MANAGERIAL ECONOMICS (Assignment set-2

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Ans. no.1

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INCOME ELASTICITY OF DEMAND Income elasticity of demand may be defined as the ratio or proportionate change in the quantity demanded of a commodity to a given proportionate change in the income. In short, it indicates the extent to which demand changes with a variation in consumers income. The following formula helps to measure Ey. Percentage change in demand EY = Percentage change in income Symbolically EY ∆D ------ X ∆Y Y --D 300 4000 ------ X ------- =1.5 2000 400

Original demand = 400 units Original Income = 400000 New demand = 700 units New Income = 600000 Generally speaking, Ey is positive. This is because there is a direct relationship between income and demand, i.e. higher the income; higher would be the demand and viceversa.On the basis of the numerical value of the coefficient,Ey is classified as greater than one, less than one, equal to one,equal to zero, and negative. The concept of Ey helps us in classifying commodities into different categories. 1. When Ey is positive, the commodity is normal [used in daytodaylife] 2. When Ey is negative, the commodity is inferior. .For example Jowar, beedi etc. 3. When Ey is positive and greater than one, the commodity is luxury. 4. When Ey is positive, but less than one, the commodity is essential. 5. When Ey is zero, the commodity is neutral e.g. salt, match box etc. Practical application of income elasticity of demand 1. Helps in determining the rate of growth of the firm. If the growth rate of the economy and income growth of the people is reasonably forecasted, in that case it is possible to predict expected increase in the sales of a firm and viceversa. 2. Helps in the demand forecasting of a firm. It can be used in estimating future demand provided the rate of increase in income and Ey for the products are known. Thus, it helps in demand forecasting activities of a firm. 3. Helps in production planning and marketing

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The knowledge of Ey is essential for production planning, formulating marketing strategy, deciding advertising expenditure and nature of distribution channel etc in the long run. 4. Helps in ensuring stability in production Proper estimation of different degrees of income elasticity of demand for different types of products helps in avoiding overproductionor under production of a firm. One should also know whether rise or fall in come is permanent or temporary. 5. Helps in estimating construction of houses. The rate of growth in incomes of the people also helps in housing programs in a country. Thus, it helps a lot in managerial decisions of a firm.

End of answer no.1 ------------------------------------------------------------------------------------------------------- Ans. no.2

Opinion survey method & its effectiveness. This is a variant of the survey method. This method is also known as ―Sales – force polling‖ or ―Opinion poll method‖. Under this method, sales representatives, professional experts and the market consultants and others are asked to express their considered opinions about the volume of sales expected in the future. The logic and reasoning behind the method is that these salesmen and other people connected with the sales department are directly involved in the marketing and selling of the products in different regions. Salesmen, being very close to the customers, will be in a position to know and feel the customer‘s reactions towards the product. They can study the pulse of the people and identify the specific views of the customers. These people are quite capable of estimating the likely demand for the products with the help of their intimate and friendly contact with the customers and their personal judgments based on the past experience. Thus, they provide approximate, if not accurate estimates. Then, the views of all salesmen are aggregated to get the overall probable demand for a product. Further, these opinions or estimates collected from the various experts are considered, consolidatedand reviewed by the top executives to eliminate the bias or optimism and

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pessimism of different salesmen. These revised estimates are further examined in the light of factors like proposed change in selling prices, product designs and advertisement programs, expected changes in the degree of competition, income distribution, population etc. The final sales forecast would emerge after these factors have been taken into account. This method heavily depends on the collective wisdom of salesmen, departmental heads and the top executives. It is simple, less expensive and useful for short run forecasting particularly in case of new products. The main drawback is that it is subjective and depends on the intelligence and awareness of the salesmen. It cannot be relied upon for long term business planning.

End of the answer no.2 ---------------------------------------------------------------------------------------------------------- Ans. no.3 Forces of Equilibrium between demand and supply pricing determination: Equilibrium between demand and supply price is obtained by the interaction of these two forces. Price is an independent variable. Demand and supply are dependent variables. They depend on price. Demand varies inversely with price, a rise in price causes a fall in demand and a fall in price causes a rise in demand. Thus the 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. On the other hand supply varies directly with the changes in price, a rise in price causes a rise in supply and a fall in price causes a fall in supply. Thus the supply curve will have an upward slope. At a point where these two curves intersect with each other the equilibrium price is established. At this price quantity demanded equals the quantity supplied. This we can explain with the help of a table and a diagram

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In the table at Rs. 20 the quantity demanded is equal to the quantity supplied. Since this price is agreeable to both the buyers and the sellers, there will be no tendency for it to change; this is called the equilibrium price. Suppose the price falls to Rs.5 the buyers will demand 30 units while the sellers will supply only 5 units. Excess of demand over supply pushes the price upwards until it reaches the equilibrium position where supply is equal to demand. On the other hand if the price rises to Rs. 30 the buyers will demand only 5 units while the sellers are ready to supply 25 units. Sellers compete with each other to sell more units of the commodity. Excess of supply over demand pushes the price downwards until it reaches the equilibrium. This process will continue till the equilibrium price of Rs. 20 is reached. Thus the interactions of supply and demand forces acting upon each other restore the equilibrium position in the market. In the diagram DD is the demand curve, SS is the supply curve. Demand and supply are inquilibrium at point E where the two curves intersect each other. OQ is the equilibrium output. OP is the equilibrium price. Suppose the price is higher than the equilibrium price i.e. OP2. At this price quantity demanded is P2 D2, while the quantity supplied is P2 S2. Thus D2 S2 is the excess supply which the sellers want to push off in the market, competition among sellers will bring down the price to the equilibrium level where the supply is just equal to the demand. At price OP1, the buyers will demand P1D1 quantity while the sellers are prepared to sell P1S1. Demand exceeds supply. Excess demand for goods pushes up the price; this process will go on until the equilibrium is reached where supply becomes equal to demand. End of the answer no.3 -----------------------------------------------------------------------------------------------------------

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Ans. no.4

Fixed costs and variable costs. Fixed costs are those costs which do not vary with either expansion or contraction in output.They remain constant irrespective of the level of output. They are positive even if there is no production. They are also called as supplementary or over head costs. Variable costs are those costs which directly and proportionately increase or decrease with the level of output produced. They are also called as prime costs or direct costs. 1. Fixed Costs:- Fixed costs are those factors the quantity of which remains constant irrespective of the level of output produced by a firm. For example, land, buildings, machines, tools, equipments, superior types of labor, top management etc. 2. Variable Costs:- Variable inputs are those factors the quantity of which varies with variations in the levels of output produced by a firm For example, raw materials, power, fuel, water, transport and communication etc. The distinction between the two will hold good only in the short run. In the long run, all factor inputs will become variable in nature. Short run is a period of time in which only the variable factors can be varied while fixed factors like plants, machineries, top management etc would remain constant. Time available at the disposal of a producer to make changes in the quantum of factor inputs is very much limited in the short run. Long run is a period of time where in the producer will have adequate time to make any sort of changes in the factor combinations. It is necessary to note that production function is assumed to be a continuous function, i.e. it is assumed that a change in any of the variable factors produces corresponding changes in the out put. Generally speaking, there are two types of production functions. They are as follows.

End of the answer no.4

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Ans. no.5.

Marris Growth Maximization Model:Profitmaximization is a traditional objective of a firm. Sales maximization objective is explained by Prof. Boumal. On similar lines, Prof. Marris has developed another alternative growth maximization model in recent years. 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. A growth rate is a better yardstick to measure the success of a firm. Growth depends on the volume of investment. Investment depends on capital availability. Capital may come from either internal or external source. External source of capital is costly where as internal generation of funds is economical. Generation of internal capital depends on profit making capacity of a firm. Hence, profit maximization would automatically lead to growth maximization. It is for this reason, Marris points out that a firm has to maximize its balanced growth rate over a period of time. Marris assumes that the ownership and control of the firm is in the hands of two groups of people, ie, owners and managers. He further points out that both of them have two distinctive goals. Managers have a utility function in which the amount of salary, status, position, power, prestige and security of job etc are the most important variables where as in case of owners are more concerned about the size of output, volume of profits, market share and sales maximization etc. Utility function of the managers and that the owners are expressed in the following mannerUo = f [size of output, market share, volume of profit, capital, public esteem etc] Um = f [salaries, power, status, prestige, job security etc]. In view of Marris the realization of these two functions would depend on the size of the firm. Larger the firm, greater would be the realization of these functions and viceversa. Size of the firm according to Marris depends on the amount of corporate capital which includes total volume of assets, inventory levels, cash reserves etc. He 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 firm. Generally managers like to stay in a growing firm. Higher growth rate of the firm satisfy the promotional opportunities of managers and also the share holders as they get more dividends. Marris identifies two constraints in the rate of growth of a firm.1. There is a limit up to which output of a firm can be increased more economically, limit to manage the firm efficiently, limit to employ highly qualified and experienced managers, limit to research and development and innovation etc. 2. The ambition of job security puts a limit to the growth rate of the firm itself deliberately. If growth reaches the maximum, then there would be no opportunity to expand further and as such the managers may loose their jobs. Rapid growth and financial soundness should go together.

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Managers hesitate to take unwanted risks and uncertainties in the organization at the cost of their jobs They would like to avoid risky investment projects, concentrate on generating more internal funds and invest more finance on only those products and services which brings more profits Hence, managers would like to seek their job security through adoption of a cautious and prudent financial policy. He further points out that a high riskloving management would like to maintain a relatively low amount of cash on hand and invest more on business, borrow more external funds and invest more in business expansion and keep a low profit levels. On the other hand, a highly riskaverting management may have exactly opposite policy. Ultimately, it is the job security which puts a constraint on business decisions by the managers.The Marris growth maximization model. highlights on achieving a balanced growth rate of a firm.Maximum growth rate [g] is equal to two important variables1. The rate of demand for the products [gd] 2. 2. Growth rate of capital[gc] Hence, Max g = gd = gc. The growth rate of the firm depends on two factorsa] the rate of diversification [d]and b] the average profit margin. The diversification rate depends on the number of new products introduced per unit of time and the rate of success of new products in the market. The success of new products is determined by its changes in fashion styles, consumption habits, the range of products offered etc. More over diminishing marginal returns would operate in any business and as such there is a limit to diversification. Similarly, market price of the given product, availability of alternative substitute products and their relative prices, publicity, propaganda and advertisements, R&D expenses and utility and comparative value of the product etc would decide the profit ratio. Higher expenditure on sales promotion and R&D would certainly reduce profits level as there are limits to them. The rate of capital growth is determined by either issue of new shares to obtain additional funds and external funds and generation of more internal surplus. Generally a firm would select the last one to avoid higher degrees of risks in the business. The Marris model states that in order to maximize balanced growth rate or reach equilibrium position, there should be equality between the growth rate in demand for the products and growth rate in supply of capital. This implies the satisfaction of three conditions. 1. The management has to maintain a low liquidity ratio, ie, liquid asset / total assets. But this ratio should not create any financial embarrassment to meet the required payments to all the concerned parties. 2. The management has to maintain a high ratio between a debt / asset so that it will have enough money to invest in order to stimulate growth.

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3. The management has to keep a high level of retained profits for further expansion and development but it should not displease the share holder by giving low dividends. In this case, the mangers would maximize their utility function and the owners would maximize their utility functions. The managers are able to get their job security with a high rate of growth of the firm and share holder would become happy as they get higher amount of dividends.

End of the answer no.5 ---------------------------------------------------------------------------------------------------------- Ans. no.6.

Fiscal Policy:Fiscal policy is an important part of the over all economic policy of a nation. It is being increasingly used in modern times to achieve economic stability and growth throughout the world. Lord Keynes for the first time emphasized the significance of fiscal policy as an instrument of economic control. It exerts deep impact on the level of economic activity of a nation. Meaning The term ―fisc‖ in English language means ―treasury‖, and as such, policy related to treasury or government exchequer is known as fiscal policy. Fiscal policy is a package of economic measures of the government regarding its public expenditure, public revenue, public debt or public borrowings. It concerns itself with the aggregate effects of government expenditure and taxation on income, production and employment. In short it refers to the budgetary policy of the government.

Definitions 1. In the words of Ursula Hicks, ― Fiscal policy is concerned with the manner in which all the different elements of public finance, while still primarily concerned with carrying out their own duties [as the first duty of a tax is to raise revenue] may collectively be geared to forward the aims of economic policy‖. 2. Gardner Ackley points out, ―Fiscal policy involves alterations in government expenditures for goods and services or the level of tax rates. Unlike monetary policy,

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these measures involve direct government interference in to the market for goods and services [in case of public expenditure] and direct impact on private demand [in case of taxes]. Instruments Of Fiscal Policy 1 Public Revenue: It refers to the income or receipts of public authorities. It is classified into two parts Taxrevenue and nontax revenue. Taxes are the main source of revenue to a government. There are two types of taxes. They are direct taxes like personal and corporate income tax, property tax and expenditure tax etc and indirect taxes like customs duties, excise duties, sales tax now called VAT etc. Administrative revenues are the biproducts of administrate functions of the government. They include Fees, license fees, price of public goods and services, fines, escheats, special assessment etc.

End of the answer no.6 ------------------------------------------------------------------------------------------------------End of the assignment Set-2 -----------------------------------------------------------------------------------------------------------

Page 1of 11 Human Resource Management(Assignment Set-2)  Answer No.1:-

Sources of Recruitment The sources of employees can be classified into two types, internal and external. Filling a job opening from within the firm has the advantages of stimulating preparation for possible transfer of promotion, increasing the general level of morale, and providing more information about job candidates through analysis of work histories within the organization. A job posting has a number of advantages. From the view point of the employee, it provides flexibility and greater control over career progress. For the employer, it should result in better matches of employee and job. In most instances, the jobs are posted on notice boards, though some carry listings in the company newspapers. The posting period is commonly 1 week, with the final decision for hiring being completed within 4 weeks. Internal applications are often restricted to certain employees, the guidelines for one company including (1) "good" or "better" on most recent performance review; (2) dependable attendance record; (3) not under probationary sanction; and (4) having been in present position for 1 year. The present supervisor must at some time be informed of his or her subordinate's interest in another job. Some require immediate notification, while others inform only if the employee becomes a prime candidate for the listed opening. The personnel unit acts as a clearing house in screening applications that are unrealistic, preventing an excessive number of bids by a single employee, and counselling employees who are constantly unsuccessful in their attempt to change jobs. Inevitably, the firm must go to external sources for lower entry jobs, for expansion, and for positions whose specifications cannot be met by present personnel. Thus the firm has a number of outside sources available, among which are the following: 1. Advertising: There is a trend toward more selective recruitment in advertising. This can be effected in at least two ways. First, advertisements can be placed in media read only by particular groups. Secondly, more information about the company, the job, and the job specification can be included in the ad to permit some selfscreening. 2. Employment Agencies: Additional screening can be affected through the utilization of employment agencies, both public and private. Today, in contrast to their former unsavoury reputation, the public employment agencies in several States are wellregarded, particularly in the fields of unskilled semiskilled and skilled operative jobs. In the technical and professional areas, however, the private agencies appear to be doing most of the work. Many private agencies tend to specialize in a particular type of worker and job, such as sales, office, executive or engineer.

Page 2 of 11 3. Employee Referrals: Friends and relatives of present employees are also a good source from which employees may be drawn. When the labour market is very tight, large employers frequently offer their employees bonus or prizes for any referrals that are hired and stay with the company for a specific length of time. Some companies maintain a register of former employees whose record was good to contact them when there are new job openings for which they are qualified. This method of recruitment, however, suffers from a serious defect that it encourages nepotism, i.e. persons of one's community or caste are employed, who may or may not be fit for the job. 4. Schools, Colleges and Professional Institutions: Offer opportunities for recruiting their students. They operate placement services where complete biodata and other particulars of the students are available. The companies that need employees maintain contact with Guidance Counsellors of Employment Bureaus and teachers of business and vocational subjects. The prospective employers can review Credentials and interview candidates for management trainees or probationers. Whether the education sought involves a higher secondary certificate, specific vocational training, or a college background with a bachelor's, masters' or doctoral degree, educational institutions provide an excellent source of potential employees for entrylevel positions in organizations. These general and technical/ professional institutions provide bluecollar applicants, whitecollar and managerial personnel. 5. Labour unions: Firms with closed or union shops must look to the union in their recruitment efforts. Disadvantages of a monopolistically controlled labour source are offset, at least particularly, by savings in recruitment costs. With onefifth of the labour force organized into unions, organized labour constitutes an important source of personnel. 6. Casual applicants: Unsolicited applications, both at the gate and through the mail, constitute a muchused source of personnel. These can be developed through provision of attractive employment office facilities and prompt and courteous replies to unsolicited letters. 7. Professional organizations or recruiting firms or executive recruiters: maintain complete information records about employed executives. These firms are looked upon as 'head hunters', 'raiders' and 'pirates' by organizations which lose personnel through their efforts. However, these same organizations may employ "executive search firms" to help them find talent. These consulting firms recommend persons of high calibre for managerial, marketing and production engineers' posts. 8. Indoctrination seminars for colleges professors are arranged to discuss the problem of companies and employees. Professors are invited to take part in these seminars. Visits to plants and banquets are arranged so that the participant professors may be favourably impressed. They may later speak well of a company and help it in getting the required personnel.

Page 3 of 11 9. Unconsolidated applications: For positions in which large numbers of candidates are not available from other sources, the companies may gain keeping files of applications received from candidates who make direct enquiries about possible vacancies on their own, or may send unconsolidated applications. The information may be indexed and filed for future use when there are openings in these jobs. 10. Nepotism: The hiring of relatives will be an inevitable component of recruitment programmes in familyowned firms, such a policy does not necessarily coincide with hiring on the basis of merit, but interest and loyalty to the enterprise are offsetting advantages. 11. Leasing: To adjust to shortterm fluctuations in personnel needs, the possibility of leasing personnel by the hour or day should be considered. This practice has been particularly welldeveloped in the office administration field. The firm not only obtains welltrained and selected personnel but avoids any obligation in pensions, insurance, and other fringe benefits. 12. Voluntary organizations: such as private clubs, social organizations might also provide employees – handicaps, widowed or married women, old persons, retired hands, etc., in response to advertisements. 13. Computer data banks: When a company desires a particular type of employee, job specifications and requirements are fed into a computer, where they are matched against the resume data stored therein. The output is a set of resumes for individuals who meet the requirements. This method is very useful for identifying candidates for hardtofill positions which call for an unusual combination of skills.

End of answer no.1 -----------------------------------------------------------------------------------------------------------

Answer No.2:

Objectives of Training The chief aim of formal education for the manager is to increase his ability to learn from experience. The second aim is to increase his ability to help his subordinates learn from experience. According to Douglas McGregor, there are three different purposes of learning.

Page 4 of 11 1. Acquiring Intellectual Knowledge: An electrical engineer may need more knowledge than he now possesses about circuit design. A new employee may require 2. knowledge about company policies. A foreman may require information about the new provisions in the labour agreement. The acquisition of knowledge is a fairly straightforward process provided the individual wants the new knowledge. It can be made available to him in several ways. However, if he does not want the knowledge, there is considerable difficulty getting him to learn it. In industry, attempts should be made to create a 'felt need' for new knowledge. 2. Acquiring Manual Skills: The acquisition of a manual skill requires practice or experience accompanied by feedback pure trial and error learning can be speeded up by guidance but the individual cannot learn unless he performs and receives clues which tell him about the success of his efforts. The necessary effort will be expanded only if there is a feltneed on the part of the learner. 3. Acquiring ProblemSolving Skills: Much of a manager's work is solving problems. These include organizing his own and his subordinate's activities, planning and a wide range of other decisionmaking activities. These are skills involved in diagnosing problems, interpreting relevant data, assessing alternative solutions and getting feedback concerning the effectiveness of the solution. These skills can be improved and classroom education is one method utilized for this purpose. As with any skill, practice and feedback are essential for learning. The most widely used classroom method for improving the problemsolving skills is the case method. In the hands of a skilful teacher, it can be highly effective.

End of answer no.2 ---------------------------------------------------------------------------------------------------------- Answer No.3:-

Different Career Development activities. A variety of career development activates are available for use. Some of the more popular ones include: 1. Self assessment tools example career Planning Workshops, Career Workbooks); 2. Individual Counselling; 3. Information Services (e.g. Job posting systems, skills inventories, career ladders or career paths, career resource centres and other communication formats); 4. Initial employment Programs (e.g. Anticipatory socialization programs, realistic recruitment, employee orientation program);

Page 5 of 11 5.Organizational Assessment programs (e.g. Assessment Centres, Psychological Testing, promotability forecasts, succession planning); and 6. Developmental programs (e.g. Assessment Centres, Job rotation programs, inhouse training, tuition refund plans, mentoring). No matter what tools are used for career development, it is important that employees develop and individualised career plan. For example Raychem requires every person to have a learning or development plan. 1- Other Career Programs Career development programs are often instituted to meet the unique needs of particular employees. Although many different groups and issues may be targeted for career development, some of the more common programs are those that focus on workfamily issues, outplacement, entrenched employees, latecareer employee, disadvantages employees, fast track employees and supervisors. 1. WorkFamily Programs focus on increasing use of flexible work schedules and training for managers in implementing the schedule, opening of more onsite childcare centers, and greater use of paid leave for fathers and adoptive parents, moreprograms that set goals for advancing women into senior management positions and increasing number of companies holding managers accountable for meeting these goals. 2. Relocation Assistance and hiring practices focuses on the support provided by firms in assisting spouse of employees during employee relocation. The amount and nature of support could vary from company to company. Some firms have altered their policy on nepotism to allow for hiring both spouses. 3. Work Family Seminars and flexible HR practices allow for organizations to design programs to help employees manage their workfamily conflicts and coping strategies. Organizations are changing their practices for recruitment, travel, transfer, promotions, scheduling hours, and benefits to meet the needs of the larger number of dual career couples. 4. Flexible Work schedules are being increasingly instituted at the workplace. These include flextime, job sharing, part time work, working from home, compressed workweeks, temporary workweeks etc... Such programs enable employees to address their work and family concerns and reduce their potential stress or conflicts between their various life roles. Telecommuting has become very popular. This provides for organizational as well as employee related advantages. Some difficulties with telecommuting are communication problems with other employees, limited access to necessary supplies and equipment and family interruption. 5. Outplacement Program during retrenchment and downsizing are now a professionally managed process in most organizations. The objective here is to assist the effected employees in making the transition to new employment. It could involve reskilling for new, more relevant skills per market demand so finding a new job is easier. It could involve working with placement agencies and recruitment firms to provide interviewing opportunities for the employees. Outplacement programs

Page 6 of 11 6. stress the importance of self confidence and individual career planning beneficial for middle or latecareer employees who are being laid off. Such programs provide for support networks that can play a critical role in making it less traumatic and fairer. 7. Special Programs for Women, Minorities and Employees with Disabilities: With more employees in these special categories entering the workforce there is an increase need to recognize the importance of assisting these employees with their career needs. 8. Fast Track employees identified usually as ‗stars‘ with high potential for future areplaced on a fast track program to enable them to move to senior positions quickly and also helps in retaining this critical talent. The identification and development of these employees requires organizations to exert efforts to build and monitor special programs that cater to this special audience. Organizations must provide considerable feedback, training and counseling to these employees as well as offer quicker job changes and more challenging job assignments, particularly during the employee‘s first few years on the job. CONCLUSION. 1. Career development programs must be integrated with and supported by the existing HR programs if they are to be successful. 2. Career development initiatives need to be shared openly and propagated by the business leaders and HR to improve its visibility and usage by the employee. 3. Career or job changes by the employee should be based on an understanding of organization‘s job description, job posting systems and selection policies. 4. It is however the responsibility of the HR staff to work with management to ensure that career programs are integrated with the other HR functions and are routinely evaluated. 5. Career development programs must be concerned with organizational and individual Effectiveness over the short and long term. End of answer no.3 ----------------------------------------------------------------------------------------------------------Answer No.4:Various Common practices used for Employees Motivation. A common question that is raised is whether employees can at all be motivated, too many, it is obvious that neither direct pressure nor good treatment can effectively motivate employees to do a job satisfactorily. There are no readymade remedies for bringing about an effective motivation but certain factors as analyzed by research scientists, could be used as guidelines. Firstly, basically the people motivated

Page 7 of 11 themselves and are seldom motivated directly by other people, Instead of direct manipulation, creation of an atmosphere that will help individual to greater achievement, is important. Secondly, motivation of people depends on their image of themselves and their expectation of what that image should be. A person's psychological needs affect his selfimage. Thirdly, achievement is always a result of motivation i.e., ability to achieve. Both ability and desire to achieve therefore must be considered in any programme aimed at motivation. Fourthly, a person's desire to modify or control his behavioural patterns when they interfere with positive achievement should be considered. It is the responsibility of the management in such situation to help and understand his motivational pattern and provide the environment in which he can achieve his goal. Even if the employees have a high potential for selfmotivation, it shall be the duty of the management to provide the climate in which it will flourish. The following suggestions would be very helpful in developing an atmosphere conducive to sustained motivation: 1. Establish clearcut objectives and standards. The individual must know what is expected of him. 2. Evaluate the man's progress against these yardsticks. 3. Discuss his progress or lack of it with him as often as is possiblehelp him to make necessar adjustments. 4. Take prompt corrective action when necessary. Good discipline is essential to any healthy environment. 5. Use rewards promptly and apply when results are good. Rewards must be tied to the specific result and to commensurate with the contribution. 6. Encourage and appreciate excellence among people. 7. Consider your expectations for the man in terms of his capacity. Encourage the man with high talent who produces much, but be appreciative of the less talented man who lives up to the last ounce of his capacity. 8. Try to assign intermediate goals to give the feeling of achievement. A series of small successes can build confidence and expand horizons. 9. Give a man a difficult challenge on occasion, particularly in less critical areas and build up his ego. 10. Give him an understanding of the organization's total goals and the part that he is contributing. This provides him with a sense of involvement essential to his need to grow and develop. End of answer no.4 ---------------------------------------------------------------------------------------------------------- Answer No.5:-

Grievance Handling Procedure: The Grievance procedure vary from industry to industry and from trade union to trade union because of the variations in the size of organizations, trade union strength, the

Page 8 of 11 management philosophy, the company traditions, industrial practices and in the cost factor. Initial Step : The greatest opportunity for the settlement of a complaint or grievance lies in the initial step of the procedure. If there is no formal procedure and the firm announces an opendoor policy, then it is possible that the supervisor may get bypassed by the worker who would take his grievance directly to the higher levels of management. But such bypassing not merely undermines the supervisor‘s authority, who loses face, but also creates an atmosphere of winorloose in which both the worker and supervisor will try to prove the other wrong. Intermediate step As the figure indicates, the next step on the management side of the procedure is to submitthe dispute to middle management. Involving the supervisor‘s middle and seniorline managers in the grievance process helps in two ways. Initially, the social barriers between the various categories are, to some extent, broken by personal contact and mutual understanding. Secondly, the problemsolving approach integrates the various levels in the organization into a team to jointly overcome the problem which concerns not only the worker but the manager as well. However, it is important to ensure that the line management assumes prime responsibility for the settlement of a grievance. In many organizations, the Personnel Department is injected into the procedure as a decisionmaking power. On the union side, intermediate levels are represented by higher personnel in the union hierarchy. In most of the organizations, the business agent, a fulltime negotiations specialist of the union, takes over the intermediate and sometimes the final step. The presence of a business agent may explain why management is often outmanoeuvred by the union. Business agents are specialists in unionmanagement negotiations, and it is also their fulltime job. The line manager often considers grievance processing a minor, incidental, and distasteful duty. This lack of specialization and interest on the part of line management has led to the situation in which the staff personnel department is given authority to make decisions bout grievances. Final Company- union step: Usually, the final step to be undertaken by the company and union is a discussion of the grievance between representatives of top management and top union officials. For management, it may be the President in important grievances, a Vicepresident, or a highlevel Industrial Relations Executive but, for the union, it may be the President of the local union, the Union Executive Committee, or a representative of the International Union. It is difficult to secure an integration of interests at this high level. End of answer no.5 -----------------------------------------------------------------------------------------------------------

Page 9 of 11  Answer No.6:-

The Types of Groups:Groups may be classified in many different ways: the basis for differentiation may be purposeor goal; extent of structuring; legal organisation or setting. Classification of group is a starting point for a better knowledge of nature and function of a group of interacting individuals. There are two distinct types of work groups, formal and informal. It is important, however, to recognize that both types have certain fundamental characteristics in common. All groups: have leaders; have followers; strive toward some goal or goals; have ideas about what it takes to achieve the goals; communicate expectations to members; Satisfy some form of member needs. 1. Formal Work Groups In the previous chapters, the organizing function of management was identified as the process that arranges people in an acceptable pattern so that they can perform required activities. Organizing unites workers by means of interrelated tasks. Its goal is the creation of behavioural relationship among persons that will best enable them to work together productively and with maximum personal satisfaction. In other words, the end goal of the manager's organizing responsibility is to create formal work groups that are necessary to achieve the organisation‘s goals. Formal work groups are subdivisions of organizations. The following are the characteristics of formal work groups: they are sanctioned by some authority; 2) there is a prescribed division of labour 3) individuals are assigned specific responsibilities, 4) there are stable and consistent personal interactions, and 5) provisions are made for rewarding the group membership. The formal work group has a designated leader who supervises group members, mediates rewards and punishments, and is responsible for group performance to a higher authority in the organization. Group members may or may not have a say in the objectives, rules of behaviour, task assignments, or performance standards of the group. Examples of formal work groups are: the professors in an academic department of a college, a surgical team in a hospital, and the two partners in a police patrol car. 2. Informal Work Groups Informal work groups are a component of informal organizations. Informal groups are looselyorganized groups such as bowling teams and social clubs that arise apart from the formal organization to which members of the informal group may belong. They exist because the formal groups established within the organization frequently fail to satisfy human needs to a sufficient degree, and also because the organizational structure rarely anticipates everything that must be done if the organization is to meet all of its objectives. From the perspective of the worker, informal work groups provide a source of satisfaction for security needs, social needs, and esteem needs.

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Informal Work Groups and Security Needs: Informal groups help to support their

members and to protect them from outside pressure and authority. The group insulates the individual from a hostile work environment. When people first enter an organization, they may feel considerable anxiety. Their surroundings are unfamiliar, the job is new, and the future is uncertain. New employees often seek out an existing group to join for help in the orientation process. Informal Work Groups and Social Needs: Many jobs restrict communication and interaction among workers. This makes it difficult for people to form work friendships and to satisfy their need for companionship. People want to feel they belong, and it is easy to feel such identification with a small social group in which relationships are based on shared interests and values. In most offices, social groups are an inevitable occurrence. Social group members enjoy each other's company as the work is performed. They may also eat lunch as a group, take breaks at the same time, or share a social life outside the organization Informal Work Groups and Esteem Needs: Beyond providing a sense of belonging, the informal group can also be a source of status or prestige for its membership. This is especially true if the group is wellknown in the larger organization, if outsiders are anxious to join the group, and if acceptance into the group is difficult to achieve. To the extent that it provides an opportunity for assumption of leadership, the informal group is a source of egoistic need satisfaction. Finally, the need to achieve can be partially satisfied by the informal group. Advantages: Informal work groups increase the employee's sense of security and belonging and often enable the work to be done more effectively. Another advantage, not previously mentioned, is that the informal group can assist the manager in providing discipline. For instance, group members who notice that an individual is taking advantage of a situation in a way that could cause them all to lose a prized benefit may step in to correct the problem before the manager is even aware that it exists. In one office, the boss has for years successfully maintained a "no time clock" policy, in which employees are placed on their own recognizance to work an eighthour day. If someone comes in half an hour late, takes a long lunch, or leaves early one day, no one says anything. Everyone expects that the person will make up the time as he or she sees fit. This form of compromise works in this situation because the employees are highly motivated and the office is not too large. But another reason it works is because there is a great deal of peer pressure (informal group norms) exerted on any individual who appears to be taking advantage of the policy. Disadvantages: The disadvantages of informal work groups can interfere with organizational effectiveness to the same degree that the advantages can contribute to it. These disadvantages arise whenever the goals of the group run counter to those of the established organization. This problem is especially evident whenever an attempt is made to implement planned change. The protection and social relationships provided by informal groups are often threatened by new plans that disrupt order and stability, create new procedures and standards of production, and interrupt the pattern of personal interactions on the job. The existence of informal groups can block worker

Page 11 of 11 cooperation with planned change by encouraging outright resistance, footdragging, or "malicious compliance." In a nutshell, the informal group emerges whenever the formal group does not sufficiently satisfy onthejob needs. It can be beneficial or detrimental depending on the degree to which workers agree with the policies of management. Managers should always be alert to the formation of informal groups because they are usually an indication that employee needs are not being met through the established structure. Although the manager should not try to manipulate informal groups, he or she should try to ascertain how they might have on the organization. The best approach is to be reasonable with employees and to consider their needs. Informal groups will emerge even where human relations are sound, but their presence will not be as disruptive as when they exist primarily in response to management insensitivity. One certain way to eliminate the negative consequences of informal groups is to make the formal group more effective in meeting both the needs of workers and the goals of the organization.

End of answer no.5 ----------------------------------------------------------------------------------------------------------End of the assignment Se-2 of Human Resource Management --------------------------------------------------------------------------------------------------------

Page 1of 8 Management Process & Organization Behavior (Assignment Set-2)  Answer No.1:-

Theories Of Emotion: There are many theories of emotion: 1- JamesLangeTheory: Subjective emotional responses are the result of physiological changes within human bodies. The brain perceives an event and, in turn, sends messages down its neural circuitry to other areas of the brain. This action ultimately produces motor, autonomic and endocrine responses. These responses elicit an emotional response, which in turn, is perceived by the brain. Therefore, it is a cyclical process. This theory argues that physiological behaviors precede the emotion. 2-CannonBard theory:Emotion provoking events induce the subjective emotional experiences and physiological arousal simultaneously. Through experiences, individuals begin to acquire certain expectations for every given situation. These expectations provide a filter and every situation is processed through this filter. During this process, brain produces the emotion and corresponding physiological behaviors at the same time. 3-SchachterSinger theory: Both feedback from peripheral responses and a cognitive appraisal of what caused those responses produce emotions. How one interprets the peripheral response will determine the emotion he / she feels. Individuals label the emotional response depending on what we think is causing the response. For example, when someone interprets a stimulus as dangerous, it leads to physiological arousal. Then, this physiological arousal is interpreted to a particular emotion. It can be fear, surprise, excitement, and astonishment depending on how the arousal is labeled. 4-Lazarus' appraisal theory (1980): An individual makes an initial and sometimes unconscious cognitive appraisal of the situation to decide, if there is a threat; coping action is taken if necessary; and the individual takes a closer look and identifies the emotions he or she is feeling. 5-Weiner's attribution theory (1986, 1992): Certain attributions produce specific emotions. Once the initial evaluation has been made, the individual looks at what caused the event. These attributions of causality can modify the emotion felt. It is the interaction of the perceived internal and external causes, controllability and outcome that will determine the emotional responses. End of answer no.1 -----------------------------------------------------------------------------------------------------------

Page 2 of 8  Answer No.2:-

Techniques Of Decision Making In Groups: Schein observes that groups may make decisions through any of the following six methods:

Decision in lack of response: In this type of decision making, ideas are forwarded

without any discussion taking place. When the group finally accepts an idea, all others have been bypassed and discarded by simple lack of response rather than by critical evaluation. Decision by authority rule: The leader makes a decision for the group, with or without discussion. Decision by minority rule:Two or three people are able to dominate the group into making a decision to which they agree. Decision by majority rule: Here, viewpoint of the majority is considered as the group‘s decision. Decision by consensus: One alternative is accepted by most members and the other members agreeing to support it. Decision by unanimity:All group members agree totally on the course of action to be taken. This is a ―logically perfect‖ group decision method that is extremely difficult to attain in actual practice. The potential advantages of group decision making include: 1. Information—more knowledge and expertise is applied to solve the problem. 2. Alternatives—a greater number of alternatives are examined, avoiding tunnel vision. 3. Understanding and acceptance—the final decision is better understood and accepted by all groupmembers. 4. Commitment—there is more commitment among all group members to make the final decision work. The potential disadvantages of group decision making include: 1 Social pressure to conform—individuals may feel compelled to go along with the apparent wishes of the group. 2. Minority domination—the group‘s decision may be forced by one in dividual or a small coalition. 3. Time demands—with more people involved in the dialogue and discussion, group decisions usually take longer to make than individual decisions. End of answer no.2 -----------------------------------------------------------------------------------------------------------

Page 3 of 8  Answer No.3:-

Process of conflict & its stages:The process of conflict management has the following steps Stage 1: 1.Potential Opposition or Incompatibility:This stage concludes the conditions that create opportunities for conflict to arise. The conditions are as follows: a) Communication: Communicationbecomes a source of conflict due to semantic difficulties,misunderstandings, and ―noise‖ (distortion) in the communication channels. Differing word connotations, jargon, insufficient exchange of information, and noise in the communication channel are all barriers to communication and potential antecedents to conflict. b)Structure: The term structure includes variables such as size, degree of specialization, jurisdictional clarity, membergoal compatibility, leadership styles, reward systems, and the degree of dependence. Size and specialization act as forces to stimulate conflict. The larger the group and more specialized its activities, the greater the likelihood of conflict. The potential for conflict is greatest where group members are younger and turnover is high. The greater the ambiguity in responsibility for actions lies, the greater the potential for conflict. At workplace, people may encounter conflict at the intrapersonal level (conflict within the individual), the interpersonal level (individual toindividual conflict), the intergroup level, or the interorganizationallevel. Some conflicts that affect behavior in organizations involve the individual alone. It can be of three types 1)Approach–approach conflict occurs when a person must choose between two positive and equally attractive alternatives. An example is having to choose between a valued promotion in the organization or a desirable new job with another firm. 2)Avoidance–avoidance conflict occurs when a person must choose between two negative and eq ually unattractive alternatives. An example is being asked either to accept a job transfer to another town in an undesirable location or to have one‘s employment with an organization terminated. 3)Approach–avoidance conflict occurs when a person must decide to do something that has both positive and negative consequences. An example is being offered a higher paying job whose responsibilities entail unwanted demands on one‘s personal time. Interpersonal conflict occurs between two or more individuals who are in opposition to one another.It may be substantive or emotional or both. Intergroup conflict occurs among members of different teams or groups.

Page 4 of 8 Interorganizational conflict occurs as the competition and rivalry that characterizes firms operating in the same markets. C)Personal variables: Personal variables include individual value systems and personality characteristics. Certain personality types lead to potential conflict. Value d Stage 2: Cognition and Personalization :Antecedent conditions lead to conflict only when the parties are affected by and aware of it. Conflict is personalized when it is felt and when individuals become emotionally involved. Emotions play a major role in shaping perceptions. Negative emotions produce oversimplification of issues, reductions in trust, and negative interpretations of the other party‘s behavior. Positive feelings increase the tendency to see potential relationships among the elements of a problem, to take a broader view of the situation, and to develop more innovative solutions Stage 3: Intentions:The primary conflict handling intentions are represented as follows: · Cooperativeness—―the degree to which one party attempts to satisfy the other party‘s concerns.‖ · Assertiveness—―the degree to which one party attempts to satisfy his or her own concerns.‖ · Competing: When one person seeks to satisfy his or her own interests, regardless of the impact on the other parties to the conflict · Collaborating: When the parties to conflict each desire to fully satisfy the concerns of all parties. The intention is to solve the problem by clarifying differences rather than by accommodating. · Avoiding: A person may recognize that a conflict exists and want to withdraw from it or suppress it. · Accommodating: When one party seeks to appease an opponent, that party is willing to be selfsacrificing. · Compromising: When each party to the conflict seeks to give up something, sharing occurs, resulting in a compromised outcome. There is no clear winner or loser, and the solution provides incomplete satisfaction of both parties‘ concerns. Stage 4: Behavior:The behavior stage includes the statements, actions, and reactions made by the conflicting parties. These conflict behaviors are usually overt attempts to implement each party‘s intentions. It is a dynamic process of interaction with a continuum. At the lower part of the continuum, conflicts are characterized by subtle, indirect, and highly controlled forms of tension. Conflict intensities escalate as they move upward along the continuum until they become highly destructive. Functional conflicts are typically confined to the lower range of the continuum.

Page 5 of 8 Stage 5: Outcomes:Outcomes may be functional—improving group performance, or dysfunctional in hindering it. Conflictis constructive when it: a. Improves the quality of decisions. b. Stimulates creativity and innovation. c. Encourages interest and curiosity. d. Provides the medium through which problems can be aired and tensions released. e. Fosters an environment of selfevaluation and change. Outcomes may be dysfunctional as well. They are as follows: Uncontrolled opposition breeds discontent, which acts to dissolve common ties and eventually leads to the destruction of the group. Undesirable consequences include a retarding of communication, reductions in group cohesiveness, subordination of group goals to the primacy of infighting between members. Conflict can bring group functioning to a halt and potentially threaten the group‘s survival. The demise of an organization as a result of too much conflict is not as unusual as it might first appear.

End of answer no.3 ---------------------------------------------------------------------------------------------------------- Answer No.4:-

Page 6 of 8  Answer No.5:-

Power and influence tactics:

This unit deals with power which is the ability to make things happen in the way an individual wants, either by self or by the subordinates. The essence of power is control over the behavior of others. Using position and personal power well to achieve the desired influence over other people is a challenge for most managers. There are many useful ways of exercising relational influence. The most common strategies involve the following: · Reason—Use of facts and data to make a logical or rational presentation of ideas · Friendliness—Use of flattery, creation of goodwill, acting humble, and being friendly ·Coalition—Getting the support of other people in the organization to back up the request · Bargaining—Use of negotiation through the exchange of benefits or favors · Assertiveness—Use of a direct and forceful approach such as demanding compliance · Higher authority—Gaining the support of higher levels in the organization to back up requests · Sanctions—Use of organizationally derived rewards and punishments Employees rely on the seven tactics variably. Depending on the situational factors, individuals tend to use the above strategies accordingly to the suitability and the likelihood of the success to be achieved by employing the same. The manager‘s relative power impacts the selection of tactics in two ways. · First, managers who control resources that are valued by others, or who are perceived to be in positions of dominance, use a greater variety of tactics than do those with less power. · Second, managers with power use assertiveness with greater frequency than do those with less power. · Resistance leads to managers using more directive strategies. The manager‘s objectives for wanting to influence causes them to vary their power tactics. The objectives may be as follows: · When seeking benefits from a superior, they use friendliness. · When they are in need to make superiors accept new ideas, they usually rely on reason. · Managers use reason to sell ideas to employees and friendliness to obtain favors. Research evidence also supports the following with regard to use of tactics and the choice used by managers with regard to power: The manager‘s expectation of the target person‘s willingness to comply is an important factor. When past experience indicates a high probability of success, managers use

Page 7 of 8 simple requests to gain compliance. Where success is less predictable, managers are more likely to use assertiveness and sanctions to achieve their objectives. The organization‘s culture also plays an important role in deciding the use of power tactics. The organizational culture in which a manager works, will have a significant bearing on defining which tactics are considered appropriate. The organization itself will influence which subset of power tactics is viewed as acceptable for use by managers. People in different countries tend to prefer different power tactics. For example in US people prefer use of reason in contrast to China where coalition as a tactic is preferred. Differences are consistent with values among countries—reason is consistent with American‘s preference for direct confrontation and coalition is consistent with the Chinese preference for using indirect approaches. End of answer no.5 ----------------------------------------------------------------------------------------------------------Answer No.6:Characteristics Of Organization Development: A number of special characteristics together distinguish organizational development from other approaches to managing and improving organizational function. Behavioural science base: It is primarily concerned with improving the organization by focusing on aspects that have a bearing on human and social improvement. Its principles have been drawn largely from the field of organizational behavior and social sciences. Normative approach to organizational change: OD is a normative process grounded in valueladen assumption of what constitutes ideal individual and organizational growth. Development for the OD practitioners means the movement of individualsand organizations in certain directions consistent with democratic and humanistic values and ideals such as autonomy, selfactualization, etc. Deliberate intervention in the organization: OD implies deliberate intervention in the ongoing processes of an organization. While all the social systems, in the ordinary course of events, tend to grow in predictable patterns, they may fail to optimize their capabilities due to an inability to recognize their potential or to anticipate and effectively cope with internal and external crisis. Development implies planning and action to ensure that growth takes place consistent with values.

Normative deductive strategy –

It is based on the assumptions that the social norms are one of the strong reinforcers of behaviour. The culture of the organization is affected by those norms and hence, to

Page 8 of 8 change the existing organizational culture prevalent norms have to be reduced, modified and replaced by more effective ones. This approach talks about the change in the organization, which looks forward to a longtermimprovement through internalization of new norms of behavior. Systems approach to change:Leavitt has viewed an organization as a social system consisting of different subsystems such as task, structure, technology and human resource, interlinked by various processes. Any change in one part or process has implications for other parts or processes relevant to the system. OD techniques are used to change or modify the processes to change the system consequently.

Using actionresearch model –

Action research model is a ―data based, problem solving model that replicated the steps involved in the scientific method of inquiry‖ (French and Bell 1991). OD, using this model, involves a systematic process of diagonising organizational problems through data collection and analysis, feeding the data back to the organizational client group, discussing the findings, planning collaborative action and implementing proposed solutions. Use of external consultant:Here, the assumption in OD is that the presence of a qualified behavioural scientist as an external consultant can help the process of OD in the following manner: · The specialized knowledge of that consultant becomes available to the organization. · The consultant, as a neutral outsider, is likely to face lesser resistance during the process of change. · He is less likely to have a personal stake in implementation of proposed change. End of answer no.6 ----------------------------------------------------------------------------------------------------------The end of assignment set -2 of MPOB --------------------------------------------------------------------------------------------------------

Page 1of 8 STATICS FOR MANAGEMENT (Assignment Set-2)  Answer No.1:-

Central Tendency:Measures of Central Tendency and Measures of Dispersion summarise mass data in terms of its two important features – i) with respect to nature of data to cluster around a central value and ii) with respect their spread from their central value. Mass data, which are collected, classified, tabulated and presented systematically, is analyzed further to bring its size to a single representative figure. The tendency of data to cluster around a figure is known as central Tendency. Measures of central Tendency or Averages of first order describes the concentration of large numbers around a value. It is a single value which represents all units. Objectives 1. Understand the concept of Central Tendency 2. Different measures available under computation 3. The concept of dispersion and the different measures available Objectives of Statistical Averages i. To present mass data in a concise form ii. To facilitate comparison iii. To establish relationship between sets iv. To provide basis for decisionmaking 4.2 Requisites of a Good Average i. It should be simple to calculate and easy to understand ii. It should be based on all values. iii. It should not be affected by extreme values iv. It should not be affected by sampling fluctuation v. It should be rigidly defined vi. It should be capable of further algebraic treatment

Answer No.1b-

Uses of various Averages 1. Arithmetic mean is used when a. In depth study of the variable is needed b. The variable is continuous

Page 2 of 8 c. The variable is additive in nature d. The data are in the interval or ratio scale e. When the distribution is symmetrical 2. Median is used when a. the variable is discrete b. there exists abnormal values c. the distribution is skewed d. the extreme values are missing e. the characteristics studied are qualitative type f. the data are on the ordinal scale. 3. Mode is used when a. the variable is discrete b. there exists abnormal values c. the distribution is skewed d. the extreme values are missing e. the characteristics studied are qualitative type 4. Geometric mean is used when a. the rate of growth, ratios and percentages are to be studied b. the variable is of multiplicative nature 5. Harmonic mean is used when a. the study is related to speed, time b. Average of rates which produce equal effects has to be found Positional Averages (Quartiles) ® Median is the midvalue of series of data. It divides the distribution into two equal portions. Similarly we can divide a given distribution into four, ten or hundred or any other number of equal portions. Requisites of a Good Average i. It should be simple to calculate and easy to understand ii. It should be based on all values. iii. It should not be affected by extreme values iv. It should not be affected by sampling fluctuation v. It should be rigidly defined vi. It should be capable of further algebraic treatment

Page 3 of 8 Statistical Averages The commonly used statistical averages are:a. Arithmetic Mean is defined as the sum of all values divided by number of values and is represented by X.

End of answer no.1 & b ----------------------------------------------------------------------------------------------------------Answer No.3:-

ASSIGNMENT SET-1 Answer No.1:Management roles and skills: Managerial Roles: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 subroles, 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. Interpersonal 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 subheadings: 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. Managerial 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 onthejob 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.

End of answer no.1 ----------------------------------------------------------------------------------------------------------Answer No.2:Social Learning theory:-

The social learning theory was proposed by Bandura. It recognizes the importance of observing and modeling the behaviors, attitudes, and emotional reactions of others. According to Bandura most human behavior is learned observationally through modeling: from observing others one forms an idea of how new behaviors are performed, and on later occasions this coded information serves as a guide for action. Social learning theory explains human behavior in terms of continuous reciprocal interaction between cognitive, behavioral, and environmental influences. Social learning has four processes: 1. Attentional processes People learn from a model only when they recognize and pay attention to its critical features. 2. Retention processes A model‘s influence will depend on how well the individual remembers the model‘s action after the it is no longer readily available. 3. Motor reproduction processes After a person has seen a new behavior by observing the model, the watching must be converted to doing. 4. Reinforcement processesIndividuals will be motivated to exhibit the modeled behavior if positive incentives or rewards are provided. Principles of social learning are as follows: 1. The highest level of observational learning is achieved by first organizing and rehearsing the modeled behavior symbolically and then enacting it overtly. Coding modeled behavior into words, labels or images results in better retention than simply observing. 2. Individuals are more likely to adopt a modeled behavior, if it results in outcomes they value. 3. Individuals are more likely to adopt a modeled behavior, if the model is similar to the observer and has admired status and the behavior has functional value

End of answer no.2 ----------------------------------------------------------------------------------------------------------Answer No.3:Models of Personality: 1. Heredity The relationship of heredity with personality is a wellaccepted fact. Traits like physique, eye color, hair color, height, temperament, energy level, intelligence, reflexes, etc. are generally referred to describe the influence of heredity in developing personality. The heredity approach argues that the ultimate explanation of an individual‘s personality is the molecular structure of the genes, located in the

chromosomes. Robbins (2003) has argued that the three different streams of research lend some credibility to the argument that heredity plays an important part in determining an individual's personality. The first looks at the genetic underpinnings of human behavior and temperament among young children. The second addresses the study of twins who were separated at birth and the third examines the consistency in job satisfaction over time and across situations. 2. Environment Environment comprises of culture, family, social and situational factors. The environmental factors influence personality of an individual since they provide the basis of certain experiences which determine the individual‘s view about life, both positive and negative. 3. Culture Culture establishes norms, attitudes and values that are passed on from generation to generation and create consistencies over time. Every culture expects and trains its members to behave in the ways that are acceptable to the group. People from different cultural groups have different attitudes towards independence, aggression, competition, cooperation, artistic talent, etc. However, on the basis of culture, an individual‘s personality cannot be always assessed, since individuals within the same culture (but from different family and subcultural background) have been seen to differ in their behavior. 4. Family One of the most important determinants of the personality of a person is the immediate family. Families influence the behavior of a person especially in the early stages of life. The nature of such influence will depend upon the socioeconomic level of the family, family size, race, religion, parent's educational level and geographic location. 5. Situation Situational factors also play a crucial role in determining the personality of a person. Every individual goes through different type of experiences and events in his/her life. Some of the events and experiences, which an individual goes through in his/her life, can serve as important determinants of his/her personality. A trauma suffered by a person in the childhood can sometime change the structure of his/her own personality.

End of answer no.3 ----------------------------------------------------------------------------------------------------------Answer No.4:Different Factors Influencing Perception: Mainly three factors shape perception of an individual: 1. Perceiver 2. Target 3. Situation

Perceiver – Refers to the most prevalent personal characteristics affecting perception of the perceiver, which are attitudes, motives, interests, past experiences, and expectations. Target:Characteristics of the target can also affect what is being perceived. This includes, attractiveness, gregariousness, and an individual‘s tendency to group similar things together. Page 6 of 7 Situation :The context in which objects or events are seen by individuals also influence their attention. This includes time, heat, light, or other situational factors.

End of answer no.4 ---------------------------------------------------------------------------------------------------------- Answer No.5:-

Contemporary Work Cohort: Robbins has proposed Contemporary Work Cohort, in which the unique value of different cohorts is that the U.S. workforce has been segmented by the era they entered the workforce. Individuals‘ values differ, but tend to 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. They exhibited the following value orientations: They were influenced by the Great Depression and World War II 1. Believed in hard work 2. Tended to be loyal to their employer 3. Terminal values: Comfortable life and family security 2. Boomers—Employees who entered the workforce during the 1960s through the mid1980s belonged to this category. Their value orientations were: 1. Influenced heavily by John F. Kennedy, the civil rights and feminist movements, the Beatles, the Vietnam War, and babyboom competition 2. Distrusted authority, but gave a high emphasis on achievement and material success 3. Organizations who employed them were vehicles for their careers 4. Terminal values: sense of accomplishment and social recognition

3. Xers—began to enter the workforce from the mid1980s. They cherished the following values: 1. Shaped by globalization, two career parents, MTV, AIDS, and computers 2. Value flexibility, life options, and achievement of job satisfaction 3. Family and relationships were important and enjoyed teamoriented work 4. Money was important, but would trade off for increased leisure time 5. Less willing to make personal sacrifices for employers than previous generations · Terminal values: true friendship, happiness, and pleasure 4. Nexters—most recent entrants into the workforce. Page 7 of 7 1. Grew up in prosperous times, have high expectation, believe in themselves, and confident in their ability to succeed 2. Neverending search for ideal job; see nothing wrong with jobhopping 3. Seek financial success 4. Enjoy team work, but are highly selfreliant 5. Terminal values: freedom and comfortable life End of answer no.5 ---------------------------------------------------------------------------------------------------------- Answer No.6:-

Special Issues In Motivation: 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 bluecollar employees. They generally have strong and longterm commitment 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

Motivating Low-Skilled Service Workers One of the most challenging managerial tasks in to motivate lowskilled 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. End of answer no.6 -----------------------------------------------------------------------------------------------------------

Page 1 of 7 BUSINESS COMMUNICATION ASSIGNMENT SET-1 Answer No.1:Types Of Communication: Broadly, communication may be divided into two areas – verbal and nonverbal communication. Verbal communication, or communication through words, provides the opportunity for personal contact and twoway flow of information. A large part of our communication, whether at work or outside, is verbal in nature. Verbal communication in turn, may be divided into two areas – oral and written communication. Oral communication may be defined as a process whereby a speaker interacts verbally with one or more listeners, in order to influence the latter‘s behavior in some way or the other. Example – In a business context, a manager doing a performance appraisal with an employee, or a sales manager making a sales plan presentation to his sales team. In the first example, the manager may point out areas for improvement and in the second case, the sales manager may be explaining how to achieve new sales targets. Oral communication in a business context can take the form of meetings, presentations, onetoone meetings, performance reviews and so on. Written communication is a process whereby a writer interacts verbally with a receiver, in order to influence the latter‘s behavior. Nonverbal communication, on the other hand may be defined as communication without words. It refers to any way of conveying meanings without the use of verbal language. The game of ―dumb charades‖ is a perfect example. Nonverbal communication is generally unintentional, unlike verbal communication. All of us tend to communicate silently and unknowingly send signals and messages by what we do, apart from what we say. Gestures, facial expressions, posture and the way we dress, are all part of nonverbal communication. Nonverbal communication can have a greater impact than verbal communication, since ―how you say something‖ is sometimes more important than ―what you say.‖ Although nonverbal communication can affect both our personal and business relationships, it is particularly important in the workplace. For example – Your boss has asked you to make a presentation on your suggestions for improving the organization. You take him at his word and come prepared with an elaborate presentation and a list of ideas. However, as you make your presentation, he yawns repeatedly, sits back casually, looks out of the window, clenches his jaw muscles and

Page 2 of 7 begins to frown. At the end of your presentation, he rises abruptly from his chair, says ―thank you for your ideas‖ in an angry voice and gives you a curt handshake Therefore, while the spoken or written words may be perfect, the nonverbal aspects could convey the exact opposite meaning. We will discuss the different aspects of nonverbalcommunication in more detail, later in this unit. In the example, the boss, through his nonverbal behavior, conveys a message beyond the spoken word – that he does not really want to hear your suggestions. Verbal Communication We communicate most of our ideas to others through verbal messages, i.e., through spoken or written messages. However, verbal messages have some drawbacks – the message may not be properly worded, or the message may be misunderstood, or interpreted differently from its intended meaning. For example, even a simple statement like ―let‘s discuss this matter tomorrow ―might be interpreted by one person as ―let‘s meet tomorrow‖ and by another as ―let‘s discuss this over the phone‖. End of answer no.1 -----------------------------------------------------------------------------------------------------------

Answer No.2:General Principles of Writing Written messages must be made as readable as possible, by making them uncomplicated and easy for even the average person to understand. Readability in turn is largely determined by the length of words, sentences and paragraphs. A common mistake made by writers, especially Indian writers, is to try and impress the reader by using flowery language and an oratory style of writing. Two broad principles of writing are ‗Write to express, not to impress‖ and ―Keep it short and sweet.‖ A good writer is one who follows these principles and asks himself/herself even before framing a sentence ―What am I trying to say? What words will express it?‖ Business Writing Specifics of business writing i.e. the language, style and tone of business writing is very different from general writing. Therefore, we will examine these aspects in some detail.

Tone We discussed tone of voice or ―paralanguage‖, in an earlier section on nonverbal communication. It was pointed out that the spoken words, however perfect, can convey a negative message, if the tone of voice is not consistent with what is said. Tone is equally important in conveying written messages, particularly business related messages. In written communication, tone refers to the way a statement sounds, which in turn, depends on the choice of words. A sentence or statement may be grammatically perfect, but may convey a negative message, if the choice of words is wrong. Example You failed to meet the sales target. This statement has a negative tone, since it emphasizes what could not be achieved. The same idea could be expressed in a more positive tone, by emphasizing what could have been done instead. Example With a little extra effort, you could have achieved the target. The example shows that even a negative idea can be expressed in positive language through the use of appropriate words. The tone of business communication should also be confident. You should avoid language that makes you sound unsure of yourself. Consider the following example – I hope you will agree that my qualifications match your job profile. Beginning the sentence with ―I hope‖ creates the impression that you lack confidence in yourself. It might be better to say ― On reviewing my biodata, you will find that my qualifications match your job needs in the following respects…‖. While it is important to be self assured, avoid sounding over confident and pompous. Example I am sure you will agree that our Company has the best reputation for quality and service. Instead, something like ―We shall try to live up to our reputation for quality and service.‖ would be more appropriate. Another examples. We are more interested in your satisfaction, than in making profits. 2. You are such a valued customer that we shall go to any lengths to earn your satisfaction. The first sentence sounds insincere, since the main objective of any organization is to make profits. The second sentence is exaggerated and unduly flatters the customer. It should be toned down by saying something such as ―We value your goodwill and will make quick efforts to ensure your satisfaction.‖ End of answer no.2 -----------------------------------------------------------------------------------------------------------

Page 3 of 7

Page 4 of 7 Answer No.3:Oral Business Presentations Oral business presentations are a powerful way of presenting your ideas to others and are usually called for when a written memo or report will not be sufficient to do the job. A written report tends to be less persuasive and may also be set aside without being read, whereas an oral presentation commands attention and fetches immediate feedback. Besides, approval for important ideas is rarely given without a facetoface explanation. Steps of Making Oral Presentations The table above indicates that oral presentations can range from simple to more complex ones, each with a different purpose. Whatever the nature of the presentation however, the same steps in planning and preparation are to be followed. In this section, we shall discuss each of these steps in detail. 1.Definition of the Purpose of the Presentation Before preparing for the presentation, it is important to be clear on the goal of the presentation. A “statement of purpose”, expressing what you want to achieve through the presentation should be framed, so that it becomes easy to measure whether the goal has been accomplished or not. The purpose of the presentation may be stated in broad or general terms, or in more specific terms. A general statement of purpose could be expressed in terms of one of the following · To Inform – A presentation that seeks to inform would merely create awareness about developments and progress on specific fronts, or try to spread knowledge about something new. In the table above, the first eight types of presentations are aimed at informing different audiences about something or the other – new procedures, new terminology, new software, findings of a study, sales progress, company achievements, viewpoints and background. · To Persuade – A presentation that aims to persuade would try to change the attitude or behavior of the audience. It usually involves selling either a product, or an idea. In the above table, the product presentation, project proposal and policy proposal, are all persuasive presentations. The product presentation seeks to persuade consumers to try a new product, the project proposal tries to persuade bankers to provide funds for a new project and the policy proposal tries to persuade top management to adopt a new policy of reimbursing mobile expenses.

Page 5 of 7 · To Entertain – A presentation with this purpose is meant to make the audience relax and have a good time. In the table above, presentations marking special occasions such as the company anniversary, may merely focus on making people feel good about themselves. Although it is useful to define the general purpose of a presentation, it is more important to frame a specific statement of purpose, which clearly spells out the answers to the following questions – 1. Whom do I want to influence? 2. What do I want them to do at the end of the presentation? 3. How do I want them to do it? 4. When? 5. Where? 2. Development of the Key Idea The key idea of a presentation is a statement that expresses the main message to be conveyed to your audience. It is different from a statement of purpose, in that the purpose is generally meant for yourself as the presenter, while the key idea is mentioned to the audience at the beginning of the presentation. 3. Audience Analysis Making a good presentation alone is not enough. It also has to be tailored to your listeners, in such a way that they understand and appreciate it. The following information should be gathered about your audience, even before you begin preparing for the presentation – · Job Designations and Areas of Expertise – You need to find out whether the audience comprises of specialists in a particular area such as information technology, or generalists. If they are specialists, your presentation could include technical aspects and jargon, which they would be able to understand. If not, you may have to make the presentation more simple, or explain some of the terms elaborately. · Preferred Style of Presentation –It would also be relevant to know the personal preferences of your audience, with regard to the style of presentation that they are most comfortable with. Some people may prefer a more informal or conversational style with some humor thrown in, to a more formal style. Others may like the presentation to be made at a slower pace. It should be remembered however, that humor should be used with care, so that it is relevant and does not offend the audience. Analyzing all this in advance would help in determining how the presentation should be delivered. · Demographic Characteristics of the Audience – The gender, age, cultural background and economic status of the audience also needs to be studied in advance, so that the presentation may be tailored to appeal to that particular audience.

Page 6 of 7 Example – A financial planner addressing an audience comprising of senior citizens, is likely to suggest investment options that would be different from those that might be suggested for a younger audience. · Size of the Audience – The size of the audience would determine your presentation style, the time set aside for questions and answers, the size of visuals and so on. With a smaller group, the presentation could be made less formal, the time for questions and answers less and the visuals smaller, than for a larger group. · The Level of Knowledge on the Subject – You need to know how familiar your audience is with the subject of the presentation. If the audience comprises of experts in that particular area, basic explanations may not be needed. On the other hand, if the level of familiarity is not so high, a lot of background information and explanation will be required. · The Attitude of the Audience – The attitude of your listeners, both towards you as a speaker and towards the topic of the presentation, needs to be studied in advance. If the audience is prejudiced towards you for some reason, you may have to alter your style of presentation considerably. If the presentation happens to be on a sensitive topic, you may have to proceed very tactfully. This is especially true of presentations that aim to persuade.

End of answer no.3 ----------------------------------------------------------------------------------------------------------Answer No.4:-

Dear sir, As discussed at Trinity & requested to your goodself,please favour me by solving the following questions to enable us to understand and also to complete my assignments. Thanks & regards, SP Shukla Ambuja Cements Ltd. Navi Mumbai

(10 Marks) Q.3 Sales Rs.400, 000 less returns Rs 10, 000, Cost of Goods Sold Rs 300,000, Administration and selling expenses Rs.20, 000, Interest on loans Rs.5000, Income tax Rs.10000, preference dividend Rs. 15,000, Equity Share Capital Rs.100, 000 @Rs. 10 per share. Find EPS.

Q.1 Assure you have just started a Mobile store. You sell mobile sets and currencies of Airtel, Vodaphone, Reliance and BSNL. Take five transactions and prepare a position statement after every transaction. Did you firm earn profit or incurred loss at the end? Make a small comment on your financial position at the end. [10 Marks]

Q.3 Prepare a Three-column Cash Book of M/s Thuglak & Co. from The following particulars:[10Marks]

20X1 Jan

1. Cash in hand Rs. 50,000, Bank Overdraft Rs. 20,000 2. Paid into bank Rs. 10,000 3. Bought goods from Hari for Rs, 200 for each 4. Bought goods for Rs. 2,000 paid cheque for them, discount allowed 1% 5. Sold goods to Mohan for each Rs. 1.175

6. Received a cheque from Shyam to whom goods were sold for Rs. 800.Discount allowed 12.5% 7. Shyam’s cheque deposited into bank 8. Purchased an old typewriter for Rs. 200 , Spent Rs. 50 on its repairs 9. Bank notified that Shyam’s cheque has been returned dishonored and debited the account in respect of charges Rs. 10 10. Received a money order Rs. 25 from Hari 11. Shyam settled his account by means of a cheque for Rs. 820, Rs. 20 being for interest charged. 12. Withdrew from the bank Rs. 10,000 18. Discounted a B/E for Rs. 1,000 at 1% through bank 20. Honored our own acceptance by cheque Rs. 5,000 22. Withdrew fir personal use Rs. 1,000 24. Paid tread expenses Rs. 2,000 25. Withdrew from bank for private expenses Rs. 1,500 26. Purchased machinery from Rajiv for 5,000 and paid him by means of a bank draft purchased for Rs. 5,005 27. Issued cheque to Ram Saran for cash purchased of furniture Rs. 1,575 28. Received a cheque for commission Rs. 500 from R.& Co. and deposited into bank 29. Ramesh who owned us Rs. 500 became bankrupt and paid us 50 paise in the rupee 30. Received payment of a loan of Rs. 5,000 and deposited Rs. 3,000 out of into bank 31. Paid rent to landlord “Mohan” by cheque of Rs. 220 31. Interest allowed by bank Rs. 30 31. Half-yearly bank charges Rs. 50

Q.4 Choose an Indian Company of your choice that has adopted Balance Score Card and detail on it. [10 Marks] Asset Cash Short-term investment Debtors Stock Long term Investment Machinery Building Land Total 2008 1,26,000 42,400 60,000 38,000 28,000 2,00,000 2,40,000 14,000 7,48,400 2007 1,14,000 20,000 50,000 28,000 44,000 1,40,000 80,000 14,000 4,90,000

Liabilities and Equity Accumulated depreciation Creditors Bills Payable Secured loans Share capital Share premium Reserves and surplus Total

1,10,000 40,000 20,000 2,00,000 2,20,000 24,000 1,34,400 7,48,400 2,40,000 1,34,600 1,05,200 92,000

60,000 30,000 10,000 1,00,000 1,60,000 Nil 1,30,000 4,90,000

Income statement Sales Cost of goods sold Gross Profit Less Operating expenses: Depreciation–machinery 20,000 Depreciation–building 32,000 Other expenses 40,000 Net profit from operation Gain on sale on long-term investment Total Loss on sale of machinery Net Profit

13,200 4,800 18,000 2,000 16,000

Adjustments: 1) Machinery worth Rs.70000 was purchased and worth Rs.10000 was sold during the year [Accumulated depreciation on machinery is Rs.18000 after adjusting depreciation on machinery sold]. Proceeds from the sale of machinery were Rs.6000 2) Dividends paid during the year Rs.11600 [ 10 Marks]

Respected sir,

Many many thanks for your so possitive response & respect your commited offer.I also accept the offer respectfully and prepairing myself for the same. Since it would be my first experienec out of india,I would like to request your goodself if you please atlast consider/sanction my one visit to india,to my satisfaction, with return ticket for 10-15 days after completing six month period at there. I am very much hopeful to your consideration on this my final request.I am cancelling the offer of City Cement of Saudi Arabia. You may advise your authorised agent where I can submit my papers & passport etc. for further processing. Once again I assure you my best service upto your satisfaction. Thanks & regards, S.P.Shukla Navi Mumbai 9819945959

From: Shashi <shashi@qualityinternational.ae>a Sent: Sun, 02 Oct 2011 15:42:11 To: sant.shukla@rediffmail.com Subject: Re: Resume for the post of Stores/Warehouse/Materials Manager Dear Mr. Shukla, Thanks for your mail and gone thru the contents therein. We regret, we will not be able to meet your expectation. However, we will consider an increment of AED 1000/- on successful completion of 6 months probation period. This will be purely based on your performance. We can offer you AED 8000/- + accommodation and transportation from residence to place of work, health insurance, 30 days yearly leave with Return Air ticket etc as per UAE labour laws. If it is acceptable, please let me know.

Regards, Shashi Ramakrishnan Managing D

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