MANAGEMENT PROGRAMME

Term-End Examination

December.2O05

M S - l @ :

Time : 3 hours

MANAGEMENT FUNCTIONSAND BEHAVIOUR

Maximum Morks : 100(weishtage 70%)

(i)

(ii)

There are tuo Sectians A and B.

Attempt ony thtee questions lrcm Section A, eochquestion carrging 20 morks.

(iii) Section B is compulsory ond carries 40 marks. t

SECTION A

1. Id€ntifu various responsibilitjes of a professional manager.Hightght any live impodant responsibilitjes ol a managerin an organizational set,up and bring out ih€ir functionalconsequences with suitable examples.

MS-]@ P.T.O.

2.

3.

Exptain with examples the various phases and types of

managerial decision Faklng.

Describe how and why conflict is generated in th€

organization and briefly discuss various mod€s of conflict

4. Having designed the organisation structure, io suit the

specific needs of the company and its eNnronment, on the

basis of most efficient grouping, it becomes desirable to

ensure that thes€ diflerentiated groups are iniegrated

iowards th€ common organisational objectives '

Elaborate and discuss the under\ing issues in this

5.. Writ€ short notes on any three oI the following :

(i) Sustainingleadershipelfectiveness

(ii) Manaserial values and ethos

d {iii} Matrix structure

{iv) Policies and design choices in conirol

M Challengas of change

MS-1o

SECTION B

6. Please read the case and an$rer the questions given at the

end.

Mr- Banerjee is the Chjef Executive of a medium

siz€d pharmaceutical lirm in Calcutta. He holds a Ph.D.

in Pharmacy. However, h€ has not been involved in

research and developm€nt of new products for txo

decades. Though turnover is not a problem for th€

company, Mr. Banerjee and his senior colleagues noticed

that ihe workers on hourly basis are not working upto

their full poteniial. It is a well known faci that they filled

their days wiih rinn€c€ssary and unprcductive activities

and worked only for the sake of a pay cheque. In th€

recent past the situation has become quite alarming as

the organization began to crumble under the weight of

uneconomical effort. The situation demanded immediate

managerial attention and prompt rectificational measures.

Mr. Banerjee kn€w very well that the onlg way to

progress and prosper is to motivate work€rs to p€ak

perlomance through various incentive plans.

One fine moming, Mr. Banerj€e contacted ihe

Personnel Manager and enquired : "What is the problem

t,ith tbe urorkers on hourly basls ? The wage bill shows

that we pay ihem the highest in the industrg. Our

working conditions are fine. Our fringe benefits ar€

excellent. Still these workers are not motivated. What do

MS- l@ P.T,O

th€y require reallg ?" The personnel Manager gave rnefollo\ring reply : "l have already informed you a numberof iimes, that money, working conditions and ben€fiis arenot enough- Other things are €qually ihportant. One ofthe workers in that group rec€ntly gave me a clue as towhy more and more workers ara joining the bandwagonof non-performers'. He felt bad thai hard work andefficiency go unnoticed and unrewarded in ourorganization. Our promotions and benefit plans are tiedto length oI service. Even the lazy workers, accordingly,enjoy all the benefjts in the organization. which, in fact,according to the worker, should go io only those rvhowork hard." Mr Banerjee then wanted the personnel

Manager io look into the problem more closely and findout a solution io the probl€ms of workers on hourly basis.

Questions :

(a) What is the key problem in the case ? What probablymay be ihe "other things" which the personnel

Manger is pointing out to Mr. Ban€rjee ?

(bJ Discuss the problem of motiv?tjon in this case,relating to Herzberg's theory.

(c) What would be your recommendations as personn€l

Manager to tackle the problem in the organization ?

M S t o 1,000

lMctGnMANAGEMENT PROGRAMME.

Term-End Examlnation

December.2OO5

Moximum Morks : 100Weishtose 704

MS-2@: Pre-Revised : MANAGING MEN

Revised : MANAGEMENT OFHUMAN RESOURCES

Time : 3 hours

Note: There are two Sections A and B. Sectlon A hos' ttlo sets. set I is meont Jor students rrho haue

reglstercd prior to Jonuorg 2005 i.e. upto June,2004. Set ll is meont for students who hoDe

registered Jrom Januar9,2005 ond onwards.Attempt any three questlons Jrom Section A. All

' questions corry 20 morks each. Section B is

cotnputsory lor oll and carries 40 morks.

SECTION A

(Sel I)

(Pr€-R€vised)

l. Identily ihe sali€nt f€atures of personnel functions in the

organisational cont€xt keeping in mind strat€gy, structuteand systems. 20

N4s2o P.T.O.

DeIine career planning. Explain implementalion of iheprocess of career planning with the help of examples.

Discuss the salieni features of job analysis. Eiplain whatsteps the HR manager ls required to take lor carrying outthe function of job description.

Identify the iactors leading to indiscipline. Explain thejudicial process of dealing with indiscipline.

Writ€ short notes on any lhree of the following ,

(a) Principles of learning

ft) Behaviourally Anchored Rating Scales

(c) Selecdon crteria.

(d) Morale

(e) Consultaiivemachinery

20

20

5.

M S 2 @

l -

3.

4.

20

20

20

20

2.

SECTION A(Ser ll)

(Rerdsed)

Define and discuss the objectives of Human ResourceManagement. Discuss the chang:ng role of humanresourceE in view of changing social scenario. Explain withsuitable examples.

Discuss the concept oi outsourcing and its cons€quencesfrom HR point of view.

What is workers' pariicipation in management ? Discussthe lactors responsible for its success.

Explain lhe process of coaching. What are lhe condilionsnecessary for effective coaching ?

Write short noteq on any trrre€ ol the following :

{a) Team development

(b) E\ecutivecompensation

(c) Separation

{d) Human resource res€arch

(e) Talent management

MS,2 @ P.T.O.

SECTION B

Please read the following iwo cases and answer thequestions given at the end of each. 40

(A) Case Study

MANAGEMENT DEVELOPMENT

Any efforts and inputs to improve current ar futuremdnagement performance by imparting knowledge,changing attitudes and enhancing skill is calledmanagement development. It is an inhouse activityand includes co-acting, given professional inputs toincrease knowledge and attempts lo change attitudesand enhance managenal skills. The aim of sitchprogrammes is to improv€ the perlormance of theorganisation itself. Th€ Management Developmentprocess consists of (1) Assessins ihe organisationalneeds (2) Appraising Manager's Performance

{3) Developing Manager's perlomance by susiainedelforts...DELTA PRODUCTS''Defba Products is a comparry ma,.tulactufing under oneshed number of products requiring for Housing andBuilding Consblciion Industry. The products includehardware like door knobs, hinger, lock, tower bolts"sanitary fittings and floor tiles. AII requirem€nts of

housing and building construction industry aie

manufactured in different departrnents at tts Bhopalplant. The company wish€s io produce and rratkettop grade products. Mr- Chakravarty, the Director ol

Operations has been on foreign tour for over lhtee

months to see the manufacturing lacilities at differentplants world over Mr Chakavarty's goal is to give to

tvrs-2 @

the industry, wrirld class quality product at competitive.rates and pric€s. His ambition is to make DELm theclass one producer in this activity in lndia._ MrChakravady is a highly qualitied technocrat wiihexcdtent backgrcunA al engneeins, genera) andrnatketing management. He had however limitedexposur€ to Human Resource Managem€nt. You arehired as Manager of Human Resources. Thesupporirng team of highly qualified engineers.purchase managers and marketing managers ar€young and almost all of them are in the age groupoI 25 lo 28 and very enthusiastic. They are excellentas individuals but lack the team spirit and work verytard to excel in their respective specialisedknowledge. Manv problems have come up for lack ofcommunication, coordination, quality managementand delivery schedules. The plant main@nance isbelow average. The inventories are high and theindustrial relaiions poor as none of the managers hadan9 exposur€ io this subject.

You are required to make a comprehensiveManagement Dev€lopment Programme lorManagers and Assistant Managers.

Questions :

(a) How would you plan a programme for theyormg managers ?

(b) How will you test the efsting leve! o{ theirskills, attitudes and team spirit ?

{c) What metiods of developmenial training wouldyou like to use and why ?

Ms-2 @ P,T.O,

(B) Case Study

APPRAISING PERFONMANCE

AII progressive compani€s have some formal or

informal appfaising sysiems tof apptaising theperformance of their employees.

Performance Appraisal is defined as any procedure

that involves assessing employees' performance

against sei standards and, providing feedback to the

employees assessed.

The aim is to motivate employees (a) to improve

their performance (b) encourage for betterperformance above par

The reasons lor perlormance appraisal are (1) For

$alary decisions, rewards, promotion. {2) To review

employee's work related behaviour with a view to

correcting any deficiencies. Appraisal should b€

central to career planning process.

..AJI,IBER PHARMACEUTICALS''

ln a pharma company manulacruring and markenng

drugs and medicines, ihe research staff has

developed a number of new products and

Iormulations which are effectiv€. But at the same

time it has to meet severe competiiion fuonl

stalwarts with loleign collaboration. Mr. Shah, the

Vice President Marketing has a very successful

Pharma Marketing background. He has been with

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the company lor the past 4 9ears. Mr Shah had

made ambitious plans for capiuring sizeable share of

market in. the Guja{at State. The company being

mediurn sized, Mr. Shah had k€pt his marketing

departhent and the marketing team lean and trim.

The fieid sales stafl was given aggressive targets and

were viftuallg pushed to reach the respective targets.

The field staff worhed to their best abilities to

compieie their respective targeis. Mr Shah hadhimself been working hard almost 11- 12 hours a

day. There was no formal apraisal and reward

system in ihe company. During last 5 years more

than 60 Medical Representatives and ihe Aren

Supervisors had left the compang due to

unsaiislactory incrernents and I,romotions. Those

who lefi the company were star worke6. But

Mr Shah did noi care for ihis high turnover He was

over confident that he would be able to hire {reshers

and also select candidates who were not happy

wiih their remuneration in their respeciive company.

Mr. Shah had never communicated to the field sal€sstalf about their perlormance or reasons tor ootrecognising thei{ outstanding performance in a lew

cases. There was on the whole a great

dissatisfaction and good perlormers were l€aving the

Ms-2 @ P.T.O.

Q estions I

(a) What ao you perceive is the basic problem in.AMBER' ?

(b) What are the steps you nill take serially toconect th€ situation ?

(c) In the eveni of your suggesting a PerformanceAppraisal System

(i) How will you decide a suitable system ofappraisal ?

(ii) Will your sysiem include merii, r€wards andpromotions ?

1,000M s 2 @

MANAGEMENT PROGRAMME

Term-End Examination

Decernber, 2OO5

MS-3@ : ECONOMIC AND SOCIALENVIRONMENT

Time : 3 hours Maxinum Morks: 100

(Weishtose 70Vo)

Note , There are turo Se.tions A

a.g three questions Jrcm20 morks each. Section B

cofties 40 matks.

ond B. Attempt

Section A, carrging

is compulsory ond

SECTION A

1. Describe the critical elements oI politicolegal environment

ot business. Explain bn€fly the impact of this environment

on business orgonisations, citing relevant examples. 20

2. While examining the institutional framework tor smatl scale

industries (SSI), comment on iheir contribuhon to Indian

economic dev€lopment. 20

MS-3o P.T.O.

3- Critically analyse the achievements and adverse effecls oI

re$ialory {€mework in ihe course o{ lndia's

industrialisation.

Analyse the trad€ policy re{orms implemented by lndia in

the 90s. What are its implicaijons in enhancing Indias

competitiven€ss in the intematioDal markei ?

Bring out the distinguishing features of Industrial Policy

1991 and its impact on the technology status of Indian

indusiry.

5 .

Ms-3@

SECTION B

6. Bne V des{:],be tbe lndjan Jjnancial sysiem and analyse thesignificance and need for linancial relorms.

7. Write short notes on any t..,o of the following :

(a) EnvironmentMovement

(b) lndustrial Grov"th Expedence

lr) Currenl Account Converhbi|ly

(d) Economic Reforms and Employment

20

Ms 3@ 1,000

MANAGEMENT PROGRAMME

Term-End Examination

Decembet, 2OO5

MS-4@ : ACCoUNTING AND FINANCEFOR MANAGERS

Time : 3 hours

Note : Attempt ang five questions. All questions corry

equol morks.

1. (a) What do you \rndersiand by Management

Accounting ? How does it diller lrom Financial

Accouniing ? Discuss.

Ol Whv does an accountant Jollou., the principle

"anticipate no prolit, provide {or all losses" ? On

which accounting concept is this based ? Explain it

and discuss its significance.

Moxtmum Morks r l00

(Weightase 70qo)

Ms4o P T .O .

2- From ihe following particulars extGcted {rom the books o{Mr. Gandhi, prepare Trading and Proltt and Loss Accountfor the year 2004-05 and Baiance Sheet as on 31'tMafch 2005 after making necessary adjustments .

Bs.

Mr Gandhi's Capital a/c

Stock as on 1-4-2004

Sales

Sales Return

. Purchases

Purchases Return

Carriage Inwards

Rent

Cash with Traders Bank Ltd.

Discouni Received

Inveslments {50,6) as on 1-4-2004

Furniture (as on 1-4-2004)

Discount Aliowed '

Genehl Exp€nses

Salaries

Sundry Debtors

Sundry Crediiors

54,050

23,400

1,44,a00

4,300

1.21,550

2,900

9,300

2,850

4,000

1,495

2,500

900

3,770

1,960

4,650

12,000

7,400

MS4o

Loan from Dena Bank @ 72%

Inieresi paid

Printing and Stationery

Interesi Received

Audii Fees

Frre Insurance Premium

Travelling Expenses

Postage and Telegrams

Cash on hand

Deposits @ 10% as on 1-4-2004 (Dr)

Drawjngs

Adjustments :

10,000

450

1,700

5,600

725

350

300

1,165

435

190

15,000

5,000

(a) Value of stocks as on 31-3'2005 is Rs. 39,300.This includes goods returned by customers on

31-3-2005 to the value of Rs. 1,500 of which noentrv has been passed in the bool€.

{b) Purchas€s include furniture purchased on 1-1-2005for Rs. 1,000.

{c) Depreciaiion is to be p}ovided on furniture @ 13%

M54@ P.T.O.

(dl The Loan Account lrom Dena Bank in the books ofMr Gandhi appears as foliows I

Date Particulars Amountranrculars Rs

31-3-05 To Balance c,/d 10,000 1-4-04 By Balance b,/d 5,000

31 3-05 By Bank a,/c 5,000

10,000 10,000

(tlnterest paid included Rs. 300 paid to Dena Bank.

Inter€st rec€iv€d represents Rs. 100 lrom sundry

debtors and ihe balance on investm€nts and deposits-

Proude lor interesr payable to Dena Bank and lor

interest receivabl€ on investmentg and deposits.

Provide r€serve for doubtfr.:l debts at 5% on the

balance under sundry debtors. No reserve needs to

be created lor th€ deposits.

What is a Jlexible budget ? How does it diJfer trom afixed budget and a rolling budget ? Erplain th€ utilityol a llexible budgel.

Explain th€ tbree impoltant control ratios to judge

the actual per{ormance with the budgeted

Performance.

\g/

(h)

3. (a)

(b)

MS4o

4. (a) "Return olr lnvestment is a primary ratio but it is noifree from ambiguity." Discuss this stalement andexplain the various versions o{ ROI as used in

(b) What is the role of financial maoager \rilh regard todividends and divi&nd polica ?

(cl How does Depreciation act as a tax shleld ? Explainwith an exampie.

From the following particulars relaijng to ABC Ltd.,prepare a stalernent showins Changes in Working Capitalalong with Funds Flow Statem€nt :

5 .

Particulars31st December

2004 2005Current Assets

lnvestments

Land

Plant & Machinery

(Accumulated Depreciation)

Patents

Total Assets

Current Liabilities

12Dk Debentwes

1470 Debentures

Equitg Share Capital

Reserves for future loans on inlestmeris

Retained earnings

Total Liabiiities & Capital

1,35,000

15,000

9.000

81,000(24,000)

76,200

1,27 ,20021.,4009,000

1,05,000

t26,000).12 ,600

2,32,2002,49,200

24,60043,400

90,000

6,00068,200

34,800

39,0001,00,000

3,600

71,8002,32,2002,49,200

Ms4o P.T.O.

Add,tlonol Infof'nation.

(i) A r€conciliatjon oI the balances in retained earningsis as tollows :

Beginning Balance

Net Income for c$rent yeat

AwaYd received frcm settlement ofpatent inlringement case

Dividends paid

Ending balance

68,200

3,000

15,600

{15,000)71,800

(i')

{iij)

{iv)

Net income of the current year 2005 includes a loss

oI Rs. 4,800 on ihe sale ot a -palt of plant. Theplant was of the value of Rs. 19,000 at the

beginning of tie yeat accum\rlated deprecationbeing Rs. 6,000.

Investments of Rs. 15,000 was sold during the year

at a loss. The loss was charged io the reserve for

future losses on inveslments and did nol appeal on

the Income Statement.

During the cLrffent year 12a/o debenfures were calledfot rcAemption. Most of th€m were retunded through

tbe issuaDce ol new 74o/o debentures and the restwere rerred Jor cash

(vl The equlty shares were issued in exchange .ofmachinerv. The resi of the plant and machinerywere purchased for cash,

M54@

6. The trading resr ts of Ashoka Ltd. fof the fiFt year olbusiness which ended on 31st March, 2004 are asIollows r

Bs.

Sales (at Rs. 40 per unitl

Less Mateyials

lnbour

Vatable overheads

Fixed overheads

Pro{ii

32,00,000

12,00,000

4,80,000

2,40,000

5,00,000 24,20,000

7,80,000

Duing Il',e year the factory has been working at 50o/ocapacity. The marketing manager has estimat€d thal theqt/aniity so)d could be doubled dur;ng 2004-05, il iheselling price was reduced to Rs. 35 per unit. No changeis anticipated in unit va/iable cost but cefiainadminisirative changes to cope with additional volume ofwork would incrense tix€d ovethead by Rs. 40,000_

You ore rcquired to :

(a) E\,nluaie the marketing manager's proposal, and

O) Assuming ihe sllling price wns reduced as propos€d,unii variable cost remaining as in 2003 - 04 andIixed overh€ad increased by Rs. 40,000, calculatewhat quantity would need to be sold in 2004 ,05 inorder'io yield a ptoiit Rs. 10,00,000.

MS 4@ P T O -

7. (a) What do you understand by variance analysis ? Why

are the varjances compur€d ?

(b) XYZ Lid. which has opted standard costing,furnishes lou the {ollowing jnformation :

Slandard

Material for 700 un s of

finished products

Price of materialsActual

Output

Openins stock

Purchases 3,00,000 kg.

Ciosing siock

You are requled io calculate :

la) Direct Matenal Usage Variance

(b) Direct Materiai Price Varianc€

1000 kg. R€. 1 per kg

2,10,000 unitsNil

Ior k. 2,70,00020,000 kg

8. Wriie explanatory noies on the following:

{a) Tradiig on equity

(b) 'Ftst in. First out' vs. 'Lasi in, First out'

(c) Cash cycle afld Operating cycle

(d) Rights shares and Bonus shares

MS-4@) 1,000

MANAGEMENT PROGRAMME

Term-End Examination

December, 2OO5

Maxinrm Mdrks : 100

. (Weishtose 70%)

Note : Section A has fiDe questions that cairg 20 marks

each. Attempt any three questions from this

Section- Sect'ion B is computsory ond carries

40 morks.

SECTION A

1. {a) Explain Product Design. How do€s Product Design

influence Proc€ss Design ?

MS-s@ : MANAGEMENT OF MACHTNESAND MATERIALS

Time : 3 hours

Ms-5@ P.T.O.

(b) Processing times (including set-up times) and due dates

for six jobs waiting to be proces*d at a work centre

are given in the following table :

Determine :

(i) the sequence of jobs

(ii) the average flow time

(iii) tl"€ aueEge job lateness, and

(ivl. the averdge number of jobs at the centre,

each oI these rul€s :

{a) SFt, and

(b) Earlier Du€ Date.

Describe ihe product selection process with

help of an €xample of a new small car.

for

10+10

the2. (a)

JobProcessing Time

(Days)Due Date

(Days)

B

C

D

E

F

2

8

4

10

5

12

7

't6

4

1 7

15

18

Ms.5o

(b) A producer ot f€lt-tip pens has received a forecastof a demand ol 30,000 pens for ihe comingmonth from its marketing department. Fixed cosis ofRs. 2,50,000 per month are aliocai€d to ihe felttipoperation, and variabie costs are Rs. 5 p€r pen.

(i) Find the break'even quaniiv if p€ns sell fotRs. 15 each.

(ii) At what price must p€ns be sold to obtain amonthly profit of Rs. 20,000, assuming thatesiimaied d€mand materialises ? 1O+1O

(3. (a) You have been retained as a consultant for

establishm€nt oI a steel plant. Discuss at least tenimportant factors that 9ou consider are relerant forIocahng a steel pla']t. Give examples.

Factory Buiit Homes, Inc. (FBH) purchases paneutngcomlronents from a nearby Westem Mills for Rs. 5per unit. It expects to use about 4,000 units dunngthe coming year. FBH estimates thai it costs Rs. 30to place an order and Rs. 1.50 per unit per year forcarrying and storage costs. Westem Mills can provideFBH with immediate delivery of any r€asonablequaniity.

{i) What is ihe most economical quantity for FBH

iii) Ho\r mang orders per year should be placed ?

{jji) Whai is the toial yearl_v cost associated withordering, carrying and purchasing the EOQ

{b)

10+10

P.T.O.MS-5@

a. (a)

5. la)

ib)

(b)

Supplier selection and supplier relations are

consider€d imponant for the p}tchasing departhent

Should the quaLity assuranc€ department €ver

become involved in these is$es ? Why or why noi ?

The v,,areho\rse manager at the Textile lmport

Ceoter eltinrates that the purchase o{ a

Rs. 7,00,000 forklift would save 2 hours per shift of

labour time. The firm works 2 sh'fis per day and

300 days per year. If the labolr cost io the firm

(including benefits) is Rs.320 per hour, how long

would ii take lor the forklift io pay lor itsell ? 10+10

What is ihe cost ol quality ? Explain acceptance

sampling. Disc\rss sampling plans.

The ume .equired io complete each ol six jobs on

two machin€s are shown in the tabl€ below. Each job

must Jollo\x the same sequence, beginning wilh

machine A, and moving to $achine B-

Job

BcDEF

Time (houts)

Machine A Machine B

30 80720 10050 9020 6090 30110 10

(i) Find the s€quence that will minimise total

compleijon time.

ili) Coostruct a chart ol rhe resulting sequence and

MS-5@

find machine B's idle time. l0+1o

SECTION B

A project contains the following activities aLong with th€irpred€cessors and times for completion,

li) Draw the network diagram.

(ii) Show the early start and early finish times.

(iii) Find th€ critical path.

7. Write short notes on any tour of th€ following :

(a) Learning Curve

(b) ABC Analysis

(c) Robotics

{d) Cons m€r's Risk

(e) Bath tub curve

(0 P|eveiiiveMaintenance

8+6+6

4x5=20

Activity Immediate Predecessor Tim€ (Days)

B

cD

E

F

G

H

I

B

cC , D

E

F

G , H

5

4

6

2

1

7

8

4

3

MS-5@ 1,000

MANAGEMENT PROGNAMME

Term-End Examination

December.2OO5

Maximum Mqrks : 100Weishtase 700/d

MS-6@: MARKETING FOR MANAGERS

Tlme : 3 haurs

Nole I

(I) Attempt ony three guestions liom Sectlon A.

(iil Sectlon B is compulsory.

(iii) All questions carry equal morks.

r. (a)

SEC?ION A

Marketing success largelg d€pends on the effectiveSTP strategies adopted by the lirm. Discuss the

above statement with t\ro examples of your choice,

What would be suitable segmentation basis fot thefollowing and why ?

(i) Premium brand of after shave lotion

{ii) Rs. 1 lac amall car proposed by a leading lndian

cat manutafiu{€r

(b)

Me6 o P.T.O.

2. (a) What is Marketing R€search ? Discuss its scope andmajor adlantages that Iirms derive by undertakingthis activity.

{b) Wbat are the cdteria marketers rnust evaluate befor€seleciing a brdnd name ?

3- {a) Sal€srnanshjp is jn-built with every attractive packing.Do you agrce with the above statement ? Discusswith the h€lp of suitable examples.

(b) Bnefly discuss the Iactors ihat marketers shouidconsjder whjje deiermining ihe promotion mix {ortheir offerings, giving suitable examples.

4. Write noles on any thtee of fhe ldlotwtg :

(i) Hou,ard-ShethModel

(i0 Characteristicsolorganisationalconsumers

(iii) Routinisedresponsebehaviour

(iv) Functions of Retailers

(v) Ad!"ntages ol cybef marketing

Ms6@

tSECTION B

5. Sh-dy the case given below and an$r,er the qkstions given

at tbe end.

Mr. Harish Jain, CEO oi Eneigetic Enterpdses, has

estabiished the firm for the manufactur€ and marketing ot

an innovative product. The firm earned a repuiation of iis

product wjthjn two yeays of its inception and enjoyed

monopoly position in the mark€t lor its product. Now it

has a turnover oi about Rs. 80 crores.

Three yeats back, some firms entered the market

and offered cheap substiiutes which were of better quaiity.

This year, Mr. Harish Jain is wonied because about 40%

of the markelshare has already b€en iaken away by the

new firms and he is not able to check this trend-

Mr. Jain has been looking atter both production and

marketing functions though finarce is being looked afier

by a finance manager having a professional degree in

chartered accountancy. Mr. Jain has recently lowered the

price of his p/odutt to fight corDpetjtion, but even this

has not helped. He has now approached yotl for adrice

to stabilise his sales volume.

Ms6 @ P.T.O.

@uestions I

ia) What is tle orientation of Mr. Jain in seliing hisproduct ?

(b) What environmental factoF have cau*d a worry toMr. Jain ?

(c) As a consultant, what strategies will Vou suggest tocheck further tall in marketshare ?

MS-6 o 1,000

MANAGEMENT PROGRAII4ME

Term-End Examination

December, 2O05

Maximum Marks , 100

(Weishtoge 70Yo)

MS-7@: Old : INFORMATION MANAGEMENTAND COMPUTERS

Revised : INFORMATION SYSTEMSFOR MANAGERS

Tine : 3 hours

Note :

(i)

lii)

There ore two sets ol question paperc i.e. Set 1 &

Set 2. get 1 is for those students uho hoveregistered lor this course prior to July 2004.

Set 2 is Ior those students uho haue registered forthis course lron July 2004 onwatds.

There are two sections in each set Attempt any

three questions Jrom Section A ot' edch set.

Section B is compulsory.

(iiil A total ol tioe questions hooe to be attempted.

All questions corrg equal marks

Ms-7@ P.T.O.

l .

Ser I (Old Coutse)(lnformation Manag€ment and Comput€ls)

SECTION A

(a) "The lufure bblongs to knowledge workers.'Explain.

(b) Explain the use ol Lotus 1-2-3 in modem businessgrving exarnples.

"Modem day management actMiies involve manycomputer appllcations." Explain. Discuss the use ofcomputers in Human Resource Managernent.

Discuss the role of MIS at different le'"€ls of management.Suggest a suitable structure for MIS clearly giving thedesirable characteristics of MIS.

Explain Decision tables and Decision trees. Der,elop a florchart for some activity that you are lamiliar with.

1 0

10

2.

3 .

4.

20

20

20

205. Using graphical meihod, find out the minimum tota' cost

for ihe following

Min im ise z=3x1 +5x2(in Rs.)

Subject to

\ + x 2 = 2 0 0x l s 8 0

xz> 60

x l , x 2 > 0

Ms7@

6 .

SECNON B

Rolta Co. has three planis X, Y and Z, which can supplyto the distributors located at A, B, C, D and E. Monthlyplant capacities are 80,50 and 90 urfts respectively.Monthlg requirements of distributors are 40, 40, 50, 40and 80 units r€speciively. Unii rransportarion cosr ic givenbelow in Rs.

Find out an optimal drsrribution Ior rh€ company inord€r to minimise the total transportation cost.

7. Five different machines can do any oI the five requiredjobs. with different profiis resulring lrom each assignmenras shown below. Find out maximum profit through optimalassignment. 20

r

FromTo

B c D E

X 5 8 6 6 3

4 7 7 6 6

z 8 4 6 6 3

JobMachine

B c D EI 30 40 2a 402 40 24 27 2 1 36

3 40 32 33 30 354 25 38 40 36 365 29 62 4 1 34 39

Ms-7o P.T.O.

(Intormatioo Systems for Managets)

SECTION A

1. (a) Discuss lniernet and its application in buslness How

does computer help us in decision making ? Give

examples. 10

(b) Explain diflereni hardware components of a

computer. What ar€ various types ot computers ? l0

2. Discuss the importance of MIS in modem organisations

What are computer viruses and how can they be

Prevented ?

(a) What are the various phases of a sofi'r,/are

development cycle ? Explain.

(b) Discuss applications ot computers in Financial

Management function. Give examples

Explain the process of Systems Analvsis and qesign What

are the main requirem?nas lor implementai,on and

maintenance of the designed system ?

(a) Give the f€atures of Visual Basic and its applications

in industry.

(b) Why has JAVA become so popular ? What are its

leatur€s ? Give its application

20

3.1 0

1 0

4 .

20

1 0

1 0

MS-7o

SECTION B

6. Write descriptive notes on :

(a) Neural Nehrorks

(b) Artificiallntelligence

(c) Daia Warehoirsing and Data Mjning

(d) Value and Cosl ot lnlormation

?. (a) Explain ERP, CRM, SCM and BPR. How bave they

helped organisaiions ?

{b) What are the main differences between DSS, MIS

and EIS ? cive lew examples.

,/

1 0

1 0

Ms-7@ 1,000

MANAGEMENT PROGRAMME

Term-End Examination

December, 2OQ5

M$€@ : OUANTITATTVE ANALYSIS FORMANAGERIAL APPLICATIONS

Time : 3 hours Maxinum Marks : 100

(Weightase 70o/o)

(i) Section A hos 9ix questions, each ctlrrying

15 marks. Attempt ong four.

(ii) Section B has two questions. Section B is

compulsory and carries 40 marks.

(ij, Stdttsftco/ tobles may be supplied on demand.

MS-B@ P.r.o.

SECTION A

1. End the qtrartile deviation trom the Jollowing data :

3.

Class Inlerval Frequ€ncy

0 - 1 5 8

1 5 - 3 0 26

3 0 , 4 5 30

45

6 0 - 7 5 '20

7 5 - 9 0 77

90 - 105 4

ll 2 perceni of the books bound at a cefain bindery have

defective bindings, us€ the Poisson approximation io tbe

binomial distrjbution to determine ihe probabilitg that five

book oI 400 book bound by this bindery, will have

defeclive bindrngs.

Gve some situations where ihe exponentja' distribution

has been found useful. A highway petrol purnp cao serve

on an average 15 cars per hour. What is the probability

tl]€t lor a Wftic.]lar car, fhe time taken will b9 less than

3 minutes ?

MS,e@

5 .

The coef{icient of rank correlation of the mark obtainedby 10 sfudenis in hro particuiar subjects are found to be0 5. lt was latet discovered th;t the diff€r€nc€ in ranl.s intwo subjects obiained by one student was wrongly takeD as3 ihsiead of 7. What should be the co{tect value oJ thecoefficient of Rank correlaiion ?

An oil cornpany claims lhat less than 20 percent of all carowners have not tried its gasoline. Test this claim at 0 01leuel of significance, if a Endom check reveals that 22 of200 car owners havrz not tried the oii company's gasoline.

6. Write short notes on any ttrre€ of the lollowing :

(a) Sequence and Sertes

(b) Census and Sample

(c) Criterion of Optjmism

{d) Power CuN€

(e) Use of Autoconelation in identilying time seies

'Ms-8@ P.T.O.

SECTION B

?. In 16 one hour test runs, the gasoline consumption of a

heaw d\rly engite aveftged 16 4 gallons {,ith a standard

deviation o{ 2 1 gallons. Test the clalm fhat the averag€

gasoline consumption of this engine is 120 gallons per

hour.

8. In a survey oi populaiion, it was fotmd that 40% of the

maie population were il)it€rate ll th€ irend continues. work

otd the probabiliiy that out of a random sample of

2,00,000 male populaiion, ihe numb€f ol illiterates win be

(i) iess thao 79,500 (ii) morc than 80,500.

Ms-8o 1,000

MANAGEMENT PROGBAMME

Term-End Examination

December,2005

Maxiatm Morks : 70O(Weightose 70%)

Note : This p{rper consists of thrce Sections A, B ond C.&ction A is to be.dttempted by students registere.d

for MS-9 prior to Jdnuary,2004 i.e. upto Jul9,2003. Section B is to be attempted by studentsregistercd Ior MS-9 Jrom January, 2004 onudrds.Attempt an! three questions Jrcm Se.tion A or Bd€p€nding upon gour ddte oJ rcgistrotion.Seclion C is conpul^ory for all. Section Ccomprises of 40 marks while Sections A and Bcomprise 5 qrestions oJ 20 marks each-

P . T . O .

Ms-9 @ : MANAGERTAL ECoNoMtcs

Tihe : 3 hourc

Ms-so

2.

l .

SECTION A

Whai are the impotiant characteristics ol perfeci

compeiiiion ? Explain (with the h€lp ol graph) the protit

maximisinE outpui under perlect competition in short run.

D€scrib€ the followjng in lerms of short-run costs i

(a) Total cost

(b) Average lixed cost

{c) Average variable cost

{d) Average iotal cost

{e) Marginal cost

Explain ihe optimal prcduct mix in the case ol a joiDtproduct firm.

Discuss Price and Output deteymination under perfect

coinpetition and monopolistic competition in the long run-

(a) Explain the Dscounting Pnnciple with examples.

(b) Distinguish bet\reen Demand function and Demand

3.

4.

MS.9@ 2

l .

2.

3 .

4.

SECTION B

Piscuss, with suitable examples, how managerial econornics!s an integral parl ot business activitg.

What are the major marketing approaches io demandmeasurabenl ? Examine.

Discuss in detall the optimal combination of inputs in thelong run.

Define cartel arrangement. Explain profit maximizationunder cadel anangement,

Write shon notes on any thre€ of l}le following :

(a) Value Maximisaiion

{b) Produciion Possibilit Cu'!e

(c) ExponenttalSmoothing

(d) Income Elasticity of Demand

(e) Strategic Entty Baftiers

Ms e@ P . T . O .

gECTTON C

6. Stafe wheih€r th€ followlng statements ate ttue ot to'lse. ,

Jus(iF,J your answet.

(l) Scale is a shori run concept

The slope of the short nm produciion function is

equal to average product oi variable input.

The average product and marginal product oI

variable inptrts are equal at ihe level o{ output that

corresponds to the infl€ction point of the short run

production lunctlon.

The long run totai cost curve is derived lrom the

firm's expansion path.

In ger,eml, a firm should continue to hire addiiional

units of an input so long as the marginal revenue

product o{ the inp\rt is greaier thaD ihe marginal

resource cost of the inpul,

20

(it

( i i i )

IM

MS-9O

7. (a) Given ihe Jotlo\ring data, calcrrate th€ price eiasticigof demand rrhen pfice increases from Rs. 3 00 perunit io Rs. 4 00 per unit. 10

Px ber unit) Qx

750

1250

2000

3250

4650

8000

(b) Consider the {ollowing d€mand and suppiv ihctions :

D e m a n d : 2 0 0 - 2 P

S t r p p l y , 2 0 + 4 P

What are the equilibrium price and quantity sold ?

Ms-s@ 1 ,O00

MANAGEMENT PROGRAMME

Term-End Examinalion

December, 2OO5

MS-10@ : ORGANTSATIONAL DESlcN.DEVELOPMENT AND CHANGE

Time : 3 hours Moximum Marks : 100(Weishtose 70%)

Note : There ore tuo Secttons A ond B. Section A hastuo sers. Set I is meont Jor the sludents who haueregistercd Jor MS-10 prior to Julg 2004 i.e. uptoJanuorg. 2004. Sef 1l is meanl lor the studentst ho houe registered lor MS-10 for Julg, 2004semester onu)ords. Attempt any four questions

lrom Sectioh A. AII questions carrg 75 morkseach. Section B is compursory Jor oll, ond coffies

' 40 morks.

MS,lo o P.T,O.

SECTION A

Set | (Pre-Revised)

l. Compare the struchne of Matrix with Mechanistic

organisations. How are they relevaDt ? Cite suitabl€

examples,

2-

5.

3.

4 .

Describe Bureaucraiic and Scientific Management theoriesLvith relerence to organising work and its significance inthe present scenario-

Describe the relationship behveen strategies ol

organisational development and structue.

Ljescribe lhe skills required by a change agenr in rheorganisational context with rclerence lo technological

Wrile shorl nores on any thrce ol the following :

(i) Formal vs. Informal organisation structures

(ii) Alternative forms of Work Restructuring

(iii) Force Iield analysis

{iv) Ofganisation vs. Institution

(v) Purpose of organisaiional analysis

MS-10 @

SECTION A

Set ll (RevGed)

l, Descrjbe in detail the importani factors which alf€ct

organisation design. How are they related to organisationaleffectiveness ?

2. Describe Hybrid and Virtual organisational structlrres and

their merits and demerits. Cite examples. Where are such

structur€9 effective ? Discuss.

3- Describe the €merging trends in work organisations.

Discuss how interview method is useful as a diagnosiic tool.

Provide suitable examples {rom orgaiisational context.

Write .hon notes on any tbr€e of the ,ollowing :

(i) Managing resistance to change

(ii) Role analysis

(iii) Ergonomics

(iv) Boundarylessorganisation

(v) 7 S model to understand organisation

4.

t\ls-l0 @ P.T,O

6 .

SECNON B

Read the case carelully and answer the questions thatfollow :

Ramesh Ambani was appointed as OperationsPlanning Manager in the Surepleasure Airlines last

monih. Immediately aiter reporting to his new job,

Ramesh recognised that there were dilliculties with the

time control section. This section consisted ol sixteen

J'unior cierks, eight senior clerks and a supervisor wfio

reported to him.

The basic function of time control section is to

maintain records of all rotatable parts used on a fleet of

eighty-Iive passenger aircraft. Records rellect the date on

which a part was installed or removed and iotal aircraftIlying lime. To mdintain identification, serial numbers are

recorded for each controlled part. The Airport Authorityrules require strict control of parts having limited life.

Parts that have operated beyond their approved limit bave

to be removed and overhauled.

The problem that Ramesh noticed was that there

were numerous instanc€s of irnccurate records. The

recotds were in violation of Airport Authority regulations

and poor record-keeping resulted in excessive overhaulcosts. When Ramesh studied the situation, he observedthat the employees had formed an extremely strong

Msro @

inlormal work-group. The members woujo accept orrqecl new eiplogees into the qJork-group based onfactors completely unrelated to the iob. Some outsidersobseru€d that il a nerv employee's behaviour was nor lntune with ihe infofially determined norros, he or she hadlittle chance of s.uccess wiihin the group.

The group members anarged for coDtributorydine-and-dance palty every week-end and had a greattime tog€lher. Those who did not like io particjpat€ andsocraiise were ignored and 'nd& ro {eet uncomlonable lothe potnt that they would quii the organisaiioD. Thisr€sulted in an annud tumover |ate of apptoximatelg 200petcent. Ramesh realis€d ihat this probtem had to besolved immediaiely or major problems could result for theSurepleasure Airlines ln future.

Qa€$tiors

(a) What are the dgs{unctions of.infoymal orgarisarronin the Surepleasure Airlines ?

h) Could there be any bene{its of inJormal organisaiionin this company ?

(c) Whai $uggestions !^rould you give to the manag€mentof tlts compang to cope wiih tbe inlorma)organisation ?

1,000MS-lo @

MANAGEI'{ENT PROGRAMME

Term.End Examination

December.20O5

MS-llO: Pre-Revised : CORPORATEPOLICIES AND PRACTICES

Revised : STRATEGIC MANAGEMENT

Time : 3 hours

Note : There ore three Sections A, B and C. Section A is

meant Jor the students ..lho hooe registered forMS'tt : Corporoie Policies ond Practices prior to

Januory 2005 i.e- upto July 2004. Section B is

mesnt lor the studenti who haw registercd JorMS17 : Strotegic Manogement Jrom Januory

2005 onwords, Attempt any three questions JromSection A or B. AII questions carrg 20 matks

eoch. Sectian C is colnpursory lor all, and carries

40 marks.

Maximum Morks i 100

(Weightoge 70Vd

M S 1 1 @ P.T.O.

1 .

4 .

SECTION A

. (Pre-Revised Course)

(Corporate Policies and Practices)

D€scribe the role of BODs in th€ ov€rau performance ofthe company. Discuss Erious measures to improve theeffectiveness of BODS-

What do you understand by "Mega" environment ? Discussthe different constituents of th€ Mega environment.

Explain Porter's framework to anaDse industiy structure.How does it help in d€termining the attractiveness of anindustry ?

Distinguish bet'r,,e€n related and unrelated div€rsification.Explain with the help of examples.

What are the causes of cor?orate decline ? Briefly discussstrategies to arresi the decline.

20

20

3.

20

M S - l 1 o

l -

SECTION B

(Revis€d Course)

(Strategic Managem€nt)

Explain the \,"rious steps involved in Strategic Managementprocess in a single business firm.

Explain the following I

(a) Types of resources

{b) Strateglc imporiance ol resources

Discuss the importance of differeniiation .strategg in thepr€s€nt compeiitive. environment. Explain taking intoconsicleration its advantages and disadvantages.

Every strategic alliance incurs certain costs and comes witha s€t of risks- Explain any five costs^isk of entering intoa strategic alliance.

Corporate culiure plays an important role in the success ofan organization. Explain giving suitable example.

2.

3.

4.

20

20

MS-11 @ P.T.O.

SECTION C

6, Read the case carefully, analyze it and ans,wer thequestions that foflow : 40

NEECO IIMIT.ED

At the end of the recent fivejear plan, it was

estimated that there would be a considinble demand inthe manufacturing capacitg of power transformers in the

country. It was further projected that the gap between' demand and the manufacturing capacity would be even

larger in the subsequent plans. Thus, anticipating th€

country's demand in future, Ne€co Limited decided to setup a new unit for manufacturing transformers- This was

in addition to the manulacturing capacitg already built upat one of the existing factories.

Formal Planning Process

Formal planning was introduced jn ihe very filst year

of the commencement of activities at tbe new rmit, Theplanning process at Neeco Limited included the setting up

of broad objectives and the preparation of the three yeat

fotecast. In a letter addressed lo.departmental heads, the

General Manager, Mr. S.K. Patel said, "The tjme hascome to put down on paper the objectives and goals olour organisation and to develop a proper framework

whereby we can take a more systematic look at the future

we are heading for. This, I believe, can be achieved by

MS- l1 @

III

iNoh,erient and cooperalion ol all ihe departmenlal

heads in putting into practice a cultufe of planning."

The responsibility for developing a three year plan

\ras entrusted to th€ planning cell, which reported dir€ctly

to the Generdl Manager. There was a separate

controller's oflice which looked after budget preparation

and the subsequent monitoring of actual perlormance.

Goal Setting Proc€ss

Planning began each y€ar in the month of April wiih

the €stablishment of goals by the top management. The

top management group consisted of the General Manager

and his various Iunctional h€ads. The goals w€re set both

in qualitative as w€ll as quantitative terms. The

quantitative goals were in tenns of growth in sal?s and

profits- Com$€nting on lh€ quantitative goals, Mr. Patel

observ?d that : "ProJit is th€ primary goal".

The planning cell, after collecting dl the infotmation,

consolidated and integrated the data and prepared

op€taLing resull< and ca-h llow proiections for rhe three

MS, l1o P.T.O

Exhiblt-lNEECO LIIfITED

Ia) A Tempotul Oueniea of the plannjng process

Date

1st Week of April

4th Week of April

lsr Week of Mag

2"d Week ol May

Steps in Planning

Planning call sends felevantIormats to departm€nialheads, with deiailedexplanations,

By the fouth week, the variousdepartments send th€ lormatsback to the planning cell, dulyfilled.

Planning oflicer compiles allthe data and puts it in anintegrated form

The tirst draft ol the plan isdiscussed in a managementgroup meeting, whereinseveral suggestions emergeand the &aft is thoroughvrevised by resoleing iheconflicting objectives ofvarious deFartments.

The final dmft of the plan isreadg and is sent to corporateheadquarters,

MS- l1o

(b) R€sponsibiJity tor Plan Preporotion

Segment oI the Plan ResponsibiliB'

Sale PIan (Order Book Position) Manager {Marketing)

Produciion Plan Manager (Production)

Materials Plan Materials Manager

Manporrrer Plan Personnel Manager

Township Development PIan Manager (Projects)

Integration ol VariousSegments of Plan andFinal Plan Document Planning Olficer

Be{ore finalisins the plans as prepared by the variouslunctional/department heads, a detailed discussion washeld. Durjng these discussions, ,"?rious departmentalheads explained the basis o{ their res!,ective plans. Thefinal plan was arrived at afier resolving the conflictingobjectives of various departments.

The Ptanning-Budgetirg Linkage

Immediately aft€r the plan was approved b9 theManagemeDt C,roW, the process o{ preparing a deiailedbudget for the next year was initiated. The three yearplan set otrt the broad objectives for the first year andprojections lor the next txo yeays. A detailed exercisehad alr€ady been conducted in preparing the broadobjectiv€s, which served as a basis for th€ preparation of

MS, l l @ P.T.O.

a detailed budget for the ensuing year. Thus the first year

of the plan document, with necessary mcldifications,

became the budget for the next year. The three year plan

document and the budget w€re, therefore, -closely

inter-related. lt was said that the preparation of a three

year plan was, in a way, a process of creating an

oiganisational climate for a rigorous and time'consuming

Ptocess of budgeting.

R€actlons of Execuiives

A tew executives from the produclion depariment had

the following comments to make with regard to th€

formai plan : "The forms are lime-consuming and

tircsome. Here, when w€ are already ov€rbudened with

our daily roltine, who has got time to fill in figures in

these lengiby forrns. We are more worrjed about

day-to-day problems, rather than about the 3rd year from

Executives from other departments commented :

"Planning has led to greater participation in the

managem€nt process and thus, has created a culture of

rnanagemenl by participation. The involvement oI all of

us in the planning process has given us an opportunity to

take a wider p€rspective and has broadened our horizon.

Some of us now undelstand each others ptlrblems in a

better way. This has paved the way jor bettet mutual

coordination."

MS-l1 o I

"Some of us now leel more confident of taking up

higher responsibiliti€s in tulure. Planning has helped togroom lead€rc. lt has tumed us from technocrais to

managers and has prevenled us {rom becom:ng

bureaucrats.''

"Figures by themselves are not very impodani.

Figures without unde/standing the prcces9 ol how io

obtain them, are irrelevant. What is importanl is theprocess oI plannlng, rather than filling th€ ftgures in

prescribed formats. This process had led to greater

management participation in shaping the future. Planning

has become a frame of mind and a way oI thinking. It

has become part o{ our managemeni process,"

Que$rions :

(a) Evaluate th€ lormal planning process at NeecoLimited.

{b) Critically examine the reactions oI ihe variousexec\rtives as statgd in the case.

{c) Discuss the imporiance ot a three year plan.

I

M S . 1 l @ 1.000

t*"'@-lMANAGEMENT PROGRAMME

Term-End Examination

December,2OO5

MS-21@ : SOCIAL PROCESSES ANDBEHAVIOURAL ISSUES

Time : 3 hours Moximum Morks : 100

(Weishtsge 70o/a)

(i) There are tuo Sections A ond B.

Section A hos two sets: Set I is meant lor the

sfudents l,rho hooe registered lor MS21 prior to

Januaty, 2004, i.e. upto July, 2003. Set II is meont

Jot the students who ha)e registered lor MS-21

Jron Jonuary, 2004 onwsrds.

Attempt ony totn questions lrom Section A. A1l

questions carry 15 ntarks each.

Section B is co','rtulsgry for all and carries40 marks.

(iii)

liu)

MS-21 @ P,T.O.

l .

2-

SECTION A

S€t I

(Pre-Revised)

D€scribe the evolution from an agradan to an industrialenvronmelr and how L alfecteo rhe work environinenr.

WhV is it imlro(ant to $derstand human behaviour tnwofk enviro;ment ? Describe the factors which affectindNidual ditferences. Cile *rirdbtp examptes.

Describe the process ol perception. Why is it r€levant inthe organisational €nvironment and functioning ? Citesuitable examples

Explain transactional analysis and how ii helps inunderstanding Interpersonal styl€. What are the pitfalls ofthis process if used in isolation in the organisationalcontext ?

Wfiie short notes on any ttrree of the followtrrg l

(a) Power vs. Authority

(b) Contingency Control Model

(c) Paii€rns of Communjcation

{d) lTpoadnce ot feeduck

(e) Schein's Soc'alisation Model

3.

5 .

MS-21o

SECTION A

Set ll

(Revised)

Describ€ any two theories of motivation and their relevancein the modern work context.

Identify the difference between a sroup and a team.Explain the importance oI teams in an organisation andsuggest suitable plan to build effective ieams

D€scribe different channels ol communication and theimportance for enhancing HR functioning. Cite examples.

llir'ngy''1'' 6"*n"n dn emotron anc p.nperdment Why niL inporant lo underrdnd enorionc at work ? Drscu>:.

5. Write short noies on any rhree of the following :

(a) Values and ethics

(b) Cosnitive approach to leaming

(c) Imporiance of behaviour modificaron

(d) Cross cultural training

(el Importance of understanding personal'ty

3.

l .

20

2.

20

4 .

20

20

20

@MS.21 P.T.O

SECTION B

6. Read th€ following case carelully and answer the questionsgiven ai the end i

Sudhakar. the technical head at Moni. El€cironics

Ltd.. was happy that he was able to fill up the i\ro

vacancies in the sysiems department by selecting Ajay and

Ganesh. Ajay was a M.Sc. (Electronics) degree holder

along with 6 months of industrial experience. Ganesh was

a fresher, wiih first class degree (in elecironics)

engineering. Both Ajay and canesh w€r€ intelligent,

hard working and usually were able to complete theprojects assigned to ihem.

After a f€w months. at Mont. Sudhakar r€alised that

Ganesh always perceived himself to b€ more qualified

ihan Ajay, becaus€ ol his engine€ring background coupl€d

with his betier communication skills. Once h€ had

o\erhpa"d Cdnp\h raking rhe fu l credii lor overseerng aF

overseas project completed in an efficient manner.

Sudhakar spoke to their (Ajay's and canesh's) immediat€

superior Naveen, who confirmed that completion of the

said project was a combined effori, wiLh Einer more

inputs hom Ajay's side. He also told Naveen to have a

talk with Ganesh and rectify communication gaps, if any.

MS 21 @

t-

The talk seemed to help Ganesh who realised that if

he had to come up, he had to itanslom his image for

ihe good and iry to mould himself intc a sirategic thinker.

Ganesh honed his skills and staried attending marketjng

and strategic planning classes to upgrade his knowledge.

The classes opened his eyes on bow lo make assltmptions

on projeci sales, r€venues, costs and profits. Very ofien

he was seen voluntarily helping his superior to study the

company data and analyse it. Seeing the change in

Ganesh, Sudhalsr was hapDy. Observing Ganesh s

motivat'on, at the €nd oi the probaiion period, he was

olfered a conlirmed job as an assistant manager.

Meanwhile Ajay was offered the position ot a database

analyst, after his probation period was completed

succe\( lul lv.

- Sudhakar had presumed that both Ajag and C,anesh

wolrld be happy on being conlirmed and promoted. One

day le happened ta meet the Humar Resources head

during an informal meeting of the various heads of

depatttnenis to discuss about the managerial problems

they each grappl€ with. The HR head was speaking to

Sudhakar, "l was satisfied and feeling quite competent as

a HR person, when somethlng like this has ro occur."

"Why ? What happened ?", Sudhakar enquired. "li is

concerning yolrr boy Ganesh. Based on his sup€riors

feedback and your observation of his area ol competence,

MS-21 @ P T.O,

he \ras offered a conlirmed job of an assistani manager.

But yesterdaV he came to meel me and said'l feel I am

mv own enemy. May be il would be bertp; jl I go ba.k

io fixing ihings because I was quii€ comforiable with that.

No\u I realise that I have to l€arn on how to manage the

impressions that oihers have of my role'. ' On further

questioning the HR head he realised that quit€ often

Ganesh became, by default, the technological fix-it person

on proie..s because of hir "ngineenng eyperience

background. Also he had to learn to communicate with

non iechnical people. Now the HR h€ad asked Sudhakar

whether he could suggest a remedy or solution to the

Qaestions :

(a) Drj you think Sudhakar was wrong in his initialperception about Ganesh being more suitable forcarrying out manageial functions ?

(b) Which facet ot socialisation is relevani in ihe abovecase ? Justify your answer.

(c) Can you sugsest way(s) to solve the problemmentioned in th€ case ?

Ms-21 @ r,000

MANAGEMEM PROGBAMME

Term-End Examination

Decernber. 2OO5

MS-22 @ : HUMAN RESOURCEDEVELOPMENT

Time : 3 hours Maximum Marks , 100

(Weishtase 70%d

There ore three S€ctions A, B ond C.

S€ction A is meont for students uho hoDe

registered lor MS-22 prior to Jonuary 2005, i.e.

upto July 2004.

Section B is meant lor students who hoDe

rcgistercd lor MS-22 lron Januarg 2005 onaards.

Attempt ony thtee questions frcm Section A ar B

contingent on the regisration period. All questions

corry 20 marks esch.

Sect'ion C js compulsory Jor all, and corties40 morks.

MS 22@ P.T.O

1 .

2.

3 .

SECTION A

(Pre-Revised)

'The nature and objectives of the organisation detemine

the role and type of HRD processes to be chosen ior

developmental interv€ntion.' Comment on this statement

and disclrss underlying concepts with suitable examples 20

What ar€ ihe salient causes of dis_satisfaction and

frustration ? How is frustraiion passed on to others ?

Explain with example, how a supenasor can cope \',lih the

lrustration oI the employee working wiih him 20

Identify the major areas of integration b'enueen the

dev€lopment of HRD and IR jn an organisation- Describe

various pre'requisites for successful HRD'OD approach to

tR,

Define and desc.ibe HRD cjimate. How are HRD climate

and organisational climaie relaied to each other ?

Wrlte shorr nole- on any three ol rhe lollowinq

(a) Task Analysis

(b) HRD Insiruments

(c) Approach and Avoidanc€ aspecis of management

(d) HRD in voluntary organisations

(e) DevelopmentalSuperviqion

20

20

20

4 .

M S 2 2 @

SECTION B

(Revised)

1. Define and discuss the concept and obj€ctives ol coachingand mentoring. Bnefly discuss their applications in theorganizational context.

2. Whai is Action R€search ? How does it difler from OD ?Discuss the important iactors io be considered in thedevelopment of internal self renewal lacilitators, withsuitable examples.

3. Define and describe th€ objectives and ad\,antages ofMultisource Feedback and Assessment Feedback Systems

{MAFS). Discuss what are the indicators of anorganisation s readin€ss to participate in MAFS.

Discuss ihe means ol managing technological changes inwork organisation. Briefly describe the factors whichtacilitate developing the change mind-set. Explain withsuitable examples.

Wrire shon norps on any thr€e o{ rne following :

(a) Designing Reward System

(b) Operationalising HRD tor workers

(c) Career Transition and Choices

(d) Developing Business Ethics

(e) HorizonialRe-skilling

20

20

20

4.

20

205 .

Ms-22o P.T.O

SECTION C

6. Read ihe following case carefuliy and answer th€ questions

given at the end.

Tha eleven workerc whose annual increments were

stopped made a representation to the management of

XYZ Limit€d ihat the action taken was not justified and

that they want€d to Lnow what was their fault. The

management which acted upon the recommendation of

the department head concemed, Mr. Rog, felt guilty

because such an action was tak€n for the first time in the

history of the company.

XYZ Limiied was a large paper manulacturlng

company in South India. The major departrnents of the

Iactory were

2 .

3.

1 Chemical processing : The raw material l,as mixed

with certain chemicals for makrng pulp.

Pulp department , Pulp was mixed with other

ingredients according to sp€cifications for each order

ol paper.

Paper machin€ department : This was the heari of

the factory where processed pulp was fed into thepaper machines. Act first, a wet weak paper was

formed which was subsequently dried and rolled.

MS-22@

Finishing department : The paper rolls were then

moved to the processing department where ther€quired coating was given.

Grading, winding and packing departments.

Qiraliiy controi departm€nt.

Twenty eight workers worked in the paper machine

department in four groups - each group attending one

machine. The nature ol the work on each machine was

such that all the seven workers had to work in

cooperation. Because no indMdual iaikJ could be

spacilied, the group was made responsibl€ for the work

turned out by them. All the workers working in ibe papet

rnachine departm?nt had be€n with ihe compang for over

ien years.

The company did not have any incenti\re wage system

for any class of iis €mploy€es. They were all given

staight saliiries with normal annual increments. The

annual increments were sanctioned €ach year in a routine

way. Ii was the policy of th€ company thai the

increments should not be siopped unless the department

head concerned recommended su( h an acrion.

Ml. Rog was placed in charge ol the pap€r machin€

departm€nt a Vear ago. Though Mr. Rog wae a

n€wcom€r in the organisation, he proved himselt to be a

very competent man. The managem€nt noted that he was

4 .

5.

6 .

MS-22 @ P.T.O

very aggressive and enthusiastic and that he know his job

weii At ihe end of ihe year when increments were due

to be sanctioned, he recamme$Aelt to the management

that ihe increments due to eieven men in his department

shoLrld be stoDped, for, in his opinion thev were lazy and

inefficient The eleven men concerned belonged to all the

tour groups operaiing in the department..

The managemeni, though puzzled about the action

recommended by Mr. Rog, acted upon ii and sropped ihe

increments dLre to the eleven men concemed. The

managerDent were aware that sLtcb an action was ihe firsi

ot its kind in the hisiory of the company. Most of the

employe€s were with ihe company for a fairly long p€riod

and there was never an instance ol strained relations

b€tween the management and the employees.

Soon altpr the a( on was rokpn, the eleven

employees concemed mad€ a representation to the

r;aoagement requesiing them io iet them krow wnar q/as

wrong wjih their work as to wanant stoltping of their

increments. The managem€nt wer€ in a fix because they

did not have specific reasons to give except Mr. Rog's

r€port in which he simply mentioned that ihe eteven men

concemed werc "lazy and ioefiicient".

MS22o

The management were naturally concerned about

the representation and therefore, they tried to ascertain

from Mr. Rog the detailed circumstances undef which

he recommended the sioppag€ of incr€ments. When

Mr, Rog could noi pin poini . the reasons. the

manag€ment suspected that Mr. Rog's recommendation

was based on his "impressions" rather than on {acts.

They, therefore, advised Mr. Rog to mainiain a r€gisier

from then on noting ih€ details of day to day incidenis of

"lazy and in€fficient" workers and obiain the signatures

of the workers concerned. Mr. Rog was to make the final

appraisal of each worker in his department on the basis

of this regisier and recommend each case giving specilic

reasons why increments should be stopped.

Mr. Rog started mainiajning a register as suggested

by the manag€m€nti but he'found it difficult to report

satislactorily any case of laziness or inefficiency for want

of specific reasons,

The management w€r€ convinced that their action o1

stopping increments o{ eleven men on the strength o{ Mr.

Rog's report was not a proper one. They realis€d that no

similar action 'n futur€ would be taken bas€d on

inadequate information. But, they were wondering

whether the suggestion made io Mr. Rog was the proper

course of action to prevent occurrence of similar

situations.

M S 2 2 @ P,T.O.

Quesaions :

(a) Identily and discuss the core issue in the case.

(b) Was management of th€ company jlrstified inimplementing the r€;ommendations of Mr. Rog, inthe absence of proper report ?

(c) How would you vi€w the action ol Mrr Rog, if you

were the M.D. of the company ?

(d) Do you think the reward system instituted by thecompany needs io be reviewed ? Substanhate youransrwer with logic.

MS-22 @ r,000

MANAGEMENT PROGRAMME

Term-End Examination

December.2O05

Maximum Morks , 100

(Weightage 700/o)

MS-23@ : HUMAN RESOURCE PLANNING

Time : 3 hours

Note :

(i)

(iil

(iii)

There ore two Sections A ond B.

Section A hos twa Sets I ond II.

Set I is meont Jor the students uho hooe rcgistered

lor MS-23 prior to Julg 2004 i.e. upto Jonuary,

2004.

Set lI is mednt lor the students who hoLv registered

lor MS-23 fron July 2004 onwards.

Attempt onv ,hree questions Jrcm Section A. AII

questions corrg 20 marks each.

Section B is compulsory Jot dll ond carries

40 marks.

(iD)

bi)

MS-23 @ P.T .O .

. SECTION A

Set I

(pre-Revised)

1. ',There is a definite link between educanon and economicgroMh, and lack of adequate skilled manpower impedesgrov,/th-' To which one of the approaches of HRP wouldyou ascribe this stat€ment ? Discuss the steps involved in,and limitations of this approach.

2. Whal are lhe basic requisites of an elfective HumanResource Information System {HRIS) ? How iscompuierised HRIS advaniageous for an organisation atdiflerent levels ? Discuss with suitable examples.

How would you formulate ihe aims and objeciiv€s of atraining programme ? Explain with an example. How aretraining needs identified for different levels ot employ€es inan organisaiion ? Discuss.

Descnbe the basic assumptions of Job Elaluation. Explain,with example, the major areas where job evaluation can beapplied successfully.

Wnle shorl nores on anv trr.ee of fie following(i) Qualitative methods for demand forecasting(ii) lssues and problems of manag€rial selection(iii) Measurement ol Human Resource Cost

{iv) Dimensions of HR Planning(v) Peer group appEisal

20

20

3.

4 .

20

20

MS 23@

SECTION ASet ll

(R€vised)

l. Is Human Resource Planning a win-win plocess Joremployers and ejnployees both ? Explain with reasons.Discuss ihe important issues in demand forecasting. 20

2. Define and describe the concept of Role. Are roleexpectations changing in th€ mod€rn woid of wo* ?txplain wirh rhe belp ot dirieren! aDp)odches to changingroles in the organizational context.

3. DescriL€ competmcy aDproach. Discuss how it is used bythe organisation. Briefly discuss various approaches tocolnpeaency mapptng,

4. What are the pre-requisites for int/oducing HumanResource Informatjon System (HRIS) in an organisation ?How is HRIS ad\,antageous ov€r manual system ? DscLlsshow it can be made more €ftecti!€ and usetuJ.

5. Wtite short notes on any lhree of the following :

(i) Career Planning

(ii) Coping wjth dislocation

(iii) Executive Searcb

(iv) Steps in Job Analysis Process

(vl Induction Tlainins

20

20

20

MS-23@ P.T.O.

sEcrtoN c

6. Read rhe cas€ g)uen below and dnr,,,/?r rhe que(tions given

ai the end ot the case. 40

Pearl Engineerjng Company was a large

heaw-engineering unit. It altached greai importance to

the recruiiment and iraining of its senior supeFisors.

Apart lrom s€lecting them from v.rithin ihe organization,

the company recuited, every. alfernaie y€ar, about ten

yo'$g engjneering graduates and oflered them training

for a period of iwo years, before they were appointed as

senior supervisors. Such appointments wete made to

aboui 40 per c€nt ol the vacanci€s of senior supervisors

thai occurred in ihe organizaiion. fils was considered

necessary by management as a plarned programme ol

impa ing vitalily to the organization. Besides, many of

ihe old-timers, who had risen from the ranks, did not

possess the necessary academic background wiih the

r€sult that they could noi keep pace with ihe

technological changes. Maoagement also believed that in

the rapldly changing conditions of iodustry. a bank of

technically competent supervisors played a pivotal role,

besi&s senang as a pool from which to select luture

departmental managers.

Engine€ring Sraduates were selected from amongst

those who applied in r€sponse to an all-lndia

advertisement. For the selection of one engin€er, on an

MS-23o

averager eight applicanis werel call€d for interview- AseLection conmittee consisting o{ ilie Generd Manager,th€ Produciion Manager, the Personnel Manager and theTraining Officer intervi€wed and selected the candidates.The selectign interview was preceded by a written t€stand only those who secured 40 per cent marks qualifiedfor interview.

The eniline€rs thus selected had to undergo atwo year intensive th€oretical and practical training. Awell-staffed and €quipped Tralning Institute was directlgresponsible lor the trainjng of the graduate engineers,becdes lraining lradp apprenli( es and operaiives requiredby the company. L€ctures on theoretical subjects weregiven at the Trainjng lnstitute and practical training wasimparted in all the works departments under the guidance

ot qualified and experienc€d instructors. A few lectures bysenior officers o{ the company were also arranged toacquaint them Mth the company policies on diff€rentmatters. During the last quarter ol their two,year trainingprogramme rhey were deplrted to work iulltime rofamiliarize themselves with the conditions in departmentswhere lhey were to b? absorbed eventually.

On successful completion o{ training, the graduate

engineers were ofler€d appointments, depending on theirperformance and aptitude as revealed during training. On

MS-2so P.T.O.

placement in the work departm€nts, however, most of

them faced some difficulty or ihe other.

Accordirg to management, some oJ the heads of

departm€nts, who were themselves not qualified

engjneers, did not have sufficient confidence in tlese

younger men. They preferred the subordinates who came

up from the ranks to hold positions of responsibilitg. A

few discredited them saying that ii would take years

before these youngsters could pick up the job. Besides,

some of the employees, whose promoiional opportunities

werc adwrsely atfected by the placefient ol gaduate

engineerc, tried iheir best to run down the latter as a

class, sometimes working on the group feelings oI the

workers. Some oI the super/lsors who were not graduate

engineers also spoke derisively of them as "the blue-eyed

boys" of the organization. Management knew that many

of the graduate €ngineers were not utilized according to

their capacity or training, no! was any atiempt made to

test or develop their poteniialities. They aiso knew that

many of the graduate engjneers wefe, therefore,

dissatislied with their work life. Some oI them who did

not get equal promotional opportwities as their

colleagues placed in other depadments, were Iooking for

better jobs ebe\\;bere.

On the other hand, according to management, the

yormg graduate engineers were th€mseives partly

MS.23@

responsible for th€ hostile attitude of others in the

organization. Some of them failed to appreciate ihat a

newcom€r invited hostility in the beginning and it took

time before he was accepted as a member of the

work-group. They did not realize that they would be tullyproductive only alter gaining about five io seven yearc'

experience in the organization. A few thousht that they

belonged to a superior cadre and threw their weight

around. TheV did not bothef io understand and appr€ciate

th€ problems of the rank-andjile of employees who

worked under them.

In spite of ihese drawback, the General Manager of

the company telt that these men were a set of disciplined

supervisors. They had a sense of pride in their profession,

and with the extensive training they had received, they

would be able to take up any responsible position in ihe

organization in course ol time,

The General Manager could not allow the situation to

continue especially when it was a difficult and costlyprocess to recruii and train young engineering graduates

ot lhe requisile rype and calibre. He knew rhat $eprosperity of the company, io a large extent, d€pended

on these young men. In addition, a large number of

lucrative employment opportunities were availabl€ to

these young engineers elsewhere and there was a

MS 23o P.T.O.

systematic taid on them, He, therefore, called a meeting

of all heads of depaftm€nts to re\,lew the situation.

Questions t

(i) Identjfu th€ issues related to manpower planning as

evideni in the case.

(ii) Discuss the strategies to iackle the percentage of

internal promotion at the organizational level.

(iii) Wbai type of additional training programmes should

be imparted lor dir€ct entrants ?

(rv) Suppose you are the head of the personnel division.

What would be your suggestions in the meeting.

which has been called by the General Manager ?

MS-23@ 1,000

MANAGEMENT PROGRAMME

Term-End Examination_

Decernber, 2OO5

MS-24 O : PRE-REVISED: UNION-IIiIANAGEMENTRELATIONS

REVISED : EMPLOYMENT TEUANOTS

Time : 3 hours Moximum Mqtks: 100

(Weightose 70W

There ore two Sections A dnd B.

Section A hos ,t o sels ' Sei I is meant for the

students Laho haDe r.gistered Jot MS'24 prior t'.t

Jonuorg, 2005 i.e. upLo June, 2004 $et lI is meant

Jor the students who hdue rcgistered frcm Jonuqtg,

2005 and onuards.

Attempt atlg three questions Ircm Sectian A. All

questlons coffv 20 morks eoch.

/io) Section B is compulsory lor oll ond corries

40 morks.

(t)

(ti)

(iiil

MS 24o P.T.O.

1 . Digcuss ih€ roleunion manag€ment

SECTION AS€t I

(Pre-Revised)

oI staie andrelations. Discuss

constitution inwith suitable

20

20

2. ldentily ihe factors r€sponsible for the formation ofwhite collar managerial unions. What kind of implicationsare there lor the organization for such a process ?

DeJine co[ective barga]ning. L\plain ihe bargainable issuesand types of bargaining with suitable examptes.

4. How do the cross-cultural aspects aff€ct theunrcn'manage..(ent relations ? Cite suitable a\amples tosuppoft your answer. 20

5. Write short notes on any three ol the following r

(a) ILo

(b) Trade un'on recognition

(c) Interpersonalconflict

(d) Models in workers' pa(icipation in managemmt

(e) Negotiation skilts

3 .

20

MS 24@

l .

SECTION ASer ll

(Revis€d)

Discuss the salient foundations ol indusirial relations.

Describe in briei the influence oI th€ori€s and modets on

industrial relations practice.

Describe the chaGcteristic features of structure ol irade

unions. Outline the structure o{ trade unions in India.

Detine coll€ctive bargaining. Examine the unique features

of collective bargaining in Indian context.

Define industrial grievance. Explain various approaches olgrieEnce resolution. In your opinion, which approach is

the most elfeciive and why ?

WriLe shon notes on any lhre€ of the (ollowing .

(a) Function of employers' organisation

(b) Negoliation skrlk

{c) Models of workers' participaiion in management

(d) Misconduct

(€) Adjudication

20

2A2.

3 .

205-

20

M924o P . T . O .

SECTION B

6. R€ad rhe (dse car€firlly and answer rhe questions given atthe end. 40

Geetha L"aboratories P vat€ Limited was establishedby Mohan Ramnath in lc88 at Ch€nnai. He, a solt

spoken gentleman, was Ph.D. in chemjstry, who did not

believe in working under pressure. The company was asmall scal€ unit manu{acturing non-patented artimalarialmedicines. The company had 6 days per week working

making 26 working days per month and was running

smoothly. ln 1978, CITU suppoded union came into

existence. The industrial r€lalions started deter:orating

making it difficult for the company to sunnve. In 1988

Ramnath decid€d to enter into paftnership with three

other partners, Chandan Keshav, Bharat Pathak andVeenu Ramachandran to overcome the dilliculiies facedby him. The compang came to be kno',,,i as Geetha

Laboratories Limited. Even alter this the industrialrelaiions did not improve lill 1990 and it was during thispenod that 14 work€rs wer€ sack€d. In 1990 Ramnathdecided to sell his shares to Emission Pharmac€ulicals, amultinational, ihough other partners continued. Now, the

'company was called German Drug House (GDH). During

this period CITU withdrew support to ihe union andBhartiya Mazdoor Sangh {BMS) came into the picture. An

average increment of Rs. 225 was give$ to all !,,,orl€rs

and induslrial relations improved lo some extent

MS-24(>

IMPIA Pharmaceuticals Limited was anothernon'patented antimalarial butk drug rnanufacturing gianthaving units at Pune, Mysore, Hyderabad, Coimbatoreand Corporate office at Baroda. It wanted to havenionopoly in ihe antimalanal drug manufacturing by

.laking ov€r GDH. bLrt before ldk'ng such a srep. theywanted to assess the intemal condition of the company.Therefore, in January 1994 Vishal Shrivastav, a qualifiedchartered accountant was inducted as Director bypurchasing a r€quisite number of shares of the company.In September, 1994 after IMPIA was convinced aboutthe lavourable conditions ot cDH ii lormally took overihe company. At that time the manpower strength of theplant was 210 in which 130 were workers and 80 wereexecutives and staff l.nembers. After taking over, IMPLAmade many changes and the major ones were ;

(i) They incr€ased the salaries ol executives and stafl ofthe unit to reduce the gap in th€ pay shuciure of theexecutives and staff of this unit and the:r other units.

(ii) They invested Rs- 3-4 crores Ior upgradation ofthe plant.

(iii) They shifted from 6 days working per we€k to 7days working per week to improv€ the productivityand enhance cost-elfectiveness of the unit.

The shift from 6 days to 7 davs working without anyfinancial gains made workers resist the change. At this

MS 24(t P.T.O.

juncture, Sumeet Joshi, Corporate Manager (lR)intervenea and promised the ur'ork€rs that theg Qrr]uB bepaid for 30 days instead ol 26 days, but Ravi Shriman,Director (Personnel) and Vishal Shri\rastav, CM(Operations) refused io agree to this since they were noiinvolved when Sumeet Joshi made the commitment. Thepfomise was not fulfilled which further complicated theploblems. The issues kept on Iingering for 6 months. Nodecision could be taken because of the difference olopinion among s€nior executives. in June, 1995 theworkers gheraoed Vishal Shrivastav to pressuris€ themanagement to take the decision. They were successiulto some extent as it led to the agreement of managementwith workers that financial benefits would be given wiihretrospeciive

.effect ol 4 years making it one additionalyear over and above 3 years of normal agreement _Theywere asked to give a notice of change which the workerscould not give iill December, 1995 because ofdisagreemeni among themsetves. Ii was felt at this pointot time by Shrivastav that plani should have an AssistantManager (personnel) instead of having Personnel Officer.Ajjt Dubey, Assjstant Manager (perconne)) was appoDreoin October, 1995 but even this appointment took 3-4months because of discord in opinions of Shrivastav andSbriman.

. In December, 1995 the workers gave a norice ofclnnge demarding an increase ot Rs. 2200 per month.

MS 24@

In January, 7996 a notice of change was g(,en oymaDag€ment. ln February, 1996 the n€gotiations startedand continued till July, 1996. Shrivastav, Rajkumar, thenew Corporate Manager (lR), Ajit Dubey and Kishorewere to represent the management side and ninemenbers Of the unjon were to represent the Workers,besides V.D. Agrawal the General Secrerary of BMS.

The first two rounds of meeting did not lead to anyoutcome as none of ihe padies w€r€ ready to budge. Thismade V.D. Agrawal withdraw as he was fed up with therigid stand of th€ union leaders.

The thjrd neetjng was held wjthout Agrawalwherein the union leaders came down to Rs. 1,200 fromRs. 2,200 p.m. The minutes ol the rneeting werc jotted

down but the union teaders refused to sign. Takingadvdnlage of the occasion, Dubey and Sbri,"astav had aseoet meeting with Agrawal in a hotel. Agrawal advisedthe representatives of the management to maintain a lowkey for a f€w months to crack down the workers'aspirations as they had very high expectations. It wasobserved by Dubey that there were perceptual differencesbetween senior and junior union leaders. Tal,jng cue fromthis, Dubey adopted a policy of divide and rule and tookinto confidence Devilai, the senior union l€ader dnd hada secret rDeeting wjth hjjn to explore ibe last setleDentamount and apprised him that the management could go

MS.24o P.T .O .

only upto Rs.450. He also took Janak Singh, the junior

union leader into confidence and convinced him that

management was not going to berjd befor€ their demands

and as such ihe workers were going to be the uliimate

suf{ere{s. Besides ihis, Dubey sptead the message that no

wages would be given retrbspectively.

The next day meeting resumed in which union

r€pr€sentatives came down to Rs. 750 {because of the

pressure from the workers) beyond which they were not

ready to com€ down. Ii was decided tbat instead ot

having m€eting with all the members, only two members,

one senior unjon leader, D€vilal and one junjor union

leader, Janak Singh would slt in the negotiations.

Immediately a m€eting among Shrivastav. Rajkumar,

Devllal and Janak Singh was held and jl was resolved that

Rs. 575 average per month would be given for 4 years

retrospectively. An MOU was dralted by the legal

consultant at the corporate oftice and was duly signed bv

Shtivastav, Rajkumar, Dr-rbey and all the union

representatives. In the eveniog a dinn€r was hosted in

which all the negotiators were in\,iied. When the papers

v,/ere sent to R. Shnman, he obiected to the MOU on two

pomIs,

First, th€ other plants were having 30 days pav

system leading to less alerage pay per day and in

Chennai pfant it was to be given for 26 days leading io

MS 24o

higher average per day. Second the nilk allowanc€ given

for ovedime at Ch€nnai unit u'as higher than other units.it look Shri\rastav and Rajkutnar two months to con\,'rnceShrirnan about the ag€ement and lhercatler,impl€meDting ihe same. A toial amount of Rs. 14 to 15lakhs was given to all ihe 160 woykers within a wesk asafiears and the issue wds s€tiled.

Questtons :

(a) Was it right tor VD. Agya\ral to withdraw half wayduring the negotiations ?

h) ldentify the tactics used by management in thecase. Ar€ theg justified ?

(c) Sho'rld Director (Personnel) hn!,e Iaised objectionsafter MOU (Memotandum of Understanding) wassigned ? Give reasons.

{d) ln view of the information given in the case, suggesitbe strategies that could have made IMPIAPhatmaceuticals a morc progressive organisatjon-

MS,24@ r,000

Fsrs@-l

MANAGEMEM PROGBAMME

Term-End Examinalion

December,2OO5

Moximum Morks : 100(Weightage 70%)

. MS-25@: MANAGING CHANGE lNORGANISATIONS

Time : 3 hours

Ihis popel conslafs ol ttho Sections A and B.

Section A consists ol tuo sets. Set I is to beattenlpted b9 students uho haue registercd JorMS-25 before Jonuory, 2004. Set ll is to beattempted by studenls uho haDe reglstered lotMS-25 Jron Jonuary, 2004 onwords.

Anstner an[ lour questions from Section A, eochcorrying 15 matks.

Section B Is compulsory t'or o1l and carries40 morks.

ti)

lii)

(iv)

(iii)

Ms,25o P . T . O .

|.

SECTION A

SET | (Pfe-Revised)

Discuss rie impotunce of Social and O'ganisationdlculiures in bdnging about change, with suitable €xample9.

Degcribe survey leedback as an jntervention in bringingabout change a$d its advantages and disadvantages, citingsuiiable examplec.

Describe the meihod of role eliiciency to bring aboutchange in an organisation and discusg its significance ln€mphasizing the relatlonship oI employe€ and employer.

Discuss the key roles iNolved jn managing change. Howare the interaciions within the organizatio[ {acilitated ?

Wile shon notes on any t&re€ ol rhe lollowing :

(i) External '"s. Internal consultant

(ii) Manager as ag€nt of change

(iii) Processconsultatjon

{iv) Transformatjonalchange

(vl A model of implementation of change in anorganisation

2.

3 .

4-

2Ms-25o

1 .

2.

3 .

4 .

, SECTION A

SET II (Revlsed)

Discuss the pyocess of Leveraging Struciure in bringingchange in organisations. Expiain with suitable examples.

Evaluate critically the impodance of Weisbord's Six-BoxModel {or diagnosis in an organisation,

Discuss the concept of Total Quality Management and itsrelevance in bringing changp in dn organis<tion.

Discuss how cultural change can be brought in anorganisation. E\plain with examples.

Write short noles on dnu thr€€ ol the following :

(i) Managingtransitioo

(iil Managing resbtance to change

(iii) Transactional vs. Transformaiional leader

(iv) Types of change

(v) Behaviour modelling as an intervention

MS.2s@ P . T . O .

SECTION B

6. Read the following case carefullv and answer t}]e questionsgiven at th€ end :

In 1995 Ford Motor Company announced a major

reorganization called "Ford 2000." The idea,

champion€d by Chairman and CEO, Alex Trotman and

Vic€ Chairman Edward E. Hagenlacker, eliminated more

than a dozen engineering design centres aromd ihe ,xorld

and consolidated them inio only live - Iow in Dearbom,

Michigan, and one in Europe. The one in Europe was

responsible for creating one basic design for small cars lor

the world market and then making minor modifications

fo{ local markets. For example, the same template will be

used in Europe, South America, and Asia. The four

design centres in Dearbom will do the same for large

fronfwhe€l-drive cars, rear'wheel-drive cars, pick'up

trucks, and commercjal vehicles. The consolidation eflort

requires that nroie than tweniV-five thousand salaried

employees relo€ate or at least report to new managers.

Manufacturing and assembly will still take place in plants

around the world.

The purpos€ is to integrate Ford's operalions around

the world and revolutionise the wav it designs and builds

more than seventy lines of cars and trucks, which it sells

in mofe than iwo hundred markets. Th€ goals are

reduced duplicaiion ol €liort, increas€ volume purchasing,

MS.2so

save more than $4 biilion per year, and double

profitability. All this lar a company ihat mad€ $3.8 billionprolit from auromotive operations in 1q95. and $53

billion overall. Trotman continues to have the support of

the Ford family, who still controls 40 percent ol the

voting stock in the company.

Part of the new plan is a top-secret strategic

document that outlines every new car and truck Ford will

design, produce, and sell around the world through 2003.

The plan calls for reducing the basic design platlorms

from 24 to 16 and increasing the total number of models

by 50 percent, while saving billions of dollars. For

example, the new 1996 Taurus serves as the platform for

several other models, both in ihe United States and

around the world.

.ln sttucture, ihe new system is really a matrix. Rather

than workins in a functional organization with iraditional

hierarchies and cenlraliTed de(r.ion making. emptoyeej

are assigned to a design centre, such as small cars, and

then to a group according to their specialities, such as

drive trains. Managers ihen mediate the disputes that

occur between lhe design c€ntres and the. specialiii€s.

Employees will have to change their ways of doing their

work as ihey design cars and trucks to fit global markets

rather than a single, relatively homogeneous one.

Management knows that employees feel a great deal of

MS-25@ P . T . O .

insecurity and uncertainty about the compaoy and theirjobs as they make the shift. Carrying the message to all

employees has been a constant job for Trotrnan and

Hagenlacker sinc€ the original announcement,

Management also knows that Ford tried a similar

design integration with their ''World Car" in the late

1970s, which failed primarily due to turf battles among

designers and engineers. The cars that result€d wereyarely the cost savers Ford hoped for and were so dull in

iheir design that no one bought them. Trotman expects

different result this time because of the consolidation of

the design centres, the new organisation strucrure, and

because advances in technology hav€ made the inner

working of cars so similar ihat only the outer, visible

portions of the cars need to be different to satisfy

regional tastes.

By mid 1996, however, the reorganisation was not

gojng so well. The transition had left many employees still

wondering whom they worked for and with a feeling ihat

everything was oui of conirol. The culprit seems to have

been a reorganization of the reorganisation ! Trotman

now plans to r€duce the number of d€sign centres from

five to ihree. People are moving and reporting

relationships are changing once again. Gtoup Vice

President Jacques A. Nasser, who may succeed Trotman

by 1998 or so, has promised $11 billion in savings under

MS-2s@

the new system. Some have claimed that lhe "new"

reorganisation really puts ihings back ihe way they were

belore the first reorganisation. However, three design

centres is a lot Iewer than th€ dozens that existed L\e{orc.

But this second r€organlsation, before employees really

got settled into the first one, may have d€vastating

ellects. Suppliers and,employees do not know whom to

contart to get questions ans.rered or disputes resolved.

All they get on the phone is voice mail, since everyone

is in me€tlngs trying to work oui the new reorganisation.

Top management claim9 that these problems are inherent

trying to turn around such a bjg organisation that has

be€in relatively success{ul ihrough the years. Theg say thai

th€ oruanisation needs to evolve to meet their ambitious

goals and the comtretition.

Qrreslions ;

(a) Describe the changes in structure that Ford expects

from the Ford 2000.

(b) How do you a\plain ihe continuing problem that

employees arc having witb adapting to th€ new

structure ol Ford 2000 ?

(c) ls a mairix sttucture the proper shrcture for Ford

2000 ?

Ms-25o I , 000

MANAGEMENT PROGRAMME

Term-End Examination

December, 2OO5

MS-26 €) : ORGANISATIONAL DYNAMTCS

Time : 3 hours Maximum Morks : 100(Weishtase 70%)

(i)

( i i )

(iii)

Therc arc tuo &ctions A and B.

Attempt qny three questians Jrom Section A. Eachquestion carries 20 marks.

Secrion B is compulsory ond corries 40 marks.

SECTION A

l. How would you descib€ a group ? Explain t"?rious stag€soI group development and probable effects of $oupproc€sses on t€am performance.

2. Brie!|9 descnbe the concept ol 'stress,, and discuss !"€riou5

typ€s of organisational sir€ss wilhin the .Role systems,.

Ms 26@ P.T.O.

3 .

4.

Define and describe the concept of power. Dscuss thebases of power in the context of Managerial Effectiveness.

Define and describe ihe process of delegation. Discuss iheIacilitating and hind€ring forces which in{luence ihecleiegation process.

Wrile sho"t nore\ on any three of the lollowing .

(i) Compliance

lii) Empowerment.Audii

(iii) Organisat'onalCuliure

(iv) Cross-culturalDlnamics

(v) TransformationalLeadership

M5-26@

SECTTON B

Please read tlle case and answer the questions given at iheend.

Th€ Roopchand Departmental Stor€s, New Delhi,

has a separate s€ction to sell winier garments. This

section consisis of two groups : permanent clerks and

temporary clerks appoinred during wint€r season.

Unfortlrnately, this section has always witnessed a

tug'ot-war situation betw€en p€rmanent and temporary

clerks. The stoiy begins thus.

The permanent clerks, by virtue ol their long and

fruitful association in the Departmental Stores, had

developed intimate social relations among ihemselves.

Usually, they take their lunch and tea together. They

worked, like a well knit group, in close proximity and not

surprisingly, developed close relations even after the work

is over. The slack period starting from Aprii to September

€very year had given them a wondertul opportunit to sii

together, discuss about rratters of common interest, peep

into each other's minds and, il possible, solve their

problems to mutual ad\rantage. Presently, all of ihem are

unnarried with the exceplion al twa.

MS-26@ P.T .O.

The temporary clerl.,s were school girls who are

normally appoint€d before the commencement of winter-

Often, they have complained about th€ir work in the

Winter Garments Section and two of the clerk even

desir€d transfer to som€ other section after a short stay.

The teasons are quite obvious : The perman€ni clerks

bothered littl€ about helping the newcomers- lf the

newcom€r is not able to sirike a deal with a customer,

often. the permaneni clerk joined hands in making

uncharitable criticism before th€ Section-in-charge. Being

small in number, the temporary clerks could noi resist ihe

frequent onslaughts, which ar€ at iimes irritating and

in:inuaring. The remporary clerks had very littie scope to

blow off thei "steam"-

In this heated atmosphere. the determination of

commission on sales remained a contentious issue, The

permanent clerks had, through an inlormal understanding,

agreed not to boost up sales. They feared, inherently, that

fluctuations in sales would lead to fluctuation in

e$ployment. At the same time, they could not tolerate

the sight of a temporary salesperson pocketing a

fair share of commission. They always feh thai the

temporaty on€s do not deserve any commission, because

they have not contributed angthing on a continual basis

for the development of the D€pariment. Sulfering from

M3-26o

t

an jnfiated ego, they also believed that they had the righi

temperament and skill to boosi up sales. Thur, in everj

\,,ray, the temporary sales c)erks are inferior io them.

Rec€ntly an unhappy situation has d@eloped when one

ol the t€mporary clerks js able to make a subsiantial sale

to oDe of her acquaintances.

Now, ih€ permaneni clerks b€gan to make a hue and

cry (egarding tbe commissiolr payment. The poor sal€s

clerk came io ihe Assistant Sale$ Manager 'J,,iih iears atter

haling been scolded bitterly by the perman€nt clerk for

having sold a few s^,eaters in th€ir absence.

The tempotary clerks were always anxious to show

good performance so as to earn a position in the

Department. To prevent this, the p€rman€nt clerks used

to furnish fals€ information about garments'qualiiy,

n€gotiable price etc. Wh€never ihe iempolary clerk

sought ihe help of a senior in seliing ihe garments to ihe

cr.6tomer, the latter would take over and claim th€

commission on sale herself. The temporary clerks were

often assigned to insignificant task like aftanging

displays, rearanging garmenis, bringing garm€nts from

stores, etc., and were prevenied from sinking it rich wiih

customers. At every stag€ tbe temporary ones ar€ taken

{or a ride by the permanent clerks.

MS 26@ P.r.o.

Quecttons .

(a) Disclss the issLes relevant tor group behaviour_

{b) Explain tbe behavioi/ al WmraneDt ernployees olthe department. Are iheg justified ?

(c) If Vou were the manager in-charge, what sieps wouidyou have laken to preveDl such a situatjon ?

{d) How can an organjsatjon be proactive in such asituation ?

Ms 26@ 1,000

MANAGEMENT PROGRAI,IME

Term-End Examination

December, 2005

MS-27 O : WAGE AND SALARYADMINISTRATION

l l,rs"'o-l

Maxit'um Msrks : 700

(Weishtase 70o/o)Ttme : 3 hours

(i) There are two Sections A dnd B.

(ii) Attempt ony fo r questione lrom Section A, eoch

question corrying 75 marks.

(iii) Section B is cornpulsory, and cdrries 40 marks

SECTTON A

l. Explain uarious types of inceniive plans. What steps are to

be taken for elfeciive implementation of incentive plans ?

2. Compensation management is a multidimensional concept

incorporating such asPects as pay structure, pay level,gystems {or r€cognislng indMdual dif{erences 1o

p€rlormance. and emnloyee benefirs. Discuss

MS27o P T.O.

3.

4-

Discuss some of the wage theories developed by economicand behaviouml sci€ntists.

What are the objectiv€s of compensation survey ? What

Upe oI information is io be collected throughcompensation su^7ey ? Give details.

5. Aiiempt the lollowing questions i

(a) What are the main provisions of ihe Paym€nt ofBonus Act, 1965 ?

(b) What are ihe salient features of th€ EqualRemuneration Act, 1976 ?

What are the insiitutional mechanisms in lndia for fixaiionof wages ? Disclrss.

Write short notes on any ,hree :

(a) Pay equity

(b) Voluntary Retirement Schemep (VRS)

(c) Job evaluation procedure

{d) International labour standards on wages

(e) Compensation issu€s and trends

6.

MS,27

SECTION B

8. Read the following cas€ and answer the quesnons gNen arth€ end .

CASE

A bright young M.B.A., fresh from one ol the topmanag€ment instituies, took over his faiher'sr€sponsibilities as president in a manulacturing compang.The company employed approximately on€ thousandpeopl€ in the production division. It had never laced witha demand for colleclive bdrgarning. So lar as was known,none of its €mployees were union members,

The new president, after three y€ars of climbing theladder io his posihon, had a conference with threelong-term employees, who explained that they and theirassociates had been discussing the desirabiliiy ofbargaining collectiv€ly. They gained through such formalrepresentation. Th€ employees had not vorceo any srongcriticism of manag€ment, but they had held severalmeetings and had invjted representatives of a nationalunion lo talk with rhem. They concluded rhar rhey oughtto try collective bargaining and for this purpose formed aunion and enlist€d a majority of worksnop €mproyees asmembers. The three representatives had been elected tothe bargaining committee in order io present a writtenmemorandum to ihe president with a request forcoll€ctive bargaining agreement. A series of issues

MS-27 P.T O,

carefully spelted out by the union were handed over to

the president by the three representatives

The young executive received th€m cordially and

listened carefully. He accepted their memorandum and

suggested that he would like to have time io shrdy it

carefully. He proposed a meeting with ihem for Tuesday

of the tollowing week.

When ihe committee members retumed, the

president reminded them that th€ company had been

careful to maintain wages and working conditions at least

on a par with those in unionised companies in the same

indusiry and region. He expressed the opinion lhat the

specific proposals they had presented seemed to him

quiie reasonabl€ and approprjate. He had been thinking

of many of th€ same changes and would probably have

made them without their request. He was pleased to hand

them their memorandum with a notaiion indicating his

acceptance. The members lelt, quite satisfied with the

effectiveness o{ their negotiations and promising to repotl

back to him as soon as possible

One week later, the president found the same group

of representaiives waiting to se€ him. They appeared

somewhat clestfallen and embarrassed They reported

thai they had gone back to the membership, presented a

Iull report ol iheir discussions with him, explained. his

MS 27

favourabLe attitud€, and recommended tormal ratificatjon

I ol rhe memorandum as a new collectrve bargaining

p agrp€menr. Alter exrensive discussion. when lhe molon

l" Ior ratification came up {or a vote, a maiority of ih€m€mbetship voted against raiificafion

Questions I

(a) What are the problems in thjs cas€ ?

lb) Why did the members refuse to ratity theagreement ?

(c) ln a slfuation lilie the one above, hc,v can the rmionand management play an ellective rale in fixing andrevising wages and ben€fits through the process ofcollectiv€ ba$aining ?

MS.27 1,000

MANAGEMENT PROGRAMME

Term-End Examination

December,2OO5

MS-2S@ : LABOUR LAWS

Time : 3 hours Moximum Morks : 100(Weightase 70Yo)

Note :

(t)

(it)

There ore tu)o Sections A ond B.

Attempt on9 frue questions from Section A. AIIquest'ions ln Section A corrg 15 mcrks.

Section B is compulsorg and corrles 25 morks.

SECTION A

l. The Fuidamental REhts ard Directive Ptincipleg of State

Policy are the backbone of industrial iurisprudence in India.

Explain.

(iu)

Ms,2so P . T . O .

2. Attempt any tuo of the following ,

(a) What are the safe! measures under the FactoriesAct, 1948 ?

(b) What are the provisions regarding registration of

establishments and licensing of contractors underthe Contract Labour (Reguiatton and Abolition) Act,1970 ?

(c) What are the main provisions regarding prohibition

and regulation ol child labour undef the Chlld taboir(Prohibition and Resulation) Act, 1986 ?

Explain the procedure for registraiion of a trade union

under ihe Trade Unions Act, 1926. What are the provisions

regading "General Fund" (Sec-15) and "Political Fund"(Sec 16) under the Act ?

Examine various Fovisions laid down under the Industrlal

Disputes AcL. 1947 for s€ltlemenr of induslrial dispures.

What is the objeci of the Minimum Wages Act, 1948 ?

Explain the procedure ihe government has to follow lor

fixing and revising minimum wdges under the Act.

6- Who :s an "employee" under the Emplogees' State

Irsurance Act, 1948 ? Gve an account ot v.a|jous benefits

extended to ihe employees under the Act.

4 .

Ms.28@

7. Write shon notes on any tiree of the following I

(a) Objectives of labour laws

(b) . Iniernational labour standards and iheir inlluence on

_ labour legislation

(c) Notice of Change (Section 9-A)

(d) lndustrial djscipljne - concept and objectiv€s

le) Marernity Benefit Act, 1961

Ms-28@ P . T . O ,

SECTION B

8. Redd the case given bdorv and aniwer the questions given

at the end.

CASE

ANC is a composite textile mill employing ovet

8000 employees including olficers. The rnill has recently

modernised its technology and has introduc€d many cosl

and latDur savins devices. lt has a very sophisiicated

quality control department having many costly

€quipn€nts. The jndustrial rclations in the company has

been very $nooth. The management also adopied a

!€lfare-orient€d approacb lolvards ih ernployees. The

company organised regular training and d€velopment

programmes as a part of its huma! resollrce development

etforts. The general morale and motivation level of

employees was quite high though symptorns ol tension

and mistrust w€re hidden.

Mr. Anand is in charge ol rartous costly €quipments

us€d in the qualily control department. One day he used

th€ services of Mr. Borade, a worker, to clean the

<uipmeDts of various sizes and asked him to keep back

the eqJipments in lhe cupboard after cleaning theft. This

had to be done as Mr. Anand had to attehd the dailg

4Ms-28o

coordination meeting with the general manager of the

company which cannot be ignored. When Mr. Anand

retuned. he did not check immediatdy the total number

of instruments as he did not have any doubt about

Mr. Botade's integrity. Mr. Borade is an old-timer who

served rhe company honestly and ,in.erely.

Alter about hvo hours, Mr. Anand found a small but

costly measurement equipmeni was missing from the

cupboard. The initiol search yielded no positive results.

Mr. Anand accordingly informed the security about the

missing ol the instrument. The security staff suspected

Mr. Borade as he was ihe one who cleaned and put back

the instruments. When questioned, Mr. Borade denied the

charges. After initial questioning, Mr. Anand onc€ again

separately requested Mr. Borade to say whether he saw

the missing instrument. Mr. Borade spoke privately to

Mr. Anand and admitt€d that by a sheet loss of control

of mind he iook away th€ instrument. He conless€d that

be never did such a thing in the past ir) his 15 years oi

seruice in the company and knowing welt that he couldn't

us€ the instrurnent, h€ stif took it away. He pleaded for

mercy- Mr. Anand was at loss to understand what had

happ€ned. He couldn't b€lieve that a man who served the

company faithfully could €ver do such a thing lik€

MS 28o P.T .O .

he do now ?

Questions t

(a) Advise Mr Anand as io the nature of action to betaken against Mr Borade ?

(b) Advise Mr Anand as to ihe merits and demerits ofholding a domesiic enquiry.

{c) Also suggesi to him various steps to be taken in adisciplinary proceeding, in case ol an enquiry, and thenalue of punEhment ro be awdrded il rhe chargesareproved-

Ms-28o 1,000

MANAGEMENT PROG&{MME

Terrn-End Examinatlon

December' 2OO5

Moximum Morks : 700

{Weishtoge 70o/o)

MS-41@ : WORKING CAPITALMANAGEMENT

Time : 3 hours

Note :There orc three Sections A, B ond C'

s,ectlon A is meant only lot the students, t,ho

houe rcgisteted lor MS'47 priot to July, 2004 I e

upto Jonuary, 2004 semester

Seciion B is meont only lor studehts tegisteted

Jor M3'41 frcm July, 2004 semester onurards

Secfion C is compulsory t'ot oll the students

MS-41 @P . T . O .

SECTION A

Note: Attempt any tbo questions. AII questions carrg20 marks each.

1. "The most challenging job before a finance manager is toensure a proper trade-oJ{ bet$,een risk and return v,,hil€making financial decisions." In the light of the statem€nt,illustrate with suitable examples, how a Iinance managerensures desired irade-off behre€n varlous wo*ing capitaldecisions_

2. (a) State with r€asons whether the {ollowing statemenisare true :

{i) A finance manager must enswe a Cunent Ratioof 2 for his^er firm - neither more than 2 norless than 2 for achieving optimum workingcapital structure,

(ii) A sound working capital financing plan shorldensure that all the current assets must be

. financed through current liabilities.

(iii) Cash Flow Statement is same as Frmds FlowStatement.

(w) The only motive to hold inventory in a firm isPrecautionary Motive.

(v) Carrying idle cash involves an opportunity costwhich is measured through int€rest rate.

Ms-41 @

3. (a)

State the objectives a finance manager follows while

managing working caPital lor a manulacturing lirm

Also describe the differences between ihe P€rmanent

Current Assets and Temporary Cunent Assets.

Whal do you understand by Ageing Schedule of

Acco$ts Receivables ? Explain lts significance a|1d

discuss any tro methods to anpedite the cash

collection from the debtorc in a firm.

Explain and discuss six C's a tinance manager mighl

consider in evaluating the credih^/orthiness of a

prospective customer,

MS.41 o P.T.O.

SECTION B

Note t Attempt on9 tu'o questions. All qu3tions cong20 morks each.

1. (a) Deline any fioe ol rhe following :

(i) Fluctualing or Temporary Cunent Assets

(ii) Acid-T€st Ratio

{iii) Operating Cycle

(iv) Trade Credit as a Source of Working CapitatFinarce

Cash Floru Sratemerlt

Liqrjdit as ar objective of Working CapitalManagement

(b) A firm's cunent assets and curent liabilities are

Rs. 160 lakhs and 100 Iakhs respectively. How much

maxirnurn can it borrow on a shorf-lerm basis so as

to meet its demand for additional inventory wjthout

reducing ihe cuffent ratjo below 1 25 ? Assr.rme that

the whole arnount boftowed on shoft-term basis

wodd be in,,€sted in inventory only. Nam€ ant four

sources of financing wo*ing capital requirem€nt of a

firrn.

(v)

{vi)

Ms-41 o

2, {a) "Merely increasing cLrrrent assts oi a Jirm does not

nece5carilv r€duce iis liqu'diry risk : insread rt is the

composition of liquid assets and nonliquid assets in

the overall siructure of current assets which is the

most important factor in reducing its liquiditg risk. '

In the light ol this statement, define Liquidity Risk as

a relevant concept in the overall management of

working capital. Also, discuss your opinion/position

in this regard.

(b) "Holding of cash in a firm is similar to that of

holding ol inventory and therefore, the principles of

Invenlory Management can be applied to Cash

Management." Do you agree with the statement ?

Support vour answer wth nec€ssary r€asons and

aQmPles.

MS-41 o P . T . O .

x x x x x x x

O O O \ O r O L o ! )O O @ F - \ o +

o S F O N O Oo o

$

€ 9 6

* : i E p

s : ; 9 * 3 ?E d | i s o a 6 ( i

o r l o F o \ o \ o o r o l o

o o o

.5J

p . ?

, e S 5 , n I- u F g j e E - i l i $Y t T s € s F 5 , 3 i :# # . ' F E . g - - F ; J

The Balance Sheets of Narr-rla Lid. as at the end of2003 ar'd 2004 arc gven belo\^] :

fl

MS-41 @

A ptant purchased for Rs. 4,000 (depreciation,

Fts. 2,000) was sold for cash at Rs.800 on 30th

Spptember, 2004 i an item of fumiture was prrchased

for Rs. 2,000 during the year. Depreciation on plant

was provided at 80/6 on cost (excluding sold out item) and

. - ^ l ^ ,on fumiture al I2;% on average cost. A dividend ol

221% on onqinal shares was paid2 -

You are required to prepare a Fund Flow Statement

lor the year 2004.

Ms-41 @ P.T.O.

SECTION C

Note: Attempt any three questions. All questions carry20 morks eoch.

4. The bottom-line ol Reliable Industries Limiied is underheaw pressure. The management of the company isworried about th€ same. They have appointed a sftategicgroup working on a strategic plan named as 'Shoot-up

2005' to lmprove both the topline and bottomline ol thecompany jn tuture. Amang otbers, one issue with wlicb thegroup is confroniing is that of th€ credit policy. At present,the company provides 30 days credit to their customers andis having sales of Rs. 50 crores. lt is estimated tbat thecompany s cost of capital is 10% and the ratio of cost tosales is 850/o. The group is planning to increase the creditperiod from 30 days io either 45 days or 60 days so as togive a boost to sales. It is forecasted that such an extensionin the credit period world push sales by Rs. 3 crores and5 crores respectively and the proportion of bad debts onthe additional sales would be 8%.

Assume thai you are a member of the group and havebeen requested to evaluate the impact of extending thecredit period on the profitability of the company.Therefore, you are required to evaluate both the proposals

and give your suggestion whether the group should gofor an extension of the credit period or not. lf yes, ther'should it be for 45 days or 60 days ?

Ms-41 (t

5. (a) The following information has b€en otltained from therccords of PYN Industnes Limited about th€ir ten

It€m No. Annual Usage(Quantity;

Price Per Unit(Rs.)

3 1,500 10.0019 1,000 0 8 0

22 500 190.00

23 2,500 o.77

2,000 72.5036 150 10 00

47 2,250 0 1 0

54 900 8 3 3

6a 1,200 62 50

82 650 20 00

Classily lhe items inio various caiegories using ABC

classification technique.

(b) Rajiv Tools Pri,,raie Limited is expecting to have

Rs. 25 lakhs in cash ouilays lor the next year, The

company has determined its opportunity cost oIholding cash as interest |ate of 12.5% and wil( incur

a cost of Rs. 90 each time it bonows (withdraws).

Assuming that ihe cash outlays will be steady and

uniformly distriblrted over the next year, determine the

optimal borrowing or rviihdrawal size for the companyusing Baumol's model.

MS-41 @ P _ T . O .

6. (a) An organisation orders an item in lots of 1300 units

for which it has 5200 units yearly demand. The

holding cost per unit p€r year is Rs. 10 and lost sale

cost per unit is Rs. 50. Quartedy demand distribution

is as follov,rs :

Demand {in units) Probability

1150 0.10

1200 0.05

7250 0 1 1

1300

1350 0 0 9

1400 0.07

7450 0.03

You are required to determine optimum safety siockfor the organisation.

(b) Explain the following :

(i) Commercial Paper

(ii) C€rtificate of Deposits

MS-41 o 1 0

A firm has filed a request for working capital finance wiiha commercial bank. You ore requested by the bonk topreqre an estimote of the borking capital requirementsoJ the lim. For that you may add 10% of your estimatedfigure of working capital requirement to accoum rorexigencies. In this regard, you have been provided followingnecessary infofmation :

Projected Profit and Loss Account of the lirm for

the next year

(Rs.)A. SalesB. Cost of Goods SoldC. Gross Profit (A - B)D. AdministrativeExpensesE. Selling ExpensesF. Profit before Tax (C - (D+E))C. Tax ProvisionH. Prolit aft€r tax (F - G)

22,47,OOO16,37,1006,09,9001,49,8001,39 ,1003,21,0001,07,000

2,l4,OOO

The cost of goods sold is calculated as Lhu" .

(Rs.)Mat€rial Used 8,98,800Wages and other Manufacturing Expens€s 6,68,750Depreciation 2,51,450

Less : Stock of Finished Goods (1070 ofProducts not sold)Cost ot Goods Sold

18,19,00

1,81,900

16,37,100

Ms-41 @ 1 1 P . T . O .

The ligures given above relate only to th€ goods thai havebeen finished and not to work-in-progressi goods equal to20o/o ol the year's production 1in terms of physical units)are in progress on an average requiring full material butonb 50% of other €xpenses. The firm has a policy olkeeping two months' consumption of material in stock. Allexpenses are paid one month in anears. Suppliers olmaterial grant on€ and a half months' credit; sales are 25%cash while remaining sold on two months' credit.

8. Wnte short notes on any lioe of the tollowing :

(i) STIFP (Short Term Integrated Funds Planning)Process

(ii) Role of the Discount and Finance House of India(DFHI) in the.development of Indian Money Market

0ii) Srone Model for ellicient cash mandgement

(M Basic principles of bank lending

{v) Trade Cfedit - a cheap source for financing workjngcapital

(vi) Collection Period Analysis - a tool for ReceivablesManagement

Ms-41 (D 1 2 1,000

fM"-rO-lMANAGEMEM PROGRAMME

Term-End Examination- December, 2OO5

MS-42 G) ; CAPITALFINANCING

Time : 3 hours

INVESTMENT ANDDECt$rONS

Maximum Marks , 100

(Weiehtase 7Wa)

(i) There are three Se.fions A, B ond C it) this poper'

(ii) Students who hove registercd lar MS'42 prior to

Julg 2004 semester'shauld ottempt an? fioeguestions from Sections A snd C.

liii) Students uho hooe registeted for MS-42 lor July

2004 semesier and aJtetu)atds, should ottempt any'

fioe questions fron Sections B ond C.

(iv) All quesrions carrg equal morks.

(v) Present Value tables uill be protided, iJ ssked Jot

MS42o P.T.O

2.

3.

I .

SECTION A

{a) What do you understand by Time Value of Money ?

(b) "Obtainins Positjve NPV implies ihe same thing asminimising the cosi of capital.' Explain thisstatement with examples.

Dstinguish betw€en Commercial Banking and MerchantBankng. How do both difter from Development Banking ?Explain the funciions undertaken by State le\€ldevelopmenl banks in lndia.

What are Righis shares ? How do ihey ditfer from Bonusshares ? Why do companies issue Rights shares ? Explainwith an €xample tbe ellect on the shareholder's posiiion iihe does noi subscribe to ihe Rjghts issue.

MS42o

, SECTION B

l, What do you understand by Corporate Restructurjng ?

Whai lorces motilbte the corporai€s to restructute ?Discuss the dimensions of Corporate Reshuciuring.

2. What innovations have taken place in equity products ?Discuss their significance.

3. Wnte explanarory notes on the foljowjng i

(a) Supplier's Credit

(b) Commercial Paper

(c) Factorihg

(d) Pordoliolnv€stment

MS42@ P . T O

SECTION C

4. Th€ €xisting capital structure of a company is as follows :

Paid up share capital of Rs. 10 each

Resewes and Surplus

14olo Debentures

Rs. 10 crore

Rs. 15 crore

8s..15 cror€

An expansion plan requinng Rs. 20 crore is being

considered. The plan is expected to increase EBIT by

Rs. 6 crore ov€r its present level of Rs. 8 crore. The

. following three plans of financing have been sugg€sted I

Option 1 - To issue equity shares of Rs l0 each at a

premium of Rs. 40 per share. The share issLre expenses

will result in the net proceeds of Rs. 40 per share lor

every new share issued.

94j9!3 - To borrow at 15% from f'nancial instituiions

Option 3 - To boftow Rs. 10 crore @ 15Vo and the

balance to be rais€d by issue of equity shares as p€r th€

t€rms indicated in Option 1.

The applicable rate of income iax is 40%. Find out

(il Tn€ expansion ptan ic to b€ coasrdeted or v il rhe

EPS increases from its pfesent leve! lndicate' whether the expansion plan qualifies for

consid€ration ?

(ii) At what level ol EBIT, will the EPS be equal to zero

under each of the financing aliernatives ?

(iii) Determine the indifierence level o{ EBIT among the

ihree alternatives and also the corresponding EPS.

MS-42 @

A manulacturing

b,rdgeting pYojecis

Liabililies

Equiiy shar€capital

Prel., shar€capiial

Retainedearnin9s

Debeniures

CuIrentLiabilities

company wighes to dei€rmine th€

cosi of capital o{ €\'aluating capital

its Balance Sheet is as follows :

Balance Sheet

Rs. Assets

Fixed Assets 25,00,000

Curent Assets 15,00,000

Rs.

12.00,000

4,50,000

4,50,000

9.00,000

10,00,000

40,00,000 40,00,000

Add i t io nal lntor matio n :

{i) 20 year 14% Debentur€s ol Rs. 2,500 lace value.

redeemable at 5% premium can be soLd at par;

flotation .cost is 2%.

(ii) 15%o preference shar€s : Sale price Rs. 100 per

sharei Flotation cost is zEo.

Uiil Equrly 'ha'pc : Sdle p'ice Rs. ) 15 per ,hare.

Flotaiion cosi is Rs. 5 per share.

The corporale tax raie js 55%.

The expecied grounh in equiiy divid€nd is 8olo p€r year.

Expected dlvidend at th€ end oJ the current financial year

rs Ks. l l per snareCalc\rlate we:ghi€d average cost oi capital.

M S 4 2 @ P.T. O

6. Whai tools ar€ available to the project manag€r to use in

conholling a project ? ldentify some characteristjcs of agood coffror s9stem.

What do you understand by ;ocial cost benefit analysis of aproject ? What lactors wolrld you ial€ into considerationwhjle undertaking such an anallsis oJ a project ? Explain.

ABC Co. Ltd. is consideiing ihe acquisition oI a large

equiphent to set up its factorv in a baCkward region for

Rs. 12,00,000. The €qujpment is expected to have aneconomic useful life of 8 years. The equipnell can be

tinanced either with an 8 years term loan at 1496,inier€st,

repayable in equal instalments of Rs. 2,58,676 per year,

or by an equal amount of Jease reri pgr year. In both casespaynents are due at ihe end of the !€ar. The equipmenl is

subject io the straight line method of d€preciation for taxpurposes. Assuming no salvage \ralue after the 8 year

useful life and 50ok tax ftte, r{'hicI of the financing

alLernatives shoL d it selecL ?

8 .

MS42o 1,000

I MS.43 o I

MANAGEMEM PROGRAMME

Term-End Examination

December,2O05

MS-43@ : MANAGEMENT CONTROLSYSTEMS

Time : 3 hours Maximum Marks : 700(Vletghtase 7V/o)

Note ,

(i)

(itl

There ore three Secrions r Secfioh A, B and C.Section A is meont for the studehts a7ho hoDeregistercd Jor MS43 before Jdnuary Z0OS t.e. uptoJuly 2004 semester.

(Iiil Section B is fieant lot the studehls uho hoeeregtstercd lor M5.43 Jrom January 2OOS ser,esteronuJdrds.

(io) Attempt cny thtee questions lrom Section Aor B. Each question h Sectton A ana B crfties20 marks.

(v) Section C is compntsory lor oll ond corries4O 'l|,otks.

MS-43@ P.T .O.

1. {a}

tb)

2. lu)

{b)

3. (a)

(b)

4. (al

SECTION A

Desclibe the characierisiics of Management Control

Ststems.

Can an organization have more than one type oi

responsibilii!' centers ? lllusirate with the help of a

charf/dia$am.

What ar€ the advaDtages o{ performance related

compensation in th€ context o{ pro{it ceniers ? What

pitfalls should an otgarization guard itself against

wh€n jntroducing su.h a schem€ ?

Dscuss lhe merits and demerits ol "oppodutrty cost"

a. u mLthod lo. t untf"l pri"ing-

Explain ihe three comppnenis ot Revenu? Budgeis'

What is an MIS and \,,rhat ate the elernents ot a solrlo

MIS ? ln what way is an MIS helpful in an MCS ?

Dis<uss in general the structure of a multi_projeci

organization. What general arrpfoach codd be

folloqJed in designing proiect orga;izations ?

Dfferentiate belween ptofit and oon'profit

organizations. What implications would the

difierences, if any, have {or management conttol m

non-profit organizations ?

{b)

lils-43@

5, Explain any thr€e ol the folowjng:

(4 Mujtipje Wrfom€.nce criteria for evaluatingperforrnance of investm€nt center md|agers

(b) Zero,basedbudgeting

(c) Molivational value ol p,ofir cenlers

{d) R€sponsibilityReporiing

(e) Residual Income (RI) ds a measure of performancemeasur"menl ol ;n!€stmerr center5

MS-43@ P . T . O .

2.

3 .

1 .

SECTION B

Explain the relevance ol Porter's five forces in designing a

compeiitive slmtegy for knowledge based organisations

Critically analys€ the various methods us€d lor determining

Wdte short noles on the fo[owing :

(a) Total Quatity Management {TQM)

(b) Business Process Reengineering (BPR)

(c) Management Control in Proiect Organisations

(d) Investrnentcentres

How is a senlce organisadon differenl from a

rnanufachning organisation ? How do these dilferences

aflect tbe coBftol Sstem design in a service organisalion ?

Hoff do c\rltural diffelences across nations aher the

ManagemenL Control System. ? Explain.

4.

Ms-43o

SECTION C

6. Read t-he following cds? carelulfu and answer lhe quesrionsgiv€n dl (he eDd j

Abtarns Company

Abrams Compang manufaciur€d a wide vari€ty ofparts ldr use in authomobiles, trucks, buses, and larrn' equipment. There were three maj.or groups o{ payts :ignition parts, bansmissioo parts, and engine parts.Abraing paris \^,ere sold boih to original equjpmentmanufacturerc (OEMS) and to wholesalers. Tl1ewholesal€rs, in tum, resold the paris to retailers who soldtt|€m as repiac€ment pafis to consum€rs. The lattermarket was ca ed th€ ,.attermarket,,(AM).

Product and Marketing Dlvislons

As showh jn the pafial organizafion chart in E\hibit1, Abrams had a ,,product

division,, for each of ts fhreepad groLlps. Each of these produrt dMgions was managedb9 a vice president and general manager who wasexpected to earn a target reiuri on investment (ROl).Lach producl division mdnulncrured ndils in 5everal planlsand sold a major portion o{ its manufactured parts toOEMS. Each product division had jts separate OEM salesdepartment (see Exhibit 1) that work€d ciosety with OEMS

- io develop new products or change existing products. Theremaining manufactured pads were sold by the pfoduct

Ms-43@P , T . O .

division io Abrams' fourth division catled tlre AM

Markeiing DMsion (see Exhibit 1J or "AM Division" as it

*as known to managejs This dMsion itas also managed

by a vice president and general mataget and was solelv

responsible for marketing Abrams' entire line ot patts to

AM wholesalers. The AM dMsion operated se!€ral

company-own€d pads distrjbution watehouses in the us

and {oreign markets The AM division was also expected

to earn an annual teturn on inveslrnent talget'

lnside and Outside Sales

ln 1992, tbe {our divisions' sales totalled 8s 500

Inillion, which included "inside" sales of Rs 100 million

from Lhe three product divisions to the AM division The

Rs. 500 million sales ivete recorded as approximately

Rs. 130 million for the ignition Paris division' Rs 100

million {or the transmission paris division' Rs 90 mlllion

for the €ngine parts di\ sion' and Rs 180 miltion tot the

AM division. Alter elimtnation of Inside sales' Abtans'

outsid€ sales totalled about Rs 400 mlllion Because of

anticipated gto&th in ihe Pads' atiermarket due to tbe

irr..nu.e in ihn number of vehicles being ddven and their

ages, one o{ top management's goals {or the AM Di'isron

was fot jts sales to reach 50 dercent of Abrams toial

outsid€ sales

ROI {or the Manutacturing Plants

Continuing the compang's ROI strategy' each

riranufacturing -plaht

within the three product di!'rsions had

Ms-43o

an annual ROI target to meet. Each product division,sOEM sales were traced to the plants ihat made the parts.The plants maintained finished goods inv€ntories andshipped parts directiy io OEM customers. A plant s ROItarget was based on budgeted profit (includins allocationsof division and corporate overhead erperrses and animputed income tax expense) divided by actualbeginning-otthetear net assets (delined as totat assets lesscurrent liabilities), Exhibit 2 contains an exampte oi theRochester plani's ac|ual 1992 ROI computation. ActualROI was actual profit divided by actualbeginning-olthe'year net assets.

EXHIBIT 1 : Partiat Orsanizaton Charr

Chiel Execulive 0llicer

Chisl 0perating 0f licer Indusrrial

Genela lMAL4 ltark€tins lgnirionPans

0ivisionEngine Pads

Division

0all

Ms-43@ P . T . O .

Top manag€ment's stated reason for including

allocaied overhead expenses and iaxes in determining

prolit was to have the plant profit figute resemble the

profii calculation for extemal financial reports io

shareholders. The CEO lelt this gav€ a plant manager a

clearer perspective of the costs ol doing business, the

plant's coniribution to the corporate bottomline, and

added more realism to ihe plant's results

The beginning_of-the_year net assets amount was used

in the ROI measurement because, in management s lT ew'

investment added during a given year resulted in liide, if

any, incremental prolit in that year' The inlesbnent

would lik€ly increase luture profits Top management telt

lhat sueh irNesL'rents mighi not be proposed i{ }r}anagers

werc penalized (in the form oI higher net assets and

lowet ROI) in the Jirst year of the |1ew investm€nt'

Because the investment base for the year was "frozen at

(he beginning-oFlhe-year level. lnaximizing profit during

the year was €quivalent to maximtzing ROI FoT

beginningof-the_year net assets. cash and receivables

were allocated to plants on the basis oI sal€s revenue'

while inventories, propertg, plant, equipment, and current

liabilities wer€ traced specifically to -each plant' Histotical

cost tess accumulated depreciation (book value) was used

to value propefg, plant, and equipment The AM

MS-43o

division's ROI was measured in ihe same ftanner as the

plants' ROIS.

Marketing Strategies

The OEM sales departm€nt within €ach of the three

product divisions worked with the OEM s etgineets to

develop inno\raiive and cost-e{tective new pa s lo meer

the cuslomets requireftents and serviced c\rstomeY

accoutts lor'parts already being supplied to the OEMS'

Each of these OEM sales departmenls iras expected to

meet an annual sales revenue target Becuase the prcduct

divisions' custom€F (OEMs) were dillelent {rom the AM

dir,islon's ;ustomers, top management did not teel ihat

the OEM and aftefinarket sales organizalions should be

cornbined- Even the three product dMsions' OEM

marketing efforts were not €onsoljdaied in one sales

orsanjzation because each iivision's OEM marketers

tended. to work with dilferenf people within a given

OEM'S organization (i.e, ignition, ftansfiission, and

engines). Moteover, trvo oI the three produc( dMsions

\tete independent companies before being a'quired by

Abrams. Thus, there was a long ttadition ol doing their

own OEM marketing.

P.T.O.Ms,43o

Exhibit 2 : Acfual 1992 ROt Computation _Rochestar phnt

Abra|t|s Compary - Thnsmi$ion parts DivisionROCHESTER PI"ANT

Profit and ROt Statement, DeceEber 31, 1992

Sal€s revenue

Cost of goodsRs. 124,866

73,230Gross margin .. . , . , . , , . . . , , . .

Operating expenses,... , , . , . , , . .51,636

20,792

11,340

3,42016,084

4,825Rs. 11.259

r992

Dlrsion e\penses assigned

Corporate a\penses assjgned

Profit before ta,\es

Ta,Yes imputed

Profit

Net Assels Assigned as ol January I,

Toial Assets :

Cash and receivabtes

Inventories

Prop€fty, plant & equipmentTotal fus€tsLesg current liabilities .,. 26,135

Rs.98.300Return on rnvestmeri 11-50k

Rs.25,000

12,875

86,560

724,435

Ms-43@ 1 0

According to Abrims' executives, the factors critical

to success in the OEM market were ; the abiliiy to design

innovative and dependable paris that met the customer's

qualitg, pedormance, and weight speciJications; meetrng

delivery schedule requirements so that the OEM could

minimize its own parts inventonesi and controlling costs

Cost control was important because the market was very

pnce comPeiitive ln the aftermarket busin€ss' a"?ilabil8

of parts was by far ihe mosi importani factor to th€

wholesaler, followed by qualilv and price

Incenti!€ Compensation Plan

ApProximately 50 Abrams line and staf{ managers

padicipated in an incentive bonus plan The rupee

amount ol ihe co$orate_wide bonus pool was established

by a fixed lormula linked to corporate eamings per share

Each Participant in the bonus plan received a numbet o'

standard bonus poinis The higher the padicipant was in

the oryalrizationd hierarchy, ihe more standard points he

or she received The iotal of these points lor all

participants was divided into the total bonus pool amounr

to arrive at a standard rupee award per point Then' this

standard rate was multiplied by ihe pariicipant's number

of standard points to arnve at the pai'ticipaDt's siandard

MS-43 1 1 P.T .O .

MS,43

bonus rupees. How€v€r, the actual bonus couid vary{upward or downward) by as much as 25 percent at lhediacretion oI the participant's superiors.

ln the case of a plant manager, the standard awardalso was adjusted by a formula that r€lated percent ofrlandard award to the plant s profir vdridnce (budgeLversus actuaj. profit). For exampie, if the plant,s actualprofit tor ihe year exceeded its budgeted profii by4 percent, the plant manager's bonus was raised from100 percent ol standard to 110 percent ol standard. lnmaking ihis bonus adjustm€nt, th€ plant,s actual profitwas adjusted {or any favourable or unlavourabl€ grossmargin variance caus€d by sal€s volume to the AMdivisjon being higher or lower than budgeted. Forexampler if a plant's lavourabl€ profit vaiance wasattributable to a favourable gross margin voume varianceon sales to th€ AM division, the plant manager,s bonuswould not b€ raised above 100 percent of standard.Simiiarly, the piant manager would not be penalized if theAM divison actually purchased less from the plant thanthe amount that was agreed to by AM dMsion when theplani's annual prof't budget was approved by top

1 2

Managemenl Comments

ln general, top management was satislied with the

present management systems and performance

measurement scheme- In discussions with the casewriter,

however, they mention€d ihree areas ol concem

First, there always seemed to be a lew disputes over

transler prices of parts sold by the product divisions to

the AM division. Whenever possible, by corporate policy,

internal sales of parts were made at outside OEM ma*et

prices- If a part had been sold as an OEM part s€veral

years earlier, the orjginal OEM market price was adiusied

upward for intlation lo anive at rhe sales pr:ce lo the AM

division. This procedure caused vittually no disputes

Problems occurred when the part being transferred was

strictly an AM division part.That is, it was a Pait never

sald by Abrams in the OEM market and for \;hich th€re

was neither a cunent OEM outside market price nor a

former OEM market plice that could be adjusted Ior

inflation. Usually, such transfer price issues were resolved

b9 the hxo divisions involved, but occasionallv the vice

pesidml o{ finance was asked lo aYbiuaie a dicputd

MS-43 1 3 P . T . O .

Second, top rnanagement fett that the p;oduct

divisions too often lended to treat th€ AM division as a

captive customer. For example. when the AM division

and an outside OEM customer were placing compeiing

demands on a specific manufacturing ptant, ii appeared

that the plant often favoured the OEM cusromer oecause

the OEM austomer could take its business elsewhere,

whereas the AM division could not purchase parts

outside. Top management was not willing to l€t ihe AM

division seli a competitor's product, fe€ling this would

rellect adversely on th€ overall image oI the company.

The AM division was expected to convince ih€

appropriaie plant manager to undedake the.manufaciure

ol i ls pan needs.

Thid, top manag€ment felt that both the AM

division and the three product divisions canied excessive

inventories most ol the year. The vjce president ofplanning said, "Thank goodness we have a generous

Christmas vacation policy here. AL ledsl fie invenlories

get down to a r€asonable level at year-end when ourproduction volume is low because of a large number of

employee holiday vacations".

l\rs-43 1 4

Questions ,

(a) Elaluate each of the concerns expressed by top

management, and iI necessary, make

Yecommendations appropriate to the ctcumstances

described in the case.

{b) What is your overall a'?luation ol Abrams's

management control system ? D€scribe any strengths

or weaknesses that you identilied but did not include

in answering the previous qu€stion. mai changes, if

any, would you recommend to the top management ?

MS,43 1 .000

MANAGEMENT PBOGBAMME

Term-End Examination

December,2OO5

MS-44 @ : SECURITY ANALYSIS AND. PORTFOLIO MANAGEMENT

Time : 3 hou's Moximum Morks r 100(Weightage 70%o)

Note : Attempt ony fiue questiohs. All questions cottyequol morks. Present uolue and annultg tables areto be prootded, il asked lor

l. {a) How are the investors in lndia a{fected by taxes in

respect ol investrnenis ? Should ti€ i ,lasiors consdef

tax inc€ntii,es while plaDning their pordolios ? Discuss.

(b) Betneen self regulation nnd legisiatile regulation, $,hjchjs more relevant for India and why ?

2. (a) What is interest rate risk ? How are '"alues of bonds

affected when the Darket Ete of inierest changes ?

lllustrate your answer.

Ms,44 @ P.T.O.

3.

4 .

{b) A Rs. 100 perpetual bond is cur.ently seiling forBs. 95. The coupon mt€ of interest i. 13.5 per centand the appropriate discouni rate is 15 per cent.Calculate ihe vaiue of the bond. Should it bebought ? What is its curent gield ?

Criticaily examine the role of Securities & Excbanse Boardof lndia (SEBI) in regulating the Primary and Secondarymarkets in fhe country.

What are ihe ilajor cdticigms ot the Technical analysis ? Dothe Tecfinical analysis and the Fundarn€ntal anal)lsis give

complementary informahon about s€cudii€s for makinginlormal decislons ? Explain.

(a) What is an eliicient poftfolio ? How does the efficientfrontier €hange, when the posstbilit! o{ lending andbonowing at a lisk free rate is introduced ?

1b) Prathiba & Co. recently paid an annual dividend. ofRs. 4 50 per share. During th€ same period, the

eamings ol the company were Rs. 8.00 per sha(e.The required {ate o{ rcturn \rith similaf risk i9 10%.Divid€nds are expecled ro grow at a consiant rati of

8o/o per gear foi an indefiniie period- Calculate thenomal pdce-earnings ratio oI the company.

Whg do people inv€st in Mutual Funds ? Dscuss the tariolrs{actors that are tal@n into consideration b9 the FundManager while inaestins in {i) equily shares and {ii) debt

MS-44@

Write short not€s on any lour of the lollowrng :

(a) Default risk

{b) Random Walk hypothesis

(c). Constant Rupee Plan

(d) Bond Convexig

(€) Odd Lot tradins

(0 Fiher rule

Ms-44@ 1 .O00

MANAGEMENT PBOGRAMME

Term-End Examlnation

December, 2OOB

Maximum Morks : 700lWeishtoge 70o/a)

Note: Attempt any five questlons. All questions corryequal rnsrks.

l .

2.

(a) Elabonte the economic problems which '"arious kindsof imbalanc€s in international flows could create.

What measures would you recomm€nd to correct such

(b) What are diff€rent theories of internaiional trade ?How rel€vant are M€rcantilists '"rews in the modemday world ?

Wriie an essay on "Evolution of international monetarysystem and Indian exchange rate system".

Ms-45 @: INTERNATTONAL FINANCIALMANAGEMENT

Tifte : 3 hours

Ms-45 o P . T . O .

3.

4 .

What do you understand bV Letter of Credit ? Explain its

significance in international trade and briefb explain vari a

\pes of Letters of Cr€dit.

la) "The extent anal nature of exposure dep€ncls on ihe

market segment in which the firm operates. " DiscLrss

with suitable examples.

(b) What do 9ou mean by Jorelgn €xchange rate ? Do

{oreign exchange rates show reciprocal relationship ?

Give suiiable examples,

(a) "Under current Indian busines,s environment,minimising exchange loss is a better approach than

maximising €xchang€ gains." Comment.

(b) Briefly a\plain the special features of the Eurobond

market.

(a) What do you understand by exposure measurement ?

Explain the intemal lechniqu€s of exposure

measurement,

(b) How can you evaluate global linancial choices ?

Disctlis. in brief. any tour of lhe loilowing :

(a) Posi-shipmenifinancing

(b) EcGc(c) Strategies of Direct Inveslment

(d) lnternational Equi& markets

(e) Unique markets in lnlernational Financial System

lD T€chniques ot transl€r pricing

6.

Ms-45 @ 1 ,000

MANAGEMENT PROGRAMME

Term-End Examination

December,2005

Maximum Marks : 100

(Weishtoge 70Vd

Note t There ore thrce Sections A, B ond C.

Secfion A is compulsory for oll the students.

Section B is meant only lor the students. who hdueregistered lor M346 prior to Julv, 2005 i.e. upto

Jonuary, 2005 semester.

Section C is meant only Jor the students rcgistercd

Jor MS46 lron Julp, 2005 semester o4words.

AII questions cany equol marks.

MS46O : MANAGEMENT OF FINANCIALSERVtCES

Time : 3 hours

M546@ : P.T.o

SECTION A

AtremF t any anfee quesr|ons.

1 .

2-

Explain tbe concept and inpoftance oI. financiat seMces.

In what ways are the products offered by ihe linanoal

seMces firrns dilfereni from the products oI the indusirial

enterprises ?

D€sitbe'ttie axtemd and ihtenal dsks fhai are iaced by

financial s€rvices companies. offering (i) stock broking

sewices, and (ii) fee based eMces.

3- Discuss in detail ih€ wotl'ing mechanism and {unctions of

an Assets Management Co.-rpany set up to rnanage the

Iunds of the mutual fund.

4. 'Crgdit card organisations do not offer any additional

facilities and seruices to their customers besid€s providing

them the credit faciiig.' Do Wu agree ,,nth this

statement ? Gve r€asons and explain the present position

in lhis regard.

5. Wirat are the important aspects which need to be

incorporat€d in factoring agreenents ? Enuirerate the

advantages and disadvantages of {acloring.

MS46o

SECTTON B

Atrernpl dny turo questpns.

6. Dscuss the various Pre-lgsue and Post igsue aclivities thatare petormed by the merchani banker ior rdising fundstrom th€ capital markel.

7- What are Debt ma*et' and 'Equi& rnarket' ? Explain th€initiatives that are necessary lor making the debt marketvibrant,

8. Write short noies on any four I

{a) Zero Coupon Bonds

{b) Credit Ratlng process

(c) Process of Securitisaiion

(d) Global Depository Receipts

{e} Nalional Stock Exchange

(0 Private Placement

Ms46@ P.T,O.

a.

SECTION C

Atternpt ony trro questiohs.

What do you undeistand by Dematelia)isatjon of shares ?

Discuss the various stages invofued in the proc4ss of

switchjbg over to d€pository sgstem, Give advantages o{

the depository system.

De$ne lnsuranc€ indicating its basic characteristics. Discuss

lhe \,?rious risk which are inlurable.

Write short notes on any torr :

{a) Financial and Technical Appraisal of Projects

(b) Burglary Insurance

(c) Product Liability Insurance

{d) Securitisation ol housing loans

(e) Hire Purchase system

{ll Inan Syndication

4Ms46@ 1,000

MANAGEMENT PROGRAMME

(Banking and Finance)

Term-End Examination

Decembet, 2OOS

MS-422@ : BANK FINANCIALMANAGEMENT

Time ; 3 hours Moximum Marks . 100

Note, Attempt ony fite questions. All questions carryequol morks.

l. Why do the firms raise funds ttyough sale of their securitiesin the prlmary market ? Bdefl9 explain the debt insirumentsthat are issued in the Indian money mark€t.

2. What are diflerent sources of owned funds of a Bank.Briefly explain the \,arious items that comprise tiet-l andtier-ll capital ol a Bank.

3. Elucidate ihe factors that aflect ibe cost of funds ol a Bark.AIso anaiyse the reasons for higher mte of inte/€st in Indiaas compared to develop€d courtries.

)" l,rs-+zz@ P . T . O .

5 .

6 .

8.

Dis€uss the salient feah.lres of :

(a) Money Market Mutual Funds, and

(b) Treae.rnJ Bills.

Explain the methods general$ {ollow€d by managefs whilee\,aluating projects. Brie& discuss the techniques ofm€asudng the project {isk.

Bnng out the signilicance ol 'operational risk rnanagement'in Banl(s. Dscuss briefly the rnethadologi€s {ormeasurement of operational r'isk9 ar outlined by BasleCommitiee.

Whai do you mear by 'liquidity risk' in the conta{t of aBank ? Discuss the tools of liqujdiiy nik m€asurement andthe issues involved in managing this risk.

Wby is pricing ot products important for Bank ? Brieflyexplain the Pricing sirategies followed by Banks.

MS-422@ 1,000

MANAGEMENT PROGRAMME

(Banking and Finance)

Term-End Examination

December, 2OO5

Maximum Morks '100

NVeishrose 70Yd

Note; This pop€r consists oJ two Seclions A ond B

Section B is compulsory' Attempt any threequestions Jrom Section A. All questions corry equal

SECTION A

l. How does ihe family life cycle alfect the need for banking

products and se$ices ? What io your vrew would be the

most lucraiive F.L.C. segments lorihe following and why ?

(a) Ove(dratt facility

(b) Housing loans

MS-423@ : MARKETING OF FINANCIALSERVICES

Time : 3 hours

MS-423@ P . T . O .

2.

3 .

4 .

What is the significance of branding for marketing ofbdnkng product. ? Whar dre the key consrderations that th€bankers must keep in mind while iaking the brandingdecision ?

What are the sources of proj€ct financing in lndia ?Critically commert on Ventwe Capital as a financingmechanism for hew projects.

What are the differeni lypes of risl,s associatecl with pensionplans ? Comment upon the issu€s involved in pension tund

Wrire shon notes on any lhree ol t}le foltowing :

(jJ Performance measurement ol pension funds

(ii) Limirarions in marketing of Insuance seruices

(iii) Marketing mix for financial senrices

{iv) Housing finance market jn JDd;a

(v) R€lationshipmarketing

Ms-423@

SECTION B

6. Read the case gjven bejow ard a answer the questjons giyenat the end of the case :

Case Study

Indian Bank of Commerce and Industrg 0BCI) was€stablished in the pre{ndependence days in th€ 1930swith the headquarte$ in Calcutta and mainly serving thethen growing industrial centres ol eastem India. Theindustries in eastern India wer€ dominated by steel, coal,cok€, and manufacturing of engineering products such assteel castings, machinery and equipment, railway wagons,jute products, tea, etc_ Together with other major banksin the country, the IBCI was nationalized by the CongressGovernment led by prime Minister Indira Gandhi.

The det€rioration of IBCI started in mid-1970s whenthe engin€ering and iute industry in eastern India wasbadly aflecred by sLrikes. and industrial unresL, and declinein the traditional buslness. Th€ bonk with a large numberof bftnches in eastem lndia was badly atfected. Ii tried toexpand its coverage by opening new branches,particularly in the westem regjon, wh€re mere was anirdustrial boom.

MS-423@ P.T ,O .

The barrk had small branch presence ihroughout the

country. Even while dealing \rith corporate matket, its

specialization and concentration was on relail customers'

ln addition to a great reliance on an intensive dislribution

sgstem that \,.,as based on banks with large and incr€asinq

number of branches, IBCI l€lt that branch managerc w€re

the perfect channels of communication with its customer'

It was believed by the top management that branch

managers could push up th€ bank's grounh by projecting

the bank's image on both retail and corporat€ clienls

through organizational a5 w€ll as pe$onal influenc€' With

the government's emphasis on spreading banking services

to the less prildeged sections of the socieiy, tbe bank

implemented drives to attract r€tail customers, and carried

out expansion in line with this policy. These w€re th€

types of objectives and policies sei out by almogt all the

nationalized banks. The bank board felt that the clients

should be given personalized service with fYee access to

the branch managers at any time to solve their problems'

During tie last decade oI the tw€ntieth century, the

emphasis siarted to shift from service towards bank

profitability. lt was also feli that the competition in

banl'jng had become intense With the entry and grclt'th

4MS-423o

of private and foreign bank promoted by ihe

Iiberalization policies of successive governments in India,

the luture gro!.,th and profitability seemed to be difficult

'targets to achieve. It was felt that some of these new

entrant banks were quite capable of giving some oI the

seruces hee due to ihe com?etition. There{ote, the

competition to attract and hold on to high volume and

profitable customers was b€coming stiff

Despite the hish costs. the bank managemeni looked

at increasing the market shar€ by using 'ntensive

advertising, paficularly through television and print

media. However, this policy was also opposed by a

number ol senior managers due to the high expenditure

that would be involved. They feli that the firnds should

instead be used io carry out direct marketing as it enabled

the bank to target and focus on large or important

customers and markets.

In line with the other nationalized banks, product

d€velopmeni was quite stagnant The same standard

schemes were promoied by all nationaliz€d bank, and

yield€d similar rates ol interest. Due to its low protitabiliiy

too, the bank could not afford larg€ investment in product

development to promote high grov,{h. tn fact, when one

Ms-423o P . T . O .

of the smaller lndian bank decided to invest Rs. 50

crores in home banklng seruices, the matter was discussed

with astonishmeni by the board of directors of the bank

Current Situation

By January 2001, the profitabitity of the IBCI had

declined sharply, Yet reports published in Economic

Times and other business magazines suggested the

following trends in retail banking ;

(a) Retail linancial sewice customers were becoming

<tuite sophisticated in their reqLri{ement. They

e\pected to be given necessary sewic€s as cheaply as

possible. The knowledgeable writers and experts in

the industry were touting customer contact as the

main differentiator bet[een sen ces of different

(b) At the same time, a lot of experts were emphasizing

the electronic delivery system as ihe main vehicle of

delivering customer convenience.

The bank's curreni situation was such that the bank

was able io recov€r only 25ok of Ihe cost of ptouding

banking services through direct recovery lrom the clients.

Of ihe non-interest beaing costs 60-70 per .enI wete

MS-423@

accounted lor by the payment and accounts maintenance

services of the bank. In the case of individual custom€rs,

only about 10 per cent of the costs could be recovered

by direci billing. The bank had to find som? ways of

reducing the costs or iDffeasing the charges \tilhout

surrendering the competitive advantages.

The bank appoint€d a market research consultant on

a trial basis to carry out a survey of its customets in one

area of a city (Table 1).

Table 1 : Market Research of IBCI customets

A. What ls the best thing about vour bank branch

FactorP€rcentage of the

Custom€rs

Friendly and helpful staff 450k

Convenient banking services 30%

Quick banking seMce 15%

Eflicient operations 10%

Good advisory service 5o/o

Generally good

MS-423o P . T . O .

l

When Mr. Vyas, the marketing officer responsible for

this pilot project, presented the findings, a nlimber of

senior managers wete unhappy. They felt that since they

had been in banking business for well over 50 vears, they

should know what the customers want. "We have our

bronch managers who are daily in touch wiih our

customers, We need not waste any money on such

superfluotrs research schemes," they said.

Recenily, the management seruce commission of the

nationalized bank conducted a survey ol all the market

bank in the country, including some ol the leading

privaie and nationalized banks. The head of lBct's

customer servi.es division, Mr- Khanna, extracted the

following information from the national data, and, in

addition, prepared a comparison with a slightlv

smaller sized private bank as a further reference.

B. What is the rtorst thing about

Percentage ofthe Customers

Long queues during working hours

lnconvenieni opening hours and hotidays

Uncooperaiiv€ staff

Poor reception and seating

High charges

Nothing in particular

MS-423@

Table 2 : Main ltems forming part oI the Proflt andLoss Acount for vear 2OOO - 2OO1

Item IBCIBank

TypicalPrivateBank

N€t lnterest income (lnterest€arned less interest paid)

Other income

5.lvo

7 04/o

5 1o/o

2.7%

Total 6 7o/o 78 ' )Costs

Operating costs

Provisions for doubtful^ad debts

Profits before tax

0 5vo

5 6 %

0 8o/o

6 2Va 6 4 %

0.7% 7.40k

All the above ligures are a pefcentage of the total assetsemployed by th€ respective bank-

Tabl€ 3 : Customer distributioo by ag€

Age Group IBCI Bank o/o PrivateBank 7o

MajorIndian

Banks %

1 5 - 2 4 16 1 7

25- 44 29 39 35

45- 64 30 30

Ouer 65 24 19

MS-423@ P.T ,O ,

Table 4 : Socio-economic distribution of customers

Socio-economicGroup

IBCI Bank PrivateBank Yo

Malor lndianBanks

8

c 1 18 28 21

C2 37 30 2979 34

T a b l e 5 : D e p o s i t m i x

Deposit MixIBCI Bank Private

Bank %

Current account deposits 10 23Fixed and large deposits 16

Savings deposits 74 23

As a part of th€ bank's investigations for future expansion,ihe bank had also coDducted a small suwey of about 250existing customers to understand their inter€st in homebankihg. The results ol this survey are shown in Table 6.

Talrle 6 | Customet Interest in horne banlid.rg

Lettel ollnierest

For HomeBanking %

For HomeBanking/Shoppin gnravel

ak

High 30 25Medium 25Low 25None 20 23Not sure 0 2

MS-423o 1 0

The board ol directors' meeting was scheduled to be held. shodty to discllss the future dircction of fhe banks efforts

to retun to profitabili\r. It was f€lt that any such decisionwould have to be made after weighing all th€ issues ofcosts and long,term growth and profitability. The board ofdirectors planned to discuss the lollowing issu€s :

(i) Problem o{ current lack of profiiability

{ii) Whether to condqct further market r€search

. (iti) Whether io look at a proglamme ol opening 100

. more branches as a key groMh strategy

(iv) lmplementation of home banking syst€m at anestimated cost of 30 to 50 crore rupees.

The board of directors needed to make the dectsion urgently_

Questions :

(a) Identify the mdn marketing problems faced by IBCL

(b) What should be the main sbategies along which thebank can or should develop ?

(c) Should the bank invest jn 100 new branches ?

(d) Should the bank invest in the home bankng system ?Justify your answer.

MS-423o 1 t 1 ,O00

MANAGEMENT PROGRAIIIME

(Banking and Finance)

Term-End Bramination

December.2OO5

MS.424g : TNTERNATIONAL BANKINGMANAGEMENT

Maximum Marks , 700

Note : Attempt any tine questions. All questlons carryequol marks.

l. What are 'lntemational Enancial Organisations' ? Briefly

de$ribe their main categories and highlight their role in

the World €conomic development.

2, Briefly explain ihe deta s ol Basel Capital Accord, 1988.

Also discuss the amendments firade therein to incorpo{at€

market rtsk.

3. Is it nec€ssary for the parties to stipl ate the 'Choice of

Law' while carrying out int€mational banking transactions ?

What lactgrs in youl view influ€nce 1ie choice of law ?

Briefly discuss.

M5424@ P.T,O

4 . Discuss the diflerent types ol risks involved in the ForexDealing Room operations of a participating bank. Aisoexplain the process of eliminating/reducing these risks.

Discuss the 'multi fitcior approach' to risk management.Btietly explain some of lhe lypicat factors ihai could beconsid€red in this approach.

What is 'online banking' ? Explajn the roie of E-commercein Cross Border Trade.

Whai do you nrean by 'Currency Swaps' ? Bdefly expjaindifferent types of cwrency swaps. Also discllss thg benefitsand risks assoclated wiih these swaps.

E. Write short notes on any tour of the folloLving :

(a) Classification of Regulaiion on Intemational Banking

(b) Private placement

(c) Foreign Cunency Loans

(d) Foreign Bonds and Euro Bonds

(e) Risk Management Framework

(f) Causes of G'obalisation

6.

MS-424@ 1,000

MANAGEMENT PROGRAMME

(Banking and Finance)

Term-End Examinatlon

December, 2OQS

MS-425O : ELECTRONIC BANKING ANDIT IN BANKS

Time : 3 hcturs Maximum Marks : 70O(Weightoge 7O%)

Not€: Atrempt any floe questions. All questions caftyequol morks.

r. (u)

(b)

2. \a)

(b)

Explain how daia mining is us€ful to manage customertor\dhJ.

What are th€ management issues of netwo*implementation ?

Draw an E-R diagGm in a banking enuronment.

l^4rai is cryptography ? Describe the prowrties olgood crypLographrc algoflthm ?

Ms-425@ P.T.O.

3.

4.

(a) Explain the technolog risks jn banks.

(b) Explain IT Act, 2000. How is it rclevant to banks ?

What is System Aldit ? Whai are its basic objectives ?Distinguish betrreen System audit and Cornputer audit.

(a) E'(plain the applications of multimedia in banks.

lb) How does data mining $pport customer' intelligence ?

What is Electronic Data Interchange (EDI) ? Dscu6s themain elementg ol an EDI system.

(a). What is a Smart Card ? Dscuss diflercnt types of

(b) Explaln the components of ATM.

Write short noies on the following ,

{a) One-to-one biliing

(b) ComptrterTelephonylntegntion

{c) One-to-on€market,ng

(d) wAN

5 .

6 .

8.

MS.42s@ t ,oo0

MANAGEMENT PROGRAMME

Term-End Examination

December,2O05

Fs6rOl

Moximum Marks : 100

(Weightage 70o/o)

MS-52 €) : PROJECT MANAGEMENT

Time , 3 hours

Note :

(i)

Iti)

Atternpt an? three questions Jrom Section A, each

corrging 20 morks.

Section B is conpulsory and corries 40 m'xrks.

SECTION A

1. "Project Management has assumed great significance in

modem organisations." Explain. What are the different

tools and iechniques used in Poect Managemeni ? 20

Explain Project development cycle. How do you conduct

Pre F€asibility and Feasbility studies ? Give examples.

What are the different t!'p€s ot organisation structures in

projects ? Give a suitable structure for a road constructronproject.

202.

3.

MS-52 @ P.T ,O .

Discuss th€ importance of a good accounting s!,stem for6uccessful project implem€ntatjon. What are ille factorsthat afleci ptpject.cost and how can they:be cotrtrolled ? 20

(a) Discuss the usd of Cybemetica in Projeci. . 1 0Managemenl.

(b) Explain Contracts planning and ContEct negotiationgiving examfiles. 1 0

MS-52@

SECIION B

6, "The time spent on preparing a Delailed Project Report(DPR) is rellected in tfie success ot a project." Explain.Enum€rate various asp€cts that are covered in DPR,

7. The tollowing iable gives deiails of a project I

ImmediatePredecessor

NoImal Crash

Time(week)

Cost(Rs.'000)(weeks)

Cost(Rs.;ooo)

10 20 7 30

B 8 15 6 20

c 5 8 4 74

D 6 1 1 4

E It 8 9 5

F E 5 5 4 8

G A , D , C 1 ' 3 8 4

Indirect cosi is Rs. 400 per day.

(i) Find critical path for normal duration-

(ii) Find ihe oDiimnl duratjon.

(iii) Rnd the minimum projeci cost,

@MS.52 1,000

MANAGEMENT PROGRAII{ME

Term-End Examination

Decernber, 2OO5

MS-51 @ ; OPEBATIONS RESEARCH

Time : 3 hours Maximum Morks : 700

(Weightose 70o/a)

Note :

Ii)

tiil

l l i '

Section A hos liDe questions carrying 20 morks

eoah. Attempt anq three questions.

Sectioh B is compulsory ond carries 40 ma*s

Graph poper will be supplied on demond

SECTION A

L Explain the chaEcterjsiics of OperatjoJrs R€search. Dscuss

its importance iro decision making ptocess. Giue the

limitations of o.R. 20

Ms-s1 @ P.T.O.

Solve the follo$,ing Linear Prcgramming Problem

graphrcdlly i

Maximise z = 4x1 +6xz

Subtect to the constraint5

* r > 2

x 2 s +

x t . x 2 > 0

A compaoy is spending Rs. 1000/- on ttansportaiion ol its

units from three planis to four dishibution centres. It has

calculated the cosi of transportation from different plants to

distribution c€ntres, giv€n below in Rs. The supply and

demand of unlts is also given below, Will the company save

some money by optrmum scheduling and how much ?

3.

20

20

Distdbution Centfe. ,

Plant D1 D2 D3 D, A\'?ilability

1 9 30 50 t2 7

P^ 70 30 40 60 10

' 3 40 1 0 60 20 1 8

Requirements 5 8 7

MS51o

4. The annual demand Ior an iiem is 3200 units. The unii

cosi is fu. 6/- and jnvpnrory canyrng cosr is 25% per

annum. lf the co:t o[ one procurement is Rs. 150/-. flnd

out 20

(r) Econoorc Order Quanlity

lii) No ot orde)s per yPar

(iii) Time behi,€en tv"13 consecuti\re ord€rs

(iv) The optimal cost

Mention assumptions made, if any.

5, {a) Discuss ihe appljcation ot dynamic programming in

decision making. How is this djff€rent from linearprogramming ?

(b) Explain Convex and Concave lunctions as related io

nonlinear programming- Discuss Kuhn - Tucker

conditions.

1 0

1 0

MS,51 o P.T.O.

6 .

SECTION B

A self-s€rvice grocery stot? employs one cashier at iis

counter. Eighi customers arrive on an average every

5 minutes while the cashier can s€rve 10 customers in

5 minutes. Assuming Poisson distnbution for anival and

exponential distribution lor seMce rate, lind

(a) Average number of customers in the system

(b) Avefage number of customers in queue-

(c) Av€rage time a cu.tomer 5p€nds in the syst€m.

ld) Average time a custom€r waits belore being served

(a) Find the saddle point in the lollowing case and also

lne game value.

20

1 0

^ l :B

14 11.l

s -111

-s 141(b) Explain th€ need lor simulation in management

problems. Give various steps in simulation process'

giving €xampl€s. 10

Ms-51 o| 1,000

MANAGEMENT PROGRAMME

Term-End Examinatlon

December, 2OO5

Time : 3 hours

MS-53 O : PRODUCTION/OPERATIONSMANAGEMENT

Maximum Marks : LOO

Note : Section A hos liDe questions corrying 20 marks

each. Attempt ony thrce qrcstions fromSection A. Section B is compulsory snd carries

40 marks.

SECTION A

l. (a) Explain the various factors that are to be taken into

account for plant locaiion. Discuss in connection with

setting up an electronic equipment plant.

(b) What is meant by qualiiy

qualiiy control ? How is

modern conc€pt of TQM ?

assurance and by total

each different from the

,6*19=20

MS-53@ P.T.O.

2. (a) Stopping waste is a vital t,art of JIT. Identify some. sources oI u,aste and discuss how they may be

(b) A managet must decide b€tlreen thes€ altematives :

Machin?, Cost {Rs.)

4,00,000

3,00.090

8,00,000

Product lorecasis and processing times on tberndchin€s ar€ as lollows i

Which machine would have the lowest total cosr, anohow many of ihai machin€ would be needed ?Machin€ op€rat€s 10 hou|s a day, 250 ddys a year.

10+10=20

Ms-53@

3. {a)

4- (a)

What eltect does pull produciion hav€ on product

BOMs ? Why do products in pull production need

fewer'level BOMs than the same products produced

in an MRP type push syslem ?

A mirnufacfurer of farm equipment is considering

three locations (A, B, and C) for a new plant. Cost

studies show that fixed costs per year at the sites are

Rs. 2,40,000, Rs 2,70,000 and Rs, 2,52,000,

rcsryctively, u,,hereas uariable cosfs are Rs. 100 per

unit, Rs. 90 per unit, and Rs. 95 per unit,

respectiv€ly. Il the plant is designed to haL€ an

effective system capaci! oI 2,500 per y€ar and is

exp€cted to operate at 80 percent efficjency, what is

the most economic location, on th€ basis of actual

ol.rtpul ? 10+10=20

What is group technology ? What is iis purpose ?

How is it used in product desigD ? Horr is jt used to

form product families ?

A work-sampling sludy o[ customer ,enice

repr€sentatives in a telephone company olfice

showed thai a receptionist was working 80 percent

of the ane at 100 percent performance rating.

This rec€ptionist handled 200 customers duting ihe

8 hour siudy period. Company poljcy is to give

allowances of 10 percent of total on-the-job time.

Find the normal time dnd the standard time per

(b)

(b)

t

10+10=20

P.T.O.Ms-53@

5. {a) What is the purpose of long,range resourceplanning ? Whai information is need€d for suchplanning ?

(b) You are to tesi the validity ol your forecastingmodel. Here are the forecasts for a model you havebeen using and the actual demand for that period.

l

2

3

4

5

6

800

850

950

950

1000

9'15

900

1000

1050

900

900

1100

Compuie th€ MAD and tracking signal. Then decidewhether lhe forecdsting model you ha\e been usingis gjving reasonable r€sults. 10+10=20

MS-53 @

6. (aJ

SECTTON B

What is the elfect of saleiy siock, safety lead tine,

and safety margin on inventory ? Discuss ihe

ellectiveness of these m€asures in oftseltjng

uncertainty and process variability.

A company is about to begin production of a new

product. The manager of the d€pattm€nt that will

produce one of the components for the produci

wants to know how often the machin€ used to

prcduce the iiem wjll be avajlable lor ather work.

Th€ machin€ will produce ihe item at a rate ot

200 uniis a day. Eighty units will be used daily in

assembling the final produci. Assemb9 will iake

place fiv€ days a week, 50 weeks a year. The

manager estimates that it will take almost a full day

io get the machine ready for a production run, at

a cost ot Rs. 60. lnventory holding costs will be

Rs. 2 a year.

(i) Whai run quantitJ should be used to minimise

ioial annual costs ?

(ii) Wbat is the length of a production run in

days ?

(iii) During production, at what rate wlL inventory

(b)

10+10=20

P.T,O.MS-53@

build up ?

7. Write short notes on any tiue of the lollowing :

{a) Job enlargement

(b) Cause and effect diagram

(c) Intemal customer

(d) Flexible manufacturing system

(e) Design versus natural toterance

(0 Howe of Quality mairix

(g) lncrease o{ entropy

(h) Feedback conirol sysiem

Ms-53 @ 1,000

l-c*olMANAGEMENT PROGRAMME

Tem-End Examination

December,2OO5

MS.54O : MANAGEMENT INFORMATIONSYSTEMS

Tirre : 3 hourc Moximum Marks : 100

(Weishtoge 70%l

Note I Attempt any ,hree questions from Section A.Each question corries 20 marks. Section B iscompulsorg ond corries 40 marks

SECTION A

l. (a) Explain structured and unstruciured decisions givinge"\amples.

Gle salient features oJ Simon's and Massie'sdecisjon making models.

Discuss the process of syst€ms design giling

''System Development is a very important step indesisning MlS." Explain. How do you design forgmooih system implementation ?

2. ia)

(b)

1 0

1 0

1 0

ib)

1 0

MS-s4O rP .T .o .

3. (a) "MlS project implementation needs careful

planning." Explain. Give various steps in

implementation.

Djscuss expert systems and their application in

decision making.

4. (a) Discuss the functions of daia communication

software. What ar€ multiplexers and concentrators ?

(b) Explain the use of DBMS sofhrare. What are ihe

maih criteria for selecting a DBMS ?

5. Wtite fiotes on any fout:

(a) Compui€r neivnork

(b) Query languages

(c) Computer r,rrus

(d) Legal Dimensions of Computerisation

(e) RDBMS

1 0

1 0

1 0

1 0

{b)

MS-54@

SECTION B

6, Read the case study given below and answer ihe questions

given at ihe end ol the case-

KLM lnternaiional is a medium sized company in

India with about 1500 employees. The company

manufactures special machines for th€ agro-based

indlsiry, boih Jor farms and lood processing plants. The

company buys materjal and components from about 200

@ndors located in lndia, Japan and Gemany. Products

ar€ sold either io wholesol€rs or directly to clients (from

a mailing list of about 1500 customers). The business is

quite rompeiitlve.

The company has the foilowing inJormation syslems

in place: marketing, iinancial accounting, engineering,

research and dev€lopment and manuJaciuring (CAM).

These slstems arc inAependent o[ each othet and od9

the financial accounting system is on a tAN.

The company is having proliiability problems. Cash is

in high demand and short supply. lt is proposed that the

company explores ihe possibility of using inlormatio[

technology to improve the situation. However, Vice

President of finance objects to the id€a, claiming ihai

most of the tangibie b€nefits of informatjon fechno)ogy

are already being realized.

MS-54@ P.T.O,

Questions :

Assxm€ you are hired as a consultani to th€ Presidenl of

KLM lnternational-

{a) Prepare a list of potential applications of informalion

technologles that you thlnk could hdp the company.

(b) Suggest a suitable d€sign of informalon svstems.

Would you recommend any t€lecommunication

arrangements ? Justib such de'ign.

MS-54@ 1.000

MANAGEMENT PROGRAMME

Term-End Examination

December, 2OO5

fMs55@ I

Moximum Morks : 1O0(Weightage 70Ya)

Note : Sectlon A hos six questions eoch corryhg 20 marks.

Attempt any lour questions. Secf,on B is

compulsory ond conies 20 morks.

SECTION A

1. It is said that the or,erall aim of logistics is to achieve high

customer satisfaction or perceived product lalue. This must

be achigved with acceptable costs. How would you find the

besl balance ?

2. Explaln the t,arious issues in logistics with sp€cial relerence

to transportation. What are the stages tor selection of the

appropriale iransport mode and why ?

MS-55 @ : LOGISTICS AND SUPPLYCHAIN MANAGEMENT

Time : 3 houts

MS-5s@ P . T . O .

3.

4.

5 .

Distinguish behreen independent and dependent d€mandinventory systems. Why is conventional inventory controlsystem not practised lor dependent item mat€dalplanning ?

What were the reasons for the fall of managementaccounting ? Explain activity based costing mentioning itsbenefits over management accounting.

The mosl cormon melhod lor evalua-ing non.economicfactors in a faciliry location study is to use a scoring model."Why ? Justify your answer.

Can a supply cha'n be both elficient and responsive ?Risk-Hedging and Agile ? Why or Why not ?

6.

MS-5s@

I

t

SECTION B

7- Read the follo{ring case and answer the questions gjien.atthe erd oi the cade :

Supply Chain Sccc€sses - Mumbai Dabbatvatas

The Dabbawaltas oI Mr-rmbar are d unique (ase o[Logislr.s. Nedrly slackeC dobbos lTlfin. Lunch Boxesj area common sight every ]Ete .r]-oming at Mumbai, in lndia.

A man who is generally i)literate deljvers hot lurch at the

doorstep of the subscriber. 'Ih€r€ are hardly any cbances

that lou will get a wroDg dabba. 'lhere ar€ millions of

offic€-goeB in Mrjmbai and instead of carrying lhe Juncbat an earlg hour in the moming they prefer to subscdbe

to dabbd service. For a small le€ the dobbabala TrcUs upihe freshly packed lunch from the subscriber,s house anddelivers it to hisAer office at lunchtim€. Once lunch isover, the empty dobbo is again collected by the

dabbowalo. This is done with the help oi Mumbai's

extremely efficient railwag system called .Mumbai Locals'.

There are special trains known as the dobbowala special.

The dobbos change many hands and are load€d and

oflloaded in many trains betore thetr final delivery. The€is a scientific way of puiiing an identilication mark on th€

dobbo. Each dobbd lid is to be marked with a particular

Ms.55@ P.T.O.

' code. .For example NXXF wher€ N denotes the

dabbawala's number (assigned by the association), XX is

a combination indicating ihe btilding and F is the floor

nu,'nbe; of that building where the tif{in-box has to be

deiivered. The M is also marked with a number denoiing

the railway station wbere the Tiffin-box has to be

off-loaded, followed by an alphabet indicating the station

of pick up. Can you imagine all this is done lor what

fee ? The senice charges vary beiween Rs. 150 (US$3)

io Rs. 300 (U9$6) per monih, deperding on the

custonrer's location {and the distanc€ covered).

A Parsi banker started this when he ernployed a

cariff to fetch his lunch every aftehoon. The idea

caught on and this in6piied many uremploy€d people to

becone dobba carri,ers- Soon each dabbor.mla had a

handful of customers. To ensue that each carrier worked

only in a particular distdct and didn't intefer€ wilh other

dobbaudllas, a union called 'M\rmbai Tiffin Box Carriers

Association' was lormed in 1968. Today thbre are more

than 5000 serniliterate "'Dabbauallos" \rhich trajFport

1,75,000-boxes in a 3-hour period, through 25-km of

public transportation involvlng mulliple ilanster points. ln

1998, Forbes Global magazine conducted an analysjg and

gave them a SX SIGMA BATING OF EFFICIENCY.

4MS-5s@

Qu€stions ;

(a) Define the inputs, process and outputs of theDobbawallos.

(b) What are the other businesses in India lhat can learnlrom Dabbawollos ?

{c) Can you suggesi measures for betterment of serviceto Dobbowollas ?

Ms-55@ 1 ,O00

MANAGEMENT PROGRAMME

Term-End Exarnination

December,2OOS

MS-56 @ r MATERTALS MANAGEMENT

Time : 3 hows Moxlmum Morks r 100lWetghtoge 70Vd

Note t There orc eight questions in this questlon poper.Attempt any floe questions. All questlons cotryequol morks.

1. What is the scope of materials management ? Defire tl€

rarious roles ot mateids Danagement in the context of

intemal and external interfaces to a materials management

system.

2. Why is negotiaiion an important asp€ct of purchasing ?Describ€ the elements and obiectives of negotiation. Also

dlscuss the negotiation process and techniques.

Ms-56o P-T,O-

3. Briefly expiain th€ reason for the evolutiori ofmanufact.ring resources planning (MRP I0 hom rnaterialrequirements planning (MRP). How does MRP ll differ{rom MRP ? Exptain the difference with the help of a flowdiagram. AIso expiain how itrst-in-tlrne producdon system(JlT) ditfers from MRP ll.

4. CONWIP ls considered applicable to production

endronments characterized b!' longer s€t-ups andflucluating demand. Why ?

Discuss the various losseg in \rarehouses. What are thereasons of their generation ? Discuss ihe procedure ofpre\€nting and controlling losses ir a warehouse.

Explain rhe Supply Chain Operations R€ference (sCOR)

framework for performance appraisal and how it is uselulin materiais management.

What are the measures you recominend to rnainlaininventory securt& in stores ? Digcllss in brief th€ problems

and their rem€dies kl case ol valuation of {inished goods

and work-in-prccess inventory.

6.

? .

Ms-56@

E. Write short notes on any tour of the follooing :

(a) TQM in materials management

(b) Need for international purchase

(c) Oplimized Production Technology (OPT)

(dJ h'anban

(e) Effective Point Advi6e (EPA)

{0 Mahices of performance appraisal in materialsmanagarent

MS-56o 1 ,000

Note , This question paper cantoins seren questions. Allquestions carry equol morks. Attempt ony fiuequesuons,

1 . mat is preventive maintenance ? Explain different

preventive maintenance tasks. How is the total rnaintenance

cost affected by lhe level ol p)eventive maintenance ?

2. What is the aim of spare parts inventory management ? In

what way.doeg it influence the different stages of th€ life

cycle of spare parts ?

3..Many organizations have standing con{licts amongst

maintenance and production/operations employees.' Describe the nature and causes of these conflictg.

MS-57 O : MAINTENANCE MANAGEMENT

Time i 3 hours

tMss?Ol

MANAGEMENT PROGRAMME

Term-End Examination

December,2OO5

Moimum Marks : 700

MS-s7@ P.T.O.

4 . t{hat is the short-term determinlstic or un;t z}achineproblem ? How do you take replacement decisions in caseo[ equipment/component whose operating cosi increaseswith use ?

What ar€ the rafious techniques, whicb can be used forscheduling and monitoring of projects ? Why is neh,,/ork

analysis preferr€d ? Discuss their advantages over othermethods. What is the basic difference b€tq/een CPM andPERT ?

Exptain the basis ol identilying and analyzing a problem,

while making use of temperature monitonng technique.Name some of ihe instrum€nts used for temperature

Write short notes on any torr of the lollowing :

(a) l,'nportant features ol Totdl P{oductive Maintenance

{b) Zero-basedBudgeting

(c) System R€liability in System with Components in

Series

(d) Gamma Distribution

(e) Prerequisiies for Autonomous Maintenance

Ms-57@ 1,000

MANAGEMENT PROGnAIfttE

Term-End Examination€

December,2OO5 l

MS-58 O : MANAGEMENT OF R&D ANDINNOVATION

Moximum Morks : 100(Weightage 70Yo)

Note. Attempt .ttt quations. All questions carry equol

1. Explain the following techniques of enhancing/maintaining

th€ creativiiy :

(i) Brainstofmihg.

(ii) Syneciics

OR

What are the reasons lor technotogical inertia, pr€\renting

implementation ol new technologies ? Give some

examples because of which suspicions about newer

technologies arc rampant.

Ms-58O 1 P,T.O.

2. Discuss and critically examine the \arious inc€ntives andmeasures provided for in the Gov€rnment policies forpromotionrff jF]p?qr rt of R&D in lndia. What additional

measures, ifAy. have be€n laken over the past 5 - 7 yearsqt- ^

i o R

What are the different types ol R&D organizations ? Wbatkinds of R&D organizations are found in India ? Also

discuss the functions of R&D organizations

Briefly describe, the following models :

(a) The Adair Model

(b) The Blanchard Model

on

Write short notes on the following :

(a) Dfferent hierarchical models of R&D organizadors

(b) Matrix organization and its advaniages

{c) Le-drning organizalion

4. Discuss the salient features of the incentives and supportmeasur€s provided by th€ following countries for promotion

of R&D technology development :

(a) France

(b) Malayasia

3.

OR

MS-s8o

In the context of national R&D infrastructure andinstitutional fuarnerl?ok, lvrite notes on the following :

{a) D€partoent of Biotechnology (DBT)

{b) Depadmeht of Ocean Development (DOD)

(c) Depaftmeni ol Science and Technology (DSTi

(d) Depanment oI Scientific and indusirial Research(DSrR)

5. Write short notes on the {ollowing :

(a) Good practices in Technology Transfers

(b) Sources oI Patent lnionnaiion in India

(c) SPREAD

OR

l{&at is GATS ? How can jt lacjlitate access to technologyand Technical infolmation for developing countries ?

Ms-58o 1 ,000

tr*.@lMANAGEMENT PROGRAMME

Term-End Examination

December,2005

Maximum Marks : 100(Weightase 7\o/o)

MS-61@ : CONSUMER BEHAVIOUR

Time : 3 hows

l .

Noie : This poper consisis al two Sections A ond B.Attempt any three questrcns Jrom Se.tion A.Section B is cor'rl,ursory. All questions carryequol marks.

SECTION A

Explain the VAIS 2 System of lifest!,le classification. Howcan .ihis approach be used io develop promotionalstrategieq lor

(a) A health club

(b) Luxury cars

What are the factors thai influence the retri€val ofinformation from long-term memory by the consumers ?How would you apply the knowledge of these faciors inyour advertising decisions ?

@

2.

. P.T.O.MS-61

3. . What do you understand by socral class and social

stratificafion ? How would you as a marketer oI the

following- productg usa your knowledge of social class

influence io market your products ?

(a) Motorcycles

{b) Domestic appliances like washing machines

What is the role ol eGluative criteda in consumer decision

process ? List the e!.aluatlve critena that in ylour opinion

first time buyers are likely to use in the purchase of

(a) A Reridenhal house

(b) A lif€ insurance policy

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

(a) After Refenal Choice heuristic

(b) Bettman's information processing model

{c) Classical conditioning theory ol consumer leaming

(d) Factors influ€ncing information search b€haviour

(e) Organizationalbuyingb€haviour

4.

Ms61 @

lI

SECTION B

6. Read the case given below and answer the questlohs given

at lhe end of the cdse.

Bayet Aspttiri't Une Extenston

For many years, aspirin dominated the market for

non prescription pain\relief and Bayet aspirin dominaied

the aspirin market. However, in recent yea6,

acetaminophen - and ibuprofen-based pain relieverc

have taken over much of the market. By 1989,

aspirin-trased products held only 40 perceni of the total

abalgesics market. Thts dropped to 35 percent bv 1992.

Bayer hns about a 6 6 perceni share ol the total analgesic'r.a:Jret and 79 perceni of the aspirin market.

Cornpetjtjon jn ihe analgesics matket is intense.

Ttpre arc three main type of analgesics - aspirin,

acetaminophen, ard ibuprcfen, There are several

adr€rtised brands within each lype ol analgesic as well as

private lab€l and store brands. Product d"terences wiihln

analgeslc categories afe limited.

The int€nse cornpetition has glven ds€ to product

proliferalion and niche strategies. All the ptii,aie label and

store branG compete on price. They may sell lor hal, $e

price of the natlonal brands. Advil is the leader in the

ibuprofen category with a 50 percent share. Motrin wjth

a 15 Fercent share has used three different commercials

F "

L.

IL Me61@ P,T.O

to targ€t backache, arthritis, and headache pain. It

atlempts to "maintain ih€ brand's appeal as a general

analgesic while r€dching oul to snecr{i( groirps ol pdrn

su{{€rers lhroush ddvpnislng. The slfategy appears to beworking as its shar€ ]s growrng. Nupr'n (13 percenl share)has aiiempted to comp€te with a locus on muscle aches,

using celebriti es such as Jimmy Connors. Michael Chang,

and Joe Moniana.

Similar niche slrdtegie\ are dpneaflng in the

acetaminophen and aspirin categories. Acetaminophen

based Midol is attempting to posiiion itsel{ as "the

menstrual r€hef s)recraljsr'. li tLdher iocu.es wjlh su.h

line exLens)ons ar lvlidol PM Nrghflime Formura and Mdol

lB Cramp Reliel Foimula. Tylenol is increasinglypositioned in terms of arthr'tis pain reli€f though it Is alsowidely used for headach€ relief.

Recent medical lindjngs indicate thai the regular use

of aspirin helps certain heart and coloo conditions. Bayerjntroduced Therapy Bayer {or this application. but aspirin

saies in generaL and Bayer asp rin ;ies boih continue

rh€ir relalive decline.

Excedrin was historically behind Bayer in the asplrin

category. Hqw.ever, it now has a greater total markei

share in the overall analgeslcs markei. lt has managed logrow ils mdrkel share by aggressively adding line' : -

MS€] @

extensions : ibuproJen bas€d Excedrin IB and

acetaminophen-based Excedrin AF and Excedrin PM.

Bayer miinagement is consideing introducing

non aspifin-based analgesjcs using the Baget name,

Questlons :

{a) If the company wants to proceed with the line

extension, what leaming principles should they

appry a

(b) If yoLr were asked to develop an ad for Bayer's

ibuprofen'based analgesic, what perception r€lated

knowledge would you use to develop the ads ?

(c) Explain the aititude chang€ principles that would be

relevant to Vou in the development of the aboveadvertisements,

MS-61 @ 1 ,000

MANAGEMENT PROGRAMME

Term-End Examination

December, 2OO5

MS-62@ : SALES MANAGEMENT

The : 3 hours Moximum Morks , 700(Weightage 70%)

(l) Attempt ony three questions lrctn Section A.

(ii) Section B is compulsory.

(iit) AII questtons corry equol marks.

SECTION A

1. {a) Discuss the significance oI Inlormation System Iot

sal€s administration.

(b) Discuss the factors you would keep into considerationfor developing a proper information system tor saleseffectivenes,s by iaking the example of a consumerdurable like water purifier.

Ms-62 @ P . T . O .

2. la)

(b)

3. (a)

{b)

Briefly discu-cs ihe Interpersonal communication

How can an understanding of Transactional Analysishelp in handling a customer ..,,,ho conlmuously lteepsasking irrelevant questions durlng a saiespfeseniation ? You may assLtme the example oI a

m€dical tepresentative who is interacting with a

medical professional or any other similar situation.

Briefly explain the issues involved in the perforrnance

evaiuation of the sales personnel.

What performance elaluation mechanism would youpropose for those sales personnel who are not

involv€d in direct sales but are primarily involved inpromotion of the product, like a publication hous€

hiring sal€spersons tor promoling the text book

amongst leachers ?

What are the advantages oJ setting sales quotas ?

Brieilg e)tplain how sales quotas are set. You may

assume example of any company to answer this'

4. (a)

(b)

MS-62 @

SECTION B

5. Caretully vead the [o ou,ing case and answer rll9 questjonsgiven at the end oI ihe case :

. CASE

Anupama Cosmetics (p) Limited was one of theleading manufactur€rs of soaps, tacial crea&, shampoo.hair cleam, Iipstick and toilet powder in fndia. Theseproducts were extensively advertised in all the leadingnewspapers, iournals and magazin€s in the country_

The markeiing organisation of the con)pany washeaded by a marketing manager who had under hiscontroi six regionai sales oftices siiuated in six principalcities of India. Each regional oJlice was in charge of asal€s supervisor who was responsible for execuiivedirection of a number of salesm€n. ln 1997 morc thanslxty salesmen operated oui of six r€gional sales olfices ofthe company. The sales sLrp€r,,isors submitted monthlyl"ports to the marketing manager on the progress ofsales and performance of salesmen in their respectiveregions.

Selection oI Salesm€n

The management of the company strongty believedthat intelligent selection of sales personnel was hjghiynecessary for improving the efficiency of business. The

MS-62@ P , T . O .

Markeirng Managet was particularly anxiorLs to see tnat

ih€ salesmen oI the comapny possessed the following :

(i) Good Appearance : A general grooming ol the

individual to make sure that he would noi dev€lop a

hurdle o{ sales lesistance bv his shabby appearanc€

(ii) Personaljty : He should have a w€ll developed phvsical

as well as mental PersonalitY

{ri) A good speaLinq voice and elfeclive expr€ssion

(ivl Modente habits, good health and physical fitness

(v) Alertness, lriendiiness and pieasing disposition

(vi) lntegdty, hotesty, and pers€vetance

(viil Ability to get along with other p€ople and wiltiogness- to \tork hald {or the comIEnY

Aft€I selectron each salesman was given intensive trainlng

at the head of{ice for a petiod of three morihs Thereafter

he was posted in one of the company's regional sales

Dufies ol Salesmen

Salesmen o{ ihe companv w€re required to per{orm the

lollowing duties loi' the company ,

li) io ca[ on customers ol the company and bing to their

notice the products of the company and book orders

lrom them;

Ms-62 @

to contact retailers including druggists, general stores,

and others and study their changing attitudes iowards

the poducts of the company and report ihem to their

to call on dealers regularly and help them in ananging

display of the comapny's producis:

to discuss new product selling features, new policies

and campaigns of the company with prospects;

(v) to coopehte with the stockists of the companyi

(vi) to aci according to ihe terms. conditions and policies

of lhe company and lo obpy the o)ders of sdles

{vii) to nrake /eports and carry on coffespondence and

submit expense accounts to the company periodically

accordtng to the instruciions given; and

(viii) to carry out miscellaneous activities as might be given

to them from time to time by their superior officers.

Situation in 1997

Anupama Cosmetics (P) Limited, which enjoyed

almost a monopolv position for a number of years,

suddenly faced compeiition h the markei in 1996. The

conpetiLion mainly cdme fro-n rhrpp newl,r establshed

foreign companies. Thes€ companies emphasised quality

and price of lheir producis. Theg spent a large amout on

advertisemenl and sales promotion. In addition, each of

them had an etfectiv€ sales organisation.

(ii)

(iit

(iv)

MS-62 (s P.T.O.

During this period the company also faced certait

Iabour problems in the factory. Due to workers' strike the

factory had to be closed for a few wee!,s in the beginning

of the year. In addition, due to rise in excise duties

imposed by tbe Government, ihe company had to

increase prices of some of iis products. The markeling

manager realis€d that market conditions were constantly

changing and *lat in order to improve the company's

sal€s pe ormance some vigorous elforts were needed on

the part of lield sales lorce.

Questiors :

(d) Comment on the qualihes ot ihe salermen which Lhe

marketng manager was interested in and also the

duties assigned to the sales people.

(b) Do you think these q.ialities and responsibilities are

adequaie in the changing circurnstances ?

(c) What specific additional responsibilities should be

assigned to ihe salespersons as per your advice ?

t\4s.62 @ 1,000

MANAGEMENT PROGRAMME

Term-End Exaniination

Decembet, 2OO5

tr;'@l

MANAGEMENT

Maximum Marks , 100

(Weishtoge 700/0)

M S . 6 3 O : P R O D U C T

Time : 3 hours

Note : This paper consists of tuo Sections A and B.Attempt an\ three qrestions lrom Section A.

. Seciion B is conpulsory. All questions carryequol motks

SECTION A

Whaf is the matix apToach ta Votuct pbnning ? Bytaking an illustrative example, explain the suggestedmarkeiing strategy for a multi product company on the

basis of a product evaluation matrix.

Why is environmental analysis important for product

manager ? For a product categorg like air-conditioners orwashing machines, explain the environm€ntal factors you

would need to monitor,

2.

l .

Ms-mo P.T.O.

3. With respect to any new product idea of your choice,explain the proces,s of concept development and iesting.

What is the significance of this stage in the new product

development process ?

How is prjcing atlected by ihe other elements ol the

marketing mix ? How do factors like competition, siage in

the product lifecycl€ and costs affect th€ pricing decision

for a new product ? Explain wiih the help of examples.

Explain the piocesses of product audil and produci

augmentation. How does the und€rstanding oI these tt oconcepts enable a marketer to finalize th€ attributes of a

Proposed new product ?

4.

MS-m@

SECTION B

6, Read the case given below and answer the questions at ihe€nd of the case.

The "Success" Story

A distribution house is handling a number ofconsumer products of reputed companies, aci'ng as iheir

selling agent. Thg producis were mark€d by ihe company

und€r the brand nam€s of their respective manufactuing

concerns. The company lost a profitable agency since the

distribution of ihe products \^Bs taken over by ihe

manutaciurer himself .

Based on iis past experience on sjmijar ljhes, the

company inirodlrced a tooih-paste in the market

manu{actured by itself, under the brand name of''Success". At ihis point of time, C'was lhe brand leadetin the tooth-pasie market follow€d by 'B' and 'F . When'Success' in 'Larg€' size was launched iniijally, the

. distrbulion $ias lantastic, in both ihe rural and the urban

markets. The coverage was extensive and the consumer

Iesponse was very encouraging. The irodLrct was much

in demand in all the reiail outlets, including pan shops.

However, after some time, ihe company started getting a

number of complaints related to packaging. The caps

trsed were unable to \rithstand the transportation, due to

which the contents from the tub€s were leaking out.

Without tully rectifiJing the defecis, {he company came

MS-m@ P.T.O.

out in the market with bigger sizes of tooth pastes like'Gani' and 'Eeonomy' undey the same brand name'Success'. Simultaneously, th€ company introduc€d a new

range of products lik€ talcum powder, hair cream, tooth

brush and shalifig cream. Al1 these products were

manufaciured by the company itself. At ihe time of

launching these products, the company was already

mark€ting shaving cream and tooth brush under differmt

brand names \rith regular trad€ schemes. But the

company did not operat€ any attractive dealer scheme for

the 'Soccess' range o{ prducis and the sLdden spu in

the number of produc[s handled did not hav€ the requisite

adverijsing back up.

The company b€gan to notice a sudden decline in the

sales ol newlg inkoduced products. At this stage, th€

company also introdutpd the Success rooth powder in

two different sizes. During ihis period the supplies ol the

brand leader 'C' werg inegular and restricted. The other

fwo tooth-paste manufacturers, viz., 'B' and 'F' did noi

have tooth powder. Therefore, ihe Success' tooth

po\rder started moving wel in the market.

The company again launch€d a n€w series o{ similarproducts except tooth-pasie und€r a new brand name'Victory'. This tumed out to be an utter failure due io

poor marketing strategies, which adversely'atfected the

company's image-

Ms- @

The company appointed a new protessionai

marketing chieJ, who decided to go in for yet anoth€r

tange of cosmetic products grounding ihe 'Success' series

of products, orrt ol the rnarkei, The new venture also

proved io be futil€ exercise, and ihe 'Viciorg' range ot

products also had lo be dbandoned finallg.

(fuestions I

(a) How do you explain the failure of the 'Success

range of products ?

(b) Is the company justified in introducing ihe 'Vjclory'

range of products ?

{c) Do you find an9 organizational weaknesses in the

functioniog of th€ company ?

(d) Suggest a marketing plan to enable the distribution

house fo tum around the performance of 'Succ€ss

Ms-63€) 1,000

MANAGEMEM PROGBAMME

Term-End Examination

December,2O05

MS-64@ : INTERNATIONAL MARKETING

I lme : 3 hours Maximum Marks : 700

(Weightsge 70Vd

Note t Altempt ony tht.ee questians from Sectlon A.Section B ls compulsory. All quesrpns corry equol

l. {a)

{b)

2. la)

SECTION A

Dillercn ale between Absolute ad\Entages vs.Comparative advantage in international marketing,

Describe various reasons for a firm for enteringinternaiional markets.

"An ittetnaiional marketer has to find out a tade-offbetween standardised and customised products as it isdiificuit to evolw a global produci." Do gou agreewith the above statement ? Justify your anslver wilh

sujiable examples.

Ms-64 @ P . T . O .

(b) What are the Jactors infurencing internationalmarketing communication decisions ? Jusiity your

answey \rdth suitable illustrations.

(a) Explain the concept o{ Iniemational Producl ljte

Cycle. Evaluate the relevance of IPLC concept for thefollowing

(il Bicycle

(ii) GenericPharmaceuticalProducl

(b) Explain the concept oJ Mafgjnal Cost Pficing. Givereasons for its jmplication in intemauonal rnalketingvisa-vis dom€siic marketing.

Write short noies on an; three of the {oltowmg '

(a) EPRG Concept

lb) Evaluation ol country risk

lc) Influence of culture on international marketing

{d} Foreign axchange market

4 .

Ms-64@

SECTION B

5. Read the case given below and answer the qLrestions gi!€nat Ihe end ol the ca-se :

Giilette had bgen a pioneer in the shaving categorysince 1900 and had sinc€ been the v,/cdd bader jn tbiscategory. Cillette started its operation in lndia in 1968and sells many t:lres of ftzots, razor blades, shavingcreams, deodorants, toiletries, and oral care products. Themarket slnrcture for many ol Giilette's products hadmainly been rnonopolistic with many producers in theDayket. Technology and product dilferentiation play a keyrole in marketing of razors. B€sid€s, Gilletie spendsheavily on adveriising and sales promotion.

Most of the Gillette products are inierdependent indemand, productio; and consurnption. For instnnce, razorblades and shaving creams are complirnentary with raaors.The demand [ot razors ls price elastic and any reductionin price of razors tends to increase its d€nrand which hasdjreci eflect on total revenue of complimeniary productssuch as razor blades, shaving creams and shavjng lotions.Gillette's sttaiegy has been to keep the razors' prices lowand the p/ices of razor blades and shaving creamsrelatively high. Razors contribute very low rewnue to thecompany's lumover \r,,hereas ta?or blades contributealmost 90 percent of the cornpany's fumover. As Gillette smarketing strateg!, price reduciion on one brand of ra?otincreases its demand while it cannibalises ihe demand forother ra?ors in th€ similar categorv sold by Gillett€. Thecompany keeps a constant vigil on the market andmonitors ef{ect oI pricing decisions on substitutes aDd itscannibalisaiion impnct on its other products.

Ms-64@ P.T ,O .

cillette India has a market share o{ 60 percent inblades and razors in Indla. The composition of Sri Lanka'ssha\rng market (Fig. 1) suggests that disposable razorsaccounted for 679o ol markel share followed by doubleedg"d blades (32%o) and twin blades (1%l in 1999. Asindica&d in FiS. 2, Gillette's market share was a meagre7% while BIC dominated the mark€t wiih 91% market

Composttion o{ Srt lrnka's Shavirg Market(re99t

Twin Blades,1%

blades, 32%

FiCiute f

Compositiot of Di.posable Razore insrl lankn (1999'

Supar Mac,oth€r 1% ---- !%t

Btc, 91%

Figu'e 2

MS-64@

Analysis of macro economic data indicates tha'i

sri Lanka has a population of 19 million that is growing

at 13 percent annually, with a p€r capita CDP of

US$ 850. The literaca rate in Sri tanka is quite high at

92 percer\t in the South Asian region. The male

population in Sri Lanka is about 52 percent. Out of them

about 60 percent mal€s are above 15 years of age. This

gives a broad indication of good mark€t poiential in Sti

Lanka. Gillette's meag/e share ol 7% in value ierrns is a

matter oi serious concern for the firm and the top

management.

Questiond ;

(a) Work out in detail the type of information requred for

conducting the mark€t res€arch in Sri Lanka. Also list

out specific sources of compiling secondavy

in{or marion.

(b) Prepare a research plan to identify the Gillette's

meagre market share of 7o/a in disposable razors in

Sn l-anka.

Ms-64o 1.000

II MANAGEMENT PROGRAMME

Term-End Examination

December,20O5

MS-65O : MARKETING OF SERVICES

Time : 3 hours Maximum Marks: 100(Weishtose 70o/a)

Note . This paper consists ol three Sections A, B and C.Section A is to be attempted by studentsresisrered lor this cource lot July 2004/Januory2o05/July 2005 semesters. Section B is to be

ottempted b9 students rcgistered for this cource

Jor Jonuory 20U semester. Section C is to be

1ttempted by oll the students. All questiorc corryequal marks.

SECTION A

Attempt anv thrce questions.

l. (a) What are the implications of the services marketing

triangle ? Explain gMng suitable examples.

(b) Distinguish betueen the following with the help ofexirmples :

(i) 'Search qualiti€s' and 'experienc€ qualiti€s'

(ii) 'Faciliiating services and supporijng services'

MS€5o P.T.O

2. (a) Taking the example of a hotel, explain the GronroosModel of Service Quality.

(b) What do you understand by the term YieldManagem€nt ? Discuss th€ importance oi yieldmanagement for an airline.

3. (a) Explain the term 'word of mouth communication'and discuss its significance for a health seliceprovider.

(b) Discuss ihe importanc€ of location decisions for

ealucational seMces.

4, Write short notes on any ,hr€e of the following I

(a) Trends in international trad€ in services

(b) Roles of physical evidence

(c) Importance oI customer ret€ntion

(d) Extended marketing mlx for hotels

(e) Classification of product support sennces

M5-65 (t

SECTION B

Attempt ony three guestions.

5. Discuss the importance oI the following lor a serviceprovidey, giving suitable examples :

{a) Physical evidence

(b) lnvesiing in 'people as a source of competitive' advantage

6. (a) Describe some of the n€ys of measuing crjstomerexpectations for servic€s. What are the indicatorsthat you would use to m€asure expectatjons ?

(b) What are the issues that should be in considerationwhile branding financial serviees ?

(a) Ouiline the key issqes in promotion oI educatioD

services. What, in your view, would be an ellective

promotion mix for a management institute ?

(b) What are the oajor ways of segmenting the tourism

rnarket ? Explaln-

Write short notes on iny three of ihe {ollowurs I

(a) Reasons for grov,,th of ihe service sector

{b) Senjce process

(c) Posiiioning strategies for advertising agencies

(d) Relevance of marketing in logisiics industry

(e) Serlice quality

M5-65@ P.T .O ,

SECTION C

9. Studg the case giv€n below and answer the questions giv€n

at the end.

Wodd c!'m

World Gym began operations in 1995 in a large city.

The company's objective was to meet the fitn€ss needs of

a div€rse c):enlele, lrom the prolessional body builder to

the overweight person,

Wortd G9m's pricins plan was to have a {]lness

Iacillty that targeted ihe common person - a fitness

facility that was not on the high end or the low €nd, but

in the middle price range. ln the beginnlng it pianned io

challenge the price of the top-of-the-line facilities. lt

olfered its seNices in a big spacious cenFe in a

high-t6ffic arca, a part of citv that was becominggenlrilied. There was linle comperition in the area. The

establishment's large space, with natural llghi coming in,

set it apart from competiiors.

The company expected its m€mberc to come Jrom

other clubs and facilities not only in ihe immediate

ne'ghbourhood. bul all around rhe cjty. lt saw its lracje

area as the neighbourhoods within an 8-10 minute

drive.

MS65@

The company decided to begin by marketing itsproduct to people who were already working out but

wanted something unique. When the company opened its

fiiness facility, consumers readily accepted it. World Gym

membership far €xceeded expectations. It now has 3,000

m€mberc. As many as 2,000 people come on a given

day.

For years World Glm had few serious competitors. In

the city, permits are required io open a glm and thus are

an obsiacle to potential competitors. And the cost of

opening a 35,000-square-foot facility is an additional

barrier to entry,

Qrr€stions :

{a) Was World Gym's pricing plan appropriate in amarket where there was a relatively low supply ol

(b) Over t'me World cym's membersh,p exceededexpectatjons, Demand was strong and constant.What impact might this situation have on thecompany's pricing strategy ? On product strategy ?

(c) Suppose the company learns that two newcompetitors plan to open liiness faciliiies within amile of Wodd Gym. How migbi the increased supplyof services aflect World cym's pncing policy ?

Ms€s@ 1,000

MANAGEMENT PROGRAMME

Term-End Examination

December.2OO5

MS-66 G) : MARKETING

Tlme : 3 hours

RESEARCH

Maximum Marks , 100

(Weishtage 70o/o)

Note t This poper consisis oJ two Sections A and B.

Attempt on9 ,hrce questions lrom Section A.

Secfion B is compulsory. All questions carrg

equal marks.

SECTION A

f. (a) What are the dilferent data scales ? Give examples

of each of them. How do they aff€ct ma*eiing

research process ?

{b) Whai is Principal Component Analysis ? What is

the m€aning of rotation in Factor Analysis ?

MS-66@ P.T.O.

2. . (a) Which research design strdll you r€commend for

profiling the potential customers of a fast moving

consumer good ? What would be the k€y steps for

such a research ?

(b) Wbar ,s patjrjpdtion observalion merhod ol dara

collection ? What are the , special precautions

required for conducting such res€arches ?

3. (a) What are the special considerations required lor

conduating a'readership surv€y as compared to any

. other product's usership survey ?

(b) What are the ditferent methods available for

conducting consumer motivation research ? Describe

any one ol tnem.

4. (a) What are the main secondary data sources available

io lndian marketing researchers ? Describe th€ir

main limiiations.

(b) List the important "exieris" that you may like to use

in marketing research€s in India. For each ol the

€xpert categories id€ntified, give some of the product

categories that they would be specially surtable fof.

Give reasons.

5. Write short notes on any thtee qf the lollowing ,

(a) Project iveTechniques

{b) StratifiedSampling

(c) Multi Dim€nsional Scaling

(d, Indian census data - a soLtrce for markeilng r€search

(e) Consumer panels

MS-66@

6 .

SECTION B

Uttam Vahan Ltd. (UVL) is a major car manufacturing

company ol India. UVL has decided to understand Indian

car distom€$ afresh in response to increasing comp€tition

They believe that the car purchase is not so much al{€cted

b9 the socio-economic and demographic characteristics ofpot€ntial customers as by their lifestyles. Therefore, they

have designed following questionnaire to captur€ theprofiles of potential customers.

Q.1. Do you int€nd to buy a car within next six months'/

Q.2. Which brand and model of car do you intend io

b u y ? -

Q.3. Why do you intend to buy that car ?

Q.4. For what purpose do you intend to use the new

car ?

Q.6. Your monthly income :

Q.7. Your occupat ion ,

Q-5. Besides yourself $ho else in your {amib ate likely 10

Q.8. Your education :

Q.9. Do you oum : A car ?

A credit card ?

A mobile phone ?

MS,66 @

A personal computer ?

P.l.o.

Q.10. No\x I shall read a few statemenis. Please indicatev.rhether you "Strongly Agree", "Somewhat Agee","Neither Agree Nor Disagree", "Somewhat Disagree"or Strongly Disagree" with each oI them.(a) Cars are the main reasons of pollution in the

counfy.

(b) Women should not be allowed to drive cars.

(c) Cars promote consumerist culture.

(d) Cars deny use of regular exercising.

(e) Cars are homes on ihe roads-

(0 Cars are luxuries that our country con ill afford.

(g) I enjoy long car drives with my friends.

(h) Govemment has taxed cars excesslvery.

(i) My car usage is very fixed and regular.

t) My car sp€aks about me.

(k) The speed limit fixed for cars on Indian roads aretoo cons€natlve,

0) My friends are e ,ious of my car.(m) I am never afraid of accidents while driving.

{n) Cars bring ihe family closer.(o) On today's congested roads it is belter to $alk

than drive.

{p) Your car creates your lirst impression.(q) I understand the car rnachinery completely.(r) Cars greatly facihldLe socialisatlon.(s) I love adventurous jo$neys.

(t) Cars are my fiIst love in li{e.

Q.11. Your name :

Q.12. Your address :

Ms-66 @

F

i-

Assignment i

(a) Comment on the questionnaire used.

(b) Outline an interview guide lor th€ abovequestionnalr€.

(c) Outline an analysis p{an Jor the above questionnaite

based study.

MS-66 @'t,000

MANAGEMENT PROGBAIU|IIE

Term-End Examinatlon

December,20O5

Moximum Marks , 100

(Weishtase 7@/0)

No,€ r This paper consists of two Sections A and B

Attempi ony three questions Jtort Section A

Section B is compulsory. All questions corry

equal marks.

SECTION A

1. Brie{Ly discuss the rural enviro$ment ir} terms o{ the

infractructure available for markeiing. How does this

environment affect the marketing decisions and

opportunities ? Explain with refer€nce to

(a) N4arkeiing ol bankrng services

(bl Marketins ol consumer n€cessities iike toilet soap

and detergents

MS-611 @ : RURAL MARKETING

Time : 3 hours

MS611@ P,T.O.

2. Disc'-rss the major dilferences bei..rcen urban and ruralmarket res€arch. You have been ask€d to assess th€market acc€ptance for an €conomy Iange of personal careproducts in villages ol North lndia. What sourc€s ofsecondary data :and primary data witl you use lor yourmarkei research ?.Briefly explain.

Dlscrlss the udrious strategies marketers use for productmodification. d€cisions for ihe /ural markets, with thehelp of suitable examples. As the product manager ofan €stirblished consumer goods company, hc!, woujdyou handle the menace of spurious brands in ihe ruralmarkets ?

4. What are th€ impoltant media \rehicles speciallg srnted foradr€dising a.ld prcmotion in th€ rual .rnarkeis ? Havingidentified the rural market po6ntial, gour company is ke€n

' ' io promote its economy range of cooking gas stoves ln therural market. What is ihe media lnix you would suggest tothe company and why ?

5. Wdte short notes on any three of ihe following :

(a) Roie of retailers in rulal dist/ibution

{b) $gnificance of periodic markeis like Haats and

Melas

{c] Behavioural aspects jn rural disirjbution

ld) E chaupal as a disiributlon iniiiaiive

(e) Physical distrlbution decisions lor the rural market

3.

MS,611@

SECTION B

6- Bead the case given below and an$rer th€ quartions given

at the end of the cas€.

Requitmenl oI Insurarce Agents by Orn Xotak Lifelnsurance

,/S€nsing a big opportunitg in rurat markets, Om KoFk

Lit€. lnswance set up a separate rural business division

headed br a senior'vice president. The marketing siraiegy

revolved around generaiing business using agent routes,jnirially in Maharashtra

Press advertisements were ret€ased in both national

and regionaL newspapers io select afld appoint agenis.

Ho\xe\ret, despite rcpeated inseriions the response was

very poor. Thereafter, the company approached a

recrultment agency, a marketing agency operating in rulal

areas and an agenca with its net'r,/orking sources ln ffal

The fi$t t\ro agencies did not have reach in llral

areas. So, Om Kotak linaliz€d a deal with Rulal Relations,

a Pune-based agency with an excell€nt network of rural

volunteers, to recruit agenis for the company.

Bas€d on its previous experience, R\$al R€lations

emphasized three components oJ their recruitment

strategy : {1) dired personal contact (2) spreading

P.T.O.MS,611@

informatior, through group discussions (3) motjvatjDgpeople to become ljfe insurance agents throughcounselling.

The awareness-buildlng stmtegy included sendingletiers to opinions ieaders using the huge Rural Relationsdatabas€, highlighting the beneliis of becomjng agents forthe insurance company and requesting them to spread thenews locally Lo ldentify suiraDle agenls. Six persons werekained by Rural Relations ic) contact villagers, particularly

rural youth and bri€I them about the insubnce business.A $,ellproduc€d leaflet ploviding inJormation on thecgmpany and career prospects, was dso hand€d oui atthe preilminaly interviews held in nearby tdlukas.

'lhe lirsl level agenL asse$ment was done based onthe information provided in the appllcalion foyms,followed by quality of participation in the counsellingsession and petlormance in a djrect personal intervi€w.

Out of the 375 candidates who appeared, 110 w€reshonlisted for rhe second round of inteMews.

ln the second round, the company head of ihe rural

life insuhnce busjness conducted th€ interviews, alongwjtb his sales maDager and an HR manager from RuralRelations. Oirt oI the 68 candidates wbo appeared, the

best 30 were seiected. Thereafter, they r{€re put throwh

a 20-dag lnsurance Regulatory Development Authodty

M S 6 1 1 @

stipulated training programme, conducted by Maharashira

Insititute of Technology at Pune.

During the training period, Ruml Relations

coordinators interacted with the candidates on a daily

basi6 to soh,e an9 personal or couGe-related problems. To

sustain motivation levels, informal dinnerc were also

arranged on a weekly basis to encourage candidates to

interact with each other and wifi members of the Rural

Relanons ieam.

These ellorts were successlul in building up the

candidates' self-confidence in their abilities to become

competent rural life insurance agents, as was €videni from

the 100 per c€nt pass rate in the final €xamination.

Questiorrs j

(a) Crjtically evaluate the recruitment strategy followed

by Om Kotak for its insurance salespeople.

(b) What are the altemative sfrategies ihat you would

have followed to atiract larger numbers of

prosp€ctive applicants from the rural segment ? Give

feasons for your answer,

MSS11@ 1,000

MANAGEMENT PBOGRAMME

Term-End Examination

December,2005

Moximum Marks : 700(Weishtoge 70o/o)

MS-612 O : RETAIL MANAGEMENT

Tlme : 3 hours

ti)

(it)

(iil

Attempt any three questions frcm Section A

Seclion B is cotnpulsory.

All questions corry equal marks.

1. (a)

2. lal

(b)

lb)

SECTION A

Discuss the rele',ance and scope of marketing

research in retailing. Exilain brjefly the probable

areas when MR can be applied in retailing

Define "Category" in retail business. E\plain ihe

importance ol category management as a strategic

tool in retail business.

Briefly discuss ihe key components ot atmospherics

enticing customer pull towads your storc.

Trace th€ evolution of retailing in tie ltdian

marketing envfonment and comment on its

contribution to the economY.

P.T.O.M5-612o

3. Explain the elements of strategic planning process in the

context of retail busin€ss. Take an example of your choiceto illustrate.

4. (a) Merchandising is at the core of.evety retail business.Dscuss.

(b) What role does technology play in merchandising ?

What precautions are to be taken while plannins to

adopt technologg in retail business ?

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

(aI Role and Responsibilities of v€ndor

(b) Types of chain stores

{c) Trends in security

(d) Wheel ol retailing

(e) Positioning of retail store

M5,612@

SECTION B

6. Studv the case given below and drswer rhe question\ givenar lhe Pnd of the cd.e.

Dinesh looks outside his first store outlet at the

Metropolitan Mall in Gurgaon gear Delhi. H€ sees thetwo MBA students approaching him for an interview. The

students Neeiu and Smita had mentioned that they werepreparing a case on r€tail location as part of their MBA

studies. Dinesh bad readily_agreed lor ihe interview. Hehas opened his second waich outlet in the Metropolitan

Mall ln Gurgaon just 15 days back; while he is confident

about his choice oI ihe Metropolitan Mall as an ideal

location for his outlet h€ is not sure if this ouilet will do

as well as his first outlet, about 7 to 8 km away at Sadar

Bazaar market in Gurgaon.

Neetu i Thanks a lot for granting the inter",iew. Canyou please tell us atrout your outlet at Sadar market in

Gurgaon ?

Dinesh : I started retailing in watches in 1994 under

the name Ram & A!""tar Sons in Sadar market. When I

started there were 15 shops selling watches in the Sadar

market, no\,,, there are about 20 io 25. But Ram &

A,"?lar Sons is the largest and besL known In fa.l we are

the largest watch outlet in the whole state of Haryana.

P.T.OM5612@

Smifo ; You get customers from all over Gurgaon ?

Dinesh : Ybu wolrld be surprised to know that mycustomers come from as far as 50 - 60 kms south ofGurgaon from neighbouring iowns like Rewari, Pataudi,and Bhiwadi. You may know that Sadar Bazaar inGurgaon is the destination market lor people fr<im thislarge region. I ha\€ custbmets hom all sections ol tbepopulalion from small children to old citizens belonging toall income categori€s. .l keep a large variety of branded

watches and am a franchisee of Time Zone. I haveexpanded my ouret jn Sadar and now jt is spread overt\ro floors. I plan to add t'ro more floors to the SadarBazaar outlet,

Neetu ; Why did you plan toMeiropolltan Mall ?

Dinesh : In Sadar market there is too muchcongestion now; car owners find it difficult to find parking

space. They now prefer to shop in the malls where thereis abundant parkins facility. Besides, th€s€ newlyupcoming malls provide a much more pleasant shoppingexperience, I expect suc}J customers wolrld ncNJ prefer to

shop in tlre World of Watches - the name I have chosentor this n€w ouilet.

open an outlet in

4M5-612@

Smita i Do you expect your customers to shift thei{purchases from Ram & Avatar Sons in Sadar market tothe Wotld oJ Watches oullet in the Metropolitan Mall ?

Dinesh : I expect a rery small perc€ntage of mycustoro€rs io shift their purchases from Ram & AvatarSons to World of Watches. As I mentioned many of mycustomers com€ from far off places to the south ofGurgaon ftom small towr6. The Sadar market is muchmore accessible to these people since the railway stationand bus teminus are nearby. I don't expect more than15 - 20% o{ m! customeis at Ram & Avatar Sons toshift their purchases to these malls and shop at World of

Neelu i Then why have you set up this new outlet inihe Metropolitan Mall ?

Dinesh j I expefl most ol rhe cuslomers of World ofWatches io come lrom colonies in south and west Delhi.I expeci that 80% of my customers will be from Delhi. Ido not g€t customers from Delhi at my Sadar markeioutlet. So you can see that I am targeting a totallydifferent segment o, customers.

Smito i Why do so many people come io your shopfrom colonies in Delhi some of which are more than

Nrs-612@ P.r.o.

20 km away. After all there are many watch retail outiets

in Delhi.

Din€sh i They do not come to my shop alone. They

come to these malls from Delhi for recr€ation and

shopping. You can see that these malls provide a very

pleasant air-conditioned shopping environment. The null

also has abundani parking facilities and is convenient for

people owning cars. Becaus€ ol that they attract people

from Delhi. B€sides that many people from Delhi work in

Gtfgaon; they also pref€r to do ti€ir shopping in th€se

malls.

Neet'u ; What else wotrld be diff€reni about your

customers in Sadar market and here ?

Dinesh : My customers in Sadar market aye from a

cross-section of the socieiy, most of them use public

transportation. I a\pect my customers at the Metropoltan

Mall to be from upper middle class and middle-class

income groups. The customers here would generally be

car owners. Also I expect a hrye nutnbet ol nry

customers here to be younger in age.

Smita j Why do you ej<pect younger crov.,d to cotn€

to this shop ?

M5-612@

Dinesh j This mall attracts youngsters because of thepresence of a large number ol eating joint, pubs, andcineplexes. There are 4 - 5 pubs near my shop.

Neeru : Did you do any sunrey before deciding onthis location ?

Dinesh i I am in business for long. I understand theneeds of my customers and, hence, I could identify the

customers who would prefer to shop here. I met a lot ofshop own€rs in. the mall and also had discussions with mycustomers- I estimated the daily walk-ins to be around

6000 to 8000 going up fudher on week-ends. As ihisMall becomes popular, I expect to do good business.

Neet'u i You have chosen the first floor location

rather than locating on the ground floor of the mall

where the customer traffic is higher. Why 7

Dinesh j The rentals on the ground floor are armosr

double; I don't expect to do enough business to recoverthe high rentals on the ground floor. Besides, as you

might have seen, the shops on the lirst llooi are smaller

and more in number. Sinca there are larger number of

shops on the first floor, a broader range of merchandise

would be available. That will attract a lot of customers to

the first floor. Besides, ihere are many pubs on the first

Iloor which would atrralt youngsters.

M5-612@ P.T.O

Neetu j How many customers do you expect at

World of Watches esery da9 ?

Din€sh I I expect about 400 to 600 \^ralkins e\Jery

dag. Il the conversion ratio is about 8-10% I will be

happy.

Smita i Are these figures based on market

reseafch ?

Dinesh r I did not do any formal marke4 research;

ihese tiguies are based on my discussions with other shop

owners and my long experienc€ in the fieid.

Smita j Is there any difference in your business

strategg between here and your Sadar market outlet ?

Dinesh : I keep a wide rang€ ot branded watch€s and

provide repair facilig at both these outlets. However, at

Sadar I keep more of lower pric€d bran& like Sonata.

H€re, I plan to keep more of high-priced branded

watches. I sell Titan, Timex, Casio, and Citizen brands of

watches in Sadar. Here, I am also planning to introduce

premium brands like Pierre Cardin and EspiriL. The

average value of watch I sell in Sadar is priced around

Rs. 1,000. Here I exp€ct the average price of a watch

sold to be around Rs. 2,000 to Rs. 2,500.

MS$12@

Neetu and Smita j Thank you v€ry much sir; this hasbeen a great leaming opportunity for both of us.

As Neetu and Smita driv€ back to their college hosteltheg discuss about their interview.

Smitd r Dr|esh is certainly an intelligent busin€ssmanbut I wonder if he has taken the right decision by openinghis second outlet in the Metropoliian Mall. I also wonderif Dinesh has made a right decision by locating on thefirst floor.

Neetu : T11e Mehopolitan Mall attmcts a lot offootfalls but I wonder lf the peopl€ visiting this mall wouldpurchas€ watches from here. If watches are purchased asimpulse

_products, I suppose the large walk in crowd

would be attlacted- I would like to discuss with orrprofessor if watches are convenience, impuls€, orshopping products.

Questiors :

(a) Has Dinesh done adequate mark€t research beforedeciding on the location of his second ouilet ? Whatelse corlld he have done ?

(b) Should ihe watch outlet have been located on theground aloor instead ol first floor - whai

. datalnformation is needed belore taking thisdecision ?

Ms,612G) P.T.O.

(c) What are/the advantages and disadvantages oI a

location in a mall like the Metropolitan MaI

compared io a location in a central business district

like Sadar Bazaar ?

M5-6120 1 0 1,000

MANAGEMENT PROGRAMME

Term-End Examinatlon

December,2OO5

MS-6S@ : MANAGEMENT OF MARKEflNGCOMMUNICATION AND ADVERTISING

Time : 3 houts Matimum Marks : i00(Weightoge 7@/ol

Note :

(i) Attempt any

(ii) S€ction B i5

{iii, All questions

thtee qtlesfions lrcm Section A.

compulsory,

carry equol fiorks.

SECTION A

l. Why wor.rld a manufacturer of small hand tools see tradepromotions as an effectire rlay to increase his sales ? Whattype oI sales promotion schemes \r,ould you recommend forsuch an otganizal/ofi ?

Ms68(D P.T.O.

2. ln 2005 "Exoiica" a corporate gift company mailed

catalogs devoted to providing corpo&tions wiih a s€lection

ol Diwali gifts to be used as employee inc€ntives. The

catalog offered bulk quanuti€s of merchandise embroidered,rrith corporate togos ai \,arying discounts, depending on

the size of the order. Such a mailing would only be sent to

those companies designated as qualified prospects. How

does the prospecting activity o{ the cataiog in this case

dif{er ftom that used lor selling to consumer market ?

3. (a) Discr.lss th€ advantages and disadvantages oi

Television as an advertising medium.

lb) ln what ways could a direct marketer use teievision

to promote direct sales ? Brielly describe each

method.

4. What factors urould !,ou consider for media selection, whiled€v€lopiag an advertising canrpaign ? lllu.strate yout answereith suitable €xamples.

l\,4s 68 @

SECTION B

5. Carefully read the gr€n.ase on Indidn Air Force {lAR dnd

answer the questions given ai the €nd of the cas€ i

The Indian Air Force {lAD doesn'i pay, it's not wofth

risking !,our lif€ liying MiGs and its too difficuit getting in

nnway - this is what youngsters thirll ot a career In the

lAF. An IAF suwey conducted by ORG Matg asked

3,000 students b€h^/een 18 and 20 u,hat they thought of

a job in what was once considered the most glamorous

d€fence wing. Theg were asked to till up a questionnaire

and list iheii prefgrenc€s in order of priority. Education

topped th€ pre{erence list, Iollou,ed by an opporiunity to'

do research work. A luxurious lil€siyle and fat pay

package came in thid. The surtey revealed that

youngslers were scared ol {lying MiGs - the IAF hasn t

been able to shake olf the 'flging coffiD' tag. Students

thtnk the IAF is a poor pagmader and that promotions

happen at a snail's pace. For ihe lAF, whicb i3 shott of

45D ol|icets, the $rrvey's lindings are damning. The Air

Force has now declded to launch B massite awareness

c€mpaign io remove these 'misconceptions among the

youth. "Our publicity ceils will be activated so thai

youngsters get to jnferact with officers. We are exploring

ihe idea oI a car rall, to popularlze the IAF, ' Eaid Wjng

Commander R.M. Danak, Joint Director Personnel

Of{icers.

MS-68@ P.T.O.

la) What marketing issue(s) has IAF to handle ?

{b} Who are the Target ALdiences and what is theirminds€t ?

Do you ihink that the car rally will help in achievingthe communication objeciives ?

lf you have to handle this iask, what communicaitonsbategy woLrld gou recommend to IAF ?

MS€8o 1,000

l-MrqdlMANAGEMENT PROGRAMME

Term-End Examination

December, 2OO5

MS-91@: Otd r STRATEGIC MANAGEMENTRevised : ADVANCED STRATEGIC

MANAGEMENT

Time : 3 hours Maxiinum Morks : 100(Weighnge 70Vo)

Note : There are two Sections A ond B. Section A hos tvro

sefs. Sef .l ls meont Jor the students lDho houe

reglstered Jor MS-91 : Strategic Manogement prior

to July 2005 i.e. upto January 2005. Set Il is meont

for the students who haue registered for MS-91 :

Adnnced Strotegic Manogement hom July 2005

onwards. Attempt ony three questions frcmSection A. All questions carrg 20 morks each.

Secfion B is conpursory Jor oll, ond corries

40 morks.

Ms-91o P . T . O .

t .

2 .

SECTION AS€t t (OId)

Strategic Managem€nt

Organizational e nronment plays a major role in thedecision-making of the firm. Discuss in bdef, iheorganizational environment with respect to the stakeholdeFand their relationship with the firm.

Explain the concept of selflessness with the rmi\€rsal innerstructure of leaders.

Explain technology forecasting prccess and discuss variousf orecasting techniques.

Explaln the concept of Social Process Audit. Briefly d:scussbnow€s Model as an apprcach to social r@ort.

Write shod notes on any tfrree of the following ,

ta) Environmentalanalysrs

(b) t€vels of strateg!'

(c) Evaluation of shategy

(d) Leadership styles

(e) Holding companies

3.

4 .

Ms-s1o

2.

t .

t .

SECTION A

Sa tr gwised)

Advanced Strategic Management

Discuss the nature and scope of corporate management andits role in non-business organisation, giving examples-

'The different market structures have different viewpointswith respect to compelition.' Explatn ihe statement withfespect to the market structures and slrstainable comp€tifivead\Entage.

What are the diller€nt steps involved in developing R & Dsitategy ? Dsd$s with suitable examples.

Writ€ briel noteg on i

(a) Klmaffnangalarn Birla Cornmittee Repori

{b) },Lara!,ana Murthy Corynjttee

(c) Naresh Chandra Commtttee

Discuss tbe isslres and challenges in Knowledg€Management in the present day competiti!€ endrorunent.

3.

4,

Ms-e1@ P.T .O .

SECTION B

6, Read the lollowing case carelully and answer the questions

that follow :

ASIAN PATNTS 0NDIA) UltrrED

The siege is over, and the time has come tor the

leader to sallg forth into greener pastur€9. Even as tbepaints industry is em€rglng trom the sh;dow ol recesgion,

ile Rs. 560 crore Asian Painis (lndia) Limited (APIL), is

mixing ne!/l/ shades to emerge with winning colours.

Says managing director Atul Chokey : "With proper

plannjng and a comptehensive approach to ilsues, \r€

intend to keep pace with the grovrth ol the industry".

APIL is actually targeting a groMh tate that is

highef than the 9 to 10 per cent that the industry has

been averaging recendy. ln the year to March 1994,

the company notched up a gross sales iumover of

Rs. 559 96 crore (net sales : Rs. 401 96 crore), a gto$dh

o{ 10.8 per cenl over th€ brevious year. Net proljt alsoregistered a healtly growth of 31 5 perc€nt to Rs. 25 61

crore. The results have tidied up the company's balance

sheet, which had begun to look a bit ragged.

APIL's approach js multipronged : expansion of itsproduct ra$ge and introduction of lalue added, nicheproducts in the industrial paints areai Iine extensions ol

Ms-e1@

existing products to target lower income market segments

both in rulal and urban areas; expansions oI production

capacity and continuous modernisation to keep pace with

the growing demandi and diversification into the unrelated

but synergistic ar€a ol ceramics.

AII these strategies are part of what ihe compang s

top management terms "harnessing our full potential" ,or

the challenges that lie ahead. They are also aimed at

r€taining leadership in a recession-fr€e industry over the

APIL is the leader in the entir€ industry, comprising

both organised as wetl as unorganised players, with a

market share of aboul 19 per cenL. The company is

confident of the lact that its share of indusiry sales is

twice as much as that of its near€st competitor, Goodlass

Nerolac. APIL also dwarfs the oihers in size, its net sales

nearb twice that of Coodlass Nerolac, well over twice that

of third-placed Berger Paints, and nearlg lour times that

of fourth-placed Jenson and Nicholson (see Exhibit-I).

Ii is only wary of the expandins unorganised sector

which seems to be eaiing up the share of firms in the

organis€d secior. Nevertheless, given the multiplicity of

shades it is capable o1, APIL reckons it can look forward

fo a compound grov,th in its market share.

Ms-s1@ P . T . O .

Exhibit IHow Th€!,r Compare

(Figures in Rs. crore Jor 1993 - 94)

CompanyNet

Net sale l\er profit,/sales

pro,rr pkl

Asian Paints

Goodlass Nerolac

Berger PajDls

Jenson & Nicholson

Ganrare Paints'

Shalimar Paints"

Bombay Paints"

401 96

205 88

174 95

110.33

106

702 59

37 81

25 62

8 0 5

3.24

r.97

2 5 7

1 6 0

0.03

6 3 6

3.91

1.85

1.72

2 3 3

0.08

'18 months to September 1993

"12 months to March 1993

But though the good iimes are back, the company is

not content to sit back and relax. The last three years,

during which the paints industry went through a ttough,

saw APIL taking a beating {though it remained the market

leader all through), with its paints division showing a

negative grov./ih ol 3 5 per cent ln terms oI volume.

Ms-e1(t

Wiih the rupee having been progressively devaluedduring the years 1989-92, and with high rates ofinllation also rarnpant over this period, excise dufies andothe/ l€vies too a\ated upward pressure on paint prices,and thjs served to depress demand. An additionalcomplicatjon, reinforcing this trend. was created by th€ditteret\ce in the selling prices of paints made by theorganised and unorganlsed sectoys,

The first signs of recovery came with ihe UnjonBudget o! 7993 which cut eKcise and custom duties,Excise duties were reduced to 30 per cent and customsdufies were cut from 85 to 65 per cent- This provided atespite to $e industw bg facilitating a rollihg back olprices, and it began to grow at about 2 per cent a Vear.In spite of intermittent soclal disturbanc€s in 1993, iheindustry graduallg respohded and so did fhe derDand forits prociucts. Simultaneously, the automobile iridustry,which is a major us€r industry for paints, also began toemerge from the two-liear recession,

A gradual revival of the jbdustry brought atong a newthrcat tor the seveD rDajor players lrom the organisedsegment. Uneven prices during the recession years hadthe unorganised coDpetitors grabbing at a sigbificantchunk of the marhet-

MS.e1@ P.T .0 .

Budget concessions brought telief to the orsanised

s€ctor, bul its constituents also found themselveg havillg

to compete with an unorganised sector that had groLen to

become a significant thr€ai, €een as the Frospect of

competiiion lrom imports began to wofiy ihe otganised

APIL'S largest new venture will be a div€rsification

into ceramlcs, though lhe project is still at the plannlng

stage. The decbion to enter a new field is fr.relled by the

managem€nt's perception that the ceramics industry has

tremelrdous potentiat ior groqnh.

Even though the company has no expedence in the

production and technologg aspecis oI ceramic tiles

manufacture, it has opled for ceramics becaus€ the

mafketing will involve utilisation ot its existing distribution

nef'r0ork for paints. The rationale is that since painis and

ceramics are both buildins haterials, APIL'S exisiing

custom4r base (which can serve as a ready-Dade mark€tl

will be largeted for its ceramics products.

"With our extensive distribLtiion nen^rork and gtocking

points, we can reach elen the remote matkeis. So

marketing ceramicn is not likely to be a ptoblem," says

Choksey. The plan is to penetrate ihe market as qujcklt

as possible, and grab a substantial cbunk of indus'try sal€s-

The compang wilt initialb siart wiih ceramic tiles, but

MS-s1( )

ihese is no plan to resirict itself to any specific market

segment,

The project involves a Rs. 70 crorc initial jnveslment

in th€ first phase, which involves installation of a capacity

ot 23,000 tonnes per year. Thjs wjll b€ tollowed ir a

couple oI y€ars by the second phase, which will see anjnoease \D the capaciiy to 50,000 tonnes-

The new project is scheduled lor completion by the

end of 1996, and it will. in aU probability, be located in

Gujarat. This is because any location in thai state will

have the advantage of proximity to the raw material

supplyjng areas in Guja6t and Rajasthan. APIL is

currently negotiating wiih foreign collaborators for the

technology, which will have to be imported. The

technology Lvrll also hav? to be adapted Lo Indian

While putting a few eggs in a new basket to ensure

that fluctuating fortunes in the paint industry do not have

the elfect of hurting the company's bottomline yet again,

APIL is not ignoring its bread-and-butter busln€ss - that

of paints. Over the past yeai, a variety of new brands

bave been added to its produci range. The company has

made an attempt to extend its marketing and distribution

beyond the country's major towns, to which its aciivities

were hitherto con{ined.

rvl s-9 | @ P . T . O .

'Utsav', an economically priced brand, was launch€d

last gear and is targeted at small households with limited

budgets. This prcject concentmted mainly on consumersin Tamil Nadu, Maharashfa and Gujaral, thus wideningthe accessibility of lts products to all consumer levels.

General Manager Mr. P.M. Mr-rrthy says that "the

degree ol penetration concentrates on how economical it

is to do buslness." He says that though lhis new product

has performed far,ourably, lt has not contributed much tothe prolits of the year. "Of courge, it promises to be avery good and attractive s€gm€nt for future business," headds, when asked about its futur€ groMh and profit

potential.

Other new products also include powder paints to beus€d for both auto and non-auto appliances. Th€re areothel products fike wood linishings (Touch-wood) thatiakes care of refinishings on turnilure.

To sirengthen its industrial prcduct base, APIL has

collaborated with PPG lndustries, an American {i!m, and

thus enjoys the use of cathode elecbo deposiiion primer(CED). The companv has coocLuded a tie-up with NipponPalnts for original equipment paint products and withSigma Coatings of Holland for conosion coatings- Thetechnology that has been brought home as a result oi

MS-e1@ 1 0

these vebtures is modi{ied at the company's plant atBhandup, so as io make it suitable tor the Indian climate.

With a tretter product tange on olfer now, APIL js

,ust wai$ng for a grcater awareness of industrlal paint

appiications to develop iD the Indian markei; tlrepresumption is thai th? d€mand for this patticular productjs still htent. For its decorative pairls, the company hasgone in for ditlerential prlcing to €ncourage all segDenisot the market.

fhe company rs intent on a conlinuous modemisationand upgradation of lts technology and lts assets, so as tokeep in tune wi{h the changlng requirements of themar*€tplace. ln addition, ii is also woiking on plans toincrease production capacity owr the he)d tew years.

Besides ihe activity on ths domestic ftont, APIL islncreasing its oveEeas presence as well. One o{ the ,ertlndian companies with overseas subsidiaries in theSouth-Pacific region, APIL is now settFg up a new

subsidiary in Ausfualia. lts existing ventures abload toohave reported healthy resu)is : Asian Patnts (Sor.rth

Pacific) has registered a 12 per cent grov/th, Aslan Paints

{Tonga) grew at a rat€ of tive per cent, Asian Paints(Solomon Islands) at over 10 per ceni and Asian Paitts

{Nepal) at over 18 per c€ht.

Ms-e1@ 1 1 P.T.O.

With a new s\rbsidiaiv at Vanuatu (New Hebddes) anda joint venhrre unit in Townsville (Auskalial, APIL hasestablished at least a fooihold in the intematonalmarkeis-

When asked about the ihreats facing the company,Choksey chucldeg and says h€ pr€{ers to calt themchallenges. "We need to meel the dema^ds of thisg{oqing organisation - ol our workforce, our i€chnologyand ouf ass€ts. A major point to be tackled is to be ableto meet the qrowing d4mand for our product and tocreate a greatef awareness for orrf newer productg," hesays_

Over the first lew months of the qilreni financialyear! sales volume has been growing at a rai€ of 14 percent. well above lhe industry average. With the recessionti{mly behind jt and goiernment levies no longer inflatingits pices, lhe paint industry seems to be on an uptr€nd.Brrt lhe APIL management has its wolk cui out for it i itwill not mer€19 have to gear up to m€et the burgeoDingdemand, but will also hav€ to worl hard at retaining andthen increasing its mark€t shar€.

Quesliorg :

ia) What corporate goal has the compary adopted for thenext few years and wiih what strategies does thecompany propos€ to realise the abo!€ goal ?

Ms-e1@ 1 2

(c,

What threats is th€ company facjng or/and rnight {acein futlre ? What has it done anvor what could it

further do to safeguard itself lrom thteat(s) ?

Evaluat€ the nelv strategies of Asian Painh (lndia)

Limited. parlicdarly irs proposed foray inlo ceramics.

mat actior dans has the company propos€d to

strengthen its product base ?

ClassiJy all the strategic plans or propos€d skat€gicactions of the corhpany tor achietrng gro[th againstsuitable headings, e.g., Oiversilication, Joint Vettlires,

MS-slo I ,O00

MANAGEMENT PROGRAMME

Term-End Examination

December. 2OO5

Maximum Marks : 100

MS-92€) : MANAGEMENT OF PUBLTCENTERPRISES

Time : 3 hours

There orc two Sections A and B.

Section A hos ttto sets. get I is meont Jor thestudents who hole registered for MS92 pnor toJuly, 2004 i.e. upto Januory, 2004.

Set 1l is meant Jor the students who houeresistered Jor MS 92 lrom July, 2004 onwards.

Attempt dny three questions Irch Section A.

S".rion B is computsory Jat au

All questions cafty equal marks.

Ms-s2@ P. T.O

2 .

SECTION A

Set I

{Pre-Revised)

l. Whai are the foundations on which Government - PE

relationships are based ? Discuss the differeni ways in

whrch Covemment inter".l. wlh Pts

"The governing boards of PFJ in India occupy a very

significant position and enjoy far wider responsibilities than

ihe boards of commercial companies." Discus,s.

Explain the concept ol employee participation and how

dop. ' i nork rhrough ownership in lnd'd.

Discuss the causes which can be attributed to

organizational d€cline of the PEs. Illustrate with examples.

Explain ihe concept of a holding company and discuss the

evolution of holding compani€s in PEs.

3.

4 .

M S e 2 @

l .

Set II

(R€vi3ed)

Djscuss ihe impact of economic refoims on PEs since

1 9 9 1 .

'Legislaiive contrcl beco.nes one ol the most important

and elleciive methods of enforcing accountabiiig.

especiallg in the Indian confext.' Elaborate and critically

analyze the statement.

Briefly discuss the pedormance evaluation of the Siat€

Electricv Boards.

Discuss ih€ variolls methods of disinveslment and iheqrrdregrc rs5\res Involved i"l di,invernenr proce"s.

2 .

3.

4 .

5. Wrjte short notes on i

{a) Restructuring

{b) Leases

(c) Joint-ventures

(d) Corporate Covemance in PEs

oMS-92 P-T.O

SECTION B

passages and answer the queshons thatRead ttl€ following

follow i

(b)

BharaX Bhari Udyog Mgam Ltd,

li is holding company comprisjng seven subsidiariesin the eastem reglon includlng wel) known nameslike Burn Standard Co. Ltd., Jessop & Co. Ltd.. andBraithwate & Co. Lid. Its 1990 - 91 sales turnov€r

was Rs. 410 cror€s wiih a loss {or the year ofRs. 10 90 nores

Th€ company's objectjve as given in its 1991 - 92MOU inter oliq 'is io achi€ve a high degree ofcustomer satisfaction through timely supply of quali\'

ptodrcts and s€rvjces". This was to be m€asured withrefercnce ta delivery/erc.iion commjtnlents of varjousproducts and services on a five-point scale with aweight of 10%.

Do you think that the company's objectire isappropriate in the pre$ent cont€xt ? Commeni.

Andreu Yulc & Co. Ltd.

This old Brliish Managing Agency house b€came agovemm€nt company in 1979. lt is a multi-unit,muliiproduci conglomerate with five subsidlaries anda gross turnov€r o{ Rs. 325 qores in 1990 - 91.

Ms-e2@

The company's MOU attached 57o weight to

customer satisfaction m€asured with telerence lo

liquidated damages and fr€e rectification and

replacement colt as a perceniage of turnover. The

company s aim.was to reduce it from .40%o in

1990-91 to .36Vo in 1991-92. The company

wanted its marketing efforis to be judg€d with

relerence to (i) total orders booked during the y€ar,(ii) selling and marketing cost, and (iii) number olproducts launched, with an overall weight of 8%.

Comment on the marketing efforis of the companykeeping In mrnd rhe custom"rs perspect ive.

MS-s2 @ 1,000

MANAGEMENT PROGRAITIITE

Term-End Examination

December. 2OO5

Moximufi Morks :100

{Weishtase 700/0)

Nore, This pqper consisis oJ two Sections A ond B.Alemp! anv thtce questiohs J,oh Sedbn A.Section B is compulsory- AII q\.testions coffy equdl

SECNON A

1. What is the scope and types of financirg suppotl provided

Lmder ih€ current policy for the SSI sector ? Explain in

d€taii,

2, ld What are the criteria that entrepreneurs use in' e',bluating alternative produclion processes and

equipm?nt sple(rion t

MS.93@: MANAGEMENT OF NEW ANDSMALL ENTERPRISES

Time : 3 hours

MS-s3 @ P . T . O .

4. (a) E\plain the impoftant iesues in product desisn

selection {or a small entrepreneur

(b)

5. (a)

(b) A group o{ rutal agriculturistr is planning to set up a

{ruit preservation unii io make jams and jelli€s out of

the locally grown produce. What is the process 9ouwould advie them to follow to settle on ihei! tocation

decision ?

What are the components of project cost that must be

refl€cted in a tusiness plan ? Taking an er"ample ol your

chojce, discuss the cogt components.

Briefly describe the process of lroiotype development

and iis implications ior product management.

What are ihe alternative choices regaiding

management control that can be consider€d by a

familv enlerprl5e ?

How shodd issues ol strccession platning and

continuity be handled in family enteryris€ ? L\plain by

taking exarnples.

{b)

Ms-e3 G)

, SECTION B

6. Read the case given below and answer the questions given

at the end of th€ case :

Tasty Foods Limited

Tasty Foods Ltd. is a small enterprise €ngaged in the

manufacture of dilf€rent food products. Its R and D

activities have recently col4e out with a new soyabean

snack. The main strength of this product is the highly

nutritious value of protein-rich soyabeans.

While the R and D DePartm€nt is happy to have

developed a highly nutritious snack especially useful fot

children, the company management wants to be cedain

that the new snack will hav€ a good market in the

country. In order to ensure that the new product is

successfully launched in the market, the Managing

Direcior (MD) is thinking of hirjng the professional

seruices of a Marketing Research Agency (MRA) ln

consullalion with lhe MRA, *re MD decid€d to convene

a meeting of Marketing Manager (MM), Production

Manager iPM) and the MRA, to be represented bv its

chief executive. Th€ me€ting was held in MD's chamber

and il tumed oui Lo be a prolonged session

Ms-e3 o P . T . O .

A few excerpts from th€ discussions held in thai

meeting afe given below :

MD , I feel certain that our new soyabean snack isgoing to be very 5uccessful in the market. Theproject is unique in the sense that no soyabean

based snack is pr€sently available in the mark€t.

In view of this, test marketing of this product

seems to me rather Lrnnecessary, We can do

without it. Moreover, it will save a good deal oI

time as the new product can be introduced in

the market almost immediately.

PM : I fully support the vi€ws expressed by our MD.

Let me emphasise that our R and D Department

has taken considerable pains in developing this

new product. It has come through a long

. succession of concept and product tests. Test

marketing wodd obviously delay the process of

marketing Lhe product.

MM : Since our new product is going to be our major

achievement, it is desirable to have detailed

information about it. It will b€ to our ad',antage

if we know our consumer target and their major

characlenstics.

MRA , I know some cases wherc a new product was

regarded as a 'strong' product by the R and D

and the Production Department. But when it

was commercially launch€d, it tutned out to be

Ms-e3 @

M D :

a failure. The concerned companies learnt a

bitt€r lesson. I am of the opinion that theproduct in question must be test markeied to

avoid any such disappointment at a later

srag€.

Suppose we decide io go in {or test matketing,

what are we going to get from such an

exercise ? w€ musi be clear as to what test

marketing is expected to do for us.

MRA, The MD has raised a basi. que-stion. The

company must b€ clear about the objectives o{

test markeilng. Are you looking at test

marketing to decide whether ihe new product

should be launched naiionally or not ?

Alternaiively, are you looking at it as a rehearsal

before an extensive laurch ? This means lhat

9ou are intetested in knowing wbat is likely to

go wrong and how this can beprevenledAmproved.

M M . I think both these objectives mentioned by MRA

are yele@nt in our case, ln fact, the restlts of

test marketing r,.'ilt indicate whether we sbould

launch ihe product nationally or drcp it

altog€ther. I think it is advisable to decide the

nature of information to be collected so that iest

marketing can be really helptul to us.

MS,e3 o P.T.O.

MD r l-et us then have test marketing. But before it is

undertaken, we must specify our data

requirement. I suggest that MRA and MM should

meet and discuss this fully.

Qdes,ions i

(a) What advice would you give to the management in

terms of the information to be elicit€d through iest

rtarketing ?

(b) What other mechanism ot makrng a markel

assessment can be used L'y th€ enterpdse in cas€ the

test marketing is not done ? Suggest.

Ms.e3 @ 1,000

MANAGEMEM PROGBAMME

Term-End Examination

December. 20O5

MS-94 @ : TECHNOLOGY MANAGEMENT

Time : 3 hours Mdximum Morks : 100

lUVetghtoge 7@/o)

Note t Attempt atl questiotls. All questions carry equal

1. (a) "R & D provides a window to de,le:lopment at:fenables tbe Dation or a fi'tu to ev)vate exte:r,aldevelopments and react morc quicldy to th€m."l ustrate by indicating alternative objectives in th€area oI en€rgy and matedals technology.

Wlrat are some of the commitments and assurancesthat a technology policy is sr.lpposed to commit tothe government ?

OR

{a) "A prerequisite for effective utilizauon of R & Dtesources is the development of technalogy

. infrastnrciure within the country." Giv€ someexamples of technology infrasiructure ihat arenecessary for developing technology capabiltties.

(b)

Ms-s4@ P.T.O.

(b) Discuss the Freeman's caiegorisalion of technologicalchange wjih examples.

2, Explain the Delphi t€chnique. State its advaniages anddisadvantages.

OR

what are the objectives ol technology search strat€gy ?Briefly explain varioug categories of palments lor thetechnology.

3. Define technology absorption. What conslralnts m' tech$olosy absorption have teen reported as far as lndian

experience is concern€d ?

OR

Describe the various siages in Technology Assessment andbrie{ly explain each stage.

4. "An enierprise should b€ viewed as a Human Perfolmance

System." What wor-rld be the major components of suchhlman performance sgstem iq the cont€xt of t€.hnologV

management ? Expiain.

OR

What is Technology lnformation ? Discuss the role ofTechnology In{ormatio$ sygtem. Explain the contents o{Technology Inlorrnation with suitable examples.

MS-s4 @

5- Explain any four of the following ,

(a) Impodant inputs Jor enterprise ievel technologysrraregy

(bl General guidelines lo be lollowed lor iransler andabsorption ol imported technologEs

(c) lndian indusiry and industrial research

(d) S & T manpower in India

{e) Venture Capital I Role and its groqft,h in India

(0 Technology and Socio-economic planning

MS-e4 @ 1,000

MANAGEMENT PROGBAMME

Term-End Examinati,on

December, 2005

MS-95O : RESEARCH METHODOLOGYFOR MANAGEMENT DECISIONS

Time : 3 hours Moximum Morks : 700

Meightose 70o/o)

tj) This poper contoins iroo sections, Section A and

B. Section A cornprising 60 morks contoins Jioequestions. Attempt on| folrr questions lrom this

Secrion- Secfion B is cohpursory and carries

40 marks.

Stotisticol tobles will be pro\ided, on demond.

Use oJ personol non-programmoble calculators Is

(il

(rti)

MS-s5 @ P . T . O .

I ,

SECTTON A

A local supermarket has €xperienced a decline in unit sal€s

and littl€ change in rupee value sales. Proliis have almosi

vanished. The chiet a€cutive in s€arching for ways to

revitalize the operation, was advised to increase the

number of hours tie market is open for business. He

comes to you for advice 'n structuring a fesearch problem

that will provid€ relevant informaiion for decision making,

Define fle research problem taking care lo :

(a) state the relevant question.

(b) enumerate the alternative answers.

(c) clearly define ttr€ units ol analysis and charactedstics

of interest,

"A sample may be large yet wofhless because it is noi

randomi or it may be random but unreliable because it i5

smdl." Comment upon the above statement and explain

th€ importance ol sampling in daily life.

What do you understand by factor analysis ? Mention th€

purpose and uses of lactor analysis.

What are the seven elements of communication, which are

relevant lor making a presentation ? Dscuss.

2.

t5

3-

4 .

MS-s5 @

5. Write short notes on any ahlee o{ the following : 15

(a) Objectivecharacteristicsandlnlenedcharaciedstica

(b) &liijng of primary data

(c) Operating and Strategic decisions

(d) Ordinal Scale

{€) Audio-visual aids in presentation of reports

Ms-e5 0 P.T .O .

SECTION B

6. Describe the semantic dillercntial scale. Use the semanticdifferential t€chnique to dev€lop the profile of ihree

television manufacturing companies in India.

7. A random sample of 30 stud€nts obtained the lollowingmarks in a class test :

Tesl the hypothesis that their median score is more

20

than 50.

58 55 25 32

33 ?2 10 42

38 30 36 65

89 94 25 74

26 85 44 80

15 46 64 39

72 46 54 36

66 29

MS-s5 @ 1,000

MANAGEMENT PROGRAMME

Term-End Examination

December.2O05II

III

It 'III '

i

MS-96@ : TOTAL OUAI-ITY MANAGEMENT

Time : 3 hours Moximum Morks : 7OO

(Weishtose 70/ol

(i) There ore hoo Secfions : Section A ond Section B

(ii) Attempt ony three questions from Section A,

uhich caffy 20 marks each.

(iii) Section B is compulsory ond cafties 40 marks

SECTION A

1. (a) "lnnumerable busin€ss organizations, wheihet in the

East or the West, have realized ihe role and benefits

of quality." Discuss some of the important factors

that have caused this realization

(b) According to Crosby, what are the basic tenets oI his

statement that quality is an unending cycle ?

2. . (a) Discuss the role and functions oI top managemeni in

quality improvement.

MS,e6o P.T,O.

{b) How are quality and productivity r€lated io eachother ? Does technology have any role in these ?

Discuss the role of TQM coordinatoG. Who arequalitg champions and wlat is theil imporiance ?

Highlighting the special characteristics thatdistinguish leadership in a TQM context, discuss thesix actions of leaders.

What factors motivate a business organization toadopt Environmental Management System (EMS) ?Discuss.

What are ihe profession;1,/technical abilities that aquality auditor is suplrosed to possess ?

3. (a)

(b)

4. (a)

{b)

5. Explain any tour of the following ,

(a) Criteria for Deming PrizelAward

(b) Elements oI Safety Programme

(c) Statistical Quality Control

{d) Characteristics ol Quality Circles

{€) Applications of Robust Design

{0 ChamcteristicsolReengine€ring

MS 96@

SECTION B

6. Read the following case cayefully and answer th€ qu€stionsgiven at the €nd.

Oberol Group

One hundred per cent hospita'ity. That's the simpiequality target set by the Rs. 520-qorc Oberoi Cralp [or

each of its 19 hotels, 11 of whjch ar€ managed by the

flagsbip Bs- 220-crore East India Hotels. For, as a sirdy

conducted by the group's top management and presented

periodically to executives, housemaids, cashiers, stewards,

doormen, chefs, and laundry-boys in ihe hotels revenls,

the cost of even 99.99 per cent quality is ioo high. For

99 per cent qiality means t

. Tbat every three days, one guest checks olrt withoutpaying his bills.

r That every day, 20 orders ol {ried eggs have human

hair in lhem-

r That every day, 15 tables in the restaurants have

soiled linen.

r Tbat every day, 250 ptates are broken.

r That every day, the drinks of 40 guests get mrxed

up.

r That every day, 20 guests do noi get back the right

lauodry.

M s e 6 @ P.T.O.

Shocked by th€se numbers, the hotel chain is

iuriously adopting the fomal quality initiative )aunched in

1993 by group managing director Priihvi Raj Singh

"Biki" Oberoi, 65, son of the chain's founder, Mohan

Singh Oberoi. Actually, Oberoi Jr. is m€rely

institutionalising the quali9 standads set by his lather,

who personally auihored the bulky manuals that detail

every step the hotel staff follow, ranging from how guests

shodd be received to how the rose should be placed on

a btealdast 1ray.

In th€ past, this cr€ated exact:ng guidelines for ihe

hot?l chain - such as the one which ltipulates that every

pillow in every hotel must be sluffed with exactly 1.8 kg

of impofed down. Or that all upholstery and fumishings

must be Scotchgarded. Or thai th€ soap to be placed in

balhrooms must be selecied alier dgorous examinatiotl,

involving the testing ol 15 {ormulations in laboratories

and the conducl o( {oqgs gyo\jp inler,'iews among

So, quality has never been an alien concept in the

Oberoi Group. What Oberol is now doing, though, is to

standardise quality, with th€ aid ol professional consulting

expertise, in ihe Jorm of systems raiher than individual

initiative, "l won't deny that the quality initiative is a

/esult of increasing competiiion," he confesses. "Bul it is

MS-s6 @

also a fact that until recently, we did not have access to

the expertise of .professional agencies.

HOW OBEROI IDENTIFIES CUSTOMER NEEDS

IDENTIFY THE OI,"TPUT

ls output staied in noun/verb format ?

ls it a tangible output ?

Is there a customer whoexpects this output ?

Is this? new output ? Or do you produceit on an on-going basis ?

What ov€tall result is this ouiputworking towards ?

Is there a need for problem solvingat fhis stage ?

MS-e6 @ P,T.O

IDENNFY THE CUSTOMER

Have you named the prirnary customer ?

Is this the person {or functional group)who wo/ks on the output next ?

Does th€ customer know he,/she is thecustomer for thjs output ?

Are there others who makeuse of this ollipui ?

Who is the end-lrser ?

Is there a need for probl€m,solvingat this stage 2

MS e6o

ls there a need for problem'soNingat this stage ?

Will these specifications result in an outputthai meets custorDet teeds ?

Are sp€cilications achievable withthe existing work pioc€ss ?

Translate customeis needs intoneasurable specifications

What requirements do Vou exPectyour customerc to have ?

Wbat changes must you maketo.the requtrements ?

Which requremenfs demand analysisoI yow work process ?

Do you n€ed to discuss anythingwith the cusiomer ?

ls th€r€ a need for ptoblem-solvingat this siage ?

Ms-e6 o

Thai's why Oberoi has commissioned tle consultancycompany! McKinsey and Co., to examne anclrecommend chang€s in all its operatior.E - includingquality standards. Scanning every practice in the hoiel -

from the most guest-efficieni way of folding the drawsheetin a bed to the attiiudinal chang€s required in employ€es- McKinsey is implementing a charter for change over asix month period.

Also helping the group in iis quality quest isD€lhi-tlased consultancy group, the Centre for GroMhAlienatives (CGA), which has created a deiailedflow-chad of the chain's transactions with customers.Points out David Wilson, 37, general manager, HyattRegency, Delhi : "The Oberoi chain has al,;vays had areputaiion for quality. Their biggest strength is aconsistent approach to it."

Simultaneously, Oberoi has also launched a trainingprogramme to coach workers .in the use of ihe newhardware, rotating the programm€ through differenthotels in the chain. Because of the levels of quality thaithe chain has already achieved through its founder'sinsistenc€ on standards, the Oberoi Group's qualitypractices today focus on providing the extra, unexpectedtouch in order to get a competitive edge, rather than theroutine accommodation of demands that every gueslmakes.

MS-e6 @

For instance, when a mistak€ is committed and aguest complains, the hotel's employees must not onlyapologise and rectify the enor, but also report to theguest the precautionary steps being taken ro prevent rtsrecurrenc€. This also makes it mandatory for the problemto be traced to.lts root cause. Just what, then, are thesteps that lie at the heart ol the Oberoi quality

r Set benchmark lor ev€ry action that relates to serving

r Break down all activiiies into small, definable

r Measure each of them in mathematicai rerms so thataction standards can be h-acked and monitored to ascertainconsi(ency of quality.

r Set up the infrastructure and systems to ensure that eachtransaction is accomplished without error.

. Use internal and €xternal measurements to monfor their€fficacy.

Take a look at how this algorithm b'dnslated itself intopractice. Using guest satisfaction indic€s - which areused for every functionr ranging from food and beveragesdnd housekeeping Lo guest reldrions and €ngineering -

which are measures of guest satisfaction levels and thetim€ taken to accomplish a function, the Oberoi chain

MS-s6 o P.T.O.

pegged iie acceptable lime-limit for a check-in at six

minutes at peak hour.

ln other words, the time that must elapse bet"veen a

guest stepping into the lobby of the hotel, being met bv

the butler, having his check-in tormaliii€s completed,

being escorted to his rcom, having his L,aggage dehvered,

and the telephone armed should not exceed six minutes

if a guest is to fe€l good.

To ensure this, the process was analysed to

determine peak check-in hours, which, in turn, were used

to determine the staft strength required at diiferent times

of the day to meei the six-minuie deadline And to

support the system with infraslructure, the chajn has

equipped iis senior executiv€s and butlers with pagers -

and is in the proc€ss oi making them al'tilable to all staff

- to ensure smooth information flows.

Using the same svstem, th€ Oberoi chain address€s

customer complaints and the mislakes thar provoked

them n6t to assign blame, but to probe tl€ flaws in

transactions and rectify them. So, when a guest

complarned about not b€ing served his favourite dinner'

y\aetg l/jeo Wan Kai - chicken green curry - the

problem was tracked down, through an analysis of every

st€p. to a uong purchase deci.ion

MS-e6@ 1 0

Apparently, tbe coconut mjlk used rn this dis}I ispurchased Irom the Lakshadweep Islanos ro ensurcconsistency in quality. But becaus€ delays in dejivery hadnol been ac(ounled for. supplies of coconut milkp€reniaily dried up. No sooner was the systern defectdetected than the lead iimes oI acquiring supplies waschanged from s€ven to 15 days - even at the risk ofover-stocking.

One crucial concept that drives this mapped-outprocess is that of the intemal customer_ Every step isdelin€d as a transaction betwee n an internal customerand an inlemdl supDlier. >etlrng up d chain which,ultimat€iy, cuiminates in the exiernal customer_ Or, theguest,

Explains Sanjiv Mathotra, 33, general managerj The

Oberoi, Delhi | "lntemal customer seNice has crystallised

and become targible dudng the last tito years.,,Tbis

enables every employee to focus o; his or her immediate

customer, rather than the end,user alone, so that thefiner details are not missed in the attempt to get the bigpicture right.

Adds Rajesh Kapoor, 39, managing director, CGA :"The focus js on meeting customer needs through an

Ms e6@ i 1 P.T O .

internal backward int€gration process so thai each link in

the chain is strenglhen€d and existing conflicts are

resolved." Quality-retated problems are solved by

re-examining each transaction and intensitying the

clLstomer-client re]ationsiip in each case to ensure that

the step receives extra attention.

THE QUAIJTY TRIANGLE

PROCESS IMPROVEMENT

LEADERSHIPTEAM WORK

This is possible because the chain makes it a point

to provide the inflastructure lor qualiiy, ensuring that

equipment cannot be blamed For instance, if the distaice

be\.veen ihe lip of ihe tandoor and the lnside ls not the

prescribed 12 inches, the Ob€roi chain pfefers to write

MS-s6o 1 2

off ihe cost of making ihe tandoor - Rs. 4,000 - than

risk a badly-cooked chicken drumstick. Nevertheless, il

somethjtg goes wrong, it can on19 tte because ne sysrem

isn t delivering.

- With these crucidl components of the qualiiy process

in place, the Oberoi chain also empowers its employees

to inno,"ate as much as necessary in order to delight

customers. A tyavel clerk had the power - and was

rewarded for his initiative - to charter a pri!?te plane lor

an American gueit to fly from Delhi io AgIa despite

knowing that his cornpany stood to lose Rs. 20,000 in

case the guest decided to call off his trip.

Since such empowerment makes grounding

mandatotg, employees are educated constantlv using a

training cycle of technical sl.jlls. To ensure conformiiy and

cam,, out measurements ol quality practices, intemal ,

audits are perJormed wjtb unbending rigour to ensure that

the grcup s complex manuals and checklists are followed.

Then. they are validated by extemal rneasurements

of results by gauging customer satisfaction through

customer comment cards, markgt research, and mystery

MS-e6 @ 1 3 P,T,Q.

shoppers. Says Oberoi : "Our quest for perfection is not

yet over." And it won't be so as iong as the 0 01 per

cent gap b€iwe€n the Oberoi Group's quality targets and

ils services remains,

THE SERVICE IMPROVEMENT MODEL

I\leasuremenl & Feedback Loops

Questions ;

(a) Describe the principal methods of the Quality

programme at Oberoi.

(b) What 'Best Practices' at Oberoi can you discern

from the case ?

(c) What do internol customers and internal

suppliers n'lean and who are such people at the

Oberoi ?

ManpowDr Measuremenls

M S s 6 @

(d) In the context ol a service industry like hoteliering,examine/€xplain th€ lollowing siatements and give atleast ffuee examples/rcasoDs in support of each

(i) "ln today's competitive scenario, mamrenanceof quality is not enough, you hav€ to improvequality. "

(ii) "Everybody in the company ha! to be qualityconscious, "

"lf you want to be ahead of your competilors,your quality has to be monitored all the time."

"The only way io achieve quality is throushtraining the people."

(iii)

(iv)

M S 9 6 @ 1 5 1 ,000

MANAGEMENT PROGBAMME

Term-End Examination

December,2OO5

MS-97@ : IIVTERNATIONAL BUSINESS

Time : 3 hourc Maximum Morks : 100

Nvelshtose 70Yo)

Note :

(i) ,There

are two sections : Section A ond Section B.

(ii) Attempt ahy three questions Jrom Section A whichcoirg 20 rr,orks eoch.

(iii) Section B is computsory and conies 40 morks

SECTION A

l. (a) Briefly discuss the nature, scope and role o{

International Business.

{b) Explain t€ontief's theory. Why is it also known as

"Lpontief's Paradox" ?

P .T ,O ,Ms-e7 @

Explain the pattern of evolution of MNES in terms ol :(i) Tgpesi (iiJ Structurei (iii) Degree of divetsificationt and(iv) Characterisiics.

la) What co d be ihe ditferent approaches 10 conirol in

MNES ? What could be some of the negaiive ejfects i{

communication network within a corporation is tightly

drawn Lrp ?

(b) Discuss the merits and demerits oI multiple indicators

of performance over single jndicator as a basis lor

performanc€ evaluation.

(a) Discuss how socio-economic and cultural variablesinfluence management thinking and practices in a

counlry In rhe context ol MNCS.

(b) Whai considerations, in general, would guide an MNC

in ils decision to locate produciion facilities ? Why has

ofj-shore manufacturing gained considerable ground in

receni yeals ?

E\plain any ,ftree of the following I

Strategic ailiances

Transfer pricing in international opeBtions

Factors inJluencing Joreign investment decisions

Flexible Manufacturing Systems

Arb;tration of disputes

4-

5 .

(a)

(b)

(c)

(d)

\e)

Ms-s7 o

6 .

SECTION B

What factors, you think, have contribuied to me emergenc€ot sizeable BPO service industry in tndia ? What challengesdo you thjnk the jhdustry could lace in futr/e ?

Read the following caselet and present a diagnosis o{ theproblem. Also comm€nt on the statement : ,,Transplantation.

of management policiea and practic€s oI one colrmry ntothe socio economic milieu of another country may be fraughtwith dangefs. "

HMSI

They were so calm, so relaxed, so unhurried. They

werc at last doing somethtng for which their |raining had

equipped them. They were perfect examples of the adage

that practice makes perfect. They were beaiing the young

men on the ground with their long stick. They were

drawing bloodi and iI some unlortunate victim dared raise

his head, he was rapidly disabled. They were the

ilfuslious Haryana police. 'fhe venue was Gurglaon, the

date 28 July, th€ occasion was a public demonstration ofthe workers who were trying to disrupt ptoduction inHonda Moiors and Scooters India (HMSI).

MS-e7 o P . T . O .

The Haryana police were not the only ones who

li\,€d up to their stereotyp€. HMSI was the first. There are

many stories of the laik of love betu/€en the Japanese

and trade unionjsts. Many joint ventures that wer€ staded

wilh Japanese compani€s in the 1980s failed, Some were

tal<en over by their Japanes€ partners who inheited their

labour troubles. The Japanese became nototious lor

messing up labour relations- Admitiedly, workers becom€

restless when {actorks fail and when employ€rs cannot

meet their expectations. Failing factones are not the

easiest to manage. Whether for bett€r or lor worse,

however, the Japanese acquired a reputation lor lack of

flexibilitv and imagination.

But lhe slrange lhing is thal HMSI is not d taittng

factory. It is hugely successfr.rl and immensely profitable.

Its scooterc are obscenelg populari HMSI cannot meet

demand for ihem. Customers prize their scootets And

thai is whv it was targeted by professional trade unionists

They saw a ripe f)lit r€ady io be pluched, a fat goat

ready {or sacrifice. So they regi\tered a trade union tasl

December, and ask€d for recognition. HMSI relused to

recognige them. That is how trouble stafted.

Ms-e7 @

This is just the beginning. Trade unionism is part of

the official r€ligion further east ln Calcutta, trade unions

claim not only the yighi to stop production when they feel

like; they claim the right to stop the cit9. A Calcuttan

ne\€r knorvs when his city will be btought to a halt by a

screaming column ol trade unionists Companies have

mo\r€d out of Calcutta in hordes because th€it directors

do not like riotous trad€ unionists shouting jusi outside

board rooms. There is a culture o{ noisy tgitation that the

r€st of India could do without.

Most ol all Gurgaon. For it is the only place outside

the south where ihe new industries - information

technologg and business process outsourcing - have

taken rcot. Th€y are mosi at home is Bangalore, Madras.

Bombay and Poona; somehow they Iind north of the

Vindhyas inhospitable. The only exception was Gurgaon,

whose new industry exports are close to Rs 200 billion

a gear' These are industries that wod< round the clock;

thev cannot countenance a single day's closure Southem

cities have adapted ihemselves to their demand ior

reliabiliiy; Gurgaon is the only norihem city tllat could

match them.

MS-e7 @ P . T . O .

It could do so because, like the south, Gurgaon was

fr€e of trade unjonism - of bandhs, gh€raos,

demonstrations. shouting and intimidaiion. lf it is nowinfected, it will in th€ long run lose out to ihe south *

as Calcutta did lor two decades despite offering the mostattractive inceniives to the IT industry. But b€fore it does,it will do consjderable harm ro the great lTiriven boomthe country is witnessing. For the Japanese amoassador

was righi - the Japanese will ask, is India safe tromcrippling agitations, or will they be beter off in China ?And they will not be the only ones to ash. Alt forcigninvestors will ask the same questions.

And rhev will nol b€ pacitied by ihe loreisn

ministry's boast that India's democratic instlutions anclIegal system will do their work. Th€y have seen these atwork in the opposition walk-out of parliament and ihescuflle of ihe police and Veer Mati, whose brother has

disappeared. Great theatrei but are these the sights of acountry ready for a leap forward, a country welcoming

foreign investment ?

The Left padies s€e a gr€at chance in the Centralgoverqmenl5 dependence on them - an opponunity to

spread their wings across the country. The instrumeni of

Ms-e7 @

their aggression is precisely the centrally organised,

externally financed, confrontative trade unionism lhai

pervades West Bengal and has now come to Gurgaon. It

may serue the Lett's inierest, bui it is not in the interest

ol the country, which is in the middle of the first

suslained boom sirce the one that the reforms unleashed

in ih€ early 1990s. We have often wondered what would

stop this wonderful boomi now we knolv th€ answer. The

I-eft cor.rld stop the boom, helped by a pusillanimous

government. Here is a problem that the Pnme Minister

needs to taclde quickly with all the poliiical skills at his

Ms-e7 o 1 ,000