MBA 101 [Communication Skills]

1. Question. What the barriers of

communication?

Barriers To Effective
Communication

The process of communication has

multiple barriers. The intended
communique will often be disturbed and
distorted leading to a condition of
misunderstanding and failure of
communication.
The Barriers to effective communication
could be of many types like linguistic,
psychological, emotional, physical, and
cultural etc.
We will see all of these types in detail
below.
Linguistic Barriers

The language barrier is one of the main

barriers that limit effective
communication. Language is the most
commonly employed tool of
communication. The fact that each major
region has its own language is one of
the Barriers to effective communication.
Sometimes even a thick dialect may render
the communication ineffective.
As per some estimates, the dialects of
every two regions changes within a few
kilometers. Even in the same workplace,
different employees will have different
linguistic skills. As a result, the
communication channels that span across
the organization would be affected by this.
Thus keeping this barrier in mind, different
considerations have to be made for
different employees. Some of them are
very proficient in a certain language and
others will be ok with these languages.
Psychological Barriers

There are various mental and

psychological issues that may be barriers
to effective communication.
Some people have stage fear, speech
disorders, phobia, depression etc. All of
these conditions are very difficult to
manage sometimes and will most certainly
limit the ease of communication.

Emotional Barriers

The emotional IQ of a person determines

the ease and comfort with which they can
communicate. A person who is
emotionally mature will be able to
communicate effectively. On the other
hand, people who let their emotions take
over will face certain difficulties.
A perfect mixture of emotions and facts is
necessary for effective communication.
Emotions like anger, frustration, humour,
can blur the decision-making capacities of
a person and thus limit the effectiveness of
their communication.

Physical Barriers to Communication

They are the most obvious barriers to

effective communication. These barriers
are mostly easily removable in principle at
least. They include barriers like noise,
closed doors, faulty equipment used for
communication, closed cabins, etc.
Sometimes, in a large office, the physical
separation between various employees
combined with faulty equipment may
result in severe barriers to effective
communication.
Cultural Barriers of Communication

As the world is getting more and more

globalized, any large office may have
people from several parts of the world.
Different cultures have a different meaning
for several basic values of society.
Dressing, Religions or lack of them, food,
drinks, pets, and the
general behaviour will change drastically
from one culture to another.
Hence it is a must that we must take these
different cultures into account while
communication. This is what we call being
culturally appropriate. In many
multinational companies, special courses
are offered at the orientation stages that let
people know about
other cultures and how to be courteous and
tolerant of others.
Organisational Structure Barriers

As we saw there are many methods of

communication at an organizational level.
Each
of these methods has its own problems and
constraints that may become barriers to
effective communication. Most of these
barriers arise because of misinformation or
lack of appropriate transparency available
to the employees.

Attitude Barriers

Certain people like to be left alone. They

are
the introverts or just people who are not
very social. Others like to be social or
sometimes extra clingy! Both these cases
could become a barrier to communication.
Some people have attitude issues, like
huge ego and inconsiderate behaviours.
These employees can cause severe strains
in the communication channels that they
are present in. Certain personality traits
like shyness, anger, social
anxiety may be removable through courses
and proper training. However, problems
like egocentric behaviour and selfishness
may not be correctable.

Perception Barriers

Different people perceive the same things

differently. This is a fact which we must
consider during the communication
process. Knowledge of the perception
levels of the audience is crucial to effective
communication. All the messages or
communique must be easy and clear. There
shouldn’t be any room for a diversified
interpretational set.
Physiological Barriers

Certain disorders or diseases or other

limitations could also prevent effective
communication between the various
channels of an organization. The shrillness
of voice, dyslexia, etc are some examples
of physiological barriers to effective
communication. However, these are not
crucial because they can easily be
compensated and removed.

Technological Barriers & Socio-

religious Barriers

Other barriers include the technological

barriers. The technology is developing fast
and as a result, it becomes difficult to keep
up with the newest developments. Hence
sometimes the technological advance may
become a barrier. In addition to this, the
cost of technology is sometimes very high.
Most of the organizations will not be able
to afford a decent tech for the purpose of
communication. Hence, this becomes a
very crucial barrier. Other barriers are
socio-religious barriers. In a patriarchal
society, a woman or a transgender may
face many difficulties and barriers while
communicating.

Q-2. How to be successful in a group

discussion?

Here are Some Tips for a Successful

Group Discussion The first and the
foremost tip for an individual to perform
well in a GD is to learn the art of
participation. Don’t expect others to force
you to speak. Take the initiative,
participate in the discussion and share your
ideas with others. Never shout in a group
discussion and always wait for your turn to
speak. Remember it’s a discussion, not a
fighting ground. Be polite but firm. Try to
take the initiative. Don’t wait for the others
to start the discussion. Always volunteer
yourself and start the discussions in an
extremely confident manner. Introduce
yourself and your team members and then
start with the topic but one thing to
remember here is that one must initiate the
Group Discussion only when he or she is
well versed with the topic. Don’t take the
risk if you yourself are not very clear about
your thoughts. A leader is the one who
actually gives the group discussion a
direction and guides other team members
when they seem to be lost or confused.
Like a true leader, an individual must try
his level best to
refrain from personal favours. Don’t only
ask your acquaintance to speak, give equal
opportunity to other participants as well.
As the leader of the group, he must ensure
that the discussion does not end up in
fighting and reaches a conclusion. One
must speak only if he is well prepared with
the topic. Don’t just speak for the sake of
points or marks; speak only when you are
absolutely sure about
what you are speaking. Never depend on
guess works in group discussions as it
sometimes can seriously go against you.
Avoid using slangs or crack jokes in
between the discussions as it is considered
highly unprofessional.
Never be rigid in group discussions.
Always keep in mind that the other person
is also as learned as you. Always listen to
what he is saying and then only respond.
Be a good and a patient listener. Don’t just
simply draw conclusions as there is always
a room for discussions. Debate logically
and sensibly and try to take everyone along
with you.
Read a lot and always keep your eyes and
ears open.
Always begin your day with the newspaper
and know what is happening around you.
An individual must be aware of the current
events to succeed well in a group
discussion. Be alert always. A participant
usually gets around 15 minutes to think
about the topic. You need to think fast and
cover as much as you can. Always take
care of your words. The content has to be
sensible, crisp and well supported with
examples or real life
situations. Don’t adopt a laidback attitude
or yawn in between group discussions.
Take care of your dressing as well. Don’t
wear flashy
clothes while going for a group discussion
or interview.
Female candidates should also avoid cakey
makeup or flaunt heavy jewellery. The
clattering sounds of bangles sometimes act
as a disturbing element in formal
discussions. Be in professional attire and
avoid loud colours.
An individual must keep in his mind that
group
discussion is meant for bringing out the
managerial skills of an individual. The
organizer of the group discussion will
never appreciate you or give you the credit
if you shout or fight in group discussions.
Be calm, composed, confident and neutral
to create an
impression in the discussion and win over
others.
Q3. What are steps in writing
reports?

Reports generally involve presenting your

investigation and analysis of information
or an issue, recommending actions and
making proposals.
There are many different types of reports,
including business, scientific and research
reports, but the basic steps for writing
them are the same. These are outlined
below.
Step 1: Decide on the 'Terms of reference'
Step 2: Decide on the procedure
Step 3: Find the information
Step 4: Decide on the structure
Step 5: Draft the first part of your report
Step 6: Analyse your findings and draw
conclusions
Step 7: Make recommendations
Step 8: Draft the executive summary and
table of contents
Step 9: Compile a reference list
Step 10: Revise your draft report
You can also check our information on
assignment
writing for tips on planning, finding
information,
writing and reviewing your work.
Step-by-step guide to writing an
assignment
Step 1: Decide on the 'Terms of reference'
To decide on the terms of reference for
your report,
read your instructions and any other
information
you've been given about the report, and
think about
the purpose of the report:
What is it about?
What exactly is needed?
Why is it needed?
When do I need to do it?
Who is it for, or who is it aimed at?
This will help you draft your Terms of
reference.
Step 2: Decide on the procedure
This means planning your investigation or
research,
and how you'll write the report. Ask
yourself:
What information do I need?
Do I need to do any background reading?
What articles or documents do I need?
Do I need to contact the library for
assistance?
Do I need to interview or observe people?
Do I have to record data?
How will I go about this?
Answering these questions will help you
draft the
procedure section of your report, which
outlines the
steps you've taken to carry out the
investigation.
Step 3: Find the information
The next step is to find the information
you need for
your report. To do this you may need to
read written
material, observe people or activities,
and/or talk to
people.
Make sure the information you find is
relevant and
appropriate. Check the assessment
requirements and
guidelines and the marking schedule to
make sure
you're on the right track. If you're not sure
how the
marks will be assigned contact your
lecturer.
What you find out will form the basis, or
main body, of
your report – the findings.
For more on finding information:
Research and reading
Steps for writing an assignment
Step 4: Decide on the structure
Reports generally have a similar structure,
but some
details may differ. How they differ usually
depends
on:
The type of report – if it is a research
report,
laboratory report, business report,
investigative
report, etc.
How formal the report has to be.
The length of the report.
Depending on the type of report, the
structure can
include:
A title page.
Executive summary.
Contents.
An introduction.
Terms of reference.
Procedure.
Findings.
Conclusions.
Recommendations.
References/Bibliography.
Appendices.
The sections, of a report usually have
headings and
subheadings, which are usually numbered
The basic structure of a report (PDF 262
KB; opens in
a new window)
Step 5: Draft the first part of your report
Once you have your structure, write down
the headings
and start to fill these in with the
information you
have gathered so far. By now you should
be able
to draft the terms of reference, procedure
and
findings, and start to work out what will go
in the
report’s appendix.
Findings
The findings are result of your reading,
observations,
interviews and investigation. They form
the basis of
your report. Depending on the type of
report you are
writing, you may also wish to include
photos, tables
or graphs to make your report more
readable and/or
easier to follow.
Graphs - BBC Skillwise website (opens in
a new window)
Appendices
As you are writing your draft decide what
information will go in the appendix. These
are used
for information that:
is too long to include in the body of the
report, or
supplements or complements the
information in the
report. For example, brochures,
spreadsheets or large
tables.
Formatting and presenting your
assignment
Step 6: Analyse your findings and draw
conclusions
The conclusion is where you analyse your
findings
and interpret what you have found. To do
this, read
through your findings and ask yourself:
What have I found?
What's significant or important about my
findings?
What do my findings suggest?
For example, your conclusion may
describe how the
information you collected explains why the
situation
occurred, what this means for the
organisation, and
what will happen if the situation continues
(or doesn't
continue).
Don’t include any new information in the
conclusion.
Step 7: Make recommendations
Recommendations are what you think the
solution to
the problem is and/or what you think
should happen
next. To help you decide what to
recommend:
Reread your findings and conclusions.
Think about what you want the person
who asked for
the report should to do or not do; what
actions should
they carry out?
Check that your recommendations are
practical and
are based logically on your conclusions.
Ensure you include enough detail for the
reader to
know what needs to be done and who
should do it.
Your recommendations should be written
as a
numbered list, and ordered from most to
least
important.
Step 8: Draft the executive summary and
table of
contents
Some reports require an executive
summary and/or
list of contents. Even though these two
sections come
near the beginning of the report you won't
be able
to do them until you have finished it, and
have your
structure and recommendations finalised.
An executive summary is usually about
100 words long.
It tells the readers what the report is about,
and
summarise the recommendations.
Step 9: Compile a reference list
This is a list of all the sources you've
referred to in the
report and uses APA referencing.
APA referencing
Step 10: Revise your draft report
It is always important to revise your work.
Things you
need to check include:
If you have done what you were asked to
do. Check
the assignment question, the
instructions/guidelines
and the marking schedule to make sure.
That the required sections are included,
and are in
the correct order.
That your information is accurate, with no
gaps.
If your argument is logical. Does the
information
you present support your conclusions and
recommendations?
That all terms, symbols and abbreviations
used have
been explained.
That any diagrams, tables, graphs and
illustrations
are numbered and labelled.
That the formatting is correct, including
your
numbering, headings, are consistent
throughout the
report.
That the report reads well, and your
writing is as clear
and effective as possible.
You might need to prepare several drafts
before you
are satisfied. If possible, get someone else
to check
your report.
Q4. Write about the essential
components of note
taking skill.

Put the right tools in your backpack.

It should go without saying, but in order to
take good notes, you’ll need to bring your
note-taking tools to class! Whether you
prefer to write your notes long-hand, or
you use a tablet or laptop, check to be
sure you have everything you need before
heading to class. To take this a step
further, have your “laptop charger, extra
pens/paper,” and other backup tools at
the ready.
While you’re stuffing your bag for school,
don’t forget to bring highlighters. As one
student wrote, “Different highlighters or
colored pens can help one to better
understand their own notes.”
Practice active listening.
The “attentive, active listener” who
“remains alert in class” will get the most
benefit from that class session.
Give your “undivided attention to the
speaker,” and don’t allow yourself to
become “distracted by phones
or electronics.” One of our responding
students put it this way: “Good note-takers
use good listening skills to pick out the
important information that will help
them when they go back to review.”
Write neatly!
Though you have to write quickly,
remember to write legibly. (How can you
review what you can’t read?) “Clear
handwriting” will produce the “neat,”
“legible” notes that you can use later as a
study tool.
Organize your thoughts carefully.
Keep organized notes, and your studies
will benefit! As one student recommended,
“Make sure the notes are organized in a
way that you will find them easy to read as
well.”
What are good organizational strategies?
One student listed the basic elements of a
successfully organized set of notes as:
“Heading sections and organization. Dates
and titles. The who, what, where and
when.” Other students recommended the
Cornell method: “This means not only
taking notes from the lecture but actually
going back and coming up with questions,
highlighting key words, and addressing
things you don’t understand.”
If your instructor presents a lecture outline
at the start of class, or if he or she provides
the slides from the lecture, you can use
those as an organizational framework as
well. Whichever system you choose to use,
follow it consistently.
Stay concise.
Many students wrote about the importance
of being thorough and paying attention to
detail. Of course, you don’t want to end
class with a nearly blank sheet of paper!
However, you also don’t want to be so
caught up in the act of taking notes that
you lose track of what the instructor is
saying.
Instead: “Get the important points down
without writing/typing every word.” Write
in “short but concise phrases” that contain
“important points that the professor
emphasizes.”
Want to ensure that you’re capturing
everything of importance? Several students
suggested that you “record the lecture for
review”; however, you may need to obtain
the instructor’s permission before doing
so. If you’re able to do this, then take time
after class to “fill in your notes with
information you might have missed during
the lecture.”
Summarize.
As one student wrote, “A good note taker
can quickly summarize important points
for easy retrieval later.” If you’re able to
put your instructor’s thoughts into your
own words, that also indicates that you’re
developing an understanding of the
material.
Be efficient.
Spend your note-taking time wisely! “Use
abbreviation to increase your note-taking
speed and comprehension later.” You
might also “draw pictures and diagrams”
that illustrate the concepts the instructor
addressed.
Q5. Discuss the process of
negotiation.

Negotiation is a method by which people

settle differences. It is a process by which
compromise or agreement is reached while
avoiding argument and dispute.
In any disagreement, individuals
understandably aim to achieve the best
possible outcome for their position (or
perhaps an organisation they
represent). However, the principles of
fairness, seeking mutual benefit and
maintaining a relationship are the keys to a
successful outcome.
Specific forms of negotiation are used in
many situations:
international affairs, the legal system,
government, industrial disputes or
domestic relationships as examples.
However, general negotiation skills can
be learned and applied in a wide range of
activities.
Negotiation skills can be of great benefit in
resolving any differences that arise
between you and others.
Stages of Negotiation
In order to achieve a desirable outcome, it
may be useful to follow a structured
approach to negotiation.
For example, in a work situation a meeting
may need to be arranged in which all
parties involved can come together.
The process of negotiation includes the
following
stages:
Preparation
Discussion
Clarification of goals
Negotiate towards a Win-Win outcome
Agreement
Implementation of a course of action
1. Preparation
Before any negotiation takes place, a
decision needs to be taken as to when and
where a meeting will take place to discuss
the problem and who will attend.
Setting a limited time-scale can also be
helpful to prevent the disagreement
continuing.
This stage involves ensuring all the
pertinent facts of the situation are known
in order to clarify your own position. In the
work example above, this would
include knowing the ‘rules’ of your
organisation, to whom help is given, when
help is not felt appropriate and the grounds
for such refusals. Your organisation
may well have policies to which you can
refer in preparation for the negotiation.
Undertaking preparation before discussing
the disagreement will help to avoid further
conflict and unnecessarily wasting time
during the meeting.
2. Discussion
During this stage, individuals or members
of each side put forward the case as they
see it, i.e. their understanding of the
situation.
Key skills during this stage
include questioning, listening and
clarifying. Sometimes it is helpful to take
notes during the discussion stage to record
all points put forward in case there is need
for further clarification. It is extremely
important to listen, as when disagreement
takes place it is easy to make the mistake
of saying too much and listening too little.
Each side should have an equal
opportunity to present their case.
3. Clarifying Goals
From the discussion, the goals, interests
and viewpoints of both sides of the
disagreement need to
be clarified.
It is helpful to list these factors in order of
priority. Through this clarification it is
often possible to identify or establish some
common ground.
Clarification is an essential part of the
negotiation process, without it
misunderstandings are likely to occur
which may cause problems and barriers to
reaching a beneficial outcome.
4. Negotiate Towards a Win-Win Outcome
This stage focuses on what is termed a
'win-win' outcome where both sides feel
they have gained something positive
through the process of negotiation and
both sides feel their point of view has been
taken into consideration.
A win-win outcome is usually the best
result. Although this may not always be
possible, through negotiation, it should be
the ultimate goal.
Suggestions of alternative strategies and
compromises need to be considered at this
point. Compromises are often positive
alternatives which can often achieve
greater benefit for all concerned compared
to holding to the original positions.
5. Agreement
Agreement can be achieved once
understanding of both sides’ viewpoints
and interests have been considered.
It is essential to for everybody involved to
keep an open mind in order to achieve an
acceptable solution.
Any agreement needs to be made perfectly
clear so that both sides know what has
been decided.
6. Implementing a Course of Action
From the agreement, a course of action has
to be implemented to carry through the
decision.
See our pages: Strategic Thinking and
Action
Planning for more information.
Failure to Agree
If the process of negotiation breaks down
and agreement cannot be reached, then re-
scheduling a further meeting is called for.
This avoids all parties becoming embroiled
in heated discussion or argument, which
not only wastes time but can also damage
future relationships.
At the subsequent meeting, the stages of
negotiation should be repeated. Any new
ideas or interests should be taken into
account and the situation looked at afresh.
At this stage it may also be helpful to look
at other alternative solutions and/or bring
in another person to mediate.
See our page on Mediation Skills for more
information.
Informal Negotiation
There are times when there is a need to
negotiate more informally. At such times,
when a difference of opinion arises, it
might not be possible or appropriate to go
through the stages set out above in a
formal manner.
Nevertheless, remembering the key points
in the stagesof formal negotiation may be
very helpful in a variety of informal
situations.
In any negotiation, the following three
elements are important and likely to affect
the ultimate outcome of the negotiation:
Attitudes
Knowledge
Interpersonal Skills
Attitudes
All negotiation is strongly influenced by
underlying attitudes to the process itself,
for example attitudes to the issues and
personalities involved in the particular case
or attitudes linked to personal needs for
recognition.
Attitudes
All negotiation is strongly influenced by
underlying attitudes to the process itself,
for example attitudes to the issues and
personalities involved in the particular case
or attitudes linked to personal needs for
recognition.
Always be aware that:
Negotiation is not an arena for the
realisation of individual achievements.
There can be resentment of the need to
negotiate by those in authority.
Certain features of negotiation may
influence a person’s behaviour, for
example some people may become
defensive.
Knowledge
The more knowledge you possess of the
issues in question, the greater your
participation in the process of negotiation.
In other words, good preparation is
essential.
Do your homework and gather as much
information about the issues as you can.
Furthermore, the way issues are negotiated
must be understood as negotiating will
require different methods in different
situations.
Interpersonal Skills
Good interpersonal skills are essential for
effective negotiations, both in formal
situations and in less formal or one-to-one
negotiations.
These skills include:
Effective verbal communication.
See our pages: Verbal Communication and
Effective
Speaking.
Listening.
We provide a lot of advice to help you
improve your
listening skills, see our page Active
Listening.
Reducing misunderstandings is a key part
of effective negotiation.
See our pages: Reflection, Clarification
and The Ladder of Inference for more
information.
Rapport Building.
Build stronger working relationships based
on mutual respect. See our pages: Building
Rapport and How to be Polite.
Problem Solving.
See our section on effective Problem
Solving.
Decision Making.
Learn some simple techniques to help you
make better decisions, see our section:
Decision Making.
Assertiveness.
Assertiveness is an essential skill for
successful negotiation. See our page:
Assertiveness Techniques for more
information.
Dealing with Difficult Situations.
See our page: Communicating in Difficult
Situations for some tips and advice to
make difficult communications, easier.
MBA 102 [Organizational
Behaviour]

Q1. What are the five dimensions of

culture and its importance?

Geert Hofstede’s five dimensions of

national culture
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Behavior
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The word culture is used frequently in
organizational behavior. Culture is the
learned and shared way of thinking and
acting among a group of people or
society. Cultures vary in their underlying
patterns of values and attitudes.
The way people think about such matters
as achievement, wealth and material gain
and risk and change may influence how
they approach work and their influence
with organization. A framework offered by
Hofstede offers one such approach for
understanding how values differences
across national cultures can influence
human behavior at work.
The values that distinguished countries
from each other could be grouped
statistically into four clusters. These four
groups became the Hofstede dimensions of
national culture:
Power Distance (PDI)
Individualism versus Collectivism (IDV)
Masculinity versus Femininity (MAS)
Uncertainty Avoidance (UAI)
Long-Term Orientation (LTO)
A fifth Dimension was added in 1991
based on research by Michael Bond who
conducted an additional international study
among students with a survey instrument
that was developed together with Chinese
employees and managers.

1. Power Distance
Power distance is the willingness of a
culture to accept status and power
differences among its members. In cultures
with low power distance, people are likely
to expect that power is distributed rather
equally, and are furthermore also likely to
accept that power is distributed to less
powerful individuals. As opposed
to this, people in high power distance
cultures will likely both expect and accept
inequality and steep hierarchies.
The fundamental issue here is how a
society handles inequalities among people.
People in societies exhibiting a large
degree of power distance accept a
hierarchical order in which everybody has
a place and which needs no further
justification. In societies with low power
distance, people strive to equalize the
distribution of power and demand
justification for inequalities of power.
2. Uncertainty Avoidance
Uncertainty Avoidance is referring to a
lack of tolerance for ambiguity and a need
for formal rules and policies. This
dimension measures the extent to which
people feel threatened by ambiguous
situations. These uncertainties and
ambiguities may e.g. be handled by an
introduction of formal rules or policies, or
by a general acceptance of ambiguity in
the organizational life. The majority of
people living in cultures with a high degree
of uncertainty avoidance, are likely
to feel uncomfortable in uncertain and
ambiguous situations. People living in
cultures with a low degree of uncertainty
avoidance, are likely to thrive in more
uncertain and ambiguous situations and
environments. Countries exhibiting strong
UAI maintain rigid codes of belief and
behavior and are intolerant of unorthodox
behavior and ideas. Weak UAI societies
maintain a more relaxed attitude in which
practice counts more than principles.
3. Masculinity vs. Femininity It is the
tendency of a culture to stereotypical
masculine or feminine traits. These values
concern the extent on emphasis on
masculine work related goals and
assertiveness (earnings, advancement,
title, respect et.), as opposed to more
personal and humanistic goals (friendly
working climate, cooperation, nurturance
etc.) The first set of goals is usually
described as masculine, whereas the latter
is described as feminine. These goals and
values can, among other, describe how
people are potentially motivated in cultures
with e.g. a feminine or a masculine culture.
Japan is considered a very masculine
culture whereas Thailand is considered a
more feminine culture.
4. Individualism vs. Collectivism
In individualistic cultures people are
expected to portray themselves as
individuals, who seek to accomplish
individual goals and needs. In collectivistic
cultures, people have greater emphasis on
the welfare of the entire group to which the
individual belongs, where individual
wants, needs and dreams are often set
aside for the common good.
5. Long vs. Short Term Orientation
Long-Term Orientation is the fifth
dimension, which was added after the
original four dimensions. This dimension
was identified by Michael Bond and was
initially called Confucian dynamism. Geert
Hofstede added this dimension to his
framework, and labelled this dimension
long vs. short term orientation.
The consequences for work related values
and behaviour springing from this
dimension are rather hard to describe, but
some characteristics are described below.
Long term orientation:
Acceptance of that business results may
take time to achieve The employee wishes
a long relationship with the company
Short term orientation:
Results and achievements are set, and can
be reached within timeframe
The employee will potentially change
employer very often. Pros
Hofstede provided a definition of culture
and how culture can be measured. His
research showed that cultural differences
matter. Managers in international
organizations operate according
to their country’s values, rather than to the
organization’s culture.
Employees from related national cultures
work in similar fashions, thereby reducing
the chance of conflicts. Hofstede’s model
provides managers of cross-cultural
relations a tool to help them understand
differences in value sets and behavior.
The model negates that one set of
principles is universally applicable by
confirming that there are
multiple ways of structuring organizations
and institutions.
An organization’s wider social and cultural
environment plus its technology
determines the level of bureaucracy and
centralization (Scott, Hofstede).
Cons
When Hofstede’s first results were
criticized by
Asian scholars, he added time orientation
as a fifth dimension thereby raising doubts
about whether the typology itself was
exhaustive.
Culture is a far too complex and
multifaceted to be used as a
straightforward organizational change
control. “You do not control culture, at
best you shape it” (Green).
Cluster of countries based on Hofstede’s
dimension of individualism collectivism
and power distance
Q2. Write short note on management
as an integrating activity
There is no one definition for the term
management. However Fayol (1916)
defined the term management
as; To manage is to forecast and plan, to
organise, to command, to co-ordinate and
to control. Mc Ilwee. T and Roberts I,
(1991): p. g 117 Management is not
homogeneous and is undertaken at all
levels of the organisation, as it is an
integrating activity.
Managers have to manage in order to
achieve the overall objectives and strategy
of the firm. All firms are seeking effective
managers, and the quality of management
is a key element of business success. In
this assignment the responsibility of
management is going to be addressed.
Henri Fayol (1961) introduced
four managerial roles and these were
planning, organising, commanding. Co-
ordinating and controlling. Organising-
being responsible four jobs and tasks being
carried out by individuals.
Commanding- giving orders and
instructions and expecting them to be
carried out. Co-ordinating- all activities are
arranged and adjusted in time and
situation to ensure smooth running.
Controlling involves
directing, inspecting and regulating work.
Planning- determines in advance what
should be accomplished and how it should
be accomplished.
(Bounds G, Yorks L, Adams M, Ranney
G, 1994)
However Fayol has been criticised by
Mintzberg as it provides only vague
managerial objectives. As an
alternative Mintzberg proposes ten roles.
Three interpersonal roles-figurehead
(social activities), liaison (communicating
internally and externally), and leadership.
Three informational roles- monitor,
disseminator (passing information to
subordinates), spokesman (passing
information externally) and four decisional
roles-entrepreneur (risk taker), disturbance,
handler, resource allocator and negotiator.
The ten role mentioned are not easily
isolated in practice but form an integrated
whole. (Betts. P, 1989) An important and
integral part of management is the role of
supervisors. The supervisor is usually
regarded as being the first of the
management hierarchy of an organisation.
Although the role varies between
organisations, generally the supervisor is
the management person most directly
concerned with the workforce and with
whom they have the most contact. (Lewis
R and Trevitt
R (1995): pg. 355) They have a prime
responsibility for seeking that others do
work. At the authors par time job Boots
the Chemist the supervisor constructs a
rota, which entails what each employee
will be doing for the
rest of the day at different times. For e. g.
9-10 chemist counter 10-11 cash and wrap
11-12 break etc. It is the supervisors
responsibility that tasks are carried out. It
is the employees duty to carry out the task
and the supervisors responsibility to make
sure the tasks are carried out. We also have
job rotation therefore have a multi skilful
workforce. As the store is very busy and
sometimes there is short of staff others can
do the job as they have been trained.
It is important to have good teamwork.
Group work is also an important
management activity. Group work would
enable employees to share ideas with
others. However, group work is not always
effective if employees dislike one another
of have conflicting opinions. Brech (1957)
identifies four main elements
of management and these being planning,
control, co-ordination and motivation.
Today motivation is an important
management activity. I. e. getting the
members of the teams to pull their
weight effectively. (E. Brech, (1975): pg.
12) Whether of not workers carry out tasks
effectively will depend on the degree to
which the manager motivates them.
As management is about getting things
done it is therefore important to motivate
people so that tasks are carried out. In the
authors part time job at Boots the Chemist
employees receive performance-related
bonus. Whether or not you receive a bonus
is dependent on the contribution made by
an employee to the success of the firm.
Each employees performance is monitored
every week. Employees at the firm were
also asked to sign a contract saying that if
any time is taken of work during the
Christmas period they will not be entitled
to pay rise or Christmas bonus. This has
been newly introduced to avoid
absenteeism, as the Christmas period is the
firms busiest period.
In the eyes of the author this approach is
going to be very successful and that
employees are going to be motivated to
work hard and attend work. Taylor
had a very simplistic view of what
motivated people at work-money. Taylor
however overlooked that people also work
for other reasons other than money.
An alternative view to that of Taylor
comes from Herbert. Needs such as
achievement and recognition are positive
motivators whilst others such as pay
and working conditions, can determine if
they are satisfactory, but will not motivate
positively for long if they are satisfying
(Litterer J (1978): p. g 65) An alternative
view to motivation comes from Mc
Gregors theory X and Y.
In theory X managers tend to dislike their
subordinates, they believe employees do
not really enjoy their work and need to be
controlled. Whereas theory Y employees
do enjoy work and they want to contribute
to ideas and effort. A theory Y manager is
therefore more likely to involve employees
in decisions and give them more
responsibility. The way in which
managers view their employees will reflect
their management style. The management
style will also depend on a number of
factors i. e. personality of manger and
workers and the nature of the task. The
way in which the manager deals with its
colleagues will have a real impact on their
motivation and how effectively they work.
The degree to which workers need to be
motivated will depend on the
organisational structure. (Mullins. L 1999)
At any level in the organisation it is
unlikely that management will be able to
cope adequately with all
aspects of their job on their own.
Delegation exists because no one person
can effectively control all the functions of
a large business.
A manager delegates certain powers to
subordinates.
(Floyd. D (1994): p. g 75) To function
efficiently they must delegate.
Management is about getting work
done through other people, this entails
delegation.
Delegation is one of the most powerful
management skills.
It is the process by which authority to
make specific decisions are given to lower
level management. Is involves
subordinates making decisions. At Boots
the Chemist some subordinates are given
the authority to do exchanges and refunds.
Some are also given the authority to open
the counter cache this is where all
the notes in excess of the working float are
placed. However at times the counter
cache does get blocked and we can inform
those subordinates who are authorised to
open the counter cache. It is very useful as
most of the time the supervisor is not on
the shop floor and therefore can get the
subordinates who are authorised to do the
refunds of exchanges. This would not only
maintain good customer service but would
also allow the supervisor to be doing other
things. It is important that the manager
chooses the right subordinates to whom to
delegate authority and responsibility and
therefore should be able to allocate
important aspects of their jobs to
subordinates. The limitation with
delegation is the delegator might be
unwilling to delegate tasks to subordinates.
Good communication is vital in
organisations and lies at the heart of
effective management.
Effective communication is essential for
organisations without it employees do not
know what to do, how to do it or when to
do it by (Marcouse. I, Gillespie. A, Martin.
B, Surridge. M, Wall. N, (1999): pg. 242)
If there is Communication at all levels
employee would feel part of the company
and will then in return contribute more.
People need to know their targets what
they are doing right and areas, which they
need improving on. At Boots the Chemist,
every 6 months the employees have to
review their contracts with their
supervisor. Here employees concern is
discussed as well as targets, their
performance and areas, which they can
improve on. This enables staff to know
how well they are doing and what is
expected from them. This is also more
likely to produce a much more focused
and committed workforce. We also have
staff meetings here managers are able to
inform staff of new developments, listen to
staff views, answer questions and provide
feedback. There is also a staff notice board
where notices relating to staff can be
put up. This is a good means of getting
information to staff in the store. Likert
(1961) identifies a fourfold model of
management systems. Explotitive-very
little teamwork or communication and
responsibility centred at the top of the
hierarchy.
Benevolent- limited teamwork or
communication, responsibility at
management level but not lower
down. Consultative- fair degree of
teamwork and communication,
responsibility spread more widely.
Participative- higher degree of teamwork
and communication and responsibility
widespread through out all levels. This
model can be related to Mc Gregors
X and Y theory.
Explotitive and Benevolent can be related
to Mc Gregors theory X and Participative
can be corresponded to theory Y. The
culture of the organisation will also effect
the management. The organisations culture
is expressed in the way that people who
make up the organisation act. (Mullins. L,
1999) If employees have theory X
expectations and managers expect theory
Y attitudes the results are delegation and
involvement is likely to produce poor
quality output and misdirection effort.
(Floyd D (1994): pg. 125) There can be
potential problems when both employees
and managers have a different set of
beliefs or expectations.
In conclusion, there are numerous
definitions of management. The role of
management is primarily dependent on the
management style adopted and the culture
of the organisation as well as its aims and
objectives. All firms are seeking good
management, as it would effect the success
of the business. The effectiveness of
management can be measured against level
of staff turnover and absenteeism.
Q3. Discuss Needs and Expectations
at work

Needs and Expectations at work

Explain how employees' needs and
expectations may change with age and
family patterns. Compare thedefinition of
the term "family" used today with that
of the 1950s.
So what is the difference between the
workplace and family of the 1950s and
today?
As Jennifer Buckett writes in her article
published on web site, www.helium.com,
'Compared to the 1950s, modern society
does not value family nearly as much, due
to the replacement of time spent as
a family with time spent using media
technology.
Family is the main vessel through which
morals and values are passed down, and
therefore, a decline in time spent as a
family can lead to inferior morals and
values continuing to the next generation. In
the 1950s, family dinners were an occasion
to sit down with family members, enjoy a
home-cooked mealand discuss life. This
was a time of day when the rest of the
world stopped and the focus was entirely
on family. Wholesome morals and values
relevant to the happenings of the day were
often discussed and taught to children at
this time. In the infancy the table with
family lost its priority as dinner in front of
the television became routine.
As family dinners were replaced by
television, the vessel through which morals
and values were taught shifted from family
to the media. Television shows are the
teachers now, and as television shows
became more promiscuous and corrupt
throughout the decades, so did the morals
and values they taught. The present
generation has grown up completely
accepting of what they learn in the media
because there is nothing to contest it.
Family members don't have the time to
teach such trivialities as honor, pride, and
self-respect anymore. As women branched
out of the house and entered the
workplace, women's lives became more
hectic. Consequentially, parents had less
time to interact with their children, passing
on advice and morals. Children turned to
technology as a way to replace their
parents and they started watching more
and more television.
Technology and the media will always
play a huge
role in society: delivering entertainment,
creating national idols, and teaching
morals and values to new generations. In
the 1950s, the majority of morals
and values were endowed to children from
family members, preserving the integrity
and pureness of those beliefs. Nowadays,
the family unit has been dethroned, being
replaced by the media, especially
television, and the celebrities within it.
Children are taught morals and values
through their exposure to the media, rather
than through family, causing an
inconsistency in ideas over generations.
Ideology and actions that were once taboo
in the 1950s are now tolerable in everyday
life, due to the fact that this generation has
been taught by the media that they are
acceptable. With each new generation, the
morals and values that are taught seem to
be continuously more corrupt that those
before them, leading to an increasingly
wild and demoralized society that
follows.' (Buckett, 2007)
So how does America act with each new
generation that is entering the workplace?
For the first in history, we are now dealing
with four generations of human beings
working together in one locale. This in
itself presents numerous problems as
each generation (age group) brings its own
set of values to a workplace. Our
workforce now contains four very distinct
set of values and each generation
needs to be treated in a different way in
order for our vastly different age groups to
gel and form a cohesive team.
These four generations are:
Radio Babies: born 1930 - 1945
Baby Boomers: born 1946 - 1964
Generation X: born 1965 - 1976
Generation Y: born 1977 - 1990 (Buhrow,
n.d.)
The term 'family' means something
different to each
of these generations; what one age group
values, is
not necessarily deemed as valuable by
another.
What are the implications of these changes
for
Human Resource managers?
As an article published on the web site,
www.kileyadvisors.com explores, we as
Human Resource specialists must be able
to understand what the values of each of
these age groups is when they
enter our workplaces.
'Having four generations in the workplace
has created a new set of challenges
employers have had to face for the first
time. Four very different upbringings
have cultivated four very different
perceptions.
In looking at the Radio Babies, events such
as
World War II and the Space Age have
shaped their
perceptions, and the generation is often
stereotyped
as being conservative, fiscally prudent and
loyal.
These traits come from being raised by
parents who had just survived the Great
Depression.
The Baby Boomers were shaped by the
Cold War,
Civil Rights Movement and Vietnam and
are
often stereotyped as being ambitious,
greedy and
materialistic. This is a result of many
pursuing the
"American Dream" promised to them as
children.
Generation X grew up with Watergate,
dual income
families and single parents and is
characterized
as being independent, cautious and flighty.
Their perceptions were shaped by growing
up having to take care of themselves early
and watching their politicians lie and their
parents get laid off.
Finally, Generation Y grew up with school
shootings,
terrorist attacks and AIDS and is
characterized as
being impatient, expressive and ambitious.
This group hopes to be the next great
generation and to turn around all the
"wrong" they see in the world today.
(Buhrow, n.d.)
Ms. Buhrow continues in her article,
'Every generation brings these perceptions
to the workplace; they translate into their
values and attitudes toward
work. And, in this time when there truly is
a "War for
Talent", understanding these differences
can give your company a competitive
edge.
In looking to retain the different
generations, tailoring is key. Younger
generations are asking for a
work/life balance, seen by the increased
popularity of working from home and flex-
time. They look for these benefits because
they don't want to miss their
children's lives like many feel their parent's
missed.
Additionally, many wish to be more
proactive in the
community, whether through religious or
non-profit work.
The older generations also would like a
work/life balance, though for very
different reasons. Many seasoned workers
would like to work part-time or more flex-
time rather than fully retiring. By
having flexibility in their work, they can
have the vacations and downtime they
have earned, while still contributing to
society and maintaining their current
lifestyle, financially.
Catering to the work/life balance needs of
workers can be a great benefit to
employers as well, since they
are able to keep their experienced
workforce around longer to mentor and
train the younger generations,
and they can save some money on space
needed for the workers who choose to
work from home.
Benefits Packages can also be tailored to
the needs of workers. Older generations
may be more interested in assisted living
care whereas the younger generations
find daycare assistance more appealing.
Longer vacation time, job-sharing
opportunities, and training and
development appeal to all the generations
though for different reasons. For instance,
with training and development, the older
generations want to keep up with the
younger generations while the younger
generations are looking for ways to
develop personally and professionally.
For employers, it is important to avoid
stereotyping
their employees. For instance, old dogs
CAN learn new tricks. In fact, many of the
Boomers and Radio
Babies jump at the opportunity for
continued learning, and can become more
proficient than the younger generations in
some cases. Computer programs and
wireless devices are good examples.
Employers should also take note that
creativity and ethics are still present in the
younger generations, though it may be
packaged a little differently.
The tattoos and body piercings displayed
on many young workers today are a way
for them to express themselves. And many
are task-oriented rather thantime-oriented,
so they feel that the focus should be
on the results and not the process by which
they get there. Because of this, many do
not feel they need tobe in the office from 8
to 5 as long as their goals are met and the
customers are satisfied. Furthermore,
the younger generations do not feel they
should have to "wait their turn" to be
recognized or promoted, but rather they
expect advancement, recognition and
increased responsibility if they have the
skills. Three important things to remember
when trying to build a bridge between the
different generations in your workplace
are:
1. One size does not fit all - remember to
tailor to individual needs. They all want
respect and flexibility; however that means
something different to each generation.
2. Understand and draw upon each
generations unique perspective and
experiences - In doing so, you
will have a broader pool of ideas and
views which will help to create and
maintain a competitive advantage
3. Position your company as one that
values and embraces diversity - by
building a brand of valuing diversity you
will attract the best from all generations.
(Buhrow, n.d.)
From your personal perspective, describe a
discrepancy in pay that would be
legitimate?
I find this is one of the most difficult
questions that
I have had to answer during this course.
Personally, I would say that no form of
discrepancy in pay would
be legitimate. I like many others would
argue that those with higher education
should be paid more than those employees
without. I would then argue that they
are many people in the work force who are
paid based on experience; this married to
education would then create another pay
band if discrepancy pay was to be
deemed as legitimate.
After my ramblings, I can conclude, as I
did last week with the gender pay
discrepancies, that any form of
discrepancy is wrong.
Q4. Why organization needs
managers?

Without a manager, a business, govern

ment, hospital, school or other
organization is merely comprised of
people, resources and budgets. An
effective manager brings life to an
organization by directing people,
gathering resources and creating budgets.
He has the leadership skills to create a
productive environment and accomplish
objectives. As organizations increase
in size, complexity and responsibilities, the
need for leadership skills of managers
continues to evolve.
Increase Revenue
Generating revenue without a sales
manager can lead to unpredictable sales,
which can present a challenge to an
organization's budget. Hiring an
experienced sales manager gives the
organization a sales plan with
objectives. A sales manager analyzes sales
statistics to determine the potential
profitability of the organization's products
and services and identifies
ways to improve the organization's sales
revenue.
Leading the sales team, the sales manager
sets sales goals, develops training
programs and motivates the
team to reach the organization's revenue
objectives.
Retain Talent
An organization's employees carry a pool
of talent.
Without a manager, employees may fail to
fully deliver on their potential in their day-
to-day functions.
A manager has the ability to turn each
employee's strengths into valuable
performances by analyzing and identifying
their knowledge and experience.
He discusses the organization's
expectations and encourage employees to
take initiatives in areas suited to their
strengths to increase the organization's
competitive advantage.
Establish Ethics
Organizations must have a moral and
ethical code for the employer and
employees to follow. Hiring a human
resources manager ensures that the
organization complies with the code to
avoid unethical behaviour such as
discrimination and harassment. A human
resources manager has the responsibility of
ensuring that employers integrate diversity
in their hiring process to include different
age groups, gender and ethnic and racial
backgrounds. They also have the
responsibility of training all staff on what
constitutes
right and wrong behavior in the workplace.
Projects
Without project managers, an organization
may fail to be competitive in the market.
For example, an organization may need to
develop the latest social media strategy or
undertake an information technology
overhaul. Project managers thrive on new
challenges and drive results. Hiring a
certified project manager brings the
expertise of setting goals and time-
management for critical projects. They
know how to work with a team to
accomplish objectives with minimal
disruption on time and on budget.
Q5 What is bureaucracy? Discuss
about Criticisms of Bureaucracy

Criticism of Weberian Bureaucratic

Theory
One critique was Weber's claim that
bureaucratic organizations were based on
rational-legal authority.
Parsons (1947) and Gouldner (1954) note
that Weber said authority rests both in the
"legal incumbancy of office" and on
"technical competence". This works if
superiors have more knowledge and skill,
but often this is not the case.
Thompson notes that in modern
organizations authority is centralized but
ability is decentralized
(Thompson 1961). In fact staff-line
distictions seem to be a structural
resolution of this authority-ability
quandary that Weber overlooked.
Weber also doesn't distinguish between
definitions
and propositions in his model. His list of
distinguishing characteristics are linked
between each other
Udy (1959) found in examining 150
organizations and found no correlation
between the bureaucratic attributes of the
organization and it's rational attributes.
More recent theorists think that earlier
theorists misread Weber and distorted his
views. Weber was defining a formal
rationality that was not necessarily optimal
for efficiency. He realized that
formalization could degenerate into
formalism, and that bureaucratic forms
concentrated power at the top and could
cause an "iron cage" to imprison the
low-level worker in obscurity and
monotonous detail.
103 MBA [Human Resource
Management and Development]

Q1. What is Human Resource

Management? Mention the role of
Human Resource Management

Human Resource Management (HRM) is

the term used to describe formal systems
devised for the management of people
within an organization.
The responsibilities of a human resource
manager fall into three major areas:
staffing, employee compensation and
benefits, and defining/designing
work. Essentially, the purpose of HRM is
to maximize the productivity of an
organization by optimizing
the effectiveness of its employees. This
mandate is unlikely to change in any
fundamental way, despite the ever-
increasing pace of change in the business
world. As Edward L. Gubman observed in
the Journal of Business Strategy, "the basic
mission of human resources will always be
to acquire, develop, and retain talent; align
the workforce with the business;
and be an excellent contributor to the
business. Those three challenges will never
change."
Until fairly recently, an organization's
human
resources department was often consigned
to lower
rungs of the corporate hierarchy, despite
the fact
that its mandate is to replenish and nourish
what is often cited-;legitimately-;as an
organization's greatest resource, it's work
force. But in recent years recognition of
the importance of human resources
management to a company's overall health
has grown dramatically. This recognition
of the importance of HRM extends to
small businesses, for while they do not
generally have the same volume of human
resources requirements as do larger
organizations, they too face personnel
management issues that can have a
decisive impact on business health. As
Irving Burstiner commented in The Small
Business Handbook, "Hiring the right
people-;and training them well-;can often
mean the difference between scratching
out the barest of livelihoods and steady
business growth'¦.
Personnel problems do not discriminate
between small and big business. You find
them in all businesses, regardless of size."
PRINCIPLES OF HUMAN RESOURCE
MANAGEMENT
Business consultants note that modern
human resource management is guided by
several overriding principles. Perhaps the
paramount principle is asimple recognition
that human resources are the most
important assets of an organization; a
business cannot be successful without
effectively managing this resource.
Another important principle, articulated
by Michael Armstrong in his book A
Handbook of Human Resource
Management, is that business
success "is most likely to be achieved if
the personnel policies and procedures of
the enterprise are closely linked with, and
make a major contribution to, the
achievement of corporate objectives and
strategic plans." A third guiding principle,
similar in scope, holds that it is the HR's
responsibility to find, secure, guide, and
develop employees whose talents and
desires are compatible with the operating
needs and future goals of the company.
Other HRM factors that shape corporate
culture-;whether by encouraging
integration and cooperation across the
company, instituting quantitative
performance measurements, or
taking some other action-;are also
commonly cited as key components in
business success. HRM, summarized
Armstrong, "is a strategic approach to the
acquisition, motivation, development and
management of the organization's human
resources. It is devoted to shaping an
appropriate corporate culture, and
introducing programs which reflect and
support the core values of the enterprise
and ensure its success."
POSITION AND STRUCTURE OF
HUMAN RESOURCE
MANAGEMENT
Human resource department
responsibilities
can be subdivided into three areas:
individual,
organizational, and career. Individual
management entails helping employees
identify their strengths and weaknesses;
correct their shortcomings; and
make their best contribution to the
enterprise. These duties are carried out
through a variety of activities
such as performance reviews, training, and
testing.
Organizational development, meanwhile,
focuses on fostering a successful system
that maximizes human
(and other) resources as part of larger
business
strategies. This important duty also
includes the
creation and maintenance of a change
program,which allows the organization to
respond to evolving outside and internal
influences. Finally, there is the
responsibility of managing career
development. Thisentails matching
individuals with the most suitable
jobs and career paths within the
organization.
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Human resource management functions
are ideally positioned near the theoretic
center of the
organization, with access to all areas of the
business.
Since the HRM department or manager is
charged with managing the productivity
and development of workers at all levels,
human resource personnel should
have access to-;and the support of-;key
decision makers. In addition, the HRM
department should be situated in such a
way that it is able to communicate
effectively with all areas of the company.
HRM structures vary widely from business
to business, shaped by the type, size, and
governing philosophies of the organization
that they serve. But most organizations
organize HRM functions around the
clusters of people to be helped-;they
conduct recruiting, administrative, and
other duties in acentral location. Different
employee development groups for each
department are necessary to train
and develop employees in specialized
areas, such as sales, engineering,
marketing, or executive education.
In contrast, some HRM departments are
completely independent and are organized
purely by function. The same training
department, for example, serves all
divisions of the organization.
In recent years, however, observers have
cited a
decided trend toward fundamental
reassessments
of human resources structures and
positions. "A cascade of changing business
conditions, changing organizational
structures, and changing leadership
has been forcing human resource
departments to alter their perspectives on
their role and function almost overnight,"
wrote John Johnston in Business
Quarterly. "Previously, companies
structured themselves on a centralized and
compartmentalized basis-;head office,
marketing, manufacturing,
shipping, etc. They now seek to
decentralize and to integrate their
operations, developing cross-functional
teams'¦. Today, senior management expects
HR to move beyond its traditional,
compartmentalized 'bunker' approach to a
more integrated, decentralized support
function." Given this change in
expectations, Johnston noted that "an
increasingly common trend in human
resources is to decentralize the HR
function and make it accountable to
specific line management. This increases
the likelihood that
HR is viewed and included as an integral
part of the business process, similar to its
marketing, finance,and operations
counterparts. However, HR will retain
a centralized functional relationship in
areas where specialized expertise is truly
required," such as compensation and
recruitment responsibilities.
HUMAN RESOURCE MANAGEMENT-
;KEY
RESPONSIBILITIES
Human resource management is concerned
with the development of both individuals
and the organization in which they operate.
HRM, then, is engaged not
only in securing and developing the talents
of individual workers, but also in
implementing programs that enhance
communication and cooperation
between those individual workers in order
to nurture organizational development.
The primary responsibilities associated
with human resource management include:
job analysis and staffing, organization and
utilization of work force, measurement and
appraisal of work force performance,
implementation of reward systems for
employees, professional development of
workers, and maintenance of work force.
Job analysis consists of determining-;often
with the help of other company areas-;the
nature and responsibilities of various
employment positions.
This can encompass determination of the
skills and experiences necessary to
adequately perform in a position,
identification of job and industry trends,
and anticipation of future employment
levels and skill requirements. "Job analysis
is the cornerstone of HRM practice
because it provides valid information
about jobs that is used to hire and promote
people, establish wages, determine training
needs, and make other important HRM
decisions," stated ThomasS. Bateman and
Carl P. Zeithaml in Management:
Function and Strategy. Staffing,
meanwhile, is the actual process of
managing the flow of personnel
into, within (through transfers and
promotions), andout of an organization.
Once the recruiting part of the staffing
process has been completed, selection is
accomplished through job postings,
interviews, reference checks, testing, and
other tools.
Organization, utilization, and maintenance
of a company's work force is another key
function of HRM.
This involves designing an organizational
framework that makes maximum use of an
enterprise's human resources and
establishing systems of communication
that help the organization operate in a
unified manner.
Other responsibilities in this area include
safety and health and worker-management
relations.
Human resource maintenance activities
related to safety and health usually entail
compliance with federal laws that protect
employees from hazards in the workplace.
These regulations are handed down
from several federal agencies, including
the Occupational Safety and Health
Administration (OSHA) and the
Environmental Protection Agency (EPA),
and various state agencies, which
implement laws in the realms of worker's
compensation, employee protection,
and other areas. Maintenance tasks related
to worker-management relations primarily
entail: working with labor unions;
handling grievances related to
misconduct, such as theft or sexual
harassment; and
devising communication systems to foster
cooperation and a shared sense of mission
among employees.
Performance appraisal is the practice of
assessing employee job performance and
providing feedback to those employees
about both positive and negative aspects of
their performance. Performance
measurements are very important both for
the organization and the individual, for
they are the primary data used in
determining salary increases,
promotions, and, in the case of workers
who perform
unsatisfactorily, dismissal.
Reward systems are typically managed by
HR areas
as well. This aspect of human resource
management
is very important, for it is the mechanism
by which
organizations provide their workers with
rewards
for past achievements and incentives for
high
performance in the future. It is also the
mechanism
by which organizations address problems
within
their work force, through institution of
disciplinary
measures. Aligning the work force with
company
goals, stated Gubman, "requires offering
workers an
employment relationship that motivates
them to take
ownership of the business plan."
Employee development and training is
another vital
responsibility of HR personnel. HR is
responsible for
researching an organization's training
needs, and for
initiating and evaluating employee
development programs
designed to address those needs. These
training
programs can range from orientation
programs,
which are designed to acclimate new hires
to the
company, to ambitious education programs
intended
to familiarize workers with a new software
system.
"After getting the right talent into the
organization,"
wrote Gubman, "the second traditional
challenge to
human resources is to align the workforce
with the
business-;to constantly build the capacity
of the
workforce to execute the business plan."
This is done
through performance appraisals, training,
and other
activities. In the realm of performance
appraisal,
HRM professionals must devise uniform
appraisal
standards, develop review techniques, train
managers
to administer the appraisals, and then
evaluate
and follow up on the effectiveness of
performance
reviews. They must also tie the appraisal
process into
compensation and incentive strategies, and
work to
ensure that federal regulations are
observed.
Responsibilities associated with training
and development
activities, meanwhile, include the
determination,
design, execution, and analysis of
educational
programs. The HRM professional should
be aware
of the fundamentals of learning and
motivation,
and must carefully design and monitor
training
and development programs that benefit the
overall
organization as well as the individual. The
importance
of this aspect of a business's operation can
hardly be
overstated. As Roberts, Seldon, and
Roberts indicated
in Human Resources Management, "the
quality of
employees and their development through
training
and education are major factors in
determining
long-term profitability of a small
business'¦. Research
has shown specific benefits that a small
business
receives from training and developing its
workers,
including: increased productivity; reduced
employee
turnover; increased efficiency resulting in
financial
gains; [and] decreased need for
supervision."
Meaningful contributions to business
processes are
increasingly recognized as within the
purview of active
human resource management practices. Of
course,
human resource managers have always
contributed
to overall business processes in certain
respects-;by
disseminating guidelines for and
monitoring
employee behavior, for instance, or
ensuring that the
organization is obeying worker-related
regulatory
guidelines. Now, increasing numbers of
businesses
are incorporating human resource
managers into
other business processes as well. In the
past, human
resource managers were cast in a support
role in
which their thoughts on cost/benefit
justifications
and other operational aspects of the
business were
rarely solicited. But as Johnston noted, the
changing
character of business structures and the
marketplace
are making it increasingly necessary for
business
owners and executives to pay greater
attention to
the human resource aspects of operation:
"Tasks
that were once neatly slotted into well-
defined and
narrow job descriptions have given way to
broad
job descriptions or role definitions. In
some cases,
completely new work relationships have
developed;
telecommuting, permanent part-time roles
and
outsourcing major non-strategic functions
are
becoming more frequent." All of these
changes, which
human resource managers are heavily
involved in, are
important factors in shaping business
performance.
THE CHANGING FIELD OF HUMAN
RESOURCE
MANAGEMENT
In recent years, several business trends
have had
a significant impact on the broad field of
HRM.
Chief among them was new technologies.
These new
technologies, particularly in the areas of
electronic
communication and information
dissemination and
retrieval, have dramatically altered the
business
landscape. Satellite communications,
computers
and networking systems, fax machines,
and other
devices have all facilitated change in the
ways in
which businesses interact with each other
and their
workers. Telecommuting, for instance, has
become
a very popular option for many workers,
and HRM
professionals have had to develop new
guidelines for
this emerging subset of employees.
Changes in organizational structure have
also
influenced the changing face of human
resource
management. Continued erosion in
manufacturing
industries in the United States and other
nations,
coupled with the rise in service industries
in those
countries, have changed the workplace, as
has the
decline in union representation in many
industries
(these two trends, in fact, are commonly
viewed
as interrelated). In addition, organizational
philosophies have undergone change.
Many companies
have scrapped or adjusted their traditional,
hierarchical organizational structures in
favor of
flatter management structures. HRM
experts note
that this shift in responsibility brought with
it a need
to reassess job descriptions, appraisal
systems, and
other elements of personnel management.
A third change factor has been accelerating
market
globalization. This phenomenon has served
to increase
competition for both customers and jobs.
The latter
development enabled some businesses to
demand
higher performances from their employees
while
holding the line on compensation. Other
factors that
have changed the nature of HRM in recent
years include
new management and operational theories
like
Total Quality Management (TQM), rapidly
changing
demographics, and changes in health
insurance and
federal and state employment legislation.
SMALL BUSINESS AND HUMAN
RESOURCE MANAGEMENT
A small business's human resource
management
needs are not of the same size or
complexity of those
of a large firm. Nonetheless, even a
business that
carries only two or three employees faces
important
personnel management issues. Indeed, the
stakes
are very high in the world of small
business when it
comes to employee recruitment and
management. No
business wants an employee who is lazy or
incompetent
or dishonest. But a small business with a
work force of
half a dozen people will be hurt far more
by such an
employee than will a company with a work
force that
numbers in the hundreds (or thousands).
Nonetheless,
"most small business employers have no
formal
training in how to make hiring decisions,"
noted Jill
A. Rossiter in Human Resources:
Mastering Your Small
Business. "Most have no real sense of the
time it takes
nor the costs involved. All they know is
that they need
help in the form of a 'good' sales manager,
a 'good'
secretary, a 'good' welder, and so on. And
they know
they need someone they can work with,
who is willing to
put in the time to learn the business and do
the job. It
sounds simple, but it isn't."
Before hiring a new employee, the small
business
owner should weigh several
considerations. The first
step the small business owner should take
when
pondering an expansion of employee
payroll is to
honestly assess the status of the
organization itself.
Are current employees being utilized
appropriately?
Are current production methods effective?
Can the
needs of the business be met through an
arrangement
with an outside contractor or some other
means? Are
you, as the owner, spending your time
appropriately?
As Rossiter noted, "any personnel change
should
be considered an opportunity for
rethinking your
organizational structure."
Small businesses also need to match the
talents of
prospective employees with the company's
needs.
Efforts to manage this can be
accomplished in a
much more effective fashion if the small
business
owner devotes energy to defining the job
and actively
taking part in the recruitment process. But
the
human resource management task does not
end with
the creation of a detailed job description
and the
selection of a suitable employee. Indeed,
the hiring
process marks the beginning of HRM for
the small
business owner.
Small business consultants strongly urge
even the
most modest of business enterprises to
implement
and document policies regarding human
resource
issues. "Few small enterprises can afford
even a
fledgling personnel department during the
first few
years of business operation,"
acknowledged Burstiner.
"Nevertheless, a large mass of personnel
forms and
data generally accumulates rather rapidly
from
the very beginning. To hold problems to a
minimum,
specific personnel policies should be
established as
early as possible. These become useful
guides in all
areas: recruitment and selection,
compensation
plan and employee benefits, training,
promotions
and terminations, and the like." Depending
on the
nature of the business enterprise (and the
owner's
own comfort zone), the owner can even
involve his
employees in this endeavor. In any case, a
carefully
considered employee handbook or
personnel manual
can be an invaluable tool in ensuring that
the small
business owner and his or her employees
are on the
same page. Moreover, a written record can
lend a
small business some protection in the
event that its
management or operating procedures are
questioned
in the legal arena.
Some small business owners also need to
consider
training and other development needs in
managing
their enterprise's employees. The need for
such
educational supplements can range
dramatically. A
bakery owner, for instance, may not need
to devote
much of his resources to employee
training, but a firm
that provides electrical wiring services to
commercial
clients may need to implement a system of
continuing
education for its workers in order to
remain viable.
Finally, the small business owner needs to
establish
and maintain a productive working
atmosphere
for his or her work force. Employees are
far more
likely to be productive assets to your
company if
they feel that they are treated fairly. The
small
business owner who clearly communicates
personal
expectations and company goals, provides
adequate
compensation, offers meaningful
opportunities for
career advancement, anticipates work force
training
and developmental needs, and provides
meaningful
feedback to his or her employees is far
more likely to
be successful than the owner who is
neglectful in any
of these areas.
Q2. Discuss the type of interview
The Telephone Interview
Often companies request an initial
telephone
interview before inviting you in for a face
to face
meeting in order to get a better
understanding of the
type of candidate you are. The one benefit
of this is
that you can have your notes out in front of
you. You
should do just as much preparation as you
would for
a face to face interview, and remember that
your first
impression is vital. Some people are better
meeting
in person than on the phone, so make sure
that you
speak confidently, with good pace and try
to answer
all the questions that are asked.
The Face-to-Face Interview
This can be a meeting between you and
one member of
staff or even two members.
The Panel Interview
These interviews involve a number of
people sitting as
a panel with one as chairperson. This type
of interview
is popular within the public sector.
The Group Interview
Several candidates are present at this type
of
interview. You will be asked to interact
with each other
by usually a group discussion. You might
even be given
a task to do as a team, so make sure you
speak up and
give your opinion.
The Sequential Interview
These are several interviews in turn with a
different
interviewer each time. Usually, each
interviewer asks
questions to test different sets of
competencies.
However, if you are asked the same
questions, just
make sure you answer each one as fully as
the
previous time.
The Lunch / Dinner Interview
This type of interview gives the employer
a chance to
assess your communication and
interpersonal skills
as well as your table manners! So make
sure you order
wisely (no spaghetti Bolognese) and make
sure you
don’t spill your drink (non-alcoholic of
course!).
All these types of interviews can take on
different
question formats, so once you’ve checked
with your
potential employer which type of interview
you’ll be
attending, get preparing!
Here’s a list of interview formats that you
should
prepare your answers for;
Competency Based Interviews
These are structured to reflect the
competencies the
employer is seeking for the particular job.
These will
usually be detailed in the job spec so make
sure you
read it through, and have your answers
ready for
questions such as “Give me an example of
a time you
worked as a team to achieve a common
goal.” For more
examples of competency based questions
click here.
Formal / Informal Interviews
Some interviews may be very formal,
others may be
very informal and seem like just a chat
about your
interests. However, it is important to
remember that
you are still being assessed, and topics
should be
friendly and clean!
Portfolio Based Interviews
In the design / digital or communications
industry it
is likely that you will be asked to take your
portfolio
along or show it online. Make sure all your
work is up
to date without too little or too much.
Make sure that
your images if in print are big enough for
the interviewer
to see properly, and always test your
online
portfolio on all Internet browsers before
turning up.
The Second Interview
You’ve passed the first interview and
you’ve had the
call to arrange the second.
Congratulations! But
what else is there to prepare for? You did
as much
as you could for the first interview! Now is
the time
to look back and review. You maybe asked
the same
questions you were asked before, so
review them and
brush up your answers. Review your
research about the
company; take a look at the ‘About Us’
section on their
website, get to know their client base,
search the latest
news on the company and find out what
the company
is talking about.
General Interview Preparation
Here’s a list of questions that you should
consider
your answers for when preparing…
• Why do you want this job?
• Why are you the best person for the job?
• What relevant experience do you have?
• Why are you interested in working for
this company?
• What can you contribute to this
company?
• What do you know about this company?
• What challenges are you looking for in a
position?
• Why do you want to work for this
company?
• Why should we hire you?
• What are your salary requirements?
Q3. How can you apply training and
bonus motivation techniques to
motivation theory?

Since the industrial revolution and the

theories of
Fredrick Taylor, employers have tried
countless
ways to improve employee performance
and drive
motivation and moral. Company
environments
differ significantly. And as I discussed in
Under
New Management, The nature of
knowledge work
has rendered much of Taylorism
inadequate. Some
organizations are driving employees
through fierce
competition while others strive to ensure a
congenial,
team-based atmosphere. No one can claim
with total
assurance that they’ve found a method for
driving
performance that works consistently.
Motivating your employees is a delicate
and
purposeful challenge that requires more
than an
annual review or jotting a few notes in
someone’s
personnel file. Just like getting in shape or
learning
a new language, bolstering the motivation
and
performance levels of your employees
won’t happen
overnight. Here are six ways you can
improve
performance and motivation in your
workplace.
1. Make Expectations Clear
Employees without goals will be naturally
aimless.
Provide them with clear achievable goals
and make
sure there are measurable standards in
place to
evaluate their performance. Victor
Vroom’s work
on expectancy theory supports the concept
that
employees must know what action they are
expected
to take and that it will yield the desired
performance.
Your employees should understand what
they are
expected to do, how they are expected to
do it, and
how they will be judged on it.
2. Provide Continuous Feedback
Immediate, continuous feedback lets an
employee
know that their actions affect the company.
It’s
hard for you, and the employee, to
remember specific
incidents when employee performance
review time
rolls around. Goal-setting theory predicts
(quite
obviously) that employees are motivated
by setting
goals and by receiving continuous
feedback on
where they stand relative to those goals.
More recent
research shows just how motivating it can
be when
employees know they are making progress.
Always be specific in your feedback. For
example,
instead of telling an employee he, “did a
great job,”
compliment him on the way he organized
his presentation,
the citations he used, or his public
speaking style.
He’ll be more likely to apply these
strengths to his next
project if you point them out specifically.
3. Correct Privately
Most people are not motivated by negative
feedback, especially if they feel it’s
embarrassing.
The only acceptable place to discuss an
ongoing,
performance-related issue or correcting a
recent,
specific error is in the employee’s office or
your own,
with the door closed.
Don’t think of correcting an employee’s
performance
or behavior as punitive. Instead, consider it
a
learning opportunity for the employee.
Keep an
open mind, remember Deming’s 85/15
rule, which
suggests that a majority of performance
problems
are actually outside of an employees
control. If it is
something the employee can change, it’s
up to you to
present the issue in such a way that the he
feels he
can correct the mistake.
4. Believe in Your Employees
Whether you tell him so during an
employee performance
review, or in the breakroom, an employee
whose
boss constantly calls him worthless, or a
screw-up
will feel a lot of emotions. He will not,
however, feel
particularly motivated to improve his
performance.
Present weakness or errors in the context
of, “I know
you can do better. You’re smart and
capable…and
that’s why I expect more from you.” The
perception of
leaders’ trust is a key component of
transformational
leadership.
Encourage your leadership team to take
this same
approach when you’re trying to motivate
your
employees for a major event, “This is the
most
talented, hardest working group I’ve ever
had, and
that’s why I know you can win this sales
competition.”
5. Praise Publicly
Feeling under-appreciated encourages
complacency
– there’s a reason so many companies
celebrate an
Employee of the Month. People love
praise; they thrive
on it. Some research even suggested we’re
willing to
sacrifice incentive bonuses for public
recognition.
Make it a standard practice in your office
to
recognize positive people and trends
within the
business.
Announce publicly when one of your
employees
made a particularly outstanding
presentation,
sale, or other notable achievement. Tie an
incentive
to accolades, such as a bonus or a gift
certificate.
Praising your employees in front of others
helps
motivate their continued stellar
performance.
6. Make Rewards Achievable
Everyone is familiar with the annual bonus
trip awarded
to the top-performing employee. The
problem
is, such rewards usually go to one or two
employees.
This leaves the rest of your staff feeling
like there’s
not much point in working hard because
the same
few people always reap the rewards.
Remember the
other end of Vroom’s expectancy equation,
which
offers that individuals must also see the
desired
performance and linked reward as
possible.
Set up a series of smaller rewards
throughout the
year to motivate ongoing performance
excellence. For
example, instead of an annual trip, award
several
three-day getaways for each quarter. Vary
the basis
for the awards. Top sales might be one
category, but
so can top research or most diligent.
Recognize that
several types of excellence motivate your
employees to
focus on additional areas of their
performance.

Q4. What influence performance?

Elaborate

An employee’s performance in the office

is influenced
by a number of internal and external
factors. A
person needs to receive a certain level of
support
from management and company leaders to
do his
best work. He also must enjoy his job and
come to work
every day focused on his assignments and
ready to do
his best work.
Personal Issues
If an employee is experiencing troubles at
home,
he may not be able to achieve optimal
performance
at work. Factors such as marital and other
family
troubles, and financial problems can
distract a
person. Health concerns, including medical
conditions
or struggles with substance abuse, can also
monopolize
most of a person’s focus, so that he doesn’t
have much
left to give at work.
Job Suitability
When a person is well-suited for a job,
she’s more
likely to become a high performer than
someone who
is not prepared to take on the role. A
worker with
the required skills and experience to
perform the
expected duties is eager to excel at her job,
and her
performance often reflects this enthusiasm.
Motivation to Succeed
A company culture that recognizes and
celebrates
success motivates employees to work hard.
When
achievements are recognized, either with
monetary
incentives, promotions or other rewards, a
person
is encouraged to perform to his highest
standards.
Praise for a job well done makes a worker
feel
appreciated and valued, which usually is
reflected in
his performance.
Working Conditions
Job performance depends highly on the
working
conditions under which the employee is
expected to
perform. When a worker has plenty of
time, appropriate
equipment and necessary support to
complete an
assignment, he’s better able to produce
high-quality
work. However, when he’s given
inadequate conditions
to work with, the results can be less than
stellar.
Job Training
An employee should receive appropriate
training prior
to beginning work at a new position and on
an ongoing
basis thereafter. If he doesn’t receive initial
training,
he won’t properly learn processes that are
in place
to complete work according to company
standards.
Similarly, offering continuing education
programs to
a worker who has held the same position
for a number
of years allows him to keep up with new
practices in
the field, helping him to keep his work at
or above
industry standards and company
expectations.
Performance Feedback
A worker relies on her supervisor to let her
know
if her work meets expectations. It’s the
manager’s
responsibility to praise an employee for a
job
well done or let her know when her work
needs
improvement. Without this valuable
feedback, she will
likely be confused on whether or not her
performance
is at an acceptable level.

Q5. Discuss the benefits to a smoke-

free work environment and sample
policy

Why should workplaces be smoke-free?

Smoking harms health: Smoking harms the
health
of smokers and those around them.
Smokers are at
far higher risks of strokes, heart attacks
and other
cardiovascular diseases; cancers of the
lungs, mouth,
larynx, bladder, pancreas, kidneys and
stomach; emphysema,
bronchitis, and tuberculosis. These
diseases
cause serious illness, disability and
premature death.
Tobacco causes nearly 5 million deaths
worldwide
each year, and the numbers are rising fast.
Tobacco smoke also harms non-smokers
exposed to
so-called second-hand smoke or
environmental tobacco
smoke (ETS). In addition to smell and
irritation
to eyes, ETS exposure increases the risk of
lung cancer
and cardio-vascular and respiratory
diseases. In the
USA alone, each year ETS kills an
estimated 35,000 to
65,000 adult non-smokers from heart
disease and
3,000 non-smokers from lung cancer
(California
Environmental Protection Agency, 1997
and U.S.
Environmental Protection Agency, 1993).
This is a
small fraction of global deaths from ETS.
ETS exposure is common in workplaces.
In 1996, an
estimated 130 million adult non-smokers
in China
were exposed to workplace ETS. In the
UK in 1999,
more than 3 million non-smokers were
continuously
or frequently exposed to tobacco smoke at
work. In
France, where there are laws restricting
smoking in
public spaces, 40% of employees are still
exposed to
ETS. ETS can interact with chemicals and
radiation in
workplaces to produce an additive or
multiplicative
effect and increase significantly the risk of
many
occupational diseases. In some countries,
employers
have a legal responsibility to protect the
health of
their employees. Smoke-free workplaces
can reduce
employers’ legal liability, create safer
working
environments, improve workers’ health
and enhance
corporate image.
top
Employers who keep their workplaces
smoke-free and
help employees to quit enjoy net benefits
Smoking costs employers money:
Employers bear
direct and indirect costs as a result of
employees’
smoking, including:
More employee absenteeism
Decreased productivity on-the-job
Increased early retirement due to ill health
Higher annual health-care costs for
smokers and
higher health insurance costs
Higher life insurance premiums
Higher maintenance and cleaning costs
Higher risk of fire damage, explosions and
other
accidents related to smoking
Higher fire insurance premiums.
These costs add up to significant amounts.
A 1996
study of Scottish workplaces estimated the
total
related costs of employee smoking in
Scotland at
around three quarters of a billion US$ per
year
(smoking related absence: $60 million;
productivity
losses: $675 million; losses from fire: $6
million
(Parrot et al., 1996). A 1995 Canadian
study estimated
the cost to employers at $3,022 per smoker
per
year (in 2002 US$; adjusted for inflation
from the
original estimate of $2,565 in 1995 US$.
Conference
Board of Canada). Cost data from
developing
countries are lacking. The adverse effects
of ETS
exposure on health and productivity of
non-smoking
employees add to employers’ smoking-
related costs.
The benefits from making workplaces
smoke-free
are far larger than the costs. Cessation
programs
are relatively low-cost and yield financial
returns
over the long run that far outweigh their
costs. A
theoretical model for the US estimates
potential long
term net benefits of a smoking cessation
program at
around $4.5 million for large employers
(Warner et
al., 1996). Fears in the hospitality industry
(hotels,
restaurants etc.) that smoking bans may
damage
business interests
are largely unfounded. Studies of hotels,
bars and
restaurants in several U.S. states, Canada
and
Australia all show that smoking bans do
not result in
business drop-off.
top
What can employers do about workplace
smoking?
Employers can protect the health of their
employees
and reduce smoking-related costs by
making
workplaces smoke-free, and implementing
programs
to encourage and help smokers to quit.
Smoke-free
workplaces reduce ETS exposure for all
workers,
reduce employees’ daily tobacco
consumption,
increase quit rates, and reduce cleaning
costs and
fire risk. Smoke free policies are easy to
implement.
Compliance is usually high, especially if
employees
(smokers and non-smokers) have helped
develop the
policy and are well-informed about its
rationale.
Smokers are usually the minority. Surveys
show that
many smokers and almost all non-smokers
support
clean air policies.
The goal should be a completely smoke-
free
workplace. There is no safe level of
exposure to ETS.
Ventilation cannot “clear the air” and
protect workers
from exposure. Enclosed smoking rooms
may be used
as a transitional arrangement, but should
be phased
out as quickly as feasible. Furthermore,
provision of
well-ventilated smoking rooms can be
costly.
On-site smoking cessation programs make
it easier
to implement smoke-free workplaces and
increase
the benefits for employees and employers.
Worksite
cessation programs are effective in
reducing smoking
prevalence among employees. A meta-
analysis of 20
studies of worksite smoking cessation
programs found
an average quit rate after 12 months of
13%, much
higher than the national average among all
smokers
of 2.5% (US, 1990 data). Quit rates were
even higher
for heavy smokers. Cessation programs are
relatively
low-cost and are highly cost-effective
(Novotny et
al., 2000).
As people become better informed about
the harm
that tobacco products cause to smokers and
those who
live and work with them, smoke-free
environments
are becoming the norm. Most airlines,
many
workplaces and other enclosed public
places are now
smoke-free. There is a global trend
towards safer,
cleaner indoor environments.
Goals: Protect worksers from harmful
effects of
second-hand smoke; encourage smokers to
quit, to
gain health benefits for employees and
economic benefits
for employers.Main
ActivitiesBeneficiaries/Target
Groups Indicators Make workplaces
smoke-free,
protect employees from second-hand
smoke exposure
establish a written policy with active
participation of
employees and managers
communicate the policy and its rationale
clearly and
sanctions for non-compliance
implement the policy according to agreed
timetable
monitor, enforce and adjust the policy if
necessary
decide whether the policy should apply to
customers,
visitors and clinets (preferably yes)
all employees (including managers)
customers, visitors and clients
written policy exists that clearly states
rationale, time
frame, and where - if at all - smoking is
permitted in
work place.
% of employees exposed to ETS at work
Help employees to quit smoking, reduce
risks of
disease and premature death caused by
smoking
for workers who want to quit, ensure
access to trained
counsellors, cessation support and
pharmacological
treatments, including nicotine replacement
therapy
provide information to all workers on
benefits of
quitting and how to support colleagues
employees who smoke
% of smokers who attempt to quit each
year
% of quitters still not smoking 12 months
after
quitting
% of employees who smoke (and
decreases in this
prevalence)
top
How to make a workplace smoke-free
Establish a workplace committee. The
committee
should include representatives from all
parts of
the organization. Senior management
support and
commitment are crucial for the success of
the policy.
Involve employees and workers’
organizations. Involving employees fully
is essential
to ensure their cooperation in
implementing the policy
and to incorporate their suggestions in the
program.
It is important to know the attitudes of
employees
and management towards smoking in the
workplace
before embarking on a smoke-free
initiative. Use
questionnaires, meetings and focus groups
to gather
the necessary information. Include
representatives
from across the organization. Listen to
smokers and
non-smokers and make sure that employee
groups
who have high rates of smoking are fully
engaged.
Formulate a written policy. The committee
should formulate
a policy that clearly states objectives and
how
to achieve them. If possible, integrate the
policy with
other programs and procedures related to
health and
safety in the workplace. The policy should
include:
purpose of the policy (to avoid the harmful
effects of
smoking and ETS on health)
a link between the smoke-free policy and
corporate
values (e.g. performance or employees as
an asset)
time frame for implementation
a clear statement of whether smoking is
permitted on
the premises and if so where
number and duration of acceptable
smoking breaks
(breaks should not exceed those for non-
smokers)
details of support available for smokers,
such as
counselling and cessation support
disciplinary actions or consequences of
non-compliance
names of contact persons who can answer
questions
related to the policy.
Communicate the policy to employees.
Inform employees
from the outset and well before
implementation.
Focus on smoke, not the smoker, and on
health
and safety, not on individual rights.
Emphasizing
benefits of a clean air policy for both
smokers and
nonsmokers is less confrontational and
probably
more acceptable than emphasizing
individual rights
of nonsmokers. Use available
communication tools to
reach out to all employees, especially
supervisors who
will need to implement the policy, and
smokers, who
will need to adapt to the changes.
Provide information and support to
smokers. Provide
employees with information about the
risks of smoking
and benefits of quitting. Use the
organization’s
newsletter, posters, flyers, email and the
intranet to
deliver the information. Offer practical
advice on
how to quit. Provide support to smokers
willing to quit,
which can include time off work to attend
counselling
and cessation groups, and access to
pharmacological
cessation products such as nicotine
replacement therapy
or bupropion. Quitting is very difficult
because
nicotine is highly addictive; these products
increase
the success rate of quit attempts. Most
smokers make
4–11 quit attempts before finally
succeeding.
Determine disciplinary measures. Develop
a written
disciplinary process and communicate it
clearly to all
employees. Monitor to ensure proper
enforcement by
managers.
Follow a time table for implementation.
The time
table should have clear stages. After the
policy is
announced, a transition period is required
before
implementation starts to give employees
time to adapt
to the new environment. The time frame
should not
be too long, lest momentum is lost.
Development and
implementation should generally take 4–12
months.
Provide training. Train middle managers
and
supervisors to communicate and enforce
the policy.
Provide training to workers’
representatives and peer
educators on how to stop smoking and
how to provide
support for colleagues. Train health and
safety
professionals to provide advice to smokers
or refer
workers to available cessation services in-
house or to
services outside the workplace.
Evaluate and monitor implementation.
Periodically
assess whether the policy is achieving its
objectives.
Solicit staff views and review any problem
areas, and
decide whether the policy needs updating.
Review is
recommended every 12–18 months.

104 MBA [MARKETING

MANAGEMENT]
Q1. What are the five different
marketing management orientations?

What is Marketing Management?

Marketing management is a process of
managing the marketing process of
company products. Every company has a
different strategy for the customer,
for example, a company produces on a
large scale that reduces the per unit cost
that will help in sales and another company
focus on the quality product which leads to
sales of that product.
Marketing Management Orientations
5 Marketing Management Orientations
Production Concept
This is the oldest concept of marketing
under this
concept the company focus on production
whatever
they produce that is sold in the market. in
this
concept, they don’t focus on what
customer need.
large production means the product so
cheap and
affordable that will be sold in the market.
The main
disadvantage of this concept is that the
customer
not always purchase the easy and cheap
available
product
Product Concept
production concept focuses on the better
quality
of the product. as they think the better
product
means the customer buy the product easily.
but the
companies do not care about the customer
need and
want. they produce the product as the best
of there
knowledge.
the company thinks that the good quality
of the
product will be sold easily but in reality,
the only
quality of the product does not matter that
much the
price is also matter
Selling Concept
In selling concept the marketers think that
the
production and quality of the product do
not lead to
the sale so they start attracting the
customer towards
them. The product needs to be sold by the
salesman.
But the sales of the product does not mean
the long
term growth as the product is sold force-
fully and
the uses of that product are not good that
lead the
decrease in the reputation of the company
in the
market
Marketing Concept
In the marketing concept, companies start
to focus
on the customer need and what customer
wants and
how to satisfy their need. The company
stops selling
those products what they produce they
change the
production according to the customer need
and
wants. this is the first concept for the long
term
growth of the company. the company focus
on the
long term profit and survival in the market
but the
drawback of this concept there is no
attention is paid
to social welfare
Societal Marketing Concept
In this concept, the company focus on the
satisfaction
of the customer but also the society will
accept it
or not. focus on future generations use of
resources
on the ground they start the use of solar
power form
the thermal power because of renewable
energy.
i.e, the company produce gas stove the
uses less LPG
which will help in customer satisfaction
and social
welfare because it makes less pollution
nowadays the
Societal Marketing Concept is used by the
marketers
and some firm use the marketing concept.
but the
government force the company uses the
Societal
Marketing Concept by making rules for
CSR (corporate
social responsibility)

Q2. Discuss the characteristics

affecting Consumer behavior

Consumer behavior refers to the selection,

purchase
and consumption of goods and services for
the
satisfaction of their wants. There are
different
processes involved in the consumer
behavior. Initially
the consumer tries to find what
commodities he would
like to consume, then he selects only those
commodities
that promise greater utility. After selecting
the
commodities, the consumer makes an
estimate of
the available money which he can spend.
Lastly, the
consumer analyzes the prevailing prices of
commodities
and takes the decision about the
commodities he
should consume. Meanwhile, there are
various other
factors influencing the purchases of
consumer such
as social, cultural, personal and
psychological. The
explanation of these factors is given below.
1. Cultural Factors
Consumer behavior is deeply influenced
by cultural
factors such as: buyer culture, subculture,
and social
class.
Culture
Basically, culture is the part of every
society and is
the important cause of person wants and
behavior.
The influence of culture on buying
behavior varies
from country to country therefore
marketers have to
be very careful in analyzing the culture of
different
groups, regions or even countries.
Subculture
Each culture contains different subcultures
such
as religions, nationalities, geographic
regions,
racial groups etc. Marketers can use these
groups by
segmenting the market into various small
portions.
For example marketers can design
products according
to the needs of a particular geographic
group.
Social Class
Every society possesses some form of
social class which
is important to the marketers because the
buying
behavior of people in a given social class
is similar.
In this way marketing activities could be
tailored
according to different social classes. Here
we should
note that social class is not only
determined by income
but there are various other factors as well
such as:
wealth, education, occupation etc.
2. Social Factors
Social factors also impact the buying
behavior
of consumers. The important social factors
are:
reference groups, family, role and status.
Reference Groups
Reference groups have potential in
forming a person
attitude or behavior. The impact of
reference groups
varies across products and brands. For
example if
the product is visible such as dress, shoes,
car etc
then the influence of reference groups will
be high.
Reference groups also include opinion
leader (a
person who influences other because of his
special
skill, knowledge or other characteristics).
Family
Buyer behavior is strongly influenced by
the member
of a family. Therefore marketers are trying
to find
the roles and influence of the husband,
wife and
children. If the buying decision of a
particular
product is influenced by wife then the
marketers will
try to target the women in their
advertisement. Here
we should note that buying roles change
with change
in consumer lifestyles.
Roles and Status
Each person possesses different roles and
status in
the society depending upon the groups,
clubs, family,
organization etc. to which he belongs. For
example
a woman is working in an organization as
finance
manager. Now she is playing two roles,
one of finance
manager and other of mother. Therefore
her buying
decisions will be influenced by her role
and status.
3. Personal Factors
Personal factors can also affect the
consumer
behavior. Some of the important personal
factors
that influence the buying behavior are:
lifestyle,
economic situation, occupation, age,
personality and
self concept.
Age
Age and life-cycle have potential impact
on the
consumer buying behavior. It is obvious
that the
consumers change the purchase of goods
and services
with the passage of time. Family life-cycle
consists of
different stages such young singles,
married couples,
unmarried couples etc which help
marketers to
develop appropriate products for each
stage.
Occupation
The occupation of a person has significant
impact
on his buying behavior. For example a
marketing
manager of an organization will try to
purchase
business suits, whereas a low level worker
in the same
organization will purchase rugged work
clothes.
Economic Situation
Consumer economic situation has great
influence on
his buying behavior. If the income and
savings of a
customer is high then he will purchase
more expensive
products. On the other hand, a person with
low income
and savings will purchase inexpensive
products.
Lifestyle
Lifestyle of customers is another import
factor
affecting the consumer buying behavior.
Lifestyle
refers to the way a person lives in a society
and is
expressed by the things in his/her
surroundings. It is
determined by customer interests,
opinions, activities
etc and shapes his whole pattern of acting
and
interacting in the world.
Personality
Personality changes from person to person,
time to
time and place to place. Therefore it can
greatly
influence the buying behavior of
customers.
Actually, Personality is not what one
wears; rather
it is the totality of behavior of a man in
different
circumstances. It has different
characteristics such
as: dominance, aggressiveness, self-
confidence
etc which can be useful to determine the
consumer
behavior for particular product or service.
4. Psychological Factors
There are four important psychological
factors
affecting the consumer buying behavior.
These
are: perception, motivation, learning,
beliefs and
attitudes.
Motivation
The level of motivation also affects the
buying behavior
of customers. Every person has different
needs
such as physiological needs, biological
needs, social
needs etc. The nature of the needs is that,
some of
them are most pressing while others are
least pressing.
Therefore a need becomes a motive when
it is more
pressing to direct the person to seek
satisfaction.
Perception
Selecting, organizing and interpreting
information
in a way to produce a meaningful
experience of the
world is called perception. There are three
different
perceptual processes which are selective
attention,
selective distortion and selective retention.
In case
of selective attention, marketers try to
attract the
customer attention. Whereas, in case of
selective
distortion, customers try to interpret the
information
in a way that will support what the
customers already
believe. Similarly, in case of selective
retention,
marketers try to retain information that
supports
their beliefs.
Beliefs and Attitudes
Customer possesses specific belief and
attitude
towards various products. Since such
beliefs and
attitudes make up brand image and affect
consumer
buying behavior therefore marketers are
interested in them. Marketers can change
the beliefs and attitudes of customers by
launching special campaigns in this
regard.
Q3. Name and describe the two types
of value based pricing and the
methods
The two basic ways of pricing goods and
services are
cost-plus pricing and value-based pricing.
Cost-plus
sets the price at the cost of production plus
a profit.
In value-based pricing, the price is based
on what
customers are willing to pay. The more
value your
product or service has to your customers,
the higher
the price you can charge. Value-based
pricing
strategies therefore are based on the value
of the
product to individual customers.
Identification
To arrive at the optimum price, determine
how
highly your customers value your product
or service.
Examine factors such as whether your
customers will
save money or time by using your product
or service;
whether your product or service is unique;
whether
your product or service will help
customers gain a
competitive advantage; and what the
competition
charges. The answers to these questions
will help you
determine what customers are willing to
pay for your
product or service.
Effects
When you are offering a product or service
that is not
unique and in a market where prices are
well established,
you may have to adopt the strategy of
setting
your price at the same level as your
competitors. This
may help you to enter the market, but you
will need to
lower your costs to raise your profit levels
above your
competitors, to gain a competitive
advantage.
Expert Insight
For some products and services, it may
make sense
to set your prices according to how much
you will
save your customers. Craig Stedman,
writing in
Computerworld, describes how software
vendors set
their license fees for individual customers
based on
the amount of internal savings customers
can expect
to achieve by using their product. Another
company,
selling gaskets that prevent chemical leaks
and spills,
charges customers based on the cleanup
costs they will
avoid by using the product.
Considerations
For certain products or services, it may
make senssense
to charge a higher amount relative to your
costs.
You can do this if your product is unique,
if you are
positioning your product as a high-status
item or
if it will save your customers money. For
example,
many luxury items, such as designer
handbags, are
priced at hundreds of times their
production cost, but
customers are paying for the prestige of
owning the
brand. Drug companies may price their
products high
and justify this by arguing their drug can
save the
patient an even more expensive medical
procedure.
Potential
Another type of value-based pricing
strategy is
to offer some customers a discount. This
may be
based on the amount they buy or on how
often they
use your service. Airlines, trains and hotels
use a
related strategy of pricing seats or rooms
differently
depending on when customers buy the
tickets. When
there are seats left to fill very close to the
departure
date, the airline is willing to sell these at a
discount
in order to fill the plane. This helps to
maintain
profitability

Q4 How should a company measure

the effectiveness of its advertising?

Measuring the effectiveness of advertising

programme in the limited market area is
one of the
important task of the advertising manager.
If different
media and different advertisements are
used
in different markets, the effectiveness of
the different
media and advertisement can be evaluated.
These measures will help the manager to
adjust the
budget to obtain the most effective media
scheduling.
The revision of the budget is necessary
because of the
impact of other promotional measures.
Changes in the
budget for other programmes compels the
manager
to redesign his budget so that he may stay
within the
available resources.

Image: Advertising, Source: Google

PROCEDURES TO EVALUATE
EFFECTIVENESS OF
ADVERTISEMENTS
A well-conceived advertising programme
is an
integral part of the firm’s overall
marketing
strategy. Therefore, it is obligatory on the
part of
the management to know whether the
campaign
has really attained its advertising
objectives, and
whether its advertisements are as good as
those of its
competitors.
A number of alternative procedures are
available
for the evaluation of the effectiveness of
advertisements, of which the three
important ones
are:
Evaluating individual advertising messages
in order to
assess their relative importance;
Evaluating the achievement of
awareness-and-attitude objectives;
Evaluating the impact of advertisement as
reflected
in the sales reports.
These can be measured by a variety of
tests. In fact,
the tests of effectiveness are needed to
determine
whether the proposed advertisements
should be used,
or they need some improvement; or should
be stopped,
continued or significantly changed. The
advertising
measurements usually take two forms;
one involves the sales effect of advertising
— that is,
the sales volume generated by advertising.
other involves the communications effect
on
advertising, or the degree to which the
audience
perceives the content of the message.
Both of these forms of measurement are
important. Sales measurements help
determine the
optimum advertising budget, and
communications
measurements help to tell us if the message
is working.
How to measure sales results?
To measure sales results, an analysis is
made of
consumer purchases before and after
advertising
has been introduced to stimulate sales.
Such analysis
can be used to estimate whether and to
what extent
the brand’s position has been improved as
a result of
advertising, and among which consumer
segments it
has been most effective. Sometimes, store
inventory is
done before and after the effects of
advertising to
measure the sales results.
Many advertisements give some idea of
the product so
that consumer may be persuaded to
purchase it. For
this purpose, advertisements are pre-tested
before
target consumers are exposed to them, and
post tests
are conducted after these consumers have
been
exposed to the advertisements.
Pre-tests are conducted to find out whether
the
information communicated to consumers
has been
successfully communicated. If the tests
indicate
that advertisements are not potentially
effective,
they may be modified, or dropped. Post-
tests
indicate whether they have been effective
or not.
If a significant difference is found in sales,
the
management may decide that the effort is
successful
and should be continued as planned.
Other measures of effectiveness are:
readership,
awareness of advertising themes, and
attitude
changes.
KINDS OF TESTS TO MEASURE
EFFECTIVENESS OF
ADVERTISING
Various kinds of tests are used to measure
the
effectiveness of advertising. These are:
exposure;
attention, comprehension, attitude change,
and
behavior or action.
1. Exposure
In order to be effective, an advertisement
must
gain exposure, i.e., how many consumers
have seen
or heard about the message. Without
exposure,
advertising is doomed to failure. Whether
the media
used has exposed the idea can be found out
by:
Examining its circulation or audience data
(i.e.,
number of print copies sold, persons
passing
billboards or riding in city buses, persons
living in
radio-listening area, etc.); or
Conducting readership or “listenership”
surveys.
2. Attention
Advertisement cannot be effective unless
they get the
attention of target consumers. This
attention getting
response can be obtained by asking
consumers to
indicate the degree to which they
recognize or recall
each advertisement. Various mechanical
devices
provide indices of attention.
3. Comprehension
Consumers utilize advertisements as a
means of
obtaining information. They cannot be
informed
unless they comprehend the message.
Marketers use
various tests of comprehension, such as
recall tests,
i.e., consumers will recall what they
comprehend. They
may also ask consumers how much they
comprehend
of a message they recently heard or
viewed.
4. Attitude Change
Attitudes towards the product or
organization,
both before and after the appearance of an
advertisement, are measured by measuring
instruments which normally contains 15 to
20 sales.
5. Action
Advertising aims at stimulating action or
behavior.
The intention can be measured by
instruments, and
the answers to certain questions may be
analyzed to
find out the future trends in purchasing.
WHICH IS THE EFFECTIVE TEST TO
MEASURE THE
EFFECTIVENESS OF AN AD
CAMPAIGN?
Which of the tests may be used will
depend upon
the advertising objective of the campaign
and
the research budget of the organization.
The test
used should assess the degree to which
advertising
campaign helps achieve the management’s
objectives.
Thus, if the objective is to increase brand
awareness,
readership or listenership surveys may be
quite
suitable. But if the objective is to generate
immediate
action, sales or coupon measurements may
be
adopted.
Sales and readership studies are very
expensive for
small-scale organizations; these should,
therefore,
use less expensive tests, such as inquiry
tests to
evaluate the advertising effectiveness.
In the evaluation process, the role of
advertising
managers and product managers is quite
critical with
regard to monitoring the achievement of
advertising
objectives. Advertising agencies and
specialists play
a vital role in determining the relative
worth of
different messages.
The evaluation procedures, to be effective,
should be
diagnostic; that is, it should not merely
indicate which
of the alternative messages in superior or
how well
advertising objectives are being attained; it
should
also provide for remedial action, wherever
necessary.
Q5. What Is Consumerism? Discribe
the rights of buyers and sellers

Consumerism is the idea that increasing

consumption
of goods and services purchased in the
market
is always a desirable goal and that a
person's
wellbeing and happiness depends
fundamentally
on obtaining consumer goods and material
possessions. In an economic sense, it is
related to
the predominantly Keynesian idea that
consumer
spending is the key driver of the economy
and that
encouraging consumers to spend is a major
policy
goal. From this point of view,
consumerism is a positive
phenomenon that fuels economic growth.
In common use, consumerism refers to a
tendency
of people living in a capitalist economy to
engage
in a lifestyle of excessive materialism that
revolves
around reflexive, wasteful, or conspicuous
overconsumption. In this sense,
consumerism is
widely understood to contribute to the
destruction of
traditional values and ways of life,
exploitation of
consumers by big business, environmental
degradation,
and negative psychological effects. Early
uses
of the term in the mid-20th century were
intended to
have a positive connotation, which would
emphasize
the benefits that capitalism had to offer
consumers in
improving standards of living and an
economic policy
that would prioritize the interests of
consumers, but
these meanings have fallen out of general
use.
KEY TAKEAWAYS
Consumerism is the theory that states
people
consuming goods and services in large
quantities will
be better off.
Some economists believe that consumer
spending leads
to an increase in production and economic
growth.
However, consumerism has been widely
criticized for
its economic, social, environmental, and
psychological
consequences.
Understanding Consumerism
As consumers spend, economists presume
that
consumers benefit from the utility of the
consumer
goods that they purchase, but businesses
also benefit
from increased sales, revenue, and profit.
For
example, if car sales are increasing, auto
manufacturers
will see a boost in profits. Additionally,
the
companies that make the steel, tires, and
upholstery
for cars also see increased sales. In other
words,
spending by the consumer can benefit the
economy,
and the business sector in particular.
Because of this,
businesses (and some economists) have
come to view
increasing consumption as a critical goal in
building
and maintaining a strong economy,
irrespective of the
benefit to the consumer or society as a
whole.
In Keynesian macroeconomics, boosting
consumer
spending through fiscal and monetary
policy is a
primary target for economic policy
makers. Consumer
spending makes up the lion's share of
aggregate
demand and Gross Domestic Product, so
boosting
consumer spending is seen as the most
effective way
to steer the economy toward growth.
Saving can even
be seen as harmful to the economy because
it comes at
the expense of immediate consumption
spending.
Consumerism also helps shape some
business
practices. Planned obsolescence of
consumer goods
can displace competition among producers
to make
more durable products. Marketing and
advertising
can become focused on creating consumer
demand
for new products rather than informing
consumers.
Beyond these effects, consumerism
involves on the
impact that increasing consumption in
itself, and
the view of the consumer as target of
economic policy
and a cash cow for the business sector, has
on the
consumer and the society within which the
economy
operates. Economist Thorstein Veblen
developed
the concept of conspicuous consumption,
where
consumers purchase, own, and use
products not for
their direct use value but as a way of
signaling social
and economic status. As standards of
living rose
subsequent to the Industrial Revolution,
conspicuous
consumption grew. High rates of
conspicuous
consumption can end up being a wasteful
zero-sum
or even negative-sum activity as real
resources are
used up to produce goods that are not
valued for
their use. This can be analogous to the
phenomenon
of rent seeking, including associated
deadweight loss,
but with social status as the objective
rather than
political influence.
Advantages of Consumerism
Advocates of consumerism point to how
consumer
spending can drive an economy forward
and lead to
an increased production of goods and
services. As
a result of increased consumption
spending, a rise
in GDP growth or Gross Domestic Product
can occur.
In the U.S., signs of healthy consumer
demand can
be found in consumer confidence
indicators, retail
sales, and personal consumption
expenditures.
Business owners, workers in industry, and
owners of
raw resources can profit from sales of
consumer goods
either directly or by downstream buyers.
Disadvantages of Consumerism
Consumerism can be criticized on
economic grounds.
In the form of conspicuous consumption,
consumerism
can impose enormous real costs on an
economy.
Consuming real resources in zero- or
negative-sum
competition for social status can can offset
the gains
from commerce in a modern industrial
economy and
lead to destructive creation in markets for
consumer
and other goods. Consumerism can also
create
incentives for consumers to take on
unsustainable
levels of debt, which can contribute to
financial
crises and recessions.
Consumerism is also often criticized on
cultural
grounds. Some see that consumerism can
lead to
a materialistic society that neglects other
values.
Traditional modes of production and ways
of life
can be replaced by a focus on consuming
ever more
costly goods in larger quantities.
Consumerism is
often associated with globalization in
promoting the
production and consumption of globally
traded goods
and brands, which can be incompatible
with local
cultures and patterns of economic activity.
Environmental problems are frequently
associated
with consumerism to the extent that
consumer goods
industries and the direct effects of
consumption
produce environmental externalities. These
can include pollution by producing
industries,
resource depletion due to widespread
conspicuous
consumption, and problems with waste
disposal from
excess consumer goods and packaging.
Lastly, consumerism is often criticized on
psychological grounds. It is blamed for
increasing
status anxiety, where people experience
stress
for increasing competition for social status
in the
constant drive to "keep up with the
Joneses" by
increasing their consumption.
Psychological research
has shown that people who organize their
lives around
consumerist goals, such as product
acquisition,
report poorer moods, greater unhappiness
in
relationships, and other psychological
problems.
Psychological experiments shown that
people exposed
to consumerist values based on wealth,
status, and
material possessions display greater
anxiety and
depression. Others show that encouraging
people to
identify as consumers leads to lower trust,
lower sense
of personal responsibility, and less
willingness to
cooperate with others.
RIGHTS OF THE BUYER IN A
CONTRACT OF SALE
The following are the rights of a buyer in a
contract of
sale.
Contract of Sale – Rights of a Buyer
1. He has the right to have delivery of the
goods as per
the contract.
2. If the seller does not send, as per the
contract, the
right quantity of goods to the buyer, the
buyer can
reject the goods.
3. The buyer has a right not to accept
delivery of the
goods by installments by the seller.
4. If the goods are sent by sea route by the
seller,
the buyer has a right to be informed by the
seller so
that he may get the goods insured.
5. The buyer has a right to examine the
goods which he
has not seen earlier before giving his
acceptance for
the same.
6. If the seller wrongfully refuses to
deliver the goods
to the buyer as per the contract, the buyer
may sue
the seller for damages for non delivery.
The amount
of damages will be the difference between
the
contract price and the market price of the
goods.
7. If the buyer has already paid the price
and the
seller has not delivered the goods as per
the contract,
the buyer can recover the amount paid.
8. If the contract is for the sale of specific
or
ascertained goods, the buyer may sue the
seller for
the specific performance of the contract in
case
of breach of contract by the latter.
9. The buyer may sue the seller for
damages for the
breach of any implied warranty as per the
provisions
of this Act.
10. If the seller rejects the contract before
the date
of delivery, the buyer may either treat the
contract
as still existing and wait till the date of
delivery or he
may treat the contract as cancelled and sue
the seller
for damages for the breach. The second
case is known
as the anticipatory breach of contract.
11. If, in view of the breach of contract by
the seller,
the price has to be refunded to the buyer,
the buyer
has a right to claim interest on the amount.
DUTIES OF THE BUYER IN A
CONTRACT OF SALE
The following are the duties of a buyer in a
contract
of sale.
Contract of Sale – Duties of a Buyer
1. It is the duty of the buyer to accept the
goods and
pay for them in accordance with the terms
of the
contract.
2. It is the duty of the buyer to apply for
delivery.
3. It is the duty of the buyer to demand
delivery of
the goods within a reasonable time.
4. If the contract specifically provides for
the
delivery of the goods by the seller by
installments, the
buyer shall accept such a delivery.
5. It is the duty of the buyer to take the risk
of deterioration
in the goods which is necessarily incident
to the course of transit. Example: Rusting
of iron.
6. If the buyer refuses to accept the goods,
it is his
duty to inform the seller about it.
7. If the seller delivers the goods as per the
contract,
it becomes the duty of the buyer to take
delivery of
the same within a reasonable time. He
remains liable
to the seller for any loss arising on account
of his
refusal to take delivery.
8. If the ownership rights have already
been passed
on to the buyer by the seller, the former
has the duty
to pay the price as per the terms of the
contract.
9. If the buyer wrongfully refuses to accept
and pay
for the goods, he will have to compensate
the seller
for damages for non-acceptance.
105 MBA [Managerial economics]

Q1.Mention six steps to decision

making

The overall decision process (also referred

to as decision
model) contains the following decision-
making
steps:
Decision-making, is the process of
evaluating two
or more alternatives leading to a final
choice,
sometimes known as Alternative Choices
Decisions. It
is a formal method for making a choice, fre
quently
involving both quantitative and qualitative
analyses.
Decision-making is closely associated with
planning
for the future and is directed towards a
specific
objective or goal.
The care put into each decision often
determines
the level of outcome. Still the best process
and

even
the best decision does not guarantee a
successful
outcome. The future determines its own
fate, but the
best prepared decision is more likely to
produce the
desired result than any other selection.
1. Determine/Clarify the Decision
Problem/Strategic
Issues:
ADVERTISEMENTS:
The first step in decision making process,
which is very
important, is to identity and define the
problem,
or strategic issues which require making
decisions.
This helps the decision maker to focus on
the right
questions involved in decision. Greater
managerial
skill and expertise is required in defining a
decision
problem to subsequently address it
correctly. For
example, a production manager might
wrongly
consider the choice as make or buy a part
for a
product when the correct decision might be
to
determine whether the product should be
redesigned
so the part is not needed.
Sometimes, the decision problem is quite
complex.
For example, the demand for a company’s
popular
product is declining. What are the reasons
for it?
Declining quality control? Decrease in cus
tomer
satisfaction? Increasing competition?
Availability
of alternative product in the market?
Higher selling
prices? etc.
Before a decision can be made, the
problem needs
to be clarified and defined in more specific
terms. In
some situations, the decision problem may
itself be
clear. For example, a business firm may
receive a special
order for its product at a price below the
regular
market price. The decision under this
situation is clear
i.e. whether to accept or reject the order.
2. Specify the Criteria:
After identifying the decision problem, the
decision
maker should specify the criteria upon
which a
decision is to be made. Most often, the
criteria or the
objective can be easily quantified such as
minimizing
cost, improving profit through increased
return on
investment, increasing share of company
product in
the market.
ADVERTISEMENTS:
Sometimes the criteria or the objectives are
in conflict
with each other, such as where reducing
cost, quality
of the product needs to be maintained.
Also, in some
situa tions, other interested parties or
stakeholders
like shareholders; creditors may have their
own
separate criteria or objectives. Therefore, a
manager
most often is forced to think of multiple
objectives,
both the quantifiable short-term goals and
the more
strategic difficult-to-quantify goals.
3. Identify Alternatives as Possible
Solutions to the
Problem:
Decision making is choosing between the
alternatives.
If the objective is to increase sales, there
can be
many alternatives to achieve this goal. If a
machine
breaks down, it could be repaired or
replaced.
Within the replacement, it may be bought
or leased.
Determining the possible alternatives is an
important
step in the decision making process.
Those alternatives that are clearly not
feasible
should be eliminated from the decision
making
process.
4. Perform Relevant Information Analysis:
In this fourth step, a manager collects
relevant data
(relevant costs and relevant benefits) as
sociated with
each feasible alternative. Selecting data
relating to
decision is one of the management
accountant’s most
important roles in an organization. In this
decision
making step, manager performs an analysis
of
relevant costs and relevant benefits
(revenues) and
other pertinent strategic issues. Manager
also makes
predictions about relevant information
corresponding
to alternatives in terms of future values of
relevant
costs and relevant revenues.
Managers should also identify and analyze,
to the
extent possible, non-financial advantages
and
disadvantages (known as qualitative
factors) about
each feasible alternative while performing
relevant
information analysis.
5. Select and Implement the Best
Alternative:
Based on the relevant cost and relevant
revenue
analysis, the manager, in the fifth step,
selects the
best alternative and executes it.
6. Evaluate Performance:
In the sixth and final step, the manager
evaluates the
performance of the implemented decision
as a basis
for feedback to a possible reconsideration
of this
decision as it relates to future decisions.
The decision
process is thus a feedback-based system in
which the
manager continually evaluates the results
of prior
analyses and decisions to discover any
opportunities
for improvement in decision making.
Q2. Briefly explain about factors
affecting price elasticity

Some of the major factors affecting the

elasticity of
demand of a commodity are as follows:
A change in price does not always lead to
the same
proportionate change in demand. For
example, a
small change in price of AC may affect its
demand to
a considerable extent/whereas, large
change in price
of salt may not affect its demand. So,
elasticity of
demand is different for different goods.
Image Courtesy :
federalreserve.gov/pubs/ifdp/
2007/897/revision/figure4.gif
ADVERTISEMENTS:
Various factors which affect the elasticity
of demand
of a commodity are:
1. Nature of commodity:
Elasticity of demand of a commodity is
influenced
by its nature. A commodity for a person
may be a
necessity, a comfort or a luxury.
i. When a commodity is a necessity like
food grains,
vegetables, medicines, etc., its demand is
generally
inelastic as it is required for human
survival and
its demand does not fluctuate much with
change in
price.
ADVERTISEMENTS:
ii. When a commodity is a comfort like
fan,
refrigerator, etc., its demand is generally
elastic as
consumer can postpone its consumption.
iii. When a commodity is a luxury like AC,
DVD player,
etc., its demand is generally more elastic as
compared
to demand for comforts.
iv. The term ‘luxury’ is a relative term as
any item (like
AC), may be a luxury for a poor person but
a necessity
for a rich person.
2. Availability of substitutes:
Demand for a commodity with large
number of
substitutes will be more elastic. The reason
is that even
a small rise in its prices will induce the
buyers to go for
its substitutes. For example, a rise in the
price of Pepsi
encourages buyers to buy Coke and vice-
versa.
ADVERTISEMENTS:
Thus, availability of close substitutes
makes the
demand sensitive to change in the prices.
On the other
hand, commodities with few or no
substitutes like
wheat and salt have less price elasticity of
demand.
3. Income Level:
Elasticity of demand for any commodity is
generally
less for higher income level groups in
comparison
to people with low incomes. It happens
because rich
people are not influenced much by changes
in the
price of goods. But, poor people are highly
affected
by increase or decrease in the price of
goods. As
a result, demand for lower income group is
highly
elastic.
4. Level of price:
Level of price also affects the price
elasticity of
demand. Costly goods like laptop, Plasma
TV, etc.
have highly elastic demand as their
demand is very
sensitive to changes in their prices.
However, demand
for inexpensive goods like needle, match
box, etc.
is inelastic as change in prices of such
goods do not
change their demand by a considerable
amount.
5. Postponement of Consumption:
Commodities like biscuits, soft drinks, etc.
whose
demand is not urgent, have highly elastic
demand
as their consumption can be postponed in
case of an
increase in their prices. However,
commodities with
urgent demand like life saving drugs, have
inelastic
demand because of their immediate
requirement.
6. Number of Uses:
ADVERTISEMENTS:
If the commodity under consideration has
several
uses, then its demand will be elastic. When
price
of such a commodity increases, then it is
generally
put to only more urgent uses and, as a
result, its
demand falls. When the prices fall, then it
is used for
satisfying even less urgent needs and
demand rises.
For example, electricity is a multiple-use
commodity.
Fall in its price will result in substantial
increase in
its demand, particularly in those uses (like
AC, Heat
convector, etc.), where it was not
employed formerly
due to its high price. On the other hand, a
commodity
with no or few alternative uses has less
elastic
demand.
7. Share in Total Expenditure:
Proportion of consumer’s income that is
spent on a
particular commodity also influences the
elasticity
of demand for it. Greater the proportion of
income
spent on the commodity, more is the
elasticity of
demand for it and vice-versa.
Demand for goods like salt, needle, soap,
match
box, etc. tends to be inelastic as consumers
spend a
small proportion of their income on such
goods. When
prices of such goods change, consumers
continue
to purchase almost the same quantity of
these
goods. However, if the proportion of
income spent
on a commodity is large, then demand for
such a
commodity will be elastic.
8. Time Period:
ADVERTISEMENTS:
Price elasticity of demand is always related
to a
period of time. It can be a day, a week, a
month,
a year or a period of several years.
Elasticity of
demand varies directly with the time
period. Demand
is generally inelastic in the short period.
It happens because consumers find it
difficult to
change their habits, in the short period, in
order
to respond to a change in the price of the
given
commodity. However, demand is more
elastic in long
rim as it is comparatively easier to shift to
other
substitutes, if the price of the given
commodity rises.
9. Habits:
Commodities, which have become habitual
necessities
for the consumers, have less elastic
demand. It happens
because such a commodity becomes a
necessity
for the consumer and he continues to
purchase it even
if its price rises. Alcohol, tobacco,
cigarettes, etc. are
some examples of habit forming
commodities.
Finally it can be concluded that elasticity
of demand
for a commodity is affected by number of
factors.
However, it is difficult to say, which
particular factor
or combination of factors determines the
elasticity. It
all depends upon circumstances of each
case
Q3. Elaborate the term Competitive
Equilibrium

Definition
The concept of Competitive Equilibrium
can be defined
as an equilibrium condition where the
objective of
profit maximization of the firm and the
aim of utility
maximization of the consumers in the
competitive
market is to arrive at an equilibrium price
owing to the
freely determined prices.
As per the theory of Competitive
Equilibrium, the
quantity supplied of the product by the
firm is equal
to the product quantity demanded by the
consumers
in the market.
It is an economic situation of a relative
balance
wherein, neither the buyer nor the seller
can improve
its bargain position of the products offered.
Meaning of Competitive Equilibrium

Unlike the basic supply and demand model

that is underlined
on the individual behaviors of the firm and
the consumers in the market, the model of
Competitive
Equilibrium is based on the behavioral
statistics of
the collective set of consumers and firm in
the market
that is high on competition.
The Competitive Equilibrium is quite
useful for the
market researchers and the management of
the
firm to forecast and calculate the
equilibrium price
and the total quantity of the specific
products in the
market.
The model of Competitive Equilibrium is
also quite
helpful in figuring on the levels of
consumption
quantity of the said product and its output
per firm
in the operational market.
In hindsight, the theory of Competitive
Equilibrium
is the condition of the market that is
defined by the
allocation of products and the set of prices
amidst
the tough and ever growing competition.
At equilibrium prices of the product in the
market,
each of the agents involved tries to
maximize
his business aim and objective but is
confined by
his limitations of technical know-how and
the
availability of the resources.
The market clears the collective supply
and demand
of the said products.
The concept and theory of Competitive
Equilibrium
are highly applicable for making and
arriving at
the strategic decisions of the larger
markets. It is
considered a cousin of the concept of game
theory
that also works on similar fundamentals.
The theory of Competitive Equilibrium
exhaustively
and comprehensively analyzes the details
of
economic activities such as fiscal policies,
tax policies,
interest rates, exchange rates, and the
detailed
know-how of the stock and commodity
markets as a
whole.
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It works as a standard or a yardstick for the
efficient
analysis of the economic condition of the
market.
The concept of Competitive Equilibrium
also works on
the supposition that in the competitive
markets, each
of the traders has a free hand to decide the
quantity
that is quite smaller in comparison to the
demand of
total quantity of the products traded in the
market.
To analyze and evaluate the structures and
the
overall working of the other markets, the
markets
that are high on the aspect of the
competition work as
an ideal case scenario.
In the market that is capitalist in nature and
its overall operations, its significant
regulatory
functions such as market competency,
fairness in the
dealings, and overall stability are decided
as per the
mechanisms of the pricing of the product.
Hence, the theory of Competitive
Equilibrium has
carved a niche for itself in the stream and
subjects
of mathematical economics.
Comparative Study: Competitive
Equilibrium and
General Equilibrium
One of the main and vital features of the
Competitive
Equilibrium is that it is highly competitive
in nature.
And the vital feature of the general
equilibrium is
that is it focused on more than one market.
It is quite
indifferent from the partial equilibrium
wherein,
there is a liberty to hold on to at least one
fixed price
and analyze the response of other markets
and prices
as a whole.
The major difference between both the
equilibriums is
their methodologies and emphasis.
It is to be noted that any general
equilibrium can be a
Competitive Equilibrium but no
Competitive Equilibrium
can be a general equilibrium.
Assumptions of Competitive Equilibrium
Competitive Equilibrium is also known as
Walrasian
Equilibrium and is based on the
assumption that the
quantity of the products decided by each
manufacturer
is quite small in comparison to the quantity
of
the products by the overall manufacturers
in the
market.
And even the individual transactions of the
manufacturers have no impact on the
structuring of
the overall commodity present at the
marketplace.
Factors that define Competitive
Equilibrium
1) Price:
The theory of Competitive Equilibrium is
defined by the
price of each commodity in the market.
2) Allocation:
The theory is also based on the quantity of
each
product or commodity allocated to each of
the sellers
in the market.
Vital conditions required for the
Competitive
Equilibrium:
As per the feasibility condition of the
market,
the total demand of each of the goods in
the
market should equate to its total supply by
the
manufacturers.
As per the condition of the rationality,
within the
given budget, each of the seller or
manufacturer in
the market should get the best combination
of the
goods.
Last but not least, the goods that have a
positive price
point should be fully allocated in the
market.
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Example of Competitive Equilibrium
In the example discussed over here, the
product we
will take as a notebook and it is indivisible
in nature.
For instance, the utility value of the book
for the
seller is 150 and the utility value of the
book that
buyer perceives is 100.
And the buyer is not ready to pay 150 for
the book
and seller is not ready to sell the book at
100 or less
than it. Hence, both the parties involved
that is the
buyer and the seller have to come at a
middle ground
to attain the Competitive Equilibrium.
If the buyer is ready to pay 120, then the
seller may
or may not agree to the same as the factor
of utility is
increasing from both sides.
It is to be noted that Competitive
Equilibrium is not
possible in all the cases and scenarios
especially
wherein the utility is getting decreased by
both the
parties involved.
Uses of Competitive Equilibrium
It helps the market researches and
economists to
understand the various determinants of the
patterns
of the economy. The customers look for
the maximum
utility of the product at the best possible
price and
the seller looks for the maximum profit
utilization
from the sale of the product. There have to
be no
wastages and the optimal utilization of the
resources
available.
The concept and theory of Competitive
Equilibrium
help to check and understand if the
economic system
is working in an efficient and effective
manner. Plus
are there are factors that make the entire
process
and working less smooth and not
coordinated in
nature.
The market is always high on factors of
dynamics
such as increased competition, evolving
tastes, and
preferences of the customers, duplication
of the
products, and high price range by certain
sellers in
the market. The theory of Competitive
Equilibrium
helps to understand the complex problems
and
bottlenecks that are affecting the buyers
and sellers
in the market.
Q4.What is related Price
Competition?

Price competition is one of many ways that

a product
or service can compete in the marketplace.
In price
competition, two products which are
substantially
similar are judged by prospective
consumers on
their respective pricing, with the purchase
made
mostly on the basis of which is cheaper.
Other forms
of competition are always in play,
however, and will
affect the price comparison.
1.
Determine which products are
substantively similar
to your product in the eyes of the
customer. This may
be because the products actually are
similar, such as
competing brands of corn flakes in a
supermarket
cereal aisle. This can also occur when the
consumer
may consider two categories of products
similar for
the purposes of a purchase; a grandmother
shopping
for gifts for her grandchildren may
consider a
prepackaged dessert and a stuffed animal
to be
similar in the "gift" category, although
these products
do not otherwise directly compete.
2.
Consider the relative price of the two (or
more)
competing products. This should include
the value
proposition of the products: a $10
imported chocolate
bar may compete against a $2 Hershey bar
if the
consumer can be expected to perceive the
value of the
imported chocolate more highly. However,
for most
consumers, a $10 imported chocolate bar
would likely
win over a $15 imported chocolate bar in
direct price
competition, unless they are sufficiently
skilled to
know the difference between the chocolate
types.
3.
Compare the price of the products in
absolute terms;
in this case, do not consider the relative
value of the
product. If our hypothetical grandmother
has a price
limit of $5 per grandchild, she will not
consider a $10
gift under any circumstances. The absolute
price of
your products and services will define a
different
range of competition than relative pricing.
4.
Alter your prices as prudent to speak to the
various
customers defined by the above
comparisons. For
example: the grandmother is currently only
offered a
$2 chocolate bar, and may consider that
too "cheap"
for her grandchildren, but will purchase
something
closer to her $5 limit. On the other hand,
reducing the
price of the $10 imported chocolate will
cut too far
into your profit margin; if other customers
will willingly
pay that price, find a different product to
meet
the needs of each class of customers, and
ensure that
your profit margin remains healthy
throughout.
Q5. Difference between perfect and
imperfect information

Games of imperfect information have

information
hidden from players during the game. And,
although
games of perfect information have all
information
shown during a game, the need for strategy
in the
game doesn’t necessarily differ between
the two.
Perfect information games such as chess,
backgammon, and go require a decent
amount of
thought and strategy to play. Players have
to process
what they see on the board and determine
what their
opponent is likely to do while working
towards the
ultimate goal of winning. On the other
hand, perfect
information games such as candy land,
mousetrap,
and tic-tac-toe don’t need practically any
strategy
to play. Players simply have to roll a die or
pick up a
card and move their piece to a set space.
Even a game
like tic-tac-toe, where there is arguably a
strategy
involved, has practically no real thought
put into the
game.
Imperfect information games such as
poker, 20
questions, and rummy require thought and
strategy
to play. Players have to take into account
the
information that they have been given
already to try
to figure out how they should act next in
order to win.
Where imperfect information games such
as guess
who, apples to apples, and go-fish don’t
really require
much strategy to play. Although there is
arguably
some strategy to these games, the players
don’t have
to do much other than ask a question or
seeing a card
and getting rid of some of your hand as a
response.
You then have to ask, “Where do they
differ?”,
imperfect games have more of a
mysterious aspect
to them. The player has to take into
account the
information that they don’t have when
playing the
game. Using the imperfect information,
some players
will also gamble or bluff in some games.
Games of
perfect information, with all information
known
to everybody, don’t allow players hide
their own information
and try to figure out their opponent’s. This
takes out the fun, mysterious aspect of the
game.
I think that 20 questions is a game with an
interesting
but simple use of imperfect information.
It’s a
game where a player starts off with
absolutely no
information (or only given the category),
and that
player then has to come to a conclusion
after asking
only 20 questions. In other games of
imperfect
information, although the player isn’t
aware of every
aspect of the game, the player usually
knows what is
in their own hand or on their own playing
field.
Although games of perfect information and
games
of imperfect information are similar in
terms of
strategy, I think the mysterious aspect of
imperfect
information is what makes games more
entertaining
to play.
106 MBA [Information technology
with introduction to DBMS]

Q1.Discuss the logical component of a

business process

A business process has three component

processes
that work together to support its logical
activities. The
IS supports all three processes in that it
frequently
embodies many of the policies and
procedures that
help define each process.
The information process is that portion of
the overall
IS related to a particular business process.
The
information process plays a critical role in
the way all
three processes work together.
An operations process is a human-made
system
consisting of the people, equipment,
organization,
policies, and procedures whose objective is
to accomplish
the work of the organization. Operations
processes
typically include distribution,
manufacturing,
human resources, and their sub-processes.
The management process is a human-made
system
consisting of the people, authority,
organization,
policies, and procedures whose objective is
to plan
and control the operations of the
organization. The
three most prominent management
activities are
planning, controlling, and decision
making. These are
discussed in Chapter 5.
These processes work together to
accomplish the
objectives of the business process—and
therefore the
organization. In order to accept and fill a
customer
order for a Harry Potter book from
Amazon.com,
all three processes engage in a set of
activities, as
shown in Figure 1.4. The activity numbers
refer to the
labeled flows in Figure 1.4. Flows are
numbered in the
order that activities occur.
The management process:
1.
hires personnel and establishes the means
for
accomplishing the work of the
organization. For
example, management designs the
procedures used to
warehouse inventory and then to ship those
goods to
the customers.
2.
establishes broad marketing objectives and
assigns
specific sales quotas by which progress
toward the
long-run objectives can be measured. Also
designs the
information processes’ procedures for
facilitating
operations, such as the procedures used to
pick and
ship goods to the customer.
The information process:
3.
receives a customer’s order over the
Internet for a
Harry Potter book.
4.
prepares an invoice and sends it
electronically to the
credit card company/bank.
5.
receives an electronic payment
acknowledgement
from the credit card company/bank.
Figure 1.4 A Logical Model of a Business
Process for
Ordering Books Online
6.
acknowledges the customer’s order by
sending an
e-mail message to the customer.
7.
sends to the warehouse a request to ship a
Harry
Potter book to the customer. This request
identifies the
book and its location in the warehouse.
Also sends a
packing slip to be attached to the book.
The operations process:
8.
attaches to the shipment a document (i.e., a
packing
slip) identifying the customer and the book
and ships
the book to the customer.
9.
reports to the IS that the book has been
shipped.
The information process:
10.
sends a shipping acknowledgement to the
customer via
e-mail.
11.
sends management a report comparing
actual sales to
previously established sales quotas.
These 11 activities highlight several
important
concepts.
The information process facilitates
operations by
maintaining inventory and customer data
and by
providing electronic signals (such as those
used in
automated warehouses) and paper
documents with
which to execute business events, such as
shipments to
customers.
The information process provides the
means by which
management monitors the operations
process. For
example, management learns sales results
only from
the sales report.
Management designs the operations and
information
processes and establishes these processes
by providing
people, equipment, other physical
components, and
policies.
Information process users include
operations
personnel, management, and people
outside the
organization, such as the customer.
Figure 1.5 Information System Output
Flow and Users

Figure 1.5 represents data flows related to

the
processing of business events. In this
figure, the top
three layers represent the management
process. The
bottom layer represents the organization’s
operations
processes. The information process
supports all layers
through horizontal and vertical information
flows.5
By studying these flows more closely, we
can improve
our understanding of the Information
System
and its relationships with the operations
and the
management processes. At the level of
operations and
business events processing, the flows are
horizontal
as the information moves through
operational units
such as sales, the warehouse, and
accounting. In the
sales example above, the operational
documents and
records are the outputs of these horizontal
flows.
The data captured at the operations and
business
event processing level constitute the
foundation
for the vertical information flows that
service a
multilevel management function. At the
operations
management level, personnel such as
supervisors use
information to monitor the daily
functioning of their
operating units. The vertical information
useful to
operations management is a summarized
and tailored
version of the information that flows
horizontally.
For example, horizontal flows relate to
specific
business events, such as one shipment, or
to individual
inventory items. On the other hand,
information useful
to operations management personnel is
often an
aggregate of data related to several
business events.
For example, a report summarizing
shipments made
each day might be useful to the shipping
manager.
At the tactical management level, middle
managers
such as a warehousing or distribution
manager, might
want information about the timeliness of
shipments
each month. Such information is more
summarized
and broader in scope than is the
information used by
operations management.
Finally, at the strategic management level,
senior
managers such as division managers, chief
financial
officers (CFOs), and chief executive
officers (CEOs),
require information that is even more
summarized
and broader in scope than is the
information
used by tactical management. For these
managers
information must relate to longer time
periods, be
sufficiently broad in scope, and be
summarized
to provide a means for judging the long-
term
effectiveness of management policies.
External
financial statements, annual sales reports,
and
division income statements are but a few
examples
of strategic-level information. Note,
however, that
information technology facilitates access
to detailed
data at all management levels.
How does the IS support the multiple
information
uses suggested by the preceding
discussion? For
example, how does the IS support such
users as the
organization’s operations units, the
organization’s
management, and people outside the
organization?
How does the IS supply the information
needed by
three levels of management? One key
component
enabling the IS to meet the needs of this
diverse constituency is the entitywide
database.
The entitywide database is the central
repository for
all of the data used by the organization.
Information
processes, such as order entry, billing, and
inventory,
update the database. Output can be
obtained by
other information processes and by other
users
such as management. When processes or
other users
access the entitywide database, they get a
view of the
database appropriate for their needs. For
example,
when entering the customer order in the
earlier
example, the information process had
access to
that portion of the database that was
required, such
as the applicable customer and inventory
data.

Q2. Mention the limitations of life

processing

Disadvantages of File Processing System:

File
Processing System was first to replace
non-computer
based approach for maintaining records. It
was
a successful System of its time and still
there are
many organizations that are using File
Processing
System to maintain their data and
information.
But it is just not suitable for handling data
of big
firms and organizations. It has many
drawbacks
and disadvantages that made it out of date.
Now as we know that File Processing
System uses
different files to store data. So it created
lots
of disadvantages in File Processing
System.
Disadvantages of File Processing System
Duplicate Data
Data is stored more than once in different
files, that
means duplicate data may occur in all
these files.
Since all the files are independent on each
other so it
is very difficult to overcome this error and
if anyone
finds this error then it will take time and
effort to
solve this issue.
For Example: A student is having record in
college
library and in Examination department.
Then his
name, roll number, fathers name and class
will be
same in both the departments. Also these
departments
are not dependent on each other. So it
create
lots of duplicates value about that student
and when
he needs any change for his name or class
then he has
to go to both the departments to make
these changes
happen otherwise it will create problem for
him.
Inconsistency
In file processing system, various copies of
same data
may contain different values. Data is not
consistent
in this system, it means if a data item
needs to be
changed then all the files containing that
data need
to be modified. It may create a risk of out
dated
values of data.
For Example: If you change student name
in
library then his name should be changed in
all the
departments related to the student.
Accessing Anomalies
Accessing anomalies means that it is not
easy to
access data in a desired or efficient way. It
makes
supervision of department very difficult. If
a user
wants information in a specific manner
then he
requires creating a program for it.
For Example: Let’s say , if admin of the
college wants
any student information like his name,
fathers
name, roll number, marks and class then
program for
it is written but if he wants records of
whose students
whose numbers are more than 80 percent
then he
require to create a different program for it.
or Data Integrity
A collection of data is integrated if it meets
certain
consistency constraints. A programmer
always puts
these constraints in the programs by
adding some
codes. In File Processing System, poor
data integrity
often arises and it becomes very difficult to
add new
constraints at that time.
For Example: The maximum marks of the
student can
never be more than 100.
Poor Data Security
Poor data security is the most threatening
problem in
File Processing System. There is very less
security in
File Processing System as anyone can
easily modify
and change the data stored in the files. All
the users
must have some restriction of accessing
data up to a
level.
For Example: If a student can access his
data in the
college library then he can easily change
books issued
date. Also he can change his fine detains to
zero.
Atomicity Problem
Atomicity is required to save the data
values, it means
that information is completely entered or
canceled at
all. Any system may fail at any time and at
that time
it is desired that data should be in a
consistent state.
For Example: If you are buying a ticket
from railway
and you are in the process of money
transaction.
Suddenly, your internet got disconnected
then you
may or may not have paid for the ticket. If
you
have paid then your ticket will be booked
and if not
then you will not be charged anything.
That is called
consistent state, means you have paid or
not.
Same atomicity is not present in File
Processing
System.
Wastage of Labor and Space
Labor is very costly in this era and no
organization
can afford wastage of their precious labor.
File
Processing System needs lots of copied
data in
different files that cause wastage of labor.
Also
maintaining same data again and again
leads to
wastage of space too.
For Example: Maintaining student’s record
in many
departments that are not dependent on each
other
cause wastage of labor and space.
Data Isolation
Data is isolated in File Processing System
and data
is stored in different files. These files can
be in
different formats. If you want to extract
data from
two file then you are required to which
part of the file
is needed and how they are related to each
other.
But still in spite of so many disadvantages,
File
Processing System is still good for small
organizations
because it does not require costly
softwares and
programmers to handle it.
Q3.What is Business Intelligence
system? Define in detail

BI(Business Intelligence) is a set of

processes,
architectures, and technologies that convert
raw data
into meaningful information that drives
profitable
business actions.It is a suite of software
and services
to transform data into actionable
intelligence and
knowledge.
BI has a direct impact on organization's
strategic,
tactical and operational business decisions.
BI
supports fact-based decision making using
historical
data rather than assumptions and gut
feeling.
BI tools perform data analysis and create
reports,
summaries, dashboards, maps, graphs, and
charts
to provide users with detailed intelligence
about the
nature of the business.
In this tutorial, you will learn-
What is Business Intelligence?
Why is BI important?
How Business Intelligence systems are
implemented?
Examples of Business Intelligence System
used in
Practice
Four types of BI users
Advantages of Business Intelligence
BI System Disadvantages
Trends in Business Intelligence
Why is BI important?

Measurement: creating KPI (Key

Performance
Indicators) based on historic data
Identify and set benchmarks for varied
processes.
With BI systems organizations can identify
market
trends and spot business problems that
need to be
addressed.
BI helps on data visualization that
enhances the data
quality and thereby the quality of decision
making.
BI systems can be used not just by
enterprises but SME
(Small and Medium Enterprises)
How Business Intelligence systems are
implemented?
Here are the steps:
Step 1) Raw Data from corporate
databases is
extracted. The data could be spread across
multiple
systems heterogeneous systems.
Step 2) The data is cleaned and
transformed into the
data warehouse. The table can be linked,
and data
cubes are formed.
Step 3) Using BI system the user can ask
quires,
request ad-hoc reports or conduct any
other analysis.
Examples of Business Intelligence System
used in
Practice
Example 1:

In an Online Transaction Processing

(OLTP) system
information that could be fed into product
database
could be
add a product line
change a product price
Correspondingly, in a Business
Intelligence system
query that would beexecuted for the
product subject
area could be did the addition of new
product line or
change in product price increase revenues
In an advertising database of OLTP system
query that
could be executed
Changed in advertisement options
Increase radio budget
Correspondigly, in BI system query that
could be
executed would be how many new clients
added due to
change in radio budget
In OLTP system dealing with customer
demographic
data bases data that could be fed would be
increase customer credit limit
change in customer salary level
Correspondingly in the OLAP system
query that could
be executed would be can customer profile
changes
support support higher product price
Example 2:
A hotel owner uses BI analytical
applications to
gather statistical information regarding
average
occupancy and room rate. It helps to find
aggregate
revenue generated per room.
It also collects statistics on market share
and data
from customer surveys from each hotel to
decides its
competitive position in various markets.
By analyzing these trends year by year,
month by
month and day by day helps management
to offer
discounts on room rentals.
Example 3:
A bank gives branch managers access to
BI
applications. It helps branch manager to
determine
who are the most profitable customers and
which
customers they should work on.
The use of BI tools frees information
technology
staff from the task of generating analytical
reports
for the departments. It also gives
department
personnel access to a richer data source.
Four types of BI users
Following given are the four key players
who are used
Business Intelligence System:
1. The Professional Data Analyst:
The data analyst is a statistician who
always needs to
drill deep down into data. BI system helps
them to get
fresh insights to develop unique business
strategies.
2. The IT users:
The IT user also plays a dominant role in
maintaining
the BI infrastructure.
3. The head of the company:
CEO or CXO can increase the profit of
their business by
improving operational efficiency in their
business.
4. The Business Users"
Business intelligence users can be found
from across
the organization. There are mainly two
types of
business users
Casual business intelligence user
The power user.
The difference between both of them is
that a power
user has the capability of working with
complex data
sets, while the casual user need will make
him use
dashboards to evaluate predefined sets of
data.
Advantages of Business Intelligence
Here are some of the advantages of using
Business
Intelligence System:
1. Boost productivity
With a BI program, It is possible for
businesses to
create reports with a single click thus saves
lots of
time and resources. It also allows
employees to be
more productive on their tasks.
2. To improve visibility
BI also helps to improve the visibility of
these
processes and make it possible to identify
any areas
which need attention.
3. Fix Accountability
BI system assigns accountability in the
organization
as there must be someone who should own
accountability and ownership for the
organization's
performance against its set goals.
4. It gives a bird's eye view:
BI system also helps organizations as
decision makers
get an overall bird's eye view through
typical BI
features like dashboards and scorecards.
5. It streamlines business processes:
BI takes out all complexity associated with
business processes. It also automates
analytics by
offering predictive analysis, computer
modeling,
benchmarking and other methodologies.
6. It allows for easy analytics.
BI software has democratized its usage,
allowing
even nontechnical or non-analysts users to
collect
and process data quickly. This also allows
putting the
power of analytics from the hand's many
people.
BI System Disadvantages
1. Cost:
Business intelligence can prove costly for
small as
well as for medium-sized enterprises. The
use of such
type of system may be expensive for
routine business
transactions.
2. Complexity:
Another drawback of BI is its complexity
in
implementation of datawarehouse. It can
be so
complex that it can make business
techniques rigid to
deal with.
3. Limited use
Like all improved technologies, BI was
first established
keeping in consideration the buying
competence of
rich firms. Therefore, BI system is yet not
affordable
for many small and medium size
companies.
4. Time Consuming Implementation
It takes almost one and half year for data
warehousing system to be completely
implemented.
Therefore, it is a time-consuming process.
Trends in Business Intelligence
The following are some business
intelligence and
analytics trends that you should be aware
of.
Artificial Intelligence: Gartner' report
indicates that
AI and machine learning now take on
complex tasks
done by human intelligence. This
capability is being
leveraged to come up with real-time data
analysis
and dashboard reporting.
Collaborative BI: BI software combined
with
collaboration tools, including social media,
and other
latest technologies enhance the working
and sharing
by teams for collaborative decision
making.
Embedded BI: Embedded BI allows the
integration
of BI software or some of its features into
another
business application for enhancing and
extending it's
reporting functionality.
Cloud Analytics: BI applications will be
soon offered
in the cloud, and more businesses will be
shifting
to this technology. As per their predictions
within
a couple of years, the spending on cloud-
based
analytics will grow 4.5 times faster.
Summary:
BI is a set of processes, architectures, and
technologies that convert raw data into
meaningful
information that drives profitable business
actions.
BI systems help businesses to identify
market
trends and spot business problems that
need to be
addressed.
BI technology can be used by Data analyst,
IT people,
business users and head of the company.
BI system helps organization to improve
visibility,
productivity and fix accountability
The draw-backs of BI is that it is time-
consuming
costly and very complex process.
Q4. Write the intermediate step in
system implementation

System Implementation uses the structure

created
during architectural design and the results
of system analysis to construct system
elements that
meet the stakeholder requirements and
system
requirements developed in the early life
cycle phases.
These system elements are then integrated
to
form intermediate aggregates and finally
the
complete system-of-interest (SoI). See
System
Integration.
Contents
[hide]
1Definition and Purpose
2Process Approach
2.1Purpose and Principle of the Approach
2.2Activities of the Process
2.3Artifacts and Ontology Elements
2.4Methods, Techniques, and Tools
2.5Checking and Correctness of
Implementation
3References
3.1Works Cited
3.2Primary References
3.3Additional References
Definition and Purpose
Implementation is the process that actually
yields the
lowest-level system elements in the system
hierarchy
(system breakdown structure). System
elements are
made, bought, or reused. Production
involves the
hardware fabrication processes of forming,
removing,
joining, and finishing, the software
realization
processes of coding and testing, or the
operational
procedures development processes for
operators'
roles. If implementation involves a
production
process, a manufacturing system which
uses the
established technical and management
processes may
be required.
The purpose of the implementation process
is to
design and create (or fabricate) a system
element
conforming to that element’s design
properties and/
or requirements. The element is
constructed employing
appropriate technologies and industry
practices.
This process bridges the system definition
processes
and the integration process. Figure 1
portrays how the
outputs of system definition relate to
system implementation,
which produces the implemented (system)
elements required to produce aggregates
and the SoI.

Figure 1. Simplification of How the

Outputs of System
Definition Relate to System
Implementation, which
Produces the System Elements Required to
Produce
Systems and Subsystems. (SEBoK
Original)
Process Approach
Purpose and Principle of the Approach
During the implementation process,
engineers apply
the design properties and/or requirements
allocated
to a system element to design and produce
a detailed
description. They then fabricate, code, or
build
each individual element using specified
materials,
processes, physical or logical
arrangements,
standards, technologies, and/or information
flows
outlined in detailed descriptions (drawings
or other
design documentation). A system element
will be
verified against the detailed description of
properties
and validated against its requirements.
If subsequent verification and validation
(V&V)
actions or configuration audits reveal
discrepancies,
recursive interactions occur, which
includes
predecessor activities or processes, as
required, to
mitigate those discrepancies and to
modify, repair,
or correct the system element in question.
Figure 2
provides the context for the
implementation process
from the perspective of the U.S. Defense
Acquisition
University (DAU).
Figure 2. Context Diagram for the
Implementation
Process (DAU 2010). Released by the
Defense
Acquisition University (DAU)/U.S.
Department of
Defense (DoD).
Such figures provide a useful overview of
the systems
engineering (SE) community’s
perspectives on what is
required for implementation and what the
general
results of implementation may be. These
are further
supported by the discussion of
implementation
inputs, outputs, and activities found in the
National
Aeronautics and Space Association's
(NASA's) Systems
Engineering Handbook (NASA 2007). It is
important
to understand that these views are process
-oriented. While this is a useful model,
examining
implementation only in terms of process
can be
limiting.
Depending on the technologies and
systems chosen
when a decision is made to produce a
system element,
the implementation process outcomes may
generate
constraints to be applied on the
architecture of the
higher-level system; those constraints are
normally
identified as derived system requirements
and added
to the set of system requirements
applicable to this
higher-level system. The architectural
design has
tomust take those constraints into account.
If the decision is made to purchase or reuse
an
existing system element, it has tomust be
identified as
a constraint or system requirement
applicable to the
architecture of the higher-level system.
Conversely,
the implementation process may involve
some
adaptation or adjustments to the system
requirement
in order to be integrated into a higher-level
system or
aggregate.
Implementation also involves packaging,
handling,
and storage, depending on the concerned
technologies
and where or when the system requirement
needs to be integrated into a higher-level
aggregate.
Developing the supporting documentation
for
a system requirement, such as the manuals
for
operation, maintenance, and/or installation,
is also
a part of the implementation process; these
artifacts
are utilized in the system deployment and
use phase.
The system element requirements and the
associated
verification and validation criteria are
inputs to this
process; these inputs come from the
architectural
design process detailed outputs.
Execution of the implementation process is
governed
by both industrial and government
standards and the
terms of all applicable agreements. This
may include
conditions for packaging and storage, as
well as
preparation for use activities, such as
operator training.
In addition, packaging, handling, storage,
and
transportation (PHS&T) considerations
will constrain
the implementation activities. For more
information,
refer to the discussion of PHS&T in the
System Deployment
and Use article. The developing or
integrating
organization will likely have enterprise-
level safety
practices and guidelines that must also be
considered.
Activities of the Process
The following major activities and tasks
are
performed during this process:
Define the implementation strategy -
Implementation
process activities begin with detailed
design and
include developing an implementation
strategy
that defines fabrication and coding
procedures,
tools and equipment to be used,
implementation
tolerances, and the means and criteria for
auditing
configuration of resulting elements to the
detailed
design documentation. In the case of
repeated
system element implementations (such as
for mass
manufacturing or replacement elements),
the
implementation strategy is defined and
refined
to achieve consistent and repeatable
element
production; it is retained in the project
decision
database for future use. The
implementation strategy
contains the arrangements for packing,
storing, and
supplying the implemented element.
Realize the system element - Realize or
adapt and
produce the concerned system element
using the
implementation strategy items as defined
above.
Realization or adaptation is conducted with
regard
to standards that govern applicable safety,
security,
privacy, and environmental guidelines or
legislation
and the practices of the relevant
implementation
technology. This requires the fabrication of
hardware
elements, development of software
elements,
definition of training capabilities, drafting
of
training documentation, and the training of
initial
operators and maintainers.
Provide evidence of compliance - Record
evidence
that the system element meets its
requirements and
the associated verification and validation
criteria
as well as the legislation policy. This
requires the
conduction of peer reviews and unit
testing, as well as
inspection of operation and maintenance
manuals.
Acquire measured properties that
characterize
the implemented element (weight,
capacities,
effectiveness, level of performance,
reliability,
availability, etc.).
Package, store, and supply the
implemented
element - This should be defined in the
implementation strategy.
Artifacts and Ontology Elements
This process may create several artifacts
such as:
an implemented system
implementation tools
implementation procedures
an implementation plan or strategy
verification reports
issue, anomaly, or trouble reports
change requests (about design)
This process handles the ontology
elements shown in
Table 1 below.
Table 1. Main Ontology Elements as
Handled
within System Element Implementation.
(SEBoK
Original)ElementDefinition
Attributes (examples)
Implemented ElementAn implemented
element is a
system element that has been
implemented. In the
case of hardware it is marked with a
part/serial
number.
Identifier, name, description, type
(hardware,
software application, software piece,
mechanical
part, electric art, electronic component,
operator
role, procedure, protocol, manual, etc.)
Measured PropertyA measured property is
a
characteristic of the implemented element
established after its implementation. The
measured
properties characterize the implemented
system
element when it is completely realized,
verified, and
validated. If the implemented element
complies with
a design property, the measured property
should
equal the design property. Otherwise one
has tomust
identify the difference or non-conformance
which
treatment could conclude to modify the
design
property and possibly the related
requirements, or to
modify (correct, repair) the implemented
element, or to identify a deviation.
Identifier, name, description, type
(effectiveness, availability, reliability,
maintainability, weight, capacity, etc.),
value, unit, etc.
The main relationships between ontology
elements are
presented in Figure 3.

Figure 3. Implementation Elements

Relationships with
Other Engineering Elements. (SEBoK
Original)
Methods, Techniques, and Tools
There are many software tools available in
the
implementation and integration phases.
The
most basic method would be the use of N-
squared
diagrams as discussed in Jeff Grady’s book
System
Integration (Grady 1994).
Checking and Correctness of
Implementation
Proper implementation checking and
correctness
should include testing to determine if the
implemented
element (i.e., piece of software, hardware,
or other product) works in its intended use.
Testing
could include mockups and breadboards,
as well as
modeling and simulation of a prototype or
completed
pieces of a system. Once this is completed
successfully,
the next process would be system
integration.
Q5. Describe the core business
process and their functions

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Identifying core business processes is first
step toward
customer satisfaction
by Guest Contributor in CXO on May 30,
2002, 12:00
AM PST
Enterprises are beginning to understand
that
consistent customer service is the key to
remaining
competitive in today's market. Learn why a
critical
step in meeting customer expectations
involves clearly
defining and prioritizing core business
processes.
In today’s business environment,
organizations
know that to be competitive, they need to
respond to
change—especially as customer
expectations increase.
Customers are more mobile today, and so
expect a
certain level of quality of service
regardless of where
and how they conduct business. Customers
also expect
organizations to respond with a significant
amount of
personalization.
It is extremely difficult to meet these
challenges
in a timely manner if business processes
are widely
dispersed and inconsistent. Consistent core
business
processes and data representation is
essential to
allow decision makers to respond quickly
to the
changing market.
Defining and maintaining consistent core
business
processes is a lot easier said than done but
critical if
an organization is to survive in today’s
market. In this
article, I'll define core business processes
and explain
how to differentiate these processes from
their
implementation. I'll also pass along some
tips on how
to prioritize which processes to investigate
first.
Defining the core business process
A "core" business process is defined as the
minimum
individual tasks to be accomplished to
provide a
certain level of consistency in output—
without
any consideration to hardware, software, or
performance.
When a core process is implemented,
anything can
be added to make the process more
efficient, but
nothing can be eliminated. When the core
business
process states that certain tasks must be
performed
in sequence, then it must be reflected in the
implementation. In the same manner, any
specified
formulas or steps associated with a task
must also be
reflected within the implementation.
When asked, most organizations will claim
that
their core business processes are
documented. Yet,
typically, it is not the core business process
that has
been documented but the implementation
of that
process within a particular system. In this
scenario,
the documentation contains system or
application
process models reflecting implementation
details such
as "enter username." Most times,
documentation of a
core business process doesn’t reflect
whether a user is
identified by a username, smart card,
biometrics, or
some other method of authentication, as
long as the
organization is satisfied with the accuracy
of the documentation.
Identifying and authenticating a user is
an implementation issue, not a business
process.
It’s not easy to separate implementation
from the
core business process. Just take one
business process
and see how readily you can identify the
major tasks
involved without letting implementation
issues creep
into the mix.
And it only gets more difficult when core
business
processes become more intricate and
critical within
the enterprise.
Using the right process methodology
The methodology used to identify, derive,
or create
core business processes will vary with an
enterprise’s
size, industry, and culture.
But there are several proven
methodologies and
supporting tools for deriving and
improving business
processes.
The first three steps are straightforward:
Investigate and remove hurdles relating to
organizational cultural issues, governance
processes,
and supporting infrastructure up front.
Educate participants on what a core
business process
is, how it will benefit their respective
business area,
and the chosen methodology that will be
used to
derive these processes.
Don’t try and do all of the critical business
processes
at once. Suggest a phase approach with a
sound
transition strategy.
Once you’ve identified core business
processes, it’s
important to prioritize which ones to tackle
first.
A new business channel is a good place to
start, as
business analysis and requirements
gathering have
likely already been done, which should
provide a good
jumping-off point for identifying core
processes.
Next, tackle any business process areas
featuring
disparate results between business
units.Then, look at
processes for which new enabling
technology is being
considered. Rounding out the list are those
processes
supported by different implementation and
those
supported by more than one location or
business.
It’s never too late to start
If enterprises are to remain competitive,
they need
to reduce the complexities resulting from
widely
dispersed and often disparate business
processes.
Establishing consistent core business
processes is just one step toward meeting
increasing customer expectations in today's
market.
Dan Oliver is a managing consultant based
out of the Washington, D.C. office of
Headstrong, a global
consultancy that transforms established
companies into digital businesses that
generate added customer
and shareholder value.