raising prices to make
more money.
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A monopoly can set prices artificially high because it has no

serious competitors to force it to do otherwise. It can also
arbitrarily limit the supply of the good or service it provides to
create scarcity and drive prices up.
Legally, a monopoly or "trust" exists when an individual or firm
can explicitly force competitors out of business by slashing
prices, buying up and hoarding supplies, bribery or
intimidation.
In economics, a monopoly (from the Greek monos, one +
polein, to sell) is defined as a market situation where there is
only one provider of a product or service. Monopolies are
characterized by a lack of economic competition for the good or
service that they provide (and a lack of viable substitute
goods), as well as high barriers to entry for potential
competitors on the market.
2.1.1.1.Characteristics
A. Monopoly is a market with:
1. High barriers to entry
2. Single seller of a well-defined product for which there
are no good substitutes
B. Only a few markets exist with only one seller but it is worth
studying
1. Help us understand markets with few sellers
C. Price and output under monopoly
1. The market demand curve is the monopolist’s demand
2. Monopolist’s will expand output until marginal revenue
equals marginal cost
a. The monopolist will charge the price on the
demand curve consistent with that output
D. Profits under Monopoly
1. High entry barriers protect monopolists from
competitive pressures
a. Monopolists can earn long run profits
2. Sometimes demand and costs conditions are such that
monopolists can’t earn a profit
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a. When the demand curve is always below, the

monopolist will incur losses
2.1.2.Oligopolistic market
An oligopoly is a market form for "few sellers". Because there
are few participants in this type of market, each oligopolist is
aware of the actions of the others. Oligopolistic markets are
characterised by interactivity. The decisions of one firm
influence, and are influenced by, the decisions of other firms.
Oligopolistic competition can give rise to a wide range of

different outcomes. In some situations, the firms may collude
to raise prices and restrict production in the same way as a
monopoly
2.1.2.1.Characteristics
A. Small number of rival firms
B. Interdependence among oligopolistic firms
1. Decisions of a firm often influence the demand, price,
and profit of rivals
C. Substantial economies of scale
1. Large scale production is generally required to achieve
minimum per unit cost
D. Significant barriers to entry
1. Economies of scale
2. Patent rights
3. Control over an essential resource
4. Government imposed entry restraints
5. High entry barriers distinguishes oligopoly from a
competitive price searcher market
E. Products may be either identical or differentiated
1. Non-price competition includes style, quality, and
advertising
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2.1.2.2.Price and output

A. No general theory exists for price and output under oligopoly
1. If the firms operated independently, they would drive
down the price to the per unit cost of production
2. If the firms colluded perfectly, the price would rise to
the monopoly price level.
3. The outcome is usually between these two extreme
outcomes
B. Incentives to Collude and form cartels
1. Collusion: Agreement among firms to avoid competitive
practices such as price reductions in order to
maximize market profits
2. Cartels: An organization of sellers who coordinate
supply decisions in order to maximize members’
profits
3. Oligopolists have a strong incentive to collude and raise
their prices
4. Each firm has an incentive to cheat by lowering their
prices because the demand curve facing each firm is
more elastic than the market demand curve
5. This conflict makes collusive agreements difficult to
maintain
C. Obstacles to collusion
1. As the number of firms in an oligopolistic market
increases, the likelihood of effective collusion
declines.
a. As the number of firms increases, the objectives
of individual firms will conflict with those of the
industry
2. When it is difficult to detect and eliminate price cuts,
collusion is less attractive.
a. Price cuts can be better credit terms, faster
delivery, free added services, improvements in
quality, etc.
3. Low entry barriers are an obstacle to collusion.
a. Long run profits will not exist if potential rivals
are able to enter the market
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4. Unstable demand conditions are an obstacle to

collusion
a. The more expectations differ among firms, the
higher the possibility of conflicts among the
firms
5. Vigorous antitrust action increases the cost of collusion
a. The higher the cost of getting caught, the less
collusion
2.1.3.Competitive market
A market with many buyers and sellers trading identical products so that each
buyer and seller is a price taker
A market in which there are many buyers and many sellers so that each has a
negligible impact on the market price
A market where no firm has the power to affect the market price of a good
A market in which no buyer or seller has market power.
2.2. Microsoft
2.2.1.Market type
Microsoft controls a major backbone of the industry. Microsoft controls the
operating systems of computers, which no computer can run without. Using their
market share of the operating systems, Microsoft has attempted to parlay its success
into other markets. Microsoft has successfully done so with its major applications
such as Word, Excel, and Office. These products rose to market dominance after
Microsoft's own Windows became the leading operating system.
Microsoft attempted to use its dominance of the operating system market with its
release of Windows 95 to enter the online service market. Microsoft bundled
Windows 95 with The Microsoft Network and also attempted to disable the
competition. Through this process, the monopoly doesn't really give the consumers a
fair chance to test the new market, but almost forces them to buy into whatever
product the monopoly sells. Because it comes as part of the package, Microsoft users
will test Microsoft Network when they install Windows 95, rather than exploring the
other online services.
But is Microsoft's market share (about 90%) so massive that it can behave like a
monopoly?
As a matter of legal and economic fact, Microsoft is at least "monopolistic." It has
such a commanding share of the operating systems market that it can, in many
respects, behave like a monopoly. But is that necessarily bad for consumers? It is
manifestly bad for Microsoft's competitors, just as AT&T's dominance was bad for
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its competition. After AT&T was broken up, companies like MCI and Sprint
emerged as major competitors in the long-distance telephone service market.
For example, in the Microsoft case, the Windows operating system is enormously
popular, but the potential for a competing firm to provide a similar product exists.
In fact, Macintosh is a small but important competitor in the computer and
operating system market. Linux has also emerged in recent months as a viable
alternative to Microsoft Windows.
Many observers have argued that to break up Microsoft would send the wrong
message to individuals and businesses in the United States. If a company produces a
product that is so good that everyone wants to buy it, should that company be
punished? But dividing the company into two or three smaller companies, others
have argued, would force Microsoft to compete on a more level playing field with
other software companies. Moreover, they argue, with competition, the quality of
software would improve and prices would probably drop.
2.2.2.Core product
2.2.2.1.Operating Systems
• Windows 9x, 200x, etc
• MS-DOS
2.2.2.2.Office
• Access
• Excel
• FrontPage
• Outlook
• PowerPoint
• Word
2.2.2.3.Servers
• Index Server
• Internet Information Server
• Mail Server
• BackOffice Server
• BizTalk Server
• Commerce Server
• Content Management Server\
• Exchange Server
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• Mobile Information Server

• Proxy Server
2.2.2.4.Programming
• BASIC & QuickBASIC
• Microsoft Project
• Microsoft XML
• MSDN
• Visual Basic
• Visual C#
• Visual FoxPro
• Visual InterDev
• Visual J#
• Visual SourceSafe
2.2.2.5.Others
• Active Server Pages
• Encarta
• Greetings
• Money
• PhotoDraw
• Plus!
• Publisher
• Visio 2000
2.2.3.New product: Game consoles

Games
• Halo 2
• Fable
• Microsoft Flight Simulator 2004: A Century of Flight
2.2.3.1.Market type
Market of game console is Oligopolistic
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2.2.3.2.Competitor
Sony, Nintendo
2.2.3.3.Progress in market
Microsoft has decided they want to take over the game-console industry... not for
the income per se (they actually lose money on each Xbox console sold), but because
everyone who buys a game console has one less reason to buy a "real computer" (i.e.
one running Windows). The Xbox currently outclasses other systems in terms of
game-playing specs, but that won't be true for very long. Sales have been
disappointing compared to launches like the PS2 (and the fact that the machines
have damaged people's CDs and DVDs isn't helping).
The Sony PlayStation is an incredibly popular and powerful system, with by far
the largest selection of games available. The expandability of the PS2 means it will
be able to do a lot more than just run game software (something Microsoft won't let
the Xbox do, because that would undermine the "need" for Windows), and can even
play CDs and DVDs. Meanwhile, the price of the older "PS one" units and games is
going down, making them an even better deal.
2.3. Apple
2.3.1.Market type
Its market type is oligopolistic.
2.3.2.Core product
• Apple ImageWriter
• Apple LaserWriter
• Apple Lossless Encoding
• Apple Mac
• Apple Macintosh
• Apple Mail
• Apple PowerMac
• Apple QuickTake
• Apple QuickTime
2.3.3.New product: Portable audio devices (iPod)

The iPod is a hard drive based music player from Apple Computer. That can play
MP3, WAV, AAC, M4A (MPEG-4 Audio standard) , AIFF and Apple Lossless . In
addition to playing music, iPods may be used as an external hard drive. iPods are
distinguished by their small size, simple user interface based on a central scroll
wheel, and fast FireWire or USB 2.0 connection. As of January, 2004, the iPod was
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the most popular digital music player in the United States, having over 50% of the
market.
The super-slim iPod defines what a digital music player should be. It’s lighter than
two CDs, can hold up to 10,000 songs, thousands of digital photos and works as a
personal voice recorder. Now you can sync with iTunes for Mac and Windows at
blazing speeds, and take your entire music collection with you wherever you go.
15 GB, 20 GB and 40 GB Models
At just over half an inch thick, the iPod fits comfortably in the palm of your hand
and slips easily into your pocket -- and your life. Merely 5.6 ounces, it weighs less
than two Compact Discs, and even many cell phones. And yet the iPod gives you a
huge 15GB, 20GB or 40GB hard drive -- big enough to hold 10,000 songs. Do the
math: that’s four weeks of music played continuously, 24/7 -- or one new song a day
for the next 27 years.
2.3.3.1.Market type
Market of iPod is oligopolistic
2.3.3.2.Competitor
Sony
Many students are falling in love with the iPod
2.4. Sony
Sony is a consumer electronics corporation based in Tokyo (the capital of Japan). It
was founded on May 7, 1946 as the Tokyo Telecommunications Engineering with
about 20 employees. Their first consumer product, in the late 1940s was a rice
boiler. As it grew into a major international corporation, Sony acquired other
companies with longer histories, including Columbia Records (the oldest
continuously produced brand name in recorded sound, dating back to 1888)
Key People
President Tim Sarnoff
SVP Operations Tom Hershey
SVP Technology George Joblove
Top Competitors
• Matsushita
• Philips Electronics
• Sanyo
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2.4.1.Market type
Its type is competitive market
2.4.2.Core product
•Reel-to-reel tape recorders
•Video tape recording
•Betamax
•Betacam
•Computer:
•VAIO
•Video game consoles
•PlayStation
•Computer printers
•Sony PictureStation DPP-EX50
•Removable media
•MiniDisc
•Memory Stick
•Robotics
•Personal stereo:
•Walkman
•Discman
•Television
•LCD WEGA
•Projector
•Digital video cameras
•Sony DCR-PC330
•Ebook display device
2.4.3.New product: Film production
2.4.3.1.Market type
Its market type is competitive.
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2.4.3.2.Competitor
• MGM
• Fox
• Disney
• Time worrier
Sony has a strong position in market. Specially, Sony’s produced file “Spider Man”
is a very popular film.
3. Activity 2
In this activity we did these tasks
1. Return on Investments with worked example
2. Function of HR
3. Recruitment advert
3.1. Return on Investment

3.1.1.Accounting Rate of Return
Accounting Rate of return = profit / (capital employed * 100)
Accounting Rate of return = (average annual net profit before interest and tax *
100) / initial capital employed on the project
100) / average annual capital employed on the project
3.1.2.Worked example
Costs Yr0 Yr1 Yr2 Yr3 Yr4 Yr5 Total
Analysis 1.8 1.8
Design 1.8 1.8
Coding 2.4 2.4
Testing 1.2 1.2
Installing 1.3 1.3
Hardware 1.6 1.6
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Costs Yr0 Yr1 Yr2 Yr3 Yr4 Yr5 Total
Other 2.6 2.5
Running 1 1 1 1 1 1 6
Total 13.6 1 1 1 1 1 18.6
Savings
Clerical 0 1.5 1.5 1.5 1.5 1.5 7.5
Paper 0 2.5 2.5 2.5 2.5 2.5 12.5
Other 0 2.3 2.3 2.3 2.3 2.3 11.5
Benefits
Image 0 1.6 1.6 1.6 1.6 1.6 8
Transaction 0 2.9 2.9 2.9 2.9 2.9 14.5
Other 0 1.3 1.3 1.3 1.3 1.3 6.5
Total 0 12.1 12.1 12.1 12.1 12.1 60.5
Net benefit -13.6 11.1 11.1 11.1 11.1 11.1 41.9
100) / initial capital employed on the project
Accounting Rate of return = (41.9/6) * 100 / 13.6
Accounting Rate of return = 51.348
100) / average annual capital employed on the project
Accounting Rate of return = (41.9/6) * 100 / 3.1
Accounting Rate of return = 225.269
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3.2. Function of HR
3.2.1.Personnel
It is responsible for the policies or rules tat govern how staff or employees are
treated. The policies should cover the company intention for all personnel issues,
such as:
• Maternity pay;
• Holiday entitlements
• Statutory sick pay;
• Disciplinary procedures.
The personnel function can be carried out by departmental (line) managers as part
of their overall roll, or be the responsibility of a specialist department.
The personnel section is responsible for:

• Determining staff policy including recommending salary and employment
conditions
• Staff recruitment
• Preparing job specification
• Arranging and conducting selection processes
• Making job offers
• Checking reference
• Supporting staff enquires
• Maintaining staff records
• Staff welfare including benefits
• Dismissal and disciplinary process
Employee management
Employee management comprises three areas:
• Line management, or the supervision of the employee’s routine work;
• Staff management, covering pay, conditions, health and safety, etc.;
• Human resources management, which recognizes the importance of people as
vital organizational resource needing special management resource;
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3.2.1.1.Traditional role of the personnel department (line &

staff management)
• Recruitment and selection
• Standardized treatment of staff
• Employment regulations
• Provision of coordinated information
3.2.1.1.1.Recruitment
• Ensure required Skills, qualifications, experience
• Can be Internal or external recruitment
• Sets the salary package?
3.2.1.1.2.Standardized treatment of staff

• Personnel policy
• Set proper Communications procedures
• Appraisal procedures
• Training and development
• Pay and benefits
3.2.1.1.3.Employment regulations
• Recruitment
• Health and safety
• Illness, sick pay, compensation
• Disciplinary procedures
• Dismissal
3.2.1.1.4.Provision of coordinated information

• Planned numbers and types of employees
• Actual numbers
• Employee analyses
• Time keeping, absence and turnover statistics
• Employment costs
3.2.1.2.Human resource management

• Proactive management
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o Wide-ranging resourcing
o Re-structuring
o Career progression
• Planning for the future
o New skills required
o New working practices
• Managing change
3.2.2.Payroll
• It perform necessary calculations and produce a pay slip for the employee
and the physical transfer of funds
3.2.3.Training & staff development

Ares of training are:
• Induction training
• Skills training
• Staff development
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3.3. Recruitment advert
Wanted
Junior programmer for system development
To be based at Islamabad
Qualification required: BCS/BIT
Primary job function includes

• Maintenance of Databases
• Maintenance of Data Dictionary
• Maintenance of Documentation
• Maintenance of Software
Experience: at least one year of system development using following tools

• VB, VC, C++, Java
• Ms-SQL server, Oracle
• CASE Tools
• Networking
Expected Salary: 15,000
Apply in confidence with your C.V & latest photos
25 March, 2005
Before
ASC Company Ltd

IT Department Manager
F9, Islamabad
Pakistan
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4. Activity 3
Can we fire an employee for any reason? No. Although the law gives employers a
great deal of leeway in deciding whether to fire an employee, there are limits.
If the employee does not have an employment contract and if you have never made
any promises to the employee about termination, then you can fire the employee for
any reason that isn't illegal.
If the employee has an employment contract or if you have made promises to the
employee, then that contract or those promises will control when you can fire the
employee. In most cases with an employment contract or where you made promises,
you can only fire the employee for something called "good cause". In addition, you
cannot terminate these employees for any illegal reason
4.1. Tips on Firing Employees

• Don’t take firing lightly: Usually, even a very weak job performance can be
brought up to a satisfactory level. Firing, on the other hand, involves a
significant legal risk. It also has a traumatic impact on other members of
your staff, even if they understand and appreciate the reasons for the
termination.
• Don’t hesitate to consult with counsel: If you have any questions regarding a
firing, consult with an expert employment attorney prior to the termination.
You may save yourself the legal fees of a post-firing lawsuit.
• Plan what you are going to say: If you don’t carefully plan out what you are
going to say during a firing, and stick to it, chances are you will offer kind
words regarding their work performance. This can lead to legal action.
During a firing, you don’t want to even hint at anything positive in the
person’s job performance.
• Be calm: Even if the employee you are firing irritates you, don’t let on. If he
or she lashes out verbally, don’t get excited. Soon this person will be gone
and will no longer be your problem.
• Be humane: Treat the employee you are firing as kindly as possible during
the termination process. This is a very traumatic experience for them. Being
kind, without conveying anything positive about their job performance, can
assuage this trauma. And, of course, it can decrease the odds that someone
will bring a wrongful firing suit against your company or place negative
phone calls to your remaining staff.
• Avoid surprises: Give weak employees every opportunity to improve their
work performance or attitude before opting to let them go. If you can prove
that you have given them every possible chance, there will be less grounds for
a lawsuit. Plus, other employees will feel less threatened by the implications
of the firing. Additionally, employees who have been aware for some time
that their continued employment is on the line will find the actual firing less
traumatic. It may well be that they will feel “clued,” and will seek and find
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employment elsewhere before you can fire them. At all costs, you want to
avoid firing someone who has no idea that his or her job is in jeopardy.
• Have a strong paper trail: Good documentation of poor work performance
or attitude is essential in defending against a wrongful firing suit. Make a
record of any verbal warnings you have given to the employee and, if
possible, issue written warnings to him or her well before the firing. Negative
performance reviews are a must.
4.2. Illegal Reasons for Firing Employees

There are certain reasons that you can never use to fire an employee.
Both state and federal law forbid you from using certain reasons to fire an
employee. These prohibitions apply regardless of whether the employee has a
contract for employment with you or not.
4.2.1.Discrimination
Federal law makes it illegal for most employers to fire an employee because of the
employee's race, gender, national origin, disability, religion or age (if the person is
older than 40). Federal law also prohibits most employers from firing someone
because that person is pregnant or because that person has recently given birth or
because of any related medical conditions. .
Most states also have anti-discrimination laws that include all of the characteristics
listed in the federal law. Many state laws, however, are broader than federal law.
They include additional prohibitions and they include a wider range of employers.
4.2.2.Retaliation
It is illegal for employers to fire employees for asserting their rights under the state
and federal anti-discrimination laws.
4.2.3.Refusal to Submit to a Lie Detector Test

The federal Employee Polygraph Protection Act prohibits most employers from
terminating employees for refusing to take a lie detector test. Many state laws also
set out strong prohibitions against using lie detector tests.
4.2.4.Alien Status
The federal Immigration Reform and Control Act (IRCA) prohibits most employers
from using an employee's alien status as a reason for terminating that employee so
long as that employee is legally eligible to work in the United States.
4.2.5.Complaining about OSHA Violations

The federal Occupational Safety and Health Act (OSHA) makes it illegal for
employers to fire employees for complaining that work conditions fall short of
complying with state or federal health and safety rules.
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4.2.6.Violations of Public Policy

Most states prohibit employers from firing an employee in violation of public policy
-- that is, for reasons that most people would find morally or ethically wrong. Of
course, morals and ethics can be relative things, so the law will vary from state to
state. Some states may prohibit reasons that other states do not. In addition, the
reason must be pretty bad to violate public policy. A reason that strikes most people
as merely mean or unfair usually won't do it.
Despite this relativity, most states agree that the following would violate public
policy and would therefore be illegal:
• Terminating an employee for refusing to commit an illegal act (such as

refusing to falsify insurance claims)
• Terminating an employee for complaining about your illegal conduct (such
as your failure to pay minimum wage), and
• Terminating an employee for exercising a legal right (such as voting or other
political activity).
4.3. Firing Employees With Employment Contracts

Employment contracts can limit your ability to fire employees. If an employee has
an employment contract -- whether written or oral, express or implied -- that
contract may limit your ability to terminate the employee. Usually, if an
employment contract exists (which is not always easy to determine), you must treat
the employee fairly and only fire him or her for "good cause."
4.3.1.Determining Whether There's a Contract

The first step in learning the reasons for which you can fire an employee is to
determine if you have an employee contract with him or her. Occasionally, this will
be as simple as opening the employee's personnel file and seeing a document labeled
"employment contract." This type of contract is called an express written contract.
Usually, however, it's not that easy. This is because employers sometimes create
employment contracts without meaning to. This type of contract -- called an implied
contract -- binds employers as much as written contracts do.
Employers create implied contracts when they promise the employee something,
usually job security. These promises can occur in all sorts of circumstances, such as
during a casual conversation with an employee or as part of a discussion in an
employee handbook. No matter how the promise occurs, if a court thinks the
promise has enough weight and if the court thinks the employee has relied on that
promise (usually through continued employment), the court will view that promise
as a contract and will bind you to it.
Figuring out whether you have unintentionally created one of these types of
contracts can be tricky business. Past court decisions do provide some guidance,
however. Courts have found that an implied contract was formed in the following
circumstances:
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• In trying to convince a prospective employee to take a job, an employer

promises the employee that he will only be fired if he doesn't do his job well.
• An employee manual states that once employees have been with a company
for more than 90 days, employees become permanent.
• During an evaluation, a supervisor gives an employee a glowing review and
tells the employee that he has a long future at the company unless he does
something really wrong.
Don't let the specter of implied contracts worry you too much, however. The vast
majority of employees in this country are working without a contract -- express or
implied. If you are dealing with an employee who has only been in the job for a year
or less and if you feel certain that you have never promised the employee job
security, then the chances are that the employee does not have an implied contract
and that you can fire the employee for any reason that isn't illegal. Also, even if the
employee does have an implied contract, you can still fire the employee for good
cause
4.3.2.Standards for Firing Employees With Employment

Contracts
Regardless of what type of contract you have with the employee, that contract will
obligate you to treat an employee fairly. This obligation is called the covenant of
good faith and fair dealing.
If you have an express written contract with an employee, it will usually state the
reasons for which the employee can be fired. If you want to terminate that
employee, you must follow what the contract says. Often, contracts will simply state
that an employee can only be terminated for something called good cause.
Sometimes, however, the contract will be more detailed. Either way, you must follow
the contract terms.
Usually, the existence of an implied employment contract means that you can fire an
employee only for good cause.
4.3.2.1.Good Faith and Fair Dealing

If you have a contract with an employee, then you have an obligation to treat that
employee fairly. Although this rule might seem like a gaping hole in your ability to
terminate employees, it really isn't. To breach this obligation, employers have to
engage in very egregious conduct. For example:
• Firing employees to prevent them from collecting sales commissions

• Firing employees just before their retirement benefits vest, and
• Fabricating evidence of poor performance when the real motivation is to
replace the employee with someone who will work for lower pay.
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4.3.2.2.Good Cause
Most employment contracts require that employees only be terminated for good
cause. The exact meaning of good cause varies from state to state, but generally it
means what it says: You must have a legitimate reason for firing the employee. In
general, the termination must be based on reasons related to business needs and
goals.
Other examples of good cause include the following:
• Poor job performance

• Low productivity
• Refusal to follow instructions
• Habitual tardiness
• Excessive absences from work
• Possession of a weapon at work
• Threats of violence
• Violating company rules
• Stealing or other criminal activity
• Dishonesty
• Endangering health and safety
• Revealing company trade secrets
• Harassing co-workers
• Disrupting the work environment
• Preventing co-workers from doing their jobs, and Insubordination.
4.4. Rules and regulation

The following questions and answers will be of interest to employers and employees
under federal jurisdiction. These are for Canada. It is available from any Labour
Program office of Human Resources Development.
4.4.1.Rules for Group Termination
1. What constitutes a group termination?
The termination of 50 or more employees from a single industrial establishment

either simultaneously or within any period not exceeding four consecutive weeks.
2. To whom must an employer give notice of a group termination?
Written notice of a group termination must be given to the Minister of Labour and
copies sent to:
a. The Minister of Human Resources Development

b. The Canada Employment Insurance Commission
Page 23 of 32
c. Any trade union certified to represent any employee in the group being
terminated;
d. Any employee in the group being terminated who is not represented by a
trade union. (This requirement may be met by posting a copy of the notice in
the work place where people can see it.)
3. When must an employer give notice of a group termination?
At least 16 weeks before the date the terminations commence.
4. What information must an employer include in the notice?
A notice of group termination of employment must include:
a. The name of the employer;

b. The location at which the termination is to take place;
c. The nature of the industry of the employer;
d. The date or dates on which the employer intends to terminate the
employment of any one or more employees;
e. The estimated number of employees in each occupational classification whose
employment will be terminated;
f. The reason for the termination of employment; and
g. The name of any trade union certified to represent any employee in the
group of employees whose employment is to be terminated or recognized by
the employer as bargaining agent for such employees.
5. Is it possible for an employer to obtain a waiver from the requirement to give

notice?
Yes. The Code provides that the Minister of Labour may waive any requirement of
this Division where it is shown that such application would be prejudicial to the
interests of the employee or of the employer, or would be detrimental to the
operation of the industrial establishment. The Minister of Labour may also waive
any or all of the requirements of this Division if it is demonstrated that measures are
already in place that are substantially the same as those required to be established.
Applications for such a waiver should be made as early as possible to the Minister of
Labour.
6. Does an employer have obligations in-group termination situations other than the
notice requirement?
Yes. With some exceptions (see question 12), employers undertaking group
terminations are required to establish a committee of employer and employee
representatives. See also questions 14-26.
7. What is the purpose of the committee?
Page 24 of 32
To develop an adjustment program aimed at eliminating the necessity for the

termination or, where that is not possible, to minimize its impact on affected
employees and assist them in obtaining other employment.
8. When must an employer establish a committee?
An employer must establish a committee immediately upon providing the notice of

termination. The committee must hold its first meeting within two weeks of the date
the notice is given.
9. How much time does a committee have to develop an adjustment program?
The maximum time allowed is 16 weeks or the length of the notice period.
10. What happens if the committee cannot agree on an adjustment program?
Either party may apply to the Minister of Labour for the appointment of an
arbitrator to settle outstanding issues. However, application cannot be made until at
least six weeks after the notice of termination is given.
11. Are there restrictions on the arbitrator's authority?
Yes. The arbitrator has a duty to assist the parties in developing a program.
However, his or her authority to arbitrate is restricted to matters that are normally
the subject of collective agreement clauses on termination of employment. An
arbitrator is not empowered to review the employer's decision to terminate, or to
delay the termination.
12. Under what circumstances are employers not required to establish a joint
planning committee?
In broad terms, employers are not required to establish joint planning committees if the
Minister of Labour has granted a waiver from that requirement as detailed in
question 5.
4.4.2.Rules for Lay-Offs
13. Are all lay-offs considered terminations?
No. Certain lay-offs do not constitute terminations of employment such as when:
a. a lay-off is a result of a strike or lockout;

b. the term of the lay-off is three months or less;
c. the term of the lay-off is for more than 3 months but not more than 12
months, and the employees maintain recall rights pursuant to a collective
agreement.
Page 25 of 32
In certain circumstances, other lay-offs of more than three months may not
constitute a termination of employment.
4.4.3.Rules for Individual Termination
14. What notice or payment in lieu of notice must be given to an employee whose
employment is being terminated?
An employee is entitled to written notice of the employer's intention to terminate his

or her employment, at least two weeks before the date specified in the notice. In lieu
of such notice, the employee is entitled to two weeks' wages at the regular rate.
15. Does the requirement for notice or pay in lieu apply to all employees?
It applies to any employee whose employment is being terminated except as follows:
a. an employee who has not completed three consecutive months of continuous

employment;
b. an employee who terminates his or her own employment;
c. an employee who is dismissed for just cause;
d. an employee who is on a lay-off that does not constitute a termination of
employment (see question 13).
16. Is an employer required to give individual notice of termination or pay in lieu of

notice to an employee covered by a group termination notice?
Yes. Even though an employee's termination is included under a notice given in

respect of a group termination, individual notice is still required.
17. Does this provision apply in the case of an employee covered by an agreement
which provides for "bumping rights", that is, which authorizes an employee whose
position becomes redundant to displace someone having less seniority?
When an employee is covered by a collective agreement that provides for "bumping

rights", the employer must advise the union in writing two weeks' before the
position becomes redundant and post a copy of the notice prominently in the work
place. The employer may, however, choose to pay two weeks regular wages to the
laid-off employee in lieu of notice.
18. Does the Code require an employee to give notice if he or she terminates the
employment?
No.
Page 26 of 32
4.5. Federal Fair Employment Laws

The following table shows some of the federal fair employment laws that are of
general application. Normally, the effect of these laws starts with the hiring process
and continues through the termination of the employment relationship.
Who's Subject
Federal Law Employment-Related Prohibition to the Law?
Title VII of the Prevents discrimination against employees Employers having

Civil Rights Act on the basis of race, color, religion, sex or at least 15
national origin. employees.
Age Prevents discrimination on the basis of age Employers having

Discrimination in against employees who are over 40 years at least 20
Employment Act old. employees.
Americans with Prevents discrimination against disabled Employers having

Disabilities Act employees. at least 15
employees.
Immigration Prevents discrimination against employees Employers having

Reform and on the basis of national origin or at least 4 employees.
Control Act citizenship status.
National Labor Prevents discrimination against employees Employers whose

Relations Act who engage in or who refuse to engage in business has a
union activity. Also protects nonunion significant impact
employees who act together in an effort to on interstate
improve or protest working conditions that commerce.
affect them on the job.
Employee Prevents employees from being discharged Employers who

Retirement solely to prevent them from vesting or maintain qualified
Income Security qualifying for benefits under qualified pension plans for
Act pension plans. their employees'
benefit.
Retaliatory discharge laws. Apart from antidiscrimination laws, a number of federal

laws make it unlawful for an employer to fire an employee merely for asserting
rights under those laws. For example, the federal law providing minimum wage and
overtime rules (the Fair Labor Standards Act) protects from discharge employees
who start proceedings or who take other actions in an attempt to have the law
Page 27 of 32
enforced. Similar restrictions on so-called "retaliatory" discharges are provided

under the Occupational Safety and Health Act, the Vietnam Era Veterans
Reemployment Act, the Employee Polygraph Protection Act, various environmental
protection laws such as the Clean Air Act, and several other federal laws.
Firing substance abusers. If alcohol or drug use has caused one of your employees to
have a dangerous accident, endanger another employee, or not show up for work
frequently, you may be tempted to eliminate the "problem" by simply firing the
employee. However, before doing so, you should keep in mind that federal and state
laws that protect disabled employees against discrimination may apply to alcoholics
or drug users. In other words, it may be unlawful for you to fire an employee for a
substance abuse problem unless you have first given the employee a reasonable
chance for rehabilitation.
4.6. Firing Restrictions in Written Laws

What's one of the easiest ways to find yourself defending a wrongful discharge
lawsuit? Fire an employee under circumstances that violate a fair employment law.
Numerous federal, state, and even local laws restrict an employer's right to fire an
employee for discriminatory or retaliatory reasons.
• Federal fair employment laws: Federal laws protect employees against

various forms of discrimination in the workplace. This protection lasts
throughout the entire employment relationship, including the period leading
up to and ending with an employee's separation from the business. Thus, for
example, you could run afoul of federal law if you fire an employee solely on
the basis of the employee's race, color, religious preferences, gender, national
origin, disabilities (including substance abuse problems), or age.
• State firing restrictions: Every state has its own laws that make it unlawful
for an employer to fire an employee under certain circumstances. Many
states have their own discrimination laws that offer employees similar, if not
broader, protections as the corresponding federal laws. For example, state
laws, unlike their federal counterparts, may protect employees from
discrimination on the basis of sexual orientation or personal appearance.
Furthermore, many state laws apply to employers that corresponding federal
laws exempt from their coverage. Other frequently encountered limitations
prevent employees from being fired merely because they file claims for
workers' compensation benefits, report an employer's illegal activity, serve
on jury duty, or refuse to take a lie detector test.
4.7. Legal Restrictions on Firing

If you enter into a formal employment contract with an employee (or a union
contract with a group of employees), you'll frequently specify in the contract the
proposed length of the employment relationship and the reasons for which either
party can end the relationship. In other words, the contract's terms will generally
govern your ability to fire the employee, as well as the employee's ability to quit. If
Page 28 of 32
either party attempts to terminate the relationship in violation of those terms, a

potential breach of contract claim arises.
Assuming that a formal contract does not govern your employment relationships, as
is generally the case, what limitations restrict your ability to fire your employees?
In all states, such relationships are governed by the "employment-at-will" doctrine.
"Employment-at-will" means that there's a presumption that the employee is
employed at the employer's will for an indefinite period rather than for a fixed
term.
Traditionally, both the employer and the employee have had the ability to end an at-
will relationship at any time and for any reason. However, at least from the
employer's perspective, the unlimited freedom to fire at-will employees at any time
for good cause, bad cause, or no cause at all has been eroded in recent years by the
federal and state governments and the courts. The exceptions that these institutions
have carved into the employment-at-will doctrine form the foundation for most
wrongful discharge claims, in which employees sue you for lost wages, punitive
damages, and occasionally, reinstatement in their job.
• Limitations in written laws: numerous federal and state laws potentially

restrict an employer's ability to fire at-will employees. These laws fall into
two general categories. The first category consists of those laws that make it
illegal for employers to discriminate against certain individuals. The second
category consists of laws that make it illegal for an employer to retaliate
against employees who exercise rights conferred by the laws or who take
steps to see that the laws are enforced. Courts, too, have taken steps to limit
an employer's ability to fire at-will employees. In doing so, they generally
rely on one of the following theories:
• The implied contract limitation: that some statement or document from the
employer effectively created a formal employment contract where none
previously existed. For example, stating that employees will be fired only for
good cause in your handbook may form the basis for such an "implied"
contract.
• The public policy limitation: that the firing goes against "public policy" by
infringing on some right granted employees by federal or state law or
because it is otherwise morally or socially wrong. For example, firing an
employee merely for filing a workers' compensation claim is illegal.
• The bad faith limitation: the few courts that have relied on this theory
presume that employers are generally obligated to deal fairly and in good
faith with all their employees. For example, firing an employee for the sole
purpose of denying the employee a bonus that the employee has earned but
not yet received may be unlawful in some states.
5. Bibliography
• Managing business project book
• Business management book
Page 29 of 32
• Business organization book

• Business communication book
• Previous assignments
• Internet
6. Appendices
6.1. EMPLOYMENT TERMINATION CONTRACT (SAMPLE)

Most employees are familiar with employment contracts, which cover all the issues
of the job and the employee’s and employer’s rights and responsibilities. Sometimes
the parties also have a contract that covers just the end of the employment
relationship. It includes some of the issues covered in the employment contract plus
additional obligations or benefits the parties negotiated at termination. It might also
contain a “release” by the employee of any claim he or she might otherwise have
against the employer, in exchange for a nice severance package. You might find that
an employment termination contract is the best way to protect yourself as you leave
one job and start another.
TERMINATION CONTRACT
Employer [name of company] and Employee [employee’s name] hereby agree to this
Termination Contract.
Employee and Employer had an employment agreement from [start date] to
[termination date], in which they agreed that they would resolve any employment
dispute as follows [method of dispute resolution, such as arbitration, and/or choice
of law].
Employee hereby agrees and obligates [himself/herself] to the following:
1. Employee will not engage in any competition with Employer for the period of
[duration of noncompetition agreement, such as one year], which includes
employment with another company in the same or similar business as Employer,
establishment of a new company in the same or similar business as Employer, or
any contractual arrangement under which Employee consults, advises, or assists
another company in the same or similar business.
2. Employee will not engage in conduct or make statements relating to [his/her]
employment or this Termination Contract that can be construed as critical or
derogatory of Employer its employees, agents, partners, shareholders, officers,
directors, and affiliated companies.
3. Employee releases and discharges all claims, complaints, charges, disputes, and
demands against Employer and its employees, agents, partners, shareholders,
officers, directors, and affiliated companies, except for claims, complaints, charges,
disputes, or demands that could arise from a breach of this Termination Contract,
such as claims for back pay, front pay, damages, and fees such as attorneys’ fees,
that could arise from federal or state employment laws or from any conduct by
Employer. Employee has had the opportunity to consult with [his/her] attorney and
Page 30 of 32
is aware of [his/her] legal rights, but knowingly and voluntarily waives those rights
to the extent possible under law.
4. Employee will not share, divulge or disclose any information about Employer or
its employees, agents, partners, shareholders, officers, directors, and affiliated
companies that Employee knows is confidential or is considered a trade secret,
trademark, service mark, trade name, patent, or copyright, including information
or a product invented or developed by Employee during [his/her] employment with
Employer.
5. Employee has surrendered to Employer paper and electronic copies of all letters,
memoranda, documents, records, and other material that is the property of
Employer. Employee has also surrendered to Employer all other tangible property
of Employer, including keys, products, charge cards, telephones, pagers, computer
and other equipment, and vehicles.
6. Employee will not share, divulge, or disclose the provisions of this Termination
Agreement except to Employee’s family, agents, representatives, or advisors, or to
the extent required by law. Employer and Employee further agree that in
consideration for the above agreements and promises, Employer will pay Employee
as follows: [terms of severance payment, such as lump-sum amount or payment
schedule]. Such severance payment constitutes the entire obligation of Employer to
Employee. Employer and Employee further agree that in the event of any breach of
this Termination Contract or default hereunder, the injured party has the right to
pursue any legal action available to enjoin the breaching party from further
injurious conduct and/or to recover from the breaching party damages for such
breach or default.
Dated:
Signed:
7. Index
Accounting Rate of Return 13
Competitive 7
Discrimination 20
Employment Contracts 21
Employment Termination Contract 30
Fair Employment Laws 27
Page 31 of 32
Group Termination 23
HR 15
Individual Termination 26
Lay-Offs 25
Monopolistic 3
Occupational Safety and Health Act 20
Oligopolistic 5
OSHA 20
Payroll 17
Personnel 15
Recruitment 16
Retaliation 20
Written Laws 28
Page 32 of 32

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NCC Assignment IAD Business Management

NCC International Advance Diploma in Computer

Candidate Name : Aamir Shahzad

Candidates attempting to gain an unfair advantage or colluding in anyway

Expected candidate time allocation: 35 to 40 hours.

Mark Moderated Mark Final Mark

A monopoly can set prices artificially high because it has no

a. When the demand curve is always below, the

Oligopolistic competition can give rise to a wide range of

2.1.2.2.Price and output

4. Unstable demand conditions are an obstacle to

• Mobile Information Server

2.2.3.New product: Game consoles

2.3.3.New product: Portable audio devices (iPod)

2.4.3.New product: Film production

3.1. Return on Investment

Analysis 1.8 1.8

Design 1.8 1.8

Coding 2.4 2.4

Testing 1.2 1.2

Installing 1.3 1.3

Hardware 1.6 1.6

Costs Yr0 Yr1 Yr2 Yr3 Yr4 Yr5 Total

Other 2.6 2.5

Total 13.6 1 1 1 1 1 18.6

Clerical 0 1.5 1.5 1.5 1.5 1.5 7.5

Paper 0 2.5 2.5 2.5 2.5 2.5 12.5

Other 0 2.3 2.3 2.3 2.3 2.3 11.5

Image 0 1.6 1.6 1.6 1.6 1.6 8

Transaction 0 2.9 2.9 2.9 2.9 2.9 14.5

Other 0 1.3 1.3 1.3 1.3 1.3 6.5

Total 0 12.1 12.1 12.1 12.1 12.1 60.5

Net benefit -13.6 11.1 11.1 11.1 11.1 11.1 41.9

The personnel section is responsible for:

3.2.1.1.Traditional role of the personnel department (line &

3.2.1.1.2.Standardized treatment of staff

3.2.1.1.4.Provision of coordinated information

3.2.1.2.Human resource management

3.2.3.Training & staff development

3.3. Recruitment advert

Qualification required: BCS/BIT

Primary job function includes

Experience: at least one year of system development using following tools

Expected Salary: 15,000

Apply in confidence with your C.V & latest photos

ASC Company Ltd

4.1. Tips on Firing Employees

4.2. Illegal Reasons for Firing Employees

4.2.3.Refusal to Submit to a Lie Detector Test

4.2.5.Complaining about OSHA Violations

4.2.6.Violations of Public Policy

• Terminating an employee for refusing to commit an illegal act (such as

4.3. Firing Employees With Employment Contracts

4.3.1.Determining Whether There's a Contract

• In trying to convince a prospective employee to take a job, an employer

4.3.2.Standards for Firing Employees With Employment

4.3.2.1.Good Faith and Fair Dealing

• Firing employees to prevent them from collecting sales commissions

• Poor job performance

4.4. Rules and regulation

4.4.1.Rules for Group Termination

1. What constitutes a group termination?

The termination of 50 or more employees from a single industrial establishment