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MS-24 : EMPLOYMENT RELATIONS

June 2013

SECTION – A

1. Briefly explain the Gandhian approach to industrial relations.

 2. Briefly explain the reasons for the formation of managerial unions and its activities. Explain with suitable examples.

 3. What are the special features of collective bargaining, in India ?

 4. Briefly discuss the factors responsible for the failure of participative management schemes in India.

 5. Explain the bases of classification of act of misconduct relating to discipline. Give examples

SECTION – B

6. Read the case given below and answer the questions given at the end :

 The Standard Textile Printing Works conduct business in high quality printing of superior ' textiles. It has a good reputation in the market. The Company employs about 500 workers and works in three shifts a day. There is no union in the plant. The chief executive of the works is the General Manager who is assisted by three Shift Managers, six Supervisors and twelve Assistant Supervisors.

For the past few months, the General Manager had been receiving frequent complaints from Shift Managers that a large number of pieces of customer's cloth were missing from the plant and they could not account for the losses. The General Manager took a serious view of the losses because it meant not only payment of damages to the customers but also the company's reputation in the market. He therefore, ordered a close search of workers at the time of their leaving the work-place for home. As a result of these searches, a couple of workers were caught with pieces of cloth hidden inside their dresses. They were chargesheeted for theft subsequently dismissed after the domestic enquiry.

Some day's back, during lunch interval, Vinayak, a worker in the folding department saw an Assistant Supervisor taking a piece of cloth and putting it in his brief case. Vinayak immediately reported the matter to the Shift Manager who came to the department and found the said piece of cloth in the briefcase of the Assistant Supervisor. Without any discussion, he asked the Assistant Supervisor to see him in his office. A week passed, and the concerned Assistant Supervisor continued to attend to his work.

During this period, the Assistant Supervisor threatened Vinayak that the latter's days here were numbered. This upset Vinayak. He approached the Shift Manager and enquired of him as to what action was taken against the Assistant Supervisor. The Shift Manager politely replied, "I am thankful to you for whatever you did; it is none of your business to know what action we are taking against him. Remember that, after all, he is your officer." Vinayak felt irritated, but left the Shift Manager's office without a word.

On the same day, when the watchman was about to search Vinayak while he was leaving the plant, Vinayak shouted at the watchman saying. " I will not allow myself to be searched unless the officers are also searched. They are the thieves." The watchman detained Vinayak at the gate and reported the matter to the General Manager, who called vinayak to his office. On being questioned by the General Manager, Vinayak told him all about the piece of cloth in the Assistant Supervisor's briefcase and subsequent events and repeated what he had said to the watchman. The General Manager thereupon asked him angrily, "Do you mean to say that we are thieves ?" Vinayak replied, "You can take it that way, if you like." The General Manager recorded the incident along with Vinayak's reply to his question and took Vinayak's signature on it.

 Next day Vinayak was served with a suspension order for his "Act of insubordination and indecent behaviour." Thereafter, the General Manager referred the case to the Personnel Manager.

 Questions :

(a) How far is the action of General Manager Justified ?

(b) As the Personnel Manager how would you deal with this case ?

(c) Give reasons for the way you would handle this case.

MS-23 : HUMAN RESOURCE PLANNING

June 2013

SECTION – A

1. Describe the various forecasting techniques. What are the issues that affect demand forecasting ? Give examples.

 2. Define Job Analysis and identify the steps involved in it. Briefly discuss the methods of collecting information for a job analysis.

 3. What is recruitment ? Briefly discuss the methods and techniques of recruitment. Compare the advantages of recruiting from internal sources and external sources.

 4. Explain HR audit, Identify its need and scope in the organisational context. Enumerate and briefly discuss the steps involved in HR audit .

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

(a) Career Planning

(b) Trends in labour demand

(c) Induction Training

(d) Potential Appraisal

(e) Competency Mapping

SECTION – B

6. Read the case given below and answer the questions given at the end of the case :

 When Adite Technologies Ltd. (ATL) moved one of their divisions to Bangalore, the branch manager in Mumbai decided to transfer those employees who did not wish to go to Bangalore to other local divisions. Ten of the thirty chose to stay and be transferred to another division. Madhuri was one of those. She was assigned to the computer moving - head division.

 When Madhuri reported to the new job, Narendar Kumar, her new supervisor, told her he did not know whether or not he would have a permanent position for her. For three days Madhuri sat and watched other employees at their work. On Friday, Narendar announced that their division had received another big contract and he would brief Madhuri on her new assignment on Monday.

 Madhuri arrived at 9.00 a.m. Monday morning and waited anxiously to learn about her new job. Narendar did not arrive until 10.30. He was being briefed on the new contract, he said, and would not be able to meet Madhuri before lunch. At 1.30 p.m. Narendar returned to show Madhuri the operation, "we are reworking model 10-D and it only requires changing two spot welds. With this jig, you can turn one out in about three to five minutes." Narendar added, "By the way, you will be the quality control supervisor on this job. Just double check these six spots on the blueprint." He did not write on the blue prints or mark areas in any way. Madhuri was given no idea how important the checks might be.

"Please - watch me," said Narendar to Madhuri, taking up the welding torch. "Any one can do it easily," He repeated the operation five or six times. Madhuri tried it and experienced no difficulty. Neither of them checked their reworked pieces with the blue print to see if they would pass the quality control check and as a result, Madhuri never checked any pieces after that demonstration. Narendar did not see Madhuri again until Friday.

 During the week several things happened. More than half the motors did not work correctly by the time they reached the final assembly. It could not be determined whether the faulty motors were the result of Madhuri's work or the result of a lack of quality checks. A box of 20 parts had been approved by Madhuri since her initials were on the inspection card, but she had not made the necessary alterations. That was when Narendar found time to talk to Madhuri again.

 Questions :

(a) Identify the issues inherent in this case.

(b) What incidents showed that Narendar was not performing a good job as a trainer ?

(c) If you were Narendar, what would you have done to improve Madhuri's performance ?

MS-22 : HUMAN RESOURCE DEVELOPMENT

June 2013

SECTION-A

1. Define HRD and discuss value-anchored processes of HRD. Explain how do these processes help an organisation in achieving excellence ? Explain with relevant examples.

 2. Describe how are reward systems designed in an organisation, and explain the ways in which employees are rewarded in an organisational set up.

 3. Define and describe the objectives and advantages of Multisource Feedback and Assessment Feedback System (MAFS). Discuss what are the indicators of an organisation's readiness to participate in MAFS.

 4. Explain the concept of knowledge Management. Briefly discuss various approaches to knowledge Management, with relevant examples.

 5. Write short on any three of the following :

(a) Systems Theory and Human Performance

(b) Vertical Re-skilling

(c) Career Transition and Choices

(d) HRD Audit

(e) Managing Technological changes in work organisation

SECTION-B

6. Please read the case and answer the questions given at the end.

Hara Food Products Company, which was founded in 1955 to manufacture grocery and other food products, had in the course of years grown into a vast enterprise having offices and branches in almost all the important cities of the country. Its annual sales amounted to about Rs. 50 to 60 lakhs a year.

 The Company's Head Office and factory were situated at Calcutta. Its products were distributed through five zonal sales offices which directed 25 district sales offices throughout the country.

The administrative responsibility of each zonal office was brone by a manager whose duty was to promote sales in his zone. He was advised and instructed by the Head Office from time to time.

Under the control of each Zonal Manager, there were four functional heads, viz., Personnel Manager, Accounts Manager, Sales Manager and Office Manager. These executives advised and assisted the Zonal Manager on various functions relating to the zonal administration. Each functional head enjoyed sufficient freedom and independence in respect of his work.

On matters relating to sales, the Zonal Manager received advice from Sales Manager. The latter often formulated policies, plans and schedules for sales operations and submitted his views on all the matters concerning sales to the Zonal Manager. Many a times, he also issued orders and instructions to the District Sales Managers but all these were routed through the Zonal Manager. Ordinarily all his views and advice were accepted and approved by the Zonal Manager.

The Sales Manager was assisted in his work by three product managers, who were considered to be experts in their respective fields. Their duty was to travel with the sales supervisors of various districts and study the market for the company's products; survey the competitive position of the company's products; study dealer and consumer reactions, trend in sales, etc., and advise the district sales supervisors from time to time regarding the steps to be taken for promoting sales in the districts. Every month each one of them

submitted a report on the sales activities of the company to the Sales Manager. The relationship between the Product Manager and the Sales Manager is the same as that between the Zonal Manager and the Sales Manager.

 Directly responsible to the Zonal Manager were five District Sales Manager besides the four functional heads. Each District Sales Manager was responsible for sales in his territory. In promoting the sales of the company, each District Manager was assisted by five sales supervisors besides several salesmen. The duties and functions of the District Sales Manager were to :

(1) Select, train and supervise his sales supervisors and salesmen in consulation with the Zonal Manager ;

(2) Make a study of the nature of consumer demand, changing markets existing stocks

and formulate sales campaigns and promotional methods ;

(3) Fix up targets of sales to be attained in his territory from time to time ;

(4) Formulate credit policies to be followed in consulation with the Zonal Manager ;

(5) Develop better team work among the sales supervisors and salesmen ;

(6) See that the customers are satisfied with the company's services ; and

(7) Do such other functions and duties as might be assigned to him from time to time by the Zonal Manager.

Every month each District Sales Manager submitted a detailed report on the sales activities of the company in his district, to the Zonal Manager. Ordinarily these reports were passed on to the Sales Manager for necessary action to be taken with respect to each district.

On the morning of June 6, 1981, the following conversation took place over phone between Mr. Raju the Sales Manager at the South Zonal Office and Mr. Hari one of the District Managers in the Zone.

Hari : "I wish to bring to your notice an important matter that needs your urgent

consideration The Product Managers are interfering too much with the sales activities of

my district. I receive frequent complaints from the supervisors that they are not able to carry out my instructions due to unnecessary interference from these people. If this state of affairs continues it would be very difficult to maintain our sales. The morale of the supervisors would be seriously affected. I will not be responsible if sales go down this year in our area on this account. You must take some steps to see that the relationship between the line and staff is maintained on good terms."

Raju : "Mr. Hari, you need not worry I shall call the Product Managers and see that they maintain proper relationship with you " Next day Mr. Raju called all the Product

Managers and after discussing routine matters, he said, "I was told by Mr. Hari that his sales supervisors are complaining that you are interfering with their activities. Definitely you are all expected to advise them on the steps to be taken for increasing sales. But at the same time please remember that you have to play only an advisory role. While advising these people you must also see that the line authority is respected ...."

 The product Managers did not say anything.

In the subsequent months Mr. Raju did not receive any complaint from the District Office. But in the first week of October, while scrutinising the sales progress reports of the various districts for the previous quarter, the Zonal Manager found an unusual decline in sales in the District which was under the supervision of Mr. Hari.

The Zonal Manager called Mr. Hari and asked him why there was so much decline in sales in his territory while all the other districts showed very good progress.

 Hari replied " during the past three months the Product Managers did not seem to have advised our men properly. In fact, they never cared to advise the supervisors on the recent changes and the latest trends in the market. They seem to be unwilling to co-operate with our men to maintain sales.

When asked about this by the Zonal Manager, one of the Product Managers said, "We used to give advice to this district office also as we usually do with other district offices. On a complaint, seems from Mr. Hari, we had been told by Mr. Raju that we were exceeding our authority and unnecessarily interfering with the activities in the district. We had been asked to restrain ourselves. The District Manager takes advice directly from the Zonal Sales Manager, We have got nothing to do in this matter ...."

 Questions :

(a) What is the core issue in the case ?

(b) Analyse the causes which led to the problem.

(c) As a member of the management team, what would you do to solve the problem immediately ?

(d) Suggest a suitable organisation structure and HRD system for this company so that

such problems do not occur in future.

MS-11 : STRATEGIC MANAGEMENT

June 2013

 SECTION - A

1. (a) Differentiate between objectives and goals and the need for setting the objectives.

(b) Describe the features and the process of setting objectives.

 2. What do you understand by the competitive environment of an industry ? Explain with the help of examples.

3. (a) Whit are the two variants of focus ? Discuss each giving examples.

(b) Discuss the advantages and disadvantages of a focus strategy.

 4. Explain the process and importance of Turnaround Strategy. Support your answer with the help of examples.

 5. Write short notes on:

(a) Critical Success Factors (CSFs)

(b) Balanced score card.

 SECTION - B

6. Read the following case and answer the questions given at the end of the case.

 Whirlpool's Dramatic Turnaround Through Internationalization Home appliance maker Whirlpool Corporation, headquartered in Benton Harbor, Michigan, generated over $19 billion in annual sales in 2006, an increase of 26 percent from the previous year. Key factors influencing this performance include the acquisition of the Maytag Corporation in 2006 and an increased global demand for its brands and innovative products. During the next several years, the company expects growth in Asia and Latin America to be significantly higher than in North America and Europe.

 Whirlpool employs more than 80,000 employees in over 60 manufacturing and technology centers world wide. The firm manufactures washers, dryers, refrigerators, dishwashers, freezers, ranges, compactors, and microwave ovens in 13 countries and sells them in 170 others under brand names such as Whirlpool, Maytag, Magic Chef, Jenn-Air, Amana, KitchenAid, Kenmore, Brastemp, and Bauknecht. Whirlpool generates almost 60 percent of its sales from North America, 25 percent from Europe, 15 percent from Latin America, and just 2 percent from Asia.

International Expansion

As the U.S. appliance market matured in the 1990s, Whirlpool faced intense domestic competition and more demanding buyers, resulting in lower profit margins. Meanwhile, international market trade barriers fell, consumer affluence grew, and capitalism flourished. Management realized that it could best deal with these threats and opportunities by undertaking a systematic program of internationalization. As a result, Whirlpool engaged in a series of moves over the next decade.

Whirlpool acquired the appliance business of Philips in Europe, 65 percent of Italian cooling compressor manufacturer Aspera, and purchased Poland's second largest appliance maker. In Eastern Europe, Whirlpool created subsidiaries to sell and service appliances in Bulgaria, Hungary, Romania, Russia, Slovakia, and the Czech Republic.

In China, Whirlpool formed a joint venture to produce air conditioners and established a corporate headquarters and product development/technology center in Shanghai. The company also opened regional offices in I-Iong Kong, New Delhi, and Singapore. In Mexico, Whirlpool acquired Vitromatic, a former joint venture partner in Mexico. It also developed low-cost versions of popular models to target customers in low-income markets in Latin America, China, and India.

 Three factors have driven this global expansion. First, Whirlpool sought to reduce its costs of R & D, manufacturing, and service by locating plants and other operations in lower-cost locations such as China, Mexico, and Poland. Second, flat to declining sales growth in the United States pressured management to target sales in new markets abroad. Third, Whirlpool realized the firm's manufacturing and assembly operations would benefit from a more global approach. Management redesigned products with more standardized parts and ramped up marketing to make Whirlpool a globally recognized brand. The company integrated the activities of regional subsidiaries so that Whirlpool's most advanced expertise in appliance technology, production, and distribution could be shared with the firm's divisions world-wide.

 Innovation

 Whirlpool conducted an internal critical assessment in the late 1990s. It became apparent

that a consumer walking into any appliance store anywhere in the world would witness a "sea of white" appliances with little differentiation, even between manufacturers. The industry became known as the "white goods business." Consumers perceived the products as commodities, which offered little differential advantage and commanded ever lower prices due to increasing competition.

 In 1999, Whirlpool management launched a major campaign to differentiate the firm's offerings by emphasizing innovative, value-added products. In early 2000, Whirlpool enlisted 75 employees from almost every job classification and assigned them in groups to Benton Harbor, Italy, and Brazil. Training lasted nearly a year and was conducted by an outside consulting group.

The next step was to get the rest of the global workforce involved. Whirlpool established an intranet site and created a do-it-yourself course in innovation. Throughout 2001 and 2002 Whirlpool's "knowledge management" intranet site recorded up to 300,000 hits per month. The company established a rating system to identify high potential, innovative ideas. Since 2003, revenue has quadrupled annually. Whirlpool estimates that the new appliances in development from this system, once marketed, could produce $ 3 billion in annual sales, up from projections of $ 1.3 billion in 2003. Whirlpool developed microwave ovens that can grill steaks, bake pizzas, or come in the form of a drawer that slides out for easy access to large dishes. The firm invented a washer with a built-in sensor that detects the size of the load and automatically picks the water level, spin speed, and type of wash cycle, essentially making all decisions for the user.

Local Preferences

Cross-regional R&D teams also collaborate on innovations to adapt offerings to meet local demands in diverse international environments. For example, due to very different climates, Italians often line-dried their clothing, while the Danes need to spin-dry then clothes. Capacity requirements vary greatly for refrigerators. The Spanish care about capacity for meats, the British want well-constructed units, and the French are more concerned about the capacity for keeping fruits and vegetables fresh. Germans are particularly concerned about environmental features, while child safety features are very important to the Italians. In India, Whirlpool developed a washing machine that delivers a higher level of cleanliness for consumers who believe whiteness of clothing expresses purity. The washer's gentle handscrub movement and unique "hot wash. technology" maximize the effectiveness of laundry detergent.

Whirlpool has benefited immensely from international business. The firm is a leading example of how internationalization can revive declining sales and optimize cost structures. It has developed international distribution that reduces expenses, leading to higher profits, and has positioned itself to challenge competitors on a global scale. The firm has thrived through sensitivity and commitment to consumers in diverse cultural and economic settings around the world.

Growing Competitive Threat from Abroad

Yet not all is bright and sparkling on Whirlpool's horizon. Haier, China's largest appliance maker, established a production base and a distribution center in South Carolina in the United States. The firm also bought a six-story landmark. structure in New York, dubbed the Haier Bulding, to house its U.S headquarters. The world', fifth- nearly 20 percent and 50 percent of the markets for window air conditioners and small refrigerators, respectively Now it is expanding into full-size refrigerators, Haier's moves are especially troubling given. that Whirlpool generates very little of its sales from Asia, the world's most populous region, where Haier already has a strong presence.

Ironically, Haier's South Carolina factory is creating new jobs in a state that witnessed a mass exodus of textile jobs to factories in China, South Carolina receives foreign direct investment from various countries and is home to four Japanese and 18 European facilities. These trends show that globalization both benefits and poses new threats to Whirlpool's international ambitions.

As it struggles to remain a world-class player in a key industry, Whirlpool faces

new challenges. Management wants to expand sales in emerging markets while defending the home market from global rivals from China and elsewhere. The firm seeks to continue to leverage and enjoy all the benefits of international business.

 Questions

(a) What is the nature of Whirlpool's domestic and international business environments? What types of risk does the firm face ?

(b) How can Whirlpool benefit from going international? What types of advantages can the firm obtain ? What advantages acquired abroad can help management improve Whirlpool's performance in its home market ?

(c) What actions has Whirlpool management taken to ensure that the firm succeeds in local markets throughout the world? To what extent is the appliance business local/regional rather than global ?

(d) How can Whirlpool effectively compete with new rivals originating from low-cost countries, such as Haier from China? Should Whirlpool's response differ in its home and foreign markets? If so, how ?

MS-10 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE

June 2013

SECTION - A

1. What are the objectives of T-Group training and briefly discuss the benefits of T-Group Training at individual, group and organisational levels.

 2. Discuss the elements that need to be reviewed for organisational analysis and briefly describe the analysing organisations.

 3. Briefly describe the contemporary approaches to job design and their relevance.

 4. What is the purpose of organisation design ? Briefly describe the factors which affect

organisation design.

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

(a) Task force

(b) Centralisation Vs Decentralisation

(c) Quality of work life

(d) Interview as a diagnostic tool

(e) Process of change

SECTION – B

6. Read the following case carefully and answer the questions given at the end :

 ABB: A HUGE GLOBLE MATRIX

 If lean and mean could be personified, Percy Barnevik would walk through the door. A thin, bearded Swede, Barnevik is Europe's leading hatchet man. He is also creator of what is fast becoming the most successful cross-border merger since Royal Dutch Petroleum linked up with Britain's Shell in 1907.

In four years, Barnevik, 51, has welded ASEA, a Swedish engineering group, to Brown Boveri, a Swiss competitor, bolted on seven more companies in Europe and the U.S.A. and created ABB, a global electrical equipment giant that is bigger than Westinghouse and head to head with GE. It is a world leader in high-speed trains, robotics and environmental control.

To make this monster dance, Barnevik cut more than one in five jobs, closed dozens of factories and decimated headquarters staffs around Europe and the U.S.A. Whole businesses were shifted from one country to another. He created a corps of just 25 global managers to lead 21,000 employees. IBM has talked with Barnevik and his team about how to pare down its own overstaffed bureaucracy. Du Pont recently put Barnevik on its board. Says a senior executive at Mitsubishi Heavy Industries. "They're as aggressive as we are. I mean this as a compliment. They are sort of super Japanese."

 ABB is not Japanese, nor is it Swiss or Swedish. It is a multinational without a national identity, though its mailing address is in Zurich. The company's top 13 managers hold frequent meetings in different countries. Since they share no common first language, they speak only English, a foreign tongue to all but one. Like their boss, senior ABB managers are short on sentiment and long on commitment. An oil portrait of a 19th century founder of Brown Boveri hangs in ABB's headquarters, but few are sure what his name is. (It's Charles Brown). Ask for a fax number, though and you're likely to get two, office and home.

 To Barnevik, today's competitive market economy is a 'cruel world'. Not making it any kinder, he has launched a personal war on what he sees as excess capacity-2 percent to 3 percent in the electrical equipment industry in Europe alone. Educated in Sweden and the U.S.A (he studied business administration and computer science at Stanford in the mid-1960s), Barnevik thinks European industry must be restructured massively to become competitive in world markets. He foresees billions of dollars and mergers and acquisitions in the next three to five years. Europe's best strategy against the Americans and Japanese, he believes, is to break free of protected national markets.

 Before the merger, Brown Boveri had four people in Baden, Switzerland, and ASEA had as many as 2 in Vasteras, Sweden. The combined company now employs just 15 in a modest six-storey building across a train station in west Zurich. Where did everybody go? Many were fired. The rest were sent to subsidiaries or offered jobs in new companies set up or assume many headquarters functions. (ABB Marketing Services, for example, creates and runs campaigns for ABB, but also takes on a few other clients). And Barnevik expects to make money). It's not just cost cutting Barnevik is after, though that is obviously important. Says he. "Ideally you should have a minimum of staff to disturb the operating people and prevent them from doing their more important jobs."

 Barnevik's master matrix gives all employees a country manager and a business sector manager. The country managers run traditional, national companies with local boards of directors, including eminent outsiders. ABB has about two such managers, most of them citizens of the country in which they work. Of more exalted rank, are 65 global managers who are organised into eight segments: transportation, process automation and engineering environmental devices, financial services, electrical equipment (mainly motors and robots) and three electric power businesses: generation,transmission and distribution.

 Barnevik is well aware that the once popular management by matrix is in disfavour in the U.S.business schools and has been abandoned by most multinational companies. But he says he uses a loose, decentralised version of it-the two bosses are not always equal-that is particularly suited to an organisation composed of many nationalities.

 The matrix system makes it easier for managers like Gerhard Schulmeyer, a German who heads ABB's U.S. businesses as well as the automation segment, to make use of technology from other countries. Because of the matrix, Schulmeyer has a better idea of what is available where.

 He says that the techniques developed by ABB in Switzerland that he uses to service U.S. steam turbines are more reliable and efficient than those of General Electric and Westinghouse, his main American competitors. Schulmeyer also relied on European technology to convert a Midland, Michigan, nuclear reactor into a natural gas-fired plant.

 ABB executives say the value of the company's matrix system extends beyond the swapping of technology and products. For example, the power transformer business segment consists of 31 factories in 16 countries. Barnevik wants each of these business to be run locally with intense lobal coordination. So every month the business segment headquarters in Mannheim, Germany, tells all the factories how all the others are doing according to dozens ofmeasurements. If one factory is lagging, solutions to common problems can be discussed and worked out across borders.

 Questions :

(a) Which of the four basic departmentalisation formats do you detect in ABB's structure of eight segments ? Explain.

(b) Has Barnevik created an effective balance between centralisation and decentralisation ? How can you tell ?

(c) Relative to the advantages and disadvantages, is ABB's matrix structure appropriate to its situation ?

(d) How does ABB apparently avoid unity-of-command problems with its matrix structure ?

MS-9 : MANAGERIAL ECONOMICS

June 2013

SECTION-A

1. Economics has developed several concepts and analytical tools to deal with the question of allocation of scarce resources. Discuss this statement in context of Three Choice problems of an Economy.

 2. (a) Define and explain Point Price Elasticity of demand.

(b) For a demand function.

P = 200 — .50Q

Q = 800 — 8p

Calculate Point Price elasticity when P = 40 and Q = 240 and Interpret the result.

3. (a) What are Short - run Cost Functions, and the costs incurred in the short run ? 

Give examples.

(b) Describe the relationship between Marginal cost and Average costs.

 4. A Multi National Company faces barriers to entry, when it opens its branch in a country. Discuss these barriers to entry.

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

(a) Opportunity Set

(b) Demand Forecasting

(c) Accounting Method of Cost Function

(d) Peak Load Pricing

(e) Monopolistic Competition

(f) Envelope curve

SECTION-B

Read the case given below and answer the questions given at the end.

THE INDIAN AUDIO MARKET

The Indian audio market pyramid is featured by the traditional radios forming its lower bulk. Besides this, there are four other distinct segments: mono recorders (ranking second in the pyramid), stereo recorders, midi systems (which offer the sound amplification of a big system, but at a far lower price and expected to grow at 25% per year) and hi-fis (minis and micros, slotted at the top end of the market).

Today the Indian audio market is abound with energy and action as both national and international majors are trying to excel themselves and elbow the others, ushering in new concepts like CD sound, digital tuners, full logic tape deck, etc. The main players in the Indian audio market are Philips, BPL and Vidieocon. Of these Philips is one of the oldest and is considered as the leading national brand. In fact it was the first company to introduce a range of international products such as CD radio cassette recorder, stand alone CD players and CD mini hi-fi systems. With the easing of the entry barriers, a number of new international players like Panasonic. Akai, Sansui, Sony, Sharp, Goldstar, Samsung and Aiwa have also entered the arena. This has led to a sea of changes in the industry and has resulted in an expanded market and a happier customer, who has access to the latest international products at competitive prices. The rise in the disposable income of the average Indian especially the upper-income section, has opened up new vistas for premium products and has provided a boost to companies to launch audio systems priced as high as Rs. 50,000 and beyond.

Pricing across Segments

Super Premium Segment : This segment of the market is largely price-insensitive, as consumers are willing to pay a premium in order to obtain products of high quality. Sonodyne has positioned itself in this segment by concentrating on products that are too small for large players to operate it profitably. It has launched a range of systems priced between Rs. 30,000 and Rs. 60,000. National Panasonic has launched its super premium range of systems by the name of Technics.

Premium Segment : Much of the price game is taking place in this segment, in which systems are priced around Rs. 25,000. Even the foreign players ensure that the pricing is competitive. Entry barriers of yester years compelled the demand by this segment to be partially met by the grey market. With the opening up of the market, the premium segment is witnessing a rapid growth and is currently estimated to be worth Rs. 30 crores. Growth of this segment is also being driven by consumers who want to upgrade their old music systems. Another major stimulating factor is the plethora of financing options available, bringing more and more consumers to the market.

 Philips has understood the Indian listener well enough to dictate the basic principles of segmentation. It projects its products as high quality at medium price. In fact, Philips had successfully spotted an opportunity in the wide price gap between portable cassette players and hi-fi systems and pioneered the concept of a midi system (a three-in-one containing radio, tape deck and amplifier in one unit). Philips has also realised that there is a section of the rich consumer which values not just power but also sound clarity and is willing to pay for it. The pricing strategy of Philips was to make the most of its image as a technology leader. To this end, is used non-price variables by launching of a range of state of the art machines like the FW series, and CD players. Moreover, it came up with the punch line in its advertisements as, "We Invent For you."

BPL stands second only to Philips in the audio market and focuses on technology as its USP. Its kingpin in the marketing mix is its high technology superior quality product. It is thus aimed at being the product-quality leader. BPL's proposition of fidelity is translated in its punchline for its audio systems as, ' d-fi your imagination' (d-fi stands for digital fidelity). The company follows a market skimming strategy. When a new product was launched, it was placed in the top end of the market, and priced accordingly. The company offers a range of products in all price segments in the market witl out discounting the brand.

Another major player, Videocon, has managed to price its products lower even in th premium segment. The success of the Powerhouse (a 160 watt midi launched by Philips in 1990) had prompted Videocon to launch the Select Sound range of midi stereo systems at a slightly lower price. At the premium end. Videocon is making effects to upgrade its image to being "quality-driven" by associating itself with the internationally reputed brand name of Sansui from Japan, and following a perceived value pricing method.

 Sony is another brand which is positioning itself as a premium product and charges a higher price for the superior quality of sound it offers. Unlike indulging into price wars, Sony's ad-campaigns project the message that nothing can beat Sony in the quality and intensity of sound. National Panasonic is another player that has three products in the top end of the market, priced in the Rs. 21,000 to Rs. 32,000 range.

 Mottos and Stereos : Videocon has a 21% share in the overall audio market, but has been a major player only in personal stereos and two-in-ones. Its history is written with instances where it has offered products of similar quality, but at much lower prices than its competitors. In fact, Videocon launched the Sansui brand of products with a view to transform its image from that of being a manufacturer of cheap products to that of being a company that primes quality, and also to obtain a share of the hi-fi-segment. Sansui is being positioned as a premium brand, targeting the higher middle,

upper income groups and also the sensitive middle class Indian consumer.

 The objective of Philips in this segment is to achieve higher sales volumes and hence its strategy is to expand its range and have a product in every segment of the market. The pricing method used by Philips in this segment is providing value for money.

 National Panasonic offers products in the lower end of the market, apart from the top of the line range. In fact, it reduced the price of one of its small two-in-ones from Rs. 3,500 to Rs. 2,400, with the logic that a forte in the lower end of the market would help in building brand reliability across a wider customer base. The company is also guided by the logic that operating in the price sensitive region of the market will help it reach optimum levels of efficiency. Panasonic has also entered the market for midis.

 These apart, there also exists a sector in the Indian audio industry, with powerful regional brands in mono and stereo segments, having a market share of 59% in mono recorders and 36% in stereo recorders. This sectors has a strong influence on price performance.

 1. What major pricing strategies have been discussed in the case ? How effective these strategies have been in ensuring success of the company ? Discuss.

2. Is perceived value pricing the dominant strategy of major players ?

3. Which products have reached maturity stage in audio industry ? Do you think that product bundling can be effectively used for promoting sale of these products ?

4. Which other pricing strategies can be used for audio industry ?

MS-07 : INFORMATION SYSTEMS FOR MANAGERS

June 2013

1. (a) Define multi-tasking and time-sharing system. Name different generations of programming languages and their characteristics.

(b) Distinguish between Internet and Intranet. Describe Client and Server architecture.

 2. (a) Define MIS. What are the main features of an MIS ? Can you visualize MIS without computers ?

(b) What impact does the implementation of programmed decisio-making have on the management system of an organization ?

 3. (a) Why should every organization have a disaster recovery plan to protect itself ? What are the main components of a disaster recovery plan ?

(b) Discuss in detail Information Systems in functional areas and decision-making.

 4. (a) Computers are often referred to as "number crunches". Evaluate the statement in the context of financial planning.

(b) What are the technology related challenges in any organization ? Highlight the pitfalls. How integrated software-application can help in this ?

 5. (a) "With so many ready made and customized softwares available, the need for a manager is to learn to use them effectively rather than learn to program them". Do you agree ?

(b) Discuss different types of data in database system. What are the developments in database technology with respect to data types ?

 6. (a) Differentiate between DSS, MIS and EIS with the help of suitable examples. Why is DSS more of a facility than a system ?

(b) What do you understand by Artificial Intelligence ? What are it's current Applications ?

MS-6 : MARKETING FOR MANAGERS

June, 2013

SECTION-A

 1. What is Marketing Mix? Explain the various Marketing Mix elements taking the example of small sized passenger car.

 2. (a) What is consumer behavior ? Elaborate the different types of purchase behaviour in the purchase of a product, giving suitable examples.

(b) Explain the marketing criteria to be used for selection of a brand name. Based on these criteria suggest a suitable brand name for the following Products and Services (any two) :

(i) fruit juice

(ii) Indian fast food chain

(iii) footwear

3. What are the major objectives of pricing ? How do the different stages of PLC affect the pricing decision ? Explain giving suitable example.

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

(a) Implications of social marketing

(b) Perceptual mapping techniques

(c) Matrix organisation

(d) Primary data Vs Secondary data

(e) Characteristics of organisational consumer

SECTION-B

5. Read the case given below and answer the questions given at the end of the case.

 India is among the hottest growth markets for AC makers, just like other consumer goods companies. Daikin entered India in 2000 an as 80:20 JV with Siddharth Shriram group company Siel. In 2004, it bought out Siels's 20% stake to make the Indian firm a wholly owned subsidiary. All these years, Daikin's sold bulk of its ACs to offices and factories and served only the upper middle class homes. Since entry-level products are driving volumes across categories, the company could not afford to stay away from that segment for long. Daikin launched 14 models for homes last year and the starting model was only 10-15% costlier than similar models offered by the competition. Earlier the price gap used to be 50%. Changing lifestyle, increasing disposable income, falling prices and wider availability have all contributed to the rise in air-conditioners sales. Demand is also rising in smaller cities and towns as well as more households join the buoying middle class segment. With introduction of cheaper products, enhanced distribution network and aggressive promotional activities in the last one year, the company claims to have already increased its market share marginally which is encouraging and it wants to become one of the top three room air-conditioners marketers. The company plans to introduce more mass products, which account for more than 80% of the country's room AC market.

 Questions : Develop suitable promotional strategies for the company for the following segments :

(a) Home segment

(b) Offices and factories segment

MS-1 june-2013

MS-1 : MANAGEMENT FUNCTIONS AND BEHAVIOUR

SECTION-A

1. Enumerate various tasks of a professional manager. Describe and discuss any four of them with suitable examples.

2. Identify the various types and nature of decisions a manager is required to take in an organisational situation. Discuss various phases in decision making process propounded by Henry Mintzberg and Herbert Simon.

3. Enumerate and briefly describe various strategies of conflict management. Justify your answer with relevant examples.

4. Why is 'Coordination seen as a problem in organisational set ups ? Describe with examples various approaches to coordination.

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

(a) Dimensions of Organisational Culture and Climate.

(b) Antecedents of Organisational change.

(c) Channels of Communication.

(d) Policies and design choices in control.

(e) Determinants of Inter-personal behaviour.

SECTION-B

6. Please read the case and answer the questions given at the end :

Major Mohanty, a retired man from the army, joined as MD in Sunrise Limited, when the company was passing through a very bad period with declining production and productivity, heavy losses and low morale of the employees. Major Mohanty, after having made in-depth, logical and strategic studies of the situation, immediately flagged on what he called 'operation rejuvenation', with exclusive thrust on production and productivity related issues. People related matters were of no consequence for him, for he believed that people, by and large, are dull, lazy, shirkers and non-starters and as such work should be extracted from them only through constant watch, close supervision, complete and rigorous command and control. His style of functioning did yield some results, but before any impact could be seen, he abruptly left the organisation , having got a better assignment in the United States of America.

Major Mohanty was immediately succeeded by Mr. Soni, a man who had made a name for his balanced approach to people and production through participative style of management in his immediate position as the Deputy MD of a large organisation in a similar product line. He was, in fact, commanded for his maximum concern for both people and production, and for bringing about an ideal integration and harmony between the needs of the employees and those of production.

In the present company also, Mr. Soni continued his policies of participative management with equal concern for both production and people. With a view to reviving the company back to health, he instituted some major changes. First of all, he decentralised the organisation so that the subordinates could exercise their discretion and initiative in decision making, as also their imagination and creativity in performing other managerial functions. Further he empowered the junior managers to incur expenditure upto an approved limit without seeking prior approval of the higher

management. The communication system was also improved to facilitate free flow of upward and downward communication. Mr.Soni also adopted several measures to reduce costs and wasteful expenditure. He banned donations to charitable institutions, but increased the amount being spent

on the welfare activities of the employees. Will Mr.Soni's managerial style prove to be effective in ensuring a bright future of the company ? Some employees are of the view that a lot of things are being done, but they might not be effective in the long run. Others disagree with them, and say, 'Okay, we will give it a trail'.

Questions :

(a) Was Major Mohanty a theory 'X' or a theory 'Y' Manager ? Explain with reasons.

(b) Is Mr. Soni a theory 'X' or a theory 'Y' Manager ? Will you advise Mr.Soni to change hiS presumptions about the nature of people at work ? Give reasons in support of your advice.

(c) How do you describe Mr. Soni's managerial style in the light of 'Managerial Grid' of Blake and Mouton ? Can it be regarded as the best style of management ?

Support your answer with arguments.

(d) Identify the possible problems that can arise from Mr.Soni's way of institutionalizing the changes in rules and regulations.

MS-41   june-2007

MS-41 : Working capital management

1. Explain the concepts of gross and net working capital. Explain how would you plan the working capital requirement af a firm in the short term ?

2. Explain the Bierman-McAdams model that helps the financial managers in funds management of a firm. Also discuss the models which guide hlm in deciding the process of switching funds from marketable securities to cash and vice versa.

3. a) What are lhe basic reasons for which firms hold cash and marketable securities ?