ASSIGNMENT

Q.1.Explain the different activity levels of

Management.
Management does not refer to a single individual but it refers to a
group of persons. In companies large number of persons are
employed and placed at different places to perform different
managerial activities. To carry on these activities these employees
are given necessary authority and responsibility. This grant of
authority results in creation of chain of authority. This chain is
divided into three levels which result in creation of three levels of
management.

1. Top level management:

Top level management is concerned with the broad policy
framework and is related to develop attitude. It consists of board
of directors, chairman, managing directors, strategists and alike.
They are responsible for the welfare, and survival of the
organization. In this level, the corporate goals, missions and
objectives are determined and a detailed action plan and
strategies for the same are formulated.
Functions of top level management:
 To formulate and determine the objectives and define the
goals of the business.
 To establish policies and prepare plans to attain goals.
 To set up an organizational structure to conduct the
operations as per the plans.
 To provide overall direction in the organization.
 To assemble the resources necessary for the attainment of
the policy and execution of the plan.
 To control effectively the business operations.
 To judge and evaluate the results.

2. Middle level management:

The middle level consists of departments, divisions and sections,
in which the respective chiefs, heads or managers are concerned
with the tasks of implementing the policies and plans prepared by
the top level management. They are the real subordinates to top
managers. Being in the middle, the managers have to perform as a
link between top and lower level management.
Functions of middle level management:
 To implement the task set by top management.
 To interpret the policies framed by the top management.
 To run the organization effectively and efficiently.
 To cooperate for the smooth functioning of the organization.
 To coordinate between different departments.
 To recruit, select and train the employees for better
functioning of the departments.
 To issue the instructions to the lower level management.
 To motivate the workers and staffs for higher productivity.
 To lead the department and build-up and organizational
spirit.
  To report and make suitable recommendations to the top
level management for the better execution of the plans and
policies.

3. Lower level management:

Lower level management is also known as supervisory level of
management in which the supervisors and foremen and others
like sales officers, accounts officers etc. take responsibilities of the
implementation and control of the operational plans developed by
the middle level managers. It is clear that the actual operations
are performed in this level of management. This level is concerned
with actual implementation and control of operational plans.

Functions of lower level management:

 To issue the orders and instruction to the workers.
 To supervise and control the performance.
 To plan the activities of the sections.
 To direct and guide the workers about the work procedures.
 To provide on the job training to the workers.
 To arrange necessary tools, equipment, materials for the
workers and look after their proper maintenance.
 To solve the problems of workers.
 To develop sense of co-operation and high group spirit among
the workers.
 To advise the middle level about the work environment.
 To inform the unsolved problems of the workers to the middle
level management.

Q.2.Explain the functions of Human Resource

Management covering the major areas like
 Personnel Administration, Employee Welfare and
Functional areas.
Human resource management is the strategic and coherent
approach to the management of an organization's most valued
assets - the people working there who individually and collectively
contribute to the achievement of the objectives of the business.
Human Resource Management is the organizational function that
deals with issues related to people such as compensation, hiring,
performance management, organization development, safety,
wellness, benefits, employee motivation, communication,
administration, and training.

Human Resource Management Functions can be divided into the

following three main categories:
A. Personnel Administration
B. Employee welfare
C. Functional Areas
PERSONNEL ADMINISTRATION:
Personnel administration may be defined as the
effective utilization of human resources to
achieve organizational objectives.

The activities of Human Resource Managers in this regard are as

follows:

 Recruitment: It is the process of seeking and attracting a

qualified pool of job applicants to fill job vacancies. A job
vacancy may be filled from within or outside the
organization. Job descriptions and job specifications are
important in the recruiting process because they specify the
 nature of the job and the qualifications required of job
candidates. Methods used to recruit employees include job
posting, advertising in various media and executive search.
 Selection: It involves choosing from the available candidates
the individual who is most qualified to fill the position. Steps
in the selection process include reviewing the application
forms, psychological testing, employment
interviews, reference checking, and a medical examination.
Based on the information gathered, a selection decision is
made.
 Human Resource Development: This activity is also known
as Training and Development. Training helps the employee
gain the specific job-related skills that will ensure effective
performance of work. Development is the process of helping
the employee grow in his or her career and achieve his or her
career goals. Training and development is a means of
achieving global competitiveness, improving
productivity and the capacity to adapt to changes in the
environment.
 Performance Appraisal: This activity is concerned with
determining how well employees are doing their jobs,
communicating that information to employees and
establishing a plan for performance improvement. The
information obtained from the appraisal process is also used
as a basis for making decisions on promotion, rewards or
compensation or salary increment, placement, dismissal and
training and development needs.
 Industrial Relations: This is also called employee
relations. Maintaining positive relationships between
employers (management) and employees is an important
aspect of human resource management. The purposes of
industrial relations are to ensure open communication, fair
and equitable personnel policies and practices and high work
and life satisfaction as these will result in trust, cooperation,
commitment and high performance.
EMPLOYEE WELFARE

Staff welfare is an all-encompassing term covering a wide range of

facilities that are essential for the well-being of your employees.

A comprehensive list of
welfare activities on labor
welfare into two broad
groups, namely:
1. Welfare measures inside
the work place; and
2. Welfare measures
outside the work place.

1. Welfare Measures inside the Work Place:

a) Conditions of the work Environment:
 Safety and cleanliness: attention to approaches.
 Housekeeping
 Workshop sanitation and cleanliness.
 Control of effluents
 Distribution of work hours
 Workmen’s safety measures
 Supply of necessary beverages

b) Worker’s Heath Services:

 Factory Health Center
 Dispensary
 Ambulance
 Health Education
c) Economic services:
  Co-operatives, loans, financial grants
 Profit sharing and bonus schemes
 Gratuity and pension
2. Welfare Measures outside the workplace:
 Water, sanitation, waste disposal.
 Roads, lighting, parks, recreation, playgrounds.
 Schools: nursery, primary, secondary and high school.
 Markets, co operatives, consumer and credit societies.
 Bank
 Transport
 Communication: post, telegraph and telephone.
 Health and medical services: dispensary, emergency ward,
outpatient and in-patient care, family visiting etc.
 Recreation: games; clubs; craft centers; cultural programs
 Administration of community services and problems.
FUNCTIONAL AREAS
The functional areas of human resource management may be set
forth as follows:-
1. Organizational planning and Development: As the economy
continues to bounce back from the deepest recession in modern
times, more and more organizations are turning
to Organizational Development (OD) to help transform the
business and support long-term growth. HR has an increasingly
important role in developing new blueprints and in helping to
implement change so that the right skills, behaviors, culture and
leadership style are in place to increase organizational
effectiveness and enhance business performance. Given that
successful OD programs align strategy, people, processes and
systems.
2. Staffing and employment: One of the major tasks in HRM is
staffing. Staffing involves the entire hiring process from posting a
job to negotiating a salary package. Within the staffing function,
there are four main steps:

1. Development of a staffing plan

2. Development of policies to encourage multiculturalism at work
3. Recruitment
4. Selection
5. Promotion

3. Training and Development: Once we have spent the time to hire

new employees, we want to make sure they not only are trained to
do the job but also continue to grow and develop new skills in
their job. This results in higher productivity for the organization.
Training is also a key component in employee motivation.
Examples of training programs might include the following:

 Job skills training, such as how to run a particular computer

program
 Training on communication

4. Wage and salary administration: One of the most important

functions of HR is the payment of proper salaries and wages to all
employees. The pay that the employee receives from the employer
is the very reason for their being in the job. The pay provides them
with strong incentive to do their jobs well and the rate of pay
indicates their status in the company.

5. Motivation and incentives: Motivation- It is the process of

stimulating people to actions to accomplish the goals. In the work
goal context the psychological factors stimulating the people’s
behavior can be -desire for money, success, recognition, job-
satisfaction, team work, etc. One of the most important functions
of management is to create willingness amongst the employees to
perform in the best of their abilities.
Incentives- Incentive is an act or promise for greater action. It is
also called as a stimulus to greater action. Incentives are
something which is given in addition to wages or salary. It means
additional remuneration or benefit to an employee in recognition
of achievement or better work. Incentives provide a spur or zeal in
the employees for better performance.

6. Employee services and benefits: Employers can offer a wide

variety of benefits to their employees. Benefits are designed to
help employees meet basic needs they might not otherwise be able
to meet on their own.
Services-Employee services can include anything an employer
deems necessary to provide as a perk for employees. Some
companies provide cafeterias and event catering services for
employees. Others have coffee shops. Employee services are more
of a convenience than a true benefit. Busy corporate offices, for
example, might provide dry cleaning pickup services for
employees. Employers in remote locations might offer shuttle
services to and from work. The types of services depend upon
each employer. Small business owners can use employee services
such as on-site childcare to make their positions more attractive
to potential employees.
Benefits-Employee benefits differ from employee services in that
benefits tend to be necessities for many people. Basic insurance
needs are covered by many employee benefit plans. Insurance
options provided by employers can include health insurance, but
they can also include life insurance, accidental death and
disability insurance, dental insurance and unemployment
insurance also. Other types of benefits usually include a
retirement plan in the form of a 401(k) or some other qualified
tax-deferred plan.
7. Employee records: Human Resource Managers maintain
detailed information on every employee within the organization.
Employee data is organized around a central screen containing
information that provides an overview of the employee. An
employee becomes more than just a number. Numerous sub-
screens can be accessed from the central employee details screen,
which contain additional information on the employee.

8. Labor or Industrial Relations: By labor relations is meant the

maintenance of healthy and peaceful labor-management relations
So that production/work may go on undisturbed.

9. Personnel Research and Personnel Audit: Personnel audit is a

term used for a case study of human resources in the organization.
This is a kind of audit; its subject is an objective and independent
review and assessment of the condition and suggestion of
solutions to increase the effectiveness of individuals,
organizational units and whole organization.
Personnel research can be defined as a systematized investigation
into the matters of employees with an objective to solve their
problems. According to Dale Yoder, “personnel research implies
searching, investigation, re-examination, reassessment and
revaluation”.
Q. 3. Explain the inter-phase between finance and
other functions.
Financial management is an integral part of overall management
and not merely a staff function. It is not only confined to fund
raising operations but extends beyond it to cover utilization of
funds and monitoring its uses. These functions influence the
operations of other crucial functional areas of the firm.
Marketing-Finance Interface- There are many decisions, which the
Marketing Manager takes which have a significant location, etc. In
all these matters assessment of financial implications is
inescapable impact on the profitability of the firm. For example,
he should have a clear understanding of the impact the credit
extended to the customers is going to have on the profits of the
company. Otherwise in his eagerness to meet the sales targets he
is liable to extend liberal terms of credit, which is likely to put the
profit plans out of gear.
Production-Finance Interface- As we all know in any manufacturing
firm, the Production Manager controls a major part of the
investment in the form of equipment, materials and men. He
should so organize his department that the equipments under his
control are used most productively, the inventory of work-in-
process or unfinished goods and stores and spares is optimized
and the idle time and work stoppages are minimized. Similarly, he
would have to make decisions regarding make or buy, buy or lease
etc. for which he has to evaluate the financial implications before
arriving at a decision.
Top Management-Finance Interface- The finance function also has a
strong linkage with the functions of the top
management. Strategic planning and management control are two
important functions of the top management. Finance function
provides the basic inputs needed for undertaking these activities.
Economics – Finance Interface- The field of finance is closely related
to economics. Financial managers must understand the economic
framework and be alert to the consequences of varying levels of
economic activity and changes in economic policy. They must also
be able to use economic theories as guidelines for efficient
business operation.
Accounting – Finance Interface- The firm’s finance (treasurer) and
accounting (controller) activities are typically within the control of
the financial vice president (CFO). These functions are closely
related and generally overlap; indeed, managerial finance and
accounting are often not easily distinguishable. In small firms the
controller often carries out the finance function, and in large firms
many accountants are closely involved in various finance
activities. However, there are two basic differences between
finance and accounting; one relates to the emphasis on cash flows
and the other to decision making.

Q. 4. Explain the different Marketing Environments

and the role of culture and sub culture.
The business environment is a marketing term and refers to
factors and forces that affect a firm's ability to build and maintain
successful customer relationships. The general marketing
environment, therefore, consists of all the factors and forces
influencing the marketing function. This includes both internal
and external forces. Internal forces, i.e., the intra –firm
environment, are largely within the control of the firm. It is the
generally uncontrollable forces outside the firm in the macro-
environment that pose the most important sources of
opportunities and threats to the company.

MACRO-ENVIRONMENT
Marketing concept is more an attitude of mind or a customer-
oriented business philosophy, rather than merely a functional
area of management. The marketing firm operates within a
complex, dynamic, external macro-environment. The company is
not alone in doing business. It is surrounded by and operates in a
larger context. This context is called the Macro Environment. It
consists of all the forces that shape opportunities, but also pose
threats to the company.

Cyclical industries, for example,

are heavily influenced by the
macro environment, while
consumer staples are less
influenced. The macro
environment can also greatly
affect consumers directly,
affecting their ability and
willingness to spend.
Consumers’ reactions to the
broad macro environment are
closely monitored by businesses
and economists as a gauge for
an economy’s health.
COMPETITIVE ENVIRONMENT
In the business plan of every small enterprise is a section
analyzing the competitive environment. The competitive
environment encompasses all the external factors that compete
with the services or products of the small business. Ignoring any
of these factors results in having an incomplete picture that can
lead to poor decision-making. The most obvious examples of
elements in a competitive environment are a business's direct
competitors, but other examples are regulatory sources, indirect
competitors and social and technological changes.
SUPPLIER ENVIRONMENT
The suppliers to a firm can also alter its competitive position and
marketing capabilities. These are raw material suppliers, energy
suppliers, suppliers of labor and capital. According to Michael
Porter, the relationship between suppliers and the firm epitomizes
a power equation between them. This equation is based on the
industry condition and the extent to which each of them is
dependent on the other. The buyer-supplier relationship is one of
economic interdependence. Both parties rely on each other for
their commercial well being.

DISTRIBUTIVE ENVIRONMENT
Distributors are the intermediaries between the manufacturer and
the consumer. Distributors are marketing companies too, and
participate in the marketing process. Distributors are important
channels since large manufacturing brands do not wish to
distribute all the way to the final consumer. For example Coca-
Cola cannot have a direct supplier relationship with every
consumer (although it does have a strong brand relationship with
consumers). Intermediaries perform this important distribution
role.

There are a number of different levels of distribution. A window

manufacturer might sell directly to the homeowner whereby there
are no intermediaries. Often intermediaries would be a
wholesaler, a retailer, or an agent.

POLITICAL ENVIRONMENT

The political factors affecting business are often given a lot of

importance. Several aspects of government policy can affect
business. All firms must follow the law. Managers must find how
upcoming legislations can affect their activities. The political
environment can impact business organizations in many ways. It
could add a risk factor and lead to a major loss. Increase
or decrease in tax could be an example of a political element.

TECHNOLOGICAL ENVIRONMENT

Technology, particularly the availability of big data coupled with a

wide variety of digital marketing channels, offers substantial
opportunity for marketing professionals. From the organizational
perspective, technology has impacted the ability to collect and
organize marketing data, the channels the organization can use to
reach consumers, and the process of developing different types
and formats of advertising assets. Organizations have more data,
more marketing formats, and more online places to communicate
with consumers. Identifying the ideal target market from the data,
figuring out which channels this market tends to use (social
networks, etc.), and which products fill their needs is a strategic
necessity in the modern technological era for organizational
success.

ECONOMIC ENVIRONMENT

The economic factors of the business environment are all the

variables that impact how the consumer spends their money and
the power of that purchase. There are multiple factors that exist at
any time. An example of an economic factor is the recent
recession influenced people to spend less and save more which
has impacted current consumer spending patterns. The economic
development of a country is an important element when scanning
the economic environment. The exchange rate of a country can
have an extensive impact on the profitability of a business.
Relatively small changes in the exchange rate may be the
difference between profit and loss. When promoting, selling a
product it is important for an organization to consider the extra
financial information including current rates, taxes etc. in the
economy of the country.

THE ROLE OF CULTURE

Culture is the characteristics or behavior patterns of a group of

people. This is defined by many factors such as religion, language
and social habits. Basically anything that you encounter on a daily
or regular basis can influence your culture. Companies that are
growing are always on the lookout for new opportunities. Some of
these opportunities present themselves in new countries. Product
diversification and growth may demand a product to be
introduced on a global level. To develop a successful marketing
strategy, an organization must take into consideration the cultural
influences of the society where a new product is being introduced.
People make decisions about consumption of a product based on
these cultural influences. For example, some countries, such as
the United States, are more individualistic, with citizens making
purchasing decisions based on personal preferences. In other
countries, such as Japan, people tend to make purchasing
decisions based on the welfare of a group, such as the family. The
way this plays out in marketing strategies is that ads focused on
individuals do better in individualistic countries while group
advertising works better in countries with collective group values.

THE ROLE OF SUB-CULTURE

Subculture is defined as a distinct cultural group that exists as

an identifiable segment within a larger, more complex society.
Subcultures are typically based on a number of factors taken
singly or in combination. Some of the more obvious foundations
for sub-cultural variation are (1) nationality (2) ethnicity,
(3) age (4) geographic region and (5) religion. Marketers
classify market segments according to identification with sub-
cultural groups. By understanding how identification with one
or more subcultures influences attitudes and behavior,
marketers can better target to specific groups. Marketers should
develop product mixes, marketing strategies, and promotions
that appeal to targeted groups.

Q. 5. Explain Organizational Behavior and its

different major aspects.
Organizational behavior (OB) is the study of the way people
interact within groups. Normally this study is applied in an
attempt to create more efficient business organizations. The
central idea of the study of organizational behavior is that a
scientific approach can be applied to the management of workers.
Organizational behavior theories are used for human resource
purposes to maximize the output from individual group members.
Organizational Behavior (frequently abbreviated as OB) is a field
of study that investigates the impact that individuals, groups, and
structure have on behavior within organizations, for the purpose
of applying such knowledge toward improving an organization’s
effectiveness. That’s a lot if words, so let’s break it down.
Organizational Behavior is a field of study. This means that it is a
distinct area of expertise with a common body of knowledge.
What does it study? It studies three determinants of behavior in
organizations: individual, groups, and structure. Additionally, OB
applies the knowledge gained about individuals, groups and the
effect of structure on behavior in order to make organizations
work more effectively.
To sum up our definition, OB is concerned with the study of what
people do in an organization and how that behavior affects the
performance of the organization. And because OB is especially
concerned with employment related situation, you should not be
surprised to find that it emphasizes behavior as related to jobs,
work, absenteeism, employment turnover, productivity, human
performance, and management. There is increasing agreement as
to the components or topics that constitute the subject are of OB.
While there is still considerable debate as to the relative
importance of each, there appears to be general agreement that
OB includes the core topics of motivation, leader behavior and
power interpersonal communication, group structure and process,
learning, attitude development and perception change processes,
conflict, job design, and work stress.
Work-force Diversity, Declining Loyalty, Labor Shortages, Skill
Deficiencies, Psychology, Sociology, Social Psychology,
Anthropology and Political Science contribute to the
Organizational Behavioral field. Biographical characteristics such
as Age, Gender, Marital Status, Number of Dependents and
Tenure affect the Organizational Behavior. Ability in different
areas like Intellectual, Physical, and Job Fit contribute to
activities in OB.

Q. 6. How economics work and discuss the relations

between the main economic players and
institutions?
The primary function of an economy is integrating the 4 factors of
production - Land, Labor, Enterprise and Capital - to produce
goods profitably. This is made possible through the interactions
between the consumers (also the labor), private firms, financial
sector and the government sector. Furthermore, economics is
concerned with solving the basic economic problem, which is the
existence of unlimited wants in relation to the limited resources
available on our planet. This leads us making choices (which
wants to satisfy through production and consumption) and
making sacrifices (which wants to give up as there only a limited
amount of resources available). Economics in general deals with
attempting to get the most out of the resources available. It deals
with anticipating consumer behavior, trends and using this
analyzed information to make decisions.

The last thing you should know is that economics is most broadly
categorized into two fields - Macroeconomics and
Microeconomics.

Microeconomics deals with the interaction between individuals,

i.e., individuals firms/industries, consumers. This deals with such
things as factors affecting the demand of goods, the concept of
elasticity, factor affecting supply of goods, the marginal utility
theory and so forth.

Macroeconomics deals with the economy as a whole - this

includes concepts such as national income (GDP), aggregate
demand and supply, the multiplier effect, the factors affecting
consumption, investment, government expenditure and net
exports, the exchange rate systems and Balance of Payments.