MS- Dec 2005

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MANAGEMENT PROGRAMMETerm-End Examination

December, 2O05

MS-l ; MANAGEMENT UNCTIONSND

BEHAVIOUR

Tirne 3 hours Mdximum Morks : 100

(Weishtdse70Vd

'

(i) There are t&o SectlansA and B

(ii) Atternpt any thrce questions rom SectionA, eoch

question canying 20 morks

(iii) Section B is compulsory and corries40 morks

SECTION A

1. Enumerate various sgstemsand processes nvolved in

managing an organisation. Briefly explain system concept

and its inl€r-relationship with subsystems in an

organisational et-up.

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2. Discuss various techniques used in d€cision making.

Describe what are the main barri€rs to effective decision

maling. Explainwith examples.

3. How do Tradrtional,Behavioural nd lnteractronist ie$s

explain the processof conflict ? Evaluate he chang€s

which iake place within and bet'reen the groups as a result

of longstanding nter-group onflict.

4. "Various multi-faceted task and activities o{ an

organisation have to be difler€ntiated into smaller,

manageable components to faciLitat€ eJ{icient

achievementof objectives. Elaborate his statementand

discussunderlying issueswith sriiable examples.

5. Write short notes on any three of ihe {ollc^ring r

(i ) Responsibilitiesf a manager owardssociety

(ii) MBO

(iii) Organisational rulture and cljmai€

(iv) Span of controland levelsof management

(v) Leadership siyles

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SECTTON B

6. Please read th€ case aDdanso./er he quesiionsgtven at th€

Case

One alternoon in June 1972, Seth, ihe indusirial

engineer o[ ABC CompaDy, was ca]led ]o the office of

hjs immediate superior Kapil, the production rnanager.

Kapil said, "Seih. I want to discussa situation in the

ptodqction dppartmeni. A lot of people feel tha( Joshi is

oot the right man for ihe Assistant Superintendent,s

position. Th€ Presid€ni and others have decided that I

har,€ got to lire Joshi or at least mov€ him out ol

produclion.Ev€ryonewanis to tire Joshi, but j won't do

il to him. I was talking r'irh Bhal rhi. morning. dnd we

decided hat you might be able to make use of Joshi in

Vourd€paftment.

Seth was surprised by borh th€ iniormaiion, and the

proposal.

Kapil concluded his comments with,',Seth t amaskng you to iake Joshi. You can sa9'No. Bui ihen he

g€is fired. I have told Josbi this. Also, Joshi kDows hat

if he goes with you he wjii take a pay cut. How€ver, I

ihink you can_make use of him both to gour ot,\,n and his

satistaciion.You are. anl^,Jay, arryingour an rn-process

qualiiy control, and you might be able tomak€

goodu$e

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of Joshi in view ol his long technical e\perience aI

production vrork. Thinh ii over, and lei me know by

Seih thoughf over ihe matier.

ABC Company had bear a successfulentepnse until

March 1972 at which time it suJleteda sharp declineof

prolits : saleshad fallen olf, and production costs had

isen. The Presidentadopted three measureswhich h€

hoped would improv€ the condition.Fjrst, by cre?tting n

Industrial Engineering depariment {or establishing work

standards oD all production operations, to detetmjte

which manujacturjng cosis were out of line and wh€re

r€medialaction shouldbe iaken. Seth, 28 yeals old, u/ho

had been wiih the company for two lears in thePurchasing €partment,was seiected Seth had B E and

M.B.A. degreesto his credit. Whai he lack€d in his

business experience he made up by his eagemess to

learn. He was ambitious and liked by hjs associates-He

wanted a translet from Purchasing to Productjon for

better opporiunities for advancement.

Secondly, he consulled a Management Consullation

fi.m to make a study ol the Ptoduction D€partment They

pointed out that ihe chain of command was too long

from Production Manager ihrough Plant SuperintendeDt

through Assistant Supetiniendent to Foremen. They

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recommended the elimination of the position of Assistant

Sup€riniendent.

Thirdly, he engaged an Industrial Psgchologist to

appraiseall the Supewison,Personnel.

Joshj had been with the Company lor 20 y€ars since

its lounding, and durjng this period had work€d on every

productlon operation,and his lagt 11 yearc had been in

supervisory capacity- His manners "vere rough andaggressive, and he had jittie formal educaiion. The

Industnal Psychologisfs report about Joshi coniained the

following poinis :

(i) Evalualion for the position ol Assistant

Sup€rinlendent Not good enough.

Capacity for good human relations in $lpelvision :

Will have {nc$on t€quently.

Need for development counrelling : Counselling

greailyne€ded.

Geneol evraluationJoshi had a good abilityproiite.

He suffers {rom a sense ot inleriodty. H€ does not

like the responsibijity of making decisions. Hjs

$pervision is ihat ol Autocratic type. Though he has

the ability, as {ar as his p€rsonaliiy make{p is

concemed,he is out of place n the presert position.

{jt

iiiu

(iv1

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Qn€stJons :

(a) What is the.ore plobl€m in the cas€? Exphin.

{b) Explaln Joshi's behaviour and wotk exped€nc€

vi, a vis rh? psycholoqbl tepon.

(c) How do you see Kapil's suggesiion io Seth ? Give

(d) What are Seth's consideraiioris in taking a d€cisiofi ?

What should he do ? Explain.

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Its2-l

MANAGEMEM PROGRAMMETerm-End Examination

December,20O5

MS-2 : Pre-Revised MANAGINGMEN

Revised MANAGEMENTOFHUMANRESOURCES

Time 3 hours MoximumMorks I00(Weishtoge70o/a)

Note: There are ttto SectionsA and B. Section A has

tuo sers. S€t I is meant Jor students who houe

registercd upto June,2004. Set ll is meont lorstud€nfs pfio haue registered in Jonuary, 2005

and onwotds. Attempt dny three questions lrcm' Sectian A. AII questions carrg 20 morks eoch.

Section B is compulsory for oll and cofties

40 marks.

SECTIONA

(set I)

Define p€rsonnel managem€nt. Briefly discussthe major

lunctions and operations o{ personnel manag€ment.

Explain the purpos€ and types of inteMew in th€

ofganizaiional ontext,and discussheir limitations.

l .

20

20

2.

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3. Describe any t\rro methods of perforrnance apprailal.

Compare their advantagesand disadvantages.

Briefly ouiline the features ol a grievance handling

procedure and ihe steps involved in it. Cite a suitable cas€

study io support your answer

Wrile shon nolecon any rhree of the followng :

(a) Induction

(b) Evaluation of training programme

(c) Maslow's need hiemrchy theory

(d) Principles oI salary formulation

(e) Suspension nd dismissal

5 .

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SECTION A

(Set Il)

l. Trace the evolution of Human ResourceManagement,

Discussthe 5lrategic and political perspectivesol HRM.

2. Why is human resourceplanning mportant? DiscussheprocessoI human resource planning.

3.Discuss he competencyapproach o job analysis.Brieflydescribe ny iwo methodsof competencymapping.

4. Discuss trdining ne€d €valuation and describe various

traininge\,?luationechniques.

Wriie short noteson any ttrr€e of the followng :

(a) Performancecoaching

{b) Human ResourcenformatronSysten

{c) Fringe benefits

(d) Industrialdemocracy

(€) Outsourcing

20

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SECTION B

6. Please read the following two cases and ahswer the

questions given at the end of each 40

(A) Case Study

Mr. Ramchandrans LheChie{ Execuliveof ABC

Limited Recently, t was decidedby the Board ot

Directors that it would be profitable fot the

corporation to set up a separate Marketing

Department. Mr. Ramchandranhas been direcied

to pick up a p€Eon who he feels is capable of

heading the departrnenl. and lhen putrng this

person in charg€ of getting the deparinient on

its feet. After consideringa number of good men

Mr. Ramchandran has narrowed the lield down to

two possible choices : Rajesh Mehta and Ptamod

Kumar.

Rajesh Mehta has a good track record with the

company. He was hired €ight y€ars ago, and

through the years he has shown a good deal ol

drive and initdtive in all ol his endeavours.He is an

aggressive young man, and has t€ceived th€nickname oI

'go-g;tter' in his depaftment. Although

Mehta seems o be more concernedat times with

ends rather than means,'he is very efficient and is

considered good leaderby those who work under

hjm- As one worker stated. "Although he can get

rough with you at times, 9ou always know where

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you stand with him, and when you have don€ a

good )ob, he lets you know jt." Mehta is also

qedited with accepting full responsibilitg, in ail

cases, and making quick decisions wh€n action is

called or

Pramod Kunar has been wiih the company for

eleven yearc. He is well liked by all in his

deparunenr. nd his work is , i rs l la le. Kumar 's

leadership slyle di{fers from Mehta's in that Kumaris noi as aggressiv€ and quick to act as Mehta.

Belore Kumar makes a decifion, he generally

consultg others who he feels can conttibute further

information on a given subject.This oft€n includes

those who work underhim. Those who work under

Kumar consider him a good lead€r, and stale that

the atmosph€re ol participation produced by Kr]mar

really encourages heir utmost indivldual outpui

while on the job. This can be seen by ihe

production increase which soon occurred when

Kumar became he head of his work_force.

Qoesliotrs t(a) f you were Mr Ramchandranwhom would you

sehct as the head of ihe Marketing Deptt. ?

whv?

(b) Will you give any weightage to the lengih ol

service in ihe organisation ? Why ?

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(B) Case Study

Raghav Ch€micals Ltd. has planned for

computerisation of nearly 50 per cent of theproduction operations and control. Ii has taken care

of all resources n the computerisation plan jnciuding

human tesources- Th€ present inventory ol human

resources and future requirements of the production

depdnmenl were specifred s given hereunder.

The human resourceplanners suggested he

redeploymentol chemicalenglneersn their newly

staited ister oncern,.e., LaxmanPaperMillsLtd.,

and retr€nch sumlus oI €mploye€sof all other' cat€gories. They also recommended to the

nranagement hat there was no need for firrther

requifunentr lor ary otheractionplan.

Categoryof Human lnventory

Requirements

alterCc,ftputerisation

Surplus

Chemical engineers(Operation)

15 8 7

Chemical engineers(Maintenance and

control)

10 6 4

Mechanicalengine€rs

{Maintenance)2 2 0

Snpervisors 1 0 2 8

Operatols 30 10 20

Quality conirollers 5 1 4

72 43

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The compuierisahonwas over by the end of

1998. Wh€n the managementwanted to start ihe

produrtion on the new)y computerised process, itwas shocked to note ihai not tnany employees in

the produciion departn)mi were suitable to th€ newjobs and ihe inlormation supplied by the human

resource plannets in this regard did rot match wtth

the teatity.

Questions:

ldentify the probl€m n this case-

To what exient arc the hum;n resource

planners reslonsible Jor the present slaie of

aflairs?

What should he managenrent o now to deal

with ihe problem aking into account both rheshort-term and long term perspective ?

{al

(D

(c)

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Decernber. 2O05

MS-3 : ECONOMIC ND SOCIAL

ENVIRONMENT

Tine : 3 hours Maximum Marks: 100

(Weishtase 70Yd

Note : There are two Sections A

any three questionsJrcm20 marks each. Section B

carries 40 morks.

and B. Attempt

Section A, carryingis comput6,ory and

SECTION A

l. Whai do you understandby the socio-culturalenvironment

of businessand how is it important for business ? Briefly

explain with suitable €xamples. 20

2. Examine the grori'th of public sector in India and analyse ts

contribution to overdll economic development. 20

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4 .

What are the main features of Rao- Manmohan Model ol

Development ? Do you agree with the statement that whil€

the model succeeded on gro\rrth, it failed on equity ?

Discuss,

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

trade and its implications on production, employment and

recnnorogy.

"Economic reforms w€re ad hoc and noidriven by clear

goalsand objectives."Discussn detail.

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SECTION B

6. What are the basic objectives of {iscal policy ? ArlaLyse

India's fiscal polica in the light of these objecijves.

7, Write short noi€s on any trro of the following :

(a) ManagemeatMovement

(b) Relationship betue€n Government and Private sector

(c) Administeredprice mechanism

(d) Trad€ policy reforms

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Nor€ : Attempt ony fiDe questions. All questions carry

equal marks.

l. (a) "Accorltting js a seflice lunction." Explain. Wbat

are the tro facets to the role ol an accountant ?

Discuss.

(b) Asset iike land is shown at its original cost in the

balancesheetof a company.Justily this accountingpractice by explaining the releEnt accounting

conc€ptson which it is bas€d.

2. "The EBIT - EPS analysis s an important tool in the hands

ot ihe {inance manager." Explain this analysis with the

help of an exampleand discusshe purposeservedby ii.

@MANAGEMENT PROGRAMME

Term-End Examination

December.2OO5

MS-4 : ACCOUNTING ND FINANCEFOR

MANAGERS

Time 3 hours MoximumMorks t00

(Weishtoge704/ol

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3. From th€ followingparticulars repareTrddingand Profit

and Lossaccount i Mr. R lor theyearended 1-3-2001

and a balance heetas on thg samedate :

Dr.Rs

Cr.Rs.

Buildingsa/c

Machinerya/c

Cashat Bank

Cashon hand

1870p.a. loan obtain€d yMr. R on 1-6-2000 nmortgage f building

R's Capital

Sundry Debtorslsundry Creditors

Stockon 1-4-2000

Puchases,/Sales

SalesReturn//Purchases eturn

R€nt

Establishmentxp€nses

Eleciricity charges

Telephone harges

Commission n Sales

Insurance remium

Bad Debts

BiUsReceivable

5,00,000

2,00,000

1,00,000

90,000

10,000

5,00,000

1,20,000

25,00,000

1,20,000

60,000

1,80,000

15,000

10,000

30,000

10,000

20,000

75,000

3,00,000

5,20,000

4,00,000

32,20,000

1,00,000

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You are required o provide or depr€ciationon buildings

@ sa/o .a., on machinery@ 25%p.a.,andon fumihre

@ 1Oqo.a.

Provision or badand doubtfuldebts s to be made at 5%

on sundrydebtors.

Mr. R's managers"nfitled

o a commissionf 10% on

the net prolii after charginghis commission.

Closing Stock was not taken on 31-3-2001but on

7 4 2001. The following ransaciionsook placeduring

the period ron l-4-2001 to 7 4 2001 ,

SalesRs.2,50,000

Purchasss.1,50,000

Stockon 7rhApril 2001wasRs. 1.80,000.

The raie ol GrossProfiton Saleswas20%.

InsurancePremium was paid for the year ending 30th

June2001.

Interest n mortgageoan o beprovided pto31-3-2001.

Outstandinglectricityharges ereRs. 2,500.

4- (a) What do you understand by Budgetary Control ?

What steps are to be taken to install an eflective

system of budgetary control in an otganisation ?

Discuss.

(b) What is meant by PerformanceBudgeting? Discuss

its main objectives.

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5. Comment on ihe follodng statements :

(a) Higher net profit margin need not necessatilyead o

higher rateof

return on investment.

(b) A high operating everages not alwaysdesirable.

(c) A company'sprofitability s better judged by PBIT

mther ihan PAT.

(d) Cost of debt is alwayscheaperas compared o other

sourc€sof funds.

(€) From the creditors' poini ol view, the lower the d€bi

ratio, ihe better t is.

6. The balance sh€€t o{ Best Manu{actur€rsLtd. as on

31s' March 2004 and 2005 are as follows.

Liabilities31-3-04

Rs.

31,3,05

Rs.Share Capital

5% Debentur€s

Sundry Creditors

Profii & Loss A/c

DepreciationFund

Reserve for

Contingencies

OutstandingExpenses

2,50,000

1,00,000

1,15,000

20,000

40,000

70,000

15,000

2,50,000

80,000

1,08,000

27,000

44,000

55,000

24,000

6,10,000 5,88,000

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31,3-04Rs.

31-3-05Rs.

Land& BuildingMachinery

Stock n trade

SundryDebtors

Cash& BankBalances

Temporary inv€stments

Prepaid xpenses

1,50,00082,000

1,00,000

85,000

60,000

1,31,000

2,000

1,50,00090,000

1,14.000

81,000

55,000

95,000

3,000

6.10,000 5,88,000

Following additional information is also audilable ;

(a) A new machinerywas purchasedor Rs. 30,000 but

old machinerycostingRs. 15,000 wassold forRs. 5,000, accumulated epr€ciationwas

R s .8 ,0 0 0 .

(b) Rs. 20,000, 5/o Debentureswerc rcdeened hy

purchase rom open marker@ Rs. 96

(c) Rs. 36,000 investm€niwere soldat booKvarue.

(d) 12% dividendwaspaid in cash.

(e) Rs. 15,000 was debit€d o ContjngencyReserve or

settlement of previous tax liabjlity.

You are required to prepar€ a Schedule of Changes in

Working Capital and a Statement showing the Sourc€s

and Applicationof Funds.

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7. A toy manulaciurer €arns an average net profit of Rs. 3

per piece wiih a selling price ol Rs. 25 by ptoducing and

seuing 60,000 piecesat 60yo of the potential capaciiy.

Composiiion of his cost is as follows I

Direct material

Direct wages

Sales overhead

R s . 4

Re.1

Rs.6 (50q0ixed)

Re.1 (25% "rying)

During the current year he intends lo produce the same

number but anticipates that -

(a) his fixedchargeswiu go up by 10%o

(b) rates of dir€ci labourwill increaseby 20%

(c) rates of direct material will increase by 5%

(d) sellingprice cannotbe increased.Under these circunrstances he obtains an order for a

furiher 20% oI his capaciiy. What minimum price wiu you

recommend for accepting the order to ensure that the

manufacturer etsan overallprofit of Rs. 1,80,500 ?

Write explanatory not€s on :

(a) Absorption Costing

(b) Break-ev€n Point

(c) Methods oI Depreciation

(d) Nei PresentValueMethod

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MANAGEMENT PROGRAMME


December,20O5

MS-5 : MANAGEMENTOF MACHINESAND MATERIALS

Time : 3 hours MoximumMarks 100

lweightdge 70o/o)

Nole r S€clior A hos Jiu€questions hot corty 20 msrks

each. Attempt onv thfte questions lrom this

Section. Section B is computsory ond corries

40 morks.

SECTION A

1. (a) Describe he OperationsManagementdecisionsand

their classifications.

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(b) A smallgear manufacturingacility s being planned

ihat will fe€d parts to five hea!,y manufacturing

facilities.The locationof the currentplantswith their

coordinates nd volume r€quirementss given in the

following able :

Plant locatronCo-ordinates

{Partsper year)

Location B

Location C

Location D

Locaiion E

1s25,75)

(400,150)

(450 ,350)

(350 ,400)

(25 ,450)

1500

250

450

350

450

2. \a)

Use the cenbe of gravity method to determine the

best location for ihis new facilitg. 10+10

Identity three disciplines/sub disciplines that will

contribute jn a major way to ihe developmentof

Productionand OperationsManagement POM).

Data for a break-even analysis revealed that

total costs at volumesof 600 and 800 units wereRs. 80,000 and Rs. 96,000 respectively. evenue s

Rs. 144 per unit. Based upon this information,

compute he following I

(i ) The variable ostspet unii, and

(b)

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'3. (a)

4. (a)

(b)

(b)

Discuss with suitable examples, the process of

launchinga n€w product n the market.

l-akevjew Lumber uses forklift truck to Lrarbporlumber from the mill io a storage warehouse

0 30 km away. The lift trucks can mov€ thre€ loaded

palletsper trip and travelat an averag€ I 6 km per

hour (allowing or loading,detays, nd travel). f 420

pallet oadsrnustbe moved duringeach 8-hour shift,

how many lift truck ar€ required?

length of each run ?

What do you mean by an integrated approach to

MaterialsManagement Explain.

A company ras a monihly demandof 800 units of

a product. The company can produce 8 products

per hour when it startsa productionrun. It costsRs. 3000 for shop set,up o start a production un.

The inveniorycarryingcost amounts o Rs. 1.50 per

unit per month. What is the optimal batch size ?

Assume 25 working days in a month and eight

working hours in a day. How fr€quently should the

production run be undertakenand whai should be the

10+10

10+10

5. (a) Explaindiflerent ypesof maintenance ivingsuitable

example.Suggestan organisationstruciure or the

maintenance department of a mediumsized

company.

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Th€re are seven jobs (given in the table below), each

ol which has to go through machines A and B in

that order. The processing ime 5 in hours

1 2 3 5 6 7

Machine A 3 12 18' 6 10 1 1 9

Machine B 8 10 7 7 2 1 3

Determine the sequence of jobs that wiu minimize

the iotal time for completjonof all the jobs. 10+10

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6 .

SECTION B

A small project consists of eighi actjvities lor which therelevant data are given below :

Activity PrecedingActivitiesActivityDuration

(Days)

B

C

D

E

F

G

H

A , BA , B

C , D , E

F , G

4

7

6

57

6- 5

2

{d) D'aw rhe Neh,orkdracram.

(b) Find the crilicatpath

lcl nnd lhe nrojecrcornpjpjion imp.

(d) Calculate the total floai lor each of the activiiies.

8+4+2+6

7. Wite short noteson anytour ol the following 4xE=20

(a) Aggregaie planning(b) Buffer Stock

(c) Kodak sgstem

(d) VED analysis

{e) Producer's isk

(0 Value Engineering

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MANAGEMENT PROGRAI4ME

Term-End Examinaiion

December, 2OO5

MS-6 : MARKETING

Time 3 hours

FOF MANAGERS

MaximumMorks 100

(Weightase70o/ol

(i ) Attempt ony thrce questionslrom Section A.

(ii) Section B is computsory.

(iii) Al l questianscarty equol morks.

SECTION A

1. {a) Briefly explainthe variouspricing methodsavailable

for Indianmarkeiers,with suitable llustraiions.

(b) Discuss the variables that affect the disiribution

decision Ior the following I

(i ) Tasr ood joinr rPsLduranl

(ii) PersonalComputers

2. Why and how do psgchological actors influence consumer

buying behaviour ? As a potential buyer of a latest brand of

DlD, briefly €xplain the social and cultural faciors that

affect your buying decision.

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3. (a) Discuss he major objectives f SalesPromotion. As

a marketerof a leadingconsumerdurablecompany,

when do yor.r consider it an appropriate time to

organisesuchpromotionsand why ?

(b) Personal Selling and Advertisjng are the h.uo major

vehiclesof communication or marketing industrial

products. DiscLrss ith a suitable example of your

choke.

4- Write notes on any three of the following

(a) PLC as a tool Ior rnarket development

{b) Matrixorganisation

(c) Bases for Segmentation

{d) Approaches to Sales orecasting

(e) Limitatlons o{ Cyber marketing

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SECTION B

5. Study the casegiven below and answer the quesiionsgiven

at the end.

BPL has launched he digitalcameraVPC-G2o0EX at

Rs. 39,000. lt does not r€quireconvenrional ilms as it

can store images n lts memory.A niche segmentof PC

users, ournalists,multimediaagencies, rchitects,doctors

and professionals are ihe primary segments for the

product. The benefiis of the product include viewing

pictureson a built-in LCD screen,and the voice memo

(6 seconds) hat could be added to everg piciure. Web

page designers could have pictures on ih€ Internet

through their personal computers.Thes€ images could

also be retouchedor modifiedusingappropriatesofhvare.

Photo albums can be created on floppi€s. The productmay compete with scanners which could scan

conventional photographs into a computer. BPL has

positioned the product as fuhre of photograpby'. The

product is available in 25 showooms oI BPL- Phillips, a

competingbrand, has also launcheddigital cameras.

Questions :

(a) Who, in your view, would b€ the mosi appropriate

target consumers for the product and why ?

(b) Outline sritablepromotionand positioningstraiegies

for Lheproduct.

M5,6 9,000

7/16/2019 MS- Dec 2005


7/16/2019 MS- Dec 2005



December,2OO5

MS-7 : Old : INFORMATIONMANAGEMENTAND COMPUTERS

Revised INFORMATION YSTEMSFORMANAGERS

Time 3 hours MaximumMarks: 100

(Weisht1qe 70o/o)

Note :(i) There dre two setsol question papers i.e. Set 1

and Set 2. &t 1 is for those studentswho houe

registered Jor this course prior to Jutg 2004.

Set 2 is for those studentswho haue rcgistercd 'orthis courseJrom July 2004 onwodg

(ii) There are two sections in eachset. Atternpt anythree questions t'rcfi Sectioh A of eoch set.

Sect'ion B is compulsory.

(iii) A totsl ol fiue questions haDe o be ottempted.

Ali guesrionscang "quat marks.

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l .

2.

Set I (OId Cours€)

(Information Management and_Computers)

SECTION A

"Compuiers have now become an integral llart of ourIife." Explain.Discuss he applicationof compurersm anytwo lunctionalareasol management ivingexamples,

(a) Explain main hardwareunit5 of a computer.Discuss

various cat€goriesof computer software.

(b) Discuss he manag€rialapplicationsof spreadsheetsgiving main features. Highllght a lew important

buslness pplications.

''MIShas becomean integralpart in today'sorganisation_,'

Explain. Whai ]s an inlormaiion nehrork ? Explain_

DiscussData Flow Diagramsand Data dictionary. Give fewprogramming vocabularies.Explain the advantagesof using

COBOL.

3.

1 0

10

20

20

20

5, Usinggraphicalmethod,.findout the maximumvalueof Z

for the lollowingproblem

Z = 4 x r + 3 x ,

subjecto

3x' + 4xr< 24

8x1+ 6x2<48

* r < 5

* 2 9 6

x , , x r ) 0

MS,7

7/16/2019 MS- Dec 2005


SECTTONB

6. Solvehe following ssignmentroblem l minimisingotaltime or doingall obs.

OperatorsJob

1 2 3 4 5

I 6 2 5 3 6

2 2 5 8 7 7

3 7 8 6 9 8

4 6 2 3 4 5

5 9 3 8 9 76 4 7 4 6 8

7. (a) DiscussSlackand Float in the context of a project.

Why is PaRT jmportant in net'rork analysis ?

(b) Following table gives activities involved in a PERT

Projeci.

JobDuration (days)

1 - 2 3 6

2 - 3 6 12 30

5 1 1 17

7 a 4 79 2a

5 - 8 I 4 76 - 7 3 9 274 - 5 3 6

1 6 2 5 14

2 - 4 2 5 I(il

(ii)

1 0

1 0

Draw the network diag{arn.

Find out citical paih.

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1 ,

2.

3. (a)

(b)

4. (a)

(b)

Set 2 Eevised Coutse,

(Information Systems for Managers)

SECTION A

Explain dilferent types of Information Systems. How do

compuiers help us in decision making ? Enum€rate

different system sofh,varegiving €xamples.

Explain the main featuresof MIS. Discuss he determinants

of MIS desisnas

givenby Zanj. Wbat do you underctand

by knowledge ?

Explain Data and Information.What ar; the main

chahcterisiics of information ?

Discusshierarchyol"ysLems.

What are ti€ \,arious

controls equired or an informationsystem?

Discussprogrammedand non.programmeddecision

mak'ng givinsexamples.

Discuss the application of computers in inventory

management ivingexamples.

20

20

10

1 0

10

1 0

5. Expjain the .oncept of the Sgst€m Development LiteCycle. Give !.rdrioussteDs of system analysis and design

givinssuitableexamples. 20

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6-

SECTION B

Write brief notes on :

(a) Internet

(b) Featuresof JAVA

(c) Database Management Systems

(d) Data Warehousing nd Data Mining

(P) InrelligenrSuppon Svdpns

(a) Explain he featuresof VisualBasicand JAVA.

(9 DiscussNeural Nehrorks and thelr application

decisionmaking.

1 0

MS-7 9,000

7/16/2019 MS- Dec 2005


7/16/2019 MS- Dec 2005


MANAGEMENT PROCRAMME


December,2005

MS-8 : OUANTITATIVE NALYSTS OR

MANAGERIALAPPI-IGATIONSTime : 3 hours MoximumMdrks 700

Weightase 70o/o)

Note .(t) Seclion A hos six quesirons.eoch coftying

15 marks.Attemptany our.

Section B is cofiputsory and corries40 morks.Attempt both questions.

Siotisticol dblesmay besuppliedon demond.

9ECIION A

I. A group operatesa chain of filling stations n each of

which are employed ashiers, ttendants ndmechanics s

Type ol Iilling srations

Large Medium Small

Cashiers 4 2 I

Attendants 7 2 6 3

M€chanics 6 2

(ii)

{iil)

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The number of filling stations are

Southern ndia Northern India

Large Stations 3 7

Medium Stations 5 8

Small Stations 12 4

How many oI the uadous q'pes ol staII arc employed j'n

Sourhern ndia and in Northern India ?

2. Find the inter quartile rdnge from the following data :

Class

0 - 1 5 8

1 5 - 3 0 26

3 0 - 4 5 30

4 5 - 6 0 45

60 20

7 5 - 9 0 \7

90 - 105 4

3. The m€mbersof a consulting irm rent cars from three

rental agencies 60 percent rom agenca1, 30 percent

from agency2 and 10 percent rom agency3. II 9 percent

of cars from agenca1 need a tune_up,20 p€rcent of the

carc rom agency2 needa tun€'up and six percentof the

cars rom agency3 needa tune-up,what is the probability

that a fental cardeliv€redo the firm will needatune-up?

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4.

6.

A soft drink vending machine is set so thal the amount

of drink dispensed is a random v?rlable with a mean ol

200 nrl and a standard deviation of 15 ml. What js theprobabilitg that the average(mean)amount dispe$ed in a

random sample of size 36 is at least 204 ml ?

What is a Normal Distrib\nion ? Mention the prop€rties ot

Normal Distribution. Dscuss when Normal Disiribulion is a

good approvimation to Binomial Distribution.

Wnie shon noles on any thrce ol t-he ollowing ,

(a) Deri',ative of a quoti€nt ol t'xo funciions

{b) Guidelin€s for choosing the Class nter\,?l

{c) Criterion of Pessimism

(d) StratifiedSampling

(e) Cyclical \,?rlaiion in Time Series

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7-

SECTION B

Preference prices and debentureprices of a certaincompanyaregivenb€lo\rr

Use the meihod of Rank Conelation to determinetherelafionship beh.r\reenreferencepric€s and debentur€

prices,

The averagemarks of sfudenis n a class is 79. Thestandard deiriation is 5. If the rnarls are djst/ibut€dnotmally, how many students,n a classof 200 did notreceivemarts behueen 5 and 82 ?

Given :P(0 < z < 0.7)= 0.2580

P ( 0 < z < o . 8 ) = 0 . 2 8 8

Plo < z s 0.6J 0.2257

Preference Pric€s (x) Deb€nturePric€s(y)

7 3 2 9 7 8

85.8 99.2

7 8 9 9 8 8

98.s77.2 98.5

81.2 96.7

8 3 8 9 7 L

MS€ 13,000

7/16/2019 MS- Dec 2005



December,2OO5

MS-9 ; MANAGERIALECONOMICSTime : 3 hours Maximum Marks , 100

(Weightoge 7@/o)

Note : This pop€r consisfsoJ three SectionsA, B ond C.

Section A is to be attempted b9 students

registered for MS9 prior to Jonuory, 2004 i.e.upto July, 2003. Sect,on B is to be ottempted by

students registercdJor MS-9 fron Januorg, 2004

onwards. Attempt any three questions frcm

Section A or B depending upon your dote ol

registrction. Section C is conpulsory Jor all.

Section C compris€sof 40 marks. SectionsA and

B comprise 5 questionsol 20 marks eoch out ot

uhich 3 questionshaue to be answered.

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1 .

SECTION A

Discuss the role of any troo of the following in Decision

Making :

(a) MarginalReturn on Investment

(b) Th€ Equi MarginalPrinciple

(c) The Opportunity Cost Principle

Explain the law of demand. What causes he market

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

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

cost cuwe (LBAC) is derived from the short run av€mge

cost curves (SRAC).

From the information giv€n below, calculate the MarginalUiility for each unit consumed and interpret the result.

2.

3 .

4 .

Units Consumed(in units)of commodity

Total Utility(in units)

MarginalUtility

(in unitsj

1

23

4

5

6

?

10

1320

27

30

33

30

MS-9

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5. Writ€ short notes on any three oi th€ following :

(a) Entry baniers

(b) Declsion tree

(c) Price-cross'elasticityofemand

{d) Internal rate ol retum

(€) OpLimr.ation

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SECTION B

l. Discuss the fundamentals of Managerial Economics.

Explain the scop€ of Managerial Economics as tools of

managerial decision making.

2. (a) Explain he law ot demand.

(b) What are the djflerences betrr,/eena fim's demand

culaJeand market demand curve ? Give illustrations.

3, Explain the econometric method ol estimating costfunction. Why is this method more popular than the oiher

meihods of cost €stimation ?

4. {a) Distinguish between perfect competition and

oligopolisticomp€tition. iveexamples.

{b) Explain the conceptol product differentiationwithspecialeferenceo monopolisticompetitjon-

Wljte short notes on any thrce ol the lolowing :

(a) Delphi technique

(b) Opportunity cost

(c) Cyoss-priceelasticiiy

(d) Distinguishbehreen accountingcostsand economic

(e) Pricing of joint products

M S 9

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6.

SECTION C

D€fine forecasting iechnique. Discuss the various types of

forecastino techniques. 30

The production department of a firm reported th€

following information for the month of May 2005.

Wagebill

Value of raw materials

Interest

Fu€lconsumption

Rent

Units of output produced

Calculate(i) Averagecost

{ii) Averagevariablecost

(iiil What wouldbe the total profit of the firm i{ it sells

theentireoutputat a priceof Rs.60 perunit ? 10

Rs.

20,000

60,0006,000

10,000

4,000

2,000

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7/16/2019 MS- Dec 2005


7/16/2019 MS- Dec 2005


MANAGEII'ENTPBOGBAMME

Term-EndExaminatlon

December.2OO5

MS-10 : ORGANISATIONALESIGN.

DEVELOPMENTND CHANGETime : 3 hourc Moxinum Morks : 100

(Weightose 7tr/o)

Note I

(i )

(ii)

Therc ore two SectionsA ond B.

Section A has two sets : Set I is mednt lor the

students who haue rcgistered lor MS-10 prior to

July, 2004, i-e. upto Januorg,20U. Set It is meant

lor the studentswho hsue registeredor MS-70 lor

July, 2004 semester onwards.

Attempt ony fout questions rom Section A. All

questionscarry 75 narks eoch.

(iii)

liu) SectionB is computsory lor all ond carries

40 morks.

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l .

2.

3 .

4.

SECTION A

SET I (Pre-Bevtsed)

Describe centralisation and decentralisation oforganisational structures with their merits and demerits.

Cite suifable examples from organisational context.

Discuss the notion of organisatlonal change and ii's

influence on organisaiional effectiveness. Describe it's

implications for organisational design.

Discuss the implications of quality of worklife in Indran

cont€xt. Describe how social and culturdl conditions affect

the quality of worhng llfe.

Discussany hro models of organisaflon development and

cite suitable case exampl€s.

Write short notes on any three of the lollowing :

(i ) Insijtutionbuilding

(ii) Role of a change agent

(iii) Questionnaire as a diagnostic tool

(ivl Socio-Technical pproach o work design(v) Mechanistic vs. Organic syst€ms

MS-10

7/16/2019 MS- Dec 2005


SECTION A

SET Il (Revised)

l. Explain the factors which are responsible for effeciive jobdesignand describe ny tro approacheso,job design.

2. Discuss any two significant intenien$ons u,hich are

essentialor managingchange.

3, Define organisational diagnosis. Describe its purpose and

discuss th€ t€chniqlres used for o€anisati,cnal anatgsis in

bnef.

4. Describe Olmosk's change strategy mod€l and criticallg

analys€ its implications.

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

(i) Quality of work life

{ii) Institutionbuilding

(iii) Task force

{iv) Inverted pyramid stflrcture

(v) Job rotation

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.SECTION B

6. Read the following casecarefulD and an$rer the questions

glvenat ihe end :

Mi. Anand occupiesNo. 2 position n ihe Corporate

Planning Department ol multi'product company having a

ttrmover of more than Rs. 900 crores and operating in a

high technology (hi-tech) industry. For th€ last five years,

Anand has been associated wiih strategic planning of ihe

company and recently he has been deputed to a iask

force to reorganise the company to cope up with the

changing iechnology and environment

At the last meeting of the Board ol Directors of ihe

company, the members expr€ssed heir concem about the

Ialling competitive position of the company in the

industry. The main reason cited by the Chi€f Executive

was the outdated organisation stnrcture which has not

undergone any change for the last 10 years though the

size, technology and environment oI the company have

changed tremendouslg. It was on the advice of the Chief

Executive that the Board of Directors decided to set up a

task lorce for the company's reorganisatlon.

MS-10

7/16/2019 MS- Dec 2005


(i t

(iit

(iv)

At the filst meeting of the task force, Anand, who is

an expert ln pla;ning, convinced ihe other members to

adopt the following procedure:

Determine exactly what type of structure tie

comPanYhas at present.

uererTnrne he typ€ o, envrronmeni Lrr€company

Iaces no\, and the weaknesses of the present

Forecast the environmental changes n the fuhrre and

the type of t€chnology to be used by the company.

Design the organisation structure to meet lie future

challenges.

It was discovered that the company is currentlystructured along classical lines and the company is

operating in a highD d!'namic environment. The

environment in futur€ is likely to be more rmcertatn

because of fast changes in technology and requirements

of customeE and competition by MNCS. The task force

came to the conclusion that the structural design must b€

r€sponsive to change and if this is not done, the

company's suMval in the market would be made more

difficult.

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Quertiors .

(a) How far do you agr€e with the Focedure adopted

by the task lorce ?

{b) Explain horll the systemand contingency approaches

can contribute to the analysisof this case.

(c) What type ol organisation design should the task

force recommend ? Explain its broad features.

MS-10 7.000

7/16/2019 MS- Dec 2005


trs1ilMANAGEMENT PROGRAMME


Decembel,, 2OOS

MS-ll : Pre.Revised GORPORATEPOLICIES ND PRACTICES

Revised STRATEGICMANAGEMENT

Tme , 3 hours Maximum Morks : 1O0

(Weightdse70o/a)

Note : There orc three SectionsA, B and C: SectionA is

neont lor the students who haue rcgistered Jor

MS-11 : Corporate Policies and Prccticesprior to

Jonuory 2005 i.e. upto Julg 2004. Section B is

meont Jot !h? srudpnl ruho hou" rcgistered lor

MS-ll : Strotegic Mdnagement from Januarv

2005 onwsrds. Attempt an? three questionsJram

Section A or B. All questions carry 20 morks

each. SectionC is compulsory Jor all, dnd carries40 marks.

M S1 ] P.T .O .

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-l .

2.

SECTION A (Pre-Revised)

Corporate Policies and Practices

'Comorate planning systems vary irom organization to

organization depending on variet! of {acto|s.'Dscuss

various planning approaches and their characteristics.

Suppon your dn.wer wirh >urtable xdmple..

Briefly describe he implications f the constituents f the

"Micro Environm€nt.

What is the criieda lor determining sirengths and

weaknesses or an organizalion ? Explain with examples.

Whai afe th€ saategic mplicationsof the BCG matrix ?

Analyze he impact of BCG Matrix with resp€ct o sources

and uses of funds.

'Developingappropriaie lead€Ghip is one of ihe most

important elements n the impl€mentationo{ a strat€gy.'

Comment on the statemeni discussiDg dimensions of

leadership tyles.

20

20

20

3.

4 .

5 .

20

20

M S- ]1

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l .

2.

3 .

5 .

SECTION B (Revised)

(Strategic Managem€rt)

Briefly describe he strategicalternatives iven by Glueck.Explainwiih the help of examples.

Explain PESTEL framework and illustratewith suitable

What do you understand by tangible and intangible

componer,ts of difterenUation ? Explain. Give five examples

each of tangibleand intangibleproductsand give reasons

f or their classifcation.

The recordof M & As world over has not been mpressive.

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

Wriie :hod nole. on any t&Jool Lhe ollowing

(a) BCG Matrix

(b) BalancedScoreCard (BSC)

(c) Joint Ventures

(d) CompetitiveStrategies

20

20

4 .

20

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sEcTloN c

6, Read he followingcasecarefully nd answer he questions

givenat th€ end : 40I.ARSEN & TOUBRO

We are shiDering n our ponts,os we grope dgainstnett

cotnpetition frcm lnms lron USA and Korea.

- A very senior L&T execuiive o the author at a

Management Development Programme at

IIM (Ahmedabad)n 1993

The competition we hooe Jaced till now is nothing ds

compored to whot lies in store for us. Till notD, the

petiod (postliberalisotion) uds one of learning ond

assessment or the big globol competitors

Sr.dhakarDivorar Kulkdrni,CEO. lo rhe c"se author

in Apnl 1997.

In 1q97. Larsen .d Tubro L&T).onp ol the argesl

engineeringcompanies n India (and one of the iop five

private sector companies) ostedyet again a grov,'th ate

of over 20 per cent. This happened for the fourth

consecutive year despiie acute liquidity crisis in themarket, political nstabilitg, nc€ftaint9abdrrtexecuiionof

powpr prolecF oJ loreign companre: e.g.Lnron]. a.ld so

no. Since ast few years,L&T was becominga lesson or

companiesworldwide n managingexpiosivggrowth and

developing internal capabi litieson a continuous basis.

M S 1 1

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Simultaneously, t was setiing new challenges or ihe

academics in defining core competencies and core

capabilities.An independ€nisuruey named L&T to be

one of the best managedcompanies n Asia and another

by BusinessToda, showed hat the companywas one of

the most transparent and a leader on the issue of

corporate governance.During 199596 and 7996'97,

the company achievedan incrediblegrov,4h

n sales o{nearly Rs. 1,000 cror€ per annum ove! the previous

years,crossing he landmark urnover of Rs. 5,000 crore

]n the process.

The Evolution

l*T was sei up in 1938 as a padnership rading

firm by nro Danishengineerc,Henning Holck-Larsenand

Soren XristianToubro, who had quit their iobs. In 1946,

it became a privat€ limited company and by 1950

reached h€ statusof a public limited company.Table 1

gives he eiolutionarypicture in brief.

L&T presently has a shar€hold€r base o{

nearly 1 million and employeestrengthof over 24,000

As a company, his multi-dimensional ngineeringgiani is

actually he nucl€usoI a group of companies nvolved n

building complexes,worksites.offices,and serviceoutlets

M S 1 1 P.T.O

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a

a

at differeni locationsal l over India and abroad. Over the

y€ars, L&T has acquireda commendable eputation for

capabiliti€s or executingengineering elatedprojects.

Tabl€ I l&T BusinessHistorg The Milestones

1938 - lncorpordtion s a partnershipirm

1946 - Incorporation s a PrivateLtd Co.

I950 - L&T goespub|c. PowaiWork set up

1961 - Audco India incorporated for

manufacturingvalves

1962 - Retir€mentof Soren Toubro; EWAC Ltd.

s€tup for manufacture f weldingalloys

1963 - TENGL founded o manufacturecrawl€r

undercarriag€parts for catemillars

1969 - Agency businessabolished, ormation of

L&T Botile Closure division

1971 * L&T McNeil set up for manufacturins

Pressesor tyre industry

1974 - ManagementOrganizationStructure and

Management lanningand Control System

introduced'L976- L&T Bangalore Works commences

productionoi hydraulic xcavators

1978 - Larsen etires.L&T Fandabad

commences foductionof swiichgear

1942 - ECC merged with I-&T; L&T enters

:hipping business ith Lwoships

M S , 1 1

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a

1983 t&T ent€rs cement manufacturingwith

Awarpur plant commencing production

1987 * L&T enters omputerhardwarewith floppy

discs ndprintersiL&T Gould or electronic

test and measured nstrumenis

1988 ._ Cementcapaciiyenhancedo 2.2 m tons

per annum

1989 90 L&T underDH Arnbani (aschairman)

1990 - 93 - Repeated akeoverait€mptsby RIL

1993 - 95 Seriesof strategicalliances nd

tie-ups esulting n formation of

L&T-Niro. L&T-Chiyoda,

L&T Sargent& Lund9,

L&T Finance,and so on.

Takeover Attempt

I

a

TheDuring 1991 - 93. as the countryprogressedowards

liberalisaiion, the company just emerged from a

not-so-welcome iakeover threat from the powerful

Ambanis of Reljance. The Ambanis were themselves

embarking upon massive expansion in chemicals and

petrochemicals usiness, nd L&T would have providedateal and Iogical syn€rgy n terms of executing turnkey

projects lor conshuction, engineering, suppling

machineryand, of course.offering suppliers' redit (io the

tune of Rs. 1.000 crore). Through protracted

investigation and liiigation iin which the Reljance

Industries Ltd. was found to have collected lorged

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proxies), the company somehoir remained in the

hands of 'professionals'.The big questionmarKds poseo

by an article in ihe Economic ond Politicol Weekly

was, "Whe.e does L&T go {rom u.here it has reached

How€ver, it was obvious that a total new mindsei and

working culture would be required il L&T was to grow

and remain competitive. In 1993 94, the companystart€d adopting the principles ol Total Quality

Management (TQM) by becoming custorrer rocuseu,

reducingthe costs and wastage,and adding value at all

stages or maximisingcustomersatisfaction,

ln 1994, Mr. S.D. Kulkami took over as the CEO ol

L&T and confidentlypromised that the company would

reach iis mission of being a Rs. 10,000 crore {$3 bn.) -

company by th€ end ol the c€ntury.He also declared hat

th€ company would strive io maintairl and develop

leadership ositions n all its businessesr else t wili quit.

Simultaneously, ero rebenchment was promised. The

philosophyof TQM was embracedwith added emphasison 'customer

delight', hat is, deliveringmor€ value than

expectedby the customer.

Vision, Core Values, aod TQM

lnfrastructure b€ing a key botileneck for lndian

industry -

was identified as the engine ofgfor,,"'th

or ihe

MS-11

7/16/2019 MS- Dec 2005


company'sambiiiousplans.But b€fore that, the company

needed an ambition statem€nt whiah evety employee

could own and share- A massivecompanywideexercjse

fof linding olrt what ihe company stood for and what its

core values were was €mbarked upon. The emergent

statement ihough not sounding much diilerent from

s€veralother organisations' ision. however, came to be

owned and understood y almosieveryemployeebecause

ol the process ol jdentifying the mission and peoples'

involvempnl. he kpy e.en-enLrl L&Ts vi , ion focussedtowardsa world classcompany dedicated o :

r excellence nd profPssiondli\m

r customerdelighi hroughservice

r entrepreneurial leadership and creation of an

organisation hat is on the path of coniinuouglylearningby fostering eamwork, rust, and care

I communityserviceand €nvironmental rotection.

Cor€ Cornpetenci€s

According to a senior executive, today the cor€

competence of L&T lies 'n its ability io synthesise,

int€grate and harmonise its divers€ world-class

engineering. manufacturing, procurement, construction

and fabrication skills around turnk€y projects (in cor€

economic sectors) and people. This is made possible

through a world class vendor base and qualiU

M S 1 1 P,TO

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technological alliances, excellent lT infrastructure

(CAD,/CAM systems,PMIS etc.) sophisticatedabrication

Jacilities or plant and machin€ry jn the cor€ sector

Business Leadership

L&T holds a leadershipposition in lndia in most of

the areas in which it operates.Th€ first company to

introduce hydraulic excaeators n the courtry, ii still

maintains ts leadership tatus n this and in the vibratorycompactor segments.L&T's switchgearproductsenjoy a

dominant position in Indian as well as ihe iniernational

markets. t continues o be a leader n th€ manufacture f

Z-Line petrol pumps and its cement s considered o be

of high quality. t&T has pioneered the manufacture and

supply of critical nuclear reactors and space vehicleshardware n the country. t has to iis credit many lirsis in

the Indian ndustry irom the indigenouslymanufactlrred

hydrocracker reactori naptha un power plants, th€

world's largestcuring press, to the lirst vertical dairy in

ihp countrvand .o on

With ihe Projeci and Constructionbusiness n th€

country growing at a fast pace and expected o continue

io do so with th€ countrys emphasison inftastructure,

boih L&T ECC (Consfuction 6roup) and L&T s Proiects

(EPC)businesses re being treated as thrust ateas. The

ECC construction group has been responsibl€ for

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construction landmarks both in lndia and abroad, for

instance, ihe Bahai house of worship in Delhi, an

int€rnational airport t€rminal in Abu Dhabi,bridges inMalaysia. hotels in Uzbekistan,and so on lts major

projectshav€ been buildingof cementplants for Grasim

lndustries, Gujarai Ambuja Cements, and ACC Ltd.,

construction ol bridges and railway tunnels for the

Konkan Railway project. In projectsbusiness, &T EpC

group succ€ssfullyexecuted ord€rs from ONCC (ior

piping and oil pLatforms), Tata Chemicals {lor caprjve

co generarron owpr planr) . nd 6dndh,ndgar airv. In

shippirig and internaiionalbusinessoo, the companyhas

made significantprogress o become one of the leading

players n thejr line oi brjsiness.

L&T has a long and enviable record of high iechfabrication.The workshops n Powai with CNC pr€cision

machinp5hou<e arge-sjzeprecisron dbricaiion Iacrliie,.

Its major healy engineering omplexat Hazira also cat€rs

to such needs. L&T's units and its links with globally

feputed organisations have contrjbuted much in

developingmanufacturingxcellence.

Decision-making at L&T

Over the years, the company has impleme;i€d its

vision through vafioLrsapproaches. Foremost is the

emphasison empowerinent. eamlvork, and continuous

training ol employe€s. In t€rms of structLrre, h€

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company has decentralised decision-making, and

according o Mr. Kulkarni,CEO, the concept of Strategic

Busin€ssUnits (SBUS) is being activ€lyencouraged. hecompany js decentralised or all practical purposes.

Budgetsand allocations re made at ih€ beginningol the

year and SBUS underiake he responsibility or achieving

the targets. Only in major decisions nvolving capaciiy

augmentation, usiness iveslmeni,diversification, nd so

on does he CEO personallynvolvehimself.According o

Mr Kulkatni, "only through empowerment and

deceniralised decisjon making can a highly diversitied

company like L&T be managed". For example, though

the decision to di'vest the Dot Matrix Pdnt€rs {DMPS)

businesswas first proposedby the concerneddepartmeni,

yet the decision was iaken ai the MD/Board level as it

agreed lhdL produ(t and r€chnological bsolescence nd

synergyof DMPSwith other businesses as indeed ow.

The Culrure ot TQM

The TQM journey, iniiiated n 1993, has now taken

Iirm roots in L&T. The €fforts put in training a large

number of employeeshas resulted n lhe lalrnchof manyqualily improvem€nt initiatives. A large number ol

employeeshave participated n continuous mprovement

lKoizen) and small group activities. Several

cross unctional eams regularly unction in the areasof

manufacturing, d€sign, marketing and services. l-&T has

created an environment Ior increasedempow€rment to

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further improve custom€rsemjces.The TQM Awareness

Programmeshave also been ext€nded o the stockisisand

v€ndors to achieve mprovem€ni n the operaiions and

L&T slrolgly behe'.Jes,fl rhe concepL o{ rniprnai

customers.With TQM knowledgespreadingwidely inside

the company, employeeshave realised hat everybody n

every department is a $pplier to somebody in the

organisation f not directly to an outside customer.One

employee says, "even though it is difficult to oblig€

everybody, believe hat we shouldgo a step lorward to

understand the real requirements o{ the customer, which

he himself may not be fully aware of, and delight the

customer through total qualiiy and service. Such anattitude should b€ our guiding force". A value strongly

sought to be incL cated in ihe employees is that people

can confuont competition better by moving from a

product-oriented philosophy to a customeroriented

philosophy. For this, employeesare being train€d in

multi'skills, includingquality

transactions andmarket

engineering,besidesproduct engineedng.

Wnh people belng regardedas the'prlme mov€rs',

a strong HRD culiure pervad€s the organisation's

personnel polici€s, i,nd HRD systemsar€ designedto

s\rstain motivation, encourage leaming, and achieve

higher lev€ls of quality and productivity through job

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involvement. The embracing of TQM philosophy.and

implementalion of ISO 9000 systems by almost alldivisionshas led people to work towardscommon goals

with a customerorientedapproach.

Social Commitments

Corporate Citizenship Th€ Mumbai Chamb€r

pfesented he Good Coporate CitizenAward for the year1994 -95 lo Larsen and Toubro Limiied for its

contribution io the corporate world, but more importantly

tor its conspjcuons achjevements n jmprovjng the quajjty

of lile in the community.

Award for most Qutstanding Concrete ShuctureThe ECC Divisionof L&T receivedhe ICI Mc-Bauchemie

Award presented b9 The Indiqn Concrete Instituie for

the most outstanding concrete struclure for the year

1995 - 96 for Sree Kanteenva Indoor Spofts Compl€x s

Bangalore. The sbucture is considered to b€ an

engineeing marvel. The citation for the award r€ads'Sree

lGnte€ra!a lndoor Sports Complex is designed in

the shape of an ellipse usjng 120 'V'shaped precast

iolded plate elements.Each element s 43 m long and

w€ighs55. t. The thickness f the plate s just 40 mm,

but strengthen€d b9 ribs throughout its length. Sjnce

the folded plaie spnngs rom the ring beam along the

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outer periphery and connected y the compression ring

at the crown, the enlie roof is self supporling,provjding

an unobstrucied olumn{eespaceof 119 m x 91 m with

a playingarenaof 65 m x 45 m jn the cenir€

Environmenl Upgradation L&T has been .howing r' .

commitment towards corporatecltizenship.As one goes

around rhe worls "rd oihce: ol L&T. one experre.ce' asoothing ard refreshingambience becauseof ihe rich

foliageand delightful lolal bloomsaround hesesrrucrures.

L&T has undertaken xtensiv€ree planiationprogramme.

Over three lakh trees were plant€d in and around the

factory in 1993-94 under the programme 'Trees for

Life . The villagers have been given grafted saplings of

fruit'bearing tre€s and encouraged to pLant them. The

success l this ongoing eflort led to L&T being selected

by ih€ Govemmeni of Maharashtra for the prestigious

Vanashr€eAward in 1990. ,

Contrlbution to Academics L&T set up L&T Instituie

ol Technology, a polytechnic n Murnbai. ln a short

petiod, il has come to be widely regafdedas one ol the

best lraining institutions of iis kind in the couniry,

particularly or the full-fledged orkshopsand laboratories

that provide a strong pIactical orientation o theoretical

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inputs.There is a good demand n engineering ompanies

for the studentsFassing ut from ihis Institute.

L&T also contrjbutesinancially owardsupgradation

of facilities n sev€ralpolytechnics.t regularly nierlaces

with academic nstituiions o promote quality education

and has established€searchchairs lor laculty in several

institutions ncludingai IlM, Ahmedabad.

Wthin ihe company, one ol the most inlaluable ard

lasting nvestmentsmade by L&T is the €stablishment f

a Management Development Programme Centre at

Lonavala nearMumbai).According o Mf- CM Srivastava,Joint General Manager (JGM) (HRD), the management

developmentcentre has been visualizedas a'temple

of

learningwhere peoplewould come with ihe solepltrpose

of enhancins knowledge, learning througn expenence,

self-siudy,and introspection.The €mphasis, herefore, s

on providing an ambience for learning rather than

training'. The centre has modern learning {acilities ike

computer-aid€d ackages, library, and outdoor training

facilities.

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Manuf ac-turing Facilities

Som€ imporianl manufacturing faciliti€s of t&T are shownin Table 2.

Table 2 lnpo^an| MonularrunngFoci l t t tpsl L&Tffi

Powai, Madh (Maharashtra)Plant and heaw equipment,switchgear, petrol pumps,bo11l€ losures,control andautomation, welding alioys,

undercarriagecomponentsElectronics and Inputs iorundercarnageomponentsCement

Light-weight lass ontainers

Switchgear

Weldins alloys

Plantandequipmentorsteel,paper and pulp, mat€rialhandting and mineral

ProcessingndustryMedical lectronic quipment,computerperipherals,telecommunlcalions,est andmeasuringnstrumentsEarth moving andconstruction quipmenl.hydraulic equipm€nt anddiesel ngines,Gen. s€tsHeaWequipments

Cementmanulacturing nit

Valves, rubber anFplasticPlocessjng achjneryExpon oriented Jatiricalion

Transmissionowers

Expotl footr,,ear'C€ment

grindingunit

Thane (Maharashtra)

Awarpur (Maharashtra)

Nashik Maharashtra)

Faridabad Haryana)

Ankhshwar (Gujarat)

Kansbahal Orissa)

Mysore (Karnataka)

Bangalore (Karnataka)

Hazta (Gujarat)

Hirmi {MP)

Chennai(TN)

Iz\andla Gujarat)

Pondicherry

Kalol (cujarat)

Jharsuguda(Orissa)

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The Future

The financialr€sultsof t&T far the geat 7996 - 97

are not too encouragingas lar as proliis are concerned.

The company has repo ed profits of Rs. 410 cror€

against the previous yeais pro{it of Rs. 390 ctore.

thereby achieving a slim gro\.\,thof five per ceni.

However, the turnover has recordeda sharp jump hom

Rs. 4249 dare to Rs. 5304 crore. From another

p€rspective, the performance has been commendable

considering the slump and intense competition in the

cement industry and performanceol oiher comp€titors

during the period.

L&T is firmlg consolidating itsell in four nrajorbusiness reas engineering,constructionjcement, and

equipm€nt manufacture,Presently,cement accounts or

15 per cent of the total revenue. t has embarkedon a

major expansion programm€ that will double the

capacity o 12 m tons per annum, which will make t the

largest cement manufacturer n India. A Euro-issueof

$135 million has been planned o fund this expansion-

Having defined EPC as a thrust business for the

future, it will be rele!,ant to iake a look into th€

competitivestructureof ihe EPC business.n the domesiic

business, &T hasa handfulof comp€titorsamong whom

BHEL. Punj and Lloyd. and RITES are lhe maio, onpq.

The peculiar nature of EPC business s that it is not a

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sector specific industrg. The core infrastructure activities

such as power, ielecom,and roadswill becomekey focus

areas or the country. Most players n this industry have

specific competencieswhich cater to specialisedareas,

L&T is p€rhaps the only company which competes n

almost every sector by virtue oI tts diversifi€d echnical

competenc€and expertise.L&T's EPC businessakes he

{orm of competitive biddins {or executjng projects lrom

stalt to iinish for third parties,part executjonof projects

as sub contractors io other bidders, and autonomous

bidding or s€ttingup its own projects n the core secrcrs.

ln ihe global EPC business,however,urecompaoy

fates stiff compeiition from the global consiruction and

engineering giants like Hyundai, Saipem, Mcdermoit,Cat€|piller, o name a few. In such a highly competitive

envionment with technotogy beins a handicap (that most

Indian companiessuffer rom), th€ logicalstep is to ent€r

into strategic and technologicalalliances. Most Indian

EPC players ollow ihis route and L&T is no exception.

Some of itsalliances are with iis competitois, for

insiance, Caterpill€r, Marubeni. Like most Indian EPC

playersgoing global,L&T s overseas PC op€rationsare

concentrated n the developingand dev€lop€dcountries

oI South-andMiddl€-East sia such as Tha and. Malaysia,

Vieinam, Burma, BangLadesh, Sri Lnnka, and Gu[

countries ike Qatar, SaudiArabia. Bahrain, Oman, and

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Though t&T has attained impressiveachievements,

the productivitgof severalbusinesses re alarmingly ow

on ihe internationalbenchmark evel. In an environment

of hrgh int?resl raLe) and lighl liquid'tV posilion. the

eflicientmanagementof working capitalwill form ihe key

to future L&T successes.Some ot the areas of concern

Jor L&T in the short-iermwould be : the need to attain

fasterdeliverystandards, ustomersatisfaction, ontinuous

cost reduciion, productivity mprov€meni and operating

with low working capiial. and aiming at leasi to be a

regionalplayer of repute and recogniiion

Quesrions :

(a)Carry oui a SWOT Analysis

of L&T. 20

(bl Explain lhe D€c'sron-mdking rocess at L&T and

how does it contribute to performance of the

cotrrparry. 10

(c) What are the variousstraiegieshat you recommend

for L&T's EPC dMsion in domestic and foreign

markets?

10

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December,2OO5

MS-21: SOCIALPROCESSESND

BEHAVIOURALSSUES

Time 3 hours Moximum Morks : 100

(Weishtage 70o/o)

(i )

(i0

(iii)

( iD)

There are.two SectionsA and B

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

.tudents whohaue agtsrered o, MS21 p' ior @

Januarg,2004, i.e. upto Jul|, 2003. Set is neant

Jot the students who haue rcsistered Jor MS-21

Jrom Januory, 2004 onwards.

Attempt ony four questionsJrcm Section A. AII

questions corrg 15 marks each

Seclion B is compulsory t'ar dll and carries

40 marks.

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1 .

2.

SECTION A

Set I

(Pre-Revtsed)

DescribeErikon's Model oI Personaliiy evelopmentand

It's relevance fol work environment.

What are the di ffereni types of stress? Describehow to

copewith stressn an organisation. iie suiiableexamples.

3. Explain the f€edbackprocessand its importance,citingexamples.

4. Describedifierent gpes of power and their role in an

organisation.Ciie examples.

5. Write short noteson any three of following

.'(a) Organisationaleffectiveness

(b) lmportanceof team-work

(c) Group formation

(d) Aitribution th€ory

(e) lmporianceof helpingprocess

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l .

2.

3 .

SECTION A

S€t II

(Revised)

Describe he role of a manager n an organisatronn th€

presentday scenarioand €xplainhow he,/shecan change

the mindset of €mployees in the changing business

De<cnbe dlienl ealurps f coun.erlingn Ine organrzarronal

context and it's importance for the management01human

Descrjbeany two modelsof group development.Can the

group effectiven€9se improv€d hrougha carefulplanning

ot group development rocesses

4. Discuss he importance of understandingpoliiical behavjour

in an organisation. Comment on wheiher the us€ o{ pov,rer

and politicr in organisaiions5 ethicalor unethical.

5, Write shofi notes on any fftlee of th€ following

{a)

(b)

(d)

Learningorganisaiions

Importanc€of teams

Knov.,ledgemanagement

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SECTION B

6, Read ihe fo)lowing case careflJly and answer the questions

given at the end r.

Giridhar had come a iong way from when he joined

R.P. Communicationshavinga turnoverof Rs. 20 lakhs)

as a trainee ariist in 1995 and ioday he had come to

occupy the position of Creative Head at R.P.

Communications with a turnovef of Rs. 15 crores).As a

young trainee (in 1995), 6iri {asGridhar is addressed y

his colleagues) had been an amicab)e personaljty, he had

always djsplayed keenness to gajn knowledge - leayn

more, many vjsjble raiis of creaiivi\, - in the sense ry

to make "unique"/different from oihers presentations,

willing to share information and so on. lt was typically

these qualiiiesof Giri which made him approachable oothers and appreciated by one and all, and also saw him

rising in ihe organisation sh1lcture-

Nicky I an\tar. lhe Crealrve Drreclor ar R P.

Communications,who had known Giri tight frm the time

he had joined R.P. Communicationsas tEinee, i!,as

sqiprsed at recailing the contents ol the )usi conchded

meeting with the membersol the qeAl\ve team at R.P-

Communications.Meena (a rec€nt recruit at R.P.) had

sajd "Madam, Giri sir scares the hell out of us by re{using

to listen to our point of view." Raj, an €xecutiveat R.P.

Communicationshad revealed"Madam, Giri wiihholds

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important information from us, and createsconflictwhen

he has to interactwith other teams at R.P."

Mohan, a senior creativemanager at R.P. had saidthat Giri seems o have changed,he s€€ms o preler to

adopt a lolcing style, like a conlroiler, and a\pecis al l

th€ assignmentso be compleiedbefore ime, and doesn't

enteriain any questions/or quenes from any ot the

creativ€t€am members. Nicky {ound ii hard to beli€ve

ihat a likeableperson such as Giri could causeconflict.

Nickghad promised he cr€aiiv€ €am to look inio the

matter and have a talk with Giri also. Alter an informal

chat with Giri, Nicky feit that one of the causes f Giri's

behaviour could be Rol€ Ambiguity. This sh€ had

concluded rom one statementmade by Giri "You know

Nicky, my team is good, however, they expect me io

behaveas I was before. I am trying my best to convince

them hal in my new role am expecledo per lormeven

beiter than before."

Nicky d€cided o seek he help of the CEO of Leam

and Grow LeadershipCentfe (LSLG), a training firm,who r€gularly holds workshops meant for helping

professionalsand executivesof firms to diagnose heir

own b€haviourpatternsas well on how to managesiress

that could cause various levels of conflicts for the

individualas well as the organisation.

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Questions

(a) What do you think is th€ majoi causeof the problem

in the above case?

(b) Do you asree with Nicky that Role Ambisuity may

havecauseda change n Giri's behaviour? Why ?

(c) Can you suggesiways in which f'rms such as R.P.

Communications can avoid such occurr€nces n

tuture ?

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December, 2OO5

MS-22: HUMANRESOURCE

DEVELOPMENTTime 3 hours MaximumMarks 100

(Weishtose0o/o)

There orc three SectionsA, B ond C.

Secfion A is meont for students who haLe

resistered or MS22 prior to Jonuary 2005, i.e.

upto July 2004.

Section B ts meont lor students who hdDe

registeredot MS 22 Jrom Jonuory 2005 onwords.

Attempt ong thrce questions rom SectionA or Bcontingenton the rcgistrotionperiod. Al l questions

carry 20 morks eoch.

Section C is compulsory tor all, ond carries

40 norks.

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l .

SECTIONA(pr€-Revised)

"Peopleneed competencies to perform tasks. Withoutcontinuousdevelopmentof competenciesn people, an

organisations not lik€ly to achiev€ ts goals.Competentand motivated employees are essential lor organisationalsuIvivai, grov"th and excellence..,Comment on thisstatement and discuss the underlying issues,with suitableexamples.

Discussdevelopmental supervisionas tacilitdung processtohelp employees improve their performance and empowerthem. Suppori your an$r€r with suitable examples.

Explain the rdtionale for developm€ntar approach toIndushial Relations. Suggest a core programme tordeveloping top management, middle managemeni andunions for Industrial R€lations Management. AIso discussihe developmentalmechanism for improving IR.

Define and describe the process of counseiling andmentoring, with suitable a\amples.

Write shon noreson any ,[r€e of ihe lollowing :(a) Task delineation

(b) Analysis as a supeMsory tool

lc) ConllictManagemeni

(d) Performance Appraisal System

(e) Emergins r€nds n HRD

2-

4 -

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-

SECTION B

(nevissdl

Explain theconcept of career in the context of careerdevelopment perspective. Dsclrss various jndividual and

organisationai sirategi€sfor careef development.

Define and descib€ ihe objectjvesand psychological basisof reward system. Briefly discuss vatious aspects whichrein{orce d€sirable behaviour, hjgh p€rformance, and

D€fine HRD Audit. How can HRD Audit be used as ar ODlntervention in an organisation ? Bdelly describe thesignificanceof HRD score-card o{ a film.

Explain the concept ol Knowledge Management. Bri€fly

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

Wdte short notes on any tiree of the following :

(a) Re-ofganisation o{ work

(b) Value-anchored HRD processes

{c) Needtor competencymapping

idl Sysl€ms Theory and Human pedormance

(e) Verticalre-skilling

l .

2.

3 .

4 .

5.

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SECTION C

6. Read the lollowing casecarefu(y and answer the questions

givenat the ehd.

Training for Whom ?

Microelectronics, a Califomia-based elecitoDics

defense contractor, has enioysd a smooth grow'th curve

owr the past fjve years, primarily because of favourable

derense Jundiog during ihe Reagan administration's

build-up of U.S. military defeNes. Microelectronics hashad numerous contacts to design and develop guidance

and radar slsf€ms for military weaponry.

Atthough the {avoutable funding cycle has enabled.

Microelectronics to grow at a st€ady rate, fhe coDpany is

finding it in€Earinglydi{ficult

to keep jts reallg good

engineers, Bated on ayterEive tunover analyses

conducl€d b, Ned Jackson, the human resourcss penmng

manager, Microelectronics'problem seems to lte its

inability to keep engineers beyond the "critical" Jjueyeat

polnt. Apparentlv, the probability of tumover drops

dramatically after five yea$ ol ser.rce. Ned's conclusion is

that Microelecironics has been essentially serving as an

jodustry college. Their stafiing strategv has alt'aals b€en

to hire the best and bdghtest engin€ers from the best

engjnee ng schools in ihe United Siates.

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Ned beli€ves hai theseengineers fien get lost in ihe

shuffie at the time they join the firrn. For example, most

(i{ not all) of the new hires must work on non-classified

projects until ci€ared by secLrrity to join a desrgnated

major project. Security clearanc€ usualiy iakes anlirh€re

from slx to ten monfhs. ln ihe meaniime the nEjor

project has started, and ihes€ young engineers lrequenily

rniss oui on its design phase, consjder€d he mosi creative

and challenging segment of the program. Because o, the

Datufe of proj€ct work, new €ngineerg oft€n have

difficulty leaming ihe organizationai culiue - $rch as

who to ask when you hav€ a prob)em, what the general

dos and don'15are, and why the organization does things

in a c€rtain way.

After headjng a task force o{ human tesolrceprcfessionals within Microelectronics, Ned has been

designated lo present to iop management a proposal

designed to teduce turnover among young engineering

r€cruits.The essence.ol his plan is to create a mentor

program, except thai in this plan the mentors will not be

the seasonedgraybeardsof Microeiectronics. ut ratherthose engineers In rhe (ri(lcdl lhree.lojive-yea/ sewice

window, the p€nod ol highest urnover, These engineers

wjlJ be paired with new engine€ring yecruiis before the

recruits actually repoft to Microelectronics lor work.

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Accordrng to the task force, the programfte is

hrofold , l1) it benefits the newcomer by easing the

transition into the company, ard (2) it helps the

tfuee-to-l:)vetear service engineers by enabling them to

sewe an important role for the coftpany. 89 pef.otmjng

lhe mentor role, these engineers wlll become more

commi(t€d and henc€ less likely io leave. As Ned

prepared bis filteen minlite presentation {or top

manngenlent, he u/ondered it be had adequately

anticipated the possibleobtecliors ro the progrdm in

oraer to make an intellisent dejense of it. Only time

would te[

Qnestions :

(a) ldentify the salient issues rom HR point of vi€w lor

this case.(b) lf yor-r wefe io study ihis turnover problem, how

would you qonduct a needs analysis or evolve a

counselling programme ?

(cl What are ihe caus€s of dissatl$faction and lumover

in Microelecrronics

{d) Do you find the mentoring prograrim€ suitable toIeduce tumover ? JustiJyyour an$rer.

MS-22 3,000

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Term-End Examinalion

Decernber,2OO5

MS-23: HUMAN

Time 3 hours

RESOURCE LANNING

MoximumMarks 700

(Weightose70o/a)

(i )

. (i,

. (iiil

There ore two Sectians A ond B.

Secfion A hqs tu)o Sets and I.

Set I is mednt lor the students who h4[e registercd

lor MS23 prior to Julg 2004 i.e. upto Januorg,

2004.

Set Il is meantor

the studentsL|ho haue cgistered

Jor M9% fron July 2004 onwords.

Attempt ony thrce questionsJrcm SectionA. All

questlonscorrg 20 morks each.

(vi) Section B is compulsory Jor all and corries

40 marks.

(iD)

ID)

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SECTION A (Pre.Revised)

(set D

Define and differentiate b€t\teen Job Analysis, Job

Description and Job Evaluation.Select an appropriate iob

e.,aluation method and create a plan for e\aluating lobs oi

scientists n difterent grades.

Discuss the role of indoctrination in organisalions. How

can Perlormance Appraisal, and Training and

Development be made an integral part of Human Resource

Planning? Discuss.

Discuss the scope of Human R€source Audit. While

auditing Reward systems or employees n a manufacturing

organisation, which factors should be taken into account

and why ? Explain with suitable examples.

Define and discuss he n€ed for Hurnan ResourcePlanning

in an ordanisation. Briefly discuss various approaches to

HRP

Wrile shon noreson any thre€ of the following:

(a) Trainins methods

(b) Valu€ d€t€rminants of HRP

(c) Human Resource Accounting

(d) Labour Market Behaviour

(e)Promotion and Reward Policies

3.

4.

5.

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SECTION A (Revis€d)

S€t Il

1. Define and discuss the objectives of Human ResourcePlanning at organisationalevel. How does it help in

determining and evaluating fuiure organisational

capabilities, needs and anticipated problems ? Explain with

suitable examples.

2. Define and descnb€Job Analysis.Briefly discussseveralmethods in which information about a job is collected and

evaluated.

3. What is the purpose and processol recruitment function ?

Discussvarious methods of sourcing mdnpower.

4. How is monetary value assigned o different dimensions of'

Human Resources costs, investments, and worth of the

- employees ? Bri€fly explain Cost and Economic value

approachesof measurement.

5. Writ€ short not€s on any t rree of the following I

{a) MBo(b) SuccessionPlanning

(c) Competency Mapping

(d) Job Evaluation

{e) H.R. Inventory

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SECTION B

6. Read the casegiven

below and answer the questions givenat the end of the case :

Mr. IGpil Kumar and Mr. Abbas AIi were working in

a scooter manufacturing public sector industry as Senior

Quality Control Engineers n 1988. On post of Deputy

Chief Quality Controller has fallen '"?cant due to the

retirementof the incumbentand the management ecidedto recruit a qualified, knowledgeable and experienced

ptofessional from outside so that the present quality

standard may be improved thus ensuring better

marketability of their scooters in the face of stiff

competition. Mf. IGpil Kumar, who was a mechanical

engineer with about 15 years expenence n the QualityControl Department d€aling with mopeds and scooters,

could have been promoted to fill the post on the basis of

seniority. However, ihe managementwas looking for a

graduate in siatistics wiih experience in latest Quality

Control (QC) techniques like statisiical quality control,

quality assurance and other related areas rather than a

m€chanical or automobil€ engineer wiih the routine

experienc€ in quality control. As such instead of

promoting Kapil Kumar, the management advertised for

the post of Deputy Chief Quality Controll€r - since as

per company rules it was a DR (Direct Recruitment)

vacancyalso.

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S€lectior oI Outslder

Out ol the applications eceived n response o tle

advertisement, six candidates wer€ called for interview

including the hr,,o intemal candidates, Mr. Kapil Kumar

and Mr. At'bas Ali. The person selectedwas an outsider,

one Mr. Ratnam,who had over 12 years experience n

SQC, quality assurance tc., in the two wheei€r private

manulacturing indrrstry. Mr. Ratnam joined within twomonths time expecting hat in his new positionhe would

be th€ main controller or qualitg.Howev€r. afier joining

the organisationhe cam€ to know that h€ would be the

secondseniormostperson n the hierarchy or controlling

the quality and would be repofting to one, Ktqral Singh,

the Chief for Qualiry Controls. Mr. Kirpal Singh hadcome up to this post by seniority and was basically a

dipioma holder in automobile engineerins. He had to his

ctedit about 28 years of jndustrial exp€rience,oui of

which 20 years were spent in Quality Control

Department of two industries.He joined the present

organisation n its Quality Control Department and had

17 years experience in the otganisation and was due for

retirement withjn the nexl 2 to 3 yearc. On learning

about the retirement time of Mr. Kirpal Singh, Mr.

Ratnam had the consolation that he would be able to take

up the positionof 'ChiefControllerol Quality'very soon.

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lnte erence from top

Ratnam could not put forth many good suggestions(for quality controls) because oI the inierference and direct

supervision of Kirpal Singh. He, however. could pick trp

a good deal of knowledge about the working of the

co)npan9, ibe nature and iendency of different production

department heads particularly with regatd to care lor

quaiity,organisation

for 'QC' in thecompany,

tfie various

compon€nts required for axembly of the company's

two-wheeler scooter and the expected quality standards,

dlawbacks in the pr€s€nt system of quality controls, etc.

Right from the time the advertisement for the

selection of Deputy Chief Quality Controller appeared,

the O.A. (Office$ Association) of the organisatiot had

been pressing the management to conslder ihe case of

Kapil Kumar for promotion to the above post based on

his seniority n the organisation.

Meanwhile, the management obtained a licence in

1989 for ptoducing Thtee-Wheeler Autos. As a resuli ofthis ard the pressure from O.A., Ratnam was Iranslefted

to look after the Quality Control Department at ihe

company's new Three-Wheeler plant, wherens Kapil

Kumar was promot€d as Deputy Chief Quality Controller

in the present two-wbeel€r scooter plant in 1990 (after

creating oDe additional post of Deputy Chiel Quality

Conttoller for the new Project).

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In 1991, the StateCovernment,which controlled he

company in question, changed th€ Managing Dkector.

During the regime of this new ManagingDirector, Kapil

Kumar was promoted as Chief (Quality Controls) nextyear, when Kirpal Singh retired. This decis:onwas based

on the recommendationsof Kirpal Singh and partly

attributed o pressure rom O.A., for furtherpromotion of

Kapil Kumar basedon his vast experience n the eualityControl function of thts industry. Abbas Ali rose to the

position held earlier by Kapil Kumat.

Nlotment of Company Quarters

The Company had its own townsbip near th€ factory.

Its quarterallotmenischemewas basedon the length of

Ser,ice, i.e., date ol joining. Ratnam had asked lor a

suitablequarter at the time of interview and was thus

allotted a tile quarter meant lor ihe Senior Engjneer's

cadre. He learni about this a{ter occupying the quarter.

Ratnam asked for a change ol Quarter - prelerably a

RCC-roof quarter, - but his r€quest was tumed down,sincehe had put in only few months of servicewhereas

rnany others senior to him, on the basis of their larger

length of sewice in the Company (havingover 10 years

seNice), were staying in tiled roof quarters and were

awaiting a chance for a RCC root quarter.Kapil Kumar

and Abbas Ali were residingn RCC-roof

quarters.Soon

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after Kapil Kumar's promotion io the post of Chief

(Quality Controls), he was allotted a bungalow.

The management's decision in this case must be

vi€wed in the context of the downtrend in the demand for

scooters and three wheeler autos during 1993 lollowing

complaints from dealers abut the detedorating qualtty of

components as also their short life. Notably the

comdaints had risen ten-fold in that yeat as compaled tothat in 1988.

Questions;

(aJ Was the managementJ'ustifiedn iaking a decision to

recruit a qualified and experienced person from

outside as Deputy Chief Quality Controller ?

(b) Was ii in the interest of ihe organisaiion to transfer

Rainam to the new auto-wheeler plant and promoie

Kapil Kumar ? What could have pyompted ihe

management o take this decision?

Q) How ao you view the rde oI O.A.s in supportjng

only the local and internal candidat€s and

overlooking the interests of direct r€cruits even when

they were family members of the Associaiion,

particularllr at a time, when the indLlstry needed

protessionally qualified persons to fill key technical

posts?

(d) How would you react to the management's scheme

for quarter allotment and whg ?

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MANAGEMENT PROGBAMME


December,2OO5

MS-24: PRE-REVISEDUNION-MANAGEMENT

RELATIONSREVISED EMPLOYIVTENTELAflONS


(Weightage70o/a)

Note :

(i )

(ii)

l i i ,

There are tuo Sections A qnd B.

SectionA hos frlo set's Sef I is meant lor the

students aho haue registeredJor MS'24 prior to

Jonuorg,2005 i.e. upto June, 2004 Set ll is meont

Jor the stualentswho haue registeredrom Jonuarg,

2005 ond onwards.

Attempt any three questions rom.SectionA All

questionscoffg 20 morks eoch.

(iD) Section B is compulsory Jor all and carries

40 morks.

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SECTION A

(Set D

(Pre-Revts€d)

l. Discuss the organisational factors which affect the

union-managementelationscitingsuitableexamples.

2. DescribeheoriginandgroMh of employers ssociarjons

in India.Discuss he pres€ntpositionandchall€ngesacedby theseorganisatlonsn the aurrentscenarlo.

3. ldentifu the skills of negotiation.Dscuss the negotiationprocess and cite suitable organisational examples in

supportol your answer.

4. Identify the shategies lor making participation more

5. Writeshort noteson any ttree of the following :

(a) Tripartiteconsultation

(b) Functionsof tradeunion

(c) Managingcollectivebargaining

{d) Arbiiration

(€) ApFoachesto indushial elations

20

20

20

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l -

5.

SECTIONA

(sETn)(Revtsed)

Discuss th€ role of Indian Constitution in evolimg labour

policy. Identily th€ impact ol ILO on ind$trial relations.

Brtelly explain how internal allairs of the union are

managed. Describe ihenew

rol€s of tradeunions.

Define collective bargaining. Desqibe the types of

colbctive baryaining citing suitabl€ organisatirn examples.

Define adjudication. Analys€ the principles ol industrial

adjudication.

Write short notes on any three of the following :

(a) Red Hot Stove Rule

{b) Obiecijves ot Worlers' ParticjpatioD in Management

{c) Activities ol Managerial Unionism

(d) Conciliatton

(e) Grievanceprocedure

20

20

2.

3.

4.

20

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SECTION B

6. Read the case carelully and answer the queshons given atth€ end :

Norman (l) Limited

.I''IECOMPANY

The Iirst wall tile manufacturing piant in India was

established y Kay Pee in 1963 at Than€ in Mumbai

under the name Norman Tiles. Thp <ompanywas using

the brand name'Norman', a leading intemational tile

manufacturer, Norrnan Intemational Limited and was

paying royalty {or the same. The Norman lnternational

Limiied owned 49% equity in this venture since lts

inception. With gro\ nh in sight the company set up

another manulacturing unit at Rampur in th€ state of

Uttar Pradesh with an investment of Rs. 85 million in ihe

year 1981. lnitially, at Rampur mit the company was

carrying out only partial operations with semi-finished

products being supplied b9 Thane unit. It was only in

1984, that the company started carrying out full

operations at the Rampur unit. Since the market lor

ceramic tiles staried expanding, the company €xpanded

its operations accordingly. The process of manufacturing

wall iiles was such that it needed unskilled manpower

barring few litters and eleciricians. Accordingly, the

compan9 hired 400 workers mostly uneducated and

unskilled from nearby villages. Few of them were takenfor the fitter and mechanicpositions.Apart from thege,

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there were sixty stalf members looking afier th€ other

suppori functions. The wo*ers were paid )ow wages and

were employ€d ontemporary

basisat

thebeginning and

ijil 1986 most ol them were noi made permanent. The

human resourcedepartment was headed by R.C. Jain,

who was an experienced professional and was with the

firm since its inception.

THE GENESIS

ln 1986 the company ventured into floor tile

manufacturing and set up another facility at Rampur unit.

This plant was s€mi-automatic as compared to the wall

tile plant which needed manual operations. The

machinery of floor tiles unit was bought from lialy and

due to the naiure of process some expefi€nced workers

were shifted fyom wall iile lacilily. Slowly, hro distinct

groups of workerc emerged based on the nature of fheir

job and subsequentskills required. First group was that o{

unskilled workers mosily associated with manual

operations and the second group was that of skilled

workerc looking after technical operahons. The second

gtoup was paid higher wages than th€ first group. Thisdisparity led to disconteDtmentamong wo*ets but in ihe

absence of union, it never came out as an organlsed

teactjon- The first such organised attempt was made by

workers in 1988, bui a prompt and harsh action lrom

management aborted the worke6'bid to form union.

However, this event drew management's attention

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towards workers' grievanc€s and management h€lped

workers to {orm a union in 1989. Th€ union was named

"Bhartiya Crystallisation Mazdr.rrSangh". However, sinc€

most of the wo(kers barring fe'r,/ t€chnical ones were

uneducat€d, they were unaware ol roles and

responsibllities f union

The management staried negotiations with the newly

form€d union and the first wage s€ttlement agreement

was signed on January 19, 1990. In this agreement,

though the management agreed to increasewages to the

extent oI Rs. 250 per month, it linked wages to

produciion iargets. Afier tlree months of this agreement,

the union leader left the organisation to join govemment

service. The union was left l€aderless. After some time

ihe workers started voicing their concem about thetarget-linked '"rJages,but in the absenceol a lead€r their

concems could not get a voice. It was at this point that

some extemal labour leaders sta*ed incitins ihe uotkers.

A gate meeting was organised to exploit the situaiion on

Septembd 21, 1990. After this incident the industrial

relations situation further worsened and led to a go-slow

movementby workers n January 1991. This affected he

productivity of the plant s€v€rely. Due to the absence of

union leadership. management too lound it difficult to

control the situation,since extemal eaders' nfluencewas

very much visibl€ and company's HR marnger R.C. Jain

refused to talk to the outsiders. He remained adamant

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and left the job in Marcb 1991 and th€ go-slow by the

workerc continued. In another development the

incumbent HR manager Arun Joshi, vho took over alter

Jain left converted rariable DA to a lixed DA rate. Since,

at that time in ation iras spirajling and the rate ot DA,

dlsewhere, was high, the wotkers refused to accept ihis

provision. Ultimately, under pressure from extemal

leaders as well as workerc of the firm, Joshi withdrew the

fixed DA and accepted the variable DA provision.

ln the meantime, K.N. Trivedi took over as the unit

head on May 5, 1991. Belore Joining this plant, he had

served the tndian Air Force for seventeenyears and was

a sinct drscipiinarian. The organisational situation

demandedquick

action io stopgo_slow because the

company had market share of forty per cent in both the

tile categories and the demand for tiles was still going uD

The management did not want to lose a single day's

production. In a catculated move the managemeni

suspended thidv five workers who were on a go_slow

This was for the lirst time that any work€r was suspended

fuom the plant which instrlleda senseoI fear in the minds

of the workers- As a resuli of tbis, workers started

workins and ihe productMty of the plant started showing

Meanwhile, the management had terminated some ot

the suspended empioyees who latet on mo!€d to the

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labour court against management's action on the

presumption ihat labour courts arc generallg sympathetic

to the work€rs. Ai the same time, Triv€di started dialogue

with the extemal leaders to end the stalemate. The

external leaders put pressureon the inanagement to

reinsiate the suspendedworkers. Management agreed td

make permanent those €mployees who were working

with the company since its inception and did it with

immediate effect. Suspension of some ol ihe workers wasalso cancelled.Though these efforts helpedmanagement

in streamlining the production, the atiitude of the workers

could not be changed totally. The ownership gpirit

amongst workers could not be developed.

The situation took another ugly tum in February,

1992 when the workers who were suspendedearlier tri€d

to create disturbances in the plant. The discontent was

further fuelled by bad food provided to the workers in ihe

units canteen in March, 1992. Ultimat€ly, this led to

fomation of a new union "Bhartiya Yula Sanitary ard

Crgstallisation Mazdur Sangh". This union was not

affiliated to an9 national labour union. However, the

leaders were under the influence of Bhartiya Mazdur

Sangh (BMS). This union eubmitted a cha*er o{ demands

to tie management. The demands included grain loan

whicb was a conlentious issue b€causethe company had

nev€I given any grain loan to the worke6. The demands

were rrot accepted by the management. The workers

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gheraoed Trivedi but the management did not accede to

the demandsand called he police to intervene.

On March 17, 1992 the workers went on strike on

the call of the union without givingany prior notice. The

management terminated seventeen workers during the

strike. The strike continued iill May 5, 1992. The

workers were not paid any wages during the strike

period. Since tbe workers w€re low wage earners, theywere unable to continue the strike lor a longer period.

Th€ management used the situation to their advantage

and accepted onty minor demands of sanctioning an

advance of Rs. 500 to the workers. The workers

accepted he managementdecision and were willing to

restart production. Management re-employed the

sus!,ended workforc€ gradually over a period of

filteen hrenty days. Since, th€ work€rs did not receive

wage. lor rle strike penod. they had realised the

importanceof iheir €mployment.

In October, 1993 the secondagreementwas signed

beiween managementand the union. Behreen October,

1993 and December,1996 the productivityand industrial

relations were improved. In 1996 th€ organisation started

receiving export orders for its products. The quality

requ:rements for th€ export orders were string€nt.

Therelore, the organrsalron ecided ro go in for ISO

9000 certification for their Rampur plant. The

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management realising the importance of workers'

involvement in ISO 9000 cedification proc€ss stafed

training work€rs on a continuousbasis n June, 1996.

The in-house training emphasised on house keeping,

geneval hygiene of the workers, standatd operation

procedure and awareness about all kinds ol lostes. As a

result of contimred efforts, ISO 9002 certification was

receiv€dby the plant in January, 1997. Meanwhile, he

third wage agr€ement was signed behveen themanag€ment and the union for a period of three years in

January, 1997. To rcinforce the training process, HRD

cell with well_equipped in-house b-aining tools was

developed in January, 1998. Training programmes

iocussed on ghoFFfloor excellence and iotal Poductive

maintenance {TPM). Qualitym;nual for intemal use was

also developed. The goals for 2000-2001 for the plant

were devised as under :

a Laying of natural gas pipeline

a ISO 14000 certification

a Control of losses

a Reduction jn personnel expenditute

a Team building training

The Rampur plant ol Norman had come a long way

sinc€ ts inception. n the words of Trivedi "despiteal l the

bottlenecks w€ have achieved a satisfactory level of

productivity. We still intend to continue doing so by

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various means. However, I want to build this plant as a

communiry where each mernber's commjtment with the

plant remains high. This can only be achieved by

inculcating the ownership !?lue. We sincerely believe that

this can only be developed by creating a community ol

Norman in which every member is ensured of a minimum

standard of living with all basic amenities and worry free

life away from work. We intend to do so by providing

medical, educational and vocatjonal training facilities for

their families, thereby developing trlist between the

managementand the workers".

Questions ;

(a) Does lormation of trade unions help organisations

impvove indusirial relations ?

(b) Was it a nght strategy to nMure pro-management' tmion leaders?

(c) Th€ strategy to instill fear in the minds of workers to

improv€ their productivity was jn the inter€st of the

organisation, Discuss.

(d) ln your view, what action should have b€en taken by

the managem€nt at various stages to improve

labour-manag€ment r€lations ?

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MANAGEMEM PROGRAMME


December,2OO5

MS-25 : MANAGINGCHANGE NORGANISATIONS

Time : 3 hours Maximum Marks : 100

(Weishtase 70a/o)

Not€ |

(i) Tbis paper consisb of tuo SectionsA ond B.

(ii) Section A con$ists o/ tuo sets. Set I is to he

attempted by students Lrho hqve rcgistered t'orMS-25 belore Jsrtuorg, 2004. Set It k to E€

ottemprer lbv studen/suho haue registeredolMS-25 fron Jahuary, 2004 on(a1d'

(iii.) Ansurer ony four questions rom SectionA, eoch

corrying 75 marks.

(iu) Section B is compllsory lor att and conies

40 marhs.

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4.

SECTTON A

SET I (Pre-Revlsed)

1. Discuss the process ol lranslormational change and ihe

steps involved in ii. llu$trdie an instanc€ where such a

change was brought about.

2. What is an organlzational intervenlion ? Brielly discuss he

meihods o{ task force and ifternal {acilitator development

with examples.

3. Describ€ th€ roLe of an intemal change agent and its

significance. Discuss the skiLls required for a successJul

changeagent.

What are the reasons or the failureof implementation l

change jnterventions ? What interface would you sugg€st

behr€enmanagement nd employeesn suchan instance?

Write short notes on any three of the following ,

(i) Work redesigo

{ii) Sourcesof r€sistanc€o change

(iii) Observationmethod

(iv) Role of chief impl€m€ntor o change

(\,) Rol€ eJficaca

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SECTION A

SET tl (Revised)

l. Why do peopleand organisationsesistchange? D€scribe

few methods f managing€sistanceo change.

2. Justifu the processof change evaluationand briefly discuss

its process Highlight action research n e'./aluaiingchange-

3. Discuss the role of business

organisational change andsignificance.

process re engineering n

critically evaluate it s

4. Dlscuss he factors of a successfr.rlompany in continuously

adapting o chirnge. llustrat€.

5. Write short notes on any ,hr€€ of ihe following :

(i ) Turn'aroundmanagemeni

(ii) M€rg€rsand Acquisitions

(iii) Role negotiation echnique

(M Transactionalanalysis

(v) Role of a leader n changemanagemenr

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SECTION B

Read he followingcasecarelullyand answer he questions

glvenat ihe end i

TransAct Insurance Corporation (TIC) ptovid€s

automoblle nsurance hroushout he south'easternUnited

States.Lnstyear a new presideniwas broughi n by TIC'S

Board of Directors ro improve lhe compdnv.

comp€iitiven€ssand customer service. After spendjng

several months assessing the situation, the newpresident introduced a strategicplan to improve TIC'S

competitive position. He also replaced three vice'presidenls.

Ram Kumar was hired as vice presidentof

claims, TIC'S largestdivision with 1,500 employees,50

claims center managers, and 5 regional directors.

Ram Kumar immediat€ly met with all clajms

managersand dire€iors,and visited employeesai T!C's

50 claims centerg.As an ouisider, his was a formidable

1ask, bui his strong interpersonai skills and uncanny abiliiy

io remember names and ideas helped hinl through the

process.Through thesevisiisand disclrssions, am Kumar

discoveredhat the claims divisionhad been managed n

a relativelyauthoritarian, op down mann€r.He couldalso

see that morale was extremely low and

employee-management elations were guarded. High

workloads and isolation (claims adjusteis work in tiny

cubicles)were two other common complaints. Several

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managers ac.knowledged hat the high turnover among

claims adjusierswas partly du€ to thes€conditions.

Folloling discussiohs r.i,jth TIC'Spresident,

Ram Kumar decided to make morale and supen sory

Ieadership his top prioriiy. He iniiiated a divisional

newsletterwith a iear off feedback orm for empioyees o

register their comm€nts- He announcedan. open-door

-policAin which any claimsdivisionemployeecould speak

to him directlyand confldentially ithout gotng irsl to the

immediate supervisor. Ram Kumar also fought

organizational barriers to initiate a flextime program so

that €mployees ould designwork schedules round their

needs. This program later became a model for other

areasof TIC.

One of Ram Kumar's most pronouncedsymbols of

chaoge was rhe Claim5 Mdnagenenl Credo outlining

ihe philosophy that every claims manager would follow-

At his first meetingwith th€ completeclaimsmanagement

team, Ram Kumar present€da list of what he thought

were imporiant philosophies and actions of efle.tive

managers.The managementgroup was asked to selectand prioritize tems from this list. They were told that the

resulting list would be the division's management

philo5qptry 16 all manag€rswould be held accountable

for abiding by its principles.Mosi claimsmanagers xere

uneasyabout this process,but they also understood hat

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the organization was under competitive pressure and that

Ram Kumar was Lrsing his exetcise o demonstratehis

Ieadership.

The claims managersdevelopeda list of 10 items,

such as encorrraging teamwork, fostering a trusting work

environment, setting c)ear and reasonable goals, and so

on. Th€ list was circulated o senior management n the

organizatiori or their comment and approlal and sent.

back to all claimsmanagers or their endorsement.Once

this was done, a copy of the final documeniwas sent to

every claimsdivisionemploye€. im alsoannouncedplans

to follow up with an annual survey to evaluate each

claims manager's pe ormance. This worried the

managers but most of them believed that the cr€do

exercisewas a resultof Ram Kumar's initial enthuslasm

and that h€ would bi: too busy to introduce a survey aft€r

settling inlo the job.

One year after the credo had be€n distributed, Ram

Kumar announced thai the lirsi annual suwey would be

conducted.AU claims employeeswere to complete the

survey and r€htrn it confideniially to the human resourc€sdepartmentwhere ihe suftey resultswould be-compiled

for each claims center manager.Th€ survey asked the

ext€nt to which the managerhad lived up to each of the

10 items in the credo. Each orm alsoprovidedspace or

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Claims center managers were surprised that the

suney Ram Kumar had promised a year ago would be

conducted, ut they were evenmore worriedabout Ram s

statement that the results would be shared with

employees.What "results would employeessee ? Who

would distribute th€se results ? What happens if a

maoagergeis poor ratings rom his or her subordinates

"We'll work out the details at€r," said Ram in respons€

to these questions. "Even if the survey results aren't

great, the information will give us a good baseline or

next ygar's surv€y.

The claimsdivision suney had a high response ate.

ln some cent€rs, every employee completed and reiurnecl

a form. Each report showed he claimscentermanag€is

averagescore for each of the 10 items ahd how many€mployees ated the managerat each l€vel of th€ five

poini scale. The teports also included every comment

made bv emploupes. r rhdLcenler.

No one was prepared for the results ol tbe tirsi

survey,Most manager6 eceivedmoderateor poor ratings

on the 10 items. Very lew managersaveraged bove3 0

(out of a five-pojntscale) n more than a coupleof iiems

This suggested hat, at best. employeesw€re ambivalent

about whether their claims center manager had abided by

$e tO management hi losophy lems.The commenrs

were even more devastating than the ratings Comments

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ranged lrom mildly disappojnted o extremelycritical ol

their claims manager. Employeesalso descrjbed their

long-standing rustraiion with TlC, high workloads,and

isolatedwork'ng conditions.Severalpeople btuntlystaiedthat they were skeptical.abouthe changes hat Ram had

proftised. "We've h€ard the promises6efore, but now

we've losi faith." wroie one claimsadjuster.

The survey esultsweresent to each claimsmanager,

the regionaldirector,and employees t the claimscenier.

Ram Kumar instruciedmanagers o discuss ne survey

data and comments with their regional manager and

ditectly with employees.The claims center manag€rs,

who thought employeesonly receivedaverage scores,

were shocked to learn that ihe reports inciuded individual

comments, Some managers went to. their regional

director, complaining that revealing ihe p€rsonalcomments would ruin iheir care€rs. Many directors

sympathiz€d,but the results were already available to

employees.

Wh€n Ram heard about these concerns,h€ agreed

thatthe :esuhs were lower than expected and that the

commenis should not hav€ been shown to employees.

After discussinghe situationwith the regional dlrectors,

he d€cidedthat the di$cussionmeetingsbetr.reen laims

manag€rs and their employees should proceed as

planned. To delay or wiihdraw ihe reports would

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Lmdermine he credibility and trust ihat Ram was trying to

develop with enlployees.However, the regionai dhector

in that ar€a attended he meeting n €ach claims center

to minimize direct conflict between the claims center

managerand employees.

Alfhough many ol these meetjngs w€nt smoothly, a

few createdharsh leelingsb€iween managersand their

employees.The source of some comments was easily

identifi€dby thejr content,and ihis createda t€w delicate

moments in severalsessions.A few months alter th€se

meetings, two daims center manage.s quit and three

others asked for transfers back to non,manag€m€nr

positions in TIC. Meanwhile, Ram wondered how to

manage this proc€ss more effectivejy, particularly since

employeeserperred another >urvey he fohowingyear.

Questions :

(a) Identify he forcesplshing for changeand the forces

resiraining the change effqrt in this case.

Was Ram Kumar successfulat bringing aboutchange ? Why or why nof ?

What shouldRam Kumardo now ?

(b)

(c)

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l ' * lMANAGEMENT PROGRAMME


December,20O5

MS-26: ORGANTSATTONALYNAM|CS

Time , 3 hours MoximumMorks 100

(Weishtoseqa/o)

(i) There ore h\)o SectionsA ond B.

(ii) Attempt an9 thrce questionst'rom SectionA. Eochquestion carries20 morks.

(iii) Sectian B is computsory and carries40 marks.

SECTION A

l. Wnv i\ rhe .rudy ol groue impo"ranr or a manager Aregroup processes function of interaction? Explain wiih

2. Dpscribp hp processof Burnout. Eyptain with examptevariousstagesand sources J Bum-oui.

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3. What is emFow€rment? Describe ariolrsmeans hrough

which leaders enhance their own, as well as iheir

subordinat€s'powers.

4. Explajn the concept of div€rsity.Briefly discussvarious

approaches o d€al with diversiv in lh€ organizational

5. Write shoft notes on any three of the following

{a) Groups and Committees

(bl Conformiryand Obed.oncp

(c) Role Analysis

(d) Social esponsibilitiesf organisations

(e) Alienation

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SECTION B

6. Read he caseand answer he qu€stions ivenat the ert.

JagannathUaggufor his tdends) s an over-iimbitious

young man. For him ends ustify means.

Wiih a dipioma in engineering.Jaggu joined, in

1977, a Bangalore based company as Technicai

Assistant-He got himself enrolled as a student in an

eveningcollegeand obtain€dhis degree n engineeringn

1982. Recognising is improvedqualificatibn, aggu was

prornoted s Cngrn"er-S"re:n 3954.

Jaggu excelled himself in the new role and becafie

ihe blue-eyed oy of the management.Promotionscame

to him in quick succession. e was made Manager'Sales

in 1986 and S€niof Manager'Marlielingn 1988.

Jaggu did not forget his academicpursuits Atter

being promoted as Engineef'Sales,e join€d the MB.A

(parftime) programme. Aiter completing his M.BA,

Jaggu became a Ph.D. Scholar and obtained. hisDocroraten lq8g.

Functionjng as Senior ManagerMarkeiing, Jaggu

eled on thjngs beyond his iurisdiction. He staried

complaining against Suresh,Section Head and Prahalad

the Unit Chief (boih production) to Ravi, the

Ltecutive-Vice President. The complaints inclld€d -

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delay in executing orders, poor quality, customer

rej€ctions,etc. Most of the complaintswere concocted.

Ravi ,vasconvrnced nd rpqLesred a99u o J-pod i,e

produciionsectionso that rhings couldbe straighi€n€dp

ihere. Jaggu became he s€ction Head and Sureshwas

shiited to saies.

Jaggu stariedsFreading is wingg.He prcvailedupan

Ravi and got saleg and quali4r under his conirol. in

addiiion io produciion. Suresh,an equal in siaius, was

now subordinatedo Jaggu.

Succesg ad gon€ to Jaggu'sh€ad.He had everythjng

going in his favour - posttion, power, mon€y, and

qualification. He di{id€d \rorkers and us€d fhem aspaL\,ns.He ignored Prahalad and established direct link

with Ravi, Unable to b€ar th€ humiliation,prahaladqujf

the company.Jaggu was promotedas GeneralManager.

He becamea m€galomaniac,

Thrng, had to endat >omeDuinl . t hdppened nJaggu's ile too. There were complajntsagainsthim_ He

had inductedhis brother-in-law,Ganesh,as an engine€r.

GaDesh was bv nature corrupt, he siole copper wofth

Rs. 5 lakh and Lvasslrspended. aggu tried io defend

Gah€shbut fajled in his etfoft. Corruption chargeswere

also levelled against Jaggu who was report€d to have

made nearlg Rs. 20 lakh tor hhnsetf.

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On the new year day of 1993, Jagguwas revefted

back to his o)d posliion - sales.Sureshwas promoted

and was asked to h€ad productjon.Roles got reversed.Sureshbecameboss o Jaggu.

Unabl€ o swallow he insult,Jagguput in his papers.

Back home, Jaggustartedown consultancy laiming

himself as an auihority in quality managem€nt. He

poachedon his previous ompanyand pickedup two best

brains In qu"lin,.

Frorn 1977 to 1993, Jaggu's career graph had a

steep rise and a sudden fall. Whether there would be

anotherhump in the cu)ve s a big qu€stion?

Qres,ions j

{d) What is lhe core i5\ue n rhe case Drsauss.

(b) How do you se€ the rise and fall of Jagguvis-a-vis

prevailingpow€r dynamicsand overallorganisational

policiesol th€ company? Supportyour answerwith

logic.

lc) What \,,rouldou do if you weYe

(i) suresh

(ii) Prahalad, nd

(iii) Ravi ?

(dl Wl-ar would be tour d(non if you were rhe Ma-dgrng

Director of the company?

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Term-End Examinaiion

December,2OO5

MS-27: WAGEAND SALARY

ADMINISTRATION

Tine , 3 hours Moximun Marks 100

(Weishtase70o/d

Note :

(i ) There arc two SectionsA ond B.

(ii) Attempt sny four questionsJrom &ction A, eoch

question corrging 75 morks.

liii) Section B is cor/rpulsory, ond corries40 marks.

SECTION A

1. Explain the role of indMdual and group reward systems n

an organisation. What is ih€ fecent trend in reward

management ?

2. Critically examine various methods of job evaluation.

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3.

4 .

Discuss he various componentsof compensation stlucture.

Give an account of various factors to be taken into

consid€rationor determining ompensation nucrure,

Attempt ihe lollowing queshons:

(a) What are the various meihods for lixation and

revision of minimum wages under the Minjmum

WagesAct, 1948 ?

(b) \ihat are the salient features of the Employees'

Provident Fund Scheme under the Employees'Provident Fund and Miscellaneous rovisionsAct,

1952 ?

Discuss the key economic and L€halioural issues

propounded by ihe wage theorists.

What are ihe consideraiions for compensation policy atmacro and micro level ? What are the practical dilficulties

in translating these policies into action ?

6 .

7. Wrlte short notes on arrg three :

(a) Wage survey

(b) Relatingpay to competencies(c) Fringe bene{its

{d) Executivecompensation

(e) VRS

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SECTION B

E. Please eadthe caseand answer h€ quesiions iv€nat the

The National ManufacturingCompany reached an

agreement with iis Union on a production incentive

scheme to increase production. The Company had an

unprecedenteddemand for its goods and the Union

agreed lor the incentivescheme.The managementwas

pleased with the assuranceof the Union leader topersonally undertake the iask of implementing the

scheme.The managementpromised o give him a free

hand 'f he could increase he production.

The Union did increaseproduction o almost double

the original level. As a result, the Union gained

importance. Any problem could be sorted out by the

Union by its direct access to the chief executive. The

rnanagem€nl sraff as d result became wary of i.5

interactionwith ihe Union. Non-members f the Union

were discriminaiedby the Union. lts m€mberscould Set

special favours like disposal of their gri€vances,

promotions.and so on.

The incentive scheme benelitted primarily the Union

members. The scheme was inequitable as some workers

got disproportionately larg€ inc€ntiv€s, some low and

some no incentive at all. Th€ second feature was that as

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the incentive was linked to the Consumer Price Index

ICPI) the disiortion got further accentuated. However,

when the Union tried to misuse ts new found powers he

managementstruck back one day by taking disciplinaryaciions against all the leaders and the Union found all oI

a sudden hat it was without a leader.

Another Union arrived on ihe scene and the leader

had esiablished a rapport with the chiel executive and this

new Union faithlully followed the tenets of the

management ut as a price extracted ome b€n€fits or its

membersexclusively. i had a say on all aspecisof the

management function like reduitment, selection,

transters, job classification, nd so on. In return the

Union saw to it thai production becam€ its exclusive

responsibilityand it had a hot line v,'lth the chiel

executive

{or any problem resoluiion. Again the management

became wary that their paih should not cross ihe path oI

th€ Union resulting in a confrontation.

As the years passed, the Union staried agitaiing for

improvement n the wage scales.Because I the inceniive

sch€me, the company found that any improvement in the

basic wage would pose greater problems and the primary

question before the management was to delink the CPI

from the incentivescheme.The Union r€fused o delink

the CPI from the incentiv€ scheme as some o{ its

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members were earning an amormt equal to, if not more

than the salary as an incenijve itself. At the same time

workmen with no inc€ntive and being grade barred began

to lose. And this resulted n discontentment mongst he

workmen. Bui the dilemmacouldnoi be resolvedand {]is

led to an explosive ituation.

A third Union emerg€d on the scen€ and this led to

lntense nter-union ivalry_resultingn indiscipline,oss of

production, and violence wjthin the factory premjses, asa resultof which the companydeclareda lockout.

When the plant r€opened after four months, the

Union in power lost its credibiligand the new Union had

the complet€supportof the workmen. In th€ meanwhile,

the new HR Manager who join€d the conrpdngourmgthis period ol strife found that a new approach to deal

with tie problem was very helpful. Normalcy in discipline

and production seemed to retum wh€n a realistic

approach of meetng ihe workmen tor resolving problems

and diflicultieswas mad€ by the HR Manager and the

Plant Manager. Simullaneousiy contact Mth workmen tedto the formaiion of committees o look arer vanous

matters relating to the canteen,working conditions,and

welfare functions.The managem€nt lso withdrew at th€

instance of th€ HR Manager, chargesheeis which were in

force for over h.r,o o thre€ years. The abuse ot discretion

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by the old Union leaders was also rectified This had an

immediate effect and the workmen responded favourably

and they ev€n admitted that iher€ was somebody to look

into the problems of the workmen.

The new Union leader was happy that the

management could develop a rappod not only with the

leader but eve4 the workmen and hoped thai it could

expect the management io rectify the d€fect of not

having revis€d the wage scales. But this was not an easy

task as there were a lot oI inequaliiies that the

managementwanted to set right.

The Union, though agreeing with the managemeni,

would not agr€e for a cut in the wages in any manner to

sei right the inequalities. The Union not only wanted to

cling to the beneficial aspecb of the incentive schem€but

also insjsted that the management somehow give an

increase in the basic wages. The management was being

drawn into a viciotls circle of the incentive scheme being

inequitable, but when the Union's attention l,n?s bemg

brought to the high incentive caiegories it reverted to the

low basic wage theme. The management r€mained in a

quandry as regards how to convince the workmen, to win

ov€r the constituenca of workmen, and firake managers

effective and regain supremacy in production.

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Qu€stions :

(a) Identifg he problemsand their causes n me case.

(b) Under the given situaiion,how are ihe problems obe remedied?

(c) As a human resourc€manager,how do you deal

with this case, especially when the Union is

demandinga settlemeni

(d) Suggest various principles and strategies the

managem€nthas to keep in mind while formulating

a wage incentivescheme or the employees.

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MANAGEMEM PROGBAMMETerm-End Examination

December.2OO5

MS-28 : LABOURLAWS

Time 3 hours MaximumMorks 100(Weishtoge700/0)

No'€ :

(i) There are two Sections A ond B.

(ii) Attempt ony fiDe questions roh Section A. All

guestions n SectionA cotry 75 morks each.

(iii) Section B is corl'pulsory anal carries25 morks.

SECTION A

1- What are the constitutional directiv€s n the field oi labour

laws ? What basic changes would you suggest n the labout

fdws to meet the present rcqorenetts of Jabour and

industry ?

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

(a) What are ihe welfare measuresunder the FactoriesAct, 1948 ?

(b) What are the salieni f€atures of Shops andEstablishments nw ?

{c) What are the statutory restrictions on rhe

employment of contmct labour under ihe Contract

Labour (R€gulation nd Abolition)Act, t97O ?

What is the procedure for certilication of standing ordersunder the Industnal Employment (Standing Orders) Acr,7946. Give a list oI acts or omissions on the part ol aworknan, which amount to misconduct.

Give an account of different authorities under the Industrial

Disputes Act, 1947. Whal are th€ powers and duiies ofsuchauthorities

Examine the main features of the Pa!,rneni of Wag€s Act,1936. Hightight the provisions regarding deduction fromwagesunder he Act.

Discuss the various benefits payable under the Workmen's

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

3.

4.

6.

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7. Write shortnoteson any three of the following:

{a) Principles f naturaliustice

{b) Procedureor registrationol a irade unionunder beTradeUnionsAct, 1926

(c) Classification f labour aws

(d) Strikes and lockoutsunder ihe Industrial DisputesAct, 1947

(e) EqualRemunerationct, 1976

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SECTION B

8. Read the casegiven below and answ€r the questionsgiven

ai the end of the case :

Lakshmi Manufacturing Company is a register€d

faciory employing 600 p€ople. It produces spare parts for

cars and scooiers. ts securitystafl at the gaie are very

rigid in checking people/vehi.les going out of the works

to preventany theft of the company'smaterial.

On June 20, 1995, Ramesh, material chaser,

sewices department, went to the stores depafment to

draw 10 new GEC electricswitches 15 amps each) for

some urg€nt breakdown job. Rameshdrew the material at

about 11 A.M. and kept the same in his hand bag and

put it on the cycle handle. Thereafter, he came to the

Cooperative Credit Society oflice to enquire about his

loan application-He suddenly emembered t 11 30 AM

his urgent work at the post olfice (which is sltuated just

ouiside the work gatQ, so that he could write and post

an urgent letter and thereafter go to his departmeni

which is sjtuated at a distance of about one km lrom the

stores department. The dislance between the stores

department and the works gate is about 50 metres.

Rameshworks in generalshiIt, .e. from 7 A.M. to 11 30

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A.M. and 12 30 P.M. to 4 P.M- The lunch-break is

from 11 30 A.M. to 12 30 P.M. and du'ing this period,

workeE are allowed o go out of the works. Ramesh, ike

many otiers, arrangedwiih a person to get his tiffin-

carrier from home to his d€partment .every day ai

11 45 A.M. on payment of a nominal amoum every

month. On June 20 also, his tiffin-carrierhad come.with

his Iunch as usual.

At 11 35 A.M., there was telephonecall to Mahesh

Kumar, Manager Service Department lrom the security

inspectorRamanand hat one Ramesh,T. No_ 321 has

been caught red-handed at the works gat€ while trying to

goout of the works with 10 new GEC electric switches

belonging ro the companv. The rlro securirystal( who

detected th€ attempted th€ft were Ramadhin and

Trilochan. The mat€rials were kept in a bag hanging from

the cycl€ handl€ ol Ram€sh.

Atter the incident, a preliminaryenquiry was held,when Ramesh confessed in writing that by mistake he

was carrying he swiichesas he intended o come back o

his departmentafter his urgent work at the post office.

As per procedure for drawing materials in the seNices

department,on the basisof a written instruction n the

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log Book from the supervisor, matenal chaser is

supposed to prepare the material requisition afier entering

th€ details himself in the MaterialsRequisitionRegister.

AIter getting the Requisition sign€d by the sup€rvisor and

the deparlmental h€ad, he is supposedto go to the stofes

departmeni to draw the material. If the maierials are

heaqr, he has to atrange for a transport. For small items

like switch, fuse, etc. Ramesh himself caffied the same to

the department. Thereafter, he is supposed to hand over

ihe material io the supervisor and obtain his signahre in

the Materials Requisition Register.

On checking up th€ entries in th€ Log Book as well

as in the Materials Requisition Register after the incident,it was Iound that Ramesh had corr€ctly entered ten pieces

GEC electricswitches 15 amps each).

As pet StandingOrderNo. 17 (iii)of tle Company's

Certified Standing Orders, "Theft, fraud or dishonesty in

connection with company's business or property" is a

misconduct warranting dismissal as per Standing Oder

No. 18. The rules also provid€ that the managey can

issue a charge-sheet and also punish with dismissal an9

employee of his depafment who is alleged to have

committed an act of misconduct.

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Questrons :

(a) Advise the Manager,ServicesDepartmeni on thesieps equiredo be lalen in fiis case.

(b) Assuminghat a domestic nquiry s to be held,

suggestar'iousteps f enquiry,n detail.

(c) Suggestwhat positivemeasur€s re to be taken by

the companyor maintainingndpromoting ound

industrialiscipline.

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I Ms4il

MANAGEMENT PROGRAMMETerm-End Examinati,on

December,2OO5

MS-4't ; WORKINGCAPITALMANAGEMENT

Time : i hours MaximumMorks 100

(Weishtoge70Vo)

(j) There ore three SectionsA, B and C.

(ii) S€ction A is mesnt only for the students, Loho

hoDe egistered ar MS'41 wior to July, 2004 I e.

upto Janudry 2004.

(iii) Sectaon B is meant ohly lot the students

registered for M*41 Jron July 2004 semesteronudrds,

(tD) Sectlon C is compulsory Jor oll students

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1. la)

sEcttoN A

Atlempt anv t@o questions. AII questions corrg

20 mdrks.each, .."Current Assets of a lirm are not productve asseiswhile lixed assets are the only assefs tltat generare

aiid produce incomes for a firm. Therefore, aiinance nanager shouid reduce investnrenF mcurrent assets and enhance investments in fixedassets."

Comment on this statement and givereasons of your opinion.

XYZ Limil?dhas toial salesof Rs. 12 8 takls lor rheyear 2004-05. It is estirnated that for ihe sam€period ihe companyhas a grossmargin of 15 per

cent and a current tutio oI 2.5. Cunent liabiiitiesofllre company are Rs. 1.92 lakhsi lnventodes Rs.

0 96 ia-khs and cash Rs. 0 32 takhs. you arerequlred o determine

{i) the average inventory carried by the company,if an inventory turnoler taiio of 5 tirn€s is

estimated. (Assumea 360day year)

(ii) the ar,eGge colhciion period il the opening

balanceof debtorswas Rs. 1.60 lakhs. (Assr_rmea 360day year)

Siate \r'helher th€ ,ollowing managerial acuons(individual! and indep€ndently) would improve orteduce ihe liquidi9 posiiion ol a flrm :

(i) It btrys inventory lor cash,

{ii) lt buys inv€ntory on 2 months cr€dit.

(jii) lt sellsgoods o a cuslomeron credit basrs.

(b)

2' (a)

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(b)

{M li transfers goods to the project department of

the lirm.

(v) It uses cash to make payment to the creditors.

mat will be the effect of the tollowing on the

receivabies ol a tirm ? Mention wheiher the

receivables ould rro€ase. decred.esor wili remain

the same,

0l Inoease n -norkerinrer€st ares

(I) The generaleconomiccondirions lacken

(iii) Increase in the production and distribution cost

(iv) A change in the credit policy ol the lirm lrom"2/10, net 30" to "3/10, net 30"

{v) Banks have staded more relaxed and flexible

billsdiscounting chem€s

"Every financial decision involves ihe trade-off

between risk and return." In the light ol ihe

statement, discuss ihe kind of kade-offs laced by a

finance manager in determining the optimal level of

current assets.

Distinguish between I(i) Hedging Financing Strategy and Aggressiv€

Financing Shategy

{ii) Funds Flolt Statemeni and Cash Ftow

Statemeiri

(iii) Money Markei and Capital Market

(iv) Liquidity of an assetand bquidity of a firm

3. (a)

(b)

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SECTION B

Note: Attempt orjy t.ro quesiions. Al l questionscorry

20 marks each.l. (a) 'Ratio

Analysis is an important tool in ensuring

eflectiv€ linancial planning. ln the light of the

statem€nt, state how Ratio Analysis is of great use to

a linance manager n maLing an effective inancial

plan fol the \ ro*ing capjtal of a tirm. lllusirate your

(b) A company hasexperienced stochastic emand or

its product. As a result, the daily cash llows also

behave andomly.The standard eviationof daily net

cash flows is Rs. 1,000. The company wishes to

make ihe transfer o{ funds from cash to marketable

securities and vice-versaas automatic as possible- It

has heard that this can be done by using some

mathematical model. The current interest rat€ is 6%

and the fixed cost associatedwith cash transfer is

Rs. 1,00, and transfersare instantaneous. ou are

required to determine the optimum control limits

assuming h€ minimum limit for cash t'alances or

the firm is Rs.2,000.

2. (a) Discuss how a finance manager takes into account

risk-rcturn trade-off considerations in each of the

following financing strategy of working capital

rcquirements of a firm :

(i) Hedging Financing Stmtegy

(ii) Corc€rvative Financing Sb-ategy

(iii) AggressiveFinancing Sirategy

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{b) Name and define four most important financial ralios

related o currentassets nd current iabiliiieswhich

a bank g€nerally considers while extending ashort-term loan for working capital purpos€s.

3. The following information has been extracted tom the

books of M/s ABC Limited :

7. Average Debtors (outstanding)

2. Raw MateYialConsumption

3. Total ProductionCosi

4. Totai Cost of Saies

5. Sales or the year 2004-05

6. Value of average tock mainiained

I Raw MateYial

I Workin Process

r Finished Goods

7. Av€rage Period of credit allowed

by the suppliers

8. Assumed number of days in a yeaY

8004,400

9,000

10,500

16,000

330350250

16 days

360daysYou are required to compute the Operating Cycle ol the

company in terms of days. Calculate the e[fect on the

operating cycl€ if the averageperiod of credit auowed by

the suppliers s extended o 30 days.

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sEcTtoNNote: Attempt any three questlons. II questions arry

20 morkseoch.4. M,/S TRY-YOUR-SELFEQUIPMENTSPVT. LID. is a

manufacturing ompanyand is producingsomehousehold

equipnrentsor housewivesn lndia. The followingdatahas

beencollected rom lbeir Arnual R€pod,2002.

Balance Sheet as on ,,, {Rs. in lokb/

31-03-200231-03,2001

Fixed Assets SeeNote A) 225 27 23154

2.7 3 0 4

CurrentsAssefs

1188 1 1166 5

Debtors 88 63 10563

Loa0s and Advances 151 .41 11238

Cash aod.Bank 30-16 17.51

Total 1686.49 1636.35

Liabilities

ShareCapital 377 373.72Reserves nd Surplus(SeeNote B) 631.16 637,69

Secured oans 10796 336.49

UnsecuredLoans 299 3.66

Current Llabilitiesand Provisions 510.83 284.79

ProposedFinal Dividend 56.55

. Total r6a6-49 1636-35

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

(Rs. in Iakh)

3103-2002Sales 9551.23

Less

Raw Materials 2757-25

Salaries& Wages 5730.5

Manufactu/ing a)td Pfoductjor Expenses 393 2Depreciaiion 52 49 B9s3 6

Gross Prolit 617.a7

Less

Administrative,elnng nd DistributiveExpenses

Interest 6.99 (163.15)

Add : Other Incomes 31.83

Prolit Before Tax 486.55

Less : Provisionfor Tax 32908

Profit After Tax 15747Appropriatiols :

63.22

fnterim Divjdend paid during the year 3 7 7

Proposed inal dividend 5655

757 4'l

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NOTES:

A. FIXED ASSETS

Net Value as on March 31, 2OO1 231 54

Add : Pr.rchases Duting the year 53.85

L€ss SalesDuring he Year

Less Depr€ciation 52.49

Net Value as on March 31, 2OO2 225-27

B. RESERVES

Net Value as on March 31, 2OOl 637.69

Add : Transfer rom Profil & LossAccounr 63.22

Add ; SharePremium 2 3 2

Less i Dividend of the previous y€ar paid during the year 72.07

Net Value as or March 31. 2OO2 631 .16

Required : Preparea Cash FIow Statement.

5. (a) At present,a comiranys followingEOQpolicy.Under

this policy, t is placing10 ordelsof 4,000 unils each

e\)eryyear at a ftle ol Rs. 100 per unit. It regtits in

Rs. 5,000 as total ordeying cost and Rs. 5,000 astotal

holding cost each year. Assume that another supplier

is willing o supplyat a rate ol Rs.95 per unii provided

the companyplac€dorderof at east10,000 unitseach

time. Sbor.:ldhe offer be acceptedby lhe company ?

Support gour answer with necessarycalculaiions.

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(b) A firm is facing stifl competiljon in the marj{et andits sales have become almost stagnant in lasi lewyeors. In older to boost sales, among many things.the marketingdepartmenthas suggest€d xtendingcredit p€riodfrom pr€sent30 days o 45 days.Theirestimatesshow that such a polica would yesult in anincreaseof 10% in sales rom the existing evel ofR'. 100 crores.

To determine whether this recommendation of

exlending 6edit periad be accepted, as a finaflcemanaget. yoLt are lequired to detetmine Lherespective ostsand the behefits or the sameand togive the recommendation.The cost of funds isestimated o be 16% p.a. and the ContributiontoSales C,/S)Ratio is 20E0.

What will be your re"omne-datron a\ rhe Firan.eManager in this regard ? Support 5rouranswer withnecessarValculations.

6. What is meani by Cross Working Capital ? How does it

differ from Net Working Capital ? X Ltd. sellsgoods at a

gross profit of 20% oI S€tljngprjce.

The followjng dara arefor ihe periodof 12 monthsendingon March 31, 2005.

Based on the following data, you are r€quired io estimaie

me reqirement ot working capital of X Ltd.

(i) A safetymarginoI 15%o f the amountestimatedwillbe maintained as a part of working capital

requirement o meet contingencies,

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(ii) Cash is to be held to the extent of 50%

ot cwrent liabilities.

There \rill be no wotk'in-ptogress.

Tax may be ignored.

Stock of raw material and finished goods

are kept at one monti's requirements

Annual Salesat 2 monthscredii R5 27,00,000

(iii)

(ia

iri)

(vii) Annual Matedal consumed

(Suppliers' redit-2months)

(viii)AnnualWagespaid n the beginningRs. 5,40,000

(ix) Anlual Manufacturingxpenses Rs 7,20,000

(These xpenses repaid one rnonth n arreors)

Rs.6 ,75 ,000

{x) AdministrativeExpenses'paid

duringihe gear

(These xpenses repaid one

(x4 Salespromotion expenses

{paidquaderly n advance)

Rs.1,80,000

month in atreors)

Rs.90 ,000

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7- Goldsand Limited has estimated the followjng lor the nexi

four quarters while determining the amouni to be arranged

for meeting the working capital requirement for coming

Particulats

I 2 3 4

Sales 7,50010,50018,00010,500

CashPayments

r ProductionCost 7,00010.000 8,000 8,500

r Selling, Administrative

and Other Costs1,000 2,000 2,900 1,600

r Purchaseof Plant and

other Fixed Assets100 r ,100 2,700 2,100

The debtors at the end of a quarter are one-third of

saies for the quarter and they pay in the next quartgr.

The openingbalanceof debtors s Rs. 3,000 lakhs.Cash

on hand in beginningof the year is Rs. 650 lakhs and

the desiredminimum balance s Rs. 500 lakhs.

Given the above infomation, you are required to

prepafe a Cash Budget for the next Jour quarters and

determine the amount the company has to borrow in

each quarter to meet its working capitalrequirement.

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8. Write short notes on any torr of ihe following :

ii)Cash Flow Forecasting.

(ii) The Baumol's M<tlel - a model to optimize cash

balancesn a firm.

(iii) Role of non-bank finance in meeting workjng capital

requirements J ndian lirms.

(iv) Post Lending Control by banks.

(v) Need for Short Term Integrated Funds Planning Jor

better utilization of a firm's resoutces

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December.2OOS

MS-42 : CAPITAL NVESTMENT ND

FINANCINGDECISIONS

Time . 3 fiours

(il Therearc t'hre€SeaiionsA, B and C in this pdper.

(iil Stidenfs lrho hoDe egist€redJot MS'42 pnor b

Julg 2004 seaestc,( shauld ctttempt any fir)e

questionslrcm Seclions A ond C.

(iii) Students who houe registered or MS-42 lor Julv

2004 semesterdnd oltenuads, should attempt ony

fiue questions ron SectionsB ond C.

(tu) AII quest ions arry equalnotks

(u) Present Volue tables uill be prouided, f asked ar'

MoximumMarks 100

(Weishtase@/o)

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l .

2.

SECTION A

What is Net PresentValue ? Hou.' is it computed ? How is

the NPV rule related to the w€alth maximisalion objective

ol the firms ? Dscuss.

What are the distinguishing featues of Preference shares ?

How has the tax facior limited the poientiality of ihese

shares as a source ol finance as compared to bonds ?

Discuss.

3. What do you und€rstand y Venturi Capital? How doesa

Veniure Capitalist Jinancean enterprise? What oiher

services re renderedbg a venturecapitalist? Explain.

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SECTION B

1. What do you und€rstand by Financial Engin€ering ?

Explain \ix importalr lacror: which are pri'rarily

responsibleor financial nnovations.Give examples.

2. (a) What is Leveraged Buyout ? Discuss its

characteristicsnd the pr€-requisitesor its succ€ss.

(b) Discusshe criteria or determiningexchange aiio of

shdres n caseol mergerol hr,,o ompanies.

3. What do you understandby Euro-CurrencyMatket ?

Describe h€ different ways n whichfinancecanbe raised

in Euro-CurrencyMarket. To what exieni have ha Indian

Corporates app€d his market? Explain.

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sEcTtoN

4. ABC Corporation plans to expahd assets by 50%. To

.finance he expansion,t is choosingbeiweena 12% debt

issue and equity shates. Its Balance Sheei and Income

Statement are shown below :

BalanceSheetas on Dec 31 2004

Liabilrties

Share

Capital

R€tainedEarnings

710k

Debentures

Rs. Assets

1.oo,oo.oooi*nd

eo,oo.ooo"'"n'

40,00,000

Rs.

1 ,20 ,00 ,000

80,00,q00

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

Income Stirtement or the year ending Dec. 31, 2004

Saks

Total Operating Cost

EBIT

Interest on Debentures

Profit before Tax

Taxes(50%o)

PAT

No. of shares

EPS (Rs.)

PE Ratio

Market Price Rs: (2.78 x 7.5)

Bs.6,00,00,000

5,40,00,000

60,00,000

4,40;000

55,60,000

27,80,000

27,80,000

10,00,000

2 7 4

7 5

20.85

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lf the Corporation finances the expansion plan of

Rs. 1 crore with debt, the rate of interest on debi will be

12%oand PE is expected to be 5 iimes. fi equtty shares

are issued,premium @ 204/omaybe

chargedand the PEwill remainunchanged.

(i) Assuming hat the EBIT is 10% of sales,calculate

the EPS at ihe sales evelol Rs. 8 crore and Rs. 10

crore underboth the linancingoptions.

(ii) As what level of EBIT. after th€ new capital is

acquired,would the EPS be the same rrespective fthe linaring plan opr€d?

(iii) Using th€ PE ratio, esiimaie he marlet price per

share lor both levels of sales and for both the

linancingplans.

5. As a linancialanalysi,you are requir€d o determine hd

weighted average cost of capital ol a company using(a) book value weights, and (b) market \,"lue weights.

The company's preent book \air€ capital structure is

Debentures Rs. 100 per debenture) Rs. 8 lakh

Pveference hares Rs.100 per share) Rs. 2 lak}l

Equity shares Rs. 10 per 5hare) Rs. 10 lakhAll these securities are iraded in the capiial markeisRecent rlcesare -

Debentures Rs.110perdebenture

Pref.shares Rs.120pershare

Equity hares Rs.22 pershare

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6.

Anticipated external financing opportuniti€s are :

(i ) Rs. 100 per debenture edeemable t par, 10 vear

maturity, 11% coupon rate, 4% llotation costs,sale

pnce Rs. 100. '

(ii) Rs. 100 preference hare ed€emable t par.

10 year maturity, 12% dividend rate, 5% flotation

costs,saleprice Rs. 100.

liii) Equi& shares - Bs. 2 per share flotation cost, sale

pnce Rs 22

In addition, divid€nd expected on the equiiy shares at th€

end of ihe year is Rs. 2 per share, &e anticipated grounh

rate in dividend is 7ol0.The firm has ihe practice of paving

all its earnings in the form ol dividends.

The corporare ax rarp is 35%.

What do you undersiand by Project Appraisal undertak€n

by financing instiiutions ? Explain the proce.lure and norms

Ioll<Ned by th€m whit€ gtanbng lerm loans Whv is

post-sanctionmonitoring n€cessary? Disctlss,

Write notes on :

(a) Scenario Analysis

(b) Suppliers' Credit

(c) Assetsecuritisation

ld) Intem;l Rate ol Relum

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8 .A Co. Ltd. is thinking of installinga computer. Decide

whether he compuier s to be purchased utright(through

1470boffowings)or to be acquiredon leaser€ntal basis.

The company is in th€ 50% tax bracket. Other data

rurcnase ot Computel

Purchaseprice Rs 20,00,000

Annual maintenance to be paid in advance)

Rs. 50,000 per year

Expected€conomlcuselul ile 6 years

D€preciation lor lax purposes)Strajght ine method

Salvage alue Rs. 2,00,000

Paymentof Loan : 6 yearend equal nstalments f

Rs.5,14,277

Leasingof Compi.rterLeas€charges to be paid n advance) Rs.4.50,000

Maintenance xpenseso be borne by lessor

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December,2OOS

MS-43 MANAGEMENT ONTROL

SYSTEMS

Time 3 hours MoximumMorks 100

(Weishtoge0aA

(i) There are three Sectians Sectian A, B ond C.

(ii) Section A is mednt Jor the students ttho hoae

registeredor MS-43 beforeJonuary 2005 i.e. upto

July 2004 semester

(iii) Section B is meonr t'or the students who haue

registered Ior MS 43 lrcm January 2005 sernester

onuords.

(iD) Attempt ong three questions Jrcm Section A

or B. Each queslian in Se.tion A ond B caftrc|

20 morks.

lu) Section C is compulsory lor ol l and caffies

40 morks.

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r. (al

2. la)

(b)

(b)

SECTION A

Distinguish bet'reen(il

ManagementControll

(ii) OperationalControl; and (iii) StrategicPlanning

and Control.

What changesmay have to be effected n order to

make a responsibility eentre meet the needs of the

decentralizedorganlzation ?

What are profit centres and why are they

established ?

Explain ihe concept of ROT as a measure of

perlormance of investmentc€ntres and discuss ts

merits and demerits-

3. (a) Distinguish behreen Fixed and Flexible budgeting.Under what conditions would the latter be more

advisable ?

(b) What broad considemtions would 9ou keep in mind

in evolving he designand systemol reporting or an

investmenicentre? Explain.

4. (a) Discuss the performance ol a host country subsidiary

as an economicentity in the conlext of Management

Contlol in multinational operat:ons.

(b) What factors is th€ MCS in a prolessional irm

supposed o monitor ? Explaineach oI these actors

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5. Explainany trrree of the following

(a) Control in Non'profit organizations

{b) Measuringand controllingperformance n an MBO

Iramework

(c) Negotiatedpriceas a method or transferpricing

(d) Controllabiliiyof expenses

(e) Inlormal management ontrol

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SECTION B

l. Explain in detail how has the Total Knowledge

Manag€ment TKM) influenced he managementcontrol

systems f modern organisations.

2 .

5 .

3.

4-

Criiicallyexamine he conceptof responsibilityentresand

explain ihe basis for delegation of auihority and

responsibility.

Explain the necessiiy o havea clear,unambigrlousand well

definedpurpose or performancem€asurement.

Explain n detail he vanous isk facedby the bank. How

can the management control systemscontain thes€ risks ?

Di'cuss.

Discuss in detail the framework of management contro!

sgstem in development organisations.

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SECTION C

6. Read he followingcasecarelullyand answer he questions

given al the end :

GRAND JEAN COMPAT.IY

The Grand Jean Company was lounded jn the

mid-19th century. The firm survived ean y€ars and the

1929 depression argelg as the result of the market

durabilib of its dominant product - blue denim jeans.Grand Jean had been a market leader with

"wash-and-wear", bell,boitom and flare jeans, and

modem casualpants.By 1989 it was one of the world's

largestclothing manufaci$ers. t oflereda wide variety ol

dress and fashion eans for both men and boys and a

complete ine of pants or women. It enjoveda reputaiionlor reasonablypriced, qualitypants. The company sold

40 million paircol pants lastyeaf.

Production

In each of the last 30 years,CrandJeansold virtually

all its production and oflen had to begin io ration itspants to buyers as early as four months prior to the close

ol the production Vear. The company ouned 25

manufacturifgplants.Tte plants'capacityv,aried, ut the

a!€rag€ ouiput was about 20,000 pajrs ol pants per

week. Wjth ib€ axceptjoh of two oi three plants thar

usually produced oniy blue-denim jeans, the plantsproducedvafous types oJ pants. The firm augmented ts

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own productioncapacityby contractingwlth independent

manufactur€rs.Currenily h€r€ were 20 such contractors

making all lines o{ Grand Jean's pants (includingbluedenlm ieans). lnst year contractors produced one third of

the total pants sold by Grand Jean.

Tom Wicks,vice president or produciion operations

(seeorganizationchad in Exhibit 1), commentedon the

firm's use oI olrisidecontractors"Th€

majority olthese

contractors have been with us for five years or more

Severalof them have servedGrand J€an efficientlyand

reliably lor over 30 years. In our €agernesso get the

pants made, we understandably link with some

independents who don't know what ihey are doing and

are forced to go oul of business alter a year or so

becausetheir costs are too high. Usualty \te can tell from

an independent'sexperi€nceand per unit contract pric€

wheth€r or not he's going io survive.

' ''Contractagreements re mad€ by me and mv staff

The c€iling or maximum price we are willing to pay for

each rype ol pants is very well establishedby now lt a

contractor mpresses s as beingboth teliableand capable

of mahng qualiiy pants, we will pay him $at c€iling. ll

\,re aren't sure, \te misht bid a little below that cei{ins lor

the lirst year or t/.ro, until the contractor ptoves himsetl "

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Due to intensedomesticand loreigncompetitlon, he

iailure rate in ihe garmeni jndustry was quite high.Hence, new enkepren€urs ften stepped n and assumed

control of exisiing acilities.

The Control System

Mr. Wicks continued | "We treat our 25 plants as

expense centres. Operations at each plant have been

examined thoroughly by industrialand cost engineets.

You know. time-and-motionstudiesand all. I'm quite

proud of the standard imes and costsw€ have in place.

We have even developedearningcurves hat tell us how

long it will takg productionof a given type of pants to

reach the standardhours allowed p€r pair alter initialstart-up or a product switchover. We know the raie at

which total production ime per pair reach€s tandard or

every basic style of pants we mak€. We use thjs

information for budgetinga plant's cost. The marketing

staff estimates he quantiiyol pantsof each ype it wants

produced each year. That information is used to dividetotal productionamong the plants. l possible,we like to

put one plant to work for a whole year on one type ol

pants.That saves iart-upand changeover osts.Sincewe

can sell all we make, we iry io keep our planis at peak

efficiency. Unfortunately, the marketing folk always

manage o complicateproductionschedules ith a lot of

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midyear changes in pani needs, so this objective is

difficultto me€t.

"The plant budgeiingbeginswith me and my staff

determiningwhat a plant's quota (in pairs of pants) for

each month shouldbe lor one year ahead of time. We

look at the plant's past performanaeand add a little to

this becausewe expect people io improve around here.

Th€se yearly budgets are updated at the end oi eachmonth in light of the previousmonih's production ll a

plant manager beats this budget figure, w€ leel he has

done a good job. If he cannotmeei the quota' his people

hav€ not been working at what th€ engineers eel is a

very reasonableevel ol speedand efticiencv Or possibly

absenteeismor worker tumover, big

droblems

in our

planis, have been excessively igh. When the quota has

not be€n ieached,we want to know why and want the

problem corrected as quickly as we can.

"Civen the number of panis that a plant actually

produces n a month, we can deteYminehe number of

standard labour hours allowed lor that month We

compare this figure against the actual labour hours to

determinehow a plant managerperformedas an expense

centre. I phone every plant manager each month io give

prompt feedback on eiiher satisfactory or unsatisfaciory

nerlormdnce.

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"We also look lor other things in evaluatinga plant

manager.Have his community elationsbe€n good ? Arehis employeeshappy ? The owners of this companyare

very conc€rnedaboul these ac-ors

An annualbonus constitutedhe core of GrandJean's

reward system. Mr. Wicks and his two chief assistants

rat€d each plant manager's performanceoh a 1to 5scale,where 5 was ihe highesirate. At yearend, Grand

Jean's top managemeni determjned a borrus oase oy

evaluating he firm's overall performance and profirs

for the Vear. The bonus base had been as high as

Rs. 10,000. The pedormance ating for each memberof

Grand Jean's managementcadre was multipliedby ihis

bonus base to determinea given manager'sbonus. For

example,a managerwiih a 3 point rating would receive

a Rs. 30,000 bonus.

Grand J€an's managemeni group included many

linance and marketing sr€cialists. The casewtjte{ noted

that these personnel, who were located at corporate

headquarters, ere consistently wardedhigher ratingsby

their supewisors than wer€ plant managers. This

diflerenceconsistently pproacheda full point

The live marketing departmenis isted in E\hibit 1

under the vice president of marketing are treated asrevenuecentres.Marketing orecasts re used o s€t sales

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unit and sales rupee iargets The performance of

marketing department managers is measuted on the basis

of meeting these targets To meet changing consurner

demand, requentchangesn productmix were necessary'

The sales force sellsall types of ieans within an assigned

territory. Their compensation onsists ol salary plus

8 percent sales commissions Commissions represent

roughlyhalf the average alesperson'sompensationThe

customersar€ retail storesand clothing dist buiors' For

marketing departmentp€rformanceassesgment!he sales

of each line of pants are assign€d o ihe r€spective

marketing department(ie, basic jeans, etc)' Marketing

department managers participated in the companys

Evaluation oI the System

Mia Packard, a recent businessschool gradllate' gave

the casewriter her opinion regarding Grand Jean's

production operaiions and its management control

procedures "Mr. Wicks is one of the nicest execurves

I ve ever met, and a very inteuigentbusinessmanBut I

reallgdon't approveof th€ sgstemhe uses o evalualehis

plant managers.On a recent plant visji as part of my

company orientation program. I accidentallydiscovered

that the plant managerwas'hoarding'some of ihe pants

produced over quoia He does this in good months to

protect himself againsi future production delicienciesThat plant managerwas really ups€t hat I stumbl€donto

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his pant siorehouse.He insisted hat other manageEdid

the same hing and beggedme not to tell Mr. Wicks. This

is odd behaviour or a company hat usuallyhas to tulnaway orders near the end of the year ! I suspect hat

most plant managersar€n't reallypushingfor maximurn

production. If they do increaseoutput, their quotas are

gojng to go up, and yet they won't receiveany immediate

monetaryrewards o compensate or the increase n their

responsibilitiesor requirements. If I were a plantmanager, wouldn want my productionexceeding uota .

until the end of the year.

''Also,Mt. Wick worked his way up the ranks of the

company.He was a very good plani managerhimselfand

feels hat everyoneshould un a plant the way he did. For

example, n Mr. Wjck's plani there were 11 workers for

every supervisor or member of the office and

administrative taff. Since then, Mr. Wicks has elevaied

this supel sion ratio of 11 | 1 to some sort of sacred

index of leadership fficiency.Al l plani managersaim lor

it, and, as a result, usually understaff their offices-

Becauseof this, we can't get timely and accuEte reports

from planis. There simply aren't enough people in the

offices out there to generate the information we

desperately eed when we need it I

"Another thing ! Some of the plantshave been bui lt

within the last five years and have much newer

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equipment. Yet ihere is no difference beh"een the

standardhours determined n these plantsand the older

ones.The oldersewingmachines reakdown more often'requiremore maintenanae, nd probablyar€n't as easy o

Exhibit I

Grand Jean Compony Organizotion chorl

Qaestions :

(a) How would you describehe goal(s) I ihe company

as a whole ? ls this, or are these. he same as the

goal(s)of the company's markeiing organization'

and the company's25 managersof marufacturing

plants? Explain.

(b) Evaluate the current management planning and

control system or the manufacturing lantsand the

marketingdepartments.What are the sirengthsand

weaknesses

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(c) One plani manager recommended that plants b€

operated as profit centres because t would overcome

some of the problems discovered by Mia Packard

and the cas€!'r'riter This plant manager commentecl

that his "competitor was the nearby independent

manufacturer that makes the same pants lor Grand

Jean as mg plant makes. And this outsider might

also make pants for Gmnd Jean's competitors.

Because of ihe compeiitive market, only the besi

managedplants survive n this business.Therefore,

like the outside company'smanager I should have

bottom line responsibihty and be rewarded

accordingly." Do you agree or disagreewith the

prolit centre concept for Grand Jean's 25

manufacturing plants ? How would this approach

aflect the plant managers'decisions,performance,

tr.,ts-a: 1 3 3.000

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December,20O5

MS-44 : SECURITY NALYSTS NDPORTFOLIO ANAGEMENT

Time : 3 hours Moxinum Marks : 100

(Weishtase 70o/a)

Note . Attembt ony Iiue questions.

equol marks. Prcsent ualue

prouided iJ osk€dtor.

AII questions carrg

tables dre to be

l. 'lnvestrnentis well designed and carefully planned

speculation." Comment. Critically examine the recent

hends in ihe Indian capiial market.

2. (al What rs l i r l rng ? Why do companiesger Lheir

shares listed on ihe stock exchange ? Explain the

pre-requisitesor the listing of shar€s n India.

MS-44 P.T.O,

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(b) Vamsi is considedng ihe purchase of a bond

currently sellingai Rs. 878 50. The bond has Jour

years to maturity, face value ol Rs. 1,000 and B%

coupon rate. The next annual interestpayment is

due after one year frcm today. The rcqvircd rate

oJ retutn is 10%0.

(t

(i,

Calculat€ the irttnsic r€lue of the bond. Sbould

Vamsi buy the bond ?

Cajculate ibe ield to )raiurjt ol the bond.

3.

4 .

Explain in detail the role played by the Securities and

Exchange Board of India in the secu ti€s market as a

regulator as well as d€veloper of the capital market.

Briefly explajn Technical Analysis and Fundamental

Analysis. What are th€ basic premises of T€chnical

Analysis ? How is ii dilferent from FLrndamentalAnalysis ?

5. {a) How is ihe Arbitrage Pricing Theory {APT)

consistent with the Capiial Asset Pricing Model

(CAPM) ?

MS-44

7/16/2019 MS- Dec 2005


6.

ib) Ganga and Yamuna are tbe tlvo Jrutual fitnds.

Ganga has a sample mean of sr-rccess f 0 14,

Lthereas Yamuna has.a sampJernean of success of0 16. Yamuna has the beia at 2 0. The b€ta ol

Ganga js one-half oJ the beia of Yamuna. The

standarddeviationsof Yamuna and Ganga are 13%

and 170.6 espectiv€ly. he mean return tor markei

index is 010, while ihe riskJree rate oI return is

6Vo.

(i) Compute the Jensen's ndo{ lor €ach of the

fl,nds.Whal doe. ,l iid,caLe

(ii) Compute the Treynor's index lor the funds and

interryet tl.€ results.Compnre the results of

Treynols and Jensen indices.

(iii) Compute the Shaqres index lor the funds and

the market.

Explain he concepi of MuilralFunds.Describehe various

tlpes of schemes introdLrced bV Mutual Funds in lndia.

Under what circumstances,can the registration of a mutual

tund b€ ierminat€d ?

Write short not€s on any to r of the following ,

la) Principleof Domlnanc€

(b) SeparationTheorem

{c) ResidualAnalysis

{d) Factor Sensitivity

ie) Aggressive iock and Delensive tock

{fl Dow theory

MS44 3,000

7/16/2019 MS- Dec 2005


7/16/2019 MS- Dec 2005




December, 2005

MS4s : INTERNATIONALINANCIAL

MANAGEMENT


(Weightose70o/o)

Note. Attempt any IiDe questions. Al l questions cotry

equal 'r'arks.

r. (a)

(b)

2. lal

{b)

In what respect have the changes in ihe global

financial markeis made the task of a finance

manager more complex ?

"Comparative cost iheory is an extension ol

comparati\,€ aduantage h€ory." Comment.

What is systematic nsk ? Can it be hedged by

intemationaldiversificatjon Explain.

Distinguish behreen euro bond issue and foreign

bond issue.

P.T.O545

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3. (a) "Centralisedcash management s a double-edged

weapon for international working capital

management."Discusswith the help.ol exampres.

Distinguish bet'r./een erms of payment and rypes or

credir.

What are the importantelementsof a currencynsK

sharingagreemenr?

Briefly discuss he principal elements of an exposur€

management in{ormation system suitable for a

Mumbai based Indian exporter.

(b)

4. (a)

(b)

5- {a) Spot and foroard exchange rates are based on

interest rate parig th€orem. Discuss with suitatte

6. (a)

examples.

Distinguish behreen accounting and economic

exposure,

Sometimes it is said that the intemational financial

system is an extension of domestic financial systems.

Do you agree ? Explain giving reasons.

D€scrib€ the innouations in the intemaiional capital

marl,€ts.

(b)

(b)

MS-45

7/16/2019 MS- Dec 2005


7. Discussn briefany tour of ih€ followingr

(a) Strategies lor portfolio investment

(b) Documentary credit and exchange controlrestrictions

(c) Lendingprogrammes l EXIM Bank

ld) Internal echniquesor exposuremanagement

{e) PPP Theonj

(f) India's BOP - Past Trends

MS45 3,000

7/16/2019 MS- Dec 2005


7/16/2019 MS- Dec 2005


MANAGEMENi PBOGBAMMETerm.End Examination

December,2O05

MS46 : MANAGEMENT

SERVtCES

Time : 3 ho:.r's

OF FINANCIAL

MoximumMarks 100

There are three SectionsA, B ond C.

Section A is compulsory lor all the students.

SectionB is meant onlg or the students,Dho hove

resisteredJor M5.46 prior to July, 2005 i.e. upto

January, 2005 semester

SectionC is neant onlgJor the students egistered

Jor M5.46 Jron Jult, 2005 semesteronu)ards.

A,l guestionscarry equol marks.

SECTION A

Attempt ony three questions.

l. Explain in bri€f the various components of the Financial

Srtt€ft in lndia. Discuss the €conomic and finanoal

frrnctionsof th€ FinaDcialma/ket.

M546 P.TO,

7/16/2019 MS- Dec 2005


3.

4 ,

What are ihe different strategi€r which could be adopted by

the financialsewices irms o manage heir Credit rGksand

Asset-Liability Gap risks ?

Elucidate the larious stages at which venture capital funds

provide finance to the venture capital undertakings and

given details of iha risks lnvoi\,€d and ihe activitjes financed

unde( each of these stages of {inancing.

ExpLain the concept o{ Muiual Flmds and disiingLrjsh

b€$'een di{Jerent t,pes of Mutual Fund producis of}ered in

lndia.

Whar is r,reanr by Assel Secunrisalion D?scribe rhe

mechanism of securitjsation and the benefits accruing to

various parties involved therein.

MS46

7/16/2019 MS- Dec 2005


6.

SECTIONB

Attempr s6y t, ,o qu?i t ions.

Explain the conceDts of Mergers and Acquisitions.

Highlight the steps thai are involved in the process of

mergerand the motjvesb€hindmergersand acqujsitions.

What is the significance f housing inanc€? Explain the

vanous institutions hat ar€ providinghousingfinance n

India.

Write short notes on any tour :

(a) Hlre Purchase

(b) Plicrngof Public s:ues

(c) DrscounL nd FindnceHouseol lndia

{d) Floafing Raie bonds

{e) National Stock Maiket System

{t Operating Lease

8 .

M5:46 PT .O.

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SECTION C

Aitempt onl turo questions.

6. Emphaszerhe role o( $e NahoDalHodsing Bank as the

apex bank in the fietd of housing {inance. cive detajls of

lhe directions s{ed by il lor hous)lg inancecompdnies.

7. Who are an lnsuranceAsent and lnsuranceB,oker' ,

Whdr dre the caiegoriesol rnsurdnc€brokpr. ? D-cus'

ih€ir functions.

E. Write shori notegon anytour r

. (a) Dematerialisation

(b) PublicLiabilitynsurance

(c) Travelnsurance

(d) Hire P\nchaseE,stem

le) Bill Market Scheme or Exporters

(t Electronlc ommerce

M546 3,000

7/16/2019 MS- Dec 2005


MANAGEMENT PBOGRAMME

(Banking and Finance)


December, 20O5

MS-422; BANK

Time : 3 houis

Note I Attempt ony fiue questions. Al l questions carry

equol morks.

'Financial

Financial

of Balance

FINANCIALMANAGEMENT

MaximumMarks 100

1. (a) Discuss the objectives and scope oI

Management'n a Bank.

lb) Di,lerenl)ale betueen'Common sire

Statement Analysjs' and'Trend Analysis'

Sheetsof Bank.

2.

3 .

Discuss he different sources rom which Banks can bo/row

lunds v,'ithin lndia.

Discuss the importanc€ of 'Cost of Funds' for a Bank.

Explain the various tates that have an impact on the cost

of tunds of a Bank.

MS422 P.T.O.

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4, Discusshesalienteafures f :

(a) CommercialPapers,and

(b) Inter-BankParticipaiionCertificates

Describe the role played by Bank in th€ foreign exchange

market. Briefly discuss the different tlpes of'For€ign

Exchange Raie Syst€ms'. Also explain th€ factors that

affect th€ foreign orchange mies.

What is 'risk managem€nt'? What are its objectiv€s?

Brieny explain the different categofies of risks thai are

relevant to Bank.

Exptain the sigoificanceo{ measudng and managtng'6edit

risk in Bank. Also discuss he basic approaches to credit

rlsk measurementt individualoan intrinsicevel.

Why are more and more Bank going for mergers hese

days ? Briefly explain the core principles for hrlue

restructuring oi weak Banks as suggested by the Verma

Group.

6.

6 .

MS-422 2,O00

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|is4zal

MANAGEMENT PROGRAMME(Banking and Finance)


December, 2OO5

MS-423: MARKETINGOF FINANCIALSERVICES

Time : 3 hours Mdximum Ma*s : 100

(Weishtose 70o/a)

Note : This poper consists ol two Sections A ond B.Attempt dny ,hree questions from Section A.

Section B is compursory. AII questions corry

equal marks.

SECTION A

l. How do consumer erception, earningand habit aftect he

setection of financial products and services ? What

implications should marketers of banking services draw

from the knowl€dge of these variables)

MS{23 P.TO

7/16/2019 MS- Dec 2005


z.

3.

4-

How can the concept of Eoduct lifecycle b€ used for th€

marketing of banking products ? Using an example from

the banking s€ctor, explain the strat€gies lor groq.th thatyoLrwould like to use n various.stagesf the pLC.

Describean9 hro ol the new.financialnstrum€nis sed or

projeci financing, explaining the main features ol the

instrlrments. Bri€l]y comment on the advantages of the

insiruments describedby you.

Discuss he investor prclile for muiual funds in India.

Describe h€ em€rging opportunities or mutuat fLrnds n

ih€ country and the marketing strategies used by them.

Write short notes on any three ol the lollowing :

(a) Marketingof Pension unds

(b) Limirariors n narketing ol insurance erurces

lc) lnternei bankng

(d) Consiiiu€nts of mutual funds

(e) Ethical issues n merchant banking services

MS-423

7/16/2019 MS- Dec 2005


SECTION B

6. Read he casegiv€nbelow and answer he questions iven

at the end of ihe case

Total Assurabce Ltd.

Raman Raghavan, the recently appointed area

manager of Total AssuranceLtd., was discussing he

matter ol area office psfemD... with his assistant,

Ganesh Moorthy. The company hail come into being

after the liberalizationot the lite insurancesector. The

companyhad r€cejved echnicalexpertise fom one ol the

l€ading nsurancecompaniesof Europe.

The compeiition wjth the esiablishedplayer Lile

Insurance Corporation (LiC) of India and oth€r new

entrants had made the task ol marketing djfficult.

Presently,Total Assurancewas not a very big player. In

the iong run, the companyne€ded o grow and achieve

d cnr'cal rhassol busrnp< n order Lo becomeand rpmdin

profjtable. The lack of substantial rov"th in ihe Indian

economydampenedby lraq crisisand power cuts had put

a lid on the grounh in the business.Raman was ne\r ln

the present ob and he was asked o provide an ov€rall

assessment J the businessprosp€cts n his area. The

General Manager felt that the agent productivityof the

area office was not up to the mark and this area needed

strength€ning.

MS423 P,T.O.

7/16/2019 MS- Dec 2005


Mr. Ganesh Moorlhy, Assisiant Area Manager.

remarked that the previous Area Manager, Mr.

Shankaran,had nev€rcarriedout the formal performance

appraisal. Mr. Shankaran elt that he was constanily n

touch with his sales force and therefore knew their

strergths and \reaknesses iDtimatelt. Consequently, the

formal appraisal would serve no purpose.

The company ielied almosl totally on 1ts agent sales

force for its salesperformance.Unlike compani€s uch as

LIC whose agents wor\ed part time, the company

believed that its agents should can! out their sales

prornol ion ork on ful l ime basisAccordingly.ls agenr-

received a substantial commission on the premium

income of the first year (average 70yo o{ the aseni's

income), a small relainer (20o/o), nd bonus for renewal of

annual insurancepolicieg such as health and personal

accident nsurance,eic. (10%). The commissionon the

premium income offered by ihe company at I4Vo ol 6'e

first year's premium was one oI ihe highestamongst he

life insurance companies. Overall, the itvetag€ total

income ol its agents was on par with the industry

aveIage. Th€ premiums charged by the company were

slightly higher by 5% compared to the industry av€rage.

This enabled the company to pay the additional

commissions o its agents,

MS,423

7/16/2019 MS- Dec 2005


The following organizational structure existed in the area

oflice of ihe compdny.

rinaice& Adninrsirati€Aaounis Manag€r

Training Senior AgBntsD.pt Agents

Trainee Agents

The Selection of Agents and Sal€spersons

In the past, the company had advertised for the position

oI the agents.The ovewhelming r€sponsehad made the

job of selectionnearly impossible.Therefore, after theinitiai recruitment, the company relied fiainly on tbe

word-of'mouth recommendationsof ihe existing agents tor

futther reduilmeDt lor both expansjor and replacement.

The company application form. in addit'on to the details

of name. address, age, heighi, w€ight, mariial status,

education, and previous emplolment details, demanded io

know aboui previous insurance selling experience, Fesent

€mplotment, curr€nt eamings,personalprop€rty d€tails,

amount of lil€ insurance, membership d€tails o{

clubs/associations, nd names and addressesof ihree

r€ferees. The candidate also had to state the reasons for

joining an insurdnce company and, in parlicular, Total

Assurance Ltd., and the reasonswhy the candidate thinkshe will be successful.

MS423 P.T.O

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Curr€nt Employment Statistlc

The present gents' gewise isiribuiion asas folloLvs

The mean age ol the ar€a ollice agentswas 27 y€ars.The

marital status of the agents is as show below :

Similarly, ihe stalisiics regardingthe peiod ol employnrent

with the company were as follows

Below I year 46va

1 to 2 yeats 28ak

Over 2 years 23a/o

[The company b€gan opeEtions only thr€e years ago.]

Ag€Group Total No. of Agents

18 to 20 5

21 to 25 26

26 30

36 1036 40 8

40+ 5

Toial 88

Marital Siatus Total

Single 55 63

Married 33 37

Toial 88 100

MS-423

7/16/2019 MS- Dec 2005


Eighty per cent of th€ as€ntshad changed he job ai

least once in the last three years (whether with thecompany ot not), and 57%o ad changed heir job more

The majority (707o) of the agentshad completed

12 standardSSC, 18yoof the ag€ntshad studjedb€yond

this l€vel with 12qoof the agentshavingan educationof

10th standardor equivalent. hey all couldspeak he local

languageand English.

Th€ S uafion at present

There was overwhelming ressureor the company o

growat a substantialate to achi€v€ he breakevenpoint.

The longer it took to achieve he br€akeven oint, hard€r

would be the long-t€rm struggle. Dudng the iniiial

meeting with the GeneralManager before aking up the

presentassignrnent,he GeneralManagerhad meniioned

the performanceof the sales orce as an area of conc€rn.

It was felt that a clear and objective measure of a

salesperson performance ,vasessential.The company

also needed o establish nd publicizehe achievements f

high eff'ciencyagentsand reward hem to motivate oiher

employees.Objectivity n the performancemeasurem€nt

vis a vis industrybenchmarkingwas aisoconsideredo be

an option. The area ot job changesand loss ol irained

agents o other upcomingcompanieswas also considered

MS-423 P.T.O

7/16/2019 MS- Dec 2005


to be an area of graveconcern.The time for putting the

house in order had arnv€d.

Questions :

(a) Are there ang slreciat !,ersonalit! characteristics

essentialor sellingof insurance

(b) Wbat, in your opinion, are th€ main impedim€nis o

the good performanc€ f th€ agents?

(c) Are there any motivational drawbacks amongst the

preseniagents?

{d) What criteria should be used for performance

evaluation?

MS{23 2,OAO

7/16/2019 MS- Dec 2005


MANAGEMENT PROGRAMME.(Banking and Finance)


December,2OO5

MS-424 INTERNATIONALANKINGMANAGEMENT

Time 3 hours Maxinum Marks , 100

Note t Attempt on9 tioe qrcstions. AIt questionscaft9

equol marks.

l .

2.

"lntemational Banks are linked iogether in various lomal

and informal ways." Dscuss this stat€ment highlighting the

different organisational forms of International Banking.

Discusshe need for'r€gulation' in IntemationalBanLjng.

Brielly explain the differeni forms oI regulation that may Lre

€stablished n lntemational Banking.

Wbat is a'Euro

issue'? Briefly explain the common clauses

that feature in a Euro issue.

3.

M5424 P.TO,

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6 .

5 .

4. Briefly eiplain the haditional activities in which corporate

treasuries are involved. What changing responsibilities is

the heasury functlon gaining with the changing times ?

Discrlss.

Explain differ€ni categories of financial and non-linancial

risks thai the bank are exposed to in Int€mational

Bankng.

Briefly explain the ongin of'Globalisation'. AIso analysethe cons€quencesol globalisation on the lndian economy

What do you mean by 'financialoption contracts' ? Briefly

explain their characteristics,benefits and disadkntages.

Write shof noteson any torr of the following

(a) Capital and Risk in a banL

(b) CAMELS Model

(c) Big Mullah Theory

(d) Exchange Earner's Foreign Cwrency Account

(e) Forex Treasury Structure

(0 Smari Card

a.

MS-424 2,000

7/16/2019 MS- Dec 2005



{Banking and Finance)


December,20O5

MS-425 ELECTRONICANKINGAND lTIN BANKS

Time : 3 hours Maximun Marks : 100

(Weightage 70o/a)

Note : Attempt anyfiDe

questions.Alt questions corry

equol morks.

l, (a) Discusshe applicationof VSAT networksystemsor

Banking.

(b) Explain h€ modelsof on ine bill presentmentnd

payment gstems.

2. (a) Explain the interactjvedecisionmal.jng process of

DSS.

(b) Discuss the archiiechre of an integraied Banling

MS-425 P.T.O.

7/16/2019 MS- Dec 2005


3. (a)

(b)

4. (a)

(b)

5. (a)

(b)

Explain he security ssues l an ATM transaction.

What is mobile banking? Explain ts status n India.

What types of technotogies are required for mobilebanking ?

Disiinguish among hosf-based computing,

neiwork based computing and cljenvseNer

computlng,

What isVirtual

banking? What are its limitations?

"Data warehousing is a business intelligence

solution." Dlscuss.

What afe virtual privaie neiworks ? What is the roLe

of virtual private nett orks in the linancial sector ?

6 . (a) Discuss the pros and cons of various biometric

securirydevices.

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

Deline computer crime. Briefly discussdiffer€nt categories

ol computer crimes, How can we prevent computer crimein modem banl.ing? Dscuss.

Discuss the importance of Customer Relationshjp

Management (CRM) in banks. Briefly explain the gieps

involved in successlulmp!€mentation of a CRM solution in

an organisation,

a.

M5425 2,000

7/16/2019 MS- Dec 2005


MS-51 OPEFATIONSESEABGH

Time 3 hours MaximumMarks 100

lwetshtase 709/0)

MANAGEMENT PROGRA.OIME


December,2OO5

li) Section A has Jiue questions corrging 20 morks

eoch. Attempt ony three.

fi , Secfion B is cotnpulsory dnd carnes 40 morks.

(iii) Graph paper uill be supplied on demond.

SECTION A

1. Discussthe historical backgrolqd ot Operations Research.

Explain Ts ignrlicancend s.ope in lvlodemMun"g"m"n,

Enumerate the limitations of O.R. 20

MS-51 P . TO .

7/16/2019 MS- Dec 2005


2. Using he graphicalm€thod, ind the maximum alue of

z = 7 x t + 7 0 x 2

subject o the constraints

x l + x 2 < 3 0 0 0 0

x2 < 12000

xr > 6000

x t z x 2

x 1 ' x 2 > 0 2 0

3. A companymanulactures product rom its two planlsP1

and Pz with a capaci& o{ 200 units and 100 unib per

month. lt supples he product o lour shopsat Sl, Sz, 53,

and 54 havinga demandof 75, 100, 100 ard 30 r$its

respectivelyper month. The profit per unlt dilfers with

shopsasgi\€n below n Rs.

Plan the productionprogrammeor ma{imlsingprofit.

4- Goodwi ManufacturingCompany s cunently purcliasing

9000 units of a product for lts annual usage. lt ispresentlgordering on€ month usageai a time. Each unit

costsRs. 20. The orderingcostper order is Rs. 15 aod

carrying cosi is 15% per annum. Find the optjmaipurchasingpolicy for the company.How much does the

companysavep€t y€ar?

MS,51

20

v1

' l 90 90 100 110

?2 50 70 130 85

20

7/16/2019 MS- Dec 2005


o)

Discussvarious stepsof Goal programmingmodel

tormulation.How doesGP help in d€cisionmaking?

Cive the chdracterisricsf Inregerprogramm'ng.

Explain he cuttingplanemeihod.

MS-51 P.T,O,

7/16/2019 MS- Dec 2005


SECTTON B ,

6. ln a bank where there is a single server, ihe affiva-l rate of

customers is 5 per hourand seffia€

tateis I

perhour,Assuming the conditions for the single channel queuing

model, find out 20

(a) The probabrlilyhat ihe serve) s idle

(b) The probability hat ihere ar? at least o customefs

in ihe system.

(c) Fxp€cted ime that a customerspends n queue.

7. (a) Find the saddle poiot in the folLowing case and also

the game ealue.

B

1 4 2 )

t to l - 2 - 3 1l t[-4 -5]

ib) Discuss Simulatioo and its applicaiion in decision

makins. Explain Monte Carlo simulation glving

examples.

1 0

10

MS-51 3,000

7/16/2019 MS- Dec 2005


MANAGEMENTPROGRAMMETerm-End Examination

December,2O05

l-l4s-5rl

MANAGEMENT

MoximumMorks 100

(Weightage70W

MS-52 : PROJECT

Time r 3 hours

(i)

(ii)

Atternptany three questionsromSection , eochcarrying20 r.'orks.

S€cttonB is compulxory ond corries40 marks.

l .

2.

SECTION A

Discuss the imporiance of Project Managemeni. Explain

Proiect Lile Cade giving examples.

"Technical Analysis is a dislinct actlvity in Prqect

Development Analysis." Explain. How are me

Envitonmental conc€rns affecting Prcject f€asibiliiy

sfudies ? 20

3. What are ihe objectives of Project Management

lnlormafion System ? Sugg€si an ifitegmted Proieci

Managemeni Inlom)afion System for a large organisation. 20

MS-52 j p.T.O.

7/16/2019 MS- Dec 2005


4 . "Projecr Implementation needs a strong teamwork.'

Explain. DiscussEmpoqrerment nd Feed-fonr,"tdproject

contlol givlnga(amples.

(a) Suggest a suilable organisation structure lor a

buildingconshuctionproject.

(b) What are the vanous computer applications in

Project Appraisal? 6ive examples.

7/16/2019 MS- Dec 2005


SECTION B

"The surcess of a project entirely depends on Detailbd

Project Report. ' Do you agree ? Give dilferent aspects that

are covered in Detailed Project Report.

The table below gives data about a project. Indirect cost is

Rs. 500,/- per day.

(l) Draw the nen ork and identib the critical path.

(ii) Find out normal project duration and associaied cost.

{iii) Crash the activities and find out optimal project

completion time and cost.

Activity

Normal Crash

Time(days)

Cost(Rs.)

Time(dayt

Cost(Rs.)

3 3000 2 4000

2 - 3 3 300 3 300

2 - 4 7 4200 5 5800

2 - 5 9 7200 7 8100

3 - 5 5 2500 4 3000

4 - 5 0 0 0 05 - 6 6 3200 4 4100

4 4000 3 4700

6 - 8 7800 10 9000

7 8 1 0 10000 9 12000

MS52 3,000

7/16/2019 MS- Dec 2005


--

7/16/2019 MS- Dec 2005


Time : 3 hours


December,20O5

MS-53 : PRODUCTION/OPERATIONS

MANAGEMENT

Moxinum Morks 100

Note t Section A has liue questions corrying 20 morks

each. Attempt any three questions lrom

Section A. Section B is compulsory and carries

40 narks.

SECTION A

f. (a) "You don't inspect qualiv into a produci, you have

to build it in." Discuss the implicationsof this

$aiement.

ib) E{plain brjefjy the major differences bet'.r,,een

aggregateplanning in manufacturing nd aggreggte

planning n sewic€s. 10+10-20

MS-53 P.T.O.

7/16/2019 MS- Dec 2005


2 . . (a )

3. (a)

(b)

Discussways to use JIT to improve an9 qne of the

following :

(i) a ho\pital

(ii) an auto dealership

(iii) a sofhr,"re dev€lopment unii

A small firm intends to increase the capacity ol a

bottleneckoperationby addinga n€w machine.Two

alternalives A and B have been identified, and th€

associated costs and revenues have been estimaied.

Annual fixed costswould be Rs. 40,000 for A, and

Rs. 30,000 for B; variablecostsper unit would be

Rs. 10 for A and Rs. 12lorB; ard revenue erunrr

would be Rs. 15 for A and Rs. 16 for B.

(i) Detemine the break-even point in uniis for

each alternative,

(it Ai what volum€ of output would the hto

altemativesyield the same profit ?

(iii) If expected annual demand is 12,000 uniis,

which aliemative would yield a higher profit ?

10+10=20

Operation personnel usuallyhave a large volume and

Eriety of resources t their command they should

endeavour to make etfective and efticient use of

these resources to achieve the largest oueurs.

Con)ment. Whai are ihe approaches or enhancing

the utilisationof resources

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.

(b) The processimes and due dates or five jobsA, B,

C, D and E are givenin the table below i

Job (Days) Due date(Daysrom now)

B

c

D

E

9

"1

5

1 1

6

20

25

40

The jobs may be sequencedaccording to any of the

following rul€s :

(j ) ShortestProcessing ime (SPT)

(ii) Earliest Due Date (EDD)For the above sei of jobs, compute the following

characteristjcs for sequencing by boih the priority

rules {sequencingrules) :

(iJ Total compleiion tjme

Iri) Avoage flow time

(jii) Average number of jobs in the system

(iv). Avemge ob lateness 1O+1O=2O

4. {a) Dscuss the djlfercnce behreen certraljsed and

decentralisedmaintenance staff. What are the reasons

Ior decentralisingthe maintenance function ?

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5.(a)

(b)

(b)

An activity has a seleci time of 4 00 minutes per

cycle and a calculatednormal time of 4 64 minutes

per cycle- Allowances are 10 pefcent.

(i ) What was the performanc€ ahng actor ol the

worker studied ?

(ii) What is ihe standard time of the actMty ?

10+10=20

What lactorswillyou

consider or locatingany o1he

followinaI

(t a thermal power plant

(ii) a call centre

(iii) a placementagency

(iv)a milk

processing lant

Assume thai your slock of sales merchandise s

mainiained based on the forecasi demand lf the

distributor'ssalespersonnelcall on the firsi day 01

each month, computeyour forecastsalesby eachol

the three methods requestedhere.

Actual

July

Aug!st

140

180

170

(i) Usrng a simp{e thre€-month mo.,ing average.

what js the forecast for September ?

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(iit

Using a weighted moving average, whai is the

forecast for September with weights of 0 20'

0 30 and 0-50 for June, July andAugusi,

resP€ctivelY?

Using single €xponential $moothing and

assuming that the Iorecast for June bad been

130, Iorecast sales for SepiemL€r with a

smoolhjngconstantalphaof 0 30. 10+10=20

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SECTION B

6. (a) Comment on the statement : "A comprany makes

bicycle yresj thus, for benchmarking,t should ookat other companiesmakingbicacl€ 9res.

(b) Item X is a standard iem stocked n a company's.

inventory of compon€nt parts. Each yea(, the firm,

on a random basis, uses about 2000 oi them X,

which cosrs Rs. 25 each. Slorag€ ,osts, wnich

include insurance andcosr of capital. amount toRs. 5 per unit of averag€ nventory.Every time an

order is placed for additional tems of X it costs

Rs. 10.

(i) Whenever it€m X is ordered, whai should the

oder sizebe ?

(ii) What is ihe annual cost for ordering it€m X ?

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

10+10=20

5x4-20, Write shortnoteson anyJiue of the following

{a) Job Enrichm€nt

(b) Iso 9000

(c) Pareto Diagrams

(d) ExtemalCustomers

(e) Robotics

(0 StratumForrnulation

(s) Wastivity

(h) Th€ lGnban System

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December,2OO5

MS-54 :MANAGEMENTNFORMATIONSYSTEMS

Time : 3 hours Moximuh Mqrks : 100

(Weishtase 70Vo)

Note 1 Attempt onV ah?ee questions frch Section A.

Eochquestion

cofiies 20 morks. Section B iscomXnlsory ond corries 40 morks.

SECTION A

l, {a) Discuss information requirements for decisionmaking,gMng examples.

(b) "Manageoent Information Systemsplay a vttal rolein organisational uccess. Explain.

2. {a) What is a sgstem? Give various classifications fsystems.Explaln he proc€ssof SysiemsAnalysis.

(b) Discuss,ariousstagesof th€ sysiemdevelopmentif€

cyde. Give the leatDres l system fip)enentabor|

1 0

10

1 0

1 0

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3. (a)

(b)

4. (a)

(b)

Discussdifferent types of el€ctronic signals and their

applications. What is a Muhiplexer ?

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

Discuss Query languages. Gving an examPle,

suggesthe useof SELECTcommand.

Explain how computershave chanqed ihe Indian

work culiure.Give one example.

1 0

1 0

1 0

1 0

5. Write noteson anytoi.r :

(a) Expert Systems

{b) Computer irus

(c) Legal aspeclsand Computers

(d) RelationalData BaseManagement yst€rns

(e) DalaCommunications

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SECTION B

6, Read the caseshrdygiven below and answer the questions

given at the end of the case.

A iransport compang, having 120 vehicles provides

prjvate car iaxi, carriers and buses on hir€ basis. The

major activiiiesof the company nclude

(i) Monitoringof vehicles ngaged,

(ii) Booking of vehicles or tr ips,

(iii) D€ciding he route of vehicles,

(ivl Reimbursemenro drivers.

(v) Tesling dnd maintenanceof vehiclesbe{ore each

mp,

(vi) Billing of cli€nts,

(vii) Analysis of damag€s caused, and

(viii) Analysis of driver's performance, though this is ihe

most neglectedtask.

The owner ol the company has recently ied up with

a manufacturlng company to provide trucks for dispatch

oI goods.The client companyhas a very strictmonitoring

systemot dispatch.Any delay n reaching he destination

will imply a penaltyat the rate oI Rs. 300 per day. Also,'

the transportercan enjoy a rewardof Rs. 300 if its truck

reachesbelore time. A hsi of all possibledestinations f

th€ client-product has been given to the transporter along

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with the target transfer durations.Now the owner has to

carefullyplan oui his informationsystem.He has enough

money to spend on MIS analysisand itnplementationofthe proposedsolution,but doesnot know how to manage

his time for mahng new sb-aiegies.

Questions ;

(a) Ideniily the informationrequirements f the owner

of the transport ompany.

(b) How can you help him rn managing is iime for

rnakingnew strategies

{c) Design a suiiable vehicle booking information

slrstem-

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MANAGEMENT PROGRAMMETerm-End Exahination

December,2OO5

Ms-55 : LOGISTICS ND SUPPLYCHAINMANAGEMENT

Time : 3 hours Moimum Marks 700

(i ) Section A hos six quesrions eoch corrging

20 marks' Attempt ony fout questions.

Section B is compulsory, and corries20 morks.

SECTION A

l. Whai ar€ the primary responsibilitiesof the logistics and

markeiing groups within an organization ? Why is there a

conflict bet een the tl',o ? What measurescan be taken toenhancecooperation?

2. Whai are th€ reasons or ',ariabilig n the supply chain ?

What is the Bullwhip eflect ? Explain the various

approacheso reduce his effect n SCM.

lii)

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3. Give major inpuis of MRP. Id€ntify the sourcesmrougn

which these npuisare obtained.Giveyour answer or boih

Make o'Stock (Make to Forecast) and Make-to'Order

siluation.

What s CuctorerProl i rabrl i rynalysis WnVhas rqar-€d

importanc€ in recent iimes ? Is ii eihical to d€ny a

custom€r hat is not profitable?

5. Explain the procedLrre f transport and carrier selection.Why is it carried out .and what are its major

characteristics

6. With more medical information availableonline than a

humdn mind can a,isrmilate, ow will l|e roie of docrors

change n deliveryhealthcare ervices ln other words,can

we conclude that with information freely available on ihe

lnlerner, he demald ior consulanrswill reduce?

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SECTION B

7. Read h€ followingcaseand answ€r he questions ivenat

Supply Cbain Successes - Dell Computers

Dell is a pf€mier provid€r of products and services

required for customers worldwide to build their

informaiiontechnology and internet infrastructures.

Company revenue or one year is in billionsof dollars.

Dell, through its direct business model, designs,

manulacturesand customizesproducts and services o

customer requirements, nd offers an extensivesejection

of sofiwar€ and peripherals.Michael Dell stafted D€ll in

1984 v.,ith$1,000. He startedwiih an €xcepiional dea

in the computerndusiry ; SELL COMPUTERSYSTEMS

DIRECTLY TO CUSTOMERS hrough mail order. Dell

transfigured he PC market through iis ass€mble-to-order

strategy.The caich was that while rivalswere stockinga

large inventory,Dell carriedonly a smalj one. While th€

rivals. were paying to distributors and retailers, Dell

uncler-pricedts computerby aboui 10% as compared othem. In order to support their DIRECT SALES

APPROACH and aggressive inventory management

strategy, Dell has pui together a sophisticatedsupply

chain net'work. The advantageso{ Dell's dir€ct sal€s

model have been forceful since ihe late 1980s, and

indisputabl€ ince he growlh of the Web. The uniqueness

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about Dell op€rations is that th€ customer orders moved

through the w;b i.e. cusiomer could configure cost,

con{'rgure specifications and order lrom the web. li us€sJusi-in-Timemanufacturing.e. componentsand parts are

scheduled to arrive at a time when they are actually

n€eded(as soon as order is finalized). t has located ts

componentswarehouses t n€arby locationsso that the

parts are obtained in no time and are the latesi in

configuration.The testing ol computers s done through

a collaborahvenehrrork hus reducing the iime need€d.

Ddl uses nternet to create a communltyalong fs supply

chain. Dell was successlul ecauset createdan IT based

manufacturing system along the eniire supply chain As

part of the company's continual elforts to improve its

supply chain processes, Dell recently deployed i2@

TradeMatrixfl supply chain tools to ptovide global views

of forecasted product demand and mat€rials requir€ments,

as well as improved factory scheduling and inventory'

management. Wi$ the new supply chain iools, Dell

suppliers and Supply Logistic Centers (SLCS), have a

globalview of short and long'term materials equirements

in each Dell factory. One of ihe primary goals {or th€ i2

implementation was optimizing delivery and inventoly us€

in Dell factories. Dell is known lot its leadershipand

innovation in supply chain management and the i2

soLrtion s driving even greaterefficiency.

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Queslions :

(a) You might remember the site buildurpc.com by

Samsung, which also used Direct-salesmodel forassemblingomputers. This initiative ailed.What do

you think are the reasons lor its failure ? Comment

on why Dell succeeded-

lb) What are the primary goalsof Dell lor using T along

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December.2OO5

MS-56 : MATERIALSMANAGEMENT

Time: 3 hours Maximum Marks : 100(Weishtsge70o/a)

Note : There ore ejght questions

any f iuequest ions. Al l

in this poper. Attempt

quest ionscarry equal

1. It the responsibility or maintainingthe quality of theproduct and incurring less cost on its production is ihe

responsibility of the "produciion/operation" and deciding

the plice of ihe product and finding the customers that will

buy it comesunder "marketing",what do€s he'materials

managemeni function" do ?

2. What is the need for International Purchase ? Discussthe

procedwe and problems n lnteynational urchase.

3. Differentiaiebehreen ndependent nd depend€ntdemand

inventory. D€pendent demand inv€ntory items do not need

to be forecast. Why not ? ExDlain with the help of

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

bottlenecks-"Commenl on this staiement.Also, staie the

reasons for your agr€ement/disagreement.

Wbat are the objectivesof codification, standardizationand

simplilication ? How does standardizaUon€ad to variely

reduction ? Discuss the advantages and disadvantagesof

siandardization.

Explain how a performance appraisal system can be

used in the context of matends management. Whal are

the metrics of perlormance appmisal in materials

managem€nt ?

Wnte shon noLes n any tour ol the following :

(a) lntegratedMat€rialsManagement

(b) Problemsand risks n vendor neMorking

(c) ManufacturingResources lanning MRPIl)

(d) Use of OR techniquesn MaterialsManagement

(e) Lo"'es due to shrinkage>,/pilferages

(0 Theory ol the"rper-o.gunization

6.

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List the maior advantages and shortcomings of FIFO,

LIFO, and Average meihods oI stores eyaluation. Under

what conditions are the three inventori€s flow methods

€ssentiallyequivalent?

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December,2005

MS.57 : MAINTENANCEMANAGEMENT

Tme : 3 hours Moxinum Morks : 10ONote : Thjs question poper containsseuen questions.Al l

questions corry equol marks. Attempt ony fiuequestrons,

l. What do you mean by maintenanceplanning ? What

consid€rations are important in planning to avoidhindrancesn scheduling What are the basicprinciplesof

maintenance lanning?

2. What are the important componentsot a maintenance

organization? What are the goals and objectivesof a

majntenaDceorganization ? Name tbe key jssuesaffecting

the maintenance rganization truciure.

3. Discusshe role of mainienance €chniquesor safetyand

environmental improvem€nts. How could the

commLmicationbehreen maintenance and other funciions

be enhanced ? What types of training techniquesare

availableor preparingmaint€nance

ersonnel o€nhancesaf€ty and environmental performance ?

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4- Explajn the significanceoi a three parameter Weibull

model. Explain how the Weibullmodel is used or faillrre

diagnosisby briefly discussing he relationship bet een theshape payameterI and ihe undedying cause{s)ol recurrent

failure.

"Plant shutdowns lor equipment overhauls need to be

adequately lanned."Why ? What will happen l this s not

don€ ? What are the various teps n planningmainienance

shutdowns

Explain he basisof identifyingand analyzinga problem,

while making use of wear debris monitoring technique.

Nam€ some of the instrumentsus€d for wear d€bris

monitoring.

Wrire shon noieson any our al Lhe ollowing .

la) Benefitsof plann€dmaintenance

lb) Benefitsof IT EnabledMaintenanc€

(c) Reliability

(d) Log normal Distribution

5 .

6.

(e) Misconcepiions about

MaintenanceRCM)

Reliability Centercd

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December,2OO5

MS-58: MANAGEMENTOF R&D ANDINNOVATION

Time 3 hours MaximumMorks 100

(Weishtoee0Vd

Note ' Attehpt olt questions.Al l questionscarry equol

l. Comm€nt on the dual roles that R&D performs in an

organizatioh. Explain with examples based on your

experience,/study.

OR

What is the interactionbetu,eenscience, echnologyand

business? .How do these interactions affect industriat

grodh ? Dscusswiih suitableexampbs.

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2. Why arc m€asurementnd evduation mportant n R&D ?

Why are quantitativemethods nad€quate or measuring

R&D output ?

OR

Dscuss the four dimensions of human resource

management racticeshat foster nno\Dtionand creativity

tor ellective R&D.

3. Discuss he significanc€ol teamwork tn researchand

development-What is the cross'functionalcore t€amconcept? Aiso discusshe l€ssonr hat ca! be learnt from

the US companies n adopting the cross{unctional eam

approach n productdevelopm€nt-

OR

What is your concept of the leaming organlzationand

how is such an organization ifferent roma conventlonalorganization? Why is there so much emphasison this

new concept ? What systemsand mechanisms, o you

think should € put in placeto tum tbe organizationnto

a leamingorganization?

4. In the context of national R&D infrastrucfure and

institutlonal ramework,write noteson the following :

{a) Departm€ntof Space DOS)

(b) IndianCouncil f Asricultural esearchICAR)

(c) Departrneni f ElectronicsDOE)

{d) IndianCouncil f MedicalResearchICMR)

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Discuss he salient eaturesof the incentivesand support

measures provided by ihe following countries forpromoiion of R&D technolog development

(a) Japan

(b) UnitedKingdom

5. Ans.rer the tollowingquestions

(a) D€scribehe fiansfermechanism f iechnology rom

laboratory o industry.

(b) What are the common types of intellectualpropeity ? Explain th€ importance of pat€nis in

R&D management.

OR

What are Palents and Paientabiliiy ? Highlight som€

importantfeaturesof patentsand the procedureor award

of patents.

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December, 2OO5

MS-61 CoNSUMER EHAVIOUR

Time : 3 hours MoximumMorks 100(weishtase 0o/o)

t .

Not€ : This poper consisfs oJ tt\)o Sections A and B.

Attempt any three questions from Section A.

Section B is compulsory. All questions ca 9

equol morks.

SECTION A

What are th€ different approaches to the study of

consurner lifes9les ? How can an AIO Lifestyle study be

applied to the marketing of

(a) Perrumes

(b) Readymade pparel

Explain the concept of consumer involvem€nt and how it

influences con$mler decision process. What are the

strategieshat a marketercan use to increaseconsumer

involv€ment for a low involvemeni product like common

sali or a tooihbrush ?

2.

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3. What are the different !,es ol rclercnce groups ttEtinflu€nceconsumer ecisions Brieflydescnbehe type ofsocjalpower that referencegroupsmay exert on buying

behaviour? What is the tlrp€of reference roup inlluencethat a marketerof a home heatregstem canexpect?

4, (a) What do !,ou understand by post pulcttase

dlssonance, ? How is this concept relevant to

marketers

(b) How would you seek to reduce post purchase

dissonance n case of an €xpensiveproduct likepersonalcomputers?

5. Write short notes on any trrr€e of the following :

(a) Choice heuristics

{b)Leaming and perceptual constructs in Howard

ShethModel

_(c) Freud's theory of personality

(dl lnftuence of the child in family decislon making

(e) Al t i tudemeasuremenr

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SECTION B

6. Read the case study given below and answer the questions

giv€n at the end of the case.Flnancial Services Market Opportunities

Until recenily the female investor market was largely

ignored and was not iargeted as an important market

oppodunity. Consumer analysis of the female investor

market uncovered a variety of dilferences wiih respect io

needs, demographics,if€styles, ncome, and awarenessand knowledge ol investment altematives. Other

differences, uchas media habits,pointedout the fact that

there is tremendous diversity among this group of

investors. A quantitative analysis of this information

uncover€d he existenceof three market segments,each

mique in terms of needs for financial s€rvices.

demographics, consumer lif€style, awar€ness andknowledge of financial services,and media habiis.

Each of these female investor segments represents a

unique market opportunity. To design an effective

marketing straiegy for any or all of th€se segments, it is

first necessaryto understand the unique aspects of each

female investor segment.The Car€er Woman

This segment of th€ female investor mark€t is the smallest

but is growing rapidly. These investors are younger (30 to

40 years old), college educated, and active9 pursuing a

career- Their incom€s are high relati\r€ to incom€s of

other working women and growing as they progress in

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their careers. This group includes single and maniedfemales, but the majority did not have children living intheir households.

While their demographics re unique, €qually mportantdifferences exist in ih€ir needs for financiat services.Women in this segment have higher jncomes and pay

considerableiaxes becausethey ar€ single or, iI manied,have hro sourcesof income. As a result their needs focus

on ways to increase their financial holdings wifhout

incurring additional tax obligations. Also, becausethey donot need curr€nt income, they have a greater need forlong-term capital appreciation rather than current 'nrer€st

or dividend ncome.

The Sinsle Parent

This segment is the second largest in size and also

growing- These lemale investorsare middle aged (35 to45 years old), unmanied, but hav€ children lMng at home.Their single-parent staius could be the result of divorce ordeath of a spouse. Because th€s€ ev€nts tend to happenmore often at middle age, this particular female investor isolten thnrst into managing mon€y withoui much

experience, Cu[€nt income is general]y under prcssure

and money aftairs have to be carefutty budgeted.

For this segment, securiiy is first. With parental

responsibili\' and limited income, they want to make suretheir money will be there in ihe future. As a result, heypreter inveshnents that offer secure groMh. Thisinvestment will be a source of income later in life andlor

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used lor their children's education. In €ither case ih€s€

consumers do not w€nt to risk their fuftlles.

The Old€r lnvestorThis segment is the largesi of the female market for

. financial sewices. These female investorsare older (55 and

up) and iypicaly single. Unlike the "Single Parell1, these

female inv€stors do not have children at home and often

have more discretionary income. Also, many of th€se

investors have considerable knowledge and €xperi€nc€

with th€ many financial altematives that exist.

A need for current income mak€s this segm€nt of female

investors differ€nt from the oth€r two segments. In many

instances, these women support themselvesfrom int€rest

and dividends on their investments, Because investrnents

are often their sole sourceof income, they seek safety and

minimum risk in the investment they hold. Thus, their

ideal investment portfolio woLrld nclude a varie9 of secur€

invesimentshat yield good current ncom€.

While many dilferenc€s exist among the many female

investors, these thr€e female investor segments capture

important diflerences in basic needs, demographics, and

Iifestyle as summarized in Figure A. Based on these

diff€rences, individualized marketing strategies could be

developed for each segment. The degrce to which such

strategies will succeed w'll depend on how well each

strategy saiislied the specific needs of each segment in

terms of bolh product offerings and market

communlcations,

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FIGURE A

Summary of F€male Investor Segm€$tatlon

Queslions :

(a) How well have the needs of the respec.Ne segmen$

been understood in the above study ?

Based on the lifestyle and demogmphics of ihe

abov€ segments, what kind of marketing sirategy

would you sugg€st for the produci design and

promotion Iot an investment and financial services

Which, in your view, is the mosi attractive market

segment out of ihree for the above company and

whv ?

Segmenl Bosic Needs KevDemogrophics

CareerTax

lons termgrowln

Limited

to average

Educated,

working at

25 and 40

Single

Security,

future None olimited

Unmarriedwith

behreen 35and 55

OlderCurrent Limited

toTypically sinsle,55 and older

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December,2OO5

MS.62 : SALESMANAGEMENT

Time 3 hours Maximum Marks: 100

(Weishtase 70o/d

Not€ : This pop€r consisrs ol t'uo Sectiors A dnd B.Attempt dny three questjons Jrcm Section A

Section B is compulsory. Al l questions carrg

equol marks.

SECTION A

1. Djscussihe role and sjgnificanceof pe$onal Selling jn the

MarketingExchangeProcess y taking he exampleof

(i) lnsuranceAg€nt

(ii) M€dicalRepresentative

(iii) IT sofhrare

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2. What are the objeciiv€sof sales displays ? How can these

obj€ctives be met when a compang is launching :

(i) A ne!.r model o{ a car

(ii) New range of high fashionapparel

(iii) lndustrialmachines

Briefly explain he various ypesol sales epods which are

beinggenerated y tlre fieldsalesstaff.Also emphasize n

their utility.

4. (a) Briefly explain ihe steps involved in territory

planning.

(b) How will you plan ter;itory allocations for

(i) Consumable roducts ike solt drinks

(ii) Indusfial machine, where the salespersonnei

do not cary the product and salesare achieved

through sales iterature, eafl€is.etc.

3.

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SECTION B

5. Carefuuy ead the followingcaseand answer he questions

given at the end o{ the case I

Goran Landis s the salesmanager or an established

plastic manufactufer. The sales {orce is oLder,

expenenced, oyal, produdive, and highly resistant to

technology.An earliereflort to get sales €presentatives

to use computers, {axes, and voice mail failed miserably.

The company wants to emphasizeselhng, hold down

salescosts,attract high performingsalespeopie nd weed

oti )ow p€rtormers.Landishas discover€d is sales orc€

is only spending about 20% oI iis ilme in Iac€-tojace

selling beiause the sales repr€sentatives p€nd most ot

their time compleiing paperwork related to the orders,

customers lorgetting appoiniments and having toreschedule, nd following up on deliveries.

Once Landis finish€d evaluating he saLesorce as a

whole, he besan to look at the performanceof individual

salesppople Supriyd Satporhy r. one ol rhe olde' sale'

representatjvesoI the company and has

thelongest

tenure, having started when th€ owner began ihe

company tweniy years ago. She has balanceda career

and raising live children.Given on page 4 is the sales

data on Satpathy's accounts for the last threiu y€ars. For

base line comparisons, he company's averagesare on

the lar right.

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^ r - a ix x = ^ N r +; ; c . ; N

; S R - * c . i d j

9 l o d

8 8d j ' j

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Questtons .

(a) Landis s concern€dabout he amount of time sales

representativesspend on paperwork, Given thecircumstances I the problemand ihe nature of the

sales orce, whai wouldbe the b€st solution?

{b) Which oI the following would work best in

motivating Satpathy ?

(c) Satpathy'ssalesdata shows hai she may be getting

her sales gains by sacrificingone of the productlines. Should Satpathy spend too much time with

low profit custom€rs Recommend o her what she

shoulddo for cusiomermanagement.

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December, 2O05

MS-63: PRODUCTMANAGEMENT


(weishtase 0Ed

Note : This pqper consists of tw:o SectionsA and B

Attempt dny three quest ians rom Sect ion A

Section B is comp sory' Al l questions 'orrv

equal morks.

SECTION A

l. Briel.y explain the .d.h quadranL pproach to prodr'rcL

poftfolio management.Explainhow you would applv this

approach to manage he productportfolio of an.FMCG

company dealing in personal hygien€ and detergent

2. What dre the key consideraiionsn designing positioning

strategy or a product? Describe he alt€rnative asesoI

positioning hat you can apply or a smallcar for the lndian

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3. As a product manager,you have receivedabout five newproduct id€as n your processedFoodsdivision.Whai are

the processeshai can be used o scr€en hese d€asandseleci h€ bestone ? Which processwouldyou like to use

4. (a) Comment upon the signilicanceof branding lorconsumerproducts n today,scompetitivemarketingenvrronment.

{b) For a new brand of shavingcr€am 10 be introducedby your company,explain he brano name setecrionprocess hat can be followed.

5. (a) What are the

developmeni?

major bottlenecks n new product

ru, wrar rne hetnot approtr iate \dmple..expla,a hereasons or product ajlures.

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SECTION B

6. Read he casegivenbelow and answer he questions iven

ai ihe €nd oJ the case.

.Komal Food Products Comp?rnyLtd.

Komdl j-ood Produ.ts .orn"ny whnh wa, found"d in

1935 to manufaciure roceryand other food producishad

in thp,ourspof yea-.g ow^ r_o d \d.r enlerpn,p a,.rng

offices and branchei in almost all ihe important citiesofIndia.

The company's head office and laciory were situated n

Calcutta. ts productswere distributedhrough five zonal

sales offices which directed25 district salesoffices The

administmtive €sponsibility f each zonal officewas bome

by a managerwhose duty was 10 promote saies n his

?one He wa' advivd and in*truc_ed y he head o'frce

irom time to time.

Urdelhe con orol each ondlmandqprnerewere our

functional heads, viz., personnel manager, accounts

manager. sales manager and office manager. These

executivesadvised and assisied he zonal manag€r on

!,?rious unctions elating o the zonal administraiion. ach

. functional head 6njoyed considerable freedom and

rndpppndpncerlh respecro h' : work

On m6tters relating o sal€s he zonal manager received

advic€ from the sales manager. The latier formulated

polici€s,plannedschedulesor sal€soperaiions,suggested

improvements in district sales administration; andsubmittedhis views on all the mattersconcerning al€s o

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the zonal manager. Ai times he issued.orders and

instructions o the district salesmanager but these were

typically outed through the zonal manager.Ofdinarily hisvie\rs and advice were acc€pted and approved by the

'Thesales manager w?s assisLedr his *ork by rnree

product managers who were consid€red to be experts in

their resp€ctive ields. Their duty was to travel with the

sales supervisorsof the various districis and study and

market or ihe company'sproducts; urvey he comp€iitive

position of the company's productsi study dealer and

consum€r reactions.sales rends, and advise he disirict

sales manager and ihe sales supeMsors regarding the

steps o be taken Ior promotingsales n the distr icts.Every

month each submitteda report on the salesactivitiesof

the company io the sales manager. The relationshipbeiween the product managerand ihe sales manager s

the same as thai beiween the zonal manager and also

Also direcilg responsibleto the zonal manager wer€ five

distnci sales managers each of whom was responsible for

sales in his terrjtory. Each district manager was in turn

assisted y five salAs uperuisors esid€s everal alesmen.

The dutie. and funcrion> f district salesTanagerqwere

t o :

select, rain and supervisehis salessupervisorand

salesmen ollowing ihe policiesand proc€drrresaid

down by the zonalmanager

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(ii) make a study of the nature of consumerdemand.

changing market conditions, exisiing stock and to

lormulatesal€scampaigns, romotionalmeihods

(iii) Iix th€ sales arg€ts to be attain€d n his territory

lrom time to time

liv) formulate ihe credii policies to be followed after

consullation with the zonal manager

(v) developbetter eamworkamong he salessupervisors

. and salesmen

(vi) see that the customerswere satisfied with ih€

company'sservices

(vii) undertakesuch other funciionsand duties as mighi

be assigned o hjm from iime to time by the zonal

manager.

Every monih each district sales manager submitted a

derailed epon on rhp 1alpsdc-j$tre, ol Lhp comndny rn

his district o the zonalmanager.Ordinarily hese r€ports

were passedon to the salesmanager or ihe necessary

action to be taken with respect io each district

On th€ mornjns ol June 6. 1991, the following

conversation ook place over phone betwe€n Mr. Rajan,

the salesmanager at ihe South Zonal Ofii.e and Mr

Shankar.one o( rhe oi-',c1 m"ndgerc n thp zone

Shankar : I wish to bring to your notice an important

matter that needsyour urgentconsideration....Theroducl

managersare interfering oo much with ihe salesactjvities

of my district. I receive frequent complaints from the

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supervisors that they are not able to carry out my

instructionsdue to unnecessarynierference rom ihese

p€ople. lJ this state ol aifairs continues t will be v€ry

difficuli to maintain our sales. Tbe morale of ihe

supervisorswill be seriouslgaffected. I will noi be

responsible f sales drop this iime in our area on this

account. You must take some steps to se€ that th€

relationshipbehteen the line and staff is mainta'nedon

good terms.

Rajan i Mr. Shankar,you neednot worry' I shall call the

product managersand see that they maintainthe proper

relaiionshipwith you....

Next day Mr. Rajan calledall the product managersand.

after discussingouiine matters,he said, .... I was told by

Mr. Shankar hathis sal€s upervisorsre complajninghai

you a.re nterferingwiih thelr activities ..... Defilliielyyou

are all €xpecied o advise hem on ihe steps o be tak€n

for increasing sal€s. But, at th€ same time, please

remember that you have to play only an advisory ol€

Whileadvising hesepeopleyou must aisosee hat the line

ur11.o"1y5 a.pecred..-

The productmanagers id not say anything.

In the subsequentmonths Mt. Rajan did noi receiveany

complaint rom the districtoffice.But in the first week ol

Ociober, while scrutinisinghe salesprogress eport of the

various districis for the previotls quarter, the zonal

manager ound an unusualdecline n sales n the district

which was under the supervision I Mr. Shankar'

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The zonalmanagercalledMr. Shankarand askedhim whythere was so much decline n sales n his ierritorywhile allthe other districtsshowedvery good progress.

Shankar .... during the past three months the producimanagers avenot advised ur men properly. n fact, heydid irot advise he supervisors f the recentchangesandirends in the mafket. They seem to be unwilling tocooperaiewith our salesforce. Whai can I do ? Even

then, we have done our best o mainiainsales....,,

Whpn",ked

abour rnr, bv the zo-a mdnageron" of rheproductmanagers aid,".... We used o giveadvice o thisd:trnr ol fnp a..o a1 ue u.U"l ]ydo wiLh othe, dr\ tncroffices.On a complaini.seems rom Mr. Shankar.we ha.lbeen told by Mr. Rajan that we ,nere exceedingour

authorityand unnecessarilynterferjngwith the activities ithis district.We had been ask€d o restrarnourseNes ..The district manager akesadvicedirectly from the zonalsalesmanager.We havegot nothing o do in this matter

Questions '

(i) How has the conflict siruation berween proouc!manag€rsand salespefsonnelarisen

(ii) What reorganisationof responsibiliiies r producl

managers would you suggest to avolo sucn asituation n future?

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December, 2OO5

MS-6,I : INTERNATIONAL ARKET,NG


(Weightage70o/o)

Irot€ j This paper consistsof tuo Sections A and B.

Attempt any three questions Jron Section A.

Section B is compulsory. All questions carryequal morks.

SECTION A

l. (a) "The EPRG framework has implicai ions for the

snategy ormula'ion process. E\pldin with the helpof examples.

(b) Briefly explain the techniques of intemational

marketing research. How do€s the Internet affect

international marketing research ?

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2. "The world is becoming more and more mono cultural.

Today you can get Japanesenoodles n the U.S. and

I4cDon"ld. bursersn India.CulLurdlactor! are simplynotas imponanr as Ihey were earlier. Do you dgree or

disagree Disclrsswith the help of suitable xamples.

3. (a) What is the elfect ol'terms

ol delivery'on the price

to be quoted by an export€f ? Explain giving an

example,

(b) Do you ihink making complexexercisesor product

adapiation or dilferent markeis s worth it ? D'scuss

givingsuitableexamples.

4. Write short noies on any ,hr€e of ihe following I

(a) Bill of Lading

(b) Deemedexports

(c) Intemationalmarketingcontrol

(A) Containerizaiion

(€) Intemationalmarketsegmentation

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SECTION B

5. You are th€ marketing executive n a food processing

company producing fruit juices and frozen vegetables. The

company is exploring ihe possibilities o enter' the

intemational markets. The management has asked you to

preparea prelimrnarypporl covenng

(a) Advantages and challenges or the company in

entering he internationalmarketsi

(b) Different modes of entering intemational markets

and potentjal djlficDlfies jnvolved with each optionr

(c) Physicaldistributionmplications.

Prepare your repod covering the above aspects, for any

speci{icgeosraphiceg'on

(likeMiddle-East).

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MANAGEMENT PROGRAMME. Term-End Examination

December.2OOS

MS-65: MARKETINGOF SERVICES

Time, 3 hours MaximumMarks 100(Weightage70Vd

Note : This poper consistsof three SectionsA, B ond C.

Section A is to be dttempted by students

rcgistercd lor this course t'or Julg 2004/Januarg

2005/July 2005 semesters.Section B is to be

attempted b9 students rcgisteredJor this course

for Jonuory 2004 semester. Section C is to be

attempted bV all the students. Al l questionscorry

equol rnorks.

SECTION A

Attempt anv three questions.

l. (a) What are ihe larious modes of se^rce d€livery in

intemational trade ? Discuss with the help ot

examples.

(b) How is information search behaviour difler€ni in

case of servic€s as compared to goods ? Explain

givingsuitable€xamples.

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3.

2. (a) Why do customers switch service providers ? Can

you do anything as a marketer to prevent the

custoqrers: rom $ritching ?

(b) Briefly explain ihe charact€risticsof a good seruice

guarantee.Formulaiea seNiceguarantee or a fixed

Iandljne elecomserviceprovider.

(a) Discuss the importance of non-nDnetary costs in

pricing decisions or services aking the example of

health services.

(b) ldenti{V and explain the product suppoit seNices

which automobilemanufacturersan offer to remain

competilve/for gainrngcompeiitiveadvantage.

Write short noies on any tiree of the followmg :

(a) Reasons or groMh of the service €ctor

b) Franchising

(c) Measurem€nt f SeMce Quality

{d) Channels of distribution for bank

(e) Classiflcation schemes or services

4.

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6.

SECTION B

Attempt any ahree questions.

What do you understand by internal marketing ? Why*rs

the concept specially relevantto services? How would you,

1fyou werc in the callcentre business,manage the inteanal

marketing for your seNices ?

In case of financial markets, where core benefits ihat most

institutions offer are virtrnlly ideniical and the scope to usepricaas a Comp€titiveool is limited,productdifferentiation

is a daunting chauenge.Do you agree ? Support your

anst,r€r by drawing upon exampjes of product

differ€niiations in fihancial markets from the Indian scene-

7. (a) What changesdo you think havebeen brought about

in the Indian healthcareservicesmark€t with ihe

emergenceoI corporatehospitals?

(bl Whai a'e Ihe lactorsgoverning he demand or thp

tourism product ? Crtticaiiy comment upon these

factors n the context ol India as a tourismproduct.

8. Write short notes on any three of the following

(a) M€aluringcustomerexpectations

(b) Classilication chemes or servicej

(c) Promotional strategiesfor education services

(d) Electricitypricing

(e) Reasons or grourth of the service sector

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sEcTloNc

9. Study the casegiven below and ansvrer he questions given

at the end.

Pr€mter Courier Ltd.

'PremierCouder Ltd. (PCL) is an inno',ative ovemight

delivery company ihat helped change the way companies

do busin€ss. It was the first company to offer an

overnighi delivery system, bui the company mark€ts morethan just a delivery s€rvic€. What PCL r€ally sells is

on-time reliability. The company marLets risk reduction

and provides lhe confidence that people shipp:ng

packages will b€ "Absolutely, positively, certain their

packageswill be there by 10.30 in the moming".

In fact, PCL sells even more than r€liable d€liv€ry. It

designs tracking and inventory management slst€ms for

many large companies. In other words, its customers buy

more than jusf delivery senicei they bu9 a solution to

th€ir distribution problems. For example, a warehouse

designed and operated by PCL is part of the distribution

centre for a very large compuler firm. In oLher

organisations, customers can plac€ an order for inventory

as late as midnight, and tbe marketer, because of PCLS

help, can guaranteedelivery by the next morning. PCL

has positioned itselt as a company wlth a service that

solves its customers' problems,

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Qu€srions '

(a) What is PCL s product? What are the tangibleand

intangible elementsof this serviceproduct?

(b) What are the el€m€nts of service quality for a

delivery sewice like PCL ?

{c) In what way does echnologynflu€ncePCL'Sservjce

quality ?

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December, 2OO5

MS-66 : MARKETINGRESEARCH

Time 3 hours MoxinumMarks 100

(Weishtoge7@/o)

Note : Thts poper consisfs oJ two Sections A ond B.

Attempt any thiee questions rom Section A.

Section B is compulsory.Al l

questionscorryequal marks.

SECTIONA

l. (a) Describehe K-MeansClusterAnalysis echnique.

Gve examples f situationswhere they may be

appliedefticienrly.

(b) Why is cross abulation very commonty ppli€d

data analysismethod in marketing research?

Describehe limitations f this mernoo.

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2. (a) What is ihe method of personification used in

marketing research ? lllustrate thjs method wiih an

exampleand its possibleapplications.

(b) What is longiiudinal esearch esign? Describehow

you can use consumer panels for conducting

longitudinal esearch.

3. (a) Descnbe ny method l adv€rtisingre-tesiesearch.

(b) How are industrial marketing researchesdiflerent

from household roductresearches

4. (a) Descnbe the application of stratified random

sampling in the conduct of any fast moving

consumergoodsr€search.

(b) How shall you calculate the appropriate sample sizes

for each strahm in the above research ?

5. Write short notes on any ,hree of the following :

{a) Observation method of data collection

{b) Data editing

(c) Conelationanalysis

(d) Experjmenialdesigns or research

(e) National ReadershipSurvey

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SECTION B

6. Uttam Drishti Ltd. (UDL) is a company manufacturing and

marketingspectacl€ rames n the national market. t hasdecided to define its target market with the help of

professional marketing research- They have decided to

conduct a field study in the top iwenty five ciiies of the

country.They decid€d o sample0.01% of ihe population

of each city for their pulpose. They Iixed the quota on

equal basis for each PIN zone of tbe respective city.

Following questionnairewas used for collecting data :

Q.1. Do vou wear glasses Yes,4.{o

Q.2. tl f'Yes'

in Q1'l Do you wear :

Sunglasses?

Sight glasses?

Both

Q.3. Do yo! want to buy new glasses

Q.4. Do you know the brand of spectacle frame that you

boughtor intend to buy ?

Q.5- How muci did you pay lor intend to pay) lor the

spectaclerame ? _

Q.6. Your monthly ncome I

Q.7. Your occupation

Q.8. Your education

Q.9. Yourag€

Q.10. Your genderI

Q-11.Yournameandaddress

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Assignment :

(a) Commenton the research esign or this study.

(b) Comment n thequestionnairesed.

(c) Outlinean analysislan or the above uestionnaire

based tudy.

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MANAGEMENT PROGRAIIIIT,IE


Decembei, 2OOS

MS-612

Time 3 hours

: RETAILMANAGEMENT

MaximumMorks 100

(Weishtase 04/o)

(i)

(ii)

(iit)

Attenpt ctny hree questionsorn SectionA.

Section B is compulsory.All guesrions orryequalmarks.

SECTION A

1. De{ine retailing.Discuss he scope and prospecisof r€iail

sector in the Indian context, describing the drivers of

grov,thof f€tailing n the country.

2. (a) What are the stages

and their impact on

suitableexamples.

M S $ 1 2

of consumerdecisionmaking

reiail strategies Explain with

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4 .

5 .

(b) What makes ocationaldecisionsn retailingsirategic

in nature ? Discusswith suitable examples the factors

necessarg o considei be{ore selecting a linal site .for

an9 stof€.

3. (a) How important is the role of pricing in retail

marketing mix ? Briefly discuss he various retail

pricingapproach€s vailableo the retailer.

(b) What are loyalty programmes? Whai purpose do

th€yserve n the overall etailbusiness Explain.

Bri€fly discuss h€ various types of non-store retailing

curr€nliy n vogue.Whdrare tl'eir hmitations

Wrire notes on any three of rhe lollowing

(a) Functionsof Retaiiers

(b) Wh€el of Retailing

(c) R€sponsibilitiesolMerchandising anager

(d) cRM

{el EthicalR€sponsibiliti€sf Retailer

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SECTION B

6. Read he casegivenbelowand answer he questions iven

at the end of the base.

Margin Fr€e Market Private Ltd.

Subhiksha in Chennat, Margin ftee in Kerala,

Bombay Bazaar n Mumbai, RPG'SGiant in Hyderabad,

and Big Bazaar in Kolkata, Hyderabad,and Bangalore

have one thing in common - they all pric€ their

products below MRP. Discount stores ar€ stowly aniving

in India and industry nsiders eel they will spearheada

revolution in organized r€tailing. On the list of top

retailersn the world, quit€a f€w are discounters. round

604/ool the businessabroad comes lrom this formai.

lncidentally, the largest retailer in tbe world, WalMart, is

a discountstore.

Margin Fr€e was registered s a co-operative ociety

in 1993 in K€ralaand entered he supernarketbusiness

in 1994. lt is run by the Consumer Protection and

Guidance Soci€ty, a charitable organizaijon based in

Thiruvananthapuram.oday, it has emergedas Indias

numbq one supermarkelchain with 150 stores and a

. turnover of Rs. 450 crores. Margin Free purchases

directly trom manulactur€rs at exjactory price and sells

at lower prices than the MRP, as it eliminaies the

margin accrued in the traditional

manulaciur€rsiockst-\rholesaler-r€tailer etwork.

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Margin Free takes extreme care lvhile pricing th€

products through its entire stores. lt has employed

so{twarewhich evaluatesh€price

by minjmizingprofits.

Every store is computerized and utilises the soft\rare to

detemine tll€ prjcjng. Tlrjs helps jn ensuring that the

productsare raiionallypriced-

Margin Free has found exceptional success n its

scalable ranchisedmodel. It is now looking to upgrade o

a central warchous€ concept. !"hich will help it manage

growth further. The successof Subhikshaand Margin

Free indicate that the discouni war will hot up in the

coming months but it will be the cusiomer who wll

emetge as the final winner.

Margin Free also gets an a\remge credlt ol 20 22

days lrom slppjiers, \r,hich it sells, on an average in 10

days, hereby evenearning a notional ntdresi on its sales

also- lis strategy has made it flush with funds, which can

Iinance further expansion.Margin Free uses ts customer

base as a bargainingpower to strikediscountdeals-Any

dealer lvho wants to set up a Margin Free store has tobu9 at least rupeesone lalJr worih of share of the main

Margin Free holding company. Margin Fr€e has a

consumerbase of 6 lakhs and it seils ihem consumer

cards ar Rs 40 per year Cu>romerswho buy using lhis

card gel discounts on bulk purchases and also on

governmentsubsjdized roducis ike Rs. 2 per kg rice.

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The stor€s ar€ now opiing for a major expansion

drive. A ke9 part of ihis is the introductionof private

labelling, which is the season's flavour in ihe je.tailingindustry.For the purpose they have shortlist€d15 items- al l g€neric abels ike rice, sugar,eic. - and will add to

the list in {uture.

Hence. they will be in a better position to provide

quality stufl at conslderably low prjces within easy reach

of an averagemiddle-classamjly. For example,a packet

ol tea which sells or an MRP of Rs. 120 at one of ihe

corporate retailers,will be availabl€ or Rs. 90 at the

Margin Free stor€s.

The chain is now planning o open huge Margin Fre€

hyper markets,The first such hyper market, f€aturingan

array of wares and spread over 50,000 squarefeoi ol

well aid out space, s planned o open at Emakulam.The

two other hypgr markets would be opened in

Thiruvananthapuram and lGzhikode.

If the successoi retail activjty is measured n thenumber o{ outlets. the existing 240 odd chain ol

franchiseesmust have aheady made Margin Free the

largest'pure retail chain' (as distinct from retailerswho

at€ manufacturers) in the privaie sector Even going by

the number of footfalls, the Kerala-basedeiailer must

have alreadyb€atencompetitionby a handsomemargin.

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The hyper markets will feature almost all conceivable

retailing products under one loof - textiles, leather,

cosmetics, provisions. eiecironic goods, consLnnerdurables, grains; and grocery. As for ambience and class,

they are most likely to resemble the Giant retailing chain

operating out of Hyderabed and other cities

The hyper market would not dabble in impori€d items

- Chinese or otherwise - that are floodjng the retail

market right now. The cooperativesocieq is in the

process of mobilizing resources or the hyper market

initiative. It plans to rope jn outside investments over and

above whai the Consumer Protection and Guidance

Society hopes to raise on its own.

The Society chose Emakulam first because i happens

to be the most commercializedity in the state Also' the

comparable purchasing capacities are higher ihere. The

nomenclature for the hyper market has a Margin Free

prelix to it, seeking to bujld on tbe enormous irust that

the discount chain has been able to build over a span ol

eight yaars oI existence.

The management feels thai the Margin Free retail

chain has br:en able to eam the wholesale trust of

consumers n a very short span. HowPVer. n ils ioumey

to succ€ss,he Margin Free storeshavemade if€ slightly

uncomfortable for entrenched interests who have, on one

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hand, b€en fleecing consum€rs and. on the other,

resorting to indiscriminateunder nvoicing to avoid tax.

The latt€r leadsto loss of croresof rupees n realisable

. revenue or the stategovernment.

Everymonth, Margin Free is openingupto 12 stores

and the number has grown to 241 at last count. The

chain has spread to liierally al l paris of Kerala. It has

seven franchisees n neighbouringTamil Nadu already

and two in Karnataka.The overall urnoverhas grown toRs. 600 crore.

Qu€stions :

(a) What has been the role of p cing strategy n the

success f MarginFree Markets?

(b)What are the salient eaturesof Margin Free Marketpricingstrategy?

(c) Analyse he externaland intemal factors that have

made it possible to sustain the present pricing

strategyof Margin Fre€ Mark€t.

(d) Discusshe limitaiionsof the existingpricingstrategy

of Margin Free Market. Suggest appropriatechanges.

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Time : 3 hours

trs611MANAGEMENT PROGRAMME


December,2O05

MS-611 RURALMARKETING

Maximum Morks : 100

(Weightase 70o/o)

Note i lhis pdper consist'sol tuo Sections A dnd B.

Attempt ony three questions hon Section A.

Section B is compulsory. All questions corry

equolmarks.

SECTION A

1. What consiitutesrural markets in India ? Discuss hejmportant dimensionsof the rural market demographicsand their implications for marketersol consumer

dlrrables.

2. What are the major f€atures in ihe problem recognition,

inlormation search and alternative evaluation process that

as a marketer of utility products like cycles,you can €xpect

in case of rural customers?

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3. Whii are the factors that alfect the product adoption

' process? How would these actorsdetermine he rate ot

adoDtion n Lhe ural market orproductsike ,

(a) Easy+o-handleazors..

{b) Battery operatedTV sets

Explaln he importantcommunicationonceptselevant o

the rural maikeis. What is the significanceof usageof

symbolsand pictures,colour andmusic n rural marketingcommunicaiion Discusswith suitableexamples.

write shortnoteson any thfee ol th€ lollowing,

(a) Hierarchyof marketsor rural con$rmets

(b) Role of regulated marktjts or Mandis in ruml

distrlbution

4.

5.

tc) Placeof purchasedeosion n the ruralmatkets

Thomson ural matket index

Impact of lT on the nrral marketingpractic€s

(d)

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SECTION B

6. Read the case study given below and answer ihe questionsgiven at the end of the case :

Village Shops

In a study conducted by ICICI it was found that :

. Only 40 p€r cent of shops in small towns have

electricity, while in feeder villages this figure was

11 per cent.. Shops in rcwns were located on rented premises.

while in interior villages in 88 per cent of the cases

th€ shops were located on o*red pr€mis€s and

lackedeleclricrty

In feeder villages, four fifths of the shops have one

personworkingfull time, while in interiorvjllages70per cent have hro or three persons working on a

parl+imebasis.

Over two-lifths of the retail outlets stocked eight to

nine standard product categories.

It was found that three{ourths of the outlets that

siocked eight to nine product cat€gories kept fourltems or less n each category,while onejourth had

five to six items in each cat€gory.

The total number of items stocked n retail outlets

was about 50 in interior villagesand 115 in I€eder

villages.

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. The siock furnover ratio in the study s the number

of times the stock is sold in a month. This is

obtainedby dividiog the stock level by monthlyoff-iale. The latjo for tojletrjes in jDiefor vjllages

was close io unity, while in the feeder villages

two thirds had a ratio in the range of tuo to three.

The ratio of one indicates that on average interiot

vjllage shops had stocl,s for one monih, whil€ shops

in feeder villages maintained stocks for rwo or mree

months. The value oI the stock turnover ratio intowns had a wider spread and hjgher !,?lues in ihe

range of thre€ or even five, because ot the wide

variety of products stocked.

Questlone :

{a) Critically e\,aluatethe above rural retail scenario for

. the marketer of consumer products.

(b) What impiications does ihe above scenario have for

th€ long term distribution system d€sign oI a

multiproduct necessity goods company wantiDg to

make a loray into the rural markets ?

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MANAGEMENT,PROGRAMME


December, 2OO5

MS-68: MANAGEMENTOF MARKETINGCOMMUNICATION ND ADVERTISING

Time 3 hours MaxirnumMorks 100

(Weishtase70o/o)

Noae :

(i)Attempt any thtee questionsro,, SectjonA

(ii) Section B is computsory.

/t t i l Al l quesonscorrg gualmorks.

SECTION A

l. Briefly discuss he M.W. Delozier model of the marketing

communication processand discuss t's relevancefor

{il New product launcb

(ii) Social campaign lik€ safe drinking water or gende(

equal'ty

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2. (a) Discuss th€ areas in. which r€search s useful in

developingdn elfpcnveadveni\ingcampdign.

(b) Discussany of the two m€thods used to conduct

advertising f ectivenesses€arch.

3. (a) Differentiate betrreen iraditional and Int€met

advertising,n terms ol iheir relativeadvantageg nd

disadvantages.

(b) Which one oui of the two, traditionaland Interneiadveftising, will you choose for developing the

adveftisingcampaign for the following producis ?

Give ustificationor your answer.

(i) Airlines Tickets

(ii) InternetBanking

(iii) Toilet Soaps

4. Diflerentiate and discuss the significance of each of the

following n advenrsrng ediapldnning

(t Reachand Effective each

[ii) Frequency and Elfective frequency

(iii) Cilcularionand Coverage

liv) Mewershipand R€adership

(vj Seasonal Pulse and E atie Pulse

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,t. '

SECTION B

5. Caretullg read the given case and ansrter the questions

givenat the end oI ihe case

Sir RichardBtanson'sVirgin Ailantic has launcheda

Frequeni Ryer schene [or pets. The airline's animai

customers re increasing. n 2003'04, it carrjed687 pets

bui thjs year pei business almost doubled to 1250

animals. Dependingon size. it costs around f, 400 per

pet to travel in the hold ior a round trip to New York

The animals are reportedly better treated than humans on

most budget camers. Virgin offers an array of corporate

goodies.Dogs get an exclusiveVirgin doggy T'shirt and

sparlding doggy tag. Cats are given a toy mous€ called

Red and fertets receive a limited edition o{ flying Jackets

Under the frequeni flyer scheme, animals will r€ceive a

''passpori" which recordsone paw .1int Wr flight. AJter

five flights lhe peb get even better gifls, such as

hand'madebow) or non-sljp mat. They can ev€n donate

1000 mjles to their owner, but of course they cannot

r€deem he points lor flying solo.The p€tswhoseo\tners

travel premium classwould get free pedicure, their fur will

be blow'dtied and receive clothesJrom GLrcci,Bufberry

and Prada.

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. ! a !

Questions :

(al Who a(e tbe Target Audiences for sucn a sares

promotioa and !'.,hat mplicii or explicit benefits do€sit offer ?

(b) Do you think that such a scheme will give sales

volumes o Virgin AUantlc?

(c) If you have o handle his task, what communication

strat€gy would you recommend to Sir Richard

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December,2005

MS-91 : Old ; STRATEGIC ANAGEMENTRevised ADVANCEDSTRATEGIC

MANAGEMENT

Time : 3 hours Maximum Morks : 100

(Weightage70%)

Note : There ore two SectionsA ond B. Section A hds

frl)o sets.Se, I is meont lor the students who hove

registeredJor MS-91 : StrategicMonogementprior

to July 2005 i.e. upto Jdnuary 2005. Set is

meant for the students who houe rcgistercd lorM3-91 : Aduanced Stratesic Monosement lron

July 2005 onwards.Attempt any three questionsJron Section A. All questions carrp 20 morks

eoch. SectionB is compulsory Jor all, and corries

40 morks.

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SECTION A

set I (Old)

STRATEGIC MANAGEMENT

1. Briefly describeChandler'sand Porter's perspeciiveson

strategg and structure- Illustrate your answer with

2.

'The

operative part of leadershipcapability ies in theabilibj to handle peopl€ in a manner that they give their

best lor a caus€, organizationand th€ task in hand.

Comment on the statem€nt with respect to handling

colleagues nd handlingbosses.

3. Why is it important to iniegrate R&D into corporate

strategy ? Brielly discuss he factors which should be takeninto consideraiion if the inno'"?iion process is to be

managed successfully.Explain giving examples.

4. Briefly explain the following I

(a) The Corporate Rating Apploach

(b) The ConstituencyGroup AttitddesAudit

(c) Partial Social Audit/Aspect Audit

5. Discuss the \,arious modes of iechnology transfet. Explain

the evaluation f technologywith respect o the customels

and the blryer's points of view.

20

20

20

20

20

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SET tI (Revised)

ADVANCED STMTEGTC MANAGEMEM

l. (al "Good gowmance is epitomizea by prcdictab)e,

open and enlightened olicy making, a bureaucracy

imbuedwith professional thos acting n furiheranc€

ol the public good, the rule of law, transparent

processes nd a strong civil societypaficipating in

public affairs. Elaboraie the siatement in ihe

contexi of corporat€governance.

(b) Brieflg describehe role of board of directors. 20

2- Discuss ihe difJerent approaches to modes of entering a

for€ign market.

What are the differeni sources of knowledge ? Explaindifteent types of lnowledge and Lhe factors which

consiitute the knowledge'creation proc€ss.

Des$ibe in brief, the key developments in tranaparency

and reporting wiih respect to social audit.

Wrire shon noreson any ,rrr€e ol rhe tollowing

(a) Corporat€SocialResponsibility

(b) StYategicPhilanthropy

(c) IT in seMce setlor

(d) Strategicchoice

(€) Narayana Murthy Commitiee on CorporateGovernance

20

3.

4-

20

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SECTION B

6. Read the following case and answer the questions thatfol low: 40

MYSORE FOODS LMITED

Mysore Foods Limited produces and disirjbutes

packaged ood productssuch as cereals,biscuits,spices,

jams and jellies,syrups,etc. The company has a national

market and algo €xports smaLlquantities to oeighboudng

countries. It conducts a large national advefising

campalgn. i has 75 p)ants ocated all ovet the country

and markets 70 dilfercnt products,each under its own

irade mark. Though its productsare all tood products,

they are not otherwise closelv related. They vary lrom

long margin specialiiieswith comparaiively mall volume

to large-volume items wiih smal profit margins. Dittereni

raw materials and other articles are used in their

processingand packing.Al l productsare, however,sold

Lhrouqh he -ame chdnnel . .e. . rerai l dnd provl ' ion

stores. Gross sales are Rs- 25 crore and iotal ass€ts

exceedRs. 12 qore.

The management ol Mysore Foods Limited is

centralised.The Chairman of the Board, the Pr€sident

and foui Vice-Pr€sidents ho are responsible or saleg,

production, purchasiqg arld taw make up the topmogt

e\ecutive level of the company and operate as a

committ€e on all generalpolicy matters.

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Sales, advettisingand salespromoiion come und€r

the SalesVice-President. li plant operaiionsas w€ll asthe researchand engineeringdepartmentrepo( to the

Production Vice'President. Purchasing is the responsibility

of its Vice-Presidentwho also governs tratfic. Public

relations, law and corporate functions Jall under the

General Couns€l. Financial responsjbilitiesare handed b'i

the Presidentand employee elationsare coveredby eachVice-President in his own area oI responsibility.

The company was set up by combiningseveral ood

products organisations nd it bas acquir€dothers since.

One of the theories of the organiserswas that there

would be great advantage n whol€saledistribution f one

salesman ould cover an entir€ ine on one cal l as against

a number of salesmen, ach callinsto sell a sjngle ine.

Saving in time alone would be of great value to the

distributor. This principle has teen retained and has

proved successful as the company has grown One sales

organisation handles all the products. Each product is

given specific ime and attentionby the salesorganisation

in accordancewith its demands.

. The head of the fieldsalesorganisationeports o the

Vice-President.The Adverlising Manager and the Sales

Promotion Manager take caye of advertisingand sales

promotion for ihe entiYe in€ 6ut each product has its

own advertisingcampaign and appropriation The Sales

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Promotion Manager is in'charge of the missionarg

sal€smanwho contacts etailers-

To avoid neglector error, singleproduct or a group

of products ar€ assigned o on€ of the 20 Product

Managers. Each Produci Manager is responsible lor

seeing that his product receiv€sdue aitention lrom the

sal€s organlsation, he production department, and the

advedisingand promoiion depariments.He specialis€snthe pricins and salesappeal questions of his product. He

reports, however, to the Sales Vice Presideni,who has

th€ ov€rall control. The Sales Vice-President can cu*ail

any eIfoIls of the Product Managers t he is using his

sales orc€ for specialefforts on some a'therproduct or

products. There is no institutional advertising. AIIadvertising s coordinat€dand placedby the Advertising

Manager while the linal authority rests wiih Sales

Vice-President.

Each plant is operat€dby a superintendentwho is

in-chalge oJ wages, maintenance, cost, output, qualiiy,

h'ring, inspection and other normal plant operation

responsibilities. sup€rintendents report to eight Regional

Produciion Managers who are r€sponsible to the

ProductionVice-President. he volume of produciion in

eacb plant is scheduled y the productjoncontroi group

repo{ting o the OperatingVicePresident.Final schedules

are set after consultinghe SalesVice-Presroenr.

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The business as more than doubled n the last ten

yearsand profits,both grossand net, have ncreased. he

number of plantshas also more ihan doubled.Purchases

have increased proportionateLv. New taxes aod new

reporis io ihe governmenthaveadded o the complexity.

The management feels that certain problems are

poientiallydangerousand should be solved befofe th€y

There have been periods n which a product has got

into difficulty becauseof loss of favour wjth the public,

bad managementor even neglect.Atiention of the Sales

Vice'Pres:dent o the problems of some products has

causedhim, at times, to lail to recognisedifficulties nother productseven hough the ProductManagerof such

producis had recognis€d hem and brousht them to his

attention. The burdenon the presentofficers s becoming

too heaw to ensure proper attention to al l theit

responsibilities.Employineni ol assistantserodes the

personal touch of the top group that is n€c€ssary or

q,..,c(f, I m:n:^.-.nr

Opportunities for increasing produci-lines and

€xpandlng he busin€ss re being lost becauseof lack of

executives' time to siudy them or to manage new

products. n any business here specialiiies re soldunder

irade marks and brands are the major business of a

company, it is necessary or the company to continually

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bring out n€w products and io study old ones io

determine the point of no retum regarding promoiion

and advertisingexpenses.

Once the iop executives roup has approved he idea

al a new product, jt is pul under one ol the

Vice Presldents.He developsan o€anisation and brings

ii along. Ai first, the advertising ppropnation or a new

product is noi the responsibility of the SalesVice-Pr€sid€nt bui oI ihe Developing Vice President.

Eventually, f the product proves io b€ successlul t is

iurn€d over to the regular ine oI organisation.With new

products and grow'ih in the old ones, the weight,

complexiig and number of decisions that have to be taken

by the v€ry few men at the top, mean a heavierburdenfor them.

The management eels that in addition to ih€ lost

opportuniiies, market poieniial and th€ need for

developmeni of present products are not being fully

recognised. The businessmay have grown ioo big for the

form of management.Executivesequiremor€ responsible

att€ntion for each product. At the same time they wish

to retain the advaniag€s oI central management in

purchasing, ra{fic, institutional eputation and minimum

sales approach and to maintain the high-calibreadvice

and experience now present in law, advertising,

accouniiDg and publjc relatjons-

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Qrestions I

(i ) How far is the existjng organisationalstructureeffective n the changed onditionsof the company?

(ii) Indicate (a) How the d€siredproduct responsibiliiy

can be achieved , (b)Any changesn line authority,

and (c)The use, if any, of sta{f. unctionalauthoritg

or committees.

{iii) What policy and organisational tructurechangesdoYou recommend,and why ?

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Time 3 hours


December,2OO5

MS-92 : MANAGEMENTOF PUBLIC

ENTERPRISES

MoximumMorks 700

There are two SectionsA ond B.

Section A has tLUosets. Set I is meant lor the

students who hooe registered or MS-92 prtor to

July, 2004 i.e. upto Jonuary, 2004.

Set ll is meont lor the students who hoDe

registercd or MS 92 frcm July, 2004 onwards.

Attempt ony thrce questions rom Section A. AIl

questionscorty 20 'r'orkseoch.

Sectton B is compulsory for all ond co ies

40 norks.

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l .

SECTION A

Set I

(Pre-ret ised)'PEs

are said to play a major role in our economy.' Discuss

in cont€xi of employment, contribution to Net Domestic

Produci and grou,th in investment.

Explain the reasons for PEsgoing inio disfavour the world

over since he b€ginningof 1980s.

3. (a) 'Financialcontrols nclude ntemal audit, brdgeting

and financial reporting systems.'.Elaborate the

statement.

(b) Criticallyanalyze he relevance f marketing n PEs..

Discuss the objectives of transformation. Highlight ihe

problems in managing transformation in public sector.

Explain the concept ol MOU and the MOU system

pre\railing in India. Discuss the various steps involved in

implementation of MOU system in PEs.

20

20

2.

1 A

1 0

4.

20

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l .

Set II

(Revised)

Briefly commeni on the coniribution of PEs in the growthand development of Indian econorny. Discuss the Mixed

Economy Model lollowed for economic grou;th.

Dscuss fhe lssues of corporate ga\)emance in Pub)jc

Enteprises.

3, Comment on the common ctEracterisiicsof sociallg

r€sponsible firms ahd the importanca of social

responsibility in the present context. 20

4 . DiscLrsshe role and performance ol iransport s€ctor in thepresent day context.

'Privatisation encompassesa broad spectrum of possibilities

between denaiionalizaiion at one end and, market

discipline at th€ other-' Analyze the statement with resp€ct

to different dimensions ol privatization.

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SECTION B

6. Read the following case and answer the qu€stions ihat

tollow. 40

ARRIVING TO LAND ANYWHERE

As the taxi screechedo a halt, Mr' D'Souza for the

umpteenth ime, cursed he Monday morning fiaffic and

his inabili& to do anlthing about it Mr' D'Souza was ih€

Marketing Director of Indian Aviation Company ancl was

on his way to attend one ofhis severalprelunch stmtegic

meetings. This meeting had a special importance as ii was

to open the marketingplans o{ hls company ior a new

helicopt€r the first from a private sector companv in

India in this category of products On consulting his watch'

he rectined that he would be delaved bv at least 25

minuies. Hence, he decided to us€ the iime by reviewing

the salient points of his preseniation

The Cornpany

The Indian Aviahon Company llAC) i'"?s set up in the

Expod P/ocessing Zone ol one ol the four metropolitan

cities of India. The tormation of the Company was

note\,,,ofihy {or the {act that it was the {irst in the private

sector to have b€en given the licence to manufacturehelicopters so far only Hindustan Aeronauiics Ltd (HAL)'

a public sector company, had the licence to manufachfe

the helicopters.

IAC was an lndo'Us Joint venture with Brantlv

Helicopters, USA- The joint venture was initiated by

Mr. Rangnani_

a former technician nthe lndian Air

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Force who had settled in the US. The project was in

response to the Indian Govemment s initiativE and

liberalization in inviting non-rcsident Indians(NRls)to bring

home their expertise, and promote a new industrial culturein lndia. The company was sei up qrjth Bs. 1 crore as the

projectcapital n 1986. As per ih€ termsof joint venture,

the helicopter was to be d€signed originally by the US

partner and assembled n India under the supewision of

th€ US experts. As per ihe expott regulations of the

Govemment of India, 75% of the output wBs to be

exported oui of the country while the remajning colrld be

sold in India.

Th€ Products

The Compary decjded o manufaclure h the beginning

two mod€ls - one with a carrying capaciiy of t o

passengers,while iheother wiih five, including ihe

piiotinboth the cases. The machine for both models was a

four stroke piston, as against twbo propelled "Chetak' oI

HAL, the only comp€liti\e ofteing in the market.

Among other vital uses and service benefits, these

helicopterc could land anywhere without r€quiring helipad.

Further, the fuel efficiencaand $aintenance was amazingly

low, working out at Rs. 1,000/- per hour of flying as

against Rs. 8,000/- for the Chetak. Mr. D'Souza had

thought of usjng these fir,,o berejits tor deating distinctive

competence in the market. The qualitg standards of ihe

manufacturer were very high as was exp€cted from the

industry where "technical excellence was th€ name of the

game". Besid€s perational ualiiychecks, he US expeds

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wouJd supeNise the assembly n Indian plant and the US

Federal Aviation officials would visit to ceriil!, the quality

perlormance,

Ir) addition to the above, the prices of the hro models wereconsldeGbly lo\ rer as comparedto tbe competing olledngs.While the hro-s€ater model was priced at Rs. 10 lakhs,the live-seater mod€i was priced at Rs. 25 lakhs a piece.

The helicopterwas due to come in the market in June1988.

The Marhet Demand

Th€ company had developed annual demand projections

upto 1990. Bas€don its ass€ssmentf marketneedsand

compelitive ollenngs. rhe company had projeded an

annual d€mand of 60 machines. The plant had aproduciion capacity of tuming out 120 helicopters per

annum, As the concept o{ using helicopters as an

'executivetransport was still to gain momentum, Mr.

D'Souza expected an upward revision in its demandpfojections. It being the first prilat€ sector to filaou{adure

choppers, he did envisage the problems of market

con{idence and credjbillt!'. However, he thought that the

alliance with a proven US marufacturer and strict quality

managementcorrld moilily'marl.ret resistance. n its task of

achieving the expo( stiprjation of ?5%, the cc,rnpany had

receiv€d enaouraglng enqu'ries trom sev€ral intemational

ma.ket centres. Besides th€ United Siates, where the

Company had a natuml entry advantage, it had been

rcceiving enqiries from Thailand, Japan, Singapore,

Turkey, ltaly, Aushalia and Britain about the poduct and

delivery.

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As lor the Indian component of sales, Mr. D'Souza had

been trying to ideniify prcbabl€ users for both the models.

Keeping in view the {eatures, .e. loi! price, low opetating

cost and facilitg to land anywhere, he ihought that the

two-seater helicopter would be an ideal purchase for the

police in traffic control, disaster reliel, hospitals and ev€n

news coverage. Already, Delhi Doordarshan and police

d€padments of t o states had evinced their interest in the

product.As for the fiv€-seatermodel.Mr. D'Souzapinned

hopes on company executives who needed to shutdebetween factories and headquaders n different places, and

other businesstrips.

The Concerns

During the meeting, Mr. D Souza hought oI sharing his

irnrnediate marketing concems and a long term

perspective plan. H€ was aware, with his background ofmarketlng highly technical ndustrialproducts, that such

products were sold on the benefits rather than product

features. Also, he felt that organizational buying behaviour

posed ihe Iirsi major barrier to be taclded. Among other

immediate concerns, he included organization ol

compet€nt salesforceand promotion mix, such as,

publicity and word-of mouth. He needed to tesi ihe market

reaction of his pricing plan as well.

Finally, he felt thai the company had to tackle some

strategic questionssuch as :

(1) How should tlle chopper be positionedamong th€

evisting altematives lor the product ?

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(2) How could the company draw the demand from

competingolferingssuch as light aircraftsalready n

market ? What U.S.P. shouldbe used?

(3) How could the companyprepare tself for applying

for a full ledged icence o producechoppers€ntirely

for the Indian market ? What arrangementsare

needed or indigenization f components?

(4) How should they approach and persuade the

organizational uyers?

(5) How could it cr€ate and maintain a long term

strategic ad\rantage n the markei which was far {rom

develop€d

As Mrs. D'Souza div€rted his chain of thoughts to the

alternatives, the taxi suddenlycame io life and resum€d its

crawling in the tmffic.

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December, 2OO5

MS-93 MANAGEMENT F NEWAND

SMALLENTERPRISESTime 3 hours MoximumMorks 100

(Weishtoge704/0)

Note: This poper consists al ttro Sections A ond B.

Attempt any three questions Jrom Section A.

Secfion B is compulsory. All questions corrg

equal marks.

SECTTON A

l. Critically e'"?luate the current policy for the small scale

secior in terms o{

(a) suppon to fi€ tiny sector

(b) inlrasiruciural and t€chnical support to the SSI

What are the gaps in the suppoft structure, il any, that

you can identify ? Biefly comment.

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2. You are an entrepreneur planning to set up a softlvare

development unit in your city. Explain ihe variables you

would use and the sieps you would lollow to conduct yourmarket demand analysis.

What are the disadvantagesof sole proprietorship as a

torm of organisation for a small enterprise ? An

engineeing gradual€,as a prospective ntr€preneurwants

to set up a smallscalepackaging nit, by puttingup 25%

of the capiial required from his own resourcesand is

wonderingabouiwhai form of legalentityshouldh€ form.

What is the adviceyou would givehim to help select he

b€st form of businessorganisation or his enterprise?

Justifyyour answer.

Why, in your opinion, do small entrepreneurs eem toneglect the human resource functon in enterprise

rnanagem€nt ? What are the main methods used by rhem

to train non-managerialmployees Discuss_

You hav€ ust esiablished our textileprintingunit and aregeiting good orders lrom ihe market. Whai are the

stabilisationphase challenges ou can expect and how

wouldyou overcome hem ? Explain.

3 .

4 .

5-

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SECTION B

6- R€adhe casegivenbelowand answer he questions ivenat the end of the case :

Rani Singh The Exporrer

Rani Singh s a woman who owns her own flusiness.

Like mang other women entrepren€urssh€ is torn

betweenher role of a woman i.e_,a wife, a mother, a

home maker and most impodant a daughter n law of a

middleclass ndianhousehold nd an entrepreneur.White

she has been a successfulbusinesswoman, he often

wonders f she had been a successful erson!oo.

Rani caughtentrepreneurshipever lrom her father.

He owned and manageda company,a travelagencyand

a lumiture store in an industrialown of U.p.

Her father was a compulsive achiever. Besides

managing three businesses t once, he seNed on theschool board. Rani said so about her father, ,,He

expected us to achieve, so we all did." One of her

brothers is an MLA and the other is the Managing

Director of a sugar mjll ',lf we got ,B, gmde in some

subject nsteadof'A',

father wanted o Knownow come.

He never talked about money, but he talked about

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integnty and character." She siart€d b€r first v€nhre at

an age of 15 when she organized an excursion trip of her

schooi students and earned Rs. 2,000 besidesa free trip

to Mussoorie. In the college, she formed a musical group

and financed her college educaiion till her faihet found

out and stopped her. Rani says, "l had no shorhge of

money during my college days. It was the s€nse of

independ€nce which was more important. I wanied to

start my own businegsand want?-d o create my ov,n seed

capital or the same."

She completed her B.Com (Hons). rom Shri Ram

College of Commerce, D€lhi University and a short telm

course on export documentation. She join€d an export

house as a junior executive and becam€ merchandising

manager n three years time. Within six months of her

promotion she resigned to s€t up her own busin€ss of

leather garment exporu

As per Rani, there is nothing more exhilarating than

owring gour own brrsiness, and for her, the fun was in

the challenge of making the firm grow from a small

business struggling for existence. Today more and mote

women arc making this choice rather than pursuing

traditional careers. Development Commissioner (Small

MS-93 4

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Scale lndustries) notes that for the past five years, the

number of women starting n€w ventures is thyee times

more. There ar€ severalreasons or tbis tyend. "Some

women find that owning a business is the only way to

combine a decent wage lvith time for their children by

having th€ flexibility to cortrol tbeir schedules. Oth€/s see

lhemselves as unlikely corporat€ managers and

recognizing he g€nder problemthat exists or achievingsuccess, choose the €ntrepyeneurshipas a way of

controlling th€ir lives, pursuing interests that would be

irnpossiblen corporate obs.

Rani has travelled throughout the would. Every year

she spendsat least hvo months abroad visiting the buv€rs,

and particlpating in trade Jairs. Today at the age of 35

sh€ is the managing director ol a export house with a

tumover o{ Rs. 20 cror€s.

The women entrepreneurs have io pay a price that

men do not have to consider. n caseof a woman there

is often a conflict bet'reen the role oJ a "woman as a

home maker and ir businesso\rner. Often the husband

and wite .larelop sepaftte .areer track which cannot be

reconciled. Rani had to pay this price through her

divorce. She says that her business played a significant

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role in dividing hey loyalti€s. "My in-laurs were very

conservative, they did not like my meeiing with my

clients- My husband accompanied me on the ,irsl two

foreign lrips. These tr.rmed our to be rnore o{ pleasure

than business rips. His own priorities pre!€nted him from

accompanying me each time. In spite ol all my etforts, I

found it dilficult to satisfy my in-laws particularly Rakesh's

(mye\-husband) mother and sister, though I never

neglected the household work and always tried to present

myself as a dutiful "Bahu" of the household.There was

a strang€ coincidence that my husband's guests would

arrive only when I wa9 busy Mth my important clients or

ananging an already delaged shipment. Women oftm find

it lonely in the business world, €specially if the business

clients are only men. It was a problem for me." Many

women however have a businessthal fits well with their

intetesb and have wom€n customers. These include

services in b€aul! care, women's cbthing, edwation,

enteftainmentetc. In order io overcome his lonelinessand to win over Shalini, my sister-in-law, I made her a

part of my businessand took her along on all meetings

especially outside D€lhi. Bu1 this did not help, rather my

mother-in-law and Shalini started poking their nose in my

routine businessmatters. Ultimately, I could not tolerate

Shalini's interference as it affected not on\, my

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ind€pendot working style but also the reputation and

grounh of my business,which I had nourishedat a great

cost of iime and effort.

Nevertheless, being in business olten €xttacts a

double price from women. yet for those who are

d€termined, h€ rewardsare painful.

Quesfions :

{a) Do you agre€with Rani'scontention hai it is doubiy

difficult or women o be entrepreneurs Justilyyour

(b) Are lad)y saiisJactjor and enirepteneurship

contradictorygoals? What are the coping strategiesLhatcan be suggested o! the situaiion in whic.h Rani

found herself?

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MANAGEMENT PBOGBAMME


December,2OO5

MS.94 ; TECHNOLOGY ANAGEMENT

Time 3 hours MoximumMarks 100(Weightoge70Vd

Note: Attempt ol , questions. All questionscorry equal

1. "Mosi of the poor countti€s, though rich in natural

resources, are faced wi$ some basjcproblems." What are

these basic problems and how can technology be helpful in

(i) Foodi

{jj) Shelier;

{iii) Health;(M Communicationi

(v) Transportation;and

(vi) Educarion.

OR

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2. (a)

''Therels another way of looking at technology life

from th€ perspeciiveof gror,th and diffusion."

Explain h€ stagesof groMh of technologyaccording

io this perspective.

Describe ihe {ive stages of technology

translormation.

What are the key faciors in technology transler ?

Discussvarious modes ol technoLogy tansfer.

(b) Discuss di{{etent inte$ational agencies that are

engaged in the promoiion of Scienc€ and

Technology (S&T) cooperation among developing

OR

Explain the Growth curves wjth the help of Pead cul1/e

and Gompertz curve.

3. Disclss the ptoces. ol technology assessmeni fIA) and

technology evaluation(TE). Hovr does TA difler fiom TE ?

OR

Define technology diltusion. Dscuss the mulb-fac€ted

actMtiesof diffusion.

tat

(b)

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Discuss he role of \€nture capital in developing technology

Explain the contents

information.

OR

sources of technology

5. Explainany four of the following

(a) TIFAC

(b) Analysisof technologygaps

(c) TechnologyMissions

(d) Technology support for modemization ol small scale

(e) R&D expendituren lndia

(fl Factors on which royaliy raie for technology iransfer

depends

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December,2OO5

MS.95 : RESEARCH ETHODOLOGYORMANAGEMENTDECISIONS

Time 3 hours MaximumMorks 700' (Weightoge7@/o)

(i)

(iil

(iii)

ThIs poper contajns tLaa sections,Sectlon A ond

B. Section A cot'ttoins ioequestions.Attempt ony

four questions Jrcm this section. Secfion B ts

Stotisticol toble will be proolded on demand.

Use oJ personol non-progrommoblecalculators is

SECTION A

1. A sports goods company wish€sto test two types of tennis

rackets n order to determine rhich one is "best". 15

{a) Proposeand defenda precisedeltniiion ol "best".

(b) Whar is rhe ser of hvporhesesharshouldbe tesred?

Discuss.

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2. What is Discriminant Analysis ? What ar€ ihe differences

behi/een Regression Analysis and Discriminant Analysis ?

List oui a few researchstudieswhere Discriminant Analygs

has possibleapplications.

"Random sampling owes its impodance to the fact that we

can assess the results obtained from it in terms oi

probabilities othenrise the reliability of the estirnates

remains a matter of indMdual opinion." Elucidate his

Statement,

3.

4. What are the differeni categories of research teports ? .''

Explain each of thes€ categories in deiail. Aiso give hro

examdes o{ reporti Jrom each o{ these categories. 15

5, Write short notes on any tlrree of lhe following : 15

{a) Endogenous uariables and Exogenous 'ariables

{b) Scrutiny of secondarydata

{c) Routine and Non-routine decGions

(d) Eements ol CommunicationDimen5ion

{€} Type of Bibliographies

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6.

SECTION B

Define Dichotomous data and the Guttman Scale. Mention

truo teasoDsqrhichmal<eGutiman Scale an impractical tool

for the measurement oI attitudes.

The weight (gms)of 31 books picked from a consignment

1.06 , 07 ,76 ,82 , 06 , 07 , 75 ,93 ,787,95 ,23 ,

725,L77,92 , 6 ,70 ,727.68 , 30 , 29 ,139, 19 ,715,728,100,186,84,99, 113,204,111

Test whether this samplemay be treated as random.

20

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MS-96 : TOTALOUALITYMANAGEMENT

Time: 3 hours MaxilrtumMarks 700(Weightage704/o)


December,2O05

(i ) Thereare two Sections SectionA ond SectionB.

(ii) Attempt ang three questions rom SectionA. Eoch

question corries 20 marks.

(iii) Section B is compursory ond carries40 molks.

SECTION A

1. (a) According to Deming, what are the seven deadly

diseases associated with ihe American traditional

management practices ? Does India presently suffer

from any such diseases?

(b) Why hasTQM beengainingpopularity? Discuss nd

then comm€nt n the contextof Indian situaiion.

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2. (a) "The primary objective of quality is io give value to

the oistomer" Evaluate and discuss the ways in

which the film can give more value to its customers.(b) Wiat prccedure should a business firm follow in

order to systematically ntegrate quality with strategic

planning process?

3- (a) What are some of the humanistic elements of

TQM ? Discuss.

(b) How can an organization generate greater

commitment to quality on the part ot its

€mployees ? What approach should it follow ?

4- (a) What ar€ the benefits ol ISO 9000 QMS

implementation Discuss.

(b) Discuss he process{in general)about the decision on

quality awards {by quality awarding organizations).

5. Explainanytour of the followins

(a) Malcolm Baldnge Award

(b) Direct and indirect costs of industrial accidents

(c) Control charts

(d) Principles of Benchmarking

(e) 5'S concept

{fl Concept and Rationale of Quality Function

Deployment

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. SECTION B

6. Read the following case care{ullyand answer the questions

givenat the end :

ABVIND MlrIS

For the Rs 413 50-crore re{rile-makerArvind Mjlls(Arvind),global quality sn't just a buzzlvord. t's a target

that must be met 365 days a gear, 24 hor.rrs a day,

60 minutesan hour, 60 seconds minuteto ensur€ hatevery millimetr€ol the 1.90 metresof denim it spinsout

every secondconforms o the specilicationsaid down by

Aruind'sglobalcusiomers.

For, demanding buyers like the $s.g,billion Levi

Straussand the $4.3,billion VF Corp., which owns theLee and Wrangler'sbrands,acceptno - and that means

no - deviations {rom their stringent s.tandards.So, t}re

flagshipof the Rs. 1,774-croreSanjayLalbhaiGroup has

been forced to build global quality into all four

components of its production process : sourcing raw

material, manufacturing the product, monitoring it for

flaws, and shipping t to tI€ customer.

Actually,Arvind's planning or qualitybegan n 1987

when it chose globalisation as a suruilal strat€gy. Says

CEO Sanjay L-albhai, 40 , "The importance of quality as

a major parameter evolved right from the day q/e started

looking at the global market, wbere our competitiqn is

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from world-class producers." Manulacturing fabrics for

garments like sarees and blouses- a terribly competitive

market with low margins - Arvind, tike its p€ers, wasralaged by compeirl ion n rhe early 1980s

Forced to target the global market, Arvind chose

high-end denim : a commoditised aw material, where

apparel-makers do not tolerate variations. Says a

Singapore-based vice president ol Merrill Lynch, whotracks the industry : "The impofiant thing is to produce

siandard quality very consistently.No buyer will accept

th€ uncertaintg oI whether the next shipment will be of

the right quality."

Because of its global commiiments - Arvind today

exports 60 per c€nt oI its denim output - the quality

goal that Arvind's top managem€nt team - led by

Lalbhai and Group CEO P.R. Roy, 64, a tormer

prolessor of texrle enginneringal lhe MS Universiiy n

Baroda - set lor the firm was! as Roy puts it, to "build

qualitytnto the process aiher than rely on inspection."

As a lirst step, the company formalised its quality

vision in a statem€nt that appears on every table and wall

of Arvind's p)ants: "We are committed o implementing

all actions nec€ssary to ensure that coniracts with

customers are honoured to the complete satisfaction of

customerc." Since this m€ant letting th€ customer dictate

M5-96

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quality standards, managers went directly to them to find

out their requirements,

On this basis, a manufacturingsystem capable of

delivering those requirements ,,vas designed. In fact,

Arvind s quality assirance system pivots around the

customer'scurrent - and future - ne€ds.Consider, or

instance, the $ality improvement process whereby

AMnd baggedLevi Straussas a customer n July 1994.

Way back in 1986, Arvind sent its first sample to

Levis Strauss,at which point of time the jeans-maker

subjectedt to its specificaiions riieria- which relate o

the diameterof the yarn, the moisture content, and the

llaws in the fabric, for instance and sent it back. And

Arvind was forced to spend the next six gears creating a

n€w infrastructure, edesigning ts sourcing, shopfloor,

and process radically to meet Levi Strauss' requirements.

A shidy of the cotton'picking process r€vealed that

while picking was besl IeIt to agricultufal workerc, it Lt,as

the post-pickingactiviiies ginningand pressing ihatgenerated unev€n qualiiy. So, tuvind embedded qualiiy

into the process by deploying a 150-strong workforce of

its own to supervis€ he buying, ginning, and pressing

proc€ssat cotton farms in Punjaband Cujarat.

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QUAIITY ON TBE SHOPFLOOR

a6tt-'"').',,!jid"i

f;n 16,';;)

I &Pe$nsI imanaeom'lmme ILlltd I \___J \,J

HOW ABfu'lNDENSURES

F;;Cl -M"""d 6;'r,0 f""dQ r6*ffi;i)| | rBp' f l i0nor| | cherr insI moni 'o,l lordrsandll._-r[ryM9 l. _J L_J1.9..!!/

f__lr,.r.,r-.,,e [-lo',n,*,,*

The next step was to redesign the manufacturing

process to include quality checks at every step. Today,

Arvind's 8.5-million-metre xport orienteddenim plant at

Khatraj in Cujarai is laid out in a U : the raw cotton

enters at one end and is progressively carded, drawn,spun, warped, d9ed, sized, woven, finished, inspected,

and packed before being despatched lrom the other end.

Explains C.R. Dwa anath, 40, g€n€ral manager

(manulacruring) : "Based on our experience. we

concluded hat materials lows are like energy flows. The

trick is to optimise hem."

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During the eight years that Arvind took to bring its

product upto its global customers' standards, the company

followed a problem-solving cycle on the shoplloor. The

ouiput was examined or defectsi he defectswere traced

tack to particular stages of the manufacturing process;

appropriate quality checks were installed at those stages;

and the output was re-examined to test the validity of the

qualiig control installed.

For instanc€,when productexamination evealed oo

many variations in the diam€ter of the yam, Arvind

installed an ele.tronic ege to scan each thread ol garn

being spun out before it was dyed and woven. If the

coefficieni ot variationat any stagego€sbeyond pre'set

specifications, the spinning line stops automatically.

Similarly, when the indigo dyed d€nim displayed too

many variations in shade to be acceptable, engineers

devised an automatic dousing and dyeing process, with

built-in alarms that go off whenever the quantity of dy€

vanes.

Using this approach, Arvind has installed qualitycontrol devices to cover viriually every det€ct that it has

identitied. Fabric flaws have been ironed out by identilying .unevenweavingspeedas the culprit and putting in place

machinery to €nsure a consistent weaving speed of

140 metresper minute. Shrinkages ave been controlled

by r€gulating h€ moisturecontentwhenever he denim is

dipped in a wetting agent.

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Most important. the problemof too much extraneous

matier in the denim has been addressed y tlacking the

problem down to the bale-management rocess used

betore the coiton enters the machinery.Being a natural

fibre. found Arvind's workers, cotton is susc€ptible o

variations. So, the mixing processhas been automated

with a robotic device- called he Blendomac.- which

mixescotton from variouscat€gories f balesas per €ach

buyer'sspecifications.

Intent on servicingall its custom€rs'needs, Awind

has d€visedother checks oo. For instanc€, he walls of

the plant have been designed as curved surfaces, rather

ihan horizontal or vertical ones with corners, o ensure

(har cotLondoes nol crrckanywhere.On the shoplloor.ih€y have install€d exhausts at r€gular intervals to suck

out the dust.

Unwilling to rely on th€se automaled checks alone,

the firm has designeda second ine of qualitycontrol ;

regular off-line laboratory analyses of the matenal

produced, ollowed by a manualcheck by trained people

who scan tie finished denim under standard lighting

conditionsand IIag any flaws.

These quality steps arose out of customer

specilicaiionstoo. Intemationallg, abric manufacturers

use a four-point systemof categorising efects bas€d

M S 9 6

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on parameters such as the lengih and the nature of the

yarn - giving th€ buyer the option ol cutting out that

particularstrip oy leaving it in. To conform to th€se

requirements, Arvind had to install manual checking

To back its qualitysystems, he companyhas chosen

a quality focused recruitment and iraining policy. Since

th€ criticalareas on th€ shop{loorhave on line controls,

with a local ar€a network connecting the seven functional

heads in the plant, tota' computer literacy is mandatory.

So, the ninimum quaiification for an entrl-1e\/e1worke-r s

a diploma from an industrial raining institute.

To activate its quality-control devices, Awind

empowers its workforce to shut down macnmesthemselveswhenever he output goes out oi control. So,

ttaining courses are designed to encourage participaiion

and process ownership. Unlike the usuai classrooms,

where trainees fdce the tminer, Arvind s tfaining centre

comprises a cluster of round tab)es, each wjlh jts own

presenlation kjts - a seating design which promotesteamwork. Says Kamal Bagchi, 48, manager (qualitg

control) r "We are in a fast response usiness, o we have

to look at multi-skilling ur p€ople."

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THE QUAUTY PAY-OFF

As thequalityol productsose, rclitszoomedn response

70.08

,r-l

t993-94

r ilH':i:T.

1-92 7992,93

o/oexpected to A{lassglobal cusiomers

41.37

71%

Even as they instilled quality into processes, Lnlbhai

and Roy ensured that the progress towards quality could

be measured ihtough means other than just the quallty of

ihe end-products. 5o, theg commissioned international

consultants, like Switze/land's Gherzi OrganGation and

Germany's Lauffenmulrle,lo carry

out technology and

process audits for improving quality standards.

Building on these sieps, Arvind ev€ntually arrived at

a stage in 1994 \,!here it could s€nd blankets comprising

samples from dif{er€nt balee so that Lrvi strauss could

treat the blanket with waier or chemicals to give it the

desired ook and then indicaiewhich of the bales t would

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7/16/2019 MS- Dec 2005


preler Arvind used. During the intewening period, recalls

Roy, "they had seen every nook and corner of our plant

and ensured hai all oul systems nt€gratedwith theirs."

Ihat is naturai since Arvind is actually part of Levi

Slrauss'own total quality managementprocess,which

aligned ihe jeans-maker's suppliers to its quality

requiremenls. Says Sanjay Choudhuri, 44, managing

ditector, Levi Strauss India r "We expect our key

supplieys to understand our specific needs and lind eval

u,ay ol satisfying them."

And AMnd has made it a point to align rhe cusromer

witb its manufachrring processes by allowing buyers to

help set up its systems.For instance, he $400 milion

Capiial Mercury, a US buyer for its denim, has invested

as much time and effort in developing Awind's systems

as in its own, sending its own teams to help Arvind

tine-tune its hardware and processes. Likewise, Lzvis'

fabric development team from San Francisco has visited

Adind's facilifies seven times in just the last year.

As part of its quality practices, Arvind is using

customef feedback io design new products. Monitodng

relail outlets to track the popularity of different varieties

ot.ieans, ihe company bas starled Jooking at specialised

stretchand mercensed enims.Thesemovesare designed

to plug a perceived quality Sap in product development.

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As Darlie O. Koshy, 39, chairman, Apparel Marketing

and Merchandisingat the National Institute of Fashion

Technology puts it : "While they have bu)li in tunctional

quality, th€re is a definite ag in their ability to innovate

and keep pace with iniernational rends."

A(vind's decision to go in for ISO 9002 cedfication

is customer'focus€doo. Says Rajiv Dayal, vice-president

(€xports) : "lt gives a higher comfort level to the buyer."

Palpable oo is the pay-off from quality.With an 85 per

cent repeat buyrng |ate, the last time ihat the company

had a consignment etumed on quality groundswas in

1991. lis denirn quality has been rat€d in the top ten

percentile on the basis oI indePendent validation by theSwiss company, Uster, which monitors the perlomance

ratings of yarn from companiesacross he world.

ExplainspresidentAnand Parekh,45 , "We figured

out early on that quality wa9 going to be the one

imperative or long-termsustenance.'That's why Arvind

thinks the world ol quality - quite literall!

Questions ;

(a) What are the main elementsof Quality Programme

at Awind Mills ?

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(b) What steps in the manufacturing system has Arvind

built in so that it is capable oJ meeting ihe

company's vision and d€livering the requirements of

its QualitgProgramme?

What were the motivations for Aruind Mills to insiall

a rigorous quality system at its manufacturing

tacilities?

What'Best

Practices'rom the casecan you disc€rn

lrom the quality programme at Arvind ?

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MANAGEMENT PROGII{II,TMETerm-End Examination

December,20O5

MS.97 :

Thhe : 3 houts

INTERNATIONALUSINESS

MoximumMotks 100

(Weishtose0W

(i) There are tuo Sections: A ond B.

(ii) Attempt ony thrce guestions Jrom Section A

which corry 20 motAseach.

(iii) Seetion B is cofipursory 1nd catries 40 ,l,orks.

SECTION A

1. Explain ihe Theory of Compatative Cost Advantage and

examine its rele\rance in ihe context of ptesent day

silualion.

2. "Several of the past MNCS have giv€n way to global

enterprises.' What causessuch changeoversand what

benefits can the latler gjve to sucb enterprises I

MS.97 P.T.O.

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3. (a) "ln designing control mix in an MNE, lt i5 desirable

to consider the atiitode oJ managets towards control

whicb in iurn ls afleciedby couniry culture." Discuss.

ls ihis concept being aflected by globalizationof

businessn the presentsiiuation?

(D Discuss he practicesand preferences f MNCS in

regard to employment and labour relations in host

countrres-

4. (a) A.L. Tung (in his contribution : Seleciion and

Training of Personnel Io( Ov€rseasAssignments)has

proPosed a comprehensive approach to expatr'ale

selection.Discliss he main points of his approach

and cdticallyevaluate hem in ihe presentcontext.

(b) What actjviijesare involved n internationalogistics

How could an intemational lim optimize iislogistics?

5, Explaln any iour of ihe tollowing :

(al Managrnga mulli{oral sral?gy

(b) Ffanchisjng as a method/mode of entry in a foreign

{c) Total Ouaiiiy Management : Its role in international

busmess

(d) Cross-culiuralnegotiationprocess

(e) The emergenc€ l regional rading biocs

(0 Evaluation o{ project perfomance

MS97

7/16/2019 MS- Dec 2005


SECTIONB

6. How ha. clomesric trberatr,"riondrd glob"lisatror ofbusi.r.<s flectpd rdid s nd rcinarion.r the worlo e.onomywith reterence to :

(a) intemational flade ard jnv€stmenr

(b) transferoJ technologg

7. "MNCS are reluctant to engag€ n innovational activity and

R & D expenditure utside heir own country." Comment

on lhjs slate.rn€.ntwjtb specjal rej€rence to developingcounllres.

8. Like overseasChinese,non,residentndians NRls)har€been playing a crucial role in fuelling the industrial groMh

oI lndia. They have the skills, ihe brain-power, and thecirpital io make a diflerence_" Comment and illustrate with

MS,97 3,000

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MS- Dec 2005