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    Assignment

    S.D.C. Institute of Management Studies,Kolar

    Mohan Kumar Sahu

    MBA 1stSem.

    2012-14

    12WHCMA030

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    COMMUNICATION

    Communication is the activity of conveying information through the

    exchange of thoughts, messages, or information, as by speech, visuals,signals, written, or behavior. It is the meaningful exchange of information

    between two or more living creatures.

    One definition of communication is anyact by which one person gives to or

    receives from another person information about that person's needs, desires,perceptions, knowledge, or affective states. Communication may be

    intentional or unintentional, may involve conventional or unconventional

    signals, may take linguistic or non-linguistic forms, and may occur through

    spoken or other modes.

    People communicate with each other in a number of ways that depend upon

    the message and its context in which it is being sent. Choice of

    communication channel and your style of communicating also affects

    communication. So, there are variety of types of communication

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    Types of communication based on the communication channels

    Verbal Communication - Verbal communication refers to the form of

    communication in which message is transmitted verbally; communication is

    done by word of mouth and a piece of writing. Objective of every

    communication is to have people understand what we are trying to convey

    Nonverbal Communication - Nonverbal communication is the sending or

    receiving of wordless messages. We can say that communication other than

    oral and written, such as gesture, body language, posture, tone of

    voice or facial expressions, is called nonverbal communication. Nonverbal

    communication is all about the body language of speaker.

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    Types of Communication Based on Purpose and Style

    Formal Communication

    In formal communication, certain rules, conventions and principles are followed

    while communicating message. Formal communication occurs in formal and

    official style. Usually professional settings, corporate meetings, conferences

    undergoes in formal pattern. In formal communication, use of slang and foul

    language is avoided and correct pronunciation is required.

    Informal Communication

    Informal communication is done using channels that are in contrast with formal

    communication channels. Its just a casual talk. It is established for societal

    affiliations of members in an organization and face-to-face discussions In

    informal communication use of slang words, foul language is not restricted.

    Usually. informal communication is done orally and using gestures. In an

    organization, it helps in finding out staff grievances as people express more

    when talking informally. Informal communication helps in building

    relationships.

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    Accounting for Managers

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    Final Account

    Final account consist of Trading and P&L Account and Balance Sheet. Trading

    account shows gross profit or loss, net profit or net loss is calculated from Profit

    & Loss account and Balance Sheet is prepared to know the position of assets

    and liabilities.

    Trading Account

    Profit & Loss Account

    Balance Sheet

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    What is the difference between account and profit and loss account?

    The main difference between trading account and profit and loss

    account is that the gross profit or loss which is derived from the trading

    account shows the trend of the business and the profit and loss account

    reflects on the management of the business the final outcomes of the

    concern. Trading account deals with the cost price of the goods. All the

    expenses directly connected with the buying of goods are entered in it. It

    is credited with the sale proceeds of the goods. Profit and loss account

    deals with the expenses indirectly connected with the goods (expenses

    with the selling of the goods.)

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    Trial Balance

    It is a list of balance extracted from

    the ledger accounts

    It contains the balance of all accounts

    real, nominal and personal.

    It is prepared before the preparation

    of trading and profit and loss account.

    It does not contain the value of the

    closing stock of goods.

    Expenses due but not paid andincomes due but not received do not

    appear in the trial balance

    Balance Sheet

    It is a statement of assets and

    liabilities.

    It contains the balance of only those

    accounts which represents assets and

    liabilities.

    It is prepared after the preparation

    of trading and profit and loss account.

    It contains the value of closing

    stock, which appears on the assets

    side.

    Expenses due but not paid appear

    on the liability side and income due

    but not received appear on the asset

    side of the balance sheet.

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    Financial statement analysis

    Financial statement analysis is an analysis which highlights important relationships in

    the financial statements. It focuses on evaluation of past operations as revealed by the

    analysis of basic statements.

    Purpose

    Assessment of past performance and current position.

    Prediction of net income and growth prospects.

    Prediction of Bankruptcy and failure.

    Loan decision by Financial Institutions and Banks.

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    Organizational Behavior

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    Organizational Behavior

    Motivation

    Motivation represents an unsatisfied need which creates a state of

    tension or disequilibrium, causing the individual to move in a goal

    directed pattern towards restoring a state of equilibrium by satisfying

    the need. The following are the key elements of motivation:

    Creative Freedom

    Love to learn

    Learn to failure

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    Maslow's Need Hierarchy Theory

    Maslow's need hierarchy theory was developed by Maslow, which says that there are

    actually five stages in every need of the human.

    1. Basic needs - The basic amenities that an individual require for his livingness.

    2. Security needs - Once he gets satisfied with his basic needs, he also looks for his

    security.

    3. Social needs - When he/she gets a secured life, they start looking for various social

    aspects like interacting with people and they look for a society for them to be supported.

    4. Self - esteem - The individuals seeks themselves to be respected and recognized in a

    society.

    5. Self - actualization - This is the final stage where the individual makes themselves

    satisfied with all the needs and attains their objective of life.

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    Need ome JobSelf-actualization

    education, religion,

    hobbies, personal growth

    training, advancement,

    growth, creativity

    Esteemapproval of family,

    friends, community

    recognition, high status,

    responsibilities

    Belongingness family, friends, clubs

    teams, depts, coworkers,

    clients, supervisors,

    subordinates

    Safetyfreedom from war,

    poison, violence

    work safety, job security,

    health insurance

    Physiological food water sex Heat, air, base salary

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    Theories of Motivation

    Instinct Theory of Motivation

    Incentive Theory of Motivation

    Drive Theory of Motivation

    Arousal Theory of Motivation

    Humanistic Theory of Motivation

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    Managerial Economics

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    Demand

    Demand refers to the total or a given quantity of a commodity that ispurchased by a consumer in the market at a particular price at a particular

    time. Demand is created by consumers and is dependent on the utility of a

    product or service. A consumer wants to buy more at a lower prices and

    wants to save his money income.

    Types of Demand

    Price Demand

    Income Demand

    Cross Demand

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    Individual Demand

    The individual demand is the demand of one individual or firm. It represents the

    quantity of a good that a single consumer would buy at a specific price point at aspecific point in time. While the term is somewhat vague, individual demand can be

    represented by the point of view of one person, a single family, or a single

    household.

    Market Demand

    Market demand provides the total quantity demanded by all consumers. In other

    words, it represents the aggregate of all individual demands. There are two basic

    types of market demand: primary and selective. Primary demand is the total demand

    for all of the brands that represent a given product or service, such as all phones or

    all high-end watches. Selective demand is the demand for one particular brand of

    product or service, such as the iPhone or a Michele watch.

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    ECONOMIC ORDER QUANTITY

    In a continuous review system, ordering too often (in quantities too small)

    increases the annual cost of placing orders. Ordering too infrequently (in quantities

    too large) increases the annual cost of holding inventory. The economic order

    quantity (EOQ) is the quantity that minimizes the sum of these two costs. It is

    based on the following assumptions:

    The demand for the item is constant and known with certainty.

    There are no upper or lower limits on the order quantity (lot size).

    Stock outs are not permitted.

    There are no quantity discounts.

    Lead time and supply are known with certainty; lead time is constant.

    Order quantities for individual items are made independently.

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    Manufacturers and service providers must manage dependent demanditems-that is, items that are required as components or inputs to aproduct or service.

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    Degree of price elasticity of Demand

    Perfectly Elastic Demand

    Small changes in price leads to an infinite change in demand.

    Perfectly Inelastic Demand

    Whatever may be the change in price quantity demanded will remain perfectly constant.

    Relative Elastic Demand

    A slightly change in price leads to more than proportionate change in demand.

    Relatively Inelastic Demand

    A large change in price leads to less than proportionate change in demand.

    Unitary Elastic Demand

    A proportionate change in price will lead to equal proportionate change in demand.

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    Business Mathematics

    &Statistical Analysis

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    Non-random, Non-Probability, or Judgment sampling

    Quota Sampling

    Convenience Sampling

    On the spot Sampling

    Hypothesis

    Hypothesis is a tentative proposition formulated for empirical testing. It is

    a provisional formulation; a tentative solution of the problem posed by the

    researcher. A hypothesis is something more than a wild guess but less than

    a well-established theory. In science, a hypothesis needs to go through a

    lot of testing before it gets labeled a theory. In the non-scientific world,

    the word is used a lot more loosely. A detective might have a hypothesis

    about a crime, and a mother might have a hypothesis about who spilled

    juice on the rug. Anyone who uses the word hypothesis is making a guess.

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    Types of Hypothesis :-

    With reference to function

    Descriptive Hypothesis

    Relational Hypothesis

    General ClassificationWorking Hypothesis

    Null Hypothesis

    Statistical Hypothesis

    Level of abstraction

    Common sense Hypothesis

    Complex Hypothesis

    Analytical Hypothesis

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    One-Tailed Test

    A statistical test in which the critical area of a distribution is one-sided so that it is either

    greater than or less than a certain value, but not both. If the sample that is being tested falls

    into the one-sided critical area, the alternative hypothesis will be accepted instead of the

    null hypothesis. The one-tailed test gets its name from testing the area under one of the

    tails (sides) of a normal distribution, although the test can be used in other non-normal

    distributions as well.

    Two-Tailed Test

    A statistical test in which the critical area of a distribution is two sided and tests whether a

    sample is either greater than or less than a certain range of values. If the sample that isbeing tested falls into either of the critical areas, the alternative hypothesis will be accepted

    instead of the null hypothesis. The two-tailed test gets its name from testing the area under

    both of the tails (sides) of a normal distribution, although the test can be used in other non-

    normal distributions.

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    MIS (Management Information System)

    Management information system is the discipline covering the application of people,

    technologies, and procedures to solve business problems. Management information systems

    are used to analyze other information system applied in operational activities in the

    organization. It is the group of information management methods tried to the automation or

    support of human decision making.

    Types of operating systems:-

    Single user operating system

    Simple batch system

    Multi-programmed system

    Time sharing system

    Parallel system

    Distributed system

    Real time system

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    Information Technology ForBusiness

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    Types and Terminology

    The terms Management Information System (MIS), information system, Enterprise

    Resource Planning(ERP), and information technology management are often confused.

    Information systems and MIS are broader categories that include ERP. Information

    technology management concerns the operation and organization of information

    technology resources independent of their purpose.

    Management information systems, produce fixed, regularly scheduled reports

    based on data extracted and summarized from the firms underlying transaction

    processing systems to middle and operational level managers to identify and

    inform structured and semi-structured decision problems.

    Decision Support Systems (DSS) are computer program applications used by

    middle and higher management to compile information from a wide range of

    sources to support problem solving and decision making.DSS is majorly used for

    semi-structured and unstructured decision problems.

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    Executive Information Systems (EIS) is a reporting tool that provides quick

    access to summarized reports coming from all company levels and departments

    such as accounting, human resources and operations.

    Marketing Information Systems are Management Information Systems designed

    specifically for managing the marketing aspects of the business.

    Office Automation Systems (OAS) support communication and productivity in

    the enterprise by automating work flow and eliminating bottlenecks. OAS may be

    implemented at any and all levels of management.

    School Information Management Systems (SIMS) cover school administration,

    and often including teaching and learning materials.

    Enterprise Resource Planning facilitates the flow of information between all

    business functions inside the boundaries of the organization and manage the

    connections to outside stakeholders.

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    Business Perspective

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    What is SMEs?

    Small and medium enterprises(SMEs) or small and medium-sized businesses(SMBs)

    are companies whose personnel numbers fall below certain limits. The abbreviation "SME"

    is used in the European Union and by international organizations such as the World Bank,

    the United Nations and the World Trade Organization (WTO). Small enterprises outnumber

    large companies by a wide margin and also employ many more people. SMEs are also said

    to be responsible for driving innovation and competition in many economic sectors.

    Enterprises engaged in the manufacture or production, processing or preservation of goods

    as specified below:

    (i) A micro enterprise is an enterprise where investment in plant and machinery does not

    exceed Rs.10 lakh

    (ii) A small enterprise is an enterprise where the investment in plant and machinery is more

    than Rs. 25 lakh but does not exceed Rs. 5 crore and

    (iii) A medium enterprise is an enterprise where the investment in plant and machinery is

    more than Rs.5 crore but does not exceed Rs.10 crore.

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    Problems for SMEs

    External and Internal Problems

    Teething Problems

    License Problems

    Loan and Finance Problem

    Location

    Raw materials

    Technology

    Marketing

    High Infant Mortality

    Managerial Inefficiency

    Faulty Planning

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    BIFRThe Board for Industrial and Financial Reconstruction (BIFR) is an

    agency of the government of India, part of the Department of Financial

    Services of the Ministry of Finance. Its objective is to determine sickness of

    industrial companies and to assist in reviving those that may be viable and

    shutting down the others.

    RemediesRestructuring the capital base of the company.

    Inducting more capital to improve its resource position.

    Merger and Amalgamation of the sick company with a healthy unit.

    Providing soft loans to the company.

    Rescheduling its loan.

    Bringing about a change in its management.

    Writing off the interest burden of the company.Bringing about technological changes and modernization in the company.

    Providing fiscal concessions like tax rebate, tax exemptions or tax reliefsto

    it.

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    Structure and objectives

    The Board has a Chairman and from two to fourteen other members, all to be

    qualified as High Court judges or else to have at least fifteen years of relevant

    professional experience. The Board only handles large or medium sized sickindustrial companies in which large amounts have been sunk. Under the Sick

    Industrial Companies Act the Board of a sick industrial company is legally

    obliged to report it to the BIFR, and the BIFR has the power to make whatever

    inquiries are needed to determine if the company is in fact sick.

    Among other objectives the act was to provide a way to revive sick industrial

    companies and release public funds.If a company is found to be sick, the BIFR

    can give the company reasonable time to regain health (bring total assets above

    total liabilities) or it can recommend other measures. The board can take other

    actions including changes to management, amalgamation of the sick unit with ahealthy one, sale or financial reconstruction.

    The BIFR was intended to bridge the legal gap between sickness and revival. It

    would impose time schedules for revival related activities to be completed,

    oversee their implementation and conduct periodic reviews of sick accounts.

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    Research :

    Research is the process of systematic and in depth in study or search for any particular

    topic, Subject or area of investigation, backed by the collection, presentation and interpretation of

    relevant details or data.

    Research Methodology :

    Research methodology is a systematic and logical study of issue or problem or

    phenomenon through scientific method. According to clover and balsley, It is the process of

    systematically obtaining accurate answer to significant pertinent questions by the use of scientific

    method gathering and interpreting information.

    Research Scope :Research scope refers to the areas to which research can be extended to. It starts right

    from identifying problem areas, establishing relationship between variables, aid in forecasting,

    managerial functions, marketing analysis, strategy, innovation and design making.

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    Objectives of research

    Description: Description is an exploratory phase undertaken using graphical representation

    and statistical measures that are not inferential.

    Explanation: Explanation involves prices hypotheses to be confronted and employs inferential

    statistical tests.

    Modeling: Modeling requires that the descriptive and explanatory phase brought sufficient

    information and knowledge about the system, so to build a model.

    Control: Control is an objective rarely set in psychological research as it brings important

    ethical consideration.

    Forecasting: Forecasting Helps in identifying and exploiting the potential opportunities that

    may arise in feature

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    Types of research:

    Policy research is basically research with policy implementations. Research which conducted for

    the specific purpose of application or research with policy.

    Fundamental Research are original and investigative studies of a basic nature. The topic or area

    of investigation would be new.

    Experimental research is based on experiments conducted in the laboratory. Hence it is also

    known as laboratory research.

    Survey research this kind of research finds favor with almost all the social science research.

    Action research This type of research is conducted through direct action. A good example of

    action research is a study of test marketing.

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    Problems faced in marketing research on scientific methods :

    Investigator Involvement in the use of result: Since the investigator is anxious about the result as it

    affects their career or unconsciously find the data that supports mass of their clients.

    Imprecise Measuring devices : One of the features that distinguish the scientific method from

    scientific activities is the emphasis laid on the accuracy of measurements of results.

    Time pressure for result: Marketing research is subject to the pressure of time. Competition and

    customer driven market forces the marketing managers to get justin time date.

    Difficulty in using Experiments to test Hypothesis: Experimentation in a very valuable tool in

    research because it helps in identifying causes of effects relationships more clarity than

    Greater Complexity of subject: The most variant determinant of marketing activity is the reaction of

    the people to a given stimuli.

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    Financial Management

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    WORKING CAPITAL MANAGEMENT: LONGTERM

    INVESTMENT FUNCTION

    Investment Function

    Short Term Current Assets

    Cash

    Bank

    Sundry Debtors

    Inventory

    B/Rs

    Investment Function

    Short Term Financial Assets (Securities)

    Certificate Of Deposits

    Commercial Papers

    Treasury Bills

    Mutual Funds

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    T Of I t t F ti

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    Types Of Investment Functions

    Investment Function

    Long-term

    1) Fixed Assets(Real assets)

    A) Tangible Asset

    B) Intangible Asset

    2) Financial Assets

    Short-term

    1) Current Assets

    2) Financial Assets

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    Long Term Investment Function This Function Is Known As Capital Budgeting Decision

    Long Term Investment Decision Making

    Huge Funds Outlay

    Time Period Is Longer

    Generates Benefits For Future Period In Cash Flows

    Select The Assets Whose Benefits Are More Than Outlay

    Short Term Investment Function Of Fm

    Investment Decision For Working Capital Management Of The Firm

    Investment Funds In Current Assets

    Duration Is Short Period

    Necessary For Operating Of Day To Day Activities Of The Firm

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    Production & Operational

    Management

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    Enterprise Resource Planning:

    Concept:

    Its an integrated cross-functional software that reengineers manufacturing, distribution, finance, HR,

    & other basic business processes of a company to improve its efficiency, agility & profitability. ERP

    is the technological backbone of e-business

    An enterprise wide transaction framework with links into sales order processing, inventory

    management & control production & distribution planning and finance.

    Cross-functional enterprise system driven by an integrated suite of software modules that supports

    the basic internal business processes of a company.

    Integrated management of business as a whole; the view point of effective use of management

    resources, to improve the efficiency of an enterprise.

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    Use:

    ERP software packages are for:

    Ideal for manufacturing industry.

    All functions for planning & managing core businesses like sales management,

    finance management, accounting & financial affairs.

    Designed to model and automate many of the basic processes of the company, with goal of

    integrated information across the company.

    Eliminating complex, expensive links between computer systems.

    Benefits of ERP for Business:

    Integration across all business processes- To realize the full benefits of an ERP system it

    should be fully integrated into all aspects of your business from the customer facing front end,

    through planning and scheduling, to the production and distribution of the products you make.

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    Automation enhances productivity - By automating aspects of business

    processes, ERP makes them more efficient, less prone to error, and faster. It also

    frees up people from mundane tasks such as balancing data.

    Increase overall performance- By integrating disparate business processes, ERP

    ensures coherence and avoids duplication, discontinuity, and people working at

    cross purposes, in different parts of the organization. The cumulative positive effect

    when business processes integrate well is overall superior performance by the

    organization.

    Quality Reports and Performance Analysis -Analysis on ERP will enable you

    to produce financial and boardroom quality reports, as well as to conduct analysis

    on the performance of your organization.

    Integrates across the entire supply chain- A best of breed ERP system should

    extend beyond your organization and integrate with both your supplier and customer

    systems to ensure full visibility and efficiency across your supply chain.

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    Importance of ERP are:

    Business Integration

    Flexibility

    Better analysis and planning capabilities

    Use of latest technology

    Enterprise agility

    Good decision support

    ERP Systems & Its

    Components

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    Human Resource

    Management

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    Human Resource & Human Resource Development

    A business unit needs material resources as well as human resource for the conduct of various

    activities. Of all the "M"s in management (such as Materials, Machines, Methods and Money)

    the most important "M" stands for Men i.e., manpower working in the organization. It is through

    manpower/employees that all other ingredients of an enterprise-money, machines, materials,

    marketing, etc., are managed. In brief, Human Resource (HR) constitutes the most important andthe most productive resource of an industrial / business unit.

    Human Resource Development (HRD) means to develop available manpower through suitable

    methods such as training, promotions, transfers and opportunities for career development. HRD

    programs create a team of well-trained, efficient and capable managers and subordinates. Such

    team constitutes an important asset of an enterprise.

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    Importance of Human Resource in Management

    Human resource is most important resource in management and needs to be used efficiently. This

    is because success, stability and growth of an organization depend on its ability in acquiring,

    utilizing and developing the human resources for the benefit of the organization. In the final

    analysis, it is the people (i.e. employees) who produce promising results and generate a climate

    conductive to the growth and development of an organization. HR is a highly productive corporate

    asset and the overall performance of companies and corporations depends upon the extent to

    which it is effectively developed and utilized.

    The function of management is to manage managers, workers and work". The importance of

    manpower in business management is now universally accepted. Employees have a capacity to

    grow and develop, if suitable opportunities are offered. They give positive response to monetary

    and non-monetary incentives, training opportunities, favorable work environment and motivation.

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    Definitions of Human Resource Planning - HRP

    1. The process of determining manpower requirements and the means for meeting those

    requirements in order to carry an integrated plan at the organization.

    2. Strategy for the acquisition, utilization, improvement and preservation of an enterprise's

    human resources. It relates to establishing job specifications or the quantitative requirements

    of jobs determining the number of personnel required and developing resources of manpower.

    3.The ongoing process of systematic planning to achieve optimum use of an organization's

    most valuable asset - its human resources. The objective of human resource (HR) planning is

    to ensure the best fit between employees and jobs, while avoiding manpower shortages or

    surpluses. The three key elements of the HR planning process are forecasting labor demand,

    analyzing present labor supply, and balancing projected labor demand and supply.

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    Objectives of Manpower / HR Planning

    To ensure optimum utilization of human resources currently employed in the Organization.

    To determine the future manpower requirements of the Organization as per the need for

    renovations, modernization, expansion and growth programs.

    To determine the recruitment level.

    To ensure that necessary human resources are available as and when required.

    To assess future accommodation requirements.

    To design the basis for management development programs so as to develop the required

    talents among the employees selected.

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    Marketing Management

    M k t S t ti

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    Market Segmentation

    In Mass marketing, the seller engages in the mass production, mass distribution and mass

    promotion of one product for all buyers.

    The proliferation of advertising media and distribution channels is making it difficult to

    practice onesize fits allmarketing.

    Market segmentation is an effort to increase a companysprecision marketing.

    The process of dividing the market into different groups.

    It allows the marketer to better respond to the needs of the consumer through different

    marketing mixes.

    A market segment consists of a large identifiable group within a market with similar wants,

    purchasing power, geographical location, buying attitudes or buying habits.

    Segmentation is an approach midway between mass marketing & individual marketing.

    Each segment buyers are assumed to be quite similar in wants and needs

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    Bases for Consumer Market Segmentation

    Market

    Segmentation

    Geographical

    Regions, cities,

    states, countries

    Demographic

    Age,

    gender,

    income,

    occupation,religion,

    social class,

    family size

    Psychographic

    Life style,

    personality,

    values,beliefs

    Behavioral

    Occasions,

    Benefits,

    Usage rate,Loyalty status

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    Levels of Market Segmentation

    Segment marketing: Dividing the market into different segments on the basis of

    homogenous need.

    Niche marketing: More narrowly defined group, typically a small market whose needs

    are not well served. Marketers effort to position their product or service in smaller

    markets that have similar attributes and have been neglected by other marketer

    Local marketing: Marketers offer customized products to suit the local markets.

    Individual marketing: Extreme marketing in which marketers focus on individual

    customers.

    Mass marketing: the seller of the marketer of the product targets the mass market or

    the entire consumer base.

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    Criteria for Market SegmentationIdentity: members of different segments can be readily identified by common

    characteristics.

    Accessibility: segments must be aware of the product & these products should available to

    them at reasonable cost.Responsiveness: segments must react to the changes in any elements of marketing mix.

    Size: segment must be reasonably large enough to be profitable target.

    Nature of Demand: refers to the different quantities demanded by various segment

    Measurability: purpose is to measure the changing behavior pattern of consumers.

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    Quantitative Methods &

    Operations Research

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    Quantitative Methods & Operations Research

    Operational research:

    operational research in British usage, is a discipline that deals with the application of advanced

    analytical methods to help make better decisions. It is often considered to be a sub-field

    of mathematics. The terms management science and decision science are sometimes used as

    synonyms.

    Linear programming Problem:

    Linear programming (LP, or linear optimization) is a method to achieve the best outcome (such as

    maximum profit or lowest cost) in mathematical model whose requirements are represented by linear

    relationships. Linear programming is a special case of mathematical programming.

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    OR methods and techniques:

    Computer simulation: allowing you to try out approaches and test ideas for

    improvement.

    Optimization: narrowing your choices to the very best when there are so many feasible

    options that comparing them one by one is difficult.

    Probability and statistics: helping you measure risk, mine data to find valuable

    connections and insights in business analytics, test conclusions, and make reliable

    forecasts.

    Problem structuring: helpful when complex decisions are needed in situations with

    many stakeholders and competing interests.

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    Phases of Operational Research:

    The first phase is to identify the problem through the observation of its symptoms if it is not

    obvious. Relevant questions to what the problem is about are asked to clear any doubts and the

    objectives, limitations and requirements of the client are established.

    In the second phase, formulation as a mathematical model would take place based on the problem

    in the previous phase. The choice of the model is crucial to success so a lot of considerations need

    to be made for the restrictions, limitations and assumptions to be put in place.

    Model validation, the third phase of the project, involves running the algorithm for the model on

    the computer. This is to ensure that the input data or computer program is free from errors and

    correctly represents the model. It is also to check and ensure that the results from the algorithm

    seem reasonable.

    S f i

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    Scope of operations management:

    Quantitative analysis of operational processes with respect to quality, timing and costs can only be

    performed if tolerances, operation times, routings and failure rates are known. In most cases these

    variables can only be known in stochastic terms. This type of analysis requires both statistical

    analysis of real life data or data from laboratory experiments, but also application of mathematical

    modeling techniques.

    Operations management deals with organizations and people working in organizations. They take

    part in transformation processes themselves, so designers of these processes have to take the

    human possibilities and limitations into consideration.

    The idea of optimal control and design of operational processes presupposes some criteria and

    objectives for optimality. Cornerstone of these notions is the economic evaluation of control

    policies and design choices. Economic research contributes to the development of qualitative and

    quantitative models for design and control of operational processes and for risk management.

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    Legal Aspects of Business

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    Various classes of contract: The law relating to contracts in India is contained in Indian

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    Various classes of contract: The law relating to contracts in India is contained in Indian

    Contract Act, 1872. The Act was passed by British India and is based on the principles of English

    Common Law.

    On the basis of validity:1. Valid contract: An agreement which has all the essential elements of a contract is called a valid

    contract. A valid contract can be enforced by law.

    2. Void contract[Section : A void contract is a contract which ceases to be enforceable by law. A

    contract when originally entered into may be valid and binding on the parties. It may subsequently

    become void.There are many judgments which have stated that where any crime has been

    converted into a "Source of Profit" or if any act to be done under any contract is opposed to

    "Public Policy" under any contractthan that contract itself cannot be enforced under the law-

    3. Voidable contract[Section 2(i)]: An agreement which is enforceable by law at the option of one

    or more of the parties thereto, but not at the option of other or others, is a voidable contract. If the

    essential element of free consent is missing in a contract, the law confers right on the aggrieved

    party either to reject the contract or to accept it. However, the contract continues to be good and

    enforceable unless it is repudiated by the aggrieved party.

    N id ti N t t

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    No consideration No contract:

    Natural love and affection :

    An agreement made without consideration is valid if it is express in writing and registered

    under the law and it is made on account of natural love and affection between parties standing

    in a near relation to each other.

    Example-1: An agreement entered into by a husband with his wife, during quarrel and

    disagreement, whereby the husband promised to give some property to his wife. The

    agreement is void because, under the circumstances ,there is no natural love and affection

    between husband and wife.

    Voluntary compensation :

    A promise made without consideration is valid if it is a promise to compensate wholly or in a

    part, a person who has already voluntarily done something for the promissory or something

    which the promissory was legally bound to do.

    Consumer Protection Act, 1986:

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    Consumer Protection Act, 1986:

    Consumer Protection Act, 1986 is an act of Parliament of India enacted in 1986 to protect interests

    of consumers in India. It makes provision for the establishment of consumer councils and otherauthorities for the settlement of consumers' disputes and for matters connected therewith.

    Central Consumer Protection Council:

    It is established by the Central Government which consists of the following members:

    The Minister of Consumer AffairsChairman, and

    Such number of other official or non-official members representing such interests as may be

    prescribed.

    State Consumer Protection Council:

    It is established by the State Government which consists of the following members:

    The Minister in charge of consumer affairs in the State GovernmentChairman.

    Such number of other official or non-official members representing such interests as may be

    prescribed by the State Government.

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    Assignment

    S.D.C. Institute of Management Studies, Kolar

    Mohan Kumar Sahu

    MBA 3rdSem.

    2012-14

    12WHCMA030

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    Entrepreneurship and

    New venture creation

    Meaning and Function of Entrepreneur

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    Meaning and Function of Entrepreneur

    Meaning -:

    Entrepreneur is one who innovates, raises money, assembles inputs, undertakes, risks, bearsuncertainties and also performs the managerial functions of decision making and co-

    ordination.

    Functions -:

    Risk assumption function -:

    An entrepreneur act as a risk-bearing agent of production since he bears a greater

    amount of uncertainties in business.

    Managerial function -:

    The entrepreneur performs the managerial functions like coordination, organization

    and supervision. He performs all the managerial functions starting with planning and ending

    with controlling.

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    Myths Of Entrepreneurship

    The Risk Taking myth -:

    Most successful entrepreneurs take wild, uncalculated risks in starting their companies. Risk

    is an intrinsic part of any business venture.

    The strategic vision myth -:

    The successful entrepreneurs have a well-considered business plan and have researched and

    developed their ideas before taking action.

    The venture capital myth -:

    Most successful entrepreneurs start their companies with millions in venture capital to

    develop their idea, buy supplies and hire employees.

    Mistakes of Entrepreneurship

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    Mistakes of Entrepreneurship

    Management mistakes -:

    Poor management cause business failure. Lack of leadership ability, sound

    judgment and knowledge make business unsuccessful.

    Lack of experience

    Small business managers need to have experience in the field that they want to

    enter.

    Failure todevelop a strategic plan -:

    Many small businesses neglect the process of strategic planning feel will only

    benefit large companies.

    Poor location -:

    Poor business location selected with proper investigation.

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    Meaning and Features of Business Ethics

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    Meaning and Features of Business Ethics

    Meaning -:

    Applications of ethics to business. To be more specific, business ethics is the study of

    good and evil, right and wrong, and just and unjust actions of businesses.

    Features -:

    For the long run existence and sustained profitability of the firm, business is required

    to conduct itself ethically. Business needs to function as responsible corporate citizen of the

    century.

    To be considered ethical, business must draw its idea about what is desirable behavior

    from the same source as anyone else. It should not try to evolve its own principles to justify

    its actions.

    Need of Business Ethics

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    Need of Business Ethics

    Technology -:

    The added capabilities or technology have created a new level of transparency and immediacy

    to business communication . Now the conduct of businesses around the globe is more exposed

    that it was never was before.

    Competition -:

    Rising completion brings with it added pressure to corners. Simultaneously, leaders arelooking for new ways to differentiate their companies and more them to a new level of

    excellence.

    Public Perception and the law -:

    There is a perceived decline in social ethics that yields uncertainty. Managers are no longer

    comfortable assuming that employees joining their companies posses the desired ethical

    values.

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    Human Resource

    Acquisition andDevelopment

    Meaning & Objective Of Training

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    g j g

    Meaning -:

    The training as the organized procedure by which people learn knowledge and /or sill for

    a definite purpose.

    Objectives of Training

    Prepare the employee to meet the changes -:

    To prepare the employee, both new and old to meet the present as well as changing

    requirements of the job and organization.

    To provide basis knowledge and skills to new entrants -:

    Training is very essence to provide the basic knowledge and skills to the new entrants.

    To assist the employees -:

    To assist the employees to function more effectively in their present position by making

    them aware of the latest concepts.

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    Need For Training

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    Need For Training

    To increase productivity -:

    Instruction can help employees increase their level of performance on their present

    assignment. Increased human performances often directly leads to increased operational

    productivity and increased company profit.

    To improve quality -:

    Quality increases may be in relationship to a company service, or in references to the

    adjustments in the event of sudden personnel alterations.

    Personal growth -:

    Employees on a personal basis gain individually from their exposure to educational

    experiences. Again management development programmes seem to give participants a wider

    awareness and enlarged skill and make enhanced personal growth possible.

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    Methods Of Training The Employees

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    g p y

    On The Job Method -:

    Experience -:

    This method involves learning by experience has proved to be very efficient. To make this

    approach, it should be supplemented with other methods of training

    Apprenticeship Training -:

    This method of training is meant to give the trainee sufficient knowledge and skill in those

    trades and crafts in which a long period of training is required for gaining complete

    proficiency.

    Job Rotation -:

    This method involves transferring a trainee from one job to another on a systematic

    basis. If a trainee is rotated systematically from one job to another, the general background of

    the trainee in the organization is broadened.

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    Off the Job training Method

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    g

    Conferences -:

    In this method,, managers and potential managers attend the conferenceprogrammes in which they pool their ideas and experience with certain problems which are a

    common subject of discussion.

    Case Studies -:

    In this method, instructor describes the actual situation or problems of a specific

    concern and the participants are encouraged to take part in the objective discussion of the

    problem.

    Simulation -:

    In simulation, the real situation of work environment in an organization is

    presented in the training session.

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    Employee Relationship

    and Management

    Meaning And Function Of Trade Union

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    g

    Meaning -:

    The organization formed by the workers is order to resist employers exploitation

    and protect and safeguard their interests is called trade union.

    Function -:

    Militant function -:

    These functions include protecting the workers' interest, i.e., hike in wages, providing more

    benefits, job security tec., through bargaining and direct action such as strikes, gheraos etc.

    Social Functions -:

    These functions include carrying out social service activities, discharging social

    responsibilities through various sections of the society like educating the customers.

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    Type Of Trade Union

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    yp

    Paper Unions -:

    Paper unions are those unions which are established to get a platform or a vice in a

    political setting. Most trade unions which are registered in India are paper unions.

    Ad Hoc Unions -:

    These unions are established to secure some definite and immediate objective. Thee

    unions are strike committees or action committees. This membership is of limited

    duration.

    Local Union -:

    The term local union refers to a branch of big union or a small union of local

    importance.

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    Rights Of Recognized Trade Union

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    Immunity from-Civil Suits in certain cases -:

    Section 18 of the trade union provides that no suit or legal cab be maintained in any civil

    court against any registered trade union.

    Enforceability of Agreement -:

    Section 19 provides that an agreement between the members of a registered. Trade union in

    restraint of trade shall not be void or voidable which means agreement made.

    Separate fund for political purposes -:

    A registered trade union may constitute a separate fund from contributions sepatetley levied

    for or made to that fund from which payment may be made for the promotion of the civic and

    political interest of its members.

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    Performance and

    CompensationManagement

    Meaning And Objectives Of Performance Appraisal

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    Meaning -:

    Performance appraisal is a systematic, periodic and so far as humanly possible, an impartial

    rating of any employees excellent in matters pertaining to his present job and to his

    potentialities for a better job.

    Objectives -:

    Appraise the performance -:

    It assists the supervisor to appraise the performance of his employs which is of immense use

    to the management.

    Placement of employees -:

    It helps in the placement of employees proper and also in finding ou the misfits. Who may be

    transferred to the right places.

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    Modern Methods Of Performance Appraisal

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    Assessment centers -:

    An assessment centre typically involves the use of methods like social events, tests and

    exercise, assignments being given to a group of employees to assess their competencies to

    take higher responsibilities in the future.

    Human resource accounting method -:

    Human resources are valuable assets for every organization. Human resource accounting

    method tries to find the relative worth of these assets I the terms of money.

    Management by Objectives -:

    The essence of MBO is participative goal setting, choosing course of actions and decision

    making. An important part of the MBO is the measurement and the comparison of the

    employeesactual performance with the standards set.

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    Business Marketing

    Meaning And Objective Of Pricing Policy

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    Meaning -:

    Pricing policies are the policies concerned with price of an item or product which are evolved

    to adjust the base price of a product for different types of customers at different geographical

    locations.

    Objectives -:

    Market Penetration -:

    Market penetration may be a very important objective, particularly for new exporters. A firm

    may attempt to penetrate the market with a low price.

    Market Skimming -:

    This is often the case with innovative products. The product is introduced with a high initial

    price to skim the cream of the market. The price may be subsequently reduced to achieve

    greater market penetration.

    Forces Influencing Price Decision

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    Cost -:

    By understanding the costs, marketers can judge profitability in advance.

    Demand -:

    Demand is a very important determinant of the pricing decision. Elasticity is measured and

    price is decided based on the type of elasticity.

    Government -:

    Government interference such as control of prices, levying of taxes etc. will also add to the

    prices of the product.

    Type of Buyers -:

    Different types of buyers have different motives and values. Pricing decision is based onperceived value o the product in the minds of customers.

    Pricing Strategies Of Industrial Marketers

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    Competitive Bidding -:

    A large volume of business in the industrial market is decided through competitive bidding.

    Generally, selling to government undertakings and public sector companies are done by

    competitive bidding.

    Pricing new products -:

    There are two pricing strategies available for a new product that is in the introductory stage of

    its life cycle. These are: (i) Skimming strategy (ii) Penetration Strategy.

    Pricing across the product life-cycle -:Pricing strategies vary as the industrial product

    moves through its economic life cycle. The concept of the product life cycle includes 4 stages

    which a product undergoes; namely, introduction, growth, maturity and decline.

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    Service Marketing

    Meaning And Characteristics Of Tourism

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    Meaning And Characteristics Of Tourism

    Meaning -:

    Tourism is a temporary, short term movement of people, establishing relationship with other

    and involves complex mixture of material and psychological elements.

    Characteristics -:

    The tourism industry is highly inflexible.

    The service provided by the tourism industry is highly perishable.

    The destination is fixed.

    It requires large financial investment.

    Tourism Marketing Mix

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    Tourism Marketing Mix

    Product -:

    Includes accommodation, restaurants, attraction, recreation, shopping and transportation.

    Price -:

    Transport charges, accommodation charges, communication charges and other allied charges.

    Place -:

    Includes information and communication, transportation, accommodation and food,

    amusement shopping etc.

    Promotion -:

    Advertising, sales promotion, word of mouth communication, personal selling.

    Impact of Tourism on Society

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    Economical impact -:

    Business trips, exhibitions, seminars, conventions, workshops etc. benefit the local people

    economically.

    Educational Impact -:

    People visiting different places leads to growth of knowledge, exchange of ideas and

    information, builds religious and cultural tolerance.

    Political Impact -:

    Various elected representatives and party leaders visit other places to establish link for

    economic and political growth and promote goodwill.

    Social Impact -:

    People visiting their relatives, friends, pleasure trips.

    Nature of Tourism

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    The tourism industry is highly inflexible -:

    The capacity of a hotel in terms of rooms, or seating capacity in a transport facility is fixed

    and it is not possible to meet sudden demand during peak seasons.

    Intangibility complicates the task of marketers -:

    Tourism is a multi-segment industry in which the transportation and accommodation services

    constitute a place of significances.

    Large financial investment -:

    Modern tourist establishment requires large financial investment both to start and to maintain

    the services making it high risk service as the rate of return is critically important.