Assignment Set- 1
Master of Business Administration-MBA Semester 1
MB0038 – Management Process and Organization Behavior Q.1 Write a note on the managerial roles and skills? ANS: According to Mintzberg (1973), managerial roles are 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 managers often perform: a. Monitor – collecting information from organizations, both from inside and outside of the organization b. Disseminator – communicating information to organizational members c. Spokesperson – representing the organization to outsiders 2. Decisional roles: It involves decision making. Again, this role can be subdivided in to the following: a. Entrepreneur – initiating new ideas to improve organizational performance b. Disturbance handlers – taking corrective action to cope with adverse situation c. Resource allocators – allocating human, physical, and monetary resources d. Negotiator – negotiating with trade unions, or any other stakeholders
3. Inter`personal roles: This role involves activities with people working in the organization. This is supportive role for informational and decisional roles. Interpersonal roles can be categorized under three sub-headings: a. Figurehead – Ceremonial and symbolic role b. Leadership – leading organization in terms of recruiting, motivating etc. c. Liaison – liasoning with external bodies and public relations 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. All jobs require some specialized expertise, and many people develop their technical 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, understand and motivate other people (both individually and a group). This requires sensitivity towards others issues and concerns. People, who are proficient in technical 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 situation, and communicate own feelings to others in a positive and inspiring way. Conceptual Skill: This is an ability to critically analyze, diagnose a situation and forward a feasible solution. It requires creative thinking, generating options and choosing the best available option.
Q.2 Explain the social learning theory in details? ANS: One of the most influential learning theories, the Social Learning Theory (SLT), was formulated by Albert Bandura. It encompasses concepts of traditional learning theory and the operant 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 learning among individuals. Social Learning Theory has been useful in explaining how people can learn new things and develop new behaviors by observing other people. It is to assume, therefore, that Social Learning Theory is concerned on observational 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 learning explains the nature of children to learn behaviors by watching the behavior of the people around them, and eventually, imitating them. With the ―Bobo Doll‖ experiment(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 play 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:
which is in a form of internal reward or a better feeling after performing the behavior (e. A Verbal Instruction Model. satisfaction. c. Bandura stated that not only external reinforcement or factors can affect learning and behavior. b. etc. nor learning can necessarily result to behavioral changes.
B.In this concept. radio. which includes an actual person performing a behavior. A Symbolic Model. confidence. books. The state of mind (mental states) is crucial to learning. sense of accomplishment. online media and other media sources. The modeling process includes the following steps in order for us to determine whether social learning is successful or not:
.) 3. Modeling Process The Modeling Process developed by Bandura helps us understand that not all observed behaviors could be learned effectively. There is also what he called intrinsic reinforcement. A Live Model. which involves telling of details and descriptions of a behavior. television. Learning does not mean that there will be a change in the behavior of an individual. 2. which includes either a real or fictional character demonstrating the behavior via movies.g.a.
and you might need to get back to observing the model again since you were not able to store information about the behavior. then you should eliminate anything that catches your attention other than him. this step requires you to demonstrate the behavior. the more interesting the model is. Without it. learning of the behavior would not be established. and punished by displaying it inappropriately
. You can be rewarded by demonstrating the behavior properly. Step 4: Motivation Feeling motivated to repeat the behavior is what you need in order to keep on performing it.
Step 2: Retention Retention of the newly learned behavior is necessary. practice of the behavior by repeatedly doing it is important for improvement. This is where reinforcement and punishment come in.
Step 3: Reproduction When you are successful in paying attention and retaining relevant information. the more likely you are to pay full attention to him and learn.Step 1: Attention Social Cognitive Theory implies that you must pay attention for you to learn. Also. In this phase. If you want to learn from the behavior of the model (the person that demonstrates the behavior).
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.3 Explain the Big 5 model of personality?
Ans : The big five model of personality is designed to bring out behaviors an individual expresses in his dealings with people as well as in their response to changes in circumstances as well as the environment. According to Cattell. these five factors of personality are used to come up with a description of the human personality. 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. Tisha‘s high score shows that she will be more straightforward and more likely see the simple aspects of complex situations.Q. (2007). Traits linked to individuals who are open to experience include intellectual curiosity.
. such people are very creative and they are very likely to be more accommodating to beliefs considered unconventional. Generally.P et al. H. I explain Tisha‘s findings as well as look at how the predictions could be used to come up with a prediction of her success as a manager. sensitivity to beauty as well as responsiveness to art. In this text.E.
(2007) notes that such
. Cattell.P et al. Tisha would be more likely to strive to ensure that organizational goals and objectives are met.E.P et al.
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. Tisha‘s high score in extraversion indicates that in the work setting as a manager. Cattell. H. Tisha‘s very high performance in Conscientiousness shows that she is organized and very attentive to detail. She will also dominate board and other meetings and have a high chance of pushing her proposals and suggestions forward. (2007) notes that extraverts enjoy other peoples company and tend to be very active in group efforts.
Conscientiousness This factor shows an individuals ability and drive to achieve goals and strive for achievement. H.E. Grucza et al. (2007) notes that individuals who score highly in conscientiousness have a good impulse control and tend to be goal oriented. It also indicates that an individual has self discipline and prefers planned behavior as opposed to spontaneous behavior.
Agreeableness This factor is characterized by compassion and cooperation towards others as opposed to antagonism tendencies. she would tend to encourage team work. In an organizational setting.
individuals are easy to get along with and are more likely to be very accommodating to the views of others. Tisha‘s moderately high score on this factor shows that though she will be accommodate others view. Through the perceptual process.
A number of factors operate to shape and sometimes distort perception These factors can reside: i) In the perceiver
. In most cases. Individuals scoring low on neuroticism will experience bouts of mood swings triggered by frustrations by minor issues at the workplace (Grucza et al. 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 negative emotions like anxiety. this characteristic is linked to emotional instability.4 What are the different factors influencing perception?
Ans : Perception is our sensory experience of the world around us and involves both the recognition of environmental stimuli and action in response to these stimuli. Tisha‘s 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. we gain information about properties and elements of the environment that are critical to our survival.
The major characteristics of the perceiver influencing perception are: a) Attitudes: The perciver's attitudes affect perception. X may feel that women are not capable of holding their own in tough negotiations. For example. Mr. Characteristics of the Perceiver: Several characteristics of the perceiver can affect perception. When in a positive mood. most of whom are male. We think differently when we are happy than we do when we are depressed. we tend to evaluate others unfavourably. X is interviewing candidates for a very important position in his organization . we remember information that is consistent with our mood state better than information that is inconsistent with our mood state. This attitude with doubtless affect his perceptions of the female candidates he interviews. we form more positive impressions of other. b) Moods: Moods can have a strong influence on the way we perceive someone. 1. In addition. When in a negative mood. regardless of the intention of the subordinates. Personal insecurity can be translated into the perception that others are out to "get my job".
.ii) In the Object or target being perceived or iii) In the context of the situation in which the perception is made. For example.a position that requires negotiating contracts with suppliers. a boss who is insecure perceives a sub ordinate's efforts to do an outstanding job as a threat to his or her own position. that interpretation is heavily influenced by personal characteristics of the individual perceiver. Mr. When an individual looks at a target and attempts to interpret what he or she stands for. c) Motives: Unsatisfied needs or motives stimulate individuals and may exert a strong influence on their perceptions. in an organizational context.
Cognitive complexity allows a person to perceive multiple characteristics of another person rather than attending to just a few traits. weight. such as height.Concept: Another factor that can affect social perception is the perceivers self-concept. The research findings of the study conducted by Sheldon S Zalking and Timothy W Costello on some specific characteristics of the perceiver reveal i) Knowing oneself makes it easier to see others accurately. what one person notices in a situation can differ from what other perceive. Some people have a tendency to perceive physical traits. Because our individual interests differ considerably. iii) People who accept themselves are more likely to be able to see favourable aspects of other people. In contrast. Greater understanding of self allows us to have more accurate perceptions of others. more readily.
e) Interest: The focus of our attention appears to be influenced by our interests. the supervisor who has just been reprimanded by his boss for coming late is more likely to notice his colleagues coming late tomorrow than he did last week. f) Cognitive structure: Cognitive structure. ii) One's own characteristics affect the characteristics one is likely to see in other. An individual with a positive self-concept tends to notice positive attributes in another person.d) Self . and appearance. also affects perception. For example. iv) Accuracy in perceiving others is not a single skill. g) Expectations: Finally. expectations can distort your perceptions in that you will see what you expect to see. an individual's pattern of thinking. These four characteristics greatly influence how a person perceives other int he
. a negative self-concept can lead a perceiver to pick out negative traits in another person.
Motions. size and other attributes of a target shape the way we see it. Verbal Communication from targets also affects our perception of them. In this situation. proposed by Robbins (2003) divides the work force into different groups depending on the era or period in which they have entered
2) Characteristics of the Target : Characteristics in the target that is being observed can affect what is perceived. Physical appearance pals a big role in our perception of others. and that it may not reflect the individual's disposition.
3) Characteristics of the Situation: The situation in which the interaction between the perceiver and the target takes place. The strength of the situational cues also affects social perception. Nonverbal communication conveys a great deal of information about the target. The perceiver deciphers eye contact. and posture all in a attempt to form an impression of the target. facial expressions.5 Write a note on contemporary work cohort? ANS: Contemporary Work Cohort Contemporary Work Cohort. sound. we assume that + i. body movements.environmental situation. Some situations provide strong cues as to appropriate behaviour. has an influence on the perceiver's impression of the target.e individual's behaviours can be accounted for by the situation.
Q. Extremely attractive or unattractive individuals are more likely to be noticed in a group than ordinary looking individuals.
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.Veterans—Workers who entered the workforce from the early 1940s through the early 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 be loyal to their employer 4. Terminal values: Comfortable life and family security
2.Boomers—Employees who entered the workforce during the 1960s through the mid1980s belonged to this category and their value orientations were:
a. Influenced heavily by John F. Kennedy, the civil rights and feminist movements, the Beatles, the Vietnam War, and baby boom competition. b. Distrusted authority, but gave a high emphasis on achievement and material success. c. Organizations who employed them were vehicles for their careers. d. Terminal values: sense of accomplishment and social recognition.
3.Xers—began to enter the workforce from the mid1980s.
They cherished the following values: a. Shaped by globalization, two career parents, MTV, AIDS, and computers. b. Value flexibility, life options, and achievement of job satisfaction. c. Family and relationships were important and enjoyed team oriented work. d. Less willing to make personal sacrifices for employers than previous generations. e. Terminal values: true friendship, happiness, and pleasure
4.Ne xte rs—most recent entrants into the workforce. a. Grew up in prosperous times, 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 hopping. 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 issues in motivation? Discuss Ans : Some of the special issues in motivation are discussed below. Motivating Professionals The professional employees likely to seek more intrinsic satisfaction from their work than blue-collar employees. They generally have strong and long term commitments to their field of expertise are perhaps more loyal to their profession than to their employer. They need to regularly 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 problems and find solutions.
Managerial Implications: Provide them with ongoing challenging projects. Give them autonomy to follow their interests and allow them to structure their work. Reward them with educational opportunities. Also reward them with recognition.
Motivating temporary Workers: Temporary workers may be motivated if: They are provided with permanent job opportunity The opportunity for training is provided to them Provide equitable pay. Motivating Low Skilled Service Workers: One of the most challenging managerial tasks in to motivate low skilled workers who are involved in repetitive physical work, where higher education and skills are not required. For this category of people, flexible work schedules and higher pay package may be proved effective motivational factors. Motivating Low-Skilled Service Workers involves: Recruit widely. Increase pay and benefits. Make jobs more appealing.
. Mechanize the most distasteful aspects of the job.Motivating People Doing Highly Repetitive Tasks: Recruit and select employees that fit the job. Create a pleasant work environment.
They are: the James-Lange theory in the 1920's. Example: You're late leaving work. four major explanations for the complex mental and physical experiences that we call "feelings" have been put forward. which plays a large role in emotion. and you experience the resulting emotion only after you interpret the physical response. is activated before any direct involvement of the cerebral cortex (where memory.2 Q. The theorists behind the dissenting views do agree on one thing.
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 most recently the Lazarus theory. This is evidenced by the fact that the amygdala (part of the limbic system of the brain). Your heart pounds and your hands start to shake.Assignment Set. you hear footsteps behind you in the dark.1 Explain the theories of emotion? ANS: Psychologists have proposed a number of theories about the origins and function of emotions. In the history of emotion theory. awareness. the Schacter-Singer theory in the 1960's. You interpret these physical responses as fear. and as you head across the parking lot to your car.
. the Cannon-Bard theory in the 1930's. however: emotion has a biological basis. and conscious "thinking" take place). developed in the 1980's and ‗90's.
Example: You're taking the last bus of the night. and that neither one causes the other.
The Schacter-Singer Theory The Schachter-Singer theory takes a more cognitive approach to the issue. A single man gets on and sits in the row behind you. so you feel afraid. Schacter and Singer believe that an event causes physiological arousal.
. but that you must then identify a reason for the arousal before you label the emotion. suggests that the given stimulus evokes both a physiological and an emotional response simultaneously. When your stop comes around. and you feel afraid.
Example: You're home alone and hear creaking in the hallway outside your room. on the other hand. You begin to tremble and sweat. He's walking behind you. You know that there have been several muggings in your city over the past few weeks.The Cannon-Bard Theory The Cannon-Bard theory. he also gets off the bus. You feel tingles down your spine with a rush of adrenaline. and you're the only passenger.
While each of these theories is based in research. when two young men in hooded sweatshirts enter the store in a hurry. seat-of-thepants governing--all reveal the inelegance and awkwardness of this way of life. so you get scared. What we do know is that feelings are a powerful force to be reckoned with. and should never be belittled.The Lazarus Theory The Lazarus theory builds on the Schacter-Singer theory. an emotion and physiological response follow. taking it to another level. Example: You're buying a few last-minute items at the gas station. and based on the result of that appraisal. putting out fires. It proposes that when an event occurs. it is often not pretty. or what determines our own individual experiences of them. Planning even makes decisions easier by providing guidelines and goals for
. with their hands in their jacket pockets. there is no absolute proof as yet how emotions arise in our bodies and minds. Q. a cognitive appraisal is made (either consciously or subconsciously).2 Discuss the techniques of decision making in groups? ANS : Planning for Decision Making While decision making without planning is fairly common. and your feel like you might throw up. The terms used to describe it--crisis management. You think perhaps they're here to rob the place. Planning allows decisions to be made in a much more comfortable and intelligent way.
2. Managers now steer the organization. rather than being steered by external forces. As the proverb says. so that you can discover whether or not you are achieving or heading toward your goals. Planning provides a standard of measurement. individuals now steer their lives. The vision which will shape the decisions is set apart from surrounding events.
. "Management by firefighting" is replaced by a conscious and directed series of choices. When you are faced with a decision. We might even say that planning is a type of decision simplification technique (see the discussion of these techniques below). Planning allows the establishment of independent goals. Decision makers will find four major benefits to planning: 1. When a crisis arises. too. If you don't know where you're going. Decisions made under the guidance of planning can work together in a coherent way to advance company or individual goals. Sometimes the difference between planning and not planning is described as "proactive" (taking control of the situation) versus "reactive" (responding to stimuli). A plan provides something to measure against. Planning is useful in emergency situations. you can consult your plan and determine which decision will help advance your plan best. Planning converts values to action. Decisions are not made only as reactions to external stimuli.the decision. crises are dealt with haphazardly and decisions are made which may ultimately be in conflict with each other. 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. it doesn't matter which way you go. 3.
Or. Decision Levels We all recognize that some decisions are more important than others. school) would be strategic. effort. you can plan to buy it over several years by making payments. By planning you can thus accomplish things that might otherwise look impossible. Whether to produce a low priced product and gain market share or produce a high priced product for a niche market would be a strategic decision.
. what to learn. As a means of understanding the significance of a decision so that we can know how much time and resources to spend on it. Their best use can be made when a plan governs their use. Strategic decisions are the highest level. or what methods to use to gain knowledge (travel. work. long term goals.4. you might combine this plan with the plan to buy a smaller house and add rooms later as they could be afforded. Here a decision concerns general direction. whether in their immediate impact or long term significance. Rather than having to decide between buying the item right now with all cash or never having it. For example: Decisions about what to do with your life. These decisions are the least structured and most imaginative. philosophies and values. they are the most risky and of the most uncertain outcome. Budgets. time. partly because they reach so far into the future and partly because they are of such importance. manpower--all are limited. Strategic. A simple example would be planning to buy a house or a car. three levels of decision have been identified: 1. Planning allows limited resources to be committed in an orderly way.
a tactical decision might be to build a new factory to produce them at a low manufacturing cost. They are often made with little thought and are structured. Or if your company decided to produce a low priced product. the operational decision is highly structured: "Whenever books are needed. a tactical decision would include where to go to school and what books to read. your direction or your goals. Their impact is immediate. responding only to the forces around you and never getting control of your life. pre-made. You might have a personal policy of shopping for books at a certain store or two. They tend to be medium range.2. The consequences of a bad operational decision will be minimal. As a result you will lead a reactive life. For example: If your tactical decision is to read some books on forestry. used to support tactical decisions. If you discover that nearly all of your thinking and decision making is taking place at the operational level. and usually low cost. Operational decisions can be preprogrammed. For example: If your strategic decision were to become a forest ranger. short term. 3. look at Joe's Books. then you are probably not doing enough strategic thinking and planning. your operational decision would involve where to shop for the books. with moderate consequences. short range. Issues should be examined and decisions should be made at all of these levels. Tactical decisions support strategic decisions. or set out clearly in policy manuals. although a series of bad or sloppy operational decisions can cause harm." An important comment should be made here. medium significance. Thus. Operational. These are every day decisions. Tactical. Some Techniques for Decision Making
those involving yes/no. what are the pros and 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 expensive maintenance
. They share the assumption that circumspect analysis is the key to making good decisions. For example. Many decisions are made with too little information and too little thought.This is a list of easy. Think about it for a moment: how many people do you know who commonly spend even five minutes structuring and analyzing a decision? Note how these techniques provide a visible. or two-possibility decisions. structured. 1. graphic representation of alternative features or points involved in a decision. so that the decision maker can consider them in a thoughtful and coherent way. T-Chart. Drawing up such a chart insures that both the positive and negative aspects of each direction or decision will be taken into account. orderly set of factors involved in a decision. In one form. either/or. The first three techniques are especially for whether-type decisions. it can be a list of positive and negative attributes surrounding a particular choice. A T-Chart is an orderly. in a non-deliberate way. practical techniques that can be applied to simple or complex decisions.
and interesting. Edward de Bono refines the T-Chart idea into a three part structure. and finally all the interesting points--consequences. for example). 2. Here you first list all the plus or good points of the idea. with the good points or arguments or effects listed for each. which he calls PMI for plus. and a list of negatives for each choice can be added as well. PMI. then all the minus or bad points. two possible choices are listed. minus. 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. 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 category. more than two choices can be included. Suppose your company is trying to decide whether to create its own advertising or hire an agency.
. areas of curiosity or uncertainty.
Use Outside Agency professional work expertise of ideas
Write Ads In-House faster product better knowledge of product
use same ad in flyers
To fill out this latter form.In another form.
4. In the example below. traveling by train is rated at 25 out of 30 points for the "comfort" criterion. and as often as others will tell you. The Buriden's Ass method simply focuses on the drawbacks. That is. (From an old fable of an ass placed between two equally nice bales of hay. 1 to 100. you list the criteria you want your decision to meet and assign points to each criterion based on its relative importance in the decision. Considering 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 your decision making. Then. or any other range that makes sense to you. and so it starved to death from indecision.) The method is simply to list all the negative points or drawbacks about each decision. we become blinded to any drawbacks. everyone does that all the time. when two or more alternatives seem very desirable. 3. With this technique." this is a very powerful but much neglected technique. Only after they make a decision do they hunt around for reasons to support it. of course. The ass couldn't decide which bale to turn to because they were both so attractive. This method of decision making is used when two or more equally attractive alternatives are faced. Buriden's Ass. Measured Criteria. while the plane is ranked a little less comfortable. at 21 out of
.As simple as this technique seems to be. For points you can use a scale of 1 to 10. many people make a decision or form an opinion before they consider the evidence in an orderly way. each alternative is given a certain number of points according to how fully it meets the criterion. "Well. but in actual practice. Most people believe they list the pluses and minuses of a decision before making it.
The action reaction interplay between the conflicting parties result in consequences. Accommodating or Compromising.30. Avoiding. These cause or create opportunities for conflict to rise. The behavior stage includes the statements. actions and reactions made by the conflicting parties.3 Elaborate the different stages in process of conflict? ANS: The conflict process can be seen as comprising five stages:
(1) Potential opposition or incompatibility. (3) Intentions -Intentions are decisions to act in a given way intentions intervene between people‘s perception and emotions and their overt behavior. that would be the plane. all the points for each alternative are added up and the alternative with the highest total points is the one chosen. Collaborating. or dysfunctional in that it hinders group performance. 5. In the example below. These outcomes may be functional in that the conflict results in an improvement in the group‘s performance. (5) Outcome.The first step in the conflict process is the presence on conditions that create opportunities for conflict to rise. (4) Behavior -This is a stage where conflict becomes visible. This is a slightly more sophisticated version of the measured criteria technique. (2) Cognition and personalization -conflict must be perceived by the parties to it whether or not conflict exists is a perception issue. These intentions are Competing. Q. Here a table is set up with each criterion given a weight depending on its importance in the decision and with each alternative given a ranking for that criterion. Once all the alternatives have been assigned their due points for each criterion.
. Decision Matrix or Weighted Decision Table.
They are Alarm. The funny thing about this stage is that initially our body and immune system are becoming more resistance to stress and disease. In general. It was psychologist Hans Selye who discovered that prolonged and excessive stress can lead to infection. illness. He then named this condition General Adaptation Syndrome (GAS). Resistance and Exhaustion. Let's talk a bit about each stage. Stage Two: Resistance Now. However.4 Write a note on GAS ( General Adaptation Syndrome)? ANS: GAS or General Adaptation Syndrome is a very common medical problem that can have very serious repercussions if left unattended. this stage requires abnormally high levels of emotional and physical resources. Stage One: Alarm Alarm is essentially the initiation of the "fight of flight" response which prepares the body for life-threatening situations. if we're under a constant state of alarm. If things do not change for the better then the next stage of the GAS process is inevitable. we are in essence living in constant state of stress. there are three stages of GAS. At this point we start becoming used to these stress levels. disease and death.
. Normal body activities such as the digestive and immune functions are blunted or nearly shut down in order to supply resources to more immediate muscular and emotional needs.Q.
. By the way. so they can ultimately P. they must learn how to F. remember to take some of your own medicine once in a while and listen to stress reduction hypnosis CDs. Parts of the body literally start to break down and we become very unwell. your contribution as a stress management consultant is far more important than most people realize.O. Unmanaged stress is not just an 'inconvenience'.S. and B. To conclude this first section.A. please understand that Hans Selye and others experts are convinced that out-of-control stress negatively influences a person's entire organism.. remember to take some of your own medicine once in a while and listen to stress reduction hypnosis CDs. in order to help a client with G.P. It is much easier to convince a client of the benefits of successful stress management when you are 100% congruent because of satisfying experience. these authorities believe that if left untreated. It is much easier to convince a client of the benefits of successful stress management when you are 100% congruent because of satisfying experience.R. The point here is that as a hypnotist.Stage Three: Exhaustion Eventually reality kicks in and our bodies are unable to maintain high levels of stress resistance.T. let's look at a case history that shows how to help a client suffering from severe GAS. Furthermore. It is a health threaten By the way. run away stress can result in disease and eventual death.O. When You're Client Has GAS --The Case of Bob First of all.
U.O. and B. When a person starts to suffer from stress. we realized that he was emotionally plugged up.O.O.O. (Pursue Optimal Outcomes Persistently). (Begin Utilizing Response Procedures) or P. they have to first Formulate Appropriate Response Techniques.E.O.R. before a person can B.A.P.M. P.A.R.N.Now. I knew this was not a case where the client could simply B.R. This can be reduced to a simple statement.T.O.R. B. When he first came to our office.A. The reason became apparent when it was discovered that he had never before learned how to properly F.O. What he needed was an E. Let's look at a case history involving my client Bob..P.P.N. That is.O.O. they must Start To Observe Purposefully so that they can then Become Excited And Noticeably Optimistic.P.E.T. this was a very sensitive situation because it involved reframing a learned response that was created in response to a family of origin dynamic.P and B. in response to stress. his feelings were so bottled up that he absolutely could not P.T.N.U.R.
. they must S.A. and B.. they have to F.T. then they will have to F.N.U. Bob has suffered for quite some time from severe stress effects. As the reader may have guessed.R. because that would not address the cause of his inability to P. In other words.P.E. If they are unable to S.P.A.O. and most likely.A.O.O.P.P.E. (Entirely New Explicit Meaning Association).A.T.O. That is.
H.O.M.A.O. and P.C. 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. what common diseases are actually the result of prolonged. One must wonder that if GAS can cause such serious consequences then. (Subtle Obfuscating Behavior) responsible for the onset of the client's difficulty.P. Defeating this without running into family loyalty conflicts and their accompanying resistance effects is quite a job that requires deft handling and discernment.E. as you can probably tell. he was able to B. (Begin Expurgating Lousy Childhood History) which enabled him to successfully F. The point to this second section is that sometimes to heal. this article was meant to be tongue-in-cheek but the point is very serious. unhealed stress? Finally. It is an essential element of a good and happy life.L.A. Helping a client reduce stress is not just a "mental massage" that feels good in the short term.T.O.M.O. We decided to initiate a reverse E. since the client was extremely motivated to get past his problem and move on we advanced a rather bold tactic. we just need to stop hanging onto old 'stuff' from our past because doing so makes us much more prone to insidious medical disorders such as General Adaptation Syndrome.N.E.E.P. The client became quite excited at the idea.
.A. B.B. However.Apparently there was some S.R.N. the client has been relieved of his GAS because after undergoing a reverse E.P.U.. In summary.R.
In closing I'd like to share a quote that can point a person toward a significantly more relaxed state of mind and being: Q. don't forget that the family members of your client are also benefiting from your valuable and skilled assistance because they have longer to enjoy a healthier and happier mom. Data were gathered from both supervisors and their subordinates by means of questionnaires. Specifically. The objective was to gain insight into ways by which the management of manufacturing companies might use their power to enhance the effective use of influence tactics on their subordinates. This study is perhaps the first that tested ―congruence hypothesis‖ in leadership framework. Ten broadly hypothesized relationships were tested in a field study with a sample of 385 pairs of supervisors and subordinates working in 82 manufacturing companies in Selangor/Kuala Lumpur. the results from
. hard. By and large.And. However. past research had been prone to common method bias.5 Discuss the power and influence tactics? ANS: The general objective of this study was to examine the supervisors‘ and subordinates‘ use of power and their relationships to supervisors‘ use of influence tactics. Penang. Methodologically. the purpose of this study was to examine power congruence and its impact on influence tactics in manufacturing companies in Malaysia. and rational appeal tactics. soft. and Sarawak. The present research differs from the previous studies by linking power congruence between supervisors‘ and subordinates‘ power either from self or as perceived by their subordinates or supervisors with three dimensions of influence tactics known as. this study has demonstrated to be relatively free from this bias by collecting data from two sources. dad or other important person.
this study provides a conceptual foundation for the effective use of influence tactics. and the possible alternatives to their actions. For the indirect hypotheses. They are the engine of its success. This study is perhaps the first to generate a new set of power congruence items in which simultaneous measurement from two perspectives-supervisors and subordinates-were taken to examine the aspect of mutuality. to help the supervisors and subordinates understand more clearly the bases of their own actions.the analyses have indicated moderate support for the hypotheses.6 Explain the characteristics of organization Development?
ANS: Values of OD This model places human centered values above everything else. Rational appeal tactics has exhibited the highest mean as compared with soft and hard influence tactics in the direct relationship between power and influence tactics. Inevitably. Conversely. when both of them were seen to have personal power. supervisors would resort to the use of soft influence tactics. sensitivity and to the feeling and
. the use of hard influence tactics was most apparent.
Q. only one particular dimension of influence tactics was found significant for each power congruence hypotheses. Practically. this research points to the fact that Malaysian managers and executives needto be trained in the effective use of influence tactics. The results confirmed that when both supervisors and subordinates were perceived to have position power. honesty and open communication. This study may be useful for those who are in positions of influence. These values include mutual trust and confidence. 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 their subordinates.
There are organizations who value these human attributes above all other quick fix benefits.emotions of others. The improved version named the Contemporary Action Research model is of great interest to the workshop participants as it can be used to promote projects in both public and private organizations. p.
. Stephen Robbins (1986. and not disguised or avoided. Later in this paper it will be shown how it can be used to promote Poverty Reduction Strategies and gender mainstreaming in local government. shared goals.489). c) Hierarchical authority and control are not regarded as effective mechanisms. 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 care of the trend of emerging mega organizations. b) The organization climate should be characterized by trust. e) People affected by change should be involved in its implementation. and a commitment to addressing and resolving conflict (Buchanan and Huczynski. d) Problems and conflicts should be confronted. openness and support. 1997. strategic alliances.
OD Approaches There are at least three planned change models that have been identified by Cummings and Worley (1997) as shown in figure II below.
These values make OD a unique model and it will be shown later why it is the most suitable approach in resolving human afflictions and problems such as poverty alleviation. p. mergers and public – private partnerships.461) expresses these human values more concisely as follows: a) The individual should be treated with respect and dignity.
Stabilization and Evaluation – the change is stabilized (freezing takes place) and the outcomes are assessed. 1. 2. Lewin‘s model is a once only intervention. Termination – The consultant withdraws from the assignment. The research aspect connotes a search 5 for knowledge that may be used elsewhere.
The action research model differs in several particular ways with the Lewin‘s model. Action – the intervention strategies are implemented. Planning – consultant and client members jointly establish the goals of an OD intervention and the proposed approach 5. Entry – contract is entered into to formalize the relationship of consultant and client.
OD Toolkits The above outlined procedure is the process through which results area achieved but action research methodology has what are described as toolkits. This distinguishes this model as a cyclical and iterative process.The distinction between Lewin‘s model and Action Research model is in the repetitive nature of action research. Buchanan and Huczynski. (1997) give seven steps that are followed in this intervention. 3. In action research the outcomes are fed back so that further improvements and changes can be made. Scouting – the initial stages of consultant and client exchanging ideas on the problem and the appropriate approach. Once diagnosis is complete and the problem
. 7. Diagnosis – information gathering to define the problem and identify causes. These are used to address specific areas of problem. 4. 6.
These are passed on to succeeding generations of employees (Cummings and Worley. Corporate culture is the result of long term social learning and constitutes of basic assumptions. Cultural Analysis This is perhaps one of the most complex change action. Some of these may have arisen from the principles of the founder and subsequently reinforced by succeeding top hierarchies of the organization. Such flexibility was illustrated through an OD consultancy in a local government organization. 1997). team building. process consultation.
Organizational Development Interventions The Existence of certain conditions in an organization which may be described as the internal environment is sometimes assumed. change the structure.identified one or more of these kits or interventions are employed to solve the problem. Some of these include. These are just a number but action research allows flexibility for the consultant to formulate a package of his own interventions to suit the client‘s 6 needs. Different interventions are used when a need arises to change those conditions. They may have an emphasis on product quality. role negotiation and sensitivity training. Some of those interventions which are mentioned above deserve further explanation here. customer care or employee relations. survey feedback. norms and artifacts that have worked well in an organization. Those who have been in an organization for too long cease to be conscious of such an environment and probably only newcomers notice such conditions. values. inter-group development. When problems arise the first question which would arise is how do we do things here? The answer
performance and policies.
Process Consultation People conceive consultation as that situation where an expert is invited to advise an organization that is experiencing a problem. Security and equality. (1998) has distinguished three types of consultations as. employee instability or falling product quality.will inform the type of solution that emerges. The doctor (consultant) diagnoses. the expertise model. Edger Schein. In this two models the knowledge and expertise remains with the expert and leaves the client fully dependent on the expert for future problems. understands. open communication. In the doctor – patient model involves an activity similar to sickness diagnosis. The first model assumes that the client purchases from the consultant some expert information or service that he is unable to provide for himself. and act on the process events that occur in the client‘s
. OD advocates process consultation promoted by Schein who defines the process as: ―The creation of a relationship with the client that permits the client to perceive. Such is the trauma that was experienced by American companies in the 1980s when they adopted the Japanese approach which was influence by a strong organizational culture of employee participation. prescribes and administers the cure. The symptoms of the sickness may be low sales. the doctor – patient model and the process consultation model. To change organizational culture may be a traumatic experience and will require careful analysis and handling. The client who suspects or feels there is something wrong in the organization invites the doctor (consultant) to diagnose the organization so that he can advise on what is not right. Therefore the organizational culture influences organizational strategy.
Schein argues that both the expert and the doctor models are remedial models while as the process consultation model is both remedial and preventive. This way the consultant helps the organization‘s individuals to understand internal problems and build capacity to identify appropriate problem – solving action. This approach follows the rationale that the answers are with the people. 1998. In the first two models the consultant will have to be recalled each time a new problem arises or an old one recurs. The purport of this model is to engage an external consultant on a flexible advisory capacity to work with the clients members in diagnosing the problems. The consultant need not be an expert in the problem at hand but his expertise is in facilitating a process that carries everybody in the search for solutions.
Structure Change This is an intervention that helps change the structure of an organization to make the work more interesting. Other actions may involve decentralization/centralization in an organization. formation of autonomous work teams or business re – engineering.20)‖. job enlargement.internal and external environment in order to improve the situation as defined by the client (Schein. p. planning the actions and finding the solutions together. So the only help required is leadership in diagnoses and in the process through the various stages. challenging or productive. flattening or extending of an organizations structure or even redesigning of focus from region to product or vice versa. The purpose also is to ensure that once the consultant leaves the people have the capacity to solve the next round of problems.
. It may involve such activities as job enrichment.
Team Building Team work is vital to the functioning of modern organizations. Members of teams bring different strings to the group such as leader, investigator, motivator, finisher, clown, coordinator, thinker, negotiator or politician. These 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 individuals are assumed to know everything depending on their level in the authority ladder. This system denies the organization the cumulative advantage of skills and strengths in different individuals.
Role Negotiation A misunderstanding between two individuals in an organization or group can affect its effectiveness. This is usually caused by lack of shared awareness, misunderstanding or lack of trust. This intervention helps to clarify individual perceptions and mutual expectations so that differences can be identified 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: Communication 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 receiver where the receiver decodes the message, processes the information and sends an appropriate reply via the same communication channel.
Types of Communication
Communication can occur via various processes and methods and depending on the channel used and the style of communication there can be various types of communication.
Types of Communication Based on Communication Channels
Based on the channels used for communicating, the process of communication can be broadly classified as verbal communication and non-verbal communication.
Verbal communication includes written and oral communication whereas the nonverbal communication includes body language, facial expressions and visuals diagrams or pictures used for communication. Verbal Communication Verbal communication is further divided into written and oral communication. The oral communication refers to the spoken words in the communication process. Oral communication can either be face-to-face communication or a conversation over the phone or on the voice chat over the Internet. Spoken conversations or dialogs are influenced by voice modulation, pitch, volume and even the speed and clarity of speaking. The other type of verbal communication is written communication. Written communication can be either via snail mail, or email. The effectiveness of written communication depends on the style of writing, vocabulary used, grammar, clarity and precision of language.
Nonverbal Communication Non-verbal communication includes the overall body language 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 person‘s 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 paintings. Types of Communication Based on Style and Purpose Based on the style of communication, there can be two broad categories of communication, which are formal and informal communication that have their own set of characteristic features.
Typically this can include all sorts of business communication or corporate communication. Formal communication can also occur between two strangers when they meet for the first time.Formal Communication Formal communication includes all the instances where communication has to occur in a set formal format. Informal conversations need not necessarily have boundaries of time. Informal communication does not have any rigid rules and guidelines. and editing. What's your goal? Make sure you fully understand the assignment. Official conferences. The style of communication in this form is very formal and official. Q. Know your objective Think before you write.preparing. Are you writing a one-paragraph executive summary or a five-page
. meetings and written memos and corporate letters are used for communication. Informal communication requires two people to have a similar wavelength and hence occurs between friends and family. Practicing the following 16 principles will help you be a more effective writer. Hence formal communication is straightforward. 1.
Informal Communication Informal communication includes instances of free unrestrained communication between people who share a casual rapport with each other. writing.2 What are the general principles of writing especially business writing? ANS: The process of good writing involves three basic steps . place or even subjects for that matter since we all know that friendly chats with our loved ones can simply go on and on. official and always precise and has a stringent and rigid tone to it.
Why? This helps you get started in identifying the key ideas you want to discuss. third. "Kicking an idea around" often helps you clarify your objective and fine-tune what you are trying to accomplish.
Organize your ideas so the reader can easily follow your argument or the point you are trying to get across.
.Define the problem. Make a list Write down the ideas or points you want to cover.
Question-Answer . 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. Problem-Solution . 3.State a question and then provide your answer. think. then describe possible alternatives or the solution you recommend. Organize your ideas Just as it's difficult to find what you want in a messy.Describe what happened first. If you have trouble getting started. disorganized desk drawer. or do? 2. second. try discussing your ideas with someone else.report? Try answering this question: What specifically do I want the reader to know.
Chronological order . it's hard to find important ideas in a poorly organized message.
use bullets or number your points like I have done in this paper. There are a number of ways you can support your ideas. stories.support with data.taking action" can include mental processes such as thinking. including explanations. 6. Join the Business Club to:
Increase sales Gain new marketing ideas Make new friends Give back to your profession
7. and quotations. customer. or physical
. Separate main ideas Each paragraph should have one main point or idea captured in a topic sentence. Each paragraph should be started by an indentation or by skipping a line. The "doing something . Write complete sentences A sentence is about someone doing something . etc. employee. evaluating. personal experiences. statistics. It's best to use a combination of approaches to develop and support your ideas. The topic sentence is normally the first sentence in the paragraph. Back it up Have an opinion but back it up . 5. Here's an example of using bullets. examples. facts.taking action. and deciding. Use bullets or numbers If you are listing or discussing a number of items.4. The someone may be a manager.
distinguished. The reader may not understand certain acronyms and abbreviations." "teamwork. Use a comma to separate adjectives: That tall. A good rule to practice is to have subjects closely followed by their verbs. 9. the meeting will begin.
. sentences with 15 or fewer words are understood 90% of the time. Use a comma to set off introductory elements: After coffee and donuts." "people. 10. Words like "large. Reduce communication breakdowns by being specific and precise. The reader may interpret these words to mean something different than what you intended. and blue." "they. Sentences with eight or fewer words are understood 100% of the time. Use short sentences Sentences should be a maximum of 12 to 15 words in length. Define terms as needed. white. Use commas appropriately Use a comma to separate the elements in a series of three or more items:His favorite colors are red." and "customer focus" are vague and imprecise." "as soon as possible. According to the American Press Institute.actions such as writing and talking. 8. good-looking professor teaches history. Be precise and accurate ." "small.
12. Numbers When using numbers in the body of your paper. such as "The report indicated 68 customers…"
13. Gray is a color. My beliefs. For example. Use the correct word Here are several words that cause confusion. They're is a contraction for "they are. consider the following:
Redundant . so just state. so just state."
It's is a contraction for "it is. Avoid redundancies It is a redundancy to use multiple words that mean or say the same thing.
You're is a contraction for "you are" Your means possession. such as "your coat. I decided to paint the machine gray. spell out numbers one through nine..11. Their means possession/ownership-"their house." Its indicates possession.I decided to paint the machine gray in color.My personal beliefs… Beliefs are personal.. such as "Three men decided…" When using numbers 10 or above it's proper to write the number." There means location.
Strive to be simple.
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.
On your first read. Reorganize material as needed. Cross out unnecessary words and phrases. and brief. The conclusion ties your points together.the bottom line message.
Read it a third time and focus on word choice. The reader wants to know the final score .
Read it again and make sure commas are used appropriately and that there is a punctuation mark at the end of every sentence. Shorten long sentences. "good writing" requires practice.
A significant part of good writing involves editing. and ongoing improvement. Have a conclusion Would you really enjoy watching a movie or sporting event that had no conclusion? No. 15. feedback. focus on organization and sentence structure. Very few people can sit down and write a perfect paragraph on their first try. However you must be able to clearly and succinctly explain your thoughts and ideas in writing. clear. Summary You don't have to be a great writer to be successful manager/leader.14. Are there certain words that are vague or unclear? Replace them with specific words. Edit your work Read what you have written several times. It requires multiple rewrites. Like any skill.
3 How would you prepare yourself for an oral business presentation? ANS: Delivering a formal presentation can be either fairly stress-free or nervewrecking. the critical spectators attending your presentation. If your presentation is non-interactive. such as the Internet or experts. if you jot your notes down on index cards. Equip yourself with facts and insight accordingly. or the feedback that you may anticipate. So. you will discover that you are already halfway prepared to address your listeners. anticipate all types of responding questions from people in your audience: challenging questions. Doing so can also help you develop more confidence in your speech. 3 Organize the notes from which you will speak.Q. 2 In the comfort of your own study lab (wherever that may be). use them to enhance your own insight. Your level of comfort can depend on the size of your audience. The following steps can complete your preparation. critical questions. write legibly. Whatever you may find as a cause for concerns about speaking before a group. I have read several message boards and even complaint sites to help me prepare for the unexpected. With thorough and effective research about your subject. you must be able to comprehend them in order to convey them to an audience.
. But if there are other sources. You can still be approached with questions after your speech or after the event where you gave it. You may have already been provided great information from which you could pull. crazy questions. For enlightenment on people's views. and simple questions (the ones which are so simple that you forgot to prepare an answer for). Whether typed or handwritten. never let it be your knowledge about what you will speak. do not take that for granted.
1 Study your subject.
Unless you have a reliable microphone.
8 Remember that the last row of listeners need to hear your voice.that you plan to use during your presentation. 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. approach the podium with a solid knowledge base about every point your will discuss. but it can certainly distract you. If eye contact with any of those listeners intimidates you. the speaker. bear in mind how you will insert information to be displayed.
7 Please do not imagine your audience in their underwear. 5 Practice your presentation in private and be willing to be your own biggest critic. which is what can happen if you read word-for-word from your notes. There are corners of walls and other inanimate objects where you can place your focus until you find yourself comfortable enough to make brief eye contact with a few friendly or neutral faces. then look just past the last row of people to land your sight on either some empty seats or the wall. be sure to project. By all means.Also. 4 If you decide to speak with the aid of a Power Point presentation.
6 As I expressed above. Don't expect an audience to read lengthy sentences or any paragraph .
. bind the notes . Dropping loose papers or cards during your speech should not distract an attentive listener.paper or cards . You need to focus. do not prepare yourself to read every word written on that Power Point. Grab a tape recorder or any recording device to listen to your own speech. Make your task a tad bit easier on yourself alleviating the possibility of that problem.no matter how much time they are given.
11 Remember that. grasped a clear understanding of it.A message / information's bringing to all which will be put up in common place Circular. And wherever your subject and the points from which you speak will allow.9 Do not overestimate your listeners' attention spans. there should be no reason to lose confidence. While these expressions of intelligence seem effective. they actually reflect a lazy effort to communicate detailed and comprehensible information to listeners. Give your tone some range (logical range.
10 Please impose neither overly technical terminologies nor acronyms on your audience. circulars and notices are also written forms of communication within the organization. Keep their interest. you have the tools to conquer any sharp sensation that you may feel in the pit of your gut going before any group. Like memos. and followed the tips above. If you've studied your subject. that is).
Q.A message / information's bringing to certain group of people belonging to the information's.5 Distinguish between circulars and notices along with formats? ANS: Notice . at this point.
. engage your audience with illustrations which they can relate to.
Imagine 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 college. requesting them to attend that meeting. A notice is therefore a legal document that has to be put up on an official notice or bulletin board. you may choose to invite only the committee members to discuss details such as the date. You may also decide to get each student to contribute a nominal amount for the Fest
. venue. For this purpose. You will have to send some information to those whom you want to involve in organizing the Fest. During the meeting. he will pass around a circular only to the heads. requesting them to attend the meeting. On the other hand. Example – If a manager wants to call a meeting of heads of departments. duration. Let us examine another example of a circular and a notice. such as a reception committee. Example – A list of declared holidays for a calendar year is a notice. whereas notices are meant for a larger group of people.The difference between a circular and a notice is that circulars are announcements that are distributed to small or selective groups of people within the organization. you may send a circular only to the student committee members. stage committee and so on. You may not want all the students to be involved initially. Instead. since it may take a lot of time and there may be too many suggestions. how to get sponsors and so on. the date and venue may be finalized and various smaller committees may be formed. notices generally contain information or announcements that are meant for all the employees of an organization. since the information is relevant to all employees.
A. will meet the Basel III requirements and Crédit Agricole Group ranking among the strongest banks is confirmed. as it is currently understood. To achieve this.3 billion in 2010). forging close links between retail banking and related specialised businesses. We intend to enhance our leadership based on an effective product range and high-quality service. Our objective is also to have a cost to income ratio of less than 60% and a return on equity ratio of 10% to 12%. one of our undisputed strengths. These targets take into account the new Basel III regulatory environment. focus on growth in investment banking and credit businesses. 2011-2014 STRATEGY Our actions in the period 2011-2014 will be based on three principles.2
Q. because of their heavy capital consumption. Crédit Agricole S.1 billion in 2010) and net income. These businesses will continue to grow. Group share of €6 billion to €7 billion (€1. speed up growth in the savings management businesses. how would you communicate to your shareholders about the company’s expansion plans? ANS:Commitment 2014 is a firm and confident ambition and it stands for profitable organic growth. we target ambitious profitability levels underpinned by sound fundamentals: Net banking income of more than €25 billion (€20. In terms of capital adequacy. Our ambition for 2014 is to become the European benchmark in Universal Customer-focused Banking. we shall stimulate organic growth. but selectively.Assignment Set. The
. and finally. First. AMBITIOUS TARGETS By 2014. we shall enhance growth in retail banking.1 As a part of top management team. both in France and elsewhere in Europe.
―En direct‖ you discover today. The strategy therefore highlights just 20 key steps we will take to communicate and engage with people effectively. Recommendation that: you agree the strategy and its associated annexes.2 ABC Ltd. The third principle is that we shall act as a committed and responsible Group in dealing with stakeholders. It also explains our simplified approach to outreach work. OUR SHAREHOLDERS Crédit Agricole S. Through Commitment 2014. and in particular our shareholders. has set up a comprehensive shareholder information and communication framework. including events and festivals. Our dividend policy targets a payout rate of 35% from 2011 (paid in 2012). we want to thank our shareholders for their loyalty by paying an increased dividend.
Q. As an advisor.
. The new layout of the Shareholders‘ Club Newsletter.A. how do you recommend them to do it?
ANS: Our communications and engagement strategy needs to be simple because we are working in a complex environment – otherwise our actions become confusing to the people we work with. and is part of a broader attempt to make full and transparent information available to you. in cash. is aimed at strengthening this direct link between you and us.second principle behind our strategy is that we shall enhance the Group effect by strengthening ties between our business lines. wants to communicate about its corporate image to all its stakeholders and also to the general public.
However. They undertook a SWOT analysis (Strengths. This has been recognised through anecdotal evidence and the recent Customer Service Excellence award. We also need to be able to measure our success more effectively. we need a strategy to coordinate our activities and guide future business planning.
3 POLICY CONTEXT 3.2 The strategy supports the delivery of our Business Plan in its entirety. promoting learning and inspiring people about the National Park in all that we do. Opportunities and Threats) and agreed the simple approach recommended. Weaknesses. ‗ABC – our communications and engagement strategy‘ (Annex 1) aims to do this. They commented on the 20 key steps ensuring that they were strategic and not too
. It includes staff from the Communications and Learning Team and members.1 We have significantly improved the way we communicate and engage with people over the last few years.
4 OPTIONS 4.1 Option 1: You agree the recommendation Option 2: You agree the recommendation with further development of some steps Option 3: You do not agree the recommendation
5 PROPOSALS 5. 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).1 The Communications and Engagement Task and Finish Group was established to develop this strategy.2 BACKGROUND 2. The messages within it explain that we must be excellent communicators.
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. You have also agreed existing budgets to support ongoing work led by the Communications and Learning Team.
7 FINANCE CONSIDERATIONS 7. This strategy supports the delivery of this function by focusing on engagement with partners and local people. unraveling complex issues. particularly through two of our four key Lake District National Park Authority Agenda Item: 9 Authority: 22 May 2008 requirements for effective communications – listening and interpreting demands.1 There are financial implications in the delivery of the strategy.
6 BEST VALUE IMPLICATIONS 6.
. Agreement of any additional budgetary requirements to deliver all steps in the strategy will form part of the corporate planning and performance cycle.detailed. The duty was revised in the Local Government and Public Involvement in Health Bill in May 2007 to engage more with hard-to-reach groups and to secure participation of communities in delivery of local public services. 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).1 The statutory duty of best value requires organisations to consult service users and other stakeholders about services and priorities.
1 This strategy is of high importance to diversity.
10 HUMAN RESOURCES 10. including its Outreach Unit.
. The strategy explains that we will now base our actions on the needs of different groups and clear evidence.1 Each step in the strategy has a different degree of risk which will be managed through respective service plans.
11 DIVERSITY IMPLICATIONS 11. are part of the established structure and will take a clear coordinating role in delivering the strategy. The strategy also makes it clear that new approaches to communications and engagement should be a part of existing roles across the organisation.8 RISK 8. We want toreach out to everyone and use the National Park to build links between different cultures. This will be dealt with through Service Planning and Personal Development Reviews. if we do not develop our communications and engagement activities. Overall. but work with focus groups to identify needs over time. In the past.1 Effective communication is key to performance of our statutory objectives. there is a significant risk that we lose our Customer Service Excellence standard.1 The Communications and Learning Team. our approach to targeting groups may have had an adverse impact on particular groups already using our services.
9 LEGAL CONSIDERATIONS 9. Annex A (‗Reaching Out‘) explains how we will not target people. The proposed strategy will assist with good governance by improving communication within the Authority and will help clarify relationships with partners.
researchers found that more and more employers are emphasizing the development of good speaking skills in their employees. and rely more heavily on data and facts than they do analysis. Presentations are sometimes more persuasive in nature. such as an employee briefing or a report on quarterly earnings. With this in mind. by and large.3 What is oral business communication? Explain its benefits to the organisation and to the individual employee. but they are. much more monologue reliant. Presentations may include some dialog after the sender of the message has finished their speech. This makes
Presentations: One form of oral communication in a business setting is a presentation.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. When surveying over 100 successful businesses. Author/Post Bob Sutcliffe. Stylistically. but tend to be informative more often. oral communication skills are being increasingly sought after by employers. the concept of oral communication is an important idea to study and understand in the context of business. ANS: According to a 2005 study published in the Journal of Employment Counseling.12 SUSTAINABILITY 12. like a pitch for an ad campaign. Presentations are usually an organized conveyance of information to a group of people. they tend to be far more formal than informal. Head of Plans and Communications Date Written 2 May 2008
Client Interaction: Another form of oral communication in business encompasses interaction with clients. Because of the nature of these interactions. as the employee is trying to encourage continued and expanded business with the client.it important for the speaker to anticipate possible objections to the message and address them in the actual speech. Depending on the level of connection between the employee and the client. Depending on the levels of power separation between the individuals engaging in conversation. First. Conversations in this context may reference data. and will be more persuasive than informative in nature. but will be much more analysis heavy. the communication will fluctuate between formal and informal.
Interoffice Interaction: Oral communication in the office can be referred to as interoffice interaction. though it should always remain professional. These interactions usually include a combination of data and analysis. the communication in these interactions can range from incredibly formal to informal and casual. which provides context
. making listening skills incredibly important.
Benefits: Oral communication in business provides a variety of benefits. the communication is definitely a dialog. subordinates and co-workers. oral communication is accompanied by nonverbal signifiers. and will be a dialog by nature. This is comprised of conversations with superiors.
Communication networks may affect the group's completion of the assigned task on time. This is important. and habitual movements may provide clues as to an individuals feelings about the ideas being discussed. memos and chat functions. Although these findings are based on laboratory experiments. Posture. Even in telephone conversations.
Q.4. they have important implications for the dynamics of communication in formal organizations. influence groups in several important ways. facial expressions. "Star". the position of the de facto leader in the group. Bavelas has shown that communication patterns. as strong relationships in business often lead to more profitable and productive cooperation. Oral communication also provides a springboard for relational development. the immediacy involved in oral communication allows for instant feedback and a more relational approach. or they may affect the group members' satisfaction from occupying certain positions in the network. volume and tone of the respective speakers can help in understanding sentiments.
. Unlike with email. Give short notes on communication network in the organisation?
ANS: Networks are another aspect of direction and flow of communication. pitch.
There are several patterns of communication: "Chain". or networks. which tend to take a task-oriented approach to communication.that can enhance understanding in the communication process. "Wheel". rate.
If it's assumed that messages may move in both directions between stations in the networks. such as the Wheel and the Star. is analogous to the free-flow of communication in a group that encourages all of its members to become involved in group decision processes. meaning oneman rule and limited employee participation. The All-Channel network may also be compared to some of the informal communication networks. The Star is similar to the basic formal structure of many organizations. and Star configurations. The Wheel can be compared with a typical autocratic organization. "from the top down. which is an elaboration of Bavelas's Circle used by Guetzkow. In such
. For example. an organization quickly develops around the people occupying these central positions. "Circle".These "peripheral" individuals can communicate with only one or two other persons and must depend entirely on others to relay their messages if they wish to extend their range. it is easy to see that some individuals occupy key positions with regard to the number of messages they handle and the degree to which they exercise control over the flow of information. In patterns with positions located centrally." in military and some types of business organizations. The AllChannel network."All-Channel" network. the person represented by the central dot in the "Star" handles all messages in thegroup. Bavelas came to the following tentative conclusions. individuals who occupy stations at the edges of the pattern handle fewer messages and have little or no control over the flow of information. In contrast.
The Chain can readily be seen to represent the hierarchical pattern that characterizes strictly formal information flow. Wheel. In reporting the results of experiments involving the Circle.
In problem solving requiring the pooling of data and judgments. apply for a job. more controlling) position in the information flow. As the motive of writing the letter is different. lower the accuracy and speed of such networks. etc. 5 What are the different types of business letters? Explain with example. in the long run. the
. and appreciate one's job done." Bavelas suggested that the ability to evaluate partial results. he also found that the morale of members in high centrality patterns is relatively low. A business letter is written by an individual to an organization or an organization to another organization. One writes a letter to enquire information. the speed with which they can be reached. Business letters are written for various purposes. It may be concluded from these laboratory results that the structure of communications within an organization will have a significant influence on the accuracy of decisions. For example. However.patterns. and to restructure problems fell off rapidly when one person was able to assume a more central (that is. Consequently. such as the Circle. or "insight.
ANS: Business letter is an old form of official correspondence. Bavelas speculated that this lower morale could. the organization is more stable and errors in performance are lower than in patterns having a lower degree of centrality. and the satisfaction of the people involved. in networks in which the responsibility for initiating and passing along messages is shared more evenly among the members. to look at alternatives. acknowledge someone's work. insight into a problem 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 members. the better the group's morale in the long run.
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 purpose 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 acknowledge some one for his help or support when you were in trouble. The letter can be used to just say thanks for something you have received from some one, which is of great help to you.
Apology Letter : An apology letter is written for a failure in delivering the desired 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 letter.
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 junior. An organization can also write an appreciation letter to other organization, thanking the client for doing business with them.
Complaint Letter : A complaint letter is written to show one that an error has occurred and that needs to be corrected as soon as possible. The letter can be used 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 write 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 the customer and vendor.
Letter of Recommendation : This type of letter is written to recommend a person for a job position. The letter states the positive aspects of the applicant's personality and how he/she would be an asset for the organization. Letter of recommendation is even used for promoting a person in the organization.
Assignment Set- 1 Master of Business Administration – MBA Semester -1 MB0040 – STATISTICS 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 variables can also be quantitative or qualitative in nature. Qualitative: By definition something that is qualitative concerns or describes a quality. A qualitative variable is a descriptive. Qualitative variable are sometimes referred to as categorical. 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 experiment or research because they can influence other factors or parameters. Qualitative variables are frequently used in social research. Qualitative research is considered to be inductive. Quantitative: By definition something that is quantitative can be expressed as a quantity or number. Quantitative variables are something that can be measured. Quantitative variables are numerical. A quantitative variable can be a percentage of something, a number of units or any other measurement.
. An example of a qualitative variable in testing would be the drying time require for red and green grapes at a constant temperature. An example of quantitative variables in an experiment would be testing the change in speed on a turntable as additional weight is applied. area population. Once patterns form a hypothesis is developed. Deduction and induction in experimentation and research: Deduction works from a general idea to a specific idea. forms a hypothesis. Inductive experimentation will start with an observation and then look for patterns in the observation. The dependent value is the variable that changes due to the independent variable. Deductive research starts with a theory. Quantitative variables are most often considered to be deductive in nature. Induction works in the reverse.Temperature is a quantitative value or variable by the number of degrees. The independent quantitative variable is the amount of weight applied for each measurement. Speed. The experimenter will only use one. gathers observations and then confirms or disproves the original thought. voltage and time are all examples of quantitative variables that can be measured. The controlled variable is something that does not change and must remain constant. The outcome. The hypothesis is then tested for a resulting theory. The independent variable is the variable that is changed by the researcher. The dependent quantitative variable is the resulting speed that is measured. The best results in experimentation come from having only one independent variable. The turntable itself is the controlled variable.
" You should know in advance the precise reasons you want to collect data. The independent variable is qualitative. a quantitative variable would also need to be consistent or controlled. including how it will add value to your business or organization. useful data. and the actions you intend to take once you and your team have reviewed the responses. you shouldn't approach it haphazardly. you shouldn't move forward. 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. Unless you have already identified a specific reason for conducting your survey. the difference between red and green grapes. The controlled variable being used is temperature.
Q 2. We've discussed how to boost your response rate. a) Explain the steps involved in planning of a statistical survey? ANS: I've explained the fundamentals of creating and executing surveys.
. what you hope to learn from the information. everything begins with the initial plan. It's not enough to say. thereby squeezing more value from your efforts. But. also quantitative. And we've talked briefly about the various strategies you can employ to solicit participation from your respondents. We've explored how to construct questions so they yield accurate. In this article. of time is measured and therefore quantitative.variable. "I need to know if customers are satisfied" or "I want to measure employee morale. In this particular example the weight of each grape. I'll describe the 5 steps that you and your design team should follow to plan a successful survey execution.
Step #4: Define Your Resources
Beyond your budget. Some of the costs aren't immediately obvious. if you're using employees to approach participants. Don't take any of these items lightly. and determine how much time your project will require. time constraints. the information you hope to collect. The time you'll need to complete your survey will be based largely upon these factors. you'll need to identify resources (both internal and external) upon which you'll rely for expertise and assistance. and your population size. in person interviews. For example. you'll need to pay for their time. you'll have to pay postage. postal mail. etc. For example. surveying single men between ages 30 and 39 will yield different data than married couples over 60. If you're conducting a survey by mail. figure out how to approach them. Your strategy for approaching them can vary between phone. Your selection of the people you choose to approach will depend upon the type of information you hope to collect.
Step #3: Plan The Logistics
You'll need to choose your participant pool. Analyzing the data also carries a cost. and other limitations. if you're measuring employee satisfaction. If you're
.Step #2: Determine How Much It Will Cost
Design and deployment can be expensive depending upon its scope. For example. you'll want to enlist the help of your organization's human resources department. email. Plan conservatively to ensure you have the budget to see the project through its completion.
the investigator collects data by having direct contact with units of investigation. etc.
Step #5: Map The Steps To Completion
Before you execute your survey. b) What are the merits & Demerits of Direct personal observation and Indirect Oral Interview? ANS: In the direct personal observation method. If you approach the task methodically and follow the 5 steps we've covered above.The accuracy of data depends
. It should detail each step in the process. you'll need to identify and interview a number of experienced agencies. CFO. you'll dramatically improve the likelihood of success. including who is responsible for collecting the information needed to complete each step and the specific tasks that are involved along the way. you should also determine the internal personnel who will need to see your team's analysis of the data (i. During this step.
Creating and executing effective surveys that yield useful data require a lot of time and upfront planning.e. president. In an upcoming article. accounting department. Without creating this plan ahead of time. we'll explore the deployment in more detail.outsourcing the design of your survey.). you risk wasting finite resources as a result of confusion and lack of accountability. Remember your objective: to collect accurate information that you can take action upon for a predefined benefit to your organization. take the time to create a chronological timetable of the project.
Indirect oral interview is used when area to be covered is large. The data is collected from a third party or witness or head of institution. training and attitude of the investigator.The scope of investigation is narrow .
The direct personal observation method is suitable where . 6) Misinterpretation of questions can be avoided.
.upon the ability.Accuracy of data is important
Merits and demerits of direct personal observation -
Merits: 1) We get original data. 3) Satisfactory information can be extracted by the investigator through indirect questions. 2) we get more accurate and reliable data.
Demerits: 1) It is time consuming and costs more. This method is generally used by police department.Investigation is confidential and requires personal attention of the investigator . 5) Additional information can be gathered. 4) Data are homogeneous and comparable.
Q 3. say X and Y. 3) Information is likely to be unbiased and reliable. for example.
(2a) Correlation is calculated whenever: * both X and Y is measured in each subject and quantify how much they are linearly associated. * correlation is not used when the variables are manipulated.Merits and demerits of indirect oral interview -
Merits: 1) It is economical in terms of time. 2) Confidential information can be collected. the regression tells us the FORM of linear association that best predicts Y from the values of X. cost and manpower.
. a) What is the main difference between correlation analysis and regression analysis? ANS: (1) The correlation answers the STRENGTH of linear association between paired variables. * in particular the Pearson's product moment correlation coefficient is used when the assumption of both X and Y are sampled from normally-distributed populations are satisfied * or the Spearman's moment order correlation coefficient is used if the assumption of normality is not satisfied. in experiments. On the other hand.
Demerits: 1) The degree of accuracy of information is less.
. 2. Xi = 0 or 1. The p + 1 random variables are assumed to satisfy the linear model yi
0 1xi1 2xi2 pxip
+ ui i = 1. Note: Some of the Xi's are dummy variables. b) In a multiple regression model with 12 independent variables. Thus. linear regression will underestimate the correlation of the independent and dependent when they (X's and Y) come from different underlying distributions. On the other hand. >= 0. .e. . . i.80
(5) The same underlying distribution is assumed for all variables in linear regression. . .g.e. xip. .e. That is interchanging X and Y will give a different regression model (i. X in terms of Y) against the original Y in terms of X.
(4) The "best" linear regression model is obtained by selecting the variables (X's) with at least strong correlation to Y. e. 2. xi2. i. yi). . which are used to code some nominal variables. n
. . . in an experiment.80 or <= -0. if you interchange variables X and Y in the calculation of correlation coefficient you will get the same value of this correlation coefficient. . * if one manipulates the X variable.(2b) Linear regression is used whenever: * at least one of the independent variables (Xi's) is to predict the dependent variable Y. i = 1. what are the degrees of freedom for error? Explain? ANS: Consider a random sample of n observations (xi1. n. . .
(3) Linear regression are not symmetric in terms of X and Y.
yn are a random sample. they are mutually independent and hence the error terms are also mutually independent
The distribution of the error term is independent of the joint distribution of x
i. . . u. .
Minimizing the sum of squares leads to the following equations. because the observations y1. . y2. the unknown parameters are constants. and. Assumptions
The error terms ui are mutually independent and identically distributed. with mean = 0 and constant variances E [ui] = 0 V [ui] =
This is so. . x p
0 1 2 p
are constants. from which the
Equations relating the n observations can be written as:
can be estimated using the least squares
x 2. .where ui are values of an unobserved error term. which minimizes the sum of squares of errors.
We can visualize that n observations (xi1. The regression problem is to determine the possible hyper-planes in the p – dimensional space.. …. the estimate ŷ).dimensional space.e. the distances from the points around the plane (observations) and the point on the plane. yi) i = 1.xip.Geometrical Representation The problem of multiple regression can be geometrically represented as follows. which will be the best. i. …. (i.e. We use the least squares criterion and locate the hyper-plane that minimizes the sum of squares of the errors.n are represented as points in a (p+1) ..fit. ŷ = a+b1x1+b2x2+…+bpxp Standard error of the estimate
Se = where yi = the sample value of the dependent variable ŷi = corresponding value estimated from the regression equation
. 2. xi2.
that have been estimated from the sample.
Sum of squares due to error
. b1.n = number observations p = number of predictors or independent variable The denominator of the equation indicates that in multiple regression with p independent variables. the standard error has n-p-1 degrees of freedom.. Fit of the regression model The fit of the multiple regression model can be assessed by the Coefficient of Multiple determination.bp. which is a fraction that represents the proportion of total variation of y that is explained by the regression plane. This happens because the degrees of freedom are reduced from n by p+1 numerical constants a. …. b2.
This ratio. the model tends to fit the data very well. R2 is sensitive to the magnitudes of n and p in small samples. SST = SSR + SSE The ratio SSR/SST represents the proportion of the total variation in y explained by the regression model. if n = p+1. If p is large relative to n. In the extreme case. the model would exactly fit the data. which is computed as follows:
Adjusted R2= 1 – (
.SSE = Sum of squares due to regression
SSR = Total sum of squares
SST = Obviously. A better goodness of fit measure is the adjusted R2. is called the coefficient of multiple determination. denoted by R2.
. = βp = 0. Under the null hypothesis: Ho: β1 = β2 = . by computing the statistic
. using an Ftest in the format of analysis of variance. the statistic
= has an F-distribution with p and n--1 degrees of freedom ANOVA Table for Multiple 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 variable contributes significantly to the regression equation can be tested as follows: For any specific variable xi.e.Statistical inferences for the model The overall goodness of fit of the regression model (i. we can test the null hypothesis Ho: βi = 0. whether the regression model is at all helpful in predicting the values of y can be evaluated..
j=1. The coefficients (bisi)/sy. x2. The estimated model ŷi = bo+b1xi1+b2xi2+…. The standardized regression coefficient measures the impact of a unit change in the standardized value of xi on the standardized value of y. are unstandardized regression coefficients and s1. However. Standardized regression coefficients The magnitude of the regression coefficients depends upon the scales of measurement used for the dependent variable y and the explanatory variables included in the regression equation.and performing a one or two tailed t-test with n-p-1 degrees of freedom.xp and sx is the standard deviation of variable y.p are called standardized regression coefficients. The larger the magnitude of standardized bi. the more xi contributes to the prediction of y. ….2. …sp are the standard deviations of variables x1. s2. the regression equation itself should be reported in terms of the unstandardized regression coefficients so that prediction of y can be made directly from the x variables.bpxip can be written as:
+ The expressions in the parentheses are standardized variables. b’s. It is therefore necessary to standardize the variables for meaningful comparisons. Unstandardized regression coefficients cannot be compared directly because of differing units of measurements and different variances of the x variables.
it implies that the control variables have no effect on the relationship between variables 1 and 2. it implies that the correlation between original variable is spurious. This correlation is called partial correlation. Hence. Partial Correlation A useful approach to study the relationship between two variables x and y in the presence of a third variable z is to determine the correlation between x and y after controlling the effect of z.. If the number of other variables is equal to 1. R. This property explains that the computed value of R is never negative. is a measure of the strength of the linear relationship between y and the set of variables x1.…. Partial correlation coefficient is a measure of the linear association between two variables after adjusting for the linear effect of a group of other variables. the regression equation barely predicts y better than sheer chance. controlling for variables 3 and 4. Partial correlation is the correlation of two variables while controlling for a third or more other variables. When the value of the multiple correlation R is close to zero. In this sense.Multiple Correlation Multiple correlation coefficient. x2.x2. the least squares regression plane maximizes the correlation between the x variables and the dependent variable y.xp. If partial correlation is nearly equal to zero.34 is equal to uncontrolled correlation r12 . the partial correlation coefficient is called
.. …xp. If partial correlation r12.34 is the correlation of variables 1 and 2. it represents a measure of how well the regression equation fits the data. A value of R close to 1 indicates a very good fit. It is the highest possible simple correlation between y and any linear combination of x1. For example r12.
l = where rij. First order Partial Correlation The first order partial correlation between xi and xj holding constant xl is computed by the following formula
rij. The value of t is compared with tabulated t for n-q-2 degrees of freedom.
t= where q is the number of variables held constant.lm = where rij. the partial correlation coefficient is called the second order coefficient. and so on. ril and rjl are zero order (Pearson‘s r coefficient) Second order Partial Correlation Correlation between xi and xj holding constant xl and xm is computed by the following formula:
rij. rjm. rim.l are first order partial correlation coefficients. Statistical significance of partial correlation coefficients can be tested by using a test statistic similar to the one for simple correlation coefficient.the first order coefficient. If the number of other variables is equal to 2.l.
The tolerance of xi is defined as 1 minus the squared multiple correlation between that xi and the remaining x variables. The value of the determinant near zero indicates that some or all explanatory variables are highly correlated. When tolerance is small. A common approach to multicollinearity problem is to omit explanatory variables.9). then it would be expedient to discard the variable with the smallest tolerance. The inverse of the tolerance is called the variance inflation factor (VIF). say less than 0. Another approach is to compute the ‗tolerance‘ associated with a predictor. the problem of multicollinearity occurs when some of the x variables are highly correlated. Multicollinearity can have significant impact on the quality and stability of the fitted regression model.
. The simplest method for detecting multicollinearity is the correlation matrix. since one variable conveys essentially all the information in the other variable. which can be used to detect if there are large correlations between pairs of explanatory variables. The determinant of the correlation matrix represents as a single number the generalized variance in the set of predictor variables. and varies from 0 to 1.01.Multicollinearity In practice. The value of the determinant equal to zero indicates a singular matrix. then the simplest approach would be to use only one of them. When more subtle patterns of correlation coefficients exist. which indicates that at least one of the predictors is a linear function of one or more other predictors. For example if x1 and x2 are highly correlated (say correlation is greater than 0. the determinant of the correlation matrix computed by IDAMS can be used to detect multicollinearity.
where at each step a single explanatory variable is either added to or removed from the model in the next fit. ) explanatory
. a variable is added.statistic. whose partial F. Another limitation is that a variable once included in the model remains there throughout the process. The most commonly used criterion for the addition or deletion of variables in stepwise regression is based on partial F-statistic:
= The suffix ‗Full‘ refers to the larger model with p explanatory variables.value. Forward selection Forward selection procedure begins with no explanatory variable in the model and sequentially adds a variable according to the criterion of partial F.statistic yields the smallest p .Stepwise Regression Stepwise regression is a sequential process for fitting the least squares model. whereas the suffix ‗Reduced‘ refers to the reduced model with ( variables. At each step. after the inclusion of other variable(s). Some of the variables never get into the model and hence their importance is never determined. The procedure stops when the addition of any of the remaining variables yields a partial p-value > PIN. even if it loses its stated significance. Variables are entered as long as the partial F-statistic p-value remains below a specific maximum value (PIN). This procedure has two limitations.
whose partial F p-value is greater than a prescribed value. After the included variables have been examined for exclusion. It is necessary that PIN POUT to avoid infinite cycling of the process.
. POUT. they may be nominal or ordinal variables. At each step of the process. is the least useful variable and is therefore removed from the regression model. they manage to ‗trick‘ least squares. A variable. the p-values are computed for all variables in the model. then that variable is eliminated. Regression with Qualitative Explanatory Variables Sometimes. Such variables can be used in the regression model by creating ‗dummy‘ (or indicator) variables. explanatory variables for inclusion in a regression model are not interval scale. there can be at the most one exclusion. followed by one inclusion. At each step of the process. until no variable can be removed according to the elimination criterion.Backward elimination The backward elimination procedure begins with all the variables in the model and proceeds by eliminating the least useful variable at a time. Since they have two categories. Stepwise procedure The stepwise procedure is a modified forward selection method which later in the process permits the elimination of variables that become statistically nonsignificant. Dichotomous Variables Dichotomous variables do not cause the regression variables to lose any of their properties. the excluded variables are re-examined for inclusion. If the largest of these p-values > POUT. The process continues.
the relationship between income and gender y = a + bx where y = income of an individual. coded as 0 if female 1 if otherwise The estimated value of y is ŷ =a if x = 0 ŷ=a+b if x = 1 Since our best estimate for a given sample is the sample mean. The regression coefficient b is therefore
In effect. Consider for example. a is estimated as the average income for females and a+b is estimated as average income for males. females are considered as the reference group and males‘ income is measured by how much it differs from females‘ income.while entering into the regression equation as interval scale variables with just two categories. and x = a dichotomous variable.
the parameters of the regression equation cannot be estimated uniquely.Polytomous Variables Consider. if rank = Lecturer. and 0 otherwise). it would
. y = a+bx where y is the percentage of work time spent on teaching x is a polytomous variable ‗rank‘ with three modalities: 1 = Professor 2 = Reader 3 = Lecturer We create two dummy variables: X1 = 1 if rank = Professor 0 if otherwise X2 = 1 if rank = Reader 0 if otherwise Note that we have created two dummy variables to represent a trichotomous variable. the relationship between the time spent by an academic scientist on teaching and his rank. for example. This is because if the score of any respondent on X1 and X2 is known. If we create a third dummy variable X3 (score 1.
Are there commonalities among these definitions? Is any one definition "more correct" than the others? Is one quality expert "right" and the others "wrong"? Quality professionals constantly debate this question. There are a variety of perspectives that can be taken in defining quality (e.e." They asked. The editors of Quality Digest say that defining the word "quality" is "no simple endeavor. A modern definition of quality derives from Juran's "fitness for intended use. customer's perspective. Dictionary definitions are usually inadequate in helping a quality professional understand the concept. a) Discuss what is meant by Quality control and quality improvement? ANS: Quality is a much more complicated term than it appears. score 1 on X3).always be possible to predict his score on X3.g. Statistical significance of regression coefficients and Multiple R2 is determined in the same way as for interval scale explanatory variables." Deming states that the customer's definition of quality is the only one that matters. For example if a respondent has score 0 on X1 (not Professor) and 0 on X2 (not Reader). in their December 1999 issue. Hence the general rule for creating dummy variables is: Number of dummy variables = Number of modalities minus 1. then the respondent is certainly a Lecturer (i. for readers to send them their definitions of quality to be gathered and posted on Quality Digest Online. It seems that every quality expert defines quality is a somewhat different way.
Q 5." This definition basically says that quality is "meeting or exceeding customer expectations. This represents a situation of perfect multicollinearity..
. specification-based perspective).
Glossary & Tables for Statistical Quality Control. According to ASQ. also the use of such techniques and activities. 1983]. Quality management is the totality of functions involved in the determination and achievement of quality (includes quality assurance and quality control). Glossary & Tables for Statistical Quality Control. External customers usually come to mind first. 1983]. But even here there is some confusion. If we sell our products to a wholesaler. is he our only customer? How about the retailer and the ultimate consumer?
. QA includes all those planned or systematic actions necessary to provide adequate confidence that a product or service will satisfy given needs. Quality control (QC) has a narrower focus than quality assurance. QC includes the operational techniques and the activities which sustain a quality of product or service that will satisfy given needs. According to ASQ. [Source: ASQ Statistics Division. It includes all activities designed to produce products and services of appropriate quality. These are the people outside our organization who receive our goods and services. Quality control focuses on the process of producing the product or service with the intent of eliminating problems that might result in defects. Glossary & Tables for Statistical Quality Control. 1983]. [Source: ASQ Statistics Division. [Source: ASQ Statistics Division.Quality assurance (QA) is a broad concept that focuses on the entire quality system including suppliers and ultimate consumers of the product or service.
satisfying customers merely keeps you in the game. developed a general list of 5 service dimensions that they tested in 4 types of service industry. the next station downstream from ours is an internal customer for our work. The Purchasing Dept. Now. for example. did you select a restaurant that you expected would dissatisfy you? Probably not.Internal customers are often forgotten or taken for granted. current research indicates that in terms of service quality. These are general lists and serve as good starting points. health care services and food services. But. let's discuss meeting or exceeding customer expectations. David Garvin developed a list of 8 dimensions of product quality. al. So. You selected from a list of restaurants that you expected would satisfy you. the dimensions are different for different industries. Restaurants that deliver larger than expected portions or lower than expected prices or better than expected service or better than expected ambiance (order winners) have a competitive advantage over restaurants that simply satisfy customers (possess only order qualifiers). Meeting customer expectations results in a satisfied customer. who receives a control report from the Accounting Dept. Delighting customers (exceeding customer expectations) is where competitive advantage can be found. but the applicability of these dimensions in other industries is unknown. So Evans and Lindsay's list may not apply equally well to. Parasuraman. Evans and Lindsay provide a list of 8 dimensions of service quality. In an assembly line operation. is the Accounting Dept's. et. A number of scholars in the quality field have developed lists of dimensions that define quality for a product and/or a service. internal customer. But where is the competitive advantage in that? Have you eaten in a restaurant in the past month? If so.
. Second grade teachers are internal customers for first grade teachers.
Pareto charts have several disadvantages. The quality dimensions for hospitals (KQCAH Scale) that are shown in the Lesson 1 Presentation were developed using focus groups conducted with recently discharged patients and their families.
. Statistical Process Control charts. Methodologies which are appropriate for this would include focus groups and surveys. Hospitals know that they are measuring dimensions that are important to patients. The Pareto principle has been found to apply in other areas. run charts and cause-and-effect charts are needed to determine the most basic reasons that the major issues identified by the Pareto chart are occurring. For example. 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. one of the disadvantages of Pareto charts is that they provide no insight on the root causes.
Easy to Make but Difficult to Troubleshoot
percent of issues that cause the majority of problems in order to have the greatest impact. from economics to quality control. However.Developing a list of quality dimensions for a specific service industry requires determining what is important to customers. a Pareto chart will demonstrate that half of all problems occur in shipping and receiving. Knowledge of these dimensions facilitates the measurement of patient satisfaction by hospitals. however. and with hospital personnel. Failure Modes Effect Analysis. He found that approximately 80 percent of all wealth of Italian cities he researched was held by only 20 percent of the families.
6. ANS: (i) Average size of ready-made garments: Arithmetic mean will be used because it is continuous and additive in nature. a) Suggest a more suitable average in each of the following cases: (i) Average size of ready-made garments. : Arithmetic mean will be used because it is the data are in the interval and the 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 than mean : the data are "skewed to the left". ANS: Average marks of a student.
.Multiple Pareto Charts May Be Needed Pareto charts can show where the major problems are occurring. (ii) Average marks of a student. with a
long tail of low scores pulling the mean down more than the median.
If some of the items of the series are not taken into account in its Calculation the average cannot be said to be a representative one. 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 limited number of persons.2
Q 1. (ii) It should be based on all the observations of the series. The bias of the investigator in such cases would considerably affect the value of the average.Assignment Set. (iii) It should be capable of further algebraic treatment. If the average is rigidly defined. its use is bound to be very limited. this instability in its value would be no more. What are the characteristics of a good measure of central tendency? ANS: Characteristics of a Good Average (i) It should be rigidly defined. If an average dose not possess this quality. further it will not be possible to study the average relationship of various parts of a variable if it is expressed as the sum of two or more variables. and it would always be a definite figure. Many other similar studies would not be possible if the average is not capable of further algebraic treatment. If an average is left to the estimation of an observer and if it is not a definite and fixed value it cannot be representative of a series. 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. It can never be a
. (iv) It should be easy to calculate and simple to follow. It will not be possible to calculate. the combined average of two or more series from their individual averages. say.
As such. These averages in which this difference. Again. if big and small mills are not separated the average would be unrepresentative. Further. No doubt. the data from which an average is calculated should be a homogeneous lot. adult workers should be separately studied from the juvenile group. To find out the average production of cotton cloth per mill. If the data from which an average is being calculated are not homogeneous. one of the qualities of a good average is that it should not be too abstract or mathematical and there should be no difficulty in its calculation. to study wage level in cotton mill industry of India. the properties of the average should be such that they can be easily understood by persons of ordinary intelligence. Similarly. are considered better than those in which its difference is more. should not materially differ from each other. separate averages should be calculated for the male and female workers. If two independent sample studies are made in any particular field. which is technically called "fluctuation of sampling" is less.
One more thing to be remembered about averages is that the items whose average is being calculated should form a homogenous group. misleading conclusions are likely to be drawn.
. It is absurd to talk about the average of a man's height and his weight. (v) It should not be affected by fluctuations of sampling. in the average values calculated but in some cases this difference would be great while in others comparatively less. there is bound to be a difference. Thus we see that as far as possible. Homogeneity can be achieved either by selecting only like items or by dividing the heterogeneous data into a number of homogeneous groups. when two separate enquires are made. the averages thus obtained.popular average.
etc. speed. It possesses many mathematical properties and due to this it is of immense utility in further statistical analysis. Geometric Mean Use of Geometric mean is important in a series having items of wide dispersion. it has little applicability. Some of the cases of different averages are as follows: Arithmetic Mean Arithmetic mean is considered an deal average. percentages and compound rates are computed by geometric mean. The growth of population is measured in it as population increases in geometric progression. prices. It is useful in cases where time. rate and prices are involved. consumption. average cost. Harmonic Mean Harmonic mean is applied in the problems where small items must get more relative importance than the large ones. imports. per capital income exports. It is frequently used in all the aspects of life.(b) What are the uses of averages? ANS: The use or application of a particular average depends upon the purpose of the investigation. It is used in the construction of index number. values given in quantities. In economic analysis arithmetic mean is used extensively to calculate average production. then weighted arithmetic mean is used. average wage. But in practice. The averages of proportions. When different items of a series have different relative importance. Median and partition Values
etc. If the difference between them is small. Meteorology. the hypothesis is accepted and if the difference between them is large. Business and Industry. wealth. Its applicability of daily problems is increasing. investment. A background in Calculus is useful no matter what branch of statistics is
. Statistics is a diverse subject and thus the mathematics that are required depend on the kind of statistics we are studying. We compare the value of the statistic with the hypothetical value of the parameter. intelligence. 'modal size of shore'. A statistic on which the decision can be based whether to accept or reject a hypothesis is called test statistic. Mode Mode is also positional average. Mode is used to calculate the 'modal size of a collar'. To begin with we assume that the hypothesis about the population parameter is true. Q 3. or 'modal size of ready-made garments' etc. A strong background in linear algebra is needed for most multivariate statistics. but is not necessary for introductory statistics. These are also suitable for the problems of distribution of income. What is test statistic? Why do we have to know the distribution of a test statistic? ANS: A statistic is calculated from the sample. t and Chi – Square. the hypothesis is rejected. etc.Median and partition values are positional measures of central tendency. ability. 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. There are mainly used in the qualitative cases like honestly. In the distributions which are positively skewed. median is a more suitable average. Some of the test statistics to be discussed later are Z. It is also used in the sciences of Biology.
Refresher Course Most of the statistics here will derive from a few basic things that the reader should become acquainted with.21| = 2.21
Factorials A factorial is a calculation that gets used a lot in probability. Examples
|42| = 42 |-5| = 5 |2.At a bare minimum the student should have a grasp of basic concepts taught in Algebra and be comfortable with "moving things around" and solving for an unknown. It is defined only for integers greater-than-or-equal-to zero as:
. Absolute Value
If the number is zero or positive. then take away the negative sign to get the absolute value. but is not required for most introductory statistics classes. If the number is negative.being studied. then the absolute value of the number is simply the same number.
It is a method of representing addition over lots of values without putting + after +.Examples In short. We represent summation using a big uppercase sigma: ∑. Examples Very often in statistics we will sum a list of related variables:
. 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.
Infinite series There is no reason. These series are called "infinite series" and sometimes they can even converge to a finite value. eventually becoming equal to that value as the number of items in your series approaches infinity (∞). 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. that a series has to count on any determined. and then 4). of course. 2. 1. The expression below the ∑ (i=0. so i = 0. in this case) represents 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 increment to (stepping by 1. or even finite value—it can keep going without end. Examples
. 3. rather than multiplying each component of the summation by
2).Here we are adding all the x variables (which will hopefully all have values by the time we calculate this).
66196 1. You want to approximate (get a good estimate of) the values at 63.84887 1.84523 1.30308 1.70446 50 0.63869 90 0. Note both that the series goes to ∞ (infinity.10 0.66028 70 0.025 0. converge on) 1 / 1-r the further you take the series out.67779 60 0. Linear Approximation Student-t Distribution at various critical values with varying degrees of freedom.005
40 0.98397 2.29222 1.02108 2.42326 2.62589
Let us say that you are looking at a table of values.66691 1.99444 2..20 0.29582 1. that means it does not stop) and that it is only valid for certain values of the variable r.39012 2. v / α 0.01 0.
.00856 2.63157 100 0.This example is the famous geometric series.64790 80 0. without having to go through all of the trouble of calculating the extra step in the table.37387 2.40327 2.36422 2.36850 2.98667 2.85070 1.66023 1.84765 1.05 0.e.29871 1.38081 2.00030 2.84563 1.29007 1.67591 2. A good solution here is use a linear approximation to get a value which is probably close to the one that you really want.29376 1.66412 1. such as the one above.84679 1.99006 2.67065 2. This means that if r is between the values of -1 and 1 (-1 < r < 1) then the summation will get closer to (i.84614 1.68385 2. but you do not have those values on your table.29103 1.
065 Var(Xbar) = σ^2/n = 500^2/100 = 2500
. xi represents the data point you want to know about.This is just the equation for a line applied to the table of data. and know about. want to know about. is the known data point beneath the one you is the known data point above the one you want to
uppose you are sampling from a population with mean standard deviation he sample size is n value and the variance of a sample mean ? ANS: If sample mean is xbar. E(xbar)=μ=1065
hat are the expected
Var(xbar) = (population variance)/n==100^2/100=100 OR
E[Xbar] = μ = 1.
Vodaphone. Rajesh brings Rs.1000
Transaction 1: The business receives capital in cash. Capital is a liability and cash is an asset to the business. He purchases Mobile Set to his shop Rs. Reliance and BSNL.Assignment Set.40000 on credit to Arjun 5. He sells currencies worth Rs.1 Assure you have just started a Mobile store. He buys currencies for cash Rs. Did you firm earn profit or incurred loss at the end? Make a small comment on your financial position at the end.
. Take five transactions and prepare a position statement after every transaction. You sell mobile sets and currencies of Airtel.30000 for Rs. ANS: We shall consider five transactions and show how they are accounted for in the
books of the business. This transaction can be reflected as Under. Liability Asset Capital 100000 Cash 100000
Transaction 2: Mobile Set is purchased for cash.10000 3. Mr.100000 cash as capital into his business.1
Master of Business Administration-MBA Semester MB0041-Financial and Management Accounting Q.
1. 2.50000 4. He pays wages to servants Rs.
Q. IFRS follows accrual basis of accounting and the financial statements are prepared on the basis that an entity will continue for the foreseeable future.
2b. the Balanced Score Card introduces the drivers of future financial performance. learning & growth perspectives) are derived from the organization's strategy translated into objectives and measures. conventions. IFRS helps entities access global capital market with ease. There are altogether 32 accounting standards issued by ASB out of which. While retaining financial measures of past performance. internal business process. IFRS was framed by International Accounting Standards Board (IASB).
Example: While depreciating an asset the practice of adopting straight line method or diminishing balance method or any other method is a convention regarding the principles and methods to be chosen out of several alternatives.
. List the accounting standards issued by ICAI?
ANS: To bring uniformity in terminology.
Q. accounting concepts. Write short notes of IFRS?
ANS: IFRS are standards. (Figure 1) The drivers (customer. The objective of financial statement is to provide information about the financial position. performance and changes in the financial position of an entity. An Accounting Standard is a selected set of accounting policies or broad guidelines.3 Choose an Indian Company of your choice that has adopted Balance Score Card and detail on it?
ANS: The Balanced Score Card is a framework for integrating measures derived from
strategy. one standard (AS8) has been withdrawn pursuant to AS26 becoming mandatory.2a. the Institute of Chartered Accountants of India (ICAI) established Accounting Standards Board (ASB) in 1977. interpretations and framework for the preparation and
presentation of financial statements. It should also provide the current financial status of the entity to all the users of financial information. and
the ultimate result would be disastrous. Cash is an important component in
any activity. The control becomes inescapable. The real power of the Balanced Score Card is when it is transformed from a measurement system to a management system. If cash is not properly managed or if it is mismanaged. It fills the void that exists in most management systems .
.the lack of a systematic process to implement and obtain feedback about strategy
Q.4 What is a cash budget? How it is useful in managerial decision making?
ANS: A proper control over cash is very essential.The Balanced Score Card is more than a measurement system it can be used as an organizing framework for their management processes. Hence cash budgeting occupies a pivotal place in the study of Financial Management. In many times and in many business situations. business failures are noticed due to the lacunae found in the cash management.
Basic Features The business firm or enterprise is an organizational structure in which the basic activities are departmentalized as line and staff. and expected payments known as cash outflows to meet the future obligations. This descriptive model shows that there are different levels of management. quarterly. competitors.1. bankers. monthly. The organization is run or controlled by individuals collectively called management. The written statement of receipts and payments is known as the cash budget. It is a crystal ball which enables one to observe the future movements in cash position. The environment in which the organization operates includes investors. Opening balance of cash in hand and cash at bank
The Management Accounting Perspective of the Business Enterprise The management accounting view of business may be divided into two broad categories: (1) basic features and (2) basic assumptions. and finance. weekly. There are three primary line functions: marketing. or annually. The staff or advisory functions include accounting. The significance of a hierarchy of management is that decision‑making occurs at three levels.)
The organizational aspect of the business firm is illustrated in Figure 2. middle management. The organization has a communication or reporting system (e. lawyers. The major two components of cash budget would be forecast first the cash receipts and then second forecasting the cash disbursements.g. Basic Assumptions in Management Accounting
. suppliers. accountants. It is a mere forecast of cash position of an undertaking for a definite period of time. and lower level management. A commonly used approach is to classify management into three levels: Top management. governments (state and federal). personnel. and purchasing and receiving.
The receipts of cash are formatted as follows: 1. The period may be daily. semi-annually. production.Cash budgeting is the process of forecasting the expected receipts known as cash inflows. budgeting) to coordinate the interaction of the various staff and line departmental functions.
Nature of accounting information Basic Goal Assumptions .The success of the business depends primarily upon the skill and abilities of management–which skills can vary widely among different managers. or earnings per share. Decisions may also be classified as strategic and tactical and long‑run and short‑run. In order to achieve desired results. incremental analysis. Decisions which management must make may be classified as marketing. However. management will at all times try to achieve a satisfactory level of profit. Management accounting does not require a specific of type of goal. ROI. . A primary objective of decision‑making is to achieve optimum utilization of the business’s capital or resources. flexible budgeting. Other goals could be to maximize sales. Management. Basic goals 2. Decision‑making Assumptions ‑ A critical managerial function is decisionmaking. For example. and financial. Nature of Decision‑making 4. Management can through its actions (decisions) influence and control events within limits. Although no single work has attempted to identify all of the assumptions. the goal may be to maximize net income. A less than satisfactory level of profit may portend a change in management. Role of the accounting department 5. Role of management 3. segmental contribution reporting. cost‑volume‑profit analysis. production. inventory models.The basic goals or objectives the business enterprise may be multiple. Accounting Department Assumptions ‑ The accounting department is a primary
. Role of Management Assumptions . management makes use of specific planning and control concepts and techniques. Five categories of assumptions will be presented: 1. The business is not completely at the mercy of market forces.The framework of management accounting is based on a number of implied assumptions. and capital budgeting models. in order to improve decision‑making and operating results. Planning and control techniques which management may use include business budgeting. whatever form the goal takes. will evaluate performance through the use of flexible budgets and variance analysis. Effective decision‑making requires relevant information and special analysis of data.
Like Material . The management accountant need not provide information beyond the relevant range of activity. Labor etc
Mixed Cost/Semi Variable Costs: These are those cost the part of which is remain fixed and some part of the cost is variable. Each specific 18 | CHAPTER TWO • Management Accounting and Decision-Making managerial technique requires an identifiable type of information. Nature of Accounting Information .In order for the accounting department to make meaningful analysis of data. Some but not all of the information needed by management can be provided from financial statements and historical accounting records. a separation of costs into fixed and variable will be required. The accounting department will be expected to provide the information required by a specific tool. and standards.source of information necessary in making‑decisions.
Variable Costs: These are those costs which change with the change in the number of product units you produce. In order for the accounting department to make many types of analysis. production.
Q. and financial decisions. In addition to historical data. future data. management will expect the management accountant to provide other types of data. Like factory building rent.
Fixed vs. it is necessary to distinguish between fixed and variable costs and other types of costs that are not important in the recording of business transactions. You pay the rent no matter that did you use that building for making the products or not. forecasts.5 State the importance of differentiating between the fixed costs and variable costs in managerial decision?
ANS: Fixed Costs: These are those costs which remain fixed up to certain range of work
capacity no matter how much product you produce within that capacity range. variable costs
. Management will consider the accounting department capable of providing data useful in making marketing. The accounting department is expected to provide information to all levels of management. such as estimates.
.......000 $10. In this case............................ $3 $1 $1 $1.... Examples of the variable costs within a chiropractic business would be supplies used for each patient visit....................................... covers..
Table 1: Examples of fixed and variable costs
Fixed monthly costs Rent.....................Understanding the process of managing costs first requires an understanding of two general types of costs: fixed and variable.................................. yellow page ad fees and loan payments would still be due......... etc. etc........ Yellow pages ad.....000
ne way to determine your fixed costs is to consider the expenses you would continue to incur if you temporarily closed your practice and no patients were being treated............. Total fixed costs..... or sunk costs as they are sometimes called................................).......).... these costs cannot be altered on a short-term basis because of contractual agreements or simply because it is impractical............... collection fees paid to external billing agencies and wages for hourly........... Collections costs (stamps. For example: if the practice grows enough to require additional space or additional employees.. Electricity to operate a roller table......... your rent.. Generally... Doctor’s salary........................... car leases..... Variable costs are those that change as the level of business activity changes............. Variable costs per patient visit Supplies (forms................ Fixed costs. It is important to note that fixed costs are unvarying only within a certain range of business activity........................ These costs are driven primarily by the practice’s business activity.... the fixed costs associated with rent or salaries will change as well..... by number of patients that the practice treats..... are those that generally do not vary between payment intervals.............
... Loan payment........... Office manager’s salary....................................... invoices...100 $400 $500 $3............................................... part-time employees.................. They generally do not change with increases or decreases in business activity..000 $5......
list of external users :those who have economic transactions like
suppliers creditors bankers financial institutions
. shareholders/owners.list of internal
users:1. this practice would only have to charge $15 per patient visit to cover its fixed and variable costs. the practice would have to earn $10.000 in fees plus $5 per patient treated.005 for that one treatment in order to cover its fixed and variable costs! If the practice had 1. (See Table 1 for an example of fixed and variable costs. employees 2.000 in fixed costs plus 1. The variable costs are those that would stop if the practice were closed for a month and no patients were treated at all. its total costs would be $15.000 patient visits at $5 each). Once you understand the difference between fixed and variable costs. Therefore. it would have to charge $10.000 and variable costs of $5 per patient.The “closed practice” test we used above to determine the fixed costs of a practice can also be used to determine the variable costs.6 Identify the users of accounting information?
ANS: There are two types of users( internal and external):. it is important to know how to distinguish one from the other. management 3. For instance.) To cover its monthly expenses.000 ($10.000 patient visits during the month. consider a practice that has fixed costs of $10. If the practice had only one patient visit per month.
* Board of Directors . sell the stock.information to aid in decision to continue or start supplying to the company. (i.underwriters etc potential shareholders
* Management .information that will aid in decision to continue working at the company or look for employment elsewhere.). bankers & other creditors . or purchase the stock.e. maximize profit.requires the information be presented in a very specific manner.information that will aid in decision of whether or not to purchase the bond.information to assist in determination of current executive positions
External users: * IRS . * Supplier .information that will aid in decision continue to hold the stock.
. Bank needs information that will help it determine the company's ability to repay the loan and interest. * Employee (can also be considered internal) .others like
competitors government and regulatory agencies auditors researchers and academicians representatives of others interest like brokers . ways to cut costs.obtain financial information in a way that best suits its needs. * Bondholders. etc. * Stockholders and potentional stockholders .
Explain each application with the help of an example.MBA Semester I MB0042 – Managerial Economics Q. In short.Master of Business Administration . Ans :Income elasticity of demand may be defined as the ratio or proportionate change in the quantity demanded of a commodity to a given proportion change in the income.1 Income elasticity of demand has various applications. Or Where · Ey is income elasticity of demand · D is change in demand · D is original demand · Y is change in income · Y is original income Example Original demand=400 units Original income= 4000 units New demand =700 units New income= 6000 units Change in demand= 700-400= 300 units change in income=6000-4000=2000
. it indicates the extent to which demand changes with a variation in consumer‘s income. Thefollowing formula helps to measure the income elasticity (Ey).
4. 5. If the growth rate of the economy and income growth of the people is reasonable forecasted. When Ey is positive and greater than one.e. higher the income. ( for example jowar. When Ey is negative.5 Generally speaking Ey is positive. This is because there is a direct relationship between income and demand. higher would be the demand and vice versa. equal to zero and negative. On the basis of the numerical value of the co-efficient. salt. E. The concept of ey helps us in classifying commodities in to different categories. Ey is classified as greater than one. in that case it is possible predict expected increase in the sales of a firm and vice versa.g. equal to one.
. beedi etc) 3. the commodity is essential. the commodity is normal (used in day-to-day life) 2.Hence Ey=300/2000*4000/400=1. When Ey is positive. Practical application of income elasticity of demand 1. match box etc. the commodity is neutral. the commodity is inferior. When Ey is zero. When Ey is positive but less than one. i.
1. Helps in determining the rate of growth of the firm. the commodity is luxury. less than one.
formulating marketing strategy. Proper estimation of different degrees of income elasticity of demand for different types of product helps in avoiding over-production or under-production of a firm. Thus. deciding advertising expenditures and nature of distribution channel etc in the long run. One should know whether rise or fall in income is permanent or temporary. It can be in estimating future demand provided the rate of increase in income and Ey for the products are known. Ans :Survey of buyer‘s intention or preference is one of the important methods of demand forecasting. Helps in estimating construction of houses. Q. It is also called ―Opinion Survey Method‖. 3. consumer buyers are requested to indicate their preference and
. 5. Helps in production planning and marketing. 4.2. Under this method. Helps in ensuring stability in production. Thus it helps a lot in managerial decisions of a firm. Helps in the demand forecasting of a firm. it helps in demand forecasting activities of a firm.2 When is the opinion survey method used and what is the effectiveness of the method. The rate of growth in incomes of people also helps in housing programs in a country. The knowledge of Ey is essential for production planning.
what quality they expect. exaggerations. It will be examined thoroughly. Consumers are requested to furnish all relevant and correct information. The success of the survey method depends on many factors:
. Finally a report is prepared and submitted to the management for taking final decisions. Generally. edited and analyzed. It is prepared by an expert body who are specialist in the field or marketing.willingness about a particular product. why. If any bias prejudices. in what quantity. They are about to reveal their future purchase plans with respect to specific items. The materials collected will be classified. They are expected to give answer to question like what items they intends to buy. Inferences are drawn and conclusions are arrived at. The questionnaire is distributed among the consumer either through mail or in person by the company. artificial or excess demand creation are found at the time of answering they would be eliminated. where. It is a comprehensive one covering almost all questions either directly or indirectly in a most intelligent manner. the field surveys are conducted by the marketing research departments of the company or hiring the services of outside research organization consisting of learned and highly qualified professionals. The information so collected will now be consolidated and reviewed by the top executives with lot of experiences. The next step is to collect the questionnaire from the consumers for the purpose of evaluation. The heart of the survey is questionnaire. how much they are planning to spend etc.
The management should not entirely depend on the result of survey reports t project future demand. Consumer behavior 7.1. This method is simple and useful to the producers who produce goods in bulk. Conclusion drawn etc. field surveys should be regularly checked and supervised. The ability of the surveyed. 3. Consumer may not express their honest and real views and as such they may give only the broad trends in the market. It is expensive and so difficult. The representative of the sample 4. Nature of the product 5. 2. 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. at right conclusion. In order to arrive. Preparation of questionnaire is not an easy task. Techniques of analysis 8. The nature of the question asked.
. At best it can be used for short term forecasting. Characteristics of the market 6. Here the burden of forecasting is put on the customers.
‖ Market Equilibrium There are two approaches to market equilibrium viz. Marshall gave equal importance to both demand and supply in the determination of value or price. as whether value is governed by utility or cost of production. He compared supply 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. It is a position of rest characterized by absence of change.. It means a state of even balance in which opposing forces or tendencies neutralize each other. partial equilibrium approach and the general equilibrium approach. Earlier to Marshall. the general equilibrium approach explains the mutual and simultaneous determination of the prices of all goods and factors. Ans The word equilibrium is derived from the Latin word ―aequilibrium‖ which means equal balance.3 Show how price is determined by the forces of demand and supply. by using forces of equilibrium. Thus it explains a multi market equilibrium position. ‖ Thus neither the upper blade nor the lower blade taken separately can
. It is a state where there is complete agreement of the economic plans of the various market participants so that no one has a tendency to revise or alter his decision.Q. there was a dispute among economists on whether the force of demand or the force of supply is more important in determining price. In the words of professor Mehta: ―Equilibrium denotes in economics absence of change in movement. On the other hand. The partial equilibrium approach to pricing explains price determination of a single commodity keeping the prices of other commodities constant.
At this price quantity demanded is equal to the quantity demanded. Equilibrium between demand and supply price: Equilibrium between demand and supply price is obtained by the interaction of these two forces. Thus. both are equally important in the determination of price. But the relative importance of the two may vary depending upon the time under consideration. Price is an independent variable. a rise in price causes a rise in supply and a fall in price causes a fall in supply. Demand and supply are dependent variables. Likewise neither supply alone. Thus the demand 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. They depend on price. Thus the supply curve will have an upward slope. On the other hand supply varies directly with the changes in price. the demand of all consumers and the supply of all firms together determine the price of a commodity in the market. nor demand alone can determine the price of a commodity. a rise in price causes a fall in demand and a fall in price causes a rise in demand. 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 Supply 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
.At a point where these two curves intersect with each other the equilibrium price is established. both have their importance in the process of cutting. Demand varies inversely with price.cut the paper.
On the other hand if the price rises to Rs. there will be no tendency for it to change. Suppose the price falls to Rs.30 the buyer will demand only 5 units while the sellers are ready to supply 25 units. Excess of supply over demand pushes the price downward until it reaches the equilibrium.20 the quantity demanded is equal to the quantity supplied.5 the buyer will demand 30 units while the seller will supply only 5 units. This process will continue till the equilibrium price of Rs. Excess of demand over supply pushes the price upward until it reaches the equilibrium position supply is equal to the demand. Thus the
. Sellers compete with each other to sell more units of the commodity..
In the table at Rs. Since the price is agreeable to both the buyer and sellers. this is called equilibrium price.20 is reached.
Ans: Fixed cost: These costs are incurred on fixed factors like land. competition among the sellers will bring down the price to the equilibrium level where the supply is equal to the demand. Hence. these cost have to be borne by it. these costs are independent of output and are referred to as unavoidable contractual cost. equipments. Marshall called fixed cost as supplementary costs. building. fixed costs in the short run remains constant because the firm does not change the size of plant and the amount of the fixed factors employed. Even if the firm close down its operation for some time temporarily in the short run.interactions of demand and supply forces acting upon each other restore the equilibrium position in the market. OQ is the equilibrium output. but remains in business. At price OP1. Suppose the price OP2 is higher than the equilibrium price OP. Excess demand for goods pushes up the price. plants. this process will go until equilibrium is reached where supply becomes equal to demand.4 Distinguish between fixed cost and variable cost using an example. OP is the equilibrium price. Demand exceeds supply. In the diagram DD is the demand curve. These cost are to be incurred by a firm even output is zero. at this point price quantity demanded is P2D2. superior types of labour. Fixed costs do not vary with either expansion or contraction in output. Q. the buyers will demand P1D1 quantity while the sellers are ready to sell P1S1. Prof. Demand and supply are in equilibrium at point E where the two curves intersect each other. top management etc. Thus D2S2 is the excess supply which the seller wants to push into the market. They include such items as
. SS is the supply curve.
interest on capital borrowed. fuel. However. They are called as over. depreciation and maintenance allowance.head costs because these costs are to incurred whether there is production or not. Prof. These costs are incurred on raw materials. transport. These costs are to be distributed on each units of output produced by a firm. then it will not use the variable factors of production and will not therefore incurs any variable costs. Marshall called variable costs as prime costs or direct costs because the volume of output produced by a firm depends directly upon them. the distinction between the fixed and variable costs is very important in theshort because it influences the average costs behavior of the firm. water etc. license fees. power. If a firm shut down for some times in the short run. insurance premium. In the short run. which directly vary in the short runs.contractual rent payments.
. etc. Total variable cost increases with the level of increase in the level of production and vice-versa. it will have to incur fixed costs but it must cover at least its variable costs. Hence. It is clear from the above description that a production cost consists of both fixed as well as variable costs. Variable costs are directly and proportionately increases or decreases with the level of output. The difference between the two is meaningful and relevant only in the short run. In the long run all costs become variable because all factors of production become adjustable and variable in the long run. Variable Costs: The costs corresponding to variable factors are described as variable costs. ordinary labour. Variable costs are incurred only when some amount of output is produced. property and business taxes. administrative expenses like manager‘s salary or salary of the permanent staff. they are called as indirect costs. even if a firm wants to close down its operation but wants to remain in the business.
It is a common factor to observe that each firm aims at maximizing its growth rate as this goal would answer many of the objectives of a firm.e. Sales maximization objective is explained by Prof. status. job security etc. He
. greater would be the realization of these functions and vice-versa. prestige. market share. i. market shares and sales maximization. volume of profit. On similar lines. Utility function of the manager and that the owner are expressed in the following mannerUo= f [size of output.] In view of Marris the realization of these two functions would depend on the size of the firm. volume of profits. inventory level. position. Prof. Managers have a utility function in which the amount of salary. status. Marris points out that a firm has to maximize its balanced growth rate over a period of time. public esteem etc. cash reserve etc. prestige and security of job etc are the most import variable where as in case of are more concerned about the size of output. power. Marris has developed another alternative growth maximization model in recent years.] Um= f [salaries. Larger the firm.Q. capital. Boumal. Marris assumes that the ownership and control of the firm is in the hands of two groups of people. Size of the firm according to Marris depends on the amount of corporate capital which includes total volume of the asset. power. owner and managers.5 Discuss Marris Growth Maximization model ? Profit maximization is traditional objective of a firm. He further points out that both of them have two distinctive goals.
6 Explain how fiscal policy is used to achieve economic stability. 2. introduces new additional taxes. and extends the tax-nets. Generally managers like to stay in a grouping firm. It should follow a rational consumption policy reduces the MPC and raises the MPS.further points out that the managers always aim at maximizing the rate of growth of the firm rather than growth in absolute size of the firms. fiscal policy has to play a positive and constructive role both in developed and developing nations. Profit earning capacity of public sector units are to be raise substantially to mopup financial resources.
. To act as a saver: 1. careful planning is needed in its allocation so as to achieve the set targets. The specific role to be played by fiscal policy can be discussed as follows: To act as optimum allocator of resources: As most of the resources are scarce in their supply. Ans: In order to achieve a stable economic condition. The government should borrow more money both in the country and outside the country. Higher growth rate of the firm satisfy the promotional opportunity of managers and also the share holders as they get more dividends. 3. Rational allocation would ensure fulfillment of various objectives. 4.
Q. Taxation policy has to be modified to raise the rates of old taxes.
Extreme levels of both inflation and deflation would disrupt and disturb the normal and regular working of an economic system. Hence all measures are to be taken to check these two dangerous situations so as to create necessary congenial atmosphere to prepare the background for rapid economic growth. · To act as an investor: Mere mobilization of financial resources is not an end in itself. certainly. Hence. Hence all measure to be taken to ensure economic stability. · To act as price stabilizer: price stability is of paramount of importance in an economy. · To act as balancer: There must be proper balance between aggregate saving and
. This would come in the way of stable and persistent growth. fiscal policies have to be ensuring higher volume of investment in both private and public sectors. it would undermine and disturb the growth process. It should result in the creation of real resources which are more important in accelerating the growth process. Instability would come in the way of persistent and consistent growth in a country. Higher the rate of interest are to be offered for government bonds and security. If an economy is subject to frequent fluctuation in the form of trade cycle. Rapid economic growth depends upon the volume of investment. convert them in to investment and create more employment opportunity to absorb the huge unemployed man power. · To act as an employment generator: Fiscal policy should help in mobilizing more financial resources.5. Upswing and downswing in the level of economic activities are to be avoided. · To act as an economic stabilizer: Price stability would create the necessary background for over all economics stability.
demand and supply. production. Hence. then it is possible to have a satisfactory. fiscal policy is to be designed in such a manner so as to promote higher growth in an economy. To act as growth promoter: The basic objective of any economic policy is to ensure higher economic growth rates. Thus. · To act as stimulator of living standards of people: the final objective is to raise the level of living standards of the people. This is possible when a rational taxation and public expenditure policy is adopted. · To act as in come redistribute: Fiscal policy has to minimize inequalities and ensure distributive justice in an economy. contended and peaceful life. If there is economic prosperity. Hence. fiscal policy has to play a major role in promoting economic growth in a country. income and employment leading to higher purchasing power in the hands of common man. Any sort of imbalance would result in either surpluses or scarcity in different sectors of the economy leading to fast growth in some sectors followed by lagging of some other sectors.aggregate investment. This is possible when there is higher output. income and output and expenditure. investment. fiscal policy should help in creating more wealth in the economy. employment and income. inequality is to be reduced to the minimum.
. More money is collected from richer section of the society through various imaginative taxation policies and a larger amount of money is to be spent in favor of poorer sections of the society. economic overhead capital and social overhead capital etc. This is possible when there is higher national savings. Thus.
directed mainly at management. While on the other hand. being concerned with directly assisting an organization to gain sustained competitive advantage. personnel management has never totally identified with management interests.Master of Business Administration-MBA Semester I Subject Code – MB0043 Subject Name – Human Resource Management Q. management development etc. just as sales representatives have to understand and articulate the aspirations of the customers. concerned primarily with carrying out the day-to day people management activities. HRM is strategic in nature. in terms of devolving the responsibility of HRM to line management. justifying management‘s actions etc.1 Write down the difference between Personnel management and Human Resource management. HRM is resource –centered. • Personnel Management is basically an operational function. that is. arranging for them to be paid. as it becomes ineffective when not able to understand and articulate the aspirations and views of the workforce. such as finding and training them. While on the other hand. directed mainly at the organization‘s employees. explaining management‘s expectations.
. • Although indisputably a management function.[10 Marks] Ans • Personnel management is workforce centred.
. Whereas personnel management is about the maintenance of personnel and administrative systems.2 Write a note on scope of HR in India. The FDI (foreign direct investment) went up steeply as the world saw the potential in the country‘s human resources. and the management of change. followed by other developed countries. new employment terms and most importantly increased focus on individual performance and outcomes. New hiring methods. Another transformation that the Indian workplace witnessed was the focus on ethics and ethical practices in doing business. [10 Marks] Ans Its only in the past 10-12 years with the immense growth on account of the
IT industry that winds of change began to blow. India became a preferred location for MNC‘s primarily from the USA. It was only fair to expect that with the weak legal system. MNC‘s (multinational companies) started up their operations in India.HRM is more proactive than Personnel Management. it needed the support of the government policies and the corporate policies to beat the corruption that existed. new ways of paying salaries. HRM is about the forecasting of organizational needs. The gave birth to a new generation of management as well as HRM practices. Given the highly educated workforce there was a de-emphasis in the role of the trade unions. Q. the continual monitoring and adjustment of personnel systems to meet current and future requirements. There was emphasis on deliverables and linking individual and team performance to business results and success. The era of the trade union dominance gave way to the new order of individual negotiated salaries and terms and clearly performance linked assessment systems. It was largely the advent of the Information Technology era in India that brought with it the western management practices.
Hence. The levers of (a) low cost. and (c) English as the medium of education and it being the corporatelanguage: were the key drivers that enabled the flow of global business to India. While there is a lot of work happening in the Indian education system to promote this. Together they stepped up to face the challenge head-on and to win not only in India but also globally. to a more collaborative and participative approach. it is going to take a while before it can create a distinct body of knowledge that is referenceable. There was exponential growth in employment both directly (jobs in the international and domestic companies) as well as indirectly (as support industries like transport. the Indian employee and his manager evolved. The simultaneous investment of the government in building the necessary infrastructure did its share of providing impetus towards creating more jobs for the people of the country. were challenged by the globalization that swept in with the liberalization policies and measure brought in by the Indian government late 1995 and onwards.This has significantly contributed to India emerging as a preferred destination for doing business. What is currently acting as a limitation is the enhanced awareness on the need for research based HRM practices. sheltered market and hardly face challenges. (b) highly skilled. The entrepreneurs who earlier operated in a secure. The professional manager brought about a shift in the culture from a highly authoritarian approach of getting work done. Despite the challenges. human relations movement in India has evolved very differently as compared to what we see in the developed economies of the USA and the UK. For now the industry relies on emulating westerns HR practices and customizing on a as-needed basis for the Indian corporation. All of this has yielded to give way to the birth of the ‗professional manager‘ Professional managers today are a critical and essential part of the Indian corporate. catering and ancillary industries). For the rest the industry forums and consortiums like the
. taking into account both internal activities and factors in theexternal environment. Q. So far this has been successful and working to the advantage of the Indian corporate. skill requirements and number and types of personnel required.
policies etc.3 Explain the critical steps in Human Resource Planning system . The approach however remains analytical and less prescriptive. at the right time.NASSCOM act as a hub bringing together organizations on a regular basis to discuss challenges and share best practices and identify ways and means o overcome them together. that generates changes in the job content. The need and importance of HRP is as follows: determining the future manpower requirements and avoids problems like over staffing or understaffing in the organization.[10 Marks] Ans Human Resource planning can be defined as a process by which an organization ensures thatit has the right number and kinds of people.
Need and Importance of HRP Human resource Planning translates the organization objectives and plans into the number of workers needed to meet these objectives. capable ofeffectively and efficiently completing those tasks that will help the organization achieve itsoverall objectives or in other words HRP can be defined as planning for the future personnelneeds of an organization. Leading MNC research and consulting firms like Mercer and Hewitt too contribute to the industry through carrying out research and sharing reports on a regular basis. at the right place.
the HR manager has to attract and retain qualified and skilledpersonnel and also required to deal with issues like career development.
Factors affecting Human Resource Planning
HRP is a dynamic and on going process.
employment and promotional appointments to the candidates fro weaker sections. physically handicapped and socially and politically oppressed citizens. selection. For e.
adopted by it.g.staff becomes redundant.
assignments to develop managers and to ensure the organization has a steady supply of experienced and skilled employees. since HRP is influenced by many factors.
. which are as follows:
of staff needed. layoffs. training and development and performance appraisal.
execution of personnel functions like recruitment.
turn will facilitate reduction in personal costs. promotions. the growth of a business calls for hiring of additional labour. while mergers will need a plan for layoffs. The process of updating is not very simple. transfers. successionplanning for which he takes the help of HRP.
-term plans are adopted. successionplanning.
factor influencing HRP.
Limitations of Human Resource Planning s of an organization. And this time span is based on the degree of environmental uncertainties.
. So these are some of the factors that affect the human resource planning. Accurate and timely human resource information system helps in getting better quality personnel.
approach and at the same time are conscious about the changing environment.carefully formulate the HR policies and so the HR manager has to evolve suitablemechanism to deal with uncertainties through career developments. as future is always uncertain. ensure that suitable candidates should be appointed at the right kind of job. retirement schemes etc.
Thefollowing external resources are available for firms: a)Advertising: There is a trend toward more selective recruitment in advertising. and the jobspecification can be included in the ad to permit some self-screening. it providesflexibility and greater control over career progress. the guidelines for companies include: -Good or better in most recent performance review -Dependable attendance record -Not under probationary sanction -Having been in present position for at least one year The personnel department acts as a clearing house in screening applications that areunrealistic. forexpansion. From the view point of employee. group emails and publishing in internal news papers. increasing the general level of morale.
.internal and external.A job posting has number of advantages. more information about the company. Filing a job opening from within the firm has advantages of stimulating preparation for possible transfer of promotion. Secondly. First advertisements can be placed in media read only byparticular groups. and positions whose specifications cannot be met by the present personnel. Internal applications often restricted to certain employees.4 List and explain the sources of recruitment? [10 Marks] Ans : The sources of employee‘s recruitment can be classified into two types. the job. and providing moreinformation about job candidates through analysis of work histories within the organisation. preventing an excess number of bids by a single employee and counsellingunsuccessful employees in their constant attempt to change their jobs. This canbe affected in at least two ways. Similarly the firm may go to external sources for recruitment of lower entry jobs.Q. The jobs posted on notice boards.
however. Today. constitute a much-used source of personnel. This method of recruitment. the public employment agencies in several states are well-regarded.e. When the labour market is very tight. Some companies maintain aregister of former employees whose record was good to contact them when there are newjob openings for which they are qualified. c)Employee Referrals: Friends and relatives of present employees are also a good source from which employees may be drawn. f)Casual applicants: Unsolicited applications. however. colleges and professional institutions: These offer opportunities for recruiting their students. suffersfrom a serious defect that it encourages nepotism.Persons of one‘s community orcaste are employed. in contrast to their formerunsavoury reputation. both public and private. These can be developed through
. who may or may not be fit for the job. This has disadvantage of monopolistic workforce. both at the gate and through the mail. The prospective employers can reviewcredentials and interview candidates for management trainees or probationers. They will also have separate placement cell where the bio data and otherparticulars of the students are available. d)Schools. In thetechnical and professional areas.b)Employment Agencies: Additional screening can be affected through the utilization of employment agencies. i.particularly in the fields of unskilled semi-skilled and skilled operative jobs. the private agencies tend to specialize in aparticular engineer. This is anexcellent source of potential employees for entry-level positions in the organisations e)Labour Unions: Firms which closed or union shops must look to the union in their recruitment efforts. largeemployers frequently offer their employees bonus or prizes for any referrals that are hiredand stay with the company for a specific length of time.
or may send unsolicited applications. Professors are invited to take part of these seminars. j)Nepotism:the hiring of relatives will be an inevitable component of recruitment programmes in family-owned firms. Visits to plants arearranged so that professors may be favourably impressed. insurance and any other fringe benefits. marketing and production engineers‘ posts. k)Leasing: to adjust to short term fluctuations in personnel needs. h)Indoctrination seminars for colleges are arranged to discuss the problem of companies and employees. such a policy does not necessarily coincide withhiring on the basis of merit. This principle has been particularlywell developed in the office administration field because they can avoid any obligation inpensions.attractive employment office facilities. the possibility of leasingpersonnel by the hour or day should be considered. These firms are looked upon as headhunters. These consulting firms recommend persons of high calibre formanagerial. g)Professional organisations or recruiting firms or executive recruiters:Maintain complete records about employed executives. This would be helpful to firms for futurevacancies.
. They may speak well of acompany and help it in getting the required personnel. prompt and courteous reply to unsolicited letters. but interest and loyalty to the enterprise are offsettingadvantages. raiders and pirates by organizations may employ ―executive search firms‖ to helpthem find talent. i)Unconsolidated applications: for positions in which large numbers of candidates are notavailable from other sources. the companies may gain keeping files of applicationsreceived from candidates who make direct enquiries about the possible vacancies on theirown.
This method is very useful in identifying candidates for hard-t-fit positionswhich calls for unusual combinations of skills. Inresponse to advertisements. widowed or married women. jobspecifications and requirements are fed to computers. social organisations might also provideemployees – handicaps.5 Describe the grievance handling procedure. retired hands etc. where they are matched againstdata stored in. m)Computer Data Banks: when a company desires a particular type of employees.l)Voluntary Organisations: Such as private clubs. ensure that the employee can raise the grievance with someone else
listen carefully to the person's explanation of the problem and consider whether there is a deeper issue which might be the root cause of the grievance
listen to any conflicting points of view weigh up all evidence to see whether there is an issue you need to address decide what action to take. Ans Handling a grievance When dealing with a grievance:
ensure you're familiar with the procedure and apply it correctly hold any grievance hearing in private without interruptions where a grievance relates to the person's line manager. trying to balance fairness to the person without compromising the business or other workers
inform all concerned parties of your decision and the appeal process
. old persons. Q.
It provides the clear guidelines and develops the training program in less time because objectives focus specifically on needs. procedures or conduct where the grievance procedure highlights these
keep the process as confidential as possible
Deal with grievances sensitively. you're much less likely to lose valued and skilled staff through resignation.
. Consider also having a separate "whistleblowing" procedure. If a worker raises a separate grievance during a disciplinary hearing.
ensure you resolve any problems relating to policies. internally rather than disclosing them outside the business. You may wish to develop specific procedures for very sensitive matters involving unfair treatment eg. It will also help you successfully defend a constructive dismissal claim. . so that workers are encouraged to raise any complaints about wrongdoing eg fraud. While some people think of training objective as a waste of valuable time. Q 6 what are objectives of training? Ans Training objectives are one of the most important parts of training program. By dealing with problems in a fair and reasonable manner. It helps in adhering to a plan. The counterargument here is that resources are always limited and the training objectives actually lead the design of training. discrimination. bullying or harassment. particularly where they concern other workers. it's good practice to adjourn the hearing until the grievance is dealt with.
. Training objectives are of great significance from a numberofstakeholderperspectives.
1.Training objective tell the trainee that what is expected out of him at the end of the training program.Trainee 3. Also. trainer comes in a position to establish a relationship between objectives and particular segments of training.Designer 4.Evaluator Trainer – The training objective is also beneficial to trainer because it helps the trainer to measure the progress of trainees and make the required adjustments.Trainer 2.
Trainee – The training objective is beneficial to the trainee because it helps in reducing the anxiety of the trainee up to some extent. rather than keeping it surprise. such as verbal and non verbal language. training equipments.
Thirdly. Therefore. Therefore. it helps in increase in concentration. The objectives create an image of the training program in trainee‘s mind that actually helps in gaining attention. and training content accordingly to achieve those objectives. planning always helps in dealing effectively in an unexpected situation. which is the crucial factor to make the training successful. the designer will design a training prog that will include ways to improve the interpersonal skills. Since the objective is known. it is important to keep the participants aware of the happenings. the objective of one training program is to deal effectively with customers to increase the sales. dealing in unexpected situation i. when there is a defect in a product or when a customer
. training objectives helps in increasing the probability that the participants will be successful in training.
Secondly.e. Furthermore. if the goal is set to be challenging and motivating. Consider an example.
Designer – The training objective is beneficial to the training designer because if the designer is aware what is to be achieved in the end then he‘ll buy the training package according to that only. The training designer would then look for the training methods. Not knowing anything or going to a place which is unknown creates anxiety that can negatively affect learning. then the likelihood of achieving those goals is much higher than the situation in which no goal is set.
. Training objective is an important to tool to judge the performance of participants. Evaluator – It becomes easy for the training evaluator to measure the progress of the trainees because the objectives define the expected performance of trainees. the training may not be designed appropriately. without any guidance. Therefore.angry.