Server virtualization is a fairly new technology that's already broken into the mainstream, but servers aren't the only computers that can benefit from virtualization. If your clients have already virtualized some servers and are comfortable with that technology, they may want to consider virtualizing employees' desktops as well. In this installment of our Virtualization Projects Hot Spot Tutorial, we'll examine the benefits of desktop virtualization and a few different ways of implementing it.
As every IT administrator knows, managing employees' desktops and laptops can be a huge hassle. Even with management tools to help, applying patches to the operating system (OS) or even upgrading applications can be a time- and labor-intensive task. Desktop virtualization can alleviate that by allowing administrators to provide just a few virtual machine (VM) images, or templates for VMs, which all employees use. Other benefits of desktop virtualization include increased security and a way to let employees control their computer environments while also allowing IT to lock down business-related functions.
Tutorial: Virtualization Projects
Learn more about virtualization projects and strategy in our Hot Spot Tutorial for service providers.
The fundamental technology behind desktop virtualization is similar to server virtualization: An administrator creates a VM image file that contains a computer's operating system, drivers, applications, files and settings. A virtualization engine then runs the VM, which behaves as if it were a regular,nonvirtualized computer. The physical computer running the VM, called the host, can either be the user's computer or a centralized server.
Although it is still a fairly new technology, the success of server virtualization is prompting many companies -- and systems integrators (SIs) -- to look into the benefits of desktop virtualization. Companies that look into desktop virtualization have typically already gotten into server virtualization and are familiar with products from VMware, Citrix and Microsoft, which all factor into desktop virtualization, said Barb Goldworm, president of Focus Consulting, a research firm based in Boulder, Colo.
Management and security with desktop virtualization
One of the most significant benefits of desktop virtualization is that it gives IT administrators an easy and centralized way to manage employees' computers. Instead of each computer being separate, administrators create just a handful of VMs or VM templates for different roles within a company. For instance, a company may create one VM for each worker in a call center and another for each sales representative. These VMs would include not just the operating system, but also any applications and drivers the employee would need. Such deployments work best where many employees need essentially the same functionality.
For example, some colleges are looking at desktop virtualization as a way of handling upgrades quickly between semesters, said Ty Schwab, founder and senior consultant of Blackhawk Technology Consulting LLC, a Eugene, Ore., IT consultancy. Colleges only have about two or three weeks from the end of one term to the beginning of the next, which is not typically enough time to update every computer lab across campus without downtime interfering with the academic schedule. By installing new, already patched VMs on computers, colleges can upgrade computer labs within three to five days instead of three to four weeks, Schwab said.
Desktop virtualization also makes it easier to get new computers up and running, said Scott Gordon, sales engineer at ActivSupport, a San Bruno, Calif.-based networking consultancy. Many computers need custom drivers to work properly, and setting these up can be time-consuming. With desktop virtualization, the VM being pushed to the new computer would already have the appropriate drivers installed, Gordon said.
Because the VM is abstracted and separate from the computer's hardware and other VMs, security is one of the major benefits of desktop virtualization. In many organizations, there is a natural tension between employees who want to have a desktop environment they can control and install applications on, and IT staff who would prefer that computers be locked down and kept safe from malware and attacks that might compromise company information.
Desktop virtualization lets computers run a locked-down VM for business operations on top of an open system, giving users and IT staff the best of both worlds, Schwab said. Since VMs are just files, they can also be encrypted to protect sensitive company information. This approach is especially helpful if an employee is working from home or over a VPN, Gordon said.
Server-hosted vs. client-hosted desktop virtualization
Desktop VMs can be hosted either on a server or on the user's PC. Both enjoy most of the same benefits of desktop virtualization, but which one makes sense for your client depends on several factors, such as how mobile its employees are and whether it wants to virtualize everything on the computer or just the business-related functionality.
In a server-hosted configuration, the VM is executed on the server and the client connects to it and displays the results. This is similar to the thin client model that dominated before desktop PCs came to businesses, although the client itself doesn't have to be thin; a fully-loaded laptop could run its own OS and connect to the hosted VM on top of it. VMware's Virtual Desktop Infrastructure (VDI) provides a model for server-hosted desktop virtualization, and San Jose, Calif.-based Wyse Technology is one of the leading thin client vendors for this approach.
Server-hosted desktop virtualization has advantages as well as disadvantages. If the employee's computer is a thin client, your customer can save costs by consolidating hardware resources onto the server, just as in server virtualization -- a thin client is much cheaper than a full-fledged desktop or laptop. Mobile or remote employees can also connect to their desktop from anywhere in the world if they have a fast enough connection and a computer capable of connecting to the server's VM, Schwab said. But that connectivity also raises security concerns, since that connection is going straight to your client's data center, he said. And of course, any employee who can't connect to the server won't have access to his work computer.
Client-hosted VMs don't have the hardware consolidation benefits of desktop virtualization, but because the VM image and virtualization engine are kept locally on the employee's computer, they can be run anywhere and don't require a high-speed connection to the server. But this approach preserves the other advantages of desktop virtualization, such as the ability to sandbox business-related functions and the ability to manage VMs more easily.
If your client's main concern is to protect and manage the applications its employees use -- and not the whole operating system -- you may want to look at virtualizing just those applications. In the final installment of our Virtualization Projects Hot Spot Tutorial, we'll look at application virtualization and a related technology, application streaming.
Thursday, May 22, 2008
Desktop virtualization
Most desktop or laptop operating systems run all local applications and store user data on the machine's hard drive. Because the hard drive is accessible only to the user, this presents several problems for IT management. For example, it is difficult to patch, update, deploy and repair applications.
Desktop virtualization means the user's applications, data and sometimes OS run off a central server. The user's desktop runs a minimal OS that sends keyboard and mouse commands to a central server, which returns the video display output.
Typically, once set up, a virtualized desktop environment is much easier to manage than individual workstations. Desktop virtualization allows companies to rapidly provision, deploy, upgrade, back up and patch user environments hosted on a central server. It also allows a company to manage its assets and IT property more closely because it has a full inventory of its user base. Desktop virtualization may also offer cost savings on hardware and licensing.
For SMB clients, desktop virtualization can mean cost savings on desktop hardware because less-powerful or legacy hardware can essentially be used as terminals for virtual machines. Virtualization also makes a great deal of sense for remote workers who can access their user environment from many locations.
Desktop virtualization means the user's applications, data and sometimes OS run off a central server. The user's desktop runs a minimal OS that sends keyboard and mouse commands to a central server, which returns the video display output.
Typically, once set up, a virtualized desktop environment is much easier to manage than individual workstations. Desktop virtualization allows companies to rapidly provision, deploy, upgrade, back up and patch user environments hosted on a central server. It also allows a company to manage its assets and IT property more closely because it has a full inventory of its user base. Desktop virtualization may also offer cost savings on hardware and licensing.
For SMB clients, desktop virtualization can mean cost savings on desktop hardware because less-powerful or legacy hardware can essentially be used as terminals for virtual machines. Virtualization also makes a great deal of sense for remote workers who can access their user environment from many locations.
Future of virtualization
While server virtualization has begun to prove itself with significant benefits for the server farm, users have continued to struggle with issues on the desktop. In many organizations, the problem of Vista migration, with the hardware requirements it brings, and the management challenges that distributed desktops have plagued IT with for years, has begun to raise serious questions about desktop strategies for the future. And although upgrading your customers' entire PC base to Vista-capable hardware might seem like a great revenue opportunity, there are desktop virtualization options that bring an opportunity to address customers' longstanding desktop management problems.
With somewhere around 550 million corporate desktops today, 5 to 10 million are estimated to be delivered as some form of virtual desktop -- also referred to as "centralized desktop" -- and that number is expected to roughly double by 2009. Centralized desktops encompass three major approaches: terminal services, or server-based computing; virtual clients; and PC or workstation blades. (Application virtualization and streaming is an extension to these, which I'll discuss in a future column.) These three approaches share the advantage of centralizing management of the desktops and securing desktop data in a central location. One or more of these approaches might be worth considering as part of your customers' future desktop strategy.
Terminal services/server-based computing
Terminal services and its extensions have been in production longer than either of the other approaches, offering an early hybrid of client/server computing and mainframe time sharing. This approach, known as server-based computing (SBC), allows multi-user applications to run on a central server (running terminal services or Citrix Presentation Server), which users typically connect to from a thin client. Today, according to Citrix, there are more than 800,000 servers running a Citrix infrastructure, at more than 200,000 companies -- representing the largest portion of the centralized desktop market. Users connect from thin and fat clients of many types. This approach is most familiar for applications where a user runs the same multi-user application and nothing else (for example, at call centers). SBC offers the highest ratio of users per server -- Citrix servers today can support 250 to 500 users per server.
In addition, as Citrix leverages its newly acquired Xen virtualization technology, it will be in a great position to offer leadership across the centralized desktop space, via a stronger integration of SBC and virtual clients, with central management of users connecting to whichever is best-suited for a particular need. Citrix channel partners who also understand virtualization and where Citrix, Xen and VMware fit (today and in the future) have an opportunity to lead in the newly burgeoning space of centralized desktops.
Virtual clients
In organizations that have successfully deployed server virtualization technology (which to date has generally been done using either VMware or one of the Xen-based offerings), more and more users are dabbling with expanding that virtualization out to the desktop. VMware calls its desktop virtualization approach Virtual Desktop Infrastructure, or VDI; Citrix dubbed it Dynamic Data Initiative (DDI); IBM and others use the term "virtual clients."
This approach creates a virtual machine for each desktop; a user can connect to the virtual machine via a piece of software called a connection broker, using a thin client or browser. Connection brokers offer a wide range of functionality and are available from a variety of vendors, including VMware (with software from its Propero acquisition and now offered as Virtual Desktop Manager, or VDM), Citrix (whose broker was originally called Desktop Broker, then Desktop Server and now XenDesktop), Leostream, Provision Networks, ClearCube and others. Functionality ranges from minimal capability (connecting a user to a specific virtual machine to broader virtual client functionality (for example, connecting to a pool of VMs and adding other management capabilities), to incorporating broader connection options (which can include virtual clients, PC blades and terminal services/SBC).
The move from virtualizing servers with VMware to deploying VDI has been a slow process, as desktop changes tend to be, but as time goes on, it will represent a significant opportunity for the channel. Citrix's acquisition of XenSource, and where it goes from here, will have a big impact on this sector of the market, so it's important for channel pros to keep an eye on this space.
For channel partners selling both VMware and Citrix products, the Xen acquisition by Citrix and the huge growth that's projected for the overall centralized desktop market represent both a challenge and an opportunity. As both VMware and Citrix advance their respective technologies, your customers will have new choices for redefining their desktop strategies and expanding centralized desktops to a broader segment of their user base.
PC/workstation blades
Just as virtualization technology is moving from the server to the desktop, so is blade technology. Following the blade server model, PC blades are essentially a PC on a card (blade), which is inserted into a centralized blade chassis. Sometimes this is the same chassis as server blades, sometimes it's a different chassis, depending on the vendor and the type/power of the desktop (PC vs. workstation). The PC/workstation blades are centrally located, with the user interface for keyboard, video and mouse run remotely to the user location via a variety of options (on a local connection or over IP). The "remoting" of the user interface is sometimes called "PC over IP."
Early PC blades gained significant traction in the financial trading and healthcare industries, due to the high security requirements and benefits of being able to remove the PC from the user area and lock it in a secure location. ClearCube and Hewlett-Packard (HP) led this market, with IBM announcing a higher-end workstation blade this year for the IBM BladeCenter Chassis. A new player, Teradici, joined the game this year (its technology is now OEMed by IBM, ClearCube and Verari), with video compression technology that significantly improves the user experience when running graphics. This technology will extend the value of PC/workstation blades significantly. With a PC/workstation blade configuration, the user operates a thin client, which goes through a connection broker to a PC/workstation blade or pool of blades. Again, functionality (CPU power, graphics capability, quad monitor support, local device support) and price vary by blade vendor and connection broker, but all PC/workstation blades offer the advantage of central management and increased security. While PC/workstation blades will continue to be somewhat of a niche market, improvements in the user experience are expanding that niche. PC/workstation blades represent an excellent opportunity for expanding your reach into other parts of your customers' organizations, particularly if you sell blade servers today.
For more information
Focus Consulting is currently working on a major research series on desktop delivery alternatives, including drivers, use cases, considerations, user requirements, vendor options and user case studies. If you would like information or help in this area or if you have interesting user experiences or product/service offerings, please contact us at www.focusonsystems.com.
Barb Goldworm is president and chief analyst of Focus Consulting, a research, analyst and consulting firm focused on systems, software and storage. Barb has spent 30 years in various technical, marketing, senior management and industry analyst positions with IBM, Novell, StorageTek, Enterprise Management Associates and multiple successful startups. She recently released a book titled Blade Servers and Virtualization: Transforming Enterprise Computing While Cutting Costs and published by Wiley, and is working with her team on the upcoming Focus Research Series on Desktop Delivery Alternatives. Barb can be reached at barbgoldworm@focusonsystems.com.
With somewhere around 550 million corporate desktops today, 5 to 10 million are estimated to be delivered as some form of virtual desktop -- also referred to as "centralized desktop" -- and that number is expected to roughly double by 2009. Centralized desktops encompass three major approaches: terminal services, or server-based computing; virtual clients; and PC or workstation blades. (Application virtualization and streaming is an extension to these, which I'll discuss in a future column.) These three approaches share the advantage of centralizing management of the desktops and securing desktop data in a central location. One or more of these approaches might be worth considering as part of your customers' future desktop strategy.
Terminal services/server-based computing
Terminal services and its extensions have been in production longer than either of the other approaches, offering an early hybrid of client/server computing and mainframe time sharing. This approach, known as server-based computing (SBC), allows multi-user applications to run on a central server (running terminal services or Citrix Presentation Server), which users typically connect to from a thin client. Today, according to Citrix, there are more than 800,000 servers running a Citrix infrastructure, at more than 200,000 companies -- representing the largest portion of the centralized desktop market. Users connect from thin and fat clients of many types. This approach is most familiar for applications where a user runs the same multi-user application and nothing else (for example, at call centers). SBC offers the highest ratio of users per server -- Citrix servers today can support 250 to 500 users per server.
In addition, as Citrix leverages its newly acquired Xen virtualization technology, it will be in a great position to offer leadership across the centralized desktop space, via a stronger integration of SBC and virtual clients, with central management of users connecting to whichever is best-suited for a particular need. Citrix channel partners who also understand virtualization and where Citrix, Xen and VMware fit (today and in the future) have an opportunity to lead in the newly burgeoning space of centralized desktops.
Virtual clients
In organizations that have successfully deployed server virtualization technology (which to date has generally been done using either VMware or one of the Xen-based offerings), more and more users are dabbling with expanding that virtualization out to the desktop. VMware calls its desktop virtualization approach Virtual Desktop Infrastructure, or VDI; Citrix dubbed it Dynamic Data Initiative (DDI); IBM and others use the term "virtual clients."
This approach creates a virtual machine for each desktop; a user can connect to the virtual machine via a piece of software called a connection broker, using a thin client or browser. Connection brokers offer a wide range of functionality and are available from a variety of vendors, including VMware (with software from its Propero acquisition and now offered as Virtual Desktop Manager, or VDM), Citrix (whose broker was originally called Desktop Broker, then Desktop Server and now XenDesktop), Leostream, Provision Networks, ClearCube and others. Functionality ranges from minimal capability (connecting a user to a specific virtual machine to broader virtual client functionality (for example, connecting to a pool of VMs and adding other management capabilities), to incorporating broader connection options (which can include virtual clients, PC blades and terminal services/SBC).
The move from virtualizing servers with VMware to deploying VDI has been a slow process, as desktop changes tend to be, but as time goes on, it will represent a significant opportunity for the channel. Citrix's acquisition of XenSource, and where it goes from here, will have a big impact on this sector of the market, so it's important for channel pros to keep an eye on this space.
For channel partners selling both VMware and Citrix products, the Xen acquisition by Citrix and the huge growth that's projected for the overall centralized desktop market represent both a challenge and an opportunity. As both VMware and Citrix advance their respective technologies, your customers will have new choices for redefining their desktop strategies and expanding centralized desktops to a broader segment of their user base.
PC/workstation blades
Just as virtualization technology is moving from the server to the desktop, so is blade technology. Following the blade server model, PC blades are essentially a PC on a card (blade), which is inserted into a centralized blade chassis. Sometimes this is the same chassis as server blades, sometimes it's a different chassis, depending on the vendor and the type/power of the desktop (PC vs. workstation). The PC/workstation blades are centrally located, with the user interface for keyboard, video and mouse run remotely to the user location via a variety of options (on a local connection or over IP). The "remoting" of the user interface is sometimes called "PC over IP."
Early PC blades gained significant traction in the financial trading and healthcare industries, due to the high security requirements and benefits of being able to remove the PC from the user area and lock it in a secure location. ClearCube and Hewlett-Packard (HP) led this market, with IBM announcing a higher-end workstation blade this year for the IBM BladeCenter Chassis. A new player, Teradici, joined the game this year (its technology is now OEMed by IBM, ClearCube and Verari), with video compression technology that significantly improves the user experience when running graphics. This technology will extend the value of PC/workstation blades significantly. With a PC/workstation blade configuration, the user operates a thin client, which goes through a connection broker to a PC/workstation blade or pool of blades. Again, functionality (CPU power, graphics capability, quad monitor support, local device support) and price vary by blade vendor and connection broker, but all PC/workstation blades offer the advantage of central management and increased security. While PC/workstation blades will continue to be somewhat of a niche market, improvements in the user experience are expanding that niche. PC/workstation blades represent an excellent opportunity for expanding your reach into other parts of your customers' organizations, particularly if you sell blade servers today.
For more information
Focus Consulting is currently working on a major research series on desktop delivery alternatives, including drivers, use cases, considerations, user requirements, vendor options and user case studies. If you would like information or help in this area or if you have interesting user experiences or product/service offerings, please contact us at www.focusonsystems.com.
Barb Goldworm is president and chief analyst of Focus Consulting, a research, analyst and consulting firm focused on systems, software and storage. Barb has spent 30 years in various technical, marketing, senior management and industry analyst positions with IBM, Novell, StorageTek, Enterprise Management Associates and multiple successful startups. She recently released a book titled Blade Servers and Virtualization: Transforming Enterprise Computing While Cutting Costs and published by Wiley, and is working with her team on the upcoming Focus Research Series on Desktop Delivery Alternatives. Barb can be reached at barbgoldworm@focusonsystems.com.
What is a Kernel-based virtual machine for Linux
Kernel-based Virtual Machine (KVM) is a full virtualization solution for Linux on x86hardware containing virtualization extensions (Intel VT or AMD-V). It comes with a loadable kernel module, kvm.ko, which provides the core virtualization infrastructure and a processor-specific module, kvm-intel.ko or kvm-amd.ko. Using KVM, one can run multiple virtual machines running unmodified Linux or Windows images. Each virtual machine can have its own private virtualized hardware: a network card, disk, graphics adapter, etc. The kernel component of KVM is included in mainline Linux as of the 2.6.20 kernel.
What does this all mean? For one, it is open source and ready for you to play with. KVM also turns Linux into a hypervisor, which can allow other guest operating systems to run in its space. It could potentially be an alternative to VMware one day. This flexibiliy is where VARs can make a difference. VARs are in the position not only to help roll out and support the product, but also to optimize it and make it better.
What does this all mean? For one, it is open source and ready for you to play with. KVM also turns Linux into a hypervisor, which can allow other guest operating systems to run in its space. It could potentially be an alternative to VMware one day. This flexibiliy is where VARs can make a difference. VARs are in the position not only to help roll out and support the product, but also to optimize it and make it better.
Friday, May 2, 2008
MS 05 Numerical
A time study of a restaurant activity yielded a cycle
time of 2'00 minutes, and the waitress was rated
at PR : 96 per cent. The restaurant chain has a
2O per cent allowance factor. Find the standard time.
Sol : Average time = 2 mins
Normal time = Average time X Performance rating(PR)
= 2 X .96
= 1.92
Standard time = Normal time X Allowances
= 1.92 + 1.92(0.20)
= 2.304 mins
time of 2'00 minutes, and the waitress was rated
at PR : 96 per cent. The restaurant chain has a
2O per cent allowance factor. Find the standard time.
Sol : Average time = 2 mins
Normal time = Average time X Performance rating(PR)
= 2 X .96
= 1.92
Standard time = Normal time X Allowances
= 1.92 + 1.92(0.20)
= 2.304 mins
MS-05 Describe the Oprations Management decisions
I. strategic management decisions include planning products, processes and factors. Areas of involvment are
- production process
- production technology
- Factory layout
- Allocating resources
- Long range planning and facility locations.
II. Operating decisions involves planning production to meet demand. Areas of concern are :
- Production planning systems
- Independent demand inventory systems
- Resource requirements plannning systems
- Shop floor planning & control
- Materials management
-
III. Control decisions for planning and controlling operations.
Attention should be paid on
- Productivity of employees
- Total quality control
- Project quality control
- Maintenance management and reliability
Role of managers calls for looking into the activities in conversion process. these activities are planning, organising, planning staff and other inputs and direct & control planned activities. at each level, operations managers are expected to take decisions and implment them too.
The decisions made by operations mangers about the activities of production systems tend to tall into three general categories viz;
- strategic decisions relating to products, processes and manufacturing facilities. these decisions are major ones, having srategic importance and long term specificance for the organisation.
- Operating decisions relating to planning production to meet demand. These decisions are necessary in order to ensure that , the ongoing production of goods and services meet the market demand and provides resonable profits for the organisation.
- Control decisions relating to planning and controlling operations. These decisions concern the day to day activities of workers, quality of products and services, production and overhead cost and mainteannce of machines.
- production process
- production technology
- Factory layout
- Allocating resources
- Long range planning and facility locations.
II. Operating decisions involves planning production to meet demand. Areas of concern are :
- Production planning systems
- Independent demand inventory systems
- Resource requirements plannning systems
- Shop floor planning & control
- Materials management
-
III. Control decisions for planning and controlling operations.
Attention should be paid on
- Productivity of employees
- Total quality control
- Project quality control
- Maintenance management and reliability
Role of managers calls for looking into the activities in conversion process. these activities are planning, organising, planning staff and other inputs and direct & control planned activities. at each level, operations managers are expected to take decisions and implment them too.
The decisions made by operations mangers about the activities of production systems tend to tall into three general categories viz;
- strategic decisions relating to products, processes and manufacturing facilities. these decisions are major ones, having srategic importance and long term specificance for the organisation.
- Operating decisions relating to planning production to meet demand. These decisions are necessary in order to ensure that , the ongoing production of goods and services meet the market demand and provides resonable profits for the organisation.
- Control decisions relating to planning and controlling operations. These decisions concern the day to day activities of workers, quality of products and services, production and overhead cost and mainteannce of machines.
Thursday, May 1, 2008
MS4 test papers
MANAGEMENT PROGRAMME
December, 20061. (a) “Accounting is closely connected with control.” Elaborate this statement and discuss the role of accounting feedback in the process of control.
(b) "The cost concept of accounting meets all the three basic criteria of relevance, objectivity and feasibility.” Explain.
2. From the following balances as on 3l December 2004, prepare the Trading and Profit and Loss Account for the year ended 3l’ December 2004 and the Balance Sheet as on that date after making the necessary adjustments:
Mr. Gupta’s Capital A/C 1,65,000
Stock St January. 2004 70,200
Sales 4,34,400
Purchases 3,64,650
Carnage Inwards 27,900
Rent and Taxes 8,550
Sales Returns 12,900
Salaries 13950
Purchases Return 8,700
Sundry Debtors 36.000
Sundry Creditors 22.200
6% Bank Loan (1-1-2004) 30,000
Interest Paid on Bank Loan 1,350
Printing and Advertising 21,900
Drawings A/c 15,000
Interest Received from A.N. Sen 400
Cash at Bank 12,000
Discount received 6,300
Investments 7,500
Furniture and fittings 2,700
Discount paid 11,310
General Expenses 6,000
Audit fees 1,050
Insurance 900
Travelling Expenses 3,500
Postage and Telegrams 4,070
Cash in hand 570
9% deposit with A.N. Sen (on 1-1-2004) 45,000
Adjustments:
(a) Stock as on 3l December 2004 was Rs. 1,20,000.
(b) Sundry debtors included a sum of Rs. 3.000 from Mr. Gupta and Sundry creditors included a sum of Rs, 4,000 due to Mr. Gupta.
(c) 25% of the Printing and Advertising Is to be carried forward to the next year.
(d) Provide 5% for bad debts and 2% on the balance for discount for prompt payment.
(e) Write off depreciation at 10% on Furniture and Fittings.
(f) As on 31 December 2004, salaries and carriage inwards that remained unpaid were Rs. 1,200 and Rs. 150 respectively.
(g) Insurance paid in advance as on 31’ December 2004 was Rs. 120.
(h) Purchases to the value of Rs. 1,800 had been omitted to be entered in the books.
(i) Personal purchases of Rs. 700 made by Mr. Gupta had been included in the purchases.
(j) Provide for interest on bank loan and deposit with A.N. Sen.
(k) Furniture purchases for Rs. 1,000 on 1-1-2004 had been debited to Purchases Account.
3. Prepare an estimate of net working capital rcquirment for ABC Ltd. from the following information:
Estimated cost of production per unit
Rs. 170 which includes —
Raw materials Rs. 80/-
Direct labour Rs. 30/-
Overheads (exclusive of depreciation) Rs. 60/-
Selling price Is Rs. 200 per unit.
Level of activity per annum, 1,04,000 units
Raw material in stock : average 4 weeks.
Work in progress (assume 50% completion stage) : average 2 weeks
Finished goods In stock : average 4 weeks
Credit allowed by suppliers : average 4 weeks
Credit allowed to debtors : average 8 weeks
Lag in payment of wages : average 15 weeks
Cash at bank is expected as Rs. 25,000/-
You may assume the production is carried out evenly throughout the year (52 weeks) and wages and overheads accrue similarly.
All sales are on credit basis only.
Add 10% for contingencies.
You may state your assumptions, if any.
4. What do you understand by composite cost of capital ? How is it calculated ? What is its role In determining the optimal debt-equity mix? Explain fully.
5. What advice would you give to a company in the following situations? Give reasons also.
(a) Company prepares a cash budget taking into account the operating cash flows only.
(b) Company is following an erratic dividend policy.
(c) Company’s current ratio Is very high, but the quick
ratio is very low.
(d) Company wants to choose suitable channels for investment of Its Idle cash.
6. A foreign soft drink company Is planning to estabLish a subsidiary company In India to produce mineral water. Based on the estimated annual sales of 40,000 bottles of mineral water, cost studies show the following estimates for the Indian subsidiary:
Total Annual Costs (Rs.) Percentage of Total Annual Cost which is variable
Material 2,10,000 100%
Labour 1,50,000 80%
Factory overheads 92,000 60%
Administrative expenses 40,000 35%
The Indian production will be sold by the manufacturer’s representatives who will recewe a commission of 8% of the sale price.
You are required to
(i) Compute the sale price per bottle to enable the management to realise an estimated 10% profit on sale proceeds in India.
(ii) Calculate the break-even point in Rupee Sales as also in number of bottles for the Indian subsidiary on the assumption that the sale price is Rs. 14 per bottle.
7. What do you understand by Zero Base Budgeting ? Discuss the steps that are involved In Zero Base Budgeting and describe its advantages.
8. Write short notes on arty four of the following:
(a) Rolling Budget
(b) Shut Down and Sunk Costs
(c) Direct Material Usage (or Quantity) Variance
(d) Funds from Business Operations
(e) Continuity Concept
December, 2005
1. (a) "Accounting is a service function." Explain. What are the two facets to the role of an accountant ? Discuss.
(b) Asset like land is shown at its original cost in the balance sheet of a company. Justify this accounting practice by explaining the relevant accounting concepts on which it is based.
2. "The EBIT - EPS analysis is an important tool in the hands of the finance manager." Explain this analysis with the help of an example and discuss the purpose served by it.
3. From the following particulars prepare Trading and Profit and Loss account of Mr. R for the year ended 31-3-2001 and a balance sheet as on the same date :
Dr.
Rs. Cr.
Rs.
Buidings a/c 5,00,000
Machinery a/c 2,00,000
Furniture a/c 1,00,000
Cash at Bank 90,000
Cash on hand 10,000
18% p.a. loan obtained by
Mr. R on 1-6-2000 on
mortgage of building 3,00,00
R's Capital 5,20,000
Sundry Debtors/Sundry Creditors 5,00,000 4,00,000
Stock on 1-4-2000 1,20,000
Puchases/Sales 25,00,000 32,20,000
Sales Return/Purchases Return 1,20,000 1,00,000
Rent 60,000
Establishment Expenses 1,80,000
Eleciricity charges 15,000
Telephone charges 10,000
Commission on Sales 30,000
Insurance Premium 10,000
Bad Debts 20,000
Bills Receivable 75,000
45,45,000 45,45,000
You are required to provide for depreciation on buildings @ 5% p.a., on machinery @ 25% p.a., and on furniture @ 10% p.a.
Provision for bad and doubtful debts is to be made at 5% on sundry debtors.
Mr. R's manager is entitled to a commission of 10% on the net profit after charging his commission.
Closing Stock was not taken on 31-3-2001 but on 7-4-2001. The following transactions took place during the period from 1-4-2001 to 7-4-2001 :
Sales Rs. 2,50,000
Purchase Rs. 1,50,000
Stock on 7th April 2001 was Rs. 1,80,000.
The rate of Gross Profit on Sales was 20%.
Insurance Premium was paid for the year ending 30th June 2001.
Interest on mortgage loan to be provided upto 31-3-2001.
Outstanding electricity charges were Rs. 2,500.
4. (a) What do you understand by Budgetary Control ? What steps are to be taken to install an effective system of budgetary control in an organisation ? Discuss.
(b) What is meant by Performance Budgeting ? Discuss its main objectives.
5. (a) Comment on the following statements :
(a) Higher net profit margin need not necessarily lead to higher rate of return on investment.
(b) A high operating leverage is not always desirable.
(c) A company's profitability is better judged by PBIT rather than PAT.
(d) Cost of debt is always cheaper as compared to other sources of funds.
(e) From the creditors' point of view, the lower the debt ratio, the better it is.
6. The balance sheet of Best Manufacturers Ltd. as on 31st March 2004 and 2005 are as follows.
Liabilities 31-3-04
Rs. 31-3-05
Rs.
Share Capital 2,50,000 2,50,000
5% Debentures 1,00,000 80,000
Sundry Creditors 1,15,000 1,08,000
Profit & Loss A/c 20,000 27,000
Depreciation Fund 40,000 44,000
Reserve for
Contingencies 70,000 55,000
Outstanding Expenses 15,000 24,000
6,10,000 5,88,000
Assets 31-3-04
Rs. 31-3-05
Rs.
Land & Building 1,50,000 1,50,000
Machinery 82,000 90,000
Stock in trade 1,00,000 1,14.000
Sundry Debtors 85,000 81,000
Cash & Bank Balances 60,000 55,000
Temporary investments 1,31,000 95,000
Prepaid expenses 2,000 3,000
6,10,000 5,88,000
Following additional information is also available :
(a) A new machinery was purchased for Rs. 30,000 but old machinery costing Rs. 15,000 was sold for Rs. 5,000, accumulated depreciation was Rs.8,000.
(b) Rs. 20,000, 5% Debentures were redeemed by purchase from open market @ Rs. 96.
(c) Rs. 36,000 investment were sold at booK value.
(d) 12% dividend was paid in cash.
(e) Rs. 15,000 was debited to Contingency Reserve for settlement of previous tax liability.
You are required to prepare a Schedule of Changes in Working Capital and a Statement showing the Sources and Application of Funds.
7. A toy manufacturer earns an average net profit of Rs. 3 per piece wiih a selling price ol Rs. 25 by producing and selling 60,000 pieces at 60% of the potential capacity. Composition of his cost is as follows :
Direct material Rs.4
Direct wages Re.1
Works overhead Rs.6 (50% fixed)
Sales overhead Re. 1 (25% varying)
During the current year he intends to produce the same number but anticipates that -
(a) his fixed charges will go up by 10%
(b) rates of direct labour will increase by 20%
(c) rates of direct material will increase by 5%
(d) selling price cannot be increased.
Under these circumstances he obtains an order for a further 20% of his capacity. What minimum price will you recommend for accepting the order to ensure that the manufacturer gets an overall profit of Rs. 1,80,500 ?
8. Write explanatory notes on :
(a) Absorption Costing
(b) Break-even Point
(c) Methods of Depreciation
(d) Net Present Value Method
December, 2005
Note : Attempt any five questions. All questions carry equal marks.
1. (a) "Accounting is a service function." Explain. What are the two facets to the role of an accountant ? Discuss.
(b) Asset like land is shown at its original cost in the balance sheet of a company. Justify this accounting practice by explaining the relevant accounting concepts on which it is based.
2. "The EBIT - EPS analysis is an important tool in the hands of the finance manager." Explain this analysis with the help of an example and discuss the purpose served by it.
3. From the following particulars prepare Trading and Profit and Loss account of Mr. R for the year ended 31-3-2001 and a balance sheet as on the same date :
Dr.
Rs. Cr.
Rs.
Buidings a/c 5,00,000
Machinery a/c 2,00,000
Furniture a/c 1,00,000
Cash at Bank 90,000
Cash on hand 10,000
18% p.a. loan obtained by
Mr. R on 1-6-2000 on
mortgage of building 3,00,00
R's Capital 5,20,000
Sundry Debtors/Sundry Creditors 5,00,000 4,00,000
Stock on 1-4-2000 1,20,000
Puchases/Sales 25,00,000 32,20,000
Sales Return/Purchases Return 1,20,000 1,00,000
Rent 60,000
Establishment Expenses 1,80,000
Eleciricity charges 15,000
Telephone charges 10,000
Commission on Sales 30,000
Insurance Premium 10,000
Bad Debts 20,000
Bills Receivable 75,000
45,45,000 45,45,000
You are required to provide for depreciation on buildings @ 5% p.a., on machinery @ 25% p.a., and on furniture @ 10% p.a.
Provision for bad and doubtful debts is to be made at 5% on sundry debtors.
Mr. R's manager is entitled to a commission of 10% on the net profit after charging his commission.
Closing Stock was not taken on 31-3-2001 but on 7-4-2001. The following transactions took place during the period from 1-4-2001 to 7-4-2001 :
Sales Rs. 2,50,000
Purchase Rs. 1,50,000
Stock on 7th April 2001 was Rs. 1,80,000.
The rate of Gross Profit on Sales was 20%.
Insurance Premium was paid for the year ending 30th June 2001.
Interest on mortgage loan to be provided upto 31-3-2001.
Outstanding electricity charges were Rs. 2,500.
4. (a) What do you understand by Budgetary Control ? What steps are to be taken to install an effective system of budgetary control in an organisation ? Discuss.
(b) What is meant by Performance Budgeting ? Discuss its main objectives.
5. (a) Comment on the following statements :
(a) Higher net profit margin need not necessarily lead to higher rate of return on investment.
(b) A high operating leverage is not always desirable.
(c) A company's profitability is better judged by PBIT rather than PAT.
(d) Cost of debt is always cheaper as compared to other sources of funds.
(e) From the creditors' point of view, the lower the debt ratio, the better it is.
6. The balance sheet of Best Manufacturers Ltd. as on 31st March 2004 and 2005 are as follows.
Liabilities 31-3-04
Rs. 31-3-05
Rs.
Share Capital 2,50,000 2,50,000
5% Debentures 1,00,000 80,000
Sundry Creditors 1,15,000 1,08,000
Profit & Loss A/c 20,000 27,000
Depreciation Fund 40,000 44,000
Reserve for
Contingencies 70,000 55,000
Outstanding Expenses 15,000 24,000
6,10,000 5,88,000
Assets 31-3-04
Rs. 31-3-05
Rs.
Land & Building 1,50,000 1,50,000
Machinery 82,000 90,000
Stock in trade 1,00,000 1,14.000
Sundry Debtors 85,000 81,000
Cash & Bank Balances 60,000 55,000
Temporary investments 1,31,000 95,000
Prepaid expenses 2,000 3,000
6,10,000 5,88,000
Following additional information is also available :
(a) A new machinery was purchased for Rs. 30,000 but old machinery costing Rs. 15,000 was sold for Rs. 5,000, accumulated depreciation was Rs.8,000.
(b) Rs. 20,000, 5% Debentures were redeemed by purchase from open market @ Rs. 96.
(c) Rs. 36,000 investment were sold at booK value.
(d) 12% dividend was paid in cash.
(e) Rs. 15,000 was debited to Contingency Reserve for settlement of previous tax liability.
You are required to prepare a Schedule of Changes in Working Capital and a Statement showing the Sources and Application of Funds.
7. A toy manufacturer earns an average net profit of Rs. 3 per piece wiih a selling price ol Rs. 25 by producing and selling 60,000 pieces at 60% of the potential capacity. Composition of his cost is as follows :
Direct material Rs.4
Direct wages Re.1
Works overhead Rs.6 (50% fixed)
Sales overhead Re. 1 (25% varying)
During the current year he intends to produce the same number but anticipates that -
(a) his fixed charges will go up by 10%
(b) rates of direct labour will increase by 20%
(c) rates of direct material will increase by 5%
(d) selling price cannot be increased.
Under these circumstances he obtains an order for a further 20% of his capacity. What minimum price will you recommend for accepting the order to ensure that the manufacturer gets an overall profit of Rs. 1,80,500 ?
8. Write explanatory notes on :
(a) Absorption Costing
(b) Break-even Point
(c) Methods of Depreciation
(d) Net Present Value Method
June, 2005
1. (a) Explain the Continuing concept and the Periodicity concept and discuss their significance.
(b) "Accounting is closely connected with control." Elaborate this statement and discuss the role of accounting feedback in the process of control.
2. The following is the Trial Balance of a trader as at 31st December, 2002 :
Debit Balances:
Stock (1-1-2002) 46,800
Sales Return 8,600
Purchases 2,43,100
Freight and Carriage 18,700
Rates, Rent etc. 5,700
Salaries and Wages 9,300
Sundry Debtors 24,000
Bank Interest 900
Printing and Advertisement 14,500
Cash at Bank 8,000
Investments 5,000
Fumiture and Fittings 1,800
Discounts 7,540
General Expenses 3,910
Audit Fees 700
Insurance 600
Travelling Expenses 2,330
Postage and Telegrams 870
Cash in hand 380
Deposit with Pran 30,000
Drawings A/c 10,000
-------------
4,42,730
-------------
Credit Balances:
Capital A/c 46,800
Sales 2,89,600
Purchases Returns 5,800
Sundry Creditors 14,800
Bank Loan at 6% 20,000
Income from Investments 250
Discounts 4,190
-------------
4,42,730
-------------
Adjustments :
(i) Closing stock was valued at Rs. 78,600.
(ii) A quarter of the amount spent under the head 'Printing and Advertising' is to be carried forward to the next year.
(iii) Reserve 2%, for discount on Debtors and create a Bad Debts Reserve at 5%.
(iv) Deprecialion @ 10% p.a is to be provided on Furniture and Fittings.
(v) Wages due on 31st December 2002 Rs. 300, and Salary owing Rs. 500.
(vi) Prepaid insurance Rs. 80.
(vii) Furniture which stood at Rs. 600 in the books on 1st January 2002 was disposed of for Rs. 290 on 30th June, in part exchange for new furniture costing Rs. 520. A net invoice of Rs. 230 was passed through the Purchases Day Book.
(viii) A neon-sign costing Rs. 100 is included in advertising.
(ix) Private purchase amounting to Rs. 600 has been included in the Purchases Day Book.
(x) Charge full year's interest on deposit with Plan at 7% p.a.
(xi) Provide for interest on Bank loan for the amount due.
(xii) Purchase invoice amounting to Rs. 400 had been omitted from the books.
With the help of the above information prepare Profit and Loss Account and Balance Sheet of the trader.
3. A factory, engaged in manufacturing plastic buckets is working at 40% capacity and produces 10,000 buckets per month. The present cost break-up for one bucket is as under :
Materials - Rs. 20
Labour - Rs. 6
Overheads - Rs. 10 (60% fixed)
The Selling price is Rs. 40 per bucket.
If it is decided to work the factory at 50% capacity, the selling price falls by 3%. At 90% capacity, the selling price falls by 5% accompanied by a similar fall in the price of materials.
You are required to prepare a statement showing the profits at 50% and 90% capacities- Also determine the break-even points at each of these Production levels. materials.
4. "lf debt is a cheaper source of finance, then why is every firm not a 99% debt firm ?" Comment on this statement. What other factors are taken into consideration while determining the capital structure of a company ? Explain.
5. (a) ABC Ltd., a profit earning company with accumulated reserves, in tends to expand its capacity by financing it partly by the issue of new equity capital. It has paid dividends regularly during the pastyears. During 2004 it has suffered loss due to prolonged industrial unrest. The directors of the company differ on the question of distribution of dividend for the year 2004. Some of them want to skip dividend in view of the loss sustained by the company and also its expansion programme.
As financial adviser, what advice would you give to the Board of Directors ? Give reasons for your answer.
(b) Explain the concept of Operating Leverage. What is its practical utility ? Discuss.
(6) Distinguish between :
(a) Absorption Costing and Marginal Costing
(b) Net Profit Margin and Return on Capital Employed
(c) Direct Labour Rate Variance and Direct Labour Efficiency Variance
(d) Operating Cash Flows and Financial Cash Flows
(e) Earnings yield and Dividend yield
7. Discuss the characteristics and relative merits and demerits of the different methods of appraising capital investment proposals. Which method would you prefer ard why ?
8. The Balance Sheets of H Ltd. as on December 31, 2002 and 2003 are given below :
Balance Sheets of H Ltd.
Liabilities 31.12.2002 31.12.2003
Share Capital 6,00,000 8,00,000
Capital Reserve 20,000
General Reserve 3,40,000 4,00,000
Profit & Losss A/c 1,20,000 1,50,000
Debentures 4,00,000 2,80,000
Current Liabilities 2,40,000 2,60,000
Proposed Dividend 60,000 72,000
Provision for Tax 1,80,000 1,70,000
Unpaid Dividends 8,000
19,40,000
21,60,000
Assets 31.12.2002 31.12.2003
Fixed Assets 16,00,000 19,00,000
Less Depreciation 4,60,000 5,80,000
11,40,000 13,20,000
Investment 2,00,000 1,60,000
Current Assets 5,60,000 6,60,000
Preliminary Expenses 40,000 20,000
19,40,000 21,60,000
Additional Information :
During the year 2003 the Company
(i) Sold one machinery for Rs. 50,000, the cost of which was Rs. 1,00,000 and the depreciation provided on it was Rs. 40,000.
(ii) Provided Rs. 1,80,000 as depreciation.
(iii) Sold some investment at a profit of Rs. 20,000 which was credited to Capital Reserve.
(iv) Redeemed 30% of the Debentures @ Rs. 105.
(v) Decided to value stock at cost, whereas previously the practice was to value stock at cost less 10%. The stock according to books on 31.12.2002 was Rs. 1,08,000. The stock on 31.12.2003 was correctly valued at Rs. 1,50,000.
(vi) Decided to write off fixed assets costing Rs. 28,000 on which depreciation amounting to Rs. 20,000 has been provided.
Prepare the Funds Flow Statement for the year 2003.
June - 1999
Section A
1. 'Accounting is the oldest financial information system'. Discuss. Also bring out the role and functions of accountant in modern business.
2. What is a Budget? Explain the meaning, objectives and the process of performance budgeting. Distinguish between performance budgeting and traditional budgeting.
3. (a) "In managing cash the finance manger faces the problem of compromising the conflicting goals of liquidating and profitability." Comment
(b) List out the important factors which influence the requirement of working capital of a manufacturing firm.
4. The Modern Furniture Ltd. manufactures office chairs. It follows standard costing system. The direct material cost standards for its ‘Executive’ brand are established as follows:
Production schedule for the month of December’97: 5,000 chairs (Executive)
Direct material cost per chair:
Material A 10 kgs @ Rs. 30 per kg: Rs. 300
Material B 5 kgs @ Rs. 50 per kg: Rs. 250
Production records for the month of December’97 showed as follows:
Executive chairs manufactured: 6,000
Direct material used:
Material A: 60,000 kgs
Material B: 32,000 kgs
There was no closing stock in the month of November’97. You are required to
(a) Calculate direct material cost variances.
(b) Write a brief report indicating the extent and of total Direct material cost variance.
5. Distinguish between any three of the following
(a) Payback method and Net present value
(b) LIFO and FIFO
(c) Gross working capital and Net working capital
(d) Direct cost and Indirect cost
(e) Profit and Loss A/c and Balance Sheet
Section B
6. Read the following case carefully and answer the questions given a the end of the case.
Singh & Co is a small bottling company, founded by Jaswant Singh at the turn of the century. It was founded at the site of a mineral spring 40 miles from Shimla and distributes bottled water through Himachal Pradesh and Uttar Pradesh. Its cash sales have stabilized at Rs. 90 lakhs compared to cash expenses of Rs. 50 lakhs on its bottled-water operations.
There is considerable excitement in the office of Vijay Singh, the president and grandson of the founder. The company has been offered a 5-year lease on a well-known mineral spring near Palamput. The water from this spring has certain medicinal properties that make it valuable to physicians nationwide. Mr. Viswanathan, the company’s financial manager has just worked up figures on the possibility of taking over the lease.
Viswanathan estimates that an operation at the new mineral spring would increase the firm’s sales from Rs. 90 to Rs. 150 lakhs each year over the 5-year period. He also estimates an increase in cash expenses from Rs. 50 to Rs. 90 lakhs.
Viswanathan’s plan is to move the water by tank truck from the spring to the company’s main facilities for bottling. The problem is capacity. At the present level of sales, the firm cannot handle the additional bottling needs of the new spring. A check with a machinery foundry indicates that it will cost approximately Rs. 65 lakhs to purchase, transport and install new bottling machinery capable of handling the new spring. This machinery will replace the existing machinery and will have a 25 year service life. It will be depreciated at 20/32/24/16/8 percentages over a 5-year period.
The company’s existing machinery has been working fairly well. It is carried on the books at a Rs. 10 lakhs value, although it could be sold for only Rs. 5,00,000. The company is using staring line method of depreciation on this machine. It is expected to have zero salvage value at the end of 5 years.
Viswanathan has mentioned that the new operation would tie up an additional Rs. 3,00,000 in inventories and Rs. 4,00,000 in receivables during the life of the project. The firm has the funds to finance these amounts.
Viswanathan thinks the firm should seriously consider the new project and Vijay singh is also favorably inclined. But as Viswanathan left the office, Vijay Singh heard to call out, “I want to know our rate of return on the project first. If we’re not making our normal 12 percent after taxes, forget it,” The firm’s tax rate is 40 percent.
Questions:
1. What is the rate of return on this project?
2. What is the net present value at 12 percent?
Note:
Year – PV Factor
1 – 0.893
2 – 0.797
3 – 0.712
4 – 0.636
5 – 0.567
December, 20061. (a) “Accounting is closely connected with control.” Elaborate this statement and discuss the role of accounting feedback in the process of control.
(b) "The cost concept of accounting meets all the three basic criteria of relevance, objectivity and feasibility.” Explain.
2. From the following balances as on 3l December 2004, prepare the Trading and Profit and Loss Account for the year ended 3l’ December 2004 and the Balance Sheet as on that date after making the necessary adjustments:
Mr. Gupta’s Capital A/C 1,65,000
Stock St January. 2004 70,200
Sales 4,34,400
Purchases 3,64,650
Carnage Inwards 27,900
Rent and Taxes 8,550
Sales Returns 12,900
Salaries 13950
Purchases Return 8,700
Sundry Debtors 36.000
Sundry Creditors 22.200
6% Bank Loan (1-1-2004) 30,000
Interest Paid on Bank Loan 1,350
Printing and Advertising 21,900
Drawings A/c 15,000
Interest Received from A.N. Sen 400
Cash at Bank 12,000
Discount received 6,300
Investments 7,500
Furniture and fittings 2,700
Discount paid 11,310
General Expenses 6,000
Audit fees 1,050
Insurance 900
Travelling Expenses 3,500
Postage and Telegrams 4,070
Cash in hand 570
9% deposit with A.N. Sen (on 1-1-2004) 45,000
Adjustments:
(a) Stock as on 3l December 2004 was Rs. 1,20,000.
(b) Sundry debtors included a sum of Rs. 3.000 from Mr. Gupta and Sundry creditors included a sum of Rs, 4,000 due to Mr. Gupta.
(c) 25% of the Printing and Advertising Is to be carried forward to the next year.
(d) Provide 5% for bad debts and 2% on the balance for discount for prompt payment.
(e) Write off depreciation at 10% on Furniture and Fittings.
(f) As on 31 December 2004, salaries and carriage inwards that remained unpaid were Rs. 1,200 and Rs. 150 respectively.
(g) Insurance paid in advance as on 31’ December 2004 was Rs. 120.
(h) Purchases to the value of Rs. 1,800 had been omitted to be entered in the books.
(i) Personal purchases of Rs. 700 made by Mr. Gupta had been included in the purchases.
(j) Provide for interest on bank loan and deposit with A.N. Sen.
(k) Furniture purchases for Rs. 1,000 on 1-1-2004 had been debited to Purchases Account.
3. Prepare an estimate of net working capital rcquirment for ABC Ltd. from the following information:
Estimated cost of production per unit
Rs. 170 which includes —
Raw materials Rs. 80/-
Direct labour Rs. 30/-
Overheads (exclusive of depreciation) Rs. 60/-
Selling price Is Rs. 200 per unit.
Level of activity per annum, 1,04,000 units
Raw material in stock : average 4 weeks.
Work in progress (assume 50% completion stage) : average 2 weeks
Finished goods In stock : average 4 weeks
Credit allowed by suppliers : average 4 weeks
Credit allowed to debtors : average 8 weeks
Lag in payment of wages : average 15 weeks
Cash at bank is expected as Rs. 25,000/-
You may assume the production is carried out evenly throughout the year (52 weeks) and wages and overheads accrue similarly.
All sales are on credit basis only.
Add 10% for contingencies.
You may state your assumptions, if any.
4. What do you understand by composite cost of capital ? How is it calculated ? What is its role In determining the optimal debt-equity mix? Explain fully.
5. What advice would you give to a company in the following situations? Give reasons also.
(a) Company prepares a cash budget taking into account the operating cash flows only.
(b) Company is following an erratic dividend policy.
(c) Company’s current ratio Is very high, but the quick
ratio is very low.
(d) Company wants to choose suitable channels for investment of Its Idle cash.
6. A foreign soft drink company Is planning to estabLish a subsidiary company In India to produce mineral water. Based on the estimated annual sales of 40,000 bottles of mineral water, cost studies show the following estimates for the Indian subsidiary:
Total Annual Costs (Rs.) Percentage of Total Annual Cost which is variable
Material 2,10,000 100%
Labour 1,50,000 80%
Factory overheads 92,000 60%
Administrative expenses 40,000 35%
The Indian production will be sold by the manufacturer’s representatives who will recewe a commission of 8% of the sale price.
You are required to
(i) Compute the sale price per bottle to enable the management to realise an estimated 10% profit on sale proceeds in India.
(ii) Calculate the break-even point in Rupee Sales as also in number of bottles for the Indian subsidiary on the assumption that the sale price is Rs. 14 per bottle.
7. What do you understand by Zero Base Budgeting ? Discuss the steps that are involved In Zero Base Budgeting and describe its advantages.
8. Write short notes on arty four of the following:
(a) Rolling Budget
(b) Shut Down and Sunk Costs
(c) Direct Material Usage (or Quantity) Variance
(d) Funds from Business Operations
(e) Continuity Concept
December, 2005
1. (a) "Accounting is a service function." Explain. What are the two facets to the role of an accountant ? Discuss.
(b) Asset like land is shown at its original cost in the balance sheet of a company. Justify this accounting practice by explaining the relevant accounting concepts on which it is based.
2. "The EBIT - EPS analysis is an important tool in the hands of the finance manager." Explain this analysis with the help of an example and discuss the purpose served by it.
3. From the following particulars prepare Trading and Profit and Loss account of Mr. R for the year ended 31-3-2001 and a balance sheet as on the same date :
Dr.
Rs. Cr.
Rs.
Buidings a/c 5,00,000
Machinery a/c 2,00,000
Furniture a/c 1,00,000
Cash at Bank 90,000
Cash on hand 10,000
18% p.a. loan obtained by
Mr. R on 1-6-2000 on
mortgage of building 3,00,00
R's Capital 5,20,000
Sundry Debtors/Sundry Creditors 5,00,000 4,00,000
Stock on 1-4-2000 1,20,000
Puchases/Sales 25,00,000 32,20,000
Sales Return/Purchases Return 1,20,000 1,00,000
Rent 60,000
Establishment Expenses 1,80,000
Eleciricity charges 15,000
Telephone charges 10,000
Commission on Sales 30,000
Insurance Premium 10,000
Bad Debts 20,000
Bills Receivable 75,000
45,45,000 45,45,000
You are required to provide for depreciation on buildings @ 5% p.a., on machinery @ 25% p.a., and on furniture @ 10% p.a.
Provision for bad and doubtful debts is to be made at 5% on sundry debtors.
Mr. R's manager is entitled to a commission of 10% on the net profit after charging his commission.
Closing Stock was not taken on 31-3-2001 but on 7-4-2001. The following transactions took place during the period from 1-4-2001 to 7-4-2001 :
Sales Rs. 2,50,000
Purchase Rs. 1,50,000
Stock on 7th April 2001 was Rs. 1,80,000.
The rate of Gross Profit on Sales was 20%.
Insurance Premium was paid for the year ending 30th June 2001.
Interest on mortgage loan to be provided upto 31-3-2001.
Outstanding electricity charges were Rs. 2,500.
4. (a) What do you understand by Budgetary Control ? What steps are to be taken to install an effective system of budgetary control in an organisation ? Discuss.
(b) What is meant by Performance Budgeting ? Discuss its main objectives.
5. (a) Comment on the following statements :
(a) Higher net profit margin need not necessarily lead to higher rate of return on investment.
(b) A high operating leverage is not always desirable.
(c) A company's profitability is better judged by PBIT rather than PAT.
(d) Cost of debt is always cheaper as compared to other sources of funds.
(e) From the creditors' point of view, the lower the debt ratio, the better it is.
6. The balance sheet of Best Manufacturers Ltd. as on 31st March 2004 and 2005 are as follows.
Liabilities 31-3-04
Rs. 31-3-05
Rs.
Share Capital 2,50,000 2,50,000
5% Debentures 1,00,000 80,000
Sundry Creditors 1,15,000 1,08,000
Profit & Loss A/c 20,000 27,000
Depreciation Fund 40,000 44,000
Reserve for
Contingencies 70,000 55,000
Outstanding Expenses 15,000 24,000
6,10,000 5,88,000
Assets 31-3-04
Rs. 31-3-05
Rs.
Land & Building 1,50,000 1,50,000
Machinery 82,000 90,000
Stock in trade 1,00,000 1,14.000
Sundry Debtors 85,000 81,000
Cash & Bank Balances 60,000 55,000
Temporary investments 1,31,000 95,000
Prepaid expenses 2,000 3,000
6,10,000 5,88,000
Following additional information is also available :
(a) A new machinery was purchased for Rs. 30,000 but old machinery costing Rs. 15,000 was sold for Rs. 5,000, accumulated depreciation was Rs.8,000.
(b) Rs. 20,000, 5% Debentures were redeemed by purchase from open market @ Rs. 96.
(c) Rs. 36,000 investment were sold at booK value.
(d) 12% dividend was paid in cash.
(e) Rs. 15,000 was debited to Contingency Reserve for settlement of previous tax liability.
You are required to prepare a Schedule of Changes in Working Capital and a Statement showing the Sources and Application of Funds.
7. A toy manufacturer earns an average net profit of Rs. 3 per piece wiih a selling price ol Rs. 25 by producing and selling 60,000 pieces at 60% of the potential capacity. Composition of his cost is as follows :
Direct material Rs.4
Direct wages Re.1
Works overhead Rs.6 (50% fixed)
Sales overhead Re. 1 (25% varying)
During the current year he intends to produce the same number but anticipates that -
(a) his fixed charges will go up by 10%
(b) rates of direct labour will increase by 20%
(c) rates of direct material will increase by 5%
(d) selling price cannot be increased.
Under these circumstances he obtains an order for a further 20% of his capacity. What minimum price will you recommend for accepting the order to ensure that the manufacturer gets an overall profit of Rs. 1,80,500 ?
8. Write explanatory notes on :
(a) Absorption Costing
(b) Break-even Point
(c) Methods of Depreciation
(d) Net Present Value Method
December, 2005
Note : Attempt any five questions. All questions carry equal marks.
1. (a) "Accounting is a service function." Explain. What are the two facets to the role of an accountant ? Discuss.
(b) Asset like land is shown at its original cost in the balance sheet of a company. Justify this accounting practice by explaining the relevant accounting concepts on which it is based.
2. "The EBIT - EPS analysis is an important tool in the hands of the finance manager." Explain this analysis with the help of an example and discuss the purpose served by it.
3. From the following particulars prepare Trading and Profit and Loss account of Mr. R for the year ended 31-3-2001 and a balance sheet as on the same date :
Dr.
Rs. Cr.
Rs.
Buidings a/c 5,00,000
Machinery a/c 2,00,000
Furniture a/c 1,00,000
Cash at Bank 90,000
Cash on hand 10,000
18% p.a. loan obtained by
Mr. R on 1-6-2000 on
mortgage of building 3,00,00
R's Capital 5,20,000
Sundry Debtors/Sundry Creditors 5,00,000 4,00,000
Stock on 1-4-2000 1,20,000
Puchases/Sales 25,00,000 32,20,000
Sales Return/Purchases Return 1,20,000 1,00,000
Rent 60,000
Establishment Expenses 1,80,000
Eleciricity charges 15,000
Telephone charges 10,000
Commission on Sales 30,000
Insurance Premium 10,000
Bad Debts 20,000
Bills Receivable 75,000
45,45,000 45,45,000
You are required to provide for depreciation on buildings @ 5% p.a., on machinery @ 25% p.a., and on furniture @ 10% p.a.
Provision for bad and doubtful debts is to be made at 5% on sundry debtors.
Mr. R's manager is entitled to a commission of 10% on the net profit after charging his commission.
Closing Stock was not taken on 31-3-2001 but on 7-4-2001. The following transactions took place during the period from 1-4-2001 to 7-4-2001 :
Sales Rs. 2,50,000
Purchase Rs. 1,50,000
Stock on 7th April 2001 was Rs. 1,80,000.
The rate of Gross Profit on Sales was 20%.
Insurance Premium was paid for the year ending 30th June 2001.
Interest on mortgage loan to be provided upto 31-3-2001.
Outstanding electricity charges were Rs. 2,500.
4. (a) What do you understand by Budgetary Control ? What steps are to be taken to install an effective system of budgetary control in an organisation ? Discuss.
(b) What is meant by Performance Budgeting ? Discuss its main objectives.
5. (a) Comment on the following statements :
(a) Higher net profit margin need not necessarily lead to higher rate of return on investment.
(b) A high operating leverage is not always desirable.
(c) A company's profitability is better judged by PBIT rather than PAT.
(d) Cost of debt is always cheaper as compared to other sources of funds.
(e) From the creditors' point of view, the lower the debt ratio, the better it is.
6. The balance sheet of Best Manufacturers Ltd. as on 31st March 2004 and 2005 are as follows.
Liabilities 31-3-04
Rs. 31-3-05
Rs.
Share Capital 2,50,000 2,50,000
5% Debentures 1,00,000 80,000
Sundry Creditors 1,15,000 1,08,000
Profit & Loss A/c 20,000 27,000
Depreciation Fund 40,000 44,000
Reserve for
Contingencies 70,000 55,000
Outstanding Expenses 15,000 24,000
6,10,000 5,88,000
Assets 31-3-04
Rs. 31-3-05
Rs.
Land & Building 1,50,000 1,50,000
Machinery 82,000 90,000
Stock in trade 1,00,000 1,14.000
Sundry Debtors 85,000 81,000
Cash & Bank Balances 60,000 55,000
Temporary investments 1,31,000 95,000
Prepaid expenses 2,000 3,000
6,10,000 5,88,000
Following additional information is also available :
(a) A new machinery was purchased for Rs. 30,000 but old machinery costing Rs. 15,000 was sold for Rs. 5,000, accumulated depreciation was Rs.8,000.
(b) Rs. 20,000, 5% Debentures were redeemed by purchase from open market @ Rs. 96.
(c) Rs. 36,000 investment were sold at booK value.
(d) 12% dividend was paid in cash.
(e) Rs. 15,000 was debited to Contingency Reserve for settlement of previous tax liability.
You are required to prepare a Schedule of Changes in Working Capital and a Statement showing the Sources and Application of Funds.
7. A toy manufacturer earns an average net profit of Rs. 3 per piece wiih a selling price ol Rs. 25 by producing and selling 60,000 pieces at 60% of the potential capacity. Composition of his cost is as follows :
Direct material Rs.4
Direct wages Re.1
Works overhead Rs.6 (50% fixed)
Sales overhead Re. 1 (25% varying)
During the current year he intends to produce the same number but anticipates that -
(a) his fixed charges will go up by 10%
(b) rates of direct labour will increase by 20%
(c) rates of direct material will increase by 5%
(d) selling price cannot be increased.
Under these circumstances he obtains an order for a further 20% of his capacity. What minimum price will you recommend for accepting the order to ensure that the manufacturer gets an overall profit of Rs. 1,80,500 ?
8. Write explanatory notes on :
(a) Absorption Costing
(b) Break-even Point
(c) Methods of Depreciation
(d) Net Present Value Method
June, 2005
1. (a) Explain the Continuing concept and the Periodicity concept and discuss their significance.
(b) "Accounting is closely connected with control." Elaborate this statement and discuss the role of accounting feedback in the process of control.
2. The following is the Trial Balance of a trader as at 31st December, 2002 :
Debit Balances:
Stock (1-1-2002) 46,800
Sales Return 8,600
Purchases 2,43,100
Freight and Carriage 18,700
Rates, Rent etc. 5,700
Salaries and Wages 9,300
Sundry Debtors 24,000
Bank Interest 900
Printing and Advertisement 14,500
Cash at Bank 8,000
Investments 5,000
Fumiture and Fittings 1,800
Discounts 7,540
General Expenses 3,910
Audit Fees 700
Insurance 600
Travelling Expenses 2,330
Postage and Telegrams 870
Cash in hand 380
Deposit with Pran 30,000
Drawings A/c 10,000
-------------
4,42,730
-------------
Credit Balances:
Capital A/c 46,800
Sales 2,89,600
Purchases Returns 5,800
Sundry Creditors 14,800
Bank Loan at 6% 20,000
Income from Investments 250
Discounts 4,190
-------------
4,42,730
-------------
Adjustments :
(i) Closing stock was valued at Rs. 78,600.
(ii) A quarter of the amount spent under the head 'Printing and Advertising' is to be carried forward to the next year.
(iii) Reserve 2%, for discount on Debtors and create a Bad Debts Reserve at 5%.
(iv) Deprecialion @ 10% p.a is to be provided on Furniture and Fittings.
(v) Wages due on 31st December 2002 Rs. 300, and Salary owing Rs. 500.
(vi) Prepaid insurance Rs. 80.
(vii) Furniture which stood at Rs. 600 in the books on 1st January 2002 was disposed of for Rs. 290 on 30th June, in part exchange for new furniture costing Rs. 520. A net invoice of Rs. 230 was passed through the Purchases Day Book.
(viii) A neon-sign costing Rs. 100 is included in advertising.
(ix) Private purchase amounting to Rs. 600 has been included in the Purchases Day Book.
(x) Charge full year's interest on deposit with Plan at 7% p.a.
(xi) Provide for interest on Bank loan for the amount due.
(xii) Purchase invoice amounting to Rs. 400 had been omitted from the books.
With the help of the above information prepare Profit and Loss Account and Balance Sheet of the trader.
3. A factory, engaged in manufacturing plastic buckets is working at 40% capacity and produces 10,000 buckets per month. The present cost break-up for one bucket is as under :
Materials - Rs. 20
Labour - Rs. 6
Overheads - Rs. 10 (60% fixed)
The Selling price is Rs. 40 per bucket.
If it is decided to work the factory at 50% capacity, the selling price falls by 3%. At 90% capacity, the selling price falls by 5% accompanied by a similar fall in the price of materials.
You are required to prepare a statement showing the profits at 50% and 90% capacities- Also determine the break-even points at each of these Production levels. materials.
4. "lf debt is a cheaper source of finance, then why is every firm not a 99% debt firm ?" Comment on this statement. What other factors are taken into consideration while determining the capital structure of a company ? Explain.
5. (a) ABC Ltd., a profit earning company with accumulated reserves, in tends to expand its capacity by financing it partly by the issue of new equity capital. It has paid dividends regularly during the pastyears. During 2004 it has suffered loss due to prolonged industrial unrest. The directors of the company differ on the question of distribution of dividend for the year 2004. Some of them want to skip dividend in view of the loss sustained by the company and also its expansion programme.
As financial adviser, what advice would you give to the Board of Directors ? Give reasons for your answer.
(b) Explain the concept of Operating Leverage. What is its practical utility ? Discuss.
(6) Distinguish between :
(a) Absorption Costing and Marginal Costing
(b) Net Profit Margin and Return on Capital Employed
(c) Direct Labour Rate Variance and Direct Labour Efficiency Variance
(d) Operating Cash Flows and Financial Cash Flows
(e) Earnings yield and Dividend yield
7. Discuss the characteristics and relative merits and demerits of the different methods of appraising capital investment proposals. Which method would you prefer ard why ?
8. The Balance Sheets of H Ltd. as on December 31, 2002 and 2003 are given below :
Balance Sheets of H Ltd.
Liabilities 31.12.2002 31.12.2003
Share Capital 6,00,000 8,00,000
Capital Reserve 20,000
General Reserve 3,40,000 4,00,000
Profit & Losss A/c 1,20,000 1,50,000
Debentures 4,00,000 2,80,000
Current Liabilities 2,40,000 2,60,000
Proposed Dividend 60,000 72,000
Provision for Tax 1,80,000 1,70,000
Unpaid Dividends 8,000
19,40,000
21,60,000
Assets 31.12.2002 31.12.2003
Fixed Assets 16,00,000 19,00,000
Less Depreciation 4,60,000 5,80,000
11,40,000 13,20,000
Investment 2,00,000 1,60,000
Current Assets 5,60,000 6,60,000
Preliminary Expenses 40,000 20,000
19,40,000 21,60,000
Additional Information :
During the year 2003 the Company
(i) Sold one machinery for Rs. 50,000, the cost of which was Rs. 1,00,000 and the depreciation provided on it was Rs. 40,000.
(ii) Provided Rs. 1,80,000 as depreciation.
(iii) Sold some investment at a profit of Rs. 20,000 which was credited to Capital Reserve.
(iv) Redeemed 30% of the Debentures @ Rs. 105.
(v) Decided to value stock at cost, whereas previously the practice was to value stock at cost less 10%. The stock according to books on 31.12.2002 was Rs. 1,08,000. The stock on 31.12.2003 was correctly valued at Rs. 1,50,000.
(vi) Decided to write off fixed assets costing Rs. 28,000 on which depreciation amounting to Rs. 20,000 has been provided.
Prepare the Funds Flow Statement for the year 2003.
June - 1999
Section A
1. 'Accounting is the oldest financial information system'. Discuss. Also bring out the role and functions of accountant in modern business.
2. What is a Budget? Explain the meaning, objectives and the process of performance budgeting. Distinguish between performance budgeting and traditional budgeting.
3. (a) "In managing cash the finance manger faces the problem of compromising the conflicting goals of liquidating and profitability." Comment
(b) List out the important factors which influence the requirement of working capital of a manufacturing firm.
4. The Modern Furniture Ltd. manufactures office chairs. It follows standard costing system. The direct material cost standards for its ‘Executive’ brand are established as follows:
Production schedule for the month of December’97: 5,000 chairs (Executive)
Direct material cost per chair:
Material A 10 kgs @ Rs. 30 per kg: Rs. 300
Material B 5 kgs @ Rs. 50 per kg: Rs. 250
Production records for the month of December’97 showed as follows:
Executive chairs manufactured: 6,000
Direct material used:
Material A: 60,000 kgs
Material B: 32,000 kgs
There was no closing stock in the month of November’97. You are required to
(a) Calculate direct material cost variances.
(b) Write a brief report indicating the extent and of total Direct material cost variance.
5. Distinguish between any three of the following
(a) Payback method and Net present value
(b) LIFO and FIFO
(c) Gross working capital and Net working capital
(d) Direct cost and Indirect cost
(e) Profit and Loss A/c and Balance Sheet
Section B
6. Read the following case carefully and answer the questions given a the end of the case.
Singh & Co is a small bottling company, founded by Jaswant Singh at the turn of the century. It was founded at the site of a mineral spring 40 miles from Shimla and distributes bottled water through Himachal Pradesh and Uttar Pradesh. Its cash sales have stabilized at Rs. 90 lakhs compared to cash expenses of Rs. 50 lakhs on its bottled-water operations.
There is considerable excitement in the office of Vijay Singh, the president and grandson of the founder. The company has been offered a 5-year lease on a well-known mineral spring near Palamput. The water from this spring has certain medicinal properties that make it valuable to physicians nationwide. Mr. Viswanathan, the company’s financial manager has just worked up figures on the possibility of taking over the lease.
Viswanathan estimates that an operation at the new mineral spring would increase the firm’s sales from Rs. 90 to Rs. 150 lakhs each year over the 5-year period. He also estimates an increase in cash expenses from Rs. 50 to Rs. 90 lakhs.
Viswanathan’s plan is to move the water by tank truck from the spring to the company’s main facilities for bottling. The problem is capacity. At the present level of sales, the firm cannot handle the additional bottling needs of the new spring. A check with a machinery foundry indicates that it will cost approximately Rs. 65 lakhs to purchase, transport and install new bottling machinery capable of handling the new spring. This machinery will replace the existing machinery and will have a 25 year service life. It will be depreciated at 20/32/24/16/8 percentages over a 5-year period.
The company’s existing machinery has been working fairly well. It is carried on the books at a Rs. 10 lakhs value, although it could be sold for only Rs. 5,00,000. The company is using staring line method of depreciation on this machine. It is expected to have zero salvage value at the end of 5 years.
Viswanathan has mentioned that the new operation would tie up an additional Rs. 3,00,000 in inventories and Rs. 4,00,000 in receivables during the life of the project. The firm has the funds to finance these amounts.
Viswanathan thinks the firm should seriously consider the new project and Vijay singh is also favorably inclined. But as Viswanathan left the office, Vijay Singh heard to call out, “I want to know our rate of return on the project first. If we’re not making our normal 12 percent after taxes, forget it,” The firm’s tax rate is 40 percent.
Questions:
1. What is the rate of return on this project?
2. What is the net present value at 12 percent?
Note:
Year – PV Factor
1 – 0.893
2 – 0.797
3 – 0.712
4 – 0.636
5 – 0.567
MS3 test papers
December, 2005
MS3 : ECONOMIC AND SOCIAL ENVIRONMENT
Section A
1. What do you understand by the socio-cultural environment of business and how is it important for business ? Briefly explain with suitable examples. (20)
2. Examine the growth of public sector in India and analyse its contribution to overall economic development. (20)
3. What are the main features of Rao - Manmohan Model of Development ? Do you agree with the statement that while the model succeeded on growth, it failed on equity ? Discuss. (20)
4. Analyse the major trends in the growth of India's foreign trade and its implications on production, employment and technology. (20)
5. "Economic reforms were ad hoc and not driven by clear goals and objectives." Discuss in detail. (20)
Section B
6. What are the basic objectives of fiscal policy ? Analyse India's fiscal policy in the light of these objectives. (20)
7. Write short notes on any two of the following : (20)
(a) Management Movement
(b) Relationship between Government and Private sector
(c) Administered price mechanism
(d) Trade policy reforms
June, 2005
SECTION A
1. Examine the critical elements of lndia's economic environment, especially after the introduction of the New Economic Policy in 1991.
2. Examine the growth of private sector in lndia and analyse its contribution to overall economic development.
3. What is Foreign Direct Investment ? Assess the quantitative and qualitative impact of the lndustrial Policy, 1991 on the inflows of Foreign Direct lnvestment in India.
4. Examine the growth of lndia's foreign trade in respect of its composition and direction since 1991.
5. Analyse India's recent growth experience, clearly identifying the role of savings (household, publlc and corporate) in gross domestic capital formation.
SECTION B
6. Critically examine the recommendations of the Narasimham Committee.
7. Write short notes on :
(a) "Business must be run in a socially responsible manner." Critically examine in the context of Indian business
(b) lndustrial Sickness in lndia.
MS3 : ECONOMIC AND SOCIAL ENVIRONMENT
Section A
1. What do you understand by the socio-cultural environment of business and how is it important for business ? Briefly explain with suitable examples. (20)
2. Examine the growth of public sector in India and analyse its contribution to overall economic development. (20)
3. What are the main features of Rao - Manmohan Model of Development ? Do you agree with the statement that while the model succeeded on growth, it failed on equity ? Discuss. (20)
4. Analyse the major trends in the growth of India's foreign trade and its implications on production, employment and technology. (20)
5. "Economic reforms were ad hoc and not driven by clear goals and objectives." Discuss in detail. (20)
Section B
6. What are the basic objectives of fiscal policy ? Analyse India's fiscal policy in the light of these objectives. (20)
7. Write short notes on any two of the following : (20)
(a) Management Movement
(b) Relationship between Government and Private sector
(c) Administered price mechanism
(d) Trade policy reforms
June, 2005
SECTION A
1. Examine the critical elements of lndia's economic environment, especially after the introduction of the New Economic Policy in 1991.
2. Examine the growth of private sector in lndia and analyse its contribution to overall economic development.
3. What is Foreign Direct Investment ? Assess the quantitative and qualitative impact of the lndustrial Policy, 1991 on the inflows of Foreign Direct lnvestment in India.
4. Examine the growth of lndia's foreign trade in respect of its composition and direction since 1991.
5. Analyse India's recent growth experience, clearly identifying the role of savings (household, publlc and corporate) in gross domestic capital formation.
SECTION B
6. Critically examine the recommendations of the Narasimham Committee.
7. Write short notes on :
(a) "Business must be run in a socially responsible manner." Critically examine in the context of Indian business
(b) lndustrial Sickness in lndia.
MS2 test papers
June, 2005
MS2 : Pre-Revised: MANAGING MEN
Revised : MANAGEMENT OF HUMAN RESOURCES
Time: 3 hours
Maximum Marks: 100
(Weightage 70%)
Note :There are two Sections A and B. Section A has two sets. Set I is meant for students who have registered prior to January, 2005 i.e. upto June, 2004. Set II is meant for students who have registered from January, 2005 and onwards. Attempt any four questions from Section A. All questions carry 15 marks each. Section B is compulsory for all and carries 40 marks.
SECTION A
(Set I)
1. Define personnel management. Briefly discuss the major functions and operations of personnel management. (20)
2. Explain the purpose and types of interview in the organizational context, and discuss their limitations. (20)
3. Describe any twro methods of performance appraisal. Compare their advantages and disadvantages. (20)
4. Briefly outline the features of a grievance handling procedure and the steps involved in it. Cite a suitable case study to support your answer. (20)
5. Write short notes on any three of the following :
(a) Induction
(b) Evaluation of training programme
(c) Maslow's need hierarchy theory
(d) Principles of salary formulation
(e) Suspension and dismissal
SECTION A
(Set II)
1. Trace the evolution of Human Resource Management, Discuss the strategic and political perspectives of HRM. (20)
2. Why is human resource planning important ? Discuss the process of human resource planning. (20)
3. Discuss the competency approach to job analysis. Briefly describe any two methods of competency mapping. (20)
4. Discuss training need evaluation and describe various training evaluation techniques. (20)
5. Write short notes on any three of the following : (20)
(a) Performance coaching
(b) Human Resource Information System
(c) Fringe benefits
(d) Industrial democracy
(e) Outsourcing
SECTION B
6. Please read the following two cases and answer the questions given at the end of each. (40)
(A) Case Study
Mr. Ramchandran is the Chief Executive of ABC Limited Recently, it was decided by the Board of Directors that it would be profitable for the corporation to set up a separate Marketing Department. Mr. Ramchandran has been directed to pick up a person who he feels is capable of heading the department. and then putting this person in charge of getting the department on its feet. After considering a number of good men Mr. Ramchandran has narrowed the field down to two possible choices : Rajesh Mehta and Pramod Kumar.
Rajesh Mehta has a good track record with the company. He was hired eight years ago, and through the years he has shown a good deal of drive and initiative in all of his endeavours. He is an aggressive young man, and has received the nickname of 'go-getter' in his department. Although Mehta seems to be more concerned at times with ends rather than means, 'he is very efficient and is considered a good leader by those who work under hm. As one worker stated. "Although he can get rough with you at times, you always know where you stand with him, and when you have done a good job, he lets you know it." Mehta is also credited with accepting full responsibility, in all cases, and making quick decisions when action is called for.
Pramod Kumar has been with the company for eleven years. He is well liked by all in his department, and his work is ,first rate. Kumar's leadership style differs from Mehta's in that Kumar is not as aggressive and quick to act as Mehta. Before Kumar makes a decision, he generally consults others who he feels can contribute further information on a given subject. This often includes those who work under him. Those who work under Kumar consider him a good leader, and state that the atmosphere of participation produced by Kumar really encourages their utmost individual output while on the job. This can be seen by the production increase which soon occurred when Kumar became the head of his work-force.
Questions :
(a) If you were Mr Ramchandran whom would you select as the head of the Marketing Deptt. ? why ?
(b) Will you give any weightage to the length of service in the organisation ? Why ?
(B) Case Study
Raghav Chemicals Ltd. has planned for computerisation of nearly 50 per cent of the production operations and control. It has taken care of all resources in the computerisation plan including human resources. The present inventory of human resources and future requirements of the production department were specified as given hereunder.
Category of Human Resources Present Inventory Requirements after
Computerisation Surplus
Chemical engineers
(Operation) 15 8 7
Chemical engineers
(Maintenance and control) 10 6 4
Mechanical engineers
(Maintenance) 2 2 0
Supervisors 10 2 8
Operators 30 10 20
Quality controllers 5 1 4
72 29 43
The human resource planners suggested the redeployment of chemical engineers in their newly started sister concern, i.e., Laxman Paper Mills Ltd., and retrench surplus of employees of all other categories. They also recommended to the management that there was no need for further recruitment or for ary other action plan.
The computerisation was over by the end of 1998. When the management wanted to start the production on the newly computerised process, it was shocked to note that not many employees in the production department were suitable to the new jobs and the information supplied by the human resource planners in this regard did not match with the reality.
Questions :
(a) ldentify the problem in this case.
(b) To what extent are the human resource planners responsible for the present state of affairs ?
(c) What should the management do now to deal with the problem taking into account both the short-term and long term perspective ?
MANAGEMENT PROGRAMME
Term-End Examination
June, 2005
MS2 : Pre-Revised: MANAGING MEN
Revised : MANAGEMENT OF HUMAN RESOURCES
Time: 3 hours
Maximum Marks: 100
(Weightage 70%)
Note :There are two Sections A and B. Section A has two sets. Set I is meant for students who have registered prior to January, 2005 i.e. upto June, 2004. Set II is meant for students who have registered from January, 2005 and onwards. Attempt any four questions from Section A. All questions carry 15 marks each. Section B is compulsory for all and carries 40 marks.
SECTION A
(Set I)
(Pre-Revised : Managing Men)
1. Define manpower planning. Explain the methods for projecting manpower supply and demand at organisational level with examples. (15)
2. Describe and evaluate few methods of recruitment, citing organisational examples. (15)
3. Distinguish between Motivation and Morale. Explain Maslow's and Herzberg's theories of motivation and discuss their relevance in the present context. (15)
4. Explain how salary structure is designed in an organisation with the help of examples. (15)
5. Review the growth and development of employers' organisations in India. Discuss their role, functions and Present status. (15)
6. Write short notes on any three of the following : (15)
(i) Suspension
(ii) Purpose of industrial democracy
(iii) Job description
(iv) Grievance handling
(v) Interview
SECTION A
(Set II)
(Revised : Management of Human Resources)
1. Explain the changing role of HRM in the emerging business scenario in India. Compare it with the western models. (15)
2. Explain the concept of organisational socialisation. Discuss socialisation factors in organisational set-ups. (15)
3. Describe the process of performance appraisal. Discuss the significance of assessment centres for improving organizational performance. (15)
4. Discuss role systems. Explain the concept of role efficacy. (15)
5. "A pay packet alone is not adequate to attract and retain competent employees." Elaborate the statement and discuss the related concepts. (15)
6. Write short notes on any three of the following :
(i) Mentoring
(ii) Benchmarking
(iii) Empowerment
(iv) Lok Adalats
(v) Outsourcing
SECTION B
7. Read the following case and answer the questions given at the end.
Vishal Industries Ltd., is a medium sized engineering factory employing 250 employees. The Factory Manager advised the Personnel Manager of the company to select a right man to fill up the vacancy of a "Time-Keeper". The Personnel Manager inserted an advertisement for this post in prominent local newspapers and received a large number of applications although specific job description and job requirements were embodied in the advertisement. After preliminary screening of applications, the Personnel Manager selected only 6 applications out of 197 and sent them "Application Blank" for collecting their detailed information. On receipt of Applications and on further scrutiny, it was observed that two candidates were age-barred, although they had a good experience at their credit and one candidate had a suspicious personal life. The Personnel Manager therefore selected only 3 candidates and sent them call-letters for a personal interview on a stipulated date.
Only two candidates out of three appeared for the interview before the Interview Panel consisting of three interviewers. The panel had therefore to take a decision on selection, either of Mr. Tukaram Patil or Mr. Girish Mahajan. The personal kaits and merits of these two candidates are as follows :
Mr. Tukaram Patil, a young man of 30 years, has worked for a year in the Time Olfice of a reputed company. He is an exceptionally sociable, amicable individual who enjoys mixing with employees. His verbal skills are average. but he has a good degree of hardness. He can sit late in office and prepare payrolls of employees and complete the checking of paysheets a day before the actual date of payment. He does not demand extra remuneration or over-time for sitting late hours in office. He is a good sportsman also and has worked as a secretary of a sports club. A glaring weakness as revealed during the interview is that Mr. Patil's memory is not strong and he may forget a task assigned to him. But he is straight forward and frankly accepts his limitations.
Mr. Girish Mahajan, is also a youth, aged 25, and has a good personality. above average communication skills, but at times is "rough" ln deaiing with people. His clerical and computational skills are excellent. He does not on his own mix with people or take part in extra curricular activities. He joined a textile mill as a clerk in the Time Office and was promoted to the post of Assistant Time Keeper within a period of 5 years. He is against the principle of sitting late in office. His sense of time keeping, punctuality is good and regular. He feels that attendance of employees must be posted in the regular register on the same day and paysheets must be kept ready on 1st of every month and sent to A/c Department, for checking before 3rd inst. Similarly, he prepares PF/ESI statements and returns in time and submits the same to respective Government authorities in time. However, Mr. Girish Mahajan is short tempered and at times he also had heated arguments with managerial executives. He limits his existence to his working table and if anybody unconnected with the time-office work comes near his table, he loses his temper.
Questions :
(a) ln terms or overall capabilities and job requirements, whom will you recommend out of the two candidates, in your capacity as a Personnel Manager ?
(b) What are the criteria of your decision ?
(c) In case the other two members of the lnterview Panel differ from your decision, how will you convince them ?
(d) As a Manager HR, what will you do to improve the interpersonal relations in the organization ?
MS2 : Pre-Revised: MANAGING MEN
Revised : MANAGEMENT OF HUMAN RESOURCES
Time: 3 hours
Maximum Marks: 100
(Weightage 70%)
Note :There are two Sections A and B. Section A has two sets. Set I is meant for students who have registered prior to January, 2005 i.e. upto June, 2004. Set II is meant for students who have registered from January, 2005 and onwards. Attempt any four questions from Section A. All questions carry 15 marks each. Section B is compulsory for all and carries 40 marks.
SECTION A
(Set I)
1. Define personnel management. Briefly discuss the major functions and operations of personnel management. (20)
2. Explain the purpose and types of interview in the organizational context, and discuss their limitations. (20)
3. Describe any twro methods of performance appraisal. Compare their advantages and disadvantages. (20)
4. Briefly outline the features of a grievance handling procedure and the steps involved in it. Cite a suitable case study to support your answer. (20)
5. Write short notes on any three of the following :
(a) Induction
(b) Evaluation of training programme
(c) Maslow's need hierarchy theory
(d) Principles of salary formulation
(e) Suspension and dismissal
SECTION A
(Set II)
1. Trace the evolution of Human Resource Management, Discuss the strategic and political perspectives of HRM. (20)
2. Why is human resource planning important ? Discuss the process of human resource planning. (20)
3. Discuss the competency approach to job analysis. Briefly describe any two methods of competency mapping. (20)
4. Discuss training need evaluation and describe various training evaluation techniques. (20)
5. Write short notes on any three of the following : (20)
(a) Performance coaching
(b) Human Resource Information System
(c) Fringe benefits
(d) Industrial democracy
(e) Outsourcing
SECTION B
6. Please read the following two cases and answer the questions given at the end of each. (40)
(A) Case Study
Mr. Ramchandran is the Chief Executive of ABC Limited Recently, it was decided by the Board of Directors that it would be profitable for the corporation to set up a separate Marketing Department. Mr. Ramchandran has been directed to pick up a person who he feels is capable of heading the department. and then putting this person in charge of getting the department on its feet. After considering a number of good men Mr. Ramchandran has narrowed the field down to two possible choices : Rajesh Mehta and Pramod Kumar.
Rajesh Mehta has a good track record with the company. He was hired eight years ago, and through the years he has shown a good deal of drive and initiative in all of his endeavours. He is an aggressive young man, and has received the nickname of 'go-getter' in his department. Although Mehta seems to be more concerned at times with ends rather than means, 'he is very efficient and is considered a good leader by those who work under hm. As one worker stated. "Although he can get rough with you at times, you always know where you stand with him, and when you have done a good job, he lets you know it." Mehta is also credited with accepting full responsibility, in all cases, and making quick decisions when action is called for.
Pramod Kumar has been with the company for eleven years. He is well liked by all in his department, and his work is ,first rate. Kumar's leadership style differs from Mehta's in that Kumar is not as aggressive and quick to act as Mehta. Before Kumar makes a decision, he generally consults others who he feels can contribute further information on a given subject. This often includes those who work under him. Those who work under Kumar consider him a good leader, and state that the atmosphere of participation produced by Kumar really encourages their utmost individual output while on the job. This can be seen by the production increase which soon occurred when Kumar became the head of his work-force.
Questions :
(a) If you were Mr Ramchandran whom would you select as the head of the Marketing Deptt. ? why ?
(b) Will you give any weightage to the length of service in the organisation ? Why ?
(B) Case Study
Raghav Chemicals Ltd. has planned for computerisation of nearly 50 per cent of the production operations and control. It has taken care of all resources in the computerisation plan including human resources. The present inventory of human resources and future requirements of the production department were specified as given hereunder.
Category of Human Resources Present Inventory Requirements after
Computerisation Surplus
Chemical engineers
(Operation) 15 8 7
Chemical engineers
(Maintenance and control) 10 6 4
Mechanical engineers
(Maintenance) 2 2 0
Supervisors 10 2 8
Operators 30 10 20
Quality controllers 5 1 4
72 29 43
The human resource planners suggested the redeployment of chemical engineers in their newly started sister concern, i.e., Laxman Paper Mills Ltd., and retrench surplus of employees of all other categories. They also recommended to the management that there was no need for further recruitment or for ary other action plan.
The computerisation was over by the end of 1998. When the management wanted to start the production on the newly computerised process, it was shocked to note that not many employees in the production department were suitable to the new jobs and the information supplied by the human resource planners in this regard did not match with the reality.
Questions :
(a) ldentify the problem in this case.
(b) To what extent are the human resource planners responsible for the present state of affairs ?
(c) What should the management do now to deal with the problem taking into account both the short-term and long term perspective ?
MANAGEMENT PROGRAMME
Term-End Examination
June, 2005
MS2 : Pre-Revised: MANAGING MEN
Revised : MANAGEMENT OF HUMAN RESOURCES
Time: 3 hours
Maximum Marks: 100
(Weightage 70%)
Note :There are two Sections A and B. Section A has two sets. Set I is meant for students who have registered prior to January, 2005 i.e. upto June, 2004. Set II is meant for students who have registered from January, 2005 and onwards. Attempt any four questions from Section A. All questions carry 15 marks each. Section B is compulsory for all and carries 40 marks.
SECTION A
(Set I)
(Pre-Revised : Managing Men)
1. Define manpower planning. Explain the methods for projecting manpower supply and demand at organisational level with examples. (15)
2. Describe and evaluate few methods of recruitment, citing organisational examples. (15)
3. Distinguish between Motivation and Morale. Explain Maslow's and Herzberg's theories of motivation and discuss their relevance in the present context. (15)
4. Explain how salary structure is designed in an organisation with the help of examples. (15)
5. Review the growth and development of employers' organisations in India. Discuss their role, functions and Present status. (15)
6. Write short notes on any three of the following : (15)
(i) Suspension
(ii) Purpose of industrial democracy
(iii) Job description
(iv) Grievance handling
(v) Interview
SECTION A
(Set II)
(Revised : Management of Human Resources)
1. Explain the changing role of HRM in the emerging business scenario in India. Compare it with the western models. (15)
2. Explain the concept of organisational socialisation. Discuss socialisation factors in organisational set-ups. (15)
3. Describe the process of performance appraisal. Discuss the significance of assessment centres for improving organizational performance. (15)
4. Discuss role systems. Explain the concept of role efficacy. (15)
5. "A pay packet alone is not adequate to attract and retain competent employees." Elaborate the statement and discuss the related concepts. (15)
6. Write short notes on any three of the following :
(i) Mentoring
(ii) Benchmarking
(iii) Empowerment
(iv) Lok Adalats
(v) Outsourcing
SECTION B
7. Read the following case and answer the questions given at the end.
Vishal Industries Ltd., is a medium sized engineering factory employing 250 employees. The Factory Manager advised the Personnel Manager of the company to select a right man to fill up the vacancy of a "Time-Keeper". The Personnel Manager inserted an advertisement for this post in prominent local newspapers and received a large number of applications although specific job description and job requirements were embodied in the advertisement. After preliminary screening of applications, the Personnel Manager selected only 6 applications out of 197 and sent them "Application Blank" for collecting their detailed information. On receipt of Applications and on further scrutiny, it was observed that two candidates were age-barred, although they had a good experience at their credit and one candidate had a suspicious personal life. The Personnel Manager therefore selected only 3 candidates and sent them call-letters for a personal interview on a stipulated date.
Only two candidates out of three appeared for the interview before the Interview Panel consisting of three interviewers. The panel had therefore to take a decision on selection, either of Mr. Tukaram Patil or Mr. Girish Mahajan. The personal kaits and merits of these two candidates are as follows :
Mr. Tukaram Patil, a young man of 30 years, has worked for a year in the Time Olfice of a reputed company. He is an exceptionally sociable, amicable individual who enjoys mixing with employees. His verbal skills are average. but he has a good degree of hardness. He can sit late in office and prepare payrolls of employees and complete the checking of paysheets a day before the actual date of payment. He does not demand extra remuneration or over-time for sitting late hours in office. He is a good sportsman also and has worked as a secretary of a sports club. A glaring weakness as revealed during the interview is that Mr. Patil's memory is not strong and he may forget a task assigned to him. But he is straight forward and frankly accepts his limitations.
Mr. Girish Mahajan, is also a youth, aged 25, and has a good personality. above average communication skills, but at times is "rough" ln deaiing with people. His clerical and computational skills are excellent. He does not on his own mix with people or take part in extra curricular activities. He joined a textile mill as a clerk in the Time Office and was promoted to the post of Assistant Time Keeper within a period of 5 years. He is against the principle of sitting late in office. His sense of time keeping, punctuality is good and regular. He feels that attendance of employees must be posted in the regular register on the same day and paysheets must be kept ready on 1st of every month and sent to A/c Department, for checking before 3rd inst. Similarly, he prepares PF/ESI statements and returns in time and submits the same to respective Government authorities in time. However, Mr. Girish Mahajan is short tempered and at times he also had heated arguments with managerial executives. He limits his existence to his working table and if anybody unconnected with the time-office work comes near his table, he loses his temper.
Questions :
(a) ln terms or overall capabilities and job requirements, whom will you recommend out of the two candidates, in your capacity as a Personnel Manager ?
(b) What are the criteria of your decision ?
(c) In case the other two members of the lnterview Panel differ from your decision, how will you convince them ?
(d) As a Manager HR, what will you do to improve the interpersonal relations in the organization ?
MS1 test papers
June 2007
1. What are the characteristics of a professional manager? Briefly discuss the profile of various tasks performed by a professional manager in an organisational set-up, with suitable examples.
2. "A decision maker may not have complete knowledge about decision alternatives, outcome of chosen alternative. These conditions of knowledge are often referred to as 'States of Nature'". Elaborate on the state and discuss the underlying concepts with suitable examples.
3. Why is communication important for smooth functioning of an organisation ? Explain with examples, the various channels of formal and informal communication in an organisational set-up.
4. What is delegation ? What are the basic elements of delegation of authority and problems faced in doing so in an organisational set-up. Explain with suitable examples.
5. Write short notes on any three of the following :
(i) Leadership styles
(ii) Group formation
(iii) Conflict Handling Strategies
(iv) Building Interpersonal Skills
(v) Span of control and Manageria levels
SECTION - B
6. Please read the case and answer the questions given at the end.
Ms. Renu had graduated with a degree in foreign languages. As the child of a military family, she had visited many parts of the world and had travelled extensively in Europe. Depsite these broadening exeriences, she had never given much thought to a career until her recent divorce.
Needing to provide her own income, Ms. Renu began to look for work. After a faily intense but unsuccessful search for a job related to her foreign language degree, she began to evaluate her other skills. She had become a proficient typist in college and decided to look into secretarial work. Although she still wanted a career utilizing her foreign language skills, she felt that the immediate financial pressures woudld be eased in a temporary secretarial position.
Within a short period fo time, she was hired as a clerk/typist in a typical pool at Life Insurance Company. Six months later, she became the top typist in the pool and and was assigned as secretary to Mrs. Khan' manager of marketing research. She was pleased to get out of the pool and to get a job that had more variety in the tasks to perform. Besides, she also got a nice raise in pay.
Everything seemed to proceed well for the next nine months. Mrs. Khan was pleased with Renu's work, and she seemed happy with her work. Renu applied for a few other more professional jobs in other areas during this time. However, each time her application was reiected for lack of related education and/or experi ence in the area.
Over the next few months, Khan noticed changes in Renu. She did not always dress as neatly as she had in the past, she was occasionally late for work, some of her lunches extended to two hours, and most of her productive work was done in the morning hours. Khan did not wish to say anything because Renu had been doing an excellent job and her job tasks still were being accomplished on time. How ever, Renu's job behaviour continued to worsen. She began to be absent frequently on Mondays or Fridays. The two-hour lunch periods became standard, and her work performance began to deteriorate. In addition, Khan began to suspect that Renu was drinking heavily, due to her apearance some mornings and behavior after two-hour lunches.
Khan decided that she must confront Renu with the problem. However, she wanted to find a way to held her without losing a valuable employee. Before she could set up a meeting, Renu burst through her fdoor after lunch one day and siad:
"I want to talk to you Mrs. Khan"
"That's fine," Khan replied. "Shall we set a convenient time?"
"No! I want to talk now."
"OK, why don't you sit down and let's talk?"
Khan noticed that Renu was slurring her words slightly and she was not too steady.
"Mrs. Khan, I need some vacation time."
"I'm sure we can work that out. You've been with company for over a year and have two weeks vacation coming."
"No, you don't understand. I want to start it tomorrow."
"But, Renu, we need to plan to get a temporary replacement. We can't just let your job go for two weeks".
"Why not ? Anyway anyone with an IQ above 50 can do my job. Besides,I need the time off. "
"Renu , are you sure you are all right ?"
"Yes, I just need some time away from the job."
Khan decided to let Renu have the vacation, which would allow her some time to decide what to do about the situation.
Khan thought about the situation the next couple of days. It was possible that Renu was an alcoholic.
However, she also seemed to have a negative reaction to her job. Maybe Renu was bored with her job. She did not have the experi ence or job skills to move to a different type of job at present. Khan decided to meet with the Personnel Manager and get some help developing her options to deal with Renu's problem.
Questions :
(a) What is the problem in your opinion ? Elaborate.
(b) How would you explain the behaviour of Renu and Mrs. Khan? Did Mrs. Khan handle the situation timely and properly?
(c) Assume that you are the Personnel Manager. What are the alternatives available with Mrs. Khan?
(d) What do you consider the best alternative? Why?
June 2007
1. "The degree of involvement of managers with various management processes may differ from manager to manager. But all managers have to be concerned with all the processes in an organizational set-up." Elaborate this staterrlent and discuss briefly the underlying concepts with suitable examples.
2. Explain the term 'Bounded Rationality'. What are the factors leading to bounded rationality and satisficing decisions ? Discuss.
3. How is Strategic Planning different from Operational Planning ? Discuss with suitable examples. What are the essential steps in formulating a plan ? Describe with illustration.
4. What is the significance of Organisation Structure and Organisation Chart in the functioning and efficiency of an organisation ? Discuss with examples, the factors which influence the choice of the structure of an organisation.
5. Write short notes on any three of the following :
(i) Theories of Leadership
(ii) Johari Window
(iii) Organisation Culture
(iv) Control Process
(v) M.B.O.
SECTION B
6. Please read the case and answert he questions given at the end.
John was rapidly becoming the main topic of discussion for the workers on E-shift. For the past year, he had been working in the jeep-transportation department at a large manufacturing plant. His record of attendance was good and his work was considered far above average by his immediate supervisor. His supervisor also considered John the informal leader of the transportation department. This feeling was shared by the foreman and the other workers.
Lately, though, John had been seen by several supervisors breaking different safety regulations. Most of the violations would have been of no more consequence than a god talking to, so the supervisorsl et them slide.
Finally, John was caught by the plant safety supervisor without his safety glasses on. This resulted in his being laid off without pay for five working days.
It was was the plant's policy that safety glasses must be to gain admittance to the plant and must be wom times in the plant. This policy was to ensure that no employee would lose his eye-sightfrom an accident or from a resulting fire.
This written policy stated that an employee who was caught not wearing his safety glasses would for the first offence get a five day lay-off and then for a second oflence get another five day suspension. After John returned to work, he was again observed not wearing his safety devices. Within a few days of his return, John was caught by the same safety supervisor without his safety glasses. The supervisor informed John in an angry voice, "l m getting tired of writing you up for stupid mistakes." At this point, John replied, "Why don't you go home and smash your head. " The supervisor then struck John, dt which point John proceeded to beat the supervisor unconscious.
John was laid off from work until the company could decide what action to take regarding the fight. After a brief meeting the next day, Mr. Prasad, the transportation supervisor, informed John that he was terminated. A union steward then asked Mr. Prasad about the fate of the supervisor. Mr. Prasad replied, "He will remain at work as far as I know. " The union steward immediately stepped to the telephone and called the union president. From the ensuing conversation, Mr. Prasad learnt that a wild cat strike might be ordered over the firing of John and not the supervisor.
Mr. Prasad knew that it was the company's stated policy that whoever started or was involved in a fight would be terminated immediately. Mr. Prasad was beginning to wonder whether the company had rnade a mistake in its decision and what should be done now.
Questions:
(a) What is the problem in the case ?
(b) How do you see the behaviour of the safety supervisor ? What would you do if you were the safety supervisor ?
(c) How do you see the change in John's behaviour from an informal leader to the one involved in a fight with a supervisor vis-d-vis the company's policy ?
(d) Could Mr. Prasad and the safep supervisor have prevented John's case at the initial level ?
December, 2005
Section A
1. Enumerate various systems and processes involved in managing an organisation. Briefly explain system concept and its inter-relationship with sub systems in an organisational set-up.
2. Discuss various techniques used in decision making. Describe what are the main barriers to effective decision making. Explain with examples.
3. How do Traditional, Behavioural and lnteractionist views explain the process of conflict ? Evaluate the changes which take place within and between the groups as a result of long standing inter-group conflict.
4. "Various multi-faceted task and activities of an organisation have to be differentiated into smaller, manageable components to facilitate efficient achievement of objectives" . Elaborate this statement and discuss underlying issues with suitable examples.
5. Write short notes on any three of the following :
(i) Responsibilities of a manager towards society
(ii) MBO
(iii) Organisational culture and climate
(iv) Span of control and levels of management
(v) Leadership styles
SECTION B
6. Please read the case and answer the questions given at the end :
Case
One afternoon in June 1972, Seth, the industrial engineer of ABC Company, was called to the office of his immediate superior Kapil, the production manager. Kapil said, "Seth. I want to discuss a situation in the production department. A lot of people feel that Joshi is not the right man for the Assistant Superintendent's position. The President and others have decided that I have got to fire Joshi or at least move him out of production. Everyone wants to fire Joshi, but I won't do it to him. I was talking with Bhal this morning, and we decided that you might be able to make use of Joshi in your department."
Seth was surprised by both the information, and the proposal.
Kapil concluded his comments with, "Seth I am asking you to take Joshi. You can say 'No'. But then he gets fired. I have told Joshi this. Also, Joshi knows that if he goes with you he will take a pay cut. However, I think you can make use of him both to your own and his satisfaction. You are, anyway, carrying out an in-process quality control, and you might be able to make good use of Joshi in view ol his long technical experience of production work. Think it over, and let me know by tomorrow".
Seth thought over the matter.
ABC Company had bear a successful enterprise until March 1972 at which time it suffered a sharp decline of profits : sales had fallen off, and production costs had risen. The President adopted three measures which he hoped would improve the condition. First, by creating an Industrial Engineering department for establishing work standards on all production operations, to determine which manufacturing costs were out of line and where remedial action should be taken. Seth, 28 yeals old, who had been wiih the company for two years in the Purchasing department, was selected Seth had B.E. and M.B.A. degrees to his credit. What he lacked in his business experience he made up by his eagerness to learn. He was ambitious and liked by his associates. He wanted a translet from Purchasing to Production for better opportunities for advancement.
Secondly, he consulted a Management Consultation firm to make a study of the Production Department. They pointed out that the chain of command was too long from Production Manager through Plant Superintendent through Assistant Superintendent to Foremen. They recommended the elimination of the position of Assistant Superintendent.
Thirdly, he engaged an Industrial Psychologist to appraise all the Supevisory, Personnel.
Joshi had been with the Company for 20 years since its founding, and during this period had worked on every production operation, and his last 11 years had been in supervisory capacity. His manners were rough and aggressive, and he had little formal education. The Industrial Psychologists report about Joshi contained the following points :
(i) Evaluation for the position of Assistant Superintendent, Not good enough.
(ii) Capacity for good human relations in supervision : Will have friction frequently.
(iii) Need for development counselling : Counselling greatly needed.
(v) General evaluation : Joshi had a good ability profile. He suffers from a sense of inferiority. He does not like the responsibility of making decisions. His supervision is that of Autocratic type. Though he has the ability, as far as his personality make-up is concerned, he is out of place in the present position.
Questions :
(a) What is the core problem in the case ? Explain.
(b) Explain Joshi's behaviour and work experience vis-a-vis the psychologist's report.
(c) How do you see Kapil's suggestion to Seth ? Give reasons.
(d) What are Seth's considerations in taking a decision ? What should he do ? Explain.
June, 2005SECTION A
1. Briefly discuss the various managerial skills. Discuss with suitable examples the interplay between the different skills and contextual domains. (15)
2. Describe the various channels of communication in an organization. What are the characteristics of grapevine as summarized by Keith Davis ? (15)
3. What is 'control' in context to an organization ? Explain the prerequisites and characteristics of an effective control Do you agree with the statement "Delegation of auihority is not same as Division of work" ? Explain the various elements of Delegation. (15)
4. What do you understand by Line and Staff relationships ? What is Matrix structure of Organization ? (15)
5. Write short notes on any three of the following : (15)
(i) MBO
(ii) Determinants of Organizational Culture
(iii) Types of Organizational Conflict
(iv) The Domino effect
(v) Span of Control
SECTION B
7. Read the case carefully and answer the questions given at the end. (40)
Ceylon Fertilizer is a urea manufacturing unit having a capacity of 500 tonnes per day. The total work force of the plant is around 2,000. Being a self-contained plant, it has its own workshop in order to take care of regular maintenance work. The workshop functions in two shifts a day under ; shift incharge for each shift who is in the cadre of AEE. The workers have been grouped into two groups, i.e., Relay 'A'and 'B'. The shift routine changes once a week, Sunday being the weekly holiday Besides the two shifts, there are a group of people under a Senior AEE attending in general shift hours.
The Relay 'A', consisting of 18 workers is placed under the charge of Shri Muthu who is a graduate in mechanical engineering. After undergoing training for a period of six months in various divisions in fertilizers, he had acquired a thorough knowledge of works to be undertaken by the Workshop After being a Relay Supervisor for 3 years, he has been recently promoted to the post of AEE, who is the shift incharge. When he joined the workshop, he found that the tasks were done with the application of thumb-rules and higher officers had to be satisfied with such a quality of work.
Shri Muthu, on witnessing this, started to instruct his workers in various theoretical aspects of welding, machining etc.. which he had studied in his college. They all highly appreciated the skill and techniques he had taught. The workers now learnt to do things in a better way. Thus, he gained the confidence of workers. As he was able to finish his work in time and in a better way than Relay 'B', more work orders were allotted to his group. A few workers in this group started to grumble and one of the Foremen came and told Mr. Muthu that the "other relay workers do not have much work load and our workers too do not want to strain much and they are murmuring over getting more work." Muthu, however, convinced the Foreman that extra work should be taken as a credit and recognition, and they should do their best. After this had happened some workers even tried to get transferred to the other Relay.
One morning, Muthu was making arrangements for the work to be taken and was giving instructions to his foreman. Turner, Kali, came and told him, "Sir, father of Fitter Sami expired last night and we all want to go and attend the funeral" and added "it is customary for the men in the workshop to attend such funerals and the shift-incharge has to arrange a lorry or any conveyance for the people to go to Sami's house, which is nearly eight km from the Plant. Since Muthu joined the company, this was the first such instance occurring and as he had to finish some urgent work orders. He told the worker Kali, "You all need not go to the funeral. I can, however, permit a few of you as representatives of Relay 'A' to go and offer condolences to Sami's famiiy." Further, he regretted that he would not make any arrangements for conveyance, This statement created a turbulence among the workers and a group of workers stopped the work and started demanding that they be allowed to attend the funeral or else they wanted to stop work in the coming shifts. The Foreman hurried up to AEE, Mr. Muthu to explain the turbulent situation on the shop-floor.
On hearing this, Muthu told his Foreman, "I have given you an alternative and I have already told the urgency of work and I am going to allocate the work as per plannlng schedule. If the work is not done, I may have to take action against you." Then the group of workers started discussing among themselves as to what to do next. A Turner came forth and said, "You are not considerate enough on human matters and if yoll are still adamant we may prefer half-a-day wages cut as we must go and attend the funeral. Anyhow you have to make arrangements f r our conveyance." Muthu at this instance noted that a small group, who were usually complaining about the workload and were murmuring, were keenly interested in the affair. He decided to face the situation as a matter of prestige. He issued the gate pass to whoever wished to go, still emphasizing that he would not arrange any conveyance. Nearly 25 per cent of the workers remained and the others collected money from all for the funeral and went off.
On that day, Muthu could finish only a part of the work as planned and he had to explain what had happened in his Relay, to his boss.
When he came the next morning, it was rumoured that only a few of the workers attended the funeral and the others had gone to the cinema theatre near the village. Muthu got irritated by the workers' behaviour and started writing memos to those who had received the gate pass the previous day. Some workers got annoyed by this action of Muthu and they aproached the union to intervene. The news had spread to other divisions and there was an air oI protest at all places in the Fertilizer Plant.
Questions :
(a) What is your view of the action taken by Mr. Muthu ?
(b) What are the weakness and strong points, as you consider, of Mr. Muthu as a Manager ?
(c) How would you have tackled the situation, if you were Mr. Muthu ?
December, 2002
SECTION A
1 Describe various tasks and responsibilities of a professional manager in today’s context. Cite suitable examples from your experience.
2 Explain briefly the major elements of management processes. what new skills would a manager require as he/she moves from middle to top management level? Discuss.
3 Differentiate between the decision-making models and techniques. Explain with suitable examples.
4 What are the various determinants of organistional culture? How does leadership influence the culture of an organisation? Discuss.
5 Identify major sources of conflict in an organisation. What approaches will you suggest for managing conflict in a service organisation in today’s context?
6 Describe the inter-personal needs in terms of expressed behaivour and wanted behaviour. Give suitable examples.
7 Write short notes on any three of the following :
(i) Delegation and Decentralisation
(ii) Process of organizational change
(iii) Johari Window model of communication
(iv) Enriching relationship with others
(v) Group dynamics
SECTION B
8 Read the case and answer th question given at the end.
The ABC Manufacturing Company is a plant under the direction of a plant manager who is known as a strict disciplinarian. One day a strict disciplinarian. One day a foreman noticed Bhola,one of the workers, at the time-clock punching out two cards- his own and the card of Nathu, a fellow worker. Since it was the rule of the company that each man must punch out his own card, the foreman asked Bhola to accompany him to the Personnel Director,who interpreted the incident as a direct violation of a rule and gave immediate notice of discharge to both workers.
The two workers came to see the Personnel Director on the following day. Nathu claimed innocence on the ground that he had not asked for his card to be punched and did not know at the time that it was being punched. He had been offered a ride by a frienf who could not wait for him to go through the punch-out procedure. Nathu was worried about his wife who was ill at home and was anxious to reach home and was anxious to reach home as quickly as possible. He planned to take his card to the foreman the next morning for reintatement, a provision sometimes exercised in such cases.
These circumstances were verified by Bhola. He claimed that he had punched Nathu’s card the same time he punched his own, not being conscious of any wrongdoing.
The Personnel Director was inclined to believe the story of the two men but did not feel he could reverse the action taken. He recognized that these men were good workers and had good records prior to this incident. Nevertheless, they had violated a rule for which the penalty was immediate discharge. He also reminded them that it was the policy of the company to enforce the rules without exception.
A few days later the Personnel Director, the plant Manager, and the Sales Manager sat together at lunch. The Sales Manager reported that he was faced with the necessity of notifying one of their best customers that his order must be delayed because of the inability of one department to conform to schedule. The department in question was the one from which the two workers had been discharged. Not only had men to date, but disgruntlement over the incident had led to significant decline in the cooperation of other workers.
The Personnel Director and the Sales Manager took the position that the discharge of these two valuable men could have been avoided if there had been provision for considering the incident was costly to the company in the possible loss of a costomer,in the dissatisfaction within the employee group, and in the time and money that would be involved in recruiting and training replacements.
The Plant Manager could not agree with this point of view. “ We must have rules if we are to have efficiency; and the rules are no good unless we enforce them. Further more, if we start considering all these variations in circumstances, we start considering all these variations in circumstances, we will find ourselves loaded down with everybody thinking he is an exception.” He admitted that the grievances were frequent but countered with the point that they could be of little consequence if the contract agreed to by the union was followed to the letter.
Questions
1 Place yourself in the position of the Personnel Director in this situation. Which of the following courses of the information which he has available at the time of the decision?
(a) Would you have discharged both men?
(b) Would you have discharged Bhola only?
(c) Would you have discharged Nathu only?
(d) Would you have discharged neither of them?
Justify your choice of decision.
2 What policy and procedural changes would you recommend for the handling of future cases of this type?
December, 2001
SECTION A
1 “Coordination is imperative for the success of any organization.” Explaining the need for coordination suggest the ways to achieve effective coordination in a decentralised private sector manufacturing organisation.
2 Describe the interpersonal needs in terms of expressed and wanted behavior. Cite suitable examples to support your views.
3 Why do managers need to acquire different skills at various levels? What are the skills conceptualized by Katz? Explain how they are proving useful for Indian managers at different levels.
4 Discuss various strategies used in implementing organisational change in the context of a large public sector manufacturing organisation.
5 Identify major barriers of communication and explain why do they arise. Explain ways to overcome these barriers with suitable examples.
6 Write short notes on any three of the following :
(i) Delegation and Decentralisation
(ii) Line and Staff functions
(iii) Theory X and Y
(iv) Domino Effect
(v) Organisational culture and climate
SECTION B
7 Read the case carefully and answer the questions given at the end.
One afternoon in June 1972, Rao, industrial engineer of P.M.A. company, was called to the office of his immediate superior V.R. Naik, the production manager. Naik said, “Rao, I want to discuss a situation in the production department. A lot of people feel that Govindan is not the right man for the Assistant Superintendent’s position. The President and others have decided that I have got to fire Govindan or at least move him out of production. Everyone wants to fire Govindan, but I won’t do it to him. I was talking with Bhadra this morning, and we decided that you might be able to make use of Govindan in your department.”
Rao was surprised by both the information, and the proposal.
Naik concluded his comments with, “Rao I am asking you to take Govindan. You can say ‘No’. But then he gets fired. I have told Govindan this. Also, Govindan knows that if he goes with you he will take a pay cut. However, I think you can make use of him both to your own and his satisfaction. You are, anyway, carrying out an in-process quality control, and you might be able to make good use of Govindan in view of his long technical experience of production work. Think it over, and let me know by tomorrow.
Roa thought over the matter.
PMA company had been a successful enterprise until March 1972 at which time it suffered a sharp decline of profits : sales had fallen off, and production costs had risen. The President adopted three measures which he hoped would improve the condition. First, by creating an Industrial Engineering department for establishing work standards on all production operations, to determine which manufacturing costs were out of line and where remedial action should be taken. Rao, 28 years old, who had been with the company for two years in the Purchasing department, was selected. Rao had B.E. and MBA degrees to his credit. What he lacked in his business experience he made up by his eagerness to learn. He was ambitious and liked by his associates. He wanted a transfer from Purchasing to Production for better opportunities for advancement.
Secondly, he consulted a Management Consultation firm to make a study of the Production Department. They pointed out that the chain of command was too long from Production Manager through Plant Superintendent through Assistant Superintendent to Foremen. They recommended the elimination of the position of Assistant Superintendent.
Thirdly, he enagaged an Industrial Psychologist to appraise all the Supervisory Personnel.
Govindan had been with the Company for 20 years since its founding and during this period had worked on every production operation, and his last 11 years had been in supervisory capacity. His manners were rough and aggressive, he had little formal education. The Industrial Psychologist’s report about Govindan contained the following points :
1. Evaluation for the position of Assistant Superintendent : Not good enough.
2. Capacity for good human relations in supervision : Will have friction frequently.
3. Need for development counselling : Counselling greatly needed.
4. General evaluation : Govindan had a good ability profile. He suffers from a sense of inferiority. He does not like the responsibility of making decisions. His supervision is that of Autocratic type. Though he has the ability, as far as his personality make-up is concerned, he is out of place in the present position.
Questions :
(a) What is the problem in the case? Explain.
(b) Explain Govindan’s behaviour and work experience vis-a-vis the psychologist’s report.
(c) How do you see Naik’a suggestion to Rao? Give reasons.
(d) What are Rao’s considerations is taking a decision? What should he do? Explain.
June, 1999SECTION A
1(a) What kind of decisions is a manager generally required to make in the organisational context? Explain with examples as to which of these correspond to programmed and non-programmed categories.
(b) Discuss various strategies used in implementing organisational change in the context of a large manufacturing company.
2(a) What is the system approach to management? Explain the salient features of this approach.
(b) Describe various managerial skills briefly. Discuss the roles these skills could play in building an institution.
3(a) Distinguish between the individual and the group decision making, explaining the advantages and disadvantages of group decision making.
(b) Distinguish between individual change and organisational change.
4 Write short notes on any three of the following :
(i) Domino Effect
(ii) Functional and Dysfunctional conflict
(iii) Formal and Informal groups
(iv) MBO
(v) Organisational Culture and Climate
SECTION B
5 Refer Dec 2001 question 7(sec B).
1. What are the characteristics of a professional manager? Briefly discuss the profile of various tasks performed by a professional manager in an organisational set-up, with suitable examples.
2. "A decision maker may not have complete knowledge about decision alternatives, outcome of chosen alternative. These conditions of knowledge are often referred to as 'States of Nature'". Elaborate on the state and discuss the underlying concepts with suitable examples.
3. Why is communication important for smooth functioning of an organisation ? Explain with examples, the various channels of formal and informal communication in an organisational set-up.
4. What is delegation ? What are the basic elements of delegation of authority and problems faced in doing so in an organisational set-up. Explain with suitable examples.
5. Write short notes on any three of the following :
(i) Leadership styles
(ii) Group formation
(iii) Conflict Handling Strategies
(iv) Building Interpersonal Skills
(v) Span of control and Manageria levels
SECTION - B
6. Please read the case and answer the questions given at the end.
Ms. Renu had graduated with a degree in foreign languages. As the child of a military family, she had visited many parts of the world and had travelled extensively in Europe. Depsite these broadening exeriences, she had never given much thought to a career until her recent divorce.
Needing to provide her own income, Ms. Renu began to look for work. After a faily intense but unsuccessful search for a job related to her foreign language degree, she began to evaluate her other skills. She had become a proficient typist in college and decided to look into secretarial work. Although she still wanted a career utilizing her foreign language skills, she felt that the immediate financial pressures woudld be eased in a temporary secretarial position.
Within a short period fo time, she was hired as a clerk/typist in a typical pool at Life Insurance Company. Six months later, she became the top typist in the pool and and was assigned as secretary to Mrs. Khan' manager of marketing research. She was pleased to get out of the pool and to get a job that had more variety in the tasks to perform. Besides, she also got a nice raise in pay.
Everything seemed to proceed well for the next nine months. Mrs. Khan was pleased with Renu's work, and she seemed happy with her work. Renu applied for a few other more professional jobs in other areas during this time. However, each time her application was reiected for lack of related education and/or experi ence in the area.
Over the next few months, Khan noticed changes in Renu. She did not always dress as neatly as she had in the past, she was occasionally late for work, some of her lunches extended to two hours, and most of her productive work was done in the morning hours. Khan did not wish to say anything because Renu had been doing an excellent job and her job tasks still were being accomplished on time. How ever, Renu's job behaviour continued to worsen. She began to be absent frequently on Mondays or Fridays. The two-hour lunch periods became standard, and her work performance began to deteriorate. In addition, Khan began to suspect that Renu was drinking heavily, due to her apearance some mornings and behavior after two-hour lunches.
Khan decided that she must confront Renu with the problem. However, she wanted to find a way to held her without losing a valuable employee. Before she could set up a meeting, Renu burst through her fdoor after lunch one day and siad:
"I want to talk to you Mrs. Khan"
"That's fine," Khan replied. "Shall we set a convenient time?"
"No! I want to talk now."
"OK, why don't you sit down and let's talk?"
Khan noticed that Renu was slurring her words slightly and she was not too steady.
"Mrs. Khan, I need some vacation time."
"I'm sure we can work that out. You've been with company for over a year and have two weeks vacation coming."
"No, you don't understand. I want to start it tomorrow."
"But, Renu, we need to plan to get a temporary replacement. We can't just let your job go for two weeks".
"Why not ? Anyway anyone with an IQ above 50 can do my job. Besides,I need the time off. "
"Renu , are you sure you are all right ?"
"Yes, I just need some time away from the job."
Khan decided to let Renu have the vacation, which would allow her some time to decide what to do about the situation.
Khan thought about the situation the next couple of days. It was possible that Renu was an alcoholic.
However, she also seemed to have a negative reaction to her job. Maybe Renu was bored with her job. She did not have the experi ence or job skills to move to a different type of job at present. Khan decided to meet with the Personnel Manager and get some help developing her options to deal with Renu's problem.
Questions :
(a) What is the problem in your opinion ? Elaborate.
(b) How would you explain the behaviour of Renu and Mrs. Khan? Did Mrs. Khan handle the situation timely and properly?
(c) Assume that you are the Personnel Manager. What are the alternatives available with Mrs. Khan?
(d) What do you consider the best alternative? Why?
June 2007
1. "The degree of involvement of managers with various management processes may differ from manager to manager. But all managers have to be concerned with all the processes in an organizational set-up." Elaborate this staterrlent and discuss briefly the underlying concepts with suitable examples.
2. Explain the term 'Bounded Rationality'. What are the factors leading to bounded rationality and satisficing decisions ? Discuss.
3. How is Strategic Planning different from Operational Planning ? Discuss with suitable examples. What are the essential steps in formulating a plan ? Describe with illustration.
4. What is the significance of Organisation Structure and Organisation Chart in the functioning and efficiency of an organisation ? Discuss with examples, the factors which influence the choice of the structure of an organisation.
5. Write short notes on any three of the following :
(i) Theories of Leadership
(ii) Johari Window
(iii) Organisation Culture
(iv) Control Process
(v) M.B.O.
SECTION B
6. Please read the case and answert he questions given at the end.
John was rapidly becoming the main topic of discussion for the workers on E-shift. For the past year, he had been working in the jeep-transportation department at a large manufacturing plant. His record of attendance was good and his work was considered far above average by his immediate supervisor. His supervisor also considered John the informal leader of the transportation department. This feeling was shared by the foreman and the other workers.
Lately, though, John had been seen by several supervisors breaking different safety regulations. Most of the violations would have been of no more consequence than a god talking to, so the supervisorsl et them slide.
Finally, John was caught by the plant safety supervisor without his safety glasses on. This resulted in his being laid off without pay for five working days.
It was was the plant's policy that safety glasses must be to gain admittance to the plant and must be wom times in the plant. This policy was to ensure that no employee would lose his eye-sightfrom an accident or from a resulting fire.
This written policy stated that an employee who was caught not wearing his safety glasses would for the first offence get a five day lay-off and then for a second oflence get another five day suspension. After John returned to work, he was again observed not wearing his safety devices. Within a few days of his return, John was caught by the same safety supervisor without his safety glasses. The supervisor informed John in an angry voice, "l m getting tired of writing you up for stupid mistakes." At this point, John replied, "Why don't you go home and smash your head. " The supervisor then struck John, dt which point John proceeded to beat the supervisor unconscious.
John was laid off from work until the company could decide what action to take regarding the fight. After a brief meeting the next day, Mr. Prasad, the transportation supervisor, informed John that he was terminated. A union steward then asked Mr. Prasad about the fate of the supervisor. Mr. Prasad replied, "He will remain at work as far as I know. " The union steward immediately stepped to the telephone and called the union president. From the ensuing conversation, Mr. Prasad learnt that a wild cat strike might be ordered over the firing of John and not the supervisor.
Mr. Prasad knew that it was the company's stated policy that whoever started or was involved in a fight would be terminated immediately. Mr. Prasad was beginning to wonder whether the company had rnade a mistake in its decision and what should be done now.
Questions:
(a) What is the problem in the case ?
(b) How do you see the behaviour of the safety supervisor ? What would you do if you were the safety supervisor ?
(c) How do you see the change in John's behaviour from an informal leader to the one involved in a fight with a supervisor vis-d-vis the company's policy ?
(d) Could Mr. Prasad and the safep supervisor have prevented John's case at the initial level ?
December, 2005
Section A
1. Enumerate various systems and processes involved in managing an organisation. Briefly explain system concept and its inter-relationship with sub systems in an organisational set-up.
2. Discuss various techniques used in decision making. Describe what are the main barriers to effective decision making. Explain with examples.
3. How do Traditional, Behavioural and lnteractionist views explain the process of conflict ? Evaluate the changes which take place within and between the groups as a result of long standing inter-group conflict.
4. "Various multi-faceted task and activities of an organisation have to be differentiated into smaller, manageable components to facilitate efficient achievement of objectives" . Elaborate this statement and discuss underlying issues with suitable examples.
5. Write short notes on any three of the following :
(i) Responsibilities of a manager towards society
(ii) MBO
(iii) Organisational culture and climate
(iv) Span of control and levels of management
(v) Leadership styles
SECTION B
6. Please read the case and answer the questions given at the end :
Case
One afternoon in June 1972, Seth, the industrial engineer of ABC Company, was called to the office of his immediate superior Kapil, the production manager. Kapil said, "Seth. I want to discuss a situation in the production department. A lot of people feel that Joshi is not the right man for the Assistant Superintendent's position. The President and others have decided that I have got to fire Joshi or at least move him out of production. Everyone wants to fire Joshi, but I won't do it to him. I was talking with Bhal this morning, and we decided that you might be able to make use of Joshi in your department."
Seth was surprised by both the information, and the proposal.
Kapil concluded his comments with, "Seth I am asking you to take Joshi. You can say 'No'. But then he gets fired. I have told Joshi this. Also, Joshi knows that if he goes with you he will take a pay cut. However, I think you can make use of him both to your own and his satisfaction. You are, anyway, carrying out an in-process quality control, and you might be able to make good use of Joshi in view ol his long technical experience of production work. Think it over, and let me know by tomorrow".
Seth thought over the matter.
ABC Company had bear a successful enterprise until March 1972 at which time it suffered a sharp decline of profits : sales had fallen off, and production costs had risen. The President adopted three measures which he hoped would improve the condition. First, by creating an Industrial Engineering department for establishing work standards on all production operations, to determine which manufacturing costs were out of line and where remedial action should be taken. Seth, 28 yeals old, who had been wiih the company for two years in the Purchasing department, was selected Seth had B.E. and M.B.A. degrees to his credit. What he lacked in his business experience he made up by his eagerness to learn. He was ambitious and liked by his associates. He wanted a translet from Purchasing to Production for better opportunities for advancement.
Secondly, he consulted a Management Consultation firm to make a study of the Production Department. They pointed out that the chain of command was too long from Production Manager through Plant Superintendent through Assistant Superintendent to Foremen. They recommended the elimination of the position of Assistant Superintendent.
Thirdly, he engaged an Industrial Psychologist to appraise all the Supevisory, Personnel.
Joshi had been with the Company for 20 years since its founding, and during this period had worked on every production operation, and his last 11 years had been in supervisory capacity. His manners were rough and aggressive, and he had little formal education. The Industrial Psychologists report about Joshi contained the following points :
(i) Evaluation for the position of Assistant Superintendent, Not good enough.
(ii) Capacity for good human relations in supervision : Will have friction frequently.
(iii) Need for development counselling : Counselling greatly needed.
(v) General evaluation : Joshi had a good ability profile. He suffers from a sense of inferiority. He does not like the responsibility of making decisions. His supervision is that of Autocratic type. Though he has the ability, as far as his personality make-up is concerned, he is out of place in the present position.
Questions :
(a) What is the core problem in the case ? Explain.
(b) Explain Joshi's behaviour and work experience vis-a-vis the psychologist's report.
(c) How do you see Kapil's suggestion to Seth ? Give reasons.
(d) What are Seth's considerations in taking a decision ? What should he do ? Explain.
June, 2005SECTION A
1. Briefly discuss the various managerial skills. Discuss with suitable examples the interplay between the different skills and contextual domains. (15)
2. Describe the various channels of communication in an organization. What are the characteristics of grapevine as summarized by Keith Davis ? (15)
3. What is 'control' in context to an organization ? Explain the prerequisites and characteristics of an effective control Do you agree with the statement "Delegation of auihority is not same as Division of work" ? Explain the various elements of Delegation. (15)
4. What do you understand by Line and Staff relationships ? What is Matrix structure of Organization ? (15)
5. Write short notes on any three of the following : (15)
(i) MBO
(ii) Determinants of Organizational Culture
(iii) Types of Organizational Conflict
(iv) The Domino effect
(v) Span of Control
SECTION B
7. Read the case carefully and answer the questions given at the end. (40)
Ceylon Fertilizer is a urea manufacturing unit having a capacity of 500 tonnes per day. The total work force of the plant is around 2,000. Being a self-contained plant, it has its own workshop in order to take care of regular maintenance work. The workshop functions in two shifts a day under ; shift incharge for each shift who is in the cadre of AEE. The workers have been grouped into two groups, i.e., Relay 'A'and 'B'. The shift routine changes once a week, Sunday being the weekly holiday Besides the two shifts, there are a group of people under a Senior AEE attending in general shift hours.
The Relay 'A', consisting of 18 workers is placed under the charge of Shri Muthu who is a graduate in mechanical engineering. After undergoing training for a period of six months in various divisions in fertilizers, he had acquired a thorough knowledge of works to be undertaken by the Workshop After being a Relay Supervisor for 3 years, he has been recently promoted to the post of AEE, who is the shift incharge. When he joined the workshop, he found that the tasks were done with the application of thumb-rules and higher officers had to be satisfied with such a quality of work.
Shri Muthu, on witnessing this, started to instruct his workers in various theoretical aspects of welding, machining etc.. which he had studied in his college. They all highly appreciated the skill and techniques he had taught. The workers now learnt to do things in a better way. Thus, he gained the confidence of workers. As he was able to finish his work in time and in a better way than Relay 'B', more work orders were allotted to his group. A few workers in this group started to grumble and one of the Foremen came and told Mr. Muthu that the "other relay workers do not have much work load and our workers too do not want to strain much and they are murmuring over getting more work." Muthu, however, convinced the Foreman that extra work should be taken as a credit and recognition, and they should do their best. After this had happened some workers even tried to get transferred to the other Relay.
One morning, Muthu was making arrangements for the work to be taken and was giving instructions to his foreman. Turner, Kali, came and told him, "Sir, father of Fitter Sami expired last night and we all want to go and attend the funeral" and added "it is customary for the men in the workshop to attend such funerals and the shift-incharge has to arrange a lorry or any conveyance for the people to go to Sami's house, which is nearly eight km from the Plant. Since Muthu joined the company, this was the first such instance occurring and as he had to finish some urgent work orders. He told the worker Kali, "You all need not go to the funeral. I can, however, permit a few of you as representatives of Relay 'A' to go and offer condolences to Sami's famiiy." Further, he regretted that he would not make any arrangements for conveyance, This statement created a turbulence among the workers and a group of workers stopped the work and started demanding that they be allowed to attend the funeral or else they wanted to stop work in the coming shifts. The Foreman hurried up to AEE, Mr. Muthu to explain the turbulent situation on the shop-floor.
On hearing this, Muthu told his Foreman, "I have given you an alternative and I have already told the urgency of work and I am going to allocate the work as per plannlng schedule. If the work is not done, I may have to take action against you." Then the group of workers started discussing among themselves as to what to do next. A Turner came forth and said, "You are not considerate enough on human matters and if yoll are still adamant we may prefer half-a-day wages cut as we must go and attend the funeral. Anyhow you have to make arrangements f r our conveyance." Muthu at this instance noted that a small group, who were usually complaining about the workload and were murmuring, were keenly interested in the affair. He decided to face the situation as a matter of prestige. He issued the gate pass to whoever wished to go, still emphasizing that he would not arrange any conveyance. Nearly 25 per cent of the workers remained and the others collected money from all for the funeral and went off.
On that day, Muthu could finish only a part of the work as planned and he had to explain what had happened in his Relay, to his boss.
When he came the next morning, it was rumoured that only a few of the workers attended the funeral and the others had gone to the cinema theatre near the village. Muthu got irritated by the workers' behaviour and started writing memos to those who had received the gate pass the previous day. Some workers got annoyed by this action of Muthu and they aproached the union to intervene. The news had spread to other divisions and there was an air oI protest at all places in the Fertilizer Plant.
Questions :
(a) What is your view of the action taken by Mr. Muthu ?
(b) What are the weakness and strong points, as you consider, of Mr. Muthu as a Manager ?
(c) How would you have tackled the situation, if you were Mr. Muthu ?
December, 2002
SECTION A
1 Describe various tasks and responsibilities of a professional manager in today’s context. Cite suitable examples from your experience.
2 Explain briefly the major elements of management processes. what new skills would a manager require as he/she moves from middle to top management level? Discuss.
3 Differentiate between the decision-making models and techniques. Explain with suitable examples.
4 What are the various determinants of organistional culture? How does leadership influence the culture of an organisation? Discuss.
5 Identify major sources of conflict in an organisation. What approaches will you suggest for managing conflict in a service organisation in today’s context?
6 Describe the inter-personal needs in terms of expressed behaivour and wanted behaviour. Give suitable examples.
7 Write short notes on any three of the following :
(i) Delegation and Decentralisation
(ii) Process of organizational change
(iii) Johari Window model of communication
(iv) Enriching relationship with others
(v) Group dynamics
SECTION B
8 Read the case and answer th question given at the end.
The ABC Manufacturing Company is a plant under the direction of a plant manager who is known as a strict disciplinarian. One day a strict disciplinarian. One day a foreman noticed Bhola,one of the workers, at the time-clock punching out two cards- his own and the card of Nathu, a fellow worker. Since it was the rule of the company that each man must punch out his own card, the foreman asked Bhola to accompany him to the Personnel Director,who interpreted the incident as a direct violation of a rule and gave immediate notice of discharge to both workers.
The two workers came to see the Personnel Director on the following day. Nathu claimed innocence on the ground that he had not asked for his card to be punched and did not know at the time that it was being punched. He had been offered a ride by a frienf who could not wait for him to go through the punch-out procedure. Nathu was worried about his wife who was ill at home and was anxious to reach home and was anxious to reach home as quickly as possible. He planned to take his card to the foreman the next morning for reintatement, a provision sometimes exercised in such cases.
These circumstances were verified by Bhola. He claimed that he had punched Nathu’s card the same time he punched his own, not being conscious of any wrongdoing.
The Personnel Director was inclined to believe the story of the two men but did not feel he could reverse the action taken. He recognized that these men were good workers and had good records prior to this incident. Nevertheless, they had violated a rule for which the penalty was immediate discharge. He also reminded them that it was the policy of the company to enforce the rules without exception.
A few days later the Personnel Director, the plant Manager, and the Sales Manager sat together at lunch. The Sales Manager reported that he was faced with the necessity of notifying one of their best customers that his order must be delayed because of the inability of one department to conform to schedule. The department in question was the one from which the two workers had been discharged. Not only had men to date, but disgruntlement over the incident had led to significant decline in the cooperation of other workers.
The Personnel Director and the Sales Manager took the position that the discharge of these two valuable men could have been avoided if there had been provision for considering the incident was costly to the company in the possible loss of a costomer,in the dissatisfaction within the employee group, and in the time and money that would be involved in recruiting and training replacements.
The Plant Manager could not agree with this point of view. “ We must have rules if we are to have efficiency; and the rules are no good unless we enforce them. Further more, if we start considering all these variations in circumstances, we start considering all these variations in circumstances, we will find ourselves loaded down with everybody thinking he is an exception.” He admitted that the grievances were frequent but countered with the point that they could be of little consequence if the contract agreed to by the union was followed to the letter.
Questions
1 Place yourself in the position of the Personnel Director in this situation. Which of the following courses of the information which he has available at the time of the decision?
(a) Would you have discharged both men?
(b) Would you have discharged Bhola only?
(c) Would you have discharged Nathu only?
(d) Would you have discharged neither of them?
Justify your choice of decision.
2 What policy and procedural changes would you recommend for the handling of future cases of this type?
December, 2001
SECTION A
1 “Coordination is imperative for the success of any organization.” Explaining the need for coordination suggest the ways to achieve effective coordination in a decentralised private sector manufacturing organisation.
2 Describe the interpersonal needs in terms of expressed and wanted behavior. Cite suitable examples to support your views.
3 Why do managers need to acquire different skills at various levels? What are the skills conceptualized by Katz? Explain how they are proving useful for Indian managers at different levels.
4 Discuss various strategies used in implementing organisational change in the context of a large public sector manufacturing organisation.
5 Identify major barriers of communication and explain why do they arise. Explain ways to overcome these barriers with suitable examples.
6 Write short notes on any three of the following :
(i) Delegation and Decentralisation
(ii) Line and Staff functions
(iii) Theory X and Y
(iv) Domino Effect
(v) Organisational culture and climate
SECTION B
7 Read the case carefully and answer the questions given at the end.
One afternoon in June 1972, Rao, industrial engineer of P.M.A. company, was called to the office of his immediate superior V.R. Naik, the production manager. Naik said, “Rao, I want to discuss a situation in the production department. A lot of people feel that Govindan is not the right man for the Assistant Superintendent’s position. The President and others have decided that I have got to fire Govindan or at least move him out of production. Everyone wants to fire Govindan, but I won’t do it to him. I was talking with Bhadra this morning, and we decided that you might be able to make use of Govindan in your department.”
Rao was surprised by both the information, and the proposal.
Naik concluded his comments with, “Rao I am asking you to take Govindan. You can say ‘No’. But then he gets fired. I have told Govindan this. Also, Govindan knows that if he goes with you he will take a pay cut. However, I think you can make use of him both to your own and his satisfaction. You are, anyway, carrying out an in-process quality control, and you might be able to make good use of Govindan in view of his long technical experience of production work. Think it over, and let me know by tomorrow.
Roa thought over the matter.
PMA company had been a successful enterprise until March 1972 at which time it suffered a sharp decline of profits : sales had fallen off, and production costs had risen. The President adopted three measures which he hoped would improve the condition. First, by creating an Industrial Engineering department for establishing work standards on all production operations, to determine which manufacturing costs were out of line and where remedial action should be taken. Rao, 28 years old, who had been with the company for two years in the Purchasing department, was selected. Rao had B.E. and MBA degrees to his credit. What he lacked in his business experience he made up by his eagerness to learn. He was ambitious and liked by his associates. He wanted a transfer from Purchasing to Production for better opportunities for advancement.
Secondly, he consulted a Management Consultation firm to make a study of the Production Department. They pointed out that the chain of command was too long from Production Manager through Plant Superintendent through Assistant Superintendent to Foremen. They recommended the elimination of the position of Assistant Superintendent.
Thirdly, he enagaged an Industrial Psychologist to appraise all the Supervisory Personnel.
Govindan had been with the Company for 20 years since its founding and during this period had worked on every production operation, and his last 11 years had been in supervisory capacity. His manners were rough and aggressive, he had little formal education. The Industrial Psychologist’s report about Govindan contained the following points :
1. Evaluation for the position of Assistant Superintendent : Not good enough.
2. Capacity for good human relations in supervision : Will have friction frequently.
3. Need for development counselling : Counselling greatly needed.
4. General evaluation : Govindan had a good ability profile. He suffers from a sense of inferiority. He does not like the responsibility of making decisions. His supervision is that of Autocratic type. Though he has the ability, as far as his personality make-up is concerned, he is out of place in the present position.
Questions :
(a) What is the problem in the case? Explain.
(b) Explain Govindan’s behaviour and work experience vis-a-vis the psychologist’s report.
(c) How do you see Naik’a suggestion to Rao? Give reasons.
(d) What are Rao’s considerations is taking a decision? What should he do? Explain.
June, 1999SECTION A
1(a) What kind of decisions is a manager generally required to make in the organisational context? Explain with examples as to which of these correspond to programmed and non-programmed categories.
(b) Discuss various strategies used in implementing organisational change in the context of a large manufacturing company.
2(a) What is the system approach to management? Explain the salient features of this approach.
(b) Describe various managerial skills briefly. Discuss the roles these skills could play in building an institution.
3(a) Distinguish between the individual and the group decision making, explaining the advantages and disadvantages of group decision making.
(b) Distinguish between individual change and organisational change.
4 Write short notes on any three of the following :
(i) Domino Effect
(ii) Functional and Dysfunctional conflict
(iii) Formal and Informal groups
(iv) MBO
(v) Organisational Culture and Climate
SECTION B
5 Refer Dec 2001 question 7(sec B).
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