MANAGEMENT PROGRAMME Term-End Examination December.

2O05 M S - l @ : MANAGEMENT FUNCTIONS AND BEHAVIOUR
Time : 3 hours Maximum Morks: 100 (weishtage 70%)

(i) (ii)

There are tuo SectiansA and B. Attempt ony thtee questions lrcm SectionA, eoch question carrging 20 morks. Section B is compulsory ond carries40 marks. t

(iii)

SECTION A 1. Id€ntifu various responsibilitjes a professional of manager. Hightght any live impodant responsibilitjes a manager ol in an organizational set,up and bring out ih€ir functional consequences suitableexamples. with

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2 . Exptain with examples the various phases and types of
managerial decisionFaklng.

3.

Describe how and why conflict is generated in th€ organization and briefly discuss various mod€s of conflict

4.

Having designed the organisation structure, io suit the specific needs of the company and its eNnronment, on the basis of most efficient grouping, it becomesdesirableto ensure that thes€ diflerentiated groups are iniegrated ' iowards th€ common organisational objectives Elaborate and discuss the under\ing issues in this

5..

Writ€ short notes on any three oI the following : (i) (ii) Sustainingleadershipelfectiveness Manaserialvaluesand ethos Matrix structure Policies and design choices in conirol Challengas of change

d

{iii} {iv) M

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SECTION B 6. given at the Pleaseread the caseand an$rer the questions end. Mr- Banerjee is the Chjef Executive of a medium siz€d pharmaceutical lirm in Calcutta.He holds a Ph.D. in Pharmacy. However, h€ has not been involved in research and developm€nt of new products for txo decades. Though turnover is not a problem for th€ company, Mr. Banerjeeand his senior colleagues noticed that ihe workers on hourly basis are not working upto their full poteniial. It is a well known faci that they filled their days wiih rinn€c€ssary and unprcductive activities and worked only for the sake of a pay cheque. In th€ recent past the situation has become quite alarming as the organizationbegan to crumble under the weight of uneconomicaleffort. The situationdemandedimmediate managerialattention and prompt rectificational measures. Mr. Banerjee kn€w very well that the onlg way to progress and prosper is to motivate work€rs to p€ak perlomance through variousincentiveplans. One fine moming, Mr. Banerj€e contacted ihe PersonnelManager and enquired: "What is the problem t,ith tbe urorkers on hourly basls ? The wage bill shows that we pay ihem the highest in the industrg. Our working conditions are fine. Our fringe benefits ar€ excellent.Still these workers are not motivated.What do

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th€y require reallg ?" The personnel Manager gave rne follo\ring reply : "l have alreadyinformed you a number of iimes, that money, working conditionsand ben€fiisare not enough- Other things are €qually ihportant. One of the workers in that group rec€ntly gave me a clue as to why more and more workers ara joining the bandwagon of non-performers'. He felt bad thai hard work and unnoticed and unrewarded in our organization.Our promotions and benefit plans are tied to length oI service.Even the lazy workers, accordingly, enjoy all the benefjtsin the organization. which, in fact, according to the worker, should go io only those rvho work hard." Mr Banerjee then wanted the personnel Manager io look into the problem more closelyand find out a solutionio the probl€msof workers on hourly basis. Questions : (a) What is the key problem in the case? What probably may be ihe "other things" which the personnel Manger is pointing out to Mr. Ban€rjee? efficiency go

(bJ Discuss the problem of motiv?tjon in this case, relatingto Herzberg'stheory. (c) What would be your recommendations as personn€l Managerto tacklethe problem in the organization?

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1,000

lMctGn
MANAGEMENT PROGRAMME. Term-End Examlnation December.2OO5 MS-2@: Pre-RevisedMANAGING : MEN Revised: MANAGEMENT OF HUMANRESOURCES
Time: 3 hours
Note: '

MoximumMorks: 100 Weishtose704

There are two SectionsA and B. Sectlon A hos ttlo sets. set I is meont Jor students rrho haue reglstercd prior to Jonuorg 2005 i.e. upto June, 2004. Set ll is meont for students who hoDe registered Jrom Januar9,2005 ond onwards. Attempt any three questlonsJrom Section A. All questions corry 20 morks each. Section B is cotnputsory lor oll and carries 40 morks.

'

SECTION A (Sel I) (Pr€-R€vised) l. Identily ihe sali€nt f€atures of personnel functions in the organisational cont€xt keeping in mind strat€gy, structute and systems. 20

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DeIine career planning. Explain implementalion of ihe process of career planning with the help of examples. Discuss the salieni features of job analysis. Eiplain what steps the HR manager ls required to take lor carrying out the function of job description. Identify the iactors leading to indiscipline. Explain the judicialprocessof dealingwith indiscipline.

20

20

5.

Writ€ short notes on any lhree of the following , (a) ft) (c) (d) (e) Principlesof learning Behaviourally Anchored Rating Scales Selecdoncrteria. Morale Consultaiivemachinery

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SECTION A (Serll)
(Rerdsed) lDefine and discuss the objectives of Human Resource Management. Discuss the chang:ng role of human resourceE view of changingsocialscenario.Explainwith in suitable examples. Discuss the concept oi outsourcing and its cons€quences from HR point of view.

20

2.

20

3. What is workers' pariicipation in management ? Discuss
the lactors responsible for its success.

20

4.

Explain lhe processof coaching.What are lhe condilions necessaryfor effective coaching ? Write short noteqon any trrre€ ol the following: {a) (b) (c) {d) (e) Team development E\ecutivecompensation Separation Human resource res€arch Talent management

20

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SECTION B Please read the following iwo cases and answer the 40 questions given at the end of each. (A) Case Study MANAGEMENT DEVELOPMENT Any efforts and inputs to improve current ar future mdnagement performance by imparting knowledge, changing attitudes and enhancing skill is called management development. It is an inhouse activity and includes co-acting, given professional inputs to increase knowledge and attempts lo change attitudes and enhance managenal skills. The aim of sitch programmes is to improv€ the perlormance of the organisation itself. Th€ Management Development process consists of (1) Assessins ihe organisational needs (2) Appraising Manager's Performance {3) Developing Manager's perlomance by susiained elforts.

..DELTA PRODUCTS'' Defba is ma,.tulactufing one under Products a comparry requiring Housing for and shednumber products of
Building Consblciion Industry. The products include hardware like door knobs, hinger, lock, tower bolts" sanitary fittings and floor tiles. AII requirem€nts of housing and building construction industry aie manufactured in different departrnents at tts Bhopal plant. The company wish€s io produce and rratket top grade products. Mr- Chakravarty, the Director ol Operations has been on foreign tour for over lhtee months to see the manufacturing lacilities at different plants world over Mr Chakavarty's goal is to give to

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the industry, wrirld classquality product at competitive .rates and pric€s. His ambition is to make DELm the class one producer in this activity in lndia._Mr Chakravady is a highly qualitied technocrat wiih excdtent backgrcunA al engneeins, genera) and rnatketing management. He had however limited exposur€ to Human Resource Managem€nt. You are hired as Manager of Human Resources. The supporirng team of highly qualified engineers. purchase managers and marketing managers ar€ young and almost all of them are in the age group oI 25 lo 28 and very enthusiastic.They are excellent as individuals but lack the team spirit and work very tard to excel in their respective specialised knowledge. Manv problems have come up for lack of communication, coordination, quality management and delivery schedules. The plant main@nanceis below average. The inventories are high and the industrial relaiions poor as none of the managers had an9 exposur€ io this subject. You are required to make a comprehensive Management Dev€lopment Programme lor Managers and Assistant Managers. Questions : (a) (b) How would you plan a programme for the yormg managers ? How will you test the efsting leve! o{ their skills, attitudes and team spirit ? What metiods of developmenial training would you like to use and why ?

{c)

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(B) Case Study
APPRAISING PERFONMANCE AII progressive compani€s have some formal or informal appfaising sysiems tof apptaising the performanceof their employees. Performance Appraisal is defined as any procedure that involves assessing employees' performance against sei standards and, providing feedback to the employeesassessed. The aim is to motivate employees (a) to improve their performance (b) encourage for better performance above par The reasonslor perlormance appraisalare (1) For $alary decisions, rewards, promotion. {2) To review employee's work related behaviour with a view to correcting any deficiencies. Appraisal should b€ central to career planning process. ..AJI,IBER PHARMACEUTICALS'' and markenng ln a pharma company manulacruring drugs and developed medicines, ihe a number of research staff has new products and

Iormulations which are effectiv€. But at the same time it has to meet severe competiiion fuonl stalwartswith loleign collaboration.Mr. Shah, the Vice President Marketing has a very successful Pharma Marketing background. He has been with

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the company lor the past 4 9ears. Mr Shah had made ambitiousplans for capiuringsizeable share of market in. the Guja{at State. The company being mediurn sized, Mr. Shah had k€pt his marketing departhent and the marketing team lean and trim. The fieid sales stafl was given aggressivetargets and were viftuallg pushed to reach the respective targets. The field staff worhed to their best abilities to compieie their respective targeis. Mr Shah had himself been working hard almost 11- 12 hours a day. There was no formal apraisal and reward system in ihe company. During last 5 years more than 60 Medical Representatives and ihe Aren Supervisors had left the compang due to unsaiislactory incrernents and I,romotions. Those who lefi the company were star worke6. But Mr Shah did noi care for ihis high turnover He was over confidentthat he would be able to hire {reshers and also select candidates who were not happy wiih their remuneration in their respeciive company. Mr. Shah had never communicated the field sal€s to stalf about their perlormance or reasons tor oot recognising thei{ outstanding performance in a lew cases. There was on the whole a great dissatisfaction good perlormerswere l€avingthe and

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Q estions (a) (b) (c)

I

What ao you perceive is the basic problem in .AMBER' ? What are the steps you nill take serially to conect th€ situation ? In the eveni of your suggestinga Performance Appraisal System (i) (ii) How will you decide a suitable system of appraisal ? Will your sysiem include merii, r€wards and promotions ?

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1,000

MANAGEMENT PROGRAMME Term-End Examination Decernber, 2OO5 MS-3@ : ECONOMIC AND SOCIAL ENVIRONMENT
Time : 3 hours Maxinum Morks: 100 (Weishtose 70Vo) Note , There are turo Se.tions A ond B. Attempt a.g three questions Jrcm Section A, carrging 20 morks each. Section B is compulsory ond cofties 40 matks.

SECTION A 1. Describethe criticalelementsoI politicolegalenvironment ot business. Explain bn€fly the impact of this environment on businessorgonisations, citing relevant examples. 2. While examining the institutional framework tor smatl scale industries(SSI), comment on iheir contribuhonto Indian economicdev€lopment. 20 20

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3-

Critically analyse the achievements and adverse effecls oI re$ialory {€mework in ihe course o{ lndia's industrialisation. Analyse the trad€ policy re{orms implemented by lndia in the 90s. What are its implicaijonsin enhancing Indias competitiven€ss the intematioDal in markei ?

5 . Bring out the distinguishing features of Industrial Policy
1991 and its impact on the technologystatus of Indian indusiry.

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SECTION B 6. Bne V des{:],betbe lndjan Jjnancial sysiem and analysethe significance and need for linancial relorms. Write short notes on any t..,o of the following : (a) (b) lr) (d) EnvironmentMovement lndustrial Grov"th Expedence Currenl Account Converhbi|ly EconomicReformsand Employment

7.

20

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1,000

MANAGEMENT PROGRAMME Term-End Examination Decembet, 2OO5 AND FINANCE MS-4@ : ACCoUNTING FOR MANAGERS
Time : 3 hours rl00 Moxtmum Morks (Weightase 70qo)

Note :

Attempt ang five questions. All questions corry equol morks.

1.

(a)

What

do

you

\rndersiand by

Management

Accounting ? How does it diller lrom Financial Accouniing ? Discuss.

Ol

Whv does an accountant Jollou., the principle "anticipate no prolit, provide {or all losses" ? On which accountingconcept is this based ? Explain it and discussits significance.

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2-

From ihe followingparticulars extGcted{rom the bookso{ Mr. Gandhi,prepareTradingand Proltt and Loss Account for the year 2004-05 and Baiance Sheetas on 31't Mafch 2005 after makingnecessary adjustments . Bs. Mr Gandhi's Capital a/c Stockas on 1-4-2004 Sales SalesReturn . Purchases Purchases Return Carriage Inwards Rent Cash with TradersBank Ltd. Discouni Received Inveslments as {50,6) on 1-4-2004 Furniture on 1-4-2004) (as ' Discount Aliowed Genehl Exp€nses Salaries SundryDebtors Sundry Crediiors

54,050 23,400 1,44,a00 4,300 1.21,550 2,900 9,300 2,850 4,000 1,495 2,500 900 3,770 1,960 4,650 12,000 7,400

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Loan from Dena Bank @ 72% Inieresi paid Printing and Stationery

10,000 450 1,700 5,600

InteresiReceived Audii Fees FrreInsurance Premium Travelling Expenses Postage and Telegrams Cashon hand Deposits 10% as on 1-4-2004(Dr) @ Drawjngs Adjustments :

725 350 300 1,165 435 190 15,000 5,000

(a) Value of stocksas on 31-3'2005 is Rs. 39,300. This includesgoods returned by customerson 31-3-2005to the valueof Rs. 1,500 of which no entrv has beenpassed the bool€. in purchased 1-1-2005 include furniture {b) Purchas€s on for Rs. 1,000. is {c) Depreciaiion to be p}ovided furniture@ 13% on

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(dl

The Loan Account lrom Dena Bank in the books of Mr Gandhi appearsas foliows I

Date

Particulars

ranrculars

Amount Rs

31-3-05 To Balance c,/d 10,000 1-4-04 By Balance b,/d 5,000 31 3-05 By Bank a,/c 5,000

10,000

10,000

lnterestpaid includedRs. 300 paid to Dena Bank.

(t
\g/

Inter€st rec€iv€d representsRs. 100 lrom sundry debtors and ihe balance on investm€nts and depositsProude lor interesrpayable to Dena Bank and lor interestreceivabl€ investmentg on and deposits. Provide r€serve for doubtfr.:l debts at 5% on the balanceunder sundry debtors. No reserveneeds to be createdlor th€ deposits.

(h)

3.

(a) What is a Jlexiblebudget ? How does it diJfer trom a
fixed budget and a rolling budget ? Erplain th€ utility ol a llexiblebudgel.

(b)

Explain th€ tbree impoltant control ratios to judge the actual per{ormance with the budgeted Performance.

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4.

(a)

"Return olr lnvestment is a primary ratio but it is noi free from ambiguity." Discuss this stalement and explain the various versions o{ ROI as used in

(b) (cl

What is the role of financial maoager \rilh regard to dividends and divi&nd polica ? How does Depreciation act as a tax shleld ? Explain with an exampie.

5 . From the following particulars relaijng to ABC Ltd.,
prepare a stalernent showins Changes in Working Capital along with Funds Flow Statem€nt :

Particulars CurrentAssets lnvestments Land Plant& Machinery (Accumulated Depreciation) Patents CurrentLiabilities 12DkDebentwes 1470Debentures

31st December

2004 2005 1,35,000 1,27 ,200 15,000 21.,400 9.000 9,000 81,000 1,05,000 (24,000) t26,000) 76,200 . 1 2 , 6 0 0 TotalAssets 2,32,2002,49,200 24,600 34,800 43,400

39,000 EquitgShareCapital 90,000 1,00,000 Reserves future loans on inlestmeris for 6,000 3,600 Retainedearnings 68,200 71,800 Total Liabiiities Capital 2,32,2002,49,200 &

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Add,tlonol Infof'nation. (i) A r€conciliatjonoI the balances retainedearnings in is as tollows :

Beginning Balance Net Income for c$rent yeat AwaYd received frcm settlement of patent inlringement case Dividends paid Ending balance

68,200 3,000 15,600 {15,000) 71,800

(i')

Net income of the current year 2005 includes a loss oI Rs. 4,800 on ihe sale ot a -palt of plant. The plant was of the value of Rs. 19,000 at the beginning of tie yeat accum\rlated deprecation being Rs. 6,000. Investments of Rs. 15,000 was sold during the year at a loss. The loss was charged io the reservefor future losseson inveslments and did nol appeal on the Income Statement.

{iij)

{iv) During the cLrffent year 12a/odebenfures were called
fot rcAemption. Most of th€m were retunded through tbe issuaDce new 74o/odebenturesand the rest ol

werererred Jorcash (vl The equlty shares were issued in exchange.of machinerv. The resi of the plant and machinery were purchased cash, for

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6.

The trading resr ts of Ashoka Ltd. fof the fiFt year ol businesswhich ended on 31st March, 2004 are as Iollows r

Bs.
Sales(at Rs. 40 per unitl LessMateyials lnbour Vatable overheads Fixed overheads Pro{ii

32,00,000 12,00,000 4,80,000 2,40,000 5,00,000 24,20,000 7,80,000

Duing Il',e year the factory has been working at 50o/o capacity. The marketing manager has estimat€d thal the qt/aniity so)d could be doubled dur;ng 2004-05, il ihe selling price was reduced to Rs. 35 per unit. No change is anticipated in unit va/iable cost but cefiain adminisirative changes to cope with additional volume of work would incrense tix€d ovethead by Rs. 40,000_ You ore rcquired to : (a) O) E\,nluaie the marketingmanager'sproposal,and Assuming ihe sllling price wns reduced as propos€d, unii variable cost remaining as in 2003 - 04 and Iixed overh€ad increased by Rs. 40,000, calculate what quantitywould need to be sold in 2004 ,05 in order'io yield a ptoiit Rs. 10,00,000.

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7.

(a)

What do you understand by variance analysis ? Why are the varjances compur€d? XYZ Lid. which has opted standard costing, furnishes lou the {ollowing jnformation : Slandard Material for 700 un s of finished products Price of materials Actual Output

(b)

1000 kg . R€. 1 per kg

2,10,000 units Openins stock Nil Purchases 3,00,000 kg. Ior k. 2,70,000 Ciosing siock 20,000 kg
You are requled io calculate : la) (b) 8. Direct Matenal Usage Variance Direct Materiai Price Varianc€

Wriie explanatory noies on the following: {a) (b) (c) (d) Tradiig on equity 'Ftst in. 'Lasi First out' vs. in, First out' Cash cycle afld Operating cycle Rights shares and Bonus shares

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1,000

MANAGEMENT PROGRAMME Term-End Examination December, 2OO5

MS-s@ : MANAGEMENT MACHTNES OF AND MATERIALS

Time : 3 hours

Maxinrm Mdrks : 100 . (Weishtose 70%)

Note :

Section A has fiDe questionsthat cairg 20 marks each. Attempt any three questions from this Section- Sect'ion B is computsory ond carries 40 morks.

SECTION A

1.

{a)

Explain Product Design. How do€s Product Design influenceProc€ssDesign ?

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(b) Processingtimes (including set-up times) and due dates
for six jobs waiting to be proces*d at a work centre are given in the following table : Job Time Processing (Days)

Due Date (Days) 7 't6 4 17 15 18

2
B C D E F
Determine : (i) (ii) (iii) the sequence of jobs the average flow time tl"€ aueEge job lateness, and

8
4

10 5 12

(ivl. the averdge number of jobs at the centre, for each oI these rul€s : {a) (b) SFt, and Earlier Du€ Date.

10+10

2.

(a) Describe ihe product selection process with the
help of an €xample of a new small car.

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(b)

A producer ot f€lt-tip pens has received a forecast of a demand ol 30,000 pens for ihe coming month from its marketing department. Fixed cosis of Rs. 2,50,000 per month are aliocai€dto ihe felttip operation,and variabiecostsare Rs. 5 p€r pen. (i) (ii) Find the break'even quaniiv if p€ns sell fot Rs. 15 each. At what price must p€ns be sold to obtain a monthly profit of Rs. 20,000, assumingthat esiimaied d€mand materialises? 1O+1O

(

3.

(a) You have been retained as a consultant for
establishm€nt a steel plant. Discussat least ten oI important factors that 9ou consider are relerant for Iocahnga steelpla']t. Give examples. paneutng {b) Factory Buiit Homes, Inc. (FBH)purchases comlronents from a nearby Westem Mills for Rs. 5 per unit. It expectsto use about 4,000 units dunng the coming year. FBH estimates thai it costsRs. 30 to place an order and Rs. 1.50 per unit per year for carrying and storage costs. Westem Mills can provide FBH with immediate delivery of any r€asonable quaniity. {i) iii) What is ihe most economical quantity for FBH Ho\r mang orders per year should be placed ?

{jji) Whai is the toial yearl_vcost associated with ordering, carrying and purchasing the EOQ

10+10

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a. (a) Supplier selection and supplier relations are
consider€d imponant for the p}tchasing departhent Should the quaLity assuranc€ department €ver become involved in these is$es ? Why or why noi ?

(b) The v,,areho\rse manager at the Textile lmport
Ceoter eltinrates that the purchase o{ a Rs. 7,00,000 forklift would save2 hours per shift of labour time. The firm works 2 sh'fis per day and 300 days per year. If the labolr cost io the firm (includingbenefits)is Rs.320 per hour, how long 10+10 would ii take lor the forklift io pay lor itsell ?

5.

la) What is ihe cost ol quality ? Explain acceptance
sampling. Disc\rsssampling plans.

ib)

The ume .equired io completeeach ol six jobs on two machin€s are shown in the tabl€ below. Each job must Jollo\x the same sequence, beginning wilh machine A, and moving to $achine B-

Job B

Time (houts) Machine B Machine A

c
D E F
(i) ili)

30 720 50 20 90
110

80 100 90 60 30
10

Find the s€quence that will minimise total compleijontime. Coostruct a chart ol rhe resulting sequence and l0+1o find machine B's idle time.

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SECTION B A project contains the following activities aLongwith th€ir pred€cessors times for completion, and Activity ImmediatePredecessor Tim€ (Days)

5
B

4
6

c
D E
F G H I li) B

2 1 7 8 4 3

c
C,D E F G,H

Drawthe network diagram.

(ii) Showthe earlystartand earlyfinishtimes. (iii) Findth€ critical path. 7. Writeshortnoteson anytour of th€ following : (a) Learning Curve (b) ABC Analysis (c) Robotics {d) Cons m€r'sRisk (e) Bath tub curve (0 P|eveiiiveMaintenance 1,000 8+6+6 4x5=20

MS-5@

MANAGEMENT PROGNAMME Term-End Examination December.2OO5
MS-6@: MARKETING FORMANAGERS
Tlme: 3 haurs
Nole I

Maximum Mqrks: 100 Weishtase 700/d

(I) (iil

Attempt ony three guestionsliom SectlonA. Sectlon B is compulsory.

(iii) All questions carry equal morks.
SEC?ION A

r. (a)

Marketing success largelg d€pends on the effective STP strategiesadopted by the lirm. Discuss the above statement with t\ro examples of your choice, following and why ? (i) {ii) Premium brand of after shave lotion Rs. 1 lac amall car proposed by a leading lndian cat manutafiu{€r

(b) What would be suitable segmentation basis fot the

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2.

(a) What is MarketingR€search Discuss scopeand its ? major adlantagesthat Iirms derive by undertaking this activity. rnustevaluate befor€ {b) Wbat are the cdteriamarketers seleciing brdndname? a

3-

is {a) Sal€srnanshjp jn-builtwith everyattractivepacking. Do you agrce with the above statement? Discuss with the h€lp of suitableexamples. (b) Bnefly discussthe Iactors ihat marketers shouid consjder whjje deiermining ihe promotion mix {or their offerings,giving suitableexamples.

4.

Write noleson any thtee of fhe ldlotwtg : (i) Hou,ard-ShethModel

(i0 Characteristicsolorganisationalconsumers (iii) Routinisedresponsebehaviour (iv) Functionsof Retailers (v) Ad!"ntages ol cybef marketing

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t
SECTION B 5. Sh-dythe casegivenbelowand an$r,erthe qkstions given at tbe end. Mr. Harish Jain, CEO oi Eneigetic Enterpdses, has estabiished firm for the manufactur€ the and marketingot an innovativeproduct.The firm earneda repuiationof iis product wjthjn two yeays of its inception and enjoyed monopoly position in the mark€t lor its product. Now it has a turnover aboutRs. 80 crores. oi Three yeats back, some firms entered the market and offeredcheapsubstiiutes which were of betterquaiity. This year, Mr. Harish Jain is wonied because about 40% of the markelsharehas alreadyb€en iaken away by the new firms and he is not able to check this trendMr. Jain has been looking atter both productionand marketing functionsthough finarce is being looked afier by a finance manager having a professionaldegree in charteredaccountancy. Jain has recentlyloweredthe Mr. price of his p/odutt to fight corDpetjtion,but even this yotl for adrice has not helped. He has now approached to stabilise sales his volume.

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@uestions I ia) What is tle orientation of Mr. Jain in seliing his product?

(b) What environmental factoF have cau*d a worry to Mr. Jain ? (c) As a consultant,what strategies will Vou suggestto checkfurther tall in marketshare ?

MS-6 o

1,000

MANAGEMENT PROGRAII4ME Term-End Examination December, 2O05 MANAGEMENT MS-7@: Old : INFORMATION AND COMPUTERS Revised: INFORMATION SYSTEMS FORMANAGERS
Tine : 3 hours Maximum Marks , 100 (Weishtoge70Yo) Note : (i) There ore two sets ol question paperc i.e. Set 1 & Set 2. get 1 is for those students uho hove registered lor this course prior to July 2004. Set 2 is Ior those students uho haue registeredfor this course lron July 2004 onwatds. lii) There are two sectionsin each set Attempt any three questionsJrom Section A ot' edch set. Section B is compulsory. A total ol tioe questions hooe to be attempted. All questions corrg equal marks

(iiil

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P.T.O.

Ser I (Old Coutse) (lnformation Manag€ment and Comput€ls) SECTION A l. (a) "The lufure bblongs to knowledge workers.' 10 Explain. (b) Explain the use ol Lotus 1-2-3 in modem business grving 10 exarnples.

2. "Modem day management actMiies involve many
computer appllcations." Explain. Discuss the use of 20 in Managernent. computers Human Resource the 3 . Discuss role of MIS at differentle'"€lsof management. Suggesta suitable structure for MIS clearly giving the 20 desirable characteristics MIS. of 4. a ExplainDecisiontablesand Decisiontrees.Der,elop flor you are lamiliar with. chart for someactivitythat

20

5.

Using graphicalmeihod, find out the minimum tota' cost 20 for ihe following M i n i m i sz = 3 x 1 + 5 x 2 e (in Rs.) Subjectto \+x2=200 xls80 xz> 60 xl,x2>0

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SECNON B 6. Rolta Co. has three planis X, Y and Z, which can supply to the distributorslocatedat A, B, C, D and E. Monthly plant capacities 80,50 and 90 urfts respectively. are Monthlgrequirements distributors 40, 40, 50, 40 of are and 80 unitsr€speciively. rransportarion ic given Unii cosr below in Rs. Find out an optimaldrsrribution rh€ company in Ior ord€rto minimise totaltransportation the cost. From B X 5 4 8 7
4

To

c
6 7 6

D
6

E 3
6

6
6

z
7.

8

3

Five different machines can do any oI the five required jobs. with different profiis resulringlrom each assignmenr as shown below. Find out maximum profit through optimal assignment. 20 Job I Machine

B 30 40 40 25 29 24 32 38 62

c
40
27

D

2a
21 30 36 34

E 40
36

2 3
4

33 40
41

5

35 36 39
P.T.O.

r

Ms-7o

(Intormatioo Systems for Managets) SECTION A 1. (a) Discusslniernet and its applicationin buslness How does computer help us in decision making ? Give examples. (b) Explain 10 diflereni hardware components of a l0 computer.What ar€ varioustypes ot computers?

2 . Discuss the importance of MIS in modem organisations
What are computer viruses and how can they be Prevented ? (a) What are the various phases of development cycle ? Explain. a sofi'r,/are

20

3.

10
Financial

(b)

Discuss applications ot computers in Managementfunction.Give examples

10

4.

Analvsisand qesign What Explain the processof Systems are the main requirem?naslor implementai,on and maintenance of the designedsystem ? (a) Give the f€aturesof VisualBasicand its applications in industry. Why has JAVA become so popular ? What are its leatur€s? Give its application

20

10 10

(b)

MS-7o

SECTION B 6. Write descriptive notes on : (a) (b) (c) (d) ?. (a) Neural Nehrorks Artificiallntelligence Daia Warehoirsing and Data Mjning Value and Cosl ot lnlormation Explain ERP, CRM, SCM and BPR. How bave they 10 helped organisaiions ? between DSS, MIS What are the main differences and EIS ? cive lew examples. ,/

{b)

10

Ms-7@

1,000

MANAGEMENT PROGRAMME Term-End Examination December, 2OQ5 M$€@ : OUANTITATTVE ANALYSISFOR APPLICATIONS MANAGERIAL
Time: 3 hours Maxinum Marks: 100 (Weightase70o/o)

(i)

Section A

hos 9ix questions, each ctlrrying

15 marks. Attempt ong four. (ii) Section B has two questions. Section B is

compulsory and carries 40 marks. (ij, Stdttsftco/ tobles may be supplied on demand.

MS-B@

P.r.o.

SECTION A 1. End the qtrartiledeviationtrom the Jollowing data :
Class Inlerval

Frequ€ncy 8

0-15

15-30
30,45

26 30 45 '20
77 4

60-75

75-90 90- 105

ll 2 perceni of the books bound at a cefain bindery have defective bindings, us€ the Poisson approximation io tbe binomial distrjbution to determine ihe probabilitg that five book oI 400 book bound by this bindery, will have defeclivebindrngs.

3 . Gve some situations where ihe exponentja' distribution
has been found useful. A highway petrol purnp cao serve on an average 15 cars per hour. What is the probability tl]€t lor a Wftic.]lar car, fhe time taken will b9 less than 3 minutes ?

MS,e@

The coef{icient of rank correlation of the mark obtained by 10 sfudenis in hro particuiar subjects are found to be 0 5. lt was latet discovered th;t the diff€r€nc€ in ranl.s in two subjectsobiained by one student was wrongly takeD as 3 ihsiead of 7. What should be the co{tect value oJ the coefficient of Rank correlaiion ?

5 . An oil cornpany claims lhat less than 20 percent of all car
owners have not tried its gasoline. Test this claim at 0 01 leuel of significance, if a Endom check reveals that 22 of 200 car ownershavrz not tried the oii company'sgasoline.

6.

Write short noteson any ttrre€ of the lollowing : (a) Sequence Sertes and (b) Censusand Sample (c) Criterion Optjmism of {d) Power CuN€ (e) Useof Autoconelation identilying in time seies

'Ms-8@

P.T.O.

SECTION B ?. of consumption a In 16 one hour test runs,the gasoline heaw d\rly engite aveftged 16 4 gallons{,ith a standard deviationo{ 2 1 gallons.Test the clalm fhat the averag€ gasolineconsumptionof this engine is 120 gallonsper hour. 8. In a surveyoi populaiion, it was fotmd that 40% of the work ll wereil)it€rate th€ irendcontinues. maiepopulation otd the probabiliiy that out of a random sample of win ol ihe 2,00,000malepopulaiion, numb€f illiterates be (i) iess thao 79,500 (ii)morcthan 80,500.

Ms-8o

1,000

MANAGEMENT PROGBAMME Term-End Examination December,2005 Ms-9 @ : MANAGERTAL ECoNoMtcs
Tihe : 3 hourc Maxiatm Morks: 70O (Weightose70%)

Note :

This p{rper consistsof thrce SectionsA, B ond C. &ction A is to be.dttempted students by registere.d for MS-9 prior to Jdnuary,2004 i.e. upto Jul9, 2003. SectionB is to be attemptedby students registercdIor MS-9 Jrom January, 2004 onudrds. Attempt an! three questions Jrcm Se.tionA or B d€p€nding upon gour ddte oJ rcgistrotion. Seclion C is conpul^ory for all. Section C comprises 40 marks while SectionsA and B of comprise 5 qrestions oJ 20 marks each-

Ms-so

P.T.O.

SECTION A
l. Whai are the impotiant characteristics ol perfeci compeiiiion ? Explain (with the h€lp ol graph) the protit maximisinE outpui under perlect competition in short run.

2. D€scrib€ the followjng in lerms of short-run costs i
(a) (b) {c) {d) {e) Total cost Average lixed cost Average variable cost Average iotal cost Marginalcost

3 . Explain ihe optimal prcduct mix in the case ol a joiDt
product firm.

4.

Discuss Price and Output deteymination under perfect coinpetition and monopolistic competition in the long run(a) (b) Explain the Dscounting Pnnciple with examples. Distinguish bet\reen Demand function and Demand

MS.9@

2

SECTION B

l.

Piscuss, with suitable examples,how managerial econornics !s an integral parl ot businessactivitg.

2. What are the major marketing approaches io demand
measurabenl ? Examine.

3 . Discuss in detall the optimal combination of inputs in the
long run.

4. Define cartel arrangement. Explain profit maximization
under cadel anangement, Write shon noteson any thre€ of l}le following: (a) {b) (c) (d) (e) Value Maximisaiion Produciion Possibilit Cu'!e ExponenttalSmoothing Income Elasticity of Demand Strategic Entty Baftiers

M se @

P.T.O.

gECTTON C 6. Stafe wheih€r th€ followlng statements ate ttue ot to'lse. , your answet. Jus(iF,J (l) Scale is a shori run concept The slope of the short nm produciion function is equal to average product oi variable input.
( i i i ) The

20

(it

average product and marginal product oI

variable inptrts are equal at ihe level o{ output that corresponds to the infl€ction point of the short run production lunctlon.

IM The long run totai cost curve is derived lrom the
firm's expansionpath. In ger,eml, a firm should continue to hire addiiional units of an input so long as the marginal revenue product o{ the inp\rt is greaier thaD ihe marginal resource cost of the inpul,

MS-9O

7.

(a) Given ihe Jotlo\ringdata,calcrrateth€ price eiasticig of demandrrhen pfice increases from Rs. 3 00 per unit io Rs.4 00 per unit. 10 Px ber unit)

Qx 750 1250 2000 3250 4650 8000

(b) Consider {ollowingd€mand the and suppivihctions : Demand:200-2P Strpply,20+4P price and quantitysold ? What are the equilibrium

Ms-s@

1,O00

MANAGEMENT PROGRAMME Term-End Examinalion December, 2OO5 MS-10@: ORGANTSATIONAL DESlcN. DEVELOPMENT CHANGE AND
Time : 3 hours MoximumMarks: 100 (Weishtose70%)

Note :

'

There ore tuo SecttonsA ond B. Section A has tuo sers.Set I is meont the sludentswhohaue Jor registercd MS-10prior to Julg 2004 i.e. upto Jor Januorg.2004. Sef 1l is meanllor the students t ho houe registered lor MS-10 for Julg, 2004 semester onu)ords. Attempt any four questions lrom Sectioh A. AII questionscarrg 75 morks each. SectionB is compursory Jor oll, ond coffies 40 morks.

MS,lo o

P.T,O.

SECTION A Set | (Pre-Revised) l. struchne of Matrix with Mechanistic organisations.How are they relevaDt ? Cite suitabl€ examples, Compare the

2- DescribeBureaucraiic ScientificManagementtheories and
Lvith relerence to organisingwork and its significance in the presentscenario-

3 . Describe the

relationship behveen strategies ol organisational development and structue. Ljescribe lhe skills required by a change agenr in rhe organisationalcontext with rclerence lo technological

4.

5.

Wrile shorl noreson any thrce ol the following : (i) (ii) Formal vs. Informal organisation structures Alternativeforms of Work Restructuring

(iii) Force Iield analysis {iv) Ofganisationvs. Institution (v) Purpose of organisaiional analysis

MS-10 @

SECTION A Set ll (RevGed) l, Descrjbe in detail the importani factors which alf€ct organisation design.How are they relatedto organisational effectiveness ? Describe Hybrid and Virtual organisational structlrres and their merits and demerits.Cite examples. Where are such structur€9 effective ? Discuss. Describe the €merging trends in work organisations. Discusshow interview method is useful as a diagnosiic tool. Provide suitable examples {rom orgaiisational context. Write .hon noteson any tbr€e of the ,ollowing: (i) (ii) (iii) Managingresistance change to Role analysis Ergonomics

2.

3-

4.

(iv) Boundarylessorganisation (v) 7 S model to understand organisation

t\ls-l0 @

P.T,O

SECNON B

6 . Read the case carelully and answer the questions that
follow : Ramesh Ambani was appointed as Operations

Planning Manager in the Surepleasure Airlines last monih. Immediately aiter reporting to his new job, Ramesh recognised that there were dilliculties with the time control section. This section consistedol sixteen J'unior cierks, eight senior clerks and a supervisor wfio reported to him. The basic function of time control section is to maintain records of all rotatable parts used on a fleet of eighty-Iive passenger aircraft. Records rellect the date on which a part was installed or removed and iotal aircraft Ilying lime. To mdintain identification, serialnumbersare recorded for each controlled part. The Airport Authority rules require strict control of parts having limited life. Parts that have operated beyond their approved limit bave to be removed and overhauled. The problem that Ramesh noticed was that there were numerous instanc€s of irnccurate records. The recotds were in violation of Airport Authority regulations and poor record-keeping resulted in excessive overhaul costs. When Ramesh studied the situation, he observed that the employees had formed an extremely strong

Msro @

inlormal work-group. The members woujo accept or rqecl new eiplogees into the qJork-group based on factors completely unrelatedto the iob. Some outsiders obseru€d that il a nerv employee's behaviour was nor ln tune with ihe infofially determined norros, he or she had little chance of s.uccess wiihin the group. members anarged for coDtributory dine-and-dance palty every week-end and had a great time tog€lher. Those who did not like io particjpat€ and socraiise were ignoredand 'nd& ro {eet uncomlonablelo the potnt that they would quii the organisaiioD. This r€sulted in an annud tumover |ate of apptoximatelg 200 petcent. Ramesh realis€d ihat this probtem had to be solved immediaiely or major problems could result for the Surepleasure Airlines ln future. Qa€$tiors (a) What are the dgs{unctions of.infoymal orgarisarron in the Surepleasure Airlines ? Could there be any bene{its of inJormal organisaiion in this company? Whai $uggestions!^rouldyou give to the manag€ment of tlts compang to cope wiih tbe inlorma) organisation ? The group

h) (c)

MS-lo @

1,000

MANAGEI'{ENT PROGRAMME Term.End Examination December.20O5

MS-llO: Pre-RevisedCORPORATE : AND PRACTICES POLICIES Revised: STRATEGIC MANAGEMENT
Time : 3 hours MaximumMorksi 100 (Weightoge 70Vd

Note :

There ore three Sections A, B and C. Section A is meant Jor the students ..lho hooe registered for MS'tt : Corporoie Policies ond Practicesprior to Januory 2005 i.e- upto July 2004. Section B is mesnt lor the studenti who haw registercd Jor MS17 : Strotegic Manogement Jrom Januory 2005 onwords,Attempt any three questionsJrom Section A or B. AII questions carrg 20 matks eoch. SectianC is colnpursory lor all, and carries 40 marks.

MS11@

P.T.O.

.

SECTION A (Pre-Revised Course) (Corporate Policies and Practices)

1 . D€scribe the role of BODs in th€ ov€rau performance of
the company. Discuss Erious measures to improve the effectivenessof BODSWhat do you understandby "Mega" environment ? Discuss the differentconstituents th€ Mega environment. of

20

20

3 . Explain Porter's framework to anaDse industiy structure.
How does it help in d€terminingthe attractiveness an of industry ?

20

4.

Distinguish bet'r,,e€n related and unrelated div€rsification. Explain with the help of examples. What are the causesof cor?orate decline ? Briefly discuss strategies arresi the decline. to

MS-l1o

SECTION B (Revis€d Course) (Strategic lManagem€nt)

Explain the \,"rious steps involved in Strategic Management process in a single businessfirm.

2 . Explain the following I
(a) {b) Types of resources Strateglc imporiance ol resources

20

3. Discuss the importance of differeniiation .strategg in the
pr€s€nt compeiitive. environment. Explain taking into consicleration its advantagesand disadvantages.

20

4.

Every strategic alliance incurs certain costs and comes with a s€t of risks- Explain any five costs^isk of entering into a strategic alliance. Corporate culiure plays an important role in the successof an organization. Explain giving suitable example.

M S - 1@ 1

P.T.O.

SECTION C 6, Read the case carefully, analyze it and ans,wer the questions that foflow : 40 NEECO IIMIT.ED At the end of the recent fivejear plan, it was

estimated that there would be a considinble demand in the manufacturing capacitg of power transformers in the ' country. It was further projected that the gap between demand and the manufacturing capacity would be even larger in the subsequentplans. Thus, anticipating th€ country'sdemand in future, Ne€co Limited decidedto set up a new unit for manufacturing transformers- This was in addition to the manulacturing capacitg already built up at one of the existingfactories. Formal Planning Process Formal planning was introduced jn ihe very filst year of the commencement of activities at tbe new rmit, The planningprocessat Neeco Limited includedthe settingup of broad objectives and the preparationof the three yeat fotecast. In a letter addressedlo.departmental heads, the General Manager, Mr. S.K. Patel said, "The tjme has come to put down on paper the objectives and goals ol our organisation and to develop a proper framework whereby we can take a more systematic look at the future we are heading for. This, I believe,can be achievedby

MS-l1 @

iNoh,erient

and cooperalion ol all ihe departmenlal heads in putting into practice a cultufe of planning." The responsibility for developing a three year plan

\ras entrusted to th€ planning cell, which reported dir€ctly to the Generdl Manager. There was a separate

I

controller's oflice which looked after budget preparation and the subsequent monitoring of actual perlormance. Goal Setting Proc€ss

I I

Planning began each y€ar in the month of April wiih the €stablishment of goals by the top management. The group consisted the GeneralManager top management of and his variousIunctionalh€ads.The goals w€re set both in qualitative as w€ll as quantitative terms. The quantitative goals were in tenns of growth in sal?s and profits- Com$€nting on lh€ quantitative goals, Mr. Patel observ?d that : "ProJit is th€ primary goal". The planning cell, after collectingdl the infotmation, consolidated and integrated the data and prepared op€taLingresull<and ca-h llow proiectionsfor rhe three

MS,l1o

P.T.O

Exhiblt-l NEECO LIIfITED
Ia) A Tempotul Oueniea of the plannjng process

Date 1stWeekof April

Steps in Planning Planning call sends felevant Iormats to departm€nial heads, with deiailed explanations, By the fouth week, the various departmentssend th€ lormats back to the planning cell, duly filled. Planning oflicer compiles all the data and puts it in an integrated form The tirst draft ol the plan is discussed in a management group meeting, wherein several suggestions emerge and the &aft is thoroughv revised by resoleing ihe conflicting objectives of various deFartments. The final dmft of the plan is readgand is sent to corporate headquarters,

4th Week of April

lsr Weekof Mag

2"d Weekol May

MS-l1o

(b) R€sponsibiJity Plan Preporotion tor Segment oI the Plan ResponsibiliB'

Sale PIan (Order Book Position) Manager {Marketing) Produciion Plan Materials Plan Manporrrer Plan Township DevelopmentPIan Integration ol Various Segmentsof Plan and Final Plan Document Manager (Production) Materials Manager Personnel Manager Manager(Projects)

Planning Olficer

Be{ore finalisins the plans as prepared by the various lunctional/departmentheads, a detailed discussionwas held. Durjng these discussions,,"?rious departmental heads explained the basis o{ their res!,ective plans. The final plan was arrived at afier resolving the conflicting objectivesof variousdepartments. The Ptanning-Budgetirg Linkage

Immediately aft€r the plan was approved b9 the ManagemeDt C,roW, the process o{ preparing a deiailed budget for the next year was initiated. The three year plan set otrt the broad objectives for the first year and projections lor the next txo yeays. A detailed exercise had alr€ady been conducted in preparing the broad objectiv€s, which servedas a basisfor th€ preparationof

MS,ll @

P.T.O.

a detailed budget for the ensuing year. Thus the first year of the plan document, with necessary mcldifications, became the budget for the next year. The three year plan document and the budget w€re, therefore, -closely inter-related. lt was said that the preparation of a three year plan was, in a way, a process of creating an oiganisational climate for a rigorous and time'consuming Ptocess of budgeting. R€actlons of Execuiives A tew executivesfrom the produclion depariment had the following comments to make with regard to th€ formai plan : "The forms are lime-consuming and tircsome. Here, when w€ are already ov€rbudened with our daily roltine, who has got time to fill in figures in these lengiby forrns. We are more worrjed about day-to-day problems, rather than about the 3rd year from

Executives from other departments commented : "Planning has led to greater participation in the managem€nt process and thus, has created a culture of rnanagemenlby participation.The involvementoI all of us in the planning process has given us an opportunity to take a wider p€rspective and has broadened our horizon. Some of us now undelstandeach others ptlrblems in a better way. This has paved the way jor bettet mutual coordination."

MS-l1 o

I

"Some of us now leel more confident of taking up higher responsibiliti€s tulure. Planning has helped to in groom lead€rc. lt has tumed us from technocrais to managers and bureaucrats.'' "Figures by themselves are not very impodani. Figures without unde/standing the prcces9 ol how io obtain them, are irrelevant. What is importanl is the process oI plannlng, rather than filling th€ ftgures in prescribed formats. This process had led to greater managementparticipationin shapingthe future. Planning has become a frame of mind and a way oI thinking. It has become part o{ our managemeni process," Que$rions : (a) Evaluate th€ lormal planning process at Neeco Limited. Critically examine the reactions oI ihe various exec\rtives as statgd in the case. Discuss the imporiance ot a three year plan. has prevenled us {rom becom:ng

{b)

{c)

I

M S . 1@ l

1.000

t*"'@-l
MANAGEMENT PROGRAMME Term-End Examination December,2OO5

MS-21@: SOCIAL PROCESSES AND BEHAVIOURAL ISSUES
Time : 3 hours Moximum Morks : 100 (Weishtsge70o/a)

(i)

There are tuo SectionsA ond B. Section A hos two sets: Set I is meant lor the sfudents l,rho hooe registered lor MS21 prior to Januaty, 2004, i.e. upto July, 2003. Set II is meont Jot the students who ha)e registeredlor MS-21 Jron Jonuary, 2004 onwsrds.

(iii)

Attempt ony totn questions lrom Section A. A1l questions carry 15 ntarks each. Section B is co','rtulsgry 40 marks. for all and carries

liu)

MS-21 @

P,T.O.

SECTION A S€t I (Pre-Revised) l. D€scribethe evolution from an agradan to an industrial envronmelr and how L alfecteorhe work environinenr.

2- WhV is it imlro(ant to $derstand human behaviour tn
wofk enviro;ment ? Describe the factors which affect indNidualditferences. Cile *rirdbtpexamptes.

3. Describethe processol perception.Why is it r€levantin
the organisational€nvironment and functioning ? Cite suitableexamples Explain transactional analysis and how ii helps in understanding Interpersonal styl€. What are the pitfalls of this process if used in isolation in the organisational context ?

5 . Wfiie short notes on any ttrree of the followtrrgl
(a) (b) (c) {d) (e) Power vs. Authority ContingencyControl Model Paii€rns of Communjcation lTpoadnce ot feeduck Schein'sSoc'alisation Model

MS-21o

SECTION A Set ll (Revised) l. Describ€ any two theoriesof motivationand their relevance in the modern work context. 20

2. Identify the difference between a sroup and a team.
Explain the importanceoI teams in an organisationand suggest suitable plan to build effective ieams 20

3.

D€scribe different channels ol communicationand the importancefor enhancingHR functioning.Cite examples. 20 llir'ngy''1'' 6"*n"n dn emotronanc p.nperdment Why n iL inporant lo underrdnd enorioncat work ? Drscu>:. 20 Write short noies on any rhree of the following : (a) (b) (c) (d) (el Valuesand ethics Cosnitive approachto leaming Imporianceof behaviourmodificaron Crossculturaltraining Importanceof understanding personal'ty

4.

5.

20

MS.21 @

P.T.O

SECTIONB 6. Read following th€ case carelully answer questions and the
given ai the end i

Sudhakar. the technical head at Moni. El€cironics Ltd.. was happy that he was able to fill up the i\ro vacancies the sysiems in departmentby selecting Ajay and Ganesh. Ajay was a M.Sc. (Electronics) degree holder along with 6 months of industrial experience. Ganeshwas a fresher, wiih first class degree (in elecironics) engineering. Both Ajay and canesh w€r€ intelligent, hard working and usually were able to complete the projectsassigned ihem. to After a f€w months. at Mont. Sudhakarr€alisedthat Ganesh always perceived himself to b€ more qualified ihan Ajay, becaus€ his engine€ring ol background coupl€d with his betier communication skills. Once h€ had o\erhpa"d Cdnp\h raking rhe fu l credii lor overseerng aF overseas project completed in an efficient manner. Sudhakarspoke to their (Ajay'sand canesh's)immediat€ superior Naveen, who confirmed that completion of the said project was a combined effori, wiLh Einer more inputs hom Ajay's side. He also told Naveen to have a talk with Ganeshand rectify communication gaps, if any.

M S2 1@

t-

The talk seemedto help Ganeshwho realisedthat if he had to come up, he had to itanslom his image for ihe good and iry to mould himselfintc a sirategicthinker. Ganesh honed his skills and staried attending marketjng to and strategicplanning classes upgrade his knowledge. The classesopened his eyes on bow lo make assltmptions on projeci sales,r€venues,costs and profits. Very ofien he was seen voluntarilyhelping his superior to study the company data and analyse it. Seeing the change in Ganesh, Sudhalsr was hapDy. Observing Ganeshs motivat'on, at the €nd oi the probaiion period, he was olfered a conlirmed job as an assistant manager. Meanwhile Ajay was offered the position ot a database analyst, after his probation period was completed succe\(lullv. - Sudhakar had presumed that both Ajag and C,anesh wolrld be happy on being conlirmed and promoted. One day le happened ta meet the Humar Resources head during an informal meeting of the various heads of depatttnenis to discuss about the managerial problems they each grappl€ with. The HR head was speakingto Sudhakar,"l was satisfied and feeling quite competent as a HR person, when somethlng like this has ro occur." "Why ? What happened ?", Sudhakar enquired. "li is concerning yolrr boy Ganesh. Based on his sup€riors feedbackand your observation his area ol competence, of

MS-21 @

P T.O,

he \ras offered a conlirmed job of an assistanimanager. But yesterdaV he came to meel me and said'l feel I am mv own enemy. May be il would be bertp; jl I go ba.k io fixing ihings because was quii€ comforiablewith that. I No\u I realisethat I have to l€arn on how to managethe impressionsthat oihers have of my role'. ' On further questioning the HR head he realised that quit€ often Ganeshbecame,by default,the technological fix-it person on proie..s because of hir eyperience "ngineenng background.Also he had to learn to communicatewith non iechnical people. Now the HR h€ad asked Sudhakar whether he could suggesta remedy or solution to the

Qaestions : (a) Drj you think Sudhakar was wrong in his initial perception about Ganesh being more suitable for carrying out manageial functions ? (b) Which facet ot socialisation relevani in ihe above is case ? Justify your answer. Can you sugsest way(s) to solve the problem mentioned in th€ case ?

(c)

Ms-21 @

r,000

MANAGEMEM PROGBAMME Term-End Examination Decernber. 2OO5 MS-22@ : HUMAN RESOURCE DEVELOPMENT
Time : 3 hours MaximumMarks, 100 (Weishtase70%d

There ore three S€ctionsA, B ond C. S€ction A is meont for students uho hoDe registeredlor MS-22 prior to Jonuary 2005, i.e. upto July 2004. Section B is meant lor students who hoDe rcgistercdlor MS-22 lron Januarg 2005 onaards. Attempt ony thtee questionsfrcm Section A ar B contingent on the regisration period. All questions corry 20 marks esch. Sect'ion C js compulsory 40 morks. Jor all, and corties

M S2 2 @

P.T.O

SECTION A (Pre-Revised)

1.

nature and objectives of the organisation detemine the role and type of HRD processes to be chosen ior interv€ntion.'Comment on this statement developmental 20 and disclrssunderlying concepts with suitable examples

'The

and 2 . What ar€ ihe salient causes of dis_satisfaction frustration ? How is frustraiion passed on to others ? Explain with example, how a supenasor can cope \',lih the 20 lrustrationoI the employeeworking wiih him

3 . Identify the major areas of integration b'enueen the
Describe of dev€lopment HRD and IR jn an organisationvarious pre'requisites for successfulHRD'OD approach to

tR,
4.
Define and desc.ibeHRD cjimate.How are HRD climate and organisational climaie relaied to each other ? Wrlte shorr nole- on any three ol rhe lollowinq (a) (b) (c) (d) (e) Task Analysis HRD Insiruments Approach and Avoidanc€ aspecis of management HRD in voluntaryorganisations DevelopmentalSuperviqion

20

20 20

MS22@

SECTION B (Revised) 1. Define and discuss the conceptand obj€ctives coaching ol and mentoring. Bnefly discusstheir applicationsin the organizational context. Whai is Action R€search? How does it difler from OD ? Discuss the important iactors io be consideredin the development of internal selfrenewal lacilitators, with suitable examples. Define and describe th€ objectivesand ad\,antagesof MultisourceFeedbackand Assessment FeedbackSystems {MAFS). Discuss what are the indicators of an organisation readin€ss participatein MAFS. s to Discussihe means ol managingtechnological changesin work organisation. Briefly describe the factors which tacilitate developing the change mind-set. Explain with suitableexamples.

20

2.

20

3.

20

4.

20 20

5 . Wrire shon norpson any thr€e o{ rne following :
(a) (b) (c) (d) (e) DesigningRewardSystem Operationalising HRD tor workers Career Transitionand Choices DevelopingBusiness Ethics HorizonialRe-skilling

Ms-22o

P.T.O

SECTION C 6. Read ihe following case carefuliy and answer th€ questions given at the end. Tha eleven workerc whose annual increments were stopped made a representation to the management of XYZ Limit€d ihat the action taken was not justified and that they want€d to Lnow what was their fault. The managementwhich acted upon the recommendationof the department head concemed, Mr. Rog, felt guilty because such an action was tak€n for the first time in the history of the company. XYZ Limiied was a large paper manulacturlng company in South India. The major departrnents of the Iactory were 1 Chemical processing : The raw material l,as mixed with certainchemicals makrngpulp. for Pulp department , Pulp was mixed with other ingredients for accordingto sp€cifications each order paper. ol Paper machin€ department : This was the heari of the factory where processedpulp was fed into the paper machines.Act first, a wet weak paper was formed which was subsequently dried and rolled.

2.

3.

MS-22@

4.

Finishing department : The paper rolls were then moved to the processing department where the r€quiredcoating was given. Grading,winding and packingdepartments. Qiraliiy controi departm€nt.

5. 6.

Twenty eight workers worked in the paper machine department in four groups - each group attending one machine. The nature ol the work on each machine was such that all the seven workers had to work cooperation. in Because no indMdual iaikJ could be spacilied, the group was made responsibl€ for the work turned out by them. All the workers working in ibe papet rnachine departm?nt had be€n with ihe compang for over ien years. The company did not have any incenti\re wage system for any class of iis €mploy€es. They were all given saliiries with normal annual increments. The annual incrementswere sanctioned €ach year in a routine way. Ii was the policy of th€ company thai the increments should not be siopped unless the department head concernedrecommended h an acrion. su( Ml. Rog was placed in chargeol the pap€r machin€ departm€nt a Vear ago. Though Mr. Rog wae a n€wcom€r in the organisation, proved himselt to be a he very competentman. The managem€nt noted that he was staight

MS-22 @

P.T.O

very aggressive and enthusiastic and that he know his job weii At ihe end of ihe year when incrementswere due to be sanctioned,he recamme$Aelt the management to that ihe incrementsdue to eievenmen in his department shoLrld stoDped,for, in his opinion thev were lazy and be inefficient The elevenmen concerned belongedto all the tour groups operaiing in the department.. The managemeni,though puzzledabout the action recommended Mr. Rog, acted upon ii and sroppedihe by increments dLre to the eleven men concemed. The managerDent were aware that sLtcban action was ihe firsi ot its kind in the hisiory of the company. Most of the employe€s were with ihe companyfor a fairly long p€riod and there was never an instance ol strained relations b€tweenthe managementand the employees. Soon altpr the a( on was rokpn, the eleven employees concemed mad€ a representation to the r;aoagementrequesiingthem io iet them krow wnar q/as wrong wjih their work as to wanant stoltping of their increments.The managem€nt wer€ in a fix becausethey did not have specific reasonsto give except Mr. Rog's r€port in which he simply mentionedthat ihe etevenmen concemed werc "lazy and ioefiicient".

MS22o

The management were naturally concerned about the representationand therefore,they tried to ascertain undef which from Mr. Rog the detailedcircumstances he recommended the sioppag€ of incr€ments.When Mr, Rog could noi pin poini . the reasons. the manag€mentsuspectedthat Mr. Rog's recommendation was based on his "impressions" rather than on {acts. They, therefore, advisedMr. Rog to mainiain a r€gisier from then on noting ih€ detailsof day to day incidenisof "lazy and in€fficient" workers and obiain the signatures of the workers concerned.Mr. Rog was to make the final appraisalof each worker in his departmenton the basis of this regisier and recommendeach case giving specilic reasonswhy incrementsshouldbe stopped. Mr. Rog started mainiajning a register as suggested by the manag€m€ntibut he'found it difficult to report satislactorily any case of laziness inefficiencyfor want or of specificreasons, The management w€r€ convinced that their action o1 stopping increments o{ eleven men on the strength o{ Mr. Rog's report was not a proper one. They realis€dthat no similar action 'n futur€ would be taken bas€d on inadequate information. But, they were wondering made io Mr. Rog was the proper whether the suggestion course of action to situations. prevent occurrence of similar

MS22@

P,T.O.

Quesaions : (a) (b) Identily and discuss core issuein the case. the Was management of th€ company jlrstified in implementing the r€;ommendations of Mr. Rog, in the absence of proper report ? How would you vi€w the action ol Mrr Rog, if you were the M.D. of the company? Do you think the reward system instituted by the company needs io be reviewed ? Substanhate your ansrwer with logic.

(c)

(d)

MS-22 @

r,000

MANAGEMENT PROGRAMME Term-End Examination December.2O05 MS-23@: HUMANRESOURCE PLANNING
Time : 3 hours

Maximum Morks, 100 (Weightage 700/o)

Note : (i) (iil (iii) There ore two SectionsA ond B. Section A hos twa Sets I ond II. Set I is meont Jor the studentsuho hooe rcgistered lor MS-23 prior to Julg 2004 i.e. upto Jonuary,

2004.
(iD)

Set lI is mednt lor the studentswho hoLv registered lor MS-23 fron July 2004 onwards. Attempt onv ,hree questionsJrcm Section A. AII questions corrg 20 marks each.

bi)

Section B is compulsory 40 marks.

Jot dll ond carries

MS-23 @

P.T.O.

.

SECTION A Set I (pre-Revised)

1.

',There is a definite link betweeneducanonand economic groMh, and lack of adequate skilled manpower impedes grov,/th-' which one of the approaches HRP would To of you ascribe this stat€ment ? Discuss the steps involved in, and limitationsof this approach.

20

2.

Whal are lhe basic requisitesof an elfective Human Resource Information System {HRIS) ? How is compuierised HRIS advaniageous for an organisation at diflerent levels ? Discusswith suitable examples.

20

3 . How would you formulate ihe aims and objeciiv€sof a
training programme ? Explain with an example. How are training needs identified for different levels ot employ€es in an organisaiion? Discuss.

20

4 . Descnbe the basic assumptionsof Job Elaluation. Explain,
with example, the major areas where job evaluation can be applied successfully. Wnle shorl noreson anv trr.ee of fie following (i) Qualitative methods for demand forecasting (ii) lssuesand problemsof manag€rialselection (iii) Measurement Human ResourceCost ol {iv) Dimensionsof HR Planning (v) Peer group appEisal

20

M S2 3 @

SECTION A Set ll (R€vised) l. Is Human Resource Planning a win-win plocess Jor employersand ejnployeesboth ? Explain with reasons. Discuss importantissues demandforecasting. ihe in 20
Define and describe the concept of Role. Are role expectations changing in th€ mod€rn woid of wo* ? txplain wirh rhe belp ot dirieren!aDp)odches changing to roles in the organizational context. DescriL€ competmcy aDproach. Discuss how it is used by the organisation. Briefly discuss various approaches to colnpeaencymapptng, 4. What are the pre-requisites for int/oducing Human Resource Informatjon System (HRIS) in an organisation ? How is HRIS ad\,antageousov€r manual system ? DscLlss how it can be made more €ftecti!€ and usetuJ. 5. Wtite short notes on any lhree of the following : (i) (ii) (iii) (iv) (vl Career Planning Coping wjth dislocation Executive Searcb Steps in Job Analysis Process Induction Tlainins

2.

3.

20

20 20

MS-23@

P.T.O.

sEcrtoNc
6. Read rhe cas€g)uenbelow and dnr,,,/?r que(tionsgiven rhe 40 ai the end ot the case. large was a Company heaw-engineeringunit. It altached greai importance to Pearl Engineerjng the recruiiment and iraining of its senior supeFisors. Apart lrom s€lecting them from v.rithin ihe organization, the company recuited, every.alfernaie y€ar, about ten yo'$g engjneeringgraduatesand oflered them training for a period of iwo years, before they were appointedas senior supervisors. Such appointments wete made to aboui 40 per c€nt ol the vacanci€s of senior supervisors thai occurred in ihe organizaiion.fils was considered necessary by management as a plarned programme ol impa ing vitalily to the organization. Besides, many of ihe old-timers, who had risen from the ranks, did not possess the necessary academic background wiih the r€sult that they could noi keep pace with ihe technological changes. Maoagement also believed that in the rapldly changing conditions of iodustry. a bank of technically competent supervisors played a pivotal role, besi&s senang as a pool from which to select luture departmentalmanagers. Engine€ring Sraduates were selected from amongst those who applied in r€sponse to an all-lndia advertisement. For the selection of one engin€er, on an

MS-23o

averager eight applicanis werel call€d for interview- A seLection conmittee consisting o{ ilie Generd Manager, th€ Produciion Manager,the PersonnelManager and the Training Officer intervi€wedand selectedthe candidates. The selectign interview was preceded by a written t€st and only those who secured40 per cent marks qualified for interview. The eniline€rs thus selected had to undergo a two year intensive th€oretical and practical training. A well-staffedand €quipped Tralning Institute was directlg responsible lor the trainjng of the graduate engineers, becdes lraining lradp apprenli(es and operaiivesrequired by the company. L€ctures on theoretical subjectswere given at the Trainjng lnstitute and practical training was imparted in all the works departments under the guidance ot qualified and experienc€d instructors. A few lectures by senior officers o{ the company were also arranged to acquaint them Mth the company policies on diff€rent matters. During the last quarter ol their two,year training programme rhey were deplrted to work iulltime ro familiarizethemselves with the conditionsin departments where lhey were to b? absorbedeventually. On successful completion o{ training, the graduate engineerswere ofler€d appointments, dependingon their performance and aptitude as revealed during training. On

MS-2so

P.T.O.

placement in the work departm€nts, however, most of them faced some difficulty or ihe other. Accordirg to management, some oJ the heads of departm€nts, who were themselves not qualified engjneers, did not have sufficient confidence in tlese younger men. They preferred the subordinates who came up from the ranks to hold positions of responsibilitg. A few discredited them saying that ii would take years before these youngsters could pick up the job. Besides, some of the employees, whose promoiional opportunities werc adwrsely atfected by the placefient ol gaduate engineerc, tried iheir best to run down the latter as a class, sometimes working on the group feelings oI the workers. Some oI the super/lsors who were not graduate engineers also spoke derisively of them as "the blue-eyed boys" of the organization. Management knew that many of the graduate€ngineerswere not utilized accordingto their capacity or training, no! was any atiempt made to test or develop their poteniialities. They aiso knew that many of the graduate engjneers wefe, therefore, dissatislied with their work life. Some oI them who did get equal promotional opportwities as their not colleagues placed in other depadments, were Iooking for better jobs ebe\\;bere. On the other hand, accordingto management,the yormg graduate engineers were th€mseives partly

MS.23@

responsible for th€ hostile attitude of others in the organization.Some of them failed to appreciate ihat a newcom€r invited hostility in the beginning and it took time before he was accepted as a member of the work-group. They did not realizethat they would be tully productive only alter gaining about five io seven yearc' experiencein the organization. few thousht that they A belonged to a superior cadre and threw their weight around. TheV did not bothef io understand and appr€ciate th€ problems of the rank-andjile of employees who worked under them. In spite of ihese drawback, the General Manager of the company telt that thesemen were a set of disciplined supervisors. They had a senseof pride in their profession, and with the extensive training they had received, they would be able to take up any responsible position in ihe organizationin course ol time, The General Manager could not allow the situation to continue especiallywhen it was a difficult and costly processto recruii and train young engineeringgraduates ot lhe requisile rype and calibre. He knew rhat $e prosperity of the company, io a large extent, d€pended on these young men. In addition, a large number of lucrative employment opportunities were availabl€ to these young engineers elsewhere and there was a

MS 3o 2

P.T.O.

taid on them, He, therefore, called a meeting systematic of all heads of depaftm€ntsto re\,lew the situation. Questions (i) t

Identjfu th€ issuesrelatedto manpower planning as evideni in the case. Discussthe strategiesto iackle the percentage of level. internal promotion at the organizational

(ii)

(iii) Wbai type of additionaltraining programmesshould be imparted lor dir€ct entrants? (rv) Supposeyou are the head of the personneldivision. What would be your suggestionsin the meeting. which has been called by the General Manager ?

MS-23@

1,000

MANAGEMENT PROGRAMME Term-End Examination_ Decernber, 2OO5 UNION-IIiIANAGEMENT MS-24 O : PRE-REVISED: RELATIONS TEUANOTS : REVISED EMPLOYMENT
Time : 3 hours MoximumMqtks: 100 (Weightose 70W

(t)

There ore two SectionsA dnd B.

(ti) Section A hos ,t o sels ' Sei I is meant for the
students LahohaDe r.gistered Jot MS'24 prior t'.t Jonuorg, 2005 i.e. upLoJune, 2004 $et lI is meant Jor the studentswho hduercgisteredfrcm Jonuqtg, 2005 and onuards. (iiil Attempt atlg three questions Ircm Sectian A. All questlons coffv 20 morks eoch. Section B is compulsory 40 morks. lor oll ond corries

/io)

MS 24o

P.T.O.

SECTION A S€t I (Pre-Revised) 1 . Digcuss ih€
role oI staie and constitution in union manag€ment relations. Discuss with suitable

20 2 . ldentily ihe factors r€sponsible for the formation of
white collar managerialunions. What kind of implications are there lor the organization for such a process ?

20

3 . DeJine co[ective barga]ning. L\plain ihe bargainable issues
and types of bargaining with suitable examptes. 4. How do the cross-cultural aspects aff€ct the unrcn'manage..(ent relations ? Cite suitable a\amples to suppoft your answer. 20 Write short notes on any three ol the following r

5.

20

(a) ILo
(b) (c) (d) (e) Trade un'on recognition Interpersonalconflict Models in workers' pa(icipation in managemmt Negotiationskilts

MS24@

SECTION A Ser ll (Revis€d)

l.

Discuss the salient foundations ol indusirial relations. Describe in briei the influence oI th€ori€s and modets on 20 industrial relations practice.

2. Describe the chaGcteristic features of structure ol irade
unions. Outline the structure o{ trade unions in India.

2A

3 . Detine coll€ctive bargaining. Examine the unique features
of collective bargaining in Indian context. Define industrial grievance. Explain various approaches ol grieEnce resolution.In your opinion, which approach is the most elfeciive and why ?

20 20

5- WriLeshon notes on any lhre€ of the (ollowing.
(a) (b) {c) (d) (€) Function of employers'organisation Negoliationskrlk Models of workers' participaiion in management Misconduct Adjudication

M924o

P.T.O.

SECTION B 6. R€adrhe (dsecar€firlly answer questions givenat and rhe the end. 40
Geetha L"aboratories P vat€ Limited was established by Mohan Ramnath in lc88 at Ch€nnai. He, a solt spoken gentleman,was Ph.D. in chemjstry,who did not believe in working under pressure. The company was a small scal€ unit manu{acturing non-patented artimalarial medicines.The company had 6 days per week working making 26 working days per month and was running smoothly. ln 1978, CITU suppoded union came into existence. The industrial r€lalions started deter:orating making it difficult for the company to sunnve. In 1988 Ramnath decid€d to enter into paftnership with three other partners, Chandan Keshav, Bharat Pathak and Veenu Ramachandran to overcome the dilliculiies faced by him. The compang came to be kno',,,i as Geetha Laboratories Limited. Even alter this the industrial relaiionsdid not improve lill 1990 and it was during this penod that 14 work€rs wer€ sack€d.In 1990 Ramnath decided to sell his shares to Emission Pharmac€ulicals, a multinational,ihough other partnerscontinued.Now, the 'company was calledGerman Drug House (GDH). During period CITU withdrew support to ihe union and this Bhartiya Mazdoor Sangh {BMS) came into the picture. An average increment of Rs. 225 was give$ to all !,,,orl€rs and induslrialrelationsimprovedlo some extent

MS-24(>

IMPIA

Pharmaceuticals

Limited

was

another

non'patented antimalarial butk drug rnanufacturing giant having units at Pune, Mysore, Hyderabad,Coimbatore and Corporate office at Baroda. It wanted to have nionopoly in ihe antimalanal drug manufacturing by .laking ov€r GDH. bLrt before ldk'ng such a srep. they wanted to assess the intemal condition of the company. Therefore, in January 1994 Vishal Shrivastav, qualified a chartered accountant was inducted as Director by purchasinga r€quisitenumber of sharesof the company. In September, 1994 after IMPIA was convincedabout the lavourableconditions ot cDH ii lormally took over ihe company. At that time the manpower strength of the plant was 210 in which 130 were workers and 80 were executives and staff l.nembers. After taking over, IMPLA made many changesand the major ones were ; (i) They incr€ased salaries executives the ol and stafl of the unit to reduce the gap in th€ pay shuciure of the executives and staff of this unit and the:r other units. (ii) They investedRs- 3-4 the plant. crores Ior upgradationof

(iii)

They shifted from 6 days working per we€k to 7 days working per week to improv€ the productivity and enhancecost-elfectiveness the unit. of

The shift from 6 days to 7 davs working without any financial gains made workers resist the change. At this

MS24(t

P.T.O.

juncture, Sumeet Joshi, Corporate Manager (lR) intervenea and promised the ur'ork€rs that theg Qrr]uB be paid for 30 days instead ol 26 days, but Ravi Shriman, Director (Personnel) and Vishal Shri\rastav, CM (Operations) refused io agree to this since they were noi involvedwhen SumeetJoshi made the commitment.The pfomise was not fulfilled which further complicated the ploblems. The issueskept on Iingeringfor 6 months. No decision could be taken because of the difference ol opinion among s€nior executives.in June, 1995 the workers gheraoed Vishal Shrivastav to pressuris€ the managementto take the decision.They were successiul to some extent as it led to the agreement of management with workers that financialbenefitswould be given wiih retrospeciive years making it one additional .effect ol 4 year over and above 3 years of normal agreement _They were askedto give a notice of changewhich the workers because of disagreemeniamong themsetves. was felt at this point Ii ot time by Shrivastav that plani should have an Assistant Manager (personnel) insteadof having PersonnelOfficer. Ajjt Dubey, Assjstant Manager (perconne))was appoDreo in October, 1995 but even this appointment took 3-4 months because of discord in opinions of Shrivastav and Sbriman. In December, 1995 the workers gave a norice of clnnge demarding an increase ot Rs. 2200 per month. . could not give iill December, 1995

MS 24@

In January, 7996 a notice of change was g(,en oy maDag€ment. February,1996 the n€gotiationsstarted ln and continued till July, 1996. Shrivastav,Rajkumar, the new Corporate Manager (lR), Ajit Dubey and Kishore were to represent the management side and nine menbers Of the unjon were to represent the Workers, besides V.D. Agrawal the GeneralSecrerary BMS. of The first two rounds of meeting did not lead to any outcome as none of ihe padies w€r€ readyto budge.This made V.D. Agrawal withdraw as he was fed up with the rigid stand of th€ union leaders. The thjrd neetjng was held wjthout Agrawal wherein the union leaderscame down to Rs. 1,200 from Rs. 2,200 p.m. The minutes ol the rneeting werc jotted down but the union teaders refused to sign. Taking advdnlage of the occasion, Dubey and Sbri,"astav had a seoet meeting with Agrawal in a hotel. Agrawal advised the representatives of the management to maintain a low key for a f€w months to crack down the workers' aspirations as they had very high expectations.It was observed by Dubey that there were perceptual differences betweensenior and junior union leaders. Tal,jng cue from this, Dubey adopted a policy of divide and rule and took into confidenceDevilai, the senior union l€ader dnd had a secret rDeeting wjth hjjn to explore ibe last setleDent amount and apprisedhim that the management could go

MS.24o

P.T.O.

only upto Rs.450. He also took Janak Singh, the junior union leader into confidence and convinced him that was not going to berjd befor€ their demands management and as such ihe workers were going to be the uliimate suf{ere{s. Besides ihis, Dubey sptead the messagethat no wages would be given retrbspectively. The next day meeting resumed in which union came down to Rs. 750 {becauseof the r€pr€sentatives pressurefrom the workers)beyond which they were not ready to com€ down. Ii was decided tbat instead ot having m€eting with all the members,only two members, one senior unjon leader, D€vilal and one junjor union leader, Janak Singh would slt in the negotiations. Immediately a m€eting among Shrivastav. Rajkumar, Devllal and Janak Singh was held and jl was resolved that Rs. 575 average per month would be given for 4 years MOU was dralted by the legal consultantat the corporateoftice and was duly signed bv Shtivastav, Rajkumar, Dr-rbey and all the union representatives. In the eveniog a dinn€r was hosted in retrospectively. An which all the negotiators were in\,iied. When the papers v,/ere sent to R. Shnman, he obiected to the MOU on two pomIs, First, th€ other plants were having 30 days pav system leading to less alerage pay per day and in Chennai pfant it was to be given for 26 days leading io

MS 24o

per higher average day. Secondthe nilk allowanc€given for ovedime at Ch€nnaiunit u'ashigher than other units. it look Shri\rastav Rajkutnartwo months to con\,'rnce and Shrirnan about the ag€ement and lhercatler, impl€meDting same.A toial amountof Rs. 14 to 15 ihe lakhs was given to all ihe 160 woykerswithin a wesk as afiears and the issuewds s€tiled. Questtons : (a) Was it right tor VD. Agya\ralto withdraw half way during the negotiations ? h) (c) ldentify the tactics used by managementin the case.Ar€ thegjustified? Sho'rld Director (Personnel) hn!,e Iaised objections after MOU (Memotandumof Understanding) was signed? Give reasons. ln view of the informationgiven in the case,suggesi tbe strategies that could have made IMPIA Phatmaceuticals morc progressive organisatjona

{d)

MS,24@

r,000

Fsrs@-l
MANAGEMEM PROGBAMME Term-End Examinalion December,2OO5
. MS-25@: MANAGING CHANGElN ORGANISATIONS
Time : 3 hours MoximumMorks: 100 (Weightage 70%)

ti) lii)

A Ihis popel conslafs ttho Sections and B. ol Section A consistsol tuo sets.Set I is to be attenlpted b9 students uho haue registercd Jor MS-25 before Jonuory, 2004. Set ll is to be attempted by studenls uho haDereglstered lot onwords. MS-25Jron Jonuary,2004 Anstner an[ lour questions from SectionA, eoch corrying15 matks. Section B Is 40 morks. compulsory t'or o1l and carries

(iii)

(iv)

Ms,25o

P.T.O.

SECTION A SET | (Pfe-Revised) |. Discuss rie impotunce of Social and O'ganisationdl culiures in bdnging about change, with suitable €xample9.

2 . Degcribe survey leedback as an jntervention in bringing
about change a$d its advantagesand disadvantages,citing suiiableexamplec.

3 . Describe the meihod of role eliiciency to bring about
change in an organisation and discusg its significance ln €mphasizing the relatlonship oI employe€ and employer.

4 - Discuss the key roles iNolved jn managing change. How
are the interaciions within the organizatio[ {acilitated ? Wile shon notes on any t&re€ ol rhe lollowing : (i) (ii) External '"s. Internal consultant Manageras ag€nt of change

(iii) Processconsultatjon {iv) Transformatjonalchange (vl A model of implementation of change in an organisation

Ms-25o

2

,

SECTION A SET II (Revlsed)

1 . Discuss the pyocess of Leveraging Struciure in bringing
change in organisations. Expiain with suitable examples.

2 . Evaluate critically the impodance of Weisbord's Six-Box
Model {or diagnosis in an organisation,

3 . Discuss the concept of Total Quality Management and its
relevance bringingchangpin dn organis<tion. in

4 . Discuss how cultural change can be brought in an
organisation. E\plain with examples. Write short noles on dnu thr€€ ol the following : (i) (iil (iii) Managingtransitioo Managing resbtance to change Transactional vs. Transformaiional leader

(iv) Types of change (v) Behaviour modelling as an intervention

MS.2s@

P . TO . .

SECTION B 6. Read the following case carefullv and answer t}]e questions given at th€ end : In 1995 Ford Motor Company announced a major reorganization called "Ford 2000." The idea, champion€dby Chairman and CEO, Alex Trotman and Vic€ Chairman Edward E. Hagenlacker,eliminatedmore than a dozen engineering design centres aromd ihe ,xorld and consolidated them inio only live - Iow in Dearbom, Michigan, and one in Europe. The one in Europe was responsible creatingone basicdesignfor small cars lor for the world market and then making minor modifications fo{ local markets. For example, the same template will be used in Europe, South America, and Asia. The four design centres in Dearbom will do the same for large fronfwhe€l-drive cars, rear'wheel-drive cars, pick'up trucks, and commercjalvehicles.The consolidation eflort requires that nroie than tweniV-five thousand salaried employees relo€ate or at least report to new managers. Manufacturingand assembly will still take place in plants around the world. The purpos€ is to integrate Ford's operalions around the world and revolutionise the wav it designsand builds more than seventylines of cars and trucks, which it sells in mofe than iwo hundred markets. Th€ goals are reducedduplicaiionol €liort, increas€volume purchasing,

MS.2so

save more than $4 biilion per year, and double profitability.All this lar a companyihat mad€ $3.8 billion prolit from auromotive operations in 1q95. and $53 billion overall. Trotman continuesto have the support of the Ford family, who still controls 40 percent ol the voting stock in the company. Part of the new plan is a top-secret strategic document that outlines every new car and truck Ford will design,produce,and sell around the world through 2003. The plan calls for reducing the basic design platlorms from 24 to 16 and increasing total number of models the by 50 percent, while saving billions of dollars. For example, the new 1996 Taurus serves as the platform for several other models, both in ihe United States and around the world. .ln sttucture, ihe new system is really a matrix. Rather than workins in a functionalorganization with iraditional hierarchiesand cenlraliTedde(r.ion making. emptoyeej are assignedto a design centre, such as small cars, and then to a group accordingto their specialities, such as drive trains. Managers ihen mediate the disputes that occur between lhe design c€ntres and the. specialiii€s. Employees will have to change their ways of doing their work as ihey design cars and trucks to fit global markets rather than a single, relatively homogeneous one. Management knows that employees feel a great deal of

MS-25@

P.T.O.

insecurity and uncertainty about the compaoy and their jobs as they make the shift. Carrying the message to all employees has been a constant job for Trotrnan and Hagenlackersinc€ the original announcement, Management also knows that Ford tried a similar design integration with their ''World Car" in the late 1970s, which failed primarily due to turf battles among designers and engineers. The cars that result€d were yarely the cost savers Ford hoped for and were so dull in iheir design that no one bought them. Trotman expects different result this time becauseof the consolidationof the design centres, the new organisationstrucrure,and because advances in technology hav€ made the inner working of cars so similar ihat only the outer, visible portions of the cars need to be different to satisfy regional tastes. By mid 1996, however, the reorganisationwas not gojng so well. The transitionhad left many employees still wondering whom they worked for and with a feelingihat everything was oui of conirol. The culprit seems to have been a reorganizationof the reorganisation! Trotman now plans to r€duce the number of d€sign centres from five to ihree. People are moving and reporting relationships are changing once again. Gtoup Vice President Jacques A. Nasser, who may succeed Trotman by 1998 or so, has promised$11 billion in savingsunder

MS-2s@

the new system. Some have claimed that lhe "new" really puts ihings back ihe way they were reorganisation belore the first reorganisation.However, three design centres is a lot Iewer than th€ dozens that existed L\e{orc. before employeesreally But this second r€organlsation, got settled into the first one, may have d€vastating do ellects. Suppliersand,employees not know whom to contart to get questions ans.rered or disputes resolved. All they get on the phone is voice mail, since everyone is in me€tlngstrying to work oui the new reorganisation. Top management claim9that theseproblemsare inherent trying to turn around such a bjg organisation that has be€in relatively success{ulihrough the years. Theg say thai th€ oruanisationneeds to evolveto meet their ambitious goals and the comtretition. Qrreslions ; (a) Describe the changes in structure that Ford expects from the Ford 2000. How do you a\plain ihe continuing problem that employees arc having witb adapting to th€ new structure ol Ford 2000 ? ls a mairix sttucture the proper shrcture for Ford

(b)

(c)

2000?

Ms-25o

I,000

MANAGEMENT PROGRAMME Term-End Examination December, 2OO5

MS-26€) : ORGANISATIONAL DYNAMTCS
Time : 3 hours

MaximumMorks: 100 (Weishtase70%)

(i) (ii)

Therc arc tuo &ctions A and B. Attempt qny three questiansJrom SectionA. Each question carries 20 marks. Secrion B is compulsory ond corries 40 marks.

(iii)

SECTION A l. How would you descib€ a group ? Explain t"?rious stag€s oI group development and probable effects of $oup proc€sseson t€am performance. Brie!|9 descnbe the concept ol 'stress,, and discuss!"€riou5 typ€s of organisational sir€sswilhin the .Rolesystems,.

2.

M s2 6 @

P.T.O.

3.

Define and describe the concept of power. Dscuss the bases of power in the context of Managerial Effectiveness. Define and describe ihe process of delegation. Discuss ihe Iacilitating and hind€ring forces which in{luence ihe cleiegationprocess. Wrile sho"t nore\ on any three of the lollowing . (i) lii) Compliance Empowerment.Audii

4.

(iii) Organisat'onalCuliure (iv) Cross-culturalDlnamics (v) TransformationalLeadership

M5-26@

SECTTON B Please read tlle case and answer the questions given at ihe end. Th€ Roopchand Departmental Stor€s, New Delhi, has a separate s€ction to sell winier garments. This section consisis of two groups : permanent clerks and temporary clerks appoinred during wint€r season. Unfortlrnately, this section has always witnessed a tug'ot-war situation betw€en p€rmanent and temporary clerks.The stoiy begins thus. The permanent clerks, by virtue ol their long and fruitful association in the Departmental Stores, had developed intimate social relations among ihemselves. Usually, they take their lunch and tea together. They worked, like a well knit group, in closeproximity and not surprisingly, developed close relations even after the work is over. The slackperiod startingfrom Aprii to September €very year had given them a wondertul opportunit to sii

together, discuss about rratters of common interest,peep into each other's minds and, il possible, solve their problemsto mutual ad\rantage. Presently,all of ihem are unnarried with the exceplion al twa.

MS-26@

P.T.O.

The temporary clerl.,s were school girls who are normally appoint€d before the commencement of winterOften, they have complained about th€ir work in the Winter Garments Section and two of the clerk even desir€dtransfer to som€ other section after a short stay. The teasons are quite obvious : The perman€ni clerks bothered littl€ about helping the newcomers- lf the newcom€r is not able to sirike a deal with a customer, often. the permaneni clerk joined hands in making uncharitablecriticism before th€ Section-in-charge. Being small in number, the temporaryclerkscould noi resistihe frequent onslaughts,which ar€ at iimes irritating and in:inuaring.The remporaryclerks had very littie scope to blow off thei "steam"In this heated atmosphere. the determination of commissionon sales remained a contentiousissue, The permanentclerkshad, throughan inlormal understanding, agreednot to boost up sales.They feared,inherently,that fluctuations in sales would lead to fluctuation in e$ployment. At the same time, they could not tolerate the sight of a temporary salesperson pocketing a fair share of commission. They always feh thai the temporaty on€s do not deserveany commission,because they have not contributed angthing on a continual basis for the developmentof the D€pariment. Sulfering from

M3-26o

an jnfiated ego, they also believed that they had the righi temperamentand skill to boosi up sales.Thur, in everj \,,ray,the temporary sales c)erks are inferior io them. Rec€ntly an unhappy situationhas d@eloped when one ol the t€mporary clerks js able to make a subsiantial sale to oDe of her acquaintances. Now, ih€ permaneniclerksb€ganto make a hue and cry (egarding tbe commissiolr payment. The poor sal€s clerk came io ihe Assistant Sale$ Manager 'J,,iihiears atter haling been scoldedbitterly by the perman€nt clerk for

t

having sold a few s^,eaters in th€ir absence. The tempotary clerks were always anxious to show good performance so as to earn a position in the Department. To prevent this, the p€rman€nt clerks used to furnish fals€ information about garments'qualiiy, n€gotiable price etc. Wh€never ihe iempolary clerk sought ihe help of a senior in seliing ihe garments to ihe cr.6tomer, the latter would take over and claim th€ commission on sale herself. The temporary clerks were often assigned to insignificant task like aftanging displays, rearanging garmenis, bringing garm€nts from stores, etc., and were prevenied from sinking it rich wiih customers. At every stag€ tbe temporary ones ar€ taken {or a ride by the permanent clerks.

MS26@

P.r.o.

Quecttons .
(a) {b) (c) Disclss the issLes relevant tor group behaviour_ Explain tbe behavioi/ al WmraneDt ernployees ol the department. Are iheg justified ? If Vou were the managerin-charge, what siepswouid you have laken to preveDl such a situatjon ? How can an organjsatjon be proactive in such a situation?

{d)

Ms26@

1,000

ll,rs"'o-l
MANAGEMENT PROGRAI,IME Term-End Examination December, 2005 MS-27O : WAGE AND SALARY ADMINISTRATION
Ttme : 3 hours

Maxit'um Msrks: 700 (Weishtase70o/o)

(i) (ii) (iii)

There are two SectionsA dnd B. Attempt ony fo r questionelrom SectionA, eoch question corrying 75 marks. Section B is cornpulsory, and cdrries 40 marks

SECTTON A l. Explainuarioustypes of inceniiveplans.What stepsare to be taken for elfeciive implementation of incentive plans ? Compensation management is a multidimensional concept incorporating such asPects as pay structure, pay level, gystems {or r€cognislng indMdual dif{erences 1o p€rlormance.and emnloyeebenefirs. Discuss

2.

MS27o

P T.O.

3. Discuss some of the wage theories developed by economic
and behaviouml sci€ntists.

4 - What are the objectiv€s of compensation survey ? What
Upe oI information is io be compensation su^7ey ? Give details. 5. Aiiempt the lollowing questions i (a) What are the main provisionsof ihe Paym€nt of Bonus Act, 1965 ? What are ihe salient features of Remuneration Act, 1976 ? th€ Equal collected through

(b)

6.

What are the insiitutional mechanismsin lndia for fixaiion of wages ? Disclrss. Write short notes on any ,hree : (a) (b) (c) {d) (e) Pay equity Voluntary Retirement Schemep(VRS) Job evaluation procedure International labour standards on wages Compensation issu€sand trends

MS,27

SECTION B 8. Read the following cas€ and answer the quesnons gNen ar th€ end . CASE A bright young M.B.A., fresh from one ol the top manag€ment instituies, took over his faiher's r€sponsibilities as president in a manulacturing compang. The company employed approximately on€ thousand peopl€ in the productiondivision.It had never laced with a demand for colleclivebdrgarning. lar as was known, So none of its €mployeeswere union members, The new president,after three y€ars of climbing the ladder io his posihon, had a conference with three long-term employees,who explainedthat they and their associates had been discussing the desirabiliiy of bargainingcollectiv€ly. They gained through such formal representation. Th€ employees had not vorceoany srong criticism of manag€ment, but they had held several meetings and had invjted representatives of a national union lo talk with rhem. They concludedrhar rhey ought to try collectivebargainingand for this purposeformed a union and enlist€da majority of worksnop €mproyees as members.The three representatives had been elected to the bargaining committee in order io present a written memorandum to ihe president with a request for coll€ctive bargaining agreement. A series of issues

MS-27

P.TO,

carefully spelted out by the union were handed over to the president by the three representatives The young executive received th€m cordially and listened carefully. He acceptedtheir memorandum and suggested that he would like to have time io shrdy it carefully. He proposed a meeting with ihem for Tuesday of the tollowing week. When ihe committee members retumed, the

president reminded them that th€ company had been carefulto maintainwages and working conditionsat least on a par with those in unionised companies in the same indusiry and region. He expressedthe opinion lhat the specific proposals they had presented seemed to him quiie reasonabl€ and approprjate. He had been thinking of many of th€ same changes and would probably have made them without their request. He was pleased to hand them their memorandum with a notaiion indicating his acceptance.The members lelt, quite satisfiedwith the effectiveness o{ their negotiations and promising to repotl back to him as soon as possible One week later, the presidentfound the same group of representaiives waiting to se€ him. They appeared somewhat clestfallen and embarrassed They reported thai they had gone back to the membership, presented a with him, explained.his Iull report ol iheir discussions

MS27

I p l"

favourabLe attitud€, and recommended tormal ratificatjon ol rhe memorandum as a new collectrve bargaining agrp€menr.Alter exrensivediscussion. when lhe molon Ior ratification came up {or a vote, a maiority of ih€ m€mbetship voted against raiificafion Questions (a) lb) (c) I

What are the problemsin thjs cas€? Why did the agreement ? members refuse to ratity the

ln a slfuation lilie the one above, hc,v can the rmion and management play an ellective rale in fixing and revising wages and ben€fits through the process of collectiv€ ba$aining ?

MS.27

1,000

MANAGEMENT PROGRAMME Term-End Examination December,2OO5 MS-2S@ : LABOUR LAWS
Time : 3 hours MoximumMorks: 100 (Weightase70Yo)

Note : (t) Thereore tu)oSections ond B. A

(it) Attempt on9 frue questionsfrom Section A. AII quest'ions SectionA corrg 15 mcrks. ln

(iu) Section B is compulsorgand corrles 25 morks.

SECTIONA

l.

The Fuidamental REhts ard Directive Ptincipleg of State Policy are the backbone of industrial iurisprudence in India. Explain.

Ms,2so

P.T.O.

2. Attempt any tuo of the following,
(a) What are the safe! Act, 1948 ? measures under the Factories

(b)

What are the provisions regarding registration of establishmentsand licensing of contractors under the Contract Labour (Reguiatton and Abolition) Act, 1970 ?

(c)

What are the main provisions regarding prohibition and regulation ol child labour undef the Chlld taboir (Prohibition and Resulation) Act, 1986 ?

Explain the procedure for registraiion of a trade union underihe TradeUnionsAct, 1926. What are the provisions regading "General Fund" (Sec-15)and "Political Fund" (Sec16) under the Act ?

4 . Examine various Fovisions laid down under the Industrlal
DisputesAcL. 1947 for s€ltlemenr induslrialdispures. of What is the objeci of the Minimum Wages Act, 1948 ? Explain the procedure ihe government has to follow lor fixing and revising minimum wdges under the Act. 6Who :s an "employee" under the Emplogees' State Irsurance Act, 1948 ? Gve an account ot v.a|jousbenefits extended to ihe employees under the Act.

Ms.28@

7.

Write shon notes on any tiree (a) Objectives of labour laws

of the following I

_

(b) . Iniernational labour standards and iheir inlluence on labour legislation (c) (d) le) Notice of Change (Section 9-A) lndustrial djscipljne concept and objectiv€s

MarernityBenefitAct, 1961

Ms-28@

P.T.O,

SECTION B 8. Redd the case given bdorv and aniwer the questions given at the end. CASE ANC is a composite textile mill employing ovet 8000 employees including olficers. The rnill has recently modernised its technology and has introduc€d many cosl and latDur savins devices. lt has a very sophisiicated quality control department having many costly €quipn€nts. The jndustrial rclations in the company has been very $nooth. The management also adopied a !€lfare-orient€d approacb lolvards ih ernployees. The

company organised regular training and d€velopment programmes as a part of its huma! resollrce development etforts. The general morale and motivation level of employees was quite high though symptorns ol tension and mistrust w€re hidden. Mr. Anand is in chargeol rartous costly €quipments us€d in the qualily control department. One day he used th€ services of Mr. Borade, a worker, to clean the <uipmeDts of various sizes and asked him to keep back the eqJipments in lhe cupboard after cleaning theft. This had to be done as Mr. Anand had to attehd the dailg

Ms-28o

4

coordination meeting with the general manager of the company which cannot be ignored. When Mr. Anand retuned. he did not check immediatdy the total number of instrumentsas he did not have any doubt about Mr. Botade's integrity. Mr. Borade is an old-timer who servedrhe company honestlyand ,in.erely. Alter about hvo hours, Mr. Anand found a small but costly measurement equipmeni was missing from the cupboard. The initiol search yielded no positive results. Mr. Anand accordinglyinformed the security about the missing ol the instrument. The security staff suspected Mr. Borade as he was ihe one who cleanedand put back Mr. Borade deniedthe the instruments. When questioned, charges. After initial questioning, Mr. Anand onc€ again separately requested Mr. Borade to say whether he saw the missing instrument. Mr. Borade spoke privately to Mr. Anand and admitt€d that by a sheet loss of control of mind he iook away th€ instrument.He conless€dthat be never did such a thing in the past ir) his 15 years oi seruicein the company and knowing welt that he couldn't us€ the instrurnent, h€ stif took it away. He pleaded for mercy- Mr. Anand was at loss to understand what had happ€ned.He couldn't b€lievethat a man who servedthe company faithfully could €ver do such a thing lik€

M S2 8 o

P.T.O.

he do now ? Questions (a) t

Advise Mr Anand as io the nature of action to be taken against Mr Borade ? Advise Mr Anand as to ihe merits and demerits of holding a domesiic enquiry. Also suggesi to him various steps to be taken in a proceeding, caseol an enquiry,and the disciplinary in nalue of punEhmentro be awdrded rhe chargesare il proved-

(b)

{c)

Ms-28o

1,000

PROG&{MME MANAGEMENT Terrn-End Examinatlon December' 2OO5
CAPITAL MS-41@ : WORKING MANAGEMENT
Time : 3 hours MoximumMorks: 700 {Weishtoge70o/o)

Note : A, Thereorc three Sections B ond C' s,ectlon A is meant only lot the students, t,ho houe rcgistetedlor MS'47 priot to July, 2004 I e uptoJonuary,2004 semester
Seciion B is meont only lor studehts tegisteted Jor M3'41 frcm July, 2004 semester onurards Secfion C is compulsory t'ot oll the students

MS-41 @

P.T.O.

SECTION A Note: Attempt any tbo questions. AII questions carrg 20 marks each.

1.

"The most challenging job before a finance manager is to ensure a proper trade-oJ{ bet$,een risk and return v,,hil€ making financial decisions." In the light of the statem€nt, illustrate with suitable examples, how a Iinance manager ensures desired irade-off behre€n varlous wo*ing capital decisions_ (a) State with r€asons whether the {ollowing statemenis are true : {i) A finance manager must enswe a Cunent Ratio of 2 for his^er firm - neither more than 2 nor less than 2 for achieving optimum working capital structure, A sound working capital financing plan shorld ensure that all the current assets must be financed through current liabilities.

2.

(ii) .

(iii) Cash Flow Statement is same as Frmds Flow Statement. (w) The only motive to hold inventory in a firm is Precautionary Motive. (v) Carrying idle cash involves an opportunity cost which is measured through int€rest rate.

Ms-41 @

State the objectives a finance manager follows while managing working caPital lor a manulacturing lirm Also describe the differences between ihe P€rmanent Current Assets and Temporary Cunent Assets.

3.

(a) Whal do you understand by Ageing Schedule of
Acco$ts Receivables? Explain lts significance a|1d discuss any tro methods to anpedite the cash collection from the debtorc in a firm. Explain and discusssix C's a tinance manager mighl consider in evaluating the credih^/orthiness of a prospective customer,

MS.41 o

P.T.O.

SECTION B
Note t Attempt on9 tu'o questions. 20 morks each. All qu3tions cong

1.

(a)

Deline any fioe ol rhe following: (i) (ii) Fluctualing TemporaryCunent Assets or Acid-T€st Ratio

{iii) OperatingCycle (iv) Trade Credit as a Source of Working Capitat Finarce (v) CashFloruSratemerlt
{vi)

Liqrjdit as ar objective of Working Capital Management

(b) A firm's cunent assetsand curent liabilities are Rs. 160 lakhsand 100 Iakhsrespectively. How much maxirnurncan it borrow on a shorf-lerm basisso as to meet its demandfor additionalinventory wjthout reducingihe cuffent ratjo below 1 25 ? Assr.rme that the whole arnount boftowed on shoft-term basis wodd be in,,€sted inventoryonly. Nam€ ant four in sources financingwo*ing capitalrequirem€nt a of of firrn.

M s - 4o 1

2,

{a)

"Merely increasing cLrrrent assts oi a Jirm does not r€duce iis liqu'diryrisk : insreadrt is the nece5carilv and nonliquid assetsin compositionof liquid assets the overall siructure of current assets which is the ' most important factor in reducing its liquiditg risk. In the light ol this statement, define Liquidity Risk as a relevant concept in the overall managementof working capital. Also, discuss your opinion/position in this regard.

(b)

"Holding of cash in a firm is similar to that of holding ol inventory and therefore, the principles of Invenlory Management can be applied to Cash Management." Do you agree with the statement ? Support vour answer wth nec€ssary r€asons and aQmPles.

MS-41 o

P.T.O.

The BalanceSheetsof Narr-rlaLid. as at the end of 2003 ar'd 2004 arc gven belo\^] : x x x x x x x
O O O \ O r O L o ! ) O O @ F - \ o +

o

o

S

o

F

O

N

O

O


* fl :

9 6
i E p

$

E d | i s o a 6 ( i

s : ; 9 *

3 ?

o r l o F o \ o \ o o r o l o

o

o

o

p

.

?

-uFgjeE-ili$
.5 J

, e S5

, n I

##.'FE.g--F;J

Y t T s € s F 5 , 3 i :

MS-41 @

A ptant purchasedfor Rs. 4,000 (depreciation, Fts. 2,000) was sold for cash at Rs.800 on 30th Spptember,2004 i an item of fumiture was prrchased on for Rs. 2,000 duringthe year. Depreciation plant (excluding item) and on sold out was providedat 80/6 cost
. -^l^, ol cost.A dividend al on fumiture I2;% on average

was paid 221% on onqinalshares
2 -

You are requiredto prepare a Fund Flow Statement lor the year 2004.

Ms-41 @

P.T.O.

SECTION C
Note: Attempt any three questions.All questionscarry 20 morks eoch.

4.

The bottom-line ol Reliable Industries Limiied is under heaw pressure. The management of the company is worried about th€ same. They have appointed a sftategic group working on a strategic plan named as 'Shoot-up 2005' to lmprove both the topline and bottomline ol the company jn tuture. Amang otbers, one issuewith wlicb the group is confroniing is that of th€ credit policy. At present, the company provides 30 days credit to their customersand is having salesof Rs. 50 crores. lt is estimatedtbat the companys cost of capital is 10% and the ratio of cost to salesis 850/o. The group is planningto increasethe credit period from 30 days io either 45 days or 60 days so as to give a boost to sales. It is forecastedthat such an extension in the credit period world push sales by Rs. 3 crores and 5 crores respectively and the proportion of bad debts on the additional saleswould be 8%. Assume thai you are a member of the group and have been requested to evaluate the impact of extending the credit period on the profitability of the company. Therefore, you are required to evaluate both the proposals and give your suggestion whether the group should go for an extension of the credit period or not. lf yes, ther' should it be for 45 days or 60 days ?

Ms-41 (t

5.

(a) The followinginformationhasb€enotltainedfrom the rccords of PYN IndustnesLimited about th€ir ten It€m No. AnnualUsage PricePer Unit (Quantity; (Rs.)

3
19

22 23
36
47

1,500 1,000 500 2,500 2,000 150 2,250 900 1,200
650

10.00 080 190.00 o.77 72.50 1000 010 833 62 50 20 00

54

6a
82

Classily lhe items inio various caiegories using ABC classification technique. (b) Rajiv Tools Pri,,raie Limited is expecting to have Rs. 25 lakhs in cash ouilayslor the next year, The company has determined its opportunity cost oI holding cash as interest |ate of 12.5% and wil( incur a cost of Rs. 90 each time it bonows (withdraws). Assuming that ihe cash outlays will be steady and uniformly distriblrted over the next year, determine the optimal borrowing or rviihdrawal size for the company usingBaumol'smodel.

M S - 4@ 1

P_T.O.

6.

(a) An organisation ordersan item in lots of 1300 units for which it has 5200 units yearly demand. The holdingcost per unit p€r year is Rs. 10 and lost sale cost per unit is Rs. 50. Quartedydemanddistribution is as follov,rs :

Demand units) {in

Probability

1150 1200 7250 1300 1350 1400 7450

0.10 0.05
011

009 0.07 0.03

You are requiredto determineoptimum safetysiock for the organisation.

(b) Explainthe following : (i) Commercial Paper

(ii) C€rtificateof Deposits

MS-41 o

10

A firm has filed a request for working capital finance wiih a commercial bank. You ore requested by the bonk to preqre an estimote of the borking capital requirements oJ the lim. For that you may add 10% of your estimated figure of working capital requirement to accoum ror exigencies. In this regard, you have been provided following necessaryinfofmation : Projected Profit and Loss Account of the lirm for the next year

A. B. C. D. E. F. C. H.

Sales Cost of GoodsSold Gross Profit (A - B) AdministrativeExpenses SellingExpenses Profit before Tax (C - (D+E)) Tax Provision Prolit aft€r tax (F - G)

(Rs.) 22,47,OOO 16,37,100

6,09,900 1,49,800 1,39,100 3,21,000 1,07,000 2,l4,OOO

The cost of goods sold is calculated Lhu" . as

(Rs.) Mat€rial Used 8,98,800 Wages and other Manufacturing Expens€s 6,68,750 Depreciation 2,51,450

18,19,00
Less: Stockof Finished Goods(1070 of Productsnot sold) Cost ot Goods Sold

1,81,900
16,37,100
P.T.O.

Ms-41 @

11

The ligures given above relate only to th€ goods thai have been finished and not to work-in-progressi goods equal to 20o/ool the year's production 1in terms of physical units) are in progress on an average requiring full material but onb 50% of other €xpenses.The firm has a policy ol keeping two months' consumption of material in stock. All expenses are paid one month in anears. Suppliers ol material grant on€ and a half months' credit; salesare 25% cash while remaining sold on two months' credit. 8. Wnte short notes on any lioe of the tollowing : (i) STIFP (Short Term Integrated Funds Planning) Process Role of the Discount and Finance House of India (DFHI) in the.development Indian Money Market of

(ii)

0ii) Srone Model for ellicientcashmandgement (M {v) Basicprinciplesof bank lending Trade Cfedit capital a cheap source for financing workjng

(vi)

Collection Period Analysis Management

a tool for Receivables

Ms-41 (D

12

1,000

fM"-rO-l
MANAGEMEM PROGRAMME Term-End Examination - December,2OO5
AND INVESTMENT MS-42 ; CAPITAL G) FINANCING DECt$rONS
Time: 3 hours Maximum Marks, 100 (Weiehtase 7Wa)

(i) (ii)

There are three Se.fions A, B ond C it) this poper' Students who hove registercdlar MS'42 prior to Julg 2004 semester'shauld ottempt an? fioe guestions from SectionsA snd C.

liii) Students uho hooe registetedfor MS-42 lor July 2004 semesier should ottempt any and aJtetu)atds, ' fioe questions fron Sections B ond C. (iv) (v) All quesrionscarrg equal morks. Present Value tablesuill be protided, iJ ssked Jot

MS42o

P.T.O

SECTION A I. {a) (b) What do you understand Time Value of Money ? by "Obtainins PositjveNPV implies ihe same thing as minimising the cosi of capital.' Explain this statementwith examples.

2.

Dstinguish betw€en Commercial Banking and Merchant Bankng. How do both difter from Development Banking ? Explain the funciions undertaken by State le\€l developmenl banks in lndia.

3 . What are Righis shares ? How do ihey ditfer from Bonus
shares ? Why do companies issue Rights shares ? Explain with an €xample tbe ellect on the shareholder's posiiion ii he does noi subscribeto ihe Rjghts issue.

MS42o

, l,

SECTION B

What do you understandby Corporate Restructurjng? Whai lorces motilbte the corporai€s to restructute ? Discuss the dimensions of Corporate Reshuciuring. What innovationshave taken place in equity products ? Discuss their significance. Wnte explanarory notes on the foljowjng i (a) (b) (c) (d) Supplier'sCredit CommercialPaper Factorihg Pordoliolnv€stment

2.

3.

MS42@

P . TO

SECTIONC 4. is Th€ €xisting capital structure a company as follows: of
Paid up share capital of Rs. 10 each Resewes and Surplus 14olo Debentures

Rs. 10 crore Rs. 15 crore 8s..15cror€

An expansion plan requinng Rs. 20 crore is being considered.The plan is expected to increaseEBIT by Rs. 6 crore ov€r its present level of Rs. 8 crore. The . following three plans of financing have been sugg€sted I Option 1 - To issueequity sharesof Rs l0 each at a premium of Rs. 40 per share. The share issLre expenses will result in the net proceedsof Rs. 40 per share lor every new share issued. 94j9!3 To borrow at 15% from f'nancial instituiions

Option 3 - To boftow Rs. 10 crore @ 15Vo and the balanceto be rais€dby issueof equity sharesas p€r th€ t€rms indicatedin Option 1. The applicablerate of income iax is 40%. Find out (il ' or Tn€ expansionptan ic to b€ coasrdeted v il rhe pfesent leve! lndicate EPS increases from its whether the expansion plan qualifies for ? consid€ration At what level ol EBIT, will the EPS be equalto zero ? under each of the financingaliernatives Determine the indifierence level o{ EBIT among the EPS. ihree alternatives and also the corresponding

(ii)

(iii)

MS-42 @

manulacturing company wighes to dei€rmine th€ cosi of capital o{ €\'aluating capital b,rdgeting pYojecis its BalanceSheetis as follows : A Balance Sheet Liabililies Equiiy shar€ capital Prel., shar€ capiial Retained earnin9s Debeniures CuIrent Liabilities Rs. Assets

Rs.

12.00,000 FixedAssets 25,00,000
15,00,000 4,50,000 Curent Assets

4,50,000 9.00,000 10,00,000 40,00,000 40,00,000

Add it io nal lntor matio n : {i) 20 year 14% Debentur€sol Rs. 2,500 lace value. redeemableat 5% premium can be soLd at par; flotation .cost is 2%. 15%opreferenceshar€s : Sale price Rs. 100 per sharei Flotationcost is zEo.

(ii)

Uiil Equrly 'ha'pc : Sdle p'ice Rs. ) 15 per ,hare. Flotaiion cosi is Rs. 5 per share. The corporale tax raie js 55%. The expecied grounh in equiiy divid€ndis 8olop€r year. Expected dlvidend at th€ end oJ the current financial year rs Ks. ll per snare Calc\rlate we:ghi€daveragecost oi capital.

MS42@

P.T. O

6.

Whai tools ar€ available to the project manag€r to use in conholling a project ? ldentify some characteristjcs of a good coffror s9stem. What do you understand by ;ocial cost benefit analysis of a project ? What lactors wolrld you ial€ into consideration whjle undertaking such an anallsis oJ a project ? Explain.

8 . ABC Co. Ltd. is consideiingihe acquisitionoI a large
equiphent to set up its factorv in a baCkward region for Rs. 12,00,000. The €qujpment is expectedto have an economic useful life of 8 years. The equipnell can be tinancedeither with an 8 yearsterm loan at 1496,inier€st, repayablein equal instalments Rs. 2,58,676 per year, of or by an equal amount of Jease reri pgr year. In both cases paynents are due at ihe end of the !€ar. The equipmenl is subject io the straight line method of d€preciation for tax purposes. Assuming no salvage \ralue after the 8 year useful life and 50ok tax ftte, r{'hicI of the financing alLernatives ? shoLd it selecL

MS42o

1,000

o I MS.43 I
MANAGEMEM PROGRAMME Term-End Examination December,2O05
MS-43 @ : MANAGEMENT CONTROL SYSTEMS
Time: 3 hours MaximumMarks: 700 (Vletghtase7V/o)

Note , (i) (itl

Thereore threeSecrions SecfiohA, B and C. r Section A is meont for the studehts a7hohoDe registercd MS43 beforeJdnuaryZ0OSt.e. upto Jor July 2004 semester.

(Iiil SectionB is fieant lot the studehlsuho hoee regtstercdlor M5.43 Jrom January 2OOS ser,ester onuJdrds. (io) Attempt cny thtee questions lrom SectionA or B. Each questionh Sectton ana B crfties A 20 marks. (v) SectionC is compntsory lor oll ond corries
4O 'l|,otks.

MS-43@

P.T.O.

A SECTION
1. {a} Desclibe the characierisiics of Management Control
Ststems.

tb)

Can an organization have more than one type oi responsibilii!' centers ? lllusirate with the help of a charf/dia$am.

2.

lu) What ar€ the advaDtages o{ performance related
compensation in th€ context o{ pro{it ceniers ? What pitfalls should an otgarization guard itself against wh€n jntroducing su.h a schem€ ?

{b)

Dscuss lhe merits and demerits ol "oppodutrty cost" a. u mLthod lo. t untf"l pri"ing-

3.

(a) Explain ihe three comppnenis ot Revenu? Budgeis' (b) What is an MIS and \,,rhatate the elernentsot a solrlo
MIS ? ln what way is an MIS helpful in an MCS ?

4.

(al Dis<uss in general the structure of a multi_projeci
organization. What general arrpfoach codd folloqJedin designing proiect orga;izations ? be

{b)

oon'profit and belween ptofit Dfferentiate implications would the organizations. What difierences, if any, have {or management conttol m non-profit organizations ?

lils-43@

5,

Explain any thr€e ol the folowjng: (4 Mujtipje criteria for Wrfom€.nce evaluating perforrnance of investm€nt center md|agers Zero,basedbudgeting Molivationalvalueol p,ofir cenlers R€sponsibilityReporiing Residual Income (RI) ds a measure of performance measur"menlol ;n!€stmerr center5

(b) (c) {d) (e)

MS-43@

P.T.O.

SECTION B

1 . Explain the relevance ol Porter's five forces in designing a
compeiitive slmtegy for knowledge based organisations

2 . Critically analys€ the various methods us€d lor determining

3 . Wdte short noles on the fo[owing :
(a) (b) (c) (d) Total Quatity Management {TQM) BusinessProcess Reengineering(BPR) Management Control in Proiect Organisations Investrnentcentres

4.

How is a senlce organisadon differenl from a rnanufachning organisation ? How do these dilferences aflect tbe coBftol Sstem design in a service organisalion ? Hoff do c\rltural diffelences across nations aher the ManagemenL Control System.? Explain.

Ms-43o

SECTION C 6. Read t-hefollowingcds?carelulfu and answerlhe quesrions giv€n dl (he eDd j Abtarns Company Abrams Compang manufaciur€d a wide vari€ty of parts ldr use in authomobiles, trucks, buses, and larrn equipment. There were three maj.or groups o{ payts : ignition parts, bansmissioo parts, and engine parts. Abraing paris \^,ere sold boih to original equjpment manufacturerc (OEMS) and to wholesalers. Tl1e wholesal€rs, in tum, resold the paris to retailers who sold tt|€m as repiac€ment pafis to consum€rs. The latter market was ca ed th€ ,.attermarket,,(AM). Product and Marketing Dlvislons

'

As showh jn the pafial organizafion chart in E\hibit 1, Abrams had a ,,productdivision,,for each of ts fhree pad groLlps. Each of these produrt dMgions was managed b9 a vice president and general manager who was expected to earn a target reiuri on investment (ROl). Lach producl divisionmdnulncrured planls ndils in 5everal and sold a major portion o{ its manufactured parts to OEMS. Each product divisionhad jts separateOEM sales department (see Exhibit 1) that work€d ciosety with OEMS - io develop new products or change existing products. The remaining manufactured pads were sold by the pfoduct

Ms-43@

P,T.O.

tlre AM division io Abrams' fourth division catled "AM Division" as it Markeiing DMsion (see Exhibit 1J or also managed *as known to managejs This dMsion itas and was solelv by a vice president and general mataget ot patts to responsible for marketing Abrams' entire line se!€ral AM wholesalers. The AM dMsion operated in the us company-own€d pads distrjbution watehouses expected and {oreign markets The AM division was also to earn an annual teturn on inveslrnent talget' lnside and Outside Sales 8s 500 ln 1992, tbe {our divisions' sales totalled 100 million Inillion, which included"inside" salesof Rs division The from Lhe three product divisions to the AM approximately Rs. 500 million sales ivete recorded as Rs 100 Rs. 130 million for the ignition Paris division' Rs 90 mlllion million {or the transmission paris division' miltion tot the for the €ngine parts di\ sion' and Rs 180 sales' Abtans' AM division. Alter elimtnation of Inside Because of outsid€ sales totalled about Rs 400 mlllion due to tbe anticipated gto&th in ihe Pads' atiermarket ddven and their irr..nu.e in ihn number of vehicles being the AM Di'isron ages, one o{ top management's goals {or of Abrams toial was fot jts sales to reach 50 dercent outsid€ sales ROI {or the Manutacturing Plants each Continuing the compang's ROI strategy' -plaht within the three product di!'rsions had riranufacturing

Ms-43o

an annual ROI target to meet. Each product division,s OEM sales were traced to the plants ihat made the parts. The plants maintained finished goods inv€ntories and shipped parts directiy io OEM customers. plant s ROI A target was based on budgeted profit (includins allocations of division and corporate overhead erperrses and an imputed income tax expense) divided by actual beginning-otthetear net assets (delinedas totat assets less current liabilities), Exhibit 2 contains an exampte oi the Rochester plani's ac|ual 1992 ROI computation. Actual ROI was actual profit divided by actual beginning-olthe'year net assets. EXHIBIT 1 : Partiat Orsanizaton Charr

Chiel Execulive 0llicer

Chisl 0perating 0flicer

Indusrrial

GenelalM

AL4 ltark€tins

lgnirionPans
0ivision

Engine Pads Division

0all

Ms-43@

P.T.O.

manag€ment's stated reason for including allocaied overhead expenses and iaxes in determining prolit was to have the plant profit figute resemble the profii calculation for extemal financial reports io Top The CEO lelt this gav€ a plant manager a shareholders. clearer perspectiveof the costs ol doing business,the plant's coniribution to the corporate bottomline, and added more realism to ihe plant's results net The beginning_of-the_year assetsamount was used s in because, management lTew' in the ROI measurement investmentadded during a given year resultedin liide, if any, incremental prolit in that year' The inlesbnent would lik€ly increase luture profits Top management telt lhat sueh irNesL'rents mighi not be proposed i{ }r}anagers werc penalized (in the form oI higher net assets and lowet ROI) in the Jirst year of the |1ew investm€nt' Because the investment base for the year was "frozen at (he beginning-oFlhe-year level. lnaximizing profit during year was €quivalent to maximtzing ROI FoT beginningof-the_year net assets. cash and receivables were allocated to plants on the basis oI sal€s revenue' the while inventories, propertg, plant, equipment, and current liabilities wer€ traced specifically to -each plant' Histotical cost tess accumulated depreciation (book value) was used to value propefg, plant, and equipment The AM

MS-43o

division's ROI was measured in ihe same ftanner as the plants' ROIS. Marketing Strategies

The OEM sales departm€nt within €ach of the three product divisions worked with the OEM s etgineets to develop inno\raiive and cost-e{tective new pa s lo meer the and serviced c\rstomeY accoutts lor'parts already being supplied to the OEMS' Each of these OEM sales departmenls iras expected to meet an annual sales revenue target Becuase the prcduct cuslomets requireftents divisions' custom€F (OEMs) were dillelent {rom the AM dir,islon's ;ustomers, top management did not teel ihat the OEM and aftefinarket sales organizalions should be cornbined- Even the three product dMsions' OEM marketing efforts were not €onsoljdaied in one sales orsanjzation because each iivision's OEM marketers tended. to work with dilferenf people within a given OEM'S organization (i.e, ignition, ftansfiission, and engines). Moteover, trvo oI the three produc( dMsions \tete independent companies before being a'quired by Abrams. Thus, there was a long ttadition ol doing their own OEM marketing.

Ms,43o

P.T.O.

Exhibit 2 : Acfual 1992 ROt Computation _ Rochestar phnt
Abra|t|s Compary Thnsmi$ion parts Division

ROCHESTER PI"ANT Profit and ROt Statement,DeceEber31, 1992
Sal€srevenue Costof goods Gross margin ...,.,.,,...,,.. Operating expenses,...,,.,.,,..
Dlrsion e\pensesassigned Corporate a\penses assjgned Profit before ta,\es

Rs. 124,866 73,230

51,636 20,792 11,340 3,420 16,084 4,825 Rs.11.259

Ta,Yes imputed Profit

Net Assels Assigned as ol January I, r992 Toial Assets: Cash and receivabtes Inventories Prop€fty, plant & equipment

Rs.25,000 12,875 86,560 724,435 26,135
Rs.98.300 11-50k

Totalfus€ts
Lesg current liabilities.,. Return on rnvestmeri

Ms-43@

10

According to Abrims' executives, the factors critical to successin the OEM market were ; the abiliiy to design innovative and dependable paris that met the customer's qualitg, pedormance, and weight speciJications; meetrng could delivery schedule requirements so that the OEM costs minimize its own parts inventonesi and controlling very Cost control was important because the market was pnce comPeiitive ln the aftermarket busin€ss' a"?ilabil8 to th€ of parts was by far ihe mosi importani factor wholesaler, followed by qualilv and price Incenti!€ Compensation Plan

ApProximately 50 Abrams line and staf{ managers padicipated in an incentive bonus plan The rupee pool was established amount ol ihe co$orate_wide bonus per share by a fixed lormula linked to corporate eamings o' Each Participant in the bonus plan received a numbet was in standardbonus poinis The higher the padicipant points he the oryalrizationd hierarchy, ihe more standard points lor all or she received The iotal of these pool amounr participants was divided into the total bonus this to arrive at a standard rupee award per point Then' number standard rate was multiplied by ihe pariicipant's siandard of standard points to arnve at the pai'ticipaDt's

MS-43

11

P.T.O.

bonus rupees. How€v€r, the actual bonus couid vary {upward or downward) by as much as 25 percent at lhe diacretionoI the participant'ssuperiors. ln the case of a plant manager,the standard award also was adjusted by a formula that r€lated percent of rlandard award to the plant s profir vdridnce (budgeL versus actuaj.profit). For exampie, if the plant,s actual profit tor ihe year exceeded its budgeted profii by 4 percent, the plant manager'sbonus was raised from 100 percent ol standardto 110 percent ol standard.ln making ihis bonus adjustm€nt,th€ plant,s actual profit was adjusted {or any favourable or unlavourabl€ gross margin variance caus€d by sal€s volume to the AM divisjon being higher or lower than budgeted. For exampler if a plant's lavourabl€ profit vaiance was attributable to a favourable gross margin voume variance on salesto th€ AM division, the plant manager,s bonus would not b€ raised above 100 percent of standard. Simiiarly,the piant managerwould not be penalized if the AM divison actually purchased less from the plant than the amount that was agreedto by AM dMsion when the plani's annual prof't budget was approved by top

MS,43

12

Managemenl

Comments

ln general, top management was satislied with the present management systems and performance

with the casewriter, scheme-In discussions measurement however, they mention€dihree areas ol concem First, there always seemed to be a lew disputes over transler prices of parts sold by the product divisions to the AM division. Whenever possible, by corporate policy, internal sales of parts were made at outside OEM ma*et prices- If a part had been sold as an OEM part s€veral years earlier, the orjginal OEM market price was adiusied upward for intlation lo anive at rhe salespr:ce lo the AM division. This procedure caused vittually no disputes Problems occurred when the part being transferred was strictly an AM division part.That is, it was a Pait never sald by Abrams in the OEM market and for \;hich th€re was neither a cunent OEM outside market price nor a former OEM market plice that could be adjusted Ior inflation. Usually, such transfer price issues were resolved b9 the hxo divisions involved, but occasionallv the vice pesidml o{ finance was askedlo aYbiuaiea dicputd

MS-43

13

P.T.O.

Second, top rnanagement fett that the p;oduct divisionstoo often lended to treat th€ AM division as a captive customer. For example. when the AM division and an outside OEM customer were placing compeiing demands on a specific manufacturingptant, ii appeared that the plant often favouredthe OEM cusromeroecause the OEM austomer could take its businesselsewhere, whereas the AM division could not purchase parts outside. Top managementwas not willing to l€t ihe AM division seli a competitor's product, fe€ling this would rellect adverselyon th€ overall image oI the company. The AM division was expected to convince ih€ appropriaie plant managerto undedakethe.manufaciure ol ils pan needs. Thid, top manag€ment felt that both the AM

division and the three product divisions canied excessive inventories most ol the year. The vjce president of planning said, "Thank goodness we have a generous Christmas vacation policy here. AL ledsl fie invenlories get down to a r€asonablelevel at year-end when our production volume is low because of a large number of employeeholiday vacations".

l\rs-43

14

Questions (a)

,

Elaluate each of the concerns expressed by top make necessary, iI management, and Yecommendationsappropriate to the ctcumstances described in the case. What is your overall a'?luation ol Abrams's management control system ? D€scribe any strengths or weaknessesthat you identilied but did not include in answering the previous qu€stion. mai changes, if any, would you recommend to the top management ?

{b)

MS,43

1.000

MANAGEMENT PBOGBAMME Term-End Examination December,2OO5 MS-44 @ : SECURITY ANALYSISAND MANAGEMENT . PORTFOLIO
Time : 3 hou's MoximumMorksr 100 (Weightage 70%o)

Note :

Attempt ony fiue questiohs. All questions cotty equol morks.Present uolueand annultgtablesare to be prootded, il askedlor
How are the investors in lndia a{fected by taxes in respect ol investrnenis ? Should ti€ i ,lasiorsconsdef tax inc€ntii,eswhile plaDningtheir pordolios ? Discuss.

l.

{a)

(b)

Betneen selfregulation nnd legisiatile regulation, $,hjch js more relevant for India and why ?

2.

(a) What is interestrate risk ? How are '"aluesof bonds affectedwhen the Darket Ete of inierest changes ? lllustrateyour answer.

Ms,44 @

P.T.O.

{b)

A Rs. 100 perpetual bond is cur.ently seiling for Bs. 95. The coupon mt€ of interest i. 13.5 per cent and the appropriate discouni rate is 15 per cent. Calculate ihe vaiue of the bond. Should it be bought ? What is its curent gield ?

3 . Criticaily examine the role of Securities & Excbanse Board
of lndia (SEBI) in regulating the Primary and Secondary markets in fhe country.

4 . What are ihe ilajor cdticigmsot the Technical analysis? Do
the Tecfinical analysis and the Fundarn€ntal anal)lsis give complementary informahon about s€cudii€s for making inlormal decislons ? Explain. (a) What is an eliicient poftfolio ? How does the efficient frontier €hange, when the posstbilit! o{ lending and bonowing at a lisk free rate is introduced ?

1b) Prathiba & Co. recently paid an annual dividend. of Rs. 4 50 per share. During th€ same period, the eamings ol the company were Rs. 8.00 per sha(e. The required {ate o{ rcturn \rith similaf risk i9 10%. Divid€nds are expecledro grow at a consiantrati of 8o/oper gear foi an indefiniie period- Calculate the nomal pdce-earnings ratio oI the company. Whg do people inv€st in Mutual Funds ? Dscuss the tariolrs {actors that are tal@n into consideration b9 the Fund Manager while inaestins in {i) equily shares and {ii) debt

MS-44@

Write short not€son any lour of the lollowrng: (a) Defaultrisk {b) RandomWalk hypothesis

(c). ConstantRupeePlan (d) Bond Convexig (€) Odd Lot tradins (0 Fiherrule

Ms-44@

1.O00

MANAGEMENT PBOGRAMME Term-End Examlnation December, 2OOB
Ms-45 @: INTERNATTONAL FINANCIAL MANAGEMENT
Tifte : 3 hours

MaximumMorks: 700 lWeishtoge70o/a)

Note:

Attempt any five questlons. questionscorry All equal rnsrks.
Elabonte the economic problems which '"arious kinds of imbalanc€s in international flows could create. What measureswould you recomm€nd to correct such

l.

(a)

(b)

What are diff€rent theories of internaiional trade ? How rel€vant are M€rcantilists '"rews in the modem day world ?

2. Wriie an essay on "Evolution of international monetary
system and Indian exchange rate system".

Ms-45 o

P.T.O.

3. What do you understand bV Letter of Credit ? Explain its
significance in international trade and briefb explain vari a \pes of Letters of Cr€dit.

4 . la)

"The extent anal nature of exposure dep€nclson ihe market segment in which the firm operates." DiscLrss with suitable examples. What do 9ou mean by Jorelgn €xchange rate ? Do {oreign exchange rates show reciprocal relationship ? Give suiiable examples, current Indian busines,s environment, minimising exchange loss is a better approach than gains." Comment. maximising€xchang€ Briefly a\plain the special features of the Eurobond market. What do you understand by exposure measurement ? Explain the intemal lechniqu€s of exposure measurement, How can you evaluate global linancial choices ? "Under

(b)

(a)

(b)

6.

(a)

(b)

Disctlis. in brief. any tour of lhe loilowing : (a) Posi-shipmenifinancing

(b) EcGc
(c) (e) lD Strategies Direct Inveslment of Uniquemarketsin lnlernationalFinancialSystem T€chniques transl€rpricing ot 1,000 (d) lnternationalEqui& markets

Ms-45@

MANAGEMENT PROGRAMME Term-End Examination December,2005

MS46O : MANAGEMENT FINANCIAL OF

SERVtCES
Time : 3 hours Maximum Marks: 100 (Weishtoge70Vd

Note t

There ore thrce Sections A, B ond C. Secfion A is compulsory for oll the students.

SectionB is meant only lor the students.who hdue registeredlor M346 prior to Julv, 2005 i.e. upto

Jonuary,2005 semester.
SectionC is meant only Jor the studentsrcgistercd Jor MS46 lron Julp, 2005 semestero4words. AII questionscany equol marks.

M546@

:

P.T.o

SECTION A AtremFt any anfee quesr|ons.

1 . Explain tbe concept and inpoftance oI. financiat seMces.
In what ways are the products offered by ihe linanoal seMces firrns dilfereni from the products oI the indusirial enterprises ?

2-

D€sitbe'ttie axtemd and ihtenal dsks fhai are iaced by financial s€rvices companies. offering (i) stock broking sewices, and (ii) fee based eMces. Discuss in detail ih€ wotl'ing mechanism and {unctions of an Assets Management Co.-rpany set up to rnanage the Iunds of the mutual fund. card organisations do not offer any additional facilities and seruicesto their customers besid€s providing them the credit faciiig.' Do Wu agree ,,nth this statement ? Gve r€asons and explain the present position in lhis regard. Wirat are the important aspects which need to be incorporat€d in factoring agreenents ? Enuirerate the advantages of and disadvantages {acloring. 'Crgdit

3-

4.

5.

MS46o

SECTTON B
Atrernpl dny turoquestpns. 6. Dscussthe variousPre-lgsue Postigsueaclivitiesthat and petormed by the merchani banker ior rdising funds are trom th€ capital markel. What are Debt ma*et' and 'Equi& rnarket' ? Explain th€ initiativesthat are necessary making the debt market lor vibrant, Write short noies on anyfour I {a) {b) (c) Zero Coupon Bonds Credit Ratlngprocess Process Securitisaiion of

7-

8.

(d) GlobalDepositoryReceipts {e} (0 Nalional StockExchange PrivatePlacement

Ms46@

P.T,O.

SECTION C Atternpt ony trro questiohs. What do you undeistand by Dematelia)isatjon of shares ? Discuss the various stages invofued in the proc4ss of switchjbg over to d€pository sgstem, Give advantages o{ the depository system. De$ne lnsuranc€ indicating its basic characteristics.Discuss lhe \,?riousrisk which are inlurable.

a.

Write short notes on any torr {a) (b) (c) {d) (e) {ll

:

Financial and Technical Appraisal of Projects Burglary Insurance Product Liability Insurance Securitisation housingloans ol Hire Purchasesystem Inan Syndication

Ms46@

4

1,000

MANAGEMENT PROGRAMME (Banking and Finance) Term-End Examination Decembet, 2OOS

MS-422@ : BANK FINANCIAL
MANAGEMENT
Time ; 3 hours
Note, Attempt ony fite equol morks.

MoximumMarks. 100
questions.All questions carry

l.

Why do the firms raisefundsttyough saleof their securities in the prlmarymarket? Bdefl9explainthe debtinsiruments that are issued the Indianmoneymark€t. in What are diflerent sourcesof owned funds of a Bank. Briefly explain the \,ariousitems that comprisetiet-l and tier-ll capitalol a Bank. Elucidate factorsthat aflect ibe cost of fundsol a Bark. ihe AIso anaiyse reasons higher mte of inte/€stin India the for as comparedto develop€d courtries.

2.

3.

)"

l,rs-+zz@

P.T.O.

Dis€ussthe salient feah.lresof : (a) (b) Money Market Mutual Funds, and Treae.rnJBills.

5 . Explain the methods general$ {ollow€d by managefs while
e\,aluating projects. Brie& m€asudng the project {isk. discuss the techniques of

6 . Bnng out the signilicance ol 'operational risk rnanagement'
in Banl(s. Dscuss briefly the rnethadologi€s {or measurement of operational r'isk9 ar outlined by Basle Commitiee. Whai do you mear by 'liquidity risk' in the conta{t of a Bank ? Discuss the tools of liqujdiiy nik m€asurement and the issuesinvolved in managing this risk.

8. Wby is pricing ot products important for Bank ? Briefly
explain the Pricing sirategies followed by Banks.

MS-422@

1,000

MANAGEMENT PROGRAMME (Banking and Finance) Term-End Examination December, 2OO5 OF MS-423@: MARKETING FINANCIAL SERVICES
Time : 3 hours MaximumMorks'100 70Yd NVeishrose

Note;

This pop€r consists two Seclions A ond B oJ Section B is compulsory' Attempt any three corry equal questions Jrom SectionA. All questions

SECTION A l. How does ihe family life cycle alfect the need for banking products and se$ices ? What io your vrew would be the most lucraiive F.L.C. segments lorihe following and why ? (a) (b) Ove(dratt facility Housing loans

MS-423@

P . TO . .

2 . What is the significance of branding for marketing of
bdnkng product. ? Whardre the key consrderations th€ that bankers must keep in mind while iaking the branding decision?

3 . What are the sources of proj€ct financing in lndia ?
Critically commert on Ventwe Capital as a financing mechanism for hew projects.

4.

What are the differeni lypes of risl,s associatecl with pension plans ? Comment upon the issu€sinvolved in pension tund

Wrire shon notes on any lhree ol t}le foltowing: (jJ (ii) (iii) {iv) (v) Performance measurement ol pension funds Limirarions marketingof Insuance seruices in Marketing mix for financial senrices Housing finance market jn JDd;a R€lationshipmarketing

Ms-423@

SECTION B 6. Read the casegjven bejow ard a answer the questjonsgiyen at the end of the case : Case Study Indian Bank of Commerce and Industrg 0BCI) was €stablished the pre{ndependencedays in th€ 1930s in with the headquarte$ in Calcutta and mainly serving the then growing industrial centres ol eastem India. The industries in eastern India wer€ dominated by steel, coal, cok€, and manufacturing engineering of productssuch as steel castings, machineryand equipment,railway wagons, jute products,tea, etc_ Together with other major banks in the country, the IBCI was nationalized the Congress by Government led by prime Minister Indira Gandhi. The det€riorationof IBCI startedin mid-1970s when the engin€ering and iute industry in eastern India was badly aflecredby sLrikes. and industrial unresL, and decline in the traditionalbuslness. Th€ bonk with a large number of bftnches in eastem lndia was badly atfected. Ii tried to expand its coverage by opening new branches, particularly in the westem regjon, wh€re mere was an irdustrial boom.

MS-423@

P.T,O.

The barrk had small branch presence ihroughout the country. Even while dealing \rith corporate matket, its specialization and concentration was on relail customers' ln addition to a great reliance on an intensive dislribution sgstem that \,.,asbased on banks with large and incr€asinq number of branches, IBCI l€lt that branch managerc w€re the perfect channels of communication with its customer' It was believed by the top management that branch managers could push up th€ bank's grounh by projecting the bank's image on both retail and corporat€ clienls through organizational a5 w€ll as pe$onal influenc€' With the government's emphasis on spreading banking services to the less prildeged sections of the socieiy, tbe bank implemented drives to attract r€tail customers, and carried out expansion in line with this policy. These w€re th€ types of objectives and policies sei out by almogt all the nationalized banks. The bank board felt that the clients should be given personalized service with fYee access to the branch managers at any time to solve their problems' During tie last decade oI the tw€ntieth century, the emphasis siarted to shift from service towards bank profitability. lt was also feli that the competition in banl'jng had become intense With the entry and grclt'th

MS-423o

4

of

private

and

foreign

bank

promoted

by

ihe

governmentsin India, policiesof successive Iiberalization the luture gro!.,th and profitabilityseemedto be difficult 'targets to achieve. It was felt that some of these new entrant banks were quite capableof giving some oI the seruces hee due to ihe com?etition. There{ote, the competition to attract and hold on to high volume and profitable customerswas b€comingstiff Despite the hish costs. the bank managemeni looked at increasing the market shar€ by using 'ntensive advertising, paficularly through television and print media. However, this policy was also opposed by a number ol senior managersdue to the high expenditure that would be involved. They feli that the firnds should instead be used io carry out direct marketing as it enabled the bank to target and focus on large or important customers and markets. In line with the other nationalizedbanks, product d€velopmeni was quite stagnant The same standard schemes were promoied by all nationaliz€dbank, and yield€d similar rates ol interest. Due to its low protitabiliiy in too, the bank could not afford larg€ investment product developmentto promote high grov,{h. tn fact, when one

Ms-423o

P.T.O.

of the smaller lndian bank

decided to invest Rs. 50

crores in home banklng seruices,the matter was discussed with astonishmeni by the board of directors of the bank Current Situation

By January 2001, the profitabitityof the IBCI had declined sharply, Yet reports published in Economic Times and other business magazines suggested the following trends in retail banking ; (a) Retail linancial sewice customers were becoming <tuite sophisticated in their reqLri{ement. They

e\pected to be given necessarysewic€s as cheaply as possible. The knowledgeable writers and experts in the industry were touting customer contact as the main differentiator bet[een sen ces of different

(b)

At the same time, a lot of experts were emphasizing the electronic delivery system as ihe main vehicle of deliveringcustomerconvenience.

The bank's curreni situation was such that the bank was able io recov€r only 25ok of Ihe cost of ptouding banking services through direct recovery lrom the clients. Of ihe non-interestbeaing costs 60-70 per .enI wete

MS-423@

accounted lor by the payment and accounts maintenance of services the bank. In the case of individualcustom€rs, only about 10 per cent of the costs could be recovered by direci billing. The bank had to find som? ways of reducing the costs or iDffeasing the charges \tilhout surrendering the competitive advantages. The bank appoint€d a market research consultant on a trial basis to carry out a survey of its customets in one area of a city (Table 1). Table 1 : Market Research of IBCI customets A. What ls the best thing about vour bank branch Factor P€rcentageof the Custom€rs

Friendly and helpfulstaff
Convenientbanking services Quick banking seMce Eflicient operations Good advisory service

450k 30% 15% 10%
5o/o

good Generally

MS-423o

P.T.O.

l

B. What is the rtorst thing about Percentageof the Customers Long queuesduring working hours lnconvenieniopening hours and hotidays Uncooperaiiv€ staff Poor reception and seating High charges Nothing in particular for When Mr. Vyas, the marketingofficer responsible this pilot project, presented the findings, a nlimber of senior managers wete unhappy. They felt that since they had been in banking businessfor well over 50 vears, they should know what the customerswant. "We have our bronch managers who are daily in touch wiih our customers, We need not waste any money on such researchschemes,"they said. superfluotrs Recenily, the management seruce commission of the nationalized bank conducted a survey ol all the market bank in the country, including some ol the leading privaie and nationalized banks. The head of lBct's customer servi.es division, Mr- Khanna, extracted the following information from the national data, and, in addition, prepared a comparison with a slightlv smaller sized private bank as a further reference.

MS-423@

Table 2 : Main ltems forming part oI the Proflt and Loss Acount for vear 2OOO 2OO1 Item

IBCI
Bank

Typical Private Bank

N€t lnterestincome(lnterest €arned less interest paid) Other income Total Costs Operating costs Provisions doubtful^addebts for Profits before tax

5.lvo
7 04/o

5 1o/o

2.7% 78')
56%

6 7o/o

0 5vo
6 2Va 0.7%

0 8o/o 64%
7.40k

All the aboveligures are a pefcentageof the total assets employedby th€ respective bankTabl€ 3 : Customer distributioo by ag€
Age Group IBCI Bank o/o Private Bank 7o Major Indian Banks %

15-24
25- 44 45- 64 Ouer65

16

17

29

39 30

35 30 19
P.T,O,

24

MS-423@

Table 4 : Socio-economic distribution of customers
Socio-economic IBCI Bank Private Malor lndian Group Bank Yo Banks

8

c1
C2

18

37

28 30
79

21

29 34
Private Bank %

Table5:Depositmix
Deposit Mix Current account deposits Fixed and large deposits Savingsdeposits

IBCI Bank

10
16

23 23

74

As a part of th€ bank'sinvestigations futureexpansion, for ihe bank had also coDducted smallsuwey of about 250 a existing customersto understand their inter€st in home bankihg.The resultsol this surveyare shown in Table 6. Talrle 6 | Customet Interest in horne banlid.rg
Lettel ol lnierest

For Home Banking%

For Home gnravel Banking/Shoppin
ak

High Medium Low
None

Not sure

30 25 25 20 0
10

25

23
2

MS-423o

The board ol directors'meetingwas scheduled be held to . shodty to discllss the future dircction of fhe banks efforts to retun to profitabili\r. It was f€lt that any such decision would have to be made after weighing all th€ issues of costs and long,term growth and profitability. The board of directors planned to discussthe lollowing issu€s : (i) {ii) . . Problem o{ current lack of profiiability Whether to condqct further market r€search

(iti) Whether io look at a proglamme ol opening 100 more branches as a key groMh strategy (iv) lmplementation of home banking syst€m at an estimated cost of 30 to 50 crore rupees.

The board of directors neededto make the dectsionurgently_ Questions : (a) (b) Identify the mdn marketing problems faced by IBCL What should be the main sbategies along which the bank can or should develop ? Should the bank invest jn 100 new branches ? Should the bank invest in the home bankng system ? Justify your answer.

(c) (d)

MS-423o

1t

1,O00

MANAGEMENT PROGRAIIIME (Banking and Finance) Term-End Bramination December.2OO5 MS.424g : TNTERNATIONAL BANKING MANAGEMENT
MaximumMarks, 700 Note : carry Attempt any tine questions. questlons All equol marks.

l.

'lntemational What are Enancial Organisations' ? Briefly de$ribe their main categories and highlight their role in the World €conomic development. Briefly explain ihe deta s ol Basel Capital Accord, 1988. Also discussthe amendments firade therein to incorpo{at€ market rtsk. Is it nec€ssary for the parties to stipl ate the 'Choice of Law' while carrying out int€mational banking transactions ? What lactgrs in youl view influ€nce 1ie choice of law ? Briefly discuss.

2,

3.

M5424@

P.T,O

4 . Discuss the diflerent types ol risks involved in the Forex
Dealing Room operations of a participating bank. Aiso explain the process of eliminating/reducing these risks. Discuss the 'multi fitcior approach' to risk management. Btietly explain some of lhe lypicat factors ihai could be consid€red this approach. in

6.

'online What is banking'? Explajnthe roie of E-commerce in Cross Border Trade. Whai do you nrean by 'Currency Swaps' ? Bdefly expjain different types of cwrency swaps. Also discllss thg benefits and risks assoclatedwiih these swaps.

E.

Write short notes on any tour of the folloLving : (a) (b) (c) (d) (e) (f) Classification of Regulaiion on Intemational Banking Private placement Foreign Cunency Loans Foreign Bonds and Euro Bonds Risk Management Framework Causes of G'obalisation

MS-424@

1,000

MANAGEMENT PROGRAMME (Banking and Finance) Term-End Examinatlon December, 2OQS

MS-425O : ELECTRONIC AND BANKING IT IN BANKS
Time : 3 hcturs

Maximum Marks : 70O (Weightoge 7O%)

Not€:

Atrempt any floe questions. questions All cafty equol morks.

r. (u) Explainhow daiaminingis us€fulto managecustomer
tor\dhJ. (b) What are th€ management issues of netwo* implementation ? 2. \a) Draw an E-R diagGmin a bankingenuronment. (b) l^4rai is cryptography? Describethe prowrties ol goodcrypLographrc algoflthm ?

Ms-425@

P.T.O.

3. (a) Explainthe technolog risksjn banks.
(b) ExplainIT Act, 2000. How is it rclevantto banks? 4. What is SystemAldit ? Whai are its basic objectives? Distinguish betrreenSystemaudit and Cornputeraudit.

5 . (a) E'(plain applications multimedia banks. the of in lb) ' How does data intelligence ? mining $pport customer

6 . What is ElectronicData Interchange (EDI) ? Dscu6sthe main elementg an EDI system. ol (a). What is a Smart Card ? Dscuss diflercnt types of (b) Explalnthe components ATM. of

8. Write short noies on the following ,
biliing {a) One-to-one (b) ComptrterTelephonylntegntion {c) One-to-on€market,ng

(d) wAN

MS.42s@

t,oo0

Fs6rOl
MANAGEMENT PROGRAMME Term-End Examination December,2O05 MANAGEMENT MS-52€) : PROJECT
Time , 3 hours MoximumMarks: 100 (Weightage 70o/o)

Note :
(i)

Atternpt an? three questionsJrom SectionA, each corrging 20 morks. Section B is conpulsory and corries 40 m'xrks.

Iti)

SECTION A 1. "Project Management has assumed great significance in modem organisations." Explain. What are the different 20 tools and iechniques used in Poect Managemeni ?

2 . Explain Project development cycle. How do you conduct
Pre F€asibility and Feasbility studies ? Give examples.

20

3. What are the different t!'p€s ot organisation structures in
projects ? Give a suitable structure for a road constructron project.

MS-52 @

P.T,O.

Discussth€ importanceof a good accountings!,stemfor project implem€ntatjon. What are ille factors 6uccessful ? 20 that afleci ptpject.costand how can they:be cotrtrolled (a)
(b)

Discuss the
Managemenl.

usd of

Cybemetica in

Projeci

..10 10

Explain Contractsplanningand ContEct negotiation giving examfiles.

MS-52@

SECIION B 6, "The time spent on preparinga DelailedProject Report (DPR) is rellected in tfie success a project." Explain. ot Enum€rate variousasp€cts that are coveredin DPR, The tollowingiable givesdeiailsof a project I
NoImal Crash Immediate Cost Cost Predecessor Time (week) (Rs.'000)(weeks)(Rs.;ooo)

7.

10
B 8 5

20
15 8 11 9 5

7 6 4 4

30 20
74

c
D E
F G
It

6
8 5
1'

5
4

E A,D,C

8
4

3

8

Indirect cosi is Rs. 400 per day. (i) (ii) Find critical path for normal durationFind ihe oDiimnl duratjon.

(iii) Rnd the minimum projeci cost,

MS.52 @

1,000

MANAGEMENT PROGRAII{ME Term-End Examination Decernber, 2OO5 RESEARCH MS-51@ ; OPEBATIONS
Time: 3 hours Morks: 700 Maximum (Weightose 70o/a)

Note : Ii)
Section A hos liDe questions carrying 20 morks eoah. Attempt anq three questions. Sectioh B is compulsory ond carries 40 ma*s

tiil lli'

Graph poper will be supplied on demond

SECTION A

L

Explain the chaEcterjsiics of OperatjoJrsR€search. Dscuss its importance iro decision making ptocess. Giue the limitationsof o.R. 20

Ms-s1 @

P.T.O.

Solve the follo$,ing Linear Prcgramming Problem graphrcdlly i Maximise = 4x1 +6xz z to Subtect the constraint5

*r>2
x2s+ xt.x2>0

20

3 . A compaoy is spending Rs. 1000/- on ttansportaiion ol its
units from three planis to four dishibution centres. It has calculatedthe cosi of transportation from different plants to distribution c€ntres, giv€n below in Rs. The supply and demand of unlts is also given below, Will the company save and how much ? some money by optrmumscheduling Distdbution Centfe. ,

20

Plant

D1 19

D2

D3

D,

A\'?ilability

30 30
10 8

50 40 60 7

t2
60 20

7 10
18

P^
' 3

70 40

Requirements 5

MS51o

4.

The annual demand Ior an iiem is 3200 units. The unii cosi is fu. 6/- and jnvpnrory canyrng cosr is 25% per annum. lf the co:t o[ one procurementis Rs. 150/-. flnd out (r) lii) (iii) Econoorc Order Quanlity No ot orde)s per yPar Time behi,€en tv"13 consecuti\reord€rs 20

(iv) The optimal cost Mention assumptions made, if any. 5, {a) Discussihe appljcationot dynamic programming in decision making. How is this djff€rent from linear programming? 10 Explain Convex and Concave lunctions as related io nonlinear programming- Discuss Kuhn - Tucker conditions.

(b)

10

MS,51 o

P.T.O.

SECTION B

6 . A self-s€rvice grocery stot? employs one cashier at iis
counter. Eighi customers arrive on an average every in 5 minutes while the cashier can s€rve 10 customers 5 minutes. Assuming Poisson distnbution for anival and exponential distribution lor seMce rate, lind (a) (b) (c) ld) (a) in Averagenumber of customers the system in Avefage number of customers queueAv€rage time a cu.tomer 5p€nds in the syst€m. Average time a custom€r waits belore being served Find the saddle point in the lollowing case and also lne game value.

20

^l:
B

10

14

11.l

s -111 -s 141

(b) Explain th€ need lor simulation in management problems.Give various steps in simulationprocess' 10 giving€xampl€s.

Ms-51 o|

1,000

MANAGEMENT PROGRAMME Term-End Examinatlon December, 2OO5

MS-53 : PRODUCTION/OPERATIONS O
MANAGEMENT
Time: 3 hours
Note : Maximum Marks : LOO

Section A hos liDe questions corrying 20 marks qrcstions from each. Attempt ony thrce Section A. SectionB is compulsory snd carries 40 marks.

SECTION A
l. (a) Explain the variousfactorsthat are to be taken into account for plant locaiion. Discussin connection with settingup an electronicequipmentplant. (b) What is meant by qualiiy assuranceand by total qualiiy control ? How is each different from the ,6*19=20 modern conc€pt of TQM ?

MS-53@

P.T.O.

2.

(a)

Stopping waste is a vital t,art of JIT. Identify some . sources oI u,aste and discuss how they may be

(b)

A managet must decide b€tlreen thes€ altematives : Machin?,

Cost {Rs.)

4,00,000 3,00.090 8,00,000
Product lorecasis and processing times on tbe rndchin€s ar€ as lollows i

Which machine would have the lowest total cosr, ano how many of ihai machin€ would be needed ? Machin€ op€rat€s 10 hou|s a day, 250 ddys a year.

10+10=20

Ms-53@

3.

{a) What eltect does pull produciion hav€ on product
BOMs ? Why do products in pull production need fewer'level BOMs than the same products produced in an MRP type push syslem ? (b) A mirnufacfurer of farm equipment is considering three locations(A, B, and C) for a new plant. Cost studies show that fixed costs per year at the sites are Rs. 2,40,000, Rs 2,70,000 and Rs, 2,52,000, rcsryctively, u,,hereasuariable cosfs are Rs. 100 per unit, Rs. 90 per unit, and Rs. 95 per unit, respectiv€ly. Il the plant is designed to haL€ an effectivesystem capaci! oI 2,500 per y€ar and is exp€cted to operate at 80 percent efficjency, what is the most economic location, on th€ basis of actual ol.rtpul ?

10+10=20

4-

(a) What is group technology ? What is iis purpose ?
How is it used in product desigD ? Horr is jt used to form product families?

(b) A

t

work-sampling sludy o[ customer ,enice repr€sentatives in a telephone company olfice showed thai a receptionist was working 80 percent of the ane at 100 percent performance rating. This rec€ptionisthandled 200 customersduting ihe 8 hour siudy period. Company poljcy is to give allowancesof 10 percent of total on-the-job time. Find the normal time dnd the standard time per

10+10=20

Ms-53@

P.T.O.

5.

{a)

What is the purpose of long,range resource planning ? Whai information is need€d for such planning ? You are to tesi the validity ol your forecasting model. Here are the forecasts a model you have for been using and the actualdemandfor that period.

(b)

l

800 850 950 950 1000 9'15

900 1000 1050 900 900 1100

2 3 4 5 6

Compuie th€ MAD and tracking signal. Then decide whether lhe forecdsting model you ha\e been using is gjving reasonabler€sults. 10+10=20

MS-53 @

SECTTON B

6.

(aJ What is the elfect of saleiy siock, safety lead tine,
and safety margin on inventory ? Discuss ihe ellectiveness of these m€asures in oftseltjng uncertaintyand processvariability. (b) A company is about to begin production of a new product. The manager of the d€pattm€nt that will produce one of the components for the produci wants to know how often the machin€ used to prcduce the iiem wjll be avajlable lor ather work. Th€ machin€ will produce ihe item at a rate ot 200 uniis a day. Eighty units will be used daily in assemblingthe final produci. Assemb9 will iake place fiv€ days a week, 50 weeks a year. The manager estimatesthat it will take almost a full day io get the machine ready for a production run, at a cost ot Rs. 60. lnventory holding costs will be Rs. 2 a year. (i) Whai run quantitJ should be used to minimise ioial annual costs ? (ii) Wbat is the length of a production run in days ? (iii) During production, at what rate wlL inventory

buildup ?

10+10=20 P.T,O.

MS-53@

7.

Write short notes on any tiue of the lollowing : {a) (b) (c) (d) (e) (0 (g) (h) Job enlargement Cause and effect diagram Intemal customer Flexiblemanufacturing system Design versus natural toterance Howe of Quality mairix lncrease o{ entropy Feedback conirol sysiem

Ms-53 @

1,000

l-c*ol
MANAGEMENT PROGRAMME Tem-End Examination December,2OO5 MS.54O : MANAGEMENT INFORMATION SYSTEMS
Tirre : 3 hourc Moximum Marks: 100 (Weishtoge 70%l

Note I

Attempt any ,hree questions from Section A. Each question corries 20 marks. Section B is compulsorg ond corries 40 marks

SECTION A l. (a) Explainstructured unstruciured giving and decisions
e"\amples.

10

ib) Gle

salient features oJ Simon's and Massie's decisjonmaking models. 10 Discuss the ''System process of syst€ms design giling

2.

ia) (b)

10
Developmentis a very important step in desisning MlS." Explain. How do you design for gmooih systemimplementation 10 ?

MS-s4O

rP.T.o.

3.

(a) "MlS

project

planning."

implementation needs careful Explain. Give various steps in

implementation.

10 10

{b) Djscuss expert systems and their application in
decisionmaking. 4. (a) Discuss the functions of daia communication ? and concentrators software.What ar€ multiplexers Explain the use of DBMS sofhrare. What are ihe maih criteria for selecting a DBMS ?

10 10

(b)

5.

Wtite fioteson any fout: (a) (b) (c) (d) (e) Compui€r neivnork Query languages Computer r,rrus Legal Dimensionsof Computerisation RDBMS

MS-54@

SECTION B 6, Read the case study given below and answer ihe questions given at ihe end ol the caseKLM lnternaiional is a medium sized company in India with about 1500 employees. The company manufactures special machines for th€ agro-based plants. The indlsiry, boih Jor farms and lood processing company buys materjal and componentsfrom about 200 @ndors located in lndia, Japan and Gemany. Products ar€ sold either io wholesol€rs or directly to clients (from is a mailing list of about 1500 customers). The business quite rompeiitlve. The company has the foilowing inJormationsyslems in place: marketing, iinancial accounting,engineering, research and dev€lopment and manuJaciuring(CAM). These slstems arc inAependent o[ each othet and od9 the financial accounting system is on a tAN. The companyis having proliiabilityproblems.Cash is in high demand and short supply. lt is proposedthat the company explores ihe possibility of using inlormatio[ technology to improve the situation. However, Vice President of finance objects to the id€a, claiming ihai most of the tangibie b€nefits of informatjon fechno)ogy are already being realized.

MS-54@

P.T.O,

Questions

:

Assxm€ you are hired as a consultani to th€ Presidenl of KLM lnternational{a) (b) Prepare a list of potential applications of informalion technologles that you thlnk could hdp the company. Suggest a suitable d€sign of informalon svstems. Would you recommend any t€lecommunication arrangements Justib such de'ign. ?

MS-54@

1.000

fMs55@ I
MANAGEMENT PROGRAMME Term-End Examination December, 2OO5 MS-55@ : LOGISTICS AND SUPPLY
CHAIN MANAGEMENT
Time : 3 houts

Morks: 1O0 Moximum (Weightage 70Ya)

Note :

Sectlon A hos six questions eoch corryhg 20 marks. Attempt any lour questions. Secf,on B is compulsory ond conies 20 morks.

SECTION A 1. It is said that the or,erall aim of logistics is to achieve high customer satisfaction or perceived product lalue. This must be achigved with acceptablecosts. How would you find the besl balance ? 2. Explaln the t,arious issuesin logistics with sp€cial relerence to transportation. What are the stages tor selection of the appropriale iransport mode and why ?

MS-5s@

P.T.O.

3 . Distinguish behreen independent and dependent d€mand
inventory systems. Why is conventional inventory control system not practised lor dependent item mat€dal planning?

4.

What were the reasons for the fall of management accounting ? Explain activity based costing mentioning its benefitsover management accounting. The mosl cormon melhod lor evalua-ing non.economic factors in a faciliry location study is to use a scoring model." Why ? Justify your answer. Can a supply cha'n be both elficient and responsive ? Risk-Hedging and Agile ? Why or Why not ?

5.

6.

MS-5s@

SECTION B
7Read the follo{ring case and answer the questions gjien.at the erd oi the cade : Supply Chain Sccc€sses Mumbai Dabbatvatas

The DabbawaltasoI Mr-rmbar d unique (ase o[ are Logislr.s. NedrlyslackeC dobbos lTlfin. Lunch Boxesj are a common sight every ]Ete .r]-oming at Mumbai, in lndia. A man who is generally i)literate deljvers hot lurch at the 'Ih€r€ doorstep of the subscriber. are hardly any cbances that lou will get a wroDg dabba. 'lhere ar€ millions of

I

t

offic€-goeB in Mrjmbai and instead of carrying lhe Juncb at an earlg hour in the moming they prefer to subscdbe to dabbd service. For a small le€ the dobbabala TrcUsup ihe freshly packed lunch from the subscriber,s house and deliversit to hisAer office at lunchtim€. Once lunch is over, the empty dobbo is again collected by the dabbowalo. This is done with the help oi Mumbai's extremely efficient railwag system called .Mumbai Locals'. There are special trains known as the dobbowala special. The dobbos change many hands and are load€d and oflloaded in many trains betore thetr final delivery. The€ is a scientific way of puiiing an identilication mark on th€ dobbo. Each dobbd lid is to be marked with a particular

Ms.55@

P.T.O.

' code. .For

example NXXF

wher€

N

denotes the

dabbawala's number (assigned by the association), XX is a combination indicating ihe btilding and F is the floor nu,'nbe; of that building where the tif{in-box has to be deiivered. The M is also marked with a number denoiing the railway station wbere the Tiffin-box has to be off-loaded, followed by an alphabet indicating the station of pick up. Can you imagine all this is done lor what fee ? The senice charges vary beiween Rs. 150 (US$3) io Rs. 300 (U9$6) per monih, deperding on the custonrer's location {and the distanc€ covered). A Parsi banker started this when he ernployed a cariff to fetch his lunch every aftehoon. The idea caught on and this in6piied many uremploy€d people to becone dobba carri,ers- Soon each dabbor.mla had a handful of customers. To ensue that each carrier worked only in a particular distdct and didn't intefer€ wilh other dobbaudllas, a union called 'M\rmbai Tiffin Box Carriers Association' was lormed in 1968. Today thbre are more than 5000 serniliterate "'Dabbauallos" \rhich trajFport 1,75,000-boxes in a 3-hour period, through 25-km of public transportation involvlng mulliple ilanster points. ln 1998, Forbes Global magazine conducted an analysjg and gave them a SX SIGMA BATING OF EFFICIENCY.

MS-5s@

4

Qu€stions ; (a) Define the inputs, process and outputs of the Dobbawallos. What are the other businesses India lhat can learn in lrom Dabbawollos? Can you suggesi measuresfor betterment of service to Dobbowollas?

(b)

{c)

Ms-55@

1,O00

MANAGEMENT PROGRAMME Term-End Exarnination December,2OOS MS-56 @ r MATERTALS MANAGEMENT
Time : 3 hows MoxlmumMorksr 100 lWetghtoge70Vd

Note t

There orc eight questions in this questlon poper. Attempt any floe questions. All questlons cotry equol morks.

1.

What is the scopeof materialsmanagement Defire tl€ ? rarious roles ot mateids Danagementin the context of intemal and externalinterfaces a materials to management system.

2.

Why is negotiaiion an important asp€ctof purchasing? Describ€the elementsand obiectives negotiation.Also of dlscuss negotiationprocessand techniques. the

Ms-56o

P-T,O-

3.

Briefly expiain th€ reason for the evolutiori of planning (MRP I0 hom rnaterial manufact.ring resources requirementsplanning (MRP). How does MRPll differ {rom MRP ? Exptainthe difference with the help of a flow diagram.AIso expiain how itrst-in-tlrne producdonsystem (JlT) ditfersfrom MRP ll.

4.

ls considered applicable to production endronments characterized b!' longer s€t-ups and flucluatingdemand.Why ? Discussthe various lossegin \rarehouses. What are the reasonsof their generation ? Discussihe procedure of pre\€nting and controllinglossesir a warehouse.

CONWIP

6. Explain rhe Supply Chain OperationsR€ference(sCOR)
frameworkfor performanceappraisaland how it is uselul in materiaismanagement. ? . What are the measuresyou recominend to rnainlain inventorysecurt&in stores? Digcllss brief th€ problems in and their rem€dieskl caseol valuationof {inishedgoods and work-in-prccess inventory.

Ms-56@

E.

Write short noteson any tour of the follooing : (a) TQM in materials management (b) Needfor international purchase (c) (OPT) OplimizedProductionTechnology

(dJ h'anban (e) EffectivePoint Advi6e(EPA) {0 Mahices of performance appraisal in materials managarent

MS-56o

1,000

tMss?Ol
MANAGEMENT PROGRAMME Term-End Examination December,2OO5 MS-57 O : MAINTENANCE MANAGEMENT
Time i 3 hours

Moimum Marks: 700

Note ,

paper cantoins All serenquestions. This question questionscarry equol morks.Attempt ony fiue quesuons,
is preventive maintenance ? Explain different

1.

mat

preventive maintenance tasks. How is the total rnaintenance ? maintenance cost affectedby lhe levelol p)eventive

2.

What is the aim of spare parts inventory management ? In what way.doeg it influence the different stages of th€ life cycle of spare parts ?

3..Many

organizations have standing con{licts amongst

maintenance and production/operations employees. ' Describe the nature and causesof these conflictg.

MS-s7@

P.T.O.

4.

t{hat is the short-term determinlstic or un;t z}achine problem ? How do you take replacement decisions in case o[ equipment/component whose operating cosi increases with use ? What ar€ the rafious techniques, whicb can be used for scheduling and monitoring of projects ? Why is neh,,/ork analysis preferr€d ? Discuss their advantages over other methods. What is the basic difference b€tq/een CPM and PERT ? Exptain the basis ol identilying and analyzing a problem, while making use of temperature monitonng technique. Name some of ihe instrum€nts used for temperature

Write short notes on any torr (a) {b) (c)

of the lollowing :

l,'nportant features ol Totdl P{oductive Maintenance Zero-basedBudgeting System R€liability in System with Components in Series Gamma Distribution Prerequisiiesfor Autonomous Maintenance

(d) (e)

Ms-57@

1,000

MANAGEMENT PROGnAIfttE Term-End Examination€ December,2OO5 l MS-58O : MANAGEMENT R&D AND OF INNOVATION
MoximumMorks: 100 (Weightage 70Yo) Note. Attempt .ttt quations. All questions carry equol

1.

Explain the following techniques of enhancing/maintaining th€ creativiiy : (i) Brainstofmihg.

(ii) Syneciics OR

What are the reasons lor technotogical inertia, pr€\renting implementation ol new technologies ? Give some examples because of which suspicions about newer

technologies rampant. arc

Ms-58O

1

P,T.O.

2. Discuss and critically examine the \arious inc€ntives and
measures provided for in the Gov€rnment policies for promotionrff jF]p?qrrt of R&D in lndia. What additional measures,ifAy. have be€n laken over the past 5 - 7 years
qt^

i

o

R

What are the different types ol R&D organizations ? Wbat kinds of R&D organizations are found in India ? Also discussthe functions of R&D organizations

3 . Briefly describe, the following models :
(a) (b) The Adair Model The Blanchard Model

on
Write short notes on the following : (a) (b) {c) 4. Dfferent hierarchical models of R&D organizadors Matrix organization and its advaniages Le-drning organizalion

Discuss the salient features of the incentives and support measur€sprovided by th€ following countries for promotion of R&D technology development : (a) (b) France Malayasia

OR

MS-s8o

In the context of national R&D infrastructure and institutionalfuarnerl?ok, lvrite notes on the following : {a) D€partoent of Biotechnology (DBT) (DOD) {b) Depadmehtof OceanDevelopment (c) Depaftmeniol Science (DSTi and Technology (d) Depanment oI Scientific and indusirial Research

(DSrR)
5. Write short notes on the {ollowing : (a) (b) (c) Good practices in Technology Transfers Sources oI Patent lnionnaiion in India SPREAD

OR
l{&at is GATS ? How can jt lacjlitate accessto technology and Technical infolmation for developing countries ?

Ms-58o

1,000

tr*.@l
MANAGEMENT PROGRAMME Term-End Examination December,2005 MS-61@: CONSUMER BEHAVIOUR
Time : 3 hows MaximumMarks: 100 (Weightase7\o/o)

Noie :

This poper consisis al two Sections A ond B. Attempt any three questrcns Jrom Se.tion A. Section B is cor'rl,ursory. All questions carry equol marks.

SECTION A
l.

Explainthe VAIS 2 Systemof lifest!,le classification. How .ihis approach be used io develop promotional can strategieq lor (a) A health club (b) Luxury cars

2 . What are the factors thai influence the retri€val of
information from long-termmemory by the consumers ? How would you apply the knowledgeof these faciors in your advertising decisions ?

MS-61 @

.

P.T.O.

3. . What do you understand by socral class and social
stratificafion ? How would you as a marketer oI the following- productg usa your knowledge of social class influence io market your products ? (a) {b) Motorcycles Domestic appliances like washing machines

4.

What is the role ol eGluative criteda in consumer decision process ? List the e!.aluatlve critena that in ylour opinion first time buyers are likely to use in the purchase of (a) (b) A Reridenhal house A lif€ insurance policy of the following :

5.

Write short notes on any tltee (a) (b) {c) (d) (e)

After Refenal Choice heuristic Bettman's information processing model Classical conditioning theory ol consumer leaming Factors influ€ncing information search b€haviour Organizationalbuyingb€haviour

Ms61 @

B SECTION
6. given Readthe casegivenbelowand answerthe questlohs at lhe end of the cdse. Bayet Aspttiri't Une Extenston

l
I

For many years, aspirin dominatedthe market for non prescriptionpain\relief and Bayet aspirin dominaied the aspirin market. However, in recent yea6, pain relieverc acetaminophen- and ibuprofen-based have taken over much of the market. By 1989, productsheld only 40 perceni of the total aspirin-trased abalgesics market. Thts dropped to 35 percentbv 1992. Bayer hns abouta 6 6 perceni shareol the total analgesic 'r.a:Jret and 79 perceni of the aspirin market.
Cornpetjtjon jn ihe analgesics matket is intense. Ttpre arc three main type of analgesics - aspirin, acetaminophen, ard ibuprcfen, There are several adr€rtised brands within each lype ol analgesic as well as private lab€l and store brands.Product d"terenceswiihln analgeslc categories afe limited. The int€nse cornpetition has glven ds€ to product proliferalion and niche strategies. All the ptii,aie label and store branG competeon price. They may sell lor hal, $e price of the natlonal brands. Advil is the leader in the ibuprofen category with a 50 percent share. Motrin wjth a 15 Fercent share has used three different commercials

F"

L.

I
L

Me61@

P,T.O

to targ€t backache, arthritis, and headache pain. It atlempts to "maintain ih€ brand's appeal as a general analgesicwhile r€dching oul to snecr{i( groirps ol pdrn su{{€rers lhroush ddvpnislng. The slfategyappearsto be working as its shar€]s growrng.Nupr'n (13 percenl share) has aiiempted to comp€tewith a locus on muscleaches, using celebriti such as Jimmy Connors. MichaelChang, es and Joe Moniana. Similar niche slrdtegie\ are dpneaflng in the acetaminophen and aspirin categories. Acetaminophen based Midol is attempting to posiiion itsel{ as "the menstrual r€hef s)recraljsr'.li tLdher iocu.es wjlh su.h line exLens)ons lvlidolPM NrghflimeFormuraand Mdol ar lB Cramp Reliel Foimula. Tylenol is increasingly positionedin terms of arthr'tispain reli€f though it Is also widely used for headach€relief. Recent medical lindjngs indicatethai the regular use of aspirin helps certain heart and coloo conditions.Bayer jntroduced Therapy Bayer {or this application. but aspirin saies in generaL and Bayer asp rin ;ies boih continue rh€ir relalive decline. Excedrinwas historicallybehind Bayer in the asplrin category. Hqw.ever,it now has a greater total markei share in the overall analgeslcs markei. lt has managedlo grow ils mdrkel share by : aggressivelyadding line ' -

MS€]@

extensions

:

ibuproJenbas€d

Excedrin

IB

and

acetaminophen-based ExcedrinAF and Excedrin PM. Bayer miinagement is consideing introducing

non aspifin-based analgesjcs using the Baget name, Questlons : {a) If the company wants to proceed with the line extension, what leaming principles should they

apprya
(b) If yoLr were asked to develop an ad for Bayer's ibuprofen'based analgesic,what perception r€lated knowledge would you use to develop the ads ? Explain the aititude chang€ principles that would be relevant to Vou in the development of the above advertisements,

(c)

MS-61 @

1,000

MANAGEMENT PROGRAMME Term-End Examination December, 2OO5 MS-62@ : SALESMANAGEMENT
The : 3 hours MoximumMorks, 700 (Weightage 70%)

(l) (ii)

Attempt ony three questions A. lrctn Section Section B is compulsory.

(iit) AII questtons corry equol marks. SECTION A
1. {a) Discuss the significance oI Inlormation System Iot sal€s administration. Discussthe factors you would keep into consideration for developing a proper information system tor sales effectivenes,sby iaking the example of a consumer durable like water purifier.

(b)

Ms-62 @

P.T.O.

2.

la) Briefly discu-cs ihe Interpersonal communication (b) How can an understanding of Transactional Analysis
help in handling a customer ..,,,hoconlmuously lteeps asking irrelevant questions durlng a saies pfeseniation ? You may assLtmethe example oI a m€dical tepresentative who is interacting with a medical professional or any other similar situation.

3.

(a) Briefly explain the issuesinvolved in the perforrnance
evaiuation of the sales personnel.

{b) What performance elaluation mechanism would you
propose for those sales personnel who are not involv€d in direct sales but are primarily involved in promotion of the product, like a publication hous€ hiring sal€spersons tor promoling the text book amongst leachers ?

4.

(a) What are the advantagesoJ setting sales quotas ? (b) Brieilg e)tplain how sales quotas are set. You may
assume example of any company to answer this'

MS-62 @

SECTION B 5. Caretully vead the [o ou,ing case and answer rll9 questjons given at the end oI ihe case: CASE

.

Anupama Cosmetics (p) Limited was one of the leading manufactur€rs of soaps, tacial crea&, shampoo. hair cleam, Iipstick and toilet powder in fndia. These products were extensively advertised in all the leading newspapers, iournals and magazin€s in the country_ The markeiing organisation of the con)pany was headed by a marketing manager who had under his controi six regionai sales oftices siiuated in six principal cities of India. Each regional oJlice was in charge of a sal€s supervisor who was responsible for execuiive direction of a number of salesm€n. ln 1997 morc than slxty salesmen operated oui of six r€gional sales olfices of the company. The sales sLrp€r,,isorssubmitted monthly l"ports to the marketing manager on the progress of sales and performance of salesmen in their respective regions. Selection oI Salesm€n The management of the company strongty believed that intelligent selection of sales personnel was hjghiy necessary for improving the efficiency of business. The

MS-62@

P,T.O.

Markeirng Managet was particularly anxiorLs to see tnat ih€ salesmen oI the comapny possessedthe following : (i) Good Appearance : A general grooming ol the individual to make sure that he would noi dev€lop a hurdle o{ sales lesistance bv his shabby appearanc€ phvsical : Personaljty He shouldhavea w€ll developed as well as mental PersonalitY voice and elfecliveexpr€ssion A good speaLinq Modente habits, good health and physical fitness Alertness, lriendiiness and pieasing disposition lntegdty, hotesty, and pers€vetance

(ii)

{ri) (ivl (v) (vi)

(viil Ability to get along with other p€ople and wiltiogness - to \tork hald {or the comIEnY Aft€I selectron each salesman was given intensive trainlng at the head of{ice for a petiod of three morihs Thereafter he was posted in one of the company's regional sales

Dufies ol Salesmen Salesmen o{ ihe companv w€re required to per{orm the lollowing duties loi' the company , li) io ca[ on customersol the company and bing to their notice the products of the company and book orders lrom them;

Ms-62 @

(ii)

to contact retailers including druggists, general stores, and others and study their changing attitudes iowards the poducts of the company and report ihem to their

(iit

to call on dealers regularly and help them in ananging display of the comapny's producis: to discuss new product selling features, new policies and campaigns of the company with prospects; to coopehte with the stockists of the companyi to aci according to ihe terms. conditions and policies of lhe company and lo obpy the o)ders of sdles

(iv)

(v) (vi)

{vii) to nrake /eports and carry on coffespondence and submit expense accounts to the company periodically accordtng to the instruciions given; and (viii) to carry out miscellaneousactivities as might be given to them from time to time by their superior officers. Situation in 1997 Anupama Cosmetics (P) Limited, which enjoyed almost a monopolv position for a number of years, suddenlyfaced compeiition h the markei in 1996. The conpetiLion mainly cdme fro-n rhrpp newl,r establshed quality foreign companies.Thes€ companiesemphasised and price of lheir producis.Theg spent a large amout on advertisemenland sales promotion. In addition, each of them had an etfectiv€salesorganisation.

(s MS-62

P.T.O.

During this period the company also faced certait Iabour problems in the factory. Due to workers' strike the factory had to be closedfor a few wee!,sin the beginning of the year. In addition, due to rise in excise duties imposed by tbe Government, ihe company had to increase prices of some of iis products. The markeling manager realis€d that market conditions were constantly changing and *lat in order to improve the company's sal€s pe ormance some vigorous elforts were needed on the part of lield saleslorce. Questiors (d) :

Comment on the qualihes ihe salermenwhich Lhe ot marketng manager was interested in and also the duties assigned to the sales people.

(b)

Do you think these q.ialities and responsibilities are adequaie in the changing circurnstances?

(c)

What specific additional responsibilities should be assigned to ihe salespersonsas per your advice ?

t\4s.62 @

1,000

tr;'@l
MANAGEMENT PROGRAMME Term-End Exaniination Decembet, 2OO5 MS.63O:PRODUCT MANAGEMENT
Time : 3 hours

Marks, 100 Maximum (Weishtoge 700/0)

Note :

.

This paper consists of tuo Sections A and B. Attempt an\ three qrestions lrom Section A. Seciion B is conpulsory. All questions carry equol motks

SECTION A l. Whaf is the matix apToach ta Votuct pbnning ? By taking an illustrative example, explain the suggested markeiing strategy for a multi product company on the basisof a productevaluation matrix.

2. Why is environmental analysis important for product
manager ? For a product categorg like air-conditioners or washing machines, explain the environm€ntal factors you would need to monitor,

Ms-mo

P.T.O.

3 . With respect to any new product idea of your choice,
explain the proces,sof concept development and iesting. What is the significance of this stage in the new product process? development

4.

How is prjcing atlected by ihe other elements ol the marketingmix ? How do factorslike competition,siage in the product lifecycl€ and costs affect th€ pricing decision for a new product ? Explain wiih the help of examples. Explain the piocesses of product audil and produci augmentation.How does the und€rstanding these tt o oI concepts enable a marketer to finalize th€ attributes of a Proposednew product?

MS-m@

SECTION B 6, Read the case given below and answer the questions at ihe €nd of the case. The "Success" Story distribution house is handling a number of consumerproducts of reputed companies,aci'ng as iheir selling agent. Thg producis were mark€d by ihe company und€r the brand nam€s of their respective manufactuing concerns.The companylost a profitableagencysincethe distribution of ihe products \^Bs taken over by ihe manutaciurerhimself . Based on iis past experience on sjmijar ljhes, the company inirodlrced a tooih-paste in the market manu{actured by itself, under the brand name of ''Success". At ihis point of time, C'was lhe brand leadet in the tooth-pasiemarket follow€d by 'B' and 'F . When 'Success' in 'Larg€' size was launched iniijally, the . distrbulion $ias lantastic,in both ihe rural and the urban markets. The coveragewas extensiveand the consumer Iesponse was very encouraging. The irodLrct was much in demand in all the reiail outlets, including pan shops. However, after some time, ihe company started getting a number of complaints related to packaging. The caps trsed were unable to \rithstand the transportation, due to which the contents from the tub€s were leaking out. Without tully rectifiJing the defecis, {he company came A

MS-m@

P.T.O.

out in the market with bigger sizes of tooth pastes like 'Gani' 'Eeonomy' and undey the same brand name 'Success'. Simultaneously, company introduc€da new th€ products lik€ talcum powder, hair cream, tooth range of brush and shalifig cream. Al1 these products were manufaciured by the company itself. At ihe time of launching these products, the company was already mark€ting shaving cream and tooth brush under differmt brand names \rith regular trad€ schemes. But the companydid not operat€any attractivedealerschemefor the 'Soccess' range o{ prducis and the sLdden spu in the number of produc[shandleddid not hav€ the requisite adverijsingbackup. The company b€ganto notice a suddendeclinein the sales ol newlg inkoduced products. At this stage, th€ company also introdutpd the Success rooth powder in two different sizes.During ihis period the suppliesol the brand leader 'C' werg inegular and restricted.The other 'F' fwo tooth-paste manufacturers, viz., 'B' and did noi have tooth powder. Therefore, ihe Success' tooth po\rder started moving wel in the market. The company again launch€da n€w serieso{ similar products except tooth-pasie und€r a new brand name 'Victory'. This tumed out to be an utter failure due io poor marketing strategies,which adversely'atfected the company'simage-

Ms- @

appointed a new protessionai marketing chieJ, who decided to go in for yet anoth€r 'Success' series tange of cosmeticproductsgroundingihe of products, orrt ol the rnarkei, The new venture also proved io be futil€ exercise, and ihe 'Viciorg' range ot productsalso had lo be dbandonedfinallg. The company (fuestions (a) I 'Success

How do you explain the failure of the range of products ?

(b)

'Vjclory' Is the company justified in introducing ihe range of products ? Do you find an9 organizational weaknesses in the functioniogof th€ company? Suggest a marketing plan to enable the distribution 'Succ€ss house fo tum around the performance of

{c) (d)

Ms-63€)

1,000

MANAGEMEM PROGBAMME Term-End Examination December,2O05 MS-64@ : INTERNATIONAL MARKETING
Ilme : 3 hours Maximum Marks : 700 (Weightsge 70Vd

Note t

Altempt ony tht.ee questians from Sectlon A. SectionB ls compulsory. All quesrpnscorry equol

SECTION A

l.

{a) Dillercn ale

between Absolute ad\Entages vs. Comparative advantagein international marketing,

{b) Describe various reasons for a firm for entering
internaiional markets.

2.

la)

"An ittetnaiional marketer has to find out a tade-off between standardisedand customised products as it is diificuit to evolw a global produci." Do gou agree with the above statement ? Justify your anslver wilh sujiable examples.

Ms-64 @

P.T.O.

(b)

What

are the Jactors infurencing international marketing communication decisions ? Jusiity your answey\rdth suitable illustrations. Explain the concept o{ Iniemational Producl ljte Cycle. Evaluatethe relevanceof IPLC concept for the following (il (ii) Bicycle GenericPharmaceuticalProducl

(a)

(b)

Explain the concept oJ Mafgjnal Cost Pficing. Give reasons for its jmplication in intemauonal rnalketing visa-vis dom€siic marketing.

4 . Write short noies on an; three of the {oltowmg '
(a) lb) lc) EPRG Concept Evaluation ol country risk Influence of culture on international marketing

{d}

Foreign axchange market

Ms-64@

SECTION B
5. Read the case given below and answer the qLrestions gi!€n at Ihe end ol the ca-se: Giilette had bgen a pioneer in the shaving category since 1900 and had sinc€ been the v,/cddbader jn tbis category. Cillette started its operation in lndia in 1968 and sells many t:lres of ftzots, razor blades, shaving creams, deodorants, toiletries, and oral care products. The market slnrcture for many ol Giilette's products had mainly been rnonopolistic with many producers in the Dayket. Technology and product dilferentiation play a key role in marketing of razors. B€sid€s, Gilletie spends heavily on adveriising and sales promotion. Most of the Gillette products are inierdependent in demand, productio; and consurnption. For instnnce, razor blades and shaving creams are complirnentary with raaors. The demand [ot razors ls price elastic and any reduction in price of razors tends to increase its d€nrand which has djreci eflect on total revenue of complimeniary products such as razor blades, shaving creams and shavjng lotions. Gillette's sttaiegy has been to keep the razors' prices low and the p/ices of razor blades and shaving creams relatively high. Razors contribute very low rewnue to the company's lumover \r,,hereas ta?or blades contribute almost 90 percent of the cornpany's fumover. As Gillette s marketing strateg!, price reduciion on one brand of ra?ot increases its demand while it cannibalisesihe demand for other ra?ors in th€ similar categorv sold by Gillett€. The company keeps a constant vigil on the market and monitors ef{ect oI pricing decisions on substitutes aDd its cannibalisaiion impnct on its other products.

Ms-64@

P.T,O.

cillette India has a market share o{ 60 percent in bladesand razorsin Indla. The compositionof Sri Lanka's sha\rng market (Fig. 1) suggests that disposablerazors accountedfor 679o ol markel share followed by double edg"d blades(32%o) twin blades(1%l in 1999. As and indica&d in FiS. 2, Gillette's market sharewas a meagre 7% while BIC dominated mark€twiih 91% market the

Composttion o{ Srt lrnka's Shavirg Market

(re99t

Twin Blades, 1%
blades,32% FiCiute f Compositiot of Di.posable Razore in srl lankn (1999'

oth€r 1% ----

Supar Mac, !%t

Btc,91% Figu'e 2 MS-64@

macro economic data indicates tha'i sri Lanka has a populationof 19 million that is growing at 13 percent annually,with a p€r capita CDP of Analysis of US$ 850. The literaca rate in Sri tanka is quite high at 92 percer\t in the South Asian region. The male population in Sri Lanka is about 52 percent. Out of them about 60 percent mal€sare above 15 years of age. This gives a broad indication of good mark€t poiential in Sti Lanka. Gillette's meag/e share ol 7% in value ierrns is a matter oi serious concern for the firm and the top management. Questiond ; (a) Work out in detail the type of information requred for conducting the mark€t res€archin Sri Lanka. Also list out specific sources of compiling secondavy in{ormarion. Prepare a research plan to identify the Gillette's meagre market share of 7o/ain disposable razors in Sn l-anka.

(b)

Ms-64o

1.000

I I
Note .

MANAGEMENT PROGRAMME Term-End Examination December,20O5 MS-65O : MARKETING SERVICES OF
Time: 3 hours MaximumMarks: 100 (Weishtose70o/a)

This paper consistsol three SectionsA, B and C. Section A is to be attempted by students resisrered lor this cource lot July 2004/Januory 2o05/July 2005 semesters. Section B is to be ottempted b9 students rcgistered for this cource Jor Jonuory 20U semester. Section C is to be 1ttempted by oll the students. All questiorc corry equal marks.

SECTION A Attempt anv thrce questions. l. (a) marketing What are the implicationsof the services triangle ? Explain gMng suitableexamples. Distinguish betueen the following with the help of exirmples : (i) 'Search qualiti€s' and 'experienc€ qualiti€s' (ii) 'Faciliiating services and supporijng services' P.T.O

(b)

MS€5o

2.

(a) Taking the exampleof a hotel, explainthe Gronroos Modelof Service Quality. (b) What do you understand by the term Yield Managem€nt ? Discuss th€ importance oi yield management an airline. for

3.

(a)

Explain the term 'word of mouth communication' and discuss its significance for a health selice provider. Discuss ihe importanc€ of location decisions for ealucational seMces.

(b)

4,

Write short notes on any ,hr€e of the following I (a) (b) (c) (d) (e) Trends in international trad€ in services Roles of physical evidence Importance oI customer ret€ntion Extended marketing mlx for hotels Classification of product support sennces

M5-65 (t

SECTION B Attempt ony three guestions. 5. Discuss the importance oI the following lor a service providey,giving suitable examples : {a) Physicalevidence (b) lnvesiing in 'people as a source of competitive ' advantage 6. (a) Describesome of the n€ys of measuing crjstomer for expectations servic€s. What are the indicators you would useto m€asure ? that expectatjons (b) What are the issuesthat shouldbe in consideration while brandingfinancialserviees ?
(a) Ouiline the key issqes in promotion oI educatioD services. What, in your view, would be an ellective promotion mix for a management institute ? What are the oajor ways of segmenting the tourism rnarket ? Explaln-

(b)

Write short notes on iny three of ihe {ollowurs I (a) {b) (c) (d) (e) Reasons for grov,,th of ihe service sector Senjce process Posiiioning strategies for advertising agencies Relevance of marketing in logisiics industry Serlice quality

M5-65@

P.T.O,

SECTION C 9. Studg the case giv€n below and answer the questions giv€n at the end. Wodd c!'m World Gym began operationsin 1995 in a large city. The company'sobjective was to meet the fitn€ssneedsof a div€rse c):enlele, lrom the prolessional body builder to the overweight person, Wortd G9m's pricins plan was to have a {]lness Iacillty that targeted ihe common person - a fitness facility that was not on the high end or the low €nd, but in the middle price range. ln the beginnlng it pianned io challenge the price of the top-of-the-line facilities. lt olfered its seNices in a big spacious cenFe in a high-t6ffic arca, a part of citv that was becoming genlrilied. There was linle comperition in the area. The establishment's large space, with natural llghi coming in, set it apart from competiiors. The company expected its m€mberc to come Jrom other clubs and facilities not only in ihe immediate ne'ghbourhood.bul all around rhe cjty. lt saw its lracje area as the neighbourhoodswithin an 8-10 drive. minute

MS65@

The company decided to begin by marketing its product to people who were already working out but wanted somethingunique.When the company opened its fiiness facility, consumers readily acceptedit. World Gym membershipfar €xceeded expectations. now has 3,000 It m€mberc. As many as 2,000 people come on a given day. For years World Glm had few seriouscompetitors.In the city, permits are required io open a glm and thus are an obsiacle to potential competitors. And the cost of opening a 35,000-square-footfacility is an additional barrier to entry, Qrr€stions {a) :

Was World Gym's pricing plan appropriate in a market where there was a relatively low supply ol Over t'me World cym's membersh,p exceeded expectatjons, Demand was strong and constant. What impact might this situation have on the company'spricing strategy? On product strategy? Suppose the company learns that two new competitors plan to open liiness faciliiies within a mile of Wodd Gym. How migbi the increased supply of services aflect World cym's pncing policy ?

(b)

(c)

Ms€s@

1,000

MANAGEMENT PROGRAMME Term-End Examination December.2OO5

MS-66 : MARKETING RESEARCH G)
Tlme: 3 hours MaximumMarks, 100 (Weishtage70o/o)

Note t

This poper consisis oJ two Sections A and B. Attempt on9 ,hrce questions lrom Section A. Secfion B is compulsory. All questions carrg equal marks.

SECTION A
f. (a) What are the dilferent data scales? Give examples of each of them. How do they aff€ct ma*eiing researchprocess? {b) Whai is Principal Component Analysis ? What is the m€aning of rotation in Factor Analysis ?

MS-66@

P.T.O.

2. . (a)

Which research design strdll you r€commend for profiling the potential customers of a fast moving consumer good ? What would be the k€y steps for such a research ? Wbar ,s patjrjpdtion observalionmerhod ol dara collection ? What are the , special precautions ? such res€arches requiredfor conducting What are the special considerationsrequired lor conduating a'readership surv€y as compared to any other product'susershipsurvey? What are the ditferent methods available for conducting consumer motivation research ? Describe any one ol tnem. data sourcesavailable What are the main secondary io lndian marketing researchers ? Describe th€ir main limiiations. List the important "exieris" that you may like to use in in marketing research€s India. For each ol the €xpert categories id€ntified, give some of the product categories that they would be specially surtable fof. Give reasons.

(b)

3.

(a)

. (b)

4.

(a)

(b)

5.

Write short notes on any thtee qf the lollowing , (a) ProjectiveTechniques {b) (c) (d, (e) StratifiedSampling Multi Dim€nsionalScaling dataIndiancensus Consumerpanels a soLtrce markeilngr€search for

MS-66@

SECTION B

6 . Uttam Vahan Ltd. (UVL) is a major car manufacturing
Indian company ol India. UVL has decidedto understand comp€tition to car distom€$ afreshin response increasing purchase is not so much al{€cted They believe that the car of and demographic characteristics b9 the socio-economic they pot€ntial customersas by their lifestyles. Therefore, have designed following questionnaireto captur€ the profilesof potentialcustomers. Q.1. Do you int€nd to buy a car within next six months'/ Q.2. Which brand and model of car do you intend io buy?-

Q.3. Why do you intendto buy that car ?
Q.4. For what purpose do you intend to use the new

car ?
Q-5. Besides yourself $ho else in your {amib ate likely 10 Q.6. Your monthly income : , Q.7. Your occupation Q.8. Your education: Q.9. Do you oum : A car ?

A credit card ?
A mobile phone ? A personal computer ?

MS,66 @

P.l.o.

Q.10. No\x I shall read a few statemenis. Please indicate v.rhether you "Strongly Agree", "Somewhat Agee", "Neither AgreeNor Disagree","SomewhatDisagree" or Strongly Disagree" with each oI them. (a) Cars are the main reasons of pollution in the counfy. (b) Women should not be allowed to drive cars. (c) (d) (e) (0 (g) (h) (i) t) (k) Cars promote consumeristculture. Cars deny use of regular exercising. Cars are homes on ihe roadsCars are luxuries that our country con ill afford. I enjoy long car drives with my friends. Govemment has taxed cars excesslvery. My car usageis very fixed and regular. My car sp€aksabout me. The speed limit fixed for cars on Indian roads are too cons€natlve, My friends are e ,ious of my car.

0) (m) I am never afraid of accidentswhile driving. {n) Cars bring ihe family closer. (o) On today's congested roads it is belter to $alk than drive. your lirst impression. {p) Your car creates (q) I understandthe car rnachinery completely. (r) CarsgreatlyfacihldLe socialisatlon. (s) I love adventurousjo$neys. (t) Cars are my fiIst love in li{e.

Yourname: Q.11. : Q.12.Your address

Ms-66 @

Assignment i (a) Comment on the questionnaire used. Outline an interview questionnalr€. guide lor th€ above

F
i-

(b)

(c)

Outline an analysis p{an Jor the above questionnaite based study.

MS-66 @

't,000

MANAGEMENT PROGBAIU|IIE Term-End Examinatlon December,20O5 MS-611 : RURALMARKETING @
Time : 3 hours

MoximumMarks, 100 (Weishtase7@/0)

No,€ r

This paper consists of two Sections A and B Attempi ony three questions Jtort Section A Section B is compulsory. All questions corry equal marks.

SECTION A 1. Brie{Ly discuss the rural enviro$ment ir} terms o{ the infractructure available for markeiing. How does this environment affect the marketing decisions and opportunities ? Explain with refer€nce to (a) (bl N4arkeiing bankrngservices ol Marketins ol consumer n€cessities iike toilet soap and detergents

MS611@

P,T.O.

2 . Disc'-rss major dilferencesbei..rcen urban and rural the
market res€arch. You have been ask€d to assessth€ market acc€ptance an €conomyIangeof personalcare for products in villages ol North lndia. What sourc€s of secondarydata :and primary data witl you use lor your markei research?.Brieflyexplain.

3. Dlscrlssthe udriousstrategiesmarketersuse for product
modification. d€cisions for ihe /ural markets, with the help of suitable examples.As the product managerof an €stirblishedconsumer goods company, hc!, woujd you handle the menaceof spuriousbrands in ihe rural markets ?
4. What are th€ impoltant media \rehiclesspeciallg srnted for adr€dising a.ld prcmotion in th€ rual .rnarkeis ? Having identified the rural market po6ntial, gour company is ke€n ' ' io promote its economy range of cooking gas stoves ln the rural market. What is ihe media lnix you would suggest to the company and why ? 5. Wdte short notes on any three of ihe following : (a) {b) {c] ld) (e) Roie of retailers in rulal dist/ibution $gnificance Melas of periodic markeis like Haats and

Behavioural aspects jn rural disirjbution E chaupal as a disiributlon iniiiaiive Physical distrlbution decisions lor the rural market

MS,611@

SECTION B 6Bead the case given below and an$rer th€ quartions given at the end of the cas€. Requitmenl oI Insurarce Agents by Orn Xotak Life lnsurance

,/ S€nsing a big opportunitg in rurat markets, Om KoFk Lit€. lnswance set up a separate rural business division headedbr a senior'vicepresident. The marketingsiraiegy revolved around generaiing business using agent routes, jnirially in Maharashtra Press advertisements were ret€ased in both national and regionaL newspapers io select afld appoint agenis. Ho\xe\ret, despite rcpeated inseriions the response was very poor. Thereafter, the company approached a recrultmentagency,a marketingagencyoperatingin rulal areas and an agenca with its net'r,/orking sources ln ffal

The fi$t t\ro agencies did not have reach in llral areas. So, Om Kotak linaliz€d a deal with Rulal Relations, a Pune-based agency with an excell€nt network of rural volunteers, to recruit agenis for the company. Bas€d on its previous experience, R\$al R€lations emphasized three components oJ their recruitment strategy : {1) dired personal contact (2) spreading

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P.T.O.

informatior, through group discussions(3) motjvatjDg people to become ljfe insurance agents through counselling.
awareness-buildlng stmtegy included sending letiers to opinions ieaders using the huge Rural Relations databas€, highlighting the beneliis of becomjng agents for the insurance company and requesting them to spread the news locally Lo ldentify suiraDle agenls. Six personswere kained by Rural Relations ic) contact villagers, particularly rural youth and bri€I them about the insubnce business. A $,ellproduc€d leaflet ploviding inJormation on the cgmpany and career prospects, was dso hand€d oui at the preilminaly interviews held in nearby tdlukas. 'lhe the lirsl level agenLasse$ment was done based on information provided in the appllcalion foyms, The

followed by quality of participation in the counselling session and petlormance in a djrect personal intervi€w. Out of the 375 candidates who appeared, 110 w€re shonlistedfor rhe secondround of inteMews. ln the second round, the company head of ihe rural life insuhnce busjness conducted th€ interviews, along wjtb his sales maDager and an HR manager from Rural Relations. Oirt oI the 68 candidates wbo appeared, the best 30 were seiected. Thereafter, they r{€re put throwh a 20-dag lnsurance Regulatory Development Authodty

M S6 1 1 @

stipulated training programme, conducted by Maharashira Insititute of Technology at Pune. During the training period, Ruml Relations

coordinators interacted with the candidates on a daily basi6 to soh,e an9 personal or couGe-related problems. To sustain motivation levels, informal dinnerc were also arranged on a weekly basis to encourage candidates to interact with each other and wifi members of the Rural Relanonsieam. These ellorts were successlul in building up the in candidates' self-confidence their abilities to become competent rural life insurance agents, as was €videni from the 100 per c€nt pass rate in the final €xamination. Questiorrs j (a) Crjtically evaluate the recruitment strategy followed salespeople. by Om Kotak for its insurance What are the altemative sfrategies ihat you would have followed to atiract larger numbers of prosp€ctive applicants from the rural segment ? Give feasons for your answer,

(b)

MSS11@

1,000

MANAGEMENT PBOGRAMME Term-End Examination December,2005 MS-612 O
Tlme: 3 hours

: RETAILMANAGEMENT
MoximumMarks: 700 (Weishtoge 70o/o)

ti) (iil

Attempt any three questions frcm SectionA

(it) Seclion B is cotnpulsory. All questions corry equal marks.
SECTION A

1.

(a) Discuss the rele',ance and scope of marketing
research in retailing. Exilain brjefly the probable areas when MR can be applied in retailing

lb) Define "Category" in retail business. E\plain ihe
importance ol category management as a strategic tool in retail business.

2. lal Briefly discuss ihe key components ot atmospherics
enticing customer pull towads your storc.

(b) Trace th€ evolution of retailing in tie
marketing envfonment and contribution to the economY. comment

ltdian on its

M5-612o

P.T.O.

3.

Explain the elements of strategic planning process in the context of retail busin€ss.Take an example of your choice to illustrate. (a) Merchandising at the core of.evety retail business. is Dscuss. What role does technologyplay in merchandising ? What precautions are to be taken while plannins to adopt technologg in retail business?

4.

(b)

5.

Write short notes on any three of the following r (aI (b) {c) (d) (e) Role and Responsibilitiesof v€ndor Types of chain stores Trends in security Wheel ol retailing Positioning of retail store

M5,612@

SECTION B 6. Studv case the givenbelow drswerrhequestion\ given and
ar lhe Pndof the cd.e. Dinesh looks outside his first store outlet at the Metropolitan Mall in Gurgaon gear Delhi. H€ sees the two MBA studentsapproaching him for an interview.The studentsNeeiu and Smita had mentionedthat they were preparing a case on r€tail location as part of their MBA studies.Dinesh bad readily_agreed ihe interview. He lor has opened his second waich outlet in the Metropolitan Mall ln Gurgaon just 15 days back; while he is confident about his choice oI ihe Metropolitan Mall as an ideal location for his outlet h€ is not sure if this ouilet will do as well as his first outlet, about 7 to 8 km away at Sadar Bazaarmarketin Gurgaon. Neetu i Thanks a lot for granting the inter",iew. Can you please tell us atrout your outlet at Sadar market in Gurgaon ? Dinesh : I startedretailingin watchesin 1994 under the name Ram & A!""tar Sons in Sadar market. When I startedthere were 15 shops sellingwatchesin the Sadar market, no\,,, there are about 20 io 25. But Ram & A,"?lar Sons is the largestand besLknown In fa.l we are the largest watch outlet in the whole state of Haryana.

M5612@

P.T.O

Smifo ; You get customers from all over Gurgaon ? Dinesh : Ybu wolrld be surprised to know that my customers come from as far as 50 - 60 kms south of Gurgaon from neighbouring iowns like Rewari, Pataudi, and Bhiwadi. You may know that Sadar Bazaar in Gurgaon is the destination market lor people fr<im this large region. I ha\€ custbmets hom all sections ol tbe populalion from small children to old citizens belonging to all income categori€s. .l keep a large variety of branded watches and am a franchisee of Time Zone. I have expanded my ouret jn Sadar and now jt is spread over t\ro floors. I plan to add t'ro more floors to the Sadar Bazaar outlet,

Neetu ; Why did you plan to open an outlet in Meiropolltan Mall ?
Dinesh : In Sadar market there is too much congestion now; car owners find it difficult to find parking space.They now prefer to shop in the malls where there Besides, th€s€ newly upcoming malls provide a much more pleasant shopping experience, I expect suc}Jcustomers wolrld ncNJprefer to shop in tlre World of Watches - the name I have chosen tor this n€w ouilet. is abundant parkins facility.

M5-612@

4

Smita i Do you expect your customers to shift thei{ purchases from Ram & Avatar Sons in Sadar market to the Wotld oJ Watches oullet in the Metropolitan Mall ? Dinesh : I expect a rery small perc€ntage of my custoro€rs io shift their purchases from Ram & Avatar Sons to World of Watches. As I mentioned many of my customers com€ from far off places to the south of Gurgaon ftom small towr6. The Sadar market is much more accessible to these people since the railway station and bus teminus are nearby. I don't expect more than 15 - 20% o{ m! customeis at Ram & Avatar Sons to shift their purchases these malls and shop at World of to

Neelu i Then why have you set up this new outlet in ihe Metropolitan Mall ? Dinesh j I expefl most ol rhe cuslomersof World of Watches io come lrom coloniesin south and west Delhi. I expeci that 80% of my customerswill be from Delhi. I do not g€t customers from Delhi at my Sadar markei outlet. So you can see that I am targeting a totally different segmento, customers. Smito i Why do so many people come io your shop from colonies in Delhi some of which are more than

Nrs-612@

P.r.o.

20 km away. After all there are many watch retail outiets in Delhi. Din€sh i They do not come to my shop alone. They come to these malls from Delhi for recr€ation and shopping. You can see that these malls provide a very pleasant air-conditioned shopping environment. The null also has abundani parking facilities and is convenient for people owning cars. Becaus€ ol that they attract people from Delhi. B€sides that many people from Delhi work in Gtfgaon; they also pref€r to do ti€ir shopping in th€se malls. Neet'u ; What else wotrld be diff€reni about your customers in Sadar market and here ? Dinesh : My customers in Sadar market aye from a cross-section of the socieiy, most of them use public transportation. I a\pect my customers at the Metropoltan Mall to be from upper middle class and middle-class income groups. The customershere would generallybe car owners. Also I expect a hrye customers here to be younger in age. nutnbet ol nry

Smita j Why do you ej<pectyounger crov.,d to cotn€ to this shop ?

M5-612@

Dinesh j This mall attractsyoungsters because the of presence of a large number ol eating joint, pubs, and cineplexes. There are 4 - 5 pubs near my shop. Neeru : Did you do any sunreybefore deciding on this location ? Dinesh i I am in business long. I understandthe for needs of my customersand, hence, I could identify the customerswho would prefer to shop here. I met a lot of shop own€rs in. the mall and also had discussionswith my customers-I estimatedthe daily walk-ins to be around 6000 to 8000 going up fudher on week-ends.As ihis Mall becomespopular, I expect to do good business. Neet'u i You have chosen the first floor location rather than locating on the ground floor of the mall where the customer traffic is higher. Why 7 Dinesh j The rentalson the ground floor are armosr double; I don't expect to do enough business to recover the high rentals on the ground floor. Besides, as you might have seen, the shops on the lirst llooi are smaller and more in number. Sinca there are larger number of shops on the first floor, a broader range of merchandise would be available. That will attract a lot of customers to the first floor. Besides, ihere are many pubs on the first Iloor which would atrralt youngsters.

M5-612@

P.T.O

Neetu j How many customers do you expect at World of Watches esery da9 ? Din€sh I I expect about 400 to 600 \^ralkins e\Jery dag. Il the conversionratio is about 8-10% I will be happy. Smita i reseafch? Dinesh r I did not do any formal marke4 research; ihese tiguies are based on my discussionswith other shop owners and my long experienc€ in the fieid. Smita j Is there any difference in your business strategg between here and your Sadar market outlet ? Dinesh : I keep a wide rang€ ot branded watch€s and provide repair facilig at both these outlets. However, at Sadar I keep more of lower pric€d bran& like Sonata. H€re, I plan to keep more of high-priced branded watches. I sell Titan, Timex, Casio, and Citizen brands of watchesin Sadar. Here, I am also planning to introduce premium brands like Pierre Cardin and EspiriL. The average value of watch I sell in Sadar is priced around Rs. 1,000. Here I exp€ct the averageprice of a watch sold to be around Rs. 2,000 to Rs. 2,500. Are these figures based on market

MS$12@

Neetuand Smitaj Thankyou v€rymuchsir; thishas beena greatleamingopportunity both of us. for As Neetu and Smita driv€ back to their collegehostel theg discussabout their interview. Smitd r Dr|esh is certainlyan intelligentbusin€ssman but I wonderif he has takenthe right decisionby opening his secondoutlet in the MetropoliianMall. I also wonder if Dinesh has made a right decisionby locating on the first floor. Neetu : T11e Mehopolitan Mall attmcts a lot of footfallsbut I wonder lf the peopl€visiting this mall would purchas€watchesfrom here. If watchesare purchased as _products, impulse I suppose the large walk in crowd would be attlacted- I would like to discusswith orr professor if watches are convenience, impuls€, or shopping products. Questiors : (a) Has Dinesh done adequatemark€t researchbefore deciding the location his second on of ouilet? What elsecorlld he have done ? (b) Should ihe watch outlet have been located on the ground aloor instead ol first floor whai . datalnformation is needed belore taking this decision ?

Ms,612G)

P.T.O.

(c)

What are/the advantages and disadvantages oI a location in a mall like the Metropolitan MaI compared io a location in a central business district like Sadar Bazaar ?

M5-6120

10

1,000

MANAGEMENT PROGRAMME Term-End Examinatlon December,2OO5

MS-6S@: MANAGEMENT MARKEflNG OF COMMUNICATION ADVERTISING AND
Time : 3 houts Matimum Marks : i00
(Weightoge 7@/ol Note : (i) (ii) {iii, Attempt any thtee qtlesfionslrcm SectionA. S€ction B i5 compulsory, All questions carry equol fiorks.

SECTION A l. Why wor.rld manufacturer smallhand tools see trade a of promotionsas an effectirerlay to increase sales? What his type oI salespromotionschemes \r,ould recommend you for suchan otganizal/ofi ?

Ms68(D

P.T.O.

2.

ln 2005 "Exoiica" a corporate gift company mailed catalogs devoted to providing corpo&tions wiih a s€lection ol Diwali gifts to be used as employee inc€ntives. The catalog offered bulk quanuti€s of merchandise embroidered ,rrith corporate togos ai \,arying discounts, depending on the size of the order. Sucha mailingwould only be sent to those companies designated as qualified prospects. How does the prospecting activity o{ the cataiog in this case dif{er ftom that used lor selling to consumer market ?

3.

(a)

Discr.lss th€ advantages and disadvantages oi Television as an advertising medium. ln what ways could a direct marketer use teievision to promote direct sales ? Brielly describe each method.

lb)

4.

while for What factorsurould!,ou consider mediaselection, yout answer ? d€v€lopiag advertising an canrpaign lllu.strate eith suitable €xamples.

l\,4s @ 68

SECTION B 5. Carefullyread the gr€n.ase on IndidnAir Force {lAR dnd answer the questions given ai the €nd of the cas€ i The Indian Air Force {lAD doesn'i pay, it's not wofth risking !,our lif€ liying MiGs and its too difficuit getting in nnway - this is what youngsters thirll ot a career In the lAF. An IAF suwey conducted by ORG Matg asked 3,000 students b€h^/een 18 and 20 u,hat they thought of a job in what was once considered the most glamorous d€fence wing. Theg were asked to till up a questionnaire and list iheii prefgrenc€s in order of priority. Education topped th€ pre{erence list, Iollou,ed by an opporiunity to' do research work. A luxurious lil€siyle and fat pay package came in The surtey revealed that youngslers were scared ol {lying MiGs - the IAF hasn t 'flging been able to shake olf the coffiD' tag. Students thtnk the IAF is a poor pagmader and that promotions thid. happen at a snail's pace. For ihe lAF, whicb i3 shott of 45D ol|icets, the $rrvey's lindings are damning. The Air Force has now declded to launch B massite awareness 'misconceptions among the c€mpaign io remove these youth. "Our publicity ceils will be activated so thai youngsters get to jnferact with officers. We are exploring ' ihe idea oI a car rall, to popularlze the IAF, Eaid Wjng Commander R.M. Of{icers. Danak, Joint Director Personnel

MS-68@

P.T.O.

la)

What marketingissue(s) IAF to handle? has
minds€t ? Do you ihink that the car rally will help in achieving the communication objeciives ? lf you have to handle this iask, what communicaiton sbategy woLrld gou recommend to IAF ?

{b} Who are the Target ALdiencesand what is their

MS€8o

1,000

l-Mrqdl
MANAGEMENT PROGRAMME Term-End Examination December, 2OO5

MS-91@: Otdr STRATEGIC MANAGEMENT Revised ADVANCED : STRATEGIC MANAGEMENT
Time : 3 hours MaxiinumMorks: 100 (Weighnge 70Vo)

Note :

There are two Sections A ond B. Section A hos tvro sefs. Sef .l ls meont Jor the students lDho houe reglsteredJor MS-91 : StrategicManogementprior to July 2005 i.e. upto January 2005. Set Il is meont for the students who haue registeredfor MS-91 : Adnnced Strotegic Manogementhom July 2005 onwards. Attempt ony three questions frcm Section A. All questions carrg 20 morks each. Secfion B is conpursory Jor oll, ond corries 40 morks.

Ms-91o

P.T.O.

SECTION A S€t t (OId) Strategic Managem€nt

t . Organizationale nronment plays a major role in the
decision-makingof the firm. Discuss in bdef, ihe organizational with respectto the stakeholdeF environment and their relationship with the firm. 2. Explainthe conceptof selflessness the rmi\€rsalinner with structureof leaders.

prccessand discuss 3. Explaintechnologyforecasting various forecasting techniques. 4. Explalnthe conceptof SocialProcess Audit. Briefly d:scuss bnow€s Modelas an apprcachto socialr@ort. Write shod noteson any tfrree of the following , ta) Environmentalanalysrs

(b) t€vels of strateg!' (c) Evaluation shategy of

(d) Leadership styles (e) Holding companies

Ms-s1o

SECTION A Sa tr gwised) Advanced Strategic Management

t . Discuss natureandscopeof corporatemanagement the and
its role in non-business givingexamplesorganisation,

2. 'The different market structures have different viewpoints
with respect to compelition.' Explatnihe statementwith fespectto the marketstructures slrstainable and comp€tifive ad\Entage.

3 . What are the diller€nt stepsinvolvedin developing & D R
sitategy ? Dsd$s with suitable examples. 4, Writ€ briel notegon i (a) {b) (c)
t.

Klmaffnangalarn Birla Cornmittee Repori },Lara!,ana Murthy Corynjttee NareshChandraCommtttee

Discuss tbe isslres and challenges in Knowledg€ Management the presentday competiti!€endrorunent. in

Ms-e1@

P.T.O.

SECTION B 6, Readthe lollowing casecarelullyand answerthe questions that follow : ASIAN PATNTS0NDIA) UltrrED The siege is over, and the time has come tor the leader to sallg forth into greener pastur€9.Even as tbe paints industry is em€rglngtrom the sh;dow ol recesgion, ile Rs. 560 crore Asian Painis (lndia)Limited (APIL), is mixing ne!/l/shades emergewith winning colours. to SaysmanagingdirectorAtul Chokey : "With proper plannjng and a comptehensive approach to ilsues, \r€ pace with the grovrth ol the industry". intend to keep APIL is actually targeting a groMh tate that is highef than the 9 to 10 per cent that the industry has ln been averaging recendy. the year to March 1994, the company notched up a grosssales iumoverof Rs. 559 96 crore (net sales: Rs. 401 96 crore), a gto$dh o{ 10.8 per cenl over th€ breviousyear. Net proljt also to registered healtly growthof 31 5 perc€nt Rs. 25 61 a crore. The resultshave tidied up the company'sbalance sheet,which had begun to look a bit ragged. APIL's approach js multipronged: expansionof its product ra$ge and introduction of lalue added, niche products the industrial paintsareai Iine extensions ol in

Ms-e1@

existing products to target lower income market segments both in rulal and urban areas; expansions production oI capacityand continuousmodernisation keep pace with to growing demandiand diversification the into the unrelated but synergistic ar€a ol ceramics. AII these strategies are part of what ihe compang s top managementterms "harnessing our full potential" ,or the challengesthat lie ahead. They are also aimed at r€taining leadership in a recession-fr€e industry over the

APIL is the leader in the entir€ industry, comprising both organised as wetl as unorganised players, with a market share of aboul 19 per cenL. The company is confident of the lact that its share of indusiry sales is twice as much as that of its near€st competitor, Goodlass Nerolac.APIL also dwarfs the oihers in size, its net sales Nerolac,well over twice that nearb twice that of Coodlass of third-placedBerger Paints, and nearlg lour times that of fourth-placed Jenson and Nicholson(seeExhibit-I). Ii is only wary of the expandins unorganisedsector which seems to be eaiing up the share of firms in the given the multiplicity of organis€d secior. Nevertheless, shades it is capable o1, APIL reckons it can look forward fo a compound grov,th in its market share.

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Exhibit I How Th€!,rCompare (Figures Rs. croreJor 1993 - 94) in Company Asian Paints GoodlassNerolac Berger PajDls
Net sale l\er Net profit,/sales

pro,rr 25 62 805 3.24

pkl 636 3.91 1.85 1.72 233

401 96 20588 17495

Jenson& Nicholson 110.33 Ganrare Paints' ShalimarPaints" Bombay Paints"

r.97
257 160 0.03

106 70259 37 81

0.08

'18 monthsto September 1993 "12 monthsto March1993

But though the good iimes are back, the company is not content to sit back and relax. The last three years, during which the paints industry went through a ttough, saw APIL taking a beating {though it remained the market leader all through), with its paints division showing a negative grov./ih ol 3 5 per cent ln terms oI volume.

Ms-e1(t

Wiih the rupee having been progressively devalued years 1989-92, and with high rates of during the inllation also rarnpantover this period, excisedufies and othe/ l€viestoo a\ated upward pressure paint prices, on and thjs served to depress demand. An additional complicatjon, reinforcing this trend. was created by th€ ditteret\ce in the selling prices of paints made by the organisedand unorganlsed sectoys, The first signs of recovery came with ihe Unjon Budget o! 7993 which cut eKciseand custom duties, Exciseduties were reducedto 30 per cent and customs dufies were cut from 85 to 65 per cent- This provideda tespite to $e industw bg facilitating a rollihg back ol prices, and it beganto grow at about 2 per cent a Vear. In spite of intermittent soclal disturbanc€s 1993, ihe in industry graduallgrespohdedand so did fhe derDand for its prociucts. Simultaneously,the automobile iridustry, which is a major us€r industry for paints, also began to emergefrom the two-liearrecession, A gradualrevivalof the jbdustrybrought atonga new thrcat tor the seveDrDajor players lrom the organised segment. Uneven prices during the recessionyears had the unorganisedcoDpetitors grabbing at a sigbificant chunk of the marhet-

MS.e1@

P.T.0.

Budget concessions brought telief to the orsanised s€ctor, bul its constituents also found themselveg havillg to compete with an unorganised sector that had groLento become a significant thr€ai, €een as the Frospect of competiiion lrom imports began to wofiy ihe otganised

APIL'S largest new venture will be a div€rsification into ceramlcs, though lhe project is still at the plannlng stage. The decbion to enter a new field is fr.relledby the managem€nt's perception that the ceramics industry has tremelrdous potentiat ior groqnh. Even though the company has no expedence in the production and technologg aspecis oI ceramic tiles manufacture, it has opled for ceramics becaus€ the mafketing will involve utilisation ot its existing distribution nef'r0ork for paints. The rationale is that since painis and ceramics are both buildins haterials, APIL'S exisiing custom4r base (which can serve as a ready-Dade mark€tl will be largeted for its ceramics products. "With our extensive distribLtiion nen^rork and gtocking points, we can reach elen the remote matkeis. So marketing ceramicn is not likely to be a ptoblem," says Choksey. The plan is to penetrate ihe market as qujcklt as possible, and grab a substantial cbunk of indus'try sal€sThe compang wilt initialb siart wiih ceramic tiles, but

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ihese is no plan to resirict itself to any specific market segment, The project involves a Rs. 70 crorc initial jnveslment in th€ first phase,which involvesinstallation a capacity of ot 23,000 tonnes per year. Thjs wjll b€ tollowed ir a couple oI y€ars by the second phase, which will see an jnoease \D the capaciiy to 50,000 tonnesThe new project is scheduled lor completion by the end of 1996, and it will. in aU probability,be located in Gujarat. This is because any location in thai state will have the advantage of proximity to the raw material supplyjng areas in Guja6t technology, which will and Rajasthan. APIL is The currently negotiating wiih foreign collaborators for the have to be imported. technology Lvrll also hav? to be adapted Lo Indian

While putting a few eggs in a new basket to ensure that fluctuating fortunes in the paint industry do not have the elfect of hurting the company's bottomline yet again, APIL is not ignoring its bread-and-butter busln€ss - that of paints. Over the past yeai, a variety of new brands bave been added to its produci range. The company has made an attempt to extend its marketing and distribution beyond the country's major towns, to which its aciivities were hitherto con{ined.

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P.T.O.

'Utsav', an economically priced brand, was launch€d last gear and is targetedat small households with limited budgets.This prcject concentmtedmainly on consumers in Tamil Nadu, Maharashfa and Gujaral, thus widening the accessibility lts productsto all consumerlevels. of General Manager Mr. P.M. Mr-rrthysays that "the degreeol penetrationconcentrates how economicalit on is to do buslness."He saysthat though lhis new product has performedfar,ourably, has not contributedmuch to lt to the prolits of the year. "Of courge, promises be a it very good and attractives€gm€ntfor future business,"he adds, when asked about its futur€ groMh and profit potential. Other new productsalso includepowder paints to be us€d for both auto and non-auto appliances.Th€re are othel products fike wood linishings (Touch-wood)that iakes care of refinishings turnilure. on To sirengthen its industrial prcduct base, APIL has with PPG lndustries,an American{i!m, and collaborated thus enjoys the use of cathodeelecbo deposiiion primer (CED).The companvhas coocLuded tie-up with Nippon a Palnts for original equipment paint products and with Sigma Coatings of Holland for conosion coatings-The technology that has been broughthome as a resultoi

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10

these vebtures is modi{ied at the company's plant at Bhandup,so as io make it suitabletor the Indian climate. With a tretter product tange on olfer now, APIL js of ,ust wai$ng for a grcater awareness industrlal paint appiications to develop iD the Indian markei; tlre presumptionis thai th? d€mandfor this patticularproduct js still htent. For its decorativepairls, the company has gone in for ditlerentialprlcing to €ncourage segDenis all ot the market. fhe company intenton a conlinuous modemisation rs and upgradationof lts technologyand lts assets, as to so keep in tune wi{h the changlng requirementsof the mar*€tplace.ln addition, ii is also woiking on plans to increaseproductioncapacityowr the he)d tew years. Besidesihe activity on ths domesticftont, APIL is lncreasingits oveEeaspresenceas well. One o{ the ,ert lndian companies with overseas subsidiaries in the South-Pacific region, APIL is now settFg up a new subsidiaryin Ausfualia.lts existing ventures abload too have reported healthy resu)is : Asian Patnts (Sor.rth Pacific)has registered 12 per cent grov/th, Aslan Paints a {Tonga) grew at a rat€ of tive per cent, Asian Paints (Solomon Islands)at over 10 per ceni and Asian Paitts at {Nepal) over 18 per c€ht.

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11

P.T.O.

With a new s\rbsidiaiv Vanuatu(New Hebddes) at and a joint venhrre unit in Townsville(Auskalial, APIL has established at least a fooihold in the intematonal markeisWhen asked about the ihreats facing the company, Choksey chucldeg and says h€ pr€{ers to calt them challenges. "We need to meel the dema^ds of this g{oqing organisation ol our workforce,our i€chnology and ouf ass€ts. majorpoint to be tackled to be able A is to meet the qrowing d4mand for our product and to create a greatef awareness orrf newer productg," he for says_ Over the first lew months of the qilreni financial year! salesvolume has been growing at a rai€ of 14 per cent. well abovelhe industryaverage. With the recession jt and goiernment leviesno longer inflating ti{mly behind its pices, lhe paint industryseemsto be on an uptr€nd. Brrt lhe APIL management its wolk cui out for it i it has will not mer€19 gear up to m€et the burgeoDing have to demand,but will also hav€ to worl hard at retainingand then increasingits mark€t shar€. Quesliorg : ia) Whatcorporategoalhasthe comparyadoptedfor the next few years and wiih what strategiesdoes the companypropos€to realisethe abo!€ goal ? 12

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Whatthreatsis th€ companyfacjngor/and rnight{ace in futlre ? What has it done anvor what could it itself lrom thteat(s) ? further do to safeguard
(c,

Evaluat€the nelv strategiesof Asian Painh (lndia) parlicdarly proposed forayinlo ceramics. irs Limited. mat actior dans has the company propos€d to strengthen productbase? its all ClassiJy the strategicplans or propos€dskat€gic actionsof the corhpanytor achietrnggro[th against Joint Vettlires, suitable headings, e.g., Oiversilication,

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I,O00

MANAGEMENT PROGRAMME Term-End Examination December. 2OO5 MS-92€) : MANAGEMENT PUBLTC OF ENTERPRISES
Time : 3 hours Maximum Marks : 100

There orc two SectionsA and B. Section A hos ttto sets. get I is meont Jor the students who hole registeredfor MS92 pnor to July, 2004 i.e. upto Januory, 2004. Set 1l is meant Jor the students who houe resisteredJor MS 92 lrom July, 2004 onwards. Attempt dny three questionsIrch SectionA. S".rion B is computsory Jat au All questions cafty equal marks.

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SECTION A Set I {Pre-Revised) l. Whai are the foundations on which Government PE relationshipsare based ? Discussthe differeni ways in whrch Covemment inter".l. wlh Pts "The governing boards of PFJ in India occupy a very significant position and enjoy far wider responsibilities than ihe boardsof commercial companies."Discus,s.

2.

3.

Explain the concept ol employee participationand how dop.'i nork rhrough ownership lnd'd. in causes which can be attributed to d€clineof the PEs. Illustrate with examples. organizational Explain ihe concept of a holding company and discussthe in evolutionof holdingcompani€s PEs.

4 . Discuss the

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Set II (R€vi3ed) l. Djscuss ihe impact of economic refoims on PEs since 1991. 'Legislaiive contrcl beco.nesone ol the most important and elleciive methods of enforcing accountabiiig. especiallgin the Indian confext.' Elaborateand critically analyzethe statement.

2.

3. Briefly discuss the pedormance evaluation of the Siat€
Electricv Boards.

4.

Discuss ih€ variolls methods of disinveslment and ihe qrrdregrc rs5\res Involved di,invernenr proce"s. i"l Wrjte short notes on i {a) {b) (c) (d) Restructuring Leases Joint-ventures Corporate Covemance in PEs

5.

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o

P-T.O

SECTION B
Read ttl€ following passages answerthe queshons and that follow i BharaX Bhari Udyog Mgam Ltd, li is holding company comprisjng seven subsidiaries in the eastem reglon includlng wel) known names like Burn Standard Co. Ltd., Jessop& Co. Ltd.. and Braithwate& Co. Lid. Its 1990 - 91 salesturnov€r was Rs. 410 cror€s wiih a loss {or the year of Rs. 10 90 nores Th€ company'sobjectjve given in its 1991 - 92 as 'is io MOU inter oliq achi€ve a high degree of customer satisfaction through timely supply of quali\' ptodrcts and s€rvjces". This was to be m€asuredwith refercnce ta delivery/erc.iion commjtnlents of varjous products and services on a five-point scale with a weight of 10%. Do you think that the company's objectire is appropriatein the pre$entcont€xt ? Commeni.

(b) Andreu Yulc & Co. Ltd.
This old Brliish ManagingAgencyhouseb€camea govemm€nt company in 1979. lt is a multi-unit, muliiproduci conglomerate with five subsidlariesand a gross turnov€ro{ Rs. 325 qores in 1990 - 91.

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The company's MOU attached 57o weight to customer satisfactionm€asured with telerence lo liquidated damages and fr€e rectification and replacementcolt as a perceniageof turnover. The companys aim.was to reduce it from .40%oin to .36Voin 1991-92. The company wanted its marketing efforis to be judg€d with relerenceto (i) total orders booked during the y€ar, (ii) selling and marketing cost, and (iii) number ol productslaunched,with an overallweight of 8%. Comment on the marketingefforis of the company keepingIn mrndrhe custom"rsperspective. 1990-91

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1,000

MANAGEMENT PROGRAITIITE Term-End Examination December.2OO5
MS.93@: MANAGEMENT OF NEW AND

SMALL ENTERPRISES
Time : 3 hours Moximufi Morks:100 {Weishtase700/0)
Nore, This pqper consisis oJ two Sections A ond B. Alemp! anv thtce questiohs J,oh Sedbn A. SectionB is compulsory- AII q\.testions coffy equdl

SECNON A 1. What is the scope and types of financirg suppotl provided Lmder ih€ current policy for the SSI sector ? Explain in d€taii,

2, '

ld

What are the criteria that entrepreneursuse in e',bluating alternative produclion processes and t equipm?nt sple(rion

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P.T.O.

(b)

A group o{ rutal agriculturistr is planning to set up a {ruit preservation unii io make jams and jelli€s out of the locally grown produce. What is the process 9ou would advie them to follow to settle on ihei! tocation decision?

What are the components of project cost that must be refl€cted in a tusiness plan ? Taking an er"ample ol your chojce,discuss cogt components. the 4. (a) E\plain the impoftant iesues in product desisn selection {or a small entrepreneur Briefly describethe process of lroiotype development ior and iis implications productmanagement. are ihe alternative choices regaiding management control that can be consider€d by a familv enlerprl5e ? and continuity be handled in family enteryris€ ? L\plain by taking exarnples.

(b)

5.

(a) What

{b) How shodd issues ol strccession platning

Ms-e3G)

SECTION B , 6. Read the case given below and answer the questions given at the end of th€ case : Tasty Foods Limited Tasty Foods Ltd. is a small enterprise €ngaged in the manufacture of dilf€rent food products. Its R and D activities have recently col4e out with a new soyabean snack. The main strength of this product is the highly nutritious value of protein-rich soyabeans. While the R and D DePartm€nt is happy to have developed a highly nutritious snack especially useful fot children, the company managementwants to be cedain that the new snack will hav€ a good market in the country. In order to ensure that the new product is successfully launched in the market, the Managing Direcior (MD) is thinking of hirjng the professional seruices of a Marketing Research Agency (MRA) ln consullalionwith lhe MRA, *re MD decid€d to convene a meeting of Marketing Manager (MM), Production Manager iPM) and the MRA, to be represented bv its chief executive.Th€ me€ting was held in MD's chamber and il tumed oui Lo be a prolongedsession

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A few excerpts from th€ discussions held in thai meeting afe given below : MD , I feel certain that our new soyabean snack is going to be very 5uccessful the market. The in project is unique in the sense that no soyabean based snack is pr€sently available in the mark€t. In view of this, test marketing of this product seems to me rather Lrnnecessary,We can do without it. Moreover, it will save a good deal oI time as the new product can be introducedin the market almost immediately. PM : I fully support the vi€ws expressed by our MD. Let me emphasise that our R and D Department has taken considerable pains in developing this new product. It has come through a long succession of concept and product tests. Test marketing wodd obviously delay the process of marketingLheproduct. Since our new product is going to be our major achievement, it is desirable to have detailed information about it. It will b€ to our ad',antage if we know our consumer target and their major characlenstics. MRA , I know some cases wherc a new product was 'strong' product regarded as a by the R and D and the Production Department. But when it was commercially launch€d,it tutned out to be

.

MM :

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a failure. The concerned companies learnt a bitt€r lesson. I am of the opinion that the product in questionmust be test markeied to avoid any such disappointment at a later srag€.

MD:

Suppose we decide io go in {or test matketing, what are we going to get from such an exercise ? w€ musi be clear as to what test marketingis expectedto do for us. The MD has raised a basi. que-stion. The company must b€ clear about the objectives o{ test markeilng. Are you looking at test marketing to decide whether ihe new product should be launched naiionally or not ? Alternaiively, are you looking at it as a rehearsal before an extensive laurch ? This means lhat 9ou are intetested in knowing wbat is likely to go this can be wrong and how prevenledAmproved.

MRA,

MM.

I think both these objectivesmentioned by MRA are yele@nt in our case, ln fact, the restlts of test marketing r,.'ilt indicate whether we sbould launch ihe product nationally or drcp it altog€ther. I think it is advisable to decide the nature of information to be collected so that iest marketingcan be reallyhelptul to us.

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MD r

l-et us then have test marketing. But before it is undertaken, we must specify our data requirement. I suggestthat MRA and MM should this fully. meet and discuss i

Qdes,ions (a)

What advice would you give to the management in terms of the information to be elicit€d through iest rtarketing ? What other mechanism ot makrng a markel assessmentcan be used L'y th€ enterpdse in cas€ the test marketing is not done ? Suggest.

(b)

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1,000

MANAGEMEM PROGBAMME Term-End Examination December. 20O5 MS-94 @ : TECHNOLOGY MANAGEMENT
Time : 3 hours Mdximum Morks: 100 7@/o) lUVetghtoge Note t Attempt atl questiotls.All questions carry equal

1. (a)

"R & D provides a window to de,le:lopment at:f enables tbe Dation or a fi'tu to ev)vate exte:r,al developments and react morc quicldy to th€m." l ustrate by indicating alternative objectives in th€ area oI en€rgy and matedals technology. that a technology policy is sr.lpposedto commit to the government ? OR "A prerequisite for effective utilizauon of R & D tesources is the development of technalogy infrastnrciure within the country." Giv€ some . examples of technology infrasiructure ihat are necessary for developing technology capabiltties.

(b) Wlrat are some of the commitments and assurances

{a)

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P.T.O.

(b) Discuss Freeman's the caiegorisalion technological of changewjih examples. 2, Explain the Delphi t€chnique.State its advaniagesand disadvantages. OR what are the objectives technologysearchstrat€gy? ol Briefly explain varioug categoriesof palments lor the technology.
3. Define technology absorption. What conslralnts m ' tech$olosy absorption have teen reported as far as lndian experience is concern€d ?

OR
Describe the various siages in Technology Assessmentand brie{ly explain each stage.

4.

"An enierprise should b€ viewed as a Human Perfolmance System." What wor-rldbe the major components of such hlman performance sgstem iq the cont€xt of t€.hnologV management ? Expiain. OR What is Technology lnformation ? Discuss the role of Technology In{ormatio$ sygtem. Explain the contents o{ Technology Inlorrnation with suitable examples.

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5- Explainany four of the following, (a) Impodant inputs Jor enterprise ievel technology srraregy (bl (c) (d) General guidelineslo be lollowed lor iransler and absorptionol importedtechnologEs lndian indusiryand industrialresearch S & T manpowerin India

in {e) VentureCapital I Role and its groqft,h India (0 planning Technology and Socio-economic

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1,000

MANAGEMENT PROGBAMME Term-End Examinati,on December, 2005

MS-95O : RESEARCH METHODOLOGY FOR MANAGEMENT DECISIONS
Time: 3 hours MoximumMorks: 700 Meightose 70o/o)

tj)

This poper contoins iroo sections, Section A and B. Section A cornprising 60 morks contoins Jioe questions. Attempt on| folrr questionslrom this Secrion- Secfion B is cohpursory 40 marks. and carries

(il

Stotisticol tobles will be pro\ided, on demond.

(rti) Use oJ personol non-programmoblecalculators Is

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P.T.O.

SECTTON A I, A local supermarket has €xperienced a decline in unit sal€s and littl€ change in rupee value sales. Proliis have almosi vanished. The chiet a€cutive in s€arching for ways to revitalize the operation, was advised to increase the number of hours tie market is open for business. He comes to you for advice 'n structuring a fesearch problem that will provid€ relevant informaiion for decision making, Define fle researchproblem taking care lo : (a) (b) (c) state the relevant question. enumerate the alternative answers. clearly define ttr€ units ol analysis and charactedstics of interest,

2. "A sample may be large yet wofhless because it is noi
randomi or it may be random but unreliable because it i5 smdl." Comment upon the above statement and explain th€ importance ol sampling in daily life.

t5

3- What do you understand by factor analysis ? Mention th€
purpose and uses of lactor analysis.

4 . What are the seven elements of communication, which are
relevant lor making a presentation ? Dscuss.

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5.

Write short notes on any ahlee o{ the following : (a) (b) (c) (d) {€) Objectivecharacteristicsandlnlenedcharaciedstica &liijng of primary data Operating and Strategic decisions Ordinal Scale Audio-visual aids in presentation of reports

15

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P.T.O.

SECTION B
6. Describe the semantic dillercntial scale. Use the semantic differential t€chnique to dev€lop the profile of ihree television manufacturing companies in India. A random sample of 30 stud€nts obtained the lollowing marks in a class test : Tesl the hypothesis that their median score is more

7.

20

than50. 58 33 38 89 55 ?2 30 94 25 10 36 25 32 42 65 74
26 15 72 66 85 46 46 29 44 64 54 80 39 36

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1,000

MANAGEMENT PROGRAMME Term-End Examination

I I
I
I I
I

December.2O05 MS-96@ : TOTALOUAI-ITYMANAGEMENT
Time: 3 hours
'
'

: MoximumMorks 7OO (Weishtose 70/ol

t
I

I I

(i) (ii)

There ore hoo Secfions : Section A ond Section B Attempt ony three questions from Section A, uhich caffy 20 marks each. Section B is compulsory ond cafties 40 marks

i
1.

(iii)

SECTION A
(a) wheihet in the "lnnumerablebusin€ss organizations, East or the West, have realized ihe role and benefits of quality." Discuss some of the important factors that have caused this realization (b) According to Crosby, what are the basic tenets oI his statement that quality is an unending cycle ? Discuss role and functionsoI top managemeniin the quality improvement.

2. . (a)

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P.T,O.

{b)

How are quality and productivity r€lated io each other ? Does technologyhave any role in these ?

3.

(a) Discuss the role of TQM coordinatoG. Who are
qualitg champions and wlat is theil imporiance ?

(b) Highlighting the

special characteristics that distinguish leadership in a TQM context, discussthe six actionsof leaders.

4.

(a) What factors motivate a businessorganization to
adopt EnvironmentalManagementSystem (EMS) ? Discuss. {b) What are ihe profession;1,/technical abilities that a quality auditor is suplrosed to possess?

5 . Explainany tour of the following,
(a) Criteria for DemingPrizelAward (b) ElementsoI SafetyProgramme (c) {d) StatisticalQualityControl Characteristics QualityCircles ol

{€) Applicationsof RobustDesign {0 ChamcteristicsolReengine€ring

M S9 6 @

SECTION B 6. Read the following case cayefullyand answer th€ qu€stions given at the €nd. Oberol Group One hundred per cent hospita'ity.That's the simpie quality target set by the Rs. 520-qorc Oberoi Cralp [or each of its 19 hotels, 11 of whjch ar€ managedby the flagsbip Bs- 220-crore East India Hotels. For, as a sirdy conductedby the group's top management and presented periodically to executives, housemaids, cashiers, stewards, doormen, chefs, and laundry-boys ihe hotels revenls, in the cost of even 99.99 per cent quality is ioo high. For 99 per cent qiality means t . Tbat every three days, one guest checks olrt without paying his bills. That every day, 20 orders ol {ried eggs have human hair in lhemThat every day, 15 tables in the restaurants have soiledlinen. Tbat every day, 250 ptates are broken. That every day, the drinks of 40 guestsget mrxed up. That every day, 20 guests do noi get back the right lauodry.

r

r

r r

r

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P.T.O.

Shocked by th€se numbers, the hotel chain is iuriously adopting the fomal quality initiative )aunched in 1993 by group managing director Priihvi Raj Singh "Biki" Oberoi, 65, son of the chain's founder, Mohan Singh Oberoi. Actually, Oberoi Jr. is m€rely institutionalising the quali9 standads set by his lather, who personally auihored the bulky manuals that detail every step the hotel staff follow, ranging from how guests shodd be received to how the rose should be placed on a btealdast 1ray. In th€ past, this cr€ated exact:ng guidelinesfor ihe hot?l chain - such as the one which ltipulates that every pillow in every hotel must be sluffed with exactly 1.8 kg of impofed down. Or that all upholstery and fumishings must be Scotchgarded. Or thai th€ soap to be placed in balhrooms must be selecied alier dgorous examinatiotl, involving the testing ol 15 {ormulations in laboratories and the conducl o( {oqgs gyo\jp inler,'iews among

So, quality has never been an alien concept in the Oberoi Group. What Oberol is now doing, though, is to standardise quality, with th€ aid ol professional consulting expertise, in ihe Jorm of systems raiher than individual initiative, "l won't deny that the quality initiative is a /esult of increasing competiiion," he confesses. "Bul it is

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also a fact that until recently,we did not have accessto the expertiseof .professional agencies.

HOW OBEROI IDENTIFIES CUSTOMER NEEDS IDENTIFY THE OI,"TPUT
ls output staied in noun/verb format ?

ls it a tangible output ?

Is there a customer who expects this output ?

Is this? new output ? Or do you produce it on an on-going basis?

What ov€tallresultis this ouiput workingtowards?

Is there a need for problem solving at fhis stage ?

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P,T.O

IDENNFYTHE CUSTOMER
Haveyou namedthe prirnarycustomer ?

Is this the person {or functional group)

who wo/ks on the outputnext ?

Doesth€ customer knowhe,/she the is customer thjs output ? for

Are there others who make use of this ollipui ?

Who is the end-lrser?

Is there a needfor probl€m,solving at this stage2

MS 6o e

ls there a need for problem'soNing at this stage?

resultin an output Will thesespecifications teeds ? thai meetscustorDet

Are sp€cilications achievable with the existing work pioc€ss ?

customeis needsinto Translate neasurablespecifications

do What requirements VouexPect your customerc have ? to

mustyou make Wbat changes ? to.the requtrements

Which requremenfsdemandanalysis oI yow work process?

anything Do you n€edto discuss with the cusiomer?

ls th€r€ a need for ptoblem-solving at this siage ?

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Thai's why Oberoi has commissioned consultancy tle company! McKinsey and Co., to examne ancl recommend chang€s in all its operatior.E- including quality standards. Scanningevery practice in the hoiel from the most guest-efficieni way of folding the drawsheet in a bed to the attiiudinalchang€srequiredin employ€es - McKinseyis implementinga charter for change over a period. six month Also helping the group in iis quality quest is D€lhi-tlased consultancy group, the Centre for GroMh Alienatives (CGA), which has created a deiailed flow-chad of the chain's transactionswith customers. Points out David Wilson, 37, general manager, Hyatt Regency, Delhi : "The Oberoi chain has al,;vayshad a reputaiion for quality. Their biggest strength is a consistentapproach to it." Simultaneously, Oberoi has also launcheda training programme to coach workers .in the use of ihe new hardware, rotating the programm€ through different hotels in the chain. Because of the levels of quality thai the chain has already achieved through its founder's insistenc€ on standards, the Oberoi Group's quality practices today focus on providing the extra, unexpected touch in order to get a competitive edge, rather than the routine accommodation of demands that every guesl makes.

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For instance, when a mistak€ is committed and a guest complains, the hotel's employeesmust not only apologise and rectify the enor, but also report to the guest the precautionary steps being taken ro prevent rts recurrenc€. This also makesit mandatoryfor the problem to be traced to.lts root cause. Just what, then, are the steps that lie at the heart ol the Oberoi quality

r Set benchmark lor ev€ry action that relates to serving r Break down all activiiies into

small, definable

r Measure each of them in mathematicai rerms so that action standardscan be h-ackedand monitored to ascertain consi(ency of quality. r Set up the infrastructure and systemsto ensure that each transaction is accomplished without error. . Use internal and €xternal measurementsto monfor their €fficacy. Take a look at how this algorithm b'dnslated itself into practice. Using guest satisfactionindic€s - which are used for every functionr ranging from food and beverages dnd housekeepingLo guest reldrionsand €ngineeringwhich are measuresof guest satisfaction levels and the tim€ taken to accomplisha function, the Oberoi chain

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pegged iie

acceptable lime-limit for a check-in at six

minutes at peak hour. ln other words, the time that must elapse bet"veen a guest stepping into the lobby of the hotel, being met bv the butler, having his check-in tormaliii€s completed, being escorted to his rcom, having his L,aggagedehvered, and the telephone armed should not exceed six minutes if a guest is to fe€l good. ensure this, the process was analysed to determine peak check-in hours, which, in turn, were used to determine the staft strength required at diiferent times To of the day to meei the six-minuie deadline And to support the system with infraslructure, the chajn has equipped iis senior executiv€s and butlers with pagers and is in the proc€ss oi making them al'tilable to all staff - to ensure smooth information flows. Using the same svstem, th€ Oberoi chain address€s customer complaints and the mislakes thar provoked them n6t to assign blame, but to probe tl€ flaws in transactions and rectify them. So, when a guest complarned about not b€ing served his favourite dinner' y\aetg l/jeo Wan Kai - chicken green curry - the problem was tracked down, through an analysis of every st€p. to a uong purchasedeci.ion

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10

Apparently, tbe coconut mjlk used rn this dis}I is purchased Irom the Lakshadweep Islanos ro ensurc consistency in quality. But becaus€ delays in dejivery had nol been ac(ounled for. supplies of coconut milk p€reniaily dried up. No sooner was the systern defect detected than the lead iimes oI acquiring supplies was changed from s€ven to 15 days - even at the risk of over-stocking. One crucial concept that drives this mapped-out process is that of the intemal customer_ Every step is delin€d as a transactionbetwee n an internal customer and an inlemdl supDlier. >etlrng up d chain which, ultimat€iy, cuiminates in the exiernal customer_ Or, the guest, ExplainsSanjiv Mathotra,33, generalmanagerj The Oberoi, Delhi | "lntemal customerseNice has crystallised and become targible dudng the last tito years.,,Tbis enablesevery employeeto focus o; his or her immediate customer, rather than the end,user alone, so that the finer details are not missedin the attempt to get the big picture right. Adds RajeshKapoor, 39, managingdirector, CGA : "The focus js on meeting customer needs through an

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internal backward int€gration process so thai each link in the chain is strenglhen€d and existing conflicts are resolved." Quality-retated problems are solved by re-examining each transaction and intensitying the clLstomer-client re]ationsiip in each case to ensure that the step receivesextra attention.

THE QUAIJTY TRIANGLE IMPROVEMENT PROCESS

LEADERSHIP

TEAMWORK

This is possible because the chain makes it a point to provide the inflastructure lor qualiiy, ensuring that equipmentcannot be blamed For instance,if the distaice be\.veen ihe lip of ihe tandoor and the lnside ls not the prescribed 12 inches, the Ob€roi chain pfefers to write

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off ihe cost of making ihe tandoor -

Rs. 4,000 -

than

risk a badly-cooked chicken drumstick. Nevertheless, il somethjtg goes wrong, it can on19tte becausene sysrem isn t delivering.

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With these crucidl componentsof the qualiiy process

in place, the Oberoi chain also empowers its employees to inno,"ate as much as necessary in order to delight customers. A tyavel clerk had the power rewarded for his initiative and was

to charter a pri!?te plane lor

an American gueit to fly from Delhi io AgIa despite knowing that his cornpany stood to lose Rs. 20,000 in case the guest decidedto call off his trip. Since such empowerment makes grounding

mandatotg, employees are educated constantlv using a training cycle of technical sl.jlls. To ensure conformiiy and cam,, out measurements ol quality practices, intemal , audits are perJormed wjtb unbending rigour to ensure that the grcup s complex manualsand checklists are followed. Then. they are validatedby extemal rneasurements of results by gauging customer satisfaction through customer comment cards, markgt research, and mystery

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shoppers.Says Oberoi : "Our quest for perfection is not yet over." And it won't be so as iong as the 0 01 per cent gap b€iwe€n the Oberoi Group's quality targetsand ils servicesremains,

THE SERVICEIMPROVEMENT MODEL
I\leasuremenl & Feedback Loops

ManpowDr Measuremenls

Questions ; (a) Describe the principal methods of the Quality programme at Oberoi. What 'Best Practices' at Oberoi can you discern from the case ? (c) What do internol customers and internal

(b)

suppliers n'lean and who are such people at the Oberoi ?

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(d)

In the context ol a service industry like hoteliering, examine/€xplain th€ lollowing siatements and give at least ffuee examples/rcasoDs in support of each (i) "ln today's competitivescenario,mamrenance of quality is not enough, you hav€ to improve quality. " "Everybody in the company ha! to be quality " conscious, "lf you want to be ahead of your competilors, your qualityhas to be monitoredall the time."

(ii)

(iii)

(iv) "The only way io achieve quality is throush training the people."

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MANAGEMENT PROGBAMME Term-End Examination December,2OO5 MS-97@ : IIVTERNATIONAL BUSINESS
Time : 3 hourc Maximum Morks: 100 Nvelshtose70Yo) Note : (i) (ii) are two sections: SectionA ond SectionB. ,There Attempt ahy three questions Jrom SectionA which coirg 20 rr,orkseoch.

(iii) Section B is computsory and conies 40 morks
SECTION A l. (a) Briefly discuss the nature, scope and role o{

International Business.

{b) Explain t€ontief's theory. Why is it also known as "Lpontief's Paradox"?

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Explain the pattern of evolution of MNES in terms ol : (i) Tgpesi (iiJ Structurei (iii) Degree of divetsificationt and (iv) Characterisiics. la) What co d be ihe ditferent approaches 10 conirol in MNES ? What could be some of the negaiive ejfects i{ communication network within a corporation is tightly drawn Lrp ? (b) the Discuss meritsand demeritsoI multipleindicators of performanceover single jndicator as a basis lor performanc€evaluation.

4-

(a)

Discuss how socio-economic and cultural variables influence managementthinking and practices in a counlry In rhe context ol MNCS. Whai considerations, general, in wouldguidean MNC in ils decision to locate produciion facilities ? Why has ofj-shore manufacturing gained considerableground in receni yeals ?

(b)

5 . E\plain any ,ftree of the following I
(a) (b) (c) (d) \e) Strategic ailiances Transfer pricing in international opeBtions Factors inJluencing Joreign investment decisions Flexible Manufacturing Systems Arb;tration of disputes

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SECTION B

6 . What factors,you think, havecontribuied me emergenc€ to
ot sizeableBPO service industry in tndia ? What challenges do you thjnk the jhdustry could lace in futr/e ? Read the following caselet and present a diagnosis o{ the problem.Also comm€nton the statement ,,Transplantation. : of management policiea and practic€s oI one colrmry nto the socio economic milieu of another country may be fraught with dangefs. " HMSI They were so calm, so relaxed, so unhurried. They werc at last doing somethtng for which their |raining had equipped them. They were perfect examples of the adage that practicemakes perfect.They were beaiing the young men on the ground with their long stick. They were drawing bloodi and iI some unlortunate victim dared raise his head, he was rapidly disabled. They were the ilfuslious Haryana police. 'fhe venue was Gurglaon, the date 28 July, th€ occasion was a public demonstration of the workers who were trying to disrupt ptoduction in Honda Moiors and ScootersIndia (HMSI).

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The Haryana police were not the only ones who li\,€d up to their stereotyp€. HMSI was the first. There are many stories of the laik of love betu/€en the Japanese and trade unionjsts. Many joint ventures that wer€ staded wilh Japanese compani€sin the 1980s failed,Some were tal<en over by their Japanes€ partners who inheited their labour troubles. The Japanese became nototious lor messing up labour relations- Admitiedly, workers becom€ restless when {actorks fail and when employ€rs cannot meet their expectations. Failing factones are not the easiest to manage. Whether for bett€r or lor worse, however, the Japanese acquired a reputation lor lack of flexibilitvand imagination. But lhe slrange lhing is thal HMSI is not d taittng and immensely profitable. factory. It is hugely successfr.rl Its scooterc are obscenelg populari HMSI cannot meet demand for ihem. Customers prize their scootets And thai is whv it was targeted by professional trade unionists They saw a ripe f)lit r€ady io be pluched, a fat goat ready {or sacrifice.So they regi\tereda trade union tasl December, and ask€d for recognition. HMSI relused to recognige them. That is how trouble stafted.

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This is just the beginning. Trade unionism is part of the official r€ligion further east ln Calcutta, trade unions claim not only the yighi to stop production when they feel like; they claim the right to stop the cit9. A Calcuttan ne\€r knorvs when his city will be btought to a halt by a screaming column ol trade unionists Companies have mo\r€d out of Calcutta in hordes because th€it directors do not like riotous trad€ unionists shouting jusi outside board rooms. There is a culture o{ noisy tgitation that the r€st of India could do without. Most ol all Gurgaon. For it is the only place outside information the south where ihe new industries technologg and business process outsourcing - have taken rcot. Th€y are mosi at home is Bangalore, Madras. Bombay and Poona; somehow they Iind north of the Vindhyas inhospitable. The only exception was Gurgaon, whose new industry exports are close to Rs 200 billion a gear' These are industries that wod< round the clock; thev cannot countenance a single day's closure Southem cities have adapted ihemselves to their demand ior reliabiliiy; Gurgaon is the only norihem city tllat could match them.

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It could do so because, like the south, Gurgaon was fr€e of trade unjonism of bandhs, gh€raos, demonstrations.shouting and intimidaiion. lf it is now infected,it will in th€ long run lose out to ihe south * as Calcuttadid lor two decades despiteoffering the most attractiveinceniivesto the IT industry.But b€fore it does, it will do consjderable harm ro the great lTiriven boom the country is witnessing.For the Japaneseamoassador was righi the Japanesewill ask, is India safe trom crippling agitations,or will they be beter off in China ? And they will not be the only ones to ash. Alt forcign investorswill ask the same questions. And rhev will nol b€ pacitied by ihe loreisn ministry's boast that India's democratic instlutions ancl Iegal systemwill do their work. Th€y have seen these at work in the opposition walk-out of parliament and ihe scuflle of ihe police and Veer Mati, whose brother has disappeared. Great theatrei but are these the sights of a country ready for a leap forward, a country welcoming foreign investment ? The Left padies s€e a gr€at chance in the Central goverqmenl5 dependence them - an opponunity to on spread their wings acrossthe country. The instrumeni of

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their aggression is precisely the centrally organised, externally financed, confrontative trade unionism lhai pervades West Bengal and has now come to Gurgaon. It may seruethe Lett's inierest,bui it is not in the interest ol the country, which is in the middle of the first suslainedboom sirce the one that the reforms unleashed in ih€ early 1990s. We have often wonderedwhat would stop this wonderfulboomi now we knolv th€ answer.The I-eft cor.rld stop the boom, helped by a pusillanimous government. Here is a problem that the Pnme Minister needs to taclde quickly with all the poliiical skills at his

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