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MANAGEMENT PROGRAMMETerm-End Examination
December, 2O05
MS-l ; MANAGEMENT UNCTIONSND
BEHAVIOUR
Tirne 3 hours Mdximum Morks : 100
(Weishtdse70Vd
'
(i) There are t&o SectlansA and B
(ii) Atternpt any thrce questions rom SectionA, eoch
question canying 20 morks
(iii) Section B is compulsory and corries40 morks
SECTION A
1. Enumerate various sgstemsand processes nvolved in
managing an organisation. Briefly explain system concept
and its inl€r-relationship with subsystems in an
organisational et-up.
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2. Discuss various techniques used in d€cision making.
Describe what are the main barri€rs to effective decision
maling. Explainwith examples.
3. How do Tradrtional,Behavioural nd lnteractronist ie$s
explain the processof conflict ? Evaluate he chang€s
which iake place within and bet'reen the groups as a result
of longstanding nter-group onflict.
4. "Various multi-faceted task and activities o{ an
organisation have to be difler€ntiated into smaller,
manageable components to faciLitat€ eJ{icient
achievementof objectives. Elaborate his statementand
discussunderlying issueswith sriiable examples.
5. Write short notes on any three of ihe {ollc^ring r
(i ) Responsibilitiesf a manager owardssociety
(ii) MBO
(iii) Organisational rulture and cljmai€
(iv) Span of controland levelsof management
(v) Leadership siyles
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SECTTON B
6. Please read th€ case aDdanso./er he quesiionsgtven at th€
Case
One alternoon in June 1972, Seth, ihe indusirial
engineer o[ ABC CompaDy, was ca]led ]o the office of
hjs immediate superior Kapil, the production rnanager.
Kapil said, "Seih. I want to discussa situation in the
ptodqction dppartmeni. A lot of people feel tha( Joshi is
oot the right man for ihe Assistant Superintendent,s
position. Th€ Presid€ni and others have decided that I
har,€ got to lire Joshi or at least mov€ him out ol
produclion.Ev€ryonewanis to tire Joshi, but j won't do
il to him. I was talking r'irh Bhal rhi. morning. dnd we
decided hat you might be able to make use of Joshi in
Vourd€paftment.
Seth was surprised by borh th€ iniormaiion, and the
proposal.
Kapil concluded his comments with,',Seth t amaskng you to iake Joshi. You can sa9'No. Bui ihen he
g€is fired. I have told Josbi this. Also, Joshi kDows hat
if he goes with you he wjii take a pay cut. How€ver, I
ihink you can_make use of him both to gour ot,\,n and his
satistaciion.You are. anl^,Jay, arryingour an rn-process
qualiiy control, and you might be able tomak€
goodu$e
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of Joshi in view ol his long technical e\perience aI
production vrork. Thinh ii over, and lei me know by
Seih thoughf over ihe matier.
ABC Company had bear a successfulentepnse until
March 1972 at which time it suJleteda sharp declineof
prolits : saleshad fallen olf, and production costs had
isen. The Presidentadopted three measureswhich h€
hoped would improv€ the condition.Fjrst, by cre?tting n
Industrial Engineering depariment {or establishing work
standards oD all production operations, to detetmjte
which manujacturjng cosis were out of line and wh€re
r€medialaction shouldbe iaken. Seth, 28 yeals old, u/ho
had been wiih the company for two lears in thePurchasing €partment,was seiected Seth had B E and
M.B.A. degreesto his credit. Whai he lack€d in his
business experience he made up by his eagemess to
learn. He was ambitious and liked by hjs associates-He
wanted a translet from Purchasing to Productjon for
better opporiunities for advancement.
Secondly, he consulled a Management Consullation
fi.m to make a study ol the Ptoduction D€partment They
pointed out that ihe chain of command was too long
from Production Manager ihrough Plant SuperintendeDt
through Assistant Supetiniendent to Foremen. They
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recommended the elimination of the position of Assistant
Sup€riniendent.
Thirdly, he engaged an Industrial Psgchologist to
appraiseall the Supewison,Personnel.
Joshj had been with the Company lor 20 y€ars since
its lounding, and durjng this period had work€d on every
productlon operation,and his lagt 11 yearc had been in
supervisory capacity- His manners "vere rough andaggressive, and he had jittie formal educaiion. The
Industnal Psychologisfs report about Joshi coniained the
following poinis :
(i) Evalualion for the position ol Assistant
Sup€rinlendent Not good enough.
Capacity for good human relations in $lpelvision :
Will have {nc$on t€quently.
Need for development counrelling : Counselling
greailyne€ded.
Geneol evraluationJoshi had a good abilityproiite.
He suffers {rom a sense ot inleriodty. H€ does not
like the responsibijity of making decisions. Hjs
$pervision is ihat ol Autocratic type. Though he has
the ability, as {ar as his p€rsonaliiy make{p is
concemed,he is out of place n the presert position.
{jt
iiiu
(iv1
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Qn€stJons :
(a) What is the.ore plobl€m in the cas€? Exphin.
{b) Explaln Joshi's behaviour and wotk exped€nc€
vi, a vis rh? psycholoqbl tepon.
(c) How do you see Kapil's suggesiion io Seth ? Give
(d) What are Seth's consideraiioris in taking a d€cisiofi ?
What should he do ? Explain.
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Its2-l
MANAGEMEM PROGRAMMETerm-End Examination
December,20O5
MS-2 : Pre-Revised MANAGINGMEN
Revised MANAGEMENTOFHUMANRESOURCES
Time 3 hours MoximumMorks I00(Weishtoge70o/a)
Note: There are ttto SectionsA and B. Section A has
tuo sers. S€t I is meant Jor students who houe
registercd upto June,2004. Set ll is meont lorstud€nfs pfio haue registered in Jonuary, 2005
and onwotds. Attempt dny three questions lrcm' Sectian A. AII questions carrg 20 morks eoch.
Section B is compulsory for oll and cofties
40 marks.
SECTIONA
(set I)
Define p€rsonnel managem€nt. Briefly discussthe major
lunctions and operations o{ personnel manag€ment.
Explain the purpos€ and types of inteMew in th€
ofganizaiional ontext,and discussheir limitations.
l .
20
20
2.
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3. Describe any t\rro methods of perforrnance apprailal.
Compare their advantagesand disadvantages.
Briefly ouiline the features ol a grievance handling
procedure and ihe steps involved in it. Cite a suitable cas€
study io support your answer
Wrile shon nolecon any rhree of the followng :
(a) Induction
(b) Evaluation of training programme
(c) Maslow's need hiemrchy theory
(d) Principles oI salary formulation
(e) Suspension nd dismissal
5 .
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SECTION A
(Set Il)
l. Trace the evolution of Human ResourceManagement,
Discussthe 5lrategic and political perspectivesol HRM.
2. Why is human resourceplanning mportant? DiscussheprocessoI human resource planning.
3.Discuss he competencyapproach o job analysis.Brieflydescribe ny iwo methodsof competencymapping.
4. Discuss trdining ne€d €valuation and describe various
traininge\,?luationechniques.
Wriie short noteson any ttrr€e of the followng :
(a) Performancecoaching
{b) Human ResourcenformatronSysten
{c) Fringe benefits
(d) Industrialdemocracy
(€) Outsourcing
20
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SECTION B
6. Please read the following two cases and ahswer the
questions given at the end of each 40
(A) Case Study
Mr. Ramchandrans LheChie{ Execuliveof ABC
Limited Recently, t was decidedby the Board ot
Directors that it would be profitable fot the
corporation to set up a separate Marketing
Department. Mr. Ramchandranhas been direcied
to pick up a p€Eon who he feels is capable of
heading the departrnenl. and lhen putrng this
person in charg€ of getting the deparinient on
its feet. After consideringa number of good men
Mr. Ramchandran has narrowed the lield down to
two possible choices : Rajesh Mehta and Ptamod
Kumar.
Rajesh Mehta has a good track record with the
company. He was hired €ight y€ars ago, and
through the years he has shown a good deal ol
drive and initdtive in all ol his endeavours.He is an
aggressive young man, and has t€ceived th€nickname oI
'go-g;tter' in his depaftment. Although
Mehta seems o be more concernedat times with
ends rather than means,'he is very efficient and is
considered good leaderby those who work under
hjm- As one worker stated. "Although he can get
rough with you at times, 9ou always know where
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you stand with him, and when you have don€ a
good )ob, he lets you know jt." Mehta is also
qedited with accepting full responsibilitg, in ail
cases, and making quick decisions wh€n action is
called or
Pramod Kunar has been wiih the company for
eleven yearc. He is well liked by all in his
deparunenr. nd his work is , i rs l la le. Kumar 's
leadership slyle di{fers from Mehta's in that Kumaris noi as aggressiv€ and quick to act as Mehta.
Belore Kumar makes a decifion, he generally
consultg others who he feels can conttibute further
information on a given subject.This oft€n includes
those who work underhim. Those who work under
Kumar consider him a good lead€r, and stale that
the atmosph€re ol participation produced by Kr]mar
really encourages heir utmost indivldual outpui
while on the job. This can be seen by ihe
production increase which soon occurred when
Kumar became he head of his work_force.
Qoesliotrs t(a) f you were Mr Ramchandranwhom would you
sehct as the head of ihe Marketing Deptt. ?
whv?
(b) Will you give any weightage to the lengih ol
service in ihe organisation ? Why ?
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(B) Case Study
Raghav Ch€micals Ltd. has planned for
computerisation of nearly 50 per cent of theproduction operations and control. Ii has taken care
of all resources n the computerisation plan jnciuding
human tesources- Th€ present inventory ol human
resources and future requirements of the production
depdnmenl were specifred s given hereunder.
The human resourceplanners suggested he
redeploymentol chemicalenglneersn their newly
staited ister oncern,.e., LaxmanPaperMillsLtd.,
and retr€nch sumlus oI €mploye€sof all other' cat€gories. They also recommended to the
nranagement hat there was no need for firrther
requifunentr lor ary otheractionplan.
Categoryof Human lnventory
Requirements
alterCc,ftputerisation
Surplus
Chemical engineers(Operation)
15 8 7
Chemical engineers(Maintenance and
control)
10 6 4
Mechanicalengine€rs
{Maintenance)2 2 0
Snpervisors 1 0 2 8
Operatols 30 10 20
Quality conirollers 5 1 4
72 43
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The compuierisahonwas over by the end of
1998. Wh€n the managementwanted to start ihe
produrtion on the new)y computerised process, itwas shocked to note ihai not tnany employees in
the produciion departn)mi were suitable to th€ newjobs and ihe inlormation supplied by the human
resource plannets in this regard did rot match wtth
the teatity.
Questions:
ldentify the probl€m n this case-
To what exient arc the hum;n resource
planners reslonsible Jor the present slaie of
aflairs?
What should he managenrent o now to deal
with ihe problem aking into account both rheshort-term and long term perspective ?
{al
(D
(c)
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MANAGEMENT PROGRAMMETerm-End Examination
Decernber. 2O05
MS-3 : ECONOMIC ND SOCIAL
ENVIRONMENT
Tine : 3 hours Maximum Marks: 100
(Weishtase 70Yd
Note : There are two Sections A
any three questionsJrcm20 marks each. Section B
carries 40 morks.
and B. Attempt
Section A, carryingis comput6,ory and
SECTION A
l. Whai do you understandby the socio-culturalenvironment
of businessand how is it important for business ? Briefly
explain with suitable €xamples. 20
2. Examine the grori'th of public sector in India and analyse ts
contribution to overdll economic development. 20
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4 .
What are the main features of Rao- Manmohan Model ol
Development ? Do you agree with the statement that whil€
the model succeeded on gro\rrth, it failed on equity ?
Discuss,
Analyse the major trends in the grov,/ih of lndia's loreign
trade and its implications on production, employment and
recnnorogy.
"Economic reforms w€re ad hoc and noidriven by clear
goalsand objectives."Discussn detail.
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SECTION B
6. What are the basic objectives of {iscal policy ? ArlaLyse
India's fiscal polica in the light of these objecijves.
7, Write short noi€s on any trro of the following :
(a) ManagemeatMovement
(b) Relationship betue€n Government and Private sector
(c) Administeredprice mechanism
(d) Trad€ policy reforms
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Nor€ : Attempt ony fiDe questions. All questions carry
equal marks.
l. (a) "Accorltting js a seflice lunction." Explain. Wbat
are the tro facets to the role ol an accountant ?
Discuss.
(b) Asset iike land is shown at its original cost in the
balancesheetof a company.Justily this accountingpractice by explaining the releEnt accounting
conc€ptson which it is bas€d.
2. "The EBIT - EPS analysis s an important tool in the hands
ot ihe {inance manager." Explain this analysis with the
help of an exampleand discusshe purposeservedby ii.
@MANAGEMENT PROGRAMME
Term-End Examination
December.2OO5
MS-4 : ACCOUNTING ND FINANCEFOR
MANAGERS
Time 3 hours MoximumMorks t00
(Weishtoge704/ol
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3. From th€ followingparticulars repareTrddingand Profit
and Lossaccount i Mr. R lor theyearended 1-3-2001
and a balance heetas on thg samedate :
Dr.Rs
Cr.Rs.
Buildingsa/c
Machinerya/c
Cashat Bank
Cashon hand
1870p.a. loan obtain€d yMr. R on 1-6-2000 nmortgage f building
R's Capital
Sundry Debtorslsundry Creditors
Stockon 1-4-2000
Puchases,/Sales
SalesReturn//Purchases eturn
R€nt
Establishmentxp€nses
Eleciricity charges
Telephone harges
Commission n Sales
Insurance remium
Bad Debts
BiUsReceivable
5,00,000
2,00,000
1,00,000
90,000
10,000
5,00,000
1,20,000
25,00,000
1,20,000
60,000
1,80,000
15,000
10,000
30,000
10,000
20,000
75,000
3,00,000
5,20,000
4,00,000
32,20,000
1,00,000
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You are required o provide or depr€ciationon buildings
@ sa/o .a., on machinery@ 25%p.a.,andon fumihre
@ 1Oqo.a.
Provision or badand doubtfuldebts s to be made at 5%
on sundrydebtors.
Mr. R's managers"nfitled
o a commissionf 10% on
the net prolii after charginghis commission.
Closing Stock was not taken on 31-3-2001but on
7 4 2001. The following ransaciionsook placeduring
the period ron l-4-2001 to 7 4 2001 ,
SalesRs.2,50,000
Purchasss.1,50,000
Stockon 7rhApril 2001wasRs. 1.80,000.
The raie ol GrossProfiton Saleswas20%.
InsurancePremium was paid for the year ending 30th
June2001.
Interest n mortgageoan o beprovided pto31-3-2001.
Outstandinglectricityharges ereRs. 2,500.
4- (a) What do you understand by Budgetary Control ?
What steps are to be taken to install an eflective
system of budgetary control in an otganisation ?
Discuss.
(b) What is meant by PerformanceBudgeting? Discuss
its main objectives.
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5. Comment on ihe follodng statements :
(a) Higher net profit margin need not necessatilyead o
higher rateof
return on investment.
(b) A high operating everages not alwaysdesirable.
(c) A company'sprofitability s better judged by PBIT
mther ihan PAT.
(d) Cost of debt is alwayscheaperas compared o other
sourc€sof funds.
(€) From the creditors' poini ol view, the lower the d€bi
ratio, ihe better t is.
6. The balance sh€€t o{ Best Manu{actur€rsLtd. as on
31s' March 2004 and 2005 are as follows.
Liabilities31-3-04
Rs.
31,3,05
Rs.Share Capital
5% Debentur€s
Sundry Creditors
Profii & Loss A/c
DepreciationFund
Reserve for
Contingencies
OutstandingExpenses
2,50,000
1,00,000
1,15,000
20,000
40,000
70,000
15,000
2,50,000
80,000
1,08,000
27,000
44,000
55,000
24,000
6,10,000 5,88,000
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31,3-04Rs.
31-3-05Rs.
Land& BuildingMachinery
Stock n trade
SundryDebtors
Cash& BankBalances
Temporary inv€stments
Prepaid xpenses
1,50,00082,000
1,00,000
85,000
60,000
1,31,000
2,000
1,50,00090,000
1,14.000
81,000
55,000
95,000
3,000
6.10,000 5,88,000
Following additional information is also audilable ;
(a) A new machinerywas purchasedor Rs. 30,000 but
old machinerycostingRs. 15,000 wassold forRs. 5,000, accumulated epr€ciationwas
R s .8 ,0 0 0 .
(b) Rs. 20,000, 5/o Debentureswerc rcdeened hy
purchase rom open marker@ Rs. 96
(c) Rs. 36,000 investm€niwere soldat booKvarue.
(d) 12% dividendwaspaid in cash.
(e) Rs. 15,000 was debit€d o ContjngencyReserve or
settlement of previous tax liabjlity.
You are required to prepar€ a Schedule of Changes in
Working Capital and a Statement showing the Sourc€s
and Applicationof Funds.
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7. A toy manulaciurer €arns an average net profit of Rs. 3
per piece wiih a selling price ol Rs. 25 by ptoducing and
seuing 60,000 piecesat 60yo of the potential capaciiy.
Composiiion of his cost is as follows I
Direct material
Direct wages
Sales overhead
R s . 4
Re.1
Rs.6 (50q0ixed)
Re.1 (25% "rying)
During the current year he intends lo produce the same
number but anticipates that -
(a) his fixedchargeswiu go up by 10%o
(b) rates of dir€ci labourwill increaseby 20%
(c) rates of direct material will increase by 5%
(d) sellingprice cannotbe increased.Under these circunrstances he obtains an order for a
furiher 20% oI his capaciiy. What minimum price wiu you
recommend for accepting the order to ensure that the
manufacturer etsan overallprofit of Rs. 1,80,500 ?
Write explanatory not€s on :
(a) Absorption Costing
(b) Break-ev€n Point
(c) Methods oI Depreciation
(d) Nei PresentValueMethod
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MANAGEMENT PROGRAMME
Term-End Examination
December,20O5
MS-5 : MANAGEMENTOF MACHINESAND MATERIALS
Time : 3 hours MoximumMarks 100
lweightdge 70o/o)
Nole r S€clior A hos Jiu€questions hot corty 20 msrks
each. Attempt onv thfte questions lrom this
Section. Section B is computsory ond corries
40 morks.
SECTION A
1. (a) Describe he OperationsManagementdecisionsand
their classifications.
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(b) A smallgear manufacturingacility s being planned
ihat will fe€d parts to five hea!,y manufacturing
facilities.The locationof the currentplantswith their
coordinates nd volume r€quirementss given in the
following able :
Plant locatronCo-ordinates
{Partsper year)
Location B
Location C
Location D
Locaiion E
1s25,75)
(400,150)
(450 ,350)
(350 ,400)
(25 ,450)
1500
250
450
350
450
2. \a)
Use the cenbe of gravity method to determine the
best location for ihis new facilitg. 10+10
Identity three disciplines/sub disciplines that will
contribute jn a major way to ihe developmentof
Productionand OperationsManagement POM).
Data for a break-even analysis revealed that
total costs at volumesof 600 and 800 units wereRs. 80,000 and Rs. 96,000 respectively. evenue s
Rs. 144 per unit. Based upon this information,
compute he following I
(i ) The variable ostspet unii, and
(b)
MS-5
(ii) The fixed costs 10+10
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'3. (a)
4. (a)
(b)
(b)
Discuss with suitable examples, the process of
launchinga n€w product n the market.
l-akevjew Lumber uses forklift truck to Lrarbporlumber from the mill io a storage warehouse
0 30 km away. The lift trucks can mov€ thre€ loaded
palletsper trip and travelat an averag€ I 6 km per
hour (allowing or loading,detays, nd travel). f 420
pallet oadsrnustbe moved duringeach 8-hour shift,
how many lift truck ar€ required?
length of each run ?
What do you mean by an integrated approach to
MaterialsManagement Explain.
A company ras a monihly demandof 800 units of
a product. The company can produce 8 products
per hour when it startsa productionrun. It costsRs. 3000 for shop set,up o start a production un.
The inveniorycarryingcost amounts o Rs. 1.50 per
unit per month. What is the optimal batch size ?
Assume 25 working days in a month and eight
working hours in a day. How fr€quently should the
production run be undertakenand whai should be the
10+10
10+10
5. (a) Explaindiflerent ypesof maintenance ivingsuitable
example.Suggestan organisationstruciure or the
maintenance department of a mediumsized
company.
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Th€re are seven jobs (given in the table below), each
ol which has to go through machines A and B in
that order. The processing ime 5 in hours
1 2 3 5 6 7
Machine A 3 12 18' 6 10 1 1 9
Machine B 8 10 7 7 2 1 3
Determine the sequence of jobs that wiu minimize
the iotal time for completjonof all the jobs. 10+10
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6 .
SECTION B
A small project consists of eighi actjvities lor which therelevant data are given below :
Activity PrecedingActivitiesActivityDuration
(Days)
B
C
D
E
F
G
H
A , BA , B
C , D , E
F , G
4
7
6
57
6- 5
2
{d) D'aw rhe Neh,orkdracram.
(b) Find the crilicatpath
lcl nnd lhe nrojecrcornpjpjion imp.
(d) Calculate the total floai lor each of the activiiies.
8+4+2+6
7. Wite short noteson anytour ol the following 4xE=20
(a) Aggregaie planning(b) Buffer Stock
(c) Kodak sgstem
(d) VED analysis
{e) Producer's isk
(0 Value Engineering
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MANAGEMENT PROGRAI4ME
Term-End Examinaiion
December, 2OO5
MS-6 : MARKETING
Time 3 hours
FOF MANAGERS
MaximumMorks 100
(Weightase70o/ol
(i ) Attempt ony thrce questionslrom Section A.
(ii) Section B is computsory.
(iii) Al l questianscarty equol morks.
SECTION A
1. {a) Briefly explainthe variouspricing methodsavailable
for Indianmarkeiers,with suitable llustraiions.
(b) Discuss the variables that affect the disiribution
decision Ior the following I
(i ) Tasr ood joinr rPsLduranl
(ii) PersonalComputers
2. Why and how do psgchological actors influence consumer
buying behaviour ? As a potential buyer of a latest brand of
DlD, briefly €xplain the social and cultural faciors that
affect your buying decision.
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3. (a) Discuss he major objectives f SalesPromotion. As
a marketerof a leadingconsumerdurablecompany,
when do yor.r consider it an appropriate time to
organisesuchpromotionsand why ?
(b) Personal Selling and Advertisjng are the h.uo major
vehiclesof communication or marketing industrial
products. DiscLrss ith a suitable example of your
choke.
4- Write notes on any three of the following
(a) PLC as a tool Ior rnarket development
{b) Matrixorganisation
(c) Bases for Segmentation
{d) Approaches to Sales orecasting
(e) Limitatlons o{ Cyber marketing
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SECTION B
5. Study the casegiven below and answer the quesiionsgiven
at the end.
BPL has launched he digitalcameraVPC-G2o0EX at
Rs. 39,000. lt does not r€quireconvenrional ilms as it
can store images n lts memory.A niche segmentof PC
users, ournalists,multimediaagencies, rchitects,doctors
and professionals are ihe primary segments for the
product. The benefiis of the product include viewing
pictureson a built-in LCD screen,and the voice memo
(6 seconds) hat could be added to everg piciure. Web
page designers could have pictures on ih€ Internet
through their personal computers.Thes€ images could
also be retouchedor modifiedusingappropriatesofhvare.
Photo albums can be created on floppi€s. The productmay compete with scanners which could scan
conventional photographs into a computer. BPL has
positioned the product as fuhre of photograpby'. The
product is available in 25 showooms oI BPL- Phillips, a
competingbrand, has also launcheddigital cameras.
Questions :
(a) Who, in your view, would b€ the mosi appropriate
target consumers for the product and why ?
(b) Outline sritablepromotionand positioningstraiegies
for Lheproduct.
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MANAGEMEM PROGRAMMETerm-End Examination
December,2OO5
MS-7 : Old : INFORMATIONMANAGEMENTAND COMPUTERS
Revised INFORMATION YSTEMSFORMANAGERS
Time 3 hours MaximumMarks: 100
(Weisht1qe 70o/o)
Note :(i) There dre two setsol question papers i.e. Set 1
and Set 2. &t 1 is for those studentswho houe
registered Jor this course prior to Jutg 2004.
Set 2 is for those studentswho haue rcgistercd 'orthis courseJrom July 2004 onwodg
(ii) There are two sections in eachset. Atternpt anythree questions t'rcfi Sectioh A of eoch set.
Sect'ion B is compulsory.
(iii) A totsl ol fiue questions haDe o be ottempted.
Ali guesrionscang "quat marks.
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l .
2.
Set I (OId Cours€)
(Information Management and_Computers)
SECTION A
"Compuiers have now become an integral llart of ourIife." Explain.Discuss he applicationof compurersm anytwo lunctionalareasol management ivingexamples,
(a) Explain main hardwareunit5 of a computer.Discuss
various cat€goriesof computer software.
(b) Discuss he manag€rialapplicationsof spreadsheetsgiving main features. Highllght a lew important
buslness pplications.
''MIShas becomean integralpart in today'sorganisation_,'
Explain. Whai ]s an inlormaiion nehrork ? Explain_
DiscussData Flow Diagramsand Data dictionary. Give fewprogramming vocabularies.Explain the advantagesof using
COBOL.
3.
1 0
10
20
20
20
5, Usinggraphicalmethod,.findout the maximumvalueof Z
for the lollowingproblem
Z = 4 x r + 3 x ,
subjecto
3x' + 4xr< 24
8x1+ 6x2<48
* r < 5
* 2 9 6
x , , x r ) 0
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SECTTONB
6. Solvehe following ssignmentroblem l minimisingotaltime or doingall obs.
OperatorsJob
1 2 3 4 5
I 6 2 5 3 6
2 2 5 8 7 7
3 7 8 6 9 8
4 6 2 3 4 5
5 9 3 8 9 76 4 7 4 6 8
7. (a) DiscussSlackand Float in the context of a project.
Why is PaRT jmportant in net'rork analysis ?
(b) Following table gives activities involved in a PERT
Projeci.
JobDuration (days)
1 - 2 3 6
2 - 3 6 12 30
5 1 1 17
7 a 4 79 2a
5 - 8 I 4 76 - 7 3 9 274 - 5 3 6
1 6 2 5 14
2 - 4 2 5 I(il
(ii)
1 0
1 0
Draw the network diag{arn.
Find out citical paih.
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1 ,
2.
3. (a)
(b)
4. (a)
(b)
Set 2 Eevised Coutse,
(Information Systems for Managers)
SECTION A
Explain dilferent types of Information Systems. How do
compuiers help us in decision making ? Enum€rate
different system sofh,varegiving €xamples.
Explain the main featuresof MIS. Discuss he determinants
of MIS desisnas
givenby Zanj. Wbat do you underctand
by knowledge ?
Explain Data and Information.What ar; the main
chahcterisiics of information ?
Discusshierarchyol"ysLems.
What are ti€ \,arious
controls equired or an informationsystem?
Discussprogrammedand non.programmeddecision
mak'ng givinsexamples.
Discuss the application of computers in inventory
management ivingexamples.
20
20
10
1 0
10
1 0
5. Expjain the .oncept of the Sgst€m Development LiteCycle. Give !.rdrioussteDs of system analysis and design
givinssuitableexamples. 20
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6-
SECTION B
Write brief notes on :
(a) Internet
(b) Featuresof JAVA
(c) Database Management Systems
(d) Data Warehousing nd Data Mining
(P) InrelligenrSuppon Svdpns
(a) Explain he featuresof VisualBasicand JAVA.
(9 DiscussNeural Nehrorks and thelr application
decisionmaking.
1 0
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MANAGEMENT PROCRAMME
Term-End Examination
December,2005
MS-8 : OUANTITATIVE NALYSTS OR
MANAGERIALAPPI-IGATIONSTime : 3 hours MoximumMdrks 700
Weightase 70o/o)
Note .(t) Seclion A hos six quesirons.eoch coftying
15 marks.Attemptany our.
Section B is cofiputsory and corries40 morks.Attempt both questions.
Siotisticol dblesmay besuppliedon demond.
9ECIION A
I. A group operatesa chain of filling stations n each of
which are employed ashiers, ttendants ndmechanics s
Type ol Iilling srations
Large Medium Small
Cashiers 4 2 I
Attendants 7 2 6 3
M€chanics 6 2
(ii)
{iil)
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The number of filling stations are
Southern ndia Northern India
Large Stations 3 7
Medium Stations 5 8
Small Stations 12 4
How many oI the uadous q'pes ol staII arc employed j'n
Sourhern ndia and in Northern India ?
2. Find the inter quartile rdnge from the following data :
Class
0 - 1 5 8
1 5 - 3 0 26
3 0 - 4 5 30
4 5 - 6 0 45
60 20
7 5 - 9 0 \7
90 - 105 4
3. The m€mbersof a consulting irm rent cars from three
rental agencies 60 percent rom agenca1, 30 percent
from agency2 and 10 percent rom agency3. II 9 percent
of cars from agenca1 need a tune_up,20 p€rcent of the
carc rom agency2 needa tun€'up and six percentof the
cars rom agency3 needa tune-up,what is the probability
that a fental cardeliv€redo the firm will needatune-up?
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4.
6.
A soft drink vending machine is set so thal the amount
of drink dispensed is a random v?rlable with a mean ol
200 nrl and a standard deviation of 15 ml. What js theprobabilitg that the average(mean)amount dispe$ed in a
random sample of size 36 is at least 204 ml ?
What is a Normal Distrib\nion ? Mention the prop€rties ot
Normal Distribution. Dscuss when Normal Disiribulion is a
good approvimation to Binomial Distribution.
Wnie shon noles on any thrce ol t-he ollowing ,
(a) Deri',ative of a quoti€nt ol t'xo funciions
{b) Guidelin€s for choosing the Class nter\,?l
{c) Criterion of Pessimism
(d) StratifiedSampling
(e) Cyclical \,?rlaiion in Time Series
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7-
SECTION B
Preference prices and debentureprices of a certaincompanyaregivenb€lo\rr
Use the meihod of Rank Conelation to determinetherelafionship beh.r\reenreferencepric€s and debentur€
prices,
The averagemarks of sfudenis n a class is 79. Thestandard deiriation is 5. If the rnarls are djst/ibut€dnotmally, how many students,n a classof 200 did notreceivemarts behueen 5 and 82 ?
Given :P(0 < z < 0.7)= 0.2580
P ( 0 < z < o . 8 ) = 0 . 2 8 8
Plo < z s 0.6J 0.2257
Preference Pric€s (x) Deb€nturePric€s(y)
7 3 2 9 7 8
85.8 99.2
7 8 9 9 8 8
98.s77.2 98.5
81.2 96.7
8 3 8 9 7 L
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MANAGEMENT PROGRAMMETerm-End Examination
December,2OO5
MS-9 ; MANAGERIALECONOMICSTime : 3 hours Maximum Marks , 100
(Weightoge 7@/o)
Note : This pop€r consisfsoJ three SectionsA, B ond C.
Section A is to be attempted b9 students
registered for MS9 prior to Jonuory, 2004 i.e.upto July, 2003. Sect,on B is to be ottempted by
students registercdJor MS-9 fron Januorg, 2004
onwards. Attempt any three questions frcm
Section A or B depending upon your dote ol
registrction. Section C is conpulsory Jor all.
Section C compris€sof 40 marks. SectionsA and
B comprise 5 questionsol 20 marks eoch out ot
uhich 3 questionshaue to be answered.
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1 .
SECTION A
Discuss the role of any troo of the following in Decision
Making :
(a) MarginalReturn on Investment
(b) Th€ Equi MarginalPrinciple
(c) The Opportunity Cost Principle
Explain the law of demand. What causes he market
demand curve for a commodi! to shift upwards and toshilt downwards? Give examples
Explajn with ihe help of graph(s)how the long run average
cost cuwe (LBAC) is derived from the short run av€mge
cost curves (SRAC).
From the information giv€n below, calculate the MarginalUiility for each unit consumed and interpret the result.
2.
3 .
4 .
Units Consumed(in units)of commodity
Total Utility(in units)
MarginalUtility
(in unitsj
1
23
4
5
6
?
10
1320
27
30
33
30
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5. Writ€ short notes on any three oi th€ following :
(a) Entry baniers
(b) Declsion tree
(c) Price-cross'elasticityofemand
{d) Internal rate ol retum
(€) OpLimr.ation
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SECTION B
l. Discuss the fundamentals of Managerial Economics.
Explain the scop€ of Managerial Economics as tools of
managerial decision making.
2. (a) Explain he law ot demand.
(b) What are the djflerences betrr,/eena fim's demand
culaJeand market demand curve ? Give illustrations.
3, Explain the econometric method ol estimating costfunction. Why is this method more popular than the oiher
meihods of cost €stimation ?
4. {a) Distinguish between perfect competition and
oligopolisticomp€tition. iveexamples.
{b) Explain the conceptol product differentiationwithspecialeferenceo monopolisticompetitjon-
Wljte short notes on any thrce ol the lolowing :
(a) Delphi technique
(b) Opportunity cost
(c) Cyoss-priceelasticiiy
(d) Distinguishbehreen accountingcostsand economic
(e) Pricing of joint products
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6.
SECTION C
D€fine forecasting iechnique. Discuss the various types of
forecastino techniques. 30
The production department of a firm reported th€
following information for the month of May 2005.
Wagebill
Value of raw materials
Interest
Fu€lconsumption
Rent
Units of output produced
Calculate(i) Averagecost
{ii) Averagevariablecost
(iiil What wouldbe the total profit of the firm i{ it sells
theentireoutputat a priceof Rs.60 perunit ? 10
Rs.
20,000
60,0006,000
10,000
4,000
2,000
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MANAGEII'ENTPBOGBAMME
Term-EndExaminatlon
December.2OO5
MS-10 : ORGANISATIONALESIGN.
DEVELOPMENTND CHANGETime : 3 hourc Moxinum Morks : 100
(Weightose 7tr/o)
Note I
(i )
(ii)
Therc ore two SectionsA ond B.
Section A has two sets : Set I is mednt lor the
students who haue rcgistered lor MS-10 prior to
July, 2004, i-e. upto Januorg,20U. Set It is meant
lor the studentswho hsue registeredor MS-70 lor
July, 2004 semester onwards.
Attempt ony fout questions rom Section A. All
questionscarry 75 narks eoch.
(iii)
liu) SectionB is computsory lor all ond carries
40 morks.
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l .
2.
3 .
4.
SECTION A
SET I (Pre-Bevtsed)
Describe centralisation and decentralisation oforganisational structures with their merits and demerits.
Cite suifable examples from organisational context.
Discuss the notion of organisatlonal change and ii's
influence on organisaiional effectiveness. Describe it's
implications for organisational design.
Discuss the implications of quality of worklife in Indran
cont€xt. Describe how social and culturdl conditions affect
the quality of worhng llfe.
Discussany hro models of organisaflon development and
cite suitable case exampl€s.
Write short notes on any three of the lollowing :
(i ) Insijtutionbuilding
(ii) Role of a change agent
(iii) Questionnaire as a diagnostic tool
(ivl Socio-Technical pproach o work design(v) Mechanistic vs. Organic syst€ms
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SECTION A
SET Il (Revised)
l. Explain the factors which are responsible for effeciive jobdesignand describe ny tro approacheso,job design.
2. Discuss any two significant intenien$ons u,hich are
essentialor managingchange.
3, Define organisational diagnosis. Describe its purpose and
discuss th€ t€chniqlres used for o€anisati,cnal anatgsis in
bnef.
4. Describe Olmosk's change strategy mod€l and criticallg
analys€ its implications.
5. Write short notes on any tiree of the following :
(i) Quality of work life
{ii) Institutionbuilding
(iii) Task force
{iv) Inverted pyramid stflrcture
(v) Job rotation
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.SECTION B
6. Read the following casecarefulD and an$rer the questions
glvenat ihe end :
Mi. Anand occupiesNo. 2 position n ihe Corporate
Planning Department ol multi'product company having a
ttrmover of more than Rs. 900 crores and operating in a
high technology (hi-tech) industry. For th€ last five years,
Anand has been associated wiih strategic planning of ihe
company and recently he has been deputed to a iask
force to reorganise the company to cope up with the
changing iechnology and environment
At the last meeting of the Board ol Directors of ihe
company, the members expr€ssed heir concem about the
Ialling competitive position of the company in the
industry. The main reason cited by the Chi€f Executive
was the outdated organisation stnrcture which has not
undergone any change for the last 10 years though the
size, technology and environment oI the company have
changed tremendouslg. It was on the advice of the Chief
Executive that the Board of Directors decided to set up a
task lorce for the company's reorganisatlon.
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(i t
(iit
(iv)
At the filst meeting of the task force, Anand, who is
an expert ln pla;ning, convinced ihe other members to
adopt the following procedure:
Determine exactly what type of structure tie
comPanYhas at present.
uererTnrne he typ€ o, envrronmeni Lrr€company
Iaces no\, and the weaknesses of the present
Forecast the environmental changes n the fuhrre and
the type of t€chnology to be used by the company.
Design the organisation structure to meet lie future
challenges.
It was discovered that the company is currentlystructured along classical lines and the company is
operating in a highD d!'namic environment. The
environment in futur€ is likely to be more rmcertatn
because of fast changes in technology and requirements
of customeE and competition by MNCS. The task force
came to the conclusion that the structural design must b€
r€sponsive to change and if this is not done, the
company's suMval in the market would be made more
difficult.
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Quertiors .
(a) How far do you agr€e with the Focedure adopted
by the task lorce ?
{b) Explain horll the systemand contingency approaches
can contribute to the analysisof this case.
(c) What type ol organisation design should the task
force recommend ? Explain its broad features.
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trs1ilMANAGEMENT PROGRAMME
Term-End Examination
Decembel,, 2OOS
MS-ll : Pre.Revised GORPORATEPOLICIES ND PRACTICES
Revised STRATEGICMANAGEMENT
Tme , 3 hours Maximum Morks : 1O0
(Weightdse70o/a)
Note : There orc three SectionsA, B and C: SectionA is
neont lor the students who haue rcgistered Jor
MS-11 : Corporate Policies and Prccticesprior to
Jonuory 2005 i.e. upto Julg 2004. Section B is
meont Jot !h? srudpnl ruho hou" rcgistered lor
MS-ll : Strotegic Mdnagement from Januarv
2005 onwsrds. Attempt an? three questionsJram
Section A or B. All questions carry 20 morks
each. SectionC is compulsory Jor all, dnd carries40 marks.
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-l .
2.
SECTION A (Pre-Revised)
Corporate Policies and Practices
'Comorate planning systems vary irom organization to
organization depending on variet! of {acto|s.'Dscuss
various planning approaches and their characteristics.
Suppon your dn.wer wirh >urtable xdmple..
Briefly describe he implications f the constituents f the
"Micro Environm€nt.
What is the criieda lor determining sirengths and
weaknesses or an organizalion ? Explain with examples.
Whai afe th€ saategic mplicationsof the BCG matrix ?
Analyze he impact of BCG Matrix with resp€ct o sources
and uses of funds.
'Developingappropriaie lead€Ghip is one of ihe most
important elements n the impl€mentationo{ a strat€gy.'
Comment on the statemeni discussiDg dimensions of
leadership tyles.
20
20
20
3.
4 .
5 .
20
20
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l .
2.
3 .
5 .
SECTION B (Revised)
(Strategic Managem€rt)
Briefly describe he strategicalternatives iven by Glueck.Explainwiih the help of examples.
Explain PESTEL framework and illustratewith suitable
What do you understand by tangible and intangible
componer,ts of difterenUation ? Explain. Give five examples
each of tangibleand intangibleproductsand give reasons
f or their classifcation.
The recordof M & As world over has not been mpressive.
What can be the reasons for the failure of M & A ?
Wriie :hod nole. on any t&Jool Lhe ollowing
(a) BCG Matrix
(b) BalancedScoreCard (BSC)
(c) Joint Ventures
(d) CompetitiveStrategies
20
20
4 .
20
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sEcTloN c
6, Read he followingcasecarefully nd answer he questions
givenat th€ end : 40I.ARSEN & TOUBRO
We are shiDering n our ponts,os we grope dgainstnett
cotnpetition frcm lnms lron USA and Korea.
- A very senior L&T execuiive o the author at a
Management Development Programme at
IIM (Ahmedabad)n 1993
The competition we hooe Jaced till now is nothing ds
compored to whot lies in store for us. Till notD, the
petiod (postliberalisotion) uds one of learning ond
assessment or the big globol competitors
Sr.dhakarDivorar Kulkdrni,CEO. lo rhe c"se author
in Apnl 1997.
In 1q97. Larsen .d Tubro L&T).onp ol the argesl
engineeringcompanies n India (and one of the iop five
private sector companies) ostedyet again a grov,'th ate
of over 20 per cent. This happened for the fourth
consecutive year despiie acute liquidity crisis in themarket, political nstabilitg, nc€ftaint9abdrrtexecuiionof
powpr prolecF oJ loreign companre: e.g.Lnron]. a.ld so
no. Since ast few years,L&T was becominga lesson or
companiesworldwide n managingexpiosivggrowth and
developing internal capabi litieson a continuous basis.
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Simultaneously, t was setiing new challenges or ihe
academics in defining core competencies and core
capabilities.An independ€nisuruey named L&T to be
one of the best managedcompanies n Asia and another
by BusinessToda, showed hat the companywas one of
the most transparent and a leader on the issue of
corporate governance.During 199596 and 7996'97,
the company achievedan incrediblegrov,4h
n sales o{nearly Rs. 1,000 cror€ per annum ove! the previous
years,crossing he landmark urnover of Rs. 5,000 crore
]n the process.
The Evolution
l*T was sei up in 1938 as a padnership rading
firm by nro Danishengineerc,Henning Holck-Larsenand
Soren XristianToubro, who had quit their iobs. In 1946,
it became a privat€ limited company and by 1950
reached h€ statusof a public limited company.Table 1
gives he eiolutionarypicture in brief.
L&T presently has a shar€hold€r base o{
nearly 1 million and employeestrengthof over 24,000
As a company, his multi-dimensional ngineeringgiani is
actually he nucl€usoI a group of companies nvolved n
building complexes,worksites.offices,and serviceoutlets
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a
a
at differeni locationsal l over India and abroad. Over the
y€ars, L&T has acquireda commendable eputation for
capabiliti€s or executingengineering elatedprojects.
Tabl€ I l&T BusinessHistorg The Milestones
1938 - lncorpordtion s a partnershipirm
1946 - Incorporation s a PrivateLtd Co.
I950 - L&T goespub|c. PowaiWork set up
1961 - Audco India incorporated for
manufacturingvalves
1962 - Retir€mentof Soren Toubro; EWAC Ltd.
s€tup for manufacture f weldingalloys
1963 - TENGL founded o manufacturecrawl€r
undercarriag€parts for catemillars
1969 - Agency businessabolished, ormation of
L&T Botile Closure division
1971 * L&T McNeil set up for manufacturins
Pressesor tyre industry
1974 - ManagementOrganizationStructure and
Management lanningand Control System
introduced'L976- L&T Bangalore Works commences
productionoi hydraulic xcavators
1978 - Larsen etires.L&T Fandabad
commences foductionof swiichgear
1942 - ECC merged with I-&T; L&T enters
:hipping business ith Lwoships
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a
1983 t&T ent€rs cement manufacturingwith
Awarpur plant commencing production
1987 * L&T enters omputerhardwarewith floppy
discs ndprintersiL&T Gould or electronic
test and measured nstrumenis
1988 ._ Cementcapaciiyenhancedo 2.2 m tons
per annum
1989 90 L&T underDH Arnbani (aschairman)
1990 - 93 - Repeated akeoverait€mptsby RIL
1993 - 95 Seriesof strategicalliances nd
tie-ups esulting n formation of
L&T-Niro. L&T-Chiyoda,
L&T Sargent& Lund9,
L&T Finance,and so on.
Takeover Attempt
I
a
TheDuring 1991 - 93. as the countryprogressedowards
liberalisaiion, the company just emerged from a
not-so-welcome iakeover threat from the powerful
Ambanis of Reljance. The Ambanis were themselves
embarking upon massive expansion in chemicals and
petrochemicals usiness, nd L&T would have providedateal and Iogical syn€rgy n terms of executing turnkey
projects lor conshuction, engineering, suppling
machineryand, of course.offering suppliers' redit (io the
tune of Rs. 1.000 crore). Through protracted
investigation and liiigation iin which the Reljance
Industries Ltd. was found to have collected lorged
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proxies), the company somehoir remained in the
hands of 'professionals'.The big questionmarKds poseo
by an article in ihe Economic ond Politicol Weekly
was, "Whe.e does L&T go {rom u.here it has reached
How€ver, it was obvious that a total new mindsei and
working culture would be required il L&T was to grow
and remain competitive. In 1993 94, the companystart€d adopting the principles ol Total Quality
Management (TQM) by becoming custorrer rocuseu,
reducingthe costs and wastage,and adding value at all
stages or maximisingcustomersatisfaction,
ln 1994, Mr. S.D. Kulkami took over as the CEO ol
L&T and confidentlypromised that the company would
reach iis mission of being a Rs. 10,000 crore {$3 bn.) -
company by th€ end ol the c€ntury.He also declared hat
th€ company would strive io maintairl and develop
leadership ositions n all its businessesr else t wili quit.
Simultaneously, ero rebenchment was promised. The
philosophyof TQM was embracedwith added emphasison 'customer
delight', hat is, deliveringmor€ value than
expectedby the customer.
Vision, Core Values, aod TQM
lnfrastructure b€ing a key botileneck for lndian
industry -
was identified as the engine ofgfor,,"'th
or ihe
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company'sambiiiousplans.But b€fore that, the company
needed an ambition statem€nt whiah evety employee
could own and share- A massivecompanywideexercjse
fof linding olrt what ihe company stood for and what its
core values were was €mbarked upon. The emergent
statement ihough not sounding much diilerent from
s€veralother organisations' ision. however, came to be
owned and understood y almosieveryemployeebecause
ol the process ol jdentifying the mission and peoples'
involvempnl. he kpy e.en-enLrl L&Ts vi , ion focussedtowardsa world classcompany dedicated o :
r excellence nd profPssiondli\m
r customerdelighi hroughservice
r entrepreneurial leadership and creation of an
organisation hat is on the path of coniinuouglylearningby fostering eamwork, rust, and care
I communityserviceand €nvironmental rotection.
Cor€ Cornpetenci€s
According to a senior executive, today the cor€
competence of L&T lies 'n its ability io synthesise,
int€grate and harmonise its divers€ world-class
engineering. manufacturing, procurement, construction
and fabrication skills around turnk€y projects (in cor€
economic sectors) and people. This is made possible
through a world class vendor base and qualiU
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technological alliances, excellent lT infrastructure
(CAD,/CAM systems,PMIS etc.) sophisticatedabrication
Jacilities or plant and machin€ry jn the cor€ sector
Business Leadership
L&T holds a leadershipposition in lndia in most of
the areas in which it operates.Th€ first company to
introduce hydraulic excaeators n the courtry, ii still
maintains ts leadership tatus n this and in the vibratorycompactor segments.L&T's switchgearproductsenjoy a
dominant position in Indian as well as ihe iniernational
markets. t continues o be a leader n th€ manufacture f
Z-Line petrol pumps and its cement s considered o be
of high quality. t&T has pioneered the manufacture and
supply of critical nuclear reactors and space vehicleshardware n the country. t has to iis credit many lirsis in
the Indian ndustry irom the indigenouslymanufactlrred
hydrocracker reactori naptha un power plants, th€
world's largestcuring press, to the lirst vertical dairy in
ihp countrvand .o on
With ihe Projeci and Constructionbusiness n th€
country growing at a fast pace and expected o continue
io do so with th€ countrys emphasison inftastructure,
boih L&T ECC (Consfuction 6roup) and L&T s Proiects
(EPC)businesses re being treated as thrust ateas. The
ECC construction group has been responsibl€ for
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construction landmarks both in lndia and abroad, for
instance, ihe Bahai house of worship in Delhi, an
int€rnational airport t€rminal in Abu Dhabi,bridges inMalaysia. hotels in Uzbekistan,and so on lts major
projectshav€ been buildingof cementplants for Grasim
lndustries, Gujarai Ambuja Cements, and ACC Ltd.,
construction ol bridges and railway tunnels for the
Konkan Railway project. In projectsbusiness, &T EpC
group succ€ssfullyexecuted ord€rs from ONCC (ior
piping and oil pLatforms), Tata Chemicals {lor caprjve
co generarron owpr planr) . nd 6dndh,ndgar airv. In
shippirig and internaiionalbusinessoo, the companyhas
made significantprogress o become one of the leading
players n thejr line oi brjsiness.
L&T has a long and enviable record of high iechfabrication.The workshops n Powai with CNC pr€cision
machinp5hou<e arge-sjzeprecisron dbricaiion Iacrliie,.
Its major healy engineering omplexat Hazira also cat€rs
to such needs. L&T's units and its links with globally
feputed organisations have contrjbuted much in
developingmanufacturingxcellence.
Decision-making at L&T
Over the years, the company has impleme;i€d its
vision through vafioLrsapproaches. Foremost is the
emphasison empowerinent. eamlvork, and continuous
training ol employe€s. In t€rms of structLrre, h€
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company has decentralised decision-making, and
according o Mr. Kulkarni,CEO, the concept of Strategic
Busin€ssUnits (SBUS) is being activ€lyencouraged. hecompany js decentralised or all practical purposes.
Budgetsand allocations re made at ih€ beginningol the
year and SBUS underiake he responsibility or achieving
the targets. Only in major decisions nvolving capaciiy
augmentation, usiness iveslmeni,diversification, nd so
on does he CEO personallynvolvehimself.According o
Mr Kulkatni, "only through empowerment and
deceniralised decisjon making can a highly diversitied
company like L&T be managed". For example, though
the decision to di'vest the Dot Matrix Pdnt€rs {DMPS)
businesswas first proposedby the concerneddepartmeni,
yet the decision was iaken ai the MD/Board level as it
agreed lhdL produ(t and r€chnological bsolescence nd
synergyof DMPSwith other businesses as indeed ow.
The Culrure ot TQM
The TQM journey, iniiiated n 1993, has now taken
Iirm roots in L&T. The €fforts put in training a large
number of employeeshas resulted n lhe lalrnchof manyqualily improvem€nt initiatives. A large number ol
employeeshave participated n continuous mprovement
lKoizen) and small group activities. Several
cross unctional eams regularly unction in the areasof
manufacturing, d€sign, marketing and services. l-&T has
created an environment Ior increasedempow€rment to
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further improve custom€rsemjces.The TQM Awareness
Programmeshave also been ext€nded o the stockisisand
v€ndors to achieve mprovem€ni n the operaiions and
L&T slrolgly behe'.Jes,fl rhe concepL o{ rniprnai
customers.With TQM knowledgespreadingwidely inside
the company, employeeshave realised hat everybody n
every department is a $pplier to somebody in the
organisation f not directly to an outside customer.One
employee says, "even though it is difficult to oblig€
everybody, believe hat we shouldgo a step lorward to
understand the real requirements o{ the customer, which
he himself may not be fully aware of, and delight the
customer through total qualiiy and service. Such anattitude should b€ our guiding force". A value strongly
sought to be incL cated in ihe employees is that people
can confuont competition better by moving from a
product-oriented philosophy to a customeroriented
philosophy. For this, employeesare being train€d in
multi'skills, includingquality
transactions andmarket
engineering,besidesproduct engineedng.
Wnh people belng regardedas the'prlme mov€rs',
a strong HRD culiure pervad€s the organisation's
personnel polici€s, i,nd HRD systemsar€ designedto
s\rstain motivation, encourage leaming, and achieve
higher lev€ls of quality and productivity through job
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involvement. The embracing of TQM philosophy.and
implementalion of ISO 9000 systems by almost alldivisionshas led people to work towardscommon goals
with a customerorientedapproach.
Social Commitments
Corporate Citizenship Th€ Mumbai Chamb€r
pfesented he Good Coporate CitizenAward for the year1994 -95 lo Larsen and Toubro Limiied for its
contribution io the corporate world, but more importantly
tor its conspjcuons achjevements n jmprovjng the quajjty
of lile in the community.
Award for most Qutstanding Concrete ShuctureThe ECC Divisionof L&T receivedhe ICI Mc-Bauchemie
Award presented b9 The Indiqn Concrete Instituie for
the most outstanding concrete struclure for the year
1995 - 96 for Sree Kanteenva Indoor Spofts Compl€x s
Bangalore. The sbucture is considered to b€ an
engineeing marvel. The citation for the award r€ads'Sree
lGnte€ra!a lndoor Sports Complex is designed in
the shape of an ellipse usjng 120 'V'shaped precast
iolded plate elements.Each element s 43 m long and
w€ighs55. t. The thickness f the plate s just 40 mm,
but strengthen€d b9 ribs throughout its length. Sjnce
the folded plaie spnngs rom the ring beam along the
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outer periphery and connected y the compression ring
at the crown, the enlie roof is self supporling,provjding
an unobstrucied olumn{eespaceof 119 m x 91 m with
a playingarenaof 65 m x 45 m jn the cenir€
Environmenl Upgradation L&T has been .howing r' .
commitment towards corporatecltizenship.As one goes
around rhe worls "rd oihce: ol L&T. one experre.ce' asoothing ard refreshingambience becauseof ihe rich
foliageand delightful lolal bloomsaround hesesrrucrures.
L&T has undertaken xtensiv€ree planiationprogramme.
Over three lakh trees were plant€d in and around the
factory in 1993-94 under the programme 'Trees for
Life . The villagers have been given grafted saplings of
fruit'bearing tre€s and encouraged to pLant them. The
success l this ongoing eflort led to L&T being selected
by ih€ Govemmeni of Maharashtra for the prestigious
Vanashr€eAward in 1990. ,
Contrlbution to Academics L&T set up L&T Instituie
ol Technology, a polytechnic n Murnbai. ln a short
petiod, il has come to be widely regafdedas one ol the
best lraining institutions of iis kind in the couniry,
particularly or the full-fledged orkshopsand laboratories
that provide a strong pIactical orientation o theoretical
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inputs.There is a good demand n engineering ompanies
for the studentsFassing ut from ihis Institute.
L&T also contrjbutesinancially owardsupgradation
of facilities n sev€ralpolytechnics.t regularly nierlaces
with academic nstituiions o promote quality education
and has established€searchchairs lor laculty in several
institutions ncludingai IlM, Ahmedabad.
Wthin ihe company, one ol the most inlaluable ard
lasting nvestmentsmade by L&T is the €stablishment f
a Management Development Programme Centre at
Lonavala nearMumbai).According o Mf- CM Srivastava,Joint General Manager (JGM) (HRD), the management
developmentcentre has been visualizedas a'temple
of
learningwhere peoplewould come with ihe solepltrpose
of enhancins knowledge, learning througn expenence,
self-siudy,and introspection.The €mphasis, herefore, s
on providing an ambience for learning rather than
training'. The centre has modern learning {acilities ike
computer-aid€d ackages, library, and outdoor training
facilities.
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Manuf ac-turing Facilities
Som€ imporianl manufacturing faciliti€s of t&T are shownin Table 2.
Table 2 lnpo^an| MonularrunngFoci l t t tpsl L&Tffi
Powai, Madh (Maharashtra)Plant and heaw equipment,switchgear, petrol pumps,bo11l€ losures,control andautomation, welding alioys,
undercarriagecomponentsElectronics and Inputs iorundercarnageomponentsCement
Light-weight lass ontainers
Switchgear
Weldins alloys
Plantandequipmentorsteel,paper and pulp, mat€rialhandting and mineral
ProcessingndustryMedical lectronic quipment,computerperipherals,telecommunlcalions,est andmeasuringnstrumentsEarth moving andconstruction quipmenl.hydraulic equipm€nt anddiesel ngines,Gen. s€tsHeaWequipments
Cementmanulacturing nit
Valves, rubber anFplasticPlocessjng achjneryExpon oriented Jatiricalion
Transmissionowers
Expotl footr,,ear'C€ment
grindingunit
Thane (Maharashtra)
Awarpur (Maharashtra)
Nashik Maharashtra)
Faridabad Haryana)
Ankhshwar (Gujarat)
Kansbahal Orissa)
Mysore (Karnataka)
Bangalore (Karnataka)
Hazta (Gujarat)
Hirmi {MP)
Chennai(TN)
Iz\andla Gujarat)
Pondicherry
Kalol (cujarat)
Jharsuguda(Orissa)
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The Future
The financialr€sultsof t&T far the geat 7996 - 97
are not too encouragingas lar as proliis are concerned.
The company has repo ed profits of Rs. 410 cror€
against the previous yeais pro{it of Rs. 390 ctore.
thereby achieving a slim gro\.\,thof five per ceni.
However, the turnover has recordeda sharp jump hom
Rs. 4249 dare to Rs. 5304 crore. From another
p€rspective, the performance has been commendable
considering the slump and intense competition in the
cement industry and performanceol oiher comp€titors
during the period.
L&T is firmlg consolidating itsell in four nrajorbusiness reas engineering,constructionjcement, and
equipm€nt manufacture,Presently,cement accounts or
15 per cent of the total revenue. t has embarkedon a
major expansion programm€ that will double the
capacity o 12 m tons per annum, which will make t the
largest cement manufacturer n India. A Euro-issueof
$135 million has been planned o fund this expansion-
Having defined EPC as a thrust business for the
future, it will be rele!,ant to iake a look into th€
competitivestructureof ihe EPC business.n the domesiic
business, &T hasa handfulof comp€titorsamong whom
BHEL. Punj and Lloyd. and RITES are lhe maio, onpq.
The peculiar nature of EPC business s that it is not a
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sector specific industrg. The core infrastructure activities
such as power, ielecom,and roadswill becomekey focus
areas or the country. Most players n this industry have
specific competencieswhich cater to specialisedareas,
L&T is p€rhaps the only company which competes n
almost every sector by virtue oI tts diversifi€d echnical
competenc€and expertise.L&T's EPC businessakes he
{orm of competitive biddins {or executjng projects lrom
stalt to iinish for third parties,part executjonof projects
as sub contractors io other bidders, and autonomous
bidding or s€ttingup its own projects n the core secrcrs.
ln ihe global EPC business,however,urecompaoy
fates stiff compeiition from the global consiruction and
engineering giants like Hyundai, Saipem, Mcdermoit,Cat€|piller, o name a few. In such a highly competitive
envionment with technotogy beins a handicap (that most
Indian companiessuffer rom), th€ logicalstep is to ent€r
into strategic and technologicalalliances. Most Indian
EPC players ollow ihis route and L&T is no exception.
Some of itsalliances are with iis competitois, for
insiance, Caterpill€r, Marubeni. Like most Indian EPC
playersgoing global,L&T s overseas PC op€rationsare
concentrated n the developingand dev€lop€dcountries
oI South-andMiddl€-East sia such as Tha and. Malaysia,
Vieinam, Burma, BangLadesh, Sri Lnnka, and Gu[
countries ike Qatar, SaudiArabia. Bahrain, Oman, and
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Though t&T has attained impressiveachievements,
the productivitgof severalbusinesses re alarmingly ow
on ihe internationalbenchmark evel. In an environment
of hrgh int?resl raLe) and lighl liquid'tV posilion. the
eflicientmanagementof working capitalwill form ihe key
to future L&T successes.Some ot the areas of concern
Jor L&T in the short-iermwould be : the need to attain
fasterdeliverystandards, ustomersatisfaction, ontinuous
cost reduciion, productivity mprov€meni and operating
with low working capiial. and aiming at leasi to be a
regionalplayer of repute and recogniiion
Quesrions :
(a)Carry oui a SWOT Analysis
of L&T. 20
(bl Explain lhe D€c'sron-mdking rocess at L&T and
how does it contribute to performance of the
cotrrparry. 10
(c) What are the variousstraiegieshat you recommend
for L&T's EPC dMsion in domestic and foreign
markets?
10
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MANAGEMENT PROGRAMME
Term-End Examination
December,2OO5
MS-21: SOCIALPROCESSESND
BEHAVIOURALSSUES
Time 3 hours Moximum Morks : 100
(Weishtage 70o/o)
(i )
(i0
(iii)
( iD)
There are.two SectionsA and B
Sect'ionA hds ir.oosets : Set I is meont Jar the
.tudents whohaue agtsrered o, MS21 p' ior @
Januarg,2004, i.e. upto Jul|, 2003. Set is neant
Jot the students who haue rcsistered Jor MS-21
Jrom Januory, 2004 onwards.
Attempt ony four questionsJrcm Section A. AII
questions corrg 15 marks each
Seclion B is compulsory t'ar dll and carries
40 marks.
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1 .
2.
SECTION A
Set I
(Pre-Revtsed)
DescribeErikon's Model oI Personaliiy evelopmentand
It's relevance fol work environment.
What are the di ffereni types of stress? Describehow to
copewith stressn an organisation. iie suiiableexamples.
3. Explain the f€edbackprocessand its importance,citingexamples.
4. Describedifierent gpes of power and their role in an
organisation.Ciie examples.
5. Write short noteson any three of following
.'(a) Organisationaleffectiveness
(b) lmportanceof team-work
(c) Group formation
(d) Aitribution th€ory
(e) lmporianceof helpingprocess
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l .
2.
3 .
SECTION A
S€t II
(Revised)
Describe he role of a manager n an organisatronn th€
presentday scenarioand €xplainhow he,/shecan change
the mindset of €mployees in the changing business
De<cnbe dlienl ealurps f coun.erlingn Ine organrzarronal
context and it's importance for the management01human
Descrjbeany two modelsof group development.Can the
group effectiven€9se improv€d hrougha carefulplanning
ot group development rocesses
4. Discuss he importance of understandingpoliiical behavjour
in an organisation. Comment on wheiher the us€ o{ pov,rer
and politicr in organisaiions5 ethicalor unethical.
5, Write shofi notes on any fftlee of th€ following
{a)
(b)
(d)
Learningorganisaiions
Importanc€of teams
Knov.,ledgemanagement
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SECTION B
6, Read ihe fo)lowing case careflJly and answer the questions
given at the end r.
Giridhar had come a iong way from when he joined
R.P. Communicationshavinga turnoverof Rs. 20 lakhs)
as a trainee ariist in 1995 and ioday he had come to
occupy the position of Creative Head at R.P.
Communications with a turnovef of Rs. 15 crores).As a
young trainee (in 1995), 6iri {asGridhar is addressed y
his colleagues) had been an amicab)e personaljty, he had
always djsplayed keenness to gajn knowledge - leayn
more, many vjsjble raiis of creaiivi\, - in the sense ry
to make "unique"/different from oihers presentations,
willing to share information and so on. lt was typically
these qualiiiesof Giri which made him approachable oothers and appreciated by one and all, and also saw him
rising in ihe organisation sh1lcture-
Nicky I an\tar. lhe Crealrve Drreclor ar R P.
Communications,who had known Giri tight frm the time
he had joined R.P. Communicationsas tEinee, i!,as
sqiprsed at recailing the contents ol the )usi conchded
meeting with the membersol the qeAl\ve team at R.P-
Communications.Meena (a rec€nt recruit at R.P.) had
sajd "Madam, Giri sir scares the hell out of us by re{using
to listen to our point of view." Raj, an €xecutiveat R.P.
Communicationshad revealed"Madam, Giri wiihholds
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important information from us, and createsconflictwhen
he has to interactwith other teams at R.P."
Mohan, a senior creativemanager at R.P. had saidthat Giri seems o have changed,he s€€ms o preler to
adopt a lolcing style, like a conlroiler, and a\pecis al l
th€ assignmentso be compleiedbefore ime, and doesn't
enteriain any questions/or quenes from any ot the
creativ€t€am members. Nicky {ound ii hard to beli€ve
ihat a likeableperson such as Giri could causeconflict.
Nickghad promised he cr€aiiv€ €am to look inio the
matter and have a talk with Giri also. Alter an informal
chat with Giri, Nicky feit that one of the causes f Giri's
behaviour could be Rol€ Ambiguity. This sh€ had
concluded rom one statementmade by Giri "You know
Nicky, my team is good, however, they expect me io
behaveas I was before. I am trying my best to convince
them hal in my new role am expecledo per lormeven
beiter than before."
Nicky d€cided o seek he help of the CEO of Leam
and Grow LeadershipCentfe (LSLG), a training firm,who r€gularly holds workshops meant for helping
professionalsand executivesof firms to diagnose heir
own b€haviourpatternsas well on how to managesiress
that could cause various levels of conflicts for the
individualas well as the organisation.
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Questions
(a) What do you think is th€ majoi causeof the problem
in the above case?
(b) Do you asree with Nicky that Role Ambisuity may
havecauseda change n Giri's behaviour? Why ?
(c) Can you suggesiways in which f'rms such as R.P.
Communications can avoid such occurr€nces n
tuture ?
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MANAGEMENT PROGRAMME
Term-End Examination
December, 2OO5
MS-22: HUMANRESOURCE
DEVELOPMENTTime 3 hours MaximumMarks 100
(Weishtose0o/o)
There orc three SectionsA, B ond C.
Secfion A is meont for students who haLe
resistered or MS22 prior to Jonuary 2005, i.e.
upto July 2004.
Section B ts meont lor students who hdDe
registeredot MS 22 Jrom Jonuory 2005 onwords.
Attempt ong thrce questions rom SectionA or Bcontingenton the rcgistrotionperiod. Al l questions
carry 20 morks eoch.
Section C is compulsory tor all, ond carries
40 norks.
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l .
SECTIONA(pr€-Revised)
"Peopleneed competencies to perform tasks. Withoutcontinuousdevelopmentof competenciesn people, an
organisations not lik€ly to achiev€ ts goals.Competentand motivated employees are essential lor organisationalsuIvivai, grov"th and excellence..,Comment on thisstatement and discuss the underlying issues,with suitableexamples.
Discussdevelopmental supervisionas tacilitdung processtohelp employees improve their performance and empowerthem. Suppori your an$r€r with suitable examples.
Explain the rdtionale for developm€ntar approach toIndushial Relations. Suggest a core programme tordeveloping top management, middle managemeni andunions for Industrial R€lations Management. AIso discussihe developmentalmechanism for improving IR.
Define and describe the process of counseiling andmentoring, with suitable a\amples.
Write shon noreson any ,[r€e of ihe lollowing :(a) Task delineation
(b) Analysis as a supeMsory tool
lc) ConllictManagemeni
(d) Performance Appraisal System
(e) Emergins r€nds n HRD
2-
4 -
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-
SECTION B
(nevissdl
Explain theconcept of career in the context of careerdevelopment perspective. Dsclrss various jndividual and
organisationai sirategi€sfor careef development.
Define and descib€ ihe objectjvesand psychological basisof reward system. Briefly discuss vatious aspects whichrein{orce d€sirable behaviour, hjgh p€rformance, and
D€fine HRD Audit. How can HRD Audit be used as ar ODlntervention in an organisation ? Bdelly describe thesignificanceof HRD score-card o{ a film.
Explain the concept ol Knowledge Management. Bri€fly
discuss various approaches io knoutedge managemenl,lritb sr:1abl€examples.
Wdte short notes on any tiree of the following :
(a) Re-ofganisation o{ work
(b) Value-anchored HRD processes
{c) Needtor competencymapping
idl Sysl€ms Theory and Human pedormance
(e) Verticalre-skilling
l .
2.
3 .
4 .
5.
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SECTION C
6. Read the lollowing casecarefu(y and answer the questions
givenat the ehd.
Training for Whom ?
Microelectronics, a Califomia-based elecitoDics
defense contractor, has enioysd a smooth grow'th curve
owr the past fjve years, primarily because of favourable
derense Jundiog during ihe Reagan administration's
build-up of U.S. military defeNes. Microelectronics hashad numerous contacts to design and develop guidance
and radar slsf€ms for military weaponry.
Atthough the {avoutable funding cycle has enabled.
Microelectronics to grow at a st€ady rate, fhe coDpany is
finding it in€Earinglydi{ficult
to keep jts reallg good
engineers, Bated on ayterEive tunover analyses
conducl€d b, Ned Jackson, the human resourcss penmng
manager, Microelectronics'problem seems to lte its
inability to keep engineers beyond the "critical" Jjueyeat
polnt. Apparentlv, the probability of tumover drops
dramatically after five yea$ ol ser.rce. Ned's conclusion is
that Microelecironics has been essentially serving as an
jodustry college. Their stafiing strategv has alt'aals b€en
to hire the best and bdghtest engin€ers from the best
engjnee ng schools in ihe United Siates.
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Ned beli€ves hai theseengineers fien get lost in ihe
shuffie at the time they join the firrn. For example, most
(i{ not all) of the new hires must work on non-classified
projects until ci€ared by secLrrity to join a desrgnated
major project. Security clearanc€ usualiy iakes anlirh€re
from slx to ten monfhs. ln ihe meaniime the nEjor
project has started, and ihes€ young engineers lrequenily
rniss oui on its design phase, consjder€d he mosi creative
and challenging segment of the program. Because o, the
Datufe of proj€ct work, new €ngineerg oft€n have
difficulty leaming ihe organizationai culiue - $rch as
who to ask when you hav€ a prob)em, what the general
dos and don'15are, and why the organization does things
in a c€rtain way.
After headjng a task force o{ human tesolrceprcfessionals within Microelectronics, Ned has been
designated lo present to iop management a proposal
designed to teduce turnover among young engineering
r€cruits.The essence.ol his plan is to create a mentor
program, except thai in this plan the mentors will not be
the seasonedgraybeardsof Microeiectronics. ut ratherthose engineers In rhe (ri(lcdl lhree.lojive-yea/ sewice
window, the p€nod ol highest urnover, These engineers
wjlJ be paired with new engine€ring yecruiis before the
recruits actually repoft to Microelectronics lor work.
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Accordrng to the task force, the programfte is
hrofold , l1) it benefits the newcomer by easing the
transition into the company, ard (2) it helps the
tfuee-to-l:)vetear service engineers by enabling them to
sewe an important role for the coftpany. 89 pef.otmjng
lhe mentor role, these engineers wlll become more
commi(t€d and henc€ less likely io leave. As Ned
prepared bis filteen minlite presentation {or top
manngenlent, he u/ondered it be had adequately
anticipated the possibleobtecliors ro the progrdm in
oraer to make an intellisent dejense of it. Only time
would te[
Qnestions :
(a) ldentify the salient issues rom HR point of vi€w lor
this case.(b) lf yor-r wefe io study ihis turnover problem, how
would you qonduct a needs analysis or evolve a
counselling programme ?
(cl What are ihe caus€s of dissatl$faction and lumover
in Microelecrronics
{d) Do you find the mentoring prograrim€ suitable toIeduce tumover ? JustiJyyour an$rer.
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MANAGEMENT PROGRAMME
Term-End Examinalion
Decernber,2OO5
MS-23: HUMAN
Time 3 hours
RESOURCE LANNING
MoximumMarks 700
(Weightose70o/a)
(i )
. (i,
. (iiil
There ore two Sectians A ond B.
Secfion A hqs tu)o Sets and I.
Set I is mednt lor the students who h4[e registercd
lor MS23 prior to Julg 2004 i.e. upto Januorg,
2004.
Set Il is meantor
the studentsL|ho haue cgistered
Jor M9% fron July 2004 onwords.
Attempt ony thrce questionsJrcm SectionA. All
questlonscorrg 20 morks each.
(vi) Section B is compulsory Jor all and corries
40 marks.
(iD)
ID)
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SECTION A (Pre.Revised)
(set D
Define and differentiate b€t\teen Job Analysis, Job
Description and Job Evaluation.Select an appropriate iob
e.,aluation method and create a plan for e\aluating lobs oi
scientists n difterent grades.
Discuss the role of indoctrination in organisalions. How
can Perlormance Appraisal, and Training and
Development be made an integral part of Human Resource
Planning? Discuss.
Discuss the scope of Human R€source Audit. While
auditing Reward systems or employees n a manufacturing
organisation, which factors should be taken into account
and why ? Explain with suitable examples.
Define and discuss he n€ed for Hurnan ResourcePlanning
in an ordanisation. Briefly discuss various approaches to
HRP
Wrile shon noreson any thre€ of the following:
(a) Trainins methods
(b) Valu€ d€t€rminants of HRP
(c) Human Resource Accounting
(d) Labour Market Behaviour
(e)Promotion and Reward Policies
3.
4.
5.
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SECTION A (Revis€d)
S€t Il
1. Define and discuss the objectives of Human ResourcePlanning at organisationalevel. How does it help in
determining and evaluating fuiure organisational
capabilities, needs and anticipated problems ? Explain with
suitable examples.
2. Define and descnb€Job Analysis.Briefly discussseveralmethods in which information about a job is collected and
evaluated.
3. What is the purpose and processol recruitment function ?
Discussvarious methods of sourcing mdnpower.
4. How is monetary value assigned o different dimensions of'
Human Resources costs, investments, and worth of the
- employees ? Bri€fly explain Cost and Economic value
approachesof measurement.
5. Writ€ short not€s on any t rree of the following I
{a) MBo(b) SuccessionPlanning
(c) Competency Mapping
(d) Job Evaluation
{e) H.R. Inventory
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SECTION B
6. Read the casegiven
below and answer the questions givenat the end of the case :
Mr. IGpil Kumar and Mr. Abbas AIi were working in
a scooter manufacturing public sector industry as Senior
Quality Control Engineers n 1988. On post of Deputy
Chief Quality Controller has fallen '"?cant due to the
retirementof the incumbentand the management ecidedto recruit a qualified, knowledgeable and experienced
ptofessional from outside so that the present quality
standard may be improved thus ensuring better
marketability of their scooters in the face of stiff
competition. Mf. IGpil Kumar, who was a mechanical
engineer with about 15 years expenence n the QualityControl Department d€aling with mopeds and scooters,
could have been promoted to fill the post on the basis of
seniority. However, ihe managementwas looking for a
graduate in siatistics wiih experience in latest Quality
Control (QC) techniques like statisiical quality control,
quality assurance and other related areas rather than a
m€chanical or automobil€ engineer wiih the routine
experienc€ in quality control. As such instead of
promoting Kapil Kumar, the management advertised for
the post of Deputy Chief Quality Controll€r - since as
per company rules it was a DR (Direct Recruitment)
vacancyalso.
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S€lectior oI Outslder
Out ol the applications eceived n response o tle
advertisement, six candidates wer€ called for interview
including the hr,,o intemal candidates, Mr. Kapil Kumar
and Mr. At'bas Ali. The person selectedwas an outsider,
one Mr. Ratnam,who had over 12 years experience n
SQC, quality assurance tc., in the two wheei€r private
manulacturing indrrstry. Mr. Ratnam joined within twomonths time expecting hat in his new positionhe would
be th€ main controller or qualitg.Howev€r. afier joining
the organisationhe cam€ to know that h€ would be the
secondseniormostperson n the hierarchy or controlling
the quality and would be repofting to one, Ktqral Singh,
the Chief for Qualiry Controls. Mr. Kirpal Singh hadcome up to this post by seniority and was basically a
dipioma holder in automobile engineerins. He had to his
ctedit about 28 years of jndustrial exp€rience,oui of
which 20 years were spent in Quality Control
Department of two industries.He joined the present
organisation n its Quality Control Department and had
17 years experience in the otganisation and was due for
retirement withjn the nexl 2 to 3 yearc. On learning
about the retirement time of Mr. Kirpal Singh, Mr.
Ratnam had the consolation that he would be able to take
up the positionof 'ChiefControllerol Quality'very soon.
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lnte erence from top
Ratnam could not put forth many good suggestions(for quality controls) because oI the inierference and direct
supervision of Kirpal Singh. He, however. could pick trp
a good deal of knowledge about the working of the
co)npan9, ibe nature and iendency of different production
department heads particularly with regatd to care lor
quaiity,organisation
for 'QC' in thecompany,
tfie various
compon€nts required for axembly of the company's
two-wheeler scooter and the expected quality standards,
dlawbacks in the pr€s€nt system of quality controls, etc.
Right from the time the advertisement for the
selection of Deputy Chief Quality Controller appeared,
the O.A. (Office$ Association) of the organisatiot had
been pressing the management to conslder ihe case of
Kapil Kumar for promotion to the above post based on
his seniority n the organisation.
Meanwhile, the management obtained a licence in
1989 for ptoducing Thtee-Wheeler Autos. As a resuli ofthis ard the pressure from O.A., Ratnam was Iranslefted
to look after the Quality Control Department at ihe
company's new Three-Wheeler plant, wherens Kapil
Kumar was promot€d as Deputy Chief Quality Controller
in the present two-wbeel€r scooter plant in 1990 (after
creating oDe additional post of Deputy Chiel Quality
Conttoller for the new Project).
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In 1991, the StateCovernment,which controlled he
company in question, changed th€ Managing Dkector.
During the regime of this new ManagingDirector, Kapil
Kumar was promoted as Chief (Quality Controls) nextyear, when Kirpal Singh retired. This decis:onwas based
on the recommendationsof Kirpal Singh and partly
attributed o pressure rom O.A., for furtherpromotion of
Kapil Kumar basedon his vast experience n the eualityControl function of thts industry. Abbas Ali rose to the
position held earlier by Kapil Kumat.
Nlotment of Company Quarters
The Company had its own townsbip near th€ factory.
Its quarterallotmenischemewas basedon the length of
Ser,ice, i.e., date ol joining. Ratnam had asked lor a
suitablequarter at the time of interview and was thus
allotted a tile quarter meant lor ihe Senior Engjneer's
cadre. He learni about this a{ter occupying the quarter.
Ratnam asked for a change ol Quarter - prelerably a
RCC-roof quarter, - but his r€quest was tumed down,sincehe had put in only few months of servicewhereas
rnany others senior to him, on the basis of their larger
length of sewice in the Company (havingover 10 years
seNice), were staying in tiled roof quarters and were
awaiting a chance for a RCC root quarter.Kapil Kumar
and Abbas Ali were residingn RCC-roof
quarters.Soon
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after Kapil Kumar's promotion io the post of Chief
(Quality Controls), he was allotted a bungalow.
The management's decision in this case must be
vi€wed in the context of the downtrend in the demand for
scooters and three wheeler autos during 1993 lollowing
complaints from dealers abut the detedorating qualtty of
components as also their short life. Notably the
comdaints had risen ten-fold in that yeat as compaled tothat in 1988.
Questions;
(aJ Was the managementJ'ustifiedn iaking a decision to
recruit a qualified and experienced person from
outside as Deputy Chief Quality Controller ?
(b) Was ii in the interest of ihe organisaiion to transfer
Rainam to the new auto-wheeler plant and promoie
Kapil Kumar ? What could have pyompted ihe
management o take this decision?
Q) How ao you view the rde oI O.A.s in supportjng
only the local and internal candidat€s and
overlooking the interests of direct r€cruits even when
they were family members of the Associaiion,
particularllr at a time, when the indLlstry needed
protessionally qualified persons to fill key technical
posts?
(d) How would you react to the management's scheme
for quarter allotment and whg ?
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MANAGEMENT PROGBAMME
Term-End Examination
December,2OO5
MS-24: PRE-REVISEDUNION-MANAGEMENT
RELATIONSREVISED EMPLOYIVTENTELAflONS
Time : 3 hours MoximumMarks 700
(Weightage70o/a)
Note :
(i )
(ii)
l i i ,
There are tuo Sections A qnd B.
SectionA hos frlo set's Sef I is meant lor the
students aho haue registeredJor MS'24 prior to
Jonuorg,2005 i.e. upto June, 2004 Set ll is meont
Jor the stualentswho haue registeredrom Jonuarg,
2005 ond onwards.
Attempt any three questions rom.SectionA All
questionscoffg 20 morks eoch.
(iD) Section B is compulsory Jor all and carries
40 morks.
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SECTION A
(Set D
(Pre-Revts€d)
l. Discuss the organisational factors which affect the
union-managementelationscitingsuitableexamples.
2. DescribeheoriginandgroMh of employers ssociarjons
in India.Discuss he pres€ntpositionandchall€ngesacedby theseorganisatlonsn the aurrentscenarlo.
3. ldentifu the skills of negotiation.Dscuss the negotiationprocess and cite suitable organisational examples in
supportol your answer.
4. Identify the shategies lor making participation more
5. Writeshort noteson any ttree of the following :
(a) Tripartiteconsultation
(b) Functionsof tradeunion
(c) Managingcollectivebargaining
{d) Arbiiration
(€) ApFoachesto indushial elations
20
20
20
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l -
5.
SECTIONA
(sETn)(Revtsed)
Discuss th€ role of Indian Constitution in evolimg labour
policy. Identily th€ impact ol ILO on ind$trial relations.
Brtelly explain how internal allairs of the union are
managed. Describe ihenew
rol€s of tradeunions.
Define collective bargaining. Desqibe the types of
colbctive baryaining citing suitabl€ organisatirn examples.
Define adjudication. Analys€ the principles ol industrial
adjudication.
Write short notes on any three of the following :
(a) Red Hot Stove Rule
{b) Obiecijves ot Worlers' ParticjpatioD in Management
{c) Activities ol Managerial Unionism
(d) Conciliatton
(e) Grievanceprocedure
20
20
2.
3.
4.
20
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SECTION B
6. Read the case carelully and answer the queshons given atth€ end :
Norman (l) Limited
.I''IECOMPANY
The Iirst wall tile manufacturing piant in India was
established y Kay Pee in 1963 at Than€ in Mumbai
under the name Norman Tiles. Thp <ompanywas using
the brand name'Norman', a leading intemational tile
manufacturer, Norrnan Intemational Limited and was
paying royalty {or the same. The Norman lnternational
Limiied owned 49% equity in this venture since lts
inception. With gro\ nh in sight the company set up
another manulacturing unit at Rampur in th€ state of
Uttar Pradesh with an investment of Rs. 85 million in ihe
year 1981. lnitially, at Rampur mit the company was
carrying out only partial operations with semi-finished
products being supplied b9 Thane unit. It was only in
1984, that the company started carrying out full
operations at the Rampur unit. Since the market lor
ceramic tiles staried expanding, the company €xpanded
its operations accordingly. The process of manufacturing
wall iiles was such that it needed unskilled manpower
barring few litters and eleciricians. Accordingly, the
compan9 hired 400 workers mostly uneducated and
unskilled from nearby villages. Few of them were takenfor the fitter and mechanicpositions.Apart from thege,
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there were sixty stalf members looking afier th€ other
suppori functions. The wo*ers were paid )ow wages and
were employ€d ontemporary
basisat
thebeginning and
ijil 1986 most ol them were noi made permanent. The
human resourcedepartment was headed by R.C. Jain,
who was an experienced professional and was with the
firm since its inception.
THE GENESIS
ln 1986 the company ventured into floor tile
manufacturing and set up another facility at Rampur unit.
This plant was s€mi-automatic as compared to the wall
tile plant which needed manual operations. The
machinery of floor tiles unit was bought from lialy and
due to the naiure of process some expefi€nced workers
were shifted fyom wall iile lacilily. Slowly, hro distinct
groups of workerc emerged based on the nature of fheir
job and subsequentskills required. First group was that o{
unskilled workers mosily associated with manual
operations and the second group was that of skilled
workerc looking after technical operahons. The second
gtoup was paid higher wages than th€ first group. Thisdisparity led to disconteDtmentamong wo*ets but in ihe
absence of union, it never came out as an organlsed
teactjon- The first such organised attempt was made by
workers in 1988, bui a prompt and harsh action lrom
management aborted the worke6'bid to form union.
However, this event drew management's attention
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towards workers' grievanc€s and management h€lped
workers to {orm a union in 1989. Th€ union was named
"Bhartiya Crystallisation Mazdr.rrSangh". However, sinc€
most of the wo(kers barring fe'r,/ t€chnical ones were
uneducat€d, they were unaware ol roles and
responsibllities f union
The management staried negotiations with the newly
form€d union and the first wage s€ttlement agreement
was signed on January 19, 1990. In this agreement,
though the management agreed to increasewages to the
extent oI Rs. 250 per month, it linked wages to
produciion iargets. Afier tlree months of this agreement,
the union leader left the organisation to join govemment
service. The union was left l€aderless. After some time
ihe workers started voicing their concem about thetarget-linked '"rJages,but in the absenceol a lead€r their
concems could not get a voice. It was at this point that
some extemal labour leaders sta*ed incitins ihe uotkers.
A gate meeting was organised to exploit the situaiion on
Septembd 21, 1990. After this incident the industrial
relations situation further worsened and led to a go-slow
movementby workers n January 1991. This affected he
productivity of the plant s€v€rely. Due to the absence of
union leadership. management too lound it difficult to
control the situation,since extemal eaders' nfluencewas
very much visibl€ and company's HR marnger R.C. Jain
refused to talk to the outsiders. He remained adamant
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and left the job in Marcb 1991 and th€ go-slow by the
workerc continued. In another development the
incumbent HR manager Arun Joshi, vho took over alter
Jain left converted rariable DA to a lixed DA rate. Since,
at that time in ation iras spirajling and the rate ot DA,
dlsewhere, was high, the wotkers refused to accept ihis
provision. Ultimately, under pressure from extemal
leaders as well as workerc of the firm, Joshi withdrew the
fixed DA and accepted the variable DA provision.
ln the meantime, K.N. Trivedi took over as the unit
head on May 5, 1991. Belore Joining this plant, he had
served the tndian Air Force for seventeenyears and was
a sinct drscipiinarian. The organisational situation
demandedquick
action io stopgo_slow because the
company had market share of forty per cent in both the
tile categories and the demand for tiles was still going uD
The management did not want to lose a single day's
production. In a catculated move the managemeni
suspended thidv five workers who were on a go_slow
This was for the lirst time that any work€r was suspended
fuom the plant which instrlleda senseoI fear in the minds
of the workers- As a resuli of tbis, workers started
workins and ihe productMty of the plant started showing
Meanwhile, the management had terminated some ot
the suspended empioyees who latet on mo!€d to the
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labour court against management's action on the
presumption ihat labour courts arc generallg sympathetic
to the work€rs. Ai the same time, Triv€di started dialogue
with the extemal leaders to end the stalemate. The
external leaders put pressureon the inanagement to
reinsiate the suspendedworkers. Management agreed td
make permanent those €mployees who were working
with the company since its inception and did it with
immediate effect. Suspension of some ol ihe workers wasalso cancelled.Though these efforts helpedmanagement
in streamlining the production, the atiitude of the workers
could not be changed totally. The ownership gpirit
amongst workers could not be developed.
The situation took another ugly tum in February,
1992 when the workers who were suspendedearlier tri€d
to create disturbances in the plant. The discontent was
further fuelled by bad food provided to the workers in ihe
units canteen in March, 1992. Ultimat€ly, this led to
fomation of a new union "Bhartiya Yula Sanitary ard
Crgstallisation Mazdur Sangh". This union was not
affiliated to an9 national labour union. However, the
leaders were under the influence of Bhartiya Mazdur
Sangh (BMS). This union eubmitted a cha*er o{ demands
to tie management. The demands included grain loan
whicb was a conlentious issue b€causethe company had
nev€I given any grain loan to the worke6. The demands
were rrot accepted by the management. The workers
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gheraoed Trivedi but the management did not accede to
the demandsand called he police to intervene.
On March 17, 1992 the workers went on strike on
the call of the union without givingany prior notice. The
management terminated seventeen workers during the
strike. The strike continued iill May 5, 1992. The
workers were not paid any wages during the strike
period. Since tbe workers w€re low wage earners, theywere unable to continue the strike lor a longer period.
Th€ management used the situation to their advantage
and accepted onty minor demands of sanctioning an
advance of Rs. 500 to the workers. The workers
accepted he managementdecision and were willing to
restart production. Management re-employed the
sus!,ended workforc€ gradually over a period of
filteen hrenty days. Since, th€ work€rs did not receive
wage. lor rle strike penod. they had realised the
importanceof iheir €mployment.
In October, 1993 the secondagreementwas signed
beiween managementand the union. Behreen October,
1993 and December,1996 the productivityand industrial
relations were improved. In 1996 th€ organisation started
receiving export orders for its products. The quality
requ:rements for th€ export orders were string€nt.
Therelore, the organrsalron ecided ro go in for ISO
9000 certification for their Rampur plant. The
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management realising the importance of workers'
involvement in ISO 9000 cedification proc€ss stafed
training work€rs on a continuousbasis n June, 1996.
The in-house training emphasised on house keeping,
geneval hygiene of the workers, standatd operation
procedure and awareness about all kinds ol lostes. As a
result of contimred efforts, ISO 9002 certification was
receiv€dby the plant in January, 1997. Meanwhile, he
third wage agr€ement was signed behveen themanag€ment and the union for a period of three years in
January, 1997. To rcinforce the training process, HRD
cell with well_equipped in-house b-aining tools was
developed in January, 1998. Training programmes
iocussed on ghoFFfloor excellence and iotal Poductive
maintenance {TPM). Qualitym;nual for intemal use was
also developed. The goals for 2000-2001 for the plant
were devised as under :
a Laying of natural gas pipeline
a ISO 14000 certification
a Control of losses
a Reduction jn personnel expenditute
a Team building training
The Rampur plant ol Norman had come a long way
sinc€ ts inception. n the words of Trivedi "despiteal l the
bottlenecks w€ have achieved a satisfactory level of
productivity. We still intend to continue doing so by
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various means. However, I want to build this plant as a
communiry where each mernber's commjtment with the
plant remains high. This can only be achieved by
inculcating the ownership !?lue. We sincerely believe that
this can only be developed by creating a community ol
Norman in which every member is ensured of a minimum
standard of living with all basic amenities and worry free
life away from work. We intend to do so by providing
medical, educational and vocatjonal training facilities for
their families, thereby developing trlist between the
managementand the workers".
Questions ;
(a) Does lormation of trade unions help organisations
impvove indusirial relations ?
(b) Was it a nght strategy to nMure pro-management' tmion leaders?
(c) Th€ strategy to instill fear in the minds of workers to
improv€ their productivity was jn the inter€st of the
organisation, Discuss.
(d) ln your view, what action should have b€en taken by
the managem€nt at various stages to improve
labour-manag€ment r€lations ?
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MANAGEMEM PROGRAMME
Term-End Examination
December,2OO5
MS-25 : MANAGINGCHANGE NORGANISATIONS
Time : 3 hours Maximum Marks : 100
(Weishtase 70a/o)
Not€ |
(i) Tbis paper consisb of tuo SectionsA ond B.
(ii) Section A con$ists o/ tuo sets. Set I is to he
attempted by students Lrho hqve rcgistered t'orMS-25 belore Jsrtuorg, 2004. Set It k to E€
ottemprer lbv studen/suho haue registeredolMS-25 fron Jahuary, 2004 on(a1d'
(iii.) Ansurer ony four questions rom SectionA, eoch
corrying 75 marks.
(iu) Section B is compllsory lor att and conies
40 marhs.
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4.
SECTTON A
SET I (Pre-Revlsed)
1. Discuss the process ol lranslormational change and ihe
steps involved in ii. llu$trdie an instanc€ where such a
change was brought about.
2. What is an organlzational intervenlion ? Brielly discuss he
meihods o{ task force and ifternal {acilitator development
with examples.
3. Describ€ th€ roLe of an intemal change agent and its
significance. Discuss the skiLls required for a successJul
changeagent.
What are the reasons or the failureof implementation l
change jnterventions ? What interface would you sugg€st
behr€enmanagement nd employeesn suchan instance?
Write short notes on any three of the following ,
(i) Work redesigo
{ii) Sourcesof r€sistanc€o change
(iii) Observationmethod
(iv) Role of chief impl€m€ntor o change
(\,) Rol€ eJficaca
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SECTION A
SET tl (Revised)
l. Why do peopleand organisationsesistchange? D€scribe
few methods f managing€sistanceo change.
2. Justifu the processof change evaluationand briefly discuss
its process Highlight action research n e'./aluaiingchange-
3. Discuss the role of business
organisational change andsignificance.
process re engineering n
critically evaluate it s
4. Dlscuss he factors of a successfr.rlompany in continuously
adapting o chirnge. llustrat€.
5. Write short notes on any ,hr€€ of ihe following :
(i ) Turn'aroundmanagemeni
(ii) M€rg€rsand Acquisitions
(iii) Role negotiation echnique
(M Transactionalanalysis
(v) Role of a leader n changemanagemenr
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SECTION B
Read he followingcasecarelullyand answer he questions
glvenat ihe end i
TransAct Insurance Corporation (TIC) ptovid€s
automoblle nsurance hroushout he south'easternUnited
States.Lnstyear a new presideniwas broughi n by TIC'S
Board of Directors ro improve lhe compdnv.
comp€iitiven€ssand customer service. After spendjng
several months assessing the situation, the newpresident introduced a strategicplan to improve TIC'S
competitive position. He also replaced three vice'presidenls.
Ram Kumar was hired as vice presidentof
claims, TIC'S largestdivision with 1,500 employees,50
claims center managers, and 5 regional directors.
Ram Kumar immediat€ly met with all clajms
managersand dire€iors,and visited employeesai T!C's
50 claims centerg.As an ouisider, his was a formidable
1ask, bui his strong interpersonai skills and uncanny abiliiy
io remember names and ideas helped hinl through the
process.Through thesevisiisand disclrssions, am Kumar
discoveredhat the claims divisionhad been managed n
a relativelyauthoritarian, op down mann€r.He couldalso
see that morale was extremely low and
employee-management elations were guarded. High
workloads and isolation (claims adjusteis work in tiny
cubicles)were two other common complaints. Several
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managers ac.knowledged hat the high turnover among
claims adjusierswas partly du€ to thes€conditions.
Folloling discussiohs r.i,jth TIC'Spresident,
Ram Kumar decided to make morale and supen sory
Ieadership his top prioriiy. He iniiiated a divisional
newsletterwith a iear off feedback orm for empioyees o
register their comm€nts- He announcedan. open-door
-policAin which any claimsdivisionemployeecould speak
to him directlyand confldentially ithout gotng irsl to the
immediate supervisor. Ram Kumar also fought
organizational barriers to initiate a flextime program so
that €mployees ould designwork schedules round their
needs. This program later became a model for other
areasof TIC.
One of Ram Kumar's most pronouncedsymbols of
chaoge was rhe Claim5 Mdnagenenl Credo outlining
ihe philosophy that every claims manager would follow-
At his first meetingwith th€ completeclaimsmanagement
team, Ram Kumar present€da list of what he thought
were imporiant philosophies and actions of efle.tive
managers.The managementgroup was asked to selectand prioritize tems from this list. They were told that the
resulting list would be the division's management
philo5qptry 16 all manag€rswould be held accountable
for abiding by its principles.Mosi claimsmanagers xere
uneasyabout this process,but they also understood hat
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the organization was under competitive pressure and that
Ram Kumar was Lrsing his exetcise o demonstratehis
Ieadership.
The claims managersdevelopeda list of 10 items,
such as encorrraging teamwork, fostering a trusting work
environment, setting c)ear and reasonable goals, and so
on. Th€ list was circulated o senior management n the
organizatiori or their comment and approlal and sent.
back to all claimsmanagers or their endorsement.Once
this was done, a copy of the final documeniwas sent to
every claimsdivisionemploye€. im alsoannouncedplans
to follow up with an annual survey to evaluate each
claims manager's pe ormance. This worried the
managers but most of them believed that the cr€do
exercisewas a resultof Ram Kumar's initial enthuslasm
and that h€ would bi: too busy to introduce a survey aft€r
settling inlo the job.
One year after the credo had be€n distributed, Ram
Kumar announced thai the lirsi annual suwey would be
conducted.AU claims employeeswere to complete the
survey and r€htrn it confideniially to the human resourc€sdepartmentwhere ihe suftey resultswould be-compiled
for each claims center manager.Th€ survey asked the
ext€nt to which the managerhad lived up to each of the
10 items in the credo. Each orm alsoprovidedspace or
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Claims center managers were surprised that the
suney Ram Kumar had promised a year ago would be
conducted, ut they were evenmore worriedabout Ram s
statement that the results would be shared with
employees.What "results would employeessee ? Who
would distribute th€se results ? What happens if a
maoagergeis poor ratings rom his or her subordinates
"We'll work out the details at€r," said Ram in respons€
to these questions. "Even if the survey results aren't
great, the information will give us a good baseline or
next ygar's surv€y.
The claimsdivision suney had a high response ate.
ln some cent€rs, every employee completed and reiurnecl
a form. Each report showed he claimscentermanag€is
averagescore for each of the 10 items ahd how many€mployees ated the managerat each l€vel of th€ five
poini scale. The teports also included every comment
made bv emploupes. r rhdLcenler.
No one was prepared for the results ol tbe tirsi
survey,Most manager6 eceivedmoderateor poor ratings
on the 10 items. Very lew managersaveraged bove3 0
(out of a five-pojntscale) n more than a coupleof iiems
This suggested hat, at best. employeesw€re ambivalent
about whether their claims center manager had abided by
$e tO management hi losophy lems.The commenrs
were even more devastating than the ratings Comments
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ranged lrom mildly disappojnted o extremelycritical ol
their claims manager. Employeesalso descrjbed their
long-standing rustraiion with TlC, high workloads,and
isolatedwork'ng conditions.Severalpeople btuntlystaiedthat they were skeptical.abouthe changes hat Ram had
proftised. "We've h€ard the promises6efore, but now
we've losi faith." wroie one claimsadjuster.
The survey esultsweresent to each claimsmanager,
the regionaldirector,and employees t the claimscenier.
Ram Kumar instruciedmanagers o discuss ne survey
data and comments with their regional manager and
ditectly with employees.The claims center manag€rs,
who thought employeesonly receivedaverage scores,
were shocked to learn that ihe reports inciuded individual
comments, Some managers went to. their regional
director, complaining that revealing ihe p€rsonalcomments would ruin iheir care€rs. Many directors
sympathiz€d,but the results were already available to
employees.
Wh€n Ram heard about these concerns,h€ agreed
thatthe :esuhs were lower than expected and that the
commenis should not hav€ been shown to employees.
After discussinghe situationwith the regional dlrectors,
he d€cidedthat the di$cussionmeetingsbetr.reen laims
manag€rs and their employees should proceed as
planned. To delay or wiihdraw ihe reports would
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Lmdermine he credibility and trust ihat Ram was trying to
develop with enlployees.However, the regionai dhector
in that ar€a attended he meeting n €ach claims center
to minimize direct conflict between the claims center
managerand employees.
Alfhough many ol these meetjngs w€nt smoothly, a
few createdharsh leelingsb€iween managersand their
employees.The source of some comments was easily
identifi€dby thejr content,and ihis createda t€w delicate
moments in severalsessions.A few months alter th€se
meetings, two daims center manage.s quit and three
others asked for transfers back to non,manag€m€nr
positions in TIC. Meanwhile, Ram wondered how to
manage this proc€ss more effectivejy, particularly since
employeeserperred another >urvey he fohowingyear.
Questions :
(a) Identify he forcesplshing for changeand the forces
resiraining the change effqrt in this case.
Was Ram Kumar successfulat bringing aboutchange ? Why or why nof ?
What shouldRam Kumardo now ?
(b)
(c)
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l ' * lMANAGEMENT PROGRAMME
Term-End Examination
December,20O5
MS-26: ORGANTSATTONALYNAM|CS
Time , 3 hours MoximumMorks 100
(Weishtoseqa/o)
(i) There ore h\)o SectionsA ond B.
(ii) Attempt an9 thrce questionst'rom SectionA. Eochquestion carries20 morks.
(iii) Sectian B is computsory and carries40 marks.
SECTION A
l. Wnv i\ rhe .rudy ol groue impo"ranr or a manager Aregroup processes function of interaction? Explain wiih
2. Dpscribp hp processof Burnout. Eyptain with examptevariousstagesand sources J Bum-oui.
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3. What is emFow€rment? Describe ariolrsmeans hrough
which leaders enhance their own, as well as iheir
subordinat€s'powers.
4. Explajn the concept of div€rsity.Briefly discussvarious
approaches o d€al with diversiv in lh€ organizational
5. Write shoft notes on any three of the following
{a) Groups and Committees
(bl Conformiryand Obed.oncp
(c) Role Analysis
(d) Social esponsibilitiesf organisations
(e) Alienation
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SECTION B
6. Read he caseand answer he qu€stions ivenat the ert.
JagannathUaggufor his tdends) s an over-iimbitious
young man. For him ends ustify means.
Wiih a dipioma in engineering.Jaggu joined, in
1977, a Bangalore based company as Technicai
Assistant-He got himself enrolled as a student in an
eveningcollegeand obtain€dhis degree n engineeringn
1982. Recognising is improvedqualificatibn, aggu was
prornoted s Cngrn"er-S"re:n 3954.
Jaggu excelled himself in the new role and becafie
ihe blue-eyed oy of the management.Promotionscame
to him in quick succession. e was made Manager'Sales
in 1986 and S€niof Manager'Marlielingn 1988.
Jaggu did not forget his academicpursuits Atter
being promoted as Engineef'Sales,e join€d the MB.A
(parftime) programme. Aiter completing his M.BA,
Jaggu became a Ph.D. Scholar and obtained. hisDocroraten lq8g.
Functionjng as Senior ManagerMarkeiing, Jaggu
eled on thjngs beyond his iurisdiction. He staried
complaining against Suresh,Section Head and Prahalad
the Unit Chief (boih production) to Ravi, the
Ltecutive-Vice President. The complaints inclld€d -
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delay in executing orders, poor quality, customer
rej€ctions,etc. Most of the complaintswere concocted.
Ravi ,vasconvrnced nd rpqLesred a99u o J-pod i,e
produciionsectionso that rhings couldbe straighi€n€dp
ihere. Jaggu became he s€ction Head and Sureshwas
shiited to saies.
Jaggu stariedsFreading is wingg.He prcvailedupan
Ravi and got saleg and quali4r under his conirol. in
addiiion io produciion. Suresh,an equal in siaius, was
now subordinatedo Jaggu.
Succesg ad gon€ to Jaggu'sh€ad.He had everythjng
going in his favour - posttion, power, mon€y, and
qualification. He di{id€d \rorkers and us€d fhem aspaL\,ns.He ignored Prahalad and established direct link
with Ravi, Unable to b€ar th€ humiliation,prahaladqujf
the company.Jaggu was promotedas GeneralManager.
He becamea m€galomaniac,
Thrng, had to endat >omeDuinl . t hdppened nJaggu's ile too. There were complajntsagainsthim_ He
had inductedhis brother-in-law,Ganesh,as an engine€r.
GaDesh was bv nature corrupt, he siole copper wofth
Rs. 5 lakh and Lvasslrspended. aggu tried io defend
Gah€shbut fajled in his etfoft. Corruption chargeswere
also levelled against Jaggu who was report€d to have
made nearlg Rs. 20 lakh tor hhnsetf.
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On the new year day of 1993, Jagguwas revefted
back to his o)d posliion - sales.Sureshwas promoted
and was asked to h€ad productjon.Roles got reversed.Sureshbecameboss o Jaggu.
Unabl€ o swallow he insult,Jagguput in his papers.
Back home, Jaggustartedown consultancy laiming
himself as an auihority in quality managem€nt. He
poachedon his previous ompanyand pickedup two best
brains In qu"lin,.
Frorn 1977 to 1993, Jaggu's career graph had a
steep rise and a sudden fall. Whether there would be
anotherhump in the cu)ve s a big qu€stion?
Qres,ions j
{d) What is lhe core i5\ue n rhe case Drsauss.
(b) How do you se€ the rise and fall of Jagguvis-a-vis
prevailingpow€r dynamicsand overallorganisational
policiesol th€ company? Supportyour answerwith
logic.
lc) What \,,rouldou do if you weYe
(i) suresh
(ii) Prahalad, nd
(iii) Ravi ?
(dl Wl-ar would be tour d(non if you were rhe Ma-dgrng
Director of the company?
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MANAGEMENT PROGRAMME
Term-End Examinaiion
December,2OO5
MS-27: WAGEAND SALARY
ADMINISTRATION
Tine , 3 hours Moximun Marks 100
(Weishtase70o/d
Note :
(i ) There arc two SectionsA ond B.
(ii) Attempt sny four questionsJrom &ction A, eoch
question corrging 75 morks.
liii) Section B is cor/rpulsory, ond corries40 marks.
SECTION A
1. Explain the role of indMdual and group reward systems n
an organisation. What is ih€ fecent trend in reward
management ?
2. Critically examine various methods of job evaluation.
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3.
4 .
Discuss he various componentsof compensation stlucture.
Give an account of various factors to be taken into
consid€rationor determining ompensation nucrure,
Attempt ihe lollowing queshons:
(a) What are the various meihods for lixation and
revision of minimum wages under the Minjmum
WagesAct, 1948 ?
(b) \ihat are the salient features of the Employees'
Provident Fund Scheme under the Employees'Provident Fund and Miscellaneous rovisionsAct,
1952 ?
Discuss the key economic and L€halioural issues
propounded by ihe wage theorists.
What are ihe consideraiions for compensation policy atmacro and micro level ? What are the practical dilficulties
in translating these policies into action ?
6 .
7. Wrlte short notes on arrg three :
(a) Wage survey
(b) Relatingpay to competencies(c) Fringe bene{its
{d) Executivecompensation
(e) VRS
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SECTION B
E. Please eadthe caseand answer h€ quesiions iv€nat the
The National ManufacturingCompany reached an
agreement with iis Union on a production incentive
scheme to increase production. The Company had an
unprecedenteddemand for its goods and the Union
agreed lor the incentivescheme.The managementwas
pleased with the assuranceof the Union leader topersonally undertake the iask of implementing the
scheme.The managementpromised o give him a free
hand 'f he could increase he production.
The Union did increaseproduction o almost double
the original level. As a result, the Union gained
importance. Any problem could be sorted out by the
Union by its direct access to the chief executive. The
rnanagem€nl sraff as d result became wary of i.5
interactionwith ihe Union. Non-members f the Union
were discriminaiedby the Union. lts m€mberscould Set
special favours like disposal of their gri€vances,
promotions.and so on.
The incentive scheme benelitted primarily the Union
members. The scheme was inequitable as some workers
got disproportionately larg€ inc€ntiv€s, some low and
some no incentive at all. Th€ second feature was that as
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the incentive was linked to the Consumer Price Index
ICPI) the disiortion got further accentuated. However,
when the Union tried to misuse ts new found powers he
managementstruck back one day by taking disciplinaryaciions against all the leaders and the Union found all oI
a sudden hat it was without a leader.
Another Union arrived on ihe scene and the leader
had esiablished a rapport with the chiel executive and this
new Union faithlully followed the tenets of the
management ut as a price extracted ome b€n€fits or its
membersexclusively. i had a say on all aspecisof the
management function like reduitment, selection,
transters, job classification, nd so on. In return the
Union saw to it thai production becam€ its exclusive
responsibilityand it had a hot line v,'lth the chiel
executive
{or any problem resoluiion. Again the management
became wary that their paih should not cross ihe path oI
th€ Union resulting in a confrontation.
As the years passed, the Union staried agitaiing for
improvement n the wage scales.Because I the inceniive
sch€me, the company found that any improvement in the
basic wage would pose greater problems and the primary
question before the management was to delink the CPI
from the incentivescheme.The Union r€fused o delink
the CPI from the incentiv€ scheme as some o{ its
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members were earning an amormt equal to, if not more
than the salary as an incenijve itself. At the same time
workmen with no inc€ntive and being grade barred began
to lose. And this resulted n discontentment mongst he
workmen. Bui the dilemmacouldnoi be resolvedand {]is
led to an explosive ituation.
A third Union emerg€d on the scen€ and this led to
lntense nter-union ivalry_resultingn indiscipline,oss of
production, and violence wjthin the factory premjses, asa resultof which the companydeclareda lockout.
When the plant r€opened after four months, the
Union in power lost its credibiligand the new Union had
the complet€supportof the workmen. In th€ meanwhile,
the new HR Manager who join€d the conrpdngourmgthis period ol strife found that a new approach to deal
with tie problem was very helpful. Normalcy in discipline
and production seemed to retum wh€n a realistic
approach of meetng ihe workmen tor resolving problems
and diflicultieswas mad€ by the HR Manager and the
Plant Manager. Simullaneousiy contact Mth workmen tedto the formaiion of committees o look arer vanous
matters relating to the canteen,working conditions,and
welfare functions.The managem€nt lso withdrew at th€
instance of th€ HR Manager, chargesheeis which were in
force for over h.r,o o thre€ years. The abuse ot discretion
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by the old Union leaders was also rectified This had an
immediate effect and the workmen responded favourably
and they ev€n admitted that iher€ was somebody to look
into the problems of the workmen.
The new Union leader was happy that the
management could develop a rappod not only with the
leader but eve4 the workmen and hoped thai it could
expect the management io rectify the d€fect of not
having revis€d the wage scales. But this was not an easy
task as there were a lot oI inequaliiies that the
managementwanted to set right.
The Union, though agreeing with the managemeni,
would not agr€e for a cut in the wages in any manner to
sei right the inequalities. The Union not only wanted to
cling to the beneficial aspecb of the incentive schem€but
also insjsted that the management somehow give an
increase in the basic wages. The management was being
drawn into a viciotls circle of the incentive scheme being
inequitable, but when the Union's attention l,n?s bemg
brought to the high incentive caiegories it reverted to the
low basic wage theme. The management r€mained in a
quandry as regards how to convince the workmen, to win
ov€r the constituenca of workmen, and firake managers
effective and regain supremacy in production.
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Qu€stions :
(a) Identifg he problemsand their causes n me case.
(b) Under the given situaiion,how are ihe problems obe remedied?
(c) As a human resourc€manager,how do you deal
with this case, especially when the Union is
demandinga settlemeni
(d) Suggest various principles and strategies the
managem€nthas to keep in mind while formulating
a wage incentivescheme or the employees.
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MANAGEMEM PROGBAMMETerm-End Examination
December.2OO5
MS-28 : LABOURLAWS
Time 3 hours MaximumMorks 100(Weishtoge700/0)
No'€ :
(i) There are two Sections A ond B.
(ii) Attempt ony fiDe questions roh Section A. All
guestions n SectionA cotry 75 morks each.
(iii) Section B is corl'pulsory anal carries25 morks.
SECTION A
1- What are the constitutional directiv€s n the field oi labour
laws ? What basic changes would you suggest n the labout
fdws to meet the present rcqorenetts of Jabour and
industry ?
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2. Attempt any tr(Jo ot the {olh^rjng :
(a) What are ihe welfare measuresunder the FactoriesAct, 1948 ?
(b) What are the salieni f€atures of Shops andEstablishments nw ?
{c) What are the statutory restrictions on rhe
employment of contmct labour under ihe Contract
Labour (R€gulation nd Abolition)Act, t97O ?
What is the procedure for certilication of standing ordersunder the Industnal Employment (Standing Orders) Acr,7946. Give a list oI acts or omissions on the part ol aworknan, which amount to misconduct.
Give an account of different authorities under the Industrial
Disputes Act, 1947. Whal are th€ powers and duiies ofsuchauthorities
Examine the main features of the Pa!,rneni of Wag€s Act,1936. Hightight the provisions regarding deduction fromwagesunder he Act.
Discuss the various benefits payable under the Workmen's
Compensation Act, 1923. What exactly is the meaning ofthe expression "accident arising out of and in the courseo{empiolment" ?
3.
4.
6.
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7. Write shortnoteson any three of the following:
{a) Principles f naturaliustice
{b) Procedureor registrationol a irade unionunder beTradeUnionsAct, 1926
(c) Classification f labour aws
(d) Strikes and lockoutsunder ihe Industrial DisputesAct, 1947
(e) EqualRemunerationct, 1976
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SECTION B
8. Read the casegiven below and answ€r the questionsgiven
ai the end of the case :
Lakshmi Manufacturing Company is a register€d
faciory employing 600 p€ople. It produces spare parts for
cars and scooiers. ts securitystafl at the gaie are very
rigid in checking people/vehi.les going out of the works
to preventany theft of the company'smaterial.
On June 20, 1995, Ramesh, material chaser,
sewices department, went to the stores depafment to
draw 10 new GEC electricswitches 15 amps each) for
some urg€nt breakdown job. Rameshdrew the material at
about 11 A.M. and kept the same in his hand bag and
put it on the cycle handle. Thereafter, he came to the
Cooperative Credit Society oflice to enquire about his
loan application-He suddenly emembered t 11 30 AM
his urgent work at the post olfice (which is sltuated just
ouiside the work gatQ, so that he could write and post
an urgent letter and thereafter go to his departmeni
which is sjtuated at a distance of about one km lrom the
stores department. The dislance between the stores
department and the works gate is about 50 metres.
Rameshworks in generalshiIt, .e. from 7 A.M. to 11 30
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A.M. and 12 30 P.M. to 4 P.M- The lunch-break is
from 11 30 A.M. to 12 30 P.M. and du'ing this period,
workeE are allowed o go out of the works. Ramesh, ike
many otiers, arrangedwiih a person to get his tiffin-
carrier from home to his d€partment .every day ai
11 45 A.M. on payment of a nominal amoum every
month. On June 20 also, his tiffin-carrierhad come.with
his Iunch as usual.
At 11 35 A.M., there was telephonecall to Mahesh
Kumar, Manager Service Department lrom the security
inspectorRamanand hat one Ramesh,T. No_ 321 has
been caught red-handed at the works gat€ while trying to
goout of the works with 10 new GEC electric switches
belonging ro the companv. The rlro securirystal( who
detected th€ attempted th€ft were Ramadhin and
Trilochan. The mat€rials were kept in a bag hanging from
the cycl€ handl€ ol Ram€sh.
Atter the incident, a preliminaryenquiry was held,when Ramesh confessed in writing that by mistake he
was carrying he swiichesas he intended o come back o
his departmentafter his urgent work at the post office.
As per procedure for drawing materials in the seNices
department,on the basisof a written instruction n the
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log Book from the supervisor, matenal chaser is
supposed to prepare the material requisition afier entering
th€ details himself in the MaterialsRequisitionRegister.
AIter getting the Requisition sign€d by the sup€rvisor and
the deparlmental h€ad, he is supposedto go to the stofes
departmeni to draw the material. If the maierials are
heaqr, he has to atrange for a transport. For small items
like switch, fuse, etc. Ramesh himself caffied the same to
the department. Thereafter, he is supposed to hand over
ihe material io the supervisor and obtain his signahre in
the Materials Requisition Register.
On checking up th€ entries in th€ Log Book as well
as in the Materials Requisition Register after the incident,it was Iound that Ramesh had corr€ctly entered ten pieces
GEC electricswitches 15 amps each).
As pet StandingOrderNo. 17 (iii)of tle Company's
Certified Standing Orders, "Theft, fraud or dishonesty in
connection with company's business or property" is a
misconduct warranting dismissal as per Standing Oder
No. 18. The rules also provid€ that the managey can
issue a charge-sheet and also punish with dismissal an9
employee of his depafment who is alleged to have
committed an act of misconduct.
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Questrons :
(a) Advise the Manager,ServicesDepartmeni on thesieps equiredo be lalen in fiis case.
(b) Assuminghat a domestic nquiry s to be held,
suggestar'iousteps f enquiry,n detail.
(c) Suggestwhat positivemeasur€s re to be taken by
the companyor maintainingndpromoting ound
industrialiscipline.
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I Ms4il
MANAGEMENT PROGRAMMETerm-End Examinati,on
December,2OO5
MS-4't ; WORKINGCAPITALMANAGEMENT
Time : i hours MaximumMorks 100
(Weishtoge70Vo)
(j) There ore three SectionsA, B and C.
(ii) S€ction A is mesnt only for the students, Loho
hoDe egistered ar MS'41 wior to July, 2004 I e.
upto Janudry 2004.
(iii) Sectaon B is meant ohly lot the students
registered for M*41 Jron July 2004 semesteronudrds,
(tD) Sectlon C is compulsory Jor oll students
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1. la)
sEcttoN A
Atlempt anv t@o questions. AII questions corrg
20 mdrks.each, .."Current Assets of a lirm are not productve asseiswhile lixed assets are the only assefs tltat generare
aiid produce incomes for a firm. Therefore, aiinance nanager shouid reduce investnrenF mcurrent assets and enhance investments in fixedassets."
Comment on this statement and givereasons of your opinion.
XYZ Limil?dhas toial salesof Rs. 12 8 takls lor rheyear 2004-05. It is estirnated that for ihe sam€period ihe companyhas a grossmargin of 15 per
cent and a current tutio oI 2.5. Cunent liabiiitiesofllre company are Rs. 1.92 lakhsi lnventodes Rs.
0 96 ia-khs and cash Rs. 0 32 takhs. you arerequlred o determine
{i) the average inventory carried by the company,if an inventory turnoler taiio of 5 tirn€s is
estimated. (Assumea 360day year)
(ii) the ar,eGge colhciion period il the opening
balanceof debtorswas Rs. 1.60 lakhs. (Assr_rmea 360day year)
Siate \r'helher th€ ,ollowing managerial acuons(individual! and indep€ndently) would improve orteduce ihe liquidi9 posiiion ol a flrm :
(i) It btrys inventory lor cash,
{ii) lt buys inv€ntory on 2 months cr€dit.
(jii) lt sellsgoods o a cuslomeron credit basrs.
(b)
2' (a)
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(b)
{M li transfers goods to the project department of
the lirm.
(v) It uses cash to make payment to the creditors.
mat will be the effect of the tollowing on the
receivabies ol a tirm ? Mention wheiher the
receivables ould rro€ase. decred.esor wili remain
the same,
0l Inoease n -norkerinrer€st ares
(I) The generaleconomiccondirions lacken
(iii) Increase in the production and distribution cost
(iv) A change in the credit policy ol the lirm lrom"2/10, net 30" to "3/10, net 30"
{v) Banks have staded more relaxed and flexible
billsdiscounting chem€s
"Every financial decision involves ihe trade-off
between risk and return." In the light ol ihe
statement, discuss ihe kind of kade-offs laced by a
finance manager in determining the optimal level of
current assets.
Distinguish between I(i) Hedging Financing Strategy and Aggressiv€
Financing Shategy
{ii) Funds Flolt Statemeni and Cash Ftow
Statemeiri
(iii) Money Markei and Capital Market
(iv) Liquidity of an assetand bquidity of a firm
3. (a)
(b)
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SECTION B
Note: Attempt orjy t.ro quesiions. Al l questionscorry
20 marks each.l. (a) 'Ratio
Analysis is an important tool in ensuring
eflectiv€ linancial planning. ln the light of the
statem€nt, state how Ratio Analysis is of great use to
a linance manager n maLing an effective inancial
plan fol the \ ro*ing capjtal of a tirm. lllusirate your
(b) A company hasexperienced stochastic emand or
its product. As a result, the daily cash llows also
behave andomly.The standard eviationof daily net
cash flows is Rs. 1,000. The company wishes to
make ihe transfer o{ funds from cash to marketable
securities and vice-versaas automatic as possible- It
has heard that this can be done by using some
mathematical model. The current interest rat€ is 6%
and the fixed cost associatedwith cash transfer is
Rs. 1,00, and transfersare instantaneous. ou are
required to determine the optimum control limits
assuming h€ minimum limit for cash t'alances or
the firm is Rs.2,000.
2. (a) Discuss how a finance manager takes into account
risk-rcturn trade-off considerations in each of the
following financing strategy of working capital
rcquirements of a firm :
(i) Hedging Financing Stmtegy
(ii) Corc€rvative Financing Sb-ategy
(iii) AggressiveFinancing Sirategy
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{b) Name and define four most important financial ralios
related o currentassets nd current iabiliiieswhich
a bank g€nerally considers while extending ashort-term loan for working capital purpos€s.
3. The following information has been extracted tom the
books of M/s ABC Limited :
7. Average Debtors (outstanding)
2. Raw MateYialConsumption
3. Total ProductionCosi
4. Totai Cost of Saies
5. Sales or the year 2004-05
6. Value of average tock mainiained
I Raw MateYial
I Workin Process
r Finished Goods
7. Av€rage Period of credit allowed
by the suppliers
8. Assumed number of days in a yeaY
8004,400
9,000
10,500
16,000
330350250
16 days
360daysYou are required to compute the Operating Cycle ol the
company in terms of days. Calculate the e[fect on the
operating cycl€ if the averageperiod of credit auowed by
the suppliers s extended o 30 days.
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sEcTtoNNote: Attempt any three questlons. II questions arry
20 morkseoch.4. M,/S TRY-YOUR-SELFEQUIPMENTSPVT. LID. is a
manufacturing ompanyand is producingsomehousehold
equipnrentsor housewivesn lndia. The followingdatahas
beencollected rom lbeir Arnual R€pod,2002.
Balance Sheet as on ,,, {Rs. in lokb/
31-03-200231-03,2001
Fixed Assets SeeNote A) 225 27 23154
2.7 3 0 4
CurrentsAssefs
1188 1 1166 5
Debtors 88 63 10563
Loa0s and Advances 151 .41 11238
Cash aod.Bank 30-16 17.51
Total 1686.49 1636.35
Liabilities
ShareCapital 377 373.72Reserves nd Surplus(SeeNote B) 631.16 637,69
Secured oans 10796 336.49
UnsecuredLoans 299 3.66
Current Llabilitiesand Provisions 510.83 284.79
ProposedFinal Dividend 56.55
. Total r6a6-49 1636-35
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Prolit and Loss Account for the gear €nding on ..-.
(Rs. in Iakh)
3103-2002Sales 9551.23
Less
Raw Materials 2757-25
Salaries& Wages 5730.5
Manufactu/ing a)td Pfoductjor Expenses 393 2Depreciaiion 52 49 B9s3 6
Gross Prolit 617.a7
Less
Administrative,elnng nd DistributiveExpenses
Interest 6.99 (163.15)
Add : Other Incomes 31.83
Prolit Before Tax 486.55
Less : Provisionfor Tax 32908
Profit After Tax 15747Appropriatiols :
63.22
fnterim Divjdend paid during the year 3 7 7
Proposed inal dividend 5655
757 4'l
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NOTES:
A. FIXED ASSETS
Net Value as on March 31, 2OO1 231 54
Add : Pr.rchases Duting the year 53.85
L€ss SalesDuring he Year
Less Depr€ciation 52.49
Net Value as on March 31, 2OO2 225-27
B. RESERVES
Net Value as on March 31, 2OOl 637.69
Add : Transfer rom Profil & LossAccounr 63.22
Add ; SharePremium 2 3 2
Less i Dividend of the previous y€ar paid during the year 72.07
Net Value as or March 31. 2OO2 631 .16
Required : Preparea Cash FIow Statement.
5. (a) At present,a comiranys followingEOQpolicy.Under
this policy, t is placing10 ordelsof 4,000 unils each
e\)eryyear at a ftle ol Rs. 100 per unit. It regtits in
Rs. 5,000 as total ordeying cost and Rs. 5,000 astotal
holding cost each year. Assume that another supplier
is willing o supplyat a rate ol Rs.95 per unii provided
the companyplac€dorderof at east10,000 unitseach
time. Sbor.:ldhe offer be acceptedby lhe company ?
Support gour answer with necessarycalculaiions.
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(b) A firm is facing stifl competiljon in the marj{et andits sales have become almost stagnant in lasi lewyeors. In older to boost sales, among many things.the marketingdepartmenthas suggest€d xtendingcredit p€riodfrom pr€sent30 days o 45 days.Theirestimatesshow that such a polica would yesult in anincreaseof 10% in sales rom the existing evel ofR'. 100 crores.
To determine whether this recommendation of
exlending 6edit periad be accepted, as a finaflcemanaget. yoLt are lequired to detetmine Lherespective ostsand the behefits or the sameand togive the recommendation.The cost of funds isestimated o be 16% p.a. and the ContributiontoSales C,/S)Ratio is 20E0.
What will be your re"omne-datron a\ rhe Firan.eManager in this regard ? Support 5rouranswer withnecessarValculations.
6. What is meani by Cross Working Capital ? How does it
differ from Net Working Capital ? X Ltd. sellsgoods at a
gross profit of 20% oI S€tljngprjce.
The followjng dara arefor ihe periodof 12 monthsendingon March 31, 2005.
Based on the following data, you are r€quired io estimaie
me reqirement ot working capital of X Ltd.
(i) A safetymarginoI 15%o f the amountestimatedwillbe maintained as a part of working capital
requirement o meet contingencies,
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(ii) Cash is to be held to the extent of 50%
ot cwrent liabilities.
There \rill be no wotk'in-ptogress.
Tax may be ignored.
Stock of raw material and finished goods
are kept at one monti's requirements
Annual Salesat 2 monthscredii R5 27,00,000
(iii)
(ia
iri)
(vii) Annual Matedal consumed
(Suppliers' redit-2months)
(viii)AnnualWagespaid n the beginningRs. 5,40,000
(ix) Anlual Manufacturingxpenses Rs 7,20,000
(These xpenses repaid one rnonth n arreors)
Rs.6 ,75 ,000
{x) AdministrativeExpenses'paid
duringihe gear
(These xpenses repaid one
(x4 Salespromotion expenses
{paidquaderly n advance)
Rs.1,80,000
month in atreors)
Rs.90 ,000
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7- Goldsand Limited has estimated the followjng lor the nexi
four quarters while determining the amouni to be arranged
for meeting the working capital requirement for coming
Particulats
I 2 3 4
Sales 7,50010,50018,00010,500
CashPayments
r ProductionCost 7,00010.000 8,000 8,500
r Selling, Administrative
and Other Costs1,000 2,000 2,900 1,600
r Purchaseof Plant and
other Fixed Assets100 r ,100 2,700 2,100
The debtors at the end of a quarter are one-third of
saies for the quarter and they pay in the next quartgr.
The openingbalanceof debtors s Rs. 3,000 lakhs.Cash
on hand in beginningof the year is Rs. 650 lakhs and
the desiredminimum balance s Rs. 500 lakhs.
Given the above infomation, you are required to
prepafe a Cash Budget for the next Jour quarters and
determine the amount the company has to borrow in
each quarter to meet its working capitalrequirement.
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8. Write short notes on any torr of ihe following :
ii)Cash Flow Forecasting.
(ii) The Baumol's M<tlel - a model to optimize cash
balancesn a firm.
(iii) Role of non-bank finance in meeting workjng capital
requirements J ndian lirms.
(iv) Post Lending Control by banks.
(v) Need for Short Term Integrated Funds Planning Jor
better utilization of a firm's resoutces
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MANAGEMENT PROGRAMME
Term-End Examination
December.2OOS
MS-42 : CAPITAL NVESTMENT ND
FINANCINGDECISIONS
Time . 3 fiours
(il Therearc t'hre€SeaiionsA, B and C in this pdper.
(iil Stidenfs lrho hoDe egist€redJot MS'42 pnor b
Julg 2004 seaestc,( shauld ctttempt any fir)e
questionslrcm Seclions A ond C.
(iii) Students who houe registered or MS-42 lor Julv
2004 semesterdnd oltenuads, should attempt ony
fiue questions ron SectionsB ond C.
(tu) AII quest ions arry equalnotks
(u) Present Volue tables uill be prouided, f asked ar'
MoximumMarks 100
(Weishtase@/o)
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l .
2.
SECTION A
What is Net PresentValue ? Hou.' is it computed ? How is
the NPV rule related to the w€alth maximisalion objective
ol the firms ? Dscuss.
What are the distinguishing featues of Preference shares ?
How has the tax facior limited the poientiality of ihese
shares as a source ol finance as compared to bonds ?
Discuss.
3. What do you und€rstand y Venturi Capital? How doesa
Veniure Capitalist Jinancean enterprise? What oiher
services re renderedbg a venturecapitalist? Explain.
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SECTION B
1. What do you und€rstand by Financial Engin€ering ?
Explain \ix importalr lacror: which are pri'rarily
responsibleor financial nnovations.Give examples.
2. (a) What is Leveraged Buyout ? Discuss its
characteristicsnd the pr€-requisitesor its succ€ss.
(b) Discusshe criteria or determiningexchange aiio of
shdres n caseol mergerol hr,,o ompanies.
3. What do you understandby Euro-CurrencyMatket ?
Describe h€ different ways n whichfinancecanbe raised
in Euro-CurrencyMarket. To what exieni have ha Indian
Corporates app€d his market? Explain.
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sEcTtoN
4. ABC Corporation plans to expahd assets by 50%. To
.finance he expansion,t is choosingbeiweena 12% debt
issue and equity shates. Its Balance Sheei and Income
Statement are shown below :
BalanceSheetas on Dec 31 2004
Liabilrties
Share
Capital
R€tainedEarnings
710k
Debentures
Rs. Assets
1.oo,oo.oooi*nd
eo,oo.ooo"'"n'
40,00,000
Rs.
1 ,20 ,00 ,000
80,00,q00
2,00,00,000 2,00,00,000
Income Stirtement or the year ending Dec. 31, 2004
Saks
Total Operating Cost
EBIT
Interest on Debentures
Profit before Tax
Taxes(50%o)
PAT
No. of shares
EPS (Rs.)
PE Ratio
Market Price Rs: (2.78 x 7.5)
Bs.6,00,00,000
5,40,00,000
60,00,000
4,40;000
55,60,000
27,80,000
27,80,000
10,00,000
2 7 4
7 5
20.85
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lf the Corporation finances the expansion plan of
Rs. 1 crore with debt, the rate of interest on debi will be
12%oand PE is expected to be 5 iimes. fi equtty shares
are issued,premium @ 204/omaybe
chargedand the PEwill remainunchanged.
(i) Assuming hat the EBIT is 10% of sales,calculate
the EPS at ihe sales evelol Rs. 8 crore and Rs. 10
crore underboth the linancingoptions.
(ii) As what level of EBIT. after th€ new capital is
acquired,would the EPS be the same rrespective fthe linaring plan opr€d?
(iii) Using th€ PE ratio, esiimaie he marlet price per
share lor both levels of sales and for both the
linancingplans.
5. As a linancialanalysi,you are requir€d o determine hd
weighted average cost of capital ol a company using(a) book value weights, and (b) market \,"lue weights.
The company's preent book \air€ capital structure is
Debentures Rs. 100 per debenture) Rs. 8 lakh
Pveference hares Rs.100 per share) Rs. 2 lak}l
Equity shares Rs. 10 per 5hare) Rs. 10 lakhAll these securities are iraded in the capiial markeisRecent rlcesare -
Debentures Rs.110perdebenture
Pref.shares Rs.120pershare
Equity hares Rs.22 pershare
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6.
Anticipated external financing opportuniti€s are :
(i ) Rs. 100 per debenture edeemable t par, 10 vear
maturity, 11% coupon rate, 4% llotation costs,sale
pnce Rs. 100. '
(ii) Rs. 100 preference hare ed€emable t par.
10 year maturity, 12% dividend rate, 5% flotation
costs,saleprice Rs. 100.
liii) Equi& shares - Bs. 2 per share flotation cost, sale
pnce Rs 22
In addition, divid€nd expected on the equiiy shares at th€
end of ihe year is Rs. 2 per share, &e anticipated grounh
rate in dividend is 7ol0.The firm has ihe practice of paving
all its earnings in the form ol dividends.
The corporare ax rarp is 35%.
What do you undersiand by Project Appraisal undertak€n
by financing instiiutions ? Explain the proce.lure and norms
Ioll<Ned by th€m whit€ gtanbng lerm loans Whv is
post-sanctionmonitoring n€cessary? Disctlss,
Write notes on :
(a) Scenario Analysis
(b) Suppliers' Credit
(c) Assetsecuritisation
ld) Intem;l Rate ol Relum
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8 .A Co. Ltd. is thinking of installinga computer. Decide
whether he compuier s to be purchased utright(through
1470boffowings)or to be acquiredon leaser€ntal basis.
The company is in th€ 50% tax bracket. Other data
rurcnase ot Computel
Purchaseprice Rs 20,00,000
Annual maintenance to be paid in advance)
Rs. 50,000 per year
Expected€conomlcuselul ile 6 years
D€preciation lor lax purposes)Strajght ine method
Salvage alue Rs. 2,00,000
Paymentof Loan : 6 yearend equal nstalments f
Rs.5,14,277
Leasingof Compi.rterLeas€charges to be paid n advance) Rs.4.50,000
Maintenance xpenseso be borne by lessor
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MANAGEMEM PROGRAMMETerm-End Examination
December,2OOS
MS-43 MANAGEMENT ONTROL
SYSTEMS
Time 3 hours MoximumMorks 100
(Weishtoge0aA
(i) There are three Sectians Sectian A, B ond C.
(ii) Section A is mednt Jor the students ttho hoae
registeredor MS-43 beforeJonuary 2005 i.e. upto
July 2004 semester
(iii) Section B is meonr t'or the students who haue
registered Ior MS 43 lrcm January 2005 sernester
onuords.
(iD) Attempt ong three questions Jrcm Section A
or B. Each queslian in Se.tion A ond B caftrc|
20 morks.
lu) Section C is compulsory lor ol l and caffies
40 morks.
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r. (al
2. la)
(b)
(b)
SECTION A
Distinguish bet'reen(il
ManagementControll
(ii) OperationalControl; and (iii) StrategicPlanning
and Control.
What changesmay have to be effected n order to
make a responsibility eentre meet the needs of the
decentralizedorganlzation ?
What are profit centres and why are they
established ?
Explain ihe concept of ROT as a measure of
perlormance of investmentc€ntres and discuss ts
merits and demerits-
3. (a) Distinguish behreen Fixed and Flexible budgeting.Under what conditions would the latter be more
advisable ?
(b) What broad considemtions would 9ou keep in mind
in evolving he designand systemol reporting or an
investmenicentre? Explain.
4. (a) Discuss the performance ol a host country subsidiary
as an economicentity in the conlext of Management
Contlol in multinational operat:ons.
(b) What factors is th€ MCS in a prolessional irm
supposed o monitor ? Explaineach oI these actors
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5. Explainany trrree of the following
(a) Control in Non'profit organizations
{b) Measuringand controllingperformance n an MBO
Iramework
(c) Negotiatedpriceas a method or transferpricing
(d) Controllabiliiyof expenses
(e) Inlormal management ontrol
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SECTION B
l. Explain in detail how has the Total Knowledge
Manag€ment TKM) influenced he managementcontrol
systems f modern organisations.
2 .
5 .
3.
4-
Criiicallyexamine he conceptof responsibilityentresand
explain ihe basis for delegation of auihority and
responsibility.
Explain the necessiiy o havea clear,unambigrlousand well
definedpurpose or performancem€asurement.
Explain n detail he vanous isk facedby the bank. How
can the management control systemscontain thes€ risks ?
Di'cuss.
Discuss in detail the framework of management contro!
sgstem in development organisations.
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SECTION C
6. Read he followingcasecarelullyand answer he questions
given al the end :
GRAND JEAN COMPAT.IY
The Grand Jean Company was lounded jn the
mid-19th century. The firm survived ean y€ars and the
1929 depression argelg as the result of the market
durabilib of its dominant product - blue denim jeans.Grand Jean had been a market leader with
"wash-and-wear", bell,boitom and flare jeans, and
modem casualpants.By 1989 it was one of the world's
largestclothing manufaci$ers. t oflereda wide variety ol
dress and fashion eans for both men and boys and a
complete ine of pants or women. It enjoveda reputaiionlor reasonablypriced, qualitypants. The company sold
40 million paircol pants lastyeaf.
Production
In each of the last 30 years,CrandJeansold virtually
all its production and oflen had to begin io ration itspants to buyers as early as four months prior to the close
ol the production Vear. The company ouned 25
manufacturifgplants.Tte plants'capacityv,aried, ut the
a!€rag€ ouiput was about 20,000 pajrs ol pants per
week. Wjth ib€ axceptjoh of two oi three plants thar
usually produced oniy blue-denim jeans, the plantsproducedvafous types oJ pants. The firm augmented ts
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own productioncapacityby contractingwlth independent
manufactur€rs.Currenily h€r€ were 20 such contractors
making all lines o{ Grand Jean's pants (includingbluedenlm ieans). lnst year contractors produced one third of
the total pants sold by Grand Jean.
Tom Wicks,vice president or produciion operations
(seeorganizationchad in Exhibit 1), commentedon the
firm's use oI olrisidecontractors"Th€
majority olthese
contractors have been with us for five years or more
Severalof them have servedGrand J€an efficientlyand
reliably lor over 30 years. In our €agernesso get the
pants made, we understandably link with some
independents who don't know what ihey are doing and
are forced to go oul of business alter a year or so
becausetheir costs are too high. Usualty \te can tell from
an independent'sexperi€nceand per unit contract pric€
wheth€r or not he's going io survive.
' ''Contractagreements re mad€ by me and mv staff
The c€iling or maximum price we are willing to pay for
each rype ol pants is very well establishedby now lt a
contractor mpresses s as beingboth teliableand capable
of mahng qualiiy pants, we will pay him $at c€iling. ll
\,re aren't sure, \te misht bid a little below that cei{ins lor
the lirst year or t/.ro, until the contractor ptoves himsetl "
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Due to intensedomesticand loreigncompetitlon, he
iailure rate in ihe garmeni jndustry was quite high.Hence, new enkepren€urs ften stepped n and assumed
control of exisiing acilities.
The Control System
Mr. Wicks continued | "We treat our 25 plants as
expense centres. Operations at each plant have been
examined thoroughly by industrialand cost engineets.
You know. time-and-motionstudiesand all. I'm quite
proud of the standard imes and costsw€ have in place.
We have even developedearningcurves hat tell us how
long it will takg productionof a given type of pants to
reach the standardhours allowed p€r pair alter initialstart-up or a product switchover. We know the raie at
which total production ime per pair reach€s tandard or
every basic style of pants we mak€. We use thjs
information for budgetinga plant's cost. The marketing
staff estimates he quantiiyol pantsof each ype it wants
produced each year. That information is used to dividetotal productionamong the plants. l possible,we like to
put one plant to work for a whole year on one type ol
pants.That saves iart-upand changeover osts.Sincewe
can sell all we make, we iry io keep our planis at peak
efficiency. Unfortunately, the marketing folk always
manage o complicateproductionschedules ith a lot of
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midyear changes in pani needs, so this objective is
difficultto me€t.
"The plant budgeiingbeginswith me and my staff
determiningwhat a plant's quota (in pairs of pants) for
each month shouldbe lor one year ahead of time. We
look at the plant's past performanaeand add a little to
this becausewe expect people io improve around here.
Th€se yearly budgets are updated at the end oi eachmonth in light of the previousmonih's production ll a
plant manager beats this budget figure, w€ leel he has
done a good job. If he cannotmeei the quota' his people
hav€ not been working at what th€ engineers eel is a
very reasonableevel ol speedand efticiencv Or possibly
absenteeismor worker tumover, big
droblems
in our
planis, have been excessively igh. When the quota has
not be€n ieached,we want to know why and want the
problem corrected as quickly as we can.
"Civen the number of panis that a plant actually
produces n a month, we can deteYminehe number of
standard labour hours allowed lor that month We
compare this figure against the actual labour hours to
determinehow a plant managerperformedas an expense
centre. I phone every plant manager each month io give
prompt feedback on eiiher satisfactory or unsatisfaciory
nerlormdnce.
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"We also look lor other things in evaluatinga plant
manager.Have his community elationsbe€n good ? Arehis employeeshappy ? The owners of this companyare
very conc€rnedaboul these ac-ors
An annualbonus constitutedhe core of GrandJean's
reward system. Mr. Wicks and his two chief assistants
rat€d each plant manager's performanceoh a 1to 5scale,where 5 was ihe highesirate. At yearend, Grand
Jean's top managemeni determjned a borrus oase oy
evaluating he firm's overall performance and profirs
for the Vear. The bonus base had been as high as
Rs. 10,000. The pedormance ating for each memberof
Grand Jean's managementcadre was multipliedby ihis
bonus base to determinea given manager'sbonus. For
example,a managerwiih a 3 point rating would receive
a Rs. 30,000 bonus.
Grand J€an's managemeni group included many
linance and marketing sr€cialists. The casewtjte{ noted
that these personnel, who were located at corporate
headquarters, ere consistently wardedhigher ratingsby
their supewisors than wer€ plant managers. This
diflerenceconsistently pproacheda full point
The live marketing departmenis isted in E\hibit 1
under the vice president of marketing are treated asrevenuecentres.Marketing orecasts re used o s€t sales
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unit and sales rupee iargets The performance of
marketing department managers is measuted on the basis
of meeting these targets To meet changing consurner
demand, requentchangesn productmix were necessary'
The sales force sellsall types of ieans within an assigned
territory. Their compensation onsists ol salary plus
8 percent sales commissions Commissions represent
roughlyhalf the average alesperson'sompensationThe
customersar€ retail storesand clothing dist buiors' For
marketing departmentp€rformanceassesgment!he sales
of each line of pants are assign€d o ihe r€spective
marketing department(ie, basic jeans, etc)' Marketing
department managers participated in the companys
Evaluation oI the System
Mia Packard, a recent businessschool gradllate' gave
the casewriter her opinion regarding Grand Jean's
production operaiions and its management control
procedures "Mr. Wicks is one of the nicest execurves
I ve ever met, and a very inteuigentbusinessmanBut I
reallgdon't approveof th€ sgstemhe uses o evalualehis
plant managers.On a recent plant visji as part of my
company orientation program. I accidentallydiscovered
that the plant managerwas'hoarding'some of ihe pants
produced over quoia He does this in good months to
protect himself againsi future production delicienciesThat plant managerwas really ups€t hat I stumbl€donto
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his pant siorehouse.He insisted hat other manageEdid
the same hing and beggedme not to tell Mr. Wicks. This
is odd behaviour or a company hat usuallyhas to tulnaway orders near the end of the year ! I suspect hat
most plant managersar€n't reallypushingfor maximurn
production. If they do increaseoutput, their quotas are
gojng to go up, and yet they won't receiveany immediate
monetaryrewards o compensate or the increase n their
responsibilitiesor requirements. If I were a plantmanager, wouldn want my productionexceeding uota .
until the end of the year.
''Also,Mt. Wick worked his way up the ranks of the
company.He was a very good plani managerhimselfand
feels hat everyoneshould un a plant the way he did. For
example, n Mr. Wjck's plani there were 11 workers for
every supervisor or member of the office and
administrative taff. Since then, Mr. Wicks has elevaied
this supel sion ratio of 11 | 1 to some sort of sacred
index of leadership fficiency.Al l plani managersaim lor
it, and, as a result, usually understaff their offices-
Becauseof this, we can't get timely and accuEte reports
from planis. There simply aren't enough people in the
offices out there to generate the information we
desperately eed when we need it I
"Another thing ! Some of the plantshave been bui lt
within the last five years and have much newer
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equipment. Yet ihere is no difference beh"een the
standardhours determined n these plantsand the older
ones.The oldersewingmachines reakdown more often'requiremore maintenanae, nd probablyar€n't as easy o
Exhibit I
Grand Jean Compony Organizotion chorl
Qaestions :
(a) How would you describehe goal(s) I ihe company
as a whole ? ls this, or are these. he same as the
goal(s)of the company's markeiing organization'
and the company's25 managersof marufacturing
plants? Explain.
(b) Evaluate the current management planning and
control system or the manufacturing lantsand the
marketingdepartments.What are the sirengthsand
weaknesses
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(c) One plani manager recommended that plants b€
operated as profit centres because t would overcome
some of the problems discovered by Mia Packard
and the cas€!'r'riter This plant manager commentecl
that his "competitor was the nearby independent
manufacturer that makes the same pants lor Grand
Jean as mg plant makes. And this outsider might
also make pants for Gmnd Jean's competitors.
Because of ihe compeiitive market, only the besi
managedplants survive n this business.Therefore,
like the outside company'smanager I should have
bottom line responsibihty and be rewarded
accordingly." Do you agree or disagreewith the
prolit centre concept for Grand Jean's 25
manufacturing plants ? How would this approach
aflect the plant managers'decisions,performance,
tr.,ts-a: 1 3 3.000
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MANAGEMENT PROGBAMME
Term-End Examination
December,20O5
MS-44 : SECURITY NALYSTS NDPORTFOLIO ANAGEMENT
Time : 3 hours Moxinum Marks : 100
(Weishtase 70o/a)
Note . Attembt ony Iiue questions.
equol marks. Prcsent ualue
prouided iJ osk€dtor.
AII questions carrg
tables dre to be
l. 'lnvestrnentis well designed and carefully planned
speculation." Comment. Critically examine the recent
hends in ihe Indian capiial market.
2. (al What rs l i r l rng ? Why do companiesger Lheir
shares listed on ihe stock exchange ? Explain the
pre-requisitesor the listing of shar€s n India.
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(b) Vamsi is considedng ihe purchase of a bond
currently sellingai Rs. 878 50. The bond has Jour
years to maturity, face value ol Rs. 1,000 and B%
coupon rate. The next annual interestpayment is
due after one year frcm today. The rcqvircd rate
oJ retutn is 10%0.
(t
(i,
Calculat€ the irttnsic r€lue of the bond. Sbould
Vamsi buy the bond ?
Cajculate ibe ield to )raiurjt ol the bond.
3.
4 .
Explain in detail the role played by the Securities and
Exchange Board of India in the secu ti€s market as a
regulator as well as d€veloper of the capital market.
Briefly explajn Technical Analysis and Fundamental
Analysis. What are th€ basic premises of T€chnical
Analysis ? How is ii dilferent from FLrndamentalAnalysis ?
5. {a) How is ihe Arbitrage Pricing Theory {APT)
consistent with the Capiial Asset Pricing Model
(CAPM) ?
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6.
ib) Ganga and Yamuna are tbe tlvo Jrutual fitnds.
Ganga has a sample mean of sr-rccess f 0 14,
Lthereas Yamuna has.a sampJernean of success of0 16. Yamuna has the beia at 2 0. The b€ta ol
Ganga js one-half oJ the beia of Yamuna. The
standarddeviationsof Yamuna and Ganga are 13%
and 170.6 espectiv€ly. he mean return tor markei
index is 010, while ihe riskJree rate oI return is
6Vo.
(i) Compute the Jensen's ndo{ lor €ach of the
fl,nds.Whal doe. ,l iid,caLe
(ii) Compute the Treynor's index lor the funds and
interryet tl.€ results.Compnre the results of
Treynols and Jensen indices.
(iii) Compute the Shaqres index lor the funds and
the market.
Explain he concepi of MuilralFunds.Describehe various
tlpes of schemes introdLrced bV Mutual Funds in lndia.
Under what circumstances,can the registration of a mutual
tund b€ ierminat€d ?
Write short not€s on any to r of the following ,
la) Principleof Domlnanc€
(b) SeparationTheorem
{c) ResidualAnalysis
{d) Factor Sensitivity
ie) Aggressive iock and Delensive tock
{fl Dow theory
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MANAGEMENT PROGRAMME
Term-End Examination
December, 2005
MS4s : INTERNATIONALINANCIAL
MANAGEMENT
Time : 3 hours MoximumMarks 100
(Weightose70o/o)
Note. Attempt any IiDe questions. Al l questions cotry
equal 'r'arks.
r. (a)
(b)
2. lal
{b)
In what respect have the changes in ihe global
financial markeis made the task of a finance
manager more complex ?
"Comparative cost iheory is an extension ol
comparati\,€ aduantage h€ory." Comment.
What is systematic nsk ? Can it be hedged by
intemationaldiversificatjon Explain.
Distinguish behreen euro bond issue and foreign
bond issue.
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3. (a) "Centralisedcash management s a double-edged
weapon for international working capital
management."Discusswith the help.ol exampres.
Distinguish bet'r./een erms of payment and rypes or
credir.
What are the importantelementsof a currencynsK
sharingagreemenr?
Briefly discuss he principal elements of an exposur€
management in{ormation system suitable for a
Mumbai based Indian exporter.
(b)
4. (a)
(b)
5- {a) Spot and foroard exchange rates are based on
interest rate parig th€orem. Discuss with suitatte
6. (a)
examples.
Distinguish behreen accounting and economic
exposure,
Sometimes it is said that the intemational financial
system is an extension of domestic financial systems.
Do you agree ? Explain giving reasons.
D€scrib€ the innouations in the intemaiional capital
marl,€ts.
(b)
(b)
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7. Discussn briefany tour of ih€ followingr
(a) Strategies lor portfolio investment
(b) Documentary credit and exchange controlrestrictions
(c) Lendingprogrammes l EXIM Bank
ld) Internal echniquesor exposuremanagement
{e) PPP Theonj
(f) India's BOP - Past Trends
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MANAGEMENi PBOGBAMMETerm.End Examination
December,2O05
MS46 : MANAGEMENT
SERVtCES
Time : 3 ho:.r's
OF FINANCIAL
MoximumMarks 100
There are three SectionsA, B ond C.
Section A is compulsory lor all the students.
SectionB is meant onlg or the students,Dho hove
resisteredJor M5.46 prior to July, 2005 i.e. upto
January, 2005 semester
SectionC is neant onlgJor the students egistered
Jor M5.46 Jron Jult, 2005 semesteronu)ards.
A,l guestionscarry equol marks.
SECTION A
Attempt ony three questions.
l. Explain in bri€f the various components of the Financial
Srtt€ft in lndia. Discuss the €conomic and finanoal
frrnctionsof th€ FinaDcialma/ket.
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3.
4 ,
What are ihe different strategi€r which could be adopted by
the financialsewices irms o manage heir Credit rGksand
Asset-Liability Gap risks ?
Elucidate the larious stages at which venture capital funds
provide finance to the venture capital undertakings and
given details of iha risks lnvoi\,€d and ihe activitjes financed
unde( each of these stages of {inancing.
ExpLain the concept o{ Muiual Flmds and disiingLrjsh
b€$'een di{Jerent t,pes of Mutual Fund producis of}ered in
lndia.
Whar is r,reanr by Assel Secunrisalion D?scribe rhe
mechanism of securitjsation and the benefits accruing to
various parties involved therein.
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6.
SECTIONB
Attempr s6y t, ,o qu?i t ions.
Explain the conceDts of Mergers and Acquisitions.
Highlight the steps thai are involved in the process of
mergerand the motjvesb€hindmergersand acqujsitions.
What is the significance f housing inanc€? Explain the
vanous institutions hat ar€ providinghousingfinance n
India.
Write short notes on any tour :
(a) Hlre Purchase
(b) Plicrngof Public s:ues
(c) DrscounL nd FindnceHouseol lndia
{d) Floafing Raie bonds
{e) National Stock Maiket System
{t Operating Lease
8 .
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SECTION C
Aitempt onl turo questions.
6. Emphaszerhe role o( $e NahoDalHodsing Bank as the
apex bank in the fietd of housing {inance. cive detajls of
lhe directions s{ed by il lor hous)lg inancecompdnies.
7. Who are an lnsuranceAsent and lnsuranceB,oker' ,
Whdr dre the caiegoriesol rnsurdnc€brokpr. ? D-cus'
ih€ir functions.
E. Write shori notegon anytour r
. (a) Dematerialisation
(b) PublicLiabilitynsurance
(c) Travelnsurance
(d) Hire P\nchaseE,stem
le) Bill Market Scheme or Exporters
(t Electronlc ommerce
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MANAGEMENT PBOGRAMME
(Banking and Finance)
Term-End Examination
December, 20O5
MS-422; BANK
Time : 3 houis
Note I Attempt ony fiue questions. Al l questions carry
equol morks.
'Financial
Financial
of Balance
FINANCIALMANAGEMENT
MaximumMarks 100
1. (a) Discuss the objectives and scope oI
Management'n a Bank.
lb) Di,lerenl)ale betueen'Common sire
Statement Analysjs' and'Trend Analysis'
Sheetsof Bank.
2.
3 .
Discuss he different sources rom which Banks can bo/row
lunds v,'ithin lndia.
Discuss the importanc€ of 'Cost of Funds' for a Bank.
Explain the various tates that have an impact on the cost
of tunds of a Bank.
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4, Discusshesalienteafures f :
(a) CommercialPapers,and
(b) Inter-BankParticipaiionCertificates
Describe the role played by Bank in th€ foreign exchange
market. Briefly discuss the different tlpes of'For€ign
Exchange Raie Syst€ms'. Also explain th€ factors that
affect th€ foreign orchange mies.
What is 'risk managem€nt'? What are its objectiv€s?
Brieny explain the different categofies of risks thai are
relevant to Bank.
Exptain the sigoificanceo{ measudng and managtng'6edit
risk in Bank. Also discuss he basic approaches to credit
rlsk measurementt individualoan intrinsicevel.
Why are more and more Bank going for mergers hese
days ? Briefly explain the core principles for hrlue
restructuring oi weak Banks as suggested by the Verma
Group.
6.
6 .
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|is4zal
MANAGEMENT PROGRAMME(Banking and Finance)
Term-End Examination
December, 2OO5
MS-423: MARKETINGOF FINANCIALSERVICES
Time : 3 hours Mdximum Ma*s : 100
(Weishtose 70o/a)
Note : This poper consists ol two Sections A ond B.Attempt dny ,hree questions from Section A.
Section B is compursory. AII questions corry
equal marks.
SECTION A
l. How do consumer erception, earningand habit aftect he
setection of financial products and services ? What
implications should marketers of banking services draw
from the knowl€dge of these variables)
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z.
3.
4-
How can the concept of Eoduct lifecycle b€ used for th€
marketing of banking products ? Using an example from
the banking s€ctor, explain the strat€gies lor groq.th thatyoLrwould like to use n various.stagesf the pLC.
Describean9 hro ol the new.financialnstrum€nis sed or
projeci financing, explaining the main features ol the
instrlrments. Bri€l]y comment on the advantages of the
insiruments describedby you.
Discuss he investor prclile for muiual funds in India.
Describe h€ em€rging opportunities or mutuat fLrnds n
ih€ country and the marketing strategies used by them.
Write short notes on any three ol the lollowing :
(a) Marketingof Pension unds
(b) Limirariors n narketing ol insurance erurces
lc) lnternei bankng
(d) Consiiiu€nts of mutual funds
(e) Ethical issues n merchant banking services
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SECTION B
6. Read he casegiv€nbelow and answer he questions iven
at the end of ihe case
Total Assurabce Ltd.
Raman Raghavan, the recently appointed area
manager of Total AssuranceLtd., was discussing he
matter ol area office psfemD... with his assistant,
Ganesh Moorthy. The company hail come into being
after the liberalizationot the lite insurancesector. The
companyhad r€cejved echnicalexpertise fom one ol the
l€ading nsurancecompaniesof Europe.
The compeiition wjth the esiablishedplayer Lile
Insurance Corporation (LiC) of India and oth€r new
entrants had made the task ol marketing djfficult.
Presently,Total Assurancewas not a very big player. In
the iong run, the companyne€ded o grow and achieve
d cnr'cal rhassol busrnp< n order Lo becomeand rpmdin
profjtable. The lack of substantial rov"th in ihe Indian
economydampenedby lraq crisisand power cuts had put
a lid on the grounh in the business.Raman was ne\r ln
the present ob and he was asked o provide an ov€rall
assessment J the businessprosp€cts n his area. The
General Manager felt that the agent productivityof the
area office was not up to the mark and this area needed
strength€ning.
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Mr. Ganesh Moorlhy, Assisiant Area Manager.
remarked that the previous Area Manager, Mr.
Shankaran,had nev€rcarriedout the formal performance
appraisal. Mr. Shankaran elt that he was constanily n
touch with his sales force and therefore knew their
strergths and \reaknesses iDtimatelt. Consequently, the
formal appraisal would serve no purpose.
The company ielied almosl totally on 1ts agent sales
force for its salesperformance.Unlike compani€s uch as
LIC whose agents wor\ed part time, the company
believed that its agents should can! out their sales
prornol ion ork on ful l ime basisAccordingly.ls agenr-
received a substantial commission on the premium
income of the first year (average 70yo o{ the aseni's
income), a small relainer (20o/o), nd bonus for renewal of
annual insurancepolicieg such as health and personal
accident nsurance,eic. (10%). The commissionon the
premium income offered by ihe company at I4Vo ol 6'e
first year's premium was one oI ihe highestamongst he
life insurance companies. Overall, the itvetag€ total
income ol its agents was on par with the industry
aveIage. Th€ premiums charged by the company were
slightly higher by 5% compared to the industry av€rage.
This enabled the company to pay the additional
commissions o its agents,
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The following organizational structure existed in the area
oflice of ihe compdny.
rinaice& Adninrsirati€Aaounis Manag€r
Training Senior AgBntsD.pt Agents
Trainee Agents
The Selection of Agents and Sal€spersons
In the past, the company had advertised for the position
oI the agents.The ovewhelming r€sponsehad made the
job of selectionnearly impossible.Therefore, after theinitiai recruitment, the company relied fiainly on tbe
word-of'mouth recommendationsof ihe existing agents tor
futther reduilmeDt lor both expansjor and replacement.
The company application form. in addit'on to the details
of name. address, age, heighi, w€ight, mariial status,
education, and previous emplolment details, demanded io
know aboui previous insurance selling experience, Fesent
€mplotment, curr€nt eamings,personalprop€rty d€tails,
amount of lil€ insurance, membership d€tails o{
clubs/associations, nd names and addressesof ihree
r€ferees. The candidate also had to state the reasons for
joining an insurdnce company and, in parlicular, Total
Assurance Ltd., and the reasonswhy the candidate thinkshe will be successful.
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Curr€nt Employment Statistlc
The present gents' gewise isiribuiion asas folloLvs
The mean age ol the ar€a ollice agentswas 27 y€ars.The
marital status of the agents is as show below :
Similarly, ihe stalisiics regardingthe peiod ol employnrent
with the company were as follows
Below I year 46va
1 to 2 yeats 28ak
Over 2 years 23a/o
[The company b€gan opeEtions only thr€e years ago.]
Ag€Group Total No. of Agents
18 to 20 5
21 to 25 26
26 30
36 1036 40 8
40+ 5
Toial 88
Marital Siatus Total
Single 55 63
Married 33 37
Toial 88 100
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Eighty per cent of th€ as€ntshad changed he job ai
least once in the last three years (whether with thecompany ot not), and 57%o ad changed heir job more
The majority (707o) of the agentshad completed
12 standardSSC, 18yoof the ag€ntshad studjedb€yond
this l€vel with 12qoof the agentshavingan educationof
10th standardor equivalent. hey all couldspeak he local
languageand English.
Th€ S uafion at present
There was overwhelming ressureor the company o
growat a substantialate to achi€v€ he breakevenpoint.
The longer it took to achieve he br€akeven oint, hard€r
would be the long-t€rm struggle. Dudng the iniiial
meeting with the GeneralManager before aking up the
presentassignrnent,he GeneralManagerhad meniioned
the performanceof the sales orce as an area of conc€rn.
It was felt that a clear and objective measure of a
salesperson performance ,vasessential.The company
also needed o establish nd publicizehe achievements f
high eff'ciencyagentsand reward hem to motivate oiher
employees.Objectivity n the performancemeasurem€nt
vis a vis industrybenchmarkingwas aisoconsideredo be
an option. The area ot job changesand loss ol irained
agents o other upcomingcompanieswas also considered
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to be an area of graveconcern.The time for putting the
house in order had arnv€d.
Questions :
(a) Are there ang slreciat !,ersonalit! characteristics
essentialor sellingof insurance
(b) Wbat, in your opinion, are th€ main impedim€nis o
the good performanc€ f th€ agents?
(c) Are there any motivational drawbacks amongst the
preseniagents?
{d) What criteria should be used for performance
evaluation?
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MANAGEMENT PROGRAMME.(Banking and Finance)
Term-End Examination
December,2OO5
MS-424 INTERNATIONALANKINGMANAGEMENT
Time 3 hours Maxinum Marks , 100
Note t Attempt on9 tioe qrcstions. AIt questionscaft9
equol marks.
l .
2.
"lntemational Banks are linked iogether in various lomal
and informal ways." Dscuss this stat€ment highlighting the
different organisational forms of International Banking.
Discusshe need for'r€gulation' in IntemationalBanLjng.
Brielly explain the differeni forms oI regulation that may Lre
€stablished n lntemational Banking.
Wbat is a'Euro
issue'? Briefly explain the common clauses
that feature in a Euro issue.
3.
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6 .
5 .
4. Briefly eiplain the haditional activities in which corporate
treasuries are involved. What changing responsibilities is
the heasury functlon gaining with the changing times ?
Discrlss.
Explain differ€ni categories of financial and non-linancial
risks thai the bank are exposed to in Int€mational
Bankng.
Briefly explain the ongin of'Globalisation'. AIso analysethe cons€quencesol globalisation on the lndian economy
What do you mean by 'financialoption contracts' ? Briefly
explain their characteristics,benefits and disadkntages.
Write shof noteson any torr of the following
(a) Capital and Risk in a banL
(b) CAMELS Model
(c) Big Mullah Theory
(d) Exchange Earner's Foreign Cwrency Account
(e) Forex Treasury Structure
(0 Smari Card
a.
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MANAGEMENT PROGRAMME
{Banking and Finance)
Term-End Examination
December,20O5
MS-425 ELECTRONICANKINGAND lTIN BANKS
Time : 3 hours Maximun Marks : 100
(Weightage 70o/a)
Note : Attempt anyfiDe
questions.Alt questions corry
equol morks.
l, (a) Discusshe applicationof VSAT networksystemsor
Banking.
(b) Explain h€ modelsof on ine bill presentmentnd
payment gstems.
2. (a) Explain the interactjvedecisionmal.jng process of
DSS.
(b) Discuss the archiiechre of an integraied Banling
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3. (a)
(b)
4. (a)
(b)
5. (a)
(b)
Explain he security ssues l an ATM transaction.
What is mobile banking? Explain ts status n India.
What types of technotogies are required for mobilebanking ?
Disiinguish among hosf-based computing,
neiwork based computing and cljenvseNer
computlng,
What isVirtual
banking? What are its limitations?
"Data warehousing is a business intelligence
solution." Dlscuss.
What afe virtual privaie neiworks ? What is the roLe
of virtual private nett orks in the linancial sector ?
6 . (a) Discuss the pros and cons of various biometric
securirydevices.
(b) Explain the ttandards lor businesscontinuity/disa^ster
Deline computer crime. Briefly discussdiffer€nt categories
ol computer crimes, How can we prevent computer crimein modem banl.ing? Dscuss.
Discuss the importance of Customer Relationshjp
Management (CRM) in banks. Briefly explain the gieps
involved in successlulmp!€mentation of a CRM solution in
an organisation,
a.
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MS-51 OPEFATIONSESEABGH
Time 3 hours MaximumMarks 100
lwetshtase 709/0)
MANAGEMENT PROGRA.OIME
Term-End Examination
December,2OO5
li) Section A has Jiue questions corrging 20 morks
eoch. Attempt ony three.
fi , Secfion B is cotnpulsory dnd carnes 40 morks.
(iii) Graph paper uill be supplied on demond.
SECTION A
1. Discussthe historical backgrolqd ot Operations Research.
Explain Ts ignrlicancend s.ope in lvlodemMun"g"m"n,
Enumerate the limitations of O.R. 20
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2. Using he graphicalm€thod, ind the maximum alue of
z = 7 x t + 7 0 x 2
subject o the constraints
x l + x 2 < 3 0 0 0 0
x2 < 12000
xr > 6000
x t z x 2
x 1 ' x 2 > 0 2 0
3. A companymanulactures product rom its two planlsP1
and Pz with a capaci& o{ 200 units and 100 unib per
month. lt supples he product o lour shopsat Sl, Sz, 53,
and 54 havinga demandof 75, 100, 100 ard 30 r$its
respectivelyper month. The profit per unlt dilfers with
shopsasgi\€n below n Rs.
Plan the productionprogrammeor ma{imlsingprofit.
4- Goodwi ManufacturingCompany s cunently purcliasing
9000 units of a product for lts annual usage. lt ispresentlgordering on€ month usageai a time. Each unit
costsRs. 20. The orderingcostper order is Rs. 15 aod
carrying cosi is 15% per annum. Find the optjmaipurchasingpolicy for the company.How much does the
companysavep€t y€ar?
MS,51
20
v1
' l 90 90 100 110
?2 50 70 130 85
20
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o)
Discussvarious stepsof Goal programmingmodel
tormulation.How doesGP help in d€cisionmaking?
Cive the chdracterisricsf Inregerprogramm'ng.
Explain he cuttingplanemeihod.
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SECTTON B ,
6. ln a bank where there is a single server, ihe affiva-l rate of
customers is 5 per hourand seffia€
tateis I
perhour,Assuming the conditions for the single channel queuing
model, find out 20
(a) The probabrlilyhat ihe serve) s idle
(b) The probability hat ihere ar? at least o customefs
in ihe system.
(c) Fxp€cted ime that a customerspends n queue.
7. (a) Find the saddle poiot in the folLowing case and also
the game ealue.
B
1 4 2 )
t to l - 2 - 3 1l t[-4 -5]
ib) Discuss Simulatioo and its applicaiion in decision
makins. Explain Monte Carlo simulation glving
examples.
1 0
10
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MANAGEMENTPROGRAMMETerm-End Examination
December,2O05
l-l4s-5rl
MANAGEMENT
MoximumMorks 100
(Weightage70W
MS-52 : PROJECT
Time r 3 hours
(i)
(ii)
Atternptany three questionsromSection , eochcarrying20 r.'orks.
S€cttonB is compulxory ond corries40 marks.
l .
2.
SECTION A
Discuss the imporiance of Project Managemeni. Explain
Proiect Lile Cade giving examples.
"Technical Analysis is a dislinct actlvity in Prqect
Development Analysis." Explain. How are me
Envitonmental conc€rns affecting Prcject f€asibiliiy
sfudies ? 20
3. What are ihe objectives of Project Management
lnlormafion System ? Sugg€si an ifitegmted Proieci
Managemeni Inlom)afion System for a large organisation. 20
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4 . "Projecr Implementation needs a strong teamwork.'
Explain. DiscussEmpoqrerment nd Feed-fonr,"tdproject
contlol givlnga(amples.
(a) Suggest a suilable organisation structure lor a
buildingconshuctionproject.
(b) What are the vanous computer applications in
Project Appraisal? 6ive examples.
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SECTION B
"The surcess of a project entirely depends on Detailbd
Project Report. ' Do you agree ? Give dilferent aspects that
are covered in Detailed Project Report.
The table below gives data about a project. Indirect cost is
Rs. 500,/- per day.
(l) Draw the nen ork and identib the critical path.
(ii) Find out normal project duration and associaied cost.
{iii) Crash the activities and find out optimal project
completion time and cost.
Activity
Normal Crash
Time(days)
Cost(Rs.)
Time(dayt
Cost(Rs.)
3 3000 2 4000
2 - 3 3 300 3 300
2 - 4 7 4200 5 5800
2 - 5 9 7200 7 8100
3 - 5 5 2500 4 3000
4 - 5 0 0 0 05 - 6 6 3200 4 4100
4 4000 3 4700
6 - 8 7800 10 9000
7 8 1 0 10000 9 12000
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Time : 3 hours
MANAGEMENT PROGRAMMETerm-End Examination
December,20O5
MS-53 : PRODUCTION/OPERATIONS
MANAGEMENT
Moxinum Morks 100
Note t Section A has liue questions corrying 20 morks
each. Attempt any three questions lrom
Section A. Section B is compulsory and carries
40 narks.
SECTION A
f. (a) "You don't inspect qualiv into a produci, you have
to build it in." Discuss the implicationsof this
$aiement.
ib) E{plain brjefjy the major differences bet'.r,,een
aggregateplanning in manufacturing nd aggreggte
planning n sewic€s. 10+10-20
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2 . . (a )
3. (a)
(b)
Discussways to use JIT to improve an9 qne of the
following :
(i) a ho\pital
(ii) an auto dealership
(iii) a sofhr,"re dev€lopment unii
A small firm intends to increase the capacity ol a
bottleneckoperationby addinga n€w machine.Two
alternalives A and B have been identified, and th€
associated costs and revenues have been estimaied.
Annual fixed costswould be Rs. 40,000 for A, and
Rs. 30,000 for B; variablecostsper unit would be
Rs. 10 for A and Rs. 12lorB; ard revenue erunrr
would be Rs. 15 for A and Rs. 16 for B.
(i) Detemine the break-even point in uniis for
each alternative,
(it Ai what volum€ of output would the hto
altemativesyield the same profit ?
(iii) If expected annual demand is 12,000 uniis,
which aliemative would yield a higher profit ?
10+10=20
Operation personnel usuallyhave a large volume and
Eriety of resources t their command they should
endeavour to make etfective and efticient use of
these resources to achieve the largest oueurs.
Con)ment. Whai are ihe approaches or enhancing
the utilisationof resources
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.
(b) The processimes and due dates or five jobsA, B,
C, D and E are givenin the table below i
Job (Days) Due date(Daysrom now)
B
c
D
E
9
"1
5
1 1
6
20
25
40
The jobs may be sequencedaccording to any of the
following rul€s :
(j ) ShortestProcessing ime (SPT)
(ii) Earliest Due Date (EDD)For the above sei of jobs, compute the following
characteristjcs for sequencing by boih the priority
rules {sequencingrules) :
(iJ Total compleiion tjme
Iri) Avoage flow time
(jii) Average number of jobs in the system
(iv). Avemge ob lateness 1O+1O=2O
4. {a) Dscuss the djlfercnce behreen certraljsed and
decentralisedmaintenance staff. What are the reasons
Ior decentralisingthe maintenance function ?
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5.(a)
(b)
(b)
An activity has a seleci time of 4 00 minutes per
cycle and a calculatednormal time of 4 64 minutes
per cycle- Allowances are 10 pefcent.
(i ) What was the performanc€ ahng actor ol the
worker studied ?
(ii) What is ihe standard time of the actMty ?
10+10=20
What lactorswillyou
consider or locatingany o1he
followinaI
(t a thermal power plant
(ii) a call centre
(iii) a placementagency
(iv)a milk
processing lant
Assume thai your slock of sales merchandise s
mainiained based on the forecasi demand lf the
distributor'ssalespersonnelcall on the firsi day 01
each month, computeyour forecastsalesby eachol
the three methods requestedhere.
Actual
July
Aug!st
140
180
170
(i) Usrng a simp{e thre€-month mo.,ing average.
what js the forecast for September ?
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(iit
Using a weighted moving average, whai is the
forecast for September with weights of 0 20'
0 30 and 0-50 for June, July andAugusi,
resP€ctivelY?
Using single €xponential $moothing and
assuming that the Iorecast for June bad been
130, Iorecast sales for SepiemL€r with a
smoolhjngconstantalphaof 0 30. 10+10=20
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SECTION B
6. (a) Comment on the statement : "A comprany makes
bicycle yresj thus, for benchmarking,t should ookat other companiesmakingbicacl€ 9res.
(b) Item X is a standard iem stocked n a company's.
inventory of compon€nt parts. Each yea(, the firm,
on a random basis, uses about 2000 oi them X,
which cosrs Rs. 25 each. Slorag€ ,osts, wnich
include insurance andcosr of capital. amount toRs. 5 per unit of averag€ nventory.Every time an
order is placed for additional tems of X it costs
Rs. 10.
(i) Whenever it€m X is ordered, whai should the
oder sizebe ?
(ii) What is ihe annual cost for ordering it€m X ?
(iii) What is the annual cost for storing item X ?
10+10=20
5x4-20, Write shortnoteson anyJiue of the following
{a) Job Enrichm€nt
(b) Iso 9000
(c) Pareto Diagrams
(d) ExtemalCustomers
(e) Robotics
(0 StratumForrnulation
(s) Wastivity
(h) Th€ lGnban System
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MANAGEMENT PROGRAMME
Term-End Examination
December,2OO5
MS-54 :MANAGEMENTNFORMATIONSYSTEMS
Time : 3 hours Moximuh Mqrks : 100
(Weishtase 70Vo)
Note 1 Attempt onV ah?ee questions frch Section A.
Eochquestion
cofiies 20 morks. Section B iscomXnlsory ond corries 40 morks.
SECTION A
l, {a) Discuss information requirements for decisionmaking,gMng examples.
(b) "Manageoent Information Systemsplay a vttal rolein organisational uccess. Explain.
2. {a) What is a sgstem? Give various classifications fsystems.Explaln he proc€ssof SysiemsAnalysis.
(b) Discuss,ariousstagesof th€ sysiemdevelopmentif€
cyde. Give the leatDres l system fip)enentabor|
1 0
10
1 0
1 0
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3. (a)
(b)
4. (a)
(b)
Discussdifferent types of el€ctronic signals and their
applications. What is a Muhiplexer ?
Fxplain t-ocal Area Neh^,ork. Gi\,e difie{ent types ofswitchingand their uses.
Discuss Query languages. Gving an examPle,
suggesthe useof SELECTcommand.
Explain how computershave chanqed ihe Indian
work culiure.Give one example.
1 0
1 0
1 0
1 0
5. Write noteson anytoi.r :
(a) Expert Systems
{b) Computer irus
(c) Legal aspeclsand Computers
(d) RelationalData BaseManagement yst€rns
(e) DalaCommunications
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SECTION B
6, Read the caseshrdygiven below and answer the questions
given at the end of the case.
A iransport compang, having 120 vehicles provides
prjvate car iaxi, carriers and buses on hir€ basis. The
major activiiiesof the company nclude
(i) Monitoringof vehicles ngaged,
(ii) Booking of vehicles or tr ips,
(iii) D€ciding he route of vehicles,
(ivl Reimbursemenro drivers.
(v) Tesling dnd maintenanceof vehiclesbe{ore each
mp,
(vi) Billing of cli€nts,
(vii) Analysis of damag€s caused, and
(viii) Analysis of driver's performance, though this is ihe
most neglectedtask.
The owner ol the company has recently ied up with
a manufacturlng company to provide trucks for dispatch
oI goods.The client companyhas a very strictmonitoring
systemot dispatch.Any delay n reaching he destination
will imply a penaltyat the rate oI Rs. 300 per day. Also,'
the transportercan enjoy a rewardof Rs. 300 if its truck
reachesbelore time. A hsi of all possibledestinations f
th€ client-product has been given to the transporter along
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with the target transfer durations.Now the owner has to
carefullyplan oui his informationsystem.He has enough
money to spend on MIS analysisand itnplementationofthe proposedsolution,but doesnot know how to manage
his time for mahng new sb-aiegies.
Questions ;
(a) Ideniily the informationrequirements f the owner
of the transport ompany.
(b) How can you help him rn managing is iime for
rnakingnew strategies
{c) Design a suiiable vehicle booking information
slrstem-
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MANAGEMENT PROGRAMMETerm-End Exahination
December,2OO5
Ms-55 : LOGISTICS ND SUPPLYCHAINMANAGEMENT
Time : 3 hours Moimum Marks 700
(i ) Section A hos six quesrions eoch corrging
20 marks' Attempt ony fout questions.
Section B is compulsory, and corries20 morks.
SECTION A
l. Whai ar€ the primary responsibilitiesof the logistics and
markeiing groups within an organization ? Why is there a
conflict bet een the tl',o ? What measurescan be taken toenhancecooperation?
2. Whai are th€ reasons or ',ariabilig n the supply chain ?
What is the Bullwhip eflect ? Explain the various
approacheso reduce his effect n SCM.
lii)
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3. Give major inpuis of MRP. Id€ntify the sourcesmrougn
which these npuisare obtained.Giveyour answer or boih
Make o'Stock (Make to Forecast) and Make-to'Order
siluation.
What s CuctorerProl i rabrl i rynalysis WnVhas rqar-€d
importanc€ in recent iimes ? Is ii eihical to d€ny a
custom€r hat is not profitable?
5. Explain the procedLrre f transport and carrier selection.Why is it carried out .and what are its major
characteristics
6. With more medical information availableonline than a
humdn mind can a,isrmilate, ow will l|e roie of docrors
change n deliveryhealthcare ervices ln other words,can
we conclude that with information freely available on ihe
lnlerner, he demald ior consulanrswill reduce?
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SECTION B
7. Read h€ followingcaseand answ€r he questions ivenat
Supply Cbain Successes - Dell Computers
Dell is a pf€mier provid€r of products and services
required for customers worldwide to build their
informaiiontechnology and internet infrastructures.
Company revenue or one year is in billionsof dollars.
Dell, through its direct business model, designs,
manulacturesand customizesproducts and services o
customer requirements, nd offers an extensivesejection
of sofiwar€ and peripherals.Michael Dell stafted D€ll in
1984 v.,ith$1,000. He startedwiih an €xcepiional dea
in the computerndusiry ; SELL COMPUTERSYSTEMS
DIRECTLY TO CUSTOMERS hrough mail order. Dell
transfigured he PC market through iis ass€mble-to-order
strategy.The caich was that while rivalswere stockinga
large inventory,Dell carriedonly a smalj one. While th€
rivals. were paying to distributors and retailers, Dell
uncler-pricedts computerby aboui 10% as compared othem. In order to support their DIRECT SALES
APPROACH and aggressive inventory management
strategy, Dell has pui together a sophisticatedsupply
chain net'work. The advantageso{ Dell's dir€ct sal€s
model have been forceful since ihe late 1980s, and
indisputabl€ ince he growlh of the Web. The uniqueness
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about Dell op€rations is that th€ customer orders moved
through the w;b i.e. cusiomer could configure cost,
con{'rgure specifications and order lrom the web. li us€sJusi-in-Timemanufacturing.e. componentsand parts are
scheduled to arrive at a time when they are actually
n€eded(as soon as order is finalized). t has located ts
componentswarehouses t n€arby locationsso that the
parts are obtained in no time and are the latesi in
configuration.The testing ol computers s done through
a collaborahvenehrrork hus reducing the iime need€d.
Ddl uses nternet to create a communltyalong fs supply
chain. Dell was successlul ecauset createdan IT based
manufacturing system along the eniire supply chain As
part of the company's continual elforts to improve its
supply chain processes, Dell recently deployed i2@
TradeMatrixfl supply chain tools to ptovide global views
of forecasted product demand and mat€rials requir€ments,
as well as improved factory scheduling and inventory'
management. Wi$ the new supply chain iools, Dell
suppliers and Supply Logistic Centers (SLCS), have a
globalview of short and long'term materials equirements
in each Dell factory. One of ihe primary goals {or th€ i2
implementation was optimizing delivery and inventoly us€
in Dell factories. Dell is known lot its leadershipand
innovation in supply chain management and the i2
soLrtion s driving even greaterefficiency.
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Queslions :
(a) You might remember the site buildurpc.com by
Samsung, which also used Direct-salesmodel forassemblingomputers. This initiative ailed.What do
you think are the reasons lor its failure ? Comment
on why Dell succeeded-
lb) What are the primary goalsof Dell lor using T along
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MANAGEMENT PROGRAMME
Term-End Examination
December.2OO5
MS-56 : MATERIALSMANAGEMENT
Time: 3 hours Maximum Marks : 100(Weishtsge70o/a)
Note : There ore ejght questions
any f iuequest ions. Al l
in this poper. Attempt
quest ionscarry equal
1. It the responsibility or maintainingthe quality of theproduct and incurring less cost on its production is ihe
responsibility of the "produciion/operation" and deciding
the plice of ihe product and finding the customers that will
buy it comesunder "marketing",what do€s he'materials
managemeni function" do ?
2. What is the need for International Purchase ? Discussthe
procedwe and problems n lnteynational urchase.
3. Differentiaiebehreen ndependent nd depend€ntdemand
inventory. D€pendent demand inv€ntory items do not need
to be forecast. Why not ? ExDlain with the help of
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4 . "lf you reduce WIP then you expose many organizational
bottlenecks-"Commenl on this staiement.Also, staie the
reasons for your agr€ement/disagreement.
Wbat are the objectivesof codification, standardizationand
simplilication ? How does standardizaUon€ad to variely
reduction ? Discuss the advantages and disadvantagesof
siandardization.
Explain how a performance appraisal system can be
used in the context of matends management. Whal are
the metrics of perlormance appmisal in materials
managem€nt ?
Wnte shon noLes n any tour ol the following :
(a) lntegratedMat€rialsManagement
(b) Problemsand risks n vendor neMorking
(c) ManufacturingResources lanning MRPIl)
(d) Use of OR techniquesn MaterialsManagement
(e) Lo"'es due to shrinkage>,/pilferages
(0 Theory ol the"rper-o.gunization
6.
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List the maior advantages and shortcomings of FIFO,
LIFO, and Average meihods oI stores eyaluation. Under
what conditions are the three inventori€s flow methods
€ssentiallyequivalent?
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MANAGEMENT PROGRAMME
Term-End Examination
December,2005
MS.57 : MAINTENANCEMANAGEMENT
Tme : 3 hours Moxinum Morks : 10ONote : Thjs question poper containsseuen questions.Al l
questions corry equol marks. Attempt ony fiuequestrons,
l. What do you mean by maintenanceplanning ? What
consid€rations are important in planning to avoidhindrancesn scheduling What are the basicprinciplesof
maintenance lanning?
2. What are the important componentsot a maintenance
organization? What are the goals and objectivesof a
majntenaDceorganization ? Name tbe key jssuesaffecting
the maintenance rganization truciure.
3. Discusshe role of mainienance €chniquesor safetyand
environmental improvem€nts. How could the
commLmicationbehreen maintenance and other funciions
be enhanced ? What types of training techniquesare
availableor preparingmaint€nance
ersonnel o€nhancesaf€ty and environmental performance ?
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4- Explajn the significanceoi a three parameter Weibull
model. Explain how the Weibullmodel is used or faillrre
diagnosisby briefly discussing he relationship bet een theshape payameterI and ihe undedying cause{s)ol recurrent
failure.
"Plant shutdowns lor equipment overhauls need to be
adequately lanned."Why ? What will happen l this s not
don€ ? What are the various teps n planningmainienance
shutdowns
Explain he basisof identifyingand analyzinga problem,
while making use of wear debris monitoring technique.
Nam€ some of the instrumentsus€d for wear d€bris
monitoring.
Wrire shon noieson any our al Lhe ollowing .
la) Benefitsof plann€dmaintenance
lb) Benefitsof IT EnabledMaintenanc€
(c) Reliability
(d) Log normal Distribution
5 .
6.
(e) Misconcepiions about
MaintenanceRCM)
Reliability Centercd
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MANAGEMENT PROGRAMME
Term-End Examination
December,2OO5
MS-58: MANAGEMENTOF R&D ANDINNOVATION
Time 3 hours MaximumMorks 100
(Weishtoee0Vd
Note ' Attehpt olt questions.Al l questionscarry equol
l. Comm€nt on the dual roles that R&D performs in an
organizatioh. Explain with examples based on your
experience,/study.
OR
What is the interactionbetu,eenscience, echnologyand
business? .How do these interactions affect industriat
grodh ? Dscusswiih suitableexampbs.
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2. Why arc m€asurementnd evduation mportant n R&D ?
Why are quantitativemethods nad€quate or measuring
R&D output ?
OR
Dscuss the four dimensions of human resource
management racticeshat foster nno\Dtionand creativity
tor ellective R&D.
3. Discuss he significanc€ol teamwork tn researchand
development-What is the cross'functionalcore t€amconcept? Aiso discusshe l€ssonr hat ca! be learnt from
the US companies n adopting the cross{unctional eam
approach n productdevelopm€nt-
OR
What is your concept of the leaming organlzationand
how is such an organization ifferent roma conventlonalorganization? Why is there so much emphasison this
new concept ? What systemsand mechanisms, o you
think should € put in placeto tum tbe organizationnto
a leamingorganization?
4. In the context of national R&D infrastrucfure and
institutlonal ramework,write noteson the following :
{a) Departm€ntof Space DOS)
(b) IndianCouncil f Asricultural esearchICAR)
(c) Departrneni f ElectronicsDOE)
{d) IndianCouncil f MedicalResearchICMR)
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Discuss he salient eaturesof the incentivesand support
measures provided by ihe following countries forpromoiion of R&D technolog development
(a) Japan
(b) UnitedKingdom
5. Ans.rer the tollowingquestions
(a) D€scribehe fiansfermechanism f iechnology rom
laboratory o industry.
(b) What are the common types of intellectualpropeity ? Explain th€ importance of pat€nis in
R&D management.
OR
What are Palents and Paientabiliiy ? Highlight som€
importantfeaturesof patentsand the procedureor award
of patents.
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MANAGEMENT PROGRAMME
Term-End Examination
December, 2OO5
MS-61 CoNSUMER EHAVIOUR
Time : 3 hours MoximumMorks 100(weishtase 0o/o)
t .
Not€ : This poper consisfs oJ tt\)o Sections A and B.
Attempt any three questions from Section A.
Section B is compulsory. All questions ca 9
equol morks.
SECTION A
What are th€ different approaches to the study of
consurner lifes9les ? How can an AIO Lifestyle study be
applied to the marketing of
(a) Perrumes
(b) Readymade pparel
Explain the concept of consumer involvem€nt and how it
influences con$mler decision process. What are the
strategieshat a marketercan use to increaseconsumer
involv€ment for a low involvemeni product like common
sali or a tooihbrush ?
2.
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3. What are the different !,es ol rclercnce groups ttEtinflu€nceconsumer ecisions Brieflydescnbehe type ofsocjalpower that referencegroupsmay exert on buying
behaviour? What is the tlrp€of reference roup inlluencethat a marketerof a home heatregstem canexpect?
4, (a) What do !,ou understand by post pulcttase
dlssonance, ? How is this concept relevant to
marketers
(b) How would you seek to reduce post purchase
dissonance n case of an €xpensiveproduct likepersonalcomputers?
5. Write short notes on any trrr€e of the following :
(a) Choice heuristics
{b)Leaming and perceptual constructs in Howard
ShethModel
_(c) Freud's theory of personality
(dl lnftuence of the child in family decislon making
(e) Al t i tudemeasuremenr
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SECTION B
6. Read the case study given below and answer the questions
giv€n at the end of the case.Flnancial Services Market Opportunities
Until recenily the female investor market was largely
ignored and was not iargeted as an important market
oppodunity. Consumer analysis of the female investor
market uncovered a variety of dilferences wiih respect io
needs, demographics,if€styles, ncome, and awarenessand knowledge ol investment altematives. Other
differences, uchas media habits,pointedout the fact that
there is tremendous diversity among this group of
investors. A quantitative analysis of this information
uncover€d he existenceof three market segments,each
mique in terms of needs for financial s€rvices.
demographics, consumer lif€style, awar€ness andknowledge of financial services,and media habiis.
Each of these female investor segments represents a
unique market opportunity. To design an effective
marketing straiegy for any or all of th€se segments, it is
first necessaryto understand the unique aspects of each
female investor segment.The Car€er Woman
This segment of th€ female investor mark€t is the smallest
but is growing rapidly. These investors are younger (30 to
40 years old), college educated, and active9 pursuing a
career- Their incom€s are high relati\r€ to incom€s of
other working women and growing as they progress in
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their careers. This group includes single and maniedfemales, but the majority did not have children living intheir households.
While their demographics re unique, €qually mportantdifferences exist in ih€ir needs for financiat services.Women in this segment have higher jncomes and pay
considerableiaxes becausethey ar€ single or, iI manied,have hro sourcesof income. As a result their needs focus
on ways to increase their financial holdings wifhout
incurring additional tax obligations. Also, becausethey donot need curr€nt income, they have a greater need forlong-term capital appreciation rather than current 'nrer€st
or dividend ncome.
The Sinsle Parent
This segment is the second largest in size and also
growing- These lemale investorsare middle aged (35 to45 years old), unmanied, but hav€ children lMng at home.Their single-parent staius could be the result of divorce ordeath of a spouse. Because th€s€ ev€nts tend to happenmore often at middle age, this particular female investor isolten thnrst into managing mon€y withoui much
experience, Cu[€nt income is general]y under prcssure
and money aftairs have to be carefutty budgeted.
For this segment, securiiy is first. With parental
responsibili\' and limited income, they want to make suretheir money will be there in ihe future. As a result, heypreter inveshnents that offer secure groMh. Thisinvestment will be a source of income later in life andlor
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used lor their children's education. In €ither case ih€s€
consumers do not w€nt to risk their fuftlles.
The Old€r lnvestorThis segment is the largesi of the female market for
. financial sewices. These female investorsare older (55 and
up) and iypicaly single. Unlike the "Single Parell1, these
female inv€stors do not have children at home and often
have more discretionary income. Also, many of th€se
investors have considerable knowledge and €xperi€nc€
with th€ many financial altematives that exist.
A need for current income mak€s this segm€nt of female
investors differ€nt from the oth€r two segments. In many
instances, these women support themselvesfrom int€rest
and dividends on their investments, Because investrnents
are often their sole sourceof income, they seek safety and
minimum risk in the investment they hold. Thus, their
ideal investment portfolio woLrld nclude a varie9 of secur€
invesimentshat yield good current ncom€.
While many dilferenc€s exist among the many female
investors, these thr€e female investor segments capture
important diflerences in basic needs, demographics, and
Iifestyle as summarized in Figure A. Based on these
diff€rences, individualized marketing strategies could be
developed for each segment. The degrce to which such
strategies will succeed w'll depend on how well each
strategy saiislied the specific needs of each segment in
terms of bolh product offerings and market
communlcations,
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FIGURE A
Summary of F€male Investor Segm€$tatlon
Queslions :
(a) How well have the needs of the respec.Ne segmen$
been understood in the above study ?
Based on the lifestyle and demogmphics of ihe
abov€ segments, what kind of marketing sirategy
would you sugg€st for the produci design and
promotion Iot an investment and financial services
Which, in your view, is the mosi attractive market
segment out of ihree for the above company and
whv ?
Segmenl Bosic Needs KevDemogrophics
CareerTax
lons termgrowln
Limited
to average
Educated,
working at
25 and 40
Single
Security,
future None olimited
Unmarriedwith
behreen 35and 55
OlderCurrent Limited
toTypically sinsle,55 and older
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MANAGEMENT PROGRAMME
Term-End Examination
December,2OO5
MS.62 : SALESMANAGEMENT
Time 3 hours Maximum Marks: 100
(Weishtase 70o/d
Not€ : This pop€r consisrs ol t'uo Sectiors A dnd B.Attempt dny three questjons Jrcm Section A
Section B is compulsory. Al l questions carrg
equol marks.
SECTION A
1. Djscussihe role and sjgnificanceof pe$onal Selling jn the
MarketingExchangeProcess y taking he exampleof
(i) lnsuranceAg€nt
(ii) M€dicalRepresentative
(iii) IT sofhrare
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2. What are the objeciiv€sof sales displays ? How can these
obj€ctives be met when a compang is launching :
(i) A ne!.r model o{ a car
(ii) New range of high fashionapparel
(iii) lndustrialmachines
Briefly explain he various ypesol sales epods which are
beinggenerated y tlre fieldsalesstaff.Also emphasize n
their utility.
4. (a) Briefly explain ihe steps involved in territory
planning.
(b) How will you plan ter;itory allocations for
(i) Consumable roducts ike solt drinks
(ii) Indusfial machine, where the salespersonnei
do not cary the product and salesare achieved
through sales iterature, eafl€is.etc.
3.
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SECTION B
5. Carefuuy ead the followingcaseand answer he questions
given at the end o{ the case I
Goran Landis s the salesmanager or an established
plastic manufactufer. The sales {orce is oLder,
expenenced, oyal, produdive, and highly resistant to
technology.An earliereflort to get sales €presentatives
to use computers, {axes, and voice mail failed miserably.
The company wants to emphasizeselhng, hold down
salescosts,attract high performingsalespeopie nd weed
oti )ow p€rtormers.Landishas discover€d is sales orc€
is only spending about 20% oI iis ilme in Iac€-tojace
selling beiause the sales repr€sentatives p€nd most ot
their time compleiing paperwork related to the orders,
customers lorgetting appoiniments and having toreschedule, nd following up on deliveries.
Once Landis finish€d evaluating he saLesorce as a
whole, he besan to look at the performanceof individual
salesppople Supriyd Satporhy r. one ol rhe olde' sale'
representatjvesoI the company and has
thelongest
tenure, having started when th€ owner began ihe
company tweniy years ago. She has balanceda career
and raising live children.Given on page 4 is the sales
data on Satpathy's accounts for the last threiu y€ars. For
base line comparisons, he company's averagesare on
the lar right.
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^ r - a ix x = ^ N r +; ; c . ; N
; S R - * c . i d j
9 l o d
8 8d j ' j
R $ - : - 3 g; : l s l S : r : 3
si Ki
8 8
3 S . o 1 ^S : s X E
Ran
.Y 'H
E - i I P- . . e E i 6 I
e E : t 3 e -E J ; E K ?
! r F $ H i i: l P l t c l o 9 O
8 I = = , 0 F s €
: ; : F E Z E E . Fl r i E E b ; ! $ Egl t t a 3 + E -q T E,* l+ l ; ; b 'b
s b 'bt - ) t t t . z b . b . 4 +
"€ €
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Questtons .
(a) Landis s concern€dabout he amount of time sales
representativesspend on paperwork, Given thecircumstances I the problemand ihe nature of the
sales orce, whai wouldbe the b€st solution?
{b) Which oI the following would work best in
motivating Satpathy ?
(c) Satpathy'ssalesdata shows hai she may be getting
her sales gains by sacrificingone of the productlines. Should Satpathy spend too much time with
low profit custom€rs Recommend o her what she
shoulddo for cusiomermanagement.
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MANAGEMENT PROGRAMME
Term-End Examination
December, 2O05
MS-63: PRODUCTMANAGEMENT
Time 3 hours MoximumMorks 100
(weishtase 0Ed
Note : This pqper consists of tw:o SectionsA and B
Attempt dny three quest ians rom Sect ion A
Section B is comp sory' Al l questions 'orrv
equal morks.
SECTION A
l. Briel.y explain the .d.h quadranL pproach to prodr'rcL
poftfolio management.Explainhow you would applv this
approach to manage he productportfolio of an.FMCG
company dealing in personal hygien€ and detergent
2. What dre the key consideraiionsn designing positioning
strategy or a product? Describe he alt€rnative asesoI
positioning hat you can apply or a smallcar for the lndian
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3. As a product manager,you have receivedabout five newproduct id€as n your processedFoodsdivision.Whai are
the processeshai can be used o scr€en hese d€asandseleci h€ bestone ? Which processwouldyou like to use
4. (a) Comment upon the signilicanceof branding lorconsumerproducts n today,scompetitivemarketingenvrronment.
{b) For a new brand of shavingcr€am 10 be introducedby your company,explain he brano name setecrionprocess hat can be followed.
5. (a) What are the
developmeni?
major bottlenecks n new product
ru, wrar rne hetnot approtr iate \dmple..expla,a hereasons or product ajlures.
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SECTION B
6. Read he casegivenbelow and answer he questions iven
ai ihe €nd oJ the case.
.Komal Food Products Comp?rnyLtd.
Komdl j-ood Produ.ts .orn"ny whnh wa, found"d in
1935 to manufaciure roceryand other food producishad
in thp,ourspof yea-.g ow^ r_o d \d.r enlerpn,p a,.rng
offices and branchei in almost all ihe important citiesofIndia.
The company's head office and laciory were situated n
Calcutta. ts productswere distributedhrough five zonal
sales offices which directed25 district salesoffices The
administmtive €sponsibility f each zonal officewas bome
by a managerwhose duty was 10 promote saies n his
?one He wa' advivd and in*truc_ed y he head o'frce
irom time to time.
Urdelhe con orol each ondlmandqprnerewere our
functional heads, viz., personnel manager, accounts
manager. sales manager and office manager. These
executivesadvised and assisied he zonal manag€r on
!,?rious unctions elating o the zonal administraiion. ach
. functional head 6njoyed considerable freedom and
rndpppndpncerlh respecro h' : work
On m6tters relating o sal€s he zonal manager received
advic€ from the sales manager. The latier formulated
polici€s,plannedschedulesor sal€soperaiions,suggested
improvements in district sales administration; andsubmittedhis views on all the mattersconcerning al€s o
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the zonal manager. Ai times he issued.orders and
instructions o the district salesmanager but these were
typically outed through the zonal manager.Ofdinarily hisvie\rs and advice were acc€pted and approved by the
'Thesales manager w?s assisLedr his *ork by rnree
product managers who were consid€red to be experts in
their resp€ctive ields. Their duty was to travel with the
sales supervisorsof the various districis and study and
market or ihe company'sproducts; urvey he comp€iitive
position of the company's productsi study dealer and
consum€r reactions.sales rends, and advise he disirict
sales manager and ihe sales supeMsors regarding the
steps o be taken Ior promotingsales n the distr icts.Every
month each submitteda report on the salesactivitiesof
the company io the sales manager. The relationshipbeiween the product managerand ihe sales manager s
the same as thai beiween the zonal manager and also
Also direcilg responsibleto the zonal manager wer€ five
distnci sales managers each of whom was responsible for
sales in his terrjtory. Each district manager was in turn
assisted y five salAs uperuisors esid€s everal alesmen.
The dutie. and funcrion> f district salesTanagerqwere
t o :
select, rain and supervisehis salessupervisorand
salesmen ollowing ihe policiesand proc€drrresaid
down by the zonalmanager
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(ii) make a study of the nature of consumerdemand.
changing market conditions, exisiing stock and to
lormulatesal€scampaigns, romotionalmeihods
(iii) Iix th€ sales arg€ts to be attain€d n his territory
lrom time to time
liv) formulate ihe credii policies to be followed after
consullation with the zonal manager
(v) developbetter eamworkamong he salessupervisors
. and salesmen
(vi) see that the customerswere satisfied with ih€
company'sservices
(vii) undertakesuch other funciionsand duties as mighi
be assigned o hjm from iime to time by the zonal
manager.
Every monih each district sales manager submitted a
derailed epon on rhp 1alpsdc-j$tre, ol Lhp comndny rn
his district o the zonalmanager.Ordinarily hese r€ports
were passedon to the salesmanager or ihe necessary
action to be taken with respect io each district
On th€ mornjns ol June 6. 1991, the following
conversation ook place over phone betwe€n Mr. Rajan,
the salesmanager at ihe South Zonal Ofii.e and Mr
Shankar.one o( rhe oi-',c1 m"ndgerc n thp zone
Shankar : I wish to bring to your notice an important
matter that needsyour urgentconsideration....Theroducl
managersare interfering oo much with ihe salesactjvities
of my district. I receive frequent complaints from the
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supervisors that they are not able to carry out my
instructionsdue to unnecessarynierference rom ihese
p€ople. lJ this state ol aifairs continues t will be v€ry
difficuli to maintain our sales. Tbe morale of ihe
supervisorswill be seriouslgaffected. I will noi be
responsible f sales drop this iime in our area on this
account. You must take some steps to se€ that th€
relationshipbehteen the line and staff is mainta'nedon
good terms.
Rajan i Mr. Shankar,you neednot worry' I shall call the
product managersand see that they maintainthe proper
relaiionshipwith you....
Next day Mr. Rajan calledall the product managersand.
after discussingouiine matters,he said, .... I was told by
Mr. Shankar hathis sal€s upervisorsre complajninghai
you a.re nterferingwiih thelr activities ..... Defilliielyyou
are all €xpecied o advise hem on ihe steps o be tak€n
for increasing sal€s. But, at th€ same time, please
remember that you have to play only an advisory ol€
Whileadvising hesepeopleyou must aisosee hat the line
ur11.o"1y5 a.pecred..-
The productmanagers id not say anything.
In the subsequentmonths Mt. Rajan did noi receiveany
complaint rom the districtoffice.But in the first week ol
Ociober, while scrutinisinghe salesprogress eport of the
various districis for the previotls quarter, the zonal
manager ound an unusualdecline n sales n the district
which was under the supervision I Mr. Shankar'
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The zonalmanagercalledMr. Shankarand askedhim whythere was so much decline n sales n his ierritorywhile allthe other districtsshowedvery good progress.
Shankar .... during the past three months the producimanagers avenot advised ur men properly. n fact, heydid irot advise he supervisors f the recentchangesandirends in the mafket. They seem to be unwilling tocooperaiewith our salesforce. Whai can I do ? Even
then, we have done our best o mainiainsales....,,
Whpn",ked
abour rnr, bv the zo-a mdnageron" of rheproductmanagers aid,".... We used o giveadvice o thisd:trnr ol fnp a..o a1 ue u.U"l ]ydo wiLh othe, dr\ tncroffices.On a complaini.seems rom Mr. Shankar.we ha.lbeen told by Mr. Rajan that we ,nere exceedingour
authorityand unnecessarilynterferjngwith the activities ithis district.We had been ask€d o restrarnourseNes ..The district manager akesadvicedirectly from the zonalsalesmanager.We havegot nothing o do in this matter
Questions '
(i) How has the conflict siruation berween proouc!manag€rsand salespefsonnelarisen
(ii) What reorganisationof responsibiliiies r producl
managers would you suggest to avolo sucn asituation n future?
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MANAGEMENT PROGBAMME
Term-End Examination
December, 2OO5
MS-6,I : INTERNATIONAL ARKET,NG
Time 3 hours MoximumMorks 100
(Weightage70o/o)
Irot€ j This paper consistsof tuo Sections A and B.
Attempt any three questions Jron Section A.
Section B is compulsory. All questions carryequal morks.
SECTION A
l. (a) "The EPRG framework has implicai ions for the
snategy ormula'ion process. E\pldin with the helpof examples.
(b) Briefly explain the techniques of intemational
marketing research. How do€s the Internet affect
international marketing research ?
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2. "The world is becoming more and more mono cultural.
Today you can get Japanesenoodles n the U.S. and
I4cDon"ld. bursersn India.CulLurdlactor! are simplynotas imponanr as Ihey were earlier. Do you dgree or
disagree Disclrsswith the help of suitable xamples.
3. (a) What is the elfect ol'terms
ol delivery'on the price
to be quoted by an export€f ? Explain giving an
example,
(b) Do you ihink making complexexercisesor product
adapiation or dilferent markeis s worth it ? D'scuss
givingsuitableexamples.
4. Write short noies on any ,hr€e of ihe following I
(a) Bill of Lading
(b) Deemedexports
(c) Intemationalmarketingcontrol
(A) Containerizaiion
(€) Intemationalmarketsegmentation
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SECTION B
5. You are th€ marketing executive n a food processing
company producing fruit juices and frozen vegetables. The
company is exploring ihe possibilities o enter' the
intemational markets. The management has asked you to
preparea prelimrnarypporl covenng
(a) Advantages and challenges or the company in
entering he internationalmarketsi
(b) Different modes of entering intemational markets
and potentjal djlficDlfies jnvolved with each optionr
(c) Physicaldistributionmplications.
Prepare your repod covering the above aspects, for any
speci{icgeosraphiceg'on
(likeMiddle-East).
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MANAGEMENT PROGRAMME. Term-End Examination
December.2OOS
MS-65: MARKETINGOF SERVICES
Time, 3 hours MaximumMarks 100(Weightage70Vd
Note : This poper consistsof three SectionsA, B ond C.
Section A is to be dttempted by students
rcgistercd lor this course t'or Julg 2004/Januarg
2005/July 2005 semesters.Section B is to be
attempted b9 students rcgisteredJor this course
for Jonuory 2004 semester. Section C is to be
attempted bV all the students. Al l questionscorry
equol rnorks.
SECTION A
Attempt anv three questions.
l. (a) What are ihe larious modes of se^rce d€livery in
intemational trade ? Discuss with the help ot
examples.
(b) How is information search behaviour difler€ni in
case of servic€s as compared to goods ? Explain
givingsuitable€xamples.
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3.
2. (a) Why do customers switch service providers ? Can
you do anything as a marketer to prevent the
custoqrers: rom $ritching ?
(b) Briefly explain ihe charact€risticsof a good seruice
guarantee.Formulaiea seNiceguarantee or a fixed
Iandljne elecomserviceprovider.
(a) Discuss the importance of non-nDnetary costs in
pricing decisions or services aking the example of
health services.
(b) ldenti{V and explain the product suppoit seNices
which automobilemanufacturersan offer to remain
competilve/for gainrngcompeiitiveadvantage.
Write short noies on any tiree of the followmg :
(a) Reasons or groMh of the service €ctor
b) Franchising
(c) Measurem€nt f SeMce Quality
{d) Channels of distribution for bank
(e) Classiflcation schemes or services
4.
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6.
SECTION B
Attempt any ahree questions.
What do you understand by internal marketing ? Why*rs
the concept specially relevantto services? How would you,
1fyou werc in the callcentre business,manage the inteanal
marketing for your seNices ?
In case of financial markets, where core benefits ihat most
institutions offer are virtrnlly ideniical and the scope to usepricaas a Comp€titiveool is limited,productdifferentiation
is a daunting chauenge.Do you agree ? Support your
anst,r€r by drawing upon exampjes of product
differ€niiations in fihancial markets from the Indian scene-
7. (a) What changesdo you think havebeen brought about
in the Indian healthcareservicesmark€t with ihe
emergenceoI corporatehospitals?
(bl Whai a'e Ihe lactorsgoverning he demand or thp
tourism product ? Crtticaiiy comment upon these
factors n the context ol India as a tourismproduct.
8. Write short notes on any three of the following
(a) M€aluringcustomerexpectations
(b) Classilication chemes or servicej
(c) Promotional strategiesfor education services
(d) Electricitypricing
(e) Reasons or grourth of the service sector
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sEcTloNc
9. Study the casegiven below and ansvrer he questions given
at the end.
Pr€mter Courier Ltd.
'PremierCouder Ltd. (PCL) is an inno',ative ovemight
delivery company ihat helped change the way companies
do busin€ss. It was the first company to offer an
overnighi delivery system, bui the company mark€ts morethan just a delivery s€rvic€. What PCL r€ally sells is
on-time reliability. The company marLets risk reduction
and provides lhe confidence that people shipp:ng
packages will b€ "Absolutely, positively, certain their
packageswill be there by 10.30 in the moming".
In fact, PCL sells even more than r€liable d€liv€ry. It
designs tracking and inventory management slst€ms for
many large companies. In other words, its customers buy
more than jusf delivery senicei they bu9 a solution to
th€ir distribution problems. For example, a warehouse
designed and operated by PCL is part of the distribution
centre for a very large compuler firm. In oLher
organisations, customers can plac€ an order for inventory
as late as midnight, and tbe marketer, because of PCLS
help, can guaranteedelivery by the next morning. PCL
has positioned itselt as a company wlth a service that
solves its customers' problems,
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Qu€srions '
(a) What is PCL s product? What are the tangibleand
intangible elementsof this serviceproduct?
(b) What are the el€m€nts of service quality for a
delivery sewice like PCL ?
{c) In what way does echnologynflu€ncePCL'Sservjce
quality ?
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MANAGEMENT PROGRAMMETerm-End Examination
December, 2OO5
MS-66 : MARKETINGRESEARCH
Time 3 hours MoxinumMarks 100
(Weishtoge7@/o)
Note : Thts poper consisfs oJ two Sections A ond B.
Attempt any thiee questions rom Section A.
Section B is compulsory.Al l
questionscorryequal marks.
SECTIONA
l. (a) Describehe K-MeansClusterAnalysis echnique.
Gve examples f situationswhere they may be
appliedefticienrly.
(b) Why is cross abulation very commonty ppli€d
data analysismethod in marketing research?
Describehe limitations f this mernoo.
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2. (a) What is ihe method of personification used in
marketing research ? lllustrate thjs method wiih an
exampleand its possibleapplications.
(b) What is longiiudinal esearch esign? Describehow
you can use consumer panels for conducting
longitudinal esearch.
3. (a) Descnbe ny method l adv€rtisingre-tesiesearch.
(b) How are industrial marketing researchesdiflerent
from household roductresearches
4. (a) Descnbe the application of stratified random
sampling in the conduct of any fast moving
consumergoodsr€search.
(b) How shall you calculate the appropriate sample sizes
for each strahm in the above research ?
5. Write short notes on any ,hree of the following :
{a) Observation method of data collection
{b) Data editing
(c) Conelationanalysis
(d) Experjmenialdesigns or research
(e) National ReadershipSurvey
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SECTION B
6. Uttam Drishti Ltd. (UDL) is a company manufacturing and
marketingspectacl€ rames n the national market. t hasdecided to define its target market with the help of
professional marketing research- They have decided to
conduct a field study in the top iwenty five ciiies of the
country.They decid€d o sample0.01% of ihe population
of each city for their pulpose. They Iixed the quota on
equal basis for each PIN zone of tbe respective city.
Following questionnairewas used for collecting data :
Q.1. Do vou wear glasses Yes,4.{o
Q.2. tl f'Yes'
in Q1'l Do you wear :
Sunglasses?
Sight glasses?
Both
Q.3. Do yo! want to buy new glasses
Q.4. Do you know the brand of spectacle frame that you
boughtor intend to buy ?
Q.5- How muci did you pay lor intend to pay) lor the
spectaclerame ? _
Q.6. Your monthly ncome I
Q.7. Your occupation
Q.8. Your education
Q.9. Yourag€
Q.10. Your genderI
Q-11.Yournameandaddress
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Assignment :
(a) Commenton the research esign or this study.
(b) Comment n thequestionnairesed.
(c) Outlinean analysislan or the above uestionnaire
based tudy.
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MANAGEMENT PROGRAIIIIT,IE
Term-End Examination
Decembei, 2OOS
MS-612
Time 3 hours
: RETAILMANAGEMENT
MaximumMorks 100
(Weishtase 04/o)
(i)
(ii)
(iit)
Attenpt ctny hree questionsorn SectionA.
Section B is compulsory.All guesrions orryequalmarks.
SECTION A
1. De{ine retailing.Discuss he scope and prospecisof r€iail
sector in the Indian context, describing the drivers of
grov,thof f€tailing n the country.
2. (a) What are the stages
and their impact on
suitableexamples.
M S $ 1 2
of consumerdecisionmaking
reiail strategies Explain with
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4 .
5 .
(b) What makes ocationaldecisionsn retailingsirategic
in nature ? Discusswith suitable examples the factors
necessarg o considei be{ore selecting a linal site .for
an9 stof€.
3. (a) How important is the role of pricing in retail
marketing mix ? Briefly discuss he various retail
pricingapproach€s vailableo the retailer.
(b) What are loyalty programmes? Whai purpose do
th€yserve n the overall etailbusiness Explain.
Bri€fly discuss h€ various types of non-store retailing
curr€nliy n vogue.Whdrare tl'eir hmitations
Wrire notes on any three of rhe lollowing
(a) Functionsof Retaiiers
(b) Wh€el of Retailing
(c) R€sponsibilitiesolMerchandising anager
(d) cRM
{el EthicalR€sponsibiliti€sf Retailer
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SECTION B
6. Read he casegivenbelowand answer he questions iven
at the end of the base.
Margin Fr€e Market Private Ltd.
Subhiksha in Chennat, Margin ftee in Kerala,
Bombay Bazaar n Mumbai, RPG'SGiant in Hyderabad,
and Big Bazaar in Kolkata, Hyderabad,and Bangalore
have one thing in common - they all pric€ their
products below MRP. Discount stores ar€ stowly aniving
in India and industry nsiders eel they will spearheada
revolution in organized r€tailing. On the list of top
retailersn the world, quit€a f€w are discounters. round
604/ool the businessabroad comes lrom this formai.
lncidentally, the largest retailer in tbe world, WalMart, is
a discountstore.
Margin Fr€e was registered s a co-operative ociety
in 1993 in K€ralaand entered he supernarketbusiness
in 1994. lt is run by the Consumer Protection and
Guidance Soci€ty, a charitable organizaijon based in
Thiruvananthapuram.oday, it has emergedas Indias
numbq one supermarkelchain with 150 stores and a
. turnover of Rs. 450 crores. Margin Free purchases
directly trom manulactur€rs at exjactory price and sells
at lower prices than the MRP, as it eliminaies the
margin accrued in the traditional
manulaciur€rsiockst-\rholesaler-r€tailer etwork.
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Margin Free takes extreme care lvhile pricing th€
products through its entire stores. lt has employed
so{twarewhich evaluatesh€price
by minjmizingprofits.
Every store is computerized and utilises the soft\rare to
detemine tll€ prjcjng. Tlrjs helps jn ensuring that the
productsare raiionallypriced-
Margin Free has found exceptional success n its
scalable ranchisedmodel. It is now looking to upgrade o
a central warchous€ concept. !"hich will help it manage
growth further. The successof Subhikshaand Margin
Free indicate that the discouni war will hot up in the
coming months but it will be the cusiomer who wll
emetge as the final winner.
Margin Free also gets an a\remge credlt ol 20 22
days lrom slppjiers, \r,hich it sells, on an average in 10
days, hereby evenearning a notional ntdresi on its sales
also- lis strategy has made it flush with funds, which can
Iinance further expansion.Margin Free uses ts customer
base as a bargainingpower to strikediscountdeals-Any
dealer lvho wants to set up a Margin Free store has tobu9 at least rupeesone lalJr worih of share of the main
Margin Free holding company. Margin Fr€e has a
consumerbase of 6 lakhs and it seils ihem consumer
cards ar Rs 40 per year Cu>romerswho buy using lhis
card gel discounts on bulk purchases and also on
governmentsubsjdized roducis ike Rs. 2 per kg rice.
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The stor€s ar€ now opiing for a major expansion
drive. A ke9 part of ihis is the introductionof private
labelling, which is the season's flavour in ihe je.tailingindustry.For the purpose they have shortlist€d15 items- al l g€neric abels ike rice, sugar,eic. - and will add to
the list in {uture.
Hence. they will be in a better position to provide
quality stufl at conslderably low prjces within easy reach
of an averagemiddle-classamjly. For example,a packet
ol tea which sells or an MRP of Rs. 120 at one of ihe
corporate retailers,will be availabl€ or Rs. 90 at the
Margin Free stor€s.
The chain is now planning o open huge Margin Fre€
hyper markets,The first such hyper market, f€aturingan
array of wares and spread over 50,000 squarefeoi ol
well aid out space, s planned o open at Emakulam.The
two other hypgr markets would be opened in
Thiruvananthapuram and lGzhikode.
If the successoi retail activjty is measured n thenumber o{ outlets. the existing 240 odd chain ol
franchiseesmust have aheady made Margin Free the
largest'pure retail chain' (as distinct from retailerswho
at€ manufacturers) in the privaie sector Even going by
the number of footfalls, the Kerala-basedeiailer must
have alreadyb€atencompetitionby a handsomemargin.
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The hyper markets will feature almost all conceivable
retailing products under one loof - textiles, leather,
cosmetics, provisions. eiecironic goods, consLnnerdurables, grains; and grocery. As for ambience and class,
they are most likely to resemble the Giant retailing chain
operating out of Hyderabed and other cities
The hyper market would not dabble in impori€d items
- Chinese or otherwise - that are floodjng the retail
market right now. The cooperativesocieq is in the
process of mobilizing resources or the hyper market
initiative. It plans to rope jn outside investments over and
above whai the Consumer Protection and Guidance
Society hopes to raise on its own.
The Society chose Emakulam first because i happens
to be the most commercializedity in the state Also' the
comparable purchasing capacities are higher ihere. The
nomenclature for the hyper market has a Margin Free
prelix to it, seeking to bujld on tbe enormous irust that
the discount chain has been able to build over a span ol
eight yaars oI existence.
The management feels thai the Margin Free retail
chain has br:en able to eam the wholesale trust of
consumers n a very short span. HowPVer. n ils ioumey
to succ€ss,he Margin Free storeshavemade if€ slightly
uncomfortable for entrenched interests who have, on one
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hand, b€en fleecing consum€rs and. on the other,
resorting to indiscriminateunder nvoicing to avoid tax.
The latt€r leadsto loss of croresof rupees n realisable
. revenue or the stategovernment.
Everymonth, Margin Free is openingupto 12 stores
and the number has grown to 241 at last count. The
chain has spread to liierally al l paris of Kerala. It has
seven franchisees n neighbouringTamil Nadu already
and two in Karnataka.The overall urnoverhas grown toRs. 600 crore.
Qu€stions :
(a) What has been the role of p cing strategy n the
success f MarginFree Markets?
(b)What are the salient eaturesof Margin Free Marketpricingstrategy?
(c) Analyse he externaland intemal factors that have
made it possible to sustain the present pricing
strategyof Margin Fre€ Mark€t.
(d) Discusshe limitaiionsof the existingpricingstrategy
of Margin Free Market. Suggest appropriatechanges.
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Time : 3 hours
trs611MANAGEMENT PROGRAMME
Term-End Examination
December,2O05
MS-611 RURALMARKETING
Maximum Morks : 100
(Weightase 70o/o)
Note i lhis pdper consist'sol tuo Sections A dnd B.
Attempt ony three questions hon Section A.
Section B is compulsory. All questions corry
equolmarks.
SECTION A
1. What consiitutesrural markets in India ? Discuss hejmportant dimensionsof the rural market demographicsand their implications for marketersol consumer
dlrrables.
2. What are the major f€atures in ihe problem recognition,
inlormation search and alternative evaluation process that
as a marketer of utility products like cycles,you can €xpect
in case of rural customers?
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3. Whii are the factors that alfect the product adoption
' process? How would these actorsdetermine he rate ot
adoDtion n Lhe ural market orproductsike ,
(a) Easy+o-handleazors..
{b) Battery operatedTV sets
Explaln he importantcommunicationonceptselevant o
the rural maikeis. What is the significanceof usageof
symbolsand pictures,colour andmusic n rural marketingcommunicaiion Discusswith suitableexamples.
write shortnoteson any thfee ol th€ lollowing,
(a) Hierarchyof marketsor rural con$rmets
(b) Role of regulated marktjts or Mandis in ruml
distrlbution
4.
5.
tc) Placeof purchasedeosion n the ruralmatkets
Thomson ural matket index
Impact of lT on the nrral marketingpractic€s
(d)
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SECTION B
6. Read the case study given below and answer ihe questionsgiven at the end of the case :
Village Shops
In a study conducted by ICICI it was found that :
. Only 40 p€r cent of shops in small towns have
electricity, while in feeder villages this figure was
11 per cent.. Shops in rcwns were located on rented premises.
while in interior villages in 88 per cent of the cases
th€ shops were located on o*red pr€mis€s and
lackedeleclricrty
In feeder villages, four fifths of the shops have one
personworkingfull time, while in interiorvjllages70per cent have hro or three persons working on a
parl+imebasis.
Over two-lifths of the retail outlets stocked eight to
nine standard product categories.
It was found that three{ourths of the outlets that
siocked eight to nine product cat€gories kept fourltems or less n each category,while onejourth had
five to six items in each cat€gory.
The total number of items stocked n retail outlets
was about 50 in interior villagesand 115 in I€eder
villages.
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. The siock furnover ratio in the study s the number
of times the stock is sold in a month. This is
obtainedby dividiog the stock level by monthlyoff-iale. The latjo for tojletrjes in jDiefor vjllages
was close io unity, while in the feeder villages
two thirds had a ratio in the range of tuo to three.
The ratio of one indicates that on average interiot
vjllage shops had stocl,s for one monih, whil€ shops
in feeder villages maintained stocks for rwo or mree
months. The value oI the stock turnover ratio intowns had a wider spread and hjgher !,?lues in ihe
range of thre€ or even five, because ot the wide
variety of products stocked.
Questlone :
{a) Critically e\,aluatethe above rural retail scenario for
. the marketer of consumer products.
(b) What impiications does ihe above scenario have for
th€ long term distribution system d€sign oI a
multiproduct necessity goods company wantiDg to
make a loray into the rural markets ?
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MANAGEMENT,PROGRAMME
Term-End Examination
December, 2OO5
MS-68: MANAGEMENTOF MARKETINGCOMMUNICATION ND ADVERTISING
Time 3 hours MaxirnumMorks 100
(Weishtase70o/o)
Noae :
(i)Attempt any thtee questionsro,, SectjonA
(ii) Section B is computsory.
/t t i l Al l quesonscorrg gualmorks.
SECTION A
l. Briefly discuss he M.W. Delozier model of the marketing
communication processand discuss t's relevancefor
{il New product launcb
(ii) Social campaign lik€ safe drinking water or gende(
equal'ty
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2. (a) Discuss th€ areas in. which r€search s useful in
developingdn elfpcnveadveni\ingcampdign.
(b) Discussany of the two m€thods used to conduct
advertising f ectivenesses€arch.
3. (a) Differentiate betrreen iraditional and Int€met
advertising,n terms ol iheir relativeadvantageg nd
disadvantages.
(b) Which one oui of the two, traditionaland Interneiadveftising, will you choose for developing the
adveftisingcampaign for the following producis ?
Give ustificationor your answer.
(i) Airlines Tickets
(ii) InternetBanking
(iii) Toilet Soaps
4. Diflerentiate and discuss the significance of each of the
following n advenrsrng ediapldnning
(t Reachand Effective each
[ii) Frequency and Elfective frequency
(iii) Cilcularionand Coverage
liv) Mewershipand R€adership
(vj Seasonal Pulse and E atie Pulse
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,t. '
SECTION B
5. Caretullg read the given case and ansrter the questions
givenat the end oI ihe case
Sir RichardBtanson'sVirgin Ailantic has launcheda
Frequeni Ryer schene [or pets. The airline's animai
customers re increasing. n 2003'04, it carrjed687 pets
bui thjs year pei business almost doubled to 1250
animals. Dependingon size. it costs around f, 400 per
pet to travel in the hold ior a round trip to New York
The animals are reportedly better treated than humans on
most budget camers. Virgin offers an array of corporate
goodies.Dogs get an exclusiveVirgin doggy T'shirt and
sparlding doggy tag. Cats are given a toy mous€ called
Red and fertets receive a limited edition o{ flying Jackets
Under the frequeni flyer scheme, animals will r€ceive a
''passpori" which recordsone paw .1int Wr flight. AJter
five flights lhe peb get even better gifls, such as
hand'madebow) or non-sljp mat. They can ev€n donate
1000 mjles to their owner, but of course they cannot
r€deem he points lor flying solo.The p€tswhoseo\tners
travel premium classwould get free pedicure, their fur will
be blow'dtied and receive clothesJrom GLrcci,Bufberry
and Prada.
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. ! a !
Questions :
(al Who a(e tbe Target Audiences for sucn a sares
promotioa and !'.,hat mplicii or explicit benefits do€sit offer ?
(b) Do you think that such a scheme will give sales
volumes o Virgin AUantlc?
(c) If you have o handle his task, what communication
strat€gy would you recommend to Sir Richard
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MANAGEMENT PROGRAMME
Term-End Examination
December,2005
MS-91 : Old ; STRATEGIC ANAGEMENTRevised ADVANCEDSTRATEGIC
MANAGEMENT
Time : 3 hours Maximum Morks : 100
(Weightage70%)
Note : There ore two SectionsA ond B. Section A hds
frl)o sets.Se, I is meont lor the students who hove
registeredJor MS-91 : StrategicMonogementprior
to July 2005 i.e. upto Jdnuary 2005. Set is
meant for the students who houe rcgistercd lorM3-91 : Aduanced Stratesic Monosement lron
July 2005 onwards.Attempt any three questionsJron Section A. All questions carrp 20 morks
eoch. SectionB is compulsory Jor all, and corries
40 morks.
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SECTION A
set I (Old)
STRATEGIC MANAGEMENT
1. Briefly describeChandler'sand Porter's perspeciiveson
strategg and structure- Illustrate your answer with
2.
'The
operative part of leadershipcapability ies in theabilibj to handle peopl€ in a manner that they give their
best lor a caus€, organizationand th€ task in hand.
Comment on the statem€nt with respect to handling
colleagues nd handlingbosses.
3. Why is it important to iniegrate R&D into corporate
strategy ? Brielly discuss he factors which should be takeninto consideraiion if the inno'"?iion process is to be
managed successfully.Explain giving examples.
4. Briefly explain the following I
(a) The Corporate Rating Apploach
(b) The ConstituencyGroup AttitddesAudit
(c) Partial Social Audit/Aspect Audit
5. Discuss the \,arious modes of iechnology transfet. Explain
the evaluation f technologywith respect o the customels
and the blryer's points of view.
20
20
20
20
20
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SET tI (Revised)
ADVANCED STMTEGTC MANAGEMEM
l. (al "Good gowmance is epitomizea by prcdictab)e,
open and enlightened olicy making, a bureaucracy
imbuedwith professional thos acting n furiheranc€
ol the public good, the rule of law, transparent
processes nd a strong civil societypaficipating in
public affairs. Elaboraie the siatement in ihe
contexi of corporat€governance.
(b) Brieflg describehe role of board of directors. 20
2- Discuss ihe difJerent approaches to modes of entering a
for€ign market.
What are the differeni sources of knowledge ? Explaindifteent types of lnowledge and Lhe factors which
consiitute the knowledge'creation proc€ss.
Des$ibe in brief, the key developments in tranaparency
and reporting wiih respect to social audit.
Wrire shon noreson any ,rrr€e ol rhe tollowing
(a) Corporat€SocialResponsibility
(b) StYategicPhilanthropy
(c) IT in seMce setlor
(d) Strategicchoice
(€) Narayana Murthy Commitiee on CorporateGovernance
20
3.
4-
20
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SECTION B
6. Read the following case and answer the questions thatfol low: 40
MYSORE FOODS LMITED
Mysore Foods Limited produces and disirjbutes
packaged ood productssuch as cereals,biscuits,spices,
jams and jellies,syrups,etc. The company has a national
market and algo €xports smaLlquantities to oeighboudng
countries. It conducts a large national advefising
campalgn. i has 75 p)ants ocated all ovet the country
and markets 70 dilfercnt products,each under its own
irade mark. Though its productsare all tood products,
they are not otherwise closelv related. They vary lrom
long margin specialiiieswith comparaiively mall volume
to large-volume items wiih smal profit margins. Dittereni
raw materials and other articles are used in their
processingand packing.Al l productsare, however,sold
Lhrouqh he -ame chdnnel . .e. . rerai l dnd provl ' ion
stores. Gross sales are Rs- 25 crore and iotal ass€ts
exceedRs. 12 qore.
The management ol Mysore Foods Limited is
centralised.The Chairman of the Board, the Pr€sident
and foui Vice-Pr€sidents ho are responsible or saleg,
production, purchasiqg arld taw make up the topmogt
e\ecutive level of the company and operate as a
committ€e on all generalpolicy matters.
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Sales, advettisingand salespromoiion come und€r
the SalesVice-President. li plant operaiionsas w€ll asthe researchand engineeringdepartmentrepo( to the
Production Vice'President. Purchasing is the responsibility
of its Vice-Presidentwho also governs tratfic. Public
relations, law and corporate functions Jall under the
General Couns€l. Financial responsjbilitiesare handed b'i
the Presidentand employee elationsare coveredby eachVice-President in his own area oI responsibility.
The company was set up by combiningseveral ood
products organisations nd it bas acquir€dothers since.
One of the theories of the organiserswas that there
would be great advantage n whol€saledistribution f one
salesman ould cover an entir€ ine on one cal l as against
a number of salesmen, ach callinsto sell a sjngle ine.
Saving in time alone would be of great value to the
distributor. This principle has teen retained and has
proved successful as the company has grown One sales
organisation handles all the products. Each product is
given specific ime and attentionby the salesorganisation
in accordancewith its demands.
. The head of the fieldsalesorganisationeports o the
Vice-President.The Adverlising Manager and the Sales
Promotion Manager take caye of advertisingand sales
promotion for ihe entiYe in€ 6ut each product has its
own advertisingcampaign and appropriation The Sales
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Promotion Manager is in'charge of the missionarg
sal€smanwho contacts etailers-
To avoid neglector error, singleproduct or a group
of products ar€ assigned o on€ of the 20 Product
Managers. Each Produci Manager is responsible lor
seeing that his product receiv€sdue aitention lrom the
sal€s organlsation, he production department, and the
advedisingand promoiion depariments.He specialis€snthe pricins and salesappeal questions of his product. He
reports, however, to the Sales Vice Presideni,who has
th€ ov€rall control. The Sales Vice-President can cu*ail
any eIfoIls of the Product Managers t he is using his
sales orc€ for specialefforts on some a'therproduct or
products. There is no institutional advertising. AIIadvertising s coordinat€dand placedby the Advertising
Manager while the linal authority rests wiih Sales
Vice-President.
Each plant is operat€dby a superintendentwho is
in-chalge oJ wages, maintenance, cost, output, qualiiy,
h'ring, inspection and other normal plant operation
responsibilities. sup€rintendents report to eight Regional
Produciion Managers who are r€sponsible to the
ProductionVice-President. he volume of produciion in
eacb plant is scheduled y the productjoncontroi group
repo{ting o the OperatingVicePresident.Final schedules
are set after consultinghe SalesVice-Presroenr.
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The business as more than doubled n the last ten
yearsand profits,both grossand net, have ncreased. he
number of plantshas also more ihan doubled.Purchases
have increased proportionateLv. New taxes aod new
reporis io ihe governmenthaveadded o the complexity.
The management feels that certain problems are
poientiallydangerousand should be solved befofe th€y
There have been periods n which a product has got
into difficulty becauseof loss of favour wjth the public,
bad managementor even neglect.Atiention of the Sales
Vice'Pres:dent o the problems of some products has
causedhim, at times, to lail to recognisedifficulties nother productseven hough the ProductManagerof such
producis had recognis€d hem and brousht them to his
attention. The burdenon the presentofficers s becoming
too heaw to ensure proper attention to al l theit
responsibilities.Employineni ol assistantserodes the
personal touch of the top group that is n€c€ssary or
q,..,c(f, I m:n:^.-.nr
Opportunities for increasing produci-lines and
€xpandlng he busin€ss re being lost becauseof lack of
executives' time to siudy them or to manage new
products. n any business here specialiiies re soldunder
irade marks and brands are the major business of a
company, it is necessary or the company to continually
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bring out n€w products and io study old ones io
determine the point of no retum regarding promoiion
and advertisingexpenses.
Once the iop executives roup has approved he idea
al a new product, jt is pul under one ol the
Vice Presldents.He developsan o€anisation and brings
ii along. Ai first, the advertising ppropnation or a new
product is noi the responsibility of the SalesVice-Pr€sid€nt bui oI ihe Developing Vice President.
Eventually, f the product proves io b€ successlul t is
iurn€d over to the regular ine oI organisation.With new
products and grow'ih in the old ones, the weight,
complexiig and number of decisions that have to be taken
by the v€ry few men at the top, mean a heavierburdenfor them.
The management eels that in addition to ih€ lost
opportuniiies, market poieniial and th€ need for
developmeni of present products are not being fully
recognised. The businessmay have grown ioo big for the
form of management.Executivesequiremor€ responsible
att€ntion for each product. At the same time they wish
to retain the advaniag€s oI central management in
purchasing, ra{fic, institutional eputation and minimum
sales approach and to maintain the high-calibreadvice
and experience now present in law, advertising,
accouniiDg and publjc relatjons-
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Qrestions I
(i ) How far is the existjng organisationalstructureeffective n the changed onditionsof the company?
(ii) Indicate (a) How the d€siredproduct responsibiliiy
can be achieved , (b)Any changesn line authority,
and (c)The use, if any, of sta{f. unctionalauthoritg
or committees.
{iii) What policy and organisational tructurechangesdoYou recommend,and why ?
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Time 3 hours
MANAGEMENT PROGRAMMETerm-End Examination
December,2OO5
MS-92 : MANAGEMENTOF PUBLIC
ENTERPRISES
MoximumMorks 700
There are two SectionsA ond B.
Section A has tLUosets. Set I is meant lor the
students who hooe registered or MS-92 prtor to
July, 2004 i.e. upto Jonuary, 2004.
Set ll is meont lor the students who hoDe
registercd or MS 92 frcm July, 2004 onwards.
Attempt ony thrce questions rom Section A. AIl
questionscorty 20 'r'orkseoch.
Sectton B is compulsory for all ond co ies
40 norks.
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l .
SECTION A
Set I
(Pre-ret ised)'PEs
are said to play a major role in our economy.' Discuss
in cont€xi of employment, contribution to Net Domestic
Produci and grou,th in investment.
Explain the reasons for PEsgoing inio disfavour the world
over since he b€ginningof 1980s.
3. (a) 'Financialcontrols nclude ntemal audit, brdgeting
and financial reporting systems.'.Elaborate the
statement.
(b) Criticallyanalyze he relevance f marketing n PEs..
Discuss the objectives of transformation. Highlight ihe
problems in managing transformation in public sector.
Explain the concept ol MOU and the MOU system
pre\railing in India. Discuss the various steps involved in
implementation of MOU system in PEs.
20
20
2.
1 A
1 0
4.
20
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l .
Set II
(Revised)
Briefly commeni on the coniribution of PEs in the growthand development of Indian econorny. Discuss the Mixed
Economy Model lollowed for economic grou;th.
Dscuss fhe lssues of corporate ga\)emance in Pub)jc
Enteprises.
3, Comment on the common ctEracterisiicsof sociallg
r€sponsible firms ahd the importanca of social
responsibility in the present context. 20
4 . DiscLrsshe role and performance ol iransport s€ctor in thepresent day context.
'Privatisation encompassesa broad spectrum of possibilities
between denaiionalizaiion at one end and, market
discipline at th€ other-' Analyze the statement with resp€ct
to different dimensions ol privatization.
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SECTION B
6. Read the following case and answer the qu€stions ihat
tollow. 40
ARRIVING TO LAND ANYWHERE
As the taxi screechedo a halt, Mr' D'Souza for the
umpteenth ime, cursed he Monday morning fiaffic and
his inabili& to do anlthing about it Mr' D'Souza was ih€
Marketing Director of Indian Aviation Company ancl was
on his way to attend one ofhis severalprelunch stmtegic
meetings. This meeting had a special importance as ii was
to open the marketingplans o{ hls company ior a new
helicopt€r the first from a private sector companv in
India in this category of products On consulting his watch'
he rectined that he would be delaved bv at least 25
minuies. Hence, he decided to us€ the iime by reviewing
the salient points of his preseniation
The Cornpany
The Indian Aviahon Company llAC) i'"?s set up in the
Expod P/ocessing Zone ol one ol the four metropolitan
cities of India. The tormation of the Company was
note\,,,ofihy {or the {act that it was the {irst in the private
sector to have b€en given the licence to manufacturehelicopters so far only Hindustan Aeronauiics Ltd (HAL)'
a public sector company, had the licence to manufachfe
the helicopters.
IAC was an lndo'Us Joint venture with Brantlv
Helicopters, USA- The joint venture was initiated by
Mr. Rangnani_
a former technician nthe lndian Air
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Force who had settled in the US. The project was in
response to the Indian Govemment s initiativE and
liberalization in inviting non-rcsident Indians(NRls)to bring
home their expertise, and promote a new industrial culturein lndia. The company was sei up qrjth Bs. 1 crore as the
projectcapital n 1986. As per ih€ termsof joint venture,
the helicopter was to be d€signed originally by the US
partner and assembled n India under the supewision of
th€ US experts. As per ihe expott regulations of the
Govemment of India, 75% of the output wBs to be
exported oui of the country while the remajning colrld be
sold in India.
Th€ Products
The Compary decjded o manufaclure h the beginning
two mod€ls - one with a carrying capaciiy of t o
passengers,while iheother wiih five, including ihe
piiotinboth the cases. The machine for both models was a
four stroke piston, as against twbo propelled "Chetak' oI
HAL, the only comp€liti\e ofteing in the market.
Among other vital uses and service benefits, these
helicopterc could land anywhere without r€quiring helipad.
Further, the fuel efficiencaand $aintenance was amazingly
low, working out at Rs. 1,000/- per hour of flying as
against Rs. 8,000/- for the Chetak. Mr. D'Souza had
thought of usjng these fir,,o berejits tor deating distinctive
competence in the market. The qualitg standards of ihe
manufacturer were very high as was exp€cted from the
industry where "technical excellence was th€ name of the
game". Besid€s perational ualiiychecks, he US expeds
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wouJd supeNise the assembly n Indian plant and the US
Federal Aviation officials would visit to ceriil!, the quality
perlormance,
Ir) addition to the above, the prices of the hro models wereconsldeGbly lo\ rer as comparedto tbe competing olledngs.While the hro-s€ater model was priced at Rs. 10 lakhs,the live-seater mod€i was priced at Rs. 25 lakhs a piece.
The helicopterwas due to come in the market in June1988.
The Marhet Demand
Th€ company had developed annual demand projections
upto 1990. Bas€don its ass€ssmentf marketneedsand
compelitive ollenngs. rhe company had projeded an
annual d€mand of 60 machines. The plant had aproduciion capacity of tuming out 120 helicopters per
annum, As the concept o{ using helicopters as an
'executivetransport was still to gain momentum, Mr.
D'Souza expected an upward revision in its demandpfojections. It being the first prilat€ sector to filaou{adure
choppers, he did envisage the problems of market
con{idence and credjbillt!'. However, he thought that the
alliance with a proven US marufacturer and strict quality
managementcorrld moilily'marl.ret resistance. n its task of
achieving the expo( stiprjation of ?5%, the cc,rnpany had
receiv€d enaouraglng enqu'ries trom sev€ral intemational
ma.ket centres. Besides th€ United Siates, where the
Company had a natuml entry advantage, it had been
rcceiving enqiries from Thailand, Japan, Singapore,
Turkey, ltaly, Aushalia and Britain about the poduct and
delivery.
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As lor the Indian component of sales, Mr. D'Souza had
been trying to ideniify prcbabl€ users for both the models.
Keeping in view the {eatures, .e. loi! price, low opetating
cost and facilitg to land anywhere, he ihought that the
two-seater helicopter would be an ideal purchase for the
police in traffic control, disaster reliel, hospitals and ev€n
news coverage. Already, Delhi Doordarshan and police
d€padments of t o states had evinced their interest in the
product.As for the fiv€-seatermodel.Mr. D'Souzapinned
hopes on company executives who needed to shutdebetween factories and headquaders n different places, and
other businesstrips.
The Concerns
During the meeting, Mr. D Souza hought oI sharing his
irnrnediate marketing concems and a long term
perspective plan. H€ was aware, with his background ofmarketlng highly technical ndustrialproducts, that such
products were sold on the benefits rather than product
features. Also, he felt that organizational buying behaviour
posed ihe Iirsi major barrier to be taclded. Among other
immediate concerns, he included organization ol
compet€nt salesforceand promotion mix, such as,
publicity and word-of mouth. He needed to tesi ihe market
reaction of his pricing plan as well.
Finally, he felt thai the company had to tackle some
strategic questionssuch as :
(1) How should tlle chopper be positionedamong th€
evisting altematives lor the product ?
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(2) How could the company draw the demand from
competingolferingssuch as light aircraftsalready n
market ? What U.S.P. shouldbe used?
(3) How could the companyprepare tself for applying
for a full ledged icence o producechoppers€ntirely
for the Indian market ? What arrangementsare
needed or indigenization f components?
(4) How should they approach and persuade the
organizational uyers?
(5) How could it cr€ate and maintain a long term
strategic ad\rantage n the markei which was far {rom
develop€d
As Mrs. D'Souza div€rted his chain of thoughts to the
alternatives, the taxi suddenlycame io life and resum€d its
crawling in the tmffic.
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MANAGEMENT PROGRAMME
Term-End Examination
December, 2OO5
MS-93 MANAGEMENT F NEWAND
SMALLENTERPRISESTime 3 hours MoximumMorks 100
(Weishtoge704/0)
Note: This poper consists al ttro Sections A ond B.
Attempt any three questions Jrom Section A.
Secfion B is compulsory. All questions corrg
equal marks.
SECTTON A
l. Critically e'"?luate the current policy for the small scale
secior in terms o{
(a) suppon to fi€ tiny sector
(b) inlrasiruciural and t€chnical support to the SSI
What are the gaps in the suppoft structure, il any, that
you can identify ? Biefly comment.
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2. You are an entrepreneur planning to set up a softlvare
development unit in your city. Explain ihe variables you
would use and the sieps you would lollow to conduct yourmarket demand analysis.
What are the disadvantagesof sole proprietorship as a
torm of organisation for a small enterprise ? An
engineeing gradual€,as a prospective ntr€preneurwants
to set up a smallscalepackaging nit, by puttingup 25%
of the capiial required from his own resourcesand is
wonderingabouiwhai form of legalentityshouldh€ form.
What is the adviceyou would givehim to help select he
b€st form of businessorganisation or his enterprise?
Justifyyour answer.
Why, in your opinion, do small entrepreneurs eem toneglect the human resource functon in enterprise
rnanagem€nt ? What are the main methods used by rhem
to train non-managerialmployees Discuss_
You hav€ ust esiablished our textileprintingunit and aregeiting good orders lrom ihe market. Whai are the
stabilisationphase challenges ou can expect and how
wouldyou overcome hem ? Explain.
3 .
4 .
5-
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SECTION B
6- R€adhe casegivenbelowand answer he questions ivenat the end of the case :
Rani Singh The Exporrer
Rani Singh s a woman who owns her own flusiness.
Like mang other women entrepren€urssh€ is torn
betweenher role of a woman i.e_,a wife, a mother, a
home maker and most impodant a daughter n law of a
middleclass ndianhousehold nd an entrepreneur.White
she has been a successfulbusinesswoman, he often
wonders f she had been a successful erson!oo.
Rani caughtentrepreneurshipever lrom her father.
He owned and manageda company,a travelagencyand
a lumiture store in an industrialown of U.p.
Her father was a compulsive achiever. Besides
managing three businesses t once, he seNed on theschool board. Rani said so about her father, ,,He
expected us to achieve, so we all did." One of her
brothers is an MLA and the other is the Managing
Director of a sugar mjll ',lf we got ,B, gmde in some
subject nsteadof'A',
father wanted o Knownow come.
He never talked about money, but he talked about
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integnty and character." She siart€d b€r first v€nhre at
an age of 15 when she organized an excursion trip of her
schooi students and earned Rs. 2,000 besidesa free trip
to Mussoorie. In the college, she formed a musical group
and financed her college educaiion till her faihet found
out and stopped her. Rani says, "l had no shorhge of
money during my college days. It was the s€nse of
independ€nce which was more important. I wanied to
start my own businegsand want?-d o create my ov,n seed
capital or the same."
She completed her B.Com (Hons). rom Shri Ram
College of Commerce, D€lhi University and a short telm
course on export documentation. She join€d an export
house as a junior executive and becam€ merchandising
manager n three years time. Within six months of her
promotion she resigned to s€t up her own busin€ss of
leather garment exporu
As per Rani, there is nothing more exhilarating than
owring gour own brrsiness, and for her, the fun was in
the challenge of making the firm grow from a small
business struggling for existence. Today more and mote
women arc making this choice rather than pursuing
traditional careers. Development Commissioner (Small
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Scale lndustries) notes that for the past five years, the
number of women starting n€w ventures is thyee times
more. There ar€ severalreasons or tbis tyend. "Some
women find that owning a business is the only way to
combine a decent wage lvith time for their children by
having th€ flexibility to cortrol tbeir schedules. Oth€/s see
lhemselves as unlikely corporat€ managers and
recognizing he g€nder problemthat exists or achievingsuccess, choose the €ntrepyeneurshipas a way of
controlling th€ir lives, pursuing interests that would be
irnpossiblen corporate obs.
Rani has travelled throughout the would. Every year
she spendsat least hvo months abroad visiting the buv€rs,
and particlpating in trade Jairs. Today at the age of 35
sh€ is the managing director ol a export house with a
tumover o{ Rs. 20 cror€s.
The women entrepreneurs have io pay a price that
men do not have to consider. n caseof a woman there
is often a conflict bet'reen the role oJ a "woman as a
home maker and ir businesso\rner. Often the husband
and wite .larelop sepaftte .areer track which cannot be
reconciled. Rani had to pay this price through her
divorce. She says that her business played a significant
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role in dividing hey loyalti€s. "My in-laurs were very
conservative, they did not like my meeiing with my
clients- My husband accompanied me on the ,irsl two
foreign lrips. These tr.rmed our to be rnore o{ pleasure
than business rips. His own priorities pre!€nted him from
accompanying me each time. In spite ol all my etforts, I
found it dilficult to satisfy my in-laws particularly Rakesh's
(mye\-husband) mother and sister, though I never
neglected the household work and always tried to present
myself as a dutiful "Bahu" of the household.There was
a strang€ coincidence that my husband's guests would
arrive only when I wa9 busy Mth my important clients or
ananging an already delaged shipment. Women oftm find
it lonely in the business world, €specially if the business
clients are only men. It was a problem for me." Many
women however have a businessthal fits well with their
intetesb and have wom€n customers. These include
services in b€aul! care, women's cbthing, edwation,
enteftainmentetc. In order io overcome his lonelinessand to win over Shalini, my sister-in-law, I made her a
part of my businessand took her along on all meetings
especially outside D€lhi. Bu1 this did not help, rather my
mother-in-law and Shalini started poking their nose in my
routine businessmatters. Ultimately, I could not tolerate
Shalini's interference as it affected not on\, my
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ind€pendot working style but also the reputation and
grounh of my business,which I had nourishedat a great
cost of iime and effort.
Nevertheless, being in business olten €xttacts a
double price from women. yet for those who are
d€termined, h€ rewardsare painful.
Quesfions :
{a) Do you agre€with Rani'scontention hai it is doubiy
difficult or women o be entrepreneurs Justilyyour
(b) Are lad)y saiisJactjor and enirepteneurship
contradictorygoals? What are the coping strategiesLhatcan be suggested o! the situaiion in whic.h Rani
found herself?
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MANAGEMENT PBOGBAMME
Term-End Examination
December,2OO5
MS.94 ; TECHNOLOGY ANAGEMENT
Time 3 hours MoximumMarks 100(Weightoge70Vd
Note: Attempt ol , questions. All questionscorry equal
1. "Mosi of the poor countti€s, though rich in natural
resources, are faced wi$ some basjcproblems." What are
these basic problems and how can technology be helpful in
(i) Foodi
{jj) Shelier;
{iii) Health;(M Communicationi
(v) Transportation;and
(vi) Educarion.
OR
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2. (a)
''Therels another way of looking at technology life
from th€ perspeciiveof gror,th and diffusion."
Explain h€ stagesof groMh of technologyaccording
io this perspective.
Describe ihe {ive stages of technology
translormation.
What are the key faciors in technology transler ?
Discussvarious modes ol technoLogy tansfer.
(b) Discuss di{{etent inte$ational agencies that are
engaged in the promoiion of Scienc€ and
Technology (S&T) cooperation among developing
OR
Explain the Growth curves wjth the help of Pead cul1/e
and Gompertz curve.
3. Disclss the ptoces. ol technology assessmeni fIA) and
technology evaluation(TE). Hovr does TA difler fiom TE ?
OR
Define technology diltusion. Dscuss the mulb-fac€ted
actMtiesof diffusion.
tat
(b)
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Discuss he role of \€nture capital in developing technology
Explain the contents
information.
OR
sources of technology
5. Explainany four of the following
(a) TIFAC
(b) Analysisof technologygaps
(c) TechnologyMissions
(d) Technology support for modemization ol small scale
(e) R&D expendituren lndia
(fl Factors on which royaliy raie for technology iransfer
depends
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MANAGEMENT PROGRAMME
Term-End Examination
December,2OO5
MS.95 : RESEARCH ETHODOLOGYORMANAGEMENTDECISIONS
Time 3 hours MaximumMorks 700' (Weightoge7@/o)
(i)
(iil
(iii)
ThIs poper contajns tLaa sections,Sectlon A ond
B. Section A cot'ttoins ioequestions.Attempt ony
four questions Jrcm this section. Secfion B ts
Stotisticol toble will be proolded on demand.
Use oJ personol non-progrommoblecalculators is
SECTION A
1. A sports goods company wish€sto test two types of tennis
rackets n order to determine rhich one is "best". 15
{a) Proposeand defenda precisedeltniiion ol "best".
(b) Whar is rhe ser of hvporhesesharshouldbe tesred?
Discuss.
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2. What is Discriminant Analysis ? What ar€ ihe differences
behi/een Regression Analysis and Discriminant Analysis ?
List oui a few researchstudieswhere Discriminant Analygs
has possibleapplications.
"Random sampling owes its impodance to the fact that we
can assess the results obtained from it in terms oi
probabilities othenrise the reliability of the estirnates
remains a matter of indMdual opinion." Elucidate his
Statement,
3.
4. What are the differeni categories of research teports ? .''
Explain each of thes€ categories in deiail. Aiso give hro
examdes o{ reporti Jrom each o{ these categories. 15
5, Write short notes on any tlrree of lhe following : 15
{a) Endogenous uariables and Exogenous 'ariables
{b) Scrutiny of secondarydata
{c) Routine and Non-routine decGions
(d) Eements ol CommunicationDimen5ion
{€} Type of Bibliographies
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6.
SECTION B
Define Dichotomous data and the Guttman Scale. Mention
truo teasoDsqrhichmal<eGutiman Scale an impractical tool
for the measurement oI attitudes.
The weight (gms)of 31 books picked from a consignment
1.06 , 07 ,76 ,82 , 06 , 07 , 75 ,93 ,787,95 ,23 ,
725,L77,92 , 6 ,70 ,727.68 , 30 , 29 ,139, 19 ,715,728,100,186,84,99, 113,204,111
Test whether this samplemay be treated as random.
20
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MS-96 : TOTALOUALITYMANAGEMENT
Time: 3 hours MaxilrtumMarks 700(Weightage704/o)
MANAGEMENT PROGRAMMETerm-End Examination
December,2O05
(i ) Thereare two Sections SectionA ond SectionB.
(ii) Attempt ang three questions rom SectionA. Eoch
question corries 20 marks.
(iii) Section B is compursory ond carries40 molks.
SECTION A
1. (a) According to Deming, what are the seven deadly
diseases associated with ihe American traditional
management practices ? Does India presently suffer
from any such diseases?
(b) Why hasTQM beengainingpopularity? Discuss nd
then comm€nt n the contextof Indian situaiion.
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2. (a) "The primary objective of quality is io give value to
the oistomer" Evaluate and discuss the ways in
which the film can give more value to its customers.(b) Wiat prccedure should a business firm follow in
order to systematically ntegrate quality with strategic
planning process?
3- (a) What are some of the humanistic elements of
TQM ? Discuss.
(b) How can an organization generate greater
commitment to quality on the part ot its
€mployees ? What approach should it follow ?
4- (a) What ar€ the benefits ol ISO 9000 QMS
implementation Discuss.
(b) Discuss he process{in general)about the decision on
quality awards {by quality awarding organizations).
5. Explainanytour of the followins
(a) Malcolm Baldnge Award
(b) Direct and indirect costs of industrial accidents
(c) Control charts
(d) Principles of Benchmarking
(e) 5'S concept
{fl Concept and Rationale of Quality Function
Deployment
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. SECTION B
6. Read the following case care{ullyand answer the questions
givenat the end :
ABVIND MlrIS
For the Rs 413 50-crore re{rile-makerArvind Mjlls(Arvind),global quality sn't just a buzzlvord. t's a target
that must be met 365 days a gear, 24 hor.rrs a day,
60 minutesan hour, 60 seconds minuteto ensur€ hatevery millimetr€ol the 1.90 metresof denim it spinsout
every secondconforms o the specilicationsaid down by
Aruind'sglobalcusiomers.
For, demanding buyers like the $s.g,billion Levi
Straussand the $4.3,billion VF Corp., which owns theLee and Wrangler'sbrands,acceptno - and that means
no - deviations {rom their stringent s.tandards.So, t}re
flagshipof the Rs. 1,774-croreSanjayLalbhaiGroup has
been forced to build global quality into all four
components of its production process : sourcing raw
material, manufacturing the product, monitoring it for
flaws, and shipping t to tI€ customer.
Actually,Arvind's planning or qualitybegan n 1987
when it chose globalisation as a suruilal strat€gy. Says
CEO Sanjay L-albhai, 40 , "The importance of quality as
a major parameter evolved right from the day q/e started
looking at the global market, wbere our competitiqn is
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from world-class producers." Manulacturing fabrics for
garments like sarees and blouses- a terribly competitive
market with low margins - Arvind, tike its p€ers, wasralaged by compeirl ion n rhe early 1980s
Forced to target the global market, Arvind chose
high-end denim : a commoditised aw material, where
apparel-makers do not tolerate variations. Says a
Singapore-based vice president ol Merrill Lynch, whotracks the industry : "The impofiant thing is to produce
siandard quality very consistently.No buyer will accept
th€ uncertaintg oI whether the next shipment will be of
the right quality."
Because of its global commiiments - Arvind today
exports 60 per c€nt oI its denim output - the quality
goal that Arvind's top managem€nt team - led by
Lalbhai and Group CEO P.R. Roy, 64, a tormer
prolessor of texrle enginneringal lhe MS Universiiy n
Baroda - set lor the firm was! as Roy puts it, to "build
qualitytnto the process aiher than rely on inspection."
As a lirst step, the company formalised its quality
vision in a statem€nt that appears on every table and wall
of Arvind's p)ants: "We are committed o implementing
all actions nec€ssary to ensure that coniracts with
customers are honoured to the complete satisfaction of
customerc." Since this m€ant letting th€ customer dictate
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quality standards, managers went directly to them to find
out their requirements,
On this basis, a manufacturingsystem capable of
delivering those requirements ,,vas designed. In fact,
Arvind s quality assirance system pivots around the
customer'scurrent - and future - ne€ds.Consider, or
instance, the $ality improvement process whereby
AMnd baggedLevi Straussas a customer n July 1994.
Way back in 1986, Arvind sent its first sample to
Levis Strauss,at which point of time the jeans-maker
subjectedt to its specificaiions riieria- which relate o
the diameterof the yarn, the moisture content, and the
llaws in the fabric, for instance and sent it back. And
Arvind was forced to spend the next six gears creating a
n€w infrastructure, edesigning ts sourcing, shopfloor,
and process radically to meet Levi Strauss' requirements.
A shidy of the cotton'picking process r€vealed that
while picking was besl IeIt to agricultufal workerc, it Lt,as
the post-pickingactiviiies ginningand pressing ihatgenerated unev€n qualiiy. So, tuvind embedded qualiiy
into the process by deploying a 150-strong workforce of
its own to supervis€ he buying, ginning, and pressing
proc€ssat cotton farms in Punjaband Cujarat.
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QUAIITY ON TBE SHOPFLOOR
a6tt-'"').',,!jid"i
f;n 16,';;)
I &Pe$nsI imanaeom'lmme ILlltd I \___J \,J
HOW ABfu'lNDENSURES
F;;Cl -M"""d 6;'r,0 f""dQ r6*ffi;i)| | rBp' f l i0nor| | cherr insI moni 'o,l lordrsandll._-r[ryM9 l. _J L_J1.9..!!/
f__lr,.r.,r-.,,e [-lo',n,*,,*
The next step was to redesign the manufacturing
process to include quality checks at every step. Today,
Arvind's 8.5-million-metre xport orienteddenim plant at
Khatraj in Cujarai is laid out in a U : the raw cotton
enters at one end and is progressively carded, drawn,spun, warped, d9ed, sized, woven, finished, inspected,
and packed before being despatched lrom the other end.
Explains C.R. Dwa anath, 40, g€n€ral manager
(manulacruring) : "Based on our experience. we
concluded hat materials lows are like energy flows. The
trick is to optimise hem."
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During the eight years that Arvind took to bring its
product upto its global customers' standards, the company
followed a problem-solving cycle on the shoplloor. The
ouiput was examined or defectsi he defectswere traced
tack to particular stages of the manufacturing process;
appropriate quality checks were installed at those stages;
and the output was re-examined to test the validity of the
qualiig control installed.
For instanc€,when productexamination evealed oo
many variations in the diam€ter of the yam, Arvind
installed an ele.tronic ege to scan each thread ol garn
being spun out before it was dyed and woven. If the
coefficieni ot variationat any stagego€sbeyond pre'set
specifications, the spinning line stops automatically.
Similarly, when the indigo dyed d€nim displayed too
many variations in shade to be acceptable, engineers
devised an automatic dousing and dyeing process, with
built-in alarms that go off whenever the quantity of dy€
vanes.
Using this approach, Arvind has installed qualitycontrol devices to cover viriually every det€ct that it has
identitied. Fabric flaws have been ironed out by identilying .unevenweavingspeedas the culprit and putting in place
machinery to €nsure a consistent weaving speed of
140 metresper minute. Shrinkages ave been controlled
by r€gulating h€ moisturecontentwhenever he denim is
dipped in a wetting agent.
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Most important. the problemof too much extraneous
matier in the denim has been addressed y tlacking the
problem down to the bale-management rocess used
betore the coiton enters the machinery.Being a natural
fibre. found Arvind's workers, cotton is susc€ptible o
variations. So, the mixing processhas been automated
with a robotic device- called he Blendomac.- which
mixescotton from variouscat€gories f balesas per €ach
buyer'sspecifications.
Intent on servicingall its custom€rs'needs, Awind
has d€visedother checks oo. For instanc€, he walls of
the plant have been designed as curved surfaces, rather
ihan horizontal or vertical ones with corners, o ensure
(har cotLondoes nol crrckanywhere.On the shoplloor.ih€y have install€d exhausts at r€gular intervals to suck
out the dust.
Unwilling to rely on th€se automaled checks alone,
the firm has designeda second ine of qualitycontrol ;
regular off-line laboratory analyses of the matenal
produced, ollowed by a manualcheck by trained people
who scan tie finished denim under standard lighting
conditionsand IIag any flaws.
These quality steps arose out of customer
specilicaiionstoo. Intemationallg, abric manufacturers
use a four-point systemof categorising efects bas€d
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on parameters such as the lengih and the nature of the
yarn - giving th€ buyer the option ol cutting out that
particularstrip oy leaving it in. To conform to th€se
requirements, Arvind had to install manual checking
To back its qualitysystems, he companyhas chosen
a quality focused recruitment and iraining policy. Since
th€ criticalareas on th€ shop{loorhave on line controls,
with a local ar€a network connecting the seven functional
heads in the plant, tota' computer literacy is mandatory.
So, the ninimum quaiification for an entrl-1e\/e1worke-r s
a diploma from an industrial raining institute.
To activate its quality-control devices, Awind
empowers its workforce to shut down macnmesthemselveswhenever he output goes out oi control. So,
ttaining courses are designed to encourage participaiion
and process ownership. Unlike the usuai classrooms,
where trainees fdce the tminer, Arvind s tfaining centre
comprises a cluster of round tab)es, each wjlh jts own
presenlation kjts - a seating design which promotesteamwork. Says Kamal Bagchi, 48, manager (qualitg
control) r "We are in a fast response usiness, o we have
to look at multi-skilling ur p€ople."
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THE QUAUTY PAY-OFF
As thequalityol productsose, rclitszoomedn response
70.08
,r-l
t993-94
r ilH':i:T.
1-92 7992,93
o/oexpected to A{lassglobal cusiomers
41.37
71%
Even as they instilled quality into processes, Lnlbhai
and Roy ensured that the progress towards quality could
be measured ihtough means other than just the quallty of
ihe end-products. 5o, theg commissioned international
consultants, like Switze/land's Gherzi OrganGation and
Germany's Lauffenmulrle,lo carry
out technology and
process audits for improving quality standards.
Building on these sieps, Arvind ev€ntually arrived at
a stage in 1994 \,!here it could s€nd blankets comprising
samples from dif{er€nt balee so that Lrvi strauss could
treat the blanket with waier or chemicals to give it the
desired ook and then indicaiewhich of the bales t would
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preler Arvind used. During the intewening period, recalls
Roy, "they had seen every nook and corner of our plant
and ensured hai all oul systems nt€gratedwith theirs."
Ihat is naturai since Arvind is actually part of Levi
Slrauss'own total quality managementprocess,which
aligned ihe jeans-maker's suppliers to its quality
requiremenls. Says Sanjay Choudhuri, 44, managing
ditector, Levi Strauss India r "We expect our key
supplieys to understand our specific needs and lind eval
u,ay ol satisfying them."
And AMnd has made it a point to align rhe cusromer
witb its manufachrring processes by allowing buyers to
help set up its systems.For instance, he $400 milion
Capiial Mercury, a US buyer for its denim, has invested
as much time and effort in developing Awind's systems
as in its own, sending its own teams to help Arvind
tine-tune its hardware and processes. Likewise, Lzvis'
fabric development team from San Francisco has visited
Adind's facilifies seven times in just the last year.
As part of its quality practices, Arvind is using
customef feedback io design new products. Monitodng
relail outlets to track the popularity of different varieties
ot.ieans, ihe company bas starled Jooking at specialised
stretchand mercensed enims.Thesemovesare designed
to plug a perceived quality Sap in product development.
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As Darlie O. Koshy, 39, chairman, Apparel Marketing
and Merchandisingat the National Institute of Fashion
Technology puts it : "While they have bu)li in tunctional
quality, th€re is a definite ag in their ability to innovate
and keep pace with iniernational rends."
A(vind's decision to go in for ISO 9002 cedfication
is customer'focus€doo. Says Rajiv Dayal, vice-president
(€xports) : "lt gives a higher comfort level to the buyer."
Palpable oo is the pay-off from quality.With an 85 per
cent repeat buyrng |ate, the last time ihat the company
had a consignment etumed on quality groundswas in
1991. lis denirn quality has been rat€d in the top ten
percentile on the basis oI indePendent validation by theSwiss company, Uster, which monitors the perlomance
ratings of yarn from companiesacross he world.
ExplainspresidentAnand Parekh,45 , "We figured
out early on that quality wa9 going to be the one
imperative or long-termsustenance.'That's why Arvind
thinks the world ol quality - quite literall!
Questions ;
(a) What are the main elementsof Quality Programme
at Awind Mills ?
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(b) What steps in the manufacturing system has Arvind
built in so that it is capable oJ meeting ihe
company's vision and d€livering the requirements of
its QualitgProgramme?
What were the motivations for Aruind Mills to insiall
a rigorous quality system at its manufacturing
tacilities?
What'Best
Practices'rom the casecan you disc€rn
lrom the quality programme at Arvind ?
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MANAGEMENT PROGII{II,TMETerm-End Examination
December,20O5
MS.97 :
Thhe : 3 houts
INTERNATIONALUSINESS
MoximumMotks 100
(Weishtose0W
(i) There are tuo Sections: A ond B.
(ii) Attempt ony thrce guestions Jrom Section A
which corry 20 motAseach.
(iii) Seetion B is cofipursory 1nd catries 40 ,l,orks.
SECTION A
1. Explain ihe Theory of Compatative Cost Advantage and
examine its rele\rance in ihe context of ptesent day
silualion.
2. "Several of the past MNCS have giv€n way to global
enterprises.' What causessuch changeoversand what
benefits can the latler gjve to sucb enterprises I
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3. (a) "ln designing control mix in an MNE, lt i5 desirable
to consider the atiitode oJ managets towards control
whicb in iurn ls afleciedby couniry culture." Discuss.
ls ihis concept being aflected by globalizationof
businessn the presentsiiuation?
(D Discuss he practicesand preferences f MNCS in
regard to employment and labour relations in host
countrres-
4. (a) A.L. Tung (in his contribution : Seleciion and
Training of Personnel Io( Ov€rseasAssignments)has
proPosed a comprehensive approach to expatr'ale
selection.Discliss he main points of his approach
and cdticallyevaluate hem in ihe presentcontext.
(b) What actjviijesare involved n internationalogistics
How could an intemational lim optimize iislogistics?
5, Explaln any iour of ihe tollowing :
(al Managrnga mulli{oral sral?gy
(b) Ffanchisjng as a method/mode of entry in a foreign
{c) Total Ouaiiiy Management : Its role in international
busmess
(d) Cross-culiuralnegotiationprocess
(e) The emergenc€ l regional rading biocs
(0 Evaluation o{ project perfomance
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SECTIONB
6. How ha. clomesric trberatr,"riondrd glob"lisatror ofbusi.r.<s flectpd rdid s nd rcinarion.r the worlo e.onomywith reterence to :
(a) intemational flade ard jnv€stmenr
(b) transferoJ technologg
7. "MNCS are reluctant to engag€ n innovational activity and
R & D expenditure utside heir own country." Comment
on lhjs slate.rn€.ntwjtb specjal rej€rence to developingcounllres.
8. Like overseasChinese,non,residentndians NRls)har€been playing a crucial role in fuelling the industrial groMh
oI lndia. They have the skills, ihe brain-power, and thecirpital io make a diflerence_" Comment and illustrate with
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