(SET-I)

Time allowed : 3 Hours

M.M. : 100

General Instructions :

(iii) Marks are indicated against each question.

(iv) Answers should be brief and to the point.

PART-I

(PRINCIPLES AND FUNCTIONS OF MANAGEMENT)

1. Determination of objective.

2. Enumeration of the activities.

3. Grouping or classification of activities.

4. Assignment of tasks or activities to individuals.

5. Delegation of authority.

According to Vitels, " Supervision refers to direct and immediate guidance and control of subordinates in the performance of their tasks."

Co-operation between workers and management : There should be co-operation between the management and the workers. This requires change of mental attitude of the workers and the management towards each other. Taylor called it mental revolution. When this mental revolution takes place, workers and management turn their attention towards increasing profits. They do not quarrel about the distribution of profits.

2. Planning is a continuing activity.

3. Planning is an intellectual process.

Derivative plans are the subsidiary plans formulated for various departments, sections or activities in the light of the basic or master plan to help the organisation to achieve its objectives in a unified manner. for example, an entrepreneur decides to manufacture Refrigerators using Japanese technology. He must draw derivate plans for import of technology, location of plant, recruitment of staff, sales and distribution network etc.

Distinguish between 'delegation' and 'decentralisation of authority' on the basis of purpose, parties involved and withdrawal of authority. (3)

1. On the basis of Purpose : Delegation of authority is a means of getting things done through subordinates. In a work unit consisting of the head of the unit and his subordinates, work is assigned to the subordinates so as to reduce the burden of the head of the unit.

Decentralisation is a vital decision intended to prepare the organisation for handling major expansion of its activities. It is also necessary to cope with complexities of changes in the technological, competitive and other conditions in the environment.

2. Parties Involved : Delegation of authority is confined to a manager and his immediate subordinates in a work unit. Decentralisation of authority involves systematic delegation of authority at all levels and in all functions of the organisation. It is an extension of delegation to the lowest levels in the organisation. It indicates relationship between top management and various other departments and subdepartments in the enterprise.

3. Withdrawal of Authority : The delegated authority can be withdrawn by the delegater. Decentralisation is the general policy adopted by top management and is applicable to all department. Due to this reason withdrawal of authority is difficult.

Time Study : Time study may be defined as the art of observing time required to do a particular job. It relates to fixing the standard time for doing a job under given conditions. It helps to measure the efficiency of each worker by laying down standards. It creates time consciousness in workers. It helps in reduction of costs.

Motion Study : - Motion study is the science of eliminating wastefulness resulting from using unnecessary, ill-directed and inefficient motions. The aim of motion study is to find and perpetuate the schemes of least vast method of labour." It increases the efficiency of workers by reducing fatigue and manual labour. It leads to increase in production and productivity.

The various steps or elements of the staffing process are :

1. Manpower planning : The first step in the staffing process is assessing the present manpower inventory and determining the present and future manpower requirement of the organisation both in terms of quantity and quality.

2. Recruitment and Selection : The next step is recruitment and selection. The process of identification of different sources of personnel is known as recruitment. According to Edwin B. Flippo, "Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. "Selection is the process of choosing the best candidates to fill the specific Jobs of the organisation.

3. Placement : Placement involves putting the right man at the right Job after considering his ability and aptitude so as to get the maximum out of him.

4. Training : Training is an organised activity for increasing the knowledge and skills of people for a definite purpose. The purpose of training is to achieve a change in the behaviour of those trained and to enable them to do their jobs in a better way.

5. Induction or orientation : It is the process which is concerned with introducing or orienting a new employee to the organisation and its policies procedures and rules so that he can become familiar with the organisation and fellow employees at the earliest.

6. Performance appraisal : Performance appraisal or merit rating is the systematic evaluation of the individual with respect to his performance on the job and his potential for development. It is concerned with determining the differences among the employees working in the organisation.

7. Compensation : It is the remuneration paid to the workers both in cash and kind in exchange for their services or efforts put in the organisation. It is important that the workers are suitably rewarded in order to sustain as well as attract competent personnel.

8. Labour Relations : The next step is establishing healthy and cordial relations with the workers. It involves setting-up effective channels of communication.

(a) The control Process : Control process is made of three phases or elements which are a ways present :

(i) Determination of standard performance. Standard is a criterion against which actual performance is measured. Fixation of standard is the first step in the process of control. in other words before control can be exercised, things must be planned so that - planned performance can be compared with the actual performance. The standards for this purpose must be set in tangible units so that outcome is in clear cut results.

(ii) Comparison of actual and standard performance : This is the second step in the process of control. The comparison of actual with standard performance may reveal some differences between the two. These differences of discrepancies should be analysed according to the reasons and responsibility of this may be assigned to persons who should be made accountable for these durations from the standard performance. Where, however, standards are not tangible, measurement of variations between planned and actual performances may bot be so easy.

(iii) Corrective action : This is the last stage in the control process. The reasons for the difference between standard and actual results should be put into two categories - controllable and uncontrollable. Uncontrollable factors are those which are not within the control of management e.g., rise in market prices of raw material. Controllable reasons are those which arise because of the inefficiency of the staff. Remedial or corrective action should be related to these controllable factors so that recurrence is avoided in future. In brief remedial action is meant to improve performances in future.

Some of the important qualities of an effective leader are as under :

1. Intelligence : Leaders generally have somewhat higher level of intelligence than the average people. Intelligence is generally expressed in terms of mental ability to think scientifically, and analyse accurately the problems before a person.

2. Self-Confidence : A good leader must have self-confidence based on self-knowledge. This will enable him to win confidence of others.

3. Physical Features : Physical characteristics and level of maturity determine personality of an individual which is an important factor in determining success of leadership. Physique, health and appearance of an individual are important for leadership to some extent.

4. Good Judgement : A good leader must have wisdom to look ahead into the future and ability to make good judgement.

5. Balance : The leader should be rational and objective in his approach. He should be free from bias prejudice and pre-conceived notions. Only then he would be able to decide issues on their merit.

6. Communicating skill : The leader should be good at communicating ideas, feelings, decisions, orders, etc. He should be a good and effective speaker.

7. Ability to guide : The leader should help his subordinates to learn.

8. Sociability : The leader should show keen interest in his subordinates. He should try to meet them often and encourage them to discuss their problems and difficulties with him. He should be friendly, helpful and easily accessible to to his subordinates.

(FUNCTIONAL MANAGEMENT)

(i) Calculating the worth of a job.

(ii) Determining the competence of an employee.

(ii) Performance appraisal.

The term 'marketing management' refers to the planning, organising, directing and controlling of the persons and activities engaged in the marketing division of a business enterprise. In other words of Philip Kotler, " Marketing management is the analysis, planning, implementation and control of programmes designed to create build and maintain mutually benefical exchanges and relationships with target markets for the purpose of achieving organisational objectives. It relies on a disciplined analysis of the needs, wants, perceptions and preferences of target and intermediary markets as the basis of effective product design, pricing, communication and distribution."

Distinguish between 'training' and 'development' on the basis of level of persons involved and purpose.(3)

Difference between Training and Development :

(i) On the basis of level of persons : The word 'Training' is mostly used in relation to first level managers or non-managerial personnel, i.e. the operative employees, while the term 'development' is applied to the growth of managerial personnel, i.e., the second and third level managers.

(ii) Purpose : 'Training' is used to add to the skills and abilities of the workers, while 'development' involves improving the capacity and capability of the managerial personnel to take up more difficult and risky ventures with greater success besides increasing their skill and competency in their present Jobs.

What is capital budgeting ? Describe any two important features of capital budgeting. (3)

Capital budgeting refers to long-term planning for proposed capital expenditure and its financing. It involves an evaluation of several alternative capital projects for deciding which project will give the highest return on investment.

Feature : 1. It involves a high degree of risk.

2. It involves a relatively long-time period between the initial outlay and the anticipated return.

Scope of Capital Market :

Capital Market Instruments : There are two major categories of securities in the capital market - (a) marketable and (b) non - marketable securities. Marketable securities include government bonds, PSU (Public Sector Units) bonds, corporate securities - shares and debentures, and UTE Mutual Funds. These can be traded on different stock exchanges in the country.

The non-marketable securities consist of bank deposits, deposits with companies, loans and advances of bank and financial institutions, post office certificates and deposit. these are non-transferable and so are not traded on the stock exchange.

Promoters, Non-resident Indians, banks financial institutions, mutual funds and the public generally contribute towards marketable securities. The dealings in securities may be done through stock brokers, under writers, banks and mutual funds.

Enumerate the rights provided under the Consumer protection Act, 1986 for protection of consumers.

The rights of consumers under the consumer Protection Act, 1986 are as follows :

1. Right to safety; 2. Right to be informed; 3. Right to choose; 4. Right to he heard; 5. Right to seek redressal; 6. Right to consumer education.

Explain briefly how manpower requirements of an enterprise may be estimated. (5)

Estimating manpower requirements : We have to consider several factors which influence the preparation of forecasts and estimates of human resource requirements. These are :

1. The organisational plans for expansion of operations, products, services and facilities.

2. The type of organisational structure, extent of decentralisation, creation of staff units, and span of control.

3. Nature of technology to be adopted for production activities.

4. Schedule of normal retirement of employees, possibilities of some people leaving the organisation, etc.

To start with estimating the future requirements of personnel, we have to take into account the size of the existing personnel, their qualifications, skill and competence. This gives an idea as to how far the future requirements of manpower can be met from within the organisation and the extent to which it may be necessary to recruit people from outside.

In what different ways can the personnel records of an enterprise be used? (4)

Personnel records, according to Dale Yoder, are generally used to meet the following objectives :

(i) To supply information regarding personnel working in an organisation.

(ii) To have up-to-date information on leave, transfers, promotions, dismissals, strike or lockouts, mandays lost, expenditure incurred on employees benefits, case of indiscipline etc.

(iii) To help personnel managers to prepare training and development programmes.

(iv) To conduct research in the field of industrial relations.

(v) to review and revise pay scales, and

(vi) to provide information needed by government on rate of accidents, absenteeism, turnover etc.

"Financial planning does not serve any useful purpose." Comment.

It is wrong to say that financial planning does not serve any useful purpose. a well prepared financial plan will ensure the procurement of sufficient funds and their proper utilisation also.

Importance of Financial Planning :

1. It provides necessary liquidity by proper balancing inflow and outflow of funds.

2. Any surplus financial resources can be utilised for expansion of business activities.

3. Adequate cash is provided to meet day today and working capital requirements.

4.Proper financial planning helps to increase profitability by controlling financial costs.

5. It helps to take advantage of trading on equity.

6. It ensures stability and profitability of the business.

"Selection of T.V. as an advertising medium is always the best alternative." Comment. (5)

Television : Television is the latest and fastly growing media of advertising. It is the cheapest method of informing large masses of anything. It has an important advantage that it possesses visual as well as sound properties, i.e., pictorial presentation with voice. Its message directly goes to the mind of the consumers. It is very much like face-to-face contact. However, it is a costly method of advertising and can be adopted only by big producers and that too for goods of general consumption.

On the basis of above discussion we cannot say that "Selection of T.V. as an advertising medium is always the best alternative."

Explain briefly the factors that determine the amount of working capital required for an enterprise. (7)

Working Capital : Working capital means an excess of current assets over current liabilities. working capital management is, therefore, concerned with all aspects of the administration of both current assets and current liabilities.

The primary objective of working capital management is to ensure a satisfactory level of working capital at all times. A satisfactory level means that amount of working capital which is right and proper to meet all operating expenses of the business at any given time.

Working capital management aims at providing adequate current assets to meet current liabilities and to maintain a proper safety margin.

Factors required for Working Capital :

1. Nature of Business : The business units which do not keep very high stock of finished goods and which sell goods on cash basis can manage with less working capital. Public utility enterprises and service enterprises like transportation are the examples in this regard. But trading and manufacturing concerns which are required to keep huge stocks have to arrange for higher amount of working capital.

2. Size of Business : Generally, the size of the concern has a direct relation with the working capital requirements. big enterprises have to keep higher working capital for investment in current assets and for paying current liabilities.

3. Nature of Manufacturing Process : If the manufacturing process of a company takes longer period because of its complex and time - consuming nature, its working capital requirement will be higher because funds are tied up for long. As a matter or rule, the longer the manufacturing process, the longer will be the company's requirements of working capital.

What is marketing mix ? What factors are considered for fixing the price of a product under marketing management ? (8)

Marketing Mix : Marketing mix refers to the combination of marketing decisions which may stimulate sales. According to Prof. Neil Bordon, marketing mix refers to the apportionment of effort, the combination, the designing and the integration of the elements of marketing. The four 'P' which constitute marketing mix are - Product, Price, Place and Promotion. these are called marketing mix variables and are very closely related to each other.

Following factors are required before fixing the price of a product :

1. Target customers : How much they will buy at various prices;

2. Cost : The most important factor which the marketer should take into account is the 'cost of the goods'. As a rule, no businessman will like to sell his goods at a loss. So, selling price must cover the cost of production of product ;

3. Competition : Intense competition may indicate a low price and vice versa ;

4. Discount and Allowances : How much of the price could be allowed as incentives to dealers and customers in the form of discounts.

5. The profit margin to be maintained.