MANAGEMENT PROGRAMME Term-End Examination December, 2O05 AND MS-l ; MANAGEMENT FUNCTIONS BEHAVIOUR

Tirne: 3 hours
Mdximum Morks : 100 (Weishtdse70Vd

'

(i) (ii)

There are t&o SectlansA and B Atternpt any thrce questionslrom SectionA, eoch question canying 20 morks

(iii) Section B is compulsory and corries 40 morks

SECTION A 1. Enumerate various sgstems and processesinvolved in managing an organisation. Briefly explain system concept and its inlr-relationship with sub systems in an organisational set-up.

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2.

Discuss various techniques used in dcision making. Describe what are the main barrirs to effective decision maling. Explainwith examples. How do Tradrtional,Behaviouraland lnteractronist vie$s explain the process of conflict ? Evaluatethe changs which iake place within and bet'reen the groups as a result of long standinginter-groupconflict. "Various multi-faceted task and activities o{ an organisation have to be diflerntiated into smaller, manageable components to faciLitat eJ{icient achievementof objectives. Elaboratethis statementand " discussunderlying issueswith sriiable examples. Write short notes on any three of ihe {ollc^ring r (i) (ii) (iii) Responsibilities a managertowardssociety of MBO Organisational rulture and cljmai

3.

4.

5.

(iv) Span of control and levelsof management (v) Leadership siyles

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SECTTON B 6. Please read th case aDd anso./er quesiions gtven at th the

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 Presidni and others have decided that I har, got to lire Joshi or at least mov him out ol produclion. Evryonewanis to tire Joshi, but j won't do il to him. I was talking lr'irh Bhal rhi. morning. dnd we decided that you might be able to make use of Joshi in ' Vour dpaftment. Seth was surprised by borh th iniormaiion, and the proposal. Kapil concluded his comments with,',Seth t am askng you to iake Joshi. You can sa9'No. Bui ihen he gis fired. I have told Josbi this. Also, Joshi kDows that if he goes with you he wjii take a pay cut. Howver, I ihink you can_ make use of him both to gour ot,\,n and his satistaciion. You are. anl^,Jay, carrying our an rn-process qualiiy control, and you might be able to mak good u$e MS-1

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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 decline of prolits : sales had fallen olf, and production costs had isen. The Presidentadopted three measureswhich h an hoped would improv the condition. Fjrst, by cre?tting Industrial Engineering depariment {or establishing work standards oD all production operations, to detetmjte which manujacturjng cosis were out of line and whre rmedialaction shouldbe iaken. Seth, 28 yeals old, u/ho had been wiih the company for two lears in the Purchasing dpartment,was seiected Seth had B E and M.B.A. degrees to his credit. Whai he lackd 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 Dpartment 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 Supriniendent. Thirdly, he engaged an Industrial Psgchologist to appraiseall the Supewison,Personnel. Joshj had been with the Company lor 20 yars since its lounding, and durjng this period had workd on every productlon operation, and his lagt 11 yearc had been in supervisory capacity- His manners "vere rough and aggressive, and he had jittie formal educaiion. The Industnal Psychologisfs report about Joshi coniained the following poinis : (i) position Evalualion for the ol Suprinlendent Not good enough. , Assistant

{jt

Capacity for good human relations in $lpelvision : Will have {nc$on tquently.

iiiu Need for development counrelling : Counselling

greaily neded. (iv1 Geneol evraluation Joshi had a good ability proiite. : 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 prsonaliiy make{p is concemed,he is out of placein the presert position.

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QnstJons : (a) {b) What is the.ore ploblm in the cas? Exphin. Explaln Joshi's behaviour and wotk expednc vi, a vis rh? psycholoqbl tepon. r How do you see Kapil's suggesiion io Seth ? Give

(c)

(d)

What are Seth's consideraiioris in taking a dcisiofi ? What should he do ? Explain.

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11,000

Its2-l
MANAGEMEM PROGRAMME Term-End Examination December,20O5 MS-2 : Pre-Revised MANAGINGMEN : Revised: MANAGEMENT OF HUMANRESOURCES
Time: 3 hours
Note:

Morks: I00 Moximum (Weishtoge70o/a)

There are ttto SectionsA and B. Section A has tuo sers. St I is meant Jor students who houe registercd upto June,2004. Set ll is meont lor studnfs 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)
l. Define prsonnel managemnt. Briefly discuss the major lunctions and operations o{ personnel managment.

20 20

2. Explain the purpos and types of inteMew in th

ofganizaiional context,and discuss their limitations.

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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

5.

Wrile shon nolec on any rhree of the followng : (a) (b) (c) (d) (e) Induction Evaluation of training programme Maslow's need hiemrchy theory Principles oI salary formulation Suspension and dismissal

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SECTION A (Set Il) l. Trace the evolution of Human Resource Management, Discuss the 5lrategic and political perspectivesol HRM. Why is human resourceplanning important ? Discussthe process oI human resource planning. Discussthe competencyapproachto job analysis.Briefly describe any iwo methodsof competency mapping. Discuss trdining ned valuation and describe various training e\,?luation techniques. Wriie short notes on any ttrre of the followng : (a) {b) {c) (d) () Performancecoaching Human Resource )nformatronSysten Fringe benefits Industrialdemocracy Outsourcing

2.

3.

4.

20

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SECTION B 6. Please read the following two cases and ahswer the questions given at the end of each (A) Case Study is Mr. Ramchandran LheChie{ Execuliveof ABC it was decidedby the Board ot Limited Recently, Directors that it would be profitable fot the corporation to set up a separate Marketing Department. Mr. Ramchandranhas been direcied to pick up a pEon 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 yars 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 tceived th 'go-g;tter' in his depaftment. Although nickname oI Mehta seems to be more concerned at times with ends rather than means,'he is very efficient and is considereda good leaderby those who work under hjm- As one worker stated. "Although he can get rough with you at times, 9ou always know where

40

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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 whn action is calledfor Pramod Kunar has been wiih the company for eleven yearc. He is well liked by all in his deparunenr. and his work is ,irsl lale. Kumar's leadership slyle di{fers from Mehta's in that Kumar is 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 oftn includes those who work under him. Those who work under Kumar consider him a good leadr, and stale that the atmosphre ol participation produced by Kr]mar really encourages iheir utmost indivldual outpui while on the job. This can be seen by ihe production increase which soon occurred when Kumar becamethe head of his work_force. t

Qoesliotrs (a)

f you were Mr Ramchandran whom 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 ? P.T.O.

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(B) Case Study

Raghav Chmicals Ltd. has planned for computerisation of nearly 50 per cent of the production operations and control. Ii has taken care of all resourcesin the computerisation plan jnciuding human tesources- Th present inventory ol human resources and future requirements of the production depdnmenl were specifred given hereunder. as

Category of Human

Requirements alter lnventory Cc,ftputerisation

Surplus 7 4

Chemical engineers (Operation) Chemical engineers (Maintenance and control) Mechanicalenginers {Maintenance) Snpervisors Operatols Quality conirollers

15 10 2
10

8
6

2 2 10
1

0
8

30
5

20
4

72

43

'

The human resource planners suggestedthe redeploymentol chemicalenglneersin their newly staitedsister concern, i.e., Laxman PaperMillsLtd., and retrnch sumlus oI mployes of all other catgories. They also recommended to the nranagementthat there was no need for firrther requifunent lor ary otheractionplan. or

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The compuierisahonwas over by the end of 1998. Whn the managementwanted to start ihe produrtion on the new)y computerised process, it was shocked to note ihai not tnany employees in the produciion departn)mi were suitable to th new jobs and ihe inlormation supplied by the human resource plannets in this regard did rot match wtth the teatity. Questions {al :

ldentify the problm in this caseTo what exient arc the hum;n resource planners reslonsible Jor the present slaie of aflairs? What should the managenrent now to deal do with ihe problem taking into account both rhe short-term and long term perspective ?

(D

(c)

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11,000

MANAGEMENT PROGRAMME Term-End Examination Decernber. 2O05 MS-3 : ECONOMIC AND SOCIAL ENVIRONMENT
Tine : 3 hours Maximum Marks : 100 (Weishtase 70Yd Note : There are two Sections A and B. Attempt any three questions Jrcm Section A, carrying 20 marks each. Section B is comput6,ory and carries 40 morks.

SECTION A l. Whai do you understand by the socio-cultural environment of business and how is it important for business ? Briefly explain with suitable xamples. 20

2.

Examine the grori'th of public sector in India and analyseits contribution to overdll economic development. 20

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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,

4 . Analyse the major trends in the grov,/ih of lndia's loreign

trade and its implications on production, employment and recnnorogy. "Economic reforms wre ad hoc and noi driven by clear in goalsand objectives." Discuss 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. Write short nois on any trro of the following : (a) (b) (c) (d) ManagemeatMovement Relationship betuen Government and Private sector Administeredprice mechanism Trad policy reforms

7,

MS-3

11,000

@
MANAGEMENT PROGRAMME Term-End Examination December.2OO5 MS-4 : ACCOUNTING AND FINANCEFOR MANAGERS
Time: 3 hours MoximumMorks: t00 (Weishtoge704/ol
Nor : Attempt ony fiDe questions. All questions carry equal marks. "Accorltting js a seflice lunction." Explain. Wbat are the tro facets to the role ol an accountant ? Discuss. Asset iike land is shown at its original cost in the balancesheet of a company. Justily this accounting practice by explaining the releEnt accounting concptson which it is basd. 2. "The EBIT - EPS analysis is an important tool in the hands ot ihe {inance manager." Explain this analysis with the help of an exampleand discuss purposeservedby ii. the

l.

(a)

(b)

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3.

From th following particulars prepareTrdding and Profit and Lossaccount Mr. R lor the yearended oi 31-3-2001 and a balancesheetas on thg samedate :

Buildingsa/c Machinerya/c Cashat Bank Cashon hand 1870p.a. loan obtaind by Mr. R on 1-6-2000 on mortgage building of

Dr. Rs 5,00,000 2,00,000 1,00,000 90,000 10,000

Cr. Rs.

3,00,000 R's Capital 5,20,000 Sundry Debtorslsundry Creditors 5,00,000 4,00,000 Stockon 1-4-2000 1,20,000 Puchases,/Sales 25,00,000 32,20,000 SalesReturn//Purchases Return 1,20,000 1,00,000 Rnt 60,000 Establishment Expnses 1,80,000 Eleciricity charges 15,000 Telephone charges 10,000 Commission Sales on 30,000 Insurance Premium 10,000 Bad Debts 20,000 BiUsReceivable 75,000 45,40,000 45,40,000
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You are requiredto providefor deprciation buildings on p.a., on machinery 25% p.a., and on fumihre @ sa/o @ p.a. @ 1Oqo Provisionlor bad and doubtfuldebtsis to be made at 5% on sundrydebtors. js of Mr. R's manager to a commission 10% on "nfitled prolii after charginghis commission. the net Closing Stock was not taken on 31-3-2001 but on took place during 7 4 2001. The followingtransaciions the period{ron l-4-2001 to 7 4 2001 , Sales 2,50,000 Rs. Rs. Purchass 1,50,000 Stockon 7rhApril 2001 wasRs. 1.80,000. was20%. The raie ol Gross Profiton Sales InsurancePremium was paid for the year ending 30th June2001. Interest mortgage to be provided on ,oan upto 31-3-2001. electricity wereRs. 2,500. Outstanding charges
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. What is meant by Performance Budgeting? Discuss its main objectives.

(b)

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5.

Comment on ihe follodng statements : (a) Higher net profit margin need not necessatily lead io higher rate of return on investment. A high operatingleverage not alwaysdesirable. is A company's profitabilityis better judged by PBIT mther ihan PAT. Cost of debt is alwayscheaperas comparedto other sourcsof funds. From the creditors' poini ol view, the lower the dbi ratio, ihe better it is.

(b) (c)

(d)

()

6.

The balance sht o{ Best Manu{acturrsLtd. as on 31s' March 2004 and 2005 are as follows. Liabilities Share Capital 5% Debenturs Sundry Creditors Profii & Loss A/c DepreciationFund Reserve for Contingencies OutstandingExpenses

31-3-04 Rs. 2,50,000 1,00,000 1,15,000 20,000 40,000 70,000 15,000 6,10,000

31,3,05 Rs. 2,50,000 80,000 1,08,000 27,000 44,000 55,000 24,000 5,88,000

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31,3-04 Rs.
Land & Building Machinery Stockin trade SundryDebtors Cash& Bank Balances Temporary invstments Prepaid expenses

31-3-05 Rs.

1,50,000 1,50,000 82,000 90,000 1,00,000 1,14.000 85,000 60,000 1,31,000 2,000 81,000 55,000 95,000 3,000

6 . 1 0 , 0 0 0 5,88,000
Following additional information is also audilable ; (a) A new machinerywas purchased Rs. 30,000 but for old machinerycostingRs. 15,000 was sold for Rs. 5,000, accumulated deprciation was Rs.8,000. Rs. 20,000, 5/o Debentureswerc rcdeened hy purchaseIrom open marker @ Rs. 96 Rs. 36,000 investmniwere sold at booK varue. 12% dividendwas paid in cash. Rs. 15,000 was debitdto ContjngencyReservefor settlement of previous tax liabjlity.

(b)

(c) (d) (e)

You are required to prepar a Schedule of Changes in Working Capital and a Statement showing the Sourcs and Application of 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 pieces at 60yo of the potential capaciiy. Composiiion of his cost is as follows I Direct material Direct wages

Rs.4 Re.1 fixed) Rs.6 (50q0 Re.1 (25%!"rying)

Sales overhead

During the current year he intends lo produce the same number but anticipates that (a) (b) (c) (d) his fixed chargeswiu go up by 10%o rates of dirci labourwill increaseby 20% rates of direct material will increase by 5% sellingprice cannot be 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 gets an overallprofit of Rs. 1,80,500 ? manufacturer Write explanatory nots on : (a) (b) (c) (d) Absorption Costing Break-evn Point Methods oI Depreciation Nei PresentValue Method

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12,000

MANAGEMENT PROGRAMME Term-End Examination December,20O5

MS-5 : MANAGEMENT MACHINES OF AND MATERIALS

Time : 3 hours

MoximumMarks: 100 lweightdge 70o/o)

Nole r

Sclior A hos Jiu questions thot corty 20 msrks each. Attempt onv thfte questions lrom this Section. Section B is computsory ond corries 40 morks.

SECTION A

1.

(a)

Describethe OperationsManagementdecisionsand their classifications.

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(b)

A small gear manufacturing facility is being planned parts to five hea!,y manufacturing ihat will fed facilities. The locationof the current plantswith their is coordinates and volume rquirements given in the following iable : Plant locatron Co-ordinates {Partsper year)

1s25,75)
Location B Location C Location D Locaiion E

1500 250 450 350 450

(400,150) (450,350) (350,400) (25,450)

Use the cenbe of gravity method to determine the 10+10 best location for ihis new facilitg.

2.

\a) Identity three disciplines/sub disciplines that will

contribute jn a major way to ihe development of Productionand OperationsManagement(POM).

(b) Data for a break-even analysis revealed that

total costs at volumesof 600 and 800 units were Revenueis Rs. 80,000 and Rs. 96,000 respectively. Rs. 144 per unit. Based upon this information, compute ihe following I (i) (ii) The variablecostspet unii, and The fixed costs

10+10

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3.

(a) Discuss with suitable examples, the process of

launchinga nw product in the market.

(b) l-akevjew Lumber uses forklift truck to Lrarbpor

lumber from the mill io a storage warehouse 0 30 km away. The lift trucks can mov thre loaded palletsper trip and travel at an averag 6 km per oI hour (allowing{or loading,detays,and travel).If 420 pallet loads rnustbe moved during each 8-hour shift, how many lift truck ar required ?

10+10

4.

(a) What do you mean by an integrated approach to

MaterialsManagement Explain. ?

(b) A company lras a monihly demand of 800 units of

a product. The company can produce 8 products per hour when it starts a production run. It costs Rs. 3000 for shop set,up to start a productionrun. The inveniorycarryingcost amountsto 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 frquently should the production run be undertaken and whai should be the length of each run ? 5. (a)

10+10

Explaindiflerent types of maintenance giving suitable example. Suggestan organisationstruciure lor the maintenance department of a mediumsized company.

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Thre are seven jobs (given in the table below), each ol which has to go through machines A and B in Limei5 in hours that order. The processing

1
Machine A Machine B

2 10

3
' 6 7

7 9

3
8

12 18

10
72

11 1

Determine the sequence of jobs that wiu minimize 10+10 the iotal time for completjonof all the jobs.

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SECTION B

6 . A small project consists of eighi actjvities lor which the

relevant data are given below : Activity PrecedingActivities

ActivityDuration (Days) 4 7 6

B C D E F G H

A,B A,B C,D,E F,G

-

5 7 6 5 2

{d) D'aw rhe Neh,orkdracram. (b) lcl (d) Find the crilicat path nnd lhe nrojecr cornpjpjionrimp. Calculate the total floai lor each of the activiiies. 8+4+2+6 4xE=20

7.

Wite short notes on any tour ol the following : (a) Aggregaie planning (b) (c) (d) {e) (0 Buffer Stock Kodak sgstem VED analysis Producer'srisk Value Engineering

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10,000

MANAGEMENT PROGRAI4ME Term-End Examinaiion December, 2OO5 MS-6 : MARKETING FOF MANAGERS
Time: 3 hours MaximumMorks: 100 (Weightase70o/ol

(i) (ii) (iii)

Attempt ony thrce questionslrom Section A. Section B is computsory. All questians carty equol morks.

SECTION A 1. {a) (b) Briefly explain the variouspricing methodsavailable for Indian markeiers,with suitableillustraiions. Discuss the variables that affect the disiribution decision Ior the following I (i) Tasrlood joinr frPsLduranl (ii) 2. PersonalComputers

Why and how do psgchologicaltactors 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)

Discussthe major objectives SalesPromotion. As of a marketer of a leadingconsumerdurablecompany, when do yor.r consider it an appropriate time to organisesuch promotionsand why ? Personal Selling and Advertisjng are the h.uo major vehicles of communicationfor marketing industrial products. DiscLrss with a suitable example of your choke.

(b)

4-

Write notes on any three of the following : (a) {b) (c) {d) (e) PLC as a tool Ior rnarket development Matrixorganisation Bases for Segmentation Approaches to Sales lorecasting Limitatlons o{ Cyber marketing

M 5.6

SECTION B 5. Study the case given below and answer the quesiions given at the end. BPL has launched the digitalcameraVPC-G2o0EX at Rs. 39,000. lt does not rquire convenrionalfilms as it can store imagesin lts memory. A niche segmentof PC users,journalists,multimediaagencies, architects,doctors and professionals are ihe primary segments for the product. The benefiis of the product include viewing pictures on a built-in LCD screen, and the voice memo (6 seconds)that 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 floppis. The product may 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 competing brand, has also launcheddigital cameras. Questions : (a) Who, in your view, would b the mosi appropriate target consumers for the product and why ? Outline sritable promotion and positioningstraiegies for Lheproduct.

(b)

M5,6

9,000

MANAGEMEM PROGRAMME Term-End Examination December,2OO5 MS-7 : Old : INFORMATION MANAGEMENT AND COMPUTERS Revised: INFORMATION SYSTEMS FORMANAGERS
Time: 3 hours
MaximumMarks: 100 (Weisht1qe 70o/o) Note : (i) There dre two sets ol question papers i.e. Set 1 and Set 2. &t 1 is for those students who houe registered Jor this course prior to Jutg 2004. Set 2 is for those students who haue rcgistercdt'or this courseJrom July 2004 onwodg There are two sections in each set. Atternpt any three questions t'rcfi Sectioh A of eoch set. Sect'ion B is compulsory.

(ii)

(iii) A totsl ol fiue questions haDeto be ottempted. Ali guesrions cang "quat marks.

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Set I (OId Cours) (Information Management and_Computers) SECTION A l. "Compuiers have now become an integral llart of our Iife." Explain. Discuss the applicationof compurersm any two lunctionalareasol management givingexamples,

2 . (a) Explain main hardwareunit5 of a computer. Discuss

various catgories of computer software. (b) Discussthe managrialapplicationsof spreadsheets giving main features. Highllght a lew important buslness applications.

10

10

3 . ''MIS has becomean integralpart in today'sorganisation_,' Explain. Whai ]s an inlormaiion nehrork ? Explain_ 20
Discuss Data Flow Diagrams and Data dictionary. Give few programming vocabularies.Explain the advantagesof using COBOL. 5, Using graphicalmethod,.findout the maximum valueof Z for the lollowing problem :

20 20

Z=4xr+3x,
to subject 3x' + 4xr< 24 8 x 1+ 6 x 2 < 4 8 *r<5 *296 x,,xr)0 MS,7

SECTTON B 6. Solve following ihe assignment problem minimising ol total time tor doingalljobs. Operators
I Job

1
6

2
2 5 8 2

3
5 8 6

3
7 9 4 9 6

2 3
4 5

2 7
6

3
8
4

6
7. (a) (b)

9 4

3
7

5 6 7 8 5 7 8

DiscussSlack and Float in the context of a project. Why is PaRT jmportant in net'rork analysis ? 10 Following table gives activities involved in a PERT Projeci. Job Duration (days)

10

1-2

3
6

2-3

12
11 79 4 9
6

30
17

7- a
5-8 6-7 4-5
1 (il (ii) 6

5 4
I

2a
7 27
14

3 3
2

2-4

5 5

Draw the network diag{arn. Find out citical paih.

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Set 2 Eevised Coutse, (Information Systems for Managers) SECTION A

1 , Explain dilferent types of Information Systems. How do

compuiers help us in decision making ? Enumrate different system sofh,varegiving xamples.

20

2 . Explain the main features of MIS. Discussthe determinants

of MIS desisn as given by Zanj. Wbat do you underctand by knowledge ?

20

3.

(a) Explain Data and Information. What ar; the main

chahcterisiics of information ?

10

(b) Discusshierarchy ol

What are ti \,arious "ysLems. controlsrequiredfor an informationsystem?

10

4.

(a)

Discussprogrammedand non.programmeddecision mak'ng givins examples. Discuss the application of computers in inventory management giving examples.

10 10

(b)

5.

Expjain the .oncept of the Sgstm Development Lite Cycle. Give !.rdrioussteDs of system analysis and design givins suitableexamples. 20

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SECTION B

6- Write brief notes on :

(a) (b) (c) (d) Internet Features of JAVA Database Management Systems Data Warehousing and Data Mining

(P) Inrelligenr Suppon Svdpns (a) (9 Explain ihe featuresof Visual Basicand JAVA. Discuss Neural Nehrorks and thelr application decisionmaking.

10

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9,000

MANAGEMENT PROCRAMME Term-End Examination December,2005 MS-8 : OUANTITATIVE ANALYSTS FOR MANAGERIAL APPI-IGATIONS
Time : 3 hours MoximumMdrks: 700 Weightase 70o/o)

Note . (t) Seclion A hos six quesirons.eoch coftying 15 marks.Attempt any lour.
(ii)

Section B is cofiputsory and corries40 morks. Attempt both questions. Siotisticoltdblesmay be suppliedon demond. 9ECIION A

{iil)

I.

A group operatesa chain of filling stations in each of which are employedcashiers, attendants mechanics and as
Type ol Iilling srations Large Cashiers Medium

Small
I

2 6

Attendants Mchanics
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72
6

2
P.T.O.

The number of filling stations are Southern India Large Stations Medium Stations Small Stations Northern India

3 5 12

7 8 4

How many oI the uadous q'pes ol staII arc employed j'n SourhernIndia and in Northern India ? 2. Find the inter quartile rdnge from the following data : Class

0-15

15-30 30-45 45-60 60 75-90 90 - 105

3.

26 30 45

20
\7
4

The mmbersof a consultingfirm rent cars from three rental agencies, 60 percentfrom agenca1, 30 percent 3. from agency2 and 10 percentfrom agency II 9 percent need a tune_up, prcentof the 20 of cars from agenca1 carc from agency2 needa tun'up and six percentof the carsfrom agency3 needa tune-up,what is the probability to that a fental car delivred the firm will needa tune-up?

MS-B

4.

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 the probabilitg 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 proprties ot Normal Distribution. Dscuss when Normal Disiribulion is a good approvimation to Binomial Distribution.

6.

Wnie shon noles on any thrce ol t-helollowing , (a) {b) {c) (d) (e) Deri',ative of a quotint ol t'xo funciions Guidelins for choosing the Class lnter\,?l Criterion of Pessimism StratifiedSampling Cyclical \,?rlaiion in Time Series

MS-8

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SECTION B 7Preference prices and debenture prices of a certain companyare given blo\rr:
Preference Prics (x)

DebnturePrics (y) 978 99.2

732 85.8 789

988

98.s
77.2
81.2 98.5 96.7

838

97L

Use the meihod of Rank Conelation to determine the relafionship beh.r\reen preference prics and debentur prices, The average marks of sfudenisin a class is 79. The standard deiriation is 5. If the rnarls are djst/ibutd notmally, how many students,in a classof 200 did not receivemarts behueen and 82 ? 75 Given : P(0 < z < 0.7)= 0.2580 P(0<z<o.8)=0.288

= Plo < z s 0.6J 0.2257

MS

13,000

MANAGEMENT PROGRAMME Term-End Examination December,2OO5

MS-9 ; MANAGERIAL ECONOMICS

Time : 3 hours Maximum Marks , 100 (Weightoge 7@/o) Note : This popr 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 comprissof 40 marks. SectionsA and B comprise 5 questions ol 20 marks eoch out ot uhich 3 questions haue to be answered.

MS-9

P.T.O,

SECTION A

1 . Discuss the role of any troo of the following in Decision

Making : (a) (b) (c) MarginalReturn on Investment Th Equi MarginalPrinciple The Opportunity Cost Principle

2 . Explain the law of demand. What causes the market

demand curve for a commodi! to shift upwards and to shilt downwards? Give examples ?

3 . Explajn with ihe help of graph(s)how the long run average

cost cuwe (LBAC) is derived from the short run avmge cost curves (SRAC).

4.

From the information givn below, calculate the Marginal Uiility for each unit consumed and interpret the result.

Units Consumed Total Utility (in units)of commodity (in units)

Marginal Utility (in unitsj

1 2 3
4 5 6 ? MS-9

10 13 20 27 30 33 30

5.

Writ short notes on any three oi th following : (a) (b) (c) {d) () Entry baniers Declsion tree Price-cross'elasticityof demand Internal rate ol retum OpLimr.ation

MS-9

P.T.O.

SECTION B l. Discuss the fundamentals of Managerial Economics. Explain the scop of Managerial Economics as tools of managerial decision making. (a) (b) Explain the law ot demand. What are the djflerences betrr,/eena fim's demand culaJe and market demand curve ? Give illustrations.

2.

3,

Explain the econometric method ol estimating cost function. Why is this method more popular than the oiher meihods of cost stimation ?

4.

{a) {b)

Distinguish between perfect competition and oligopolistic comptition. Giveexamples. Explain the concept ol product differentiationwith special reference monopolistic to competitjon-

Wljte short notes on any thrce ol the lolowing : (a) (b) (c) (d) Delphi technique Opportunity cost Cyoss-priceelasticiiy Distinguishbehreen accountingcosts and economic Pricing of joint products

(e)

MS9

SECTION C

6. Dfine forecasting iechnique. Discuss the various types of

forecastino techniques. The production department of a firm reported th following information for the month of May 2005. 30

Rs. Wagebill Value of raw materials Interest Ful consumption Rent Units of output produced Calculate (i) {ii) Averagecost Averagevariablecost

20,000 60,000 6,000 10,000 4,000 2,000

(iiil What would be the total profit of the firm i{ it sells the entireoutputat a priceof Rs.60 per unit ? 10

MS.9

9,000

MANAGEII'ENTPBOGBAMME Term-End Examinatlon December.2OO5

MS-10 : ORGANISATIONAL DESIGN. DEVELOPMENT CHANGE AND
Time : 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 students who hsue registered for MS-70 lor July, 2004 semester onwards.

(iii)

Attempt ony fout questions from Section A. All questions carry 75 narks eoch. Section B is 40 morks. computsory lor all ond carries

liu)

MS.lO

P.T.O.

SECTION A SET I (Pre-Bevtsed) l. Describe centralisation and decentralisation of organisational structures with their merits and demerits. Cite suifable examples from organisational context.

2 . Discuss the notion of organisatlonal change and ii's

influence on organisaiional effectiveness. Describe it's implications for organisational design.

3 . Discuss the implications of quality of worklife in Indran

contxt. Describe how social and culturdl conditions affect the quality of worhng llfe.

4.

Discuss any hro models of organisaflon development and cite suitable case exampls. Write short notes on any three of the lollowing : (i) (ii) (iii) Insijtutionbuilding Role of a change agent Questionnaire as a diagnostic tool

(ivl Socio-Technical approachto work design (v) Mechanistic vs. Organic systms

MS-10

SECTION A SET Il (Revised) l. Explain the factors which are responsible for effeciive job designand describe any tro approaches to,job design. Discuss any two significant intenien$ons u,hich are essential managingchange. for Define organisational diagnosis. Describe its purpose and discuss th tchniqlres used for oanisati,cnal anatgsis in bnef. Describe Olmosk's change strategy modl and criticallg analys its implications. Write short notes on any tiree (i) {ii) (iii) {iv) (v) Quality of work life Institutionbuilding Task force Inverted pyramid stflrcture Job rotation of the following :

2.

3,

4.

5.

MS.1O

P.T.O.

SECTION B

6.

Read the following case carefulD and an$rer the questions glven at ihe end : Mi. Anand occupiesNo. 2 position in 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 exprssed their concem about the Ialling competitive position of the company in the industry. The main reason cited by the Chif 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.

MS-10

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 comPanY has at present.

(it

uererTnrnethe typ o, envrronmeni Lrr company Iaces no\, and the weaknesses of the present

(iit

Forecast the environmental changes in the fuhrre and the type of tchnology to be used by the company. Design the organisation structure to meet lie future challenges. It was discovered that the company is currently

(iv)

structured 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 rsponsive to change and if this is not done, the company's suMval in the market would be made more difficult.

t
I

MS-r0

PJ,O,

Quertiors (a)

How far do you agre with the Focedure adopted by the task lorce ? Explain horll the system and contingency approaches can contribute to the analysis of this case. What type ol organisation design should the task force recommend ? Explain its broad features.

{b)

(c)

MS-10

7.000

trs1il
MANAGEMENT PROGRAMME Term-End Examination Decembel,, 2OOS MS-ll : Pre.Revised GORPORATE : POLICIES AND PRACTICES Revised: STRATEGIC MANAGEMENT
Tme , 3 hours Maximum Morks : 1O0 (Weightdse70o/a) Note : There orc three SectionsA, B and C: Section A 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. Section C is compulsory Jor all, dnd carries 40 marks.

M S1 ]

P.T.O.

tI
SECTION A (Pre-Revised) Corporate Policies and Practices l. '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 exdmple.. 20

2 . Briefly describethe implicationsof the constituents the of

"Micro Environmnt'.

20

3 . What is the criieda lor determining sirengths and

weaknessesfor an organizalion ? Explain with examples.

20

4 . Whai afe th saategicimplicationsof the BCG matrix ?

Analyzethe impact of BCG Matrix with respctto sources and uses of funds. 20

5.

appropriaie leadGhip is one of ihe most important elementsin the implmentationo{ a stratgy.' Comment on the statemeni discussiDg dimensions of leadership styles.

'Developing

20

MS-]1

SECTION B (Revised) (Strategic Managemrt) l. given by Glueck. Briefly describethe strategicalternatives Explain wiih the help of examples.

20

2 . Explain PESTEL framework and illustratewith suitable

3 . 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 classif ication.

20

4 . The record of M & As world over has not been impressive.

What can be the reasons for the failure of M & A ?

5 . Wriie :hod nole. on any t&Jool Lhelollowing

(a) (b) (c) (d) BCG Matrix BalancedScore Card (BSC) Joint Ventures CompetitiveStrategies

20

MS 1'I

P.T.O.

sEcTloN c
6, Readthe following casecarefully and answerthe questions given at th end : 40 I.ARSEN & TOUBRO We are shiDeringin our ponts, os we grope dgainst nett cotnpetition frcm lnms lron USA and Korea. A very senior L&T execuiive to the author at a Management Development Programme at IIM (Ahmedabad) 1993 in

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 the big globol competitors Jor Sr.dhakarDivorar Kulkdrni,CEO. lo rhe c"se author in Apnl 1997. In 1q97. Larsen a.d Tubro(L&T).onp ol the largesl engineeringcompaniesin India (and one of the iop five private sector companies) posted yet again a grov,'thrate of over 20 per cent. This happened for the fourth consecutive year despiie acute liquidity crisis in the market, political instabilitg, uncftaint9abdrrtexecuiionof powpr prolecF oJ loreign companre:{e.g. Lnron]. a.ld so no. Since last few years, L&T was becominga lessonfor companiesworldwide in managingexpiosivggrowth and developing internal capabilitieson a continuous basis.

MS11

Simultaneously,it was setiing new challengeslor ihe academics in defining core competencies and core capabilities.An independni suruey named L&T to be one of the best managedcompaniesin Asia and another by BusinessToda, showedihat 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,4hin sales o{ nearly Rs. 1,000 cror per annum ove! the previous years, crossingthe landmarkturnover of Rs. 5,000 crore ]n the process. The Evolution l*T was sei up in 1938 as a padnership irading

firm by nro Danish engineerc, Henning Holck-Larsenand Soren Xristian Toubro, who had quit their iobs. In 1946, it became a privat limited company and by 1950 reached th statusof a public limited company. Table 1 gives the eiolutionary picture in brief. L&T presently has a sharholdr base o{

nearly 1 million and employeestrength of over 24,000 As a company, this multi-dimensional engineeringgiani is actuallythe nuclusoI a group of companiesinvolvedin building complexes,worksites.offices, and serviceoutlets

MS11

P.T.O

at differeni locationsall over India and abroad. Over the yars, L&T has acquireda commendablereputation for capabilitislor executingengineeringrelatedprojects. Tabl I l&T BusinessHistorg : The Milestones a 1938 1946 a I950 1961 1962 1963 1969 1971 * 1974 lncorpordtion a partnership as lirm Incorporation a PrivateLtd Co. as L&T goespub|c. PowaiWork set up Audco India incorporated manufacturing valves for

Retirmentof Soren Toubro; EWAC Ltd. st up for manufacture weldingalloys of TENGL founded to manufacturecrawlr undercarriagparts for catemillars Agency businessabolished,lormation of L&T Botile Closure division L&T McNeil set up for manufacturins Pressesior tyre industry ManagementOrganizationStructure and Management Planningand Control System introduced L&T Bangalore Works commences productionoi hydraulic excavators Larsenretires.L&T Fandabad pfoductionof swiichgear commences ECC merged with I-&T; L&T :hipping business with Lwoships enters

'L976 1978 1942 -

MS,11

1983 a 1987 *

t&T entrs cement manufacturingwith Awarpur plant commencing production L&T enterscomputerhardware with floppy discs and printersiL&T Gouldfor electronic test and measuredinstrumenis Cement capaciiyenhancedlo 2.2 m tons per annum L&T under DH Arnbani (as chairman) Repeated iakeoveraitmptsby RIL Seriesof strategicalliances and tie-upsresultingin formation of L&T-Niro. L&T-Chiyoda, L&T Sargent& Lund9, L&T Finance,and so on.

1988 ._
I

1989

90

1990 - 93 1993 - 95

The Takeover Attempt

During 1991 - 93. as the country progressed towards 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 business, and L&T would have provideda teal and Iogical synrgy in terms of executing turnkey projects tune lor conshuction, engineering, suppling machineryand, of course.offering suppliers'credit (io the of Rs. 1.000 crore). Through protracted investigation and liiigation iin which the Reljance Industries Ltd. was found to have collected lorged

MS-1 ]

P.T.O

proxies), the company somehoir remained in the hands of 'professionals'. The big questionmarK ds poseo by an article in ihe Economic ond Politicol Weekly was, "Whe.e does L&T go {rom u.here it has reached

Howver, 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 company startd adopting the principles ol Total Quality Management (TQM) by becoming custorrer rocuseu, reducing the costs and wastage,and adding value at all stagesfor 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 cntury.He also declaredthat th company would strive io maintairl and develop leadershippositionsin all its businesses else it wili quit. or Simultaneously,zero rebenchment was promised. The philosophy of TQM was embracedwith added emphasis on 'customerdelight', that is, deliveringmor value than expectedby the customer. Vision, Core Values, aod TQM lnfrastructure- bing a key botileneck for lndian industry - was identified as the engine of gfor,,"'thfor ihe

MS-11

company'sambiiiousplans. But bfore that, the company needed an ambition statemnt 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 sveralother organisations' vision. however, came to be owned and understood almosi every employeebecause by ol the process ol jdentifying the mission and peoples' involvempnl. The kpy e.en-enLr L&Ts vi,ion focussed ol towards a world classcompany dedicated : to r r r excellence and profPssiondli\m customerdelighi through service entrepreneurial leadership and creation of an organisation that is on the path of coniinuougly learningby fosteringteamwork,trust, and care communityserviceand nvironmental protection.

Cor Cornpetencis According to a senior executive, today the cor competence of L&T lies 'n its ability io synthesise, harmonise its divers world-class engineering. manufacturing, procurement, construction and fabrication skills around turnky projects (in cor and economic sectors) and people. This is made possible through a world class vendor base and qualiU intgrate

MS11

P,TO

technological alliances, excellent lT infrastructure (CAD,/CAM systems,PMIS etc.) sophisticated fabrication Jacilities for plant and machinry 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 excaeatorsin the courtry, ii still maintainsits leadershipstatusin this and in the vibratory compactor segments.L&T's switchgearproducts enjoy a dominant position in Indian as well as ihe iniernational markets.It continuesto be a leaderin th manufacture of Z-Line petrol pumps and its cement is consideredto be of high quality. t&T has pioneered the manufacture and supply of critical nuclear reactors and space vehicles hardwarein the country. It has to iis credit many lirsis in the Indian industry- irom the indigenously manufactlrred hydrocracker reactori naptharun power plants, th world's largest curing press, to the lirst vertical dairy in ihp countrvand .o on With ihe Projeci and Construction businessin th country growing at a fast pace and expectedto continue io do so with th countrys emphasison inftastructure, boih L&T ECC (Consfuction 6roup) and L&T s Proiects (EPC) businesses are being treated as thrust ateas. The ECC construction group has been responsibl for

MS-ll

t0

construction landmarks both in lndia and abroad, for instance, ihe Bahai house of worship in Delhi, an intrnational airport trminal in Abu Dhabi, bridges in Malaysia. hotels in Uzbekistan,and so on lts major projects hav been building of cement plants for Grasim lndustries, Gujarai Ambuja Cements, and ACC Ltd., construction ol bridges and railway tunnels for the Konkan Railway project. In projects business,L&T EpC group succssfullyexecuted ordrs from ONCC (ior piping and oil pLatforms), Tata Chemicals {lor caprjve co generarron powpr planr).and 6dndh,ndgar Dairv. In shippirig and internaiionalbusiness too, the company has made significantprogressto become one of the leading players in thejr line oi brjsiness. L&T has a long and enviable record of high iech fabrication.The workshopsin Powai with CNC prcision machinp5 hou<e iarge-sjzeprecisronldbricaiion Iacrliie,. Its major healy engineering complexat Hazira also catrs to such needs. L&T's units and its links with globally feputed organisations have contrjbuted much developingmanufacturing excellence. in

Decision-making at L&T Over the years, the company has impleme;id its vision through vafioLrs approaches. Foremost is the emphasis on empowerinent. teamlvork, and continuous training ol employes. In trms of structLrre,th

MS-11

11

PTO.

company

has

decentralised decision-making, and

accordingto Mr. Kulkarni, CEO, the concept of Strategic The Businss Units (SBUS) is being activlyencouraged. company js decentralisedfor all practical purposes. Budgetsand allocations are made at ih beginningol the year and SBUS underiakethe responsibility achieving for the targets. Only in major decisionsinvolving capaciiy and so augmentation,business diveslmeni,diversification, on does the CEO personally involvehimself.Accordingto 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 Pdntrs {DMPS) business was first proposedby the concerneddepartmeni, yet the decision was iaken ai the MD/Board level as it and obsolescence agreed lhdL produ(t and rchnological was indeed low. synergyof DMPS with other businesses The Culrure ot TQM The TQM journey, iniiiated in 1993, has now taken Iirm roots in L&T. The fforts put in training a large number of employeeshas resultedin lhe lalrnch of many qualily improvemnt initiatives. A large number ol employeeshave participatedin continuousimprovement activities. Several small group lKoizen) and crossfunctional ieams regularlyfunction in the areas of manufacturing, dsign, marketing and services. l-&T has created an environment Ior increasedempowrment to

MS.11

12

further improve customrsemjces. The TQM Awareness Programmeshave also been extndedto the stockisisand vndors to achieve improvemni ln the operaiions and

L&T slrolgly behe'.Jes,fl rhe concepL o{ rniprnai customers.With TQM knowledgespreadingwidely inside the company, employeeshave realisedthat everybodyin every department is a $pplier to somebody in the organisationif not directly to an outside customer. One employee says, "even though it is difficult to oblig everybody,I believethat we should go 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 an attitude 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, employees are being traind in multi'skills, including quality transactions and market engineering,besidesproduct engineedng. Wnh people belng regardedas the'prlme movrs', a strong HRD culiure pervads the organisation's

personnel policis, i,nd HRD systems ar designed to s\rstain motivation, encourage leaming, and achieve higher levls of quality and productivity through job

MSI 1

13

P.T.O.

involvement. The embracing of TQM philosophy.and implementalion of ISO 9000 systems by almost all divisionshas led people to work towards common goals with a customeroriented approach.

Social Commitments Corporate Citizenship Th Mumbai Chambr

pfesentedthe Good Coporate CitizenAward for the year 1994 -95 lo Larsen and Toubro Limiied for its contribution io the corporate world, but more importantly tor its conspjcuons achjevements jn jmprovjng the quajjty of lile in the community. Award for most Qutstanding Concrete Shucture

The ECC Divisionof L&T received the 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 Complx is Bangalore. The sbucture is considered to b an

engineeing marvel. The citation for the award rads 'Sree lGntera!a lndoor Sports Complex is designed in the shape of an ellipse usjng 120 'V' shaped precast iolded plate elements.Each element is 43 m long and wighs 55. t. The thickness the plate is of just 40 mm,

but strengthend b9 ribs throughout its length. Sjnce the folded plaie spnngsfrom the ring beam along the MS.l 1 14

outer periphery and connected the compression ring by at the crown, the enlie roof is self supporling,provjding an unobstrucied column{ee spaceof 119 m x 91 m with a playing arena of 65 m x 45 m jn the cenir . Environmenl Upgradation L&T has been .howing r'. commitment towards corporate cltizenship.As one goes around rhe worls oihce: ol L&T. one experre.ce' a "rd soothing ard refreshing ambience because of ihe rich foliageand delightfulflolal bloomsaroundthesesrrucrures. L&T has undertaken extensiv iree planiationprogramme. Over three lakh trees were plantd in and around the factory in 1993-94 under the programme 'Trees for Life . The villagers have been given grafted saplings of fruit'bearing tres and encouraged to pLant them. The success this ongoing eflort led to L&T being selected ol by ih Govemmeni of Maharashtra for the prestigious VanashreAward in 1990. Contrlbution ,

to Academics L&T set up L&T Instituie

ol Technology, a polytechnic in Murnbai. ln a short petiod, il has come to be widely regafdedas one ol the best lraining institutions of iis kind in the couniry, particularlyfor the full-fledged workshopsand laboratories that provide a strong pIactical orientation io theoretical

MS11

15

P.T.O.

t
inputs. There is a good demandin engineering companies for the studentsFassingout from ihis Institute. L&T also contrjbutes financiallytowards upgradation of facilitiesin sevralpolytechnics. regularlyinierlaces it with academic instituiions to promote quality education and has established rsearchchairs lor laculty in several institutionsincludingai IlM, Ahmedabad. Wthin ihe company, one ol the most inlaluable ard lasting investmentsmade by L&T is the stablishment of a Management Development Programme Centre at Lonavala(near Mumbai).Accordingto Mf- CM Srivastava, Joint General Manager (JGM) (HRD), the management developmentcentre has been visualizedas a 'temple of learningwhere people would come with ihe sole pltrpose of enhancins knowledge, learning througn expenence, self-siudy,and introspection.The mphasis,therefore, is on providing an ambience for learning rather than training'. The centre has modern learning {acilitieslike packages,a library, and outdoor training computer-aidd facilities.

MS.l 1

Manuf ac-turing Facilities Som imporianl manufacturing facilitis of t&T are shown in Table 2. Table 2 lnpo^an| MonularrunngFociltttps L&T ol

ffi

Powai, Madh (Maharashtra) Plant and heaw equipment, switchgear, petrol pumps, bo11l closures,control and automation, welding alioys, undercarriagecomponents Thane (Maharashtra) Electronics and Inputs ior undercarnage components Awarpur (Maharashtra) Cement Nashik lMaharashtra) glass Light-weight containers Faridabad(Haryana) Ankhshwar (Gujarat) Kansbahal(Orissa) Switchgear Weldins alloys Plantand equipment forsteel, paper and pulp, matrial handting and mineral industry Processing Medical electronic equipment, computerperipherals, telecommunlcalions, and test measuring instruments Earth moving and construction equipmenl. hydraulic equipmnt and ngines, diesel Gen. sts HeaW equipments Cementmanulacturing unit Valves, rubber anFplastic machjnery Plocessjng Expon oriented Jatiricalion Transmission towers Expotl footr,,ear 'Cment grindingunit 11 P.T.O.

Mysore (Karnataka)

Bangalore (Karnataka)

Hazta (Gujarat) Hirmi {MP) Chennai (TN) Iz\andla(Gujarat) Pondicherry Kalol (cujarat) Jharsuguda (Orissa)

MS-11

The Future The financial rsultsof 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\.\,th of five per ceni. However, the turnover has recorded a sharp jump hom Rs. 4249 dare to Rs. 5304 crore. From another prspective, the performance has been commendable considering the slump and intense competition in the cement industry and performance ol oiher comptitors during the period. L&T is firmlg consolidating itsell in four nrajor engineering,constructionjcement, and

business areas

equipmnt manufacture,Presently,cement accounts for 15 per cent of the total revenue.lt has embarkedon a major expansion programm that will double the capacityto 12 m tons per annum, which will make it the largest cement manufacturer in India. A Euro-issueof $135 million has been planned to fund this expansionHaving defined EPC as a thrust business for the future, it will be rele!,ant to iake a look into th ln competitivestructureof ihe EPC business. the domesiic business, L&T has a handfulof comptitorsamong whom BHEL. Punj and Lloyd. and RITES are lhe maio, onpq. The peculiar nature of EPC businessis that it is not a MS-l1

18

sector specific industrg. The core infrastructure activities such as power, ielecom, and roads will become key focus areas tor the country. Most players in this industry have specific competencieswhich cater to specialisedareas, L&T is prhaps the only company which competes in almost every sector by virtue oI tts diversifidtechnical competencand expertise.L&T's EPC business takes the {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 lor stting up its own projectsin the core secrcrs. ln ihe global EPC business,however,ure compaoy fates stiff compeiition from the global consiruction and engineering giants like Hyundai, Saipem, Mcdermoit, Cat|piller, to name a few. In such a highly competitive envionment with technotogy beins a handicap (that most Indian companiessuffer from), th logical step is to entr into strategic and technologicalalliances. Most Indian EPC players follow ihis route and L&T is no exception. Some of its alliances are with iis competitois, for insiance, Caterpillr, Marubeni. Like most Indian EPC players going global, L&T s overseas EPC oprationsare concentratedin the developingand devlopdcountries oI South-andMiddl-East Asia such as Tha and. Malaysia, Vieinam, BangLadesh, Sri Lnnka, and Gu[ countries like Qatar, Saudi Arabia. Bahrain, Oman, and Burma,

MS-11

t9

P.T.O.

Though t&T has attained impressiveachievements, are the productivitgof severalbusinesses alarmingly low on ihe internationalbenchmarklevel. In an environment of hrgh int?resl raLe) and lighl liquid'tV posilion. the eflicient managementof 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 continuous customersatisfaction, faster deliverystandards, cost reduciion, productivity improvmeni and operating with low working capiial. and aiming at leasi to be a regional player of repute and recogniiion Quesrions : (a) (bl Carry oui a SWOT Analysisof L&T. 20

process at L&T and Explain lhe Dc'sron-mdking how does it contribute to performance of the 10 cotrrparry. that you recommend What are the variousstraiegies for L&T's EPC dMsion in domestic and foreign 10 markets?

(c)

MS-11

20

8,000

MANAGEMENT PROGRAMME Term-End Examination December,2OO5

MS-21 : SOCIALPROCESSES AND BEHAVIOURAL ISSUES

Time: 3 hours
Moximum Morks : 100 (Weishtage 70o/o)

(i)

There are.two SectionsA and B

(i0 Sect'ionA hds ir.oosets : Set I is meont Jar the

.tudents who haue ragtsrered Jo, 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.
(iii)

Attempt ony four questionsJrcm Section A. AII questions corrg 15 marks each Seclion B is compulsory 40 marks. t'ar dll and carries

(iD)

MS-21

P.T.O

SECTION A Set I (Pre-Revtsed)

1 . DescribeErikon's Model oI Personaliiy developmentand

It's relevance fol work environment.

2 . What are the differeni types of stress? Describehow to

cope with stress an organisation. in Ciie suiiableexamples. 3. Explain the fedbackprocess and its importance, citing examples. Describe difierent gpes of power and their role in an organisation. Ciie examples. Write short notes on any three of following : (a) (b) (c) (d) (e) Organisationaleffectiveness lmportanceof team-work Group formation Aitribution thory lmporiance of helping process

4.

5. .'

MS21

SECTION A St II (Revised) l. Describethe role of a managerin an organisatron th in presentday scenarioand xplainhow he,/shecan change the mindset of mployees in the changing business

2. De<cnbe6dlienl{ealurps coun.erling Ine organrzarronal of in

context and it's importance for the management 01 human

3 . Descrjbeany two modelsof group development. Can the

group effectiven9s improvdthrougha carefulplanning be processes ot group development ? 4. Discussthe importance of understandingpoliiical behavjour in an organisation. Comment on wheiher the us o{ pov,rer and politicr in organisaiions ethicalor unethical. i5 Write shofi notes on any fftlee of th following I
{a)

5,

Learning organisaiions Importancof teams

(b)

(d)

Knov.,ledgemanagement

MS-21

P.T.O.

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 (havinga turnover of Rs. 20 lakhs) R.P. Communications as a trainee ariist in 1995 and ioday he had come to occupy the position of Creative Head at R.P. (with a turnovef of Rs. 15 crores).As a Communications young trainee (in 1995), 6iri {as Gridhar is addressed by his colleagues)had been an amicab)e personaljty, he had always djsplayed keenness to gajn knowledge - leayn more, many vjsjbletraiis of creaiivi\, - in the sensetry to make "unique"/different from oihers presentations, willing to share information and so on. lt was typically these qualiiies of Giri which made him approachableto others and appreciated by one and all, and also saw him rising in ihe organisation sh1lctureCrealrve Drreclor ar R P. Communications, who had known Giri tight frm the time he had joined R.P. Communicationsas tEinee, i!,as Nicky lhe sqiprsed at recailing the contents ol the )usi conchded meeting with the membersol the qeAl\ve team at R.PCommunications.Meena (a recnt 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 I an\tar.

M S2 1

important information from us, and createsconflict when he has to interact with other teams at R.P." Mohan, a senior creativemanager at R.P. had said that Giri seemsio have changed,he smsto preler to adopt a lolcing style, like a conlroiler, and a\pecis all th assignments be compleiedbefore time, and doesn't to enteriain any questions/or quenes from any ot the creativ tam members. Nicky {ound ii hard to belive ihat a likeableperson such as Giri could causeconflict. Nickg had promisedthe craiivtam to look inio the matter and have a talk with Giri also. Alter an informal chat with Giri, Nicky feit that one of the causesof Giri's behaviour could be Rol Ambiguity. This sh had concludedfrom one statementmade by Giri "You know Nicky, my team is good, however, they expect me io behave as I was before. I am trying my best to convince them thal in my new role I am expecled perlormeven ro beiter than before." Nicky dcidedto seek the help of the CEO of Leam and Grow Leadership Centfe (LSLG), a training firm, who rgularly holds workshops meant for helping professionalsand executivesof firms to diagnose their own bhaviourpatterns as well on how to manage siress that could cause various levels of conflicts for the individualas well as the organisation.

MS,21

P.T.O.

Questions (a) What do you think is th majoi causeof the problem in the above case? Do you asree with Nicky that Role Ambisuity may have causeda changein Giri's behaviour? Why ? Can you suggesiways in which f'rms such as R.P. Communications can avoid such occurrnces in tuture ?

(b)

(c)

M S,21

3,000

MANAGEMENT PROGRAMME Term-End Examination December, 2OO5 MS-22 : HUMAN RESOURCE DEVELOPMENT
Time : 3 hours MaximumMarks: 100 (Weishtose 70o/o)

There orc three SectionsA, B ond C. Secfion A is meont for students who haLe resistered lor MS22 prior to Jonuary 2005, i.e. upto July 2004. Section B ts meont lor students who hdDe registeredlot MS 22 Jrom Jonuory 2005 onwords. Attempt ong thrce questionsfrom SectionA or B contingent on the rcgistrotionperiod. All questions carry 20 morks eoch. Section C is compulsory 40 norks. tor all, ond carries

MS-22

P.T.O.

SECTION A
(pr-Revised) l. "People need competencies to perform tasks. Without continuous developmentof competenciesjn people, an organisationis not likly to achievits goals. Competent and motivated employees are essential lor organisational suIvivai, grov"th and excellence..,Comment on this statement and discuss the underlying issues, with suitable examples.

2- Discuss developmental supervision as tacilitdung process to

help employees improve their performance and empower them. Suppori your an$rr with suitable examples. Explain the rdtionale for developmntar approach to Indushial Relations. Suggest a core programme tor developing top management, middle managemeni and unions for Industrial Rlations Management. AIso discuss ihe developmental mechanism for improving IR.

4 - Define and describe the process of counseiling and

mentoring, with suitable a\amples. Write shon noreson any ,[re of ihe lollowing : (a) Task delineation (b) lc) (d) (e) Analysis as a supeMsory tool ConllictManagemeni Performance Appraisal System Emerginstrnds in HRD

MS 22

--

SECTION B (nevissdl l. Explain the concept of career in the context of career development perspective. Dsclrss various jndividual and organisationai sirategis for careef development.

2. Define and descib ihe objectjves and psychological basis

of reward system. Briefly discuss vatious aspects which rein{orce dsirable behaviour, hjgh prformance, and

3 . Dfine HRD Audit. How can HRD Audit be used as ar OD

lntervention in an organisation ? Bdelly describe the significance of HRD score-cardo{ a film.

4 . Explain the concept ol Knowledge Management. Brifly

discuss various approaches io knoutedge managemenl, lritb sr:1abl examples.

5. Wdte short notes on any tiree of the following :

(a) (b) {c) idl (e) Re-ofganisation o{ work Value-anchored HRD processes Need tor competency mapping Syslms Theory and Human pedormance Verticalre-skilling

MS-22

P.T,O

SECTION C 6. Read the lollowing case carefu(y and answer the questions given at the ehd. Training for Whom ? Califomia-based elecitoDics defense contractor, has enioysd a smooth grow'th curve owr the past fjve years, primarily because of favourable a derense Jundiog during ihe Reagan administration's build-up of U.S. military defeNes. Microelectronics has had numerous contacts to design and develop guidance and radar slsfms for military weaponry. Atthough the {avoutable funding cycle has enabled. Microelectronics to grow at a stady rate, fhe coDpany is finding it inEaringly di{ficult to keep jts reallg good engineers, analyses Bated on ayterEive tunover penmng conducld b, Ned Jackson, the human resourcss manager, Microelectronics'problem seems to lte its inability to keep engineers beyond the "critical" Jjue yeat 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 ben to hire the best and bdghtest enginers from the best engjnee ng schools in ihe United Siates. Microelectronics,

MS.22

Ned belives ihai theseengineers ofien get lost in ihe join the firrn. For example, most shuffie at the time they (i{ not all) of the new hires must work on non-classified projects until ciared by secLrrity to join a desrgnated major project. Security clearanc usualiy iakes anlirhre from slx to ten monfhs. ln ihe meaniime the nEjor project has started, and ihes young engineers lrequenily rniss oui on its design phase, consjderd ihe mosi creative and challenging segment of the program. Because o, the Datufe of projct work, new ngineerg oftn have difficulty leaming ihe organizationai culiue - $rch as who to ask when you hav a prob)em, what the general dos and don'15 are, and why the organization does things in a crtain way. After headjng a task force o{ human tesolrce prcfessionals within Microelectronics, Ned has been designated lo present to iop management a proposal designed to teduce turnover among young engineering rcruits. The essence his plan is to create a mentor .ol program, except thai in this plan the mentors will not be the seasonedgraybeardsof Microeiectronics. but rather those engineers In rhe (ri(lcdl lhree.lojive-yea/ sewice window, the pnod ol highest iurnover, These engineers wjlJ be paired with new enginering yecruiis before the recruits actually repoft to Microelectronics lor work.

M$22

P.T.O.

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(td 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 possible obtecliors ro the progrdm in

oraer to make an intellisent dejense of it. Only time would te[ Qnestions : (a) ldentify the salient issuesfrom HR point of viw lor this case. lf yor-r wefe io study ihis turnover problem, how would you qonduct a needs analysis or evolve a counselling programme ? What are ihe causs of dissatl$faction and lumover in Microelecrronics ? Do you find the mentoring prograrim suitable to Ieduce tumover ? JustiJy your an$rer.

(b)

(cl

{d)

MS-22

3,000

MANAGEMENT PROGRAMME Term-End Examinalion Decernber,2OO5

PLANNING MS-23 : HUMAN RESOURCE

Time : 3 hours MoximumMarks, 700 (Weightose 70o/a)

(i) . . (i, (iiil

There ore two Sectians A ond B. Secfion A hqs tu)o Sets I and I. Set I is mednt lor the students who h4[e registercd lor MS23 prior to Julg 2004 i.e. upto Januorg,

2004.
(iD)

Set Il is meant lor the students L|ho haue rcgistered Jor M9% fron July 2004 onwords. Attempt ony thrce questionsJrcm Section A. All questlons corrg 20 morks each. Section B is compulsory 40 marks. Jor all and corries

ID)

(vi)

MS.23

P. T.O.

SECTION A (Pre.Revised)

(set D
Define and differentiate bt\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 in 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.

3. Discuss the scope of Human Rsource Audit. While

auditing Reward systemsfor employees in a manufacturing organisation, which factors should be taken into account and why ? Explain with suitable examples.

4.

Define and discussthe ned for Hurnan Resource Planning in an ordanisation. Briefly discuss various approaches to HRP

5 . Wrile shon noreson any thre of the following :

(a) (b) (c) (d) (e) Trainins methods Valu dtrminants of HRP Human Resource Accounting Labour Market Behaviour Promotion and Reward Policies

MS-23

SECTION A (Revisd) St Il 1. Define and discuss the objectives of Human Resource Planning at organisationallevel. How does it help in determining and evaluating fuiure organisational capabilities, needs and anticipated problems ? Explain with suitable examples. Define and descnbJob Analysis.Briefly discussseveral methods in which information about a job is collected and evaluated. 3. What is the purpose and process ol recruitment function ? Discussvarious methods of sourcing mdnpower. How is monetary value assignedto different dimensions of Human Resources costs, investments, and worth of the employees ? Brifly explain Cost and Economic value approaches of measurement. Writ short nots on any t rree of the following I

2.

4. ' -

5.

{a) MBo
(b) (c) (d) {e) SuccessionPlanning Competency Mapping Job Evaluation H.R. Inventory

MS.23

P.T,O

SECTION B 6. Read the case given below and answer the questions given at 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 Engineersin 1988. On post of Deputy Chief Quality Controller has fallen '"?cant due to the retirementof the incumbentand the management decided to recruit a qualified, knowledgeable and experienced ptofessional from outside so that the present quality standard 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 expenencein the Quality Control Department daling 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 mchanical 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 Controllr - since as per company rules it was a DR (Direct Recruitment) vacancyalso. may be improved

MS-23

Slectior

oI Outslder

Out ol the applicationsreceivedin responseto tle advertisement, six candidates wer called for interview including the hr,,o intemal candidates, Mr. Kapil Kumar and Mr. At'bas Ali. The person selected was an outsider, one Mr. Ratnam, who had over 12 years experiencein SQC, quality assurance etc., in the two wheeir private manulacturing indrrstry. Mr. Ratnam joined within two months time expectingthat in his new position he would be th main controllerlor qualitg.Howevr. afier joining the organisationhe cam to know that h would be the secondseniormostperson in the hierarchyfor controlling the quality and would be repofting to one, Ktqral Singh, the Chief for Qualiry Controls. Mr. Kirpal Singh had come 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 exprience, oui of which 20 years were spent in Quality Control Department of two industries. He joined the present organisationin 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 position of 'Chief Controllerol Quality' very soon.

MS 23

P.T.O,

lnte

erence from top

Ratnam could not put forth many good suggestions (for quality controls) becauseoI 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 the company, tfie various componnts required for axembly of the company's two-wheeler scooter and the expected quality standards, dlawbacks in the prsnt 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 in the organisation. Meanwhile, the management obtained a licence in 1989 for ptoducing Thtee-Wheeler Autos. As a resuli of this 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 promotd as Deputy Chief Quality Controller in the present two-wbeelr scooter plant in 1990 (after creating oDe additional post of Deputy Chiel Quality Conttoller for the new Project).

MS-23

In 1991, the State Covernment,which controlledthe company in question, changed th Managing Dkector. During the regime of this new ManagingDirector, Kapil Kumar was promoted as Chief (Quality Controls) next year, when Kirpal Singh retired. This decis:onwas based on the recommendationsof Kirpal Singh and partly attributedto pressurefrom O.A., for further promotion of Kapil Kumar basedon his vast experiencein the euality Control 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 quarter allotmeni schemewas basedon the length of Ser,ice, i.e., date ol joining. Ratnam had asked lor a suitable quarter 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 but his rquest was tumed down, since he 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 residingin RCC-roof quarters.Soon RCC-roof quarter, -

MS.23

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 viwed 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 short life. Notably the comdaints had risen ten-fold in that yeat as compaled to components as also their that in 1988. Questions; (aJ Was the management J'ustifiedin iaking a decision to recruit a qualified and experienced person from outside as Deputy Chief Quality Controller ? 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 take this decision? to How ao you view the rde oI O.A.s in supportjng only the local and internal candidats and overlooking the interests of direct rcruits 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 ? How would you react to the management's scheme for quarter allotment and whg ?

(b)

Q)

(d)

MS.23

3,000

MANAGEMENT PROGBAMME Term-End Examination December,2OO5 : MS-24 : PRE-REVISEDUNION-MANAGEMENT RELATIONS : BELAflONS REVISED EMPLOYIVTENT
Time : 3 hours MoximumMarks: 700 (Weightage 70o/a)

Note :
(i) (ii)

There are tuo Sections A qnd B. Section A 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 who haue registered from Jonuarg, Jor the stualents 2005 ond onwards.

lii,

Attempt any three questionsJrom.Section A All questions coffg 20 morks eoch. Jor all and carries

(iD) Section B is compulsory 40 morks.

MS 24

P,T.O.

SECTION A (Set D (Pre-Revtsd) l. Discuss the organisational factors which affect the union-management relationsciting suitable examples. Describe originand groMh of employers the associarjons in India. Discuss presntpositionand challnges the laced by theseorganisatlons the aurrentscenarlo. in 20 ldentifu the skills of negotiation.Dscuss the negotiation process and cite suitable organisationalexamples in supportol your answer. 20 Identify the shategies lor making participation more

2.

3.

4.

20
5. Write short noteson any ttree of the following : (a) Tripartiteconsultation (b) Functionsof trade union (c) Managingcollectivebargaining {d) Arbiiration () ApFoaches to indushialrelations

MS 24

SECTION A

(sETn)
(Revtsed) lDiscuss th role of Indian Constitution in evolimg labour policy. Identily th impact ol ILO on ind$trial relations.

20

2 . Brtelly explain how internal allairs of the union are

managed. Describe ihe new rols of trade unions.

3. Define collective bargaining. Desqibe the types of

colbctive baryaining citing suitabl organisatirn examples.

20

4.

Define adjudication. Analys the principles ol industrial adjudication.

5. Write short notes on any three of the following :

(a) {b) {c) (d) (e) Red Hot Stove Rule Obiecijves ot Worlers' ParticjpatioD in Management Activities ol Managerial Unionism Conciliatton Grievanceprocedure

20

MS 24

P.T.O.

SECTION B 6. Read the case carelully and answer the queshons given at th end :

Norman (l) Limited

.I''IE COMPANY

The Iirst wall tile manufacturing piant in India was established Kay Pee in 1963 at Than in Mumbai by under the name Norman Tiles. Thp <ompany was 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 taken for the fitter and mechanic positions.Apart from thege,

MS-24

there were sixty stalf members looking afier th other suppori functions. The wo*ers were paid )ow wages and were employd on temporary basis at the beginning and ijil 1986 most ol them were noi made permanent. The human resource department 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 smi-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 expefinced 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 associated with manual group was that of skilled operations and the second workers mosily workerc looking after technical operahons. The second gtoup was paid higher wages than th first group. This disparity led to disconteDtment among 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 However, this event drew to form union. management's attention

MS 24

P.T.O.

towards workers' grievancs and management hlped 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,/ tchnical ones were uneducatd, they were unaware ol roles and responsibllities union of The management staried negotiations with the newly formd union and the first wage sttlement agreement was signed on January 19, 1990. In this agreement, though the management agreed to increase wages 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 laderless. After some time ihe workers started voicing their concem about the target-linked '"rJages, but in the absence ol a leadr 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 movement by workers in January 1991. This affectedthe productivity of the plant svrely. Due to the absence of union leadership. management too lound it difficult to control the situation,since extemal leaders'influencewas very much visibl and company's HR marnger R.C. Jain refused to talk to the outsiders. He remained adamant

MS.24

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 under pressure from extemal leaders as well as workerc of the firm, Joshi withdrew the fixed DA and accepted the variable DA provision. provision. Ultimately, 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 seventeen years and was a sinct drscipiinarian. The organisational situation demanded quick action io stop go_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 workr was suspended fuom the plant which instrlled a sense oI 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

MS 24

P.T.O.

labour

court against management's action on the presumption ihat labour courts arc generallg sympathetic to the workrs. Ai the same time, Trivdi started dialogue with the extemal leaders to end the stalemate. The external leaders put pressure on the inanagement to reinsiate the suspended workers. 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 was also cancelled.Though these efforts helped management 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 trid 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. Ultimatly, 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 bcause the company had nevI given any grain loan to the worke6. The demands were rrot accepted by the management. The workers

MS-24

gheraoed Trivedi but the management did not accede to the demandsand calledthe police to intervene. On March 17, 1992 the workers went on strike on the call of the union without giving any 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 wre low wage earners, they were 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 the managementdecision and were willing to restart production. Management re-employed the sus!,ended workforc gradually over a period of filteen hrenty days. Since, th workrs did not receive wage. lor rle strike penod. they had realised the importance of iheir mployment. In October, 1993 the second agreementwas 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 stringnt. Therelore, the organrsalrondecided ro go in for ISO 9000 certification for their Rampur plant. The

MS 24

P.T.O.

management

realising the

importance

of

workers'

involvement in ISO 9000 cedification procss stafed training workrs on a continuousbasis in 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 receivdby the plant in January, 1997. Meanwhile,the behveen the managment and the union for a period of three years in January, 1997. To rcinforce the training process, HRD third wage agrement was signed well_equipped in-house b-aining tools was developed in January, 1998. Training programmes iocussed on ghoFFfloor excellence and iotal Poductive cell with maintenance {TPM). Quality m;nual for intemal use was also developed. The goals for 2000-2001 for the plant were devised as under : a a a a a Laying of natural gas pipeline ISO 14000 certification Control of losses Reduction jn personnel expenditute Team building training

The Rampur plant ol Norman had come a long way sinc its inception.ln the words of Trivedi "despiteall the bottlenecks w have achieved a satisfactory level of productivity. We still intend to continue doing so by

MS-24

'10

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 ? Was it a nght strategy to nMure pro-management tmion leaders? Th strategy to instill fear in the minds of workers to improv their productivity was jn the interst of the organisation, Discuss. (d) ln your view, what action should have ben taken by the managemnt at various stages to improve labour-managment rlations ?

(b) ' (c)

l\ls-24

1',I

3.000

MANAGEMEM PROGRAMME Term-End Examination December,2OO5

MS-25 : MANAGINGCHANGElN ORGANISATIONS

Time : 3 hours Maximum Marks : 100 (Weishtase 70a/o) Not | (i) (ii) Tbis paper consisb of tuo SectionsA ond B. Section A con$ists o/ tuo sets. Set I is to he attempted by students Lrho hqve rcgistered t'or MS-25 belore Jsrtuorg, 2004. Set It k to E ottemprerl bv studen/s uho haue registered lol MS-25 fron Jahuary, 2004 on(a1d' (iii.) Ansurer ony four questionslrom Section A, eoch corrying 75 marks. (iu) Section B is compllsory 40 marhs. lor att and conies

MS 25

P.T.O.

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. What is an organlzational intervenlion ? Brielly discussthe meihods o{ task force and ifternal {acilitator development with examples. Describ th roLe of an intemal change agent and its significance. Discuss the skiLls required for a successJul changeagent. ol What are the reasonsfor the failureof implementation change jnterventions ? What interface would you suggst and employees suchan instance? in behrenmanagement Write short notes on any three of the following , (i) {ii) Work redesigo Sourcesof rsistanc change to

2.

3.

4.

(iii) Observationmethod (iv) Role of chief implmntorto change (\,) Rol eJficaca

MS25

SECTION A SET tl (Revised) l. Why do peopleand organisations resistchange? Dscribe few methods managing of rsistance change. to
Justifu the process of change evaluation and briefly discuss its process Highlight action research in e'./aluaiingchange-

2.

3. Discuss the role of business process re engineering in

organisational significance. 4. change and critically evaluate it s

Dlscuss ihe factors of a successfr.rl company in continuously adaptingto chirnge.Illustrat. Write short notes on any ,hr of ihe following : (i) (ii) Turn'aroundmanagemeni Mrgrsand Acquisitions

5.

(iii) Role negotiationtechnique (M (v) Transactionalanalysis Role of a leaderin changemanagemenr

MS-25

P,T.O

SECTION B Readthe followingcasecarelullyand answerthe questions glven at ihe end i TransAct Insurance Corporation (TIC) ptovids United throushoutthe south'eastern automoblleinsurance States.Lnst year a new presideniwas broughi in by TIC'S Board of Directors ro improve lhe compdnv. compiitivenssand customer service. After spendjng several months assessing the situation, the new president introduced a strategic plan to improve TIC'S competitive position. He also replaced three vice 'presidenls. Ram Kumar was hired as vice president of claims, TIC'S largestdivision with 1,500 employees,50 claims center managers, and 5 regional directors. Ram Kumar immediatly met with all clajms

managersand direiors,and visited employeesai T!C's 50 claims centerg.As an ouisider,this 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, Ram Kumar that the claims divisionhad been managedin discovered top down mannr.He could also a relativelyauthoritarian, and morale was extremely low see that employee-managementrelations were guarded. High workloads and isolation (claims adjusteis work in tiny cubicles)were two other common complaints. Several

MS-25

managers ac.knowledged ihat the high turnover among claims adjusiers was partly du to thes conditions. Folloling discussiohs r.i,jth TIC'S president,

Ram Kumar decided to make morale and supen sory Ieadership his top prioriiy. He iniiiated a divisional newsletterwith a iear off feedback form for empioyeesto register their commnts- He announced an. open-door -policAin which any claimsdivisionemployeecould speak to him directlyand confldentially without gotng firsl to the immediate supervisor. Ram Kumar also fought organizational barriers to initiate a flextime program so that mployeescould designwork schedules around their needs. This program later became a model for other areas of TIC. One of Ram Kumar's most pronounced symbols of chaoge was rhe Claim5 Mdnagenenl Credo outlining ihe philosophy that every claims manager would followAt his first meetingwith th completeclaimsmanagement team, Ram Kumar presentda list of what he thought were imporiant philosophies and actions of efle.tive managers.The managementgroup was asked to select and prioritize items from this list. They were told that the resulting list would be the division's management philo5qptry.16 all managrswould be held accountable for abiding by its principles.Mosi claims managers\xere uneasy about this process,but they also understoodthat

MS-25

P.T.O.

the organization was under competitive pressure and that Ram Kumar was Lrsingthis exetciseio 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 circulatedto senior managementin the organizatiorifor their comment and approlal and sent. back to all claims managersfor their endorsement. Once this was done, a copy of the final documeni was sent to every claims divisionemploye.Jim also announcedplans 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 crdo exercisewas a result of Ram Kumar's initial enthuslasm and that h would bi: too busy to introduce a survey aftr settling inlo the job. One year after the credo had ben distributed, Ram Kumar announced thai the lirsi annual suwey would be conducted. AU claims employeeswere to complete the survey and rhtrn it confideniially to the human resourcs department where ihe suftey results would be-compiled for each claims center manager. Th survey asked the extnt to which the managerhad lived up to each of the 10 items in the credo. Each form also providedspacefor

MS-25

Claims center managers were surprised that the suney Ram Kumar had promised a year ago would be conducted,but they were even more worried about Ram s statement that be shared with employees.What "results would employeessee ? Who would distribute thse results ? What happens if a the results would ? maoager geis poor ratingsfrom his or her subordinates "We'll work out the detailslatr," said Ram in respons to these questions. "Even if the survey results aren't great, the information will give us a good baselinelor next ygar's survy. The claims division suney had a high responserate. ln some centrs, every employee completed and reiurnecl a form. Each report showedthe claims center managis average score for each of the 10 items ahd how many mployeesrated the manager at each lvel of th five poini scale. The teports also included every comment ar made bv emploupes. rhdLcenler. No one was prepared for the results ol tbe tirsi receivedmoderateor poor ratings survey,Most manager6 above 3 0 on the 10 items. Very lew managersaveraged (out of a five-pojntscale) more than a couple of iiems on This suggested that, at best. employeeswre ambivalent about whether their claims center manager had abided by rlems.The commenrs $e tO management nhilosophy were even more devastating than the ratings Comments

M S.25

P.T.O

ranged lrom mildly disappojntedio extremely critical ol their claims manager. Employees also descrjbed their long-standinglrustraiion with TlC, high workloads, and isolatedwork'ng conditions.Severalpeople btuntly staied that they were skeptical.about changesthat Ram had the proftised. "We've hard the promises 6efore, but now we've losi faith." wroie one claims adjuster. The surveyresults .weresent to each claimsmanager, the regional director, and employees the claims cenier. at Ram Kumar instrucied managersio discussrne survey data and comments with their regional manager and ditectly with employees.The claims center managrs, who thought employees only received average scores, were shocked to learn that ihe reports inciuded individual comments, Some managers went to. their regional director, complaining that revealing ihe prsonal comments would ruin iheir carers. Many directors sympathizd,but the results were already available to employees. Whn Ram heard about these concerns, h agreed that the :esuhs were lower than expected and that the commenis should not hav been shown to employees. After discussing the situation with the regional dlrectors, he dcided that the di$cussion meetingsbetr.reenclaims managrs and their employees should proceed as planned. To delay or wiihdraw ihe reports would

M925

Lmdermine the credibility and trust ihat Ram was trying to develop with enlployees.However, the regionai dhector in that ara attendedthe meeting in ach claims center to minimize direct conflict between the claims center manager and employees. Alfhough many ol these meetjngs wnt smoothly, a few created harsh leelings biween managersand their employees. The source of some comments was easily identifidby thejr content, and ihis createda tw delicate moments in severalsessions. few months alter thse A meetings, two daims center manage.s quit and three others asked for transfers back to non,managmnr positions in TIC. Meanwhile, Ram wondered how to manage this procss more effectivejy, particularly since employeeserper red another >urveyrhe fohowingyear. Questions : (a) Identifythe forcesplshing for changeand the forces resiraining the change effqrt in this case. change ? Why or why nof ?
(c)

(b) Was Ram Kumar successfulat bringing about

What shouldRam Kumar do now ?

N,,ts-25

3,000

l'*l
MANAGEMENT PROGRAMME Term-End Examination December,20O5

MS-26 : ORGANTSATTONAL DYNAM|CS

Time , 3 hours

MoximumMorks: 100 (Weishtose 7qa/o)

(i) (ii)

There ore h\)o SectionsA ond B. Attempt an9 thrce questionst'rom SectionA. Eoch question carries 20 morks.

(iii) Sectian B is computsory and carries 40 marks.

SECTION A l. Wnv i\ rhe .rudy ol groue impo"ranrfor a managerr Are group processes function of interaction? Explain wiih a

2.

Dpscribp thp processof Burn out. Eyptain with exampte variousstagesand sourcesoJ Bum-oui.

MS-26

P.T.O.

3.

variolrsmeans ihrough What is emFowrment? Describe which leaders enhance their own, as well as iheir subordinats'powers.

4.

Explajn the concept of divrsity. Briefly discussvarious approachesio dal with diversiv in lh organizational

5.

Write shoft notes on any three of the following : {a) (bl (c) (d) (e) Groups and Committees Conformiry and Obed.oncp Role Analysis Socialresponsibilities organisations of Alienation

M5-26

SECTION B 6. given at the ert. Read the caseand answerthe qustions JagannathUaggu for his tdends)is an over-iimbitious young man. For him ends justify 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 obtaindhis degreein engineeringin Jaggu was 1982. Recognising improvedqualificatibn, his prornoted Cngrn"er-S"re: 3954. rn as Jaggu excelled himself in the new role and becafie Promotionscame ihe blue-eyed boy of the management. to him in quick succession. was made Manager'Sales He in in 1986 and Sniof Manager'Marlieling 1988. Jaggu did not forget his academic pursuits Atter he being promoted as Engineef'Sales, joind the MB.A (parftime) programme. Aiter completing his M.BA, Jaggu became a Ph.D. Scholar and obtained. his in Docrorate 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 inclldd I L

MS,26

P.T.O.

delay in

executing orders, poor quality, customer rejctions,etc. Most of the complaintswere concocted. Ravi ,vas convrncedand rpqLesred Ja99u lo J-podli,e produciion sectionso that rhings could be straighind !p ihere. Jaggu became the sction Head and Suresh was shiited to saies. Jaggu stariedsFreading wingg. He prcvailedupan his Ravi and got saleg and quali4r under his conirol. in addiiion io produciion. Suresh, an equal in siaius, was now subordinated Jaggu. to Succesg had gon to Jaggu'shad. He had everythjng going in his favour - posttion, power, mony, and qualification. He di{idd \rorkers and usd fhem as paL\,ns. He ignored Prahalad and established direct link with Ravi, Unable to bar th humiliation, prahalad qujf the company. Jaggu was promoted as General Manager. He becamea mgalomaniac, Thrng, had to end at >ome Duinl. lt hdppenedIn Jaggu's lile too. There were complajntsagainsthim_ He had inductedhis brother-in-law, Ganesh,as an enginer. GaDesh was bv nature corrupt, he siole copper wofth Rs. 5 lakh and Lvasslrspended. Jaggu tried io defend Gahsh but fajled in his etfoft. Corruption chargeswere also levelled against Jaggu who was reportd to have made nearlg Rs. 20 lakh tor hhnsetf.

MS-26

On the new year day of 1993, Jaggu was revefted back to his o)d posliion - sales.Suresh was promoted and was asked to had productjon. Roles got reversed. Sureshbecamebossto Jaggu. Unabl to swallowihe insult,Jagguput in his papers. claiming Back home, Jaggu startedown consultancy himself as an auihority in quality managemnt. He poachedon his previouscompanyand picked up 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 another hump in the cu)ve is a big qustion? Qres,ions {d) (b) j

What is lhe core i5\ue in rhe caset Drsauss. How do you se the rise and fall of Jaggu vis-a-vis prevailingpowr dynamicsand overallorganisational policiesol th company? Support your answerwith logic.

lc)

What \,,rouldlou do if you weYe (i) (ii) suresh Prahalad,and

(iii) Ravi ? (dl Wl-ar would be tour d(non if you were rhe Ma-dgrng Director of the company?

MS,26

3,000

MANAGEMENT PROGRAMME Term-End Examinaiion December,2OO5 MS-27 : WAGE AND SALARY ADMINISTRATION
Tine , 3 hours

Moximun Marks: 100 (Weishtase70o/d

Note : (i) (ii) There arc two SectionsA ond B. Attempt sny four questionsJrom &ction A, eoch question corrging 75 morks. Section B is cor/rpulsory, ond corries40 marks.

liii)

SECTION A 1. Explain the role of indMdual and group reward systemsin an organisation. What is ih fecent trend in reward management ? 2. Critically examine various methods of job evaluation.

MS,27

P.T . O

3 . Discussthe various components of compensation stlucture.

Give an account of various factors to be taken into considration determining for compensation snucrure,

4 . 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 ProvisionsAct, 1952 ? Discuss the key economic and Lhalioural propounded by ihe wage theorists. 6. issues

What are ihe consideraiions for compensation policy at macro and micro level ? What are the practical dilficulties in translating these policies into action ? Wrlte short notes on arrg three : (a) (b) (c) {d) (e) Wage survey Relatingpay to competencies Fringe bene{its Executivecompensation VRS

7.

MS-27

SECTION B E. Please read the caseand answerth quesiions givnat 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 incentive scheme.The managementwas pleased with the assurance of the Union leader to personally undertake the iask of implementing the scheme. The managementpromised to give him a free hand 'f he could increasethe production. The Union did increaseproduction to 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 rnanagemnl sraff as d result became wary of i.5 interaction with ihe Union. Non-membersof the Union were discriminaiedby the Union. lts mmberscould Set special favours like disposal of promotions. and so on. their grivances,

The incentive scheme benelitted primarily the Union members. The scheme was inequitable as some workers got disproportionately larg incntivs, some low and some no incentive at all. Th second feature was that as

MS.27

P,T,O,

the incentive was linked to the Consumer Price Index ICPI) the disiortion got further accentuated. However, when the Union tried to misuseits new found powers the managementstruck back one day by taking disciplinary aciions against all the leaders and the Union found all oI a suddenthat 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 but as a price extractedsome bnfitsfor its members exclusively. had a say on all aspecis of the Ii management function like reduitment, selection, transters, job classification,and so on. In return the Union saw to it thai production becam its exclusive responsibility and 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 improvementin the wage scales. Because the inceniive oI schme, 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 rfusedto delink the CPI from the incentiv scheme as some o{ its

MS27

members were earning an amormt equal to, if not more than the salary as an incenijve itself. At the same time workmen with no incntive and being grade barred began to lose. And this resultedin discontentment amongst the workmen. Bui the dilemmacould noi be resolvedand {]is led to an explosivesituation. A third Union emergd on the scen and this led to lntense inter-unionrivalry_resulting indiscipline,loss of in production, and violence wjthin the factory premjses, as a result of which the companydeclareda lockout. When the plant ropened after four months, the Union in power lost its credibilig and the new Union had the completsupport of the workmen. In th meanwhile, the new HR Manager who joind the conrpdng ourmg this period ol strife found that a new approach to deal with tie problem was very helpful. Normalcy in discipline and production seemed to retum whn 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 ted to the formaiion of committees io look arer vanous matters relating to the canteen,working conditions,and welfare functions.The managemnt also withdrew at th instance of th HR Manager, charge sheeis which were in force for over h.r,oto thre years. The abuse ot discretion

MS-27

P.T.O

by the old Union leaders was also rectified This had an immediate effect and the workmen responded favourably and they evn 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 dfect of not having revisd 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 agre 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 rmained in a quandry as regards how to convince the workmen, to win ovr the constituenca of workmen, and firake managers effective and regain supremacy in production.

MS27

Qustions : (a) (b) Identifgthe problemsand their causes me case. rn Under the given situaiion,how are ihe problemsto be remedied? As a human resourcmanager, how do you deal with this case, especially when the Union is demandinga settlemeni? Suggest various principles and strategies the managemnthas to keep in mind while formulating a wage incentiveschemefor the employees.

(c)

(d)

MS-27

3,000

MANAGEMEM PROGBAMME Term-End Examination December.2OO5 MS-28 : LABOURLAWS

Time : 3 hours MaximumMorks, 100 (Weishtoge 700/0)

No' : (i) (ii) There are two Sections A ond B. Attempt ony fiDe questions froh Section A. All guestions in Section A cotry 75 morks each.

(iii) Section B is corl'pulsory anal carries 25 morks.

SECTION A

1-

What are the constitutional directivs in the field oi labour laws ? What basic changeswould you suggestin the labout fdws to meet the present rcqorenetts industry ? of Jabour and

MS 28

P.T.O.

2. Attempt any tr(Jo ot the {olh^rjng :

(a) What are ihe welfare measures under the Factories Act, 1948 ? What are the salieni fatures of Shops and Establishments tnw ? What are the statutory restrictions on rhe employment of contmct labour under ihe Contract Labour (Rgulation and Abolition)Act, t97O ?

(b)

{c)

3 . What is the procedure for certilication of standing orders

under the Industnal Employment (Standing Orders) Acr, 7946. Give a list oI acts or omissions on the part ol a worknan, which amount to misconduct.

4.

Give an account of different authorities under the Industrial Disputes Act, 1947. Whal are th powers and duiies of such authoritiest Examine the main features of the Pa!,rneni of Wags Act, 1936. Hightight the provisions regarding deduction from wagesunder the Act.

6. Discuss the various benefits payable under the Workmen's

Compensation Act, 1923. What exactly is the meaning of the expression "accident arising out of and in the course o{ empiolment" ?

MS-28

7.

Write short noteson any three of the following : of {a) Principles naturaliustice {b) (c) Procedure registrationol a irade union undertbe for TradeUnionsAct, 1926 Classification labourlaws of

(d) Strikes and lockouts under ihe Industrial Disputes Act, 1947 (e) Equal Remuneration 1976 Act,

MS-28

P.T.O.

SECTION B 8. Read the case given below and answr the questions given ai the end of the case : Lakshmi Manufacturing Company is a registerd faciory employing 600 pople. It produces spare parts for cars and scooiers.Its securitystafl at the gaie are very rigid in checking people/vehi.les going out of the works to prevent any theft of the company'smaterial. On June 20, 1995, Ramesh, material chaser,

sewices department, went to the stores depafment to draw 10 new GEC electric switches(15 amps each) for some urgnt breakdown job. Ramesh drew 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 suddenlyrememberedat 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, i.e. from 7 A.M. to 11 30

MS 28

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 allowedto go out of the works. Ramesh,like many otiers, arranged wiih a person to get his tiffincarrier from home to his dpartment . 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 inspector Ramanandthat one Ramesh,T. No_ 321 has been caught red-handed at the works gat while trying to go out of the works with 10 new GEC electric switches belonging ro the companv. The rlro securirystal( who detected th attempted thft were Ramadhin and Trilochan. The matrials were kept in a bag hanging from the cycl handl ol Ramsh. Atter the incident, a preliminary enquiry was held, when Ramesh confessed in writing that by mistake he was carryingthe swiichesas he intendedto come back io his department after his urgent work at the post office. As per procedure for drawing materials in the seNices department, on the basis of a written instruction in the

MS 28

P.T.O,

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 signd by the suprvisor and the deparlmental had, he is supposed to 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 corrctly entered ten pieces GEC electric switches{15 amps each). As pet StandingOrder No. 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.

M$28

Questrons :
(a) Advise the Manager,ServicesDepartmeni on the siepsrequired be lalen in fiis case. ro (b) Assuming that a domestic enquiryis to be held, suggest var'ious steps enquiry, detail. of in (c) Suggestwhat positive measurs to be taken by are the company maintaining promotingsound for and industrial discipline.

MS,28

3,000

I Ms4il
MANAGEMENT PROGRAMME Term-End Examinati,on December,2OO5 MANAGEMENT MS-4't ; WORKINGCAPITAL
Time : i hours MaximumMorks: 100 (Weishtoge 70Vo)

(j) (ii)

There ore three Sections A, B and C. Sction A is mesnt only for the students, Loho hoDeregisteredIar MS'41 wior to July, 2004 I e. upto Janudry 2004. Sectaon B is meant ohly lot the students registered for M*41 Jron July 2004 semester onudrds, Jor oll students

(iii)

(tD) Sectlon C is compulsory

MS-41

P.T.O.

sEcttoN A
Atlempt anv t@o questions. AII questions corrg 20 mdrks.each, ..

1.

la)

(b)

"Current Assets of a lirm are not productve asseis while lixed assets are the only assefs tltat generare aiid produce incomes for a firm. Therefore, a iinance nanager shouid reduce investnrenF m current assets and enhance investments in fixed assets." Comment on this statement and give reasonsfof your opinion. XYZ Limil?d has toial salesof Rs. 12 8 takls lor rhe year 2004-05. It is estirnated that for ihe sam period ihe company has a gross margin of 15 per cent and a current tutio oI 2.5. Cunent liabiiitiesof llre company are Rs. 1.92 lakhsi lnventodes Rs. 0 96 ia-khs and cash Rs. 0 32 takhs. you are requlredto determine {i) the average inventory carried by the company, if an inventory turnoler taiio of 5 tirns is estimated. (Assume a 360day year) the ar,eGge colhciion period il the opening balance of debtors was Rs. 1.60 lakhs. (Assr_rme a 360day year)

(ii)

2'

(a) Siate \r'helher th ,ollowing managerial acuons

(individual! and indepndently) would improve or teduce ihe liquidi9 posiiion ol a flrm : (i) It btrys inventory lor cash, {ii) lt buys invntory on 2 months crdit. (jii) lt sellsgoodsro a cuslomeron credit basrs.

MS.41

{M (v)

li transfers goods to the project department of the lirm. It uses cash to make payment to the creditors.

(b) mat

will be the effect of the tollowing on the receivabies ol a tirm ? Mention wheiher the receivables would rroase. decred.esor wili remain the same, 0l Inoease in -norkerinrerstrares (I) The generaleconomiccondirions slacken

(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 bills discounting schems

3.

(a) "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.

(b) Distinguish between I

(i) Hedging Financing Strategy and Aggressiv Financing Shategy Funds Flolt Statemeiri Statemeni and Cash Ftow

{ii)

(iii) Money Markei and Capital Market (iv) Liquidity of an asset and bquidity of a firm

MS-41

P.T.O.

Note:

SECTION B Attempt orjy t.ro quesiions. All questions corry 20 marks each. Analysis is an important tool in ensuring eflectiv linancial planning. ln the light of the statemnt, state how Ratio Analysis is of great use to a linance manager in maLing an effectivelinancial plan fol the \ ro*ing capjtal of a tirm. lllusirate your A company has experienced stochastic a demandfor its product. As a result, the daily cash llows also behaverandomly.The standard deviationof daily net cash flows is Rs. 1,000. The company wishes to make ihe transfer o{ funds from cash to marketable securities and vice-versa as 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. You are required to determine the optimum control limits assumingth minimum limit for cash t'alancesfor the firm is Rs. 2,000. 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 Corcrvative Financing Sb-ategy (iii) Aggressive Financing Sirategy (ii) 'Ratio

l.

(a)

(b)

2.

(a)

M54]

{b)

Name and define four most important financial ralios relatedio current assets and current liabiliiieswhich a bank gnerally considers while extending a short-term loan for working capital purposs.

3.

The following information has been extracted tom the books of M/s ABC Limited :

7. 2. 3. 4. 5. 6.

Average Debtors (outstanding) Raw MateYial Consumption Total ProductionCosi Totai Cost of Saies Saleslor the year 2004-05 Value of averagestock mainiained; I Raw MateYial I Workin Process r Finished Goods Avrage Period of credit allowed by the suppliers Assumed number of days in a yeaY

800 4,400 9,000 10,500 16,000 330 350 250 16 days 360 days

7.

8.

You are required to compute the Operating Cycle ol the company in terms of days. Calculate the e[fect on the operating cycl if the average period of credit auowed by the suppliersis extendedto 30 days.

MS-41

P.T.O.

sEcTtoN c
Note: 4. Attempt any three questlons. questions carry AII 20 morkseoch.

EQUIPMENTSPVT. LID. is a M,/S TRY-YOUR-SELF manufacturing companyand is producingsomehousehold equipnrents housewives lndia. The followingdata has tor in beencollected{rom lbeir Arnual Rpod, 2002.
Balance Sheet as on ,,, {Rs. in lokb/

31-03,2001 31-03-2002
Fixed Assets(SeeNote A) CurrentsAssefs
Debtors Loa0s and Advances Cash aod.Bank

225 27
2.7|

231 54 304 116625 10563

1 1 23 8 17.51 1636.35

118831 88 63
151.41

30-16
Total 1686.49

Liabilities

ShareCapital Reserves and Surplus(SeeNote B) Loans Secured

UnsecuredLoans Current Llabilitiesand Provisions Proposed Final Dividend

377
631.16

373.72
637,69

10796 299 510.83 56.55

336.49
3.66

284.79

. Total MS-41

r6a6-49 1636-35

Prolit and Loss Account for the gear nding on ..-.

(Rs. in Iakh)

31 03-2002
Sales

9551.23

Less: Raw Materials Salaries& Wages

Manufactu/ing a)td Pfoductjor Expenses Depreciaiion

2757-25 5730.5 393t2 52 49

Gross Prolit

B9s3 36
617.a7

Less : Administrative, Selnng and Distributive Expenses Interest

Add : Other Incomes

6.99

(163.15)

31.83 486.55 32908 15747 63.22

Prolit Before Tax

Less : Provision for Tax

Profit After Tax

Appropriatiols :

fnterim Divjdend paid during the year Proposed final dividend

377

56 55
757 4'l

MS-41

P,T.O

NOTES: A. FIXED ASSETS

Net Value as on March 31, 2OO1

Add : Pr.rchases Duting the year

231 54 53.85

Lss: SalesDuringthe Year

Less Deprciation

52.49
225-27

Net Value as on March 31, 2OO2 B. RESERVES Net Value as on March 31, 2OOl Add : Transfer from Profil & LossAccounr Add ; SharePremium
Less i Dividend of the previous yar paid during the year

637.69

63.22 232 72.07

631.16

Net Value as or March 31. 2OO2

Required : Prepare a Cash FIow Statement. 5. (a)

At present,a comiranyis followingEOQ policy.Under this policy, it is placing10 ordelsof 4,000 unils each e\)ery year at a ftle ol Rs. 100 per unit. It regtits in Rs. 5,000 as total ordeying cost and Rs. 5,000 as total holding cost each year. Assume that another supplier is willingto supplyat a rate ol Rs. 95 per unii provided the companyplacdorderof at least10,000 unitseach time. Sbor.:ldihe offer be acceptedby lhe company ? Support gour answer with necessarycalculaiions.

MSrrl

(b)

A firm is facing stifl competiljon in the marj{et and its sales have become almost stagnant in lasi lew yeors. In older to boost sales, among many things. the marketing department has suggestd extending credit priod from prsent30 daysto 45 days.Their estimates show that such a polica would yesult in an increaseof 10% in salesfrom the existing level of R'. 100 crores. To determine whether this recommendation of exlending 6edit periad be accepted, as a finaflce managet. yoLt are lequired to detetmine Lhe respective costsand the behefitsfor the same and to give the recommendation.The cost of funds is estimatedto be 16% p.a. and the Contribution to Sales(C,/S)Ratio is 20E0. What will be your re"omne-datron a\ rhe Firan.e Manager in this regard ? Support 5rour answer with necessarV calculations.

6.

What is meani by Cross Working Capital ? How does it differ from Net Working Capital ? X Ltd. sells goods at a gross profit of 20% oI Stljng prjce. The followjng dara are for ihe period of 12 months endingon March 31, 2005. Based on the following data, you are rquired io estimaie me reqirement ot working capital of X Ltd. (i) A safetymargin oI 15%o the amount estimated of will be maintained as a part of working capital requirementto meet contingencies,

M541

P.T.O.

(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

(iii)

(ia

iri) Annual Salesat 2 months credii

(vii)

R5 27,00,000

Annual Matedal consumed (Suppliers' credit-2months)

Rs.6,75,000

(viii) AnnualWages {paidin the beginning Rs. 5,40,000 (ix) Anlual Manufacturing Expenses Rs 7,20,000

(These expenses paid one rnonth in arreors) ore {x) Expenses'paid Administrative ihe gear ' during

Rs.1,80,000

(These expenses paid one month in atreors) are (x4 Salespromotion expenses {paid quaderlyin advance)

Rs.90,000

M S4 1

10

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
Sales

7,50010,50018,00010,500

CashPayments
r Production Cost

7,00010.000 8,000 8,500 1,000 2,000 2,900 1,600 100 r , 1 0 0 2,700 2,100

r Selling, Administrative and Other Costs r Purchaseof Plant and other Fixed Assets

The debtors at the end of a quarter are one-third of saies for the quarter and they pay in the next quartgr. The opening balanceof debtorsis Rs. 3,000 lakhs. Cash on hand in beginning of the year is Rs. 650 lakhs and the desired minimum balanceis 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 capital requirement.

M S.41

tl

P.T.O.

8.

Write short notes on any torr ii) (ii) Cash Flow Forecasting. The Baumol's M<tlel in balances a firm.

of ihe following :

a model to optimize cash

(iii)

Role of non-bank finance in meeting workjng capital requirements lndian lirms. oJ Post Lending Control by banks. Need for Short Term Integrated Funds Planning Jor better utilization of a firm's resoutces

(iv) (v)

MS,41

12

3,000

MANAGEMENT PROGRAMME Term-End Examination December.2OOS AND MS-42 : CAPITALINVESTMENT FINANCING DECISIONS
Time . 3 fiours

Marks, 100 Moximum (Weishtase 7@/o)

(il (iil

There arc t'hreSeaiionsA, B and C in this pdper. Stidenfs lrho hoDeregistredJot MS'42 pnor b Julg 2004 seaestc,( shauld ctttempt any fir)e questionslrcm Seclions A ond C. Students who houe registeredlor MS-42 lor Julv 2004 semesterdnd oltenuads, should attempt ony fiue questionsfron SectionsB ond C.

(iii)

(tu) AII questions carry equal notks (u) Present Volue tables uill be prouided, if asked far'

MS42

P.T,O,

SECTION A l. What is Net Present Value ? Hou.' is it computed ? How is the NPV rule related to the walth maximisalion objective ol the firms ? Dscuss.

2 . 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 undrstand Venturi Capital? How doesa by Veniure Capitalist Jinancean enterprise ? What oiher services rendered a venturecapitalist? Explain. are bg

MS-42

SECTION B 1. What do you undrstand by Financial Enginering ? Explain \ix importalr lacror: which are pri'rarily responsible financialinnovations. for Give examples. (a) What is Leveraged Buyout ? Discuss its characteristics the pr-requisites its succss. and Ior Discuss criteriafor determiningexchangeraiio of ihe shdresin caseol merger ol hr,,o companies.

2.

(b)

3.

What do you understandby Euro-CurrencyMatket ? Describeth differentwaysin which financecan be raised in Euro-Currency Market.To what exieni havetha Indian Corporatestappdthis market? Explain.

MS-42

P.T.O

sEcTtoN c
4. . ABC Corporation plans to expahd assets by 50%. To financethe expansion,it is choosingbeiweena 12% debt issue and equity shates. Its Balance Sheei and Income Statement are shown below : BalanceSheet as on Dec 31 Liabilrties Share Capital Rtained Earnings 710k Debentures

2004 Rs. 1,20,00,000 80,00,q00

Rs.

Assets

1.oo,oo.ooo fi*nd eo,oo.ooo 9"'"n'

40,00,000 2,00,00,000

2,00,00,000 Bs. 6,00,00,000 5,40,00,000 60,00,000 4,40;000 55,60,000 27,80,000 27,80,000 10,00,000 274 75 20.85

Income Stirtementfor 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)

MS-42

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/o may be chargedand the PE will remain unchanged. (i) Assumingthat the EBIT is 10% of sales,calculate the EPS at ihe saleslevel ol Rs. 8 crore and Rs. 10 crore under both the linancingoptions. As what level of EBIT. after th new capital is acquired,would the EPS be the same irrespective of the linaring plan oprd ?

(ii)

(iii) Using th PE ratio, esiimaie the marlet price per share lor both levels of sales and for both the linancing plans. 5. As a linancial analysi,you are requirdto determinethd 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 shares(Rs. 100 per share) Rs. 2 lak}l Equity shares(Rs. 10 per 5hare)

Rs. 10 lakh

All these securitiesare iraded in the capiial markeis Recent prlcesare Debentures Pref.shares Equityshares
MS-42

Rs.110 perdebenture Rs.120 pershare Rs.22 pershare P,T.O.

Anticipated external financing opportunitis are : (i) at Rs. 100 per debentureredeemable par, 10 vear maturity, 11% coupon rate, 4% llotation costs, sale ' pnce Rs. 100. at shareredemable par. Rs. 100 preference 10 year maturity, 12% dividend rate, 5% flotation costs,sale price Rs. 100. Equi& shares pnce Rs 22 Bs. 2 per share flotation cost, sale

(ii)

liii)

In addition, dividnd 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 corporarerax rarp is 35%.

6.

What do you undersiand by Project Appraisal undertakn by financing instiiutions ? Explain the proce.lure and norms Ioll<Ned by thm whit gtanbng lerm loans Whv is post-sanction monitoring ncessary? Disctlss,

Write notes on : (a) (b) (c) ld) Scenario Analysis Suppliers' Credit Assetsecuritisation Intem;l Rate ol Relum

MS-42

.A

Co. Ltd. is thinking of installinga computer. Decide whether the compuieris to be purchased outright (through 1470 boffowings)or to be acquiredon lease rntal basis.

The company is in th 50% tax bracket. Other data rurcnase ot Computel Purchaseprice Rs 20,00,000 Annual maintenance be paid in advance) (to Rs. 50,000 per year Expectedconomlcuselullile 6 years Dpreciation(lor lax purposes)Strajghtline method Salvagevalue Rs. 2,00,000 Payment of Loan : 6 year end equalinstalments of Rs.5,14,277 Leasingof Compi.rter Leascharges(to be paid in advance) Rs. 4.50,000 Maintenance expenses be borne by lessor to

MS.42

3,000

MANAGEMEM PROGRAMME Term-End Examination December,2OOS MS-43: MANAGEMENT CONTROL SYSTEMS

Time : 3 hours MoximumMorks: 100 (Weishtoge 70aA

(i) (ii)

There are three Sectians: Sectian A, B ond C. Section A is mednt Jor the students ttho hoae registered MS-43 beforeJonuary 2005 i.e. upto lor July 2004 semester Section B is meonr t'or the students who haue registered Ior MS 43 lrcm January 2005 sernester onuords.

(iii)

(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 40 morks. lor oll and caffies

MS-43

P.T.O

SECTION A

r.

(al Distinguish bet'reen (il Management Controll

(ii) Operational Control; and (iii) Strategic Planning and Control. (b) What changesmay have to be effected in order to make a responsibility eentre meet the needs of the decentralized organlzation ? are profit established ? centres and why are they

2. la) What

(b) Explain ihe concept of ROT as a measure of

perlormance of investmentcntres and discussits merits and demerits3. (a) Distinguish behreen Fixed and Flexible budgeting. Under what conditions would the latter be more advisable ? What broad considemtions would 9ou keep in mind in evolvingthe designand systemol reporting lor an investmenicentre ? Explain. Discuss the performance ol a host country subsidiary as an economicentity in the conlext of Management Contlol in multinational operat:ons. What factors is th MCS in a prolessional firm supposed monitor ? Explaineach oI these factors to

(b)

4.

(a)

(b)

MS-43

5.

Explainany trrree of the following : (a) {b) (c) (d) (e) Control in Non'profit organizations Measuringand controllingperformancein an MBO Iramework Negotiatedprice as a method lor transferpricing Controllabiliiyof expenses Inlormal management control

MS43

P.T.O

SECTION B l. Explain in detail how has the Total Knowledge Managment(TKM) influencedthe managementcontrol of systems modern organisations.

centresand 2 . Criiicallyexaminethe conceptof responsibility explain ihe basis for delegation of responsibility. auihority and

3. Explain the necessiiyto have a clear, unambigrlousand well

definedpurposefor performancemasurement.

4 - Explainin detailthe vanousrisk facedby the bank. How

can the management control systemscontain thes risks ? Di'cuss.

5 . Discuss in detail the framework of management contro!

sgstem in development organisations.

MS43

SECTION C 6. Readthe followingcasecarelullyand answerthe questions given al the end : GRAND JEAN COMPAT.IY The Grand Jean Company was lounded jn the mid-19th century. The firm survivedlean yars and the 1929 depression largelg as the result of the market durabilib of its dominant product - blue denim jeans. 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.It oflered a wide variety ol dress and fashion jeans for both men and boys and a completeline of pants for women. It enjoveda reputaiion lor reasonablypriced, quality pants. The company sold 40 million pairc ol pants last yeaf. Production In each of the last 30 years,Crand Jean sold virtually all its production and oflen had to begin io ration its pants to buyers as early as four months prior to the close ol production Vear. The company ouned 25 manufacturifg plants. Tte plants' capacityv,aried, but 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 plants producedvafous types oJ pants. The firm augmentedits the Grand

MS-43

P.TO

own production capacityby contractingwlth independent manufacturrs. Currenily ihr were 20 such contractors making all lines o{ Grand Jean's pants (includingblue denlm ieans). lnst year contractors produced one third of the total pants sold by Grand Jean. Tom Wicks, vice presidentfor produciion operations (see organizationchad in Exhibit 1), commentedon the firm's use oI olrisidecontractors: "Th majority ol these contractors have been with us for five years or more Severalof them have servedGrand Jan efficiently and to reliably lor over 30 years. In our agerness get the 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 pants made, we because their costs are too high. Usualty \te can tell from an independent'sexperinceand per unit contract pric whethr or not he's going io survive. ' ''Contract agreements are mad by me and mv staff The ciling or maximum price we are willing to pay for each rype ol pants is very well established by now lt a us contractorimpresses as being both teliableand capable of mahng qualiiy pants, we will pay him $at ciling. 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 "

MS43

Due to intensedomesticand loreign competitlon,the iailure rate in ihe garmeni jndustry was quite high. Hence, new .enkeprenurs often steppedjn and assumed control of exisiing facilities. The Control System Mr. Wicks continued | "We treat our 25 plants as expense centres. Operations at each plant have been examined thoroughly by industrial and cost engineets. You know. time-and-motionstudies and all. I'm quite proud of the standardtimes and costsw have in place. We have even developedlearningcurvesihat tell us how long it will takg production of a given type of pants to reach the standard hours allowed pr pair alter initial start-up or a product switchover. We know the raie at which total productiontime per pair reachsstandardfor every basic style of pants we mak. We use thjs information for budgetinga plant's cost. The marketing staff estimates the quantiiy ol pants of each type it wants produced each year. That information is used to divide total production among the plants. Il possible,we like to put one plant to work for a whole year on one type ol pants. That savessiart-upand changeover costs.Since we can sell all we make, we iry io keep our planis at peak efficiency. Unfortunately, the marketing folk always manage to complicateproduction schedules with a lot of

MS43

P.TO.

midyear changes in pani needs, so this objective is difficult to met. "The plant budgeiing begins with me and my staff determining what a plant's quota (in pairs of pants) for each month should be 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. Thse yearly budgets are updated at the end oi each month 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 cannot meei the quota' his people hav not been working at what th engineersfeel is a level ol speedand efticiencv Or possibly very reasonable absenteeismor worker tumover, big droblems in our high. When the quota has planis, have been excessively not ben 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 the number of produces in a month, we can deteYmine 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.

MS-43

"We also look lor other things in evaluatinga plant manager.Have his communityrelationsben good ? Are his employeeshappy ? The owners of this company are very concrnedaboul theseiac-ors An annualbonus constituted core of Grand Jean's the reward system. Mr. Wicks and his two chief assistants ratd each plant manager's performance oh a 1to 5 scale,where 5 was ihe highesi rate. At year end, Grand Jean's top managemeni determjned a borrus oase oy evaluatingthe firm's overall performance and profirs for the Vear. The bonus base had been as high as Rs. 10,000. The pedormancerating for each member of Grand Jean's managementcadre was multiplied by ihis bonus base to determine a given manager'sbonus. For example, a manager wiih a 3 point rating would receive a Rs. 30,000 bonus. Grand Jan's managemeni group included many linance and marketing srcialists. The casewtjte{ noted that these personnel, who were located at corporate headquarters, were consistently awardedhigher ratingsby their supewisors than wer plant managers. This diflerenceconsistently approacheda full point The live marketing departmenislisted in E\hibit 1 under the vice president of marketing are treated as revenuecentres.Marketingforecasts are used to st sales

MS-43

P T.O.

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,Irequentchangesin productmix were necessary' The sales force sells all types of ieans within an assigned consists ol salary plus territory. Their compensation 8 percent sales commissions Commissions represent compensation The roughly half the averagesalesperson's customersar retail stores and clothing dist buiors' For the marketing departmentprformanceassesgment! sales of each line of pants are assigndio ihe rspective marketing department (ie, basic jeans, etc)' Marketing department managers participated in the companys

Evaluation oI the System Mia Packard, a recent business school 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 approve of th sgstemhe usesto evalualehis plant managers.On a recent plant visji as part of my company orientation program. I accidentallydiscovered 'hoarding' some of ihe pants that the plant managerwas produced over quoia He does this in good months to protect himself againsi future production deliciencies That plant managerwas really upst that I stumbldonto

MS43

'10

his pant siorehouse.He insistedthat other manageE did the same thing and beggedme not to tell Mr. Wicks. This is odd behaviourlor a company that usuallyhas to tuln away orders near the end of the year ! I suspectthat most plant managersarn't really pushing for maximurn production. If they do increaseoutput, their quotas are gojng to go up, and yet they won't receiveany immediate monetary rewardsto compensate the increasein their for responsibilities or requirements. If I were a plant manager,I wouldnl want my productionexceedingquota . 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 feelsthat everyoneshouldrun a plant the way he did. For example, in Mr. Wjck's plani there were 11 workers for every supervisor or member of the office and administrative staff. Since then, Mr. Wicks has elevaied this supel sion ratio of 11 | 1 to some sort of sacred index of leadershipefficiency.All plani managersaim lor it, and, as a result, usually understaff their officesBecauseof 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 need when we need it I "Another thing ! Some of the plants have been built within the last five years and have much newer

MS-43

ll

P.TO.

equipment. Yet ihere is no difference beh"een the standardhours determinedin these plants and the older ones. The older sewingmachinesbreak down more often' and probablyarn't as easyto require more maintenanae,

Exhibit I Grand Jean Compony Organizotion chorl

Qaestions : (a) oI the goal(s) ihe company How would you describe as a whole ? ls this, or are these. the same as the goal(s)of the company's markeiing organization' and the company's 25 managersof marufacturing plants ? Explain. (b) Evaluate the current management planning and plants and the control systemfor the manufacturing What are the sirengthsand marketingdepartments. ? weaknesses

MS-43

12

(c)

One plani manager recommended that plants b operated as profit centres becauseit 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 survivein this business. Therefore, like the outside company's manager I should have bottom line responsibihty and be rewarded accordingly." Do you agree or disagree with the prolit centre concept for Grand Jean's 25 manufacturing plants ? How would this approach aflect the plant managers'decisions,performance,

t
I t
tr.,ts-a:
13 3.000

MANAGEMENT PROGBAMME Term-End Examination December,20O5 MS-44 : SECURITY ANALYSTS AND PORTFOLIO MANAGEMENT
Time : 3 hours Moxinum Marks : 100 (Weishtase 70o/a) Note . Attembt ony Iiue questions. AII questions carrg equol marks. Prcsent ualue tables dre to be prouided iJ oskd tor. is well designed and carefully planned

l.

'lnvestrnent

speculation." Comment. Critically examine the recent hends in ihe Indian capiial market.

2.

(al

What rs lirlrng ? Why do companiesger Lheir shares listed on ihe stock exchange ? Explain the pre-requisites the listing of sharsin India. for

MS-44

P.T.O,

(b)

Vamsi is considedng ihe purchase of a bond currently selling ai Rs. 878 50. The bond has Jour years to maturity, face value ol Rs. 1,000 and B% coupon rate. The next annual interest payment is due after one year frcm today. The rcqvircd rate oJ retutn is 10%0.

(t

Calculat the irttnsic rlue of the bond. Sbould Vamsi buy the bond ?

(i,

Cajculate ibe ield to )raiurjt

ol the bond.

3 . Explain in detail the role played by the Securities and

Exchange Board of India in the secu tis market as a regulator as well as dveloper of the capital market.

4 . Briefly explajn Technical Analysis and Fundamental

Analysis. What are th basic premises of Tchnical Analysis ? Analysis ? How is ii dilferent from FLrndamental

5.

{a)

How

is ihe

Arbitrage

Pricing

Theory

{APT)

consistent with the Capiial Asset Pricing Model (CAPM) ?

MS-44

ib)

Ganga and Yamuna are tbe tlvo Jrutual fitnds. Ganga has a sample mean of sr-rccess 0 14, of Lthereas Yamuna has. a sampJernean of success of 0 16. Yamuna has the beia at 2 0. The bta ol Ganga js one-half oJ the beia of Yamuna. The standarddeviationsof Yamuna and Ganga are 13% and 170.6 respectivly. The mean return tor markei index is 010, while ihe riskJree rate oI return is 6Vo. (i) (ii) Compute the Jensen'sindo{ lor ach of the fl,nds.Whal doe. ,l iid,caLe) Compute the Treynor's index lor the funds and interryet tl. results. Compnre the results of Treynols and Jensens indices.

(iii) Compute the Shaqre s index lor the funds and the market.

6.

Explain ihe concepi of Muilral Funds.Describe the various tlpes of schemes introdLrced bV Mutual Funds in lndia. Under what circumstances,can the registration of a mutual tund b ierminatd ? Write short nots on any to la) (b) {c) {d) ie) {fl SeparationTheorem Residual Analysis Factor Sensitivity Aggressive siock and Delensivestock Dow theory r of the following ,

Principleof Domlnanc

MS44

3,000

MANAGEMENT PROGRAMME Term-End Examination December, 2005

MS4s : INTERNATIONAL FINANCIAL MANAGEMENT

Time : 3 hours

MoximumMarks: 100 (Weightose70o/o)

Note.

Attempt any IiDe questions. All questions cotry equal 'r'arks.

r. (a)

In what respect have the changes in ihe global financial markeis made the task of a finance manager more complex ?

(b) "Comparative cost iheory is an extension ol

comparati\, aduantageihory." Comment.

2.

lal What is systematic nsk ? Can it be hedged by

intemationaldiversificatjon Explain. ? {b) Distinguish behreen euro bond issue and foreign bond issue.

M545

P.T.O

3.

(a) "Centralised cash managementis a double-edged

weapon for international working capital management."Discuss with the help.ol exampres.

(b) Distinguish bet'r./eenterms of payment and rypes or

credir.

4.

(a) What are the important elementsof a currencynsK

sharingagreemenr?

(b) Briefly discussthe principal elements of an exposur

management in{ormation system suitable for Mumbai based Indian exporter. a

5-

{a)

Spot and foroard exchange rates are based on interest rate parig thorem. Discuss with suitatte examples.

(b) Distinguish behreen accounting and economic

exposure,

6.

(a) Sometimes it is said that the intemational financial

system is an extension of domestic financial systems. Do you agree ? Explain giving reasons.

(b)

Dscrib the innouations in the intemaiional capital marl,ts.

MS-45

7.

Discuss brief any tour of ih following r in (a) (b) Strategies lor portfolio investment Documentary restrictions (c) ld) {e) (f) Lending programmesol EXIM Bank Internal techniques exposuremanagement for PPP Theonj India's BOP Past Trends credit and exchange control

MS45

3,000

MANAGEMENi PBOGBAMME Term.End Examination December,2O05 MS46 : MANAGEMENT FINANCIAL OF SERVtCES

Time : 3 ho:.r's

MoximumMarks: 100

There are three SectionsA, B ond C. Section A is compulsory lor all the students.

Section B is meant onlg lor the students,Dho hove resisteredJor M5.46 prior to July, 2005 i.e. upto January, 2005 semester Section C is neant onlg Jor the studentsregistered Jor M5.46 Jron Jult, 2005 semesteronu)ards. A,l guestions carry equol marks.

SECTION A Attempt ony three questions. l. Explain in brif the various components of the Financial Srttft in lndia. Discuss the conomic and finanoal frrnctions of th FinaDcialma/ket.

M546

P.T , O

What are ihe different strategir which could be adopted by the financialsewicesfirms to managetheir Credit rGksand Asset-Liability Gap risks ?

3 . Elucidate the larious stagesat 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 stagesof {inancing.

4,

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 SecunrisalionI D?scribe rhe mechanism of securitjsation and the benefits accruing to various parties involved therein.

MS46

SECTIONB
Attempr s6y t,,o qu?itions.

6.

Explain the conceDts of Mergers and Acquisitions. Highlight the steps thai are involved in the process of merger and the motjvesbhindmergersand acqujsitions. What is the significance housingfinanc ? Explain the of vanous institutionsthat ar providing housing finance in India.

8 . Write short notes on any tour :

(a) (b) (c) {d) {e) {t Hlre Purchase Plicrng of Publicls:ues DrscounL and FindnceHouse ol lndia Floafing Raie bonds National Stock Maiket System Operating Lease

M5:46

PT . O .

SECTION C Aitempt onl turo questions. 6. Emphasze rhe role o( $e NahoDalHodsing Bank as the apex bank in the fietd of housing {inance. cive detajls of lhe directionsrs{ed by il lor hous)lg iinance compdnies. Who are an lnsuranceAsent and lnsuranceB,oker' , Whdr dre the caiegoriesol rnsurdncbrokpr. ? D-cus' ihir functions.

7.

E.

Write shori notegon any tour r . (a) Dematerialisation (b) PublicLiability Insurance (c) Travellnsurance (d) le) (t Hire P\nchaseE,stem Bill Market Schemefor Exporters Electronlc Commerce

M546

3,000

MANAGEMENT PBOGRAMME (Banking and Finance) Term-End Examination December, 20O5 MANAGEMENT MS-422 ; BANK FINANCIAL
Time : 3 houis Note I

MaximumMarks: 100

Attempt ony fiue questions. All questions carry equol morks. 'Financial Discuss the objectives and scope oI Management'in a Bank. 'Common sire Financial Di,lerenl)ale betueen 'Trend Analysis' of Balance Statement Analysjs' and Sheetsof Bank.

1.

(a)

lb)

2 . Discussthe different sourcesfrom which Banks can bo/row

lunds v,'ithin lndia.

3 . 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.

MS 422

P.T.O.

4,

Discuss salient the feafures : of (a) CommercialPapers,and (b) Inter-BankParticipaiionCertificates

Describe the role played by Bank in th foreign exchange market. Briefly discuss the different tlpes of 'Forign Exchange Raie Systms'. Also explain th factors that affect th foreign orchange mies.

6.

'risk What is managemnt'? What are its objectivs? Brieny explain the different categofies of risks thai are relevant to Bank. Exptain the sigoificance o{ measudng and managtng '6edit risk in Bank. Also discussihe basic approaches to credit rlsk measurement individual at loan intrinsiclevel.

6.

Why are more and more Bank going for mergersfhese days ? Briefly explain the core principles for hrlue restructuring oi weak Banks as suggested by the Verma Group.

MS-422

2,O00

|is4zal
MANAGEMENT PROGRAMME (Banking and Finance) Term-End Examination December, 2OO5 MS-423 : MARKETING FINANCIAL OF SERVICES
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 berception,learningand habit aftect ihe setection of financial products and services ? What implications should marketers of banking services draw from the knowldge of these variables )

MS{23

P.TO

z.

How can the concept of Eoduct lifecycle b used for th marketing of banking products ? Using an example from the banking sctor, explain the stratgies lor groq.th that yoLrwould like to use in various.stages the pLC. of

3 . Describean9 hro ol the new.financial instrumnis used tor

projeci financing, explaining the main features ol the instrlrments. Bril]y comment on the advantages of the insiruments described by you.

4-

Discuss the investor prclile for muiual funds in India. Describeth emrging opportunitiesfor mutuat fLrndsin ih country and the marketing strategies used by them. Write short notes on any three ol the lollowing : (a) (b) lc) (d) (e) Marketingof Pensionfunds Limirariors in narketing ol insurance serurces lnternei bankng Consiiiunts of mutual funds Ethical issues in merchant banking services

MS-423

SECTION B 6. Readthe casegivn below and answerthe questions given at the end of ihe case : Total Assurabce Ltd. Raman Raghavan, the recently appointed area manager of Total Assurance Ltd., was discussingthe matter ol area office psfemD... with his assistant, Ganesh Moorthy. The company hail come into being after the liberalizationot the lite insurancesector. The company had rcejvedtechnicalexpertiseffom one ol the lading insurancecompaniesof Europe. The compeiition wjth the esiablished player Lile Insurance Corporation (LiC) of India and othr new entrants had made the task ol marketing djfficult. Presently,Total Assurancewas not a very big player. In the iong run, the company nededto grow and achieve d cnr'cal rhassol busrnp<in order Lo becomeand rpmdin profjtable. The lack of substantial grov"th in ihe Indian economy dampenedby lraq crisisand power cuts had put a lid on the grounh in the business. Raman was ne\r ln present job and he was asked to provide an ovrall the assessment the businessprospcts in his area. The oJ General Manager felt that the agent productivity of the area office was not up to the mark and this area needed strengthning.

MS 423

P,T.O.

Mr. Ganesh Moorlhy, Assisiant Area Manager. remarked that the previous Area Manager, Mr.

Shankaran,had nevr carriedout the formal performance appraisal. Mr. Shankaranfelt that he was constanily in 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 companissuch as LIC whose agents wor\ed part time, the company believed that its agents should can! out their sales prornolion ils work on full lime basisAccordingly. agenrreceived a substantial commission on the premium income of the first year (average 70yo o{ the aseni's income), a small relainer (20o/o), and bonus for renewal of annual insurance policieg such as health and personal accident insurance,eic. (10%). The commissionon the premium income offered by ihe company at I4Vo ol 6'e first year's premium was one oI ihe highest amongst the 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 avrage. This enabled the company to pay the additional commissions its agents, to

MS,423

The following organizational structure existed in the area oflice of ihe compdny.

rinaice& Aaounis

Adninrsirati Managr

Training D.pt

Senior AgBnts Agents Trainee Agents

The Selection of Agents and Salspersons In the past, the company had advertised for the position oI the agents.The ovewhelming rsponsehad made the job of selection nearly impossible.Therefore, after the initiai recruitment, the company relied fiainly on tbe word-of'mouth recommendations of 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, wight, mariial status, education, and previous emplolment details, demanded io know aboui previous insurance selling experience, Fesent mplotment, currnt eamings, personal proprty dtails, amount of lil insurance, membership dtails o{ clubs/associations, and names and addressesof ihree rferees. The candidate also had to state the reasons for joining an insurdnce company and, in parlicular, Total Assurance Ltd., and the reasons why the candidate thinks he will be successful.

MS423

P.T.O

Currnt Employment Statistlc The present agents' agewise disiribuiion as folloLvs was : Ag Group 18 to 20 21 to 25 26
Total No. of Agents

26

30 36 10
8 5 88

36

40

40+
Toial

The mean age ol the ara ollice agentswas 27 yars.The marital status of the agents is as show below : Marital Siatus Single Married Toial Total

55

63

33
88

37 100

Similarly, ihe stalisiics regarding the peiod ol employnrent with the company were as follows : Below I year 1 to 2 yeats Over 2 years 46va 28ak 23a/o

[The company bgan opeEtions only thre years ago.]

MS-423

Eighty per cent of th asnts had changedihe job ai least once in the last three years (whether with the company ot not), and 57%o had changedtheir job more

The majority (707o) of the agentshad completed 12 standardSSC, 18yo of the agntshad studjedbyond this lvel with 12qo of the agentshaving an educationof 10th standardor equivalent. They all could speakthe local languageand English. Th S uafion at present There was overwhelming pressure the companyto for grow at a substantial rate to achivthe breakevenpoint. The longer it took to achievethe brakeven point, hardr would be the long-trm struggle. Dudng the iniiial meeting with the General Manager before iaking up the present assignrnent, GeneralManagerhad meniioned the the performanceof the salesforce as an area of concrn. It was felt that a clear and objective measure of a salesperson performance ',vas essential.The company s also neededto establish of and publicizethe achievements high eff'ciencyagentsand reward them to motivate oiher employees.Objectivityin the performancemeasuremnt vis a vis industry benchmarking was aiso considered be to an option. The area ot job changesand loss ol irained agentsto other upcoming companieswas also considered

MS-423

P.T.O

to be an area of grave concern.The time for putting the house in order had arnvd. Questions : (a) Are there ang slreciat !,ersonalit! characteristics essential sellingof insurance for ? Wbat, in your opinion, are th main impedimnisto the good performancof th agents? Are there any motivational drawbacks amongst the preseni agents? What criteria should be used for performance evaluation?

(b)

(c)

{d)

MS{23

2,OAO

MANAGEMENT PROGRAMME. (Banking and Finance) Term-End Examination December,2OO5 MS-424 : INTERNATIONAL BANKING MANAGEMENT
Time: 3 hours
Note t Maxinum Marks , 100

Attempt on9 tioe qrcstions. AIt questions caft9 equol marks.

l.

"lntemational Banks are linked iogether in various lomal and informal ways." Dscuss this statment highlighting the different organisational forms of International Banking.

2. Discussthe need for'rgulation' in IntemationalBanLjng.

Brielly explain the differeni forms oI regulation that may Lre stablishedin lntemational Banking.

3. Wbat is a 'Euro issue' ? Briefly explain the common clauses

that feature in a Euro issue.

M5424

P.TO,

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.

5 . Explain differni categories of financial and non-linancial

risks thai the bank Bankng. are exposed to in Intmational

6 . Briefly explain the ongin of'Globalisation'. AIso analyse

the consquencesol globalisation on the lndian economy

What do you mean by 'financial option contracts' ? Briefly explain their characteristics,benefits and disadkntages.

a.

Write shof noteson any torr of the following: (a) (b) (c) (d) (e) (0 Capital and Risk in a banL CAMELS Model Big Mullah Theory Exchange Earner's Foreign Cwrency Account Forex Treasury Structure Smari Card

MS-424

2,000

MANAGEMENT PROGRAMME {Banking and Finance) Term-End Examination December,20O5 MS-425 : ELECTRONIC BANKINGAND lT IN BANKS
Time : 3 hours Maximun Marks : 100 (Weightage 70o/a) Note : Attempt any fiDe questions.Alt questions corry equol morks.

l,

(a)

Discuss applicationof VSAT networksystems the for Banking.

(b) Explainth modelsof on line bill presentment and payment sgstems.

2. (a) Explain the interactjvedecision mal.jng process of DSS. Discuss the archiiechre of an integraied Banling

(b)

MS-425

P.T.O.

3.

(a) Explain the securityissues an ATM transaction. ol (b) What is mobile banking ? Explain its statusin India.
What types of technotogies are required for mobile banking ?

4.

(a) Disiinguish
neiwork based computlng,

among

hosf-based computing, and cljenvseNer computing

(b) What is Virtual banking ? What are its limitations? 5. (a) "Data
warehousing is solution." Dlscuss. a business intelligence

(b) 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. Explain the ttandards lor businesscontinuity/disa^ster

(b)

Deline computer crime. Briefly discussdiffernt categories ol computer crimes, How can we prevent computer crime in modem banl.ing? Dscuss.

a.

Discuss the importance of Customer Relationshjp Management (CRM) in banks. Briefly explain the gieps involved in successlulimp!mentation of a CRM solution in an organisation,

M5425

2,000

MANAGEMENT PROGRA.OIME Term-End Examination December,2OO5

MS-51; OPEFATIONS BESEABGH

Time : 3 hours Maximum Marks' 100 lwetshtase 709/0)

li)

Section A has Jiue questions corrging 20 morks eoch. Attempt ony three. Secfion B is cotnpulsory dnd carnes 40 morks. Graph paper uill be supplied on demond.

fi, (iii)

SECTION A

1.

Discuss the historical backgrolqd ot Operations Research. Explain iTssignrlicance s.ope in lvlodemMun"g"m"n, and Enumerate the limitations of O.R. 20

MS-51

P . TO .

2.

Usinglhe graphicalmthod,find the maximumralue of z=7xt+70x2 subjectto the constraints xl +x2<30000 x2 < 12000 xr > 6000 xtzx2 x1'x2>0 20

3.

A companymanulactures productfrom its two planls P1 a and Pz with a capaci& o{ 200 units and 100 unib per month. lt supplesthe productto lour shopsat Sl, Sz, 53, and 54 having a demandof 75, 100, 100 ard 30 r$its respectivelyper month. The profit per unlt dilfers with shopsas gi\n below ln Rs.
v1
' l

90 50

90 70

100 130

110

?2

85 20

Plan the productionprogrammefor ma{imlsingprofit. 4-

Goodwi Manufacturing Companyls cunently purcliasing 9000 units of a product for lts annual usage. lt is presentlgordering on month usageai a time. Each unit costsRs. 20. The ordering cost per order is Rs. 15 aod carrying cosi is 15% per annum. Find the optjmai purchasingpolicy for the company.How much does the companysavept yar ? 20

MS,51

Discussvarious steps of Goal programming model tormulation.How doesGP help in dcisionmaking?

o)

Cive the chdracterisrics Inregerprogramm'ng. of Explain the cuttingplane meihod.

MS-51

P.T,O,

SECTTON B , 6. ln a bank where there is a single server, ihe affiva-l rate of customers is 5 per hour and seffia tate is I per hour, Assuming the conditions for the single channel queuing model, find out 20 (a) (b) The probabrlilyihat ihe serve)rs idle The probabilitythat ihere ar? at leastt o customefs in ihe system. Fxpctedtime that a customerspendsin queue. Find the saddle poiot in the folLowing case and also the game ealue.

(c) 7. (a)

o l-2
l [-4
ib)

14

2)
t -31
-5] t 10

Discuss Simulatioo and its applicaiion in decision makins. Explain Monte Carlo simulation glving examples.

10

MS-51

3,000

l-l4s-5rl
MANAGEMENT PROGRAMME Term-End Examination December,2O05
MS-52 : PROJECT MANAGEMENT
Time r 3 hours

MoximumMorks: 100 (Weightage 70W

(i)

Atternptany three questions A, Jrom Section eoch carrying20 r.'orks. ScttonB is compulxory ond corries40 marks.
SECTION A

(ii)

l.

Discuss the imporiance of Project Managemeni. Explain Proiect Lile Cade giving examples.

2 . "Technical Analysis is a dislinct actlvity in Prqect

Development Analysis." Envitonmental concrns sfudies ? 3. What are lnlormafion Explain. affecting How are me Prcject fasibiliiy

20

ihe objectives of Project Management System ? Suggsi an ifitegmted Proieci Managemeni Inlom)afion System for a large organisation. 20 j p.T.O.

MS-52

4.

"Projecr Implementation needs a strong teamwork.' and Feed-fonr,"tdproject Explain. DiscussEmpoqrerment contlol givlng a(amples. (a) Suggest a suilable organisation structure lor a building conshuctionproject. (b) What are the vanous computer applications in ProjectAppraisal? 6ive examples.

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) (ii) {iii) Draw the nen ork and identib the critical path. Find out normal project duration and associaied cost. Crash the activities and find out optimal project completion time and cost. Normal Activity Time Cost

Crash Cost (Rs.)

(days)

Time (Rs.) (dayt

2-3
2-4

3 3
7

3000 300 4200

2 3
5

2-5
3-5
4-5 5-6 6-8

9
5

0
6 4

7- 8

10

7200 7 2500 4 0 0 3200 4 4000 3 7800 1 0 10000 9

4000 300 5800 8100 3000 0 4100 4700 9000 12000

MS 52

3,000

---

MANAGEMENT PROGRAMME Term-End Examination December,20O5

MS-53 : PRODUCTION/OPERATIONS MANAGEMENT

Time : 3 hours Note t

Moxinum Morks: 100

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 implications of this $aiement. ib) E{plain brjefjy the major differences bet'.r,,een

aggregateplanning in manufacturing and aggreggte planning in sewics. 10+10-20

MS-53

P.T.O.

2 . . ( a ) Discussways to use JIT to improve an9 qne of the

following : (i) (ii) a ho\pital an auto dealership

(iii) a sofhr,"re devlopment unii

(b) A small firm intends to increase the capacity ol a

bottleneckoperationby addinga nw 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; variablecosts per unit would be perunrr Rs. 10 for A and Rs. 12lorB; ard revenue would be Rs. 15 for A and Rs. 16 for B. (i) Detemine the break-even point in uniis for each alternative, Ai what volum of output would the hto altematives yield the same profit ?

(it

(iii) If expected annual demand is 12,000 uniis, which aliemative would yield a higher profit ?

10+10=20
3. (a) Operation personnel usually have a large volume and
Eriety of resources their command- they should at endeavour to make etfective and efticient use of these resources to achieve the largest oueurs. Con)ment. Whai are ihe approachesfor enhancing the utilisationof resources ?

MS.53

(b) The processtimes and due datesfor five jobs A, B, C, D and E are given in the table below i Job (Days) 9 Due date (Days lrom now)

"1 5 11 6

20 25

c
D E

40

f.

The jobs may be sequencedaccording to any of the following ruls : (j) (ii) ShortestProcessing Time (SPT) 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). Avemgejob lateness 1O+1O=2O

4.

{a)

Dscuss

the djlfercnce behreen certraljsed and

decentralisedmaintenance staff. What are the reasons Ior decentralising the maintenance function ?

MS-53

P.T.O.

(b) An activity has a seleci time of 4 00 minutes per

cycle and a calculated normal time of 4 64 minutes per cycle- Allowances are 10 pefcent. (i) What was the performancrahng lactor ol the worker studied ? What is ihe standard time of the actMty ? 10+10=20

(ii)

5.

(a)

What lactors will you considerfor locatingany o1 the followina I (t (ii) a thermal power plant a call centre

(iii) a placementagency (iv) a milk processing plant

(b) Assume thai your slock of sales merchandise is

mainiained based on the forecasi demand lf the distributor'ssalespersonnelcall on the firsi day 01 each month, computeyour forecastsalesby each ol the three methods requestedhere. Actual

140
July Aug!st
(i)

180 170

Usrng a simp{e thre-month mo.,ing average. what js the forecast for September ?

MS-53

Using a weighted moving average, whai is the forecast for September with weights of 0 20' 0 30 and 0-50 for June, July and Augusi, resPctivelY?

(iit Using

single

xponential

$moothing

and

assuming that the Iorecast for June bad been 130, Iorecast sales for SepiemLr with a smoolhjngconstantalpha of 0 30. 10+10=20

MS-53

P.T.O

SECTION B 6. (a) Comment on the statement : "A comprany makes bicycletyresj thus, for benchmarking, should look it at other companiesmaking bicaclt9res.' Item X is a standardiiem stockedin a company's. inventory of componnt 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 and cosr of capital. amount to Rs. 5 per unit of averaginventory. Every time an order is placed for additionalitems of X it costs Rs. 10. (i) (ii) Whenever itm X is ordered, whai should the oder size be ? What is ihe annual cost for ordering itm X ?

(b)

(iii) What is the annual cost for storing item X ?

10+10=20
7, Write short noteson any Jiue of the following : {a) Job Enrichmnt (b) Iso 9000 (c) (e) (0 (s) ParetoDiagrams Robotics StratumForrnulation (d) Extemal Customers

5x4-20

Wastivity (h) Th lGnban System MS,53

3.000

MANAGEMENT PROGRAMME Term-End Examination December,2OO5 MS-54 : MANAGEMENT INFORMATION SYSTEMS

Time : 3 hours
Moximuh Mqrks : 100 (Weishtase 70Vo) Note 1 Attempt onV ah?ee questions frch Section A. Eoch question cofiies 20 morks. Section B is comXnlsory ond corries 40 morks.

SECTION A l, {a) (b) Discuss information requirements for making, gMng examples. decision

10

"Manageoent Information Systems play a vttal role in organisational " success. Explain. 10

2.

{a) What is a sgstem? Give various classifications of systems. Explalnthe procssof SysiemsAnalysis. 10 (b) Discuss !,ariousstagesof th sysiemdevelopment Iif cyde. Give the leatDres systemifip)enentabor| ol 10

MS-54

P.T.O.

3.

(a) Discuss different types of elctronic signals and their

applications. What is a Muhiplexer ?

10 10

(b)

Fxplain t-ocal Area Neh^,ork. Gi\,e difie{ent types of switchingand their uses.

4.

(a) Discuss Query languages. Gving an examPle,

the use of SELECT command. suggest

10 10

(b) Explain how computers have chanqed ihe Indian

work culiure. Give one example.

5.

Write noteson any toi.r : (a) Expert Systems

Virus {b) Computer (c) Legal aspeclsand Computers (d) RelationalData BaseManagement Systrns (e) DalaCommunications

MS-54

SECTION B 6, Read the case shrdy given 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 include : (i) (ii) Monitoring of vehicles ngaged, Booking of vehiclesfor trips,

(iii) Dcidingthe route of vehicles, (ivl Reimbursemenr drivers. lo (v) Tesling dnd maintenanceof vehicles be{ore each mp,

(vi) Billing of clints, (vii) Analysis of damags caused, and (viii) Analysis of driver's performance, though this is ihe most neglected task. The owner ol the company has recentlytied up with a manufacturlng company to provide trucks for dispatch oI goods.The client companyhas a very strict monitoring systemot dispatch.Any delay in reachingthe destination will imply a penalty at the rate oI Rs. 300 per day. Also, the transportercan enjoy a reward of Rs. 300 if its truck reachesbelore time. A hsi of all possibledestinations of th client-product has been given to the transporter along

'

MS,54

P.T.O.

with the target transferdurations.Now the owner has to carefullyplan oui his informationsystem.He has enough money to spendon MIS analysisand itnplementationof the proposedsolution,but doesnot know how to manage his time for mahng new sb-aiegies. Questions ; (a) Ideniily the information requirements the owner of of the transport company. (b) How can you help him rn managing iime for his rnakingnew strategies ? {c) Design a suiiable vehicle booking information slrstem-

MS-54

3,000

MANAGEMENT PROGRAMME Term-End Exahination December,2OO5 Ms-55 : LOGISTICS AND SUPPLYCHAIN MANAGEMENT
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.

lii)

SECTION A l. Whai ar the primary responsibilities of the logistics and markeiing groups within an organization ? Why is there a conflict bet een the tl',o ? What measurescan be taken to enhancecooperation?

2.

Whai are th reasonsfor ',ariabilig in the supply chain ? What is the Bullwhip eflect ? Explain the various approaches reducethis effect in SCM. to

MS-55

P.T.O.

3 . Give major inpuis of MRP. Idntify the sourcesmrougn

which theseinpuis are obtained. Give your answerfor boih Make to'Stock (Make to Forecast) and Make-to'Order siluation. Whatis Cuctorer Prolirabrliry ? Analysis WnVhasrr qar-d importanc in recent iimes ? Is ii eihical to dny a customrthat is not profitable? 5. Explain the procedLrre transport and carrier selection. of is it carried out .and what are its major Why characteristics ? With more medical information availableonline than a humdn mind can a,isrmilate, how will l|e roie of docrors changein deliveryhealthcare services ln other words, can ? we conclude that with information freely available on ihe lnlerner, the demald ior consulanrswill reduce?

6.

MS 55

SECTION B 7. Read th following caseand answrthe questions given at Supply Cbain Successes - Dell Computers Dell is a pfmier providr of products and services required for customers worldwide to build their informaiiontechnology and internet infrastructures. Company revenue lor one year is in billions of dollars. Dell, through its direct business model, designs, manulacturesand customizesproducts and services to customer requirements, and offers an extensivesejection of sofiwar and peripherals.Michael Dell stafted Dll in 1984 v.,ith $1,000. He startedwiih an xcepiional idea in the computer indusiry ; SELL COMPUTER SYSTEMS DIRECTLY TO CUSTOMERS through mail order. Dell transfiguredthe PC market through iis assmble-to-order strategy. The caich was that while rivalswere stockinga large inventory, Dell carried only a smalj one. While th rivals. were paying to distributors and retailers, Dell uncler-priced computer by aboui 10% as compared to its them. 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 dirct sals model have been forceful since ihe late 1980s, and indisputabl sincethe growlh of the Web. The uniqueness

MS-55

P.T.O.

about Dell oprations 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 uss i.e. Jusi-in-Timemanufacturing componentsand parts are scheduled to arrive at a time when they are actually neded (as soon as order is finalized).lt has located its at components warehouses narby locations so that the parts are obtained in no time and are the latesi in configuration.The testing ol computersis done through a collaborahvenehrrork thus reducing the iime needd. Ddl usesInternet to create a communltyalong ifs supply because createdan IT based it chain. Dell was successlul 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 matrials requirments, as well as improved factory scheduling and inventory' management. Wi$ the new supply chain iools, Dell suppliers and Supply Logistic Centers (SLCS), have a global view of short and long'term materialsrequirements 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 leadership and innovation in supply chain management and the i2 soLrtionis driving even greater efficiency.

MS-55

Queslions : (a) You might remember the site buildurpc.com by Samsung, which also used Direct-salesmodel for assembling romputers. This initiativefailed.What do you think are the reasons lor its failure ? Comment on why Dell succeededWhat are the primary goalsof Dell lor usingIT along

lb)

MS-55

3,000

MANAGEMENT PROGRAMME Term-End Examination December.2OO5 MS-56 : MATERIALS MANAGEMENT

Time: 3 hours Maximum Marks : 100 (Weishtsge70o/a) Note : There ore ejght questions in this poper. Attempt any fiuequestions. All questions carry equal

1.

It the responsibilitylor maintaining the quality of the product 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 comes under "marketing", what dosthe 'materials managemeni function" do ?

2.

What is the need for International Purchase ? Discuss the procedwe and problemsin lnteynational Purchase. Differentiaiebehreenindependent and dependntdemand inventory. Dpendent demand invntory items do not need to be forecast. Why not ? ExDlain with the help of

3.

M S5 6

P T.O

4 . "lf you reduce WIP then you expose many organizational

bottlenecks-"Commenl on this staiement.Also, staie the reasons for your agrement/disagreement.

Wbat are the objectives of codification, standardization and simplilication ? How does standardizaUonlad to variely reduction ? Discuss the advantages and disadvantages of siandardization.

6.

Explain the

how a performance appraisal system can be of perlormance appmisal in materials

used in the context of matends management. Whal are metrics managemnt ?

Wnte shon noLes any tour ol the following : on (a) (b) (c) (d) (e) (0 lntegratedMatrialsManagement Problemsand risks in vendor neMorking Manufacturing Resources Planning(MRP Il) Use of OR techniques MaterialsManagement in Lo"'es due to shrinkage>,/pilferages Theory ol the "rper-o.gunization

MS-56

List the maior advantages and shortcomings of FIFO, LIFO, and Average meihods oI stores eyaluation. Under what conditions are the three inventoris flow methods ssentially equivalent ?

M5-56

2,000

MANAGEMENT PROGRAMME Term-End Examination December,2005 MS.57 : MAINTENANCE MANAGEMENT

Tme : 3 hours Note : Moxinum Morks : 10O

Thjs question poper containsseuen questions. All questions corry equol marks. Attempt ony fiue questrons,

l.

What do you mean by maintenanceplanning ? What considrations are important in planning to avoid hindrances scheduling What are the basicprinciplesof in ? maintenance planning? What are the important componentsot a maintenance organization ? What are the goals and objectivesof a majntenaDce organization ? Name tbe key jssues affecting the maintenance organization struciure. Discussthe role of mainienance tchniques safetyand tor environmental improvemnts. How could the commLmication behreen maintenance and other funciions be enhanced ? What types of training techniquesare available preparing maintnance for personnelio nhance safty and environmental performance ?

2.

3.

MS-57

P.T.O

4 - Explajn the significanceoi a three parameter Weibull

model. Explain how the Weibull model is used for faillrre diagnosis by briefly discussingthe relationship bet een the shape payameter I and ihe undedying cause{s)ol recurrent failure.

5.

"Plant shutdowns lor equipment overhauls need to be adequately planned." Why ? What will happenil this is not don ? What are the variousstepsin planningmainienance shutdowns ?

6.

Explain ihe basisof identifyingand analyzinga problem, while making use of wear debris monitoring technique. Nam some of the instrumentsusd for wear dbris monitoring. Wrire shon noies on anylour al Lhelollowing . la) lb) (c) (d) (e) Benefitsof planndmaintenance Benefitsof IT EnabledMaintenanc Reliability Log normal Distribution Misconcepiions about (RCM) Maintenance Reliability Centercd

MS 57

2,000

MANAGEMENT PROGRAMME Term-End Examination December,2OO5 MS-58 : MANAGEMENT R&D AND OF INNOVATION
Time : 3 hours MaximumMorks: 100 (Weishtoee 70Vd
Note ' Attehpt olt questions. All questions carry equol

l.

Commnt 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,technologyand business? .How do these interactions affect industriat grodh ? Dscusswiih suitable exampbs.

MS 58

P.T.O.

2.

Why arc masurement evduationimportant in R&D ? and quantitativemethodsinadquatefor measuring Why are R&D output ? OR Dscuss the four dimensions of human resource management practices that foster inno\Dtionand creativity tor ellective R&D.

3.

Discuss the significancol teamwork tn research and development-What is the cross'functionalcore tam concept? Aiso discuss lssonrthat ca! be learnt from the the US companiesin adopting the cross{unctionalteam approachin productdevelopmntOR What is your concept of the leaming organlzationand how is such an organization differentlrom a conventlonal organization? Why is there so much emphasison this new concept ? What systemsand mechanisms, you do think shouldt put in place to tum tbe organization into a leaming organization?

4.

In the context of national R&D infrastrucfure and institutlonalframework,write noteson the following : {a) Departmntof Space{DOS)

(b) IndianCouncil Asricultural of Research {ICAR) (c) Departrneni Electronics (DOE) of (ICMR) of Research {d) IndianCouncil Medical

MS-58

Discussthe salient featuresof the incentives and support measures provided by ihe following countries for promoiion of R&D technolog development : (a) Japan (b) 5. United Kingdom

Ans.rer the tollowingquestions : (a) Dscribethe fiansfer mechanism iechnologyfrom of laboratoryto industry.

(b) What are the common types of intellectual propeity ? Explain th importance of patnis in R&D management. OR What are Palents and Paientabiliiy ? Highlight som important featuresof patentsand the procedurefor award of patents.

MS,58

2,000

MANAGEMENT PROGRAMME Term-End Examination December, 2OO5 MS-61: CoNSUMER BEHAVIOUR

Time : 3 hours

MoximumMorks: 100 (weishtase 70o/o)

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

t . What are th different approaches to the study of

consurner lifes9les ? How can an AIO Lifestyle study be applied to the marketing of (a) (b) Perrumes Readymade apparel

2. Explain the concept of consumer involvemnt and how it

influences con$mler decision process. What are the that a marketer can use to increaseconsumer strategies involvment for a low involvemeni product like common sali or a tooihbrush ? MS-61

P T.O,

3.

What are the different !,es ol rclercnce groups ttEt influnceconsumer decisions Briefly descnbe type of ? the power that referencegroups may exert on buying socjal behaviour? What is the tlrp of reference group inlluence that a marketerof a hometheatregstem can expect? (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 dissonancein case of an xpensive product like personalcomputers?

4,

5.

Write short notes on any trrre of the following : (a) {b) _(c) (dl Choice heuristics Leaming and perceptual constructs in Howard Sheth Model Freud's theory of personality lnftuence of the child in family decislon making

(e) Altitudemeasuremenr

MS$1

SECTION B 6. Read the case study given below and answer the questions givn 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,lifstyles,income, and awareness and knowledge ol investment altematives. Other differences, such as media habits,pointed out the fact that there is tremendous diversity among this group of investors. A quantitative analysis of this information uncoverdthe existenceof three market segments,each mique in terms of needs for financial srvices. demographics, consumer lifstyle, awarness and knowledge 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 thse segments, it is first necessary to understand the unique aspects of each female investor segment. The Carer Woman This segment of th female investor markt is the smallest but is growing rapidly. These investors are younger (30 to 40 years old), college educated, and active9 pursuing a career- Their incoms are high relati\r to incoms of other working women and growing as they progress in MS$1

P.T.O.

their careers. This group includes single and manied females, but the majority did not have children living in their households. While their demographics are unique, qually important differences exist in ihir needs for financiat services. Women in this segment have higher jncomes and pay considerable iaxes because they ar single or, iI manied, have hro sources of income. As a result their needs focus on ways to increase their financial holdings wifhout incurring additional tax obligations. Also, because they do not need currnt income, they have a greater need for long-term capital appreciation rather than current 'nrerst or dividendincome. The Sinsle Parent This segment is the second largest in size and also growing- These lemale investorsare middle aged (35 to 45 years old), unmanied, but hav children lMng at home. Their single-parent staius could be the result of divorce or death of a spouse. Because ths evnts tend to happen more often at middle age, this particular female investor is olten thnrst into managing mony 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 sure their money will be there in ihe future. As a result,they preter inveshnents that offer secure groMh. This investment will be a source of income later in life andlor

M5-61

used lor their children's education. In ither case ihs consumers do not wnt to risk their fuftlles. The Oldr lnvestor This segment is the largesi of the female market for . financial sewices. These female investors are older (55 and up) and iypicaly single. Unlike the "Single Parell1, these female invstors do not have children at home and often have more discretionary income. Also, many of thse investors have considerable knowledge and xperinc with th many financial altematives that exist. A need for current income maks this segmnt of female investors differnt from the othr two segments. In many instances, these women support themselves from intrest and dividends on their investments, Because investrnents are often their sole source of income, they seek safety and minimum risk in the investment they hold. Thus, their ideal investment portfolio woLrldinclude a varie9 of secur invesiments that yield good current incom. While many dilferencs exist among the many female investors, these thre female investor segments capture important diflerences in basic needs, demographics, and Iifestyle as summarized in Figure A. Based on these diffrences, 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 product offerings and market terms of bolh communlcations,

MS-61

P.T.O.

FIGURE A Summary of Fmale Investor Segm$tatlon

Segmenl Bosic Needs

Kev
Demogrophics Limited to average Educated, working at 25 and 40

Tax Career lons term growln

Single

Security, future Current

Unmarriedwith None to limited

Limited to

behreen 35 and 55 Typically sinsle, 55 and older

Older

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 suggst 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 ?

MS61

3,000

MANAGEMENT PROGRAMME Term-End Examination December,2OO5 MS.62 : SALESMANAGEMENT

Time : 3 hours Maximum Marks : 100 (Weishtase 70o/d Not : This popr consisrs ol t'uo Sectiors A dnd B. Attempt dny three questjons Jrcm Section A Section B is compulsory. equol marks. All questions carrg

SECTION A 1. Djscuss ihe role and sjgnificance of pe$onal Selling jn the MarketingExchange Process taking the exampleof by (i) (ii) lnsuranceAgnt MdicalRepresentative

(iii) IT sofhrare

MS.62

PT . O

2 . What are the objeciivs of sales displays ? How can these

objctives be met when a compang is launching : (i) (ii) A ne!.r model o{ a car New range of high fashionapparel

(iii) lndustrialmachines

3 . Briefly explainthe variousiypes ol salesrepods which are

on being generated tlre field salesstaff. Also emphasize by their utility. 4. (a) (b) Briefly explain ihe steps involved in territory planning. How will you plan ter;itory allocations for (i) (ii) productslike solt drinks Consumable Indusfial machine, where the sales personnei do not cary the product and sales are achieved through salesliterature,leaflis.etc.

MS.62

SECTION B 5. Carefuuyread the followingcaseand answerthe questions given at the end o{ the case I Goran Landis is the salesmanagerfor an established plastic manufactufer. The sales {orce is oLder, expenenced, loyal, produdive, and highly resistant to technology.An earlier eflort to get salesrpresentatives to use computers, {axes, and voice mail failed miserably. The company wants to emphasizeselhng, hold down salescosts,attract high performingsalespeopie and weed oti )ow prtormers.Landis has discoverd saleslorc his is only spending about 20% oI iis ilme in Iac-tojace selling beiause the sales reprsentatives spnd most ot their time compleiing paperwork related to the orders, customers lorgetting appoiniments and reschedule, and following up on deliveries. force as a Once Landis finishd evaluatingthe saLes whole, he besan to look at the performanceof individual salesppople Supriyd Satporhy r. one ol rhe olde' sale' representatjvesoI the company and has the longest 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 yars. For base line comparisons,the company's averagesare on the lar right. having to

MSS2

P.T.O.

9l

x
;

^ =
.

r ^

a r

8
d j ' j

8
; S R * c . i d j

an

; : l s l S : r : 3

S : s X E
.Y E E 'H i

8 8 3 S . o 1 ^

si

Ki

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.

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8 I
:

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l P l

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.e

F I $ H * i i
t c l o 9 O

3? e E,

P 6

l ri gl
*l+l;

: i; E: E bE; Z $E E E . F F !
t
; b
b.

= = , 0 5

F s

t-)ttt. z

a ' 3 + E '-q T b b s b
b.4 + "

MS 62

Questtons (a)

Landis is concerndabout the amount of time sales representativesspend on paperwork, Given the circumstances the problem and ihe nature of the oI salesforce, whai would be the bst solution? Which oI the following would work motivating Satpathy ? best in

{b) (c)

Satpathy'ssalesdata showsthai she may be getting her sales gains by sacrificingone of the product lines. Should Satpathy spend too much time with low profit customrs Recommendto her what she ? shoulddo for cusiomermanagement.

MS2

3,000

MANAGEMENT PROGRAMME Term-End Examination December, 2O05 MANAGEMENT MS-63 : PRODUCT

Time : 3 hours MoximumMorks: 100 (weishtase 70Ed

Note :

This pqper consists of tw:o Sections A and B Attempt dny three questianslrom Section A Section B is comp sory' All questions 'orrv equal morks.

SECTION A l. Briel.y explain the .d.h quadranLapproach to prodr'rcL poftfolio management. Explain how you would applv this approach to manage the product portfolio of an.FMCG company dealing in personal hygien and detergent

2.

in What dre the key consideraiions designinga positioning product ? Describethe altrnativebasesoI strategyfor a positioningthat you can applyfor a smallcar for the lndian

M5-63

P.T.O.

3.

As a product manager,you have receivedabout five new product idasin your processed Foodsdivision.Whai are the processes ihai can be used to screnthese idasand seleciih best one ? Which processwould you like to use

4.

(a)

Comment upon the signilicance of branding lor consumerproductsin today,scompetitivemarketing envrronment. For a new brand of shavingcram 10 be introduced by your company, explain ihe brano name setecrion processthat can be followed. What are the major bottlenecksin new product developmeni? wrar rne hetnot approtriate e\dmple..expla,athe reasonsfor product fajlures.

{b)

5.

(a)

ru,

MS.63

SECTION B 6. given Readthe casegiven below and answerthe questions ai ihe nd oJ the case. . Komal Food Products Comp?rnyLtd.

Komdl j-ood Produ.ts .orn"ny whnh wa, found"d in groceryand other food producishad 1935 to manufaciure thp,ourspof yea-. g ow^ r_ o d \d.r enlerpn,p ha,.rng in offices and branchei in almost all ihe important cities of India. The company's head office and laciory were situatedin Calcutta. lts productswere distributedthrough five zonal sales offices which directed 25 district salesoffices The administmtive rsponsibility each zonal office was bome of by a manager whose duty was 10 promote saies in his ?one He wa' advivd and in*truc_ed by he head o'frce irom time to time. lnerewere Iour Urdelhe con ror ol each/ondl mandqpr functional heads, viz., personnel manager, accounts manager. sales manager and office manager. These executivesadvised and assisiedthe zonal managr on !,?riousfunctionsrelatingto the zonal administraiion. Each functional head 6njoyed considerable freedom and rndpppndpnce respecr h': work wrlh ro On m6tters relating to salsthe zonal manager received advic from the sales manager. The latier formulated policis,planned schedules salsoperaiions,suggested for improvements in district sales administration; and submittedhis views on all the mattersconcerningsalsto

MS,63

P.T . O

the zonal manager. Ai times he issued.orders and instructionsto the district salesmanager but these were typicallyrouted through the zonal manager.Ofdinarily his vie\rs and advice were accpted and approved by the 'The 'r sales manager w?s assisLed his *ork by rnreeproduct managers who were considred to be experts in their respctivefields. Their duty was to travel with the sales supervisorsof the various districis and study and market for ihe company'sproducts; surveyihe compiitive position of the company's productsi study dealer and consumr reactions.sales trends, and advise the disirict sales manager and ihe sales supeMsors regarding the stepsto be taken Ior promotingsalesin the districts. Every month each submitteda report on the salesactivitiesof the company io the sales manager. The relationship beiween the product manager and ihe sales manager is the same as thai beiween the zonal manager and also Also direcilg responsible to 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 five salAssuperuisors by besids severalsalesmen. The dutie. and funcrion> district salesTanagerq were of to: select, train and supervisehis salessupervisorand laid salesmenlollowing ihe policiesand procdrrres down by the zonal manager

MS63

(ii)

make a study of the nature of consumerdemand. changing market conditions, exisiing stock and to lormulate salscampaigns, promotionalmeihods

(iii) Iix th sales targts to be attaind in his territory lrom time to time liv) (v) formulate ihe credii policies to be followed after consullation with the zonal manager developbetter teamworkamong the salessupervisors . and salesmen

(vi) see that the customers were satisfied with ih company'sservices (vii) undertakesuch other funciions and duties as mighi be assignedto hjm from iime to time by the zonal manager. Every monih each district sales manager submitted a derailedrepon on rhp 1alpsdc-j$tre, ol Lhp comndny rn his district to the zonal manager.Ordinarilythese rports were passedon to the salesmanager lor ihe necessary action to be taken with respect io each district On th mornjns ol June 6. 1991, the following conversationiook place over phone betwen Mr. Rajan, the sales manager at ihe South Zonal Ofii.e and Mr Shankar.one o( rhe oi-',c1 m"ndgercrn thp zone Shankar : I wish to bring to your notice an important matter that needsyour urgent consideration....The producl managersare interferingtoo much with ihe salesactjvities of my district. I receive frequent complaints from the

MS 63

PTO,

supervisors that they are not able to carry out my inierferencefrom ihese instructionsdue to unnecessary pople. lJ this state ol aifairs continues it will be vry difficuli to maintain our sales. Tbe morale of ihe supervisors will be seriouslg affected. I will noi be responsibleif 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 need not worry' I shall call the product managersand see that they maintain the proper relaiionshipwith you.... Next day Mr. Rajan calledall the product managersand. rouiine matters,he said, .... I was told by after discussing are Mr. Shankarthat his salssupervisors complajningthai you a.reinterferingwiih thelr activities...... Defilliiely you are all xpeciedto advisethem on ihe steps to be takn for increasing sals. But, at th same time, please remember that you have to play only an advisoryrol ihese peopleyou must aiso seeihat the line While advising 15 ..ur11.o"1y ra.pecred. The product managers did not say anything. In the subsequent months Mt. Rajan did noi receiveany complaint from the districtoffice. But in the first week ol Ociober, while scrutinising salesprogressreport of the the various districis for the previotls quarter, the zonal manager found an unusualdeclinein salesin the district oI which was under the supervision Mr. Shankar'

M5,63

The zonalmanagercalledMr. Shankarand askedhim why there was so much declinein salesin his ierritory while all the other districtsshowedvery good progress. Shankar .... during the past three months the produci managers have not advised our men properly.In fact, ihey did irot advisethe supervisors the recent changesand of irends in the mafket. They seem to be unwilling to cooperaie with our sales force. Whai can I do ? Even then, we have done our best io mainiain sales....,, Whpn abour rnr, bv the zo-a mdnageron" of rhe ",ked product managers said, ".... We usedto give adviceto this d:trnr olfnp a..o a1 ue u.U"l]ydo wiLh othe, dr\tncr offices.On a complaini.seemsfrom Mr. Shankar.we ha.l been told by Mr. Rajan that we ,nere exceeding our authorityand unnecessarily interferjngwith the activities oi this district. We had been askdto restrarnourseNes... The district manager takes advicedirectly from the zonal salesmanager.We have got nothing io do in this matter Questions ' (i) How has the conflict siruation berween proouc! managrsand salespefsonnelarisen, What reorganisationof responsibiliiies producl or managers would you suggest to avolo sucn a situationin future ?

(ii)

MS-63

3,000

MANAGEMENT PROGBAMME Term-End Examination December, 2OO5

MS-6,I : INTERNATIONAL MARKET,NG

Time: 3 hours Morks: 100 Moximum (Weightage 70o/o)

Irot j

This paper consists of tuo Sections- A and B. Attempt any three questions Jron Section A. Section B is compulsory. All questions carry equal morks.

SECTION A l. (a) "The EPRG framework has implicaiions for the snategy formula'ion process. E\pldin with the help of examples. (b)

Briefly

explain the

techniques of

intemational

marketing research. How dos the Internet affect international marketing research ?

MS 64

P.T.O.

2.

"The world is becoming more and more mono cultural. Today you can get Japanesenoodles in the U.S. and lactor! are simply not I4cDon"ld. bursersin India.CulLurdl as imponanr as Ihey were earlier. Do you dgree or examples. ? with the help of suitable disagree Disclrss

3.

(a)

'terms delivery'on the price What is the elfect ol ol quoted by an exportf ? Explain giving an to be example, for Do you ihink making complex exercises product adapiationlor dilferent markeisis worth it ? D'scuss giving suitableexamples.

(b)

4.

Write short noies on any ,hre of ihe following I (a) (b) (c) Bill of Lading Deemedexports Intemationalmarketingcontrol

(A) Containerizaiion () Intemationalmarketsegmentation

MS4

SECTION B 5. You are th marketing executivein a food processing company producing fruit juices and frozen vegetables.The company is exploring ihe possibilitiesto enter' the intemational markets. The management has asked you to preparea prelimrnary rpporl covenng: (a) Advantages and challengesfor the company in entering the international marketsi Different modes of entering intemational markets and potentjal djlficDlfies jnvolved with each optionr

(b)

(c)

Physicaldistribution implications.

Prepare your repod covering the above aspects, for any speci{icgeosraphicreg'on (like Middle-East).

MS-64

3,000

MANAGEMENT PROGRAMME . Term-End Examination December.2OOS MS-65 : MARKETING SERVICES OF

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 rcgistered Jor this course for Jonuory 2004 semester. Section C is to be attempted bV all the students. All questions corry equol rnorks.

SECTION A Attempt anv three questions. l. (a) What are ihe larious modes of se^rce dlivery in intemational trade ? Discuss with the help ot examples. How is information search behaviour diflerni in case of servics as compared to goods ? Explain giving suitablexamples.

(b)

M965

P.T.O.

2.

(a)

Why do customers switch service providers ? Can you do anything as a marketer to prevent the custoqrers:from $ritching ? Briefly explain ihe charactristics of a good seruice guarantee.Formulaiea seNice guarantee{or a fixed Iandljnetelecomserviceprovider. Discuss the importance of non-nDnetary costs in pricing decisionsfor services taking the example of health services. ldenti{V and explain the product suppoit seNices which automobilemanufacturers offer to remain can competilve/for gainrngcompeiitiveadvantage. of the followmg :

(b)

3. (a)

(b)

4.

Write short noies on any tiree (a) b) (c) {d) (e)

Reasons groMh of the servicesctor for Franchising Measuremnt SeMce Quality of Channels of distribution for bank Classiflcation schemes lor services

M5,65

SECTION B Attempt any ahree questions. *rs What do you understand by internal marketing ? Why the concept specially relevant to services? How would you, 1f you werc in the call centre business,manage the inteanal marketing for your seNices ?

6.

In case of financial markets, where core benefits ihat most institutions offer are virtrnlly ideniical and the scope to use prica as a Comptitive tool is limited,productdifferentiation is a daunting chauenge.Do you agree ? Support your anst,rr by drawing upon exampjes of product differniiations in fihancial markets from the Indian scene-

7.

(a)

What changesdo you think have been brought about in the Indian healthcareservicesmarkt with ihe emergenceoI corporatehospitals? Whai a'e Ihe lactors governingrhe demand lor thp tourism product ? Crtticaiiy comment upon these factors in the context ol India as a tourism product.

(bl

8.

Write short notes on any three of the following : (a) (b) (c) (d) (e) Maluringcustomerexpectations Classilication schemestor servicej Promotional strategies for education services Electricitypricing Reasons lor grourth of the service sector

M5-65

P.TO.

sEcTloNc
9. Study the case given below and ansvrerthe questions given at the end. Prmter Courier Ltd. 'Premier Couder Ltd. (PCL) is an inno',ative ovemight

delivery company ihat helped change the way companies do businss. It was the first company to offer an overnighi delivery system, bui the company markts more than just a delivery srvic. What PCL rally 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 packages will be there by 10.30 in the moming". In fact, PCL sells even more than rliable dlivry. It designs tracking and inventory management slstms for many large companies. In other words, its customers buy more than jusf delivery senicei they bu9 a solution to thir 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,

M S6 5

Qusrions ' (a) What is PCL s product ? What are the tangibleand intangible elements of this serviceproduct ? What are the elmnts of service quality for a delivery sewice like PCL ? In what way does technologyinfluncePCL'Sservjce quality ?

(b)

{c)

f.

M5-65

3,000

MANAGEMENT PROGRAMME Term-End Examination December, 2OO5

MS-66 : MARKETING RESEARCH

Time: 3 hours Moxinum Marks: 100 (Weishtoge7@/o)

Note :

Thts poper consisfs oJ two Sections A ond B. Attempt any thiee questions lrom Section A. Section B is compulsory. All questions corry equal marks.

i I

SECTION A l. (a) Describe the K-Means ClusterAnalysistechnique. Gve examples situations of where they may be appliedefticienrly. (b) Why is crosstabulation very commonty a applid data analysismethod in marketing research ? Describe limitations this mernoo. the of

M5-66

P.T.O.

2.

(a)

What is ihe method of personification used in marketing research ? lllustrate thjs method wiih an exampleand its possibleapplications. What is longiiudinalresearchdesign? Describehow you can use consumer panels for conducting longitudinalresearch.

(b)

3.

(a) Descnbe method advrtising pre-tesi any ol research. (b) How are industrial marketing researchesdiflerent productresearches from household ?

4.

(a)

Descnbe the application of sampling in the conduct of consumergoods rsearch.

stratified random any fast moving

(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) {b) (c) (d) (e) Observation method of data collection Data editing Conelationanalysis Experjmenialdesignsfor research National Readership Survey

MS-66

SECTION B 6. Uttam Drishti Ltd. (UDL) is a company manufacturing and marketingspectacl {ramesin the national market. lt has decided 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 deciddio 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 questionnaire was used for collecting data : ? Q.1. Do vou wear glasses Yes,4.{o 'Yes' in Q1'l Do you wear : Q.2. tlf 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

bought or intend to buy ? Q.5- How muci did you pay lor intend to pay) lor the spectacle Irame ? _
Q.6. Your monthly income I Q.7. Your occupation: Q.8. Your education:

Q.9. Your ag :
Q.10. Your gender I

, Q-11.Your nameand address

MS 66 P.T.O

Assignment : (a) Commenton the research designfor this study. (b) Comment the questionnaire on used. (c) Outlinean analysis planfor the above questionnaire study. based

M 5-66

3.000

MANAGEMENT PROGRAIIIIT,IE Term-End Examination Decembei, 2OOS

MS-612: RETAILMANAGEMENT
Time: 3 hours MaximumMorks: 100 (Weishtase 704/o)

(i) (ii) (iit)

Attenpt ctnythree questions horn SectionA. Section B is compulsory. All guesrions corry equal marks.
SECTION A

1.

De{ine retailing.Discussthe scope and prospecisof riail sector in the Indian context, describing the drivers of grov,th of ftailingin the country.

2.

(a)

What are the stages of consumer decision making and their impact on reiail strategies Explain with ? suitableexamples. P.T.O.

MS$12

(b)

What makes locationaldecisions retailingsirategic in in nature ? Discusswith suitable examples the factors necessargto considei be{ore selecting a linal site .for an9 stof.

3.

(a)

How important is the role of pricing in retail marketing mix ? Briefly discussthe various retail pricing approachs available the retailer. io What are loyalty programmes? Whai purpose do thy servein the overallretail business Explain. ?

(b)

4.

Brifly discussih various types of non-store retailing ? currnliy in vogue.Whdr are tl'eir hmitations

5 . Wrire notes on any three of rhe lollowing :

(a) (b) (c) Functionsof Retaiiers Whel of Retailing RsponsibilitiesolMerchandising Manager

(d) cRM
{el Ethical Rsponsibilitis Retailer of

M5-612

SECTION B 6. Readthe casegiven below and answerthe questions given at the end of the base. Margin Fre Market Private Ltd. Subhiksha in Chennat, Margin ftee in Kerala, Bombay Bazaar in 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 insidersfeel they will spearheada revolution in organized rtailing. On the list of top retailersin the world, quit a fw are discounters. Around 604/ool the businessabroad comes lrom this formai. lncidentally, the largest retailer in tbe world, WalMart, is a discountstore. Margin Fre was registered a co-operative as society in 1993 in Krala and enteredthe supernarket business in 1994. lt is run by the Consumer Protection and Guidance Socity, a charitable organizaijon based.in Thiruvananthapuram. Today, it has emerged as India s numbq one supermarkelchain with 150 stores and a . turnover of Rs. 450 crores. Margin Free purchases directly trom manulacturrs at exjactory price and sells at lower prices than the MRP, as it eliminaies the margin accrued in the traditional manulaciurrsiockst-\rholesaler-rtailer network.

M5,612

P,T.O.

Margin Free takes extreme care lvhile pricing th products through its entire stores. lt has employed so{twarewhich evaluates th price by minjmizing profits. Every store is computerized and utilises the soft\rare to detemine tll prjcjng. Tlrjs helps jn ensuring that the products are raiionally pricedMargin Free has found exceptional success in its scalable franchisedmodel. It is now looking to upgradeto a central warchous concept. !"hich will help it manage growth further. The successof Subhiksha and 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, ihereby even earning a notional intdresi on its sales also- lis strategy has made it flush with funds, which can Iinance further expansion.Margin Free uses its customer base as a bargainingpower to strike discountdeals-Any dealer lvho wants to set up a Margin Free store has to bu9 at least rupeesone lalJr worih of share of the main Margin Free holding company. Margin Fre has a consumer base of 6 lakhs and it seils ihem consumer cards ar Rs 40 per year Cu>romers who buy using lhis card gel discounts on bulk purchases and also on governmentsubsjdized producis like Rs. 2 per kg rice. MS12

The stors ar now opiing for a major expansion drive. A ke9 part of ihis is the introduction of private labelling, which is the season's flavour in ihe je.tailing industry. For the purpose they have shortlistd15 items - all gneric labelslike 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-class famjly. For example,a packet ol tea which sells for an MRP of Rs. 120 at one of ihe corporate retailers, will be availablfor Rs. 90 at the Margin Free stors. The chain is now planningto open huge Margin Fre hyper markets,The first such hyper market, faturingan array of wares and spread over 50,000 square feoi ol well laid out space,is plannedto open at Emakulam.The two other hypgr markets would be opened in Thiruvananthapuram and lGzhikode. If the successoi retail activjty is measuredin the number o{ outlets. the existing 240 odd chain ol franchiseesmust have aheady made Margin Free the largest'pure retail chain' (as distinct from retailers who at manufacturers) in the privaie sector Even going by the number of footfalls, the Kerala-based reiailer must have already baten competitionby a handsomemargin.

M5-612

P.T.O.

The hyper markets will feature almost all conceivable retailing products under one loof - textiles, leather, cosmetics, provisions. eiecironic goods, consLnner durables, 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 imporid items - Chinese or otherwise - that are floodjng the retail market right now. The cooperative socieq is in the process of mobilizing resourcesfor 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 becauseii happens city to be the most commercialized 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 consumersin a very short span. HowPVer.in ils ioumey to succss, the Margin Free storeshave made lif slightly uncomfortable for entrenched interests who have, on one

MS,612

hand, ben fleecing consumrs and. on the other, resorting to indiscriminateunder invoicing to avoid tax. The lattr leads to loss of crores of rupees in realisable . revenue for the state government. Every month, Margin Free is opening upto 12 stores and the number has grown to 241 at last count. The chain has spread to liierally all paris of Kerala. It has seven franchiseesin neighbouringTamil Nadu already and two in Karnataka.The overallturnover has grown to Rs. 600 crore. Qustions : (a) What has been the role of p cing strategy in the success Margin Free Markets? of What are the salientfeaturesof Margin Free Market pricing strategy? Analyse the external and intemal factors that have made it possible to sustain the present pricing strategyof Margin Fre Markt. (d) Discuss limitaiionsof the existingpricing strategy the of Margin Free Market. Suggest appropriate changes.

(b)

(c)

MS12

2,000

trs611
MANAGEMENT PROGRAMME Term-End Examination December,2O05 MS-611: RURAL MARKETING
Time : 3 hours 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 equol marks.

SECTION A 1. What consiitutes rural markets in India ? Discuss ihe jmportant dimensionsof the rural market demographics and their dlrrables.
2.

implications for marketers ol consumer

What are the major fatures 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 ?

MSS1 1

P.T.O.

3. Whii are the factors that alfect the product adoption

' process? How would thesefactorsdeterminethe rate ot like , adoDtionin Lherural marketfor products (a) Easy+o-handle razors .. {b) Battery operatedTV sets 4. relevantto concepts Explalnthe importantcommunication of usageof the rural maikeis. What is the significance symbolsand pictures,colour and musicin rural marketing examples. with suitable ? communicaiion Discuss

5 . write short noteson any thfee ol th lollowing ,

(a) Hierarchyof marketslor rural con$rmets (b) Role of regulated marktjts or Mandis in ruml distrlbution tc)
(d)

deosionin the rural matkets Placeof purchase Thomsonrural matket index Impact of lT on the nrral marketingpractics

MS611

SECTION B 6. Read the case study given below and answer ihe questions given at the end of the case : Village Shops In a study conducted by ICICI it was found that : . Only 40 pr 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 prmiss and lackedeleclricrty In feeder villages, four fifths of the shops have one personworking full time, while in interior vjllages70 per cent have hro or three persons working on a parl+ime basis. 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 catgories kept four ltems or less ln each category,while onejourth had five to six items in each catgory. The total number of items stockedin retail outlets was about 50 in interior villagesand 115 in Ieder villages.

MS11

P..T.O.

The siock furnover ratio in the study is the number of times the stock is sold in a month. This is obtained by dividiog the stock level by monthly off-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 in towns 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) . (b) Critically e\,aluate the above rural retail scenario for the marketer of consumer products. What impiications does ihe above scenario have for th long term distribution system dsign oI a multiproduct necessity goods company wantiDg to make a loray into the rural markets ?

MSS11

2,000

MANAGEMENT,PROGRAMME Term-End Examination December, 2OO5 MS-68 : MANAGEMENT MARKETING OF COMMUNICATION AND ADVERTISING
Time . 3 hours Maxirnum Morks: 100 (Weishtase70o/o)

Noae : (i) (ii)

Attempt any thtee questions Jro,, SectjonA Section B is computsory.

/ttil All ques ons corrgegualmorks.

SECTION A l. Briefly discussthe M.W. Delozier model of the marketing communication process and discussit's relevance for {il (ii) New product launcb Social campaign lik safe drinking water or gende( equal'ty

M5-68

P.TO.

2.

(a)

Discuss th areas in. which rsearch is useful in developingdn elfpcnveadveni\ingcampdign. Discussany of the two mthods used to conduct advertising lectiveness ef resarch. Differentiate betrreen iraditional and Intmet in and advertising, terms ol iheir relativeadvantageg disadvantages. Which one oui of the two, traditional and Internei adveftising, will you choose for developing the adveftisingcampaign for the following producis ? Give justificationlor your answer. (i) (ii) Airlines Tickets InternetBanking

(b)

3.

(a)

(b)

(iii) Toilet Soaps 4. Diflerentiate and discuss the significance of each of the followingin advenrsrng media pldnning: (t [ii) Reach and Effectivereach Frequency and Elfective frequency

(iii) Cilcularionand Coverage liv) Mewership and Radership (vj Seasonal Pulse and E atie Pulse

MS68

,t.

'

SECTION B 5. Caretullg read the given case and ansrter the questions given at the end oI ihe case: Sir Richard Btanson'sVirgin Ailantic has launcheda Frequeni Ryer schene [or pets. The airline's animai Jn customersare increasing. 2003'04, it carrjed 687 pets bui thjs year pei business almost doubled to 1250 animals. Depending on 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 exclusive Virgin 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 rceive a ''passpori" which recordsone paw .1int Wr flight. AJter five flights lhe peb get even better gifls, such as hand'made bow) or non-sljp mat. They can evn donate 1000 mjles to their owner, but of course they cannot rdeemihe points lor flying solo. The pts whose o\tners travel premium class would get free pedicure, their fur will be blow'dtied and receive clothes Jrom GLrcci,Bufberry and Prada.

MS 68

P.T.O

. !a!

Questions (al

Who a(e tbe Target Audiences for sucn a sares promotioa and !'.,hat implicii or explicit benefits dos it offer ? Do you think that such a scheme will give sales volumesto Virgin AUantlc? If you have to handlethis task, what communication stratgy would you recommend to Sir Richard

(b)

(c)

MS-68

3,000

MANAGEMENT PROGRAMME Term-End Examination December,2005

MS-91 : Old ; STRATEGIC MANAGEMENT Revised: ADVANCED STRATEGIC 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 lor M3-91 : Aduanced Stratesic Monosement lron July 2005 onwards. Attempt any three questions Jron Section A. All questions carrp 20 morks eoch. Section B is compulsory Jor all, and corries 40 morks.

M S9 ]

P.T,O

SECTION A set I (Old) STRATEGIC MANAGEMENT 1. Briefly describeChandler'sand Porter's perspeciiveson strategg and structure- Illustrate your answer with

20
2. operative part of leadershipcapability lies in the abilibj to handle peopl in a manner that they give their best lor a caus, organizationand th task in hand. Comment on the statemnt with respect to handling colleagues and handlingbosses. 3. Why is it important to iniegrate R&D into corporate strategy ? Brielly discussthe factors which should be taken into consideraiion if the inno'"?iion process is to be managed successfully.Explain giving examples. Briefly explain the following I (a) (b) (c) 5. The Corporate Rating Apploach The Constituency Group AttitddesAudit Partial Social Audit/Aspect Audit 'The

20

20
20

4.

Discuss the \,arious modes of iechnology transfet. Explain the evaluation technology of with respectto the customels points of view. and the blryer's

20

MS-91

SET tI (Revised) ADVANCED l. (al STMTEGTC MANAGEMEM

"Good gowmance is epitomizea by prcdictab)e, open and enlightened policy making, a bureaucracy imbued with professional ethos acting in furiheranc ol the public good, the rule of law, transparent processes and a strong civil society paficipating in public affairs. Elaboraie the siatement in ihe contexi of corporatgovernance. Brieflg describethe role of board of directors.

(b)

20

2-

Discuss ihe difJerent approaches to modes of entering a forign market. 20

3 . What are the differeni sources of knowledge ? Explain

difteent types of lnowledge and Lhe factors which consiitute the knowledge'creation procss.

4 - Des$ibe in brief, the key developments in tranaparency

and reporting wiih respect to social audit. Wrire shon noreson any ,rrre ol rhe tollowing: (a) (b) (c) (d) () CorporatSocialResponsibility StYategicPhilanthropy IT in seMce setlor Strategicchoice Narayana Murthy Governance Commitiee on Corporate

20

M S9 1

P.T.O

SECTION B 6. Read the following case and answer the questions that follow: MYSORE FOODS LMITED Mysore Foods Limited produces and disirjbutes packagedfood productssuch as cereals,biscuits,spices, jams and jellies,syrups,etc. The company has a national market and algo xports smaLlquantities to oeighboudng conducts a large national advefising campalgn. li has 75 p)ants located all ovet the country and markets 70 dilfercnt products, each under its own countries. It irade mark. Though its products are all tood products, they are not otherwise closelv related. They vary lrom long margin specialiiies with comparaiivelysmall volume to large-volume items wiih smal profit margins. Dittereni raw materials and other articles are used in their processingand packing. All productsare, however, sold Lhrouqhthe -ame chdnnel. i.e.. rerail dnd provl'ion stores. Gross sales are Rs- 25 crore and iotal assts exceedRs. 12 qore. The management ol Mysore Foods Limited is 40

centralised.The Chairman of the Board, the Prsident and foui Vice-Prsidents who are responsiblefor saleg, production, purchasiqg arld taw make up the topmogt e\ecutive level of the company and operate as a committe on all generalpolicy matters. MS-91

Sales, advettisingand sales promoiion come undr Ali the Sales Vice-President. plant operaiions as wll as the research and engineeringdepartment repo( 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 Counsl. Financial responsjbilities are handed b'i the Presidentand employeerelationsare coveredby each Vice-President in his own area oI responsibility. The company was set up by combining severalfood products organisations and it bas acquirdothers since. One of the theories of the organiserswas that there would be great advantage wholsaledistributionlf one in salesman could cover an entir line on one call as against a number of salesmen,each callins to sell a sjngle line. 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 specifictime and attentionby the salesorganisation in accordance with its demands. . The head of the field salesorganisation reports to the Vice-President. The Adverlising Manager and the Sales Promotion Manager take caye of advertisingand sales promotion for ihe entiYeiin 6ut each product has its own advertisingcampaign and appropriation The Sales MS-91 P.T.O.

Promotion

Manager is in'charge of the missionarg salsmanwho contactsretailers-

To avoid neglect or error, single product or a group of products ar assigned io on of the 20 Product Managers. Each Produci Manager is responsible lor seeing that his product receivsdue aitention lrom the sals organlsation,the production department, and the advedisingand promoiion depariments.He specialiss in the pricins and sales appeal questions of his product. He reports, however, to the Sales Vice Presideni,who has th ovrall control. The Sales Vice-President can cu*ail any eIfoIls of the Product Managersit he is using his saleslorc for specialefforts on some a'ther product or products. There is no institutional advertising. AII advertisingis coordinatdand placed by the Advertising Manager while the linal authority rests wiih Sales Vice-President. Each plant is operatd by a superintendentwho is in-chalge oJ wages, maintenance, cost, output, qualiiy, h'ring, inspection and other normal plant operation responsibilities. suprintendents report to eight Regional Produciion Managers who are rsponsible to the Production Vice-President. The volume of produciion in eacb plant is scheduled the productjon controi group by repo{ting to the OperatingVice President. Final schedules are set after consultingihe SalesVice-Presroenr.

MS-9'I

The business has more than doubled in the last ten years and profits, both grossand net, have increased. The number of plants has also more ihan doubled.Purchases have increased proportionateLv. New taxes aod new reporis io ihe governmenthave addedto the complexity. management feels that certain problems are poientially dangerousand should be solved befofe thy The

There have been periods in which a product has got into difficulty becauseof loss of favour wjth the public, bad managementor even neglect.Atiention of the Sales Vice'Pres:dentto the problems of some products has caused him, at times, to lail to recognisedifficultiesin other productseven ihough the Product Managerof such producis had recognisdthem and brousht them to his attention. The burden on the presentofficersis becoming too heaw to ensure proper attention to all theit responsibilities.Employineni ol assistantserodes the personal touch of the top group that is ncssaryfor
q,..,c(f, I m:n:^.-.nr

Opportunities for

increasing produci-lines and

xpandlng the businss are being lost becauseof lack of executives' time to siudy them or to manage new products.In any business are where specialiiies sold under irade marks and brands are the major business of a company, it is necessary the company to continually for

M S9 1

P.T.O,

bring out nw products and io study old ones io determine the point of no retum regarding promoiion and advertisingexpenses. group has approvedthe idea Once the iop executives a new product, jt is pul under one ol the

al

Vice Presldents.He developsan oanisation and brings ii along. Ai first, the advertising appropnationfor a new product is noi the responsibility of the Sales Vice-Prsidnt bui oI ihe Developing Vice President. Eventually,if the product proves io b successlulit is iurnd over to the regular line 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 vry few men at the top, mean a heavier burden for them. The managementfeels 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. requiremor responsible Executives product. At the same time they wish attntion for each to retain the advaniags oI central management in purchasing,tra{fic, institutionalreputation and minimum sales approach and to maintain the high-calibreadvice and experience now present in law, advertising, accouniiDg and publjc relatjons-

MS-91

Qrestions (i)

How far is the existjng organisationalstructure effectivein the changedconditionsof the company? Indicate : (a) How the dsiredproduct responsibiliiy can be achieved (b) Any changesin line authority, ?, and (c) The use, if any, of sta{f. functionalauthoritg or committees.

(ii)

{iii) What policy and organisational structurechangesdo You recommend,and why ?

MS.9I

6,000

MANAGEMENT PROGRAMME Term-End Examination December,2OO5

MS-92 : MANAGEMENT PUBLIC OF ENTERPRISES

Time: 3 hours MoximumMorks, 700

There are two SectionsA ond B. Section A has tLUosets. Set I is meant lor the students who hooe registeredfor MS-92 prtor to July, 2004 i.e. upto Jonuary, 2004. Set ll is meont lor the students who hoDe registercdlor MS 92 frcm July, 2004 onwards. Attempt ony thrce questionsfrom Section A. AIl questions corty 20 'r'orks eoch. Sectton B is compulsory 40 norks. for all ond co ies

MS.92

P,T.O

SECTION A Set I (Pre-ret ised) l. are said to play a major role in our economy.' Discuss in contxi of employment, contribution to Net Domestic Produci and grou,th in investment. 'PEs

20

2 . Explain the reasons for PEs going inio disfavour the world
over sincethe bginningof 1980s. 3. (a) controls include intemal audit, brdgeting and financial reporting systems.'. Elaborate the statement. Criticallyanalyzethe relevance marketingin PEs.. of 'Financial

20

1A 10

(b)

4.

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

MS,92

Set II (Revised)

l.

Briefly commeni on the coniribution of PEs in the growth and 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 rsponsible firms ahd the importanca of social responsibility in the present context. 20

4 . DiscLrss role and performance ol iransport sctor in the ihe

present day context. encompassesa broad spectrum of possibilities between denaiionalizaiion at one end and, market discipline at th other-' Analyze the statement with respct to different dimensions ol privatization. 'Privatisation

MS-92

P,T.O,

SECTION B 6. Read the following case and answer the qustions ihat 40 tollow. ARRIVING TO LAND ANYWHERE As the taxi screechedto a halt, Mr' D'Souza for the umpteenth time, cursedthe 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 of his several prelunch stmtegic meetings. This meeting had a special importance as ii was to open the marketing plans o{ hls company ior a new the first from a private sector companv in helicoptr 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 ben given the licence to manufacture helicopters 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 in the lndian Air

MS92

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 culture in lndia. The company was sei up qrjth Bs. 1 crore as the project capital tn 1986. As per ih terms of joint venture, the helicopter was to be dsigned originally by the US partner and assembled in 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 to manufaclureih the beginning two modls - one with a carrying capaciiy of t o passengers,while ihe other wiih five, including ihe piiot in both the cases. The machine for both models was a four stroke piston, as against twbo propelled "Chetak' oI HAL, the only compliti\e ofteing in the market. Among other vital uses and service benefits, these helicopterc could land anywhere without rquiring helipad. Further, the fuel efficienca and $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,,oberejits tor deating distinctive competence in the market. The qualitg standards of ihe manufacturer were very high as was expcted from the industry where "technical excellencewas th name of the game". Besidsoperational qualiiy checks,ihe US expeds

MS-92

P.T.O.

wouJd supeNise the assembly in 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 were consldeGbly lo\ rer as compared to tbe competing olledngs. While the hro-sater model was priced at Rs. 10 lakhs, the live-seater modi was priced at Rs. 25 lakhs a piece. The helicopter was due to come in the market in June 1988. The Marhet Demand Th company had developed annual demand projections upto 1990. Basdon its assssment market needsand of compelitive ollenngs. rhe company had projeded an annual dmand of 60 machines. The plant had a produciion capacity of tuming out 120 helicopters per annum, As the concept o{ using helicopters as an 'executive transport was still to gain momentum, Mr. D'Souza expected an upward revision in its demand pfojections. 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 management corrld moilily'marl.ret resistance.In its task of achieving the expo( stiprjation of ?5%, the cc,rnpany had receivd enaouraglng enqu'ries trom sevral 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.

MS,92

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, j.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 evn news coverage. Already, Delhi Doordarshan and police dpadments of t o states had evinced their interest in the product. As for the fiv-seater model. Mr. D'Souzapinned hopes on company executives who needed to shutde between factories and headquadersin different places, and other business trips. The Concerns During the meeting, Mr. D Souza ihought oI sharing his irnrnediate marketing concems and a long term perspective plan. H was aware, with his background of marketlng highly technical industrialproducts, 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 competnt salesforce and 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 questions such as : (1) How should tlle chopper be positionedamong th evisting altematives lor the product ?

MS,92

P.T.O.

(2)

How could the company draw the demand from competing olferingssuch as light aircraftsalreadyin market ? What U.S.P. shouldbe used ? How could the company prepare itself for applying for a full lledgedlicenceto producechoppersntirely for the Indian market ? What arrangementsare neededfor indigenization components? of How should they approach and persuade the organizational buyers? How could it crate and maintain a long term strategic ad\rantagein the markei which was far {rom developd?

(3)

(4)

(5)

As Mrs. D'Souza divrted his chain of thoughts to the alternatives, the taxi suddenly came io life and resumd its crawling in the tmffic.

MS-92

2,000

MANAGEMENT PROGRAMME Term-End Examination December, 2OO5 MS-93: MANAGEMENT NEW AND OF SMALLENTERPRISES
Time : 3 hours Morks: 100 Moximum (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) (b) suppon to fi tiny sector inlrasiruciural and tchnical support to the SSI

What are the gaps in the suppoft structure, il any, that you can identify ? Biefly comment.

MS-93

P.T.O.

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 your market demand analysis.

3 . What are the disadvantagesof sole proprietorship as a

torm of organisation for a small enterprise ? An engineeing gradual,as a prospective entrpreneur wants to set up a smallscalepackaging unit, by putting up 25% of the capiial required from his own resourcesand is wonderingaboui whai form of legalentity shouldh form. What is the adviceyou would give him to help selectthe bst form of businessorganisationfor his enterprise ? Justifyyour answer.

4 . Why, in your opinion, do small entrepreneurs seem to

neglect the human resource functon in enterprise rnanagemnt ? What are the main methods used by rhem to train non-managerial employees Discuss_ ?

5- You hav just esiablished your textileprinting unit and are

geiting good orders lrom ihe market. Whai are the stabilisationphase challengesyou can expect and how would you overcomethem ? Explain.

MS-93

SECTION B 6Rad the casegiven below and answerthe questions given at the end of the case : Rani Singh The Exporrer Rani Singh is a woman who owns her own flusiness. Like mang other women entreprenurs sh is torn between her role of a woman i.e_, a wife, a mother, a home maker and most impodant a daughterin law of a middle classIndian householdand an entrepreneur. White she has been a successfulbusinesswoman, she often wonders if she had been a successful person !oo. Rani caught entrepreneurship fever lrom her father. He owned and manageda company,a travel agency and a lumiture store in an industrialiown of U.p. Her father was a compulsive achiever. Besides managing three businesses once, he seNed on the at school 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 subjectinsteadof 'A', father wanted to Know now come. He never talked about money, but he talked about

MS93

P.T.O.

integnty and character." She siartd br first vnhre at an age of 15 when she organized an excursion trip of her schooi students and earned Rs. 2,000 besides a 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 snse of independnce which was more important. I wanied to start my own businegsand want?-dto create my ov,n seed capital for the same." She completed her B.Com (Hons). from Shri Ram College of Commerce, Dlhi University and a short telm course on export documentation. She joind an export house as a junior executive and becam merchandising manager in three years time. Within six months of her promotion she resigned to st up her own businss 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

MS-93

Scale lndustries) notes that for the past five years, the number of women starting nw ventures is thyee times more. There ar several reasonsfor 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

recognizingthe gnder problem that exists tor achieving success, choose the ntrepyeneurshipas a way of controlling thir lives, pursuing interests that would be irnpossible corporatejobs. in Rani has travelled throughout the would. Every year she spends at least hvo months abroad visiting the buvrs, 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 crors. The women entrepreneurs have io pay a price that men do not have to consider.ln case of a woman there is often a conflict bet'reen the role oJ a "woman as a

home maker and ir business o\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

MS 93

P.TO

role in dividing hey loyaltis. "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 businesstrips. 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 (my e\-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 business thal fits well with their intetesb and have womn customers. These include edwation,

services in baul! care, women's cbthing,

enteftainmentetc. In order io overcomethis loneliness and to win over Shalini, my sister-in-law, I made her a part of my business and took her along on all meetings especially outside Dlhi. Bu1 this did not help, rather my mother-in-law and Shalini started poking their nose in my routine business matters. Ultimately, I could not tolerate Shalini's interference as it affected not on\, my

MS-93

indpendot

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 dtermined,th rewardsare painful. Quesfions : {a) Do you agrewith Rani's contentionthai it is doubiy difficultfor women io be entrepreneurs Justily your ?

(b)

Are lad)y saiisJactjor and enirepteneurship contradictorygoals? What are the coping strategies Lhat can be suggestedfo! the situaiion in whic.h Rani found herself?

MS,93

2,000

MANAGEMENT PBOGBAMME Term-End Examination December,2OO5 MS.94 ; TECHNOLOGY MANAGEMENT

Time: 3 hours MoximumMarks: 100 (Weightoge70Vd

Note:

Attempt ol, questions. All questions corry equal

1.

"Mosi of the poor counttis, though rich in natural resources, are faced wi$ some basjc problems." What are these basic problems and how can technology be helpful in (i) {jj) Foodi Shelier;

{iii) Health; (M (v) Communicationi Transportation;and

(vi) Educarion.

OR

MS-94

P.I.O

tat

ls another way of looking at technology life from th perspeciive of gror,th and diffusion." Explain th stagesof groMh of technologyaccording io this perspective. Describe ihe translormation. {ive stages of technology

''There

(b)

2.

(a) What are the key faciors in technology transler ?

Discuss various modes ol technoLogyttansfer. (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-facted actMtiesof diffusion.

MS,94

Discussthe role of \nture capital in developing technology

OR
Explain the information. 5. contents sources of technology

Explainany four of the following : (a) (b) (c) (d) TIFAC Analysisof technologygaps TechnologyMissions Technology support for modemization ol small scale R&D expenditure lndia in Factors on which royaliy raie for technology iransfer depends

(e) (fl

MS-94

2,OOO

MANAGEMENT PROGRAMME Term-End Examination December,2OO5 MS.95 : RESEARCH FOR METHODOLOGY MANAGEMENT DECISIONS
Time : 3 hours MaximumMorks: 700 ' (Weightoge 7@/o)

(i)

ThIs poper contajns tLaa sections, Sectlon A ond B. Section A cot'ttoins Jioe questions.Attempt ony questions Jrcm this section. Secfion B ts four Stotisticol toble will be proolded on demand. Use oJ personol non-progrommoblecalculators is

(iil (iii)

SECTION A 1. A sports goods company wishs to test two types of tennis racketsin order to determine\rhich one is "best". 15 {a) (b) Proposeand defend a precisedeltniiion ol "best". Whar is rhe ser of hvporheses rhar shouldbe tesred? Discuss.

MS.95

P.T.O.

2. What is Discriminant Analysis ? What ar ihe differences

behi/een Regression Analysis and Discriminant Analysis ? List oui a few research studieswhere Discriminant Analygs has possible applications.

3. "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." Elucidatethis Statement, 4. ' What are the differeni categories of research teports ? .' Explain each of thes categories in deiail. Aiso give hro 15 examdes o{ reporti Jrom each o{ these categories. Write short notes on any tlrree of lhe following : {a) {b) {c) (d) {} Endogenous uariablesand Exogenous l'ariables Scrutiny of secondary data Routine and Non-routine decGions Eements ol CommunicationDimen5ion Type of Bibliographies 15

5,

MS-95

SECTION B

6. Define Dichotomous data and the Guttman Scale. Mention

truo teasoDsqrhich mal<eGutiman Scale an impractical tool for the measurement oI attitudes. The weight (gms) of 31 books picked from a consignment

20

, 1 . 0 61 0 7 , 7 6 , 8 2 1 0 6 ,1 0 7 ,1 7 5 , 9 3 , 7 8 7 , 9 51 2 3 , , , 7 2 5 ,L 7 7 , 9 2 , 6 , 7 0 ,7 2 7 . 6 8 , 3 0 ,1 2 9 ,1 3 9 ,1 1 9 , 1 8 715,728,100,186,84,99, 113,204, 111

Test whether this sample may be treated as random.

MS-95

7,000

MANAGEMENT PROGRAMME Term-End Examination December,2O05 MS-96 : TOTALOUALITYMANAGEMENT

Time: 3 hours Marks: 700 Maxilrtum (Weightage 704/o)

(i) (ii)

There are two Sectionsj Section A ond Section B. Attempt ang three questionsJrom SectionA. Eoch question corries 20 marks.

(iii) Section B is compursory ond carries 40 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)

and Why has TQM been gainingpopularity? Discuss then commnt in the context of Indian situaiion.

MS-96

P.l.o

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. Wiat prccedure should a business firm follow in order to systematicallyintegrate quality with strategic planning process ? What are some TQM ? Discuss. of the humanistic elements of

(b)

3-

(a)

(b)

How can an organization generate greater commitment to quality on the part ot its mployees ? What approach should it follow ? What ar the benefits ol implementation Discuss. ? ISO 9000 QMS

4-

(a)

(b)

Discussthe process {in general) about the decision on quality awards {by quality awarding organizations).

5.

Explain any tour of the followins : (a) (b) (c) (d) Malcolm Baldnge Award Direct and indirect costs of industrial accidents Control charts Principles of Benchmarking

(e) 5'S concept {fl Concept and Deployment Rationale of Quality Function

MS 96

. 6.

SECTION B

Read the following case care{ully and answer the questions given at the end : ABVIND MlrIS For the Rs 413 50-crore re{rile-makerArvind Mjlls (Arvind),global quality isn't just a buzzlvord.It's a target that must be met 365 days a gear, 24 hor.rrs a day, 60 minutes an hour, 60 seconds minute to ensurthat a every millimetr ol the 1.90 metresof denim it spins out every secondconforms to the specilications laid down by Aruind's global cusiomers. For, demanding buyers like the $s.g,billion Levi Straussand the $4.3,billion VF Corp., which owns the Lee and Wrangler'sbrands,accept no - and that means no - deviations {rom their stringent s.tandards.So, t}re flagshipof the Rs. 1,774-croreSanjayLalbhai Group 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 it to tI customer. Actually, Arvind's planning for quality began in 1987 when it chose globalisation as a suruilal stratgy. 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

M5-96

P.T.O.

from world-class producers." Manulacturing fabrics for garments like sarees and blouses - a terribly competitive market with low margins - Arvind, tike its pers, was ralaged by compeirlion in rhe early 1980s Forced to target the global market, Arvind chose high-end denim : a commoditisedraw material, where not tolerate variations. Says a Singapore-based vice president ol Merrill Lynch, who tracks 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 cnt oI its denim output - the quality goal that Arvind's top managemnt team - led by Lalbhai and Group CEO P.R. Roy, 64, a tormer prolessor of texrle enginneringal lhe MS Universiiy in Baroda - set lor the firm was! as Roy puts it, to "build quality tnto the processraiher than rely on inspection." As a lirst step, the company formalised its quality vision in a statemnt that appears on every table and wall of Arvind's p)ants : "We are committedto implementing all actions necssary to ensure that coniracts with customers are honoured to the complete satisfaction of customerc." Since this mant letting th customer dictate apparel-makers do

M5-96

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 - neds.Consider, for instance, the $ality improvement process whereby AMnd baggedLevi Straussas a customerin July 1994. Way back in 1986, Arvind sent its first sample to Levis Strauss, at which point of time the jeans-maker subjected to its specificaiions it criieria - which relate to the diameter of 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 nw infrastructure, redesigningits sourcing, shopfloor, and process radically to meet Levi Strauss' requirements. A shidy of the cotton'picking process rvealed that while picking was besl IeIt to agricultufal workerc, it Lt,as the post-pickingactiviiies- ginning and pressing- ihat generated unevn qualiiy. So, tuvind embedded qualiiy into the process by deploying a 150-strong workforce of its own to supervisthe buying, ginning, and pressing procssat cotton farms in Punjaband Cujarat.

MS-96

P.T.O.

HOW ABfu'lND ENSURES QUAIITY ON TBE SHOPFLOOR I &Pe$nsI imanaeom'l e I lmm

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The next step was to redesign the manufacturing process to include quality checks at every step. Today, Arvind's 8.5-million-metre export 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, gnral manager (manulacruring) : "Based on our experience. we concludedthat materialsllows are like energy flows. The trick is to optimise them."

MS-96

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 examinedfor defectsithe 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 product examinationrevealedtoo many variations in the diamter 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 variation at any stage gos beyond pre'set specifications, the spinning line stops automatically. Similarly, when the indigo dyed dnim 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 quality control devices to cover viriually every detct that it has identitied. Fabric flaws have been ironed out by identilying . uneven weavingspeed as the culprit and putting in place machinery to nsure a consistent weaving speed of 140 metres per minute. Shrinkages have been controlled by rgulatingth moisturecontent wheneverthe denim is dipped in a wetting agent. MS 96

P.T,O

Most important. the problem of too much extraneous matier in the denim has been addressed tlacking the by problem down to the bale-management process used betore the coiton enters the machinery.Being a natural fibre. found Arvind's workers, cotton is suscptibleto variations. So, the mixing processhas been automated with a robotic device - calledihe Blendomac.- which mixes cotton from variouscatgories balesas per ach of buyer's specifications. Intent on servicing all its customrs' needs, Awind has dvisedother checkstoo. For instanc,the walls of the plant have been designed as curved surfaces, rather ihan horizontal or vertical ones with corners, to ensure (har cotLon does nol crrck anywhere. On the shoplloor. ihy have installd exhausts at rgular intervals to suck out the dust. Unwilling to rely on thse automaled checks alone, the firm has designeda second line of quality control ; regular off-line laboratory analyses of the matenal produced,followed by a manual check by trained people who scan tie finished denim under standard lighting conditionsand IIag any flaws. quality steps arose out of customer specilicaiions too. Intemationallg, fabric manufacturers use a four-point system of categorising defects- basd MS96 These

on parameters such as the lengih and the nature of the yarn - giving th buyer the option ol cutting out that particular strip oy leaving it in. To conform to thse requirements, Arvind had to install manual checking

To back its quality systems, the company has chosen a quality focused recruitment and iraining policy. Since th critical areas on th shop{loor have on line controls, with a local ara network connecting the seven functional heads in the plant, tota' computer literacy is mandatory. So, the ninimum quaiification for an entrl-1e\/e1 worke-r is a diploma from an industrialtraining institute. To activate its its quality-control devices, Awind

workforce to shut down macnmes themselves wheneverthe 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 promotes teamwork. Says Kamal Bagchi, 48, manager (qualitg control) r "We are in a fast response so business, we have to look at multi-skilling our pople."

empowers

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THE QUAUTY PAY-OFF prclits As the qualityol products rose, zoomed response in

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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 evntually arrived at a stage in 1994 \,!here it could snd blankets comprising samples from dif{ernt balee so that Lrvi strauss could treat the blanket with waier or chemicals to give it the desiredlook and then indicaiewhich of the balesit would

MS96

1D

preler Arvind used. During the intewening period, recalls Roy, "they had seen every nook and corner of our plant and ensuredthai all oul systems intgratedwith 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,the $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 denims.These movesare designed to plug a perceived quality Sap in product development. M5.96 11

P.T.O.

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, thre is a definite lag in their ability to innovate and keep pace with iniernationaltrends." A(vind's decision to go in for ISO 9002 cedfication is customer'focusd too. Says Rajiv Dayal, vice-president (xports) : "lt gives a higher comfort level to the buyer." Palpabletoo is the pay-off from quality. With an 85 per cent repeat buyrng |ate, the last time ihat the company had a consignmentretumed on quality grounds was in 1991. lis denirn quality has been ratd in the top ten percentile on the basis oI indePendent validation by the Swiss company, Uster, which monitors the perlomance ratings of yarn from companiesacrossthe world. ExplainspresidentAnand Parekh, 45 , "We figured out early on that quality wa9 going to be the one imperativefor long-term sustenance.'That's why Arvind thinks the world ol quality - quite literall! Questions (a) ;

What are the main elementsof Quality Programme at Awind Mills ?

MS-96

12

(b) What steps in the manufacturing system has Arvind

built in so that it is capable oJ meeting ihe company's vision and dlivering the requirements of its Qualitg Programme? What were the motivations for Aruind Mills to insiall a rigorous quality system at its manufacturing tacilities? 'Best What Practices' lrom the case can you discrn lrom the quality programme at Arvind ?

M5.96

13

3,000

MANAGEMENT PROGII{II,TME Term-End Examination December,20O5

BUSINESS MS.97 : INTERNATIONAL

Thhe : 3 houts

Motks: 100 Moximum (Weishtose 70W

(i) (ii)

There are tuo Sections: A ond B. Attempt ony thrce guestions Jrom Section A which corry 20 motAs each. Seetion B is cofipursory 1nd catries 40 ,l,orks.

(iii)

SECTION A 1. Explain ihe Theory of Compatative Cost Advantage and examine its rele\rance in ihe context of ptesent day silualion. "Several of the past MNCS have givn way to global enterprises.' What causessuch changeoversand what benefits can the latler gjve to sucb enterprises I P.T.O.

2.

MS.97

3.

(a)

"ln designinga 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 in business the presentsiiuation? Discussthe practicesand preferencesof MNCS in regard to employment and labour relations in host countrresA.L. Tung (in his contribution : Seleciion and Training of Personnel Io( OvrseasAssignments) has proPosed a comprehensive approach to expatr'ale selection.Disclissthe main points of his approach and cdticallyevaluate them in ihe presentcontext. logistics? What actjviijesare involvedin international How could an intemational lim optimize iis logistics? of ihe tollowing :

(D

4.

(a)

(b)

5,

Explaln any iour (al (b)

Managrnga mulli{oral sral?gy Ffanchisjng as a method/mode of entry in a foreign Total Ouaiiiy Management : Its role in international busmess Cross-culiuralnegotiationprocess The emergenc regionaltrading biocs ol Evaluation o{ project perfomance

{c) (d) (e) (0

MS97

SECTION B
6. How ha. clomesric trberatr,"riondrd glob"lisatror of busi.r.<s aflectpdlrdid s nd rcinarion the worlo e.onomy i.r with reterence to : (a) (b) 7. intemational flade ard jnvstmenr transferoJ technologg

"MNCS are reluctant to engag in innovational activity and R & D expenditure outsidetheir own country." Comment on lhjs slate.rn.ntwjtb specjal rejrence to developing counllres. Like overseas Chinese,non,resident Indians(NRls) har been playing a crucial role in fuelling the industrial groMh oI lndia. They have the skills, ihe brain-power, and the cirpital io make a diflerence_" Comment and illustrate with

8.

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3,000