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Assignment Set- 1 Master of Business Administration-MBA Semester 1 MB0038 Management Process and Organization Behavior Q.

.1 Write a note on the mana gerial roles and skills? ANS: According to Mintzberg (1973), managerial roles ar e as follows: 1. Informational roles 2. Decisional roles 3. Interpersonal roles 1. Informational roles: This involves the role of assimilating and disseminating information as and when required. Following are the main sub-roles, which manag ers often perform: a. Monitor collecting information from organizations, both fr om inside and outside of the organization b. Disseminator communicating informat ion to organizational members c. Spokesperson representing the organization to o utsiders 2. Decisional roles: It involves decision making. Again, this role can be subdivided in to the following: a. Entrepreneur initiating new ideas to impro ve organizational performance b. Disturbance handlers taking corrective action t o cope with adverse situation c. Resource allocators allocating human, physical, and monetary resources d. Negotiator negotiating with trade unions, or any othe r stakeholders

3. Inter`personal roles: This role involves activities with people working in th e organization. This is supportive role for informational and decisional roles. Interpersonal roles can be categorized under three sub-headings: a. Figurehead C eremonial and symbolic role b. Leadership leading organization in terms of recru iting, motivating etc. c. Liaison liasoning with external bodies and public rela tions activities. Management Skills: Katz (1974) has identified three essential management skills: technical, human, and conceptual. Technical skills: The ability is to apply specialized knowledge or expertise. Al l jobs require some specialized expertise, and many people develop their technic al skills on the job. Vocational and on-the-job training programs can be used to develop this type of skill. Human Skill: This is the ability to work with, unde rstand and motivate other people (both individually and a group). This requires sensitivity towards others issues and concerns. People, who are proficient in te chnical skill, but not with interpersonal skills, may face difficulty to manage their subordinates. To acquire the Human Skill, it is pertinent to recognize the feelings and sentiments of others, ability to motivate others even in adverse s ituation, and communicate own feelings to others in a positive and inspiring way . Conceptual Skill: This is an ability to critically analyze, diagnose a situati on and forward a feasible solution. It requires creative thinking, generating op tions and choosing the best available option.

Q.2 Explain the social learning theory in details? ANS: One of the most influent ial learning theories, the Social Learning Theory (SLT), was formulated by Alber t Bandura. It encompasses concepts of traditional learning theory and the operan t conditioning of B.F. Skinner. However, the theory strongly implies that there are types of learning wherein direct reinforcement is not the causal mechanism; rather, the so called social element can result to the development of new learni ng among individuals. Social Learning Theory has been useful in explaining how p eople can learn new things and develop new behaviors by observing other people. It is to assume, therefore, that Social Learning Theory is concerned on observat ional learning process among people. A. Basic Concepts 1. Observational LearningThe Social Learning Theory says that people can learn by watching other people perform the behavior. Observational le arning explains the nature of children to learn behaviors by watching the behavi or of the people around them, and eventually, imitating them. With the Bobo Doll xperiment(s), Bandura included an adult who is tasked to act aggressively toward a Bobo Doll while the children observe him. Later, Bandura let the children pla y inside a room with the Bobo Doll. He affirmed that these children imitated the aggressive behavior toward the doll, which they had observed earlier. After his studies, Bandura was able to determine 3 basic models of observational learning , which include:

a. A Live Model, which includes an actual person performing a behavior. b. A Ver bal Instruction Model, which involves telling of details and descriptions of a b ehavior. c. A Symbolic Model, which includes either a real or fictional characte r demonstrating the behavior via movies, books, television, radio, online media and other media sources. 2. The state of mind (mental states) is crucial to lear ning.In this concept, Bandura stated that not only external reinforcement or fac tors can affect learning and behavior. There is also what he called intrinsic re inforcement, which is in a form of internal reward or a better feeling after per forming the behavior (e.g. sense of accomplishment, confidence, satisfaction, et c.) 3. Learning does not mean that there will be a change in the behavior of an individual. B. Modeling Process The Modeling Process developed by Bandura helps us understan d that not all observed behaviors could be learned effectively, nor learning can necessarily result to behavioral changes. The modeling process includes the fol lowing steps in order for us to determine whether social learning is successful or not:

Step 1: Attention Social Cognitive Theory r you to learn. If you want to learn from that demonstrates the behavior), then you your attention other than him. Also, the e likely you are to pay full attention to

implies that you must pay attention fo the behavior of the model (the person should eliminate anything that catches more interesting the model is, the mor him and learn.

Step 2: Retention Retention of the newly learned behavior is necessary. Without it, learning of the behavior would not be established, and you might need to get back to observing the model again since you were not able to store information about the behavior. Step 3: Reproduction When you are successful in paying attention and retaining r elevant information, this step requires you to demonstrate the behavior. In this phase, practice of the behavior by repeatedly doing it is important for improve ment. Step 4: Motivation Feeling motivated to repeat the behavior is what you ne ed in order to keep on performing it. This is where reinforcement and punishment come in. You can be rewarded by demonstrating the behavior properly, and punish ed by displaying it inappropriately

Q.3 Explain the Big 5 model of personality? Ans : The big five model of personality is designed to bring out behaviors an in dividual expresses in his dealings with people as well as in their response to c hanges in circumstances as well as the environment. Generally, these five factor s of personality are used to come up with a description of the human personality . In this text, I explain Tishas findings as well as look at how the predictions could be used to come up with a prediction of her success as a manager. The big five model of personality

Openness to experience This factor acts to distinguish conventional individuals from those who are in one way or the other imaginative. Traits linked to individ uals who are open to experience include intellectual curiosity, sensitivity to b eauty as well as responsiveness to art. According to Cattell, H.E.P et al. (2007 ), such people are very creative and they are very likely to be more accommodati ng to beliefs considered unconventional. Such people are hence more likely to be accommodating to the views of others in the organizational setting and they are more likely to encourage innovation at the workplace. Tishas high score shows th at she will be more straightforward and more likely see the simple aspects of co mplex situations.

Conscientiousness This factor shows an individuals ability and drive to achieve goals and strive for achievement. It also indicates that an individual has self discipline and prefers planned behavior as opposed to spontaneous behavior. Gruc za et al. (2007) notes that individuals who score highly in conscientiousness ha ve a good impulse control and tend to be goal oriented. Tishas very high performa nce in Conscientiousness shows that she is organized and very attentive to detai l. In an organizational setting, Tisha would be more likely to strive to ensure that organizational goals and objectives are met.

Extraversion This factor consists of emotions that can be said to be positive as well as an industrious personality and ability to relate well with others. Catt ell, H.E.P et al. (2007) notes that extraverts enjoy other peoples company and t end to be very active in group efforts. Tishas high score in extraversion indicat es that in the work setting as a manager, she would tend to encourage team work. She will also dominate board and other meetings and have a high chance of pushi ng her proposals and suggestions forward.

Agreeableness This factor is characterized by compassion and cooperation towards others as opposed to antagonism tendencies. Cattell, H.E.P et al. (2007) notes that such

individuals are easy to get along with and are more likely to be very accommodat ing to the views of others. Tishas moderately high score on this factor shows tha t though she will be accommodate others view, she will expect her views also to be taken into consideration. She is likely to trust her subordinates more. Neuroticism This factor involves a high likelihood to get angry and have other n egative emotions like anxiety. In most cases, this characteristic is linked to e motional instability. Individuals scoring low on neuroticism will experience bou ts of mood swings triggered by frustrations by minor issues at the workplace (Gr ucza et al. 2007). Tishas low score on this factor shows she will be more likely to cope with problems as a manager and she will tend to be calmer while handling difficult situations. Q.4 What are the different factors influencing perception? Ans : Perception is our sensory experience of the world around us and involves b oth the recognition of environmental stimuli and action in response to these sti muli. Through the perceptual process, we gain information about properties and e lements of the environment that are critical to our survival. A number of factors operate to shape and sometimes distort perception These fact ors can reside: i) In the perceiver

ii) In the Object or target being perceived or iii) In the context of the situat ion in which the perception is made. 1. Characteristics of the Perceiver: Severa l characteristics of the perceiver can affect perception. When an individual loo ks at a target and attempts to interpret what he or she stands for, that interpr etation is heavily influenced by personal characteristics of the individual perc eiver. The major characteristics of the perceiver influencing perception are: a) Attitudes: The perciver's attitudes affect perception. For example, Mr. X is in terviewing candidates for a very important position in his organization - a posi tion that requires negotiating contracts with suppliers, most of whom are male. Mr. X may feel that women are not capable of holding their own in tough negotiat ions. This attitude with doubtless affect his perceptions of the female candidat es he interviews. b) Moods: Moods can have a strong influence on the way we perc eive someone. We think differently when we are happy than we do when we are depr essed. In addition, we remember information that is consistent with our mood sta te better than information that is inconsistent with our mood state. When in a p ositive mood, we form more positive impressions of other. When in a negative moo d, we tend to evaluate others unfavourably. c) Motives: Unsatisfied needs or mot ives stimulate individuals and may exert a strong influence on their perceptions . For example, in an organizational context, a boss who is insecure perceives a sub ordinate's efforts to do an outstanding job as a threat to his or her own po sition. Personal insecurity can be translated into the perception that others ar e out to "get my job", regardless of the intention of the subordinates.

d) Self - Concept: Another factor that can affect social perception is the perce ivers self-concept. An individual with a positive self-concept tends to notice p ositive attributes in another person. In contrast, a negative self-concept can l ead a perceiver to pick out negative traits in another person. Greater understan ding of self allows us to have more accurate perceptions of others. e) Interest: The focus of our attention appears to be influenced by our interest s. Because our individual interests differ considerably, what one person notices in a situation can differ from what other perceive. For example, the supervisor who has just been reprimanded by his boss for coming late is more likely to not ice his colleagues coming late tomorrow than he did last week. f) Cognitive stru cture: Cognitive structure, an individual's pattern of thinking, also affects pe rception. Some people have a tendency to perceive physical traits, such as heigh t, weight, and appearance, more readily. Cognitive complexity allows a person to perceive multiple characteristics of another person rather than attending to ju st a few traits. g) Expectations: Finally, expectations can distort your percept ions in that you will see what you expect to see. The research findings of the s tudy conducted by Sheldon S Zalking and Timothy W Costello on some specific char acteristics of the perceiver reveal i) Knowing oneself makes it easier to see ot hers accurately. ii) One's own characteristics affect the characteristics one is likely to see in other. iii) People who accept themselves are more likely to be able to see favourable aspects of other people. iv) Accuracy in perceiving othe rs is not a single skill. These four characteristics greatly influence how a per son perceives other int he

environmental situation. 2) Characteristics of the Target : Characteristics in the target that is being o bserved can affect what is perceived. Physical appearance pals a big role in our perception of others. Extremely attractive or unattractive individuals are more likely to be noticed in a group than ordinary looking individuals. Motions, sou nd, size and other attributes of a target shape the way we see it. Verbal Commun ication from targets also affects our perception of them. Nonverbal communicatio n conveys a great deal of information about the target. The perceiver deciphers eye contact, facial expressions, body movements, and posture all in a attempt to form an impression of the target. 3) Characteristics of the Situation: The situation in which the interaction betw een the perceiver and the target takes place, has an influence on the perceiver' s impression of the target. The strength of the situational cues also affects so cial perception. Some situations provide strong cues as to appropriate behaviour . In this situation, we assume that + i.e individual's behaviours can be account ed for by the situation, and that it may not reflect the individual's dispositio n. Q.5 Write a note on contemporary work cohort? ANS: Contemporary Work Cohort Cont emporary Work Cohort, proposed by Robbins (2003) divides the work force into dif ferent groups depending on the era or period in which they have entered

into work. It stresses upon individuals values which reflect the societal values of the period in which they grew up. The cohorts and the respective values have been listed below: 1.VeteransWorkers who entered the workforce from the early 1940s through the earl y 1960s and exhibited the following value orientations: 1. They were influenced by the Great Depression and World War II 2. Believed in hard work 3. Tended to b e loyal to their employer 4. Terminal values: Comfortable life and family securi ty 2.BoomersEmployees who entered the workforce during the 1960s through the mid1980 s belonged to this category and their value orientations were: a. Influenced heavily by John F. Kennedy, the civil rights and feminist movement s, the Beatles, the Vietnam War, and baby boom competition. b. Distrusted author ity, but gave a high emphasis on achievement and material success. c. Organizati ons who employed them were vehicles for their careers. d. Terminal values: sense of accomplishment and social recognition. 3.Xersbegan to enter the workforce from the mid1980s.

They cherished the following values: a. Shaped by globalization, two career pare nts, MTV, AIDS, and computers. b. Value flexibility, life options, and achieveme nt of job satisfaction. c. Family and relationships were important and enjoyed t eam oriented work. d. Less willing to make personal sacrifices for employers tha n previous generations. e. Terminal values: true friendship, happiness, and plea sure 4.Ne xte rsmost recent entrants into the workforce. a. Grew up in prosperous time s, have high expectation, believe in themselves, and confident in their ability to succeed. b. Never ending search for ideal job; see nothing wrong with job hop ping. c. Seek financial success. d. Enjoy team work, but are highly self reliant . e. Terminal values: freedom and comfortable life. Q.6 What are the special iss ues in motivation? Discuss Ans : Some of the special issues in motivation are di scussed below. Motivating Professionals The professional employees likely to see k more intrinsic satisfaction from their work than blue-collar employees. They g enerally have strong and long term commitments to their field of expertise are p erhaps more loyal to their profession than to their employer. They need to regul arly update their knowledge, and their commitment to their profession. Therefore , extrinsic factors such as money and promotions would be low on their priority list. Rather, job challenge tends to be ranked high. They like to tackle problem s and find solutions.

Managerial Implications: Provide them with ongoing challenging projects. Give th em autonomy to follow their interests and allow them to structure their work. Re ward them with educational opportunities. Also reward them with recognition. Motivating temporary Workers: Temporary workers may be motivated if: They are pr ovided with permanent job opportunity The opportunity for training is provided t o them Provide equitable pay. Motivating Low Skilled Service Workers: One of the most challenging managerial tasks in to motivate low skilled workers who are in volved in repetitive physical work, where higher education and skills are not re quired. For this category of people, flexible work schedules and higher pay pack age may be proved effective motivational factors. Motivating Low-Skilled Service Workers involves: Recruit widely. Increase pay and benefits. Make jobs more appe aling.

Motivating People Doing Highly Repetitive Tasks: Recruit and select employees th at fit the job. Create a pleasant work environment. Mechanize the most distastef ul aspects of the job.

Assignment Set- 2 Q.1 Explain the theories of emotion? ANS: Psychologists have p roposed a number of theories about the origins and function of emotions. The the orists behind the dissenting views do agree on one thing, however: emotion has a biological basis. This is evidenced by the fact that the amygdala (part of the limbic system of the brain), which plays a large role in emotion, is activated b efore any direct involvement of the cerebral cortex (where memory, awareness, an d conscious "thinking" take place). In the history of emotion theory, four major explanations for the complex mental and physical experiences that we call "feel ings" have been put forward. They are: the James-Lange theory in the 1920's, the Cannon-Bard theory in the 1930's, the Schacter-Singer theory in the 1960's, and most recently the Lazarus theory, developed in the 1980's and 90's. The James-Lange Theory The James-Lange theory proposes that an event or stimulus causes a physiological arousal without any interpretation or conscious thought, and you experience the resulting emotion only after you interpret the physical response. Example: You're late leaving work, and as you head across the parking lot to your car, you hear footsteps behind you in the dark. Your heart pounds an d your hands start to shake. You interpret these physical responses as fear.

The Cannon-Bard Theory The Cannon-Bard theory, on the other hand, suggests that the given stimulus evokes both a physiological and an emotional response simulta neously, and that neither one causes the other. Example: You're home alone and hear creaking in the hallway outside your room. Y ou begin to tremble and sweat, and you feel afraid. The Schacter-Singer Theory The Schachter-Singer theory takes a more cognitive ap proach to the issue. Schacter and Singer believe that an event causes physiologi cal arousal, but that you must then identify a reason for the arousal before you label the emotion. Example: You're taking the last bus of the night, and you're the only passenger. A single man gets on and sits in the row behind you. When y our stop comes around, he also gets off the bus. He's walking behind you. You fe el tingles down your spine with a rush of adrenaline. You know that there have b een several muggings in your city over the past few weeks, so you feel afraid.

The Lazarus Theory The Lazarus theory builds on the Schacter-Singer theory, taki ng it to another level. It proposes that when an event occurs, a cognitive appra isal is made (either consciously or subconsciously), and based on the result of that appraisal, an emotion and physiological response follow. Example: You're bu ying a few last-minute items at the gas station, when two young men in hooded sw eatshirts enter the store in a hurry, with their hands in their jacket pockets. You think perhaps they're here to rob the place, so you get scared, and your fee l like you might throw up. While each of these theories is based in research, th ere is no absolute proof as yet how emotions arise in our bodies and minds, or w hat determines our own individual experiences of them. What we do know is that f eelings are a powerful force to be reckoned with, and should never be belittled. Q.2 Discuss the techniques of decision making in groups? ANS : Planning for Dec ision Making While decision making without planning is fairly common, it is ofte n not pretty. The terms used to describe it--crisis management, putting out fire s, seat-of-thepants governing--all reveal the inelegance and awkwardness of this way of life. Planning allows decisions to be made in a much more comfortable an d intelligent way. Planning even makes decisions easier by providing guidelines and goals for

the decision. We might even say that planning is a type of decision simplificati on technique (see the discussion of these techniques below). Decision makers wil l find four major benefits to planning: 1. Planning allows the establishment of independent goals. The vision which will shape the decisions is set apart from s urrounding events. Decisions are not made only as reactions to external stimuli. "Management by firefighting" is replaced by a conscious and directed series of choices. Managers now steer the organization, individuals now steer their lives, rather than being steered by external forces. Sometimes the difference between planning and not planning is described as "proactive" (taking control of the sit uation) versus "reactive" (responding to stimuli). 2. Planning provides a standa rd of measurement. A plan provides something to measure against, so that you can discover whether or not you are achieving or heading toward your goals. As the proverb says, If you don't know where you're going, it doesn't matter which way you go. 3. Planning converts values to action. When you are faced with a decisio n, you can consult your plan and determine which decision will help advance your plan best. Decisions made under the guidance of planning can work together in a coherent way to advance company or individual goals. Planning is useful in emer gency situations, too. When a crisis arises, a little thought about the overall plan will help determine which decision to make that will not only help resolve the crisis but will also help advance the overall plan. Without a plan, crises a re dealt with haphazardly and decisions are made which may ultimately be in conf lict with each other.

4. Planning allows limited resources to be committed in an orderly way. Budgets, time, effort, manpower--all are limited. Their best use can be made when a plan governs their use. A simple example would be planning to buy a house or a car. Rather than having to decide between buying the item right now with all cash or never having it, you can plan to buy it over several years by making payments. O r, you might combine this plan with the plan to buy a smaller house and add room s later as they could be afforded. By planning you can thus accomplish things th at might otherwise look impossible. Decision Levels We all recognize that some d ecisions are more important than others, whether in their immediate impact or lo ng term significance. As a means of understanding the significance of a decision so that we can know how much time and resources to spend on it, three levels of decision have been identified: 1. Strategic. Strategic decisions are the highes t level. Here a decision concerns general direction, long term goals, philosophi es and values. These decisions are the least structured and most imaginative; th ey are the most risky and of the most uncertain outcome, partly because they rea ch so far into the future and partly because they are of such importance. For ex ample: Decisions about what to do with your life, what to learn, or what methods to use to gain knowledge (travel, work, school) would be strategic. Whether to produce a low priced product and gain market share or produce a high priced prod uct for a niche market would be a strategic decision.

2. Tactical. Tactical decisions support strategic decisions. They tend to be med ium range, medium significance, with moderate consequences. For example: If your strategic decision were to become a forest ranger, a tactical decision would in clude where to go to school and what books to read. Or if your company decided t o produce a low priced product, a tactical decision might be to build a new fact ory to produce them at a low manufacturing cost. 3. Operational. These are every day decisions, used to support tactical decisions. They are often made with lit tle thought and are structured. Their impact is immediate, short term, short ran ge, and usually low cost. The consequences of a bad operational decision will be minimal, although a series of bad or sloppy operational decisions can cause har m. Operational decisions can be preprogrammed, pre-made, or set out clearly in p olicy manuals. For example: If your tactical decision is to read some books on f orestry, your operational decision would involve where to shop for the books. Yo u might have a personal policy of shopping for books at a certain store or two. Thus, the operational decision is highly structured: "Whenever books are needed, look at Joe's Books." An important comment should be made here. Issues should b e examined and decisions should be made at all of these levels. If you discover that nearly all of your thinking and decision making is taking place at the oper ational level, then you are probably not doing enough strategic thinking and pla nning. As a result you will lead a reactive life, responding only to the forces around you and never getting control of your life, your direction or your goals. Some Techniques for Decision Making

This is a list of easy, practical techniques that can be applied to simple or co mplex decisions. They share the assumption that circumspect analysis is the key to making good decisions. Many decisions are made with too little information an d too little thought, in a non-deliberate way. Think about it for a moment: how many people do you know who commonly spend even five minutes structuring and ana lyzing a decision? Note how these techniques provide a visible, structured, orde rly set of factors involved in a decision, so that the decision maker can consid er them in a thoughtful and coherent way. The first three techniques are especia lly for whether-type decisions, those involving yes/no, either/or, or two-possib ility decisions. 1. T-Chart. A T-Chart is an orderly, graphic representation of alternative features or points involved in a decision. In one form, it can be a list of positive and negative attributes surrounding a particular choice. Drawin g up such a chart insures that both the positive and negative aspects of each di rection or decision will be taken into account. For example, what are the pros a nd cons of deciding to buy a sport utility vehicle? PRO better visibility safer structure can take off road CON higher insurance poorer gas mileage more expensi ve maintenance

In another form, two possible choices are listed, with the good points or argume nts or effects listed for each. Suppose your company is trying to decide whether to create its own advertising or hire an agency. Use Outside Agency professional work expertise of ideas Write Ads In-House faster product better knowledge of product media connections use same ad in flyers To fill out this latter form, more than two choices can be included, and a list of negatives for each choice can be added as well. 2. PMI. Edward de Bono refine s the T-Chart idea into a three part structure, which he calls PMI for plus, min us, and interesting. Here you first list all the plus or good points of the idea , then all the minus or bad points, and finally all the interesting points--cons equences, areas of curiosity or uncertainty, or attributes that you simply don't care to view as either good or bad at this point (consequences that some people might view as good and others might view as bad, for example). The "interesting " category also allows exploration of the idea or choice outside the context of judgment--you don't have to evaluate the attribute into a positive or negative c ategory.

As simple as this technique seems to be, and as often as others will tell you, " Well, of course, everyone does that all the time," this is a very powerful but m uch neglected technique. Most people believe they list the pluses and minuses of a decision before making it, but in actual practice, many people make a decisio n or form an opinion before they consider the evidence in an orderly way. Only a fter they make a decision do they hunt around for reasons to support it. Conside ring the evidence on both (or all) sides before you commit yourself emotionally and psychologically to a position will have a major impact on the quality of you r decision making. 3. Buriden's Ass. This method of decision making is used when two or more equally attractive alternatives are faced. (From an old fable of an ass placed between two equally nice bales of hay. The ass couldn't decide which bale to turn to because they were both so attractive, and so it starved to deat h from indecision.) The method is simply to list all the negative points or draw backs about each decision. That is, when two or more alternatives seem very desi rable, we become blinded to any drawbacks. The Buriden's Ass method simply focus es on the drawbacks. 4. Measured Criteria. With this technique, you list the cri teria you want your decision to meet and assign points to each criterion based o n its relative importance in the decision. Then, each alternative is given a cer tain number of points according to how fully it meets the criterion. For points you can use a scale of 1 to 10, 1 to 100, or any other range that makes sense to you. In the example below, traveling by train is rated at 25 out of 30 points f or the "comfort" criterion, while the plane is ranked a little less comfortable, at 21 out of

30. Once all the alternatives have been assigned their due points for each crite rion, all the points for each alternative are added up and the alternative with the highest total points is the one chosen. In the example below, that would be the plane. 5. Decision Matrix or Weighted Decision Table. This is a slightly mor e sophisticated version of the measured criteria technique. Here a table is set up with each criterion given a weight depending on its importance in the decisio n and with each alternative given a ranking for that criterion. Q.3 Elaborate th e different stages in process of conflict? ANS: The conflict process can be seen as comprising five stages: (1) Potential opposition or incompatibility- The first step in the conflict proc ess is the presence on conditions that create opportunities for conflict to rise . These cause or create opportunities for conflict to rise. (2) Cognition and pe rsonalization -conflict must be perceived by the parties to it whether or not co nflict exists is a perception issue. (3) Intentions -Intentions are decisions to act in a given way intentions intervene between peoples perception and emotions and their overt behavior. These intentions are Competing, Collaborating, Avoidin g, Accommodating or Compromising. (4) Behavior -This is a stage where conflict b ecomes visible. The behavior stage includes the statements, actions and reaction s made by the conflicting parties. (5) Outcome- The action reaction interplay be tween the conflicting parties result in consequences. These outcomes may be func tional in that the conflict results in an improvement in the groups performance, or dysfunctional in that it hinders group performance.

Q.4 Write a note on GAS ( General Adaptation Syndrome)? ANS: GAS or General Adap tation Syndrome is a very common medical problem that can have very serious repe rcussions if left unattended. It was psychologist Hans Selye who discovered that prolonged and excessive stress can lead to infection, illness, disease and deat h. He then named this condition General Adaptation Syndrome (GAS). In general, t here are three stages of GAS. They are Alarm, Resistance and Exhaustion. Let's t alk a bit about each stage. Stage One: Alarm Alarm is essentially the initiation of the "fight of flight" response which prepares the body for life-threatening situations. Normal body activities such as the digestive and immune functions ar e blunted or nearly shut down in order to supply resources to more immediate mus cular and emotional needs. Stage Two: Resistance Now, if we're under a constant state of alarm, we are in essence living in constant state of stress. At this po int we start becoming used to these stress levels. The funny thing about this st age is that initially our body and immune system are becoming more resistance to stress and disease. However, this stage requires abnormally high levels of emot ional and physical resources. If things do not change for the better then the ne xt stage of the GAS process is inevitable.

Stage Three: Exhaustion Eventually reality kicks in and our bodies are unable to maintain high levels of stress resistance. Parts of the body literally start to break down and we become very unwell. To conclude this first section, please un derstand that Hans Selye and others experts are convinced that out-of-control st ress negatively influences a person's entire organism. Furthermore, these author ities believe that if left untreated, run away stress can result in disease and eventual death. The point here is that as a hypnotist, your contribution as a st ress management consultant is far more important than most people realize. Unman aged stress is not just an 'inconvenience'. It is a health threaten By the way, remember to take some of your own medicine once in a while and listen to stress reduction hypnosis CDs. It is much easier to convince a client of the benefits o f successful stress management when you are 100% congruent because of satisfying experience. By the way, remember to take some of your own medicine once in a wh ile and listen to stress reduction hypnosis CDs. It is much easier to convince a client of the benefits of successful stress management when you are 100% congru ent because of satisfying experience. Now, let's look at a case history that sho ws how to help a client suffering from severe GAS. When You're Client Has GAS -The Case of Bob First of all, in order to help a client with G.A.S., they must l earn how to F.A.R.T. and B.U.R.P. so they can ultimately P.O.O.P.

Now, before a person can B.U.R.P. (Begin Utilizing Response Procedures) or P.O.O .P. (Pursue Optimal Outcomes Persistently), they have to F.A.R.T. That is, they have to first Formulate Appropriate Response Techniques. This can be reduced to a simple statement. When a person starts to suffer from stress, they must S.T.O. P. and B.E.A.N.O. That is, they must Start To Observe Purposefully so that they can then Become Excited And Noticeably Optimistic. If they are unable to S.T.O.P and B.E.A.N.O., then they will have to F.A.R.T., B.U.R.P. and most likely, P.O. O.P. Let's look at a case history involving my client Bob. Bob has suffered for quite some time from severe stress effects. When he first came to our office, we realized that he was emotionally plugged up. In other words, his feelings were so bottled up that he absolutely could not P.O.O.P. The reason became apparent w hen it was discovered that he had never before learned how to properly F.A.R.T. and B.U.R.P. in response to stress. I knew this was not a case where the client could simply B.E.A.N.O. because that would not address the cause of his inabilit y to P.O.O.P. What he needed was an E.N.E.M.A. (Entirely New Explicit Meaning As sociation). As the reader may have guessed, this was a very sensitive situation because it involved reframing a learned response that was created in response to a family of origin dynamic.

Apparently there was some S.O.B. (Subtle Obfuscating Behavior) responsible for t he onset of the client's difficulty. Defeating this without running into family loyalty conflicts and their accompanying resistance effects is quite a job that requires deft handling and discernment. However, since the client was extremely motivated to get past his problem and move on we advanced a rather bold tactic. We decided to initiate a reverse E.N.E.M.A. The client became quite excited at t he idea. This was because we explained to him that we would go back in time and teach him as a young child how to P.O.O.P. In summary, the client has been relie ved of his GAS because after undergoing a reverse E.N.E.M.A. he was able to B.E. L.C.H. (Begin Expurgating Lousy Childhood History) which enabled him to successf ully F.A.R.T., B.U.R.P. and P.O.O.P. The point to this second section is that so metimes to heal, we just need to stop hanging onto old 'stuff' from our past bec ause doing so makes us much more prone to insidious medical disorders such as Ge neral Adaptation Syndrome. One must wonder that if GAS can cause such serious co nsequences then, what common diseases are actually the result of prolonged, unhe aled stress? Finally, as you can probably tell, this article was meant to be ton gue-in-cheek but the point is very serious. Helping a client reduce stress is no t just a "mental massage" that feels good in the short term. It is an essential element of a good and happy life.

And, don't forget that the family members of your client are also benefiting fro m your valuable and skilled assistance because they have longer to enjoy a healt hier and happier mom, dad or other important person. In closing I'd like to shar e a quote that can point a person toward a significantly more relaxed state of m ind and being: Q.5 Discuss the power and influence tactics? ANS: The general obj ective of this study was to examine the supervisors and subordinates use of power and their relationships to supervisors use of influence tactics. Specifically, th e purpose of this study was to examine power congruence and its impact on influe nce tactics in manufacturing companies in Malaysia. The present research differs from the previous studies by linking power congruence between supervisors and su bordinates power either from self or as perceived by their subordinates or superv isors with three dimensions of influence tactics known as, hard, soft, and ratio nal appeal tactics. This study is perhaps the first that tested congruence hypoth esis in leadership framework. The objective was to gain insight into ways by whic h the management of manufacturing companies might use their power to enhance the effective use of influence tactics on their subordinates. Ten broadly hypothesi zed relationships were tested in a field study with a sample of 385 pairs of sup ervisors and subordinates working in 82 manufacturing companies in Selangor/Kual a Lumpur, Penang, and Sarawak. Data were gathered from both supervisors and thei r subordinates by means of questionnaires. Methodologically, past research had b een prone to common method bias. However, this study has demonstrated to be rela tively free from this bias by collecting data from two sources. By and large, th e results from

the analyses have indicated moderate support for the hypotheses. This study is p erhaps the first to generate a new set of power congruence items in which simult aneous measurement from two perspectives-supervisors and subordinates-were taken to examine the aspect of mutuality. The first four hypotheses which investigate the direct relationship between supervisors or subordinates power and influence tactics revealed that supervisors would apply various influence tactics on thei r subordinates. Rational appeal tactics has exhibited the highest mean as compar ed with soft and hard influence tactics in the direct relationship between power and influence tactics. For the indirect hypotheses, only one particular dimensi on of influence tactics was found significant for each power congruence hypothes es. The results confirmed that when both supervisors and subordinates were perce ived to have position power, the use of hard influence tactics was most apparent . Conversely, when both of them were seen to have personal power, supervisors wo uld resort to the use of soft influence tactics. Inevitably, this study provides a conceptual foundation for the effective use of influence tactics. This study may be useful for those who are in positions of influence, to help the superviso rs and subordinates understand more clearly the bases of their own actions, and the possible alternatives to their actions. Practically, this research points to the fact that Malaysian managers and executives needto be trained in the effect ive use of influence tactics. Q.6 Explain the characteristics of organization Development? ANS: Values of OD This model places human centered values above everything else. They are the engine of its success. These values include mutual trust and confi dence, honesty and open communication, sensitivity and to the feeling and

emotions of others, shared goals, and a commitment to addressing and resolving c onflict (Buchanan and Huczynski, 1997, p.489). There are organizations who value these human attributes above all other quick fix benefits. Stephen Robbins (198 6, p.461) expresses these human values more concisely as follows: a) The individ ual should be treated with respect and dignity. b) The organization climate shou ld be characterized by trust, openness and support. c) Hierarchical authority an d control are not regarded as effective mechanisms. d) Problems and conflicts sh ould be confronted, and not disguised or avoided. e) People affected by change s hould be involved in its implementation. These values make OD a unique model and it will be shown later why it is the mos t suitable approach in resolving human afflictions and problems such as poverty alleviation. OD Approaches There are at least three planned change models that have been iden tified by Cummings and Worley (1997) as shown in figure II below. The first and the second are principally different but the third one is an improved version of Action Research methodology which has taken centre stage in the 1990s to take c are of the trend of emerging mega organizations, strategic alliances, mergers an d public private partnerships. The improved version named the Contemporary Actio n Research model is of great interest to the workshop participants as it can be used to promote projects in both public and private organizations. Later in this paper it will be shown how it can be used to promote Poverty Reduction Strategi es and gender mainstreaming in local government.

The distinction between Lewins model and Action Research model is in the repetiti ve nature of action research. Lewins model is a once only intervention. Buchanan and Huczynski, (1997) give seven steps that are followed in this intervention. 1 . Scouting the initial stages of consultant and client exchanging ideas on the p roblem and the appropriate approach. 2. Entry contract is entered into to formal ize the relationship of consultant and client. 3. Diagnosis information gatherin g to define the problem and identify causes. 4. Planning consultant and client m embers jointly establish the goals of an OD intervention and the proposed approa ch 5. Action the intervention strategies are implemented. 6. Stabilization and E valuation the change is stabilized (freezing takes place) and the outcomes are a ssessed. 7. Termination The consultant withdraws from the assignment. The action research model differs in several particular ways with the Lewins mode l. In action research the outcomes are fed back so that further improvements and changes can be made. This distinguishes this model as a cyclical and iterative process. The research aspect connotes a search 5 for knowledge that may be used elsewhere. OD Toolkits The above outlined procedure is the process through which results ar ea achieved but action research methodology has what are described as toolkits. These are used to address specific areas of problem. Once diagnosis is complete and the problem

identified one or more of these kits or interventions are employed to solve the problem. Some of these include; process consultation, change the structure, surv ey feedback, team building, inter-group development, role negotiation and sensit ivity training. These are just a number but action research allows flexibility f or the consultant to formulate a package of his own interventions to suit the cl ients 6 needs. Such flexibility was illustrated through an OD consultancy in a lo cal government organization. Organizational Development Interventions The Existence of certain conditions in an organization which may be described as the internal environment is sometimes assumed. Those who have been in an organization for too long cease to be conscio us of such an environment and probably only newcomers notice such conditions. Di fferent interventions are used when a need arises to change those conditions. So me of those interventions which are mentioned above deserve further explanation here. Cultural Analysis This is perhaps one of the most complex change action. C orporate culture is the result of long term social learning and constitutes of b asic assumptions, values, norms and artifacts that have worked well in an organi zation. These are passed on to succeeding generations of employees (Cummings and Worley, 1997). Some of these may have arisen from the principles of the founder and subsequently reinforced by succeeding top hierarchies of the organization. They may have an emphasis on product quality, customer care or employee relation s. When problems arise the first question which would arise is how do we do thin gs here? The answer

will inform the type of solution that emerges. Therefore the organizational cult ure influences organizational strategy, performance and policies. To change orga nizational culture may be a traumatic experience and will require careful analys is and handling. Such is the trauma that was experienced by American companies i n the 1980s when they adopted the Japanese approach which was influence by a str ong organizational culture of employee participation, open communication, Securi ty and equality. Process Consultation People conceive consultation as that situation where an exp ert is invited to advise an organization that is experiencing a problem. Edger S chein, (1998) has distinguished three types of consultations as; the expertise m odel, the doctor patient model and the process consultation model. The first mod el assumes that the client purchases from the consultant some expert information or service that he is unable to provide for himself. In the doctor patient mode l involves an activity similar to sickness diagnosis. The client who suspects or feels there is something wrong in the organization invites the doctor (consulta nt) to diagnose the organization so that he can advise on what is not right. The symptoms of the sickness may be low sales, employee instability or falling prod uct quality. The doctor (consultant) diagnoses, prescribes and administers the c ure. In this two models the knowledge and expertise remains with the expert and leaves the client fully dependent on the expert for future problems. OD advocate s process consultation promoted by Schein who defines the process as: The creatio n of a relationship with the client that permits the client to perceive, underst ands, and act on the process events that occur in the clients

internal and external environment in order to improve the situation as defined b y the client (Schein, 1998, p.20) . Schein argues that both the expert and the doc tor models are remedial models while as the process consultation model is both r emedial and preventive. The purport of this model is to engage an external consu ltant on a flexible advisory capacity to work with the clients members in diagno sing the problems, planning the actions and finding the solutions together. This way the consultant helps the organizations individuals to understand internal pr oblems and build capacity to identify appropriate problem solving action. The co nsultant need not be an expert in the problem at hand but his expertise is in fa cilitating a process that carries everybody in the search for solutions. This ap proach follows the rationale that the answers are with the people. So the only h elp required is leadership in diagnoses and in the process through the various s tages. The purpose also is to ensure that once the consultant leaves the people have the capacity to solve the next round of problems. In the first two models t he consultant will have to be recalled each time a new problem arises or an old one recurs. Structure Change This is an intervention that helps change the structure of an o rganization to make the work more interesting, challenging or productive. It may involve such activities as job enrichment, job enlargement, formation of autono mous work teams or business re engineering. Other actions may involve decentrali zation/centralization in an organization, flattening or extending of an organiza tions structure or even redesigning of focus from region to product or vice vers a.

Team Building Team work is vital to the functioning of modern organizations. Mem bers of teams bring different strings to the group such as leader, investigator, motivator, finisher, clown, coordinator, thinker, negotiator or politician. The se roles are used at different stages of production when such role play becomes essential in the groups work. Teams take over from hierarchical systems where in dividuals are assumed to know everything depending on their level in the authori ty ladder. This system denies the organization the cumulative advantage of skill s and strengths in different individuals. Role Negotiation A misunderstanding between two individuals in an organization o r group can affect its effectiveness. This is usually caused by lack of shared a wareness, misunderstanding or lack of trust. This intervention helps to clarify individual perceptions and mutual expectations so that differences can be identi fied and reconciled or resolved.

Assignment Set- 1 Master of Business Administration - MBA Semester -1 MB0039 Business Communication Q.1 Explain the different types of communication with relevant examples? ANS: Co mmunication is a process that involves exchange of information, thoughts, ideas and emotions. Communication is a process that involves a sender who encodes and sends the message, which is then carried via the communication channel to the re ceiver where the receiver decodes the message, processes the information and sen ds an appropriate reply via the same communication channel. Types of Communication Communication can occur via various processes and methods and depending on the c hannel used and the style of communication there can be various types of communi cation. Types of Communication Based on Communication Channels Based on the channels used for communicating, the process of communication can b e broadly classified as verbal communication and non-verbal communication.

Verbal communication includes written and oral communication whereas the nonverb al communication includes body language, facial expressions and visuals diagrams or pictures used for communication. Verbal Communication Verbal communication i s further divided into written and oral communication. The oral communication re fers to the spoken words in the communication process. Oral communication can ei ther be face-to-face communication or a conversation over the phone or on the vo ice chat over the Internet. Spoken conversations or dialogs are influenced by vo ice modulation, pitch, volume and even the speed and clarity of speaking. The ot her type of verbal communication is written communication. Written communication can be either via snail mail, or email. The effectiveness of written communicat ion depends on the style of writing, vocabulary used, grammar, clarity and preci sion of language. Nonverbal Communication Non-verbal communication includes the overall body langu age of the person who is speaking, which will include the body posture, the hand gestures, and overall body movements. The facial expressions also play a major role while communication since the expressions on a persons face say a lot about his/her mood. On the other hand gestures like a handshake, a smile or a hug can independently convey emotions. Non verbal communication can also be in the form of pictorial representations, signboards, or even photographs, sketches and pain tings. Types of Communication Based on Style and Purpose Based on the style of c ommunication, there can be two broad categories of communication, which are form al and informal communication that have their own set of characteristic features .

Formal Communication Formal communication includes all the instances where commu nication has to occur in a set formal format. Typically this can include all sor ts of business communication or corporate communication. The style of communicat ion in this form is very formal and official. Official conferences, meetings and written memos and corporate letters are used for communication. Formal communic ation can also occur between two strangers when they meet for the first time. He nce formal communication is straightforward, official and always precise and has a stringent and rigid tone to it. Informal Communication Informal communication includes instances of free unrestr ained communication between people who share a casual rapport with each other. I nformal communication requires two people to have a similar wavelength and hence occurs between friends and family. Informal communication does not have any rig id rules and guidelines. Informal conversations need not necessarily have bounda ries of time, place or even subjects for that matter since we all know that frie ndly chats with our loved ones can simply go on and on. Q.2 What are the general principles of writing especially business writing? ANS: The process of good wri ting involves three basic steps - preparing, writing, and editing. Practicing th e following 16 principles will help you be a more effective writer. 1. Know your objective Think before you write. What's your goal? Make sure you fully underst and the assignment. Are you writing a one-paragraph executive summary or a fivepage

report? Try answering this question: What specifically do I want the reader to k now, think, or do? 2. Make a list Write down the ideas or points you want to cov er. Why? This helps you get started in identifying the key ideas you want to dis cuss. If you have trouble getting started, try discussing your ideas with someon e else. "Kicking an idea around" often helps you clarify your objective and fine -tune what you are trying to accomplish. 3. Organize your ideas Just as it's dif ficult to find what you want in a messy, disorganized desk drawer, it's hard to find important ideas in a poorly organized message. Here are a few ways you can organize your ideas: Importance - Begin with the most important piece of information and then move on to the next most important.

Chronological order - Describe what happened first, second, third. Problem-Solut ion - Define the problem, then describe possible alternatives or the solution yo u recommend.

Question-Answer - State a question and then provide your answer. Organize your ideas so the reader can easily follow your argument or the point y ou are trying to get across.

4. Back it up Have an opinion but back it up - support with data. There are a nu mber of ways you can support your ideas, including explanations, examples, facts , personal experiences, stories, statistics, and quotations. It's best to use a combination of approaches to develop and support your ideas. 5. Separate main id eas Each paragraph should have one main point or idea captured in a topic senten ce. The topic sentence is normally the first sentence in the paragraph. Each par agraph should be started by an indentation or by skipping a line. 6. Use bullets or numbers If you are listing or discussing a number of items, use bullets or n umber your points like I have done in this paper. Here's an example of using bul lets. Join the Business Club to: Increase sales Gain new marketing ideas Make new friends Give back to your profe ssion 7. Write complete sentences A sentence is about someone doing something - taking action. The someone may be a manager, employee, customer, etc. The "doing somet hing - taking action" can include mental processes such as thinking, evaluating, and deciding, or physical

actions such as writing and talking. A good rule to practice is to have subjects closely followed by their verbs. 8. Use short sentences Sentences should be a m aximum of 12 to 15 words in length. According to the American Press Institute, s entences with 15 or fewer words are understood 90% of the time. Sentences with e ight or fewer words are understood 100% of the time. 9. Be precise and accurate . Words like "large," "small," "as soon as possible," "they," "people," "teamwor k," and "customer focus" are vague and imprecise. The reader may interpret these words to mean something different than what you intended. Reduce communication breakdowns by being specific and precise. Define terms as needed. The reader may not understand certain acronyms and abbreviations. 10. Use commas appropriately Use a comma to separate the elements in a series of three or more items:His fav orite colors are red, white, and blue. Use a comma to set off introductory eleme nts: After coffee and donuts, the meeting will begin. Use a comma to separate ad jectives: That tall, distinguished, good-looking professor teaches history.

11. Use the correct word Here are several words that cause confusion. You're is a contraction for "you are" Your means possession, such as "your coat. "

It's is a contraction for "it is." Its indicates possession. Their means possess ion/ownership-"their house." There means location. They're is a contraction for "they are." 12. Avoid redundancies It is a redundancy to use multiple words that mean or say the same thing. For example, consider the following: Redundant - My personal beliefs Beliefs are personal, so just state, My beliefs.. .

Redundant - I decided to paint the machine gray in color. Gray is a color, so ju st state, I decided to paint the machine gray. 13. Numbers When using numbers in the body of your paper, spell out numbers one through nine, such as "Three men decided" When using numbers 10 or above it's pro per to write the number, such as "The report indicated 68 customers"

14. Have a conclusion Would you really enjoy watching a movie or sporting event that had no conclusion? No. The conclusion ties your points together. The reader wants to know the final score - the bottom line message. 15. Edit your work Rea d what you have written several times. On your first read, focus on organization and sentence structure. Shorten long s entences. Cross out unnecessary words and phrases. Reorganize material as needed .

Read it again and make sure commas are used appropriately and that there is a pu nctuation mark at the end of every sentence.

Read it a third time and focus on word choice. Are there certain words that are vague or unclear? Replace them with specific words.

Read what you have written aloud to yourself or to a friend to see if he or she (and you) can understand it and improve it in any way. A significant part of good writing involves editing. Very few people can sit dow n and write a perfect paragraph on their first try. It requires multiple rewrite s. Summary You don't have to be a great writer to be successful manager/leader. However you must be able to clearly and succinctly explain your thoughts and ide as in writing. Strive to be simple, clear, and brief. Like any skill, "good writ ing" requires practice, feedback, and ongoing improvement.

Q.3 How would you prepare yourself for an oral business presentation? ANS: Deliv ering a formal presentation can be either fairly stress-free or nervewrecking. Y our level of comfort can depend on the size of your audience, the critical spect ators attending your presentation, or the feedback that you may anticipate. What ever you may find as a cause for concerns about speaking before a group, never l et it be your knowledge about what you will speak. With thorough and effective r esearch about your subject, you will discover that you are already halfway prepa red to address your listeners. The following steps can complete your preparation . 1 Study your subject. You may have already been provided great information from which you could pull. But if there are other sources, such as the Internet or ex perts, use them to enhance your own insight. Doing so can also help you develop more confidence in your speech. 2 In the comfort of your own study lab (wherever that may be), anticipate all types of responding questions from people in your audience: challenging questions, critical questions, crazy questions, and simple questions (the ones which are so simple that you forgot to prepare an answer fo r). Equip yourself with facts and insight accordingly. For enlightenment on peop le's views, I have read several message boards and even complaint sites to help me prepare for the unexpected. If your presentation is non-interactive, do not t ake that for granted. You can still be approached with questions after your spee ch or after the event where you gave it. 3 Organize the notes from which you wil l speak. Whether typed or handwritten, you must be able to comprehend them in or der to convey them to an audience. So, if you jot your notes down on index cards , write legibly.

Also, bind the notes - paper or cards - that you plan to use during your present ation. Dropping loose papers or cards during your speech should not distract an attentive listener, but it can certainly distract you, the speaker. Make your ta sk a tad bit easier on yourself alleviating the possibility of that problem. 4 I f you decide to speak with the aid of a Power Point presentation, bear in mind h ow you will insert information to be displayed. Don't expect an audience to read lengthy sentences or any paragraph - no matter how much time they are given. By all means, do not prepare yourself to read every word written on that Power Poi nt. The audience does not need to see the back of your head. They don't need to hear your voice drift into a state of monotony, which is what can happen if you read word-for-word from your notes. 5 Practice your presentation in private and be willing to be your own biggest critic. Grab a tape recorder or any recording device to listen to your own speech. 6 As I expressed above, approach the podium with a solid knowledge base about ev ery point your will discuss. 7 Please do not imagine your audience in their underwear. You need to focus. If eye contact with any of those listeners intimidates you, then look just past the last row of people to land your sight on either some empty seats or the wall. T here are corners of walls and other inanimate objects where you can place your f ocus until you find yourself comfortable enough to make brief eye contact with a few friendly or neutral faces. 8 Remember that the last row of listeners need to hear your voice. Unless you ha ve a reliable microphone, be sure to project.

9 Do not overestimate your listeners' attention spans. Keep their interest. Give your tone some range (logical range, that is). And wherever your subject and th e points from which you speak will allow, engage your audience with illustration s which they can relate to. 10 Please impose neither overly technical terminologies nor acronyms on your aud ience. While these expressions of intelligence seem effective, they actually ref lect a lazy effort to communicate detailed and comprehensible information to lis teners. 11 Remember that, at this point, there should be no reason to lose confidence. I f you've studied your subject, grasped a clear understanding of it, and followed the tips above, you have the tools to conquer any sharp sensation that you may feel in the pit of your gut going before any group. Q.5 Distinguish between circulars and notices along with formats? ANS: Notice A message / information's bringing to all which will be put up in common place C ircular- A message / information's bringing to certain group of people belonging to the information's. Like memos, circulars and notices are also written forms of communication within the organization.

The difference between a circular and a notice is that circulars are announcemen ts that are distributed to small or selective groups of people within the organi zation, whereas notices are meant for a larger group of people. Example If a man ager wants to call a meeting of heads of departments, he will pass around a circ ular only to the heads, requesting them to attend that meeting. On the other han d, notices generally contain information or announcements that are meant for all the employees of an organization. Example A list of declared holidays for a cal endar year is a notice, since the information is relevant to all employees. A no tice is therefore a legal document that has to be put up on an official notice o r bulletin board. Let us examine another example of a circular and a notice. Ima gine that you are the President of the Student Committee in a management college and wish to hold a meeting to plan for the Annual Management Fest of the colleg e. You will have to send some information to those whom you want to involve in o rganizing the Fest. You may not want all the students to be involved initially, since it may take a lot of time and there may be too many suggestions. Instead, you may choose to invite only the committee members to discuss details such as t he date, venue, duration, how to get sponsors and so on. For this purpose, you m ay send a circular only to the student committee members, requesting them to att end the meeting. During the meeting, the date and venue may be finalized and var ious smaller committees may be formed, such as a reception committee, stage comm ittee and so on. You may also decide to get each student to contribute a nominal amount for the Fest

Assignment Set- 2 Q.1 As a part of top management team, how would you communicate to your sharehol ders about the companys expansion plans? ANS:Commitment 2014 is a firm and confid ent ambition and it stands for profitable organic growth. Our ambition for 2014 is to become the European benchmark in Universal Customer-focused Banking. We in tend to enhance our leadership based on an effective product range and high-qual ity service, forging close links between retail banking and related specialised businesses. AMBITIOUS TARGETS By 2014, we target ambitious profitability levels underpinned by sound fundamentals: Net banking income of more than 25 billion ( 20. 1 billion in 2010) and net income, Group share of 6 billion to 7 billion ( 1.3 billi on in 2010). Our objective is also to have a cost to income ratio of less than 6 0% and a return on equity ratio of 10% to 12%. These targets take into account t he new Basel III regulatory environment, as it is currently understood. In terms of capital adequacy, Crdit Agricole S.A. will meet the Basel III requirements an d Crdit Agricole Group ranking among the strongest banks is confirmed. 2011-2014 STRATEGY Our actions in the period 2011-2014 will be based on three principles. First, we shall stimulate organic growth. To achieve this, we shall enhance grow th in retail banking, both in France and elsewhere in Europe; speed up growth in the savings management businesses, one of our undisputed strengths; and finally , focus on growth in investment banking and credit businesses. These businesses will continue to grow, but selectively, because of their heavy capital consumpti on. The

second principle behind our strategy is that we shall enhance the Group effect b y strengthening ties between our business lines. The third principle is that we shall act as a committed and responsible Group in dealing with stakeholders, and in particular our shareholders. OUR SHAREHOLDERS Crdit Agricole S.A. has set up a comprehensive shareholder information and communication framework. The new lay out of the Shareholders Club Newsletter, En direct you discover today, is aimed at strengthening this direct link between you and us, and is part of a broader atte mpt to make full and transparent information available to you. Our dividend poli cy targets a payout rate of 35% from 2011 (paid in 2012), in cash. Through Commi tment 2014, we want to thank our shareholders for their loyalty by paying an inc reased dividend. Q.2 ABC Ltd. wants to communicate about its corporate image to all its stakehold ers and also to the general public. As an advisor, how do you recommend them to do it? ANS: Our communications and engagement strategy needs to be simple because we ar e working in a complex environment otherwise our actions become confusing to the people we work with. The strategy therefore highlights just 20 key steps we wil l take to communicate and engage with people effectively. It also explains our s implified approach to outreach work, including events and festivals. Recommendat ion that: you agree the strategy and its associated annexes.

2 BACKGROUND 2.1 We have significantly improved the way we communicate and engag e with people over the last few years. This has been recognised through anecdota l evidence and the recent Customer Service Excellence award. However, we need a strategy to coordinate our activities and guide future business planning. We als o need to be able to measure our success more effectively. ABC our communications and engagement strategy (Annex 1) aims to do this. 3 POLICY CONTEXT 3.1 The adoption of a Communications and Engagement Strategy is action 3.2 in the Business Plan July 2006-March 2009 (revised October 2007). 3. 2 The strategy supports the delivery of our Business Plan in its entirety. The m essages within it explain that we must be excellent communicators, promoting lea rning and inspiring people about the National Park in all that we do. 4 OPTIONS 4.1 Option 1: You agree the recommendation Option 2: You agree the rec ommendation with further development of some steps Option 3: You do not agree th e recommendation 5 PROPOSALS 5.1 The Communications and Engagement Task and Finish Group was esta blished to develop this strategy. It includes staff from the Communications and Learning Team and members. They undertook a SWOT analysis (Strengths, Weaknesses , Opportunities and Threats) and agreed the simple approach recommended. They co mmented on the 20 key steps ensuring that they were strategic and not too

detailed. Option 1 is recommended for approval and it is hoped that members will be involved in the delivery and review of the strategy as it progresses. 6 BEST VALUE IMPLICATIONS 6.1 The statutory duty of best value requires organisa tions to consult service users and other stakeholders about services and priorit ies. The duty was revised in the Local Government and Public Involvement in Heal th Bill in May 2007 to engage more with hard-to-reach groups and to secure parti cipation of communities in delivery of local public services. This strategy supp orts the delivery of this function by focusing on engagement with partners and l ocal people, particularly through two of our four key Lake District National Par k Authority Agenda Item: 9 Authority: 22 May 2008 requirements for effective com munications listening and interpreting demands; unraveling complex issues. 7 FINANCE CONSIDERATIONS 7.1 There are financial implications in the delivery of the strategy. You have already agreed revenue growth bids (totalling 45,000) to support step 9 in the strategy and development of Level One events and festivals which we sponsor (Annex B). You have also agreed existing budgets to support on going work led by the Communications and Learning Team. Agreement of any additio nal budgetary requirements to deliver all steps in the strategy will form part o f the corporate planning and performance cycle.

8 RISK 8.1 Each step in the strategy has a different degree of risk which will b e managed through respective service plans. Overall, if we do not develop our co mmunications and engagement activities, there is a significant risk that we lose our Customer Service Excellence standard. 9 LEGAL CONSIDERATIONS 9.1 Effective communication is key to performance of our statutory objectives. The proposed strategy will assist with good governance by improving communication within the Authority and will help clarify relationships with partners. 10 HUMAN RESOURCES 10.1 The Communications and Learning Team, including its Outr each Unit, are part of the established structure and will take a clear coordinat ing role in delivering the strategy. The strategy also makes it clear that new a pproaches to communications and engagement should be a part of existing roles ac ross the organisation. This will be dealt with through Service Planning and Pers onal Development Reviews. 11 DIVERSITY IMPLICATIONS 11.1 This strategy is of high importance to diversity. In the past, our approach to targeting groups may have had an adverse impact on particular groups already using our services. The strategy explains that we wil l now base our actions on the needs of different groups and clear evidence. Anne x A ( Reaching Out) explains how we will not target people, but work with focus gro ups to identify needs over time. We want toreach out to everyone and use the Nat ional Park to build links between different cultures.

12 SUSTAINABILITY 12.1 The strategy will contribute to the promotion of learning and inspiring people about all aspects of sustainability which is at the heart of the Vision for the National Park. Author/Post Bob Sutcliffe, Head of Plans an d Communications Date Written 2 May 2008 Q.3 What is oral business communication? Explain its benefits to the organisatio n and to the individual employee. ANS: According to a 2005 study published in th e Journal of Employment Counseling, oral communication skills are being increasi ngly sought after by employers. When surveying over 100 successful businesses, r esearchers found that more and more employers are emphasizing the development of good speaking skills in their employees. With this in mind, the concept of oral communication is an important idea to study and understand in the context of bu siness. Presentations: One form of oral communication in a business setting is a present ation. Presentations are usually an organized conveyance of information to a gro up of people. Stylistically, they tend to be far more formal than informal, and rely more heavily on data and facts than they do analysis. Presentations are som etimes more persuasive in nature, like a pitch for an ad campaign, but tend to b e informative more often, such as an employee briefing or a report on quarterly earnings. Presentations may include some dialog after the sender of the message has finished their speech, but they are, by and large, much more monologue relia nt. This makes

it important for the speaker to anticipate possible objections to the message an d address them in the actual speech. Client Interaction: Another form of oral communication in business encompasses i nteraction with clients. Depending on the level of connection between the employ ee and the client, the communication in these interactions can range from incred ibly formal to informal and casual. These interactions usually include a combina tion of data and analysis, and will be more persuasive than informative in natur e, as the employee is trying to encourage continued and expanded business with t he client. Because of the nature of these interactions, the communication is def initely a dialog, making listening skills incredibly important. Interoffice Interaction: Oral communication in the office can be referred to as interoffice interaction. This is comprised of conversations with superiors, subo rdinates and co-workers. Depending on the levels of power separation between the individuals engaging in conversation, the communication will fluctuate between formal and informal, though it should always remain professional. Conversations in this context may reference data, but will be much more analysis heavy, and wi ll be a dialog by nature. Benefits: Oral communication in business provides a variety of benefits. First, oral communication is accompanied by nonverbal signifiers, which provides contex t

that can enhance understanding in the communication process. Posture, facial exp ressions, and habitual movements may provide clues as to an individuals feelings about the ideas being discussed. Even in telephone conversations, pitch, rate, volume and tone of the respective speakers can help in understanding sentiments. Oral communication also provides a springboard for relational development. Unli ke with email, memos and chat functions, which tend to take a task-oriented appr oach to communication, the immediacy involved in oral communication allows for i nstant feedback and a more relational approach. This is important, as strong rel ationships in business often lead to more profitable and productive cooperation. Q.4. Give short notes on communication network in the organisation? ANS: Networks are another aspect of direction and flow of communication. Bavelas has shown that communication patterns, or networks, influence groups in several important ways. Communication networks may affect the group's completion of the assigned task on time, the position of the de facto leader in the group, or the y may affect the group members' satisfaction from occupying certain positions in the network. Although these findings are based on laboratory experiments, they have important implications for the dynamics of communication in formal organiza tions. There are several patterns of communication: "Chain", "Wheel", "Star",

"All-Channel" network, "Circle". The Chain can readily be seen to represent the hierarchical pattern that charact erizes strictly formal information flow, "from the top down," in military and so me types of business organizations. The Wheel can be compared with a typical aut ocratic organization, meaning oneman rule and limited employee participation. Th e Star is similar to the basic formal structure of many organizations. The AllCh annel network, which is an elaboration of Bavelas's Circle used by Guetzkow, is analogous to the free-flow of communication in a group that encourages all of it s members to become involved in group decision processes. The All-Channel networ k may also be compared to some of the informal communication networks. If it's a ssumed that messages may move in both directions between stations in the network s, it is easy to see that some individuals occupy key positions with regard to t he number of messages they handle and the degree to which they exercise control over the flow of information. For example, the person represented by the central dot in the "Star" handles all messages in thegroup. In contrast, individuals wh o occupy stations at the edges of the pattern handle fewer messages and have lit tle or no control over the flow of information.These "peripheral" individuals ca n communicate with only one or two other persons and must depend entirely on oth ers to relay their messages if they wish to extend their range. In reporting the results of experiments involving the Circle, Wheel, and Star configurations, Ba velas came to the following tentative conclusions. In patterns with positions lo cated centrally, such as the Wheel and the Star, an organization quickly develop s around the people occupying these central positions. In such

patterns, the organization is more stable and errors in performance are lower th an in patterns having a lower degree of centrality, such as the Circle. However, he also found that the morale of members in high centrality patterns is relativ ely low. Bavelas speculated that this lower morale could, in the long run, lower the accuracy and speed of such networks. In problem solving requiring the pooli ng of data and judgments, or "insight," Bavelas suggested that the ability to ev aluate partial results, to look at alternatives, and to restructure problems fel l off rapidly when one person was able to assume a more central (that is, more c ontrolling) position in the information flow. For example, insight into a proble m requiring change would be less in the Wheel and the Star than in the Circle or the Chain because of the "bottlenecking" effect of data control by central memb ers. It may be concluded from these laboratory results that the structure of com munications within an organization will have a significant influence on the accu racy of decisions, the speed with which they can be reached, and the satisfactio n of the people involved. Consequently, in networks in which the responsibility for initiating and passing along messages is shared more evenly among the member s, the better the group's morale in the long run. Q. 5 What are the different types of business letters? Explain with example. ANS: Business letter is an old form of official correspondence. A business lette r is written by an individual to an organization or an organization to another o rganization. Business letters are written for various purposes. One writes a let ter to enquire information, apply for a job, acknowledge someone's work, and app reciate one's job done, etc. As the motive of writing the letter is different, t he

style of the letter changes and you get different types of business letters. The various types of business letters are used by different people to serve their p urpose of sending the message across. Let's take look at the most common types of business letters: Acknowledgement Letter : This type of letter is written when you want to acknowl edge some one for his help or support when you were in trouble. The letter can b e used to just say thanks for something you have received from some one, which i s of great help to you. Apology Letter : An apology letter is written for a failure in delivering the de sired results. If the person has taken up a task and he fails to meet the target then he apologizes and asks for an opportunity to improve in this type of lette r. Appreciation Letter : An appreciation letter is written to appreciate some one's work in the organization. This type of letter is written by a superior to his j unior. An organization can also write an appreciation letter to other organizati on, thanking the client for doing business with them. Complaint Letter : A complaint letter is written to show one that an error has o ccurred and that needs to be corrected as soon as possible. The letter can be us ed as a document that was used for warning the reader. Inquiry Letter : The letter of inquiry is written to inquire about a product or service. If you have ordered a product and yet not received it then you can writ e a letter to inquire when you will be receiving it.

Order Letter : This letter is as the name suggests is used for ordering products . This letter can be used as a legal document to show the transaction between th e customer and vendor. Letter of for a job rsonality mendation Recommendation : This type of letter is written to recommend a person position. The letter states the positive aspects of the applicant's pe and how he/she would be an asset for the organization. Letter of recom is even used for promoting a person in the organization.

Assignment Set- 1 Master of Business Administration MBA Semester -1 MB0040 STATI STICS FOR MANAGEMENT Q. 1 What is the difference between a qualitative and quantitative variable? ANS : Scientific experiments will normally have three types of variables; controlled , independent and dependent. Variables are a condition or factor that is used in testing a hypothesis and generating a conclusion. These three types of variable s can also be quantitative or qualitative in nature. Qualitative: By definition something that is qualitative concerns or describes a quality. A qualitative var iable is a descriptive. Qualitative variable are sometimes referred to as catego rical. The variable may be colors in the light spectrum or a comparison between red and green grapes. Qualitative variables can influence the outcome of an expe riment or research because they can influence other factors or parameters. Quali tative variables are frequently used in social research. Qualitative research is considered to be inductive. Quantitative: By definition something that is quant itative can be expressed as a quantity or number. Quantitative variables are som ething that can be measured. Quantitative variables are numerical. A quantitativ e variable can be a percentage of something, a number of units or any other meas urement.

Temperature is a quantitative value or variable by the number of degrees. Speed, area population, voltage and time are all examples of quantitative variables th at can be measured. Quantitative variables are most often considered to be deduc tive in nature. Deduction and induction in experimentation and research: Deducti on works from a general idea to a specific idea. Deductive research starts with a theory, forms a hypothesis, gathers observations and then confirms or disprove s the original thought. Induction works in the reverse. Inductive experimentatio n will start with an observation and then look for patterns in the observation. Once patterns form a hypothesis is developed. The hypothesis is then tested for a resulting theory. The best results in experimentation come from having only on e independent variable. The controlled variable is something that does not chang e and must remain constant. The independent variable is the variable that is cha nged by the researcher. The dependent value is the variable that changes due to the independent variable. An example of quantitative variables in an experiment would be testing the change in speed on a turntable as additional weight is appl ied. The turntable itself is the controlled variable. The experimenter will only use one. The independent quantitative variable is the amount of weight applied for each measurement. The dependent quantitative variable is the resulting speed that is measured. An example of a qualitative variable in testing would be the drying time require for red and green grapes at a constant temperature. The outc ome, or dependent

variable, of time is measured and therefore quantitative. The controlled e being used is temperature, also quantitative. The independent variable itative, the difference between red and green grapes. In this particular the weight of each grape, a quantitative variable would also need to be ent or controlled.

variabl is qual example consist

Q 2. a) Explain the steps involved in planning of a statistical survey? ANS: I'v e explained the fundamentals of creating and executing surveys. We've explored h ow to construct questions so they yield accurate, useful data. We've discussed h ow to boost your response rate, thereby squeezing more value from your efforts. And we've talked briefly about the various strategies you can employ to solicit participation from your respondents. But, everything begins with the initial pla n; you shouldn't approach it haphazardly. In this article, I'll describe the 5 s teps that you and your design team should follow to plan a successful survey exe cution. Step #1: Identify Your Objective This first step is more involved than you might think and is the foundation upon which the other steps depend. It's not enough to say, "I need to know if custom ers are satisfied" or "I want to measure employee morale." You should know in ad vance the precise reasons you want to collect data, what you hope to learn from the information, and the actions you intend to take once you and your team have reviewed the responses. Unless you have already identified a specific reason for conducting your survey, including how it will add value to your business or org anization, you shouldn't move forward.

Step #2: Determine How Much It Will Cost Design and deployment can be expensive depending upon its scope, the information you hope to collect, and your population size. Some of the costs aren't immedia tely obvious. For example, if you're using employees to approach participants, y ou'll need to pay for their time. If you're conducting a survey by mail, you'll have to pay postage. Analyzing the data also carries a cost. Plan conservatively to ensure you have the budget to see the project through its completion. Step #3: Plan The Logistics You'll need to choose your participant pool, figure out how to approach them, an d determine how much time your project will require. Don't take any of these ite ms lightly. Your selection of the people you choose to approach will depend upon the type of information you hope to collect. For example, surveying single men between ages 30 and 39 will yield different data than married couples over 60. Y our strategy for approaching them can vary between phone, email, in person inter views, postal mail, etc. The time you'll need to complete your survey will be ba sed largely upon these factors. Step #4: Define Your Resources Beyond your budget, time constraints, and other limitations; you'll need to iden tify resources (both internal and external) upon which you'll rely for expertise and assistance. For example, if you're measuring employee satisfaction, you'll want to enlist the help of your organization's human resources department. If yo u're

outsourcing the design of your survey, you'll need to identify and interview a n umber of experienced agencies. During this step, you should also determine the i nternal personnel who will need to see your team's analysis of the data (i.e. pr esident, CFO, accounting department, etc.). Step #5: Map The Steps To Completion Before you execute your survey, take the time to create a chronological timetabl e of the project. It should detail each step in the process, including who is re sponsible for collecting the information needed to complete each step and the sp ecific tasks that are involved along the way. Without creating this plan ahead o f time, you risk wasting finite resources as a result of confusion and lack of a ccountability. Successful Deployment Creating and executing effective surveys that yield useful data require a lot of time and upfront planning. If you approach the task methodically and follow the 5 steps we've covered above, you'll dramatically improve the likelihood of succ ess. Remember your objective: to collect accurate information that you can take action upon for a predefined benefit to your organization. In an upcoming articl e, we'll explore the deployment in more detail. b) What are the merits & Demerit s of Direct personal observation and Indirect Oral Interview? ANS: In the direct personal observation method, the investigator collects data by having direct co ntact with units of investigation.The accuracy of data depends

upon the ability, training and attitude of the investigator. The direct personal observation method is suitable where - The scope of investig ation is narrow - Investigation is confidential and requires personal attention of the investigator - Accuracy of data is important Merits and demerits of direct personal observation Merits: 1) We get original data. 2) we get more accurate and reliable data. 3) S atisfactory information can be extracted by the investigator through indirect qu estions. 4) Data are homogeneous and comparable. 5) Additional information can b e gathered. 6) Misinterpretation of questions can be avoided. Demerits: 1) It is time consuming and costs more. Indirect oral interview is used when area to be covered is large. The data is co llected from a third party or witness or head of institution. This method is gen erally used by police department.

Merits and demerits of indirect oral interview Merits: 1) It is economical in terms of time, cost and manpower. 2) Confidential information can be collected. 3) Information is likely to be unbiased and relia ble. Demerits: 1) The degree of accuracy of information is less. Q 3. a) What is the main difference between correlation analysis and regression analysis? ANS: (1) T he correlation answers the STRENGTH of linear association between paired variabl es, say X and Y. On the other hand, the regression tells us the FORM of linear a ssociation that best predicts Y from the values of X. (2a) Correlation is calculated whenever: * both X and Y is measured in each subj ect and quantify how much they are linearly associated. * in particular the Pear son's product moment correlation coefficient is used when the assumption of both X and Y are sampled from normally-distributed populations are satisfied * or th e Spearman's moment order correlation coefficient is used if the assumption of n ormality is not satisfied. * correlation is not used when the variables are mani pulated, for example, in experiments.

(2b) Linear regression is bles (Xi's) is to predict ummy variables, i.e. Xi = * if one manipulates the

used whenever: * at least one of the independent varia the dependent variable Y. Note: Some of the Xi's are d 0 or 1, which are used to code some nominal variables. X variable, e.g. in an experiment.

(3) Linear regression are not symmetric in terms of X and Y. That is interchangi ng X and Y will give a different regression model (i.e. X in terms of Y) against the original Y in terms of X. On the other hand, if you interchange variables X and Y in the calculation of correlation coefficient you will get the same value of this correlation coefficient. (4) The "best" linear regression model is obtained by selecting the variables (X 's) with at least strong correlation to Y, i.e. >= 0.80 or <= -0.80 (5) The same underlying distribution is assumed for all variables in linear regr ession. Thus, linear regression will underestimate the correlation of the indepe ndent and dependent when they (X's and Y) come from different underlying distrib utions. b) In a multiple regression model with 12 independent variables, what ar e the degrees of freedom for error? Explain? ANS: Consider a random sample of n observations (xi1, xi2, . . . . , xip, yi), i = 1, 2, . . . , n. The p + 1 rando m variables are assumed to satisfy the linear model yi 0 1xi1 2xi2 pxip + ui i = 1, 2, . . . , n

where ui are values of an unobserved error term, u, and. the unknown parameters are constants. Assumptions The error terms ui are mutually independent and identically distributed, with me an = 0 and constant variances E [ui] = 0 V [ui] =

This is so, because the observations y1, y2, . . . ,yn are a random sample, they are mutually independent and hence the error terms are also mutually independen t

The distribution of the error term is independent of the joint distribution of x i, x 2, . . . , x p 0 1 2 p

are constants. Equations relating the n observations can be written as: 0 1 p can be estimated using the least squares procedure, which minimizes the sum of squares of errors. Minimizing the sum of squares leads to the following equations, from which the

Geometrical Representation The problem of multiple regression can be geometrical ly represented as follows. We can visualize that n observations (xi1, xi2, ..xip, yi) i = 1, 2, .n are represented as points in a (p+1) - dimensional space. The r egression problem is to determine the possible hyper-planes in the p dimensional space, which will be the best- fit. We use the least squares criterion and loca te the hyper-plane that minimizes the sum of squares of the errors, i.e., the di stances from the points around the plane (observations) and the point on the pla ne. (i.e. the estimate ). = a+b1x1+b2x2++bpxp Standard error of the estimate Se = where yi = the sample value of the dependent variable i = corresponding valu e estimated from the regression equation

n = number observations p = number of predictors or independent variable The den ominator of the equation indicates that in multiple regression with p independen t variables, the standard error has n-p-1 degrees of freedom. This happens becau se the degrees of freedom are reduced from n by p+1 numerical constants a, b1, b 2, ..bp, that have been estimated from the sample. Fit of the regression model Th e fit of the multiple regression model can be assessed by the Coefficient of Mul tiple determination, which is a fraction that represents the proportion of total variation of y that is explained by the regression plane. Sum of squares due to error

SSE = Sum of squares due to regression SSR = Total sum of squares SST = Obviously, SST = SSR + SSE The ratio SSR/SST represents the proportion of the total variation in y explained by the regression model. This ratio, denoted by R2, is called the coefficient of multiple determination. R2 is sensitive to t he magnitudes of n and p in small samples. If p is large relative to n, the mode l tends to fit the data very well. In the extreme case, if n = p+1, the model wo uld exactly fit the data. A better goodness of fit measure is the adjusted R2, w hich is computed as follows: Adjusted R2= 1 ( ) (1-R2) =1-

Statistical inferences for the model The overall goodness of fit of the regressi on model (i.e. whether the regression model is at all helpful in predicting the values of y can be evaluated, using an Ftest in the format of analysis of varian ce. Under the null hypothesis: Ho: 1 = 2 = ... = p = 0, the statistic = has an F-distri ution with p and n--1 degrees of freedom ANOVA Ta le for Multi ple Regression Source of Variation Sum of Squares Degrees of freedom Regression Error Total SSR SSE SST p (n-p-1) (n-1) MSR MSE MSR/MSE Mean Squares F ratio Whether a particular varia le contri utes significantly to the regression equati on can e tested as follows: For any specific varia le xi, we can test the null hypothesis Ho: i = 0, y computing the statistic t=

and performing a one or two tailed t-test with n-p-1 degrees of freedom. Standar dized regression coefficients The magnitude of the regression coefficients depen ds upon the scales of measurement used for the dependent varia le y and the expl anatory varia les included in the regression equation. Unstandardized regression coefficients cannot e compared directly ecause of differing units of measurem ents and different variances of the x varia les. It is therefore necessary to st andardize the varia les for meaningful comparisons. The estimated model i = bo+b1 xi1+b2xi2+.bpxip can be written as: + The expressions in the parentheses are standardized variables; bs; are unstanda rdized regression coefficients and s1, s2, sp are the standard deviations of vari a les x1, x2, .xp and sx is the standard deviation of varia le y. The coefficient s ( isi)/sy, j=1,2,,p are called standardized regression coefficients. The standa rdized regression coefficient measures the impact of a unit change in the standa rdized value of xi on the standardized value of y. The larger the magnitude of s tandardized i, the more xi contri utes to the prediction of y. However, the reg ression equation itself should e reported in terms of the unstandardized regres sion coefficients so that prediction of y can e made directly from the x varia les.

Multiple Correlation Multiple correlation coefficient, R, is a measure of the st rength of the linear relationship etween y and the set of varia les x1, x2, xp. It is the highest possi le simple correlation etween y and any linear com inati on of x1,x2,.,xp. This property explains that the computed value of R is never ne gative. In this sense, the least squares regression plane maximizes the correlat ion etween the x varia les and the dependent varia le y. Hence, it represents a measure of how well the regression equation fits the data. When the value of th e multiple correlation R is close to zero, the regression equation arely predic ts y etter than sheer chance. A value of R close to 1 indicates a very good fit . Partial Correlation A useful approach to study the relationship etween two va ria les x and y in the presence of a third varia le z is to determine the correl ation etween x and y after controlling the effect of z. This correlation is cal led partial correlation. Partial correlation is the correlation of two varia les while controlling for a third or more other varia les. For example r12.34 is th e correlation of varia les 1 and 2, controlling for varia les 3 and 4. If partia l correlation r12.34 is equal to uncontrolled correlation r12 , it implies that the control varia les have no effect on the relationship etween varia les 1 and 2.. If partial correlation is nearly equal to zero, it implies that the correla tion etween original varia le is spurious. Partial correlation coefficient is a measure of the linear association etween two varia les after adjusting for the linear effect of a group of other varia les. If the num er of other varia les i s equal to 1, the partial correlation coefficient is called

the first order coefficient. If the num er of other varia les is equal to 2, the partial correlation coefficient is called the second order coefficient, and so on. First order Partial Correlation The first order partial correlation etween xi and xj holding constant xl is computed y the following formula rij.l = where rij, ril and rjl are zero order (Pearsons r coefficient) Second ord er Partial Correlation Correlation etween xi and xj holding constant xl and xm is computed y the following formula: rij.lm = where rij, rim.l, rjm.l are first order partial correlation coefficient s. Statistical significance of partial correlation coefficients can e tested y using a test statistic similar to the one for simple correlation coefficient. t= where q is the num er of varia les held constant. The value of t is compared with ta ulated t for n-q-2 degrees of freedom.

Multicollinearity In practice, the pro lem of multicollinearity occurs when some of the x varia les are highly correlated. Multicollinearity can have significan t impact on the quality and sta ility of the fitted regression model. A common a pproach to multicollinearity pro lem is to omit explanatory varia les. For examp le if x1 and x2 are highly correlated (say correlation is greater than 0.9), the n the simplest approach would e to use only one of them, since one varia le con veys essentially all the information in the other varia le. The simplest method for detecting multicollinearity is the correlation matrix, which can e used to detect if there are large correlations etween pairs of explanatory varia les. W hen more su tle patterns of correlation coefficients exist, the determinant of t he correlation matrix computed y IDAMS can e used to detect multicollinearity. The determinant of the correlation matrix represents as a single num er the gen eralized variance in the set of predictor varia les, and varies from 0 to 1. The value of the determinant near zero indicates that some or all explanatory varia les are highly correlated. The value of the determinant equal to zero indicates a singular matrix, which indicates that at least one of the predictors is a lin ear function of one or more other predictors. Another approach is to compute the tolerance associated with a predictor. The tolerance of xi is defined as 1 minus the squared multiple correlation between that xi and the remaining x variables. When tolerance is small, say less than 0.01, then it would be expedient to disca rd the variable with the smallest tolerance. The inverse of the tolerance is cal led the variance inflation factor (VIF).

Stepwise Regression Stepwise regression is a sequential process for fitting the least squares model, where at each step a single explanatory variable is either added to or removed from the model in the next fit. The most commonly used crite rion for the addition or deletion of variables in stepwise regression is based o n partial F-statistic: = The suffix Full refers to the larger model with p explanatory variables, whereas the suffix Reduced refers to the reduced model with ( variables. Forward selectio n Forward selection procedure begins with no explanatory variable in the model a nd sequentially adds a variable according to the criterion of partial F- statist ic. At each step, a variable is added, whose partial F- statistic yields the sma llest p - value. Variables are entered as long as the partial F-statistic p-valu e remains below a specific maximum value (PIN). The procedure stops when the add ition of any of the remaining variables yields a partial p-value > PIN. This pro cedure has two limitations. Some of the variables never get into the model and h ence their importance is never determined. Another limitation is that a variable once included in the model remains there throughout the process, even if it los es its stated significance, after the inclusion of other variable(s). ) explanat ory

Backward elimination The backward elimination procedure begins with all the vari ables in the model and proceeds by eliminating the least useful variable at a ti me. A variable, whose partial F p-value is greater than a prescribed value, POUT , is the least useful variable and is therefore removed from the regression mode l. The process continues, until no variable can be removed according to the elim ination criterion. Stepwise procedure The stepwise procedure is a modified forwa rd selection method which later in the process permits the elimination of variab les that become statistically nonsignificant. At each step of the process, the p -values are computed for all variables in the model. If the largest of these p-v alues > POUT, then that variable is eliminated. After the included variables hav e been examined for exclusion, the excluded variables are re-examined for inclus ion. At each step of the process, there can be at the most one exclusion, follow ed by one inclusion. It is necessary that PIN POUT to avoid infinite cycling of the process. Regression with Qualitative Explanatory Variables Sometimes, explan atory variables for inclusion in a regression model are not interval scale; they may be nominal or ordinal variables. Such variables can be used in the regressi on model by creating dummy (or indicator) variables. Dichotomous Variables Dichoto mous variables do not cause the regression variables to lose any of their proper ties. Since they have two categories, they manage to trick least squares,

while entering into the regression equation as interval scale variables with jus t two categories. Consider for example, the relationship between income and gend er y = a + bx where y = income of an individual, and x = a dichotomous variable, coded as 0 if female 1 if otherwise The estimated value of y is =a if x = 0 =a+b if x = 1 Since our best estimate for a given sample is the sample mean, a is es timated as the average income for females and a+b is estimated as average income for males. The regression coefficient b is therefore male female In effect, females are considered as the reference group and males income is meas ured by how much it differs from females income.

Polytomous Variables Consider, for example, the relationship between the time sp ent by an academic scientist on teaching and his rank. y = a+bx where y is the p ercentage of work time spent on teaching x is a polytomous variable rank with thre e modalities: 1 = Professor 2 = Reader 3 = Lecturer We create two dummy variable s: X1 = 1 if rank = Professor 0 if otherwise X2 = 1 if rank = Reader 0 if otherw ise Note that we have created two dummy variables to represent a trichotomous va riable. If we create a third dummy variable X3 (score 1; if rank = Lecturer, and 0 otherwise), the parameters of the regression equation cannot be estimated uni quely. This is because if the score of any respondent on X1 and X2 is known, it would

always be possible to predict his score on X3. For example if a respondent has s core 0 on X1 (not Professor) and 0 on X2 (not Reader), then the respondent is ce rtainly a Lecturer (i.e., score 1 on X3). This represents a situation of perfect multicollinearity. Hence the general rule for creating dummy variables is: Numb er of dummy variables = Number of modalities minus 1. Statistical significance o f regression coefficients and Multiple R2 is determined in the same way as for i nterval scale explanatory variables. Q 5. a) Discuss what is meant by Quality control and quality improvement? ANS: Q uality is a much more complicated term than it appears. Dictionary definitions a re usually inadequate in helping a quality professional understand the concept. It seems that every quality expert defines quality is a somewhat different way. There are a variety of perspectives that can be taken in defining quality (e.g. customer's perspective, specification-based perspective). Are there commonalitie s among these definitions? Is any one definition "more correct" than the others? Is one quality expert "right" and the others "wrong"? Quality professionals con stantly debate this question. The editors of Quality Digest say that defining th e word "quality" is "no simple endeavor." They asked, in their December 1999 iss ue, for readers to send them their definitions of quality to be gathered and pos ted on Quality Digest Online. A modern definition of quality derives from Juran' s "fitness for intended use." This definition basically says that quality is "me eting or exceeding customer expectations." Deming states that the customer's def inition of quality is the only one that matters.

Quality assurance (QA) is a broad concept that focuses on the entire quality sys tem including suppliers and ultimate consumers of the product or service. It inc ludes all activities designed to produce products and services of appropriate qu ality. According to ASQ, QA includes all those planned or systematic actions nec essary to provide adequate confidence that a product or service will satisfy giv en needs. [Source: ASQ Statistics Division, Glossary & Tables for Statistical Qu ality Control, 1983]. Quality control (QC) has a narrower focus than quality ass urance. Quality control focuses on the process of producing the product or servi ce with the intent of eliminating problems that might result in defects. Accordi ng to ASQ, QC includes the operational techniques and the activities which susta in a quality of product or service that will satisfy given needs; also the use o f such techniques and activities. [Source: ASQ Statistics Division, Glossary & T ables for Statistical Quality Control, 1983]. Quality management is the totality of functions involved in the determination and achievement of quality (includes quality assurance and quality control). [Source: ASQ Statistics Division, Gloss ary & Tables for Statistical Quality Control, 1983]. External customers usually come to mind first. These are the people outside our organization who receive ou r goods and services. But even here there is some confusion. If we sell our prod ucts to a wholesaler, is he our only customer? How about the retailer and the ul timate consumer?

Internal customers are often forgotten or taken for granted. In an assembly line operation, the next station downstream from ours is an internal customer for ou r work. The Purchasing Dept. who receives a control report from the Accounting D ept. is the Accounting Dept's. internal customer. Second grade teachers are inte rnal customers for first grade teachers. Now, let's discuss meeting or exceeding customer expectations. Meeting customer expectations results in a satisfied cus tomer. But where is the competitive advantage in that? Have you eaten in a resta urant in the past month? If so, did you select a restaurant that you expected wo uld dissatisfy you? Probably not. You selected from a list of restaurants that y ou expected would satisfy you. So, satisfying customers merely keeps you in the game. Delighting customers (exceeding customer expectations) is where competitiv e advantage can be found. Restaurants that deliver larger than expected portions or lower than expected prices or better than expected service or better than ex pected ambiance (order winners) have a competitive advantage over restaurants th at simply satisfy customers (possess only order qualifiers). A number of scholar s in the quality field have developed lists of dimensions that define quality fo r a product and/or a service. David Garvin developed a list of 8 dimensions of p roduct quality. Evans and Lindsay provide a list of 8 dimensions of service qual ity. These are general lists and serve as good starting points. But, current res earch indicates that in terms of service quality, the dimensions are different f or different industries. So Evans and Lindsay's list may not apply equally well to, for example, health care services and food services. Parasuraman, et. al. de veloped a general list of 5 service dimensions that they tested in 4 types of se rvice industry, but the applicability of these dimensions in other industries is unknown.

Developing a list of quality dimensions for a specific service industry requires determining what is important to customers. Methodologies which are appropriate for this would include focus groups and surveys. The quality dimensions for hos pitals (KQCAH Scale) that are shown in the Lesson 1 Presentation were developed using focus groups conducted with recently discharged patients and their familie s, and with hospital personnel. Knowledge of these dimensions facilitates the me asurement of patient satisfaction by hospitals. Hospitals know that they are mea suring dimensions that are important to patients. b) What are the limitations of a quality control charts? ANS: The limitations of a quality control charts: The quality control chart is based on the research of Villefredo Pareto. He found t hat approximately 80 percent of all wealth of Italian cities he researched was h eld by only 20 percent of the families. The Pareto principle has been found to a pply in other areas, from economics to quality control. Pareto charts have sever al disadvantages, however. Easy to Make but Difficult to Troubleshoot percent of issues that cause the majority of problems in order to have the great est impact. However, one of the disadvantages of Pareto charts is that they prov ide no insight on the root causes. For example, a Pareto chart will demonstrate that half of all problems occur in shipping and receiving. Failure Modes Effect Analysis, Statistical Process Control charts, run charts and cause-and-effect ch arts are needed to determine the most basic reasons that the major issues identi fied by the Pareto chart are occurring.

Multiple Pareto Charts May Be Needed Pareto charts can show where the major prob lems are occurring. 6. a) Suggest a more suitable average in each of the followi ng cases: (i) Average size of ready-made garments. ANS: (i) Average size of read y-made garments: Arithmetic mean will be used because it is continuous and addit ive in nature. (ii) Average marks of a student. ANS: Average marks of a student. : Arithmetic mean will be used because it is the data are in the interval and t he distribution is symmetrical. b) State the nature of symmetry in the following cases: (i) When median is greater than mean? ANS: (i) When median is greater th an mean : the data are "skewed to the left", with a long tail of low scores pulling the mean down more than the median.

Assignment Set- 2 Q 1. What are the characteristics of a good measure of central tendency? ANS: Ch aracteristics of a Good Average (i) It should be rigidly defined. If an average is left to the estimation of an observer and if it is not a definite and fixed v alue it cannot be representative of a series. The bias of the investigator in su ch cases would considerably affect the value of the average. If the average is r igidly defined; this instability in its value would be no more, and it would alw ays be a definite figure, (ii) It should be based on all the observations of the series. If some of the items of the series are not taken into account in its Ca lculation the average cannot be said to be a representative one. As we shall see later on there are some averages which do not take into account all the values of a group and to this extent they are not satisfactory averages. (iii) It shoul d be capable of further algebraic treatment. If an average dose not possess this quality, its use is bound to be very limited. It will not be possible to calcul ate, say, the combined average of two or more series from their individual avera ges; further it will not be possible to study the average relationship of variou s parts of a variable if it is expressed as the sum of two or more variables. Ma ny other similar studies would not be possible if the average is not capable of further algebraic treatment. (iv) It should be easy to calculate and simple to f ollow. If the calculation of the average involves tedious mathematical processes it will not be readily understood and its use will be confined only to a limite d number of persons. It can never be a

popular average. As such, one of the qualities of a good average is that it shou ld not be too abstract or mathematical and there should be no difficulty in its calculation. Further, the properties of the average should be such that they can be easily understood by persons of ordinary intelligence. (v) It should not be affected by fluctuations of sampling. If two independent sample studies are made in any particular field, the averages thus obtained, should not materially diff er from each other. No doubt, when two separate enquires are made, there is boun d to be a difference, in the average values calculated but in some cases this di fference would be great while in others comparatively less. These averages in wh ich this difference, which is technically called "fluctuation of sampling" is le ss, are considered better than those in which its difference is more. One more thing to be remembered about averages is that the items whose average i s being calculated should form a homogenous group. It is absurd to talk about th e average of a man's height and his weight. If the data from which an average is being calculated are not homogeneous, misleading conclusions are likely to be d rawn. To find out the average production of cotton cloth per mill, if big and sm all mills are not separated the average would be unrepresentative. Similarly, to study wage level in cotton mill industry of India, separate averages should be calculated for the male and female workers. Again, adult workers should be separ ately studied from the juvenile group. Thus we see that as far as possible, the data from which an average is calculated should be a homogeneous lot. Homogeneit y can be achieved either by selecting only like items or by dividing the heterog eneous data into a number of homogeneous groups.

(b) What are the uses of averages? ANS: The use or application of a particular a verage depends upon the purpose of the investigation. Some of the cases of diffe rent averages are as follows: Arithmetic Mean Arithmetic mean is considered an d eal average. It is frequently used in all the aspects of life. It possesses many mathematical properties and due to this it is of immense utility in further sta tistical analysis. In economic analysis arithmetic mean is used extensively to c alculate average production, average wage, average cost, per capital income expo rts, imports, consumption, prices, etc. When different items of a series have di fferent relative importance, then weighted arithmetic mean is used. Geometric Me an Use of Geometric mean is important in a series having items of wide dispersio n. It is used in the construction of index number. The averages of proportions, percentages and compound rates are computed by geometric mean. The growth of pop ulation is measured in it as population increases in geometric progression. Harm onic Mean Harmonic mean is applied in the problems where small items must get mo re relative importance than the large ones. It is useful in cases where time, sp eed, values given in quantities, rate and prices are involved. But in practice, it has little applicability. Median and partition Values

Median and partition values are positional measures of central tendency. There a re mainly used in the qualitative cases like honestly, intelligence, ability, et c. In the distributions which are positively skewed, median is a more suitable a verage. These are also suitable for the problems of distribution of income, weal th, investment, etc. Mode Mode is also positional average. Its applicability of daily problems is increasing. Mode is used to calculate the 'modal size of a col lar', 'modal size of shore', or 'modal size of ready-made garments' etc. It is a lso used in the sciences of Biology, Meteorology, Business and Industry. Q 3. Wh at is test statistic? Why do we have to know the distribution of a test statisti c? ANS: A statistic is calculated from the sample. To begin with we assume that the hypothesis about the population parameter is true. We compare the value of t he statistic with the hypothetical value of the parameter. If the difference bet ween them is small, the hypothesis is accepted and if the difference between the m is large, the hypothesis is rejected. A statistic on which the decision can be based whether to accept or reject a hypothesis is called test statistic. It is important to remember that a test-statistic does not prove the hypothesis to be correct but if furnishes as evidence against the hypothesis. Some of the test st atistics to be discussed later are Z, t and Chi Square. Statistics is a diverse subject and thus the mathematics that are required depend on the kind of statist ics we are studying. A strong background in linear algebra is needed for most mu ltivariate statistics, but is not necessary for introductory statistics. A backg round in Calculus is useful no matter what branch of statistics is

being studied, but is not required for most introductory statistics classes.At a bare minimum the student should have a grasp of basic concepts taught in Algebr a and be comfortable with "moving things around" and solving for an unknown. Ref resher Course Most of the statistics here will derive from a few basic things th at the reader should become acquainted with. Absolute Value If the number is zero or positive, then the absolute value of the number is simp ly the same number. If the number is negative, then take away the negative sign to get the absolute value. Examples 42 = 42 -5 = 5 2.21 = 2.21 Factorials A factorial is a calculation that gets used a lot in probability. It is defined only for integers greater-than-or-equal-to zero as:

Examples In short, this means that: 0! = 1 1! = 1 1 2! = 2 1 3! = 3 2 1 4! = 4 3 2 1 5! = 5 4 3 2 1 =1 =1 =2 =6 = 24 = 120 6! = 6 5 4 3 2 1 = 720 Summation The summation (also known as a series) is used more than almost any other technique in statistics. It is a method of representi ng addition over lots of values without putting + after +. We represent summatio n using a big uppercase sigma: . Examples Very often in statistics we will sum a list of related variables:

Here we are adding all the x variables (which will hopefully all have values by the time we calculate this). The expression below the (i=0, in this case) repres ents the index variable and what its starting value is (i with a starting value of 0) while the number above the represents the number that the variable will in crement to (stepping by 1, so i = 0, 1, 2, 3, and then 4). Another example: Notice that we would get the same value by moving the 2 outside of the summation (perform the summation and then multiply by 2, rather than multiplying each com ponent of the summation by 2). Infinite series There is no reason, of course, that a series has to count on any determined, or even finite valueit can keep going without end. These series are called "infinite series" and sometimes they can even converge to a finite va lue, eventually becoming equal to that value as the number of items in your seri es approaches infinity (). Examples

This example is the famous geometric series. Note both that the series goes to ( infinity, that means it does not stop) and that it is only valid for certain val ues of the variable r. This means that if r is between the values of -1 and 1 (1 < r < 1) then the summation will get closer to (i.e., converge on) 1 / 1-r the further you take the series out. Linear Approximation Student-t Distribution at various critical values with varying degrees of freedom. v / 0.20 0.10 0.05 0.0 25 0.01 0.005 40 0.85070 1.30308 1.68385 2.02108 2.42326 2.70446 50 0.84887 1.29871 1.67591 2. 00856 2.40327 2.67779 60 0.84765 1.29582 1.67065 2.00030 2.39012 2.66028 70 0.84 679 1.29376 1.66691 1.99444 2.38081 2.64790 80 0.84614 1.29222 1.66412 1.99006 2 .37387 2.63869 90 0.84563 1.29103 1.66196 1.98667 2.36850 2.63157 100 0.84523 1. 29007 1.66023 1.98397 2.36422 2.62589 Let us s y th t you re looking t t ble of v lues, such s the one bove. You w nt to pproxim te (get good estim te of) the v lues t 63, but you do not h ve those v lues on your t ble. A good solution here is use line r pproxim ti on to get v lue which is prob bly close to the one th t you re lly w nt, witho ut h ving to go through ll of the trouble of c lcul ting the extr step in the t ble.

This is just the equ tion for line pplied to the t ble of d t . xi represents the d t point you w nt to know bout, w nt to know bout, nd know bout. is t he known d t point bene th the one you is the known d t point bove the one yo u w nt to uppose you re s mpling from popul tion with me n st nd rd devi tion he s mple size is n v lue nd the v ri nce of s mple me n ? ANS: If s mple me n is xb r , E(xb r)==1065 nd

h t re the expected V r(xb r) = (popul tion v ri nce)/n==100^2/100=100 OR E[Xb r] = = 1,065 V r(Xb r) = ^2/n = 500^2/100 = 2500

A ignment Set- 1 Ma ter of Bu ine Admini tration-MBA Seme ter MB0041-Financial and Management A ccounting Q.1 A ure you have ju t tarted a Mobile tore. You ell mobile et and currencie of Airtel, Vodaphone, Reliance and BSNL. Take five tran action a nd prepare a po ition tatement after every tran action. Did you firm earn profi t or incurred lo at the end? Make a mall comment on your financial po ition a t the end. ANS: We hall con ider five tran action and how how they are accoun ted for in the book of the bu ine . 1. Mr. Raje h bring R .100000 ca h a capital into hi bu ine . 2. He purcha e Mobile Set to hi hop R .10000 3. He buy currencie for ca h R .50000 4. He ell currencie worth R .30000 for R .40000 on credit to Arjun 5. He pay wage to ervant R .1000

Tran action 1: The bu ine receive capital in ca h. Capital i a liability and ca h i an a et to the bu ine . Liability A et Capital 100000 Ca h 100000

Tran action 2: Mobile Set i purcha ed for ca h. Thi ed a Under.

tran action can be reflect

Example: While depreciating an a et the practice of adopting traight line meth od or dimini hing balance method or any other method i a convention regarding t he principle and method to be cho en out of everal alternative . There are al together 32 accounting tandard i ued by ASB out of which, one tandard (AS8) ha been withdrawn pur uant to AS26 becoming mandatory.

ANS: IFRS are tandard , interpretation and framework for the preparation and pre entation of financial tatement . IFRS wa framed by International Accountin g Standard Board (IASB). The objective of financial tatement i to provide inf ormation about the financial po ition, performance and change in the financial po ition of an entity. It hould al o provide the current financial tatu of th e entity to all the u er of financial information. IFRS follow accrual ba i o f accounting and the financial tatement are prepared on the ba i that an enti ty will continue for the fore eeable future. IFRS help entitie acce global c apital market with ea e. Q.3 Choo e an Indian Company of your choice that ha adopted Balance Score Card and detail on it? ANS: The Balanced Score Card i a framework for integrating mea ure derived fro m trategy. While retaining financial mea ure of pa t performance, the Balanced S core Card introduce the driver of future financial performance. (Figure 1) The driver (cu tomer, internal bu ine proce , learning & growth per pective ) a re derived from the organization' trategy tran lated into objective and mea u re .

2b. Write hort note

of IFRS?

ANS: To bring uniformity in terminology, accounting concept , convention , and a umption , the In titute of Chartered Accountant of India (ICAI) e tabli hed Accounting Standard Board (ASB) in 1977. An Accounting Standard i a elected et of accounting policie or broad guideline .

Q.2a. Li t the accounting

tandard i

ued by ICAI?

The Balanced Score Card i more than a mea urement y tem it can be u ed a an o rganizing framework for their management proce e . The real power of the Balanc ed Score Card i when it i tran formed from a mea urement y tem to a managemen t y tem. It fill the void that exi t in mo t management y tem - the lack of a y tematic proce to implement and obtain feedback about trategy Q.4 What i a ca h budget? How it i u eful in managerial deci ion making? ANS: A proper control over ca h i very e ential. Ca h i an important componen t in any activity. The control become ine capable. If ca h i not properly managed o r if it i mi managed, the ultimate re ult would be di a trou . In many time an d in many bu ine ituation , bu ine failure are noticed due to the lacunae found in the ca h management. Hence ca h budgeting occupie a pivotal place in t he tudy of Financial Management.

The receipt of ca h are formatted a follow : 1. Opening balance of ca h in han d and ca h at bank The Management Accounting Per pective of the Bu ine Enterpri e The management accounting view of bu ine may be divided into two broad categorie : (1) ba ic feature and (2) ba ic a umption . Ba ic Feature The bu ine firm or enterpri e i an organizational tructure in which the ba ic activitie are departmentalized a line and taff. There are th ree primary line function : marketing, production, and finance. The organization i run or controlled by individual collectively called management. The taff o r advi ory function include accounting, per onnel, and purcha ing and receiving . The organization ha a communication or reporting y tem (e.g. budgeting) to c oordinate the interaction of the variou taff and line departmental function . The environment in which the organization operate include inve tor , upplier , government ( tate and federal), banker , accountant , lawyer , competitor , e tc.)

The organizational a pect of the bu ine firm i illu trated in Figure 2.1. Thi de criptive model how that there are different level of management. A commo nly u ed approach i to cla ify management into three level : Top management, m iddle management, and lower level management. The ignificance of a hierarchy of management i that deci ion making occur at three level . Ba ic A umption in M anagement Accounting

Ca h budgeting i the proce of foreca ting the expected receipt known a ca h inflow , and expected payment known a ca h outflow to meet the future obliga tion . The written tatement of receipt and payment i known a the ca h budge t. It i a cry tal ball which enable one to ob erve the future movement in ca h po ition. It i a mere foreca t of ca h po ition of an undertaking for a defin ite period of time. The period may be daily, weekly, monthly, quarterly, emi-an nually, or annually. The major two component of ca h budget would be foreca t f ir t the ca h receipt and then econd foreca ting the ca h di bur ement .

The framework of management accounting i ba ed on a number of implied a umptio n . Although no ingle work ha attempted to identify all of the a umption , . Five categorie of a umption will be pre ented: 1. Ba ic goal 2. Role of mana gement 3. Nature of Deci ion making 4. Role of the accounting department 5. Nature of accounting information Ba ic Goal A umption - The ba ic goal or objective the bu ine enterpri e may be multiple. For example, the goal may be to maxim ize net income. Other goal could be to maximize ale , ROI, or earning per ha re. Management accounting doe not require a pecific of type of goal. However, whatever form the goal take , management will at all time try to achieve a ati factory level of profit. A le than ati factory level of profit may portend a change in management. Role of Management A umption - The ucce of the bu in e depend primarily upon the kill and abilitie of managementwhich kill can vary widely among different manager . The bu ine i not completely at the merc y of market force . Management can through it action (deci ion ) influence and control event within limit . In order to achieve de ired re ult , management m ake u e of pecific planning and control concept and technique . Planning and control technique which management may u e include bu ine budgeting, co t volum e profit analy i , incremental analy i , flexible budgeting, egmental contributio n reporting, inventory model , and capital budgeting model . Management, in orde r to improve deci ion making and operating re ult , will evaluate performance thro ugh the u e of flexible budget and variance analy i . Deci ion making A umption A critical managerial function i deci ionmaking. Deci ion which management mu t make may be cla ified a marketing, production, and financial. Deci ion may al o be cla ified a trategic and tactical and long run and hort run. A primary objective of deci ion making i to achieve optimum utilization of the bu ine s c p it l or resources. Effective decision m king requires relev nt inform tion nd spe ci l n lysis of d t . Accounting Dep rtment Assumptions The ccounting dep rtme nt is prim ry

source of inform tion necess ry in m king decisions. The ccounting dep rtment is expected to provide inform tion to ll levels of m n gement. M n gement will con sider the ccounting dep rtment c p ble of providing d t useful in m king m rke ting, production, nd fin nci l decisions. N ture of Accounting Inform tion - In order for the ccounting dep rtment to m ke me ningful n lysis of d t , it is necess ry to distinguish between fixed nd v ri ble costs nd other types of cos ts th t re not import nt in the recording of business tr ns ctions. Some but no t ll of the inform tion needed by m n gement c n be provided from fin nci l st tements nd historic l ccounting records. In ddition to historic l d t , m n g ement will expect the m n gement ccount nt to provide other types of d t , such s estim tes, forec sts, future d t , nd st nd rds. E ch specific 18 CHAPTER TWO Management Accounting and Deci ion-Making managerial technique require an identifiable type of information. The accounting department will be expected to provide the information required by a pecific tool. In order for the accounting department to make many type of analy i , a eparation of co t into fixed and variable will be required. The management accountant need not provide informati on beyond the relevant range of activity.

ANS: Fixed Co t : The e are tho e co t which remain fixed up to certain range o f work capacity no matter how much product you produce within that capacity range. Like factory building rent. You pay the rent no matter that did you u e that buildin g for making the product or not. Variable Co t : The e are tho e co t which change with the change in the number of product unit you produce. Like Material , Labor etc

Mixed Co t/Semi Variable Co t : The e are tho e co t the part of which i fixed and ome part of the co t i variable. Fixed v . variable co t

Q.5 State the importance of differentiating between the fixed co t co t in managerial deci ion?

and variable

remain

Under tanding the proce of managing co t fir t require an under tanding of t wo general type of co t : fixed and variable. Fixed co t , or unk co t a the y are ometime called, are tho e that generally do not vary between payment int erval . Generally, the e co t cannot be altered on a hort-term ba i becau e o f contractual agreement or imply becau e it i impractical. Table 1: Example of fixed and variable co t Fixed monthly co t Rent........................................................ ...................... Yellow page ad.......................................... .................. Loan payment................................................. ............... Office managers s l ry........................................... ....... Doctors s l ry........................................................... ... Tot l fixed costs........................................................... . V ri ble costs per p tient visit Supplies (forms, covers, etc.)............... .......................... Electricity to oper te roller t ble................ .................. Collections costs (st mps, invoices, etc.)................... ..... $3 $1 $1 $1,100 $400 $500 $3,000 $5,000 $10,000 ne w y to determine your fixed costs is to consider the expenses you would conti nue to incur if you tempor rily closed your pr ctice nd no p tients were being tre ted. In this c se, your rent, c r le ses, yellow p ge d fees nd lo n p yme nts would still be due. They gener lly do not ch nge with incre ses or decre ses in business ctivity. It is import nt to note th t fixed costs re unv rying on ly within cert in r nge of business ctivity. For ex mple: if the pr ctice gro ws enough to require ddition l sp ce or ddition l employees, the fixed costs ssoci ted with rent or s l ries will ch nge s well. V ri ble costs re those th t ch nge s the level of business ctivity ch nges. Ex mples of the v ri ble co sts within chiropr ctic business would be supplies used for e ch p tient visit , collection fees p id to extern l billing gencies nd w ges for hourly, p rt-t ime employees. These costs re driven prim rily by the pr ctices business ctivit y, by number of p tients th t the pr ctice tre ts.

The closed pr ctice test we used bove to determine the fixed costs of pr ctice c n lso be used to determine the v ri ble costs. The v ri ble costs re those t h t would stop if the pr ctice were closed for month nd no p tients were tre ted t ll. Once you underst nd the difference between fixed nd v ri ble costs, it is import nt to know how to distinguish one from the other. For inst nce, co nsider pr ctice th t h s fixed costs of $10,000 nd v ri ble costs of $5 per p tient. (See T ble 1 for n ex mple of fixed nd v ri ble costs.) To cover its m onthly expenses, the pr ctice would h ve to e rn $10,000 in fees plus $5 per p t ient tre ted. If the pr ctice h d only one p tient visit per month, it would h v e to ch rge $10,005 for th t one tre tment in order to cover its fixed nd v ri ble costs! If the pr ctice h d 1,000 p tient visits during the month, its tot l costs would be $15,000 ($10,000 in fixed costs plus 1,000 p tient visits t $5 e ch). Therefore, this pr ctice would only h ve to ch rge $15 per p tient visit t o cover its fixed nd v ri ble costs.

ANS: There re two types of users( intern l nd extern l):- list of intern l users:1. employees 2. m n gement 3. sh reholders/owners. list of extern l users :those who h ve economic tr ns ctions like suppliers creditors b nkers fin nci l institutions

Q.6 Identify the users of

ccounting inform tion?

others like competitors government nd regul tory gencies uditors rese rchers nd c demic i ns represent tives of others interest like brokers ,underwriters etc potenti l sh reholders * M n gement - obt in fin nci l inform tion in w y th t best suits its needs, (i.e. w ys to cut costs, m ximize profit, etc.). * Bo rd of Directors - inform t ion to ssist in determin tion of current executive positions Extern l users: * IRS - requires the inform tion be presented in very specific m nner. * Stockholders nd potention l stockholders - inform tion th t will id in decision continue to hold the stock, sell the stock, or purch se the stock. * Bondholders, b nkers & other creditors - inform tion th t will id in decision of whether or not to purch se the bond. B nk needs inform tion th t will help i t determine the comp ny s bility to rep y the lo n nd interest. * Employee (c n lso be considered intern l) - inform tion th t will id in decision to contin ue working t the comp ny or look for employment elsewhere. * Supplier - inform tion to id in decision to continue or st rt supplying to the comp ny.

M ster of Business Administr tion - MBA Semester I MB0042 M n geri l Economics Q .1 Income el sticity of dem nd h s v rious pplic tions. Expl in e ch pplic tio n with the help of n ex mple. Ans :Income el sticity of dem nd m y be defined s the r tio or proportion te ch nge in the qu ntity dem nded of commodity to given proportion ch nge in the income. In short, it indic tes the extent to whi ch dem nd ch nges with v ri tion in consumers income. Thefollowing formul help s to me sure the income el sticity (Ey). Or Where Ey is income el sticity of dem nd D is ch nge in dem nd D is origin l dem nd Y is ch nge in income Y is origin l income Ex mple Origin l dem nd=400 units Origin l income= 4000 units New dem nd =700 units New income= 6000 units Ch nge in dem nd= 700-400= 300 units ch nge in income=6000-4000=2000

Hence Ey=300/2000*4000/400=1.5 Gener lly spe king Ey is positive. This is bec us e there is direct rel tionship between income nd dem nd, i.e. higher the inco me; higher would be the dem nd nd vice vers . On the b sis of the numeric l v l ue of the co-efficient, Ey is cl ssified s gre ter th n one, less th n one, equ l to one, equ l to zero nd neg tive. The concept of ey helps us in cl ssifying commodities in to different c tegories. 1. When Ey is positive, the commodity is norm l (used in d y-to-d y life) 2. Whe n Ey is neg tive, the commodity is inferior. ( for ex mple jow r, beedi etc) 3. When Ey is positive nd gre ter th n one, the commodity is luxury. 4. When Ey is positive but less th n one, the commodity is essenti l. 5. When Ey is zero, the commodity is neutr l. E.g. s lt, m tch box etc. Pr ctic l pplic tion of income el sticity of dem nd 1. Helps in determining the r te of growth of the firm. If the growth r te of the economy nd income growth of the people is re son ble fo rec sted, in th t c se it is possible predict expected incre se in the s les of firm nd vice vers .

2. Helps in the dem nd forec sting of firm. It c n be in estim ting future dem nd provided the r te of incre se in income nd Ey for the products re known. T hus, it helps in dem nd forec sting ctivities of firm. 3. Helps in production pl nning nd m rketing. The knowledge of Ey is essenti l for production pl nnin g, formul ting m rketing str tegy, deciding dvertising expenditures nd n ture of distribution ch nnel etc in the long run. 4. Helps in ensuring st bility in p roduction. Proper estim tion of different degrees of income el sticity of dem nd for different types of product helps in voiding over-production or under-produ ction of firm. One should know whether rise or f ll in income is perm nent or tempor ry. 5. Helps in estim ting construction of houses. The r te of growth in incomes of people lso helps in housing progr ms in country. Thus it helps l ot in m n geri l decisions of firm. Q.2 When is the opinion survey method used nd wh t is the effectiveness of the method. Ans :Survey of buyers intention or preference is one of the import nt methods of dem nd forec sting. It is lso c l led Opinion Survey Method . Under this method, consumer buyers are requested to ind icate their preference and

willingness about a particular product. They are about to reveal their future pu rchase plans with respect to specific items. They are expected to give answer to question like what items they intends to buy, in what quantity, why, where, wha t quality they expect, how much they are planning to spend etc. Generally, the f ield surveys are conducted by the marketing research departments of the company or hiring the services of outside research organization consisting of learned an d highly qualified professionals. The heart of the survey is questionnaire. It i s a comprehensive one covering almost all questions either directly or indirectl y in a most intelligent manner. It is prepared by an expert body who are special ist in the field or marketing. The questionnaire is distributed among the consum er either through mail or in person by the company. Consumers are requested to f urnish all relevant and correct information. The next step is to collect the que stionnaire from the consumers for the purpose of evaluation. The materials colle cted will be classified, edited and analyzed. If any bias prejudices, exaggerati ons, artificial or excess demand creation are found at the time of answering the y would be eliminated. The information so collected will now be consolidated and reviewed by the top executives with lot of experiences. It will be examined tho roughly. Inferences are drawn and conclusions are arrived at. Finally a report i s prepared and submitted to the management for taking final decisions. The succe ss of the survey method depends on many factors:

1. The nature of the question asked. 2. The ability of the surveyed. 3. The repr esentative of the sample 4. Nature of the product 5. Characteristics of the mark et 6. Consumer behavior 7. Techniques of analysis 8. Conclusion drawn etc. The m anagement should not entirely depend on the result of survey reports t project f uture demand. Consumer may not express their honest and real views and as such t hey may give only the broad trends in the market. In order to arrive, at right c onclusion, field surveys should be regularly checked and supervised. This method is simple and useful to the producers who produce goods in bulk. Here the burde n of forecasting is put on the customers. However this method is not much useful in estimating the future demand of the household as they run in a large numbers and also do not freely express their future demand requirements. It is expensiv e and so difficult. Preparation of questionnaire is not an easy task. At best it can be used for short term forecasting.

Q.3 Show how price is determined by the forces of demand and supply, by using fo rces of equilibrium. Ans The word equilibrium is derived from the Latin word aequ ilibrium which means equal balance. It means a state of even balance in which opp osing forces or tendencies neutralize each other. It is a position of rest chara cterized by absence of change. It is a state where there is complete agreement o f the economic plans of the various market participants so that no one has a ten dency to revise or alter his decision. In the words of professor Mehta: Equilibri um denotes in economics absence of change in movement. Market Equilibrium There a re two approaches to market equilibrium viz., partial equilibrium approach and t he general equilibrium approach. The partial equilibrium approach to pricing exp lains price determination of a single commodity keeping the prices of other comm odities constant. On the other hand, the general equilibrium approach explains t he mutual and simultaneous determination of the prices of all goods and factors. Thus it explains a multi market equilibrium position. Earlier to Marshall, ther e was a dispute among economists on whether the force of demand or the force of supply is more important in determining price. Marshall gave equal importance to both demand and supply in the determination of value or price. He compared supp ly and demand to a pair of scissors We might as reasonably dispute whether it is the upper or the under blade of a pair of scissors that cuts a piece of paper, as whether value is governed by utility or cost of production. Thus neither the upper blade nor the lower blade taken separately can

cut the paper; both have their importance in the process of cutting. Likewise ne ither supply alone, nor demand alone can determine the price of a commodity, bot h are equally important in the determination of price. But the relative importan ce of the two may vary depending upon the time under consideration. Thus, the de mand of all consumers and the supply of all firms together determine the price o f a commodity in the market. Equilibrium between demand and supply price: Equili brium between demand and supply price is obtained by the interaction of these tw o forces. Price is an independent variable. Demand and supply are dependent vari ables. They depend on price. Demand varies inversely with price, a rise in price causes a fall in demand and a fall in price causes a rise in demand. Thus the d emand curve will have a downward slope indicating the expansion of demand with a fall in price and contraction of demand with a rise in price. On the other hand supply varies directly with the changes in price, a rise in price causes a rise in supply and a fall in price causes a fall in supply. Thus the supply curve wi ll have an upward slope.At a point where these two curves intersect with each ot her the equilibrium price is established. At this price quantity demanded is equ al to the quantity demanded. This we can explain with the help of a table and a diagram Price in rs Demand in units 30 25 20 10 5 5 10 15 20 30 25 20 15 10 5 Su pply in units State of market D<S D<S D=S D>S D>S Pressure on price P decreases P decreases Neutral P increases P increases

. In the table at Rs.20 the quantity demanded is equal to the quantity supplied. S ince the price is agreeable to both the buyer and sellers, there will be no tend ency for it to change; this is called equilibrium price. Suppose the price falls to Rs.5 the buyer will demand 30 units while the seller will supply only 5 unit s. Excess of demand over supply pushes the price upward until it reaches the equ ilibrium position supply is equal to the demand. On the other hand if the price rises to Rs.30 the buyer will demand only 5 units while the sellers are ready to supply 25 units. Sellers compete with each other to sell more units of the comm odity. Excess of supply over demand pushes the price downward until it reaches t he equilibrium. This process will continue till the equilibrium price of Rs.20 i s reached. Thus the

interactions of demand and supply forces acting upon each other restore the equi librium position in the market. In the diagram DD is the demand curve, SS is the supply curve. Demand and supply are in equilibrium at point E where the two cur ves intersect each other. OQ is the equilibrium output. OP is the equilibrium pr ice. Suppose the price OP2 is higher than the equilibrium price OP. at this poin t price quantity demanded is P2D2. Thus D2S2 is the excess supply which the sell er wants to push into the market, competition among the sellers will bring down the price to the equilibrium level where the supply is equal to the demand. At p rice OP1, the buyers will demand P1D1 quantity while the sellers are ready to se ll P1S1. Demand exceeds supply. Excess demand for goods pushes up the price; thi s process will go until equilibrium is reached where supply becomes equal to dem and. Q.4 Distinguish between fixed cost and variable cost using an example. Ans: Fixed cost: These costs are incurred on fixed factors like land, building, equi pments, plants, superior types of labour, top management etc. fixed costs in the short run remains constant because the firm does not change the size of plant a nd the amount of the fixed factors employed. Fixed costs do not vary with either expansion or contraction in output. These cost are to be incurred by a firm eve n output is zero. Even if the firm close down its operation for some time tempor arily in the short run, but remains in business, these cost have to be borne by it. Hence, these costs are independent of output and are referred to as unavoida ble contractual cost. Prof. Marshall called fixed cost as supplementary costs. T hey include such items as

contractual rent payments, interest on capital borrowed, insurance premium, depr eciation and maintenance allowance, administrative expenses like manager alary or alary of the permanent taff, property and bu ine taxe , licen e fee , etc . They are called a over- head co t becau e the e co t are to incurred whethe r there i production or not. The e co t are to be di tributed on each unit of output produced by a firm. Hence, they are called a indirect co t . Variable C o t : The co t corre ponding to variable factor are de cribed a variable co t . The e co t are incurred on raw material , ordinary labour, tran port, power, fuel, water etc, which directly vary in the hort run . Variable co t are dire ctly and proportionately increa e or decrea e with the level of output. If a f irm hut down for ome time in the hort run; then it will not u e the variable factor of production and will not therefore incur any variable co t . Variabl e co t are incurred only when ome amount of output i produced. Total variable co t increa e with the level of increa e in the level of production and vice-v er a. Prof. Mar hall called variable co t a prime co t or direct co t becau e the volume of output produced by a firm depend directly upon them. It i clea r from the above de cription that a production co t con i t of both fixed a we ll a variable co t . The difference between the two i meaningful and relevant only in the hort run. In the long run all co t become variable becau e all fac tor of production become adju table and variable in the long run. However, the di tinction between the fixed and variable co t i very important in the hort b ecau e it influence the average co t behavior of the firm. In the hort run, e ven if a firm want to clo e down it operation but want to remain in the bu in e , it will have to incur fixed co t but it mu t cover at lea t it variable c o t .

Q.5 Di cu Marri Growth Maximization model ? Profit maximization i traditiona l objective of a firm. Sale maximization objective i explained by Prof. Boumal . On imilar line , Prof. Marri ha developed another alternative growth maximi zation model in recent year . It i a common factor to ob erve that each firm ai m at maximizing it growth rate a thi goal would an wer many of the objective of a firm. Marri point out that a firm ha to maximize it balanced growth r ate over a period of time. Marri a ume that the owner hip and control of the firm i in the hand of two group of people, i.e. owner and manager . He furthe r point out that both of them have two di tinctive goal . Manager have a utili ty function in which the amount of alary, tatu , po ition, power, pre tige and ecurity of job etc are the mo t import variable where a in ca e of are more c oncerned about the ize of output, volume of profit , market hare and ale ma ximization. Utility function of the manager and that the owner are expre ed in the following mannerUo= f [ ize of output, market hare, volume of profit, capit al, public e teem etc.] Um= f [ alarie , power, tatu , pre tige, job ecurity e tc.] In view of Marri the realization of the e two function would depend on th e ize of the firm. Larger the firm, greater would be the realization of the e f unction and vice-ver a. Size of the firm according to Marri depend on the amo unt of corporate capital which include total volume of the a et, inventory lev el, ca h re erve etc. He

further point out that the manager alway aim at maximizing the rate of growth of the firm rather than growth in ab olute ize of the firm . Generally manager like to tay in a grouping firm. Higher growth rate of the firm ati fy the pr omotional opportunity of manager and al o the hare holder a they get more di vidend . Q.6 Explain how fi cal policy i u ed to achieve economic tability. An : In ord er to achieve a table economic condition, fi cal policy ha to play a po itive and con tructive role both in developed and developing nation . The pecific rol e to be played by fi cal policy can be di cu ed a follow : To act a optimum a llocator of re ource : A mo t of the re ource are carce in their upply, care ful planning i needed in it allocation o a to achieve the et target . Ratio nal allocation would en ure fulfillment of variou objective . To act a a aver : 1. It hould follow a rational con umption policy reduce the MPC and rai e t he MPS. 2. Taxation policy ha to be modified to rai e the rate of old taxe , i ntroduce new additional taxe , and extend the tax-net . 3. Profit earning capa city of public ector unit are to be rai e ub tantially to mopup financial re ource . 4. The government hould borrow more money both in the country and out i de the country.

5. Higher the rate of intere t are to be offered for government bond and ecuri ty. To act a an inve tor: Mere mobilization of financial re ource i not an en d in it elf. It hould re ult in the creation of real re ource which are more i mportant in accelerating the growth proce . Rapid economic growth depend upon the volume of inve tment. Hence, fi cal policie have to be en uring higher volu me of inve tment in both private and public ector . To act a price tabilizer: price tability i of paramount of importance in an economy.Extreme level of b oth inflation and deflation would di rupt and di turb the normal and regular wor king of an economic y tem. Thi would come in the way of table and per i tent growth. Hence all mea ure are to be taken to check the e two dangerou ituatio n o a to create nece ary congenial atmo phere to prepare the background for rapid economic growth. To act a an economic tabilizer: Price tability would c reate the nece ary background for over all economic tability. Up wing and dow n wing in the level of economic activitie are to be avoided. If an economy i ubject to frequent fluctuation in the form of trade cycle, certainly, it would u ndermine and di turb the growth proce . In tability would come in the way of pe r i tent and con i tent growth in a country. Hence all mea ure to be taken to en ure economic tability. To act a an employment generator: Fi cal policy hould help in mobilizing more financial re ource , convert them in to inve tment and create more employment opportunity to ab orb the huge unemployed man power. To a ct a balancer: There mu t be proper balance between aggregate aving and

aggregate inve tment, demand and upply, income and output and expenditure, econ omic overhead capital and ocial overhead capital etc. Any ort of imbalance wou ld re ult in either urplu e or carcity in different ector of the economy le ading to fa t growth in ome ector followed by lagging of ome other ector . To act a growth promoter: The ba ic objective of any economic policy i to en u re higher economic growth rate . Thi i po ible when there i higher national aving , inve tment, production, employment and income. Hence, fi cal policy i to be de igned in uch a manner o a to promote higher growth in an economy. To act a in come redi tribute: Fi cal policy ha to minimize inequalitie and en ure di tributive ju tice in an economy. Thi i po ible when a rational taxatio n and public expenditure policy i adopted. More money i collected from richer ection of the ociety through variou imaginative taxation policie and a large r amount of money i to be pent in favor of poorer ection of the ociety. Thu , inequality i to be reduced to the minimum. To act a timulator of living t andard of people: the final objective i to rai e the level of living tandard of the people. Thi i po ible when there i higher output, income and employm ent leading to higher purcha ing power in the hand of common man. Hence, fi cal policy hould help in creating more wealth in the economy. If there i economic pro perity, then it i po ible to have a ati factory, contended and peaceful life. Thu , fi cal policy ha to play a major role in promoting economic growth in a country.

Ma ter of Bu ine Admini tration-MBA Seme ter I Subject Code MB0043 Subject Nam e Human Re ource Management Q.1 Write down the difference between Per onnel mana gement and Human Re ource management.[10 Mark ] An Per onnel management i work force centred, directed mainly at the organization employee ; uch a finding an d training them, arranging for them to be paid, explaining management expectatio n , ju tifying management action etc. While on the other hand, HRM i re ource c entered, directed mainly at management, in term of devolving the re pon ibility of HRM to line management, management development etc. Although indi putably a management function, per onnel management ha never totally identified with mana gement intere t , a it become ineffective when not able to under tand and arti culate the a piration and view of the workforce, ju t a ale repre entative have to under tand and articulate the a piration of the cu tomer . Per onnel M anagement i ba ically an operational function, concerned primarily with carryin g out the day-to day people management activitie . While on the other hand, HRM i trategic in nature, that i , being concerned with directly a i ting an orga nization to gain u tained competitive advantage.

IT indu try that wind of change began to blow. It wa largely the advent of the Information Technology era in India that brought with it the we tern management practice . MNC (multinational companie ) tarted up their operation in India. The FDI (foreign direct inve tment) went up teeply a the world aw the potenti al in the country human re ource . India became a preferred location for MNC pri marily from the USA, followed by other developed countrie . The gave birth to a new generation of management a well a HRM practice . New hiring method , new w ay of paying alarie , new employment term and mo t importantly increa ed focu on individual performance and outcome . There wa empha i on deliverable and linking individual and team performance to bu ine re ult and ucce . Given the highly educated workforce there wa a de-empha i in the role of the trade u nion . The era of the trade union dominance gave way to the new order of individ ual negotiated alarie and term and clearly performance linked a e ment y t em . Another tran formation that the Indian workplace witne ed wa the focu on ethic and ethical practice in doing bu ine . It wa only fair to expect that with the weak legal y tem, it needed the upport of the government policie an d the corporate policie to beat the corruption that exi ted.

HRM i more proactive than Per onnel Management. Wherea per onnel management i about the maintenance of per onnel and admini trative y tem , HRM i about the foreca ting of organizational need , the continual monitoring and adju tment of per onnel y tem to meet current and future requirement , and the management o f change. Q.2 Write a note on cope of HR in India. [10 Mark ] An It only in t he pa t 10-12 year with the immen e growth on account of the

Thi ha ignificantly contributed to India emerging a a preferred de tination for doing bu ine . All of thi ha yielded to give way to the birth of the profe ssional manager Professional managers today are a critical and essential part of the Indian corporate. The professional manager brought about a shift in the cult ure from a highly authoritarian approach of getting work done, to a more collabo rative and participative approach. The entrepreneurs who earlier operated in a s ecure, sheltered market and hardly face challenges, were challenged by the globa lization that swept in with the liberalization policies and measure brought in b y the Indian government late 1995 and onwards. Despite the challenges, the India n employee and his manager evolved. Together they stepped up to face the challen ge head-on and to win not only in India but also globally. The levers of (a) low cost, (b) highly skilled, and (c) English as the medium of education and it bei ng the corporatelanguage: were the key drivers that enabled the flow of global b usiness to India. There was exponential growth in employment both directly (jobs in the international and domestic companies) as well as indirectly (as support industries like transport, catering and ancillary industries). The simultaneous investment of the government in building the necessary infrastructure did its sh are of providing impetus towards creating more jobs for the people of the countr y. Hence, human relations movement in India has evolved very differently as comp ared to what we see in the developed economies of the USA and the UK. What is cu rrently acting as a limitation is the enhanced awareness on the need for researc h based HRM practices. While there is a lot of work happening in the Indian educ ation system to promote this, it is going to take a while before it can create a distinct body of knowledge that is referenceable. For now the industry relies o n emulating westerns HR practices and customizing on a as-needed basis for the I ndian corporation. For the rest the industry forums and consortiums like the

NASSCOM act as a hub bringing together organizations on a regular basis to discu ss challenges and share best practices and identify ways and means o overcome th em together. So far this has been successful and working to the advantage of the Indian corporate. Leading MNC research and consulting firms like Mercer and Hew itt too contribute to the industry through carrying out research and sharing rep orts on a regular basis. The approach however remains analytical and less prescr iptive. Q.3 Explain the critical steps in Human Resource Planning system .[10 Ma rks] Ans Human Resource planning can be defined as a process by which an organiz ation ensures thatit has the right number and kinds of people, at the right plac e, at the right time, capable ofeffectively and efficiently completing those tas ks that will help the organization achieve itsoverall objectives or in other wor ds HRP can be defined as planning for the future personnelneeds of an organizati on, taking into account both internal activities and factors in theexternal envi ronment. Need and Importance of HRP Human resource Planning translates the organization o bjectives and plans into the number of workers needed to meet these objectives. The need and importance of HRP is as follows: determining the future manpower re quirements and avoids problems like over staffing or understaffing in the organi zation. policies etc. that generates changes in the job content, skill requirements and number and types of personnel required.

staff becomes redundant, the HR manager has to attract and retain qualified and skilledpersonnel and also required to deal with issues like career development, successionplanning for which he takes the help of HRP. employment and promotional appointments to the candidates fro weaker sections, p hysically handicapped and socially and politically oppressed citizens. execution of personnel functions like recruitment, selection, transfers, promoti ons, layoffs, training and development and performance appraisal. turn will facilitate reduction in personal costs. assignments to develop managers and to ensure the organization has a steady supp ly of experienced and skilled employees. Factors affecting Human Resource Planning HRP is a dynamic and on going process. The process of updating is not very simpl e, since HRP is influenced by many factors, which are as follows: of staff needed. adopted by it. For e.g. the growth of a business calls for hiring of additional labour, while mergers will need a plan for layoffs.

carefully formulate the HR policies and so the HR manager has to evolve suitable mechanism to deal with uncertainties through career developments, successionplan ning, retirement schemes etc. -term plans are adopted. And this time span is bas ed on the degree of environmental uncertainties. factor influencing HRP. Accurate and timely human resource information system he lps in getting better quality personnel. ensure that suitable candidates should be appointed at the right kind of job. So these are some of the factors that aff ect the human resource planning. Limitations of Human Resource Planning s of an organization, as future is always uncertain. resources. approach and at the same time are conscious about the changing environment. turnover

Q.4 List and explain the sources of recruitment? [10 Marks] Ans : The sources of employees recruitment can be classified into two types,internal and external. Fi ling a job opening from within the firm has advantages of stimulating preparatio n for possible transfer of promotion, increasing the general level of morale, an d providing moreinformation about job candidates through analysis of work histor ies within the organisation.A job posting has number of advantages. From the vie w point of employee, it providesflexibility and greater control over career prog ress. The jobs posted on notice boards, group emails and publishing in internal news papers. Internal applications often restricted to certain employees, the gu idelines for companies include: -Good or better in most recent performance revie w -Dependable attendance record -Not under probationary sanction -Having been in present position for at least one year The personnel department acts as a clear ing house in screening applications that areunrealistic, preventing an excess nu mber of bids by a single employee and counsellingunsuccessful employees in their constant attempt to change their jobs. Similarly the firm may go to external so urces for recruitment of lower entry jobs, forexpansion, and positions whose spe cifications cannot be met by the present personnel. Thefollowing external resour ces are available for firms: a)Advertising: There is a trend toward more selecti ve recruitment in advertising. This canbe affected in at least two ways. First a dvertisements can be placed in media read only byparticular groups. Secondly, mo re information about the company, the job, and the jobspecification can be inclu ded in the ad to permit some self-screening.

b)Employment Agencies: Additional screening can be affected through the utilizat ion of employment agencies, both public and private. Today, in contrast to their formerunsavoury reputation, the public employment agencies in several states ar e well-regarded,particularly in the fields of unskilled semi-skilled and skilled operative jobs. In thetechnical and professional areas, however, the private ag encies tend to specialize in aparticular engineer. c)Employee Referrals: Friends and relatives of present employees are also a good source from which employees may be drawn. When the labour market is very tight, largeemployers frequently of fer their employees bonus or prizes for any referrals that are hiredand stay wit h the company for a specific length of time. Some companies maintain aregister o f former employees whose record was good to contact them when there are newjob o penings for which they are qualified. This method of recruitment, however, suffe rsfrom a serious defect that it encourages nepotism, i.e.Persons of ones communit y orcaste are employed, who may or may not be fit for the job. d)Schools, colleg es and professional institutions: These offer opportunities for recruiting their students. They will also have separate placement cell where the bio data and ot herparticulars of the students are available. The prospective employers can revi ewcredentials and interview candidates for management trainees or probationers. This is anexcellent source of potential employees for entry-level positions in t he organisations e)Labour Unions: Firms which closed or union shops must look to the union in their recruitment efforts. This has disadvantage of monopolistic w orkforce. f)Casual applicants: Unsolicited applications, both at the gate and th rough the mail, constitute a much-used source of personnel. These can be develop ed through

attractive employment office facilities, prompt and courteous reply to unsolicit ed letters. g)Professional organisations or recruiting firms or executive recrui ters:Maintain complete records about employed executives. These firms are looked upon as headhunters, raiders and pirates by organizations may employ executive s earch firms to helpthem find talent. These consulting firms recommend persons of high calibre formanagerial, marketing and production engineers po t . h)Indoctrin ation eminar for college are arranged to di cu the problem of companie and employee . Profe or are invited to take part of the e eminar . Vi it to pla nt arearranged o that profe or may be favourably impre ed. They may peak w ell of acompany and help it in getting the required per onnel. i)Uncon olidated application : for po ition in which large number of candidate are notavailabl e from other ource , the companie may gain keeping file of application receiv ed from candidate who make direct enquirie about the po ible vacancie on the irown, or may end un olicited application . Thi would be helpful to firm for futurevacancie . j)Nepoti m:the hiring of relative will be an inevitable compon ent of recruitment programme in family-owned firm , uch a policy doe not nece arily coincide withhiring on the ba i of merit, but intere t and loyalty to t he enterpri e are off ettingadvantage . k)Lea ing: to adju t to hort term fluct uation in per onnel need , the po ibility of lea ingper onnel by the hour or d ay hould be con idered. Thi principle ha been particularlywell developed in t he office admini tration field becau e they can avoid any obligation inpen ion , in urance and any other fringe benefit .

l)Voluntary Organi ation : Such a private club , ocial organi ation might al o provideemployee handicap , widowed or married women, old per on , retired han d etc. Inre pon e to adverti ement . m)Computer Data Bank : when a company de i re a particular type of employee , job pecification and requirement are fed t o computer , where they are matched again tdata tored in. Thi method i very u eful in identifying candidate for hard-t-fit po ition which call for unu ual combination of kill . Q.5 De cribe the grievance handling procedure. An Handl ing a grievance When dealing with a grievance: en ure you're familiar with the procedure and apply it correctly hold any grieva nce hearing in private without interruption where a grievance relate to the pe r on' line manager, en ure that the employee can rai e the grievance with omeo ne el e

li ten carefully to the per on' explanation of the problem and con ider whether there i a deeper i ue which might be the root cau e of the grievance

li ten to any conflicting point of view weigh up all evidence to ee whether th ere i an i ue you need to addre decide what action to take, trying to balanc e fairne to the per on without compromi ing the bu ine or other worker

inform all concerned partie

of your deci ion and the appeal proce

Deal with grievance en itively, particularly where they concern other worker . You may wi h to develop pecific procedure for very en itive matter involvin g unfair treatment eg, di crimination, bullying or hara ment. . Con ider al o h aving a eparate "whi tleblowing" procedure, o that worker are encouraged to r ai e any complaint about wrongdoing eg fraud, internally rather than di clo ing them out ide the bu ine . If a worker rai e a eparate grievance during a di ciplinary hearing, it' good practice to adjourn the hearing until the grievance i dealt with. By dealing with problem in a fair and rea onable manner, you're much le likely to lo e valued and killed taff through re ignation. It will al o help you ucce fully defend a con tructive di mi al claim. Q 6 what are o bjective of training? An Training objective are one of the mo t important par t of training program. While ome people think of training objective a a wa te of valuable time. The counterargument here i that re ource are alway limited and the training objective actually lead the de ign of training. It provide t he clear guideline and develop the training program in le time becau e objec tive focu pecifically on need . It help in adhering to a plan.

keep the proce

a confidential a

po ible

en ure you re olve any problem relating to policie , procedure e the grievance procedure highlight the e

or conduct wher

Training objective tell the trainee that what i expected out of him at the end of the training program. Training objective are of great ignificance from a nu mberof takeholderper pective ,

1.Trainer 2.Trainee 3.De igner 4.Evaluator Trainer The training objective i al o beneficial to trainer becau e it help the trainer to mea ure the progre of trainee and make the required adju tment . Al o, trainer come in a po ition to e tabli h a relation hip between objective and particular egment of training .

Trainee The training objective i beneficial to the trainee becau e it help in reducing the anxiety of the trainee up to ome extent. Not knowing anything or g oing to a place which i unknown create anxiety that can negatively affect lear ning. Therefore, it i important to keep the participant aware of the happening , rather than keeping it urpri e. Secondly, it help in increa e in concentration, which i the crucial factor to make the training ucce ful. The objective create an image of the training pro gram in trainee mind that actually help in gaining attention.

De igner The training objective i beneficial to the training de igner becau e i f the de igner i aware what i to be achieved in the end then hell buy the train ing package according to that only. The training de igner would then look for th e training method , training equipment , and training content accordingly to ach ieve tho e objective . Furthermore, planning alway help in dealing effectively in an unexpected ituation. Con ider an example; the objective of one training program i to deal effectively with cu tomer to increa e the ale . Since the o bjective i known, the de igner will de ign a training prog that will include wa y to improve the interper onal kill , uch a verbal and non verbal language, dealing in unexpected ituation i.e. when there i a defect in a product or when a cu tomer

Thirdly, if the goal i et to be challenging and motivating, then the likelihoo d of achieving tho e goal i much higher than the ituation in which no goal i et. Therefore, training objective help in increa ing the probability that th e participant will be ucce ful in training.

angry. Therefore, without any guidance, the iately. Evaluator It become ea y for the re of the trainee becau e the objective rainee . Training objective i an important participant .

training may not be de igned appropr training evaluator to mea ure the prog define the expected performance of t to tool to judge the performance of

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